Dome Gold Mines
Annual Report 2023

Plain-text annual report

ABN 49 151 996 566 Annual Report 30 June 2023 Dome Gold Mines Ltd and its controlled entities Table of Contents Chairman’s Message ................................................................................................................... 1 Directors’ Report ........................................................................................................................ 3 Auditor’s Independence Declaration ........................................................................................ 30 Corporate Governance Statement ............................................................................................. 31 Consolidated Statement of Profit or Loss and Other Comprehensive Income ......................... 32 Consolidated Statement of Financial Position .......................................................................... 33 Consolidated Statement of Changes in Equity.......................................................................... 34 Consolidated Statement of Cash Flows .................................................................................... 35 Notes to the Consolidated Financial Statements ....................................................................... 36 Directors’ Declaration ............................................................................................................... 67 Independent Auditor’s Report ................................................................................................... 68 ASX Additional Information .................................................................................................... 74 Corporate Directory .................................................................................................................. 77 Dome Gold Mines Ltd and its controlled entities Chairman’s Message Dear Shareholder, I am pleased to present the Annual Report of Dome Gold Mines Limited for the year ended 30 June 2023. Gratefully, the past year saw the negative impacts of the COVID-19 pandemic diminish, and Dome was able to advance rapidly toward the development of a magnetite and industrial sand mining project at Sigatoka. The engineering work on the Feasibility Study that commenced in December 2022 has reached the review stage and the Environmental Impact Assessment is in final draft as at the end of the financial year. Laboratory tests on asphalt and concrete made with Sigatoka construction sand produced during pilot plant operations confirmed that the sand is excellent for use in mixes for asphalt and specialty concretes and meets or exceeds all engineering specifications for these materials. In May, the Company, through its wholly owned subsidiary Magma Mines Pte Ltd (Magma), was invited to submit a proposal to undertake a desilting dredging project to mitigate annual flooding of the Sigatoka River. Dredged material will be processed to recover magnetite concentrate, sand and gravel for sale. A draft contract between the Company and the Ministry of Agriculture and Waterways is presently under negotiation and is expected to be signed in the very near future. On other matters, the Company had applied for renewal of Special Prospecting Licence (SPL) 1452, and although the renewal was initially rejected, I am very happy to report that this initial decision has been reconsidered on further appeal by Dome and the renewal of the licence is now continuing to be negotiated. During the year the Company fully impaired the carrying value of SPL 1452 on the basis of the renewal being initially rejected. The Company will continue to monitor the progress of the renewal and will reassess the carrying value in future periods. On June 24, 2023, the three-year term of SPL 1451 (Ono Island) expired and an application for renewal of this SPL for a further 3-year term has been lodged and is currently being processed by the Mineral Resources Department (MRD). During December 2022 the people of Fiji elected a new Government led by Prime Minister Rabuka resulting in the appointment of new Ministers and Permanent Secretaries. The Minster of Lands and Mineral Resources, the Honourable Filimoni Vosarogo has visited the Company’s Sigatoka office and the project area on two occasions since his appointment. During April, I was accompanied by my fellow Director, Mr Tsubata on a visit to Fiji where we attended meetings with the Minister of Agriculture and Waterways, the Honourable Vatimi Rayalu and the Minister of iTaukei Affairs, Culture, Heritage and Arts the Honourable Ifereimi Vasu. The Ministers and their staff expressed strong support for Dome’s investment activities in Fiji. The Dome Board has continued to function effectively throughout 2022-23 and I thank my fellow Directors, Mr Tadao Tsubata and Ms Sarah Harvey for their continued support. Finally, on behalf of the Board, I sincerely thank the employees and contractors of Dome, who have continued to serve the company with loyalty and diligence. I also thank our shareholders whose investment, encouragement and patience are essential to our success. 1 Dome Gold Mines Ltd and its controlled entities In closing, Dome is the sole owner of three very valuable mineral assets in Fiji. I am confident that those assets will soon yield real returns to our shareholders. I look forward to a rewarding future as our trajectory toward development of a sand mining operation in Fiji is realised. J. V. McCarthy Chairman 2 Dome Gold Mines Ltd and its controlled entities Directors’ Report DIRECTORS’ DETAILS The following persons were Directors of Dome during or since the end of the financial year. Mr John V. McCarthy Bachelor of Science (St. Francis Xavier University) Member, Australasian Institute of Mining and Metallurgy Chairman Independent Non-Executive Director Director since 13 January 2021 Mr John V. McCarthy is a Geologist, with extensive knowledge and experience in the resources sector, built up over a career spanning 47 years in mineral exploration. He has worked in Canada, Southern Africa, Indonesia, Vietnam, Fiji and Australia and has previously held senior executive positions in junior exploration companies, both listed and unlisted. Mr McCarthy worked for Dome initially as a consultant and later as CEO for eight years until May 2019, when he retired to pursue personal interests. During his earlier time with Dome, he took an active role in the listing of the Company on the ASX and its subsequent growth, including Dome’s acquisition of Magma Mines Ltd, holder of the Sigatoka Iron Sands Project in Fiji (SPL1495). Mr John V. McCarthy was appointed as an independent, non-executive Director of the Company on 13 January 2021, and assumed the role of non-executive Chairman from 1 February 2021. Other current Directorships: None Previous Directorships (last 3 years): None Interests in shares: 260,000 shares Interests in options: 2,000,000 options Mr Tadao Tsubata Bachelor of Arts in Economics (Kokushikan University, Tokyo) Non-Executive Director Director since 8 July 2011 Mr Tadao Tsubata studied at Kokushikan University, Tokyo, in the Department of Politics and Economics, graduating in 1991 with a B.A. in Economics. From 1991 to 1997, Tadao worked in corporate finance at a large Japanese securities company. From this role he moved to a major international life insurance and investment company where he was involved in retail offerings and distribution of the business in Japan. Establishing his first business in life insurance distribution and agencies in 2001, this formed the basis of a new business being a Japanese focused asset management company. In early 2010 the activities of both the insurance business and the asset management company grew to the extent that a private investment advisory firm was established to specifically target international investments in mining exploration, primary production and other growth industries. Tadao continues in the role of Chief Executive Officer of this business and its international operations including in Australia. Other current Directorships: None Previous Directorships (last 3 years): None Interests in shares: 49,369,689 shares Interests in options: None 3 Dome Gold Mines Ltd and its controlled entities Directors’ Report Ms Sarah Harvey Bachelor of Arts (University of Adelaide) Bachelor of Laws (University of Adelaide) Master of Laws (College of Law, Sydney) Certificate in Governance Practice (Governance Institute of Australia) Independent Non-Executive Director Director from 27 July 2017 until 21 January 2021, reappointed on 24 September 2021 Ms Sarah Harvey is a lawyer and has worked for almost 20 years across multiple industries in both private practice and corporate environments. She specialises in providing board advice in strategic planning and review, due diligence, and risk compliance. She is also a nationally accredited mediator and Family Dispute Resolution Practitioner. She holds a BA, LLB, Master of Law (In-house Practice), and Certificate in Governance Practice from the Governance Institute of Australia (GIA). She is a member of the Law Society of NSW and the Australian Disputes Resolution Association. Ms Sarah Harvey resigned as a non-executive Director of the Company on 21 January 2021 and she was reappointed as a non-executive Director of the Company on 24 September 2021. Other current Directorships: None Previous Directorships (last 3 years): None Interests in shares: 23,342,625 shares Interests in options: 2,566,126 options COMPANY SECRETARY Mr Marcelo Mora holds a Bachelor of Business degree and Graduate Diploma of Applied Corporate Governance. Mr Mora has been a Company Secretary and an accountant for more than 30 years and has experience in resources and mining companies both in Australia and internationally, providing financial reporting and company secretarial services to a range of publicly listed companies. Marcelo has been the Company Secretary since Dome was incorporated on 8 July 2011. PRINCIPAL ACTIVITIES The principal activities of the Group have been the continuing exploration and evaluation of its Projects in Fiji. No significant changes in the nature of these activities occurred during the year. REVIEW OF OPERATIONS AND FINANCIAL RESULTS Projects Dome, through its wholly owned Fijian subsidiaries, Dome Mines Ltd and Magma Mines Ltd holds 100% interest in three Special Prospecting Licences (SPL) in Fiji, namely, SPL1495, the Sigatoka Iron and Industrial Sand Project, SPL1451 (in the process of being renewed), the Ono Island Gold Project and SPL1452 (renewal terms under negotiation), the Nadrau Gold-Copper Porphyry Project (see Figure 1 for locations). 4 Dome Gold Mines Ltd and its controlled entities Directors’ Report Figure 1 – Dome Gold Mine’s Fiji project location map SPL 1495 Sigatoka Iron and Industrial Sand Heavy Mineral Project • Special Prospecting Licence (SPL) 1495 was renewed for a further 3-year period on 27 April 2022 and will expire on 26 April 2025 • The tenement of 2,522.69 ha is located on the south coast of Viti Levu and covers the plains at the mouth of the Sigatoka River, the river itself and an area offshore It is Dome’s most advanced project • • Pre-feasibility Study report completed early 2015 • A Definitive Feasibility Study (DFS) had been started by IHC Robbins in December 2018 to support an application for a Mining Lease but was suspended in mid-2019 to accommodate completion of further drilling to upgrade the initial JORC 2012 resource estimates • An Initial JORC 2012 resource estimate of 131.4 MT was published in October 2014 and an update of the resource estimate of an additional 52.7 MT was published on December 11, 2019 • A third update of the JORC 2012 resource estimate was published on 5 November 2020 that increased the total resource estimate to 189.5 MT1, of which 73.2 MT at Kulukulu North is pending classification upon receiving land access to this portion of the resource • Of significance the November 5th update reported a high grade Indicate Resource in the South Kulukulu area of 34 MT containing 19.7% HM including 610,000 tonnes containing 48.3% HM • A report by IHC Robbins on pilot plant scale metallurgical test programs on 3 x 850kg samples was completed in June 2019 • The pilot plant produced titano-magnetite with between 56.9 and 57.9% Fe, 6.5 and 6.6% Ti and 0.4% V by standard wet gravity methods • Washed sand also produced in the pilot plant meets Australian Standards for construction sand based on independent engineering analyses • A 15-20 tonne bulk sample representative of the Kulukulu South area was shipped and has undergone large scale pilot plant processing • Results show that simple washing, screening, spiral heavy mineral separation and magnetic processes delivered industry acceptable sand and magnetite concentrate averaging 59.7% Fe, 6.6% TiO2 and 0.67% V2O5 • Flagstaff PCM Pty Ltd were engaged in November 2021 to provide overall management of the DFS program • Qualified engineering and environmental consultants have been appointed and all parts of the DFS were underway during the June quarter of 2022 1 see ASX release dated November 5, 2020 for JORC 2012 Table 1 5 Dome Gold Mines Ltd and its controlled entities Directors’ Report • • In April 2023 the Company announced the initial results of a test program to determine the suitability of Sigatoka industrial sand in the manufacture of asphalt and concrete conducted at Boral Construction Materials Laboratory, Sydney (see ASX release dated 12/04/2023. In the June Quarterly Activities Dome announced that the review of the DFS had concluded that the design and proposed location of the processing plant required alteration to improve efficiency and reduce capital cost and this work is currently underway. • • During the latter part of 2022 and first half of 2023 samples of Sigatoka industrial sand as well as nonmagnetic heavy mineral concentrate very high in the pyroxene mineral diopside were submitted to Boral Materials Laboratory in Sydney for tests to determine their suitability in mixes for asphalt and concrete (see ASX release 12/4/2023). In May 2023 Magma (Dome’s 100% owned subsidiary) was invited to submit a proposal to the Ministry of Agriculture and Waterways initiative for Emergency De-silting of the Sigatoka River for Flood Mitigation Purposes. The public private partnership would see the mixed ore silt dredged from the river and processed for subsequent sale to local customers. Approximately 6.5 kms of the Sigatoka River is earmarked for dredging to alleviate annual wet season flooding (see ASX to release 25/5/2023). • From 1 July 2022, the Group entered into the following agreements for the Definitive Feasibility Study of Sigatoka Iron Sand Project. Company Scope of work Flagstaff PCM Pty Ltd AMC Consultants Pty Ltd DRA Pacific Pty Ltd Haskoning Australia Pty Ltd Smith Geoscience Consultancy (Fiji) DFS project management Mine planning Process and non-process packages Marine study Environmental Impact Assessment Estimated contract value A$998,000 A$128,390 A$1,115,320 A$86,110 F$610,863 As at the reporting date, other than Smith Geoscience Consultancy, the contracts with the above companies have now been concluded by mutual agreement. The remaining budget left with Smith Geoscience Consultancy for completion of EIA work is estimated to be FJ$115K. • A desilting contract was prepared and has been submitted to the Ministry of Agriculture and Waterways for negotiation and discussions are also taking place with the Ministries of Lands and Mineral Resources, Department of Environment and iTaukei Affairs, Culture, Heritage and Arts. Mineral Resources on Sigatoka SPL1495 The total mineral resources at Sigatoka are estimated at 189.5 million tonnes (MT) at 12.7% heavy minerals (HM), with a cut-off of 8% HM. This is made up of the following: Kulukulu South: A combined Indicated and Inferred Resource of 34.6 MT at an average grade of 20.2% Heavy Minerals and 12.9% Clay containing 7 MT of Heavy Minerals, which includes: • An Indicated Resource of 34 MT at an average grade of 19.7% Heavy Minerals and 13.1% Clay containing 6.7 MT of Heavy Minerals of which 25% is MAG1 (300 Gauss) Heavy Minerals. • An Inferred Resource of 0.61 MT at an average grade of 48.3% Heavy Minerals and 4.2% Clay containing 295kt of Heavy Minerals of which 25% is MAG1 (300 Gauss) Heavy Minerals. Koroua Island: An Indicated Resource of 52.5 MT, at an average grade of 13.2% Heavy Minerals and 13% Clay, containing 6.9 MT of Heavy Minerals of which 23% is MAG1 (300 Gauss) Heavy Minerals. 6 Dome Gold Mines Ltd and its controlled entities Directors’ Report Sigatoka River: A combined Indicated and Inferred Resource of 29.4 MT at an average grade of 11.4% Heavy Minerals and 6.7% Clay containing 3.3 MT of Heavy Minerals, which includes: • An Indicated Resource of 23.9 MT at an average grade of 11.5% Heavy Minerals and 6.6% Clay containing 2.8 MT of Heavy Minerals of which 15% is MAG1 (300 Gauss) Heavy Minerals. • An Inferred Resource of 5.3 MT at an average grade of 10.8% Heavy Minerals and 7.0% Clay containing 570,000 T of Heavy Minerals of which 14% is MAG1 (300 Gauss) Heavy Minerals. Kulukulu North: The unclassified resource for the Kulukulu North area is now: • A total of 73.2 MT at an average grade of 17.4% Heavy Minerals and 6.0% Clay containing 12.7 MT of Heavy Minerals of which 14.8% is MAG1 (300 Gauss) Heavy Minerals. Figure 2 - Resource domains of the Sigatoka sand deposit 7 Dome Gold Mines Ltd and its controlled entities Directors’ Report Table 1: Comparative Sigatoka Project Resource Inventory, November 2020 The relatively small but very high-grade resource at Kulukulu South (610,000 tonnes @ 48.3% HM) sits mostly above sea level (Figures 3 and 4). Its presence strongly supports Kulukulu South as being the ideal location to commence mining operations. Figure 3 - Kulukulu South area, indicating the location of the cross-section shown in Figure 4. Note also the sand and gravel deposits filling the Sigatoka riverbed that will be dredged during the desilting project. 8 InferredIndicatedUnclassifiedInferredIndicatedUnclassifiedInferredIndicatedTonnes (Mt)100.1 Average HM%17%HM tonnes (kt)17,239 MAG1 Tonnes (kt)2,637 Tonnes (Mt)73.2 73.2 - Average HM%17%HM tonnes (kt)12,708 12,708 - MAG1 Tonnes (kt)1,885 1,885 - Tonnes (Mt)0.6 34.0 0.6 34.0 Average HM%48%20%HM tonnes (kt)295 6,710 295 6,710 MAG1 Tonnes (kt)74 1,707 74 1,707 Tonnes (Mt)5.9 25.3 5.3 23.9 0.6- 1.4- Average HM%11%12%11%12%HM tonnes (kt)631 2,923 570 2,755 61- 168- MAG1 Tonnes (kt)91 443 81 416 10- 27- Tonnes (Mt)52.7 52.5 0.2- Average HM%13%13%HM tonnes (kt)6,981 6,935 46- MAG1 Tonnes (kt)1,607 1,595 12- Tonnes (Mt)106.0 78.0 73.2 5.9 110.4 73.2 0.0 32.4 Average HM%17%13%17%15%15%HM tonnes (kt)17,870 9,904 12,708 865 16,400 12,708 234 6,496 MAG1 Tonnes (kt)2,728 2,050 1,885 155 3,718 1,885 64 1,668 Kulukulu NorthKulukulu SouthSigatoka RiverKoroua IslandTOTALSSubdivided into Kulukulu North & South (2020)RESOURCE SUB-CATEGORYPREVIOUSCURRENTDIFFERENCEKulukulu (2014) Dome Gold Mines Ltd and its controlled entities Directors’ Report Figure 4 - Kulukulu South cross-section 9660mN, hot colours showing highest HM results. Sigatoka Construction Sand Test Results During the 2022-23 financial year Dome completed laboratory testwork on construction/industrial sand produced during Pilot Plant processing of a bulk sample from the Sigatoka Project. The tests were conducted under the direction of Mr Ion Dimitru, Technical Manager, Boral Construction Materials Laboratory in Sydney as part of a Definitive Feasibility Study on the Sigatoka Project (see ASX release dated April 12, 2023). Plate 1 – “Run of mine” magnetite bearing industrial sand sample prepared for pilot plant processing 9 Dome Gold Mines Ltd and its controlled entities Directors’ Report Plate 2 – Industrial sand from large scale pilot plant operation tested for asphalt and concrete applications Plate 3 – Magnetite concentrate from large scale pilot plant operation 10 Dome Gold Mines Ltd and its controlled entities Directors’ Report Sand (fine aggregate) is a critical material used in construction, being a key ingredient in concrete, asphalt, base and the sub-base of flexible and rigid pavements. About 50 billion tonnes of sand is extracted annually worldwide, being the second most exploited natural resource after water. The consumption of sand, which has tripled over the last 20 years is currently faster than its replacement by natural geological processes and a worldwide sand supply crisis is emerging. The investigations carried out involved assessment of Sigatoka magnetite mining sand tailings, for use as fine aggregates in concrete mixes, including analysis of physical and chemical properties such as Particle Size Distribution (PSD), water absorption, density, presence or absence of deleterious materials, shape, texture and durability. Tests completed included: content as well as clay-type analysis of the minus 2 micron fraction, methylene blue adsorption (MBV), sodium sulphate soundness, chloride and sulphate content, Micro Deval and Alkali Silica Reaction (ASR). Performance of the magnetite mining tailings as fine aggregate in high performance concrete was also tested. This work included fresh and hardened concrete properties of a 50 MPa concrete mix, including slump, density, bleeding, air content, setting time, compressive strength and drying shrinkage at 56 days. Furthermore, concrete durability tests such as sorptivity, water permeability under pressure, volume of permeable voids, chloride penetration/diffusion, etc. were completed. The impact of “low percentage diopside” addition to the concrete mix was also, assessed since diopside is a major non-magnetic heavy mineral in the Sigatoka sand deposit. Based on these comprehensive results it is concluded that the magnetite mining tailings conform to fine aggregate requirements to be used for engineering processes in Australia. The magnetite mining tailings have a good abrasion, disintegration and abrasion resistance, being non-reactive for ASR. In conclusion: - Sigatoka construction sand as fine aggregates in high performance concrete mixes, conforms to the requirements of AS 3600 – Concrete structures for B2 exposure classification (surface member above-ground in coastal area and in any climate zone and surface in maritime structures in sea water- permanently submerged); - With proper concrete mix designs, Sigatoka construction sand is suitable to be used, as fine aggregates, in high performance concretes, including: a. Concrete for bridges b. Concrete in marine environment c. Shotcrete in tunnelling and underground mining operations d. Concrete pavements e. Precast concrete panels, etc. 11 Dome Gold Mines Ltd and its controlled entities Directors’ Report Sigatoka Project Definitive Feasibility and Environmental Assessment Study Update The Definitive Feasibility Study at Sigatoka has reached the review stage. During the assessment of the proposed heavy mineral sand processing plant and its location it has been determined that because removal of the non-magnetic minerals is no longer required, a less complicated and lower capital cost process plant that recovers magnetite concentrate followed by a standard sand-gravel washing and screening plant could be the best option with significant savings in both capital and operating costs. Testwork to confirm the efficiency of the magnetite recovery system is recommended and will be completed in the near future. Laboratory tests completed on the Sigatoka construction sand have determined it can be used in asphalt and concrete mixes that satisfy engineering standards even for high compressive strength concretes. Importantly, based on its content of the pyroxene mineral diopside, the concrete produced demonstrates resistance to concrete cancer and can be used in direct contact with water including marine environments. The comprehensive Environmental Impact Assessment (EIA) study is in final draft with community consultations currently being completed. It is being done to comply with the Terms of Reference (TOR) issued by the Department of Environment. Both the EIA and the DFS are now expected to be completed in the second half of 2023. Sigatoka Desilting Project On May 23rd 2023, of a formal “Letter of Support” (LOS) addressed to Dome’s wholly owned subsidiary Magma Mines Pte Ltd, concerning a proposal to undertake flood mitigation dredging of the lower section of the Sigatoka River within the Company’s Special Prospecting Licence SPL1495 and parts of the river north of the licence area. The LOS was issued by the office of the Permanent Secretary of the Minister of Agriculture and Waterways in response to their request for an expression of interest from Magma. The Ministry of Agriculture and Waterways has responsibilities for waterway management in Fiji. Desilting is proposed as a means to alleviate annual floods of the Sigatoka River valley as a consequence of large deposits of sand and gravel filling the riverbed. In return for conducting the desilting, it is proposed that the dredged material will be washed and screened to produce construction products for sale. Also, the mineral magnetite within the sand can be recovered and further magnetically processed to upgrade to a concentrate for sale. Assuming conditions outlined in the LOS are satisfied the desilting program can commence very quickly, while the Sigatoka DFS and EIA studies are being completed and an application for a Mining Lease to mine and process other parts of the Sigatoka resource is being processed. Ministerial Site Visits and Meetings On January 10th and June 16th, 2023, the Minister of Lands and Mineral Resources, the Honourable Mr Filimoni Vosarogo made fact finding visits to the Company’s Sigatoka office and project area (see Plates 4 and 5). The Minister was accompanied by the Permanent Secretary, Ms. Raijieli Taga, Acting Director of Mineral Resources, Mr. Raymond Mohammed, Assistant Director Lands, Mr. Josefa Vuniamatana, Lands Manager West, Mr. Apisai Vulawalu and 10 other senior staff members (see Plates 4 and 5). 12 Dome Gold Mines Ltd and its controlled entities Directors’ Report Plate 4 – Ministerial visit; from left, Semi, Dome senior geologist and community relations officer, Natasha, Dome senior geologist, Minister Vosarogo, Ashneel, Dome office manager, Sangeeta, office caterer. Standing on upper level, Acting Director of MRD, Raymond Mohammed. Plate 5 – Mr Darren Grant, Country Manager, Minister of Lands and Mineral Resources, the Honorable Filimoni Vosarogo, and acting Director of the Mineral Resources Department, Mr Raymond Mohammed on site at Sigatoka (from left to right) 13 Dome Gold Mines Ltd and its controlled entities Directors’ Report During April 2023, Dome’s Chairman Mr McCarthy, Director Mr Tsubata and Country Manager Mr Grant, held meetings in Suva with the Minister for Agriculture and Waterways and, iTaukei Affairs, Culture, Heritage and Arts. The Honourable Minister for Agriculture and Waterways, Mr Vatimi Rayalu expressed strong support for the proposed mining operations including the dredging phase which will assist with emergency flood mitigation and de-silting of the Sigatoka River. He was particularly impressed by results from sand testwork (see ASX release dated April 12, 2023) that confirmed the performance of sand when used in concrete mixes while magnetite used to make steel is also recovered and used in a steel making facility in Fiji (see Plates 2 and 3). The Minister for iTaukei Affairs, Culture, Heritage and Arts, the Honourable Ifereimi Vasu and his senior staff were also presented with Domes business development plan and indicated support for the proposal and the potential benefits to the Fijian community. Plate 6 – From left to right; Dome Chairman Mr McCarthy, the Honourable Minister for Agriculture and Waterways, Vatimi Rayalu and Mr Tsubata, Dome Director. 14 Dome Gold Mines Ltd and its controlled entities Directors’ Report Plate 7 – From left to right; the Minister for iTaukei Affairs, Culture, Heritage and Arts, the Honourable Ifereimi Vasu, Acting CEO, Mr Peni Qalo, Advisor Peni Kunatuba, Ministers Personal Officer, Mr Jope Koroisavou, Dome Senior Geologist Mr Semi Luvuiwai, Dome Chairman Mr Jack McCarthy and Dome Country Manager Mr Darren Grant. SPL 1451 Ono Island Project • SPL1451 was renewed for a three-year period on 25 June 2020 and expired on 24 June 2023. An application for a further three-year renewal of the SPL has been submitted in August and is being processed by the MRD. • This tenement of 3,028ha on Ono Island, the eastern most island of the Kadavu Group, covers a number of hydrothermally altered and mineralised areas and caldera/volcanic centres. • Two high sulphidation epithermal gold-silver targets and possible deeper porphyry copper-gold exploration targets (Naqara East and Naqara West) have been identified by geological mapping. • The prospect is spatially associated with shoshonitic volcanic centres that appear similar in alteration style, geological formation and metal geochemical anomalism to the Lepanto gold- copper deposit in the Philippines. Induced Polarisation (IP) arrays were completed in October 2016, identifying anomalies that justified testing. • A 7-hole exploration diamond drill program commenced in March 2018 and was completed in early July 2018 for a total of 2,276m of drilling. Inspection of drill core showed strong sulphide mineralised zones coincident with the Induced Polarisation conductive anomalies, confirming the veracity of the IP interpretations. • To date only the northern half of the volcanic system has been mapped and sampled and the next period of exploration will involve completion of soil geochemistry, geological mapping and rock chip sampling on the southern half of Ono Island. The Company completed an initial diamond drilling program on 3 July 2018 for a total of 2,276 m (see Figure 5). The drilling program tested several epithermal gold targets at two prospects on the Ono Island (Naqara East and Naqara West). 15 Dome Gold Mines Ltd and its controlled entities Directors’ Report Figure 5 – Exploration drill hole location map of the Naqara East and Naqara West prospects The photo below in Plate 8 shows typical sulphide-bearing rock in drill core from ONODDH007 (from 225.7m depth). The presence of sulphide in the lower part of holes ONODDH001 and 7 explains the IP chargeability responses. This provides Dome with a high degree of confidence that the IP geophysical technique has worked well and is able to detect zones of sulphide mineralisation at depth. Plate 8 – Altered and mineralized volcanic host rock with up to 7% metallic sulphide in drill hole ONODDH007, HQ core from 225.7 m depth – Ono Island Project, Fiji 16 Dome Gold Mines Ltd and its controlled entities Directors’ Report Assays for all holes ONODDH001 to ONODDH007 were carried out by ALS Laboratories. Drill hole ONODDH001 (Naqara East), returned anomalous copper assays (to 0.3% Cu) and anomalous molybdenum assays (to 0.2% Mo). The best Mo intercept is 5.05 m @ 0.0643% (643 ppm Mo), from 323 to 328.05 m. This intercept comprises 5 contiguous one metre samples ranging from 110 ppm to 2040 ppm Mo. The gold-silver assay results are slightly anomalous within areas of strong alteration and sulphide mineralisation, but are well below economic levels, with maximum assay values of 0.036 g/t Au and 3.6 g/t Ag. The elevated Cu and Mo and weakly anomalous Au and Ag indicates a metal-bearing epithermal system is present at Naqara, and that further exploration drilling could define gold mineralisation nearby. In summary, a large sulphide-bearing system weakly anomalous in several metals has been defined on Ono Island. This system has many similarities to other Pacific Rim gold-copper deposits. The strong epithermal alteration, sulphide mineralisation, elevated Cu-Mo and weakly anomalous Au-Ag in drill core samples is encouraging. To date exploration has been conducted only on the northern half of the volcanic system. In the next stage the area to the south will be assessed using soil geochemistry, geological mapping and rock chip sampling. SPL 1452 Nadrau Project • SPL 1452 has expired on 25 August 2022. An application to renew SPL1452 for a further 3-year period was submitted to the Mineral Resources Department with an estimated commitment of $800,000 on 26 August 2022. In February 2023, Dome was notified that the renewal was rejected and the Company immediately appealed this decision to the Mining Appeals Board. In early July 2023 the Company was again notified its appeal had failed, the reason being that MRD had not been advised of the change in exploration plans due to the Covid emergency. Dome had in fact on three occasions written to MRD advising of changes resulting from international and local travel restrictions. In August the MRD indicated that the Company’s second appeal had been successful and under certain conditions SPL 1452 could be reconsidered for renewal. Negotiations on the conditions of the renewal are proceeding as at the end of August. During the year the Company fully impaired the carrying value of SPL 1452 on the basis the renewal being initially rejected. The Company will continue to monitor the progress of the renewal and will reassess the carrying value in future periods. • The tenement area of 33,213ha is located on Fiji’s main island, Viti Levu and adjacent to the world class Namosi Porphyry copper-gold Project that reportedly contains 2.1 billion tonnes grading 0.37% Copper (Cu) and 0.12g/t Gold (Au). • The Dome tenement contains two large copper-gold-silver ionic leach geochemical anomalies (Namoli and Wainivau prospects) interpreted to be related to intrusive centres that are as yet largely untested by drilling. • Geological mapping and rock chip sampling have discovered porphyry intrusive complexes at both the Namoli and Wainivau Prospects with alteration, mineralisation and vein types typical of mineralised systems. • Copper-magnetite bearing veins have been discovered in outcrop at the Wainivau prospect. • The eastern section of the tenement is the large Wainivalau Intrusive Complex that has yet to be investigated for porphyry copper-gold systems analogous to those at Namosi-Wasoi to the south. A field geological program to Namoli-Wainivau was conducted by Dome geologists. A total of 46 Stream Sediment Samples and 8 rock chip samples were collected over a period of 6 days. The stream sediment gold and copper plots are shown below on Figures 6 and 7 and they highlight the anomalous gold-copper in the area around Wainivau that also extends to the NW of Wainivau towards Namoli. This trend is broadly coincident with a mapped NW-trending zone of iron-oxide breccia observed in the field. 17 Dome Gold Mines Ltd and its controlled entities Directors’ Report Rock chip samples collected by Dome around Wainivau-Namoli returned weakly anomalous copper assays up to 157ppm and gold assays up to 0.022g/t Au. The iron in these samples is significant (up to 14.5% Fe). The data shows very encouraging signs that a Cu-Au porphyry system similar to Namosi has potential to be discovered in the Namoli-Wainivau area. Figure 6 - Map showing the stream sediment copper assay results from Namoli-Wainivau prospect. 18 Dome Gold Mines Ltd and its controlled entities Directors’ Report Figure 7 - Map showing the stream sediment gold assay results from Namoli-Wainivau prospect. The Company remains confident that the SPL1452 renewal negotiations will be successful and that exploration for porphyry copper-gold mineral will continue. 19 Dome Gold Mines Ltd and its controlled entities Directors’ Report Implications of Covid-19 Pandemic The Covid-19 pandemic is no longer impacting the business of the Company. Impact of Climate Change There is no apparent immediate impact of climate change that negatively impacts upon the Company’s Fiji projects. Going forward, Dome will seek to employ low to zero emission energy sources for its exploration, mining and mineral processing activities that will meet or exceed requirements of the Fiji Government. Mineral Resources Statement – Attachment A This resource estimate was prepared by independent resource consultants and issued in a report entitled “Sigatoka Iron Sand Project, Resource Estimate Report” dated October 2020 and as announced to the market in ASX releases dated 5 November 2020. Table 1: Comparative Sigatoka Project JORC 2012 Resource Inventory, November 2020 Resource comparison 2022 to 2023 The company's most recent resource estimate was reported on 5 November 2020 and no update to this resource estimate has been made, and hence no material change has occurred since its original publication. 20 InferredIndicatedUnclassifiedInferredIndicatedUnclassifiedInferredIndicatedTonnes (Mt)100.1 Average HM%17%HM tonnes (kt)17,239 MAG1 Tonnes (kt)2,637 Tonnes (Mt)73.2 73.2 - Average HM%17%HM tonnes (kt)12,708 12,708 - MAG1 Tonnes (kt)1,885 1,885 - Tonnes (Mt)0.6 34.0 0.6 34.0 Average HM%48%20%HM tonnes (kt)295 6,710 295 6,710 MAG1 Tonnes (kt)74 1,707 74 1,707 Tonnes (Mt)5.9 25.3 5.3 23.9 0.6- 1.4- Average HM%11%12%11%12%HM tonnes (kt)631 2,923 570 2,755 61- 168- MAG1 Tonnes (kt)91 443 81 416 10- 27- Tonnes (Mt)52.7 52.5 0.2- Average HM%13%13%HM tonnes (kt)6,981 6,935 46- MAG1 Tonnes (kt)1,607 1,595 12- Tonnes (Mt)106.0 78.0 73.2 5.9 110.4 73.2 0.0 32.4 Average HM%17%13%17%15%15%HM tonnes (kt)17,870 9,904 12,708 865 16,400 12,708 234 6,496 MAG1 Tonnes (kt)2,728 2,050 1,885 155 3,718 1,885 64 1,668 Kulukulu NorthKulukulu SouthSigatoka RiverKoroua IslandTOTALSSubdivided into Kulukulu North & South (2020)RESOURCE SUB-CATEGORYPREVIOUSCURRENTDIFFERENCEKulukulu (2014) Dome Gold Mines Ltd and its controlled entities Directors’ Report Governance Arrangements Dome’s management and Board of Directors include individuals with many years’ work experience in the mineral exploration and mining industry who monitor all exploration programs and oversee the preparation of reports on behalf of the Company by independent consultants. The exploration data is produced by or under the direct supervision of qualified geoscientists. In the case of drill hole data half core samples are preserved for future studies and quality assurance and quality control. The Company uses only accredited laboratories for analysis of samples and records the information in electronic databases that are automatically backed up for storage and retrieval purposes. Statement of Compliance The information in this Annual Report that relates to Exploration Results is based on information compiled by John V McCarthy. Mr McCarthy is the non-executive Chairman of the Company and a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr McCarthy, through his family Superfund, holds shares in the Company and is paid fixed directors fees for his services. He consents to the inclusion in this Annual Report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Mineral Resources is based on information compiled by Mr Richard Stockwell, a Competent Person who is a fellow of the Australian Institute of Geoscientists. Mr Stockwell is a Director of Placer Consulting Pty Ltd. Mr Stockwell has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration at the Sigatoka project and to the activity being undertaken to qualify as Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Stockwell has a beneficial interest as a shareholder of Dome Gold Mines Ltd and consents to the inclusion in this report of the matters based on the information in the form and context in which it appears. SIGNIFICANT CHANGES IN STATE OF AFFAIRS In the opinion of the Directors, significant changes in the state of affairs of the Group that occurred during the year ended 30 June 2023 were as follows: Issue of share capital For the year ended 30 June 2023, Dome has raised $456,000 by share placements. The funds were used for exploration and general working capital. Details of share issues are as follows: • On 21 November 2022 the Company completed a placement of 1,160,000 fully paid ordinary shares at $0.225 per share to raise $261,000. • On 16 December 2022 the Company completed a placement of 1,300,000 fully paid ordinary shares at $0.10 per share as a result of options being exercised and raised $130,000. • On 30 January 2023 the Company completed a placement of 650,000 fully paid ordinary shares at $0.10 per share as a result of options being exercised and raised $65,000. Issue of unlisted options • On 21 November 2022 the Company issued 580,000 unquoted options exercisable at $0.20 each and expiring on 21 November 2025. Expiration of unlisted options • On 31 December 2022, 1,400,000 unquoted options of the Company expired unexercised. • On 2 March 2023, 250,000 unquoted options of the Company expired unexercised. DIVIDENDS No dividends were declared or paid during the financial year (2022: $nil). 21 Dome Gold Mines Ltd and its controlled entities Directors’ Report EVENTS ARISING SINCE THE END OF THE REPORTING PERIOD Subsequent to the end of the financial year: Renewal of SPL1452 An application to renew SPL1452 for a further 3-year period was submitted to the Mineral Resources Department on 26 August 2022, the expiry date of the current licence. While the renewal application is being processed the licence remains in force. The remaining commitment of $1,075,306 lapsed on the renewal date of 26 August 2022. The renewal application included an estimated commitment of $800,000. Although an initial decision was made not to approve Dome’s renewal application, in August 2023 the MRD rescinded this decision and negotiations on the renewal are presently being negotiated. Renewal of SPL1451 An application to renew SPL1451 for a further 3-year term was lodged with MRD in Aug 2023, The licence is still in force during the renewal process. There is no reason that the renewal will not be granted. Fund raising The Group further extended the current $500,000 loan facility to $1,000,000 with an existing lender on 24 August 2023. The facilities will expire on 31 December 2025. Furthermore, the Group entered into another new loan facility with a company which is a related party of Ms Sarah Harvey post year end. The total facility is $500,000 and this facility was entered into on 18 September 2023. Subsequent to 30 June 2023, the Group has drawn down a further $711,775 of debt against current facilities in place. No other matters or circumstances have arisen since the end of the year that have 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, BUSINESS STRATEGIES AND PROSPECTS The Group will continue to explore and evaluate the Company's exploration projects with the aim of identifying potential mineral resources and will continue to seek and assess new opportunities in the Fiji mineral sector with the objective of adding significant shareholder value to Dome. The Directors are unable to comment on the likely results from the Group’s planned exploration activities due to the speculative nature of such activities. DIRECTORS’ MEETINGS No Directors’ Meeting (including meetings of Committees of Directors) was held during the year. The decisions of the Board were confirmed by circular resolutions. Audit Committee discontinued since the end of January 2021 and the Board took over the responsibilities to oversee the financial reports. 22 Dome Gold Mines Ltd and its controlled entities Directors’ Report UNISSUED SHARES UNDER OPTION Unissued ordinary shares of Dome under option as at 30 June 2023 were as follows: Number of options 3,150,000 270,000 2,566,126 4,200,000 8,200,000 6,000,000 1,706,900 1,000,000 2,000,000 18,706,900 2,000,000 2,000,000 30,000,000 31,250,000 520,000 580,000 Exercise price $ 0.17 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.20 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.20 Expiry date 24 July 2023 2 March 2024 15 March 2024 10 June 2024 30 June 2024 15 July 2024 18 August 2024 13 September 2024 24 November 2023 24 November 2024 26 November 2024 6 December 2024 31 December 2024 20 April 2025 29 June 2025 21 November 2025 The names of persons who currently hold options are entered in the register of options kept by the Company pursuant to the Corporations Act 2011. This register may be inspected free of charge. All options expired on the expiry date. The persons entitled to exercise the options did not have, by virtue of the options, the right to participate in the share issue of any other body corporate. SHARES ISSUED AS A RESULT OF EXERCISE During or since the end of the financial year, the Company issued ordinary shares as a result of the exercise of options as follows (there were no amounts unpaid on the shares issued): Date options exercised 16 December 2022 30 January 2023 Issue price per share ($) $0.10 $0.10 Number of shares issued 1,300,000 650,000 BUSINESS RISK DISCLOSURES The material risks which the Group is exposed to include operational risks, capital risks, environmental risks, economic risks and human resources risks as follows: • obtaining government approvals; • geological and environmental issues; • land access and community disputes; • the ability to raise additional capital; • commodity price and world economy; • recruiting and retaining qualified personnel; • sovereign risk (for Fiji). The Board is responsible to oversee the risk management function and the CEO or if no CEO a Director of the Company is in charge of implementing an appropriate level of control to mitigate these risks within the Group. The Board reviews all major strategies and decisions and takes appropriate actions on a continuous basis. 23 Dome Gold Mines Ltd and its controlled entities Directors’ Report REMUNERATION REPORT (AUDITED) The Directors of Dome Gold Mines Ltd (the ‘Group’) present the Remuneration Report for non-executive Directors, executive Directors, and other Key Management Personnel, prepared in accordance with the Corporations Act 2001 and the Corporations Regulations 2001. The Remuneration Report is set out under the following main headings: a. b. c. d. principles used to determine the nature and amount of remuneration; details of remuneration; share-based remuneration; and other information. Principles used to determine the nature and amount of remuneration a. Key management personnel have authority and responsibility for planning, directing and controlling the activities of the Group. Key management personnel comprise the Directors of the Company and the non-executives. No other employees have been deemed to be key management personnel. The remuneration policy of Directors and senior executives is to ensure the remuneration package properly reflects the persons’ duties and responsibilities, and that remuneration is competitive in attracting, retaining and motivating people of the highest quality. The Board is responsible for reviewing its own performance. The evaluation process is designed to assess the Group’s business performance, whether long term strategic objectives are being achieved, and the achievement of individual performance objectives. Remuneration includes a base salary and superannuation that is set with reference to the market. Fees to non-executive Directors reflect the demands which are made on, and the responsibilities of, the Directors. Non-executive remuneration comprises directors’ fees and share based payments. Directors’ fees and payments are reviewed annually by the Board. The Board has also drawn on external sources of information to ensure non-executive Directors’ fees and payments are appropriate and in line with the market. The remuneration disclosed below represents the cost to the Group for services provided under these arrangements. No Directors or senior executives received performance related remuneration. There were no remuneration consultants used by the Company during the year ended 30 June 2023, or in the prior year. Vote and comments made at the Company’s last Annual General Meeting The Remuneration Report of Dome Gold Mines Ltd for the financial year ended 30 June 2022 was approved by shareholders on a show of hands at the Company’s Annual General Meeting. Consequences of performance on shareholder wealth In considering the Group’s performance and benefits for shareholder wealth, the Board has regard to the following indices in respect of the current financial year and the previous four (4) financial years: Item 2023 2022 2021 2020 2019 EPS (cents) Dividends (cents per share) Net loss ($) Share price ($) (0.85) - (2,991,215) 0.20 (0.60) - (1,989,393) 0.27 (0.75) - (2,238,036) 0.15 (0.70) - (2,003,468) 0.20 (0.65) - (1,770,486) 0.20 The Board considers that these indices do not have any impact on the Group’s performance. 24 Dome Gold Mines Ltd and its controlled entities Directors’ Report b. Details of the nature and amount of each major element of the remuneration of key management personnel of the Group are shown in the table below: Details of remuneration Key Management Personnel Remuneration Short term employee benefits Post-employment benefits Share-based payments John McCarthy (Chairman) Tadao Tsubata (Director) Sarah Harvey (Director)* 2023 Total 2022 Total Cash salary and fees $ 96,000 96,000 72,000 66,000 72,000 51,000 240,000 213,000 Year 2023 2022 2023 2022 2023 2022 2023 2022 Other fees $ 24,200 6,075 - - - - 24,200 6,075 Accrued fees $ - - - - - - - - Superannuation $ 2,520 - - - - - 2,520 - Fair value of options $ - 160,287 - - - - - 160,287 Total $ 122,720 262,362 72,000 66,000 72,000 51,000 266,720 379,362 Proportion of remuneration performance related % Value of options as a proportion of remuneration % - - - - - - - - - 61 - - - - - 42 No other bonuses or performance related compensation payments were paid during the current year to Directors or executives. The Group employed no other key management personnel. No shares were granted to key management personnel as compensation during the year ended 30 June 2023. Other fees represented consulting fees for consulting services provided. * Sarah Harvey was appointed as a non-executive Director of the Company on 24 September 2021. 25 Dome Gold Mines Ltd and its controlled entities Directors’ Report c. Share-based remuneration All options refer to options over ordinary shares of the Company, which are exercisable on a one-for- one basis under the terms of the agreement. Options were granted to Directors as part of their remuneration during the year ended 30 June 2022. Options were granted for no consideration. Options granted carry no dividends or voting rights when exercised. Details of options granted are set out in the table below. Director Number granted Grant date John McCarthy 2,000,000 24/11/2021 Value per option at grant date $0.0801 Value of options at grant date $160,287 Number vested Exercise price 2,000,000 $0.20 Vesting and first exercise date 24/11/2021 Last exercise date 24/11/2023 The options were provided at no cost to the recipient. All options expire on their expiry date. There were no options over ordinary shares of the Company granted, exercised, forfeited or lapsed which are related to Directors’ or key management personnel’s remuneration during the year ended 30 June 2023. No terms of equity-settled share-based payment transactions have been altered or modified by the issuing entity during the 2023 financial year. d. Other information Options held by key management personnel The number of options to acquire shares in the Company during the 2023 reporting period held by each of the Group’s Key Management Personnel of the Group, including their related parties, is set out below. YEAR ENDED 30 JUNE 2023 Balance at start of year Granted as remuneration Received on exercise Other changes Held at the end of reporting period John McCarthy Tadao Tsubata Sarah Harvey 2,000,000 - 2,566,126 - - - - - - - - - 2,000,000 - 2,566,126 Shares held by key management personnel The number of ordinary shares in the Company during the 2023 reporting period held by each of the Group’s Key Management Personnel of the Group, including their related parties, is set out below. YEAR ENDED 30 JUNE 2023 Balance at start of year Granted as remuneration Received on exercise Other changes Held at the end of reporting period John McCarthy Tadao Tsubata Sarah Harvey 260,000 52,010,893 23,342,625 - - - - - - - (2,641,204) - 260,000 49,369,689 23,342,625 Note: None of the shares included in the table above are held nominally by key management personnel. 26 Dome Gold Mines Ltd and its controlled entities Directors’ Report Service Agreements for Directors and key management personnel Directors are engaged under contracts. Their remuneration is not fixed and fluctuates in line with the financial situation of the Company. The terms of their engagement are unspecified, and there is no period of notice of termination. Related Party transactions The Group has a loan facility with a company which is a related party of Mr Tadao Tsubata. There is no outstanding loan payable on the related party facility as at 30 June 2023 (2022: Nil). The total facility of the Company with this related party is $3,500,000 as at 30 June 2023. There was a drawdown of $183,456 on 18 August 2023 to bring the total facility down to $3,316,544 as at the reporting date. The facility is not secured. The agreed interest rate on the unsecured loan is 5%. The facility has been extended to 31 December 2025 during the reporting period. The Group entered into another new loan facility with a company which is a related party of Ms Sarah Harvey post year end. The total facility is $500,000 and this facility was entered into on 18 September 2023. There was a drawdown of $305,000 on this facility as at the reporting date. The facility is also unsecured. The agreed interest rate on the unsecured loan is 10%. The facility will expire on 31 December 2025. Directors’ and Officers’ Interests and Benefits As at the date of this report, the direct and indirect interests of the Directors and officers in the securities of the Company are as follows: John McCarthy Tadao Tsubata Sarah Harvey Options Ordinary Shares 2,000,000 - 2,566,126 260,000 49,369,689 23,342,625 Note that no shares or options have been resolved to be issued by way of short term and long-term incentives to Directors. Equity based remuneration following the end of the reporting period and up to the date of this report There is no proposal to issue shares to Directors as part of their remuneration. End of audited remuneration report. 27 Dome Gold Mines Ltd and its controlled entities Directors’ Report ENVIRONMENTAL LEGISLATION The Group is subject to state, federal and international environmental legislation. The Group has complied with its environmental obligations and no environmental breaches have been notified by any Government agency to the date of this Directors’ Report and the Directors do not anticipate any obstacles in complying with the legislation. INDEMNITIES AND INSURANCE OF OFFICERS AND AUDITORS During the year, Dome paid a premium to insure officers of the Group. The officers of the Group covered by the insurance policy include all Directors. 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 Group, and any other payments arising from liabilities incurred by the officers in connection with such proceedings, other than where such liabilities arise out of 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 to cause detriment to the Group. Details of the amount of the premium paid in respect of insurance policies are not disclosed as such disclosure is prohibited under the terms of the contract. The Group has not otherwise, during or since the end of the financial year, except to the extent permitted by law, indemnified or agreed to indemnify any current or former officer or auditor of the Group against a liability incurred as such by an officer or auditor. NON-AUDIT SERVICES During the year, KPMG, the Company’s auditor, performed tax consulting and other services in addition to their statutory audit duties. It is important to note that all non-audit services performed by KPMG were approved by our Board of Directors. The Board confirm that the auditor is satisfied that the provision of those non-audit services is compatible with, and did not compromise, the auditor independence requirements of the Corporations Act 2001 for the following reasons: • all non-audit services were subject to the corporate governance procedures adopted by the Company to ensure they do not impact upon the impartiality and objectivity of the auditor; and • the non-audit services do not undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants, as they did not involve reviewing or auditing the auditor’s own work, acting in a management or decision-making capacity for the Company, acting as an advocate for the Company or jointly sharing risks and rewards. Details of the amounts paid to the auditor of the Company, KPMG, and its related practices for audit and non-audit services provided during the year are set out in Note 19 to the Financial Statements. PROCEEDINGS OF BEHALF OF THE COMPANY No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings. 28 Dome Gold Mines Ltd and its controlled entities Directors’ Report AUDITOR'S INDEPENDENCE DECLARATION A copy of the Auditor’s Independence Declaration as required under s307C of the Corporations Act 2001 is included on page 30 of this financial report and forms part of this Directors’ Report. Signed in accordance with a resolution of the Directors. J. V. McCarthy Chairman Sydney, 27 September 2023 29 Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of Dome Gold Mines Limited I declare that, to the best of my knowledge and belief, in relation to the audit of Dome Gold Mines Limited for the financial year ended 30 June 2023 there have been: i. ii. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and no contraventions of any applicable code of professional conduct in relation to the audit. KPMG KPM_INI_01 Adam Twemlow Partner Bundall 27 September 2023 PAR_SIG_01 PAR_NAM_01 PAR_POS_01 PAR_DAT_01 PAR_CIT_01 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. 30 Dome Gold Mines Ltd and its controlled entities Corporate Governance Statement The Board is committed to maintaining the highest standards of Corporate Governance. Corporate Governance is about having a set of core values and behaviours that underpin the Company's activities and ensure transparency, fair dealing and protection of the interests of stakeholders. The Company has reviewed its corporate governance practices against the Corporate Governance Principles and Recommendations (4th edition) published by the ASX Corporate Governance Council. The 2023 corporate governance statement is dated 27 September 2023 and reflects the corporate governance practices throughout the 2023 financial year. The board approved the 2023 corporate governance on 27 September 2023. A description of the Company’s current corporate governance practices is set out in the Company’s corporate governance statement, which can be viewed at https://domegoldmines.com.au/corporate-governance/. 31 Dome Gold Mines Ltd and its controlled entities Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2023 Other income Employee benefits expenses (including directors fees) Other expenses Depreciation Finance costs Share based payments (Loss)/gain on foreign exchange Impairment loss Loss before income tax expense Income tax expense Loss for the year Other comprehensive income for the year Items that may be reclassified subsequently to profit or loss: Exchange difference on translating foreign controlled entities Notes 2023 $ 2022 $ 4 5 6 14 7 9,064 1,710 (473,969) (461,907) (1,627,603) (5,981) (1,566) - (831) (890,329) (2,991,215) (1,355,431) (6,651) (11,930) (160,287) 5,103 - (1,989,393) - (2,991,215) - (1,989,393) 218,766 92,297 Total comprehensive loss for the year (2,772,449) (1,897,096) Earnings per share Basic and diluted loss per share (cents per share) 8 (0.85) (0.60) The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes. 32 Dome Gold Mines Ltd and its controlled entities Consolidated Statement of Financial Position as at 30 June 2023 CURRENT ASSETS Cash and cash equivalents Trade and other receivables Other assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment Right-of-use assets Capitalised exploration and evaluation expenditure Other assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Lease liabilities Trade and other payables Provisions TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Lease liabilities Borrowings TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Foreign currency translation reserve Share-based payment reserve Accumulated losses TOTAL EQUITY Notes 2023 $ 2022 $ 9 10 11 12 13 14 11 13 15 13 16 100,465 4,131,270 49,597 55,679 48,851 57,483 205,741 4,237,604 63,884 39,379 70,920 22,387 35,555,802 33,919,537 246,155 100,736 35,905,220 34,113,580 36,110,961 38,351,184 16,272 236,593 11,223 264,088 24,377 286,523 310,900 22,662 404,327 12,938 439,927 - - - 574,988 439,927 35,535,973 37,911,257 17 49,149,196 48,809,155 460,723 241,957 7,469,137 7,498,662 (21,543,083) (18,638,517) 35,535,973 37,911,257 The above consolidated statement of financial position should be read in conjunction with the accompanying notes. 33 Dome Gold Mines Ltd and its controlled entities Consolidated Statement of Changes in Equity for the year ended 30 June 2023 Foreign currency translation reserve $ Share- based payment reserve $ Issued capital $ Accumulated losses $ Total equity $ Balance at 1 July 2021 47,261,940 149,660 1,534,772 (17,082,675) 31,863,697 Transaction with owners Ordinary shares issued Transaction costs on issue of shares Share-based payments – equity transaction costs (note 28) Employee share-based payments Transfer between expiry of share options 8,745,380 (961,011) (6,237,154) - - Total transactions with owners 1,547,215 - - - - - - - - 6,237,154 160,287 - - - - 8,745,380 (961,011) - 160,287 (433,551) 433,551 - 5,963,890 433,551 7,944,656 Other comprehensive income Loss for the year Total comprehensive loss for the year - - - 92,297 - 92,297 - - - - 92,297 (1,989,393) (1,989,393) (1,989,393) (1,897,096) Balance at 30 June 2022 48,809,155 241,957 7,498,662 (18,638,517) 37,911,257 Balance at 1 July 2022 48,809,155 241,957 7,498,662 (18,638,517) 37,911,257 Transaction with owners Ordinary shares issued Transaction costs on issue of shares Share-based payments – equity transaction costs (note 28) Transfer between expiry of share options 456,000 (58,835) (57,124) - Total transactions with owners 340,041 - - - - - - - 57,124 - - - (86,649) 86,649 456,000 (58,835) - - (29,525) 86,649 397,165 Other comprehensive income Loss for the year Total comprehensive loss for the year - - - 218,766 - 218,766 - - - - 218,766 (2,991,215) (2,991,215) (2,991,215) (2,772,449) Balance at 30 June 2023 49,149,196 460,723 7,469,137 (21,543,083) 35,535,973 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes. 34 Dome Gold Mines Ltd and its controlled entities Consolidated Statement of Cash Flows for the year ended 30 June 2023 CASH FLOWS FROM OPERATING ACTIVITIES Interest received Cash paid to suppliers and employees Interest paid Other tax received Notes 2023 $ 2022 $ 9,064 1,638 (2,016,688) (1,836,565) (43) 6,207 (11,930) 3,591 Net cash used in operating activities 18 (2,001,460) (1,843,266) CASH FLOWS FROM INVESTING ACTIVITIES Cash paid on deposit/advance payment Purchase of property, plant & equipment Exploration cost payments capitalised Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Net Proceeds from issue of share capital, net of costs Proceeds from borrowings Repayment of lease liabilities Repayment of borrowings Net cash provided by financing activities (143,125) (17,377) (2,549,955) (2,710,457) 405,380 285,000 (9,982) - 680,398 (1,029) (60,170) (880,837) (942,036) 7,620,217 - (5,322) (899,453) 6,715,442 Net increase in cash and cash equivalents (4,031,519) 3,930,140 Cash and cash equivalents at the beginning of the financial year Exchange differences on cash and cash equivalents 4,131,270 714 200,568 562 Cash and cash equivalents at the end of the financial year 9 100,465 4,131,270 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes. 35 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements The Financial Report includes the consolidated financial statements and notes of Dome Gold Mines Ltd and controlled entities (‘Group’). 1 GENERAL INFORMATION AND STATEMENT OF COMPLIANCE The consolidated general purpose financial statements of the Group have been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board. Compliance with Australian Accounting Standards results in full compliance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The Group is a for-profit entity for the purpose of preparing the financial statements. The consolidated financial statements for the year ended 30 June 2023 were approved and authorised for issue by the Board of Directors on 27 September 2023. Dome Gold Mines Limited is the Group’s ultimate parent company. Dome Gold Mines Ltd is a public company limited by shares incorporated and domiciled in Australia on 8 July 2011. The registered office is Level 46, 680 George Street, Sydney 2000. Dome Gold Mines Ltd is the parent company with 100% ownership of: • Magma Mines Pty Ltd; • Dome Mines Pte Ltd (a company limited by shares incorporated in Fiji); and • Magma Mines Pte Ltd (a company limited by shares incorporated in Fiji). The principal activities of the Group during the financial year have been the continuing exploration and evaluation of the following projects in Fiji: • • • SPL1451 Ono Island, SPL1452 Nadrau; and SPL1495 Sigatoka Ironsands. 2 CHANGES IN ACCOUNTING POLICIES 2.1 New and revised standards that are effective and adopted by the Group The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. None of these are expected to have a material impact on the financial statements of the Group. 36 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES 3.1 Overall considerations The significant accounting policies that have been used in the preparation of these consolidated financial statements are summarised below. The consolidated financial statements have been prepared using the measurement bases specified by Australian Accounting Standards for each type of asset, liability, income and expense. The measurement bases are more fully described in the accounting policies below. 3.2 Basis of consolidation The Group financial statements consolidate those of the parent company and all of its subsidiary undertakings drawn up to 30 June 2023. The parent controls a subsidiary if it is exposed, or has rights, to variable returns from its investment with the subsidiary and has the ability to affect those returns through its power over the subsidiary. All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains and losses on transactions between Group companies. Where unrealised losses on intra- group asset sales are reversed on consolidation, the underlying asset is also tested for impairment from a group perspective. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group. Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the period are recognised from the effective date of acquisition, or up to the effective date of disposal, as applicable. 3.3 Business combination The Group applies the acquisition method in accounting for business combinations. The consideration transferred by the Group to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred and the equity interests issued by the Group, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred. The Group recognises identifiable assets acquired and liabilities assumed in a business combination regardless of whether they have been previously recognised in the acquiree’s financial statements prior to the acquisition. Assets acquired and liabilities assumed are generally measured at their acquisition-date fair values. Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the sum of (a) fair value of consideration transferred, (b) the recognised amount of any non-controlling interest in the acquiree and (c) acquisition-date fair value of any existing equity interest in the acquiree, over the acquisition-date fair values of identifiable net assets. If the fair values of identifiable net assets exceed the sum calculated above, the excess amount (i.e. gain on a bargain purchase) is recognised in profit or loss immediately. 3.4 Basis of measurement The consolidated financial statements have been prepared on the historical cost basis. 37 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 3.5 Foreign currency transactions and balances Functional and presentation currency The consolidated financial statements are presented in Australian dollars (AUD), which is also the functional currency of the parent company. Foreign currency transactions and balances Foreign currency transactions are translated into the functional currency of the respective Group entity, using the exchange rates prevailing at the dates of the transactions (spot exchange rate). Foreign exchange gains and losses resulting from the settlement of such transactions and from the re-measurement of monetary items at period end exchange rates are recognised in profit or loss. Non-monetary items are not retranslated at period-end and are measured at historical cost (translated using the exchange rates at the date of the transactions), except for non-monetary items measured at fair value which are translated using the change rates at the date when fair value was determined. Foreign operations In the Group's financial statements, all assets, liabilities and transactions of Group entities with a functional currency other than the AUD are translated into AUD upon consolidation. The functional currency of the entities in the Group has remained unchanged during the reporting period. On consolidation, assets and liabilities have been translated into AUD at the closing rate at the reporting date. Goodwill and fair value adjustments arising on the acquisition of a foreign entity have been treated as assets and liabilities of the foreign entity and translated into AUD at the closing rate. Income and expenses have been translated into AUD at the average rate over the reporting period. Exchange differences are charged/credited to other comprehensive income and recognised in the currency translation reserve in equity. On disposal of a foreign operation the cumulative translation differences recognised in equity are reclassified to profit or loss and recognised as part of the gain or loss on disposal. 3.6 Segment Reporting Determination and presentation of operating segments The Group determines and presents operating segments based on the information that is provided internally to the management. An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. All operating segments’ operating results are regularly reviewed by the Group’s management to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. Segment results that are reported to the management include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Company’s headquarter), head office expenses, and income tax assets and liabilities. Segment capital expenditure is the total costs incurred during the period to acquire property, plant and equipment, and intangible assets other than goodwill. 3.7 Exploration and evaluation expenditure Exploration and evaluation costs, including the costs of acquiring licences, are capitalised as exploration and evaluation assets on an area of interest basis. 38 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 3.7 Exploration and evaluation expenditure (Continued) Exploration and evaluation assets are only recognised if the rights of the area of interest are current and either: • the expenditures are expected to be recouped through successful development and exploitation of the area of interest; or • activities in the area of interest have not at the reporting date, reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves and active and significant operations in, or in relation to, the area of interest are continuing. Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility and commercial viability and facts and circumstances suggest that the carrying amount exceeds the recoverable amount. For the purposes of impairment testing, exploration and evaluation assets are allocated to cash generating units to which the exploration activity relates. The cash generating unit shall not be larger than the area of interest. Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for impairment and then reclassified from exploration and evaluation expenditure to mining property and development assets within property, plant and equipment. 3.8 Property, plant and equipment Plant and equipment and computer equipment Plant and equipment (comprising fittings and furniture) and computer equipment are initially recognised at acquisition cost or manufacturing cost, including any costs directly attributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by the Group’s management. Plant and equipment and computer equipment are measured on the cost basis less subsequent depreciation and impairment losses. Depreciation The depreciable amount of all fixed assets is recognised on a straight-line basis to write down the cost over the assets' estimated useful lives to the Group commencing from the time the asset is ready for use. The depreciation rates and useful lives used for each class of depreciable assets are: Class of fixed asset Useful Lives Depreciation basis Exploration computer equipment 2.5-4.2 years Prime cost Exploration furniture and fittings Exploration plant and equipment Office equipment 3-8.3 years 4-8.3 years 2-20 years Prime cost Prime cost Prime cost Gains or losses arising on the disposal of property, plant and equipment are determined as the difference between the disposal proceeds and the carrying amount of the assets and are recognised in profit or loss within other income or other expenses. 39 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 3.9 Income tax The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable. Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for: • When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or • When the taxable temporary difference is associated with interests in subsidiaries and the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset. Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously. 3.10 Revenue Revenue from contracts with customers The Group currently does not have any revenue. The SPL licenses of the Group only permit the Group to carry out exploration activities. Once the Group reaches the production phase, revenue will be recognised using the 5-step process: 1 Identifying the contract with a customer 2 Identifying the performance obligations 3 Determining the transaction price 4 Allocating the transaction price to the performance obligations 5 Recognising revenue when/as performance obligation(s) are satisfied. The total transaction price for a contract is allocated amongst the various performance obligations based on their relative stand-alone selling prices. The transaction price for a contract excludes any amounts collected on behalf of third parties. Interest Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset. 40 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 3.11 Government grants Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognised against the asset released to profit or loss over the expected useful life of the related asset as a reduced depreciation charge. 3.12 Goods and services tax (GST) Revenues, expenses and assets are recognised exclusive of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian or Fiji Taxation Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST. Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. 3.13 Cash and cash equivalents Cash and cash equivalents comprise cash balances and call deposits with a maturity of three months or less. 3.14 Financial instruments Recognition and derecognition Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the financial instrument. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires. Classification and initial measurement of financial assets Except for those trade receivables that do not contain a significant financing component and are measured at the transaction price in accordance with AASB 15, all financial assets are initially measured at fair value adjusted for transaction costs (where applicable). Financial assets, other than those designated and effective as hedging instruments, are classified into the following categories: • amortised cost • fair value through profit or loss (FVTPL) • fair value through other comprehensive income (FVOCI). In the periods presented the corporation does not have any financial assets categorised as FVOCI. The classification is determined by both: • the entity’s business model for managing the financial asset • the contractual cash flow characteristics of the financial asset. All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade receivables which is presented within other expenses. 41 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 3.14 Financial instruments (Continued) Subsequent measurement of financial assets Financial assets at amortised cost Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVTPL): • they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows • the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and most other receivables fall into this category of financial instruments. Financial assets at fair value through profit or loss (FVTPL) Financial assets that are held within a different business model other than ‘hold to collect’ or ‘hold to collect and sell’ are categorised at fair value through profit and loss. Further, irrespective of business model financial assets whose contractual cash flows are not solely payments of principal and interest are accounted for at FVTPL. All derivative financial instruments fall into this category. Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair values of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists. Impairment of financial assets AASB 9’s impairment requirements use more forward-looking information to recognise expected credit losses – the ‘expected credit loss (ECL) model’. This replaced AASB 139’s ‘incurred loss model’. Instruments within the scope of the new requirements included loans and other debt-type financial assets measured at amortised cost and FVOCI, trade receivables, contract assets recognised and measured under AASB 15 and loan commitments and some financial guarantee contracts (for the issuer) that are not measured at fair value through profit or loss. Recognition of credit losses is no longer dependent on the Group first identifying a credit loss event. Instead the Group considers a broader range of information when assessing credit risk and measuring expected credit losses, including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument. In applying this forward-looking approach, a distinction is made between: • financial instruments that have not deteriorated significantly in credit quality since initial recognition or that have low credit risk (‘Stage 1’) and • financial instruments that have deteriorated significantly in credit quality since initial recognition and whose credit risk is not low (‘Stage 2’). ‘Stage 3’ would cover financial assets that have objective evidence of impairment at the reporting date. ‘12-month expected credit losses’ are recognised for the first category while ‘lifetime expected credit losses’ are recognised for the second category. 42 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 3.14 Financial instruments (continued) Measurement of the expected credit losses is determined by a probability-weighted estimate of credit losses over the expected life of the financial instrument. Classification and measurement of financial liabilities The Group’s financial liabilities include borrowings, trade and other payables and derivative financial instruments. Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless the Group designated a financial liability at fair value through profit or loss. Subsequently, financial liabilities are measured at amortised cost using the effective interest method except for derivatives and financial liabilities designated at FVTPL, which are carried subsequently at fair value with gains or losses recognised in profit or loss (other than derivative financial instruments that are designated and effective as hedging instruments). All interest-related charges and, if applicable, changes in an instrument’s fair value that are reported in profit or loss are included within finance costs or finance income. 3.15 Significant accounting judgments and key estimates The preparation of financial reports requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Estimates and assumptions are continuously evaluated and are based on management’s experience and other factor, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes would differ from these estimates if different assumptions were used and different conditions existed. In particular, the Group has identified the following areas where significant judgements, estimates and assumptions are required, and where actual results were to differ, may materially affect the financial position or financial results reported in future periods. (i) Income tax The Group is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required in determining the provision for income tax. There are many transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The Group recognises liabilities for anticipated tax audit issues based on the Group's current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying amounts, such differences will impact the current and deferred tax provisions in the period in which such determination is made. 43 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 3.15 Significant accounting judgments and key estimates (Continued) (ii) Exploration and evaluation expenditure (Note 14) acquisition of rights to explore; or topographical or geological costs; or drilling and/or trenching; or sampling and assaying; or feasibility studies; or Indirect costs associated with above mentioned costs All exploration and evaluation expenditure ($35,555,802 on 30 June 2023) (2022: $33,919,537) has been capitalised on the basis that: Expenditure relates to: • - - - - - - the expenditures are expected to be recouped through successful development and exploitation of the area of interest; or activities in the area of interest have not at the reporting date, reached a stage which permits a reasonable assessment of the existence or other wise of economically recoverable reserves and active and significant operations in, or in relation to, the area of interest are continuing. The renewal of exploration licences is expected to be a routine process up until such a point as the entity is able to apply for a mining licence. • • • (iii) Going concern (Note 3.16) 3.16 Going concern The consolidated financial statements have been prepared on a going concern basis which contemplates the realisation of assets and settlement of liabilities in the ordinary course of business. During the year ended 30 June 2023 the Group incurred a trading loss of $2,991,215 (2022: $1,989,393) and used $4,551,415 (2022: $2,724,103) of net cash in operations including payments for exploration. At 30 June 2023 the Group had a cash balance of $100,465 (2022: $4,131,270), and current liabilities exceeded current assets by $58,347 (2022: current assets exceeded current liabilities by $3,797,677). As set out in note 16, there existed debt facilities of $3,713,477 which were unused as at 30 June 2023 and are provided by privately owned entities. A further $500,000 facility was provided to the Group by an existing lender on 24 August 2023, and on 18 September 2023 an additional $500,000 facility was provided to the Group by a related party. The facilities will expire on 31 December 2025. Subsequent to 30 June 2023, the Group has drawn down a further $711,775 of debt against these facilities. The Directors have prepared cash flow projections for the period through to 30 September 2024 that support the ability of the Group to continue as a going concern. These cash flow projections assume the Group continues substantial exploration activities in the areas of interest, which will require additional funding from shareholders or other partiers that is yet to be secured at the date of this report. The ongoing operation of the Group is dependent upon: • the Group raising additional funding from shareholders or other parties; and/or • the Group reducing expenditure in line with available funding. 44 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 3.16 Going concern (continued) These conditions give rise to a material uncertainty that may cast significant doubt upon the Group’s ability to continue as a going concern. In the event that the Group does not obtain additional funding, the achievement of which is inherently uncertain, and/or the Group does not reduce expenditure in line with available funding, it may not be able to continue its operations as a going concern and therefore may not be able to realise its assets, including the capitalised exploration and evaluation expenditure of $35,555,802 at 30 June 2023, and extinguish its liabilities in the ordinary course of operations and at the amounts stated in the consolidated financial report. 3.17 Impairment testing of non- financial assets For impairment assessment purposes, assets are grouped at the lowest levels for which there are largely independent cash inflows (cash-generating units). As a result, some assets are tested individually for impairment and some are tested at cash-generating unit level. All other individual assets or cash- generating units are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the assets’ or cash-generating unit's carrying amount exceeds its recoverable amount, which is the higher of fair value less costs to sell and value-in- use. To determine the value-in-use, management estimates expected future cash flows from each cash- generating unit and determines a suitable interest rate in order to calculate the present value of those cash flows. The data used for impairment testing procedures are directly linked to the Group's latest approved budget, adjusted as necessary to exclude the effects of future reorganisations and asset enhancements. Discount factors are determined individually for each cash-generating unit and reflect management’s assessment of respective risk profiles, such as market and asset-specific risks factors. With the exception of goodwill, all assets are subsequently reassessed for indications that an impairment loss previously recognised may no longer exist. An impairment charge is reversed if the cash-generating unit’s recoverable amount exceeds its carrying amount. 3.18 Equity and reserves Share capital represents the fair value of shares that have been issued. Any transaction costs associated with the issuing of shares are deducted from share capital, net of any related income tax benefits. Other components of equity include the following: • • Foreign currency translation reserve – comprises foreign currency translation differences arising on the translation of financial statements of the Group's foreign entities into AUD; and Share-based payment reserve – comprises fair value of options granted to the Company’s Directors and contractor, the issue of options in lieu of services provided as part of equity transactions, and the issue of options to extinguish debt; and • Retained earnings include all current and prior period retained losses. 45 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 3.19 Employee benefits Short-term employee benefits Short-term employee benefits are benefits, other than termination benefits, that are expected to be settled wholly within twelve (12) months after the end of the period in which the employees render the related service. Examples of such benefits include wages and salaries, non-monetary benefits and accumulating sick leave. Short-term employee benefits are measured at the undiscounted amounts expected to be paid when the liabilities are settled. Other long-term employee benefits The Group’s liabilities for annual leave are included in other long-term benefits as they are not expected to be settled wholly within twelve (12) months after the end of the period in which the employees render the related service. They are measured at the present value of the expected future payments to be made to employees. 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. 3.20 Right-of-use assets A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset. Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities. The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred. 3.21 Lease liabilities A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down. 46 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 3.22 Share-based payments The Group operates equity-settled share-based payments for its directors, contractors and brokers in exchange for the rendering of services. Equity-settled share-based payments were also provided for a loan settlement. None of the Group’s plans feature any options for a cash settlement. All compensation or goods and services received in exchange for the grant of any share-based payment are measured at their fair values. Where the Company’s Directors, contractors and brokers are rewarded using share-based payments, the fair values are determined indirectly by reference to the fair value of the equity instruments granted. This fair value is appraised at the grant date and excludes the impact of non- market vesting conditions (for example profitability and sales growth targets and performance conditions). The cost of equity-settled share-based payments provided for directors’ remuneration and other services are ultimately recognised as an expense in profit or loss with a corresponding credit to share-based payment reserve. If vesting periods or other vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. The cost of equity-settled share-based payments provided for brokers rendering fund raising services is recognised as issue costs under equity with a corresponding credit to share-based payment reserve. If vesting periods or other vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. Upon exercise of share options, the proceeds received net of any directly attributable transaction costs are allocated to share capital. 4 OTHER INCOME Interest income Total other income 5 OTHER EXPENSES Consultant expenses Office expenses Other expenses Short-term lease expenses Total other expenses 6 FINANCE COSTS 2023 $ 9,064 9,064 1,153,056 264,760 113,691 96,096 1,627,603 2022 $ 1,710 1,710 967,197 237,908 57,926 92,400 1,355,431 Interest expenses for borrowings at amortised cost - Related party - Third party Other Total finance costs - 1,523 43 1,566 424 11,506 - 11,930 47 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 7 INCOME TAX (a) Income tax expense/(benefit) Current tax Deferred tax (b) Reconciliation of income tax expense to prima facie tax payable: Loss before tax Prima facie income tax benefit at the Australian tax rate of 25% (2022: 25%) Increase/(decrease) in income tax expense due to: Assessable income/ non-deductible expenses Allowable deductions* Tax loss not recognised Effect of net deferred tax assets/(liabilities) not recognised Impact of overseas tax differential Income tax expense/(benefit) (c) Unrecognised deferred tax assets Deferred tax balances have not been recognised in respect of the following items: Tax loss Other deferred tax assets Deferred tax liability in relation to exploration costs Net deferred tax assets not recognised 2023 $ - - - 2022 $ - - - (2,991,215) (1,989,393) (747,804) (497,348) 356,566 (2,056,109) 2,032,661 1,124 413,562 - 6,170,499 28,955 (2,705,002) 3,494,452 44,369 - 445,936 6,451 592 - 4,145,786 18,766 (1,140,649) 3,023,903 * From 1 Aug 2022, exploration expenditures are fully tax deductable against the gross income in Fiji and any excess losses are carried forward to be allowed as a deduction against the gross income from mining operations in the title area until the losses have been fully deducted. 8 LOSS PER SHARE Basic and diluted loss per share have been calculated using: Loss for the year attributable to equity holders of the Company (2,991,215) (1,989,393) No of Shares Weighted average number of shares at the end of the year used in basic and diluted loss per share 351,781,999 329,706,352 Basic and diluted loss per share (cents) (0.85) (0.60) As the Group is loss making, none of the potentially dilutive securities are currently dilutive. 48 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 9 CASH AND CASH EQUIVALENTS For the purpose of the Statement of Cash Flows, cash includes cash on hand, cash at bank and short term deposits at call, net of any outstanding bank overdraft, if any. Cash at the end of the year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows Cash at bank Total cash and cash equivalents 10 TRADE AND OTHER RECEIVABLES Other receivables Other tax receivables Total trade and other receivables 11 OTHER ASSETS Current Bond deposit Prepayments Total other current assets Non-current Bond deposit (refer to note below) Other Total other non-current assets 2023 $ 100,465 100,465 845 48,752 49,597 7,500 48,179 55,679 243,023 3,132 246,155 2022 $ 4,131,270 4,131,270 26 48,825 48,851 7,500 49,983 57,483 97,698 3,038 100,736 Bond deposits are held as security against tenements held by the Group. These are restricted until exploration licenses are relinquished or transferred to a separate license. 49 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 12 PROPERTY, PLANT AND EQUIPMENT Exploration computer equipment At cost Less accumulated depreciation (depreciation is capitalised as deferred expenditure) Total exploration computer equipment Exploration furniture and fittings At cost Less accumulated depreciation (depreciation is capitalised as deferred expenditure) Total exploration furniture and fittings Exploration plant and equipment At cost Less accumulated depreciation (depreciation is capitalised as deferred expenditure) Total exploration plant and equipment Office equipment At cost Less accumulated depreciation Total office equipment Total 2023 $ 4,868 (3,403) 1,465 14,290 (13,013) 1,277 569,364 (520,976) 48,388 58,758 (46,004) 12,754 63,884 2022 $ 6,159 (4,583) 1,576 13,501 (12,904) 597 549,049 (486,260) 62,789 52,952 (46,994) 5,958 70,920 50 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 12 PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Movements in carrying amounts Movements in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Exploration computer equipment $ Exploration furniture and fittings $ Exploration plant and equipment $ Office equipment Total $ $ Gross carrying amount Balance at 1 July 2021 Additions Disposals Net exchange difference Balance at 30 June 2022 Depreciation and impairment Balance at 1 July 2021 Depreciation Disposals Net exchange difference 5,620 1,433 (966) 72 6,159 (4,749) (745) 966 (55) 14,080 - (830) 251 13,501 494,340 68,629 (22,519) 8,599 549,049 51,647 1,305 - - 565,687 71,367 (24,315) 8,922 52,952 621,661 (12,552) (472,663) (40,343) (530,307) (959) 830 (223) (19,003) (6,651) (27,358) 13,620 (8,214) - - 15,416 (8,492) Balance at 30 June 2022 (4,583) (12,904) (486,260) (46,994) (550,741) Carrying amount as at 30 June 2022 1,576 597 62,789 5,958 70,920 Exploration computer equipment $ Exploration furniture and fittings $ Exploration plant and equipment $ Office equipment Total $ $ 6,159 1,511 (2,898) 96 4,868 13,501 874 (502) 417 14,290 549,049 3,465 - 16,850 569,364 52,952 12,777 (6,971) - 621,661 18,627 (10,371) 17,363 58,758 647,280 Gross carrying amount Balance at 1 July 2022 Additions Disposals Net exchange difference Balance at 30 June 2023 Depreciation and impairment Balance at 1 July 2022 (4,583) (12,904) (486,260) (46,994) (550,741) Depreciation Disposals Net exchange difference (377) 1,648 (91) (213) 502 (398) (19,804) (5,981) (26,375) - 6,971 9,121 (14,912) - (15,401) Balance at 30 June 2023 (3,403) (13,013) (520,976) (46,004) (583,396) Carrying amount as at 30 June 2023 1,465 1,277 48,388 12,754 63,884 51 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 13 LEASES The Group entered a long-term operating lease commitment for a motor vehicle in Fiji on 1 November 2022. The lease is reflected on the balance sheet as a right-of-use asset and a lease liability. The Group had a long-term operating lease commitment of office lease in Fiji from 1 April 2022 to 30 June 2023. The lease was reflected on the balance sheet as a right-of-use asset and a lease liability. Subsequent to year end, the Group entered into a new long-term operating lease agreement of office lease in Fiji from 1 July 2023 to 30 June 2025.The monthly lease payment is set to be F$3,500. The table below describes the nature of the Group’s leasing activities recognised on the balance sheet. Right-of-use assets No of right- of-use assets leased Remaining lease term No of leases with extension options No of leases with options to purchase Motor vehicle Office 1 1 28 months - - - - - No of leases with variable payments linked to an index - - No of leases with termination options - - The Group has a short-term operating lease commitment of office lease in Australia, expiring within one month. The Group elects to apply the recognition exemptions of AASB 16 to the lease and recognises lease payments as an expense on a straight-line basis. Right-of-use Assets the amount of the initial measurement of lease liability Right-of-use assets are measured at cost comprising the following: • • any lease payments made at or before the commencement date less any lease incentives received • any initial direct costs, and • restoration costs. Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life. Right-of-use assets are presented in the statement of financial position as follows: Non-current assets Right-of-use assets Less: Accumulated depreciation Consolidated 2023 $ 50,630 (11,251) 39,379 2022 $ 27,984 (5,597) 22,387 As at the reporting date, the consolidated entity has one leased office premise under operating leases expiring in one year, with in certain instances options to extend. On renewal, the terms of the lease are renegotiated. 52 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 13 LEASES (CONTINUED) Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Consolidated Balance at 30 June 2022 Additions Other adjustment of depreciation capitalised Balance at 30 June 2023 Right-of-use assets Motor vehicle Office Total right-of-use assets Lease Liabilities $ 22,387 50,630 (33,638) 39,379 30 June 2023 $ 30 June 2022 $ 39,379 - 39,379 - 22,387 22,387 Lease liabilities include the net present value of the following lease payments: • • variable lease payment that are based on an index or a rate, initially measured using the index or rate fixed payments (including in-substance fixed payments), less any lease incentives receivable; as at the commencement date; • amounts expected to be payable by the Group under residual value guarantees; • the exercise price of a purchase option if the group is reasonably certain to exercise that option; and • payments of penalties for terminating the lease, if the lease term reflects the group exercising that option. Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the entity’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. To determine the incremental borrowing rate, the Group uses recent arm's length borrowing rate received as a starting point, adjusted to reflect changes in financing conditions since borrowing was received, making adjustments specific to the lease (e.g. term, country, currency and security). Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Lease liabilities are presented in the statement of financial position as follows: Current Non-current Total lease liabilities 16,272 24,377 40,649 22,662 - 22,662 53 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 13 LEASES (CONTINUED) The lease liabilities are secured by the related underlying assets. Future minimum lease payments as at 30 June 2023 were as follows: 30 June 2023 Lease payments Finance charges Net present value 30 June 2022 Lease payments Finance charges Net present value Minimum lease payments due Within one year $ 19,442 (3,170) 16,272 One to three years $ 25,923 (1,546) 24,377 23,711 (1,049) 22,662 - - - Total $ 45,365 (4,716) 40,649 23,711 (1,049) 22,662 Additional profit or loss and cash flow information Amounts recognised in the statement of profit or loss and other comprehensive income: Depreciation* Interest expenses on lease* Short-term lease expenses Amounts recognised in the statement of cash flows: 30 June 2023 $ - - 96,096 30 June 2022 $ - - 92,400 Repayment of lease liabilities Short-term lease payments Amount recognised as part of exploration cost payments capitalised Total cash outflow in respect of leases in the year 9,982 96,408 27,423 133,813 5,322 92,700 9,497 107,519 *Depreciation of $34,330 and Interest of $4,061 on lease were capitalised into exploration and evaluation expenditure as at 30 June 2023. 14 CAPITALISED EXPLORATION AND EVALUATION EXPENDITURE Balance at 1 July 2021 Expenditure capitalised during the year Balance at 30 June 2022 Balance at 1 July 2022 Expenditure capitalised during the year Impairment Balance at 30 June 2023 $ 32,619,597 1,299,940 33,919,537 33,919,537 2,526,594 (890,329) 35,555,802 The ultimate recoupment of these costs is dependent on the successful development and exploitation, or alternatively sale, of the respective areas of interest. 54 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 14 CAPITALISED EXPLORATION AND EVALUATION EXPENDITURE (CONTINUED) The Directors have considered the requirements of AASB 6: Exploration for and Evaluation of Mineral Resources including requirements pertinent to impairment indicators for each area of interest. The SPL 1452 licence expired on August 26, 2022. An application for renewal of the SPL had been submitted to MRD during August 2022. Although an initial decision was made not to approve Dome’s renewal application, in August 2023 the MRD rescinded this decision and terms on the renewal are presently being negotiated. Refer to Note 24 for further details. As at 30 June 2023, the Group assessed its exploration and evaluation expenditure assets for impairment. Based on the renewal of SPL 1452 being initially rejected, a full impairment of $890,329 for the capitalised exploration and evaluation expenditure in this area was recorded during the year. The Company will continue to monitor the progress of the renewal and will reassess the carrying value in future periods. 15 TRADE AND OTHER PAYABLES Current Accruals Trade creditors Other payables Total trade and other payables 16 BORROWINGS Non-current Loan from third party Total borrowings 2023 $ 109,222 118,930 8,441 236,593 286,523 286,523 2022 $ 282,757 115,120 6,450 404,327 - - The Company has one loan facility with a related party and one loan facility with a third party as at the reporting date. The outstanding loan payable including principal and interest on the third party loan facility as at 30 June 2023 is $286,523 (2022: Nil). The agreed interest rate on this unsecured loan is 10%. The facility is not secured. As at reporting date the facility limit is $500,000 and expires on 30 April 2025. On 24 August 2023 the facility limit was increased to $1,000,000 and extended to 31 December 2025. There is no outstanding loan payable on the related party facility as at 30 June 2023 (2022: Nil). As at reporting date the total facility limit with this related party is $3,500,000, and expires on 31 December 2025. The agreed interest rate on the unsecured loan is 5%. The facility is not secured. 55 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 17 ISSUED CAPITAL 2023 2022 Shares $ Shares $ Ordinary shares fully paid 353,214,136 49,149,196 350,104,136 48,809,155 Movements in ordinary share capital Ordinary shares No. of shares $ Balance at 1 July 2021 306,377,236 47,261,940 Fully paid ordinary shares issued 15 July 2021 at $0.20 3,000,000 600,000 Fully paid ordinary shares issued 18 August 2021 at $0.20 9,706,900 1,941,380 Fully paid ordinary shares issued 13 September 2021 at $0.20 Fully paid ordinary shares issued 18 October 2021 at $0.20 Fully paid ordinary shares issued 6 December 2021 at $0.20 1,000,000 1,000,000 1,000,000 200,000 200,000 200,000 Fully paid ordinary shares issued 13 December 2021 at $0.20 15,000,000 3,000,000 Fully paid ordinary shares issued 20 April 2022 at $0.20 12,500,000 2,500,000 Fully paid ordinary shares issued 29 June 2022 at $0.20 520,000 104,000 Less costs of issue* Balance at 30 June 2022 - (7,198,165) 350,104,136 48,809,155 *Included in costs of issue are cash payments of $961,011 and $6,237,154 in respect of the fair value of options issued to brokers in lieu of service (see note 28). Balance at 1 July 2022 Fully paid ordinary shares issued 21 November 2022 at $0.225 Fully paid ordinary shares issued 16 December 2022 on exercise of options at $0.10 Fully paid ordinary shares issued 30 January 2023 on exercise of options at $0.10 Less costs of issue** Balance at 30 June 2023 350,104,136 48,809,155 1,160,000 261,000 1,300,000 130,000 650,000 - 65,000 (115,959) 353,214,136 49,149,196 **Included in costs of issue are cash payments of $58,835 and $57,124 in respect of the fair value of options issued to brokers in lieu of service (see note 28). The share capital of Dome Gold Mines consists only of fully paid ordinary shares. All shares are equally eligible to receive dividends and the repayment of capital and represent one vote at the shareholders' meeting of Dome Gold Mines. 56 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 18 CASH FLOW INFORMATION Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows: Reconciliation of cash Cash and cash equivalents Reconciliation of cash flow from operations with loss from ordinary activities after income tax Loss from ordinary activities after income tax Non-cash flows in loss from ordinary activities Depreciation and amortisation Impairment loss Loss/(gain) on exchange differences Changes in other assets and liabilities Decrease in trade receivables and other assets Increase/(decrease) in trade and other payables Share based payments 2023 $ 2022 $ 100,465 4,131,270 (2,991,215) (1,989,393) 5,981 890,329 796 (1,412) 1,222 92,839 - 6,651 - (5,226) (5,958) 39,113 (48,740) 160,287 Net cash used in operating activities (2,001,460) (1,843,266) Non-cash financing activities includes share-based payments issued to brokers in lieu of services provided of $57,124 (2022: $6,237,154). Refer to note 17 for further details. 19 REMUNERATION OF AUDITORS During the year, the following services were paid or payable for services provided by the auditor of the company: Audit services -Grant Thornton Audit Pty Ltd -KPMG Total remuneration of auditor Assurance services Auditors of the Group - KPMG -Audit and review of other financial statements Total remuneration of auditor Other services Auditors of the Group - KPMG -Taxation advise and tax compliance services -Other – company secretarial Total remuneration of auditor - 75,000 75,000 15,125 15,125 36,363 17,714 54,077 *Expenses incurred prior to KPMG being appointed as the auditor of the Group. 85,000 - 85,000 10,502* 10,502 32,267* 852* 33,119 57 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 20 RELATED PARTY TRANSACTIONS Transactions with key management personnel Key management of the Group are Dome’s members of Board of Directors. Key management personnel remuneration is shown in the table below: Short term employee benefits Cash salaries and fees Total short-term employee benefits Post-employment benefits Superannuation Total post-employment benefits 2023 $ 264,200 264,200 2,520 2,520 2022 $ 219,075 219,075 - - Share-based payments - 160,287 Total remuneration 266,720 379,362 The Group has a loan facility with a company which is a related party of Mr Tadao Tsubata. There is no outstanding loan payable on the related party facility as at 30 June 2023 (2022: Nil). The total facility of the Company with this related party is $3,500,000 as at 30 June 2023. There was a drawdown of $183,456 on 18 August 2023 to bring the total facility down to $3,316,544 as at the reporting date. The facility is not secured. The agreed interest rate on the unsecured loan is 5%. The facility has been extended to 31 December 2025 during the reporting period. The Group entered into another new loan facility with a company which is a related party of Ms Sarah Harvey post the end of the year. The total facility is $500,000 and this facility was entered into on 18 September 2023. There was a drawdown of $305,000 on this facility as at the reporting date. The facility is also unsecured. The agreed interest rate on the unsecured loan is 10%. The facility will expire on 31 December 2025. There are no other related party transactions during the year ended 30 June 2023. 21 CONTINGENCIES AND COMMITMENTS Minimum tenement expenditure requirements Within one year Between one to five years Total - 33,718 33,718 1,720,304 2,596,774 4,317,078 The minimum tenement expenditure requirements are guidelines only by the Mineral Resources Department in Fiji. SPL 1495 has been renewed for another 3 years from 27th April 2022 to 26th April 2025, SPL 1451 expired on 24 June 2023, and SPL 1452 expired on 26 August 2022. As outlined below, both SPL 1452 and SPL 1451 are currently in the process of being renewed. An application to renew SPL1451 for a further 3-year period was submitted to the Mineral Resources Department with an estimated commitment of $1,100,000 on 15 August 2023. The SPL remains in the control of the Company during the renewal application period and the Company has no reason to believe that the renewal will not be granted. 58 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 21 CONTINGENCIES AND COMMITMENTS (CONTINUED) In August 2022, the licence related to SPL 1452 expired. An application to renew SPL1452 for a further 3- year period was submitted to the Mineral Resources Department (MRD) with an estimated commitment of $800,000 on 26 August 2022. The renewal application of SPL1452 was not approved, and the appeal regarding the renewal of the licence was dismissed. In August 2023, Dome was further advised by MRD that the earlier decision had been rescinded and Dome was invited to negotiate terms for the renewal of the SPL1452. The Company is currently negotiating the renewal of SPL 1452. The Company will continue to monitor the progress of the renewal and will reassess the carrying value in future periods. Additional bond requirements Within one year Between one to five years Total Bond deposits 2023 $ 67,898 - 67,898 2022 $ - 65,863 65,863 As at 30 June 2023, the Group has bond deposits totalling $250,523 (2022: $105,198), $237,643 out of which were provided to MRD. There are no other contingent assets or liabilities as at the date of this financial report. 22 SEGMENT REPORTING Segment information is presented in respect of the Group’s management and internal reporting structure. Transactions with business segments are determined on an arm’s length basis. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly income earning assets, interest bearing loans, borrowings and expenses, and corporate assets and expenses. 59 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 22 SEGMENT REPORTING (CONTINUED) Business segments For the year ended 30 June 2023 the Group principally operated in Fiji in the mineral exploration sector. The Group has two reportable segments, as described below. Operating Segment Ironsand Project Gold Projects $ $ Unallocated Consolidated total $ $ 30 June 2022 Segment revenue External revenue Finance income Total revenue Depreciation Share based payments - 715 715 - - - 381 381 - - - 614 614 - 1,710 1,710 (6,651) (160,287) (6,651) (160,287) Segment profit/(loss) (4,453) (8,336) (1,976,604) (1,989,393) Segment assets 31,075,652 3,074,258 4,201,274 38,351,184 Segment liabilities 330,271 804 108,852 439,927 30 June 2023 Segment revenue External revenue Finance income Total revenue Depreciation - 117 117 - - 127 127 - 8,820 8,820 - 9,064 9,064 - (5,981) (5,981) Segment profit/(loss) (34,233) (906,786) (2,050,196) (2,991,215) Segment assets 33,638,284 2,288,865 183,812 36,110,961 Segment liabilities 85,589 7,958 481,441 574,988 60 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 22 SEGMENT REPORTING (CONTINUED) Reconciliation of reportable segment profit & loss, assets and liabilities Loss before tax Loss before tax for reportable segment Prepayments Other loss before tax unallocated Consolidated loss before tax Assets Total assets for reportable segments Prepayments Other assets unallocated Consolidated assets Liabilities Total liabilities for reportable segments Prepayments Other liabilities unallocated Consolidated liabilities 23 PARENT ENTITY DISCLOSURES 2023 $ 2022 $ (941,019) (2,050,196) (2,991,215) 35,927,149 183,812 36,110,961 93,547 481,441 574,988 (12,789) (1,976,604) (1,989,393) 34,149,910 4,201,274 38,351,184 331,075 108,852 439,927 As at and throughout the financial year ended 30 June 2023 the parent entity of the Group was Dome Gold Mines Ltd. Statement of profit or loss and other comprehensive income Net loss for the year Other comprehensive income Total comprehensive loss Statement of financial position Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Net assets Equity Issued capital Accumulated losses Share-based payment reserve Total equity (2,130,401) 130,770 (1,999,631) 1,598,048 35,135,593 36,733,641 219,189 286,523 505,712 36,227,929 49,166,197 (20,407,405) 7,469,137 36,227,929 (1,976,213) 99,852 (1,876,361) 10,491,756 27,441,226 37,932,982 119,588 - 119,588 37,813,394 48,809,155 (18,494,423) 7,498,662 37,813,394 The Directors are of the opinion that no contingencies existed at, or subsequent to year end. 61 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 24 POST-REPORTING DATE EVENTS Subsequent to the end of the financial year: Renewal of SPL1452 An application to renew SPL1452 for a further 3-year period was submitted to the Mineral Resources Department on 26 August 2022, the expiry date of the current licence. While the renewal application is being processed the licence remains in force. The remaining commitment of $1,075,306 lapsed on the renewal date of 26 August 2022. The renewal application included an estimated commitment of $800,000. Although an initial decision was made not to approve Dome’s renewal application, in August 2023 the MRD rescinded this decision and terms on the renewal are presently being negotiated. Renewal of SPL1451 An application to renew SPL1451 for a further 3-year term was lodged with MRD in Aug 2023, The licence is still in force during the renewal process. The directors consider that there is no reason that the renewal will not be granted. Fund raising The Group further extended the current $500,000 loan facility to $1,000,000 with an existing lender on 24 August 2023. The facilities will expire on 31 December 2025. Furthermore, the Group entered into another new loan facility with a company which is a related party of Ms Sarah Harvey post year end. The total facility is $500,000 and this facility was entered into on 18 September 2023. Subsequent to 30 June 2023, the Group has drawn down a further $711,775 of debt against the facilities. No other matters or circumstances have arisen since the end of the year that have 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. 25 SUBSIDIARIES Particulars in relation to controlled entities: Controlled entities Dome Mines Pte Limited Magma Mines Pty Ltd Magma Mines Pte Limited Country of incorporation Company interest in ordinary shares 2023 % 100 100 100 2022 % 100 100 100 Fiji Australia Fiji 62 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 26 FINANCIAL INSTRUMENT RISK 26.1 Risk management objectives and policies The Group is exposed to various risks in relation to financial instruments. The Group's financial assets and liabilities by category are summarised in note 3.14. The main types of risks are market risk, credit risk and liquidity risk. The Group's risk management is coordinated by management, in close co-operation with the Board of Directors, and focuses on actively securing the Group's short to medium term cash flows by minimising the exposure to financial markets. The Group does not actively engage in the trading of financial assets for speculative purposes nor does it write options. The most significant financial risks to which the Group is exposed are described below. The Group is exposed to market risk through its use of financial instruments and specifically to currency risk and certain other price risks, which result from both its operating and investing activities. 26.2 Market risk analysis The Group is exposed to market risk through its use of financial instruments and specifically to currency risk, interest rate risk and certain other price risks, which result from both its operating and investing activities. Foreign currency sensitivity Most of the Group's transactions are carried out in AUD. Exposures to currency exchange rates arise from the Group's overseas purchases, which are primarily denominated in Fijian dollars (FJD). To mitigate the Group's exposure to foreign currency risk, non-AUD cash flows are monitored. The following table illustrates the sensitivity of profit in regards to the Group's financial assets and financial liabilities and the AUD/FJD exchange rate 'all other things being equal'. It assumes a +/- 5% change of the AUD/FJD exchange rate for the year ended 30 June 2023. This percentage has been determined based on the average market volatility in exchange rates in the previous 12 months. The sensitivity analysis is based on the Group's foreign currency financial instruments held at each reporting date and also takes into account forward exchange contracts that offset effects from changes in currency exchange rates. If the AUD had strengthened against the FJD by 5% (2022: 5%) then this would have had the following impact: 30 June 2023 30 June 2022 Profit for the year $ - - Equity $ 67,957 299,914 If the AUD had weakened against the FJD by 5% (2022: 5%) then this would have had the following impact: 30 June 2023 30 June 2022 Profit for the year $ - - Equity $ (67,957) (299,914) Exposures to foreign exchange rates vary during the year depending on the volume of overseas transactions. Nonetheless, the analysis above is considered to be representative of the Group's exposure to currency risk. 63 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 26 FINANCIAL INSTRUMENT RISK (CONTINUED) 26.2 Market risk analysis (continued) Interest rate sensitivity Interest risk arises from the use of interest bearing financial instruments. It is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates (interest rate risk). The Group's policy is to minimise interest rate cash flow risk exposures on financing. Borrowings are therefore usually at fixed rates. On 30 June 2023, the Group is not exposed to changes in market interest rates through borrowings as all borrowings are at fixed interest rates. On 30 June 2023, the Group’s exposure to cash flow interest relates primarily to cash at bank of the Group which bears floating rates. The Group is considering investing any surplus cash in long term deposits at fixed rates in the future. As at the end of the reporting period, the Group had the following floating financial instruments: 2023 Weighted average interest rate % Balance $ 2022 Weighted average interest rate % Balance $ Cash and cash equivalents 0.01 100,465 0.28 4,131,270 The following table demonstrates the sensitivity to a 0.5% change in interest rates, with all other variables held constant, of the Group’s profit (through the impact on floating rate financial assets and financial liabilities). 2023 +0.5% $ -0.5% $ 2022 +0.5% $ -0.5% $ Profit/(loss) for the year 502 (502) 20,656 (20,656) 26.3 Credit risk analysis Credit risk is the risk that a counterparty fails to discharge an obligation to the Group. The Group is exposed to this risk for various financial instruments, for example by receivables from other parties, placing deposits etc. The Group's maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at the reporting date, as summarised below: Classes of financial assets - Carrying amounts: Cash and cash equivalents Trade and other receivables Bond deposit Carrying amount 2023 $ 100,465 49,597 250,523 400,585 2022 $ 4,131,270 48,851 105,198 4,285,319 64 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 26 FINANCIAL INSTRUMENT RISK (CONTINUED) 26.3 Credit risk analysis (continued) The Group continuously monitors defaults of other counterparties, identified either individually or by group, and incorporates this information into its credit risk controls. Where available at reasonable cost, external credit ratings and/or reports on other counterparties are obtained and used. The Group's policy is to deal only with creditworthy counterparties. The Group's management considers that all the above financial assets that are not impaired or past due for each of the reporting dates under review are of good credit quality. The Group currently has no receivables from trading therefore is not exposed to credit risk in relation to trade receivables. None of the Group's financial assets are secured by collateral or other credit enhancements. The credit risk for cash and cash equivalents, bank guarantee deposit, bond deposit and tax refunds is considered negligible, since the counterparties are reputable banks and government body with high quality external credit ratings. 26.4 Liquidity risk analysis Liquidity risk is that the Group might be unable to meet its obligations. The Group manages its liquidity needs by monitoring scheduled debt servicing payments for financial liabilities as well as forecast cash inflows and outflows due in day-to-day business. The data used for analysing these cash flows is consistent with that used in the contractual maturity analysis below. Liquidity needs are monitored in various time bands, on a day-to-day and week-to-week basis, as well as on the basis of a rolling 30-day projection. Long-term liquidity needs for a 180-day and a 360-day lookout period are identified monthly. Net cash requirements are compared to available borrowing facilities in order to determine headroom or any shortfalls. This analysis shows that available borrowing facilities are expected to be sufficient over the lookout period. The Group's objective is to maintain cash and marketable securities to meet its liquidity requirements for 90-day periods at a minimum. This objective was met for the reporting periods. Funding for long-term liquidity needs is additionally secured by an adequate amount of committed credit facilities. The carrying amount of financial liabilities recognised at the reporting date, as summarised below: 30 June 2023 Carrying value Contractual amount Trade and other payables Borrowings Lease liability Total $ 236,593 286,523 40,649 563,765 Total Within one year $ 236,593 - 16,272 252,865 $ 236,593 286,523 40,649 563,765 30 June 2022 Carrying value Contractual amount Trade and other payables Lease liability Total $ 404,327 22,662 426,989 Total Within one year $ 404,327 22,662 426,989 $ 404,327 22,662 426,989 Between one to five years $ - 286,523 24,377 310,900 Between one to five years $ - - - 65 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 27 CAPITAL RISK MANAGEMENT Our objective of capital risk management is to manage capital and safeguard our ability to continue as a going concern, and to generate returns for shareholders. The Group manages its risk exposure of its financial instruments in accordance with the guidance of the Board of Directors. The Group uses different methods to manage and minimise its exposure to risks. These include monitoring levels of interest rates fluctuations to maximise the return of bank balances and the flexing of the gearing ratios. Liquidity risk is monitored through the development of future rolling cash flow forecasts. The final approval and monitoring of any of these policies is done by the Board which review and agrees on the policies for managing risks. The primary responsibility to monitor the financial risks lies with the Directors and the Company Secretary under the authority of the Board. The Board approved policies for managing risks including the setting up of approval limits for purchases and monitoring projections of future cash flows. 28 SHARE-BASED PAYMENTS During the year ended 30 June 2023 580,000 options were issued in exchange for goods or services provided. The fair values of options granted were determined using a variation of the Black-Scholes option pricing model utilising the key inputs including the Group’s risk-free borrowing rate and volatility of the Group’s shares. The fair value is appraised at the grant date and excludes the impact of non-market vesting conditions. The underling expected volatility was determined by reference to historical data of the Company’s shares over a period of time. No special features inherent to the options granted were incorporated into measurement of fair value. Shares issued in lieu of brokerage fees Awarded during the year ended 30 June Award date and vesting date Expiry date Fair value of options at award date Exercise price Risk free rate (%) Expected volatility (%) Value of options granted during the year ($) Amount of share issue costs recognised ($) 2021 3,150,000 270,000 2,100,000 4,100,000 2022 24/07/2020 2/03/2021 10/06/2021 30/06/2021 24/07/2023 $0.0698 2/03/2024 $0.0884 10/06/2024 $0.0956 30/06/2024 $0.0700 3,000,000 15/07/2021 1,000,000 13/09/2021 9,706,900 24/11/2021 1,000,000 26/11/2021 6/12/2021 1,000,000 15,000,000 31/12/2021 20/4/2022 18,750,000 29/6/2022 260,000 15/07/2024 $0.0917 13/09/2024 $0.0834 24/11/2024 $0.1449 26/11/2024 $0.1448 6/12/2024 $0.1447 31/12/2024 $0.1132 20/4/2025 $0.1299 29/6/2025 $0.1851 $0.17 $0.10 $0.10 $0.10 $0.10 $0.10 $0.10 $0.10 $0.10 $0.10 $0.10 $0.10 0.278 0.139 0.245 0.427 0.15 0.18 0.99 0.93 0.89 0.96 2.55 3.24 48.66 56.76 54.58 53.43 219,968 23,867 200,703 286,961 731,499 275,122 55.06 49.11 83,351 52.87 1,406,729 52.87 144,833 144,653 52.87 53.11 1,698,511 53.46 2,435,839 48,116 48.78 6,237,154 219,968 23,867 200,703 286,961 731,499 275,122 83,351 1,406,729 144,833 144,653 1,698,511 2,435,839 48,116 6,237,154 2023 580,000 21/11/2022 21/11/2025 $0.0985 $0.20 3.20 49.29 57,124 57,124 57,124 57,124 66 Dome Gold Mines Ltd and its controlled entities Directors’ Declaration The Directors of the Company declare that: (1) In the opinion of the Directors of Dome Gold Mines Limited: a) The consolidated financial statements and notes set out on pages 32 to 66 and the Remuneration report on pages 24 to 27 in the Directors’ report, are in accordance with the Corporations Act 2001, including: i Giving a true and fair view of its financial position as at 30 June 2023 and of its performance for the financial year ended on that date; and ii Complying with Australian Accounting Standards (including Interpretations) and the Corporations Regulations 2001; and the Australian Accounting b) There are reasonable grounds to believe that Dome Gold Mines Limited will be able to pay its debts as and when they become due and payable. (2) The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the Chief Executive Officer and Chief Financial Officer (or equivalent) for the financial year ended 30 June 2023. (3) Note 1 confirms that the consolidated financial statements also comply with International Financial Reporting Standards. Signed in accordance with a resolution of the Directors J. V. McCarthy Chairman Dated this 27 September 2023 Sydney 67 Independent Auditor’s Report To the shareholders of Dome Gold Mines Limited Report on the audit of the Financial Report Opinion We have audited the Financial Report of Dome Gold Mines Limited (the Company). In our opinion, the accompanying Financial Report of the Company is in accordance with the Corporations Act 2001, including: • giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its financial performance for the year ended on that date; and The Financial Report comprises: • Consolidated statement of financial position as at 30 June 2023 • Consolidated statement of profit or loss and other comprehensive income, Consolidated statement of changes in equity, and Consolidated statement of cash flows for the year then ended • Notes including a summary of significant accounting policies • Directors’ Declaration. • complying with Australian Accounting Standards and the Corporations Regulations 2001. The Group consists of the Company and the entities it controlled at the year-end or from time to time during the financial year. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with these requirements. 68 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Material uncertainty relating to going concern We draw attention to Note 3.16, “Going concern” in the financial report. The conditions disclosed in Note 3.16 indicate a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern and, therefore, whether it will realise its assets and discharge its liabilities in the normal course of business, and at the amounts stated in the financial report. Our opinion is not modified in respect of this matter. In concluding there is a material uncertainty related to going concern we evaluated the extent of uncertainty regarding events or conditions casting significant doubt in the Group’s assessment of going concern. This included: • Analysing the cash flow projections by: - Evaluating the underlying data used to generate the projections for consistency with other information tested by us, our understanding of the Group’s intentions, and past results and practices; - Assessing the planned levels of operating and capital expenditures for feasibility, timing, consistency of relationships and trends to the Group’s historical results, results since year end, and our understanding of the business, industry and economic conditions of the Group; • Assessing significant non-routine forecast cash inflows and outflows, including the expected impact of planned capital raisings for feasibility, quantum and timing. We used our knowledge of the client, its industry and current status of those initiatives to assess the level of associated uncertainty; • Reading minutes of Directors’ meetings and relevant correspondence with the Group’s advisors to understand the Group’s ability to raise additional funds and assess the level of associated uncertainty; • Evaluating the Group’s going concern disclosures in the financial report by comparing them to our understanding of the matter, the events or conditions incorporated into the cash flow projections assessment, the Group’s plans to address those events of conditions, and accounting standard requirements. We specifically focused on the principle matters giving rise to the material uncertainty. 69 Key Audit Matters Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Report of the current period. These matters were addressed in the context of our audit of the Financial Report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material uncertainty related to going concern section, we have determined the matter described below to be the Key Audit Matter. Capitalised exploration and evaluation expenditure - $35,555,802 Refer to Note 14 to the Financial Report The key audit matter How the matter was addressed in our audit Capitalised exploration and evaluation expenditure (E&E) is a key audit matter due to: • The significance of E&E activities to the Group’s business, with the balance of capitalised E&E expenditure being 98% of total assets; and • The greater level of audit effort required to evaluate the Group’s application of the requirements of the industry specific accounting standard AASB 6 Exploration for and Evaluation of Mineral Resources (AASB 6), in particular, the conditions allowing capitalisation of relevant expenditure and the presence of impairment indicators. The presence of impairment indicators would necessitate a detailed analysis by the Group of the value of E&E, therefore given the criticality of this to the scope and depth of our work, we involved senior team members to challenge the Group’s determination of the presence of impairment indicators. In assessing the conditions allowing capitalisation of relevant expenditure, we focused on: • The determination of the areas of interest (areas); • Documentation available regarding Our procedures included: • We evaluated the Group’s accounting policy to recognise exploration and evaluation assets using the requirements of AASB 6; • We assessed the Group’s determination of its areas of interest for consistency with the definition in the accounting standard. This involved analysing the licenses in which the Group holds an interest and the exploration programs planned for those for consistency with documentation such as license related technical conditions and planned work programs; • We assessed the Group’s current rights to tenure for each area of interest by corroborating the ownership of the relevant license to underlying documentation. We also tested for compliance with license conditions, such as minimum expenditure requirements; • We tested the Group’s additions to E&E for the year by evaluating a statistical sample of recorded expenditure for consistency to underlying records, the capitalisation requirements of the Group’s accounting policy and the requirements of the accounting standard; • We tested the completeness of exploration and evaluation expenditure recorded in the twelve- month period by evaluating a sample of payments recorded since 30 June 2023 for evidence of the timing of the transactions. 70 rights to tenure, via licensing and compliance with relevant conditions, to maintain current rights to an area of interest and the Group’s intention and capacity to continue the relevant E&E activities; • The Group’s determination of whether the E&E assets are expected to be recouped through successful development and exploitation of the area of interest, or alternatively, by its sale. In assessing the presence of impairment indicators, we focused on those that may draw into question the commercial continuation of E&E activities for each area of interest where significant capitalised E&E exists. In addition to the assessments above and given the financial position of the Group, we paid particular attention to: • The strategic direction of the Group and their intent to continue exploration activities in each area of interest; • The ability of the Group to fund the continuation of activities in each area of interest; and • Results from latest activities regarding the existence or otherwise of economically recoverable reserves for each area of interest. For this procedure, we selected our sample from the Group’s payments since balance date, trade payable schedule and unprocessed invoices post balance date; • We analysed the Group’s determination of recoupment through successful development and exploitation of the area by evaluating the Group’s documentation of planned future/continuing activities, including work program and project and corporate budgets for each area of interest; • We evaluated Group documents, such as minutes of Directors’ meetings and the Group’s cash flow projections, for consistency with their stated strategic intentions for continuing exploration and evaluation activities in certain areas. We corroborated this through interviews with key personnel; • We obtained project and corporate budgets identifying areas with existing funding and those requiring alternate funding sources. We compared this for consistency with areas with E&E, for evidence of the ability to fund continued activities. We identified those areas relying on alternate funding sources and evaluated the capacity of the Group to secure such funding. • We compared results from the latest activities regarding the existence of reserves for consistency to the treatment of E&E and the requirements of the accounting standard. Other Information Other Information is financial and non-financial information in Dome Gold Mines Limited’s annual reporting which is provided in addition to the Financial Report and the Auditor's Report. The Directors are responsible for the Other Information. Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion. In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other Information is materially inconsistent with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report. 71 Responsibilities of the Directors for the Financial Report The Directors are responsible for: • preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 • implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error • assessing the Group and Company’s ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the Financial Report Our objective is: • • to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error; and to issue an Auditor’s Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Financial Report. A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf This description forms part of our Auditor’s Report. 72 Report on the Remuneration Report Opinion Directors’ responsibilities In our opinion, the Remuneration Report of Dome Gold Mines Limited for the year ended 30 June 2023, complies with Section 300A of the Corporations Act 2001. The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with Section 300A of the Corporations Act 2001. Our responsibilities We have audited the Remuneration Report included in pages 24 to 27 of the Directors’ report for the year ended 30 June 2023. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. KPMG Adam Twemlow Partner Bundall 27 September 2023 73 Dome Gold Mines Ltd and its controlled entities ASX Additional Information Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this report is set out below. The information is effective as at 31 August 2023. SECURITIES EXCHANGE The Company is listed on the Australian Securities Exchange. The Home Exchange is Sydney. SUBSTANTIAL SHAREHOLDERS The number of substantial shareholders and their associates are set out below: Shareholder Blue Ridge Interactive Limited Onizaki Corporation Fleet Market Investments Pty Ltd Number of Shares 43,470,000 30,000,000 22,342,625 THE NUMBER OF HOLDERS IN EACH CLASS OF SECURITIES The total distribution of fully paid shareholders and Optionholders as at 31 August 2023 was as follows: Type of security Ordinary shares Unlisted options Number of holders Number of securities 482 24 353,214,136 110,999,926 CLASS AND VOTING RIGHTS The voting rights attached to ordinary shares, as set out in the Company’s Constitution, are that every member in person or by proxy, attorney or representative, shall have one vote on a show of hands and one vote for each share held on a poll. A member holding partly paid shares is entitled to a fraction of a vote equivalent to the proportion which the amount paid up bears to the issue price for the shares. Options don’t carry voting rights. DISTRIBUTION OF SHAREHOLDERS AND OPTIONHOLDERS The total distribution of fully paid shareholders and unlisted optionholders was as follows: Range Total Shareholders Total Optionholders 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over Total 16 18 153 146 149 482 - - - 1 23 24 74 Dome Gold Mines Ltd and its controlled entities ASX Additional Information LESS THAN MARKETABLE PARCELS On 31 August 2023, there were 27 holders of less than a marketable parcel of 2,703 ordinary shares. TWENTY LARGEST SHAREHOLDERS As at 31 August 2023, the twenty largest quoted shareholders held 68.01% of the fully paid ordinary shares as follows: Name Blue Ridge Interactive Limited Onizaki Corporation Fleet Market Investments Pty Ltd Citicorp Nominees Pty Limited Monex Boom Securities (HK) Ltd Shukikaku Brave Top Enterprises Ltd Ordinary Shares Quantity % 43,470,000 12.31 30,000,000 22,342,625 16,185,098 13,757,646 13,500,000 10,500,000 Globe Street Investments Pty Ltd 10,400,000 Globe Street Investments Pty Ltd 10,000,000 Mr Hwaeun Park Cybersys Inc Mr Yosuke Hitotsuyama Mr Ryoji Hitotsuyama Bowwow KK Tiger Ten Investment Limited BNP Paribas Nominees Pty Ltd Mr Katsuji Kato Ms Jean Denise White Primavera Yoshimi Yamamoto 8,743,512 8,000,000 7,688,368 7,407,782 7,000,000 5,849,689 5,741,440 5,138,720 5,000,000 5,000,000 4,500,000 8.49 6.33 4.58 3.89 3.82 2.97 2.94 2.83 2.48 2.26 2.18 2.10 1.98 1.66 1.63 1.45 1.42 1.42 1.27 TWENTY LARGEST OPTIONOLDERS As at 31 August 2023, there was one optionholder that held 20% or more of the unquoted options. Name Precious Tori Limited Unlisted Options Quantity % 35,676,900 32.14 75 Dome Gold Mines Ltd and its controlled entities ASX Additional Information ON MARKET BUY BACK There is no on market buy-back. ESCROWED SECURITIES As at 31 August 2023, there were no escrowed securities. TENEMENTS SCHEDULE Tenement Location Holder SPL 1451 Ono Island Dome Mines Pte Ltd Area (Ha) 3,028 Expiry Date 24/06/2023* SPL 1452 Nadrau Dome Mines Pte Ltd 33,213 26/08/2022** SPL 1495 Sigatoka Magma Mines Pte Ltd 2,522 26/04/2025 Interest % 100 100 100 *Application to renew this Special Prospecting Licence for a further 3-year period was submitted to the Mineral Resources Department, Fiji. While the renewal application is being processed the licence remains in force. ** Application to renew this Special Prospecting Licence for a further 3-year period was submitted to the Mineral Resources Department, Fiji. Although an initial decision was made not to approve Dome’s renewal application, in August 2023 the MRD rescinded this decision and terms on the renewal are presently being negotiated. The Company is confident these negotiations will be concluded in favour of renewal. Note: Magma Mines Pte Ltd and Dome Mines Pte Ltd, both incorporated in Fiji, are wholly owned subsidiaries of Dome Gold Mines Ltd. All the tenements are located in the Republic of Fiji. 76 Dome Gold Mines Ltd and its controlled entities Corporate Directory ABN 49 151 996 566 Directors Mr John V McCarthy (Chairman) Mr Tadao Tsubata (Non-Executive Director) Ms Sarah Harvey (Non-Executive Director) Company Secretary Mr Marcelo Mora Corporate Office Level 46, 680 George Street Sydney NSW 2000 Australia Registered Office Level 46, 680 George Street Sydney NSW 2000 Australia Auditors KPMG Level 11, Corporate Centre One Corner Bundall Road and Slatyer Avenue Bundall QLD 4217 Bankers National Australia Bank 255 George Street Sydney NSW 2000 Solicitors Finn Roache Lawyers Level 8, 191 Clarence Street Sydney NSW 2000 77 

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