F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 3
A B N 4 0 1 1 9 0 3 1 8 6 4 | A S X : D R E
CORPORATE
DIRECTORY
DIRECTORS
Paul Chapman
Dean Tuck
Philip Crutchfield
Robert Gee
(Non-executive Chairman)
(Managing Director)
(Non-executive Director)
(Non-executive Director)
COMPANY SECRETARY
Jessamyn Lyons
REGISTERED OFFICE &
POSTAL ADDRESS
Level 3, 88 William Street
Perth WA 6000
PO Box 712
Osborne Park DC WA 6916
Telephone: +61 (8) 9473 8345
Website: www.dreadnoughtresources.com.au
ABN 40 119 031 864
SHARE REGISTRY
Automic Pty Ltd
Level 5, 191 St Georges Terrace
Perth, WA 6000 Australia
hello@automicgroup.com.au
(within Australia): 1300 288 664
(international): +61 (2) 9698 5414
AUDITORS
PKF Perth
Level 5, 35 Havelock Street
West Perth WA 6005
STOCK EXCHANGE
Australian Securities Exchange
(Home Exchange: Perth, Western Australia)
ASX Code: DRE
DREADNOUGHT RESOURCES (ASX:DRE) IS A HIGHLY
ACTIVE WEST AUSTRALIAN MINERAL EXPLORER FOCUSED ON
FINDING THE METALS NEEDED NOW AND IN THE FUTURE.
CONTENTS
CHAIRMAN’S LETTER ......................................................................................................................... 4
DIRECTORS’ REPORT ......................................................................................................................... 5
AUDITOR’S INDEPENDENCE DECLARATION .......................................................................23
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME ...........................................................................................24
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ..............................................25
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ...............................................26
CONSOLIDATED STATEMENT OF CASH FLOWS ...............................................................27
DIRECTORS’ DECLARATION ........................................................................................................61
INDEPENDENT AUDIT REPORT ..................................................................................................62
ASX ADDITIONAL INFORMATION ............................................................................................67
CHAIRMAN’S
LETTER
DEAR FELLOW SHAREHOLDER,
We are pleased to present the 2023 Annual Report for Dreadnought
Resources Limited (“Dreadnought” or the “Company”).
The past year has been another active one for Dreadnought and we have made substantial progress on multiple fronts and in particular
Mangaroon.
Mangaroon covers >5,200sq kms of the Mangaroon Zone in the Gascoyne Region of Western Australia and over the past year has
demonstrated potential on multiple fronts:
the ~45km long Money Intrusion (First Quantum Minerals earn-in) which contains high tenor magmatic Ni-Cu-PGE
mineralisation;
the >10km long Mangaroon Au Shear Zone (100%) where fractured, small-scale ownership has limited previous gold exploration
with only ~200m of the >10km having been drilled notwithstanding the high-grade, camp scale potential;
the ~43km long Yin REE Ironstone Complex (100%) which already contains: an independent total Resource of 20.06Mt @ 1.03%
TREO (ASX 5 Jul 2023) over only ~4km of the ~43km of ironstones including an initial Indicated Resource of 5.52Mt @ 1.23%
TREO over only ~250m of strike (ASX 5 Jul 2023); and an Exploration Target of 50-100Mt at 0.9-1.3% TREO (ASX 13 Feb
2023) over 40 kms of strike; and
the ~9km long REE-Nb-Ti-P-Sc C1-C5 carbonatites which contain an initial independent Inferred Resource of 10.84Mt @ 1.00%
TREO at C3 (ASX 29 Aug 2023).
In recent times, rare earths have cooled in the face of global economic uncertainty however the long-term growth expectations
remain strong. Notwithstanding the short-term headwinds, we should not lose sight of what we have at Mangaroon. We have a
globally significant critical minerals project that has already shown large scale and rapid growth potential.
At Yin, broad zones of moderate to steep dipping mineralisation with parallel lodes and Resource intensity of ~4.8Mt/km make for a
potentially attractive mining proposition. Metallurgical test work from Yin has performed well. We have only scratched the surface at
the C1-C7 carbonatites. There is blue sky in abundance.
All this points to a long-life, strategically important, potential Tier 1 project in the world’s top investment jurisdiction based on the
Investment Attractiveness Index published in the Fraser Institute’s Annual Survey of Mining Companies. Of course, this jurisdiction is
Western Australia. It is not South Australia (10th), Northern Territory (14th); Queensland (18th); Tasmania (19th) or New South
Wales (33rd). It is certainly not Victoria (39th), which has Santa Cruz and Russia breathing down its neck.
In a time when supply chain security and low carbon transition are imperatives and against a backdrop of heightened geopolitical
tension, where else would you want to own a globally significant asset but Western Australia? Perhaps that is why Dreadnought is
receiving increasing levels of interest in Mangaroon from industry participants.
Our other projects, while currently lower profile, show great promise too. At the time of writing, we are about to resume drilling at
Tarraji-Yampi. This is where it all started for Dreadnought. The project is located only 85kms from Derby in the West Kimberley
region of WA and was locked up as a Defence Reserve since 1978. Just by drilling, Dreadnought is proud to be bringing opportunity
and employment to the West Kimberly region. This will only get better when we find and develop the Cu-Au-Ag-Bi-Sb-Co deposits
we are looking for.
Complementing Mangaroon is Bresnahan, located ~125km southwest of Newman. The project comprises ~3,700 sq kms covering
over 200kms strike along the Bresnahan Basin / Wyloo Group unconformity and is prospective for unconformity related heavy rare
earths and mesothermal gold similar to the nearby Paulsen’s Au-Ag-Cu-Sb deposits. In 2024, we are looking to build on our initial
success at Breshanhan.
Last and certainly not least is Central Yilgarn, located ~190km northwest of Kalgoorlie in the Yilgarn Craton – one of the world’s
great mineral regions. The project comprises ~1,600 sq kms covering ~150km of strike along the majority of the Illaara, Yerilgee and
Evanston greenstone belts. Results of our upcoming geophysical and geochemical surveys at Central Yilgarn are expected to be
exciting.
In the year ahead we will continue at a relentless pace. While success breeds its own set of challenges, I can assure shareholders we
have a team that is up to the task. In that respect, I would like to acknowledge and thank outgoing directors in Paul Payne and Ian
Gordon for their substantial and valued contributions. In addition, I would like to recognise Philip Crutchfield and Robert Gee who
have both brought a breadth of experience to the board. We have also added capability to our management team with the recent
appointment of Debbie Fullarton as our Chief Financial Officer to support Dreadnought’s growth and strategic development.
In closing, we would like to thank our stakeholders including traditional owners, local communities, employees, joint venture partners,
suppliers and other business partners. We also would take this opportunity to thank our fellow shareholders for your ongoing support.
PAUL CHAPMAN
4
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DIRECTORS’ REPORT
Your directors present their report on the consolidated entity (referred to hereafter as the Group) consisting of Dreadnought
Resources Limited (referred to hereafter as the Parent Entity, Dreadnought or the Company) and the entities it controlled at the end
of, or during, the year ended 30 June 2023.
DIRECTORS
The following persons were directors of the Company during the whole of the financial year and up to the date of this report, unless
otherwise stated:
Paul Chapman
(Non-executive Chairman)
Appointed 9 April 2019
Dean Tuck
(Managing Director)
Appointed 9 April 2019
Philip Crutchfield
(Non-executive Director)
Appointed 13 September 2022
Robert Gee
(Non-executive Director)
Appointed 2 March 2023
Ian Gordon
(Non-executive Director)
Appointed 21 December 2017 – retired on 30 November 2022
Paul Payne
(Non-executive Director)
Appointed 21 December 2017– retired 13 September 2022
PRINCIPAL ACTIVITIES
The principal activities of the Group during the financial year were minerals exploration and development. There were no significant
changes in the nature of activities of the Group during the year.
DIVIDENDS
No dividends have been declared or paid during the year (2022: Nil).
OPERATING RESULTS AND FINANCIAL POSITION
The net result of operations for the financial year was a loss of $5,521,985 (2022: $1,740,126 (Restated)).
The net assets of the Group have increased by $31,790,682 during the financial year from $19,050,734 (Restated) at 30 June 2022 to
$50,841,416 at 30 June 2023.
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
5
DIRECTORS’ REPORT
REVIEW OF OPERATIONS
The Group is an ASX-listed exploration and development company focussing on acquiring and exploring high-quality projects within
the state of Western Australia. The Company’s strategy is to discover major deposits on these projects either by itself or in joint
venture with major mining companies.
The review addresses highlights and significant changes in state of affairs during the year and to date.
Operational Highlights to 30 June 2023:
Dreadnought continues to make significant progress on the 100% owned rare earths (“REE” or “TREO”) at Mangaroon with constant
news flow, rapidly progressing drilling, consistent high-grade results, and a targeted exploration plan with a clear path to growing the
existing 2012 JORC Code Mineral Resource (“Resource”) base.
• Globally significant Resource at the Yin REE Ironstone Complex (“Yin”) with highlights including:
- A 40% increase in the Independent Resource at Yin resulting in an Inferred + Indicated Resource of 20.06Mt @ 1.03% TREO.
Initial Indicated Resource of 5.52Mt @ 1.23% TREO over just 250m of strike where thick, high-grade mineralisation occurs at
-
surface.
- Resource delivered in 12 months since discovery and based on 160 RC (17,787m) and 28 diamond drill holes (2,791.4m).
- The Resource only covers ~10% of Yin which currently consists of ~43kms strike comprising a 2012 JORC Code Exploration
Target of 50-100Mt @ 0.9-1.3% TREO (“Exploration Target”).
- A further Resource update is to be made in the December 2023 quarter, including the higher NdPr:TREO discoveries at Y2
and Yin North and an increased Indicated component.
• Large-scale C1-C7 Carbonatites, the regional source of high-grade REE and other critical minerals:
- C1-C5 carbonatites increased in size to ~9km x ~1km and still growing.
- First pass drilling at C3 defined a ~600m x ~550m anomalous zone of critical minerals including REE and niobium (“Nb”).
-
- An initial Resource for C3 was delivered in August 2023 with the addition of 10.84Mt @1.0% TREO.
Infill drilling (24 RC holes, 3,805m) defined high-grade zones of REE-Nb over an area of ~400m x ~400m.
Mangaroon: Ni-Cu-PGE (FQM Earn-In)
• First Quantum Minerals Ltd (TSE:FM “First Quantum Minerals”), a ~A$20B TSX listed company, is earning a 51% interest in the
Mangaroon Ni-Cu-PGE Project by funding $12M of expenditure by 1 March 2026.
• A FLEM survey covering ~8.4kms of strike along the Money Intrusion successfully identified five conductive bodies interpreted to
be sulphide accumulations.
• First Quantum Minerals committed to a ~1,000m RC program over all five conductors which commenced in September 2023
with immediate success.
Mangaroon: Au (100%)
• The region is host to high-grade gold mineralisation at the Bangemall/Cobra and Star of Mangaroon gold mining centres which
have seen minimal modern exploration.
• Dreadnought has secured the historic mining centres around the Star of Mangaroon and has located outcropping high-grade gold
bearing quartz veins along the Edmund and Minga Bar Faults.
Tarraji-Yampi: Cu-Ag-Au-Co (80%/100%)
• The high-grade Cu-Ag-Au-Co Orion discovery was made in 2021.
• An auger sampling program “fingerprinted” Orion and applied that knowledge across other under cover areas at Tarraji-Yampi.
• The auger program successfully identified 14 high-quality Orion look-alikes with a similar geochemical signature.
• A fixed loop electromagnetic survey has been completed over 9 of the geochemical anomalies and 6 have produced strong
coincident conductors (3 with outcropping mineralisation) and 3 with moderate to weak conductors.
• Discovery focused RC and diamond drilling is to commence in September 2023.
Central Yilgarn: Gold, Base Metals, Critical Minerals and Iron Ore Project (100%)
• An initial independent Indicated and Inferred Resource for Metzke’s Find of 14.9koz @ 6.8 g/t Au was announced in April 2023.
• The Resource is high-grade, shallow and remains open at depth as well as to the north.
• The promising nickel, lithium and gold potential at Central Yilgarn is currently under review.
Bresnahan: REE-HREE-Au-Sb (100%) Project (100%)
• Bresnahan is a conceptual unconformity heavy rare earth element (“HREE”) project containing >3,700kms2 of prospective ground.
• Assays from reconnaissance surface sampling have confirmed unconformity HREE mineralisation, similar to the Browns Range
project.
6
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DIRECTORS’ REPORT
Corporate Highlights to 30 June 2023:
In relation to share placements, the following activities occurred:
•
In August 2022, the Company completed a placement at $0.06 per share to institutional and sophisticated investors raising
$12,000,000 (before costs).
• Directors contributed a further $350,000 to the placement as approved by shareholders on 30 November 2022.
•
In February 2023, the Company completed a placement at $0.10 per share to institutional and sophisticated investors raising
$20,000,000 (before costs).
• Directors contributed a further $1,400,000 to the placement as approved by shareholders on 29 March 2023.
In relation to options, the following activities occurred:
i. Options granted to employees or directors:
• On 14 July 2022, the Company granted 8,500,000 options via the Equity Incentive Plan to employees who are not related
parties of the Company. The options have an exercise price of $0.065 and expire on 14 July 2025. These options will vest on
12 months of continued employment.
• On 30 November 2022, shareholders approved the grant of 853,098 options to a director as part of the director’s
remuneration package. The options have an exercise price of $0.1575 and expire on 16 December 2025. There are no vesting
conditions.
• On 2 March 2023, the Company granted 1,223,151 options to a director as part of the director’s remuneration package. The
options have an exercise price of $0.12 and expire on 2 March 2026. There are no vesting conditions.
• On 31 May 2023, the Company granted 2,000,000 options via the Equity Incentive Plan to an employee who is not a related
party of the Company. The options have an exercise price of $0.075 and expire on 14 June 2026. These options will vest on
12 months of continued employment.
ii. Options exercised by employees or directors:
• On 15 September 2022, an employee exercised 1,500,000 options for a total amount of $60,000.
• On 31 October 2022, employees exercised 4,400,000 options for a total amount of $78,500.
• On 8 February 2023, employees exercised 2,000,000 options for a total amount of $80,000.
• On 8 February 2023, the Managing Director exercised 2,000,000 options for a total amount of $10,000.
iii. Options exercised by other parties:
• On 4 April 2023, the Company issued 5,000,000 shares on the exercise of options for a total amount of $30,000.
• On 24 May 2023, the Company issued 15,000,000 shares on the exercise of options for a total amount of $90,000.
In relation to performance rights, the following activities occurred:
i. Equity Incentive Plan
• On 17 August 2022, the Board created an Equity Incentive Plan to ensure employee/director alignment and retention while
creating long term shareholder value. The scheme sets significant targets that when met, are expected to have a material,
beneficial impact on Dreadnought’s enterprise value and preferred employer status.
ii. Options issued to employees or directors:
• On 16 December 2022, the Company issued 30,366,665 unlisted performance rights under the Equity Incentive Plan
divided into three equal tranches. Each tranche vests upon the Company announcing, during the vesting period, a
Resource of TREO as follows:
- Tranche 1: A Resource of at least the Inferred category of 10Mt @ >1% TREO by 31/12/2022.
- Tranche 2: A Resource of at least the Inferred category of 20Mt @ >1% TREO by 31/12/2023.
- Tranche 3: A Resource of at least the Inferred category of 30Mt @ >1% TREO by 31/12/2024.
• On 10 February 2023, the Company issued 3,633,332 unlisted performance rights via the Equity Incentive Plan to additional
eligible employees who are not related parties of the Company. These performance rights are subject to the Tranche 2 and
Tranche 3 vesting conditions above.
• On 2 March 2023, the Company issued 600,000 unlisted performance rights via the Equity Incentive Plan to a newly
appointed director. These performance rights are subject to the vesting conditions of Tranche 2 and Tranche 3 above.
• On 14 June 2023, the Company issued 3,000,000 unlisted performance rights via the Equity Incentive Plan to the newly
appointed Chief Financial Officer. These performance rights are subject to the Tranche 2 and Tranche 3 vesting conditions
above.
iii. Performance rights vesting and exercised:
• On 31 December 2022, the vesting condition for Tranche 1 was achieved and 10,183,335 performance rights vested.
• On 13 January 2023, the Company issued 2,266,667 fully paid ordinary shares and 7,916,668 fully paid ordinary shares to
the directors and employees, respectively upon exercising the vested rights.
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
7
DIRECTORS’ REPORT
The Company made the following acquisitions during the year:
• On 7 July 2022, the Group exercised its option to acquire 100% ownership of E29/965 and E30/485 within the Central Yilgarn.
These tenements cover parts of the Kings and P1 iron ore occurrences including significant magnetite banded iron formations,
the Central Komatiite nickel sulphide belt, the eastern extensions of the Peggy Sue pegmatite field as well as several VMS and
gold prospects. The exercise provided 100% ownership over the highly prospective, 75km long, Illaara Greenstone Belt and
the Group paid $1,000,000 to an unrelated party to settle the transaction on 20 July 2022.
• On 9 July 2022, the Group executed a tenement sale and purchase agreement with Arrow Minerals Limited (ASX:AMD) to
acquire a 100% interest in 7 tenements being E16/495, E30/493, E30/494, E77/2403, E77/2416, E77/2432, E77/2634). The key
commercial terms included:
- AMD to receive a $20,000 cash payment upon signing of the agreement. This was paid on 11 July 2022.
- AMD to receive $280,000 cash payment at settlement. This was paid on 1 August 2022.
- The Group to issue AMD 2,350,000 fully paid ordinary shares escrowed until 31 January 2023. These shares were issued
1 August 2022.
- AMD to receive a further cash payment of $300,000 by 30 November 2022. This was paid on 28 November 2022.
- On the identification and reporting of Inferred Resource of >500,000oz gold equivalent the Company is to pay AMD
$1,000,000.
- AMD to retain a 1% Net Smelter Return royalty in relation to minerals mined by or on behalf of the Company on the
tenements.
• On 12 September 2022, the Company announced the acquisition of 100% interest in 5 tenements covering 77 km2 of major
regional structures at Mangaroon. The tenements host at least 10 historic gold mines including the high-grade Star of
Mangaroon, Pritchard Well and Twin Peaks gold mines. The tenements are strategically located between the Company’s 100%
owned REEs to the south-east and the First Quantum Minerals Ni-Cu-PGE Earn-in to the north-west. Key commercial terms
with the unrelated party vendors are outlined below and completion occurred on 10 November 2022.
1. Key commercial terms to acquire 100% of E09/2290, M09/146, M09/147 and M09/175 include:
a. Dreadnought to own 100% upon completion;
b. Dreadnought to pay $50,000 upon signing the Sale & Purchase Agreement (paid);
c. Dreadnought to pay $250,000 at completion (paid);
d. Vendors to receive 20,000,000 fully paid ordinary shares at completion (issued);
e. 1% gross royalty payable on E09/2290, M09/146 and M09/147; and
f. 0.5% gross royalty payable on M09/175.
2. Key commercial terms to acquire 100% of M09/174 include:
a. Dreadnought to own 100% upon completion;
b. Dreadnought to pay $25,000 upon signing the Sale & Purchase Agreement (paid);
c. Dreadnought to pay $50,000 at completion (paid);
d. Vendor to receive 1,000,000 fully paid ordinary shares at completion (issued); and
e. 0.5% gross royalty payable.
• On 18 October 2022, the Company, acquired 100% of the ordinary shares of Odette Seven Pty Ltd (“Odette”) for the total
consideration of 3,000,000 fully paid and issued shares of the Company. Odette owns the rights to tenements E08/3356,
E52/3936 and E52/3937. The shares were issued on 31 October 2022 at an issue price of $0.115 per share. The Company
also settled the amount due to the previous shareholder of Odette amounting to $150,000 subsequent to settlement date.
• On 26 October 2022, the Group executed a tenement sale and purchase agreement with an unrelated party to acquire a
100% interest in 4 tenements being E52/4082, EL52/4083, EL08/3495 and EL08/3496. The key commercial terms included
$150,000 in cash and 2,778,000 fully paid ordinary shares at completion on 31 October 2022.
• On 6 June 2023, the Group executed a tenement sale and purchase agreement with an unrelated party to acquire a 100%
interest in mining tenement M09/091. The key commercial terms included $120,000 in cash, 2,500,000 fully paid ordinary
shares at completion in July 2023 and a 1.0% gross royalty.
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGY
The Group is focused on delivering significant shareholder returns through the discovery of economic mineral deposits in the tier
one jurisdiction of Western Australia.
The Group will achieve these goals by:
Identifying projects with significant unrealised potential.
•
• Focusing technical effort and financial investment to effectively and efficiently generate and drill exciting, mineralised targets.
• Maintaining low overheads and keeping the market well informed through continuous activity and news flow.
8
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DIRECTORS’ REPORT
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
Subsequent to 30 June 2023, the following significant events were undertaken by the Group:
• On 4 July 2023, the Company granted 1,500,000 unlisted performance rights subject to the vesting conditions of Tranche 2 and
Tranche 3 via the Equity Incentive Plan to an employee who is not a related party of the Company.
• On 5 July 2023, the Company announced a 40% increase in Resource tonnage at Yin - Mangaroon.
• On 5 July 2023, the vesting condition for Tranche 2 was achieved and 2,566,667 performance rights for directors and 11,983,334
performance rights for employees vested. These performance rights were exercised, and the Company issued 14,550,001 fully
paid ordinary shares on 1 August 2023.
• On 10 July 2023, the Company announced high-grade REE-Nb zones at C3 & C5 – Mangaroon.
• On 17 July 2023, the Company announced additional high-grade REE-Nb zones at C3 & C5 – Mangaroon.
• On 7 August 2023, the Company announced significant new intercepts from drilling at the Yin Ironstone Complex – Mangaroon.
• On 17 August 2023, the Company announced further thick, high-grade results from extensional and infill drilling at the Yin
Ironstone Complex – Mangaroon.
• On 28 August 2023, the Company released an initial, independent REE-Nb-P-Ti-Sc Resources of 10.48Mt @ 1.00% TREO at C3
taking the global REE Resources at Mangaroon to 30.90Mt @ 1.02% TREO.
• On 28 August 2023, the vesting condition for Tranche 3 was achieved and 2,566,667 performance rights for directors and
11,983,329 performance rights for employees vested. These performance rights were exercised, and the Company issued
14,549,996 fully paid ordinary shares on 4 September 2023.
• On 30 August 2023, the Company announced that drilling had commenced at the Money Intrusion Ni-Cu-PGE (First Quantum
Minerals Earn-in) – Mangaroon.
• On 31 August 2023, the Company announced that massive and disseminated Ni-Cu sulphides had been intersected at the Money
Intrusion Ni-Cu-PGE Project – Mangaroon.
• On 4 September 2023, the Company announced the results of a comprehensive gold review at Mangaroon.
• On 12 September 2023, the Company announced thick Ni-Cu Mineralisation at Mangaroon.
• On 13 September 2023, the Company announced highest grades to date from Yin infill drilling at Mangaroon.
Other than the events detailed above, there has not arisen in the interval between 1 July 2023 and the date of this report any item,
transaction, or event of a material and unusual nature likely, in the opinion of the directors, to significantly affect the operations of
the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity, in future years.
ENVIRONMENTAL REGULATION
The Group’s Environmental Management System includes identifying and assessing environmental impacts, setting environmental
objectives and targets, and implementing strategies to reduce the impact on the environment.
The operations of the Group are subject to environmental regulations under both Commonwealth and State legislation in Australia.
In the mining industry, many activities are regulated by environmental laws. Operations are conducted under the necessary
Commonwealth and State Licences and Works Approvals to its activities on its tenements. The Group considers it has complied with
all relevant environmental obligations.
SOCIAL RESPONSIBILITY
The Group strives to contribute to the social and economic wellbeing of the communities in which it operates by identifying
opportunities that create shared value and economic benefit with our local communities including, where possible, maximising local
procurement, employment, and training opportunities. We place as much emphasis on our behaviour as we do on our results. We
provide a healthy, safe, and inclusive workplace through collective leadership.
The Group is committed to workplace diversity and inclusion at all levels regardless of gender, marital or family status, sexual
orientation, gender identity, age, disabilities, ethnicity, religious beliefs, cultural background, socio-economic background, perspective,
and experience. The Group has made significant progress in diversity as can be seen in the tables below.
Cultural Diversity
Category
Key Management Personnel
Other senior management
Other employees
Total
Overall %
2023
2022
Australian
3
1
6
10
50%
International*
3
3
4
10
50%
Australian
4
1
2
7
64%
International*
1
1
2
4
36%
* International refers to an individual’s background rather than citizenship and includes United States, Africa, United Kingdom, New
Zealand, South America, Europe, and Philippines.
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
9
DIRECTORS’ REPORT
Gender Diversity
Category
Key Management Personnel
Other senior management
Other employees
Total
Overall %
COMPLIANCE STATEMENT
2023
2022
Male
4
2
7
13
65%
Female
2
2
3
7
35%
Male
4
2
4
10
91%
Female
1
-
-
1
9%
This report contains information extracted from reports available to view on the website www.dreadnoughtresources.com.au. In
relying on the below ASX announcements and pursuant to ASX Listing Rule 5.23.2, the Company confirms that it is not aware of any
new information or data that materially affects the information included in the abovementioned announcements or this Annual Report
for the period ended 30 June 2023.
ASX Listing Rules Compliance
In preparing the Annual Report for the period ended 30 June 2023, the Company has relied on the following ASX announcements.
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
13/09/2023
12/09/2023
12/09/2023
12/09/2023
6/09/2023
4/09/2023
4/09/2023
4/09/2023
31/08/2023
30/08/2023
30/08/2023
28/08/2023
18/08/2023
18/08/2023
17/08/2023
08/08/2023
07/08/2023
02/08/2023
01/08/2023
01/08/2023
31/07/2023
31/07/2023
21/07/2023
17/07/2023
12/07/2023
10/07/2023
06/07/2023
05/07/2023
03/07/2023
21/06/2023
20/06/2023
14/06/2023
13/06/2023
07/06/2023
06/06/2023
06/06/2023
05/06/2023
29/05/2023
24/05/2023
24/05/2023
Highest Grades to date from Yin Infill Drilling - Mangaroon
Thick Ni-Cu Mineralisation over 400m- Amendment
New World Metals Corporate Presentation
Thick Ni-Cu Mineralisation over 400m, Open in All Directions
Change of Director's Interests Notice x 4
Application for quotation of securities - DRE
Cleansing Notice
Outstanding Gold Potential Along 10km Mangaroon Shear Zone
Massive & Disseminated Ni-Cu Sulphides Intersected
Trading Halt
Drilling Commenced at Money Intrusion Ni-Cu-PGE - Mangaroon
Initial, Independent REE-Nb-P-Ti-Sc Resource at C3
Application for quotation of securities - DRE
Cleansing Notice
Thick, High-Grade Rare Earths Continue at Yin - Mangaroon
Diggers and Dealers Conference Presentation
Rare Earth Ironstone and Carbonatite Drilling Update
Change of Director Interests x 4
Application for quotation of securities - DRE
Cleansing Notice
Quarterly Cashflow Report – June 2023
Quarterly Activities Report – June 2023
Noosa Mining Conference – Investor Presentation
High-Grade Rare earth & Niobium Zones at C3 & C5 - Mangaroon
Notification regarding unquoted securities - DRE
High-Grade Rare Earth & Niobium Zones at C3 & C5 - Mangaroon
Successful Junior Minerals Exploration Incentive Application
40% Increase in Resource Tonnage at Yin -Mangaroon
Trading Halt
Gold Coast Investment Showcase Presentation
Highly Conductive Anomalies Enhance Orion Look-Alikes
Notification regarding unquoted securities - DRE
Yin Extended by 1km & 2.5km of High-Grade NdPr Discoveries
Mangaroon Gold Review and Further Consolidation - Amended
Proposed issue of securities - DRE
Mangaroon Gold Review and Further Consolidation
Debbie Fullarton Appointed as Chief Financial Officer
Metallurgical Test Work Supports High-Value Concentrate
Application for quotation of securities - DRE
Cleansing Notice
10
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DIRECTORS’ REPORT
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
18/05/2023
15/05/2023
08/05/2023
03/05/2023
28/04/2023
27/04/2023
28/04/2023
27/04/2023
26/04/2023
13/04/2023
06/04/2023
06/04/2023
05/04/2023
04/04/2023
04/04/2023
04/04/2023
04/04/2023
03/04/2023
29/03/2023
29/03/2023
24/03/2023
15/03/2023
13/03/2023
03/03/2023
03/03/2023
03/03/2023
02/03/2023
02/03/2023
02/03/2023
24/02/2023
22/02/2023
16/02/2023
16/02/2023
13/02/2023
10/02/2023
08/02/2023
08/02/2023
08/02/2023
08/02/2023
08/02/2023
01/02/2023
01/02/2023
01/02/2023
30/01/2023
30/01/2023
30/01/2023
30/01/2023
27/01/2023
24/01/2023
23/01/2023
20/01/2023
17/01/2023
16/01/2023
13/01/2023
13/01/2023
11/01/2023
28/12/2022
22/12/2022
16/12/2022
Additional Orion Look-Alikes from Auger Program
Change of Directors Interest Notice - Philip Crutchfield
Additional Ironstones and Carbonatites Expanded
Webinar Presentation
Webinar Invitation to Shareholders
Quarterly Cashflow Report - March 2023
Quarterly Activities Report - March 2023
Initial High-Grade Gold Resource at Metzkes Find
$440,000 in Drilling Grants for Mangaroon and Orion
Response to ASX Price Query
Managing Director Contract Amendments
Change of Directors Interests Notice - Philip Crutchfield
Future Facing Commodities Conference Presentation
Change of Director Interests x 2
Cleansing Notice
Application for quotation of securities – DRE
Application for quotation of securities - DRE
Carbonatites Deliver Thick, Near Surface REE Results
Results of Meeting
Yin Resource to Grow, Carbonatite Drilling Commenced
Five Strong EM Conductors at Mangaroon Ni-Cu-PGE Project
Half Yearly Report and Accounts - 31 December 2022
Successful Yin Extensional Drilling Results - Mangaroon
Notification regarding unquoted securities - DRE
Notification regarding unquoted securities - DRE
S&P DJI Announces March 2023 Quarterly Rebalance
Initial Directors Interest Notice - Anthony Robert Gee
Proposed issue of securities - DRE
Appointment of Non-Executive Director
Notice of General Meeting
2023 Drilling Campaign Commenced at Mangaroon
Change in substantial holding
RIU Explorers Conference Presentation
REE Ironstone Exploration Target Defined
Notification regarding unquoted securities - DRE
RIU Explorers Event Guide in The Australian Newspaper
Cleansing Notice
Application for quotation of securities - DRE
Application for quotation of securities - DRE
Bresnahan Emerging as a Light & Heavy Rare Earth Province
Proposed issue of securities - DRE
Proposed issue of securities - DRE
$21.4M Raising to Accelerate World-Class Mangaroon Project
Quarterly Presentation
Quarterly Cashflow Report - December 2022
Quarterly Activities Report - December 2022
Trading Halt
Mineralised REE Ironstones Increased by 13kms to 43kms
Carbonatite Discovery Shaping as Regional Rare Earth Source
Trading Halt
Release of Shares from Escrow
Sabre - Y8 Rare Earth Ironstone Discovery Confirmed
Change of Directors Interest Notices x 3
Application for quotation of securities - DRE
Cleansing Notice
Change of Directors Interest Notices x 3
Initial High-Grade, Independent Resource Over 3kms at Yin
Trading Halt
Cleansing Notice
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
11
DIRECTORS’ REPORT
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
16/12/2022
16/12/2022
13/12/2022
09/12/2022
06/12/2022
02/12/2022
02/12/2022
01/12/2022
30/11/2022
30/11/2022
30/11/2022
23/11/2022
23/11/2022
21/11/2022
11/11/2022
10/11/2022
10/11/2022
10/11/2022
10/11/2022
03/11/2022
01/11/2022
01/11/2022
01/11/2022
01/11/2022
01/11/2022
31/10/2022
31/10/2022
31/10/2022
26/10/2022
26/10/2022
26/10/2022
24/10/2022
17/10/2022
12/10/2022
03/10/2022
28/09/2022
28/09/2022
28/09/2022
15/09/2022
15/09/2022
14/09/2022
14/09/2022
14/09/2022
12/09/2022
12/09/2022
09/09/2022
08/09/2022
06/09/2022
05/09/2022
05/09/2022
02/09/2022
02/09/2022
01/09/2022
30/08/2022
22/08/2022
17/08/2022
15/08/2022
10/08/2022
05/08/2022
Application for quotation of securities - DRE
Notification regarding unquoted securities - DRE
Thick Mineralisation Continues at C3, 2022 Drilling Complete
Change of Share Registry
Adoption of Updated Constitution
Final Directors Interest Notice - Ian Gordon
AMD: Strickland Sale Further Cash Payment Received
Change of Registered Address
Results of Annual General Meeting
AGM Presentation
Chairmans Address to Shareholders
RIU Resurgence Conference Presentation
Multiple, Large Scale REE-Nb-Ti-P Carbonatites
Broad, High-Grade Assays at Yin REE Discovery
Noosa Mining Conference Presentation
Cleansing Notice
Application for quotation of securities - DRE
Board Changes
Exploration Update Mangaroon Ni-Cu-PGE (FQM Earn-In)
Amendment to ASX Release 1 November 202
Cleansing Notice
Application for quotation of securities - DRE
Application for quotation of securities – DRE
Application for quotation of securities - DRE
Successful Drill Results Across Multiple Metals
Notice of Annual General Meeting/Proxy Form
Quarterly Cashflow Report - September 2022
Quarterly Activities Report - September 2022
Proposed issue of securities - DRE
Proposed issue of securities - DRE
Tenement Acquisitions
Broad, High-Grade Assays at Yin REE Discovery - Mangaroon
Mineralised Carbonatites Discovered at C3 and C4 - Mangaroon
Broad, High-Grade Assays at Yin REE Discovery - Mangaroon
Commencement of Regional Auger Program - Tarraji-Yampi
Appendix 4G and 2022 Corporate Governance Statement
Annual Report to Shareholders
Drilling commenced C-C5 & Y8 Discovery
Cleansing Statement – Early Exercise of Options
Application for quotation of securities - DRE
Initial Director’s Interest Notice - Philip Crutchfield
Final Director’s Interest Notice – Paul Payne
Board Changes
Proposed issue of securities - DRE
Star of Mangaroon Acquisition & Consolidation
Investor Webinar Presentation Recording
New World Metals Conference Presentation
Investor Webinar Presentation
Thick Rare Earth Ironstones Confirmed at Sabre(Y3) Discovery
Further Assays Confirm Yin as Significant REE Discovery
Change of Auditor
Investor Webinar
Trading Halt
Mangaroon Ni-Cu-PGE Project Advances to $12m Earn-in
Yin Drilling Complete, Significant Growth Potential
Long-Term Incentives on Delivery of Significant REE Resource
Nine Orion Look-alikes from Auger Program, More to Come
Diamond Drilling Commenced at Yin Rare Earth Discovery
Application for quotation of securities - DRE
12
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DIRECTORS’ REPORT
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
ASX Announcement
05/08/2022
02/08/2022
01/08/2022
01/08/2022
01/08/2022
01/08/2022
01/08/2022
01/08/2022
29/07/2022
29/07/2022
29/07/2022
29/07/2022
28/07/2022
25/07/2022
15/07/2022
15/07/2022
13/07/2022
11/07/2022
07/07/2022
Cleansing Notice - Placement
AMD: Completion of Sale of Strickland Copper Gold Project WA
Cleansing Notice
Application for quotation of securities - DRE
Completion of Acquisition – Central Yilgarn Project
Proposed issue of securities - DRE
Proposed issue of securities - DRE
Capital Raise to Accelerate Large Scale Rare Earth Discovery
Corporate Presentation – July 2022
Trading Halt
Quarterly Cashflow Report – June 2022
Quarterly Activities Report – June 2022
Assays Confirm Yin as a High-Grade Rare Earth Discovery
Rare Earth Ironstones Confirmed Over 3km of Strike at Yn
Proposed issue of securities - DRE
Notification regarding unquoted securities - DRE
AMD: Divestment of Strickland Gold Project WA
Significant Regional Consolidation – Central Yilgarn Project
Exercise of Option Consolidates Ownership of Illaara
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
13
DIRECTORS’ REPORT
INFORMATION ON DIRECTORS
Directors have been in office for the entire period unless otherwise stated.
PAUL CHAPMAN B.Comm, CA, Grad. Dip. Tax, MAICD, MAusIMM
Independent Non-Executive Chairman
Experience and Expertise
Mr Chapman is a company director with over 30 years in the resource sector. Mr Chapman has held senior management roles across
a range of commodity businesses and public companies in Australia and the USA. Mr Chapman was a founding director and shareholder
of Reliance Mining, Encounter Resources, Rex Minerals, Silver Lake Resources, Black Cat Syndicate and Dreadnought Resources.
Interests in shares, performance rights and options
• 317,938,084 shares
Other current directorships
Mr Chapman is the non-executive chairman of Meeka Metals Limited (ASX:MEK) (since May 2022).
Mr Chapman is a non-executive director of Sunshine Metals Limited (ASX:SHN) (since November 2020).
Mr Chapman is a non-executive chairman of Black Cat Syndicate Limited (ASX:BC8) (since August 2017).
Mr Chapman is a non-executive chairman of Encounter Resources Limited (ASX:ENR) (since October 2005).
Former directorships in the last 3 years
None.
DEAN TUCK B.Sc (Hons), FGAA, MAIG
Managing Director
Experience and expertise
Mr Tuck is an experienced geologist and exploration manager having worked across a wide range of commodities in Australia, Brazil
and Southeast Asia from project generation through to resource evaluation. He has held senior level positions at BHP Billiton and
ASX listed junior explorers. Mr Tuck has been instrumental in a number of discoveries including the Strickland gold, Mallinda and
Mallina LCT pegmatites and Wonmunna iron ore.
Interests in shares, performance rights and options
• 27,710,317 shares
• 36,500,000 options
Other current directorships
None.
Former directorships in the last 3 years
Mr Tuck resigned as non-executive director of Caeneus Minerals Limited (ASX:CAD) on 6 December 2022.
PHILIP CRUTCHFILED B. Comm, LLB (Hons), LL.M LSE
Non-executive Director
(Appointed 13 September 2022)
Experience and expertise
Mr Crutchfield is a senior barrister specialising in commercial law. Mr Crutchfield is also a long standing and second largest shareholder
in Dreadnought.
Interests in shares, performance rights and options
• 94,279,001 shares
• 853,098 options
Other current directorships
Mr Crutchfield is a non-executive director of Black Cat Syndicate Limited (ASX:BC8) (since 6 April 2021).
Mr Crutchfield is a non-executive director of Hamelin Gold Limited (ASX:HMG) (since 31 August 2021).
Mr Crutchfield is a non-executive director of Encounter Resources Limited (ASX:ENR) (since 9 October 2019).
Former directorships in the last 3 years
Mr Crutchfield was a non-executive director of Applyflow Limited (ASX:AFW) (from 17 October 2019 until 31 July 2023).
ROBERT GEE B Sc (Hons), PhD, Grad Cert Management
Non-executive Director
(Appointed 2 March 2023)
14
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DIRECTORS’ REPORT
Experience and Expertise
Dr Gee is an experienced hydrometallurgist and technical manager with over thirty years’ experience in the resources and battery
chemicals sectors, with significant focus on critical minerals extraction. Dr Gee has held senior positions in both private and public
sectors working in operations, technical development, and consulting. Dr Gee has worked for several small and large organisations
including BHP Group Limited and the Australian Nuclear Science and Technology Organisation.
Interests in shares, performance rights and options
• 600,000 shares
• 1,223,151 options
Other current directorships
None.
Former directorships in the last 3 years
None.
IAN GORDON B.Comm, MAICD
Non-executive Director
(Appointed 21 December 2017) (Resigned 30 November 2022)
PAUL PAYNE B.AppSc Grad Dip Min Ec, FAusIMM
Non-executive Director
(Appointed 21 December 2017) (Resigned 13 September 2022)
COMPANY SECRETARY
JESSAMYN LYONS BComm, AGIA ICSA (Grad Dip Applied Corporate Governance)
(Appointed 1 July 2020)
Experience and expertise
Ms Lyons is a Chartered Secretary, a Fellow of the Governance Institute of Australia and holds a Bachelor of Commerce from the
University of Western Australia with majors in Investment Finance, Corporate Finance and Marketing. Ms Lyons also has 15 years of
experience working in the stockbroking and banking industries and has held various positions with Macquarie Bank, UBS Investment
Bank (London) and more recently Patersons Securities.
MEETINGS OF DIRECTORS
The numbers of meetings of the Company's Board held during the year ended 30 June 2023, and the numbers of meetings attended
by each director were as follows:
P Chapman
D Tuck
P Crutchfield
R Gee
I Gordon
P Payne
Meetings of Directors
A
9
9
5
3
6
4
B
9
9
5
3
6
4
A = number of meetings attended
B = Number of meetings held during the time the director held office during the year and was eligible to attend
A Remuneration and Nomination Committee was formed comprising of Philip Crutchfield as Chair, and Robert Gee and Paul Chapman
as members with an initial meeting held on 26 June 2023 at which all members were present. The size of the Company does not
warrant a separate Audit & Risk Committee at this time; accordingly, the full Board performs these roles.
PROCEEDINGS ON BEHALF OF THE GROUP
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the
Group or intervene in any proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Group
for all or any part of those proceedings.
INDEMNIFICATION AND INSURANCE OF OFFICERS
The Company has indemnified the directors and officers for costs incurred, in their capacity as a director or officer of the Company,
for which they may be held personally liable, except where there is a lack of good faith. During the financial year, the Company paid
a premium in respect of a contract to insure the directors and officers of the Company against a liability to the extent permitted by
the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
15
DIRECTORS’ REPORT
NON-AUDIT SERVICES
The Group may decide to employ the auditor on assignments additional to their statutory duties where the auditors’ expertise and
experience with the Group are important. The Board is satisfied that the provision of any such non-audit services is compatible with
the general standard of independence for auditors imposed by the Corporations Act 2001.
The Board is also satisfied that the services disclosed below did not compromise the external auditor’s independence for the following
reasons:
•
all non-audit services are reviewed and approved by the Board prior to commencement to ensure they do not adversely affect
the integrity and objectivity of the auditor; and
the nature of the services provided do not compromise the general principles relating to auditor independence in accordance
with APES 110: Code of Ethics for Professional Accountants (including Independence Standards) set by the Accounting
Professional and Ethical Standards Board.
•
There were no fees for non-audit services paid or payable to the external auditors of the Company, their related practices or non-
related audit firms during the year ended 30 June 2023.
SHARES UNDER OPTION
At the date of this report unissued ordinary shares of the Company under option are:
Number
Type
Options
Options
Options
Options
Options
Options
Options
Options
Options
Total Options
Expiry date
30/06/2024
09/04/2024
02/07/2024
11/08/2024
26/11/2024
14/07/2025
16/12/2025
02/03/2026
14/06/2026
Exercise price
$0.0050
$0.0050
$0.0400
$0.0600
$0.0600
$0.0650
$0.1575
$0.1200
$0.0750
1,500,000
30,000,000
12,100,000
2,000,000
2,000,000
8,500,000
853,098
1,223,151
2,000,000
60,176,249
Vested
Unvested
1,500,000
30,000,000
9,600,000
1,000,000
1,000,000
4,250,000
853,098
1,223,151
-
49,426,249
-
-
2,500,000
1,000,000
1,000,000
4,250,000
-
-
2,000,000
10,750,000
Shares issued prior to or since year end as a result of exercise of options / performance rights:
Type Exercised
Date granted
Exercise price
Number of
shares issued
Options
Options
Options
Options
Options
Options
Options
Options
Performance Rights
Performance Rights
Options
Options
Options
Performance Rights
Performance Rights
Performance Rights
Performance Rights
Performance Rights
Performance Rights
Performance Rights
Performance Rights
Performance Rights
Performance Rights
Performance Rights
Performance Rights
Performance Rights
Performance Rights
02/07/2021
30/11/2020
30/11/2020
19/11/2020
02/07/2021
16/08/2019
06/07/2021
06/07/2021
30/11//2022
08/12/2022
25/05/2020
25/05/2020
25/05/2020
30/11/2022
08/12/2022
03/02/2022
30/01/2023
02/03/2023
31/05/2023
04/07/2023
30/11//2022
08/12/2022
03/02/2022
30/01/2023
02/03/2023
31/05/2023
04/07/2023
$0.0400
$0.0100
$0.0100
$0.0200
$0.0400
$0.0050
$0.0400
$0.0400
$0.0000
$0.0000
$0.0060
$0.0060
$0.0060
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
1,500,000
1,250,000
1,500,000
750,000
900,000
2,000,000
1,500,000
500,000
2,266,667
7,916,668
5,000,000
5,000,000
10,000,000
2,266,667
7,916,668
750,000
1,066,666
300,000
1,500,000
750,000
2,266,667
7,916,663
750,000
1,066,666
300,000
1,500,000
750,000
Date
exercised
15/09/2022
31/10/2022
31/10/2022
31/10/2022
31/10/2022
08/02/2023
08/02/2023
08/02/2023
13/01/2023
13/01/2023
04/04/2023
24/05/2023
24/05/2023
01/08/2023
01/08/2023
01/08/2023
01/08/2023
01/08/2023
01/08/2023
01/08/2023
4/09/2023
4/09/2023
4/09/2023
4/09/2023
4/09/2023
4/09/2023
4/09/2023
Amount paid
for shares ($)
60,000
12,500
15,000
15,000
36,000
10,000
60,000
20,000
-
-
30,000
30,000
60,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
16
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DIRECTORS’ REPORT
REMUNERATION REPORT – AUDITED
The remuneration report is set out under the following main headings:
A. Principles used to determine the nature and amount of remuneration
B. Details of remuneration
C. Share-based compensation
D. Shareholdings
E. Use of Remuneration Consultants
F. Relationship between remuneration and Company performance
G. Other transactions with key management personnel and their related parties
H. Key Management Personnel loans
The information provided in this remuneration report has been audited as required by section 308(3C) of the Corporations Act 2001.
A. Principles used to determine the nature and amount of remuneration
The Group's policy for determining the nature and amounts of remuneration of directors and key management personnel of the
Group is outlined below.
• The Company's constitution specifies that the total amount of remuneration of non-executive directors shall be fixed from time
to time by a general meeting. The current fixed amount for non-executive directors has been set at $400,000 per annum.
Directors may apportion up to this fixed amount amongst the non-executive directors as they determine. Directors are also
entitled to be paid reasonable travelling, accommodation and other expenses incurred in performing their duties as directors.
Non-executive and executive directors’ remuneration is primarily by way of fees and statutory superannuation contributions
and are eligible to participate in the Company’s Equity Incentive Plan as noted below.
• The Company’s Equity Incentive Plan (” Plan”) was approved by shareholders on 30 November 2022. Directors are eligible to
participate in the Plan. The Plan enables the Board to offer eligible employees and directors’ options to acquire ordinary fully
paid shares in the Company. Under the terms of the Plan, options and performance rights may be offered to the Company's
eligible employees at no cost or no more than nominal monetary consideration unless otherwise determined by the Board in
accordance with the terms and conditions of the Plan. The objective of the Plan is to align the interests of employees and
shareholders by providing employees of the Company with the opportunity to participate in the equity of the Company as an
incentive to achieve greater success and value for the Company and to maximise the long-term performance of the Company.
• The Company's remuneration structure is based on several factors including the financial position of the Company and the
experience and performance of an individual in meeting key objectives of the Company. The Board is responsible for assessing
relevant employment market conditions and achieving the overall, long-term objective of maximising shareholder wealth,
through the retention of high-quality personnel. The Company does not emphasise cash bonus schemes or other incentive-
based cash payments given the nature of the Company's business as a mineral exploration entity. However, the Board may
approve the payment of cash bonuses from time to time to reward individual performance in achieving key objectives as
considered appropriate by the Board.
Voting and comments made at the Company’s 2022 Annual General Meeting (“AGM”):
The Company received more than 99% of ‘yes’ votes on its remuneration report for the 2022 financial year. The Company did not
receive any specific feedback at the AGM or throughout the year on its remuneration practices.
B. Details of remuneration
This report details the nature and amount of remuneration for each key management person of the Company.
The names and positions held by directors and key management personnel of the Company during the financial year are:
• Mr P Chapman – Chairman, non-executive (appointed 9 April 2019)
• Mr D Tuck – Managing Director (appointed 9 April 2019)
• Mr P Crutchfield – Director, non-executive (appointed 13 September 2022)
• Dr R Gee – Director, non-executive (appointed 2 March 2023)
• Mr I Gordon – Director, non-executive (since 21 December 2017, resigned 30 November 2022)
• Mr P Payne – Director, non-executive (since 21 December 2017, resigned 13 September 2022)
• Ms D Fullarton – Chief Financial Officer (appointed 14 June 2023)
The remuneration policy of the Group has been designed to align key management personnel objectives with shareholder and business
objectives by providing a fixed remuneration component which is assessed on an annual basis in line with market rates. By providing
components of remuneration that are indirectly linked to share price appreciation (in the form of options and/or performance rights),
executive, business and shareholder objectives are aligned. The Board believes the remuneration policy to be appropriate and effective
in its ability to attract and retain the best key management personnel to run and manage the Company, as well as create goal
congruence between directors and shareholders.
The remuneration policy and the relevant terms and conditions have been developed by the Remuneration & Nomination Committee.
In determining competitive remuneration rates, the Board reviews trends among comparative companies and industry generally. It
examines terms and conditions for employee incentive schemes, benefit plans and share plans. Reviews are performed to confirm
that executive remuneration is in line with market practice and is reasonable in the context of Australian executive remuneration
practices.
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
17
DIRECTORS’ REPORT
REMUNERATION REPORT – AUDITED (continued)
B. Details of remuneration (continued)
The Company is an exploration entity, and therefore speculative in terms of performance. Consistent with attracting and retaining
talented executives, directors and executives are paid market rates associated with individuals in similar positions, within the same
industry.
(a) Executive remuneration – Mr D Tuck (appointed 9 April 2019)
Mr Dean Tuck, Managing Director, was employed by the Group in accordance with the terms and conditions outlined within his
service agreement dated 6 April 2023. For the year ended 30 June 2023, Mr Tuck received a base salary of $250,000 in short term
remuneration (2022: $225,750), with a further $25,292 in post-employment superannuation contributions (2022: $25,575). Both
parties may terminate the employment agreement by giving notice of termination to each other on not less than six (6) months’ notice
in writing.
Details of the balance of unlisted incentive options granted to the Managing Director during prior periods, but not fully exercised:
• On 16 August 2019, 10,500,000 unlisted incentive options were granted, exercisable at $0.005, with a fair value of $51,331,
expiring on 30 June 2024 and vesting immediately. 2,000,000 of these options were exercised during the year (2022: 3,000,000).
As at 30 June 2023, there were 1,500,000 options remaining.
• On 23 December 2019, 30,000,000 unlisted incentive options were granted, exercisable at $0.005, with a fair value of $177,184
expiring on 9 April 2024. 25% vested on 30 June 2020, 25% vested on 30 June 2021, 25% vested on 30 June 2022 and 25% vested
on 30 June 2023. These options are therefore fully vested. As at 30 June 2023, there were 30,000,000 options remaining.
• On 24 November 2021, 5,000,000 unlisted incentive options were granted, exercisable at $0.04, with a value of $186,900,
expiring on 2 July 2024. 50% vested on 2 July 2022 and 50% vested on 2 July 2023. Only 2,500,000 of these options are fully
vested at 30 June 2023. As at 30 June 2023, there were 5,000,000 options remaining.
(b) Executive remuneration – Ms D Fullarton (appointed 14 June 2023)
Ms Debbie Fullarton, Chief Financial Officer, was employed by the Group in accordance with the terms and conditions outlined within
her service agreement dated 14 June 2023. Her annual base salary was set at $250,000 with post-employment superannuation
contributions at the statutory rate. Both parties may terminate the employment agreement by giving notice of termination to each
other on not less than three (3) months’ notice in writing.
Ms Fullarton was granted the following incentive options on 31 May 2023:
• 2,000,000 unlisted incentive options exercisable at $0.075, with a fair value of $54,220, expiring on 14 June 2026 and vesting
after 12 months of continuous service.
(c) Non-Executive remuneration
The agreements in place during the 2023 financial year with the non-executive chairman, P Chapman and the non-executive directors,
P Crutchfield, R Gee, I Gordon, and P Payne are summarised below:
• Term of agreement is renewed annually.
• Fee of $60,000 per annum (plus minimum statutory superannuation entitlements) paid for the 2023 financial year.
• No payment of termination benefits.
• Annual election in writing to take base fee in options under the Company’s Equity Incentive Plan.
(d) Performance rights
On 30 November 2022, the Company granted 6,800,000 unlisted performance rights via the Equity Incentive Plan to directors of the
Company. The performance rights are subject to the following vesting conditions:
• Tranche 1: A Resource of at least the Inferred category of 10Mt @ > 1% TREO by 31 December 2022.
• Tranche 2: A Resource of at least the Inferred category of 20Mt @ > 1% TREO by 31 December 2023.
• Tranche 3: A Resource of at least the Inferred category of 30Mt @ > 1% TREO by 31 December 2024.
On 2 March 2023, 600,000 unlisted performance rights were granted to a new director subject to the following vesting conditions:
• Tranche 2: A Resource of at least the Inferred category of 20Mt @ > 1% TREO by 31 December 2023.
• Tranche 3: A Resource of at least the Inferred category of 30Mt @ > 1% TREO by 31 December 2024.
On 31 May 2023, 3,000,000 unlisted performance rights were granted to the Chief Financial Officer subject to the following vesting
conditions:
• Tranche 2: A Resource of at least the Inferred category of 20Mt @ > 1% TREO by 31 December 2023.
• Tranche 3: A Resource of at least the Inferred category of 30Mt @ > 1% TREO by 31 December 2024.
Tranche 1: vested on 31 December 2022, when the Company announced an Inferred Resource of 14.36Mt @ 1.13% TREO.
Tranche 2: vested on 5 July 2023, when the Company announced an Inferred and Indicated Resource of 20.06Mt @ 1.03% TREO.
Tranche 3: vested on 28 August 2023 when the Company announced global REE Resources of 30.90 Mt @ 1.02% TREO with the
addition of the 10.84Mt @ 1.0% TREO at C3.
18
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DIRECTORS’ REPORT
REMUNERATION REPORT – AUDITED (continued)
Details of key management personnel (KMP) remuneration
Short-Term
(a)
Post-employment
(b)
KMP
Salary / fees
2023
Directors
D Tuck
P Chapman
P Crutchfield1
R Gee2
I Gordon3
P Payne4
Other
D Fullarton5
Total
2022
Directors
D Tuck6
P Chapman
I Gordon3
P Payne4
Total
$
250,000
55,961
47,076
20,000
22,038
10,385
9,615
415,075
255,750
36,000
36,000
38,769
366,519
Annual
leave
entitlements
$
26,028
-
-
-
-
-
740
26,768
19,231
-
-
-
19,231
SUB
TOTAL
Share-based payments
(Fair Value at grant, expensed over vesting period)
Options
Performance rights
TOTAL
Total
performance
related
Options as
% of total
Superannuation
$
$
(vested)
$
(unvested)
$
(vested)
$
(unvested)
$
$
25,292
5,876
4,943
2,100
2,314
1,090
1,010
42,625
25,575
3,600
3,600
3,863
36,638
301,320
61,837
52,019
22,100
24,352
11,475
0
11,365
484,468
300,556
39,600
39,600
42,632
422,388
37,636
-
55,406
60,778
-
-
46,725
-
-
-
-
166,667
30,000
30,000
-
-
135,595
24,407
24,407
13,944
-
-
687,943
116,244
161,832
96,822
24,352
11,475
-
153,820
4,518
51,243
-
226,667
14,393
212,746
30,276
1,25,944
-
-
-
-
-
83,721
-
-
-
83,721
-
-
-
-
-
-
-
-
-
-
384,277
39,600
39,600
42,632
506,109
%
56%
47%
34%
14%
-
-
48%
-
-
-
-
%
12%
-
34%
63%
-
-
15%
22%
-
-
-
1Appointed 13 September 2022.
2Appointed 2 March 2023.
3Appointed 17 December 2017, resigned 30 November 2022.
4Appointed 17 December 2017, resigned 13 September 2022.
5Appointed 14 June 2023.
6Note the 2022 salary for D Tuck comprises a base salary of $250,000 and leave encashment of $5,750.
(a) There were no short-term cash bonuses or non-monetary benefits.
(b) There were no post-employment retirement benefits.
(c) There were no termination benefits.
(d) There were no long-term incentive plans.
DIRECTORS’ REPORT
REMUNERATION REPORT – AUDITED (continued)
C. Share-based compensation
Equity Incentive Plan
The Company has an Equity Incentive Plan approved by shareholders that enables the Board to offer eligible employees and directors
the option to acquire ordinary fully paid shares in the Company. Under the terms of the Plan, options to acquire ordinary fully paid
shares may be offered to the Company's eligible employees at no cost unless otherwise determined by the Board in accordance with
the terms and conditions of the Plan.
Options granted as remuneration
The terms and conditions of incentive options over ordinary shares granted to key management personnel of the Company during
the year affecting their remuneration in this financial year or future reporting years are as follows:
Name
Directors
P Crutchfield
R Gee
Other
D Fullarton
Number
of options
granted
Grant date
Vesting date
and exercisable
date
Expiry Date
Exercise
Price
Fair value
per option
at grant
date
853,098
1,223,151
30 November 2022
2 March 2023
Immediately
Immediately
16 December 2025
2 March 2026
$0.1575
$0.1200
$0.0649
$0.0497
2,000,000
31 May 2023
After 12 months
14 June 2026
$0.0750
$0.0271
Options granted carry no dividend or voting rights. All options were granted over unissued fully paid ordinary shares in the Company.
Options vest based on the provision of service over the vesting period whereby the key management personnel become beneficially
entitled to the option on vesting date. Options are exercisable by the holder as from the vesting date. There has not been any
alteration to the terms or conditions of the grant since the grant date. There are no amounts paid or payable by the recipient in
relation to the granting of such options other than on their potential exercise.
Shares issued on exercise of remuneration options
On 8 February 2023, D Tuck exercised 2,000,000 options granted as remuneration during prior years for an amount of $10,000.
Performance rights granted as remuneration
The terms and conditions of performance rights over ordinary shares granted to key management personnel of the Company during
the year affecting their remuneration in this financial year or future reporting years are as follows:
Name
Directors
D Tuck
P Chapman
P Crutchfield
R Gee
Other
D Fullarton
Number of performance
rights granted
Grant date
Tranche
1,666,666
1,666,667
1,666,667
300,000
300,000
300,000
300,000
300,000
300,000
300,000
300,000
1,500,000
1,500,000
30 November 2022
30 November 2022
30 November 2022
2 March 2023
31 May 2023
Tranche 1
Tranche 2
Tranche 3
Tranche 1
Tranche 2
Tranche 3
Tranche 1
Tranche 2
Tranche 3
Tranche 2
Tranche 3
Tranche 2
Tranche 3
Exercise
Price
Fair value
per right
at grant
date
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
$0.1000
$0.1000
$0.1000
$0.1000
$0.1000
$0.1000
$0.1000
$0.1000
$0.1000
$0.0800
$0.0800
$0.0500
$0.0500
Tranche 1: A Resource of at least the Inferred category of 10Mt @ > 1% TREO by 31 December 2022.
Tranche 2: A Resource of at least the Inferred category of 20Mt @ > 1% TREO by 31 December 2023.
Tranche 3: A Resource of at least the Inferred category of 30Mt @ > 1% TREO by 31 December 2024.
Shares issued on exercise of remuneration performance rights
On 31 December, Tranche 1 Performance Rights vested and subsequently 1,666,666 shares were issued to D Tuck, 300,000 shares
to P Chapman and 300,000 shares to P Crutchfield on 13 January 2023 upon exercise of those rights.
20
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DIRECTORS’ REPORT
REMUNERATION REPORT – AUDITED (continued)
D. Key management personnel interests in options, performance rights and shares
Options
The number of options held by key management personnel of the Group during the financial year is as follows:
Name
Directors
P Chapman
D Tuck
P Crutchfield1
R Gee2
I Gordon3
P Payne4
Other
D Fullarton5
Balance at
beginning of
year
Granted as
remuneration
during the
year
Options
exercised
Net change
other
Balance at
year end
Total vested
30/06/23
Total
exercisable
30/06/23
-
38,500,000
-
-
-
-
-
-
853,098
1,223,151
-
-
-
(2,000,000)
-
-
-
-
-
38,500,000
2,000,000
4,076,249
-
(2,000,000)
-
-
-
-
-
-
-
-
-
36,500,000
853,098
1,223,151
-
-
-
34,000,000
853,098
1,223,151
-
-
-
34,000,000
853,098
1,223,151
-
-
2,000,000
40,576,249
-
36,076,249
-
36,076,249
Performance rights
The number of performance rights held by key management personnel of the Group during the financial year is as follows:
Balance at
beginning of
year
Granted as
remuneration
during the
year
Performance
rights
exercised
Net change
other
Balance at
year end
Total vested
30/06/23
Total
exercisable
30/06/23
-
-
-
-
-
-
-
-
900,000
5,000,000
900,000
600,000
-
-
(300,000)
(1,666,666)
(300,000)
-
-
-
3,000,000
10,400,000
-
(2,266,666)
-
-
-
-
-
-
-
-
600,000
3,333,334
600,000
600,000
-
-
3,000,000
8,133,334
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Name
Directors
P Chapman
D Tuck
P Crutchfield1
R Gee2
I Gordon3
P Payne4
Other
D Fullarton5
Shareholdings
The number of ordinary shares held by key management personnel of the Group during the financial year is as follows:
Name
Balance at
beginning of year
Participation in
Placement during
the year
Issued on exercise
of options /
performance rights
during the year
Other changes
during the year*
Balance at end
of year
Directors
P Chapman
D Tuck
P Crutchfield1
R Gee2
I Gordon3
P Payne4
Other
D Fullarton5
311,038,084
20,710,317
-
-
48,175,187
47,277,781
6,000,000
-
13,000,000
-
-
-
300,000
3,666,666
300,000
-
-
-
-
-
80,379,001
-
(48,175,187)
(47,277,781)
317,338,084
24,376,983
93,679,001
-
-
-
-
427,201,369
-
19,000,000
-
4,266,666
-
(15,073,967)
-
435,394,068
*Other changes relate to initial director’s interest and subsequent market purchases.
1Appointed 13 September 2022.
2Appointed 2 March 2023.
3Appointed 17 December 2017, resigned 30 November 2022. Interest held at resignation date.
4Appointed 17 December 2017, resigned 13 September 2022. Interest held at resignation date.
5Appointed 14 June 2023.
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
21
DIRECTORS’ REPORT
REMUNERATION REPORT – AUDITED (continued)
E. Use of Remuneration Consultants
The Board seeks external remuneration advice as required and engaged BDO Reward Pty Ltd to assist with remuneration
benchmarking for the:
• Non-Executive Chairman,
• Non-Executive Directors,
• Managing Director, and
• Chief Financial Officer.
F. Relationship between remuneration and Company performance
Earnings and total shareholder returns
Remuneration for certain individuals is directly linked to the performance of the Group which is determined by exploration and
evaluation outcomes. However, as required by regulation, details of the earnings, share price and total shareholders return for the
last five years are as follows:
Operating revenue
Net profit/(loss)
Share price at year end
Annual VWAP
2023
$
338,777
(5,521,985)
0.0520
0.0915
2022
$
(Restated)
91,927
(1,740,126)
0.0470
0.0424
2021
$
(Restated)
149,198
(1,435,981)
0.0240
0.0184
2020
$
72,163
(1,215,539)
0.0060
0.066
2019
$
3,474
(688,822)
0.0040
0.0042
Market capitalisation at year end
Market capitalisation as at 30 June 2023 was $173,041,867.
G. Other transactions with key management personnel and their related parties
Transactions with key management personnel and their related parties recognised during the year (excluding re-imbursement of
expenses incurred on behalf of the Company) relating to directors and their director related entities were as follows:
Director
Transaction
P Chapman
Payments to a director related entity for office rental (ie Stone Poneys
Nominees Pty Ltd atf Chapman Superannuation Fund).
The lease has been terminated effective 31 December 2021
2023
$
2022
$
-
9,350
No amounts were owing to related parties as at 30 June 2023 (2022: nil)
H. Key Management Personnel Loans
There were no loans issued during the financial year (2022: Nil).
Remuneration report ends.
Auditor’s independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately
after this directors' report.
The Directors’ Report, incorporating the Remuneration Report, is signed in accordance with the resolution of the Board of Directors.
DEAN TUCK
Managing Director
Dated 19 September 2023
22
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
PKF Perth
TO THE DIRECTORS OF DREADNOUGHT RESOURCES LIMITED
In relation to our audit of the financial report of Dreadnought Resources Limited for the year ended 30 June 2023,
to the best of my knowledge and belief, there have been no contraventions of the auditor independence
requirements of the Corporations Act 2001 or any applicable code of professional conduct.
PKF PERTH
SHANE CROSS
PARTNER
19 SEPTEMBER 2023
WEST PERTH,
WESTERN AUSTRALIA
Level 4, 35 Havelock Street, West Perth, WA 6005
PO Box 609, West Perth, WA 6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or
inactions of any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
23
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
For the Year Ended 30 June 2023
Consolidated
30 June 2023
$
Note
Other income
Gain on fair value of financial asset
Administration expenses
Finance expense
Exploration expenditure
Legal fees
Depreciation and amortisation expense
Impairment of exploration expenditure
Director and employee benefits expense
Loss from continuing operations before income tax
Income tax benefit
2
11
3
3
3
10
3
4
30 June 2022
$
(Restated)*
91,927
50,000
338,777
-
(2,025,575)
(793,691)
(18,213)
(42,312)
(329,511)
(268,852)
(176,339)
(132,811)
(28,912)
(62,114)
(342,431)
(123,715)
(2,835,882)
(562,457)
(5,521,985)
(1,740,126)
-
-
Loss from continuing operations before income tax
(5,521,985)
(1,740,126)
Other comprehensive loss, net of income tax
-
-
Total comprehensive loss for the year
(5,521,985)
(1,740,126)
Loss per share for loss attributable to the ordinary equity holders of the Company
Basic loss per share (cents)
Diluted loss per share (cents)
Note
Cents
Cents
17
17
(0.18)
(0.18)
(0.06)
(0.06)
The above consolidated statement of profit or loss and comprehensive income
should be read in conjunction with the accompanying notes.
*The comparative information has been restated as a result of prior period adjustments discussed in Note 1(e).
24
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Consolidated Statement of Financial Position
As at 30 June 2023
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Other assets
Exploration asset held for sale
Financial assets
Total Current Assets
Non-Current Assets
Property, plant, and equipment
Right-of-use-assets
Exploration assets
Total Non-Current Assets
Total Assets
LIABILITIES
Current Liabilities
Trade and other payables
Provisions
Lease liability
Total Current Liabilities
Non-Current Liabilities
Lease liability
Other financial liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
EQUITY
Issued capital
Reserves
Accumulated losses
Total Equity
30 June 2023
Note
$
Consolidated
30 June 2022
$
(Restated)*
30 June 2021
$
(Restated)*
6
7
8
11
9
9
10
12
13
13
14
15
16
5,664,368
348,328
446,801
-
6,011,725
12,471,222
450,526
160,919
42,278,019
42,889,464
2,501,971
86,172
150,446
-
150,000
2,888,589
291,498
198,782
17,196,520
17,686,800
2,645,136
157,172
334,613
100,000
-
3,236,921
-
-
10,213,312
10,213,312
55,360,686
20,575,389
13,450,233
4,197,297
144,397
34,192
1,222,313
95,023
29,742
4,375,886
1,347,078
143,384
-
143,384
177,577
-
177,577
807,641
62,986
-
870,627
-
578,947
578,947
4,519,270
1,524,655
1,449,574
50,841,416
19,050,734
12,000,659
97,104,008
1,933,230
60,954,153
770,418
52,030,339
904,031
(48,195,822)
(42,673,837)
(40,933,711)
50,841,416
19,050,734
12,000,659
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
*The comparative information has been restated as a result of prior period adjustments discussed in Note 1(e).
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
25
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2023
Attributable to shareholders of Dreadnought Resources Limited
Accumulated
Losses
Equity
Reserve
Share
Based
Payments
Reserve
$
$
$
Issued
Capital
$
Total
Equity
$
As at 1 July 2021, as previously reported
52,030,339
(40,775,595)
55,719
848,312
12,158,775
Adjustment for reimbursement of Earn in cost*
-
(158,116)
-
-
(158,116)
As at 1 July 2022, as restated*
52,030,339
(40,933,711)
55,719
848,312
12,000,659
Comprehensive income
Loss for the year, as previously reported
Adjustment for reimbursement of Earn in cost*
Loss for the year, as restated*
Other comprehensive loss
Total comprehensive loss for the year
Transactions with owners in their capacity as
owners
-
-
-
-
-
(1,433,764)
(306,362)
(1,740,126)
-
(1,740,126)
Share issues, net of transaction costs (Note 15)
7,509,657
Conversion of convertible notes
Exercise of options (Note 15)
Issue of options
655,719
758,438
-
-
-
-
-
As at 30 June 2022, as restated
60,954,153
(42,673,837)
Balance at 1 July 2022
Loss for year
Other comprehensive loss
Total comprehensive loss for the year
Transactions with owners in their capacity as
owners
60,954,153
(42,673,837)
-
-
-
(5,521,985)
(5,521,985)
Share issues, net of transaction costs (Note 14)
34,523,693
Issue of options
Issue of performance rights
Exercise of options (Note 15a)
Redemption of performance rights (Note 15b)
-
-
702,829
923,333
-
-
-
-
-
Balance at 30 June 2023
97,104,008
(48,195,822)
-
-
-
-
-
-
(55,719)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(467,239)
389,345
(1,433,764)
(306,362)
(1,740,126)
-
(1,740,126)
7,509,657
600,000
291,199
389,345
770,418
19,050,734
770,418
19,050,734
-
-
-
-
617,418
1,823,056
(354,329)
(923,333)
(5,521,985)
-
(5,521,985)
34,523,693
617,418
1,823,056
348,500
-
1,933,230
50,841,416
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
*The comparative information has been restated as a result of prior period adjustments discussed in Note 1(e).
26
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2023
Consolidated
30 June 2023
Note
$
30 June 2022
$
(Restated)*
CASH FLOWS FROM OPERATING ACTIVITIES:
Payments to suppliers and employees
(2,319,987)
(1,262,281)
Interest received
Interest and other costs of finance paid
Receipts from JV Partner
Government grants
59,197
-
375,000
144,000
5,167
(5,945)
195,807
-
Net cash (used in) operating activities
18
(1,741,790)
(1,067,252)
CASH FLOWS FROM INVESTING ACTIVITIES:
Funds invested in term deposits
Payments for exploration assets
Payments for acquisition of tenements
Payment for property, plant, and equipment
Payments for acquisition of subsidiary
Proceeds from sale of financial assets
11
(6,011,725)
-
(18,419,893)
(6,457,880)
(2,457,595)
(30,000)
(253,976)
(325,215)
(150,000)
183,039
-
-
Net cash (used in) investing activities
(27,110,150)
(6,813,095)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issue of shares
Capital raising costs
Exercise of options
Payment of lease liability
Net cash provided by financing activities
Net increase/(decrease) in cash and cash equivalents held
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of financial year
33,750,000
8,000,000
(2,036,207)
(518,843)
348,500
(47,956)
291,199
(35,174)
32,014,337
7,737,182
3,162,397
(143,165)
2,501,971
2,645,136
5,664,368
2,501,971
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
*The comparative information has been restated as a result of prior period adjustments discussed in Note 1(e).
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
27
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
1. Summary of Significant Accounting Policies
The principal accounting policies adopted in the preparation of these consolidated Financial Statements are set out below. These
policies have been consistently applied to all the periods presented, unless otherwise stated. The Financial Statements are for the
consolidated entity consisting of Dreadnought Resources Limited and its subsidiaries.
(a)
Basis of Preparation
These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards and
interpretations issued by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. Dreadnought
Resources Limited is a for profit entity for the purpose of preparing the financial statements.
(i)
(ii)
(iii)
Compliance with IFRS
These consolidated financial statements also comply with International Financial Reporting Standards (IFRS) as
issued by the International Accounting Standards Board (IASB).
Historical cost convention
These financial statements have been prepared on an accrual basis, under the historical cost convention, as
modified by the revaluation of financial assets through other comprehensive income.
Critical accounting estimates
The directors evaluate estimates and judgments incorporated into the financial report based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future events and
are based on current trends and economic data, obtained both externally and within the Group.
(b) Going concern
The financial statements have been prepared on a going concern basis which assumes the Company and Consolidated
Group will have sufficient funds to pay its debts, as and when they become payable, for a period of at least 12 months
from the date the financial report is authorised for issue.
As at 30 June 2023, the Consolidated Group had net assets of $50,841,416 (2022: $19,050,734 (Restated)) and a working
capital surplus of $8,095,336 (2022: working capital surplus of $1,541,511). In addition, during the financial year, the
Consolidated Group had cash outflows from operating activities of $1,741,790 (2022: $1,067,252 (Restated)) and cash
outflows from investing activities (including payments for exploration) of $27,110,150 (2022: 6,813,095 (Restated)).
In August 2022, the Group completed a placement at $0.06 per share to institutional and sophisticated investors raising
$12,000,000 (before costs). In addition, the Directors contributed a further $350,000 to the placement in December 2022.
In February 2023, the Company completed a placement at $0.10 per share to institutional and sophisticated investors
raising $20,000,000 (before costs). In addition, the Directors contributed a further $1,400,000 to the placement in April
2023.
The Group’s cash flow forecast out to 30 September 2024 indicates that the Group will have sufficient cash flows to meet
all commitments and working capital requirements for the 12-month period from the date of signing this financial report.
To address the future funding requirements of the Group, the directors have:
• developed a business plan that provides encouragement for investors to invest; and
•
continued their focus on maintaining an appropriate level of corporate overheads and projects spending in line
with the Group’s available cash.
Based on the cash flow forecasts, the directors are satisfied that the going concern basis of preparation is appropriate.
28
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1. Summary of Significant Accounting Policies (continued)
(c)
Basis of Consolidation
The Group financial statements consolidate those of the Parent and all of its subsidiaries. The Parent controls a subsidiary
if it is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those
returns through its power over the subsidiary. All subsidiaries have a reporting date of 30 June. 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.
Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-
controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The Group
recognises the fair value of the consideration received and the fair value of any investment retained together with any gain
or loss in profit or loss. Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the
year are recognised from the effective date of acquisition, or up to the effective date of disposal, as applicable.
Non-controlling interests, presented as part of equity, represent the portion of a subsidiary’s profit or loss and net assets
that is not held by the Group. The Group attributes total comprehensive income or loss of subsidiaries between the
owners of the parent and the non-controlling interests based on their respective ownership interests.
(d)
Investments in joint arrangements
Joint arrangements represent the contractual sharing of control between parties in a business venture where unanimous
decisions about relevant activities are required. Separate joint venture entities providing joint ventures with an interest to
net assets are classified as a joint venture and accounted for using the equity method.
Joint operations represent arrangements whereby joint operators maintain direct interests in each asset and exposure to
each liability of the arrangement. The Group’s interests in assets, liabilities, revenue and expenses of joint operations are
included in the respective line items of the consolidated financial statements. Gains and losses resulting from sales to a
joint operation are recognised to the extent of the other parties’ interests. When the Group makes purchases from a
joint operation, it does not recognise its share of the gains and losses from the joint arrangement until it resells those
goods/assets to a third party.
(e)
Comparative Amounts
Comparatives are consistent with prior years, unless otherwise stated. Where a change in comparatives has also affected
the opening retained earnings previously presented in a comparative period, an opening statement of financial position at
the earliest date of the comparative period has been presented.
(i)
Prior period adjustments
In prior years, the Group has recorded the reimbursement of capitalised exploration costs by the earn-in party at
the Mangaroon Ni-Cu-PGE Project as revenue in the consolidated statement of profit or loss and other
comprehensive income. In substance, this is the portion of exploration costs required as part of the Earn-in
Agreement and should not have been recognised as revenue. The reimbursement of capitalised exploration costs
for the financial year ended 30 June 2022 amounted to $306,362 and for the financial year ended 30 June 2021
amounted to $158,116 totalling $464,478. For the year ended 30 June 2022, the net amount credited to capitalised
exploration costs is $306,362 which relates to the total amounts received from the earn-in party of $393,122
previously recognised as other income less $86,760 which is now considered as actual revenue item in the
consolidated statement of profit or loss.
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
29
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1. Summary of Significant Accounting Policies (continued)
(e)
Comparative Amounts (continued)
(i)
Prior period adjustments (continued)
The following table summarises the impact of the prior period adjustment on the consolidated financial statements
of the Group:
Consolidated statement of profit or loss and
other comprehensive income
Receipts from Earn-in
Loss before/after income tax for the period
Total comprehensive loss for the period
Consolidated statement of financial position
Exploration assets
Total assets
Net assets
Accumulated losses
Total equity
Consolidated statement of financial position
Exploration assets
Total assets
Net assets
Accumulated losses
Total equity
Consolidated statement of cash flows
Receipts from JV Partner
Net cash outflow from operating activities
Payment for exploration and evaluation activities
Net cash outflow from investing activities
30 June 2022
As reported
$
Adjustment
$
30 June 2022
As restated
$
393,122
(1,433,764)
(1,433,764)
(306,362)
(306,362)
(306,362)
86,760
(1,740,126)
(1,740,126)
30 June 2022
As reported
$
Adjustment
$
30 June 2022
As restated
$
17,660,998
21,039,867
19,515,212
(42,209,359)
19,515,212
(464,478)
(464,478)
(464,478)
(464,478)
(464,478)
17,196,520
20,575,389
19,050,734
(42,673,837)
19,050,734
30 June 2021
As reported
$
Adjustment
$
30 June 2021
As restated
$
10,371,428
13,608,349
12,158,775
(40,775,595)
12,158,775
(158,116)
(158,116)
(158,116)
(158,116)
(158,116)
10,213,312
13,450,233
12,000,659
(40,933,711)
12,000,659
30 June 2022
As reported
$
Adjustment
$
30 June 2022
As restated
$
502,169
(760,890)
(6,794,242)
(7,119,457)
(306,362)
(306,362)
306,362
306,362
195,807
(1,067,252)
(6,487,880)
(6,813,095)
The prior period adjustment did not have a material impact on basic or diluted loss per share.
30
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1. Summary of Significant Accounting Policies (continued)
(f)
Income Tax
The tax expense recognised in the profit or loss and other comprehensive income relates to current income tax expense
plus deferred tax expense (being the movement in deferred tax assets and liabilities and unused tax losses during the year).
Current tax is the amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for the year
and is measured at the amount expected to be paid to (recovered from) the taxation authorities, using the tax rates (and
tax laws) that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is provided on temporary differences which are determined by comparing the carrying amounts of tax bases
of assets and liabilities to the carrying amounts in the consolidated financial statements. Deferred tax assets and liabilities
are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled,
based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax consequences relating to a non-monetary asset carried at fair value are determined using the assumption
that the carrying amount of the asset will be recovered through sale.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses to the extent that it is
probable that taxable profit will be available against which the deductible temporary differences and losses can be utilised.
Current tax assets and liabilities are offset where there is a legally enforceable right to set off the recognised amounts and
there is an intention either to settle on a net basis or to realise the asset and settle the liability simultaneously.
Deferred tax assets and liabilities are offset where there is a legal right to set off current tax assets against current tax
liabilities and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities
and assets on a net basis, or to realise the assets and settle the liabilities simultaneously in each future period in which
significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
Current and deferred tax is recognised as income or an expense and included in profit or loss for the period except where
the tax arises from a transaction which is recognised in other comprehensive income or equity, in which case the tax is
recognised in other comprehensive income or equity respectively.
Dreadnought Resources Limited and its wholly owned Australian subsidiaries have formed an income tax consolidated
group under tax consolidation legislation. Each entity in the Group recognises its own current and deferred tax assets and
liabilities. Such taxes are measured using the ‘stand-alone taxpayer’ approach to allocation.
Current tax liabilities (assets) and deferred tax assets arising from unused tax losses and tax credits in the subsidiaries are
immediately transferred to the head entity.
The tax consolidated group has entered into a tax funding arrangement whereby each company in the Group contributes
to the income tax payable by the Group in proportion to their contribution to the Group’s taxable income. Differences
between the amounts of net tax assets and liabilities derecognised and the net amounts recognised pursuant to the funding
arrangement are recognised as either a contribution by, or distribution to the head entity.
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
31
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1. Summary of Significant Accounting Policies (continued)
(g)
Leases
The Group as lessee
At inception of a contract, the Group assesses if the contract contains a lease or is a lease. If there is a lease present, a
right-of-use asset and a corresponding lease liability are recognised by the Group where the Group is a lessee. However,
all contracts that are classified as short-term leases (i.e. a lease with a remaining lease term of 12 months or less) and
leases of low-value assets are recognised as an operating expense on a straight-line basis over the term of the lease.
Initially the lease liability is measured at the present value of the lease payments still to be paid at the commencement
date. The lease payments are discounted at the interest rate implicit in the lease. If this rate cannot be readily determined,
the Group uses the incremental borrowing rate.
Lease payments included in the measurement of the lease liability are as follows:
•
•
fixed lease payments less any lease incentives
variable lease payments that depend on an index or rate, initially measured using the index or rate at the
commencement date
the amount expected to be payable by the lessee under residual value guarantees
the exercise price of purchase options if the lessee is reasonably certain to exercise the options
lease payments under extension options if the lessee is reasonably certain to exercise the options
•
•
•
• payments of penalties for terminating the lease if the lease term reflects the exercise of an option to terminate
the lease
The right-of-use assets comprise the initial measurement of the corresponding lease liability, any lease payments made at
or before the commencement date and any initial direct costs. The subsequent measurement of the right-of-use assets is
at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over the lease term or useful life of the underlying asset, whichever is the shortest.
Where a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group
anticipates exercising a purchase option, the specific asset is depreciated over the useful life of the underlying asset.
(h)
Revenue and other income (including government grants)
Revenue is recognised when or as the Group transfers control of goods or services to a customer at the amount to which
the Group expected to be entitled. If the consideration promised includes a variable amount, the Group estimates the
amount of consideration to which it will be entitled.
Revenue is measured at the transaction price received or receivable (which excludes estimates of variable consideration)
allocated to the performance obligation satisfied and represents amounts receivable for services provided in the normal
course of business, net of discounts, GST, and other sales related taxes. Where the expected period between transfer of
a promised service and payment from the customer is one year or less no adjustment for a financing component is made.
Revenue arising from the provision of services is recognised when and to the extent that the customer simultaneously
receives and consumes the benefits of the Group’s performance, or the Group does not create an asset with an alternative
use but has an enforceable right to payment for performance completed to date.
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest
rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset
to the net carrying amount of the financial asset.
Other revenue is recognised when it is received or when the right to receive payment is established. Government
assistance revenue is recognised when it is received or when the right to receive payment is established.
(i)
Goods and Services Tax (GST)
Revenue, expenses, and assets are recognised net of the amount of goods and services tax (GST), except where the
amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).
Receivables and payable are stated inclusive of GST.
32
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1. Summary of Significant Accounting Policies (continued)
(i)
Goods and Services Tax (GST) (continued)
The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the
statement of financial position.
Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flows arising from
investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating
cash flows.
(j)
Property, Plant and Equipment
Where the cost model is used, the asset is carried at its cost less any accumulated depreciation and any impairment losses.
Costs include purchase price, other directly attributable costs, and the initial estimate of the costs of dismantling and
restoring the asset, where applicable.
Plant and equipment
Plant and equipment are measured on a cost basis. The carrying amount of plant and equipment is reviewed annually by
directors to ensure it is not in excess of the recoverable amount. The recoverable amount is assessed on the basis of the
expected net cash flows that will be received from the assets’ employment and subsequent disposal. The expected net
cash flows have been discounted to their present values in determining recoverable amounts.
Subsequent costs are included in the assets’ carrying amounts or recognised as separate assets as appropriate, only when
it is probable that future economic benefits associated with the item will flow to the Group and the cost can be measured
reliably. All other repairs and maintenance are charged to the statement of profit or loss and other comprehensive income
during the financial year in which they are incurred.
Depreciation
The depreciable amount of all property, plant, and equipment, except for freehold land is depreciated on a reducing
balance method from the date that management determine that the asset is available for use. The depreciation rates used
for each class of depreciable assets vary from 20% to 40%. Where the asset qualifies for the ATO instant write-off
deduction, it is written off in the statement of profit or loss and other comprehensive income.
(k)
Financial instruments
Classification and Measurement
Under AASB 9, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value
through profit or loss, transaction costs. Under AASB 9, debt financial instruments are subsequently measured at fair value
through profit or loss (FVPL), amortised cost, or fair value through other comprehensive income (FVOCI).
Classification is based on two criteria:
• The Group’s business model for managing the assets; and
• Whether the instruments’ contractual cash flows represent ‘solely payments of principal and interest’ on the
principal amount outstanding (the ‘SPPI criterion’).
The classification and measurement of the Group’s debt financial assets are, as follows:
• Debt instruments are amortised cost for financial assets that are held within a business model with the objective
to hold the financial assets in order to collect contractual cash flows that meet the SPPI criterion. This category
includes the Group’s trade and other receivables.
Other financial assets are classified and subsequently measured, as follows:
• Equity instruments at FVOCI, with no recycling of gains or losses to profit or loss on derecognition. This category
only includes equity instruments which the Group has irrevocably elected to so classify upon initial recognition or
transition.
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
33
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1. Summary of Significant Accounting Policies (continued)
(k)
Financial instruments (continued)
The classification and measurement of the Group’s debt financial assets are, as follows:
• Debt instruments are amortised cost for financial assets that are held within a business model with the objective
to hold the financial assets in order to collect contractual cash flows that meet the SPPI criterion. This category
includes the Group’s trade and other receivables.
Other financial assets are classified and subsequently measured, as follows:
• Equity instruments at FVOCI, with no recycling of gains or losses to profit or loss on derecognition. This category
only includes equity instruments which the Group has irrevocably elected to so classify upon initial recognition or
transition.
Impairment
The Group applies the AASB 9 simplified model of recognising lifetime expected credit losses for all trade receivables as
these items do not have a significant financing component.
Where applicable, in measuring the expected credit losses, the trade receivables are assessed on a collective basis as they
possess shared credit risk characteristics. They are grouped based on the days past due.
The expected loss rates are based on the historic payment profile for as well as the corresponding historical credit losses
during that period. The historical rates are adjusted to reflect current and forwarding looking macroeconomic factors
affecting the customer’s ability to settle the amount outstanding.
Trade receivables are written off when there is no reasonable expectation of recovery. Failure to make payments within
180 days from the invoice date and failure to engage with the Group on alternative payment arrangement amongst others
is considered indicators of no reasonable expectation of recovery.
Compound financial instruments
Compound financial instruments issued by the Group comprise convertible notes that can be converted to ordinary shares
at the option of the holder, when the number of shares to be issued is fixed and does not vary with changes in fair value.
The liability component of compound financial instruments is initially recognised at the fair value of a similar liability that
does not have an equity conversion option. The equity component is initially recognised at the difference between the fair
value of the compound financial instrument as a whole and the fair value of the liability component. Any directly attributable
transaction costs are allocated to the liability and equity components in proportion to their initial carrying amounts.
Subsequent to initial recognition, the liability component of a compound financial instrument is measured at amortised
cost using the effective interest method. The equity component of a compound financial instrument is not remeasured.
Interest related to the financial liability is recognised in profit or loss. On conversion at maturity, the financial liability is
reclassified to equity and no gain or loss is recognised.
(l)
Impairment of non-financial assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more
frequently if events or changes in circumstances indicate that they might be impaired. Other assets 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 asset’s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are
largely independent of the cash inflows from other assets or groups of assets (cash generating units). Non-financial assets
other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at each reporting
date.
(m) Cash and cash equivalents
For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents includes cash on
hand, deposits held at call with financial institutions, other short term, highly liquid investments with original maturities of
twelve months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk
of changes in value, and bank overdrafts. Any bank overdrafts the Group have are shown within borrowings in current
liabilities in the consolidated statement of financial position.
34
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1. Summary of Significant Accounting Policies (continued)
(n)
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 months after the end of the period in which the employees render the related service. Examples of such benefits
include wages and salaries and non-monetary benefits. 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 long service leave are included in other long-term benefits as they are not expected to be settled
wholly within twelve 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. 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.
(o)
Loss per share
Dreadnought Resources Ltd presents basic and diluted loss per share information for its ordinary shares.
Basic loss per share is calculated by dividing the profit attributable to owners of the Company by the weighted average
number of ordinary shares outstanding during the year.
Diluted earnings per share adjusts the basic earnings per share to take into account the after-income tax effect of interest
and other financing costs associated with dilutive potential ordinary shares and the weighted average number of additional
ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares.
(p)
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share
options which vest immediately are recognised as a deduction from equity, net of any tax effects.
(q)
Share-Based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees and non-employees. The
fair value of the equity to which employees become entitled is measured at grant date and recognised as an expense over
the vesting period, with a corresponding increase to an equity account. The fair value of shares is ascertained as the market
bid price. The fair value of options is ascertained using a Black Scholes pricing model which incorporates all market vesting
conditions. The amount to be expensed is determined by reference to the fair value of the options or shares granted.
This expense takes in account any market performance conditions and the impact of any non-vesting conditions but ignores
the effect of any service and non-market performance vesting conditions.
Non-market vesting conditions are taken into account when considering the number of options expected to vest. At the
end of each reporting period, the Group revises its estimate of the number of options which are expected to vest based
on the non-market vesting conditions. Revisions to the prior period estimate are recognised in profit or loss and equity.
If the Group modifies the terms or conditions of the equity instruments granted in a manner that reduces the total fair
value of the share-based payment arrangement, or is not otherwise beneficial to the employee, the Group shall
nevertheless continue to account for the services received as consideration for the equity instruments granted as if that
modification had not occurred. In addition, the Group recognises the effect of modifications that increase the total fair
value of the share-based payment arrangement or are otherwise beneficial to the employee.
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
35
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1. Summary of Significant Accounting Policies (continued)
(r)
Exploration and development expenditure
Exploration, evaluation, and development expenditure incurred is accumulated in respect of each identifiable area of
interest. These costs are only carried forward to the extent that they are expected to be recouped through successful
development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment
of the existence of economically recoverable reserves. As the asset is not available for use it is not depreciated or
amortised.
Accumulated costs in relation to an abandoned area are impaired in full against profit or loss in the period in which the
decision to abandon that area is made.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward
costs in relation to that area of interest.
(s)
Reserves
FVOCI reserves represent financial assets at fair value through other comprehensive income reserve. The reserve records
fair value change of equity instruments. The equity reserve represents the equity component (conversion rights) on the
issue of unsecured convertible notes.
(t)
Key estimates and judgments
The preparation of the consolidated financial statements requires management to make estimates and judgments. These
estimates and judgments are continually evaluated and are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the Group and that are believed to be reasonable under
the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition,
seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
(i)
Estimated impairment
The Group assesses impairment at each reporting date by evaluating conditions specific to the Group that may
lead to impairment of assets as noted in note 1(l). Where an impairment trigger exists, the recoverable amount
of the asset is determined.
(ii)
Exploration and evaluation
The Group policy for exploration and evaluation is discussed in note 1 (r). The application of this policy requires
management to make certain assumptions as to future events and circumstances. Any such estimates and
assumptions may change as new information becomes available. If, after having capitalised exploration and
evaluation expenditure, management concludes that the capitalised expenditure is unlikely to be recovered by
future sale or exploration, then the relevant capitalised amount will be written off through the statement of profit
or loss.
(iii) Compound financial instrument
The Group’s policy for compound financial instrument is discussed in Note 1(k). The fair value of the liability
component is determined based on the contractual stream of future cash flows which is discounted at the rate of
interest that would apply to an identical financial instrument without the conversion option. The Group uses its
judgement to determine the discount rate based on the market interest rates existing at the end of each reporting
period.
36
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1. Summary of Significant Accounting Policies (continued)
(t)
Key estimates and judgments (continued)
(iv)
Estimation of tax losses carried forward
Potential future income tax benefits attributable to gross tax losses of $67,603,578 (2022: $43,532,798) carried
forward have not been brought to account at 30 June 2023 because the directors do not believe it is appropriate
to regard realisation of the future tax benefit as probable.
These benefits will only be obtained if:
a. the Group derives future assessable income of a nature and of an amount sufficient to enable the benefit from
the losses and deductions to be released;
b. the Group continues to comply with the conditions for deductibility imposed by the law; and
c. no changes in tax legislation adversely affect the Group in realising the benefit from the deductions for the
losses.
Tax losses carried forward have no expiry date.
(v) Share based payment transactions
The consolidated entity measures the cost of equity-settled transactions with employees by reference to the fair
value of the equity instruments at the date at which they are granted. The fair value is determined based on the
underlying share price or by using the Black & Scholes model taking into account the terms and conditions upon
which the instruments were granted. The accounting estimates and assumptions relating to equity-settled share-
based payments would have no impact on the carrying amounts of assets and liabilities within the next annual
reporting period but may impact profit or loss and equity.
(u)
Joint control
The Group’s accounting policy for Joint Arrangements is set out in Note 1(d). AASB 11 Joint Arrangements requires an
investor to have contractually agreed the sharing of control when making decisions about the relevant activities (in other
words requiring the unanimous consent of the parties sharing control). However, what these activities are is a matter of
judgement. As at the reporting date 30 June 2023, the Group does not have any Joint Arrangements as defined in this
policy. While there are agreements in place with other parties (for the Group’s 80% interest in certain tenements which
form part of its Tarraji-Yampi project), there is no joint control over decisions about relevant activities required to
progress these projects. For the Tarraji-Yampi project, it is the view of the Group that it controls this project through
its 80% interest.
(v)
Financial report
The financial report was authorised for issue on 19 September 2023 by the Board of Directors.
(w) Adoption of new and revised accounting standards and interpretations
In the year ended 30 June 2023, the directors have reviewed all of the new and revised Standards and Interpretations
issued by the AASB that are relevant to the Group and effective for the current reporting periods beginning on or after 1
July 2023. As a result of this review, the directors have determined that there is no material impact of the new and revised
Standards and Interpretations on the Group and, therefore, no material change is necessary to the Group’s accounting
policies.
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
37
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1.
Summary of Significant Accounting Policies (continued)
(x) New accounting standards and interpretations that are not yet mandatory
The Company has not early adopted any other standard, interpretation or amendment that has been issued but is not yet
effective.
Amendments to AASB 101 clarify the criteria used to determine whether liabilities are classified as current or non-current.
These amendments clarify that current or non-current classification is based on whether an entity has a right at the end
of the reporting period to defer settlement of the liability for at least twelve months after the reporting period. The
amendments also clarify that ‘settlement’ includes the transfer of cash, goods, services, or equity instruments unless the
obligation to transfer equity instruments arises from a conversion feature classified as an equity instrument separately
from the liability component of a compound financial instrument. The amendments are effective for annual reporting
periods beginning on or after 1 January 2023.
The Group is currently assessing the impact of new accounting standards and amendments. The Group does not believe
that the amendments to AASB 101 will have a significant impact on the classification of its liabilities.
38
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
2. Other Income
Receipts from JV
Fuel rebate
Interest received
Other
3. Expenses
Administration expenses
Compliance and regulatory
Computer expenses
Consulting fees (a)
Insurance
Seminar/conference
Share registry
Travel and accommodation
Marketing / investor relations
Other
(a) Consulting fees
Accounting and secretarial services
Tenement related
Director and employee benefit expenses
Non-executive directors’ fees
Share-based payment(b) (Note 15 and 24)
- Directors
- Employees
Superannuation
Other employee benefit
Consolidated
30 June 2023
$
150,000
95,966
59,197
33,614
338,777
30 June 2022
$
(Restated)*
86,760
-
5,167
-
91,927
Consolidated
30 June 2023
$
30 June 2022
$
508,917
69,815
362,996
107,738
105,231
69,370
143,078
252,952
405,478
2,025,575
309,531
53,465
362,996
103,577
28,914
193,494
29,635
45,719
36,860
41,633
142,165
171,694
793,691
184,615
8,879
193,494
155,462
110,770
625,565
1,814,909
203,595
36,351
2,835,882
83,721
305,624
11,063
51,279
562,457
Salaries and wages recharged to exploration assets during the year
1,831,710
1,074,947
(b) Share-based payments
Options
Performance rights
617,418
1,823,057
2,440,475
389,345
-
389,345
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
39
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
3. Expenses (continued)
Finance expense
Interest on lease liability
Interest on convertible note
Interest on insurance premium funding
Depreciation expense
Depreciation of property, plant, and equipment
Amortisation of right-of-use assets
4. Income Tax Expense
Income tax expense/(benefit)
Current tax
Deferred tax
Income tax expense/(benefit)
Reconciliation of income tax to accounting loss:
Prima facie loss from ordinary activities
Tax at the Australian tax rate of
Prima facie tax expenses/(income) on ordinary activities
Add:
Tax effect of amounts which are not deductible (taxable) in calculating
taxable income:
Non assessable income
Other non-allowable items
Share-based payments
Adjustments recognised in the current year in relation to the current
tax of previous years
Tax effect of temporary differences not brought to account as they
do not meet the recognition criteria
Consolidated
30 June 2023
$
30 June 2022
$
18,213
-
-
18,213
15,314
26,063
935
42,312
Consolidated
30 June 2023
$
30 June 2022
$
94,948
37,863
132,811
33,717
28,397
62,114
Consolidated
30 June 2023
$
30 June 2022
$
(Restated)*
-
-
-
-
-
-
-
-
(5,521,985)
(1,740,126)
25%
25%
(1,380,496)
(435,032)
-
4,231
610,119
27,001
739,145
-
-
6,532
97,336
-
331,164
-
40
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
4. Income Tax Expense (continued)
Deferred Income Tax
Deferred income tax at 30 June relates to the following:
Deferred tax liabilities
Prepayments
Other financial assets
Property, plant and equipment
Exploration assets
Right-of-use-assets
Deferred tax assets
Accruals
Leases
Provision for employee entitlements
Section 40-880 expenditure
Revenue tax losses
Capital losses
Deferred tax assets not brought to account as
realisation is not probable
Deferred tax assets
Consolidated
30 June 2023
$
30 June 2022
$
(Restated)*
(111,700)
-
(112,632)
(9,287,997)
(40,230)
4,313
44,394
38,388
555,696
16,900,895
383,363
(37,612)
(12,500)
(122,570)
(4,406,889)
-
88
51,830
23,756
216,780
10,910,697
399,331
(8,374,490)
(7,022,911)
-
-
A deferred tax liability of $Nil (2022: $Nil) was recognised in equity during the financial year.
A deferred tax asset (DTA) has not been recognised in respect of temporary differences as they do not meet the recognition
criteria per AASB 112 Income Taxes. A DTA has not been recognised in respect of tax losses as realisation of the benefit is not
regarded as probable.
The Group is part of a tax consolidated group in accordance with the tax consolidation legislation. The Group has unrecognised
assessed gross tax losses of $ 67,603,578 (2022: $43,532,798) that are available indefinitely for offset against future taxable profits
of the Group subject to satisfaction of the relevant tax losses recoupment tests.
The tax rates applicable to each potential tax benefit are as follows:
• Timing differences – 25%;
• Tax losses – 25%.
The Group has JMEI credits available from the Australian Taxation Office of $1,357,500 in respect of the year ending 30 June
2024 (2023: Nil). The JMEI entitles Australian resident investors in eligible minerals exploration companies to obtain either a
refundable tax offset or (where the Eligible Investor is a corporate tax entity) franking credits.
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
41
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
5. Operating Segments
The directors have considered the requirements of AASB 8 – Operating Segments and the internal reports that are reviewed by
the chief operating decision maker (the Board) in allocating resources and have identified segments for the broader project areas
under which exploration and evaluation activities have been conducted. (Refer to Note 10 for further information on Exploration
and evaluation assets.) Other non-current assets are utilised across all segments and are thus not allocated to individual segments,
and non-current liabilities relate to the lease for the business premises which has not been allocated to any operating segments.
Mangaroon
$
Central
Yilgarn
$
Bresnahan
Kimberley
Total
$
$
$
2,317,582
7,368,409
-
7,510,529
17,196,520
Balance at 1 July 2022
(restated)
Expenditure incurred
17,100,194
942,598
Acquisitions
3,000,476
1,920,568
Government grants received
(144,000)
Impairment
(141,427)
-
-
242,970
520,940
-
1,844,933
20,130,695
(4,749)
5,437,235
(58,207)
(142,797)
-
(144,000)
(342,431)
Balance at 30 June 2023
22,132,825
10,231,575
705,703
9,207,916
42,278,019
Reconciliation
Total Non-current Assets
Total Non-current Liabilities
Net loss
Segment
Allocations
Unallocated
Total
$
$
$
42,278,019
611,445
42,889,464
-
(143,384)
(143,384)
(342,431)
(5,179,554)
(5,521,985)
Mangaroon
$
Central
Yilgarn
$
Bresnahan
Kimberley
Total
$
$
$
Balance at 1 July 2021
546,752
5,584,555
Adjustment for earn-in costs
reimbursed
Balance at 1 July 2021
(restated)
Expenditure incurred
Acquisitions
Adjustment for earn-in costs
reimbursed
Impairment
(158,116)
-
388,636
5,584,555
2,176,808
1,783,854
58,500
(306,362)
-
-
-
-
Balance at 30 June 2022
2,317,582
7,368,409
Reconciliation
Total Non-current Assets
Total Non-current Liabilities
Net loss
-
-
-
-
-
-
-
-
4,240,121
10,371,428
-
(158,116)
4,240,121
10,213,312
3,394,123
7,354,785
-
-
(123,715)
58,500
(306,362)
(123,715)
7,510,529
17,196,520
Segment
Allocations
Unallocated
Total
$
$
$
17,196,520
490,280
17,686,800
-
(177,577)
(177,577)
(123,715)
(1,616,411)
(1,740,126)
42
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
6. Cash and cash equivalents
Cash at bank and in hand
Total cash and cash equivalents
7. Trade and other receivables
Current:
GST receivable
Other receivables
Total current trade and other receivables
Consolidated
30 June 2023
$
30 June 2022
$
5,664,368
5,664,368
2,501,971
2,501,971
Consolidated
30 June 2023
$
30 June 2022
$
348,265
63
348,328
84,210
1,962
86,172
The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable in the financial statements.
As at 30 June 2023 there were no material trade and other receivables that were considered to be past due or impaired (2022:
Nil) and therefore there no expected loss credit provision required.
8. Other current assets
Prepayments
Total other assets
Consolidated
30 June 2023
$
446,801
446,801
30 June 2022
$
150,446
150,446
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
43
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
9. Fixed assets
Property, plant and equipment:
Leasehold improvements – at cost
Less: Accumulated depreciation
Equipment – at cost
Less: Accumulated depreciation
Motor vehicles – at cost
Less: Accumulated depreciation
Right-of-use assets:
Right of use assets – at cost (see Note 13)
Less: Accumulated amortisation
Total fixed assets
Consolidated
30 June 2023
$
30 June 2022
$
155,505
(31,963)
123,542
122,101
(24,128)
97,973
301,585
(72,574)
229,011
450,526
227,179
(66,260)
160,919
611,445
140,375
(8,474)
131,901
-
-
-
184,840
(25,243)
159,597
291,498
227,179
(28,397)
198,782
490,280
Reconciliations
Reconciliations of the written down values at the beginning and end of the current financial year are set out below:
Leasehold
Motor
Right of
Improvements
Equipment
vehicles
use assets
Total
$
131,901
15,130
(23,489)
-
123,542
$
-
122,101
(24,128)
-
97,973
$
159,597
116,744
(47,331)
$
198,782
-
-
(37,863)
$
490,280
253,976
(94,948)
(37,863)
229,010
160,919
611,445
Balance at 1 July 2022
Additions
Depreciation expense
Amortisation of right of use asset
Balance at 30 June 2023
44
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
10. Exploration and evaluation assets
Exploration and evaluation expenditure
Capitalised exploration and evaluation
expenditure at cost, as reported
Adjustment for reimbursement of earn-in costs
Capitalised exploration and evaluation
expenditure at cost, as restated
Balance at the beginning of the period
Expenditure incurred
Acquisitions (i), (ii), (iii), (iv), (v) (vii)
Acquired through Odette Seven Pty Ltd (vi)
Reimbursements of earn-in costs (note 1 (e))
Impairment/written off (viii), (ix), (x)
Government grant received
30 June 2023
$
30 June 2022
$
(Restated)*
30 June 2021
$
(Restated)*
42,278,019
17,660,998
10,371,428
-
(464,478)
(158,116)
42,278,019
17,196,520
10,213,312
17,196,520
20,130,695
4,922,495
514,740
-
(342,431)
(144,000)
10,213,312
7,354,785
58,500
-
(306,362)
(123,715)
-
5,104,501
5,265,864
-
-
(158,116)
(315,169)
-
Balance at the end of the period, as restated
42,278,019
17,196,520
10,213,312
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on successful development and
commercial exploitation, or alternatively, sale of the respective areas of interest. Refer to Note 5. for details on operating
segments.
Acquisitions
(i)
(ii)
2023: The Group exercised its option to acquire 100% ownership of E29/965 and E30/485 within the Central Yilgarn and paid
$1,000,000 to an unrelated party to settle the transaction.
2023: The Group acquired 100% interest in tenements E16/495, E30/493, E30/494, E77/2403, E77/2416, E77/2432 and
E77/2634 from Arrow Minerals Limited (ASX:AMD) for $600,000 in cash and 2,350,000 fully paid ordinary shares in the
Company issued at a deemed issue price of $0.046 per share on 1 August 2022.
(iii) 2023: The Group acquired 100% interest in tenements E52/4082, E52/4083, E08/3495 and E08/3496 from an unrelated vendor
for $150,000 in cash and 2,778,000 fully paid ordinary shares in the Company issued at a deemed issue price of $0.100 per
share on 31 October 2022.
(iv) 2023: The Group acquired 100% interest in M09/174 E09/2290, M09/146, M09/147 and M09/175 from unrelated vendors for
$375,000 in cash and 21,000,000 fully paid ordinary shares in the Company issued at a deemed issue price of $0.099 on 10
November 2022.
(v) The balance of the acquisition cost relates to stamp duty, option fees and tenement rent application fee refunds on the above-
mentioned transactions of $332,134.
(vi) 2023: The Company acquired the rights to tenements E08/3356, E52/3936 and E52/3937 through acquiring 100% of the
ordinary shares of Odette Seven Pty Ltd (“Odette”). The transaction did not meet the definition of a business combination
under AASB 3 Business Combinations and was therefore accounted for as an asset acquisition. The total consideration was
3,000,000 fully paid and issued shares of the Company, at a deemed issue price of $0.115 per share on 31 October 2022, for
a total amount of $345,000. The Company took on trade payables of $19,740 and settled the amount due to the previous
shareholder of Odette amounting to $150,000 subsequent to settlement date.
(vii) 2022: The Group purchased the license for tenement E09/2359 from an unrelated party by way of cash consideration of
$30,000 and 750,000 shares of the Company at an issue price of $0.038 per share with a deemed value of $28,500.
Impairment
(viii) 2023: The impairment of the exploration assets relates to the surrender of tenements during the year.
(ix) 2022: The impairment of the exploration assets relates to the surrender of tenements during the year.
(x) 2021: The impairment of the exploration assets relates to the impairment within the Rocky Dam project as disclosed in (vii)
above.
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
45
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
11. Financial assets
Investment in term deposits:
Funds held in term deposits held with financial institutions
Investment in listed entity:
Fair value at beginning of the year
Additions at cost
Disposal
Change in fair value
Consolidated
30 June 2023
$
30 June 2022
$
6,011,725
150,000
-
(183,255)
33,255
-
-
100,000
-
50,000
Fair value at end of the year
6,011,725
150,000
In June 2021, the Group entered into an agreement to divest tenements in its Rocky Dam projects to Lycaon Resources Ltd, a then
pre-IPO company that listed on the ASX on 17 November 2021. The Group received 500,000 Lycaon shares as consideration plus
a 1% net smelter royalty over all minerals extracted from Rocky Dam. The shares were recognised at a cost of $0.20 per share
totalling $100,000 based on the Sale and Purchase agreement. As at 30 June 2022, the investment was revalued to reflect the share
price of Lycaon as of that date which resulted in a gain in fair value of $50,000. During the year ended 30 June 2023, the Group
sold the Lycaon shares for a net consideration of $183,255.
12. Trade and other payables
Trade payables
Accrued expenses
Accrued expenses - JV partner commitments
PAYG and wages payable
Superannuation payable
Total trade and other payables
Consolidated
30 June 2023
$
30 June 2022
$
3,483,847
423,143
225,000
56,154
9,153
4,197,297
802,257
381,896
-
37,810
350
1,222,313
All amounts are short term and the carrying values are considered to be a reasonable approximation of fair value.
13. Lease liability
Office space lease:
Current portion
Non-current portion
Total lease liability
Consolidated
30 June 2023
$
30 June 2022
$
34,192
143,384
177,576
29,742
177,577
207,319
The lease liability relates to the Company’s office space in Unit 1, 4 Burgay Court, Osborne Park, WA 6017 for an initial period of
3 years. The Company has an option to extend the lease for another 3 years.
46
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
14. Issued Capital
Ordinary shares fully paid
Date
12/07/2021
23/07/2021
4/08/2021
13/09/2021
13/09/2021
21/09/2021
30/11/2021
30/11/2021
30/11/2021
2/12/2021
31/01/2022
Date
01/08/2022
04/08/2022
15/09/2022
31/10/2022
31/10/2022
31/10/2022
10/11/2022
16/12/2022
13/01/2023
08/02/2023
08/02/2023
04/04/2023
04/04/2023
24/05/2023
At 1 July 2021
Options exercised
Conversion of Notes
Options exercised
Options exercised
Options exercised
Placement
Issues of shares regarding acquisition
Director Participation in Placement
Options exercised
Options exercised
Options exercised
Exercise of options and conversion of notes
Less: Transaction costs
At 30 June 2022
At 1 July 2022
Issue of shares – tenement acquisition
Placement
Options exercised
Options exercised
Issue of shares – tenement acquisition
Acquisition of a subsidiary
Issue of shares – tenement acquisitions
Director participation - placement
Issue of shares – Tranche 1 Performance Rights exercised
Placement
Options exercised
Director participation – placement
Options exercised
Options exercised
Exercise of options – transfer from reserve
Less: Transaction costs
At 30 June 2023
30 June 2023
30 June 2022
$
$
97,104,008
60,954,153
No.
$
2,468,291,761
52,030,339
10,000,000
109,090,909
10,000,000
3,000,000
5,479,452
80,000
600,000
100,000
15,000
53,699
226,000,000
7,910,000
750,000
2,571,429
750,000
1,250,000
1,500,000
-
-
28,500
90,000
15,000
12,500
15,000
522,958
(518,843)
2,838,683,551
60,954,153
No.
$
2,838,683,551
60,954,153
2,350,000
200,000,000
1,500,000
4,400,000
2,778,000
3,000,000
21,000,000
5,833,334
10,183,335
200,000,000
4,000,000
14,000,000
5,000,000
15,000,000
-
-
108,100
12,000,000
60,000
78,500
277,800
345,000
2,079,000
350,000
923,334
20,000,000
90,000
1,400,000
30,000
90,000
354,328
(2,036,207)
3,327,728,220
97,104,008
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
47
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
14. Issued Capital (continued)
Capital Management
Management controls the capital of the Group to maintain and generate long-term shareholder value and ensure that the Group
can fund its operations and continue as a going concern. The Group is not subject to any externally imposed capital requirements.
Management effectively manages the Group capital by assessing the Group financial risks and adjusting its capital structure in
response to changes in these risks and in the market. These responses include the management of debt levels, distributions to
shareholders and share issues.
(a) Options
The details of the unlisted options as at 30 June 2023 are as follows:
Number
1,500,000
30,000,000
12,100,000
2,000,000
2,000,000
8,500,000
853,098
1,223,151
2,000,000
60,176,249
Exercise Price $
0.0050
0.0050
0.0400
0.0600
0.0600
0.0650
0.1575
0.1200
0.0750
Refer Note 15(a) for further information.
(b)
Performance rights
Expiry Date
30 June 2024
9 April 2024
2 July 2024
11 August 2024
26 November 2024
14 July 2025
16 December 25
02 March 26
14 June 26
The details of the unlisted performance rights as at 30 June 2023 are as follows:
Number
13,800,001
13,799,996
27,599,997
Exercise Price $
0.0000
0.0000
Expiry Date
30 June 2024
30 June 2025
Refer Note 15(b) for further information.
48
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
15. Share Based Payments Reserves
Options (a)
Performance rights (b)
(a) Options Reserve
Grant Date
At 1 July 2021
02/07/2021
11/08/2021
24/11/2021
29/11/2021
Options granted – employees1
Options granted – employee2
Options granted – Managing Director3
Options granted – employee4
Options granted in prior years but partly vesting during the
current year
Options exercised during the year
Reclassification of exercised options to issued capital
At 30 June 2022
Grant Date
At 1 July 2022
14/07/2022
16/12/2022
02/03/2023
31/05/2023
Options granted – employees5
Options granted – Director6
Options granted – Director7
Options granted – employee8
Options granted in prior years but partly vesting during the
current year
Options exercised during the year
At 30 June 2023
Consolidated
30 June 2023
30 June 2022
$
1,033,508
899,724
1,933,232
No.
88,979,452
11,500,000
2,000,000
5,000,000
2,000,000
-
(31,979,452)
-
77,500,000
No.
77,500,000
8,500,000
853,098
1,223,151
2,000,000
$
770,418
-
770,418
$
848,312
168,832
45,525
83,721
30,831
60,436
-
(467,239)
770,418
$
770,418
291,041
55,406
60,778
4,518
-
205,675
(29,900,000)
60,176,249
(354,328)
1,033,508
1 On 2 July 2021, the Company granted 11,500,000 options via the Equity Incentive Plan to the current employees and the
company secretary. The options have a $0.04 exercise price and an expiry date of 2 July 2024. 50% of the options vest 12
months from grant date and the other 50% vest 24 months from grant date.
2 On 31 August 2021, the Company granted 2,000,000 options via the Equity Incentive Plan to an employee. The options have a
$0.06 exercise price and an expiry date of 11 August 2024. 50% of the options vest 12 months from grant date and the other
50% vest 24 months from grant date.
3 On 24 November 2021, the Company granted a total of 5,000,000 options via the Equity Incentive Plan to an employee and
the Managing Director. The options have an exercise price of $0.04 and expiry of 2 July 2024. 50% of the options vest 12
months from grant date and the other 50% vest 24 months from grant date.
4 On 29 November 2021, the Company granted a total of 2,000,000 options via the Equity Incentive Plan to an employee and
the options have an exercise price of $0.06 and expiry of 26 November 2024. 50% of the options vest 12 months from grant
date and the other 50% vest 24 months from grant date.
5 On 14 July 2022, the Company granted 8,500,000 options via the Equity Incentive Plan to employees who are not related parties
of the Company. The options have an exercise price of $0.065 and expire on 14 July 2025. These options will vest on 12
months of continued employment.
6 On 30 November 2022, shareholders approved the grant of 853,098 options to a director as part of the director’s remuneration
package. The options have an exercise price of $0.1575 and expire on 16 December 2025. There are no vesting conditions.
7 On 2 March 2023, the Company granted 1,223,151 options to a director as part of the director’s remuneration package. The
options have an exercise price of $0.1200 and expire on 2 March 2026. There are no vesting conditions.
8 On 31 May 2023, the Company granted 2,000,000 options via the Equity Incentive Plan to an employee. The options have an
exercise price of $0.0750 and expire on 14 June 2026. They vest after 12 months of continuous service.
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
49
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
15. Share Based Payments Reserves (continued)
(b) Performance Rights Reserve
Grant Date
At 1 July 2022
30/11/2022
08/12/2022
13/01/2023
30/01/2023
02/03/2023
31/05/2023
Performance rights granted – Directors1
Performance rights granted – Employees1
Exercise of performance rights2
Performance rights granted – Employees3
Performance rights granted – Director4
Performance rights granted – Employees5
At 30 June 2023
No. of
performance
rights
-
6,800,000
23,750,000
(10,183,335)
3,633,332
600,000
3,000,000
27,599,997
$
-
411,076
1,251,445
(923,334)
132,200
13,944
14,393
899,724
1 On 30 November 2022, the Company granted 6,800,000 unlisted performance rights to directors and on 8 December 2022,
the Company granted 23,750,000 unlisted performance rights to employees who are not related parties of the Company.
These performance rights were granted via the Equity Incentive Plan and are subject to the following vesting conditions:
• Tranche 1: A Resource of at least the Inferred category of 10Mt @ > 1% TREO by 31 December 2022.
• Tranche 2: A Resource of at least the Inferred category of 20Mt @ > 1% TREO by 31 December 2023.
• Tranche 3: A Resource of at least the Inferred category of 30Mt @ > 1% TREO by 31 December 2024.
2 On 31 December 2022, the vesting condition for Tranche 1 was achieved and 2,266,667 performance rights for directors and
7,916,668 performance rights for employees vested. On 13 January 2023, 2,266,667 fully paid ordinary shares and 7,916,668
fully paid ordinary shares were issued to the Directors and employees, respectively.
3 On 30 January 2023, the Company granted 3,633,332 unlisted performance rights via the Equity Incentive Plan to additional
eligible employees who are not related parties of the Company. These performance rights are subject to the vesting conditions
of Tranche 2 and Tranche 3 above.
4 On 2 March 2023, the Company granted 600,000 unlisted performance rights via the Equity Incentive Plan to a newly appointed
director. These performance rights are subject to the vesting conditions of Tranche 2 and Tranche 3 above.
5 On 31 May 2023, the Company granted 3,000,000 unlisted performance rights via the Equity Incentive Plan to a newly appointed
Chief Financial Officer. These performance rights are subject to the vesting conditions of Tranche 2 and Tranche 3 above.
16. Accumulated losses
Balance at the beginning of the period
Prior period adjustments
Net loss in current period
Balance at the end of the period
Consolidated
30 June 2023
$
(42,673,837)
-
(5,521,985)
30 June 2022
$
(Restated)*
(40,775,595)
(158,116)
(1,740,126)
(48,195,822)
(42,673,837)
50
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
17. Loss per share
(a) Basic loss per share
Consolidated
30 June 2023
$
30 June 2022
$
(Restated)
Loss attributable to ordinary equity holders
(5,521,985)
(1,740,126)
Weighted average number of shares outstanding during the year
3,136,162,345
2,774,262,376
Basic loss per share (cents)
(0.18)
(0.06)
(b) Dilutive earnings per share
In accordance with AASB 133 Earnings per Share, potential ordinary shares in the form of options and convertible notes are
antidilutive when their conversion to ordinary shares decrease loss per share from continuing operations. The calculation of
diluted earnings/(losses) per share does not assume conversion, exercise, or other issue of potential ordinary shares that
would have an antidilutive effect on earnings/(losses) per share.
18. Cash Flow Information
Reconciliation of result of loss for the year to cashflows used in operating activities:
Reconciliation of net loss to net cash used in operating activities:
Loss for the year
(5,521,985)
(1,740,126)
Consolidated
30 June 2023
$
30 June 2022
$
(Restated)
Cash flows excluded from loss attributable to operating activities
Non-cash flows in loss:
- share based payments
- net gain on revaluation of investment in listed entity
- impairment loss on exploration assets
- gain on sale of financial assets
- interest on lease liability
- depreciation expense
- amortisation of ROU asset
- government grant received (refer Note 10.)
Changes in assets and liabilities, net of the effects of purchase and
disposal of subsidiaries:
- (increase)/decrease in trade and other receivables
- (increase)/decrease in prepayments
- increase in trade and other payables
Cash outflow from operations
Non-cash investing and financing activities
Conversion of notes to shares
Non-cash assets acquisition
2,440,474
-
342,431
(33,255)
18,213
94,948
37,863
144,000
(23,401)
(32,829)
791,751
389,345
(50,000)
123,715
-
15,314
33,717
28,397
-
109,047
(15,091)
38,430
(1,741,790)
(1,067,252)
-
2,464,900
600,000
28,500
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
51
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
19. Dividends
There were no dividends paid during the year (2022: nil).
20. Exploration Commitments
Exploration expenditure commitments payable:
Not later than 12 months
Between 12 months and five years
Later than five years
Consolidated
30 June 2023
30 June 2022
$
$
4,405,928
994,000
-
1,929,000
1,157,760
-
Total exploration tenement minimum expenditure
5,399,928
3,086,760
The Group can seek deferral of minimum expenditures or relinquish tenements as required.
21. Financial Risk Management
The Group is exposed to a variety of financial risks through its use of financial instruments. This note discloses the Group’s
objectives, policies, and processes for managing and measuring these risks. The Group’s overall risk management plan seeks to
minimise potential adverse effects due to the unpredictability of financial markets. The Group does not speculate in financial assets.
Specific risks:
• Market risk - currency risk, interest rate risk and equity price risk
• Credit risk
• Liquidity risk
The principal categories of financial instrument used by the Group are:
• Cash at bank
• Financial assets (term deposits)
• Trade and other receivables
• Trade and other payables
• Other financial liabilities – convertible notes
Objectives, policies and processes
Specific information regarding the mitigation of each financial risk to which the Group is exposed is provided below.
Market risk
(i)
Foreign currency sensitivity
All Group transactions are carried out in Australian Dollars, the Group is therefore not exposed to foreign exchange risk.
(ii) Cash flow interest rate sensitivity
The Group is not exposed to interest rate sensitivity on its financial assets and liabilities during the year ended 30 June 2023.
(iii) Price sensitivity
The Group is not exposed to price sensitivity.
Credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in a financial loss to the Group.
Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions,
as well as credit exposure to wholesale and retail customers, including outstanding receivables and committed transactions.
Management considers that all the financial assets that are not impaired for each of the reporting dates under review are of good
credit quality, including those that are past due. The credit risk for liquid funds and other short-term financial assets is considered
negligible since the counterparties are reputable banks with high quality external credit ratings. The long term and short-term
ratings are AA- and A-1+ respectively (Source: S&P Global Ratings).
52
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
21. Financial Risk Management (continued)
Liquidity risk
Liquidity risk arises from the Group’s management of working capital. It is the risk that the Group will encounter difficulty in
meeting its financial obligations as they fall due. The Group’s policy is to ensure that it will always have sufficient cash to allow it to
meet its liabilities when they become due. The Group maintains cash to meet its liquidity requirements for up to 30-day periods.
The Group manages its liquidity needs by carefully monitoring long-term financial liabilities as well as cash-outflows due in day-to-day
business. 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 period are identified monthly. At the reporting
date, these reports indicate that the Group expected to have sufficient liquid resources to meet its obligations under all reasonably
expected circumstances.
The Group’s assets and liabilities have contractual maturities which are summarised below:
Consolidated
Within 1 year
More than 1 year
30 June 2023
$
30 June 2022
$
30 June 2023
$
30 June 2022
$
5,664,368
6,011,725
348,328
-
2,501,971
-
86,172
150,000
12,024,421
2,738,143
4,197,297
34,192
4,231,489
1,222,313
29,742
1,252,055
-
-
-
-
-
-
-
-
-
-
-
-
143,384
143,384
177,577
177,577
Financial assets
Cash and cash equivalents
Financial assets (term deposits)
Trade and other receivables
Investment in listed entity
Total financial assets
Financial Liabilities
Trade and other payables
Lease liability
Total financial liabilities
Fair value estimation
The fair values of financial assets and financial liabilities are presented in the following table and can be compared to their carrying
values as presented in the consolidated statement of financial position. Fair values are those amounts at which an asset could be
exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. Fair values derived may be
based on information that is estimated or subject to judgement, where changes in assumptions may have a material impact on the
amounts estimated. Areas of judgement and the assumptions have been detailed below. Where possible, valuation information used
to calculate fair value is extracted from the market, with more reliable information available from markets that are actively traded.
Consolidated
30 June 2023
30 June 2022
Net Carrying
Value
$
Net Fair
Value
$
Net Carrying
Value
$
Net Fair
Value
$
5,664,368
6,011,725
348,328
-
5,664,368
6,011,725
348,328
-
2,501,971
2,501,971
-
86,172
150,000
-
86,172
150,000
12,024,421
12,024,421
2,738,143
2,738,143
4,197,297
177,576
4,374,873
4,197,297
177,576
4,374,873
1,222,313
207,319
1,429,632
1,222,313
207,319
1,429,632
Financial assets
Cash and cash equivalents
Financial assets (term deposits)
Trade and other receivables
Investment in listed entity
Total financial assets
Financial Liabilities
Trade and other payables
Lease liability
Total financial liabilities
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
53
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
22. Related Parties
The Group’s main related parties are as follows:
(i)
Key management personnel:
Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly
or indirectly, including any director (whether executive or otherwise) of that entity are considered key management
personnel.
For details of remuneration disclosures relating to key management personnel, refer to the remuneration report in the
Directors' Report.
The aggregate amounts recognised during the year (excluding re-imbursement of expenses incurred on behalf of the
Company) relating to directors and their director related entities were as follows:
Director
P Chapman
Transaction
Payments to a director related entity for office rental
(ie Stone Poneys Nominees Pty Ltd atf Chapman
Superannuation Fund). The lease has been
terminated effective 31 December 2021.
Consolidated
30 June 2023
30 June 2022
$
$
-
9,350
No amounts were outstanding and owing to related parties as at 30 June 2023 (2022: nil).
(ii)
Subsidiaries:
The consolidated financial statements include the financial statements of Dreadnought Resources Ltd and the following
subsidiaries:
Name of subsidiary
Dreadnought Exploration Pty Ltd
Dreadnought Yilgarn Pty Ltd
Dreadnought (Bresnahan) Pty Ltd
(Formerly Odette Seven Pty Ltd)
% ownership
interest
2023
% ownership
interest
2022
100
100
100
100
100
-
On 18 October 2022, the Company, acquired 100% of the ordinary shares of Odette Seven Pty Ltd (“Odette”) for the
total consideration of 3,000,000 fully paid and issued shares of the Company. Odette owns the rights to tenements
E08/3356, E52/3936 and E52/3937. The shares were issued on 31 October 2022 at an issue price of $0.115 per share for a
total amount of $345,000. Subsequent to settlement date, the Company also settled the amount due to the previous
shareholder of Odette amounting to $150,000.
The transaction did not meet the definition of a business combination under AASB 3 Business Combinations and was
therefore accounted for as an asset acquisition.
On 19 May 2023, Odette Seven Pty Ltd changed its name to Dreadnought (Bresnahan) Pty Ltd.
54
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
23. Key Management Personnel Disclosures
The totals of remuneration paid to the key management personnel of Dreadnought Resources Ltd during the year are as follows:
Short term employee benefits
Post employment benefits
Share-based payments
Total Remuneration
Consolidated
30 June 2023
30 June 2022
$
461,076
42,625
644,476
1,148,177
$
385,750
36,638
83,721
506,109
The Remuneration Report contained in the Directors' Report contains details of the remuneration paid or payable to each member
of the Group’s Key Management Personnel for the years ended 30 June 2023 and 30 June 2022.
Other key management personnel transactions
For details of other transactions with key management personnel, refer to Note 22 Related Parties.
24. Share-based Payments
(a) Options
At 1 July 2022
Options exercised
Options granted
Options vesting
At 30 June 2023
Number
77,500,000
(29,900,000)
12,576,249
-
$
770,418
(354,328)
411,743
205,675
Weighted
Average
Exercise
Price
$0.03
-
-
-
60,176,249
1,033,508
$0.03
Share-based payments granted during the year:
8,500,000 Employees and Company Secretary Options granted on 14 July 2022.
On 14 July 2022, the Company granted 8,500,000 options via the Equity Incentive Plan to employees who are not related
parties of the Company. The options have an exercise price of $0.065 and expire on 14 July 2025. These options will vest
on 12 months of continued employment.
The options were deemed to have a fair value at grant date of $0.0355 per option. This value was calculated using the Black-
Scholes option pricing model applying the following inputs:
Share price
Exercise price
Expected volatility
Risk free interest rate
Useful life
$0.049
$0.065
132.48%
3.02%
3 years
853,098 Director Options granted on 30 November 2022.
On 30 November 2022, shareholders approved the grant of 853,098 options to a director as part of the director’s
remuneration package. The options have an exercise price of $0.1575 and expire on 16 December 2025. There are no vesting
conditions.
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
55
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
24. Share-based Payments (continued)
(a) Options (continued)
The options were deemed to have a fair value of $0.0649 per option. This value was calculated using the Black-Scholes option
pricing model applying the following inputs:
Share price
Exercise price
Expected volatility
Risk free interest rate
Useful life
$0.100
$0.1575
119.91%
3.17%
3 years
1,223,151 Director Options granted on 02 March 2023.
On 2 March 2023, the Company granted 1,223,151 options to a director. The exercise price of the options is $0.1200 and
the options will expire on 2 March 2026. There are no vesting conditions.
The options were deemed to have a fair value of $0.0497 per option. This value was calculated using the Black-Scholes option
pricing model applying the following inputs:
Share price
Exercise price
Expected volatility
Risk free interest rate
Useful life
$0.081
$0.075
98%
3.57%
3 years
2,000,000 KMP Options granted on 31 May 2023.
On 31 May 2023, the Company granted 2,000,000 options to the Chief Financial Officer. The exercise price of the options is
$0.0750 and the options will expire on 2 March 2026. These options will vest on 12 months of continued employment.
The options were deemed to have a fair value of $0.0271 per option. This value was calculated using the Black-Scholes option
pricing model applying the following inputs:
Share price
Exercise price
Expected volatility
Risk free interest rate
Useful life
$0.050
$0.075
98%
3.37%
3 years
A share-based payment expense has been included within the Consolidated Statement of Profit or Loss and Other
Comprehensive Income, with the expense recognised over the useful life/term of the options. The total share-based payment
expense for the year in respect to options issued was $617,418, classified under Director & Employee Benefits (Note 3) in
the profit and loss.
Share-based payment arrangements granted in prior years and exercised during the financial year ended 30
June 2023:
1) On 16 August 2019, the Group granted 10,500,000 unlisted incentive options exercisable at $0.005 on or before 30 June
2024, vesting immediately to the Managing Director. 2,000,000 options were exercised during the year (2022: 3,000,000
options were exercised). There are 1,500,000 options remaining as at 30 June 2023.
2) On 23 December 2019, the Group granted 30,000,000 unlisted incentive options exercisable at $0.005 on or before 9
April 2024, vesting annually over 4 financial years to the Managing Director. There were no options exercised during the
year (2022: Nil).
3) On 25 May 2020, the Group engaged the services of brokers to manage the placement and the consideration for doing
so included 40,000,000 options. The options are exercisable at $0.006 on or before 25 May 2023 vesting immediately to
the broker. There were 20,000,000 options exercised during the year ended 30 June 2023 (2022: Nil). There are no
options outstanding as at 30 June 2023.
56
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
24. Share-based Payments (continued)
(a) Options (continued)
4) On 2 October 2020, the Company agreed to offer two employees who are not related parties of the Company, 5,500,000
Options respectively under the Equity Incentive Plan, subject to obtaining Shareholder approval. Shareholder approval
was obtained on 30 November 2020. 50% of the options vest 12 months from grant date and the other 50% vest 24
months from grant date. The employees exercised 2,750,000 options during the year (2022: 2,750,000 options). There
are no options outstanding as at 30 June 2023.
5) On 19 November 2020, the Company agreed to offer an employee who is not a related party of the Company, 1,500,000
Options under the Plan. 50% of the options vest 12 months from grant date and the other 50% vest 24 months from
grant date. The employee exercised 750,000 options during the year ended 30 June 2023 (2022: 750,000 options). There
are no options outstanding as at 30 June 2023.
6) On 2 July 2021, the Company granted 11,500,000 options via the Equity Incentive Plan to employees who are not related
parties of the Company. The exercise price of the options is $0.04 and the options will expire on 2 July 2024. 50% of
these options will vest to the employees on 12 months of continued employment and 50% on 24 months of continued
employment. During the year ended 30 June 2023, 4,400,000 options were exercised by the employees (2022: Nil).
There are 7,100,000 options outstanding as at 30 June 2023.
7) On 11 August 2021, the Company granted an employee who is not a related party of the Company, 2,000,000 Options
under the Equity Incentive Plan. The exercise price of the options is $0.06 and the options will expire on 11 August 2024.
50% of these options will vest to the employee on 12 months of continued employment and 50% on 24 months of
continued employment. There were no options exercised during the year ended 30 June 2023 (2022: Nil).
8) On 24 November 2021, the Company granted the Managing Director, 5,000,000 Options under the Equity Incentive Plan.
The exercise price of the options is $0.04 and the options will expire on 2 July 2024. 50% of these options will vest to
the employee on 12 months of continued employment and 50% on 24 months of continued employment. There were no
options exercised during the year ended 30 June 2023 (2022: Nil).
9) On 29 November 2021, the Company granted an employee who is not a related party of the Company, 2,000,000 Options
under the Equity Incentive Plan. The exercise price of the options is $0.06 and the options will expire on 26 November
2024. 50% of these options will vest to the employee on 12 months of continued employment and 50% on 24 months of
continued employment. There were no options exercised during the year ended 30 June 2023 (2022: Nil).
The share options outstanding at the end of the financial year had a weighted average remaining contractual life of 1.18 years
(2022: 1.61 years) and weighted average exercise price of $0.031 (2022: $0.016).
(b) Performance rights
At 1 July 2022
Performance rights granted
Performance rights exercised
Performance rights vesting
At 30 June 2023
Number
-
37,783,332
(10,183,335)
-
$
-
1,823,057
(923,333)
-
27,599,997
899,724
Share-based payments granted during the year:
6,800,000 performance rights granted to directors on 30 November 2022.
The fair value of 6,800,000 performance rights granted to directors has been calculated at $680,000. The fair value was
calculated using the share price of $0.10 at grant date, being 30 November 2022.
On 31 December 2022, the vesting condition for Tranche 1 was achieved and 2,266,667 performance rights vested. On 13
January 2023, 2,266,667 fully paid ordinary shares were then issued to the directors.
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
57
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
24. Share-based Payments (continued)
(b) Performance rights (continued)
23,750,000 performance rights granted to employees on 8 December 2022.
The fair value of 23,750,000 performance rights granted to employees has been calculated at $2,090,000. The fair value was
calculated using the share price of $0.088 at grant date, being 8 December 2022.
On 31 December 2022, the vesting condition for Tranche 1 was achieved and 7,916,668 performance rights vested. On 13
January 2023, 7,916,668 fully paid ordinary shares were then issued to employees.
3,633,332 performance rights granted to employees on 30 January 2023.
The fair value of 3,633,332 performance rights granted to employees has been calculated at $363,333. The fair value was
calculated using the share price of $0.100 at grant date, being 30 January 2023.
600,000 performance rights granted to a director on 2 March 2023.
The fair value of 600,000 performance rights granted to a director has been calculated at $48,600. The fair value was
calculated using the share price of $0.081 at grant date, being 2 March 2023.
3,000,000 performance rights granted to the Chief Financial Officer on 31 May 2023.
The fair value of 3,000,000 performance rights granted to an employee has been calculated at $150,000. The fair value was
calculated using the share price of $0.050 at grant date, being 31 May 2023.
A share-based payment expense has been included within the Consolidated Statement of Profit or Loss and Other
Comprehensive Income, with the expense recognised over the useful life/term of the performance rights. The total share-
based payment expense for the year in respect to performance rights granted was $1,823,057, classified under Director &
Employee Benefits (Note 3) in the profit and loss.
25. Remuneration of Auditors
Remuneration of the auditor, for:
Auditing or reviewing the financial report
-
PKF Perth
- Nexia Perth Pty Ltd (Australia)
26. Contingent Liabilities
Consolidated
30 June 2023
30 June 2022
$
$
48,531
-
48,531
18,000
11,000
29,000
On 26 October 2022, the Company entered into an option and license agreement for tenements E30/499, P30/1157 and E29/1074
with an unrelated vendor. The terms of the agreement are as follows:
a) Initial option fee of $50,000 applicable for twelve months (paid);
b) Option extension fee of $50,000 to extend the option period for another twelve months;
c) Upon issuing an exercise notice, the vendor agrees to sell and the Company agrees to purchase the tenements for a
consideration of $1,000,000; and
d) Grant of royalty to the vendor at $1 per tonne of iron ore and 1% gross royalty payable on all minerals other than iron ore.
There is a contingent liability of $11,725 for a rental bond on the lease of business premises entered into on 22 September 2021
which has been secured via a term deposit for the same amount.
There were no other material contingent liabilities or contingent assets for the year ended 30 June 2023.
58
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
27. Parent Entity
Statement of Financial Position
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Issued capital
Accumulated losses
Reserves
Total Equity
Statement of Profit or Loss and Other Comprehensive
Income
Total loss for the year
Total comprehensive loss
28. Deed of Cross-Guarantee
30 June 2023
$
30 June 2022
$
(Restated)
14,308,698
41,385,515
2,840,494
17,863,075
55,694,213
20,703,569
4,375,886
143,384
4,519,270
1,346,802
177,577
1,524,379
97,104,008
(47,862,295)
1,933,230
60,954,153
(42,545,381)
770,418
51,174,943
19,179,190
(5,316,915)
(1,598,414)
(5,316,915)
(1,598,414)
The Company has not entered into any guarantees, in the current or previous financial year, in relation to the debts of its
subsidiaries.
29. Events Occurring After the Reporting Date
Subsequent to 30 June 2023, the following significant events were undertaken by the Group:
• On 4 July 2023, the Company granted 1,500,000 unlisted performance rights subject to the vesting conditions of Tranche 2 and
Tranche 3 via the Equity Incentive Plan to an employee who is not a related party of the Company.
• On 5 July 2023, the Company announced a 40% increase in Resource tonnage at Yin - Mangaroon.
• On 5 July 2023, the vesting condition for Tranche 2 was achieved and 2,266,667 performance rights for directors and 11,983,334
performance rights for employees vested. These performance rights were exercised, and the Company issued 14,250,001 fully
paid ordinary shares on 1 August 2023.
• On 10 July 2023, the Company announced high-grade REE-Nb zones at C3 & C5 – Mangaroon.
• On 17 July 2023, the Company announced additional high-grade REE-Nb zones at C3 & C5 – Mangaroon
• On 7 August 2023, the Company announced significant new intercepts from drilling at the Yin Ironstone Complex – Mangaroon.
• On 17 August 2023, the Company announced further thick, high-grade results from extensional and infill drilling at the Yin
Ironstone Complex – Mangaroon.
at C3 taking the global REE Resources at Mangaroon to 30.90Mt @ 1.02% TREO.
• On 28 August 2023, the Company released an initial, independent REE-Nb-P-Ti-Sc Resources of 10.48Mt @ 1.00% TREO
•
• On 28 August 2023, the vesting condition for Tranche 3 was achieved and 2,566,667 performance rights for directors and
11,983,329 performance rights for employees vested. These performance rights were exercised, and the Company issued
14,549,996 fully paid ordinary shares on 4 September 2023.
• On 30 August 2023, the Company announced that drilling had commenced at the Money Intrusion Ni-Cu-PGE (First Quantum
Minerals Earn-in) – Mangaroon.
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
59
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
29. Events Occurring After the Reporting Date (continued)
• On 31 August 2023, the Company announced that massive and disseminated Ni-Cu sulphides had been intersected at the
Money Intrusion Ni-Cu-PGE Project – Mangaroon.
• On 4 September 2023, the Company announced the results of a comprehensive gold review at Mangaroon.
• On 12 September 2023, the Company announced thick Ni-Cu Mineralisation at Mangaroon.
• On 13 September 2023, the Company announced highest grades to date from Yin infill drilling at Mangaroon.
Other than the events detailed above, there has not arisen in the interval between 1 July 2023 and the date of this report any item,
transaction or event of a material and unusual nature likely, in the opinion of the directors of the Group, to significantly affect the
operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity, in future
years.
30. Company Details
The registered office of the Company is:
Dreadnought Resources Ltd
Level 3, 88 William Street
Perth WA 6000
The principal place of business of the Company is:
Dreadnought Resources Ltd
Unit 1, 4 Burgay Court
Osborne Park WA 6017
The postal address of the Company is:
PO Box 712
Osborne Park DC WA 6916
www.dreadnoughtresources.com.au
Email: info@dreres.com.au
60
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
Directors’ Declaration
For the Year Ended 30 June 2023
In the directors' opinion:
•
•
•
•
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in Note 1 to the financial statements;
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 30
June 2023 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and
payable.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
DEAN TUCK
Managing Director
Dated 19 September 2023
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
61
PKF Perth
TO THE MEMBERS OF DREADNOUGHT RESOURCES LIMITED
Report on the Financial Report
Opinion
We have audited the accompanying financial report of Dreadnought Resources Limited (the company), which
comprises the consolidated statement of financial position as at 30 June 2023, the consolidated statement of
profit or loss and other comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, notes comprising a summary of significant
during the financial year.
or from time to time
In our opinion the accompanying financial report of Dreadnought Resources Limited is in accordance with the
Corporations Act 2001, including:
i)
performance for the year ended on that date; and
ial position as at 30 June 2023 and of its
ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
Responsibilities for the Audit of the Financial Report section of
our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
We are independent of the consolidated entity in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards
Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
Level 4, 35 Havelock Street, West Perth, WA 6005
PO Box 609, West Perth, WA 6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions
or inactions of any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
Page | 62
PKF Perth
Key Audit Matters
A key audit matter is a matter that, in our professional judgement, was of most significance in our audit of the
financial report of the current year. This matter was 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 audit opinion on this matter.
For the matter below, our description of how our audit addressed this matter is provided in that context.
1. Valuation of capitalised exploration expenditure
Why significant
How our audit addressed the key audit matter
As at 30 June 2023 the carrying value of exploration
and evaluation assets was $42,278,019 (2022:
Restated $17,196,520), as disclosed in Note 10.
pect
of exploration and evaluation expenditure is outlined in
Note 1(r).
Significant judgement is required:
in determining whether facts and circumstances
indicate that the exploration and evaluation assets
should be tested for impairment in accordance
with Australian Accounting Standard AASB 6
Exploration
for and Evaluation of Mineral
Resources
in determining the treatment of exploration and
evaluation expenditure in accordance with AASB
6, and the consolidated entit s accounting policy.
In particular:
o whether the particular areas of interest meet
the recognition conditions for an asset; and
o which elements of exploration and evaluation
expenditures qualify for capitalisation for each
area of interest.
Our work included, but was not limited to, the following
procedures:
c
assessment of
prepared in accordance with AASB 6 including:
impairment
trigger events
o
o
o
assessing whether the rights to tenure of
the areas of interest remained current at
reporting date as well as confirming that
rights to tenure are expected to be renewed
for tenements that will expire in the near
future;
obtaining specific representations with the
directors and management as to the status
of ongoing exploration programmes for the
areas of interest, as well as assessing if
there was evidence that a decision had
been made to discontinue activities in any
specific areas of interest; and
obtaining and assessing evidence of the
tention for the
areas of interest, including reviewing future
budgeted expenditure and related work
programmes.
considering whether exploration activities for
the areas of interest had reached a stage
where
of
assessment
reasonable
economically recoverable reserves existed;
a
testing, on a sample basis, exploration and
evaluation expenditure incurred during the year
the
compliance with AASB 6 and
for
reviewing the impairment calculations provided
and related assumptions and disclosures in
Notes 1(r), 1(t) and 10 for accuracy and
completeness.
Page | 63
PKF Perth
2. Share Based Payments
Why significant
How our audit addressed the key audit matter
For the year ended 30 June 2023, the value of share-
based payments expense totalled $2,440,475 (2022:
$389,345) as disclosed in Note 3 and 24. This has
been recognised as a share-based payment expense
in
the Statement of Profit or Loss and Other
Comprehensive Income for $2,444,993.
The consolidated entit
estimates in respect of share-based payments is
outlined in Note 1(q). Significant judgement is required
in relation to:
The valuation method used in the model; and
The assumptions and inputs used within the model.
Our work included, but was not limited to, the following
procedures:
Reviewed the company
instruments issued, including:
valuations of the equity
o assessing the appropriateness of the valuation
method used; and
o assessing the reasonableness of the assumptions
and inputs used within the valuation model.
Reviewed Board meeting minutes and ASX
announcements as well as enquired of relevant
personnel to ensure all share-based payments had
been recognised;
Assessed the allocation and recognition to ensure
these are reasonable; and
Assessed
of
disclosures in Notes 1(q), 3, 15 and 24.
the appropriateness
the
related
Other Information
Those charged with governance are responsible for the other information. The other information comprises the
r ended 30 June 2023, but does not
info
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon, with the exception of the Remuneration Report.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of
The Directors of the company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the Directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the D
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Directors either intend to liquidate the consolidated entity or to cease
operations, or have no realistic alternative but to do so.
ies for the Audit of the Financial Report
Page | 64
PKF Perth
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor
ion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of this financial
report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
consolidated en
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the Directors.
Conclud
is of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the consolidated ent
ern. If we conclude that a
material uncertainty exists, we are required to d
in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
ort. However, future events or
based on the audit evidence obtained u
conditions may cause the consolidated entity to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the consolidated entity to express an opinion on the group financial report. We are
responsible for the direction, supervision and performance of the group audit. We remain solely responsible
for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards
applied.
From the matters communicated with the Directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore the key audit matters. We describe
law or regulation precludes public disclosure about the matter or
these matte
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Page | 65
PKF Perth
Report on the Remuneration Report
Opinion
We have audited the Remuneration Report included in the D
Report for the year ended 30 June 2023.
In our opinion, the Remuneration Report of Dreadnought Resource Limited for the year ended 30 June 2023
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
PKF PERTH
SHANE CROSS
AUDIT PARTNER
19 SEPTEMBER 2023
WEST PERTH
WESTERN AUSTRALIA
Page | 66
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
ASX Additional Information
Additional information required by the ASX Listing Rules is set out below.
1.
Shareholdings
The issued capital of the Company as at 14 September 2023 is:
3,359,328,217 ordinary fully paid shares
All issued ordinary fully paid shares carry one vote per share.
2.
Distribution of Equity Securities as at 14 September 2023 is:
Ordinary Shares (ASX Code: DRE)
Holding Ranges
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Totals
Holders
126
241
905
4,376
3,096
8,750
Total Units
30,111
1,030,128
7,543,214
198,272,057
3,152,452,707
3,359,328,217
% Issued Share Capital
0.00
0.03
0.22
5.90
93.85
100.00%
3.
Unmarketable parcels
There were 909 holders of less than a marketable parcel of ordinary shares.
4.
Substantial shareholders as at 14 September 2023 is:
Name
Paul Chapman and associated entities
Number of Shares
317,938,084
% Holding
9.46%
5.
Restricted Securities Subject to Escrow as at 14 September 2023 is:
There are currently no restricted securities subject to Escrow.
6.
On-market buy back
There is currently no on-market buyback program for any of the Company’s listed securities.
7.
Group cash and assets
In accordance with Listing Rule 4.10.19, the Group confirms that it has been using the cash and assets for the year ended
30 June 2023 consistent with its business objective and strategy.
8.
Voting Rights
All ordinary fully paid shares have one voting right per share. Unlisted options have no voting rights.
DREADNOUGHT RESOURCES | ANNUAL REPORT 2023
67
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES
ABN 40 119 031 864
ASX Additional Information
9.
Top 20 Largest Holders of Listed Securities as at 14 September 2023 is:
Holder Name
Stone Poneys Nominees Pty Ltd
Mr Philip David Crutchfield (Group)
Pareto Nominees Pty Ltd
Mr David Michael Chapman + Ms Michele Wollens
CITICORP Nominees PTY Limited
PARKRANGE Nominees Pty Ltd
Kaos Investments Pty Limited
Mr Dean Tuck + Mrs Dianne Mae Tuck
Mr Tao Wu
Mr Nevres Crljenkovic
Mr David James Delfante
SUPERHERO SECURITIES LIMITED
Mr LIizhong Wu+ Mrs Weiping Qiu
HSBC Custody Nominees (Australia) Limited-GSCO ECA
BNP Paribas Nominees Pty Ltd ACF CLEARSTREAM
Mr Stephen James Foley + Ms Natalie Chantal Mellonius
Mr Drew Griffin Money
JE International
Payne Geological Services Pty Ltd
Mr Philip David Crutchfield (Group)
Pareto Nominees Pty Ltd
Mr David Michael Chapman + Ms Michele Wollens
CITICORP Nominees PTY Limited
PARKRANGE Nominees Pty Ltd
Kaos Investments Pty Limited
Mr Dean Tuck + Mrs Dianne Mae Tuck
Mr Tao Wu
Mr Nevres Crljenkovic
Mr David James Delfante
SUPERHERO SECURITIES LIMITED
Mr LIizhong Wu+ Mrs Weiping Qiu
HSBC Custody Nominees (Australia) Limited-GSCO ECA
BNP Paribas Nominees Pty Ltd ACF CLEARSTREAM
Mr Stephen James Foley + Ms Natalie Chantal Mellonius
Mr Drew Griffin Money
JE International
Payne Geological Services Pty Ltd