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.
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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
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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
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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).
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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
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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.
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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
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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
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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
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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.
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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).
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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)
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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.
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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).
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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
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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