DUKETON MINING LIMITED
ANNUAL REPORT
2024
Corporate Information
DUKETON MINING LIMITED
ABN 76 159 084 107
Directors
Seamus Cornelius (Non-Executive Chairman)
Stuart Fogarty (Managing Director)
Heath Hellewell (Non-Executive Director)
Company Secretary
Dennis Wilkins
Registered Office
Level 1, Suite 3, 17 Ord Street
WEST PERTH WA 6005
Principal Place of Business
Level 2, 25 Richardson Street
WEST PERTH WA 6005
Telephone: +61 8 6315 1490
Solicitors
House Legal
86 First Avenue
MT LAWLEY WA 6050
Share Registry
Automic Pty Ltd
Level 5, 191 St Georges Terrace
PERTH WA 6000
Telephone: 1300 288 664
Web: www.automicgroup.com.au
Auditors
Hall Chadwick WA Audit Pty Ltd
283 Rokeby Road
SUBIACO WA 6008
Internet Address
www.duketonmining.com.au
Stock Exchange Listing
Duketon Mining Limited shares are listed on the Australian Securities Exchange (ASX code: DKM)
2
Review of Operations
Directors' Report
Auditor’s Independence Declaration
Corporate Governance Statement
Statement of Profit or Loss and Other Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Consolidated Entity Disclosure Statement
Directors' Declaration
Independent Audit Report
ASX Additional Information
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3
Review of Operations
1.
Review of Operations
1.1
Strategy and Objectives
The Company remains focused on building shareholder value through measured exploration on multiple projects across
several different commodities all located in Western Australia. Additionally, studies focused on development of our
nickel/copper/PGE assets will be pursued, albeit at a pace that reflects the sentiment in that sector of the industry. These
nickel/copper/PGE assets are located on a granted mining tenement in the Duketon Greenstone Belt approximately 140
kilometres north of the town of Laverton.
During the year ended 30 June 2024 the Company has actively pursued multiple internal and external opportunities across
several commodities. Whilst reviewing external opportunities the Company remains focused on creating value through
advancing its internal pipeline of opportunities. These include the following:
• Barlee Project (gold, lithium, rare earths & iron ore)
• Stephens Project (base metals)
• Doris Project (uranium)
The prospectivity of these projects are systematically assessed for a range of commodities and then either proposed for
relinquishment, vending into another company or being held as part of the key tenure of the company. The Company continues
to add alternative exploration options across multiple commodities through low-cost applications of tenements within Western
Australia. As a result of this, the Company remains in a strong position of having a technically de-risked portfolio of projects
at varying stages of understanding and exploration stage. The Company believes that it has the appropriate personnel to take
full advantage of those opportunities as they develop.
The Company continues to systematically work through all the outstanding technical risks of the two mineral resources the
company owns. This includes expanding the resources, assessing alternative metallurgical options and exploring for additional
resources within the broader tenement package. However, as stated above, this will be done at a pace that reflects the
sentiment in this sector of the industry.
The Company’s primary objective continues to focus on achieving returns for shareholders through focused proactive
exploration on key commodites whilst maintaining a watch over potential acquisitions outside of this area.
We are uniquely de-risked technically with respect to nickel within the Duketon Belt and surrounding areas. Nickel sulphides
have already been delineated within Duketon’s 100% owned mining lease at Rosie and C2 deposits. These discoveries show
the further upside potential of the tenement package that Duketon controls.
The Company’s tenements and nickel rights are within the Duketon Greenstone Belt starting immediately north of the town of
Laverton. The Company believes that there is considerable upside in the areas covered by these tenements and continues to
review the land holding to further advance understanding of the geological and mineralising controls with the intention of
unlocking additional value from within the Company’s current and future asset base.
During the year work on Rosie and C2 was slowed in response to a falling nickel price. These deposits continue and remain
open at depth and along strike. Duketon’s total Mineral Resource at the Rosie and C2 deposits (see below) is 102,527t of
nickel, 14,163t of copper and 254,712oz of PGEs (see ASX announcement 12 December 2022).
During the year work was increased on the Barlee (Gold and Lithium), Stephens (Base Metals) and Doris (Uranium and Rare
Earths) Projects. Each of these projects are at an early exploration stage and have attracted numerous field visits to verify
geology and historical results (see ASX announcements 15, 19 and 29 of September 2023 and 14 and 27 of February 2024).
4
Review of Operations (Cont’d)
Figure 1: Location of DKM Projects
5
Review of Operations (Cont’d)
Figure 2: Duketon Project showing DKM tenements and location of Nickel Prospects
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Review of Operations (Cont’d)
1.2
Exploration
1.2.1 Barlee
The Barlee Project (Au, Li, REE & Fe) is located approximately 200km north of Southern Cross within the Marda - Diemals
Greenstone Belt. Early-stage reconnaissance-style exploration has identified numerous pegmatite outcrops within both
granitic and mafic lithologies extending between 40 metres and 400 metres in length (see ASX announcement 29/09/2023).
Throughout this year the Barlee Project footprint has expanded to a total of 5 tenements (1 granted & 4 applications) for a
total of 560km2 and also covers the Youanmi / Clampton Fault zone along the granite / greenstone contact for approximately
60km. Previous exploration has identified “gold mineralisation in drill holes” at several prospects which require further
investigation and exploration. There are numerous gold-in-soil anomalies that require further exploration once the tenements
are granted. Elevated rare earth oxide assays have been recognised from a single drill hole, located within granite lithologies
near the western granite / greenstone contact within this project. Rock chip samples of banded iron formation (BIF) outcrops
have returned iron assays up 57.42% Fe.
Figure 3: Barlee Project Location & Lithium Projects
7
Review of Operations (Cont’d)
Figure 4: Barlee Tenement & Prospects
8
Review of Operations (Cont’d)
1.2.2 Stephens
The Stephens Project (Base Metals) is located 335 kilometres north-northeast of Perth on the southern extension of the
Gullewa Greenstone Belt in the Murchison Province. The project comprises 1 granted tenement and historical work has
intersected base metal mineralisation including copper, zinc, lead and silver (see ASX announcement 27/02/2024).
Figure 5: Stephens Project Location
9
Review of Operations (Cont’d)
Figure 6: Historical Drilling, E59/2414 (over TMI Magnetics)
10
Review of Operations (Cont’d)
1.2.3 Doris
The Doris Project (Uranium) is located 120km NNW of Meekatharra on the northern edge of the Yilgarn Craton. The eastern
portion is underlain by the Despair Granite, the western portion underlain by the Yarlaweelor Gneiss Complex. The project
comprises 3 granted tenements for a total of 168km2. Historical work has intercepted uranium within biotite shears in the
Despair Granite.
Figure 7: Doris Project Location
11
Review of Operations (Cont’d)
Figure 8: Geology plan of the Doris Project
12
Review of Operations (Cont’d)
1.2.4 Rosie
The Rosie deposit is situated approximately 110km north of Laverton, Western Australia. The project can be accessed via
formed gravel roads (Bandya Rd) from Laverton.
Mineralisation at Rosie consists of disseminated, matrix, stringer and brecciated massive Ni-Cu-PGE sulphides at, or adjacent
to, the lower contact of the Bulge Ultramafic Complex, interpreted to be a classic komatiitic lava channel style nickel sulphide
mineralisation.
The Rosie Mineral Resource was reviewed and recalculated in March 2022 and detailed in Table 1a. For comparison the
previously stated Mineral Resource for Rosie (March 2021) is shown in Table 1b. The total Contained Metal Tonnes for Rosie
(March 2022) is shown in Table 2.
Figure 9: Location Plan of C2 and Rosie Resources.
13
Review of Operations (Cont’d)
Rosie Nickel Resource >1% NiEq
Classification
Sulphide
Tonnes
Indicated
Inferred
Total
Pentlandite
Violarite
Sub-Total
Pentlandite
Violarite
Sub-Total
All
1,191,555
820,999
2,012,553
694,751
66,179
760,930
2,773,483
Ni
(%)
2.4
1.7
2.1
1.8
1.5
1.8
2.0
Cu
(%)
0.42
0.39
0.41
0.48
0.42
0.48
0.43
Co
(ppm)
642
504
585
580
442
568
580
Total
PGEs
(g/t)
2.7
2.5
2.6
2.5
1.7
2.4
2.6
Table 1a: Rosie Nickel Resource > 1.0% Ni as at 10th March 2022
Rosie Nickel Resource >1% NiEq
Classification
Indicated
Inferred
Total
Sulphide
Pentlandite
Violarite
Sub-Total
Pentlandite
Violarite
Sub-Total
All
Tonnes
960,893
745,813
1,706,706
751,559
98,676
850,234
2,556,940
Ni
(%)
2.3
1.7
2.0
1.8
1.5
1.7
1.9
Cu
(%)
0.41
0.36
0.39
0.47
0.43
0.47
0.42
Co
(ppm)
610
490
560
570
460
560
560
Total PGEs
(g/t)
2.6
2.5
2.5
2.5
2.2
2.5
2.5
Table 1b: Rosie Nickel Resource > 1.0% Ni (4th March 2021)
NiEq
(%)
3.76
2.75
3.35
3.13
2.36
3.06
3.27
NiEq
(%)
3.60
2.70
3.21
3.08
2.51
3.01
3.14
Classification
Ore Type
Ni (t)
Cu (t)
Co (t)
Total PGEs (oz)
Contained Metal
Indicated
Inferred
Pentlandite
Violarite
Sub-Total
Pentlandite
Violarite
Sub-Total
Total
28,524
13,966
42,490
12,786
987
13,774
4,978
3,230
8,208
3,337
279
3,616
764
414
1,178
403
29
432
104,868
64,869
169,737
55,740
3,551
59,291
56,264
11,824
1,610
229,028
Table 2: Rosie Nickel Resource > 1.0% Ni – Contained Metal (10th March 2022)
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Review of Operations (Cont’d)
Figure 10: Long section of Rosie looking toward the northeast showing significant intercepts
1.2.5 C2
The C2 deposit is situated approximately 2km north of Rosie and consists of a series of disseminated, blebby and matrix
sulphide zones within and proximal to the contacts of the ultramafic complex. Three broad zones of mineralisation have been
interpreted.
The Company published an updated Mineral Resource estimate for the C2 deposit in December 2022. This Inferred Mineral
Resource estimate at C2 is 8.06 million tonnes averaging 0.57% nickel, 0.03% copper and 0.1g/t platinum and palladium for
a contained 46,263 tonnes of nickel and associated copper, platinum and palladium (see Tables 3 and 4). This represents
the in-situ undiluted Mineral Resource at 0.4% nickel lower cut-off (see Tables 3 and 4). Nickel mineralisation is robust and
continuous.
For comparison the previously stated Mineral Resource for C2 (January 2015) which was calculated using a 0.5% nickel lower
cut-off is shown in Table 4. The total Contained Metal Tonnes for C2 (December 2022) is shown in Table 5.
The total Mineral Resource for the Duketon project, comprising C2 and the Rosie deposit (see ASX announcement 12
December 2022), stands at 102,527t of nickel, 14,163t of copper and 254,712oz of PGEs.
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Review of Operations (Cont’d)
C2 Nickel Resource >0.4%Ni – December 2022
Classification
Tonnes
Ni (%)
Cu (%)
Pd (ppb)
Pt (ppb)
S (%)
Indicated
Inferred
Total
7,955,751
107,790
8,063,541
0.57
0.44
0.57
0.03
0.01
0.03
56.7
34.7
56.5
42.8
31.4
42.7
1.7
0.5
1.7
Table 3: C2 Mineral Resource Statement (December 2022) >0.4% Ni
C2 Nickel Resource >0.5%Ni – January 2015
Classification
Inferred
Oxidation
Fresh
Transitional
Total
Tonnes
5,100,000
600,000
5,700,000
Ni (%)
0.7
0.6
0.7
Ni (t)
34,200
3,800
38,000
Table 4: C2 Mineral Resource Statement (January 2015) >0.5% Ni
Classification Ni tonnes Cu tonnes
Indicated
Inferred
Total
45,790
474
46,263
2,325
15
2,339
Co tonnes
1,490
14
1,505
PGE oz
25,455
229
25,684
Table 5: C2 Nickel Resource > 0.4% Ni – Contained Metal (December 2022)
For comparison the previously stated (January 2015) and the updated Mineral Resource (December 2022) for C2 shown in
Table 6.
Classification
Indicated
Inferred
Total
January 2015 Resource
tonnes
Ni % metal
5,700,000
5,700,000
0.7
0.7
38,000
38,000
December 2022 Resource
Ni % metal
tonnes
45,790
0.58
7,955,751
474
0.44
107,790
46,263
0.57
8,063,541
Change %
Ni %
tonnes
metal
-98%
41%
-37%
-18%
-99%
22%
Table 6: C2 - Comparison between January 2015 and December 2022 MREs
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Review of Operations (Cont’d)
Figure 11: C2 Cross Section
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Review of Operations (Cont’d)
Appendix 1 – Summary of JORC Resources
Table 1a: Total Nickel Mineral Resources as at 30 June 2023
Table 2a: Total Nickel Mineral Resources as at 30 June 2024
Mineral Resources
Attached as Appendix 1 are two tables comparing the Company’s Mineral Resources as at 30 June 2023 and 30 June 2024. No Ore Reserves have been estimated.
Review of material changes
There have been no material changes to the Company’s Mineral Resources during the year.
Governance controls
All Mineral Resource estimates are prepared by qualified professionals following JORC Code compliant procedures and follow standard industry methodology for drilling, sampling, assaying,
geological interpretation, 3-dimensional modelling and grade interpolation techniques.
The Mineral Resource estimates have been calculated by a suitably qualified consultant and overseen by suitably qualified Duketon Mining Limited employee and/or consultant.
Competent Persons Statements
This Mineral Resources Statement as a whole has been approved by Ms Kirsty Culver, Member of the Australian Institute of Geoscientists (AIG) and an employee of Duketon Mining Limited. Ms Culver has
sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2012
Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Ms Culver has given her prior written consent to the inclusion in this report of the Mineral Resources
statement in the form and context in which it appears. Ms Culver is a shareholder in the Company and confirms there is no potential for a conflict of interest in acting as a Competent Person.
The information in this report that relates to Mineral Resources for Rosie and C2 is based on, and fairly represents, information and supporting documentation prepared by Mr Michael Job who is a fellow of the
Australasian Institute of Mining and Metallurgy. Mr Job has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking
to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
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TonnesNi TonnesNi Cu Co PGE'sTonnesNi Cu Co PGE'sTonnesNi Cu Co PGE's('000)Tonnes('000)TonnesTonnesTonnesOz('000)TonnesTonnesTonnesOz('000)TonnesTonnesTonnesOzRosie2,0122.142,4900.418,2085851,1782.60169,7377611.813,7740.483,6165684322.4059,2912,773256,2640.4311,8245801,6102.60229,028C27,9560.5745,7900.032,3251871,4900.1025,4551080.444740.0115129140.062298,0630.5746,2630.032,3391861,5050.1025,684TOTAL9,9680.988,2800.1010,5332682,6680.61195,1928691.614,2480.423,6315134462.1359,52010,8360.9102,5270.1314,1632873,1150.73254,712InferredTotalCu (%)Co (ppm)PGE's (g/t)Cu (%)Co (ppm)PGE's (g/t)Cu (%)Co (ppm)PGE's (g/t)IndicatedProject MeasuredNi (%)Ni (%)Ni (%)Ni (%)TonnesNi TonnesNi Cu Co PGE'sTonnesNi Cu Co PGE'sTonnesNi Cu Co PGE's('000)Tonnes('000)TonnesTonnesTonnesOz('000)TonnesTonnesTonnesOz('000)TonnesTonnesTonnesOzRosie2,0122.142,4900.418,2085851,1782.60169,7377611.813,7740.483,6165684322.4059,2912,773256,2640.4311,8245801,6102.60229,028C27,9560.5745,7900.032,3251871,4900.1025,4551080.444740.0115129140.062298,0630.5746,2630.032,3391861,5050.1025,684TOTAL9,9680.988,2800.1010,5332682,6680.61195,1928691.614,2480.423,6315134462.1359,52010,8360.9102,5270.1314,1632873,1150.73254,712InferredTotalCu (%)Co (ppm)PGE's (g/t)Cu (%)Co (ppm)PGE's (g/t)Cu (%)Co (ppm)PGE's (g/t)IndicatedProject MeasuredNi (%)Ni (%)Ni (%)Ni (%)
Review of Operations (Cont’d)
The information in this report that relates to Mineral Resources for Rosie is extracted from the Company’s ASX announcement titled “Rosie Resource Increases in Tonnes Grade and Metal” dated 10 March 2022.
The information in this report that relates to Mineral Resources for C2 is extracted from the Company’s ASX announcement titled “Duketon Project Increases to over 100k tonnes of Nickel in Resource” dated 12
December 2022. The announcements are available to view on the Company’s website (www.duketonmining.com.au). The Company confirms that it is not aware of any new information or data that materially
affects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to
apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market
announcements.
The information in this report that relates to exploration results is extracted from the Company’s ASX announcements noted in the text of the report which are available to view on the Company’s website. The
Company confirms that it is not aware of any new information or data that materially affects the information included in the original announcements and that the form and context in which the Competent Person’s
findings are presented have not been materially altered.
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Directors’ Report
The directors present their report together with the financial report of Duketon Mining Limited (“Duketon” or “the Company”)
for the year ended 30 June 2024.
DIRECTORS
The names and details of the Company’s directors in office during the financial year and until the date of this report are as
follows. Where applicable, all current and former directorships held in listed public companies over the last three years have
been detailed below. Directors were in office for this entire period unless otherwise stated.
Names, qualifications, experience and special responsibilities
Seamus Cornelius
Non-Executive Chairman, LLB, LLM (Age 58)
Mr Cornelius is an experienced international corporate lawyer and company director. He was a partner with a major
international law firm from 2000 to 2010 and resided in China from 1993 until 2017. In 2010, Mr Cornelius commenced his
public company career as company director and is currently a director and non-executive chairman of Buxton Resources Ltd
since 29 November 2010. Mr Cornelius has been a director of Danakali Ltd since 15 July 2014 and is currently the Executive
Chairman.
Mr Cornelius is a former director of Element 25 Limited (30 June 2011 to 28 November 2023), First Tin PLC (7 April 2022 to
6 September 2023), and South Harz Potash Ltd (21 August 2023 to 10 March 2024) within the last three years.
Stuart Fogarty
Managing Director, B.Sc (Geology) (Hons) (Age 52)
Mr Fogarty has over 30 years of exploration experience with BHP Billiton and Western Mining Corporation, and prior to leaving
he was BHP’s Senior Exploration Manager for North and South America. Mr Fogarty has a very strong background in nickel
and gold exploration, having commenced his career at Kambalda Nickel Operations in 1994. He has held senior roles with
BHP including Senior Geoscientist for nickel exploration in the Leinster and Mt Keith region, Project Manager WA Nickel
Brownfields and Regional Manager Australia – Asia where he was responsible for a $100 million per annum exploration budget.
Mr Fogarty is currently a non-executive director of ASX listed Buxton Resources Ltd since 15 March 2017.
Heath Hellewell
Non-Executive Director, B.Sc (Hons), MAIG (Age 54)
Mr Hellewell is an exploration geologist with over 30 years of technical and management experience in gold, base metals and
diamond exploration predominantly in Australia and West Africa.
Mr Hellewell was part of the Independence Group NL (now IGO Limited) team joining the Company in 2000 prior to its IPO on
the ASX. That team identified and acquired the Tropicana project area, eventually leading to the discovery of the Tropicana
and Havana gold deposits.
Mr Hellewell was co-founding Executive Director of Doray Minerals Ltd where he was responsible for the Company’s
exploration activities. Following the discovery of the Andy Well gold deposits in 2010, Doray was named “Gold Explorer of the
Year” in 2011 by The Gold Mining Journal and in 2014 Heath was the co-winner of the prestigious “Prospector of the Year”
award, presented by the Association of Mining and Exploration Companies.
Mr Hellewell played a key role in the private acquisition of the Karlawinda Gold Project and subsequent successful RTO listing
of Capricorn Metals Ltd on the ASX in 2016, where he served as Executive Chairman until 2018.
Mr Hellewell is currently a Non-Executive Director at Core Lithium Ltd (formerly Core Exploration Ltd) since 15 September
2014 and at Latitude 66 Limited (formerly Discovex Resources Ltd) since 11 March 2021.
COMPANY SECRETARY
Dennis Wilkins
B.Bus, MAICD, ACIS (Age 60)
Mr Wilkins is the founder and principal of DWCorporate Pty Ltd a leading privately held corporate advisory firm servicing the
natural resources industry. Since 1994 he has been a director of, and involved in the executive management of, several
publicly listed resource companies with operations in Australia, PNG, Scandinavia and Africa. From 1995 to 2001 he was the
Finance Director of Lynas Corporation Ltd during the period when the Mt Weld Rare Earths project was acquired by the group.
He was also founding director and advisor to Atlas Iron Ltd at the time of Atlas’ initial public offering in 2006.
Since July 2001 Mr Wilkins has been running DWCorporate Pty Ltd where he advises on the formation of, and capital raising
for, emerging companies in the Australian resources sector. Mr Wilkins is currently a non-executive director of Key Petroleum
Ltd since 5 July 2006.
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Directors’ Report (Cont’d)
Interests in the shares and options of the company and related bodies corporate
As at the date of this report, the interests of the directors in the shares and options of Duketon Mining Limited were:
Seamus Cornelius
Stuart Fogarty
Heath Hellewell
Ordinary
Shares
7,834,396
1,935,765
723,115
Options over
Ordinary
Shares
2,000,000
4,000,000
2,000,000
PRINCIPAL ACTIVITIES
The principal activities of the Company during the year consisted of exploration and evaluation of mineral resources. There
was no significant change in the nature of the Company’s activities during the year.
DIVIDENDS
No dividends were paid or declared during the financial year. No recommendation for payment of dividends has been made.
OPERATING REVIEW
During the year ended 30 June 2024 the Company actively identified opportunities and drilled exploration targets.
The Company remains focused on creating value through advancing its internal pipeline of opportunities including the
following:
•
•
•
Expanding and assessing our known nickel deposits and targeting extensions to Rosie and C2;
Studying mining scenarios of Rosie and C2 both individually and combined;
Discovering new nickel deposits through regional work in the Bulge area and other new areas; and
Opportunistically acquiring tenements on prospective ground within Western Australia.
•
The Company’s primary objective continues to focus on achieving returns for shareholders through focused proactive
exploration and advancement of mining studies in the Duketon Belt whilst maintaining a watch over potential acquisitions
outside of this area.
Finance Review
The Company began the year with cash reserves of $12,474,449 and listed equity investments with a market value of
$3,656,380. During the year, the Company issued 181,818 ordinary shares, with a value of $20,000, to an employee as a
reward and incentive, and 139,534 ordinary shares upon the cashless exercise of unlisted options. Funds were used for
exploration activities on nickel targets within the Duketon Project and working capital purposes.
The Company recorded a net loss after tax of $3,476,953 (2023: $2,858,485) for the financial year ended 30 June 2024 and
included in the result for the year was exploration expenditure of $1,419,417 (2023: $4,510,784). In line with the Company’s
accounting policies, all exploration expenditure is expensed as it is incurred. The Company had total cash on hand at the end
of the year of $10,619,448, and listed equity investments with a market value of $1,711,436.
Operating Results for the Year
Summarised operating results are as follows:
2024
Revenues
$
Loss
$
Revenues and loss from ordinary activities before income tax benefit
537,553
(3,476,953)
Shareholder Returns
Basic loss per share (cents)
2024
(2.8)
2023
(2.3)
21
Directors’ Report (Cont’d)
Risk Management
The board is responsible for ensuring that risks, and opportunities, are identified on a timely basis and that activities are aligned
with the risks and opportunities identified by the board.
The Company believes that it is crucial for all board members to be a part of this process, and as such the board has not
established a separate risk management committee.
The board has numerous mechanisms in place to ensure that management's objectives and activities are aligned with the
risks identified by the board. These include the following:
• Board approval of a strategic plan, which encompasses strategy statements designed to meet stakeholders’ needs and
manage business risk.
•
Implementation of board approved operating plans and budgets and board monitoring of progress against these budgets.
Company specific business risks that could interfere with the achievement of the Company’s future operational and financial
success are listed below.
Exploration risks
The mineral tenements of the Company are in the early stages of exploration. Because mineral exploration and development
are high-risk undertakings, there can be no assurance that exploration of these other or any future tenements will result in the
discovery of an economic deposit. If exploration is successful, there will be additional costs and processes involved in moving
to the development phase.
Exploration and development costs are based on estimates and assumptions with respect to the method and timing of
exploration. By their nature, these estimates and assumptions are subject to significant uncertainties and, accordingly, the
actual costs may differ materially from these estimates and assumptions. Such differences may materially and adversely affect
the Company's viability.
New projects and acquisitions
The Company has to date and will continue to pursue and assess other new business opportunities. These new business
opportunities may take the form of direct project acquisitions, joint ventures, farm-ins, acquisition of tenements/permits, or
direct equity participation. The Directors of the Company will use their expertise and experience in the resources sector to
assess the value of potential projects that have characteristics that are likely to provide returns to Shareholders. There can be
no guarantee that any new project acquisition or investment will eventuate from these pursuits, or that any acquisitions will
result in a return for Shareholders.
The acquisition of projects or other assets (whether completed or not) may require the payment of monies (as a deposit and/or
exclusivity fee) after only limited due diligence and prior to the completion of comprehensive due diligence. There can be no
guarantee that any proposed acquisition will be completed or successful. If the proposed acquisition is not completed, monies
already advanced may not be recoverable, which may have a material adverse effect on the Company.
If an acquisition is completed, the Directors will need to reassess, at that time, the funding allocated to current projects and
new projects or assets, which may result in the Company reallocating funds from other projects and/or the raising of additional
capital (if available). Furthermore, notwithstanding that an acquisition may proceed upon the completion of due diligence, the
usual risks associated with the new project/business activities will remain.
Furthermore, if a new investment or acquisition by the Company is completed, ASX may require the Company to seek
Shareholder approval and to meet the admission requirements under Chapters 1 and 2 of the ASX Listing Rules as if the
Company were a new listing. There would be costs associated in re-complying with the admission requirements. The Company
may be required to incur these costs in any event, were it to proceed to seek to acquire a new project which is considered to
result in a significant change to the nature or scale of its existing operations.
If a new investment or acquisition is not completed, then the Company may not be in a position to comply with the ongoing
ASX Listing Rules, which includes but is not limited to, maintaining a sufficient level of operations and financial position. Given
the nature of resource exploration, this may also occur if the Company abandons and/or relinquishes a project which is no
longer considered viable.
Any new project or business acquisition may change the risk profile of the Company, particularly if the new project is located
in another jurisdiction, involving a new commodity and/or changes to the Company’s capital/funding requirements. Should the
Company propose or complete the acquisition of a new project or business activity, investors may re-assess their investment
in the Company in light of the new project/business activity.
Regulatory risks
The Company’s exploration and development activities are subject to extensive laws and regulations relating to numerous
matters including, without limitation, tenement and concession requirements and risks, conditions including environmental
compliance and rehabilitation, taxation, employee relations, health and worker safety, waste disposal, protection of the
environment, native title and heritage matters, protection of endangered and protected species and other matters. The
Company requires environmental licences from regulatory authorities to authorise the Company’s operations. These licences
relate to development, production and rehabilitation activities (although no such activities are currently in progress).
22
Directors’ Report (Cont’d)
Obtaining necessary licences can be a time-consuming process and there is a risk that the Company will not obtain these
licences on acceptable terms, in a timely manner or at all. The costs and delays associated with obtaining necessary licences
and complying with these licences and applicable laws and regulations could materially delay or restrict the Company from
proceeding with the development of a project. Any failure to comply with applicable laws and regulations or licences, even if
inadvertent, could result in material fines, penalties or other liabilities. In extreme cases, failure could result in suspension of
the Company’s activities or forfeiture of one or more of the projects in which the Company currently holds an interest.
Resource and Reserve estimates
An estimate is an expression of judgement based on knowledge, experience and industry practice. Estimates that were valid
when originally calculated may alter significantly when new information or techniques become available. In addition, by their
very nature, resource estimates are imprecise and depend to some extent on interpretations, which may prove to be
inaccurate. As further information becomes available through additional fieldwork and analysis, the estimates are likely to
change. This may result in alterations to development and mining plans which may, in turn, adversely affect the Company’s
operations.
Additional requirements for capital
The Company’s capital requirements depend on numerous factors. Depending on the Company’s ability to generate income
from its operations, the Company may require further financing. Any additional equity financing will dilute shareholdings, and
debt financing, if available, may involve restrictions on financing and operating activities. If the Company is unable to obtain
additional financing as needed, it may be required to reduce the scope of its operations and scale back its exploration
programmes as the case may be. There is however no guarantee that the Company will be able to secure any additional
funding or be able to secure funding on terms favourable to the Company.
Key personnel and employee’s risk
The responsibility of overseeing the day-to-day operations and the strategic management of the Company depends
substantially on its senior management and its key personnel. There can be no assurance that there will be no detrimental
impact on the Company if one or more of these key personnel ceases their involvement with the Company.
Operating risks
The current and future operations of the Company, including exploration, appraisal and possible production activities may be
affected by a range of factors, including:
(i)
(ii)
(iii)
(iv)
adverse geological conditions;
failure to achieve predicted grades in exploration and mining;
limitations on activities due to seasonal weather patterns and cyclone activity;
unanticipated operational and technical difficulties encountered in geophysical surveys, drilling and production
activities;
difficulties in commissioning and operating plant and equipment;
(v)
(vi) mechanical failure of operating plant and equipment;
(vii)
(viii)
(ix)
(x)
No assurances can be given that the Company will achieve commercial viability through successful exploration and/or mining.
Until the Company is able to realise value from its projects, it is likely to incur ongoing operating losses.
unanticipated metallurgical problems which may affect extraction recoveries and costs;
industrial and environmental accidents, industrial disputes and other force majeure events;
unexpected shortages or increases in the costs of labour, consumables, spare parts, plant and equipment; and
inability to obtain or maintain any necessary consents or approvals.
Commodity price volatility and exchange rate risks
If the Company achieves success leading to mineral production, the revenue it will derive through the sale of commodities
exposes the potential income of the Company to commodity price and exchange rate risks. Commodity prices fluctuate and
are affected by many factors beyond the control of the Company. Such factors include supply and demand fluctuations for
commodities, technological advancements, forward selling activities and other macro-economic factors.
Furthermore, international prices of various commodities are denominated in United States dollars, whereas the income and
expenditure of the Company are and will be taken into account in Australian currency, exposing the Company to the fluctuations
and volatility of the rate of exchange between the United States dollar and the Australian dollar as determined in international
markets.
23
Directors’ Report (Cont’d)
Title risk
Although the Company has investigated title to all of its tenements, the Company cannot give any assurance that title to such
tenements will not be challenged or impugned. Accordingly, there is a residual risk that, despite the Company’s investigations,
the tenements may be subject to prior unregistered agreements or transfers, or title may be affected by unregistered
encumbrances, third party interests or defects. Tenements are also subject to minimum expenditure requirements. In the event
that these minimum expenditure requirements are not met, those tenements may be subject to forfeiture proceedings.
Exploration tenements are subject to periodic renewal. There is no guarantee that renewal of current or future tenements or
future applications for production tenements will be approved.
The renewal of the term of a granted tenement is subject to the discretion of the relevant Minister. Renewal conditions may
include increased expenditure and work commitments or compulsory relinquishment of areas of the tenements comprising the
Company’s projects. The imposition of new conditions or the inability to meet those conditions may adversely affect the
operations, financial position and/or performance of the Company.
It is also possible that, in relation to tenements in which the Company has an interest or will in the future acquire such an
interest, there may be areas over which legitimate common law native title rights of Aboriginal Australians exist. If native title
rights do exist, the ability of the Company to gain access to tenements (through obtaining consent of any relevant landowner),
or to progress from the exploration phase to the development and mining phases of operations may be adversely affected.
Each licence or lease carries with it annual expenditure and reporting commitments, as well as other conditions requiring
compliance. Consequently, the Company could lose title to or its interest in the tenements if licence conditions are not met or
if insufficient funds are available to meet expenditure commitments.
Environmental risks
The operations and proposed activities of the Company are subject to laws and regulations concerning the environment. As
with most exploration projects and mining operations, the Company’s activities are expected to have an impact on the
environment, particularly if advanced exploration or mine development proceeds.
The Company intends to conduct its activities in an environmentally responsible manner and in accordance with applicable
laws and industry standards. Areas disturbed by the Company’s activities will be rehabilitated as required by the relevant
regulatory authorities.
Mining operations have inherent risks and liabilities associated with safety and damage to the environment and the disposal
of waste products occurring as a result of mineral exploration and production. The occurrence of any such safety or
environmental incident could delay production or increase production costs. Events, such as unpredictable rainfall or bushfires,
may impact on the Company’s ongoing compliance with environmental legislation, regulations and licences. Significant
liabilities could be imposed on the Company for damages, clean-up costs or penalties in the event of certain discharges into
the environment, environmental damage caused by previous operations or non-compliance with environmental laws or
regulations.
The disposal of mining and process waste and mine water discharge are under constant legislative scrutiny and regulation.
There is a risk that environmental laws and regulations become more onerous making the Company’s operations more
expensive.
Approvals are required for land clearing and for ground disturbing activities. Delays in obtaining such approvals can result in
the delay or modification to anticipated exploration programmes or mining activities. There is always a risk that detailed
environmental investigations will identify endangered or other protected species that may affect the ability of the Company to
obtain any necessary government approvals or carry out its operations as planned.
Conflicts of interest
The Company’s Directors are also directors and officers of other companies engaged in mineral exploration and development
and mineral property acquisitions. Accordingly, mineral exploration opportunities or prospects of which such persons become
aware will not necessarily be made available to the Company. The Directors intend, however, to allocate these to such
companies on the basis of prudent business and judgement and the relative financial abilities and needs of the companies to
participate. Although such persons have been advised of their fiduciary duties to the Company, there exist actual and potential
conflicts of interest among these persons and situations could arise in which their obligations to, or interests in, other
companies could detract from their efforts on behalf of the Company.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Other than as disclosed in this Report, no significant changes in the state of affairs of the Company occurred during the
financial year.
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
No matters or circumstances have arisen since the end of the year which significantly affected or may significantly affect the
operations of the Company, the results of those operations, or the state of affairs of the Company in future financial periods.
24
Directors’ Report (Cont’d)
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
Details of important developments occurring in this financial year have been covered in the Review of Operations section of
the Directors’ Report. The Company will continue activities in the exploration, evaluation and development of the Duketon
Project and mineral tenements with the objective of developing a significant mining operation and any significant information
or data will be released to the market and the shareholders pursuant to the Continuous Disclosure rules as and when they
come to hand.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Company is subject to significant environmental regulation in respect to its exploration activities. The Company aims to
ensure the appropriate standard of environmental care is achieved, and in doing so, that it is aware of and is in compliance
with all environmental legislation. The directors of the Company are not aware of any breach of environmental legislation for
the year under review.
REMUNERATION REPORT (AUDITED)
The information provided in this remuneration report has been audited as required by section 308(3C) of the Corporations Act
2001.
Principles used to determine the nature and amount of remuneration
Remuneration Policy
The remuneration policy of Duketon Mining Limited has been designed to align key management personnel objectives with
shareholder and business objectives by providing a fixed remuneration component and offering specific long-term incentives
based on key performance areas affecting the Company’s financial results. The board of Duketon Mining Limited 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.
The board’s policy for determining the nature and amount of remuneration for board members and senior executives (if any)
of the Company is as follows:
The remuneration policy, setting the terms and conditions for the executive directors, was developed by the board. All
executives receive a base salary (which is based on factors such as length of service, performance and experience) and
superannuation. The board reviews executive packages annually by reference to the Company’s performance, executive
performance and comparable information from industry sectors and other listed companies in similar industries.
The board may exercise discretion in relation to approving incentives, bonuses and options. The policy is designed to attract
and retain the highest calibre of executives and reward them for performance that results in long-term growth in shareholder
wealth.
The directors and executives (if any) receive a superannuation guarantee contribution required by the government, which was
11% for the 2024 financial year. Some individuals may choose to sacrifice part of their salary to increase payments towards
superannuation.
All remuneration paid to key management personnel is valued at the cost to the Company and expensed. Options are valued
using the Black-Scholes methodology.
The board policy is to remunerate non-executive directors at market rates for comparable companies for time, commitment
and responsibilities. The board determines payments to the non-executive directors and reviews their remuneration annually,
based on market practice, duties and accountability. Independent external advice is sought when required. The maximum
aggregate amount of fees that can be paid to non-executive directors is (currently $300,000) and set in accordance with the
constitution of the Company. Fees for non-executive directors are not linked to the performance of the Company. However, to
align directors’ interests with shareholder interests, the directors are encouraged to hold shares in the Company.
Performance based remuneration
The Company currently has no performance-based remuneration component built into key management personnel
remuneration packages.
Company performance, shareholder wealth and key management personnel remuneration
The remuneration policy has been tailored to increase the direct positive relationship between shareholders’ investment
objectives and key management personnel performance. Currently, this is facilitated through the issue of options to the majority
of key management personnel to encourage the alignment of personal and shareholder interests. The Company believes this
policy will be effective in increasing shareholder wealth. If the Company were to commence mine production, performance-
based bonuses based on key performance indicators are expected to be introduced. For details of key management personnel
interests in options at year end, refer to the ‘Option holdings’ section later in the Remuneration Report.
25
Directors’ Report (Cont’d)
The table below shows the gross revenue, profits or losses and earnings per share for the last five years for the listed entity.
Revenue and other income
Net (loss)/profit
(Loss)/earnings per share (cents)
Share price at year end (cents)
Total KMP compensation
No dividends have been paid.
2024
$
2023
$
2022
$
2021
$
2020
$
537,553
(3,476,953)
(2.8)
11.0
420,927
2,147,205
(2,858,485)
(2.3)
35.5
818,497
121,773
(9,314,266)
(7.7)
25.0
817,612
8,579,268
3,167,660
2.6
32.5
572,139
21,448,874
19,130,177
16.2
17.0
507,639
Use of remuneration consultants
The Company did not employ the services of any remuneration consultants during the financial year ended 30 June 2024.
Voting and comments made at the Company’s 2023 Annual General Meeting
The Company received approximately 99.8% of “yes” votes on its remuneration report for the 2023 financial year. The
Company did not receive any specific feedback at the Annual General Meeting or throughout the year on its remuneration
practices.
Details of remuneration
Details of the remuneration of the key management personnel of the Company are set out in the following table.
The key management personnel of the Company include the directors as per page 20 above.
Key management personnel of the Company
Post-
Short-Term
Salary
& Fees Annual Leave
$
$
Employment Long-Term
Long Service
Leave
$
Super-
annuation
$
Share-based
Payments
Total
Options
$
$
46,899
47,418
Directors
Seamus Cornelius
2024
2023
Stuart Fogarty
2024
2023
Heath Hellewell
2024
2023
Total key management personnel remuneration
2024
2023
371,126
365,077
292,977
287,659
31,250
30,000
-
-
5,750
12,465
-
-
5,159
4,971
32,228
30,159
-
-
-
-
-
99,000
6,664
9,825
-
198,000
-
-
-
99,000
5,750
12,465
37,387
35,130
6,664
9,825
-
396,000
52,058
151,389
337,619
538,108
31,250
129,000
420,927
818,497
Service agreements
Stuart Fogarty, Managing Director:
• Annual salary of $325,205 (including statutory superannuation).
• The Company or the Executive may terminate, without cause, the Executive’s employment at any time by giving three
•
calendar months’ written notice.
In the event the Managing Director is terminated as result of one of the following circumstances the Company will make a
twelve calendar months Redundancy Payment to the Executive at the base salary:
o
o
o
the Executive’s position is made redundant by the Board;
there is a material diminution in the responsibilities or powers assigned to the Executive by the Board; or
there is a material reduction in the remuneration payable to the Executive as determined by the Board.
26
Directors’ Report (Cont’d)
Share-based compensation
Options are issued at no cost to key management personnel as part of their remuneration. The options are not issued based
on performance criteria but are issued to the key management personnel of Duketon Mining Limited to increase goal
congruence between key management personnel and shareholders. No options over ordinary shares of the Company were
granted to or vesting with key management personnel during the year.
Details of ordinary shares in the Company provided as a result of the exercise of remuneration options to key management
personnel of the Company are set out below:
Number of options
exercised during the
year
Number of ordinary
shares issued on
exercise of options
during the year (1)
Amount paid per
ordinary share (cents) (1) Value exercised ($) (2)
Directors
Stuart Fogarty
2,000,000
139,534
21.5
30,000
No amounts are unpaid on any shares issued on the exercise of options.
(1)
(2)
On 28 November 2023 Mr Fogarty exercised the number of options disclosed utilising the cashless exercise facility
approved at the AGM on 19 November 2021. The amount paid per ordinary share was calculated in accordance with
the terms of the cashless exercise facility being the 5-day volume weighted average price prior to the date of exercise.
The value at exercise date of the options that were granted as part of remuneration and were exercised during the year
has been determined as the intrinsic value of the options at that date.
Equity instruments held by key management personnel
Share holdings
The numbers of shares in the Company held during the financial year by each director of Duketon Mining Limited and other
key management personnel of the Company, including their personally related parties, are set out below. There were no shares
granted during the reporting period as compensation.
2024
Acquired
during the
year on the
exercise of
options
Balance at
start of the
year
Other
changes
during the
year
Balance at
end of the
year
Directors of Duketon Mining Limited
Ordinary shares
Seamus Cornelius
Stuart Fogarty
Heath Hellewell
7,834,396
1,796,231
723,115
-
139,534
-
-
-
-
7,834,396
1,935,765
723,115
Option holdings
The numbers of options over ordinary shares in the Company held during the financial year by each director of Duketon Mining
Limited and other key management personnel of the Company, including their personally related parties, are set out below:
2024
Balance at
start of the
year
Granted as
compen-
sation
Exercised
Other
changes
Balance at
end of the
year
Vested and
exercisable Unvested
Directors of Duketon Mining Limited
Seamus Cornelius
Stuart Fogarty
Heath Hellewell
2,000,000
6,000,000
2,000,000
-
-
-
-
(2,000,000)
-
-
-
-
2,000,000
4,000,000
2,000,000
2,000,000
4,000,000
2,000,000
-
-
-
Loans to key management personnel
There were no loans to key management personnel during the year.
End of audited Remuneration Report
27
Directors’ Report (Cont’d)
DIRECTORS’ MEETINGS
The number of meetings of the Company’s Board of Directors held during the year ended 30 June 2024 and the number of
meetings attended by each Director were:
Directors Meetings
Audit Committee
Meetings
Total
Available
Attended
Total
Available
Attended
Remuneration
Committee Meetings
Attended
Total
Available
Seamus Cornelius
Stuart Fogarty
Heath Hellewell
5
5
5
5
5
5
2
2
2
2
1
2
1
1
1
1
1
1
SHARES UNDER OPTION
Unissued ordinary shares
Unissued ordinary shares of Duketon Mining Limited under option at the date of this report are as follows:
Date options issued
Expiry date
Exercise price (cents)
Number of options
29 November 2019
30 November 2020
2 March 2021
24 November 2021
30 November 2022
16 December 2022
28 June 2024
28 November 2024
26 November 2025
17 February 2026
19 November 2026
29 November 2027
30 November 2027
31 May 2029
21.4
28.8
36.0
48.0
50.8
42.5
16.0
Total number of options outstanding at the date of this report
2,250,000
2,250,000
410,000
2,250,000
2,000,000
410,000
510,000
10,080,000
No option holder has any right under the options to participate in any other share issue of the Company or any other entity.
No options were granted to the directors or any of the five highest remunerated officers of the Company since the end of the
financial year.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility
on behalf of the company for all or any part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of
the Corporations Act 2001.
INSURANCE OF DIRECTORS AND OFFICERS
During the year, the Company has paid a premium in respect of Directors’ and Executive Officers’ insurance. The contract
contains a prohibition on disclosure of the amount of the premium and the nature of the liabilities under the policy. The liabilities
insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the officers
in their capacity as officers of the Company and any other payments arising from liabilities incurred by the officers in connection
with such proceedings. This does not include such liabilities that arise from conduct involving a wilful breach of duty by the
officers or the improper use by the officers of their position or of information to gain advantage for themselves or someone
else or to cause detriment to the Company.
NON-AUDIT SERVICES
There were no non-audit services provided by the entity's auditor, Hall Chadwick WA Audit Pty Ltd or associated entities during
the year ended 30 June 2024.
28
Directors’ Report (Cont’d)
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 on
page 30.
Signed in accordance with a resolution of the directors.
Stuart Fogarty
Managing Director
Perth, 25 September 2024
29
To the Board of Directors
AUDITOR’S
CORPORATIONS ACT 2001
INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
As lead audit director for the audit of the financial statements of Duketon Mining Ltd for the financial year ended
30 June 2024, I declare that to the best of my knowledge and belief, there have been no contraventions of:
•
•
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.
Yours faithfully,
HALL CHADWICK WA AUDIT PTY LTD
MARK DELAURENTIS CA
Director
Dated this 25th day of September 2024
Perth, Western Australia
Corporate Governance Statement
Duketon Mining Limited and the Board are committed to achieving and demonstrating the highest standards of corporate
governance. Duketon Mining Limited has reviewed its corporate governance practices against the Corporate Governance
Principles and Recommendations (4th edition) published by the ASX Corporate Governance Council.
The 2024 Corporate Governance Statement was approved by the Board on 25 September 2024 and is current as at 25
September 2024. A description of the Company’s current corporate governance practices is set out in the Company’s
Corporate Governance Statement which can be viewed at www.duketonmining.com.au.
31
Statement of Profit or Loss and Other Comprehensive
Income
FOR THE YEAR ENDED 30 JUNE 2024
Notes
Company
2024
$
2023
$
REVENUE
Interest
Profit on sale of tenements
Fair value gains on financial assets at fair value through the profit or
loss
4
537,553
-
356,394
490,000
-
1,300,811
EXPENDITURE
Administration expenses
Depreciation expense
Employee benefits expenses
Exploration expenditure
Fair value losses on financial assets at fair value through the profit or
loss
Finance costs
Share based payment expense
LOSS BEFORE INCOME TAX
INCOME TAX BENEFIT
TOTAL COMPREHENSIVE LOSS FOR THE YEAR ATTRIBUTABLE
TO THE OWNERS OF DUKETON MINING LIMITED
Basic and diluted loss per share (cents per share)
10, 11
23
6
22
(391,551)
(67,209)
(423,746)
(1,419,417)
(1,658,651)
(1,064)
(52,868)
(360,143)
(72,903)
(392,789)
(4,510,784)
-
(3,262)
(508,742)
(3,476,953)
(3,701,418)
-
842,933
(3,476,953)
(2,858,485)
(2.8)
(2.3)
The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.
32
Statement of Financial Position
AS AT 30 JUNE 2024
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Financial assets at fair value through profit or loss
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Receivables
Plant and equipment
Right-of-use assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Lease liabilities
Employee benefit obligations
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Employee benefit obligations
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Notes
Company
2024
$
2023
$
7
8
9
10
11
12
11
10,619,448
103,395
1,711,436
12,434,279
12,474,449
172,108
3,656,380
16,302,937
37,274
80,098
-
117,372
37,274
106,031
32,220
175,525
12,551,651
16,478,462
161,194
-
205,624
366,818
1,591
1,591
635,857
32,453
185,215
853,525
17,610
17,610
368,409
871,135
12,183,242
15,607,327
13
14(a)
14(b)
24,099,875
1,473,943
(13,390,576)
12,183,242
23,964,748
1,556,202
(9,913,623)
15,607,327
The above Statement of Financial Position should be read in conjunction with the accompanying notes.
33
Statement of Changes in Equity
FOR THE YEAR ENDED 30 JUNE 2024
Notes
Contributed
Equity
$
Options
Reserve
$
Accumulated
Losses
$
Total
$
BALANCE AT 1 JULY 2022
Loss for the year
TOTAL COMPREHENSIVE LOSS
23,944,748
-
-
1,067,460
-
-
(7,055,138)
(2,858,485)
(2,858,485)
17,957,070
(2,858,485)
(2,858,485)
TRANSACTIONS WITH OWNERS IN THEIR
CAPACITY AS OWNERS
Shares issued during the year
Employee and consultant options
13
14(a)
20,000
-
-
488,742
-
-
20,000
488,742
BALANCE AT 30 JUNE 2023
Loss for the year
TOTAL COMPREHENSIVE LOSS
23,964,748
1,556,202
(9,913,623)
15,607,327
-
-
-
-
(3,476,953)
(3,476,953)
(3,476,953)
(3,476,953)
TRANSACTIONS WITH OWNERS IN THEIR
CAPACITY AS OWNERS
Shares issued during the year
Employee and consultant options
13
14(a)
135,127
-
(112,400)
30,141
-
-
22,727
30,141
BALANCE AT 30 JUNE 2024
24,099,875
1,473,943
(13,390,576)
12,183,242
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.
34
Statement of Cash Flows
FOR THE YEAR ENDED 30 JUNE 2024
Notes
Company
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received
Interest paid
Payments to suppliers and employees
Expenditure on mining interests
Income taxes refunded
Proceeds from disposal of financial assets at fair value through profit or
loss
Payments for financial assets at fair value through profit or loss
NET CASH OUTFLOW FROM OPERATING ACTIVITIES
21
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for plant and equipment
NET CASH OUTFLOW FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Payments for small parcel roundup
Principal elements of lease payments
NET CASH OUTFLOW FROM FINANCING ACTIVITIES
2024
$
2023
$
523,547
(1,064)
(781,403)
(1,840,370)
-
286,293
-
(1,812,997)
(9,056)
(9,056)
(495)
(32,453)
(32,948)
315,496
(3,262)
(710,921)
(4,451,394)
842,933
488,276
(150,024)
(3,668,896)
(53,425)
(53,425)
-
(32,323)
(32,323)
NET DECREASE IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents at the beginning of the financial year
CASH AND CASH EQUIVALENTS AT THE END OF THE
FINANCIAL YEAR
(1,855,001)
12,474,449
(3,754,644)
16,229,093
7
10,619,448
12,474,449
The above Statement of Cash Flows should be read in conjunction with the accompanying notes.
35
Notes to the Financial Statements
1. SUMMARY OF MATERIAL ACCOUNTING POLICIES
The material accounting policies adopted in the preparation of the financial statements are set out below. These policies have
been consistently applied to all the years presented, unless otherwise stated. The financial statements are for the Company
consisting of Duketon Mining Limited. The financial statements are presented in Australian currency. Duketon Mining Limited
is a company limited by shares, domiciled and incorporated in Australia. The financial statements were authorised for issue
by the directors on 25 September 2024. The directors have the power to amend and reissue the financial statements.
(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 and the Corporations Act 2001. Duketon Mining Limited
is a for-profit entity for the purpose of preparing the financial statements.
(i) Compliance with IFRS
The financial statements of Duketon Mining Limited also comply with International Financial Reporting Standards (IFRS) as
issued by the International Accounting Standards Board (IASB).
(ii) New and amended standards adopted by the Company
The Company has adopted all the new, revised or amending Accounting Standards and Interpretations issued by the AASB
that are relevant to its operations and effective for the current annual reporting period. The Company did not have to change
its accounting policies or make retrospective adjustments as a result of adopting these standards.
(iii) New standards and interpretations not yet adopted
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2024 reporting
periods and have not been early adopted by the Company. The Company’s assessment of the impact of these new standards
and interpretations is that they are not expected to have a material impact on the entity in the current or future reporting periods
and on foreseeable future transactions.
(iv) Historical cost convention
These financial statements have been prepared under the historical cost convention, except for certain financial assets and
liabilities measured at fair value.
(b) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the Managing Director.
(c) Revenue recognition
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial assets.
(d) Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be
received, and the Company will comply with all attached conditions.
(e) Income tax
The income tax expense or revenue for the year is the tax payable on the current year’s taxable income based on the applicable
income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the
reporting period in the countries where the Company operates and generates taxable income. Management periodically
evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation
and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Company measures
its tax balances either based on the most likely amount or the expected value, depending on which method provides a better
prediction of the resolution of the uncertainty.
36
Notes to the Financial Statements (Cont’d)
1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (Cont’d)
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred income tax is
not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination
that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using
tax rates (and laws) that have been enacted or substantively enacted by the reporting date and are expected to apply when
the related deferred income tax asset is realised, or the deferred income tax liability is settled.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of
investments in controlled entities where the parent entity is able to control the timing of the reversal of the temporary differences
and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities
and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where
the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle
the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly
in equity, respectively.
(f) Leases
The Company leased office premises with a three-year term that commenced on 1 July 2021. Upon commencement of the
lease the Company recognised a lease liability for this lease, measured at the present value of the remaining lease payments,
discounted using the Company’s incremental borrowing rate, being 6.5%. Following expiry of the lease on 30 June 2024 the
tenancy has been maintained on a monthly basis, with the rental payments recognised on a straight-line basis as an expense
in profit or loss.
Where the Company is lessee, the Company recognises a right-of-use asset and a corresponding liability at the date at which
the lease asset is available for use by the Company. Each lease payment is allocated between the liability and the finance
cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on
the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset’s useful
life and the lease term on a straight-line basis.
Liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of
the following lease payments:
•
•
•
•
fixed payments (including in-substance fixed payments), less any lease incentives receivable;
variable lease payments that are based on an index or a rate;
amounts expected to be payable by the lessee under residual value guarantees;
the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
•
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the lessee’s
incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain
an asset of similar value in a similar economic environment with similar terms and conditions.
The Company’s office lease agreement contains an option for the lessee to extend for a further two-year term.
Right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before
commencement date less any lease incentives received, and any initial direct costs.
Where the terms of a lease require the Company to restore the underlying asset, or the Company has an obligation to dismantle
and remove a leased asset, a provision is recognised and measured in accordance with AASB 137. To the extent that the
costs relate to a right-of-use asset, the costs are included in the related right-of-use asset.
Where leases have a term of less than 12 months or relate to low value assets the Company may apply exemptions in AASB
16 to not capitalise any such leases and instead recognise the lease payments on a straight-line basis as an expense in profit
or loss.
37
Notes to the Financial Statements (Cont’d)
1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (Cont’d)
(g) Impairment of assets
Assets are reviewed 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
that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
(h) Cash and cash equivalents
For statement of cash flows presentation purposes, cash and cash equivalents includes cash on hand, deposits held at call
with financial institutions and other short-term highly liquid investments with original maturities of three months or less that are
readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value, and bank
overdrafts.
(i) Financial assets
(i) Classification
The Company classifies its financial assets in the following measurement categories:
•
Those to be measured subsequently at fair value (either through OCI or through profit or loss); and
Those to be measured at amortised cost.
•
The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the
cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity
instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the
time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI).
(ii) Recognition and derecognition
Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the Company commits
to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets
have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership.
(iii) Measurement
At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair
value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at FVPL are expensed in profit or loss.
Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are
solely payment of principal and interest.
Debt instruments
Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the
cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt
instruments:
•
•
Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortised cost. Interest income from these financial assets is
included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is
recognised directly in profit or loss and presented in other income or expenses. Impairment losses are presented as a
separate line item in the statement of profit or loss.
FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the
assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the
carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and
foreign exchange gains and losses which are recognised in profit or loss. When the financial asset is derecognised,
the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in
other income or expenses. Interest income from these financial assets is included in finance income using the effective
interest rate method. Foreign exchange gains and losses are presented in other income or expenses and impairment
losses are presented as a separate line item in the statement of profit or loss.
38
Notes to the Financial Statements (Cont’d)
1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (Cont’d)
•
FVPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL. A gain or loss on a debt
investment that is subsequently measured at FVPL is recognised in profit or loss and presented net within other income
or expenses in the period in which it arises.
Equity instruments
The Company subsequently measures all equity investments at fair value. Where the Company’s management has elected to
present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains
and losses to profit or loss following the derecognition of the investment. Dividends from such investments continue to be
recognised in profit or loss as other income when the Company’s right to receive payment is established.
Changes in the fair value of financial assets at FVPL are recognised in other income or expenses in the statement of profit or
loss as applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not
reported separately from other changes in fair value.
(iv) Impairment
The Company assesses on a forward-looking basis the expected credit losses associated with its debt instruments carried at
amortised cost and FVOCI. The impairment methodology depends on whether there has been a significant increase in credit
risk.
(j) Plant and equipment
All plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly
attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it
is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be
measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced.
All other repairs and maintenance are charged to the Statement of Comprehensive Income during the reporting period in which
they are incurred.
Depreciation of plant and equipment is calculated using the straight-line method to allocate their cost or revalued amounts,
net of their residual values, over their estimated useful lives or, in the case of leasehold improvements and certain leased plant
and equipment, the shorter lease term. The rates used range from 10% to 36% per annum.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater
than its estimated recoverable amount (note 1(g)).
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the
statement of comprehensive income. When revalued assets are sold, it is Company’s policy to transfer the amounts included
in other reserves in respect of those assets to retained earnings.
(k) Exploration and evaluation costs
Exploration and evaluation costs are expensed as they are incurred.
(l) Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year which
are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the
reporting date. They are recognised initially at fair value and subsequently at amortised cost. The amounts are unsecured,
non-interest bearing and are paid on normal commercial terms.
(m) Employee benefits
(i) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits, and annual leave expected to be settled within 12 months
of the reporting date in respect of employees’ services up to the reporting date are measured at the amounts expected to be
paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the statement of
financial position.
39
Notes to the Financial Statements (Cont’d)
1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (Cont’d)
(ii) Other long-term employee benefit obligations
The Company also has liabilities for long service leave that are not expected to be settled wholly within 12 months after the
end of the period in which the employees render the related service. These obligations are therefore measured as the present
value of expected future payments to be made in respect of services provided by employees up to the end of the reporting
period using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of
employee departures and periods of service. Expected future payments are discounted using market yields at the end of the
reporting period of high-quality corporate bonds with terms and currencies that match, as closely as possible, the estimated
future cash outflows. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are
recognised in profit or loss.
The obligations are presented as current employee benefit obligations in the statement of financial position if the entity does
not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when
the actual settlement is expected to occur.
(iii) Share-based payments
The Company provides benefits to employees (including directors) of the Company in the form of share-based payment
transactions, whereby employees render services in exchange for shares or rights over shares (‘equity-settled transactions’).
The cost of these equity-settled transactions with employees is measured by reference to the fair value at the date at which
they are granted. The fair value is determined by an internal valuation using a Black-Scholes option pricing model.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which
the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award
(‘vesting date’).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects (i) the
extent to which the vesting period has expired and (ii) the number of options that, in the opinion of the directors of the Company,
will ultimately vest. This opinion is formed based on the best available information at balance date. No adjustment is made for
the likelihood of market performance conditions being met as the effect of these conditions is included in the determination of
fair value at grant date.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market
condition.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not
yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award and
designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a
modification of the original award.
(n) Issued capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown
in equity as a deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or
options for the acquisition of a business are not included in the cost of the acquisition as part of the purchase consideration.
(o) Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing the profit or loss attributable to owners of the Company, excluding any costs
of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the
financial year, adjusted for bonus elements in ordinary shares issued during the year.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
40
Notes to the Financial Statements (Cont’d)
1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (Cont’d)
(p) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of
the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the taxation authority is included with other receivables or payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.
(q) Critical accounting judgements, estimates and assumptions
The preparation of these financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a
higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial
statements are:
Environmental issues
Balances disclosed in the financial statements and notes thereto are not adjusted for any pending or enacted environmental
legislation, and the directors understanding thereof. At the current stage of the Company’s development and its current
environmental impact the directors believe such treatment is reasonable and appropriate.
Taxation generally
Balances disclosed in the financial statements and the notes thereto related to taxation are based on the best estimates of the
directors. These estimates consider both the financial performance and position of the Company as they pertain to current
income taxation legislation, and the directors understanding thereof. No adjustment has been made for pending or future
taxation legislation. The current income tax position represents the directors’ best estimate, pending an assessment by the
Australian Taxation Office.
Share based payment transactions
The Company measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined by an internal valuation using a Black-Scholes
option pricing model.
41
Notes to the Financial Statements (Cont’d)
2. FINANCIAL RISK MANAGEMENT
The Company’s activities expose it to a variety of financial risks: market risk (including currency risk, interest rate risk and price
risk), credit risk and liquidity risk. The Company’s overall risk management program focuses on the unpredictability of financial
markets and seeks to minimise potential adverse effects on the financial performance of the Company.
Risk management is carried out by the full Board of Directors as the Company believes that it is crucial for all board members
to be involved in this process. Senior management, as required, has responsibility for identifying, assessing, treating and
monitoring risks and reporting to the board on risk management.
(a) Market risk
(i) Foreign exchange risk
As all operations are currently within Australia, the Company is not exposed to any material foreign exchange risk.
(ii) Price risk
The Company is exposed to equity securities price risk. This arises from investments held by the Company and classified in
the statement of financial position at fair value through the profit and loss. The Company is not exposed to commodity price
risk. At the reporting date, the Company has investments in ASX listed equity securities.
Sensitivity analysis
The Company’s equity investments are listed on the Australian Stock Exchange (ASX) and are all classified at fair value
through the profit or loss. At 30 June 2024, if the value of the equity investments held had increased/decreased by 15% with
all other variables held constant, post-tax loss for the Company would have been $256,715 lower/higher (2023: $548,457
lower/higher) as a result of gains/losses on the fair value of the financial assets.
(iii) Interest rate risk
The Company is exposed to movements in market interest rates on cash and cash equivalents. The Company’s policy is to
monitor the interest rate yield curve out to six months to ensure a balance is maintained between the liquidity of cash assets
and the interest rate return. The entire balance of cash and cash equivalents for the Company of $10,619,448 (2023:
$12,474,449) is subject to interest rate risk. The proportional mix of floating interest rates and fixed rates to a maximum of six
months fluctuate during the year depending on current working capital requirements. The weighted average interest rate
received on cash and cash equivalents by the Company was 4.8% (2023: 2.6%).
Sensitivity analysis
At 30 June 2024, if interest rates had changed by +/- 100 basis points from the weighted average rate for the year with all
other variables held constant, post-tax loss for the Company would have been $112,371 lower/higher (2023: $136,831
lower/higher) as a result of higher/lower interest income from cash and cash equivalents.
(b) Credit risk
The Company has no significant concentrations of credit risk. The maximum exposure to credit risk at balance date is the
carrying amount (net of provision for impairment) of those assets as disclosed in the statement of financial position and notes
to the financial statements.
As the Company does not presently have any debtors, lending, significant stock levels or any other credit risk, a formal credit
risk management policy is not maintained. All surplus cash holdings of the Company are currently invested with AA- rated
financial institutions.
(c) Liquidity risk
The Company manages liquidity risk by continuously monitoring forecast and actual cash flows and ensuring sufficient cash
and marketable securities are available to meet the current and future commitments of the Company. Due to the nature of the
Company’s activities, being mineral exploration, the Company does not have ready access to credit facilities, with the primary
source of funding being equity raisings. The Board of Directors constantly monitor the state of equity markets in conjunction
with the Company’s current and future funding requirements, with a view to initiating appropriate capital raisings as required.
The financial liabilities of the Company are confined to trade and other payables as disclosed in the Statement of financial
position. All trade and other payables are non-interest bearing and due within 12 months of the reporting date.
42
Notes to the Financial Statements (Cont’d)
2. FINANCIAL RISK MANAGEMENT (Cont’d)
(d) Fair value estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure
purposes. The equity investments held by the Company are classified at fair value through profit or loss. The market value of
all equity investments represents the fair value based on quoted prices on active markets (ASX) as at the reporting date without
any deduction for transaction costs. These investments are classified as level 1 financial instruments.
The carrying amounts and estimated fair values of financial assets and financial liabilities are as follows:
Financial Assets
Cash and cash equivalents
Trade and other receivables
Financial assets at fair value through profit or loss
Non-current receivables
Total Financial Assets
Financial Liabilities
Trade and other payables
Total Financial Liabilities
Company
2024
$
2023
$
10,619,448
103,395
1,711,436
37,274
12,471,553
12,474,449
172,108
3,656,380
37,274
16,340,211
161,194
161,194
635,857
635,857
The methods and assumptions used to estimate the fair value of financial instruments are outlined below:
Cash
The carrying amount is fair value due to the liquid nature of these assets.
Receivables/Payables
Due to the short-term nature of the current financial rights and obligations, their carrying amounts are estimated to represent
their fair values. The fair value of the non-current receivable is also not significantly different from its carrying amount.
Fair value measurements of financial assets
The carrying values of financial assets and liabilities of the Company approximate their fair values. Fair values of financial
assets and liabilities have been determined for measurement and / or disclosure purposes.
Fair value hierarchy
The Company classifies assets and liabilities carried at fair value using a fair value hierarchy that reflects the significance of
the inputs used in determining that value. The following table analyses financial instruments carried at fair value by the
valuation method. The different levels in the hierarchy have been defined as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2:
inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(as prices) or indirectly (derived from prices); and
inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Level 3:
Level 1
$
Level 2
$
Level 3
$
Total
$
30 June 2024
Financial assets at fair value through profit or loss
Total as at 30 June 2024
30 June 2023
Financial assets at fair value through profit or loss
Total as at 30 June 2023
1,711,436
1,711,436
3,656,380
3,656,380
43
-
-
-
-
-
-
-
-
1,711,436
1,711,436
3,656,380
3,656,380
Notes to the Financial Statements (Cont’d)
3. SEGMENT INFORMATION
Industry and geographical segment
The Company operates in one segment, being the mining exploration sector in Australia.
In determining operating segments, the Company has had regard to the information and reports the Managing Director uses
to make strategic decisions regarding resources. The Managing Director is considered to be the chief operating decision maker
and is empowered by the Board of Directors to allocate resources and assess the performance of the Company.
4. REVENUE AND OTHER INCOME
Revenue
Other revenue
Interest from financial institutions
5. EXPENSES
Company
2024
$
2023
$
537,553
356,394
Profit or loss before income tax includes the following specific
expenses:
Superannuation expense
72,150
68,079
6.
INCOME TAX
(a) Income tax benefit
Current tax on profits for the year
Adjustments for current tax of prior periods
Decrease in deferred tax liabilities
Income tax benefit
-
-
-
-
-
(842,933)
-
(842,933)
(b) Numerical reconciliation of income tax benefit to prima facie
tax payable
Loss from continuing operations before income tax expense
(3,476,953)
(3,701,418)
Prima facie tax benefit at the Australian tax rate of 30% (2023: 25%)
Tax effect of amounts which are not deductible in calculating taxable
income:
Share-based payments
Other
Movements in unrecognised temporary differences
Adjustments for current tax of prior periods
Income tax benefit
(1,043,086)
(925,354)
15,860
315
(1,026,911)
1,026,911
-
-
127,186
180
(797,988)
797,988
(842,933)
(842,933)
44
Notes to the Financial Statements (Cont’d)
6.
INCOME TAX (Cont’d)
(c) Unrecognised temporary differences
(i) Deferred tax assets at 30% (2023: 25%)
Accrued expenses
Employee benefits
Financial assets at fair value through profit or loss
Tax losses
Total
(ii) Deferred tax liabilities at 30% (2023: 25%)
Financial assets at fair value through profit or loss
Other
Total
(iii) Offset deferred tax provisions
Deferred tax liabilities
Deferred tax assets (portion off-set deferred tax liabilities)
Unused tax losses for which no deferred tax asset has been
recognised
Notes
Company
2024
$
2023
$
9,450
63,860
24,201
1,916,748
2,014,259
-
9,429
9,429
(9,429)
9,429
-
7,538
50,706
-
1,291,995
1,350,239
478,575
8,477
487,052
(487,052)
487,052
-
Potential deferred tax assets attributable to tax losses carried forward have not been brought to account at 30 June 2024
because the directors do not believe it is appropriate to regard realisation of the deferred tax assets as probable at this point
in time. These benefits will only be obtained if:
(i)
the Company derives future assessable income of nature and of an amount sufficient to enable the benefits to be
utilised;
the Company continues to comply with the conditions for deductibility imposed by law; and
no changes in income tax legislation adversely affect the Company in utilising the benefits.
(ii)
(iii)
In April 2017, the Australian Government enacted legislation which reduces the corporate rate for small and medium business
(base rate) entities from 30% to 25% over the next decade. For the 2017 financial year the corporate tax rate reduced to 27.5%
for small business entities with turnover less than $10 million. This turnover threshold progressively increased until it reached
$50 million in the 2020 financial year. For the 2021 financial year, the tax rate decreased to 26% and then 25% for the 2022
and later financial years. Duketon Mining Limited did not satisfy the criteria to be a base rate entity for the 2024 financial year
with the full corporate rate of 30% applied. Duketon Mining Limited did satisfy the criteria to be a base rate entity for the 2023
financial year for which the base rate of 25% was applied.
7. CURRENT ASSETS - CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Short-term deposits
Cash and cash equivalents as shown in the statement of financial
position and the statement of cash flows
173,512
10,445,936
2,444,449
10,030,000
10,619,448
12,474,449
Cash at bank earns interest at floating rates based on daily bank deposit rates.
Short-term deposits are made for varying periods of between one day and three months depending on the immediate cash
requirements of the Company and earn interest at the respective short-term deposit rates.
8. CURRENT ASSETS - TRADE AND OTHER RECEIVABLES
Trade and other receivables
103,395
172,108
45
Notes to the Financial Statements (Cont’d)
Company
2024
$
2023
$
9. CURRENT ASSETS – FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Australian listed equity securities
1,711,436
3,656,380
Changes in fair values of financial assets at fair value through profit or loss are disclosed directly on the face of the statement
of profit or loss and other comprehensive income.
10. NON-CURRENT ASSETS - PLANT AND EQUIPMENT
Plant and equipment
Cost
Accumulated depreciation
Net book amount
Plant and equipment
Opening net book amount
Additions
Depreciation charge
Closing net book amount
11. LEASES
(i) Amounts recognised in the Statement of Financial Position
The statement of financial position shows the following amounts
relating to leases:
Right-of-use assets
Right-of-use assets
Accumulated Depreciation of Right of Use Asset
Carrying value of right-of-use-asset
Lease liabilities
Current lease liabilities
Non-current lease liabilities
Total lease liabilities
290,115
(210,017)
80,098
106,031
9,056
(34,989)
80,098
96,418
(96,418)
-
-
-
-
281,059
(175,028)
106,031
93,366
53,425
(40,760)
106,031
96,418
(64,198)
32,220
32,453
-
32,453
(ii) Amounts recognised in the Statement of Profit or Loss
The statement of profit or loss and other comprehensive income shows
the following amounts relating to leases:
Depreciation charge for right-of-use assets
Interest expense (included in finance costs)
32,220
1,064
32,143
3,262
The Company leased office premises with a three-year term that commenced on 1 July 2021.
12. CURRENT LIABILITIES - TRADE AND OTHER PAYABLES
Trade payables
Other payables and accruals
Funds held on trust for unmarketable parcel roundup
72,748
64,907
23,539
161,194
549,182
62,641
24,034
635,857
46
Notes to the Financial Statements (Cont’d)
13. ISSUED CAPITAL
(a) Share capital
2024
2023
Notes
Number of
shares
$
Number of
shares
$
Ordinary shares fully paid
13(b), 13(d) 122,411,581
24,099,875
122,090,229
23,964,748
Total issued capital
122,411,581
24,099,875
122,090,229
23,964,748
(b) Movements in ordinary share capital
Beginning of the financial year
Issued during the year:
End of the financial year
Issued upon cashless exercise of $0.20 options (1)
Issued as part of employee remuneration (2)
122,090,229
23,964,748
122,035,435
23,944,748
139,534
181,818
122,411,581
112,400
22,727
24,099,875
-
54,794
122,090,229
-
20,000
23,964,748
(1)
(2)
On 28 November 2023 the managing director exercised 2,000,000 options utilising the cashless exercise facility
approved at the AGM on 19 November 2021. An amount of $112,400 was recognised upon the original issue of the
options and has been transferred from the share-based payments reserve to issued capital.
On 11 April 2024, the Company issued 181,818 ordinary shares (8 December 2022, 54,794 ordinary shares) to an
employee as a reward and incentive. The closing price of $0.125 (2023: $0.365) on the date of issue was the grant
date fair value of the shares issued.
(c) Movements in options on issue
Beginning of the financial year
Issued, exercisable at $0.508 on or before 29 November 2027
Issued, exercisable at $0.425 on or before 30 November 2027
Issued, exercisable at $0.16 on or before 31 May 2029
Exercised at $0.20, expiring 28 November 2023
End of the financial year
Number of options
2023
2024
11,570,000
-
-
510,000
(2,000,000)
10,080,000
9,160,000
2,000,000
410,000
-
-
11,570,000
(d) Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to
the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and
upon a poll each share is entitled to one vote.
Ordinary shares have no par value, and the Company does not have a limited amount of authorised capital.
47
Notes to the Financial Statements (Cont’d)
Company
2024
$
2023
$
13. ISSUED CAPITAL (Cont’d)
(e) Capital risk management
The Company’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they
may continue to provide returns for shareholders and benefits for other stakeholders.
Due to the nature of the Company’s activities, being mineral exploration, the Company does not have ready access to credit
facilities, with the primary source of funding being equity raisings. Therefore, the focus of the Company’s capital risk
management is the current working capital position against the requirements of the Company to meet exploration programmes
and corporate overheads. The Company’s strategy is to ensure appropriate liquidity is maintained to meet anticipated
operating requirements, with a view to initiating appropriate capital raisings as required. The working capital position of the
Company at 30 June 2024 and 30 June 2023 are as follows:
Cash and cash equivalents
Trade and other receivables
Financial assets at fair value through profit or loss
Trade and other payables
Lease liabilities (current)
Employee benefit obligations (current)
Working capital position
14. RESERVES AND ACCUMULATED LOSSES
(a) Reserves
Share-based payments reserve
Balance at beginning of year
Employee and consultant options expense
Transferred to share capital upon exercise of options
Balance at end of year
(b) Accumulated losses
Balance at beginning of year
Net loss for the year
Balance at end of year
10,619,448
103,395
1,711,436
(161,194)
-
(205,624)
12,067,461
12,474,449
172,108
3,656,380
(635,857)
(32,453)
(185,215)
15,449,412
1,556,202
30,141
(112,400)
1,473,943
1,067,460
488,742
-
1,556,202
(9,913,623)
(3,476,953)
(13,390,576)
(7,055,138)
(2,858,485)
(9,913,623)
(c) Nature and purpose of reserves
Share-based payments reserve
The share-based payments reserve is used to recognise the fair value of shares and options granted and currently on issue.
15. DIVIDENDS
No dividends were paid during the financial year. No recommendation for payment of dividends has been made.
48
Notes to the Financial Statements (Cont’d)
16. RELATED PARTY TRANSACTIONS
(a) Key management personnel compensation
Short-term benefits
Post-employment benefits
Other long-term benefits
Share-based payments
Company
2024
$
2023
$
376,876
37,387
6,664
-
420,927
377,542
35,130
9,825
396,000
818,497
Detailed remuneration disclosures are provided in the remuneration report on pages 25 to 27.
(b) Loans to related parties
There were no loans to related parties, including key management personnel, during the year.
17. REMUNERATION OF AUDITORS
During the year the following fees were paid or payable for services provided by the auditor of the Company, its related
practices and non-related audit firms:
Auditors of the Company – Hall Chadwick WA Audit Pty Ltd and
related network forms
Audit and review of financial reports
35,019
33,000
18. CONTINGENCIES
There are no material contingent liabilities of the Company at balance date. The Company has contingent assets at balance
date resulting from the sale of gold tenements to Regis Resources Limited (“Regis”) during the 2020 financial year.
Gold tenements sale to Regis
Under the terms of the sale agreement with Regis to sell a package of tenements from the Duketon Project the following
contingent consideration is outstanding:
1)
Mineral resource contingent payment – $2.5m in cash payable on the first occasion that Regis announces to the ASX
mineral resources totalling more than 250,000 ounces of gold (Measured, Indicated or Inferred) on one or more of the
sale tenements.
Gold production contingent payment – $2.5m in cash payable on the first to occur of the following:
a)
first commercial gold production within the sale tenements (and not being an extension into the tenements of
Regis’ existing mining operation at Petra); or
in the case of an extension into the sale tenements of Regis’ existing mining operation at Petra, the mining of
greater than 5,000 ounces of gold from the sale tenements.
2)
b)
19. COMMITMENTS
Exploration commitments
The Company has certain commitments to meet minimum expenditure requirements on the mineral exploration assets it has
an interest in. Outstanding exploration commitments are as follows:
within one year
later than one year but not later than five years
later than five years
526,260
2,208,020
576,900
3,311,180
587,260
1,986,080
769,200
3,342,540
49
Notes to the Financial Statements (Cont’d)
Company
2024
$
2023
$
20. EVENTS OCCURRING AFTER THE REPORTING DATE
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly
affect the operations of the Company, the results of those operations, or the state of affairs of the Company in future financial
periods.
21. CASH FLOW INFORMATION
(a) Reconciliation of net loss after income tax to net cash outflow from operating activities
Net loss for the year
Non-Cash Items
Share-based payment expense
Depreciation expense
Fair value of financial assets received on sale of tenements
Change in operating assets and liabilities
Decrease/(increase) in trade and other receivables
Decrease/(increase) in financial assets at fair value through profit or loss
(Decrease)/increase in trade and other payables
Increase in employee benefit obligations
Net cash outflow from operating activities
68,713
1,944,944
(474,168)
4,390
(1,812,997)
52,868
67,209
-
(3,476,953)
(2,858,485)
508,742
72,903
(490,000)
(76,838)
(962,559)
95,832
41,509
(3,668,896)
(b) Non-cash investing and financing activities
On 11 April 2024, the Company issued 181,818 ordinary shares (8 December 2022, 54,794 ordinary shares) to an employee
as a reward and incentive, for a value of $22,727 (2023: $20,000). This amount is included in ‘share-based payments expense’
on the statement of profit or loss and other comprehensive income of the Company.
22. EARNINGS PER SHARE
(a) Reconciliation of earnings used in calculating earnings per
share
Loss attributable to the owners of the Company used in calculating
basic and diluted earnings per share
(b) Weighted average number of shares used as the denominator
(3,476,953)
(2,858,485)
No. of Shares
2024
No. of Shares
2023
Weighted average number of ordinary shares used as the denominator
in calculating basic and diluted earnings per share
122,211,937
122,066,060
(c) Information on the classification of options
As the Company has made a loss for the year ended 30 June 2024, all options on issue are considered antidilutive and have
not been included in the calculation of diluted earnings per share. The options currently on issue could potentially dilute basic
earnings per share in the future.
50
Notes to the Financial Statements (Cont’d)
23. SHARE-BASED PAYMENTS
a) Employee and consultant options
The Company provides benefits to employees (including directors), contractors and consultants of the Company in the form
of share-based payment transactions, whereby employees, contractors and consultants render services in exchange for
options to acquire ordinary shares. The options granted and on issue at 30 June 2024 have exercise prices ranging from $0.16
to $0.508 and expiry dates ranging from 28 November 2024 to 31 May 2029.
Options granted carry no dividend or voting rights. When exercisable, each option is convertible into one ordinary share of the
Company with full dividend and voting rights.
The weighted average fair value of the options granted during the 2024 financial year was 5.9 cents (2023: 20.3 cents). The
fair value was calculated by using the Black-Scholes European Option Pricing Model applying the following inputs:
Weighted average exercise price (cents)
Weighted average life of the option (years)
Weighted average underlying share price (cents)
Weighted average expected share price volatility
Weighted average risk-free interest rate
Set out below are summaries of the share-based payment options granted:
2024
16.0
4.9
11.0
71.9%
4.1%
2023
49.4
5.0
35.3
76.5%
3.3%
Outstanding at the beginning of the year
Granted
Forfeited
Exercised (1)
Expired
Outstanding at year-end
Exercisable at year-end
Company
2024
2023
Weighted
average
exercise
price cents
34.1
18.0
-
20.0
-
36.0
36.0
Number of
options
9,160,000
2,410,000
-
-
-
11,570,000
11,570,000
Number of
options
11,570,000
510,000
-
(2,000,000)
-
10,080,000
10,080,000
Weighted
average
exercise
price cents
30.1
49.4
-
-
-
34.1
34.1
(1)
The weighted average share price at the date of exercise of options exercised during the year ended 30 June 2024
was $0.215. There were no options exercised during the year ended 30 June 2023.
The weighted average remaining contractual life of share options outstanding at the end of the financial year was 2.1 years
(2023: 2.5 years), with exercise prices ranging from $0.16 to $0.508.
b) Employee shares
On 11 April 2024, the Company issued 181,818 ordinary shares (8 December 2022, 54,794 ordinary shares) to an employee
as a reward and incentive. The closing price of $0.125 (2023: $0.365) on the date of issue was the grant date fair value of the
shares issued.
c) Expenses arising from share-based payment transactions
Total expenses arising from share-based payment transactions recognised during the period were as follows:
Company
Options issued to employees shown as share-based payments
Shares issued to employees shown as share-based payments
2024
$
30,141
22,727
52,868
2023
$
488,742
20,000
508,742
51
Consolidated Entity Disclosure Statement
Duketon Mining Limited does not have any controlled entities and is therefore not required by the Australian Accounting
Standards to prepare consolidated financial statements. Therefore, section 295(3A) of the Corporations Act 2001 does not
apply to the entity.
52
Directors’ Declaration
In the Directors’ opinion:
(a)
the financial statements and notes set out on pages 32 to 51 are in accordance with the Corporations Act 2001,
including:
(i)
(ii)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements; and
giving a true and fair view of the Company’s financial position as at 30 June 2024 and of its performance for
the financial year ended on that date;
(b)
(c)
(d)
the consolidated entity disclosure statement on page 52 is true and correct;
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable; and
a statement that the attached financial statements are in compliance with International Financial Reporting Standards
has been included in the notes to the financial statements.
The directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by section
295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
Stuart Fogarty
Managing Director
Perth, 25 September 2024
53
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DUKETON MINING LTD
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Duketon Mining Ltd (“the Company”), which comprises the statement
of financial position as at 30 June 2024, the statement of profit or loss and other comprehensive income, the
statement of changes in equity and the statement of cash flows for the year then ended, and notes to the
financial statements, including material accounting policy information, the consolidated entity disclosure
statement and the director’s declaration.
In our opinion:
a.
the accompanying financial report of the Company is in accordance with the Corporations Act 2001,
including:
(i)
giving a true and fair view of the Company’s financial position as at 30 June 2024 and of its
financial performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
b.
the financial report also complies with International Financial Reporting Standards as disclosed in Note
1.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Company in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our
audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance
with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report of the current period. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Key Audit Matter
How our audit addressed the Key Audit Matter
Financial Assets – $1,711,436
Our procedures included but were not limited to:
The Company’s financial assets disclosed in note 9
to the financial statements can be a significant asset
by value year on year based on the share price at
year end.
We do not consider financial assets to be at a high
risk of significant misstatement, however due to
materiality in the context of the financial statements
as a whole, this is considered to be an area which
had an effect on our overall strategy and allocation
• We
assessed
assets
the
subsequent measurement at fair value to
ensure consistency with AASB 9.
financial
• We agreed significant financial assets to
statements of share registry at balance date.
• We assessed the fair value of the financial
assets at the date of signing the audit report.
We assessed the appropriateness of the related
of resources in planning and completing our audit.
disclosures in the notes to the financial statements.
Exploration and Evaluation Expenditure –
Our procedures included but were not limited to:
$1,419,417
Exploration and evaluation is a key audit matter due
to:
• The significance of the balance to the
Company’s financial performance as costs
incurred are expensed.
• The
level of
in
evaluating management’s application of the
judgement
required
• Assessing management’s determination of
its areas of interest for consistency with the
definition in AASB 6 Exploration and
Evaluation of Mineral Resources (“AASB
6”);
• Assessing the Company’s rights to tenure
for a sample of tenements;
• Validating the rights of the licenses to
requirements of AASB 6 Exploration for and
Evaluation of Mineral Resources. AASB 6 is
explore held if they are expiring in the near
future or are not expected to be renewed;
an industry specific accounting standard
and
requiring
judgements,
the application of significant
industry
estimates
and
knowledge.
• Substantive testing on the expenditure
incurred to verify the accuracy of amount
recorded.
We assessed the appropriateness of the related
disclosures in the notes to the financial statements.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Company’s annual report for the year ended 30 June 2024, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error and the
consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to
fraud or error. In Note 1, the directors also state in accordance with Australian Accounting Standard AASB 101
Presentation of Financial Statements, that the financial report complies with International Financial Reporting
Standards.
In preparing the financial report, the directors are responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or has
no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report
to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Company 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.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during
our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2024.
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with s 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.
Auditor’s Opinion
In our opinion, the Remuneration Report of the Company, for the year ended 30 June 2024, complies with
section 300A of the Corporations Act 2001.
HALL CHADWICK WA AUDIT PTY LTD
MARK DELAURENTIS CA
Director
Dated this 25th day of September 2024
in Perth, Western Australia
ASX Additional Information
Additional information required by Australian Stock Exchange Ltd and not shown elsewhere in this report is as follows. The
information is current as at 26 August 2024.
(a) Distribution of equity securities
Analysis of numbers of equity security holders by size of holding:
1
1,001
5,001
10,001
100,001
- 1,000
- 5,000
- 10,000
- 100,000
and over
The number of equity security holders holding less than a marketable parcel of
securities are:
(b) Twenty largest shareholders
The names of the twenty largest holders of quoted ordinary shares are:
1
2
3
4
5
HARMANIS HOLDINGS PTY LTD
MCCUSKER HOLDINGS PTY LTD
CITICORP NOMINEES PTY LIMITED
MR LIAM RAYMOND CORNELIUS
ARGONAUT SECURITIES (NOMINEES) PTY LTD
SINO WEST ASSETS PTY LTD
JETOSEA PTY LTD
OCEANVIEW ROAD PTY LTD
MR SEAMUS IAN CORNELIUS
ZERRIN INVESTMENTS PTY LTD
GANDRIA CAPITAL PTY LTD
ZTHREE PTY LTD
PATO NEGRO PTY LTD
HARMANIS HOLDINGS PTY LTD
ELEMENT 25 LIMITED
FAIRBROTHER HOLDINGS PTY LTD
KHE SANH PTY LTD
6
7
8
9
10
11
12
13
14
15
16
17
18 WERSMAN NOMINEES PTY LTD
19
20
GANDRIA CAPITAL PTY LTD
MISS KIRSTY ELIZABETH CULVER
Ordinary Shares
Number of holders Number of shares
230
199
205
269
122
1,025
413
75,247
520,685
1,523,393
9,239,512
111,052,744
122,411,581
515,932
Listed ordinary shares
Number of shares
22,296,905
11,300,000
5,820,368
4,105,000
4,000,000
Percentage of
ordinary shares
18.21
9.23
4.75
3.35
3.27
3,409,177
3,340,655
3,200,000
2,480,800
2,300,000
2,250,000
2,202,631
1,735,765
1,500,000
1,450,000
1,300,000
1,300,000
1,110,000
1,100,000
1,060,004
77,261,305
2.79
2.73
2.61
2.03
1.88
1.84
1.80
1.42
1.23
1.18
1.06
1.06
0.91
0.90
0.87
63.12
59
ASX Additional Information (Cont’d)
(c) Substantial shareholders
The names of substantial shareholders who have notified the Company in accordance with section 671B of the Corporations
Act 2001 are:
Harmanis Holdings Pty Ltd
Seamus Cornelius
(d) Voting rights
All ordinary shares (whether fully paid or not) carry one vote per share without restriction.
(e) Unquoted securities
Number of Shares
23,796,905
7,149,723
Class
21.4 cent Options, Expiry 28 November 2024
Number of
Securities
2,250,000
Number of
Holders
4
28.8 cent Options, Expiry 26 November 2025
2,250,000
36 cent Options, Expiry 17 February 2026
410,000
42.5 cent Options, Expiry 30 November 2027
410,000
48 cent Options, Expiry 19 November 2026
2,250,000
50.8 cent Options, Expiry 29 November 2027
2,000,000
16 cent Options, Expiry 31 May 2029
510,000
4
3
3
4
3
4
Holders of 20% or more of the class
Holder Name
Pato Negro
Seamus Cornelius
Nedlands Nominees
Pato Negro
Seamus Cornelius
Nedlands Nominees
Kirsty Culver
Alan Downie
Kirsty Culver
Alan Downie
Pato Negro
Seamus Cornelius
Nedlands Nominees
Pato Negro
Seamus Cornelius
Nedlands Nominees
Kirsty Culver
Alan Downie
Number of
Securities
1,000,000
500,000
500,000
1,000,000
500,000
500,000
200,000
160,000
200,000
160,000
1,000,000
500,000
500,000
1,000,000
500,000
500,000
200,000
160,000
60
(f) Schedule of interests in mining tenements
Location
Mount Mabel
Duketon
Duketon
Duketon
Duketon
Duketon
Granite Peak
Millar Hill
Mount Mabel
Moolart North
Duketon North
Duketon North
Otways
Coolie Coolie Well
Marlborough Well
Doris
Cunyu
Doris North
Doris North
Stephens
Barlee
Barlee
North Walgoolan
Lake Barlee South
Lake Barlee South
Lake Barlee
Lake Barlee
Lake Barlee
Lake Mackay
Duketon
Duketon
Tenement
E38/1997
E38/2666
E38/2805
E38/2834
E38/2866
E38/2916
E38/3142
E38/3549
E38/3550
E38/3617
E38/3658
E38/3871 (A)
E45/6364 (A)
E45/6861 (A)
E45/6864 (A)
E52/3833
E52/3923 (A)
E52/4004
E52/4315
E59/2414
E77/2717
E77/3027 (A)
E77/3129 (A)
E77/3160 (A)
E77/3161 (A)
E77/3214 (A)
E77/3229 (A)
E77/3242 (A)
E80/5947 (A)
M38/1252
P38/4550
Percentage held / earning
100% Nickel rights only
100% Nickel rights only
100% Nickel rights only
100% Nickel rights only
100% Nickel rights only
100% Nickel rights only
100% Nickel rights only
100% Nickel rights only
100% Nickel rights only
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100% Nickel rights only
100%
61