ASX Announcement
18 OCTOBER 2023
2023 ANNUAL REPORT
Eagle Mountain Mining Limited (ASX: EM2) (Eagle Mountain, or the Company) is pleased to attach the
Annual Report for the year ending 30 June 2023.
This ASX announcement was authorised for release by the Board of Eagle Mountain Mining Limited.
For further information please contact:
Tim Mason
Chief Executive Officer
tim@eaglemountain.com.au
Mark Pitts
Company Secretary
mark@eaglemountain.com.au
Jane Morgan
Investor and Media Relations
jm@janemorganmanagement.com.au
ABOUT EAGLE MOUNTAIN MINING
Eagle Mountain is a copper-gold explorer focused on the strategic exploration and development of the Oracle
Ridge Copper Mine and the highly prospective greenfields Silver Mountain Project, both located in Arizona, USA.
Arizona is at the heart of America’s mining industry and home to some of the world’s largest copper discoveries
such as Bagdad, Miami and Resolution, one of the largest undeveloped copper deposits in the world.
Follow the Company’s developments through our website and social media channels:
LinkedIn
Twitter
EM2 Website
AUS REGISTERED OFFICE
Ground Floor, 22 Stirling Highway
Nedlands WA 6009
ACN: 621 541 204
CONTACT
E: info@eaglemountain.com.au
ASX: EM2
eaglemountain.com.au
Page 1
- 2 0 2 3 -
A n n u a l
R e p o r t
CORPORATE
DIRECTORY
DIRECTORS
Rick Crabb (Non-Executive Chairman)
Charles Bass (Managing Director)
Roger Port (Non-Executive Director)
ALTERNATE DIRECTOR
Brett Rowe
(Alternate Director for Charles Bass)
EXECUTIVE
Tim Mason (Chief Executive Officer)
COMPANY SECRETARY
Mark Pitts
EMAIL, WEBSITE and E-COMMUNICATIONS
info@eaglemountain.com.au
Email:
Website: eaglemountain.com.au
REGISTERED AND PRINCIPAL OFFICE
Ground Floor
22 Stirling Highway
Nedlands WA 6009
TUCSON OFFICE
Suite 141
10861 N Mavinee Dr. Oro Valley, AZ, 85737
AUDITORS
William Buck Audit (WA) Pty Ltd
Level 3
15 Labouchere Road
South Perth WA 6151
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Level 17, 221 St Georges Terrace
Perth WA 6000
ASX CODE
EM2
ABN
34 621 541 204
CORPORATE GOVERNANCE
A summary statement reporting against the 4th Edition of the ASX Corporate Governance
Recommendations which has been approved by the Board together with current policies
and charters is available on the Company website.
http://eaglemountain.com.au/about/#corporate
CONTENTS
Chairman’s Letter
Chief Executive Officer’s Letter
FY23 Highlights
Review of Operations
Annual Mineral Resource Statement
ASX Additional Information
Financial Report
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
3
5
7
12
27
30
35
36
52
53
54
55
56
57
91
92
EAGLE MOUNTAIN MINING | 2023 Annual Report
2
2
EAGLE MOUNTAIN MINING | 2023 Annual Report Chairman’s
Letter
Dear Shareholders,
I am pleased to present Eagle Mountain Mining’s FY23
Annual Report, outlining the significant progress and
accomplishments the Company has made during the year
towards its aim of becoming a sustainable low-emission
copper producer at its high-grade Oracle Ridge Copper
Project in Arizona, USA.
The Oracle Ridge Copper Project is a high-quality
project in a Tier 1 jurisdiction, and the Eagle Mountain
Mining team continued work throughout the financial
year to enhance our understanding of the geology,
build the copper resource, and to determine an optimal
development pathway. This work included a maiden
underground drilling program, underground channel
sampling, resource upgrade, and technical evaluations.
3
3
EAGLE MOUNTAIN MINING | 2023 Annual Report
EAGLE MOUNTAIN MINING | 2023 Annual Report The drilling and sampling programs delivered
excellent results and provided us with invaluable
insights into the mineralisation and resource that
we look to develop. The combination of both high-
grade mineralisation, along with broader lower
grade zones, provides optionality for future mine
and processing designs which will be considered as
the Eagle Mountain Mining team progress technical
evaluations.
The project has many unique benefits, positioning
us for a near-term development. The existing
underground infrastructure provides scope for cost-
effective operations with minimal environmental
impact. The Company has been focused on ensuring
Oracle Ridge Copper Mine is a low-impact project by
utilising clean energy sources where possible and
minimizing impact on the surrounding environment.
With copper being recognized in the US as a critical
mineral, we look forward to being able to support
the transition towards cleaner energy, contribute
to closing the copper supply gap and creating local
jobs.
The Company is proud of its efforts to help support
the local community by providing employment
for locals as well as continuing to support local
communities’ sporting teams and the local fire
departments during the last year.
On behalf of the Board, I would like to thank all
our dedicated team at Eagle Mountain Mining
for their efforts and ongoing commitment. We
have an excellent team, led by an equally talented
and dedicated management team including our
Managing Director, Charles Bass and CEO, Tim
Mason.
In closing, I would like to thank our shareholders and
other stakeholders who supported the Company
during the year. We thank our shareholders for
their patience and continued investment, and our
broader stakeholders for their cooperation and
understanding as we together work towards our
goal of sustainably supplying copper to a rapidly
growing green energy market. Your support is very
much appreciated and I look forward to sharing with
you further progress in the coming financial year.
Yours faithfully
Rick Crabb
Chairman
4
EAGLE MOUNTAIN MINING | 2023 Annual Report Chief Executive
Officer’s Letter
Dear Shareholders,
FY23 was a very productive year for Eagle Mountain
Mining as we built upon prior exploration work to grow
and better position our existing resource at Oracle
Ridge Copper Project for development.
Our flagship Oracle Ridge Copper Project in Arizona
provides a tremendous opportunity for Eagle
Mountain Mining to become a major supplier of
copper within America, and deliver value for our
shareholders and broader stakeholders. Copper
is a core requirement in the global electrification
process currently gathering momentum, and its
positive outlook is independent of the adoption of any
particular renewable energy and storage technology
under development.
Furthermore, copper was recently included on the
critical minerals list by the US Department of Energy.
This position recognizes copper as a being critical for
clean energy technologies, with a long term vision to
have secure domestic critical mineral and materials
supply chains. This not only supports the positive
demand outlook for copper and copper prices, but
also development of copper resources domestically in
the US, which bodes very well for the development of
Oracle Ridge Copper Project.
5
5
EAGLE MOUNTAIN MINING | 2023 Annual Report
EAGLE MOUNTAIN MINING | 2023 Annual Report Our strategic focus in FY23 continued to be the
de-risking a potential mining restart at Oracle
Ridge Copper Mine. During the year we conducted
a maiden underground drilling program and
channel sampling which provided a far deeper
understanding of the mineralisation. The Oracle
Ridge Copper Project now has a significant total
resource of 16.5Mt at 1.45% Copper at a 1% Cut-
off, with more than half in the higher confidence
Measured and Indicated categories. The Project
includes a combination of both high-grade
mineralisation, along with broader lower-grade
zones, providing optionality for future mine
and processing designs. At lower cut-off grades,
the mineralisation become increasingly thick,
thereby supporting higher extraction rates which
may enhance the project economics. While a
further resource update is due shortly, we have
commenced various technical evaluations to
support future studies. The development optionality
significantly improves the project’s risk profile, in
addition to being able to leverage the significant
existing infrastructure near the site for a low capital
cost restart.
From a sustainability viewpoint, we continue a
strong focus on being a low-emission and low-
disturbance project. The use of renewable power
and generation options will support our goal of
being a low-impact mine. As an underground mine,
Oracle Ridge Copper Mine will also provide a low
level of disturbance to the environment and allow
us to utilise techniques that have minimal impact
on the natural environment surrounding the
project. We will investigate gravity feeding methods
to provide a low carbon footprint compared to
traditional methods that would be typically used in
open pit mining operations or deep underground
mines.
Our strategy also takes into consideration the
broader economic, environmental and social
impacts of our activities. The restart of Oracle Ridge
Copper Mine will provide ample employment and
economic opportunities for the local community
and businesses, and we continue to support local
stakeholders as we progress the development of
the project. I am proud that we have continued to
support local communities’ sporting teams and fire
departments during the last year.
As I write this letter, market conditions continue
to be volatile, especially for explorers and
emerging producers such as Eagle Mountain
Mining. This continues to overhang our share
price. Notwithstanding this, we believe our
strategy will deliver value to our shareholders and
stakeholders, and we will continue its execution with
a considered and disciplined approach to capital
management. Therefore, I would like to thank all of
our shareholders for their patience, and for their
continued support of the Company.
Finally, I would like to thank our dedicated
employees, contractors and business partners in
the USA and Australia who worked passionately
over the last year. Their efforts and contributions
have achieved key milestones as we work towards
becoming a domestic producer of green copper to
support global decarbonization.
Yours faithfully
Tim Mason
Chief Executive Officer
6
EAGLE MOUNTAIN MINING | 2023 Annual Report FY23
Highlights
• No lost time injuries for entire financial year
• Surface and underground diamond drilling and underground channel
sample results targeting resource upgrading and growth
• Mining and processing evaluations commenced to determine optimum
mining and processing methods
• An upgrade to the JORC Mineral Resource Estimate (MRE) for the Oracle
Ridge Copper Project was completed in October 2022, resulting in 12%
increase in Measured and Indicated resources (at a 1% copper cut-off)
• Further MRE update planned in late 2023 to incorporate extensive new
knowledge and results from drilling, mapping and sampling programs
completed throughout the year
• Recommissioning of the existing underground mine was completed
• Maiden underground drill campaign was undertaken
• New prospective target areas identified and drilled with results to be
incorporated into further build the resource base
• Technical evaluations commenced, including mine planning and
metallurgical testwork
• Support for local communities continued, including local fire
departments and sporting teams
• Well supported capital raisings which generated $5m in new capital and
an additional $3m loan from Managing Director, Charlie Bass
7
EAGLE MOUNTAIN MINING | 2023 Annual Report Vision
Eagle Mountain Mining’s vision is to build shareholder and
stakeholder value by creating a sustainable, profitable and
well-regarded mining company focussed on copper and
minerals required for a low carbon renewable energy future.
Employees outside the Oracle Ridge Copper Mine portal
EAGLE MOUNTAIN MINING | 2023 Annual Report
8
8
EAGLE MOUNTAIN MINING | 2023 Annual Report Social and
Community
We continue to build strong relationships with the
local communities and a range of stakeholders. We
are a proud sponsor of the local women’s softball
association and continue to support the San Manuel
and Oracle Fire Departments.
We work closely with local governments and
environmental departments and look forward to
continuing these relationships.
Erin Morrison, Employee of Silver
Mountain Mining, attending a
Women in Mining event in Tucson.
People
The health, safety and well-being of our people is a key priority for Eagle
Mountain Mining and is essential to enable a prosperous future for Eagle
Mountain Mining and its surrounding and supporting stakeholders.
We pride ourselves on continuous training and development especially when
it comes to safety.
Over the last year Eagle Mountain Mining has supported the ongoing
development of employee health and safety competencies through the
delivery of several health and safety training programs including:
• Mine Safety and Health Administration training
•
Emergency response simulations
• Mock mine evacuation emergencies
•
•
• Manual handling awareness training
First aid training
External audits of emergency planning and safety compliance
Where possible, Eagle Mountain Mining employs and engages contractors
locally from the surrounding community. We continue to encourage diversity
in the workplace environment. Currently 33% of our employees are women.
9
9
EAGLE MOUNTAIN MINING | 2023 Annual Report
EAGLE MOUNTAIN MINING | 2023 Annual Report Environment
Eagle Mountain Mining is embracing a low emission future and is committed to being a responsible
steward of the natural environment. The Company is supporting the renewable energy sector by
targeting responsibly-mined copper with the strong and unique potential to harness the natural
benefits of gravity in its operations. Below are some key United Nations sustainable development
goals that Eagle Mountain Mining aligns itself with. (https://sdgs.un.org/goal)
Clean Energy - We aim to produce metals needed
to reduce global greenhouse emissions in energy
production and distribution.
Economic Growth - We aim to promote sustained,
inclusive and sustainable economic growth, full and
productive employment for the communities in
which we operate.
Responsible consumption and production - We aim
to reduce our greenhouse gas emissions for more
sustainable operations through technology and
innovation.
Climate action - We aim to reduce greenhouse gas
emissions and minimise disturbance of forested
areas which capture and store carbon dioxide.
We aim to achieve a net positive outcome for
biodiversity by protecting and managing the forest.
Governance
The Company is committed to a high level of corporate
governance and fostering a culture that values ethical
behaviour, integrity and respect. We believe that adopting
and operating in accordance with high standards of
corporate governance is essential for sustainable long-term
performance and value creation.
10
EAGLE MOUNTAIN MINING | 2023 Annual Report OUR COMMITMENT TO A
SUSTAINABLE FUTURE
The global transition to green energy is increasing
demand for copper. Eagle Mountain Mining’s Oracle
Ridge Copper Project aims to produce copper in
the USA in a sustainable way that supports local
communities. Our Oracle Ridge Copper Project is
located in an area with a long history of mining and
benefits from existing infrastructure to support a
restart of the project. As an underground operation,
it has considerably lower surface disturbance than
large open pits, making it a more environmentally
friendly project. We are committed to operating
responsibly and sustainably for the future.
Tim Mason
Chief Executive Officer
11
11
EAGLE MOUNTAIN MINING | 2023 Annual Report
EAGLE MOUNTAIN MINING | 2023 Annual Report Review of
Operations
EAGLE MOUNTAIN MINING | 2023 Annual Report
12
12
EAGLE MOUNTAIN MINING | 2023 Annual Report Review of Operations
Eagle Mountain Mining Limited (“Eagle Mountain Mining”, “Company”) owns 100% of the Oracle Ridge
Copper Mine and Silver Mountain projects in Arizona.
Arizona is a Tier 1 mining jurisdiction1 which hosts many large copper mines and projects operated by
major mining companies including BHP, Rio Tinto, Freeport-McMoran, Asarco, Hudbay and South 32.
The Company’s projects are prospective for both high-grade copper-silver-gold mineralisation and large-
scale copper systems. Activities during the year focused primarily on the Oracle Ridge Copper Project.
Eagle Mountain Mining’s mission is to become a low-emission producer of copper which is vital for the
decarbonisation of the global economy. We are planning for future mining operations to have a strong
focus on reducing emissions by using battery or electric powered mining equipment and sourcing or
producing renewable energy where possible.
The Oracle Ridge Copper Project benefits from its resource being located on a hill and the use of gravity
as part of the mine design could further reduce energy consumption which also reduces emissions.
More than 70 countries2 have renewed targets for decarbonisation of their economies and copper is a
key metal for reducing the use of fossil fuels. We are driven by our vision to supply the copper for a
greener global future, but also to supply that copper via a low-emission process.
Oracle Ridge Copper Project (100%)
The Oracle Ridge Copper Mine is located northeast of Tucson and 26 kilometres from BHP’s San Manuel
mine, once the largest underground mine in the USA. The site is accessible by road and is supported by
a nearby railway and a copper smelter in the state. Figure 1 shows the location of the Oracle Ridge
Copper Project.
Figure 1 - Location of Oracle Ridge Copper Project
The Oracle Ridge Copper Mine is an advanced stage project containing a high-grade copper resource
with significant gold and silver credits. Mineralisation at Oracle Ridge Copper Mine is skarn-hosted which
is common at many porphyry deposits in Arizona. The source of the mineralisation at Oracle Ridge has
not been found and it remains a key exploration opportunity.
The project benefits from 18 kilometres of existing underground development, recently refurbished,
along with other supporting infrastructure such as roads, mining services and power at nearby towns.
1Arizona is ranked 7th in the world by the Fraser Institute for mining investment attractiveness.
https://www.fraserinstitute.org/studies/annual-survey-of-mining-companies-2022
2 https://www.un.org/en/climatechange/net-zero-coalition
13
Figure 2 – Portal locations at Oracle Ridge
EAGLE MOUNTAIN MINING | 2023 Annual Report
Review of Operations
Eagle Mountain Mining Limited (“Eagle Mountain Mining”, “Company”) owns 100% of the Oracle Ridge
Copper Mine and Silver Mountain projects in Arizona.
Arizona is a Tier 1 mining jurisdiction1 which hosts many large copper mines and projects operated by
major mining companies including BHP, Rio Tinto, Freeport-McMoran, Asarco, Hudbay and South 32.
The Company’s projects are prospective for both high-grade copper-silver-gold mineralisation and large-
scale copper systems. Activities during the year focused primarily on the Oracle Ridge Copper Project.
Eagle Mountain Mining’s mission is to become a low-emission producer of copper which is vital for the
decarbonisation of the global economy. We are planning for future mining operations to have a strong
focus on reducing emissions by using battery or electric powered mining equipment and sourcing or
producing renewable energy where possible.
The Oracle Ridge Copper Project benefits from its resource being located on a hill and the use of gravity
as part of the mine design could further reduce energy consumption which also reduces emissions.
More than 70 countries2 have renewed targets for decarbonisation of their economies and copper is a
key metal for reducing the use of fossil fuels. We are driven by our vision to supply the copper for a
greener global future, but also to supply that copper via a low-emission process.
Oracle Ridge Copper Project (100%)
The Oracle Ridge Copper Mine is located northeast of Tucson and 26 kilometres from BHP’s San Manuel
mine, once the largest underground mine in the USA. The site is accessible by road and is supported by
a nearby railway and a copper smelter in the state. Figure 1 shows the location of the Oracle Ridge
Copper Project.
Figure 1 - Location of Oracle Ridge Copper Project
The Oracle Ridge Copper Mine is an advanced stage project containing a high-grade copper resource
with significant gold and silver credits. Mineralisation at Oracle Ridge Copper Mine is skarn-hosted which
is common at many porphyry deposits in Arizona. The source of the mineralisation at Oracle Ridge has
not been found and it remains a key exploration opportunity.
The project benefits from 18 kilometres of existing underground development, recently refurbished,
along with other supporting infrastructure such as roads, mining services and power at nearby towns.
1Arizona is ranked 7th in the world by the Fraser Institute for mining investment attractiveness.
https://www.fraserinstitute.org/studies/annual-survey-of-mining-companies-2022
2 https://www.un.org/en/climatechange/net-zero-coalition
Figure 2 – Portal locations at Oracle Ridge
14
EAGLE MOUNTAIN MINING | 2023 Annual Report
Exploration
Eagle Mountain Mining continued various aspects of exploration during the year including drilling from
surface and underground, along with channel sampling of exposed mineralisation from existing tunnels.
Over 24,000 metres of diamond drilling for 90 holes was undertaken during the financial year from both
surface and underground. The aim of the drilling program was to further build and upgrade mineral
resources.
EExxpplloorraattiioonn DDrriilllliinngg
Resource expansion diamond drilling results were received from 52 holes during the financial year. The
drilling covered a range of areas across the project, including nearby historic workings.
Broad and high-grade intercepts in the southern and eastern Talon were received and continued to
show resource expansion potential. Results included (refer ASX announcements dated 25 January 2023
and 27 July 2023):
• 19.1m at 2.23% Cu, 34.10g/t Ag 0.43g/t Au, including
− 9.3m @ 3.63% Cu, 59.56g/t Ag and 0.76g/t Au (WT-22-148)
• 11.9m at 2.94% Cu, 42.58g/t Ag and 0.49g/t Au, including
− 3.3m at 7.0% Cu, 98g/t Ag and 1.01g/t Au (WT-22-159)
A total of 20 resource infill holes were completed during the year. Results included:
• 13.5m at 1.32% Cu, 10.74g/t Ag and 0.19g/t Au (WT-21-152)
• 4.3m at 1.85% Cu, 13.65g/t Ag and 0.18g/t Au (WT-21-161)
• 2.3m at 1.71% Cu, 16.29g/t Ag and 0.27g/t Au (WT-22-163)
Resource upgrade drilling during the year comprised 18 surface and underground holes, which included
the following results from the Talon:
• 2255..00mm aatt 22..0066%% CCuu, 15.18g/t Ag and 0.61g/t Au within a broader zone of
− 76.4m at 1.47% Cu, 11.97g/t Ag and 0.41g/t Au (WT-22-160)
Drilling in the north-west mine area targeted the Indicated resource and was designed to upgrade the
resource to the Measured category. Results included multiple high-grade intercepts within a wider
mineralised zone in the Martin and Abrigo formations (refer ASX announcement dated 27 July 2023):
• 1199..00mm aatt 22..0088%% CCuu, 22.88g/t Ag and 0.22g/t (WT-23-187)
− within 5588..99mm aatt 11..1122%% CCuu, 12.44g/t Ag and 0.14g/t Au
• 2200..22mm aatt 11..9933%% CCuu, 20.32g/t Ag and 0.15g/t Au (WT-23-185)
− within 5566..66mm aatt 11..0099%% CCuu,, 10.53g/t Ag and 0.11g/t Au
• 3300..44mm aatt 11..4488%% CCuu,, 19.87g/t Ag and 0.16g/t Au (WT-22-184)
− within 7733..88mm aatt 00..9922%% CCuu, 10.55g/t Ag and 0.12g/t Au
15
Chalcopyrite mineralisation in WTU-23-06 from 100m to 105.2m, within an 11.4m thick zone grading 2.29%
Cu, 16.45g/t Ag and 0.14g/t Au. Bree Ivory (Corporate Affairs Manager) and Brian Paull (Director of
Exploration) holding core from WTU-23-06
A total of eight underground upgrade holes were completed in the main mine area providing strong
support to nearby historical intercepts. Interestingly, mineralisation continued to be intersected between
the main mineralised lodes in historically unsampled areas. While more work is required, these results are
encouraging and could have favourable implications for reducing mining costs in a potential production
scenario.
Underground drilling in progress at Oracle Ridge Copper Mine
EAGLE MOUNTAIN MINING | 2023 Annual Report
Eagle Mountain Mining continued various aspects of exploration during the year including drilling from
surface and underground, along with channel sampling of exposed mineralisation from existing tunnels.
Over 24,000 metres of diamond drilling for 90 holes was undertaken during the financial year from both
surface and underground. The aim of the drilling program was to further build and upgrade mineral
Exploration
resources.
EExxpplloorraattiioonn DDrriilllliinngg
Resource expansion diamond drilling results were received from 52 holes during the financial year. The
drilling covered a range of areas across the project, including nearby historic workings.
Broad and high-grade intercepts in the southern and eastern Talon were received and continued to
show resource expansion potential. Results included (refer ASX announcements dated 25 January 2023
and 27 July 2023):
• 19.1m at 2.23% Cu, 34.10g/t Ag 0.43g/t Au, including
− 9.3m @ 3.63% Cu, 59.56g/t Ag and 0.76g/t Au (WT-22-148)
• 11.9m at 2.94% Cu, 42.58g/t Ag and 0.49g/t Au, including
− 3.3m at 7.0% Cu, 98g/t Ag and 1.01g/t Au (WT-22-159)
A total of 20 resource infill holes were completed during the year. Results included:
• 13.5m at 1.32% Cu, 10.74g/t Ag and 0.19g/t Au (WT-21-152)
• 4.3m at 1.85% Cu, 13.65g/t Ag and 0.18g/t Au (WT-21-161)
• 2.3m at 1.71% Cu, 16.29g/t Ag and 0.27g/t Au (WT-22-163)
Resource upgrade drilling during the year comprised 18 surface and underground holes, which included
the following results from the Talon:
• 2255..00mm aatt 22..0066%% CCuu, 15.18g/t Ag and 0.61g/t Au within a broader zone of
− 76.4m at 1.47% Cu, 11.97g/t Ag and 0.41g/t Au (WT-22-160)
Drilling in the north-west mine area targeted the Indicated resource and was designed to upgrade the
resource to the Measured category. Results included multiple high-grade intercepts within a wider
mineralised zone in the Martin and Abrigo formations (refer ASX announcement dated 27 July 2023):
• 1199..00mm aatt 22..0088%% CCuu, 22.88g/t Ag and 0.22g/t (WT-23-187)
− within 5588..99mm aatt 11..1122%% CCuu, 12.44g/t Ag and 0.14g/t Au
• 2200..22mm aatt 11..9933%% CCuu, 20.32g/t Ag and 0.15g/t Au (WT-23-185)
− within 5566..66mm aatt 11..0099%% CCuu,, 10.53g/t Ag and 0.11g/t Au
• 3300..44mm aatt 11..4488%% CCuu,, 19.87g/t Ag and 0.16g/t Au (WT-22-184)
− within 7733..88mm aatt 00..9922%% CCuu, 10.55g/t Ag and 0.12g/t Au
Chalcopyrite mineralisation in WTU-23-06 from 100m to 105.2m, within an 11.4m thick zone grading 2.29%
Cu, 16.45g/t Ag and 0.14g/t Au. Bree Ivory (Corporate Affairs Manager) and Brian Paull (Director of
Exploration) holding core from WTU-23-06
A total of eight underground upgrade holes were completed in the main mine area providing strong
support to nearby historical intercepts. Interestingly, mineralisation continued to be intersected between
the main mineralised lodes in historically unsampled areas. While more work is required, these results are
encouraging and could have favourable implications for reducing mining costs in a potential production
scenario.
Underground drilling in progress at Oracle Ridge Copper Mine
16
EAGLE MOUNTAIN MINING | 2023 Annual Report
RReeccoommmmiissssiioonniinngg ooff tthhee UUnnddeerrggrroouunndd MMiinnee
During the year, the Company completed recommissioning of parts of the existing underground mine.
Access to the existing underground mine enabled diamond drilling, channel sampling and mapping to
be conducted from underground.
The Oracle Ridge Copper Mine includes over 18 kilometres of existing underground development,
accessed from two portals, with over 90% of the existing mine accessible from these portals not
requiring dewatering. The underground recommissioning completed included installation and servicing
of electrical, water and air services, followed by progressive checks and rehabilitation of underground
tunnels as required.
The channel sampling program proved significant, as the results exposed broad zones of mineralisation
presenting upside to the current resource model. This contributed to the decision to undertake an
updated MRE to be released later in 2023.
Underground mine refurbishment in progress
The continuous upgrade and understanding of the resource model is assisting in creating optionality
for future mining and processing.
Results from 44 underground channels were received during the year, comprising over 600 metres of
horizontal sampling. Channel sample results received during the year (refer ASX announcements dated
16 May 2023, 20 July 2023 and 18 September 2023) included:
• 3322..66mm aatt 22..2233%% CCuu, 26.13g/t Ag and 0.28g/t Au including
− 11..66mm aatt 99..4477%% CCuu, 100g/t Ag and 1.01g/t Au (6500-NW-002)
• 77..66mm aatt 44..3399%% CCuu,, 9.10g/t Ag, 0.07g/t Au and
• 99..11mm aatt 33..7722%% CCuu,, 88..2255gg//tt AAgg,, 00..0077gg//tt AAuu (6400-NW-001)
• 3366..66mm aatt 11..9999%% CCuu, 18.00g/t Ag, 0.24g/t Au(6400-NW-005)
• 3322..66mm aatt 22..2233%% CCuu,, 26.13g/t Ag, 0.28g/t Au including
− 1.6m at 9.47% Cu, 100g/t Ag, 1.01g/t Au (6500-NW-002)
• 3355..77mm aatt 22..6600%% CCuu, 14.86g/t Ag and 0.08g/t Au (6550-NW-005)3
• 1199..22mm aatt 33..3322%% CCuu, 37.66g/t Ag and 0.31g/t Au (6550-NW-011)1
• 1155..33mm aatt 44..0022%% CCuu, 18.71g/t Ag and 0.14g/t Au (6550-NW-004)1
3 All channel sample reported intervals are horizontal channel widths
17
Channel cuts undertaken as part of the underground sampling program. Note mineralisation in the cut,
hiding behind the surface grime. “The side walls are seemingly unimpressive until we cut into them and reveal
the amazing mineralisation hidden under years of grime” notes Director of Exploration, Brian Paull.
RReessoouurrccee EExxppaannssiioonn PPootteennttiiaall
Exploration activities during the year continued to demonstrate further resource expansion potential.
This included various existing mines such as the Daily mine area, Geesaman mine area, Hartman
Homestake mine area, the Stratton mine area and OREX.
Historical Daily Mine Area
The Daily mine area is entirely outside the existing resource. Drilling in this area was targeted at potential
extensions to previously mined mineralisation. The drilling results showed multiple strong intercepts
including (refer ASX announcement dated 21 April 2023):
• 3.20% Cu, 117.84g/t Ag and 0.28g/t Au over 6.7m (WT-22-172)
• 3.18% Cu, 27.85g/t Ag and 0.08g/t Au over 5.0m (WT-22-171)
• 9.78% Cu, 66.40g/t Ag and 0.22g/t Au over 0.9m (WT-22-170)
• 5.54% Cu, 48.30g/t Ag and 0.12g/t Au over 0.6m (WT-22-168)
Historical Geesaman Mine Area
Six resource expansion holes were drilled in the north-east of the existing mineral resource near the
historical Geesaman mine workings. The drilling intercepted some high-grade narrow zones which
indicates that mineralisation extends towards the north-east and Geesaman mine workings. Results
included (refer ASX announcement dated 21 April 2023):
o 7.68% Cu, 28.60g/t Ag and 0.11g/t Au over 2.2m (WT-22-176)
o 3.75% Cu, 0.66g/t Ag over 0.4m (WT-22-179)
EAGLE MOUNTAIN MINING | 2023 Annual Report
RReeccoommmmiissssiioonniinngg ooff tthhee UUnnddeerrggrroouunndd MMiinnee
During the year, the Company completed recommissioning of parts of the existing underground mine.
Access to the existing underground mine enabled diamond drilling, channel sampling and mapping to
be conducted from underground.
The Oracle Ridge Copper Mine includes over 18 kilometres of existing underground development,
accessed from two portals, with over 90% of the existing mine accessible from these portals not
requiring dewatering. The underground recommissioning completed included installation and servicing
of electrical, water and air services, followed by progressive checks and rehabilitation of underground
tunnels as required.
The channel sampling program proved significant, as the results exposed broad zones of mineralisation
presenting upside to the current resource model. This contributed to the decision to undertake an
updated MRE to be released later in 2023.
Channel cuts undertaken as part of the underground sampling program. Note mineralisation in the cut,
hiding behind the surface grime. “The side walls are seemingly unimpressive until we cut into them and reveal
the amazing mineralisation hidden under years of grime” notes Director of Exploration, Brian Paull.
RReessoouurrccee EExxppaannssiioonn PPootteennttiiaall
Exploration activities during the year continued to demonstrate further resource expansion potential.
This included various existing mines such as the Daily mine area, Geesaman mine area, Hartman
Homestake mine area, the Stratton mine area and OREX.
Underground mine refurbishment in progress
Historical Daily Mine Area
The continuous upgrade and understanding of the resource model is assisting in creating optionality
for future mining and processing.
Results from 44 underground channels were received during the year, comprising over 600 metres of
horizontal sampling. Channel sample results received during the year (refer ASX announcements dated
16 May 2023, 20 July 2023 and 18 September 2023) included:
• 3322..66mm aatt 22..2233%% CCuu, 26.13g/t Ag and 0.28g/t Au including
− 11..66mm aatt 99..4477%% CCuu, 100g/t Ag and 1.01g/t Au (6500-NW-002)
• 77..66mm aatt 44..3399%% CCuu,, 9.10g/t Ag, 0.07g/t Au and
• 99..11mm aatt 33..7722%% CCuu,, 88..2255gg//tt AAgg,, 00..0077gg//tt AAuu (6400-NW-001)
• 3366..66mm aatt 11..9999%% CCuu, 18.00g/t Ag, 0.24g/t Au(6400-NW-005)
• 3322..66mm aatt 22..2233%% CCuu,, 26.13g/t Ag, 0.28g/t Au including
− 1.6m at 9.47% Cu, 100g/t Ag, 1.01g/t Au (6500-NW-002)
• 3355..77mm aatt 22..6600%% CCuu, 14.86g/t Ag and 0.08g/t Au (6550-NW-005)3
• 1199..22mm aatt 33..3322%% CCuu, 37.66g/t Ag and 0.31g/t Au (6550-NW-011)1
• 1155..33mm aatt 44..0022%% CCuu, 18.71g/t Ag and 0.14g/t Au (6550-NW-004)1
3 All channel sample reported intervals are horizontal channel widths
The Daily mine area is entirely outside the existing resource. Drilling in this area was targeted at potential
extensions to previously mined mineralisation. The drilling results showed multiple strong intercepts
including (refer ASX announcement dated 21 April 2023):
• 3.20% Cu, 117.84g/t Ag and 0.28g/t Au over 6.7m (WT-22-172)
• 3.18% Cu, 27.85g/t Ag and 0.08g/t Au over 5.0m (WT-22-171)
• 9.78% Cu, 66.40g/t Ag and 0.22g/t Au over 0.9m (WT-22-170)
• 5.54% Cu, 48.30g/t Ag and 0.12g/t Au over 0.6m (WT-22-168)
Historical Geesaman Mine Area
Six resource expansion holes were drilled in the north-east of the existing mineral resource near the
historical Geesaman mine workings. The drilling intercepted some high-grade narrow zones which
indicates that mineralisation extends towards the north-east and Geesaman mine workings. Results
included (refer ASX announcement dated 21 April 2023):
o 7.68% Cu, 28.60g/t Ag and 0.11g/t Au over 2.2m (WT-22-176)
o 3.75% Cu, 0.66g/t Ag over 0.4m (WT-22-179)
18
EAGLE MOUNTAIN MINING | 2023 Annual Report
Hartman-Homestake Mine Area
OREX
The Hartman-Homestake mine is believed to have been operational in the early 1900’s. During the year,
a review of historical reports highlighted the existence of underground workings covering an area of
approximately 100 by 100 metres. Also, historical samples reported on underground maps showed
encouraging base metal values. Preliminary observations from a reconnaissance visit showed the
following (refer to Figure 3):
• The local geology includes skarn-altered Abrigo Formation, a geological unit hosting significant
copper, silver, gold mineralisation at Oracle Ridge Copper Project;
• Skarn alteration and copper mineralisation abound in underground exposure and appear to be
structurally controlled. The key feature of the area is a northeast-southwest trending fault which
seems to focus the mineralisation. This structure is interpreted to be a southwestern splay of
the regionally significant Geesaman Fault to the north; and
• 20 rock-chip samples4 collected across the underground workings returned several high-grade
assays, with significant results shown in Figure 3.
Stratton Mine Area
The Stratton area is situated approximately 600 metres to the west of the Leatherwood mine at the
Southern Talon area (Figure 3). Reconnaissance mapping completed during the year covered the
easternmost adits in this group of workings as well as outcropping mineralisation in the vicinity. All rock-
chips returned copper values exceeding 1% Cu. Assay results show a chemistry similar to Oracle Ridge
Copper Mine, with copper and silver associated with gold rather than lead and zinc, as observed at the
Hartman-Homestake mine. This is consistent with the mineralisation defined in the current MRE model.
Based on encouraging results from an initial field mapping program, surface rock chip samples
confirmed extensive occurrences of outcropping skarn-hosted copper-silver-gold mineralisation along
the lower contact of the Leatherwood intrusive and the skarn horizon. Over 100 grab samples were
collected with many returning high-grade mineralisation. The limestone formations and resulting skarn
are very similar to those encountered at the Oracle Ridge mine. The Company believes that the
prospective contact exists at depth below the Leatherwood for approximately three kilometres in an
east-west direction. Permit applications to the United States Forest Service for drilling on parts of the
OREX prospect were progressed during the year.
Field work at Oracle Ridge Copper Project
Figure 3 – Plan view of Oracle Ridge Copper Mine showing rock chip results and October 2022 MRE outline
(refer ASX announcement 14 November 2022)
4 Refer ASX Announcement 11 November 2022
19
EAGLE MOUNTAIN MINING | 2023 Annual Report
Hartman-Homestake Mine Area
OREX
Based on encouraging results from an initial field mapping program, surface rock chip samples
confirmed extensive occurrences of outcropping skarn-hosted copper-silver-gold mineralisation along
the lower contact of the Leatherwood intrusive and the skarn horizon. Over 100 grab samples were
collected with many returning high-grade mineralisation. The limestone formations and resulting skarn
are very similar to those encountered at the Oracle Ridge mine. The Company believes that the
prospective contact exists at depth below the Leatherwood for approximately three kilometres in an
east-west direction. Permit applications to the United States Forest Service for drilling on parts of the
OREX prospect were progressed during the year.
The Hartman-Homestake mine is believed to have been operational in the early 1900’s. During the year,
a review of historical reports highlighted the existence of underground workings covering an area of
approximately 100 by 100 metres. Also, historical samples reported on underground maps showed
encouraging base metal values. Preliminary observations from a reconnaissance visit showed the
following (refer to Figure 3):
• The local geology includes skarn-altered Abrigo Formation, a geological unit hosting significant
copper, silver, gold mineralisation at Oracle Ridge Copper Project;
• Skarn alteration and copper mineralisation abound in underground exposure and appear to be
structurally controlled. The key feature of the area is a northeast-southwest trending fault which
seems to focus the mineralisation. This structure is interpreted to be a southwestern splay of
the regionally significant Geesaman Fault to the north; and
• 20 rock-chip samples4 collected across the underground workings returned several high-grade
assays, with significant results shown in Figure 3.
Stratton Mine Area
The Stratton area is situated approximately 600 metres to the west of the Leatherwood mine at the
Southern Talon area (Figure 3). Reconnaissance mapping completed during the year covered the
easternmost adits in this group of workings as well as outcropping mineralisation in the vicinity. All rock-
chips returned copper values exceeding 1% Cu. Assay results show a chemistry similar to Oracle Ridge
Copper Mine, with copper and silver associated with gold rather than lead and zinc, as observed at the
Hartman-Homestake mine. This is consistent with the mineralisation defined in the current MRE model.
Field work at Oracle Ridge Copper Project
Figure 3 – Plan view of Oracle Ridge Copper Mine showing rock chip results and October 2022 MRE outline
(refer ASX announcement 14 November 2022)
4 Refer ASX Announcement 11 November 2022
20
EAGLE MOUNTAIN MINING | 2023 Annual Report
i
F
g
u
r
e
4
-
P
a
n
M
a
p
o
f
l
i
O
r
a
c
l
e
R
d
g
e
C
o
p
p
e
r
i
M
n
e
w
i
t
h
s
e
l
e
c
t
e
d
a
s
s
a
y
r
e
s
u
l
t
s
r
e
c
e
i
v
e
d
d
u
r
i
n
g
t
h
e
f
i
n
a
n
c
i
a
l
y
e
a
r
(
r
e
f
e
r
A
S
X
a
n
n
o
u
n
c
e
m
e
n
t
s
6
O
c
t
o
b
e
r
2
0
2
2
,
2
6
O
c
t
o
b
e
r
2
0
2
2
,
2
5
J
a
n
u
a
r
y
2
0
2
3
,
2
1
A
p
r
i
l
2
0
2
3
a
n
d
2
7
J
u
l
y
2
0
2
3
)
21
JORC Mineral Resource Upgrade
In October 2022, the Company completed its third update to its JORC Mineral Resource Estimate (“MRE”)
to 1166..55MMtt aatt 11..4455%% CCuu,, 1155..1100gg//tt AAgg aanndd 00..1199gg//tt AAuu ffoorr 224400,,000000 tt ccoonnttaaiinneedd ccooppppeerr,, 88 MMoozz ccoonnttaaiinneedd
ssiillvveerr aanndd 110022 KKoozz ccoonnttaaiinneedd ggoolldd (refer ASX announcement dated 6 October 2022).
Key results of the updated MRE are outlined below.
• 65% of the MRE is in Indicated and Measured categories
• 64% increase in Measured and Indicated since December 2020 (see Figure 5)
• 36% increase in contained copper at a 0.8% Copper cut-off (see Table 2)
•
Increasing grades at higher confidence resource categories
• Reviewed by independent consultants SRK Consulting Pty Ltd
Figure 5 – Diagram showing total Measured and indicated Resources at a 1% CU cut-off
Figure 6 – Diagram showing the increase in contained copper at lower cut-offs for the October 2022 resource
update (refer ASX announcement 6 October 2022)
EAGLE MOUNTAIN MINING | 2023 Annual Report
2
0
2
2
,
2
6
O
c
t
o
b
e
r
2
0
2
2
,
2
5
J
a
n
u
a
r
y
2
0
2
3
,
2
1
A
p
r
i
l
2
0
2
3
a
n
d
2
7
J
u
l
y
2
0
2
3
)
F
i
g
u
r
e
4
-
P
l
a
n
M
a
p
o
f
O
r
a
c
l
e
R
i
d
g
e
C
o
p
p
e
r
M
i
n
e
w
i
t
h
s
e
l
e
c
t
e
d
a
s
s
a
y
r
e
s
u
l
t
s
r
e
c
e
i
v
e
d
d
u
r
i
n
g
t
h
e
f
i
n
a
n
c
i
a
l
y
e
a
r
(
r
e
f
e
r
A
S
X
a
n
n
o
u
n
c
e
m
e
n
t
s
6
O
c
t
o
b
e
r
JORC Mineral Resource Upgrade
In October 2022, the Company completed its third update to its JORC Mineral Resource Estimate (“MRE”)
to 1166..55MMtt aatt 11..4455%% CCuu,, 1155..1100gg//tt AAgg aanndd 00..1199gg//tt AAuu ffoorr 224400,,000000 tt ccoonnttaaiinneedd ccooppppeerr,, 88 MMoozz ccoonnttaaiinneedd
ssiillvveerr aanndd 110022 KKoozz ccoonnttaaiinneedd ggoolldd (refer ASX announcement dated 6 October 2022).
Key results of the updated MRE are outlined below.
• 65% of the MRE is in Indicated and Measured categories
• 64% increase in Measured and Indicated since December 2020 (see Figure 5)
• 36% increase in contained copper at a 0.8% Copper cut-off (see Table 2)
Increasing grades at higher confidence resource categories
•
• Reviewed by independent consultants SRK Consulting Pty Ltd
Figure 5 – Diagram showing total Measured and indicated Resources at a 1% CU cut-off
Figure 6 – Diagram showing the increase in contained copper at lower cut-offs for the October 2022 resource
update (refer ASX announcement 6 October 2022)
22
EAGLE MOUNTAIN MINING | 2023 Annual Report
TTaabbllee 11 –– SSuummmmaarryy ooff UUppddaatteedd OOccttoobbeerr 22002222 MMRREE RReessoouurrccee CCaatteeggoorriieess aatt 11%% CCuu ccuutt--ooffff
The evaluations are focused on production primarily from the existing Measured and Indicated
resources and will evaluate alternate mining scenarios to optimise returns, including larger scale
operations using the materially larger resource base at lower cut-off grades, or a smaller higher-grade
operation with selective mining. Recent advancements in equipment and process technologies will also
be considered with a view to lowering operating costs and increasing efficiencies for the Project.
A key project benefit is the previous production history and permitting. The current project permitting
status is outlined below (Table 3).
TTaabbllee 33 –– PPeerrmmiittttiinngg SSttaattuuss OOvveerrvviieeww
1 Air Quality Permit is for a 2000 tons per day operation from the mine / 3000 tons per day through a concentrator. Increases
from these rates require an update to the permit.
AAccrroonnyymmss::
AADDEEQQ – Arizona Department of Environmental Quality
AASSMMII - Arizona State Mine Inspector
AASSLLDD- Arizona State Land Department
UUSSFFSS - United States Forest Service
RReessoouurrccee
CCaatteeggoorryy
MMeeaassuurreedd
IInnddiiccaatteedd
SSuubbttoottaall MM++II
IInnffeerrrreedd
TToottaall MM++II++II
TToonnnneess
[[MMtt]]
2.1
8.7
1100..88
5.7
1166..55
CCuu
[[%%]]
1.57
1.49
11..5500
1.36
11..4455
AAgg
[[gg//tt]]
16.42
14.94
1155..2233
14.85
1155..1100
AAuu
[[gg//tt]]
0.21
0.21
00..2211
0.15
00..1199
Differences may occur in totals due to rounding
CCoonnttaaiinneedd CCuu
[[tt]]
CCoonnttaaiinneedd AAgg
[[OOzz]]
CCoonnttaaiinneedd AAuu
[[OOzz]]
33,000
129,000
116622,,000000
77,000
224400,,000000
1,111,000
4,178,000
55,,229900,,000000
2,719,000
88,,000099,,000000
14,000
59,000
7744,,000000
28,000
110022,,000000
Significantly greater tonnages occur at lower copper cut-off grades, providing optionality for future
mining and processing studies (refer to Table 2 below and Figure 6 above).
TTaabbllee 22 –– SSuummmmaarryy ooff UUppddaatteedd OOccttoobbeerr 22002222 MMRREE RReessoouurrccee CCaatteeggoorriieess aatt 00..88%% CCuu ccuutt--ooffff
RReessoouurrccee
CCaatteeggoorryy
MMeeaassuurreedd
IInnddiiccaatteedd
SSuubbttoottaall MM++II
IInnffeerrrreedd
TToottaall MM++II++II
TToonnnneess
[[MMtt]]
2.8
13.2
1166..00
10.3
2266..33
CCuu
[[%%]]
1.40
1.28
11..3300
1.15
11..2244
AAgg
[[gg//tt]]
14.67
12.91
1133..2222
12.43
1122..9911
AAuu
[[gg//tt]]
0.19
0.19
00..1199
0.14
00..1177
Differences may occur in totals due to rounding
CCoonnttaaiinneedd CCuu
[[tt]]
CCoonnttaaiinneedd AAgg
[[OOzz]]
CCoonnttaaiinneedd AAuu
[[OOzz]]
39,000
170,000
220099,,000000
118,000
332277,,000000
1,324,000
5,496,000
66,,882200,,000000
4,114,000
17,000
80,000
9977,,000000
46,000
1100,,993333,,000000
114433,,000000
In June 2023 the Company announced a new Mineral Resource Estimate was underway following the
extensive new knowledge gained from the underground mapping and channel sampling program, as
well as incorporating all assays received since October 2022.
The variability of mineralisation recognised from the underground mapping and channel sampling
provides optionality for mining and processing. This is supported by the steep tonnage and contained
metal increases from the current October 2022 MRE at various cut-off grades, as shown in Figure 6.
Technical Evaluations
During the financial year, Eagle Mountain Mining commenced various technical evaluations to assess
options for future mining and processing operations at Oracle Ridge Copper Project. These evaluations
were based on an underground mining operation and will consider various potential processing options.
A key part of the Company’s strategy is to develop an environmentally friendly and low emissions copper
mine to benefit all stakeholders. The Oracle Ridge Copper Mine is uniquely placed to deliver on this with
its topography, minimal existing surface footprint and extensive existing underground mine
infrastructure. The evaluations will leverage these unique characteristics of the Project and will aim to
achieve high levels of energy self-sufficiency while minimising surface impacts. The potential to produce
copper metal on site for domestic US consumption will also be considered together with the potential
to grow existing resources for long term project sustainability.
The recent underground drilling, sampling and mapping activities together with the results of drilling
conducted by Eagle Mountain Mining over the past two and a half years and by previous owners have
provided the confidence to move to technical evaluations, including processing, mining, infrastructure,
environmental and permitting.
23
EAGLE MOUNTAIN MINING | 2023 Annual Report
TTaabbllee 11 –– SSuummmmaarryy ooff UUppddaatteedd OOccttoobbeerr 22002222 MMRREE RReessoouurrccee CCaatteeggoorriieess aatt 11%% CCuu ccuutt--ooffff
RReessoouurrccee
CCaatteeggoorryy
MMeeaassuurreedd
IInnddiiccaatteedd
SSuubbttoottaall MM++II
IInnffeerrrreedd
TToottaall MM++II++II
TToonnnneess
[[MMtt]]
2.1
8.7
1100..88
5.7
1166..55
CCuu
[[%%]]
1.57
1.49
11..5500
1.36
11..4455
AAgg
[[gg//tt]]
16.42
14.94
1155..2233
14.85
1155..1100
AAuu
[[gg//tt]]
0.21
0.21
00..2211
0.15
00..1199
Differences may occur in totals due to rounding
CCoonnttaaiinneedd CCuu
CCoonnttaaiinneedd AAgg
CCoonnttaaiinneedd AAuu
[[tt]]
33,000
129,000
116622,,000000
77,000
224400,,000000
[[OOzz]]
1,111,000
4,178,000
55,,229900,,000000
2,719,000
88,,000099,,000000
[[OOzz]]
14,000
59,000
7744,,000000
28,000
110022,,000000
Significantly greater tonnages occur at lower copper cut-off grades, providing optionality for future
mining and processing studies (refer to Table 2 below and Figure 6 above).
TTaabbllee 22 –– SSuummmmaarryy ooff UUppddaatteedd OOccttoobbeerr 22002222 MMRREE RReessoouurrccee CCaatteeggoorriieess aatt 00..88%% CCuu ccuutt--ooffff
RReessoouurrccee
CCaatteeggoorryy
MMeeaassuurreedd
IInnddiiccaatteedd
SSuubbttoottaall MM++II
IInnffeerrrreedd
TToottaall MM++II++II
TToonnnneess
[[MMtt]]
2.8
13.2
1166..00
10.3
2266..33
CCuu
[[%%]]
1.40
1.28
11..3300
1.15
11..2244
AAgg
[[gg//tt]]
14.67
12.91
1133..2222
12.43
1122..9911
AAuu
[[gg//tt]]
0.19
0.19
00..1199
0.14
00..1177
Differences may occur in totals due to rounding
CCoonnttaaiinneedd CCuu
CCoonnttaaiinneedd AAgg
CCoonnttaaiinneedd AAuu
[[tt]]
39,000
170,000
220099,,000000
118,000
332277,,000000
[[OOzz]]
1,324,000
5,496,000
66,,882200,,000000
4,114,000
[[OOzz]]
17,000
80,000
9977,,000000
46,000
1100,,993333,,000000
114433,,000000
In June 2023 the Company announced a new Mineral Resource Estimate was underway following the
extensive new knowledge gained from the underground mapping and channel sampling program, as
well as incorporating all assays received since October 2022.
The variability of mineralisation recognised from the underground mapping and channel sampling
provides optionality for mining and processing. This is supported by the steep tonnage and contained
metal increases from the current October 2022 MRE at various cut-off grades, as shown in Figure 6.
Technical Evaluations
During the financial year, Eagle Mountain Mining commenced various technical evaluations to assess
options for future mining and processing operations at Oracle Ridge Copper Project. These evaluations
were based on an underground mining operation and will consider various potential processing options.
A key part of the Company’s strategy is to develop an environmentally friendly and low emissions copper
mine to benefit all stakeholders. The Oracle Ridge Copper Mine is uniquely placed to deliver on this with
its topography, minimal existing surface footprint and extensive existing underground mine
infrastructure. The evaluations will leverage these unique characteristics of the Project and will aim to
achieve high levels of energy self-sufficiency while minimising surface impacts. The potential to produce
copper metal on site for domestic US consumption will also be considered together with the potential
to grow existing resources for long term project sustainability.
The recent underground drilling, sampling and mapping activities together with the results of drilling
conducted by Eagle Mountain Mining over the past two and a half years and by previous owners have
provided the confidence to move to technical evaluations, including processing, mining, infrastructure,
environmental and permitting.
The evaluations are focused on production primarily from the existing Measured and Indicated
resources and will evaluate alternate mining scenarios to optimise returns, including larger scale
operations using the materially larger resource base at lower cut-off grades, or a smaller higher-grade
operation with selective mining. Recent advancements in equipment and process technologies will also
be considered with a view to lowering operating costs and increasing efficiencies for the Project.
A key project benefit is the previous production history and permitting. The current project permitting
status is outlined below (Table 3).
TTaabbllee 33 –– PPeerrmmiittttiinngg SSttaattuuss OOvveerrvviieeww
1 Air Quality Permit is for a 2000 tons per day operation from the mine / 3000 tons per day through a concentrator. Increases
from these rates require an update to the permit.
AAccrroonnyymmss::
AADDEEQQ – Arizona Department of Environmental Quality
AASSMMII - Arizona State Mine Inspector
AASSLLDD- Arizona State Land Department
UUSSFFSS - United States Forest Service
24
EAGLE MOUNTAIN MINING | 2023 Annual Report
Silver Mountain Copper Project (100%)
The Silver Mountain copper/gold project (“Silver Mountain”) is located in Arizona to the northwest of
Phoenix. The project area sits on the Laramide Arc, a northwest-southeast trending geological feature
containing world-class porphyry copper mines such as Bagdad, Miami and Resolution. It also lies on the
southern extension of a northeast-southwest prospective metallogenic belt that hosts United Verde and
Iron King, two historical mines of volcanogenic massive sulphide affinity. The intersection of these two
trends results in a favourable geologic setting with high complexity and potential for multiple
mineralisation styles.
The northern portion of the project area has a history of prospecting and mining of high-grade copper
from the 1890s into the 1920s. Except for limited campaigns in the 1960s, 1970s and early 1990s, there
had been no modern exploration at Silver Mountain. Commencing in 2013, Eagle Mountain Mining and
its subsidiaries have been the first companies to complete modern exploration over the Silver Mountain
project area.
Eagle Mountain Mining combined the fragmented land ownership along the main copper trend. A
portion of the tenements are held in patented claims, which grant royalty-free surface and mineral rights
with very low carrying costs. Silver Mountain encompasses three main prospects known as “Pacific
Horizon”, “Scarlett” and “Red Mule”, each having a unique mineralisation style.
Figure 7 - Map showing the land tenure and local geology of the Pacific Horizon, Scarlett and Red Mule prospects.
The Company views Silver Mountain as a very prospective project supported by multiple favourable
geological signatures. Further field mapping and geophysical surveys are planned with the aim of
defining the potential source of mineralisation outcropping at the surface.
Figure 8 below shows a hypothetical cross section across the Silver Mountain project illustrating the
different types of mineralisation targets and a postulated porphyry source at depth which could explain
the different mineralisation styles observed on the property.
25
Figure 8 - Conceptual mineralisation system at the Silver Mountain Project
CCoommppeetteenntt PPeerrssoonn SSttaatteemmeennttss
Where the Company references the Mineral Resource Estimate updated and released on 6 October
2022, it confirms that it is not aware of any new information or data that materially affects the
information included in that announcement, and all material assumptions and technical parameters
underpinning the Mineral Resource Estimate continue to apply and have not materially changed. In
addition, the form and context in which the Competent Persons findings are presented have not been
materially modified from the original reports.
Where the Company references previous exploration results including technical information from
previous ASX announcements and historic results, JORC Table 1 disclosures are included within them.
The Company confirms that it is not aware of any new information or data that materially affects the
information included in those announcements, and all material assumptions and technical parameters
underpinning the results within those announcements continue to apply and have not materially
changed. In addition, the form and context in which the Competent Persons findings are presented
have not been materially modified from the original reports.
EAGLE MOUNTAIN MINING | 2023 Annual Report
Silver Mountain Copper Project (100%)
The Silver Mountain copper/gold project (“Silver Mountain”) is located in Arizona to the northwest of
Phoenix. The project area sits on the Laramide Arc, a northwest-southeast trending geological feature
containing world-class porphyry copper mines such as Bagdad, Miami and Resolution. It also lies on the
southern extension of a northeast-southwest prospective metallogenic belt that hosts United Verde and
Iron King, two historical mines of volcanogenic massive sulphide affinity. The intersection of these two
trends results in a favourable geologic setting with high complexity and potential for multiple
mineralisation styles.
The northern portion of the project area has a history of prospecting and mining of high-grade copper
from the 1890s into the 1920s. Except for limited campaigns in the 1960s, 1970s and early 1990s, there
had been no modern exploration at Silver Mountain. Commencing in 2013, Eagle Mountain Mining and
its subsidiaries have been the first companies to complete modern exploration over the Silver Mountain
project area.
Eagle Mountain Mining combined the fragmented land ownership along the main copper trend. A
portion of the tenements are held in patented claims, which grant royalty-free surface and mineral rights
with very low carrying costs. Silver Mountain encompasses three main prospects known as “Pacific
Horizon”, “Scarlett” and “Red Mule”, each having a unique mineralisation style.
Figure 7 - Map showing the land tenure and local geology of the Pacific Horizon, Scarlett and Red Mule prospects.
The Company views Silver Mountain as a very prospective project supported by multiple favourable
geological signatures. Further field mapping and geophysical surveys are planned with the aim of
defining the potential source of mineralisation outcropping at the surface.
Figure 8 below shows a hypothetical cross section across the Silver Mountain project illustrating the
different types of mineralisation targets and a postulated porphyry source at depth which could explain
the different mineralisation styles observed on the property.
Figure 8 - Conceptual mineralisation system at the Silver Mountain Project
CCoommppeetteenntt PPeerrssoonn SSttaatteemmeennttss
Where the Company references the Mineral Resource Estimate updated and released on 6 October
2022, it confirms that it is not aware of any new information or data that materially affects the
information included in that announcement, and all material assumptions and technical parameters
underpinning the Mineral Resource Estimate continue to apply and have not materially changed. In
addition, the form and context in which the Competent Persons findings are presented have not been
materially modified from the original reports.
Where the Company references previous exploration results including technical information from
previous ASX announcements and historic results, JORC Table 1 disclosures are included within them.
The Company confirms that it is not aware of any new information or data that materially affects the
information included in those announcements, and all material assumptions and technical parameters
underpinning the results within those announcements continue to apply and have not materially
changed. In addition, the form and context in which the Competent Persons findings are presented
have not been materially modified from the original reports.
26
EAGLE MOUNTAIN MINING | 2023 Annual Report
AANNNNUUAALL MMIINNEERRAALL RREESSOOUURRCCEE SSTTAATTEEMMEENNTT
RReevviieeww ooff MMaatteerriiaall CChhaannggeess
The Company’s Mineral Resource Statement has been compiled in accordance with the Australian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code 2012) and
Chapter 5 of the ASX Listing Rules and ASX Guidance Note 31. The Company has no Ore Reserve
estimates at the date of this report.
The Company governs its activities in accordance with industry best-practice. The resource reports and
supporting data were subjected to internal analysis and peer-review before release.
MMiinneerraall RReessoouurrcceess
The Company’s Mineral Resource Estimate (MRE) at its Oracle Ridge Copper Project (“Oracle Ridge”) in
Arizona is shown as at 30 June 2023 in Tables 5 and 6, and is unchanged from last year’s Annual Mineral
Resource Statement as disclosed in the 2022 Annual Report and which incorporated an update
published on 6 October 2022.
SRK Consulting (Australasia) Pty Ltd (“SRK”), a well-respected international mining consultancy with
extensive experience in resource estimation, was engaged to review and complete the MRE in
conjunction with personnel from the Company. The MRE was reported in accordance with the JORC
Code 2012.
The MRE had incorporated a substantial amount of drilling and a significantly revised geological model.
The geological model was created by Company personnel and reviewed by SRK. The updated MRE was
estimated using ordinary kriging (“OK”), constrained to unique geologic units.
TTaabbllee 44 –– SSuummmmaarryy ooff eexxiissttiinngg MMiinneerraall RReessoouurrcceess
Resource
Project
Mineral Resource
Competent Person
Organisation
ASX Reporting
Date
Oracle Ridge
Rodney Brown
SRK Consulting (Australasia) Pty Ltd
6 October 2022
TTaabbllee 55 –– SSuummmmaarryy ooff OOrraaccllee RRiiddggee MMRREE
RReessoouurrccee CCaatteeggoorriieess aatt 11%% CCuu ccuutt--ooffff
RReessoouurrccee
CCaatteeggoorryy
TToonnnneess
[[MMtt]]
MMeeaassuurreedd
IInnddiiccaatteedd
2.1
8.7
CCuu
[[%%]]
1.57
1.49
AAgg
[[gg//tt]]
16.42
14.94
SSuubbttoottaall MM++II
1100..88
11..5500
1155..2233
IInnffeerrrreedd
TToottaall MM++II++II
5.7
1166..55
1.36
14.85
11..4455
1155..1100
AAuu
[[gg//tt]]
0.21
0.21
00..2211
0.15
00..1199
CCoonnttaaiinneedd CCuu
[[tt]]
CCoonnttaaiinneedd AAgg
[[OOzz]]
CCoonnttaaiinneedd AAuu
[[OOzz]]
33,000
129,000
116622,,000000
1,111,000
4,178,000
55,,229900,,000000
77,000
2,719,000
14,000
59,000
7744,,000000
28,000
224400,,000000
88,,000099,,000000
110022,,000000
Note - Totals may not add due to rounding differences
27
There has been no change to the Oracle Ridge Copper Project MRE from that disclosed in the 2022
Annual Mineral Resource Statement. Since the Company announced its maiden JORC 2012 Mineral
Resource Estimate in December 2020, the key changes in the MRE (as presented at a 1% copper cut-off
grade) are as follows:
• Definition of a maiden Measured resource of 2.1Mt at 1.57% Cu, 16.42g/t Ag and 0.21g/t Au for
33kt Cu, 1.1Moz Ag and 14koz of Au
• An overall 30% increase in total contained copper
• An overall 35% increase in total resource tonnes
Increased copper and silver grades at higher confidence resource categories
• Higher confidence Indicated and Measured resource tonnes have increased by 4.2 million
Inferred resources have remained mostly unchanged and now stand at 5.7 million tonnes. A
large proportion of newly discovered Inferred resources have been upgraded to Indicated
•
•
tonnes, or 64%
resources
TTaabbllee 66 –– CCoommppaarriissoonn ooff tthhee CCuurrrreenntt MMiinneerraall RReessoouurrccee EEssttiimmaatteess aatt aa 11%% CCuu ccuutt--ooffff ggrraaddee ttoo
eessttiimmaatteess aass aatt MMaarrcchh 22002222 aanndd DDeecceemmbbeerr 22002200
RReessoouurrccee
CCaatteeggoorryy
MMeeaassuurreedd
IInnddiiccaatteedd
SSuubbttoottaall
IInnffeerrrreedd
TToottaall
MMeeaassuurreedd
IInnddiiccaatteedd
SSuubbttoottaall
IInnffeerrrreedd
TToottaall
1177..00
IInnddiiccaatteedd
IInnffeerrrreedd
TToottaall
1122..22
MMtt
2.1
8.7
1100..88
5.7
1166..55
MMtt
2.1
7.5
99..66
7.3
MMtt
6.6
5.6
CCuu
[[%%]]
1.57
1.49
11..5500
1.36
11..4455
CCuu
[[%%]]
1.54
1.49
11..5500
1.45
11..4488
CCuu
[[%%]]
1.52
1.50
11..5511
AAgg
[[gg//tt]]
16.42
14.94
1155..2233
14.85
1155..1100
AAgg
[[gg//tt]]
15.84
14.50
1144..7799
15.48
1155..0099
AAgg
[[gg//tt]]
15.76
16.96
1166..3311
OOccttoobbeerr 22002222 MMRREE
MMaarrcchh 22002222 MMRREE
AAuu
[[gg//tt]]
0.21
0.21
00..2211
0.15
00..1199
AAuu
[[gg//tt]]
0.22
0.18
00..1199
0.15
00..1177
AAuu
[[gg//tt]]
0.19
0.18
00..1177
CCuu
[[tt]]
33,000
129,000
116622,,000000
77,000
224400,,000000
CCuu
[[tt]]
33,000
112,000
114455,,000000
106,000
225511,,000000
CCuu
[[tt]]
100,000
84,000
118844,,000000
JJuunnee 22002211 MMRREE ((DDeecceemmbbeerr 22002200))
AAgg
[[OOzz]]
1,111,000
4,178,000
55,,229900,,000000
2,719,000
88,,000099,,000000
AAgg
[[OOzz]]
1,093,000
3,518,000
44,,661111,,000000
3,632,000
88,,224433,,000000
AAgg
[[OOzz]]
3,348,000
3,033,000
66,,338822,,000000
AAuu
[[OOzz]]
14,000
59,000
7744,,000000
28,000
110022,,000000
AAuu
[[OOzz]]
15,000
44,000
5599,,000000
34,000
9933,,000000
AAuu
[[OOzz]]
40,000
33,000
7733,,000000
Note - Totals may not add due to rounding differences
EAGLE MOUNTAIN MINING | 2023 Annual Report
AANNNNUUAALL MMIINNEERRAALL RREESSOOUURRCCEE SSTTAATTEEMMEENNTT
RReevviieeww ooff MMaatteerriiaall CChhaannggeess
The Company’s Mineral Resource Statement has been compiled in accordance with the Australian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code 2012) and
Chapter 5 of the ASX Listing Rules and ASX Guidance Note 31. The Company has no Ore Reserve
estimates at the date of this report.
The Company governs its activities in accordance with industry best-practice. The resource reports and
supporting data were subjected to internal analysis and peer-review before release.
MMiinneerraall RReessoouurrcceess
The Company’s Mineral Resource Estimate (MRE) at its Oracle Ridge Copper Project (“Oracle Ridge”) in
Arizona is shown as at 30 June 2023 in Tables 5 and 6, and is unchanged from last year’s Annual Mineral
Resource Statement as disclosed in the 2022 Annual Report and which incorporated an update
published on 6 October 2022.
SRK Consulting (Australasia) Pty Ltd (“SRK”), a well-respected international mining consultancy with
extensive experience in resource estimation, was engaged to review and complete the MRE in
conjunction with personnel from the Company. The MRE was reported in accordance with the JORC
Code 2012.
The MRE had incorporated a substantial amount of drilling and a significantly revised geological model.
The geological model was created by Company personnel and reviewed by SRK. The updated MRE was
estimated using ordinary kriging (“OK”), constrained to unique geologic units.
TTaabbllee 44 –– SSuummmmaarryy ooff eexxiissttiinngg MMiinneerraall RReessoouurrcceess
Resource
Project
Mineral Resource
Competent Person
Organisation
ASX Reporting
Date
Oracle Ridge
Rodney Brown
SRK Consulting (Australasia) Pty Ltd
6 October 2022
TTaabbllee 55 –– SSuummmmaarryy ooff OOrraaccllee RRiiddggee MMRREE
RReessoouurrccee CCaatteeggoorriieess aatt 11%% CCuu ccuutt--ooffff
RReessoouurrccee
CCaatteeggoorryy
TToonnnneess
[[MMtt]]
MMeeaassuurreedd
IInnddiiccaatteedd
IInnffeerrrreedd
TToottaall MM++II++II
2.1
8.7
5.7
1166..55
CCuu
[[%%]]
1.57
1.49
AAgg
[[gg//tt]]
16.42
14.94
1.36
14.85
11..4455
1155..1100
AAuu
[[gg//tt]]
0.21
0.21
00..2211
0.15
00..1199
SSuubbttoottaall MM++II
1100..88
11..5500
1155..2233
CCoonnttaaiinneedd CCuu
CCoonnttaaiinneedd AAgg
CCoonnttaaiinneedd AAuu
[[tt]]
[[OOzz]]
33,000
129,000
116622,,000000
1,111,000
4,178,000
55,,229900,,000000
77,000
2,719,000
[[OOzz]]
14,000
59,000
7744,,000000
28,000
Note - Totals may not add due to rounding differences
There has been no change to the Oracle Ridge Copper Project MRE from that disclosed in the 2022
Annual Mineral Resource Statement. Since the Company announced its maiden JORC 2012 Mineral
Resource Estimate in December 2020, the key changes in the MRE (as presented at a 1% copper cut-off
grade) are as follows:
• Definition of a maiden Measured resource of 2.1Mt at 1.57% Cu, 16.42g/t Ag and 0.21g/t Au for
33kt Cu, 1.1Moz Ag and 14koz of Au
• An overall 30% increase in total contained copper
• An overall 35% increase in total resource tonnes
•
• Higher confidence Indicated and Measured resource tonnes have increased by 4.2 million
Increased copper and silver grades at higher confidence resource categories
•
tonnes, or 64%
Inferred resources have remained mostly unchanged and now stand at 5.7 million tonnes. A
large proportion of newly discovered Inferred resources have been upgraded to Indicated
resources
TTaabbllee 66 –– CCoommppaarriissoonn ooff tthhee CCuurrrreenntt MMiinneerraall RReessoouurrccee EEssttiimmaatteess aatt aa 11%% CCuu ccuutt--ooffff ggrraaddee ttoo
eessttiimmaatteess aass aatt MMaarrcchh 22002222 aanndd DDeecceemmbbeerr 22002200
RReessoouurrccee
CCaatteeggoorryy
MMeeaassuurreedd
IInnddiiccaatteedd
SSuubbttoottaall
IInnffeerrrreedd
TToottaall
MMeeaassuurreedd
IInnddiiccaatteedd
SSuubbttoottaall
IInnffeerrrreedd
MMtt
2.1
8.7
1100..88
5.7
1166..55
MMtt
2.1
7.5
99..66
7.3
TToottaall
1177..00
IInnddiiccaatteedd
IInnffeerrrreedd
MMtt
6.6
5.6
TToottaall
1122..22
CCuu
[[%%]]
1.57
1.49
11..5500
1.36
11..4455
CCuu
[[%%]]
1.54
1.49
11..5500
1.45
11..4488
CCuu
[[%%]]
1.52
1.50
11..5511
AAgg
[[gg//tt]]
16.42
14.94
1155..2233
14.85
1155..1100
AAgg
[[gg//tt]]
15.84
14.50
1144..7799
15.48
1155..0099
OOccttoobbeerr 22002222 MMRREE
AAuu
[[gg//tt]]
0.21
0.21
00..2211
0.15
CCuu
[[tt]]
33,000
129,000
116622,,000000
77,000
00..1199
224400,,000000
MMaarrcchh 22002222 MMRREE
AAuu
[[gg//tt]]
CCuu
[[tt]]
0.22
0.18
00..1199
0.15
00..1177
33,000
112,000
114455,,000000
106,000
225511,,000000
AAgg
[[OOzz]]
1,111,000
4,178,000
55,,229900,,000000
2,719,000
88,,000099,,000000
AAgg
[[OOzz]]
1,093,000
3,518,000
44,,661111,,000000
3,632,000
88,,224433,,000000
JJuunnee 22002211 MMRREE ((DDeecceemmbbeerr 22002200))
AAgg
[[gg//tt]]
15.76
16.96
1166..3311
AAuu
[[gg//tt]]
0.19
0.18
00..1177
CCuu
[[tt]]
100,000
84,000
118844,,000000
AAgg
[[OOzz]]
3,348,000
3,033,000
66,,338822,,000000
AAuu
[[OOzz]]
14,000
59,000
7744,,000000
28,000
110022,,000000
AAuu
[[OOzz]]
15,000
44,000
5599,,000000
34,000
9933,,000000
AAuu
[[OOzz]]
40,000
33,000
7733,,000000
224400,,000000
88,,000099,,000000
110022,,000000
Note - Totals may not add due to rounding differences
28
EAGLE MOUNTAIN MINING | 2023 Annual Report
GGoovveerrnnaannccee aanndd IInntteerrnnaall CCoonnttrroollss
AASSXX AAddddiittiioonnaall IInnffoorrmmaattiioonn
The Company ensures good governance in relation to resource estimation. The geological model used
for the Mineral Resource was prepared by the Company in Leapfrog Geo using implicit modelling
techniques and included all available drill hole data as well as surface and underground mapping. The
geological model and MRE were independently reviewed by SRK.
All drill hole data is stored in-house within a commercially available purpose designed database
management system and subjected to industry standard validation procedures. Quality control on
resource drill programs have been undertaken to industry standards with implementation of
appropriate drilling type, survey data collection, assay standards, sample duplicates and repeat
analyses.
The resource reports and supporting data were subjected to internal analysis and peer review before
release. The Company is not aware of any additional information, other than that reported, which would
have a material effect on the estimates as reported.
Due to the nature, stage and size of the Company’s existing operations, the Board believes there would
be no efficiencies gained by establishing a separate mineral reserves and resources committee
responsible for reviewing and monitoring the Company’s processes for calculating mineral reserves and
resources estimates and for ensuring that the appropriate controls are applied to such calculations.
The Company confirms it is not aware of any new information or data since the updated Mineral
Resource was declared that materially affects the information included in this Mineral Resource
Statement.
COMPETENT PERSONS STATEMENT
The information in this Annual Mineral Resource Statement is based on, and fairly represents
information and supporting documentation reviewed by Mr Alex Lukomskyj, who is a member of The
Australasian Institute of Mining and Metallurgy. Mr Lukomskyj has sufficient experience that is relevant
to the style of mineralisation and type of deposit under consideration and to the activity 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 (JORC Code 2012). Mr
Lukomskyj is the Chief Resource Geologist at Eagle Mountain Mining Limited and consents to the
inclusion in this document of information in the form and context in which it appears. Mr Lukomskyj
holds shares and options in Eagle Mountain Mining Limited.
29
Pursuant to the Listing Requirements of the Australian Securities Exchange, the shareholder information set
out below was applicable as at 27 September 2023.
DDiissttrriibbuuttiioonn
NNuummbbeerr ooff
SSeeccuurriittiieess hheelldd
%% ooff iissssuueedd ccaappiittaall
AA..
DDiissttrriibbuuttiioonn ooff EEqquuiittyy SSeeccuurriittiieess
Analysis of numbers of shareholders by size of holding:
Ordinary Fully Paid Shares
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
More than 100,000
sshhaarreehhoollddeerrss
125
438
350
966
308
58,503
1,423,669
2,786,986
37,991,261
262,706,444
0.02
0.47
0.91
12.46
86.14
110000%%
TToottaallss
22,,118877
330044,,996666,,886633
There are 657 shareholders holding less than a marketable parcel of ordinary shares.
BB..
TTwweennttyy LLaarrggeesstt SShhaarreehhoollddeerrss
The names of the twenty largest holders of quoted shares are listed below:
SShhaarreehhoollddeerr NNaammee
MOUNTAIN MINING A/C>
SILVER MOUNTAIN MINING NOMINEE PTY LTD
22,103,031
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
GEORGE CHIEN-HSUN LU
MR PHILIP JOHN CAWOOD
VINCERE RESOURCES HOLDINGS LLC
MR MARX LIN
ARALAD MANAGEMENT PTY LTD
BNP PARIBAS NOMINEES PTY LTD
3,795,959
OOrrddiinnaarryy SShhaarreess -- QQuuootteedd
NNuummbbeerr ooff
sshhaarreess
%% ooff
SShhaarreess
8.78
7.25
2.74
1.93
1.64
1.62
1.51
1.24
1.22
8,351,655
5,886,000
5,000,000
4,950,324
4,600,000
3,729,412
EAGLE MOUNTAIN MINING | 2023 Annual Report
The Company ensures good governance in relation to resource estimation. The geological model used
for the Mineral Resource was prepared by the Company in Leapfrog Geo using implicit modelling
techniques and included all available drill hole data as well as surface and underground mapping. The
geological model and MRE were independently reviewed by SRK.
All drill hole data is stored in-house within a commercially available purpose designed database
management system and subjected to industry standard validation procedures. Quality control on
resource drill programs have been undertaken to industry standards with implementation of
appropriate drilling type, survey data collection, assay standards, sample duplicates and repeat
analyses.
The resource reports and supporting data were subjected to internal analysis and peer review before
release. The Company is not aware of any additional information, other than that reported, which would
have a material effect on the estimates as reported.
Due to the nature, stage and size of the Company’s existing operations, the Board believes there would
be no efficiencies gained by establishing a separate mineral reserves and resources committee
responsible for reviewing and monitoring the Company’s processes for calculating mineral reserves and
resources estimates and for ensuring that the appropriate controls are applied to such calculations.
The Company confirms it is not aware of any new information or data since the updated Mineral
Resource was declared that materially affects the information included in this Mineral Resource
Statement.
information and supporting documentation reviewed by Mr Alex Lukomskyj, who is a member of The
Australasian Institute of Mining and Metallurgy. Mr Lukomskyj has sufficient experience that is relevant
to the style of mineralisation and type of deposit under consideration and to the activity 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 (JORC Code 2012). Mr
Lukomskyj is the Chief Resource Geologist at Eagle Mountain Mining Limited and consents to the
inclusion in this document of information in the form and context in which it appears. Mr Lukomskyj
GGoovveerrnnaannccee aanndd IInntteerrnnaall CCoonnttrroollss
AASSXX AAddddiittiioonnaall IInnffoorrmmaattiioonn
Pursuant to the Listing Requirements of the Australian Securities Exchange, the shareholder information set
out below was applicable as at 27 September 2023.
AA..
DDiissttrriibbuuttiioonn ooff EEqquuiittyy SSeeccuurriittiieess
Analysis of numbers of shareholders by size of holding:
Ordinary Fully Paid Shares
DDiissttrriibbuuttiioonn
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
More than 100,000
NNuummbbeerr ooff
sshhaarreehhoollddeerrss
SSeeccuurriittiieess hheelldd
%% ooff iissssuueedd ccaappiittaall
125
438
350
966
308
58,503
1,423,669
2,786,986
37,991,261
262,706,444
0.02
0.47
0.91
12.46
86.14
110000%%
TToottaallss
22,,118877
330044,,996666,,886633
COMPETENT PERSONS STATEMENT
BB..
TTwweennttyy LLaarrggeesstt SShhaarreehhoollddeerrss
The information in this Annual Mineral Resource Statement is based on, and fairly represents
The names of the twenty largest holders of quoted shares are listed below:
There are 657 shareholders holding less than a marketable parcel of ordinary shares.
SShhaarreehhoollddeerr NNaammee
SILVER MOUNTAIN MINING NOMINEE PTY LTD
OOrrddiinnaarryy SShhaarreess -- QQuuootteedd
%% ooff
SShhaarreess
18.78
NNuummbbeerr ooff
sshhaarreess
57,270,001
holds shares and options in Eagle Mountain Mining Limited.
METECH SUPER PTY LTD
22,103,031
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
26,761,143
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
GEORGE CHIEN-HSUN LU
MR PHILIP JOHN CAWOOD
VINCERE RESOURCES HOLDINGS LLC
MR MARX LIN
8,351,655
5,886,000
5,000,000
4,950,324
4,600,000
BNP PARIBAS NOMINEES PTY LTD
3,795,959
ARALAD MANAGEMENT PTY LTD
3,729,412
8.78
7.25
2.74
1.93
1.64
1.62
1.51
1.24
1.22
30
EAGLE MOUNTAIN MINING | 2023 Annual Report
OOrrddiinnaarryy SShhaarreess -- QQuuootteedd
%% ooff
SShhaarreess
1.08
NNuummbbeerr ooff
sshhaarreess
3,283,139
2,960,000
2,900,000
2,843,472
2,694,000
2,500,000
0.97
0.95
0.93
0.88
0.82
0.81
0.76
0.65
0.62
Performance Rights
NNuummbbeerr ooff RRiigghhttss
EExxppiirryy DDaattee
NNuummbbeerr ooff
HHoollddeerrss
300,000
330000,,000000
1 February 2025
1
EE..
VVoottiinngg RRiigghhttss
will have one vote.
In accordance with the Company’s Constitution, voting rights in respect of ordinary shares are on a show of
hands whereby each member present in person or by proxy shall have one vote and upon a poll, each share
There are no voting rights in respect of options or performance rights over unissued shares.
FF..
RReessttrriicctteedd SSeeccuurriittiieess
There are no restricted securities on issue.
SShhaarreehhoollddeerr NNaammee
CITICORP NOMINEES PTY LIMITED
MR GEORGE CHIEN-HSUN LU
MR BERTRAND LALANNE
MR GEORGE CHIEN HSUN LU + MRS JENNY CHIN PAO LU
QUARTZ MOUNTAIN MINING PTY LTD
GUNSYND PLC
EQUITY TRUSTEES LIMITED
2,481,818
LU'S INTERNATIONAL LIMITED
MISS GABRIELLA RUBAGOTTI
MR ANDREW GRANTON BROWN
2,314,000
1,974,925
1,900,000
TToottaall
116688,,229988,,887799
5555..1199%%
CC..
SSuubbssttaannttiiaall SShhaarreehhoollddeerrss
An extract of the Company’s Register of Substantial Shareholders (who hold 5% or more of the issued capital)
is set out below:
HHoollddeerr ooff RReelleevvaanntt IInntteerreesstt
Silver Mountain Mining Nominee Pty Ltd and
Associated Entities
IIssssuueedd OOrrddiinnaarryy SShhaarreess
NNuummbbeerr ooff
sshhaarreess
%% ooff sshhaarreess
84,467,032
27.7%
Paradice Investment Management Pty Ltd
18,282,896
6.383%
DD..
UUnnqquuootteedd SSeeccuurriittiieess
Options over Unissued Shares
NNuummbbeerr
EExxeerrcciissee PPrriiccee
EExxppiirryy DDaattee
NNuummbbeerr ooff HHoollddeerrss
ooff OOppttiioonnss
650,000
2,500,000
2,600,000
6,000,000
2,000,000
1133,,775500,,000000
20 cents
52 cents
52 cents
55 cents
81.25 cents
7 October 2023
22 February 2024
1 July 2024
1 July 2024
12 October 2023
1
1
7
6
1
31
EAGLE MOUNTAIN MINING | 2023 Annual Report
Performance Rights
NNuummbbeerr ooff RRiigghhttss
EExxppiirryy DDaattee
300,000
330000,,000000
1 February 2025
NNuummbbeerr ooff
HHoollddeerrss
1
MR GEORGE CHIEN HSUN LU + MRS JENNY CHIN PAO LU
QUARTZ MOUNTAIN MINING PTY LTD
GUNSYND PLC
EQUITY TRUSTEES LIMITED
2,481,818
EE..
VVoottiinngg RRiigghhttss
In accordance with the Company’s Constitution, voting rights in respect of ordinary shares are on a show of
hands whereby each member present in person or by proxy shall have one vote and upon a poll, each share
will have one vote.
There are no voting rights in respect of options or performance rights over unissued shares.
TToottaall
116688,,229988,,887799
5555..1199%%
FF..
RReessttrriicctteedd SSeeccuurriittiieess
There are no restricted securities on issue.
OOrrddiinnaarryy SShhaarreess -- QQuuootteedd
NNuummbbeerr ooff
sshhaarreess
3,283,139
%% ooff
SShhaarreess
1.08
2,960,000
2,900,000
2,843,472
2,694,000
2,500,000
2,314,000
1,974,925
1,900,000
0.97
0.95
0.93
0.88
0.82
0.81
0.76
0.65
0.62
SShhaarreehhoollddeerr NNaammee
CITICORP NOMINEES PTY LIMITED
MR GEORGE CHIEN-HSUN LU
MR BERTRAND LALANNE
LU'S INTERNATIONAL LIMITED
MISS GABRIELLA RUBAGOTTI
MR ANDREW GRANTON BROWN
CC..
SSuubbssttaannttiiaall SShhaarreehhoollddeerrss
is set out below:
HHoollddeerr ooff RReelleevvaanntt IInntteerreesstt
An extract of the Company’s Register of Substantial Shareholders (who hold 5% or more of the issued capital)
IIssssuueedd OOrrddiinnaarryy SShhaarreess
NNuummbbeerr ooff
%% ooff sshhaarreess
sshhaarreess
Silver Mountain Mining Nominee Pty Ltd and
84,467,032
27.7%
Associated Entities
Paradice Investment Management Pty Ltd
18,282,896
6.383%
DD..
UUnnqquuootteedd SSeeccuurriittiieess
Options over Unissued Shares
NNuummbbeerr
EExxeerrcciissee PPrriiccee
EExxppiirryy DDaattee
NNuummbbeerr ooff HHoollddeerrss
ooff OOppttiioonnss
650,000
2,500,000
2,600,000
6,000,000
2,000,000
1133,,775500,,000000
20 cents
52 cents
52 cents
55 cents
7 October 2023
22 February 2024
1 July 2024
1 July 2024
81.25 cents
12 October 2023
1
1
7
6
1
32
EAGLE MOUNTAIN MINING | 2023 Annual Report
Additional ASX Information
Schedule of interests in mining tenements
EEaaggllee MMoouunnttaaiinn mmiinneerraall lliicceenncceess aass aatt 2277 SSeepptteemmbbeerr 22002233 aarree aallll pprreesseennttllyy llooccaatteedd iinn tthhee SSttaattee ooff
AArriizzoonnaa,, UUnniitteedd SSttaatteess ooff AAmmeerriiccaa..
Prospect &
Tenure type
Claim Reference
(Tenement)
Percentage
held
PPaacciiffiicc HHoorriizzoonn
Patented Claims
(26 individual claims)
Unpatented Claims
(150 individual claims)
Exploration Permit
(1 individual permit)
SSccaarrlleetttt
Unpatented Claims
(92 individual claims)
RReedd MMuullee
Unpatented Claims
(98 individual claims)
SSIILLVVEERR MMOOUUNNTTAAIINN PPRROOJJEECCTT
Empire, Copper Ash, Palestine, Buffalo, Little Pittsburg,
Austin, Wellington, Eagle, Number Ten, Number Eleven,
Number Twelve, Number Thirteen, Noonday, South
Noonday, Dudley, Comet, Alameda, Virginia, Mars, Ashland,
Oakland, Sunnyside, Cuprite, Azurite, Yavapai and Jumbo
SMM#1-14, SMM#17-145, SMM#147, SMM#149, SMM151,
SMM#155, SMM#157, SMM#159, SMM#161
008-012-0870
SCA#1-15, SCA#57-133
SMM#146, SMM#148, SMM#150, SMM#152, SMM#153,
SMM#154, SMM#158, SMM#160, SMM#162-207,
SMM#210-212, SCA#16-56
Exploration Permit
(2 individual permits)
008-120872
RRhhyyoolliittee TTaarrggeett
Unpatented Claims
(70 individual claims)
Exploration Permit
(1 individual permit)
SMMSO#001 - 015; SMMSO#023 - 048; SMMSO#054;
SMMSO#056; SMMSO#058 - 084
008-120101
100%
100%
100%
100%
100%
100%
100%
100%
33
Prospect &
Tenure type
Claim Reference
(Tenement)
Percentage
held
OORRAACCLLEE RRIIDDGGEE CCOOPPPPEERR PPRROOJJEECCTT
Parcel 1 (Roosevelt, Way-up, Homestake, Lone Pine, Imperial
and Hidden Treasure)
Parcel 2 (Eagle, York, Copper Peak and Golden Peak No 2)
Parcel 3 (Grand Central Lode)
Parcel 4 (Tunnel Site, Major McKinley, Marble Peak, Wedge,
Giant, Copper Head, Centennial, General R E Lee and Blizzard)
Parcel 5 (Oversight MS3461)
Parcel 6 ( Daily No3, Daily No5, Sphinx, Roskruge, Calumet,
Edith, Daily Extension, Cave, Wedge No3, Wedge No2 and
Parcel 7 (Copper Princess, Apache Central and Daily Tunnel
Katherine)
Site)
Parcel 8 (Oversight MS3504)
Parcel 9 (Apex, Alabama, Bornite, Contact, Cuprite, Epidote,
Embersite, Garnet, Over the Top, Yellow Copper, Valley, Apex
100%
No2, Keeney and Wilson)
Parcel 10 (Chalcopyrite and Peacock)
Parcel 11 (Daily Extension No2, Daily Extension No3, Daily
Extension No4)
Parcel 12 (H T Fraction)
Parcel 13 (Turkey)
Parcel 22 (Cochise)
Parcel 27 (Holly Terror)
Parcel 28 (Precious Metals)
That portion of Parcels 24 and 25 lying within: (Apache,
Maricopa, Yavapai, Buster, Major, Greenlee)
Unpatented Claims
(50 individual
claims)
Jody #1 – 20, Lorelei #1 – 7,
Olesfya #1 – 23
WTO 1-24 Lode Claims
WTO 25-106, 115-124, 142-144 Lode Claims
Unpatented Claims
WTO 106-114, 125-141 Lode Claims, T11S R16E
100%
100%
100%
100%
Patented Claims
(60 individual
claims)
Red Hawk
Unpatented Claims
(24 individual
claims)
OREX
Unpatented Claims
(93 individual
claims)
Golden Eagle
(27 individual
claims)
EAGLE MOUNTAIN MINING | 2023 Annual Report
Additional ASX Information
Schedule of interests in mining tenements
EEaaggllee MMoouunnttaaiinn mmiinneerraall lliicceenncceess aass aatt 2277 SSeepptteemmbbeerr 22002233 aarree aallll pprreesseennttllyy llooccaatteedd iinn tthhee SSttaattee ooff
AArriizzoonnaa,, UUnniitteedd SSttaatteess ooff AAmmeerriiccaa..
Prospect &
Tenure type
Claim Reference
(Tenement)
Percentage
held
SSIILLVVEERR MMOOUUNNTTAAIINN PPRROOJJEECCTT
Empire, Copper Ash, Palestine, Buffalo, Little Pittsburg,
Austin, Wellington, Eagle, Number Ten, Number Eleven,
Number Twelve, Number Thirteen, Noonday, South
Noonday, Dudley, Comet, Alameda, Virginia, Mars, Ashland,
Oakland, Sunnyside, Cuprite, Azurite, Yavapai and Jumbo
SMM#1-14, SMM#17-145, SMM#147, SMM#149, SMM151,
SMM#155, SMM#157, SMM#159, SMM#161
008-012-0870
SCA#1-15, SCA#57-133
PPaacciiffiicc HHoorriizzoonn
Patented Claims
(26 individual claims)
Unpatented Claims
(150 individual claims)
Exploration Permit
(1 individual permit)
SSccaarrlleetttt
Unpatented Claims
(92 individual claims)
RReedd MMuullee
Unpatented Claims
(98 individual claims)
SMM#146, SMM#148, SMM#150, SMM#152, SMM#153,
100%
SMM#154, SMM#158, SMM#160, SMM#162-207,
SMM#210-212, SCA#16-56
Exploration Permit
(2 individual permits)
008-120872
RRhhyyoolliittee TTaarrggeett
Unpatented Claims
SMMSO#001 - 015; SMMSO#023 - 048; SMMSO#054;
(70 individual claims)
SMMSO#056; SMMSO#058 - 084
Exploration Permit
(1 individual permit)
008-120101
100%
100%
100%
100%
100%
100%
100%
Prospect &
Tenure type
Claim Reference
(Tenement)
Percentage
held
Patented Claims
(60 individual
claims)
OORRAACCLLEE RRIIDDGGEE CCOOPPPPEERR PPRROOJJEECCTT
Parcel 1 (Roosevelt, Way-up, Homestake, Lone Pine, Imperial
and Hidden Treasure)
Parcel 2 (Eagle, York, Copper Peak and Golden Peak No 2)
Parcel 3 (Grand Central Lode)
Parcel 4 (Tunnel Site, Major McKinley, Marble Peak, Wedge,
Giant, Copper Head, Centennial, General R E Lee and Blizzard)
Parcel 5 (Oversight MS3461)
Parcel 6 ( Daily No3, Daily No5, Sphinx, Roskruge, Calumet,
Edith, Daily Extension, Cave, Wedge No3, Wedge No2 and
Katherine)
Parcel 7 (Copper Princess, Apache Central and Daily Tunnel
Site)
Parcel 8 (Oversight MS3504)
Parcel 9 (Apex, Alabama, Bornite, Contact, Cuprite, Epidote,
Embersite, Garnet, Over the Top, Yellow Copper, Valley, Apex
No2, Keeney and Wilson)
Parcel 10 (Chalcopyrite and Peacock)
Parcel 11 (Daily Extension No2, Daily Extension No3, Daily
Extension No4)
Parcel 12 (H T Fraction)
Parcel 13 (Turkey)
Parcel 22 (Cochise)
Parcel 27 (Holly Terror)
Parcel 28 (Precious Metals)
That portion of Parcels 24 and 25 lying within: (Apache,
Maricopa, Yavapai, Buster, Major, Greenlee)
Unpatented Claims
(50 individual
claims)
Jody #1 – 20, Lorelei #1 – 7,
Olesfya #1 – 23
Red Hawk
Unpatented Claims
(24 individual
claims)
OREX
Unpatented Claims
(93 individual
claims)
Golden Eagle
Unpatented Claims
(27 individual
claims)
WTO 1-24 Lode Claims
WTO 25-106, 115-124, 142-144 Lode Claims
WTO 106-114, 125-141 Lode Claims, T11S R16E
100%
100%
100%
100%
100%
34
EAGLE MOUNTAIN MINING | 2023 Annual Report
Financial
Report
35
35
EAGLE MOUNTAIN MINING | 2023 Annual Report
EAGLE MOUNTAIN MINING | 2023 Annual Report DIRECTORS’ REPORT
The Directors present their report on Eagle Mountain Mining Limited (“Eagle Mountain” or the
“Company”) and its controlled entities (the “Group”) for the year ended 30 June 2023.
DDIIRREECCTTOORRSS
The names and details of the Group’s Directors in office during the year until the date of this report
are as follows. Directors were in office for this entire year unless otherwise stated.
RRiicckk CCrraabbbb - B. Juris (Hons), LLB, MBA, FAICD
((NNoonn--EExxeeccuuttiivvee CChhaaiirrmmaann))
Rick Crabb holds degrees of Bachelor of Jurisprudence (Honours), Bachelor
of Laws and Master of Business Administration from the University of
Western Australia. He practised as a solicitor from 1980 to 2004 with
Robinson Cox (now Clayton Utz) and Blakiston & Crabb (now Gilbert + Tobin)
specialising in mining, corporate and commercial law, advised in relation to
numerous project developments in Australia and Africa.
Rick has since focused on his public company directorships and
investments. He has been involved as a director and strategic shareholder
in a number of successful public companies operating in mining, oil
production and property development. He is currently Non-executive Chairman of Ora Gold Limited
and Non-executive Chairman of Leo Lithium Limited.
CChhaarrlleess BBaassss - B.Sc. Geology, M.Sc. Mining Engineering/Mineral Processing, FAICD, FAusIMM, FAIG;
Honorary Doctorate of Business, Edith Cowan University, Western Australia;
((MMaannaaggiinngg DDiirreeccttoorr))
Honorary Doctorate of Commerce, Curtin University, Western Australia.
Charles worked as a geologist and then plant metallurgist at Patino Mines’
copper-gold mine in northern Quebec. While there, he won the Canadian
Mineral Industry Scholarship to study mineral processing at Queen’s
University.
After Queens, in 1976, Charles joined AMAX Inc, an American mining
company in their Head Office and came to Perth in 1978 for a two-year
secondment to Mt Newman Mining. He then spent almost two years at
the Twin Buttes copper mine near Tucson, Arizona.
Charles returned to Australia and established a consulting and mining
software company, Metech Pty Ltd in early 1982. He formed Eagle Mining Corporation in 1992 with
Tony Poli and was responsible for the deal that led to the discovery of the very successful Nimary Gold
Mine, now part of Northern Star’s Jundee operation. Following an uninvited takeover Charles co-
founded Aquila Resources Ltd with Tony Poli in 2000 and helped transition it from a gold explorer to
iron ore and coal before it too was subject to a $1.4 billion takeover in 2014 at the hands of a joint bid
between Baosteel and ASX-listed Aurizon.
Eagle Mountain Mining listed on the ASX in 2018 and shortly thereafter Charlie negotiated the deal to
bring the Oracle Ridge copper project near Tucson out of receivership.
In addition to his role as Managing Director of EM2, Charles is involved in his various family businesses
and is very active in philanthropy. He is the founder and Chairman of the Centre of Entrepreneurial
Research and Innovation (“CERI”), a charitable organisation working with post-graduate researchers in
fostering a start-up culture for high knowledge and high value industry in WA.
Page 3
36
EAGLE MOUNTAIN MINING | 2023 Annual Report
DIRECTORS’ REPORT
RRooggeerr PPoorrtt – BA, FCA, FAICD
((NNoonn--EExxeeccuuttiivvee DDiirreeccttoorr))
Roger Port was a partner of PricewaterhouseCoopers from 1997 to 2016.
He has over 30 years’ experience in financial analysis, company and
business valuations,
transaction due diligence and mergers and
acquisitions and led the PricewaterhouseCoopers Perth Deals team from
2009 to 2016. He has had significant experience in the resources sector in
his career and jointly led the PwC Australia Deals Energy & Mining industry
group for five years.
Roger is a graduate of Macquarie University and gained a Graduate
Diploma in Applied Finance and Investment from the Securities Institute of
Australia. He is a Fellow of Chartered Accountants Australia and New
Zealand and a Fellow of the Australian Institute of Company Directors.
Roger is a board member of the Harry Perkins Institute of Medical Research and Linear Clinical
Research Limited.
BBrreetttt RRoowwee - BComm, MAcc, GAICD
((AAlltteerrnnaattee DDiirreeccttoorr ffoorr CChhaarrlleess BBaassss))
Brett Rowe has over 20 years’ experience in the financial services industry
and is a graduate of the Australian Institute of Company Directors. He holds
a Bachelor of Commerce degree and a Masters of Accounting.
Brett is a director and the chief executive officer of The Bass Group, as well
as a director of The Bass Family Foundation. Brett is responsible for
managing the global financial interests of the Bass Family, as well as the
Foundation’s ongoing support of education and health in disadvantaged
children and youth in regional Western Australia.
Brett is also a director of the Centre for Entrepreneurial Research and
Innovation Limited (CERI). CERI aims to assist the growth of WA’s non-mining industry through a strong
innovation base where high-knowledge start-up company formation can be accelerated. This is
achieved through the co-creation of a WA-based venture capital industry.
CCHHIIEEFF EEXXEECCUUTTIIVVEE OOFFFFIICCEERR
TTiimm MMaassoonn – B. Eng (Hons) MBA; GAICD
Mr Mason has over 20 years’ experience in the mining and engineering
sectors across a broad range of corporate, operations, business
development and engineering roles. His recent roles of General Manager
Operations and General Manager Projects and
involved
conducting feasibility studies, project development and operations start-up,
business development, project financing and corporate presentations.
Innovation
Mr Mason holds a Bachelor of Engineering Honours (Geotechnical) from the
Royal Melbourne
Institute of Technology, a Masters of Business
Administration from Murdoch University and is a Graduate Member of the
Australian Institute of Company Directors.
37
Page 4
EAGLE MOUNTAIN MINING | 2023 Annual Report
DIRECTORS’ REPORT
CCOOMMPPAANNYY SSEECCRREETTAARRYY
MMaarrkk PPiittttss - B.Bus; FCA; GAICD
((CCoommppaannyy SSeeccrreettaarryy))
Mark Pitts is a Principal in the Company Secretarial and CFO advisory
divisions of the Automic Group providing secretarial support, corporate and
compliance advice, he has over 30 years’ experience
in business
administration and corporate compliance. Having started his career with
KPMG in Perth, Mark has worked at a senior management level in a variety
of commercial and consulting roles including mining services, healthcare
and property development. The majority of the past 20 years has been
spent working for or providing services to publicly listed companies in the
resources sector.
Mark holds a Bachelor of Business Degree from Curtin University, is a Fellow
of Chartered Accountants Australia and New Zealand and is a graduate of the Australian Institute of
Company Directors.
DDIIRREECCTTOORRSS’’ IINNTTEERREESSTTSS
As at the date of this report, the Directors’ interests in shares and unlisted options of the Company are
as follows:
DDiirreeccttoorr
R Crabb
C Bass
R Port
B Rowe (alternate for C Bass)
DDiirreeccttoorrss’’ IInntteerreessttss iinn
OOrrddiinnaarryy SShhaarreess
1,349,818
84,467,032
1,015,818
500,000
DDiirreeccttoorrss’’ IInntteerreessttss iinn
UUnnlliisstteedd OOppttiioonnss
1,500,000
1,500,000
1,500,000
1,000,000
OOppttiioonnss vveesstteedd aatt
tthhee rreeppoorrttiinngg ddaattee
1,500,000
1,500,000
1,500,000
1,000,000
The Directors’ interests include Unlisted Options which are vested or exercisable as at the date of
signing this report.
DDIIRREECCTTOORRSS’’ MMEEEETTIINNGGSS
The number of meetings of the Company’s Directors held during the year ended 30 June 2023, and
the number of meetings attended by each Director are as follows:
DDiirreeccttoorr
R Crabb
C Bass
R Port
B Rowe (alternate for C Bass)
BBooaarrdd ooff DDiirreeccttoorrss’’ MMeeeettiinnggss
EElliiggiibbllee ttoo AAtttteenndd
5
5
5
5
AAtttteennddeedd
5
5
5
5
PPRRIINNCCIIPPAALL AACCTTIIVVIITTIIEESS
The Company’s principal activities for the year ended 30 June 2023 focussed on exploration activities
and technical evaluations at the Oracle Ridge Copper Mine. Field work, mapping, geophysical
interpretation, targeted diamond drilling programs for both resource expansion, infill and metallurgical
drilling were conducted during the year. The Company also engaged in capital raising activities to fund
ongoing exploration at its projects.
Page 5
38
EAGLE MOUNTAIN MINING | 2023 Annual Report
DIRECTORS’ REPORT
RREEVVIIEEWW OOFF OOPPEERRAATTIIOONNSS
Exploration activities
Exploration activities for the financial year have been primarily focussed at the Group’s Oracle Ridge
Copper Mine project in Arizona, United States of America. Drilling during the year was focussed on
expanding and upgrading the existing JORC mineral resource estimate (MRE) and in October 2022 an
updated MRE was completed.
The initial refurbishment of the underground mine was completed. The refurbishment brought the
underground infrastructure up to the required standards necessary to undertake the planned drilling,
mapping and sampling programs. These programs aimed to improve the quality of the MRE and
provide samples for metallurgical test work. During the latter half of the financial year, underground
drilling commenced and the first batch of underground channel sampling assays were received.
Technical evaluations focussing on assessing different mining scenarios, identifying cost and
production efficiencies and metallurgical test work for plant design were progressed during the year.
Corporate activities
The Company completed a share placement to sophisticated and institutional investors during the
financial year, raising a total of $5 million (before costs) through the issue of 30,303,031 shares. In
conjunction with the placement, the Company also completed a Share Purchase Plan, raising a further
$742,300 (before costs) from existing shareholders through the issue of 4,498,769 shares.
During the year, the Company entered into an unsecured convertible loan agreement with a director
related entity, Metech Super Pty Ltd as trustee for the Metech No2 Super Fund to borrow up to $3
million. At 30 June 2023, the Company had drawn down $2 million of the facility.
Risk Management
The Company takes a proactive approach to risk management. The Board is responsible for ensuring
that risks, including emerging risks, and also opportunities, are identified on a timely basis and the
Company’s objectives and activities are aligned with the risks and opportunities identified by the Board.
Given the size of the Company and its stage of development all Board members are involved and have
responsibility for management of risk.
Material business risks
There are inherent risks associated with the exploration for minerals. The Group faces the usual risks
encountered by companies engaged in the exploration, evaluation and development of minerals. The
material business risks for the Group include:
External Risks
Exposure to
fluctuations in the
US Dollar
The financial results and position of the Group are reported in Australian
dollars. The Group’s exploration projects are located in Arizona, United
States of America. Accordingly, the Group’s exploration costs are linked to
US dollars (US$) and the A$/ US$ exchange rate.
39
Page 6
EAGLE MOUNTAIN MINING | 2023 Annual Report
DIRECTORS’ REPORT
RREEVVIIEEWW OOFF OOPPEERRAATTIIOONNSS ((ccoonnttiinnuueedd))
External Risks
Environmental risks
Government
regulations and
claims risks
Operating Risks
Exploration and
development risk
Mineral Resources
The Company’s operations and projects are subject to the laws and
regulations of the jurisdictions in which it has interests and carries on
business (currently Arizona, USA) regarding environmental compliance and
relevant hazards. There is also a risk that the environmental laws and
regulations may become more onerous, making the Group’s operations
more expensive which may adversely affect the financial position and /or
performance of the Group. The Directors are not aware of any
environmental law that is not being complied with.
Changes in law and regulations or government policy may adversely affect
the Group’s operations. There is no guarantee that current or future
exploration claim applications or existing claim renewals will be granted,
that they will be granted without undue delay, or that the Company can
economically comply with any conditions imposed on any granted
exploration claims. Loss of claims may adversely affect the financial
position and /or performance of the Group
The exploration for and development of mineral deposits involves
significant risks that even a combination of careful evaluation, experience
and knowledge may not eliminate. While the discovery of an ore body may
result in substantial rewards, not all exploration activity will lead to the
discovery of economic deposits. Major expenditure may be required to
locate and establish Ore Reserves, to establish rights to mine the ground,
to receive all necessary operating permits, to develop metallurgical
processes and to construct mining and processing facilities at a particular
site.
The Group’s estimates of Mineral Resources are based on different levels
of geological confidence and different degrees of technical and economic
evaluation, and no assurance can be given that anticipated tonnages and
grades will be achieved or could be mined or processed profitably.
In addition to the risks described above, the Group’s ability to successfully develop projects is
contingent on the Group’s ability to fund those projects through debt or equity raisings.
Results of operations and financial position
The operating loss after income tax of the Group for the year ended 30 June 2023 was $13,661,302
(2022 restated: $30,748,045). Included in the loss for the year are uncapitalised exploration costs of
$10,341,361 (2022: $26,984,843) and non-cash items (in respect of depreciation, share based
payments expenses and fair value gains/losses) amounting to $811,849 (2022 restated: $1,980,505).
At 30 June 2023, cash assets amounted to $2,236,536 (2022: $11,073,913).
Page 7
40
EAGLE MOUNTAIN MINING | 2023 Annual Report
DIRECTORS’ REPORT
SSIIGGNNIIFFIICCAANNTT CCHHAANNGGEESS IINN TTHHEE SSTTAATTEE OOFF AAFFFFAAIIRRSS
Other than the matters stated in this report, there have been no significant changes in the Group’s
state of affairs during the financial year.
EEQQUUIITTYY SSEECCUURRIITTIIEESS OONN IISSSSUUEE
CCllaassss ooff SSeeccuurriittyy
Ordinary fully paid shares
Unlisted options over unissued shares
Performance rights
3300 JJuunnee 22002233
330044,,996666,,886633
1155,,335500,,000000
330000,,000000
30 June 2022
268,265,063
27,611,154
300,000
Subsequent to the end of the financial year, no securities were issued.
UUnnlliisstteedd OOppttiioonnss oovveerr OOrrddiinnaarryy SShhaarreess
At 30 June 2023, 15,350,000 unissued ordinary shares of the Company were under option as follows:
NNuummbbeerr ooff OOppttiioonnss GGrraanntteedd
EExxeerrcciissee PPrriiccee
EExxppiirryy DDaattee
1,600,000 1
650,000 1
2,500,000 1
2,600,000 1
6,000,000 2
2,000,000 3
20 cents
20 cents
52 cents
52 cents
55 cents
81.25 cents
1 July 2023
7 October 2023
22 February 2024
1 July 2024
1 July 2024
12 October 2023
1 Options issued to employees pursuant to the Company’s employee incentive plan.
2 Options issued to Directors.
3 Options issued under a corporate advisory mandate.
During the year, no options were issued, 1,900,000 options were exercised and 10,361,154 options
were cancelled.
Subsequent to 30 June 2023 and up to the date of this report, 1,500,000 options have vested, no
options were exercised and 1,600,000 options were cancelled without being exercised on their expiry
date of 1 July 2023. No options have been issued since 30 June 2023. At the date of this report, there
were 13,750,000 unissued ordinary shares of the Company under option.
Options do not entitle the holder to participate in any share issue of the Company or any other body
corporate.
The holders of unlisted options are not entitled to any voting rights until the options are exercised into
ordinary shares.
PPeerrffoorrmmaannccee RRiigghhttss oovveerr OOrrddiinnaarryy SShhaarreess
During the year ended 30 June 2023, 100,000 performance rights vested, and no performance rights
were issued, cancelled or exercised.
Subsequent to 30 June 2023, 100,000 performance rights vested. No performance rights have been
issued, exercised or cancelled.
41
Page 8
EAGLE MOUNTAIN MINING | 2023 Annual Report
DIRECTORS’ REPORT
DDIIVVIIDDEENNDDSS
No dividend has been paid during the year and no dividend is recommended for the current financial
year.
EEVVEENNTTSS SSUUBBSSEEQQUUEENNTT TTOO TTHHEE EENNDD OOFF TTHHEE RREEPPOORRTTIINNGG YYEEAARR
There has not arisen in the interval between the end of the financial year and the date of this report
any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors
of the Company to affect substantially the operations of the Group, the results of those operations or
the state of affairs of the Group in subsequent financial years.
LLIIKKEELLYY DDEEVVEELLOOPPMMEENNTTSS AANNDD EEXXPPEECCTTEEDD RREESSUULLTTSS OOFF OOPPEERRAATTIIOONNSS
The Group intends to continue its focus on mining and metallurgical studies which are ongoing and to
undertake further exploration programs at the Oracle Ridge Copper Mine and the Silver Mountain
Project in Arizona in the United States of America.
Any other likely developments in the operations of the Group and the expected results of those
operations in future financial years have not been included in this report as the inclusion of such
information is likely to result in unreasonable prejudice to the Group.
EENNVVIIRROONNMMEENNTTAALL IISSSSUUEESS
The Group’s operations are not regulated under any significant environmental regulation under a law
of the Commonwealth of Australia, a State or a Territory. The operations and proposed activities of the
Group are subject to United States Federal and Arizona State laws and regulations concerning the
environment.
The Board believes that the Group has adequate systems in place for the management of its
environmental requirements. The Group 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 Group are not aware of any breach of environmental legislation for the
financial year under review.
IINNDDEEMMNNIIFFIICCAATTIIOONN AANNDD IINNSSUURRAANNCCEE OOFF DDIIRREECCTTOORRSS AANNDD OOFFFFIICCEERRSS AANNDD AAUUDDIITTOORRSS
During the year ended 30 June 2023, the Company paid an insurance premium to insure certain
officers of the Company. The officers of the Company covered by the insurance policy include the
Directors named in this report.
The Directors and Officers Liability insurance provides cover against all costs and expenses that may
be incurred in defending civil or criminal proceedings that fall within the scope of the indemnity and
that may be brought against the officers in their capacity as officers of the Company. The insurance
policy does not contain details of the premium paid in respect of individual officers of the Company.
Disclosure of the nature of the liability cover and the amount of the premium is subject to a
confidentiality clause under the insurance policy.
The Company has not provided any insurance for an auditor of the Company.
Page 9
42
EAGLE MOUNTAIN MINING | 2023 Annual Report
DIRECTORS’ REPORT
PPRROOCCEEEEDDIINNGGSS OONN BBEEHHAALLFF OOFF TTHHEE GGRROOUUPP
No person has applied for leave to the court to bring proceedings on behalf of the Group or intervene
in any proceedings to which the Group is a party for the purpose of taking responsibility on behalf of
the Group for all or any part of those proceedings.
The Company was not a party to any such proceedings during the year.
NNOONN--AAUUDDIITT SSEERRVVIICCEESS
The following non-audit services were provided by William Buck Advisors (WA) Pty Ltd, a related entity
of the entity’s auditor, William Buck Audit (WA) Pty Ltd. The Directors are satisfied that the provision of
non-audit services is compatible with the general standard of independence for auditors imposed by
the Corporations Act 2001. The nature and scope of each type of non-audit service provided means
that auditor independence was not compromised.
William Buck Advisors (WA) Pty Ltd received or is due to receive the following amounts for the provision
of non-audit services:
Taxation services for Eagle Mountain Mining
Group entities
3300 JJuunnee 22002233
30 June 2022
$22,120
$20,350
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((AAUUDDIITTEEDD))
Remuneration paid to Directors and Officers of the Company is set by reference to such payments
made by other ASX listed companies of a similar size and operating in the mineral exploration industry.
In addition, reference is made to the specific skills and experience of the Directors and Officers.
Details of the nature and amount of remuneration of each Director and other Key Management
Personnel are disclosed annually in the Remuneration Report.
RReemmuunneerraattiioonn CCoommmmiitttteeee
The Board has adopted a formal Nomination and Remuneration Policy which provides a framework
for the consideration of remuneration matters.
The Company does not have a separate remuneration committee and as such, all remuneration
matters are considered by the Board as a whole, with no member deliberating or considering such
matter in respect of their own remuneration.
In the absence of a separate Remuneration Committee, the Board is responsible for:
1. Setting remuneration packages for Executive Directors, Non-Executive Directors and other Key
2.
Management Personnel; and
Implementing employee incentive and equity based plans and making awards pursuant to those
plans.
43
Page 10
EAGLE MOUNTAIN MINING | 2023 Annual Report
DIRECTORS’ REPORT
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((AAUUDDIITTEEDD)) ((ccoonnttiinnuueedd))
NNoonn--EExxeeccuuttiivvee RReemmuunneerraattiioonn
The Company’s policy is to remunerate Non-Executive Directors, at rates comparable to other ASX
listed companies in the same industry, for their time, commitment and responsibilities.
Non-Executive Remuneration is not linked to the performance of the Company, however, to align
Directors’ interests with shareholders’ interests, remuneration may be provided to Non-Executive
Directors in the form of equity based long term incentives.
1.
Fees payable to Non-Executive Directors are set within the aggregate amount previously approved
by shareholders;
2. Non-Executive Directors’ fees are payable in the form of cash and superannuation benefits;
3. Non-Executive Directors’ superannuation benefits are limited to statutory superannuation
entitlements; and
4. Participation in equity based remuneration schemes by Non-Executive Directors is subject to
consideration and approval by the Company’s shareholders.
The maximum aggregate Non-Executive Directors’ fees payable is currently set at $300,000 per annum.
EExxeeccuuttiivvee DDiirreeccttoorr aanndd OOtthheerr KKeeyy MMaannaaggeemmeenntt PPeerrssoonnnneell RReemmuunneerraattiioonn
Executive remuneration consists of base salary, plus other performance incentives to ensure that:
1. Remuneration packages incorporate a balance between fixed and incentive pay, reflecting short
and long term performance objectives appropriate to the Company’s circumstances and
objectives; and
2. A proportion of remuneration is structured in a manner to link reward to corporate and individual
performance.
Executives are offered a competitive level of base salary at market rates (based on comparable ASX
listed companies) and are reviewed regularly to ensure market competitiveness. To date the Company
has not engaged external remuneration consultants to advise the Board on remuneration matters.
IInncceennttiivvee PPllaannss
The Company provides long term incentives to Directors and Employees pursuant to the Company’s
Employee Incentive Plan.
The Board, acting in remuneration matters:
1. Ensures that incentive plans are designed to differentiate between executives and non-executives
and have appropriate and realistic performance targets and provide rewards when those targets
are achieved;
2. Reviews and approves existing incentive plans established for employees; and
3. Approves the administration of the incentive plans, including receiving recommendations for and
the consideration and approval of grants pursuant to such incentive plans.
Page 11
44
EAGLE MOUNTAIN MINING | 2023 Annual Report
DIRECTORS’ REPORT
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((AAUUDDIITTEEDD)) ((ccoonnttiinnuueedd))
EEnnggaaggeemmeenntt ooff NNoonn--EExxeeccuuttiivvee DDiirreeccttoorrss
Non-Executive Directors conduct their duties under the following terms:
1. A Non-Executive Director may resign from his/her position and thus terminate their contract on
written notice to the Company; and
2. A Non-Executive Director may, following resolution of the Company’s shareholders, be removed
before the expiration of their period of office (if applicable). Payment is made in lieu of any notice
period if termination is initiated by the Company, except where termination is initiated for serious
misconduct.
In consideration of the services provided by Mr Rick Crabb as Non-Executive Chairman, the Company
will pay him a fee inclusive of statutory superannuation of $50,000 per annum.
In consideration of the services provided by Mr Roger Port as Non-Executive Director, the Company
will pay him a fee inclusive of statutory superannuation of $50,000 per annum.
Messrs Crabb and Port are also entitled to fees for other amounts as the Board determines where
they perform special duties or otherwise perform extra services or make special exertions on behalf
of the Company. There were no such fees paid during the year ended 30 June 2023.
EEnnggaaggeemmeenntt ooff MMaannaaggiinngg DDiirreeccttoorr
The Company has entered into an executive service agreement with Mr Charles Bass in his role as
Managing Director on the following material terms and conditions.
Mr Bass received a base salary inclusive of statutory superannuation of $50,000 per annum from the
commencement of the agreement. Mr Bass’ remuneration remains unchanged as at the date of this
report.
Either party may terminate the agreement by providing 30 days written notice to the other party. Eagle
Mountain may otherwise terminate the Managing Director’s employment in accordance with the
Constitution or the Corporations Act. Upon termination of the agreement, Mr Bass will cease
employment with Eagle Mountain as its Managing Director and will become a Non-Executive Director
of Eagle Mountain.
Mr Bass may, subject to shareholder approval, participate in Eagle Mountain’s Employee Incentive Plan
and other long term incentive plans adopted by the Board.
EEnnggaaggeemmeenntt ooff CChhiieeff EExxeeccuuttiivvee OOffffiicceerr
The Company has entered into an executive service agreement with Mr Timothy Mason, effective 15
January 2020, in his role as Chief Executive Officer (“CEO”) on the following material terms and
conditions.
Mr Mason initially received a base salary inclusive of statutory superannuation of $300,000 per annum
which is subject to annual review and is currently $399,500 per annum inclusive of superannuation
effective from 1 January 2023.
45
Page 12
EAGLE MOUNTAIN MINING | 2023 Annual Report
DIRECTORS’ REPORT
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((AAUUDDIITTEEDD)) ((ccoonnttiinnuueedd))
The CEO may terminate the agreement by providing 3 months’ written notice. Eagle Mountain may
terminate the agreement with 3 months’ written notice or the provision of 3 months’ salary in lieu of
notice; or may otherwise terminate the CEO’s employment in accordance with the Constitution or the
Corporations Act.
Upon commencement of his employment, Mr Mason received 1,500,000 unlisted options and 150,000
unlisted performance rights over unissued shares of the Company. During the financial year, the
1,500,000 options were cancelled on their expiry date, 15 January 2023, without being exercised.
Mr Mason is eligible to participate in Eagle Mountain’s Employee Incentive Plan and other long term
incentive plans adopted by the Board.
SShhoorrtt TTeerrmm IInncceennttiivvee PPaayymmeennttss
The Non-Executive Directors may set annual Key Performance Indicators (“KPIs”) for the Executive
Director and the CEO. The KPIs are chosen to align the reward of the individual Executives to the
strategy and performance of the Company.
If KPIs are set, performance objectives, which may be financial or non-financial, or a combination of
both, are weighted when calculating the maximum Short Term Incentives payable to Executives. At the
end of the year, the Non-Executive Directors will assess the actual performance of the Executives
against the set performance objectives. The maximum amount of the Short Term Incentive, or a lesser
amount depending on actual performance achieved, is paid to the Executives as a cash payment.
No Short Term Incentives are payable to Executives where it is considered that the actual performance
has fallen below the minimum requirement.
SShhaarreehhoollddiinngg QQuuaalliiffiiccaattiioonnss
The Directors are not required to hold any shares in Eagle Mountain under the terms of the Company’s
Constitution.
GGrroouupp PPeerrffoorrmmaannccee
In considering the Company’s performance, the Board provides the following indices in respect of the
current financial year:
22002233
2022
2021
2020
Loss for the year/period
attributable to shareholders
$$((1133,,666611,,330022)) $(30,748,045)
restated
$(21,070,239) $(3,985,856)
Closing share price at 30 June
$$00..1100
$0.215
$1.00
$0.16
As a Group focussed on exploration activities, the Board does not consider the loss attributable to
shareholders as one of the performance indicators when implementing Short Term Incentive
payments.
In addition to technical exploration success, the Board considers the effective management of safety,
environmental and operational matters and successful management, acquisition and consolidation of
high quality landholdings, as more appropriate indicators of management performance for the
financial year.
Page 13
46
EAGLE MOUNTAIN MINING | 2023 Annual Report
DIRECTORS’ REPORT
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((AAUUDDIITTEEDD)) ((ccoonnttiinnuueedd))
RReemmuunneerraattiioonn DDiisscclloossuurreess
The Key Management Personnel of the Company have been identified as:
Mr Rick Crabb
Mr Charles Bass
Mr Roger Port
Mr Brett Rowe
Mr Tim Mason
Non-Executive Chairman
Managing Director
Non-Executive Director
Alternate Director for Charles Bass
Chief Executive Officer
The details of the remuneration of each Director and member of Key Management Personnel of the
Company is as follows:
YYeeaarr EEnnddeedd 3300
JJuunnee 22002233
BBaassee SSaallaarryy
$$
RRiicckk CCrraabbbb
4455,,224499
CChhaarrlleess BBaassss
4455,,224499
RRooggeerr PPoorrtt
4455,,224499
BBrreetttt RRoowwee
--
TTiimm MMaassoonn
334444,,445588
TToottaall
448800,,220055
Year Ended 30
June 2022
Base Salary
$
Rick Crabb
45,455
Charles Bass
45,455
Roger Port
45,455
Brett Rowe
-
Tim Mason
311,431
Total
447,796
SShhoorrtt TTeerrmm
PPoosstt EEmmppllooyymmeenntt
SShhoorrtt TTeerrmm
IInncceennttiivvee
SSuuppeerraannnnuuaattiioonn
CCoonnttrriibbuuttiioonnss
OOtthheerr LLoonngg
TTeerrmm
VVaalluuee ooff EEqquuiittyy
BBaasseedd
RReemmuunneerraattiioonn
$$
--
--
--
--
VVaalluuee ooff EEqquuiittyy
aass PPrrooppoorrttiioonn
ooff
RReemmuunneerraattiioonn
%%
--
--
--
--
TToottaall
$$
5500,,000000
5500,,000000
5500,,000000
--
2255,,229922
116622,,222299
553311,,997799
3300..55%%
3399,,554455
116622,,222299
668811,,997799
--
Other Long
Term
Value of Equity
Based
Remuneration
$
-
-
-
-
Value of Equity
as Proportion
of
Remuneration
%
-
-
-
-
Total
$
50,000
50,000
50,000
-
23,568
214,966
549,965
39.1%
37,203
214,966
699,965
-
$$
44,,775511
44,,775511
44,,775511
--
$
4,545
4,545
4,545
-
$$
--
--
--
--
--
--
$
-
-
-
-
-
-
Short Term
Post Employment
Short Term
Incentive
Superannuation
Contributions
47
Page 14
EAGLE MOUNTAIN MINING | 2023 Annual Report
DIRECTORS’ REPORT
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((AAUUDDIITTEEDD)) ((ccoonnttiinnuueedd))
The fair value of options and performance rights shown in the above tables is calculated at the date of
grant using an appropriate valuation model and allocated to each reporting period evenly over the
period from grant date to vesting date. The value disclosed in the above tables is the portion of the fair
value of the securities recognised in the reporting period. The basis of the fair value is disclosed later
in this Remuneration Report.
Details of Performance Related Remuneration
During the year ended 30 June 2023, no Short Term Incentive payments were paid to the Directors or
Key Management Personnel.
Equity Based Remuneration - Options
During the year ended 30 June 2023, no options were granted to the Directors and Key Management
Personnel as remuneration.
The fair value of options is determined using the Black Scholes option pricing model. Fair value of
options issued as remuneration is allocated to the relevant vesting period of the securities. Options
and performance rights are provided at no initial cost to the recipients.
Exercise of Options Granted as Remuneration
During the year ended 30 June 2023, 1,900,000 ordinary shares were issued in respect of the exercise
of options previously granted as remuneration to Directors or Key Management Personnel of the
Company.
EEqquuiittyy IInnssttrruummeenntt DDiisscclloossuurreess RReellaattiinngg ttoo KKeeyy MMaannaaggeemmeenntt PPeerrssoonnnneell
Option Holdings
Key Management Personnel have the following interests in unlisted options over unissued shares of
the Company.
YYeeaarr eennddeedd 3300
JJuunnee 22002233
NNaammee
BBaallaannccee aatt
bbeeggiinnnniinngg ooff
tthhee yyeeaarr
RReecceeiivveedd
dduurriinngg tthhee
yyeeaarr aass
rreemmuunneerraattiioonn
OOtthheerr
cchhaannggeess
dduurriinngg tthhee
yyeeaarr
BBaallaannccee aatt
tthhee eenndd ooff
tthhee yyeeaarr
VVeesstteedd aanndd
eexxeerrcciissaabbllee
aatt tthhee eenndd ooff
tthhee yyeeaarr
Rick Crabb
3,000,000
Charles Bass
3,000,000
Roger Port
3,000,000
Brett Rowe
2,000,000
Tim Mason
2,500,000
-
-
-
-
-
(1,500,000)
1,500,000
1,500,000
(1,500,000)
1,500,000
1,500,000
(1,500,000)
1,500,000
1,500,000
(1,000,000)
1,000,000
1,000,000
(1,500,000)
1,000,000
1,000,000
Page 15
48
EAGLE MOUNTAIN MINING | 2023 Annual Report
DIRECTORS’ REPORT
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((AAUUDDIITTEEDD)) ((ccoonnttiinnuueedd))
Equity Based Remuneration – Performance Rights
During the year ended 30 June 2023, no performance rights were granted as remuneration to Key
Management Personnel.
The fair value of rights is determined using the share price at the date of grant. Fair value of rights
issued as remuneration is allocated to the relevant vesting period of the securities. Performance rights
are provided at no initial cost to the recipients.
Exercise of Performance Rights Granted as Remuneration
During the year ended 30 June 2023, no ordinary shares were issued in respect of the exercise of
performance rights previously granted as remuneration to Directors or Key Management Personnel of
the Company.
Performance Rights Holdings
Key Management Personnel have the following interests in unlisted performance rights over unissued
shares of the Company.
YYeeaarr eennddeedd 3300
JJuunnee 22002233
NNaammee
Rick Crabb
Charles Bass
Roger Port
Brett Rowe
BBaallaannccee aatt
bbeeggiinnnniinngg ooff
tthhee yyeeaarr
RReecceeiivveedd
dduurriinngg tthhee
yyeeaarr aass
rreemmuunneerraattiioonn
OOtthheerr
cchhaannggeess
dduurriinngg tthhee
yyeeaarr
BBaallaannccee aatt
tthhee eenndd ooff
tthhee yyeeaarr
VVeesstteedd aanndd
eexxeerrcciissaabbllee
aatt tthhee eenndd ooff
tthhee yyeeaarr
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
300,000
100,000
Tim Mason
300,000
49
Page 16
EAGLE MOUNTAIN MINING | 2023 Annual Report
DIRECTORS’ REPORT
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((AAUUDDIITTEEDD)) ((ccoonnttiinnuueedd))
Share Holdings
The number of shares in the Company held during the financial year by Key Management Personnel
of the Company, including their related parties are set out below. There were no shares granted during
the reporting period as compensation.
YYeeaarr eennddeedd 3300
JJuunnee 22002233
NNaammee
Rick Crabb
BBaallaannccee aatt
bbeeggiinnnniinngg ooff tthhee
yyeeaarr
RReecceeiivveedd dduurriinngg
tthhee yyeeaarr aass
rreemmuunneerraattiioonn
918,000
Charles Bass
70,338,972
Roger Port
Brett Rowe
Tim Mason
684,000
500,000
530,000
OOtthheerr cchhaannggeess
dduurriinngg tthhee yyeeaarr
BBaallaannccee aatt tthhee
eenndd ooff tthhee yyeeaarr
431,818
1,349,818
14,078,060
84,467,032
331,818
1,015,818
-
-
500,000
530,000
-
-
-
-
-
LLooaannss mmaaddee ttoo KKeeyy MMaannaaggeemmeenntt PPeerrssoonnnneell
No loans were made to Key Management Personnel including personally related entities during the
financial year.
LLooaannss rreecceeiivveedd ffrroomm KKeeyy MMaannaaggeemmeenntt PPeerrssoonnnneell
During the financial year ended 30 June 2023, the Company entered into an unsecured loan agreement
with a director related entity, Metech Super Pty Ltd as trustee for the Metech No2 Super Fund. The
loan is for up to $3 million, attracts interest at 10% per annum and matures on 31 December 2024.
Refer to note 13 for further detail.
No other loans were received from Key Management Personnel including personally related entities
during the financial year.
OOtthheerr ttrraannssaaccttiioonnss wwiitthh KKeeyy MMaannaaggeemmeenntt PPeerrssoonnnneell
Transactions between related parties are on commercial terms and conditions, no more favourable
than those available to other parties unless otherwise stated.
The Company has entered into a lease agreement with Elk Mountain Mining Limited, an entity
associated with Mr Charles Bass, for the lease of the Company’s administration offices in Perth,
Western Australia. Total payments made under the lease amounted to $95,748 (2022: $89,135) and
included interest of $17,530 (2022: $12,069) and lease principal repayments of $78,218 (2022:
$77,066).
Other than the above, there were no transactions with Key Management Personnel.
EEnndd ooff RReemmuunneerraattiioonn RReeppoorrtt
Page 17
50
EAGLE MOUNTAIN MINING | 2023 Annual Report
DIRECTORS’ REPORT
AAUUDDIITTOORR’’SS IINNDDEEPPEENNDDEENNCCEE DDEECCLLAARRAATTIIOONN
Section 307C of the Corporations Act 2001 requires our auditors, William Buck Audit (WA) Pty Ltd, to
provide the Directors of the Group with an Independence Declaration in relation to the audit of the
financial report. This Independence Declaration is set out on the following page and forms part of this
Directors’ report for the year ended 30 June 2023.
This report has been made in accordance with a resolution of the Board of Directors.
RRiicckk CCrraabbbb
CChhaaiirrmmaann
Dated at Perth this 15th day of September 2023
51
Page 18
EAGLE MOUNTAIN MINING | 2023 Annual Report
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001 TO THE DIRECTORS OF EAGLE MOUNTAIN
MINING LIMITED
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2023 there have
been:
— no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in
relation to the audit; and
— no contraventions of any applicable code of professional conduct in relation to the audit.
William Buck Audit (WA) Pty Ltd
ABN 67 125 012 124
Amar Nathwani
Director
Dated this 15th day of September 2023
Draft Declaration EM2
52
EAGLE MOUNTAIN MINING | 2023 Annual Report
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
For the Year Ended 30 June 2023
Interest income
Other income
Administration and other costs
Equity based payments
Finance costs
Depreciation expense
YYeeaarr eennddeedd 3300
JJuunnee 22002233
Notes
AA$$
1177,,660000
11,,003355
((22,,117799,,553300))
((332277,,887700))
((339988,,004466))
((660044,,441155))
4
9, 10
Year ended 30
June 2022
(Restated)
A$
1,096
-
(1,997,328)
(1,539,736)
(398,152)
(582,588)
Exploration and evaluation costs
((1100,,334411,,336611))
(26,984,843)
Net change in fair value of convertible notes
13
Fair value gain on loan repayment
Gain on foreign currency exchange
LLoossss bbeeffoorree iinnccoommee ttaaxx
Income tax expense
4
5
112200,,443366
--
5500,,884499
70,861
70,958
611,687
((1133,,666611,,330022))
(30,748,045)
--
-
LLoossss aafftteerr iinnccoommee ttaaxx ffrroomm ccoonnttiinnuuiinngg ooppeerraattiioonnss
((1133,,666611,,330022))
((3300,,774488,,004455))
OOtthheerr ccoommpprreehheennssiivvee iinnccoommee nneett ooff iinnccoommee ttaaxx
Other comprehensive income that may be re-
classified to profit or loss in subsequent years net of
income tax
Unrealised gain on foreign currency translation
TToottaall ccoommpprreehheennssiivvee lloossss ffoorr tthhee yyeeaarr
16a
--
117766,,999966
-
42,995
((1133,,448844,,330066))
(30,705,050)
BBaassiicc aanndd ddiilluutteedd lloossss ppeerr sshhaarree
28
cents
((44..88))
cents
(13.3)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
53
Page 20
EAGLE MOUNTAIN MINING | 2023 Annual Report
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2023
3300 JJuunnee 22002233
NNoottee
AA$$
30 June 2022
(Restated)
A$
1 July 2021
(Restated)
$A
CCuurrrreenntt AAsssseettss
Cash and cash equivalents
Trade and other receivables
Total Current Assets
NNoonn--CCuurrrreenntt AAsssseettss
Exploration and evaluation expenditure
Property, plant and equipment
Right-of-use assets
Bonds and security deposits
Total Non-Current Assets
TTOOTTAALL AASSSSEETTSS
CCuurrrreenntt LLiiaabbiilliittiieess
Trade and other payables
Employee leave liabilities
Lease liabilities
Borrowings
Provisions
Total Current Liabilities
NNoonn--CCuurrrreenntt LLiiaabbiilliittiieess
Lease liabilities
Employee leave liabilities
Borrowings
Total Non-Current Liabilities
TTOOTTAALL LLIIAABBIILLIITTIIEESS
NNEETT AASSSSEETTSS
6
7
8
9
10
11
12
13
14
12
13
22,,223366,,553366
118844,,770011
22,,442211,,223377
11,073,913
310,680
11,384,593
9,119,371
306,131
9,425,502
1111,,228811,,448866
44,,110066,,887799
334466,,551166
229955,,889966
1166,,003300,,777777
10,774,803
1,222,386
592,606
284,241
12,874,036
9,474,278
977,951
531,202
260,459
11,243,890
1188,,445522,,001144
24,258,629
20,669,392
551144,,880000
111155,,883311
225500,,332211
--
--
888800,,995522
1,000,636
143,431
246,870
3,797
435,477
1,830,211
1,073,654
105,268
211,127
1,340,297
-
2,730,346
114411,,006600
2222,,997744
1122,,886622,,998844
385,182
15,104
10,232,242
1133,,002277,,001188
10,632,528
340,781
9,708
9,165,226
9,515,715
1133,,990077,,997700
12,462,739
12,246,061
44,,554444,,004444
11,795,890
8,423,331
EEqquuiittyy
Issued capital
Option capital
Reserves
Accumulated losses
78,501,878
-
6,734,688
(73,440,676)
8844,,448822,,446688
--
55,,552233,,779999
((8855,,446622,,222233))
16
15
45,601,593
4,500
5,514,105
(42,696,867)
8,423,331
TTOOTTAALL EEQQUUIITTYY
44,,554444,,004444
11,795,890
The above statement of financial position should be read in conjunction with the accompanying notes.
Page 21
54
EAGLE MOUNTAIN MINING | 2023 Annual Report
CC
aa
pp
ii
tt
aa
ll
ii
ii
rr
aa
ss
nn
gg
cc
oo
ss
tt
ss
((nn
oottee 11
55))
CC
aa
nn
cc
ee
ll
ll
aa
tt
ii
oo
nn
oo
ff
oo
pp
tt
ii
oo
nn
ss
ll
BB
aa
aa
nn
cc
ee
aa
tt
33
00
JJ
uu
nn
ee
22
00
22
33
VV
ee
ss
tt
ii
nn
gg
oo
ff
oo
pp
tt
ii
oo
nn
ss
//
pp
ee
rr
ff
oo
rr
mm
aa
nn
cc
ee
rr
ii
gg
hh
tt
ss
ii
EE
xx
ee
rr
cc
ss
ee
oo
ff
oo
pp
tt
ii
oo
nn
ss
//
pp
ee
rr
ff
oo
rr
mm
aa
nn
cc
ee
rr
ii
gg
hh
tt
ss
T
h
e
a
b
o
v
e
s
t
a
t
e
m
e
n
t
o
f
c
h
a
n
g
e
s
i
n
e
q
u
i
t
y
s
h
o
u
d
b
e
l
r
e
a
d
,,
88
44
44
88
22
44
66
88
,,
44
55
66
00
00
00
,,
--
--
((
22
11
77
77
11
00
,,
))
C
a
n
c
e
l
l
a
t
i
o
n
o
f
o
p
t
i
o
n
s
l
B
a
a
n
c
e
a
t
3
0
J
u
n
e
2
0
2
2
(
r
e
s
t
a
t
e
d
)
V
e
s
t
i
n
g
o
f
o
p
t
i
o
n
s
/
p
e
r
f
o
r
m
a
n
c
e
r
i
g
h
t
s
i
E
x
e
r
c
s
e
o
f
o
p
t
i
o
n
s
/
p
e
r
f
o
r
m
a
n
c
e
r
i
g
h
t
s
TT
oo
tt
aa
ll
cc
oo
mm
pp
rr
ee
hh
ee
nn
ss
vv
ee
ii
ll
oo
ss
ss
ff
oo
rr
tt
hh
ee
yy
ee
aa
rr
II
ss
ss
uu
ee
oo
ff
ss
hh
aa
rr
ee
ss
aa
nn
dd
oo
pp
tt
ii
oo
nn
ss
((nn
oottee 11
55,, 11
77))
LL
oo
ss
ss
ff
oo
rr
tt
hh
ee
yy
ee
aa
rr
ll
BB
aa
aa
nn
cc
ee
aa
tt
11
JJ
ll
uu
yy
22
00
22
22
((
rr
ee
ss
tt
aa
tt
ee
dd
))
nn
oo
tt
ee
11
33
OO
tt
hh
ee
rr
cc
oo
mm
pp
rr
ee
hh
ee
nn
ss
vv
ee
ii
ii
nn
cc
oo
mm
ee
ff
oo
rr
tt
hh
ee
yy
ee
aa
rr
nn
ee
tt
oo
ff
ii
nn
cc
oo
mm
ee
tt
aa
xx
,,
77
88
55
00
11
88
77
88
,,
--
--
--
,
7
8
5
0
1
8
7
8
,
-
-
,
1
1
4
8
2
8
0
,
,,
55
77
44
22
33
00
00
,,
--
--
--
--
--
--
--
--
--
--
-
-
-
(
,
4
5
0
0
)
C
a
p
i
t
a
l
i
i
r
a
s
n
g
c
o
s
t
s
(
n
o
t
e
1
5
)
I
s
s
u
e
o
f
s
h
a
r
e
s
a
n
d
o
p
t
i
o
n
s
(
n
o
t
e
1
5
,
1
7
)
S
h
a
r
e
i
s
s
u
e
f
o
r
l
o
a
n
r
e
p
a
y
m
e
n
t
(
n
o
t
e
1
3
)
l
B
a
a
n
c
e
a
t
1
J
l
u
y
2
0
2
1
a
s
p
r
e
v
o
u
s
y
i
l
r
e
p
o
r
t
e
d
L
o
s
s
f
o
r
t
h
e
y
e
a
r
(
r
e
s
t
a
t
e
d
)
n
o
t
e
1
3
l
B
a
a
n
c
e
a
t
1
J
l
u
y
2
0
2
1
(
r
e
s
t
a
t
e
d
)
n
o
t
e
1
3
C
o
r
r
e
c
t
i
o
n
o
f
i
m
s
s
t
a
t
e
m
e
n
t
2
0
2
1
n
o
t
e
1
3
(
r
e
s
t
a
t
e
d
)
n
o
t
e
1
3
T
o
t
a
l
c
o
m
p
r
e
h
e
n
s
v
e
i
l
o
s
s
f
o
r
t
h
e
y
e
a
r
O
t
h
e
r
c
o
m
p
r
e
h
e
n
s
v
e
i
i
n
c
o
m
e
f
o
r
t
h
e
y
e
a
r
n
e
t
o
f
i
n
c
o
m
e
t
a
x
,
4
5
6
0
1
5
9
3
,
-
(
,
1
5
5
0
2
7
5
,
)
,
3
2
0
0
3
0
0
0
,
,
1
2
9
9
2
8
0
,
-
-
-
-
-
-
-
-
-
F
o
r
t
h
e
Y
e
a
r
E
n
d
e
d
3
0
J
u
n
e
2
0
2
3
C
O
N
S
O
L
I
D
A
T
E
D
S
T
A
T
E
M
E
N
T
O
F
C
H
A
N
G
E
S
I
N
E
Q
U
I
T
Y
II
ss
ss
uu
ee
dd
cc
aa
pp
ii
tt
aa
ll
$$
AA
,
4
5
6
0
1
5
9
3
,
,
4
5
0
0
2
5
9
7
7
3
,
,
8
2
6
8
6
0
8
,
(
,
3
0
1
4
2
7
6
,
)
(
,
4
2
6
9
6
8
6
7
,
,
4
5
0
0
$$
AA
cc
aa
pp
ii
tt
aa
ll
OO
pp
tt
ii
oo
nn
-
(
,
1
2
4
3
5
)
-
-
,
1
8
5
3
9
2
2
,
FF
oo
rr
ee
xx
SS
hh
aa
rr
ee
bb
aa
ss
ee
dd
CC
oo
mm
mm
oo
nn
2
7
2
2
0
8
,
rr
ee
ss
ee
rr
vv
ee
$$
AA
TT
rr
aa
nn
ss
aa
tt
ii
oo
nn
ll
,
8
2
6
8
6
0
8
,
(
,
3
0
1
4
2
7
6
,
)
(
,
4
4
5
5
0
7
8
9
,
)
,
6
5
8
1
8
4
4
,
pp
aa
yy
mm
ee
nn
tt
rr
ee
ss
ee
rr
vv
ee
$$
AA
rr
ee
ss
ee
rr
vv
ee
cc
oo
nn
tt
rr
oo
ll
$$
AA
AA
cc
cc
uu
mm
uu
aa
tt
ee
dd
ll
ll
oo
ss
ss
ee
ss
$$
AA
TT
oo
tt
aa
ll
$$
AA
44
77
99
77
66
44
,,
--
--
--
--
--
11
77
66
99
99
66
,,
11
77
66
99
99
66
,,
--
33
00
22
77
66
88
,,
3
0
2
7
6
8
,
-
-
-
-
-
-
,
4
2
9
9
5
,
4
2
9
9
5
-
,,
88
00
55
88
33
11
11
,,
33
22
77
88
77
00
,,
((
,,
11
66
33
99
77
55
55
,,
((
,,
77
66
00
00
00
))
))
--
--
--
--
--
((
,,
33
00
11
44
22
77
66
,,
))
--
--
--
--
--
--
--
--
,,
99
44
44
66
11
99
66
,,
,
9
4
4
6
1
9
6
,
,
1
5
3
9
7
3
6
,
(
3
5
7
9
1
2
,
(
,
4
2
3
6
)
)
-
-
-
-
-
-
((
,,
33
00
11
44
22
77
66
,,
(
,
3
0
1
4
2
7
6
,
))
)
-
-
-
-
-
-
-
-
-
((
,,
88
55
44
66
22
22
22
33
,,
))
,,
44
55
44
44
00
44
44
,,
,,
11
66
33
99
77
55
55
,,
--
--
--
--
--
--
((
,,
11
33
66
66
11
33
00
22
,,
((
,,
77
33
44
44
00
66
77
66
,,
(
,
7
3
4
4
0
6
7
6
,
))
))
)
,
4
2
3
6
-
-
-
-
-
-
-
(
,
3
0
7
4
8
0
4
5
,
)
)
33
22
77
88
77
00
,,
33
88
00
00
00
00
,,
--
((
22
11
77
77
11
00
,,
))
,,
55
77
44
22
33
00
00
,,
((
,,
11
33
66
66
11
33
00
22
,,
))
11
77
66
99
99
66
,,
11
77
66
99
99
66
,,
,,
11
11
77
99
55
88
99
00
,,
,
1
1
7
9
5
8
9
0
,
,
1
5
3
9
7
3
6
,
7
8
5
8
6
8
,
-
(
,
1
5
5
0
2
7
5
,
)
,
3
2
0
0
3
0
0
0
,
,
1
2
9
9
2
8
0
,
,
4
2
9
9
5
,
4
2
9
9
5
(
,
3
0
7
4
8
0
4
5
,
)
,
8
4
2
3
3
3
1
,
,
1
8
4
1
4
8
7
,
i
j
n
c
o
n
u
n
c
t
i
o
n
w
i
t
h
t
h
e
a
c
c
o
m
p
a
n
y
i
n
g
n
o
t
e
s
.
P
a
g
e
2
2
55
EAGLE MOUNTAIN MINING | 2023 Annual Report
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended 30 June 2023
CCaasshh FFlloowwss ffrroomm OOppeerraattiinngg AAccttiivviittiieess
Payments to suppliers and employees
Payments for exploration and evaluation
Payments for interest and other financing costs
Interest received
Government assistance received
YYeeaarr eennddeedd 3300
JJuunnee 22002233
AA$$
Year ended 30
June 2022
A$
Note
((22,,116677,,112266))
(1,918,592)
((1100,,887755,,882222))
(27,261,149)
((4499,,888844))
1177,,660000
--
(50,007)
1,096
-
Net cash used in operating activities
18
((1133,,007755,,223322))
(29,228,652)
CCaasshh FFlloowwss ffrroomm IInnvveessttiinngg AAccttiivviittiieess
Payments for purchase of fixed assets
Payments for the acquisition of exploration assets
Refunds/(payments) for bonds and deposits
((33,,000055,,447700))
(504,480)
((552299,,992255))
((554433))
-
1,379
Net cash used in investing activities
((33,,553355,,993388))
(503,101)
CCaasshh FFlloowwss ffrroomm FFiinnaanncciinngg AAccttiivviittiieess
Proceeds from the issue of shares and options
55,,774422,,330000
32,003,000
Proceeds from the exercise of share options
Capital raising costs
Proceeds from borrowings
Repayments of borrowings
Repayment of lease liabilities
441111,,000000
((221177,,771100))
22,,000000,,000000
((77,,555599))
((225500,,774466))
754,868
(1,603,995)
-
(10,520)
(213,467)
Net cash generated by financing activities
77,,667777,,228855
30,929,886
Net increase/(decrease) in cash held
((88,,998833,,888855))
1,198,133
Cash and cash equivalents at the beginning of the
year
Effect of foreign exchange on cash and cash
equivalents
1111,,007733,,991133
9,119,371
9966,,550088
756,409
CCaasshh aanndd ccaasshh eeqquuiivvaalleennttss aatt tthhee eenndd ooff tthhee yyeeaarr
22,,223366,,553366
11,073,913
6
The above statement of cash flows should be read in conjunction with the accompanying notes.
Page 23
56
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
These consolidated financial statements and notes represent those of Eagle Mountain Mining Limited and its
controlled entities (the “Group”). Eagle Mountain Mining Limited is a public limited liability company, incorporated
and domiciled in Australia.
The Group is a for-profit entity for financial reporting purposes under Australian Accounting Standards. The
financial statements for the year ended 30 June 2023 were approved and authorised for issue by the Board of
Directors on 15 September 2023.
11..
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS
The following is a summary of the material accounting policies adopted by the Group in the preparation of the
financial report. The accounting policies have been consistently applied, unless otherwise stated.
((aa)) BBaassiiss ooff PPrreeppaarraattiioonn
These general purpose financial statements for the reporting year ended 30 June 2023 have been prepared
in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and
other authoritative pronouncements of the Australian Accounting Standards Board. The financial
statements and notes comply with International Financial Reporting Standards.
The financial report has been prepared on an accruals basis and is based on historical cost and does not
take into account changing money values or, except where stated, current valuations of non-current assets.
Cost is based on the fair values of the consideration given in exchange for assets.
((ii)) GGooiinngg CCoonncceerrnn
The financial statements have been prepared on the going concern basis which contemplates the
continuity of normal business activities and the realisation of assets and discharge of liabilities in the normal
course of business.
The Group has incurred a loss of $13,661,302 and a net operating cash outflow of $13,075,232 during the
year ended 30 June 2023. Cash assets at 30 June 2023 were $2,236,536 and current liabilities at that date
were $880,952. These factors indicate that there is a material uncertainty that may cast significant doubt
on whether the Company will be able to continue as a going concern and therefore whether it will be able
to realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated
in the financial report.
The Directors will continue to manage the Group’s activities with due regard to current and future funding
requirements. During the financial year, the Group successfully raised $5.7 million (before costs) pursuant
to a share placement to institutional and sophisticated investors and pursuant to a Share Purchase Plan.
In addition, the Company entered into an unsecured convertible loan agreement with a director related
entity, Metech Super Pty Ltd as trustee for the Metech No2 Super Fund to borrow up to $3 million. At 30
June 2023, the Company had drawn down $2 million of the facility.
The Directors reasonably expect that the Company will be able to raise sufficient capital to fund the Group’s
exploration and working capital requirements, and that the Group will be able to settle debts as and when
they become due and payable. On this basis, the Directors are of the opinion that the use of the going
concern basis is appropriate in the circumstances.
((iiii)) BBaassiiss ooff CCoonnssoolliiddaattiioonn
The financial information comprises the financial information of Eagle Mountain and entities (including
special purpose entities) controlled by Eagle Mountain (its “subsidiaries”).
57
Page 24
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
11..
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
((aa)) BBaassiiss ooff PPrreeppaarraattiioonn ((ccoonnttiinnuueedd))
((iiii)) BBaassiiss ooff CCoonnssoolliiddaattiioonn ((ccoonnttiinnuueedd))
Control is achieved when Eagle Mountain:
•
•
•
has power over the investee;
is exposed, or has rights, to variable returns from its involvement with the investee; and
has the ability to use its power to affect its returns.
Eagle Mountain reassesses whether or not it controls an investee if facts and circumstances indicate that
there are changes to one or more of the three elements of control listed above.
The financial information of subsidiaries is prepared for the same reporting period as Eagle Mountain, using
consistent accounting policies. Adjustments are made to bring into line any dissimilar accounting policies
that may exist. All inter-company balances and transactions, including unrealised profits arising from intra-
group transactions, have been eliminated in full. Unrealised losses are eliminated unless costs cannot be
recovered.
Subsidiaries are consolidated from the date on which control is transferred to the Group and cease to be
consolidated from the date on which control is transferred out of the Group. Total comprehensive income
of subsidiaries is attributed to the owners of Eagle Mountain and to the non-controlling interests even if
this results in the non-controlling interests having a deficit balance.
Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in
the consolidated statement of profit or loss and other comprehensive income from the date Eagle
Mountain gains control until the date when Eagle Mountain ceases to control the subsidiary.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in
ownership interest, without the loss of control, is accounted for as an equity transaction, where the
difference between the consideration transferred and the book value of the share of the non-controlling
interest acquired is recognised directly in equity attributable to Eagle Mountain.
When the Group loses control of a subsidiary, a gain or loss is recognised in profit or loss and is calculated
as the difference between:
•
•
the aggregate of the fair value of the consideration received and the fair value of any retained
interest; and
the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and
any non-controlling interests.
All amounts previously recognised in other comprehensive income in relation to that subsidiary are
accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e.
reclassified to profit and loss or transferred to another category of equity as specified/permitted by the
applicable Accounting Standards). The fair value of any investment retained in the former subsidiary at the
date when control is lost is regarded as the fair value on initial recognition for subsequent accounting
under AASB 9, or when applicable, the cost on initial recognition of an investment in an associate or a joint
venture.
Page 25
58
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
22..
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
((aa)) BBaassiiss ooff PPrreeppaarraattiioonn ((ccoonnttiinnuueedd))
((iiiiii))
NNeeww AAccccoouunnttiinngg SSttaannddaarrddss aanndd IInntteerrpprreettaattiioonnss
The Group has adopted all of the new, revised or amended Accounting Standards and Interpretations
issued by the Australian Accounting Standards Board (“AASB”) that are mandatory for the current reporting
period.
Australian Accounting Standards and Interpretations that have recently been issued or amended but are
not yet mandatory, have not been early adopted by the Group for the annual reporting period ended 30
June 2023. The Group has not yet assessed the impact of these new or amended Accounting Standards
and Interpretations.
((bb)) EExxpplloorraattiioonn,, EEvvaalluuaattiioonn aanndd DDeevveellooppmmeenntt EExxppeennddiittuurree
Exploration and evaluation expenditure is generally written off in the year incurred, except for acquisition
of exploration properties which is capitalised and carried forward.
When production commences, any accumulated costs for the relevant area of interest which have been
capitalised and carried forward will be amortised over the life of the area according to the rate of depletion
of the economically recoverable resources. A regular review is undertaken of each area of interest to
determine the appropriateness of continuing to carry forward costs in relation to the area of interest. The
carrying value of any capitalised expenditure is assessed by the Directors each reporting period to
determine if any provision should be made for the impairment of the carrying value. The appropriateness
of the Group’s ability to recover these capitalised costs has been assessed at the end of each reporting
period and the Directors are satisfied that the value is recoverable.
The carrying value of capitalised exploration and evaluation expenditure is assessed for impairment at an
overall level whenever facts and circumstances suggest that the carrying amount of the assets may exceed
recoverable amount. An impairment exists when the carrying amount of the assets exceeds the estimated
recoverable amount. The assets are then written down to their recoverable amount. Any impairment losses
are recognised in the income statement.
((cc)) TTrraaddee aanndd OOtthheerr RReecceeiivvaabblleess
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using
the effective interest method, less any allowance for expected credit losses. Trade receivables are generally
due for settlement within 30 days.
The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime
expected loss allowance. To measure the expected credit losses, trade receivables have been grouped
based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
((dd)) IInntteerreesstt IInnccoommee
Interest income is recognised as it accrues.
59
Page 26
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
((ee)) FFoorreeiiggnn CCuurrrreennccyy TTrraannssaaccttiioonnss
The financial statements are presented in Australian dollars, which is the functional currency of the Group.
Foreign currency transactions
Foreign currency transactions are translated into the functional currency at the rates of exchange prevailing
at the dates of the transaction. Non-monetary items measured at historical cost continue to be carried at
the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported
at the exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in the consolidated
statement of profit or loss and other comprehensive income. Exchange differences arising on the
translation of non-monetary items are recognised directly in equity to the extent that the gain or loss is
directly recognised in equity, otherwise the exchange difference is recognised in the consolidated
statement of profit or loss and other comprehensive income.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange
rate at the reporting date. The revenues and expenses of foreign operations are translated into Australian
dollars using the average exchange rates for the period, which approximate the rates at the dates of the
transactions. All resulting foreign exchange differences are recognised in other comprehensive income
through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment
is disposed of.
((ff)) OOppeerraattiinngg SSeeggmmeennttss
An operating segment is a component of an entity that engages in business activities from which it may
earn revenues and incur expenses (including revenues and expenses relating to transactions with other
components of the same entity), whose operating results are regularly reviewed by the entity's chief
operating decision maker to make decisions about resources to be allocated to the segment and assess
its performance and for which discrete financial information is available. This includes start-up operations
which are yet to earn revenues. The chief operating decision maker has been identified as the Board of
Directors taken as a whole. Management will also consider other factors in determining operating
segments such as the existence of a line manager and the level of segment information presented to the
Board of Directors.
Operating segments have been identified based on the information provided to the Board of Directors.
((gg)) BBoorrrroowwiinnggss
Loans and borrowings are initially recognised at the fair value of the consideration received, net of
transaction costs. They are subsequently measured at amortised cost using the effective interest method.
((hh)) CCoonnvveerrttiibbllee NNoottee –– DDeerriivvaattiivvee LLiiaabbiilliittyy
Derivative financial instruments are stated at fair value. The fair value of the derivative has been valued
using a valuation technique, including inputs that include reference to similar instruments and option
pricing models, which is updated each period. Gains and losses arising from changes in fair value of these
instruments together with settlements in the period are accounted for through the consolidated statement
of profit or loss and other comprehensive income through net finance costs. The convertible note liability
and derivative are removed from the statement of financial position when the obligations specified in the
contract are discharged, cancelled or expired.
Page 27
60
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
((ii)) CCoonnvveerrttiibbllee NNoottee –– DDeebbtt LLiiaabbiilliittyy
The embedded derivative component of a convertible note is recognised initially at fair value and the debt
liability component is calculated as the difference between the financial instrument as a whole and the
value of the derivative liability at inception. Any directly attributable transaction costs are allocated to the
convertible note debt liability and convertible note derivative liability in proportion to their initial carrying
amounts. Subsequent to initial recognition, the debt liability component of the convertible note is
measured at amortised cost using the effective interest method.
((jj)) LLeeaassee LLiiaabbiilliittiieess
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised
at the present value of the lease payments to be made over the term of the lease, discounted using the
interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental
borrowing rate. Lease payments comprise fixed payments less any lease incentives receivable, variable
lease payments that depend on an index or a rate, amounts expected to be paid under residual value
guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to
occur, and any anticipated termination penalties. The variable lease payments that do not depend on an
index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts
are remeasured if there is a change in the following: future lease payments arising from a change in an
index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination
penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of-use
asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.
((kk)) CCaasshh aanndd CCaasshh EEqquuiivvaalleennttss
Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short term highly
liquid investments with original maturities of three months or less, and bank overdrafts.
((ll)) IImmppaaiirrmmeenntt ooff NNoonn--ffiinnaanncciiaall AAsssseettss
At each reporting date, the Group reviews the carrying amounts of its non-financial assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment
loss (if any). Where the asset does not generate cash flows that are independent from the other assets, the
Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset for which
the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generated unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An
impairment loss is recognised in profit or loss immediately, unless the relevant asset is carried at fair value,
in which case the impairment loss is treated as a revaluation decrease. Where an impairment loss
subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised
estimate of its recoverable amount, but only to the extent that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment loss been recognised
for the asset (cash-generating unit) in prior years.
A reversal of an impairment loss is recognised in profit or loss immediately, unless the relevant asset is
carried at fair value, in which case the impairment loss is treated as a revaluation increase.
61
Page 28
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
((mm)) PPrrooppeerrttyy,, PPllaanntt aanndd EEqquuiippmmeenntt
Property, plant and equipment assets are initially recognised at acquisition cost or manufacturing cost,
including any costs directly attributable to bringing the assets to the location and condition necessary for
the assets to be capable of operating in the manner intended by the Group’s management.
Property, plant and equipment assets are subsequently measured using the cost model which reflects cost
less subsequent depreciation and impairment losses. Depreciation is recognised on a diminishing value
basis to write down the cost less estimated residual value of the assets.
Leasehold improvements are capitalised and subsequently amortised over the term of the respective lease.
The following depreciation rates are applied to property, plant and equipment assets on the diminishing
value basis:
• Motor vehicles: 25%
• Other property, plant and equipment: 20-50%
Material residual value estimates and estimates of useful life are updated as required, but at least annually.
Gains or losses arising on the disposal of property, plant and equipment assets are determined as the
difference between the disposal proceeds and the carrying amount of the assets and are recognised in
profit or loss within other income or other expenses.
((nn)) RRiigghhtt--ooff--UUssee AAsssseettss
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured
at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at
or before the commencement date net of any lease incentives received, any initial direct costs incurred,
and, except where included in the cost of inventories, an estimate of costs expected to be incurred for
dismantling and removing the underlying asset and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership
of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of-
use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short term
leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are
expensed to profit or loss as incurred.
((oo)) GGooooddss aanndd SSeerrvviicceess TTaaxx ((GGSSTT))
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Taxation Office (“ATO”). In these circumstances, the GST is
recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables
and payables in the statement of financial position are shown inclusive of GST.
The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability
in the statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows
arising from investing and financing activities which are recoverable from, or payable to, the ATO are
classified as operating cash flows.
Page 29
62
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
((pp)) TTaaxxaattiioonn
The income tax expense (revenue) for the year comprises current income tax expense (income) and
deferred tax expense (income).
Current income tax expense charged to the profit and loss is the tax payable on the taxable income using
applicable income tax rates enacted or substantially enacted as at the end of the reporting period. Current
tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the
relevant taxation authority.
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 assets and liabilities are ascertained based on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial information. Deferred tax assets
also result where amounts have been fully expensed but future tax deductions are available. No deferred
income tax will be recognised from the initial recognition of an asset or liability, excluding a business
combination, where there is no effect on accounting or taxable profit or loss.
Where temporary differences exist in relation to investments in subsidiaries and associates, deferred tax
assets and liabilities are not recognised where the timing of the reversal of the temporary difference can
be controlled and it is not probable that the reversal will occur in the foreseeable future.
((qq)) TTrraaddee aanndd OOtthheerr PPaayyaabblleess
Trade payables and other payables are carried at amortised cost and represent liabilities for goods and
services provided to the Group prior to the end of the financial year that are unpaid and arise when the
Group becomes obliged to make future payments in respect of the purchase of these goods and services.
((rr)) PPrroovviissiioonnss aanndd CCoonnttiinnggeenncciieess
Provisions are recognised when the Group has a legal or constructive obligation, as a result of a past event,
for which it is probable that an outflow of economic benefits will result and that outflow can be reliably
measured. The amount recognised as a provision is the best estimate of the consideration required to
settle the present obligation at the reporting date, taking into account the risks and uncertainties
surrounding the obligation.
The Group’s exploration activities are subject to various laws and regulations governing the protection of
the environment. A rehabilitation provision is made for the present value of anticipated costs for future
rehabilitation of land explored or mined, based on management’s best estimate for assets retirement
obligations and site rehabilitations, in the period in which the costs are incurred. Actual costs incurred in
the future periods could differ materially from the estimates. Additionally, future changes to environmental
laws and regulations and discount rates could affect the carrying amount of this provision.
((ss)) EEmmppllooyyeeee BBeenneeffiittss
Short Term Employee Benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave
expected to be settled wholly within 12 months of the reporting date are measured at the amounts
expected to be paid when the liabilities are settled.
63
Page 30
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
((ss)) EEmmppllooyyeeee BBeenneeffiittss ((ccoonnttiinnuueedd))
Other Long Term Employee Benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the
reporting date are measured at the present value of expected future payments to be made in respect of
services provided by employees up to the reporting date 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 reporting date on
corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated
future cash outflows.
Defined Contribution Superannuation Expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are
incurred.
((tt)) SShhaarree BBaasseedd PPaayymmeenntt TTrraannssaaccttiioonnss
The Group recognises the fair value of options and performance rights granted to Directors, employees
and consultants as remuneration as an expense on a pro-rata basis over the vesting period in the
consolidated statement of profit or loss and other comprehensive income with a corresponding
adjustment to equity.
The Group provides benefits to employees (including Directors) of the Group in the form of share based
payment transactions, whereby employees render services in exchange for shares or rights over shares
(“equity-settled transactions”). The cost of these equity-settled transactions with employees (including
Directors) is measured by reference to fair value at the date they are granted. The fair value is determined
using the Black Scholes option pricing model.
((uu)) IIssssuueedd CCaappiittaall
Issued and paid up capital is recognised at the fair value of the consideration received by the Group. Any
transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of
the share proceeds received.
((vv)) CCrriittiiccaall AAccccoouunnttiinngg EEssttiimmaatteess aanndd JJuuddggmmeennttss
In preparing the financial information, the Group has been required to make certain estimates and
assumptions concerning future occurrences. There is an inherent risk that the resulting accounting
estimates will not equate exactly with actual events and results.
((ii))
SSiiggnniiffiiccaanntt AAccccoouunnttiinngg JJuuddggeemmeennttss
In the process of applying the Group’s accounting policies, management has made the following
judgements, apart from those involving estimations, which have the most significant effect on the amounts
recognised in the financial statements:
CCaappiittaalliissaattiioonn ooff OOppeerraattiinngg LLeeaasseess
Determination of lease term
In determining the lease term, management considers all facts and circumstances that create an economic
incentive to exercise an extension option, or not exercise a termination option. Extension options (or
periods after termination options) are only included in the lease term if the lease is reasonably certain to
be extended (or not terminated).
Page 31
64
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
Determination of lease term (continued)
The lease term is reassessed if an option is actually exercised (or not exercised) or the Group becomes
obliged to exercise (or not exercise) it. The assessment of reasonable certainty is only revised if a significant
event or a significant change in circumstances occurs, which affects this assessment, and that is within the
control of the lessee.
Determination of incremental borrowing rate
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily
determined, which is generally the case for leases in the Group, the lessee’s incremental borrowing rate is
used.
To determine the incremental borrowing rate, where possible recent third party financing received by the
individual lessee is used as a starting point and adjusted to reflect changes in financing conditions since
third party financing was received. If there was no recent third party financing agreement, a build-up
approach is used that starts with a risk-free interest rate adjusted for credit risk for the lessee and any
further relevant adjustments specific to the lease (such as term, country, currency and security).
((iiii))
SSiiggnniiffiiccaanntt AAccccoouunnttiinngg EEssttiimmaatteess aanndd AAssssuummppttiioonnss
The carrying amounts of certain assets and liabilities are often determined based on estimates and
assumptions of future events. The key estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of certain assets and liabilities within the next annual
reporting period are:
Key Estimates – Impairment of Capitalised Exploration and Evaluation Expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number
of factors, including whether the Group decides to exploit the related lease itself or, if not, whether it
successfully recovers the related exploration and evaluation asset through sale.
Factors that could impact the future recoverability include the level of reserves and resources, future
technological changes, costs of drilling and production, production rates, future legal changes (including
changes to environmental restoration obligations) and changes to commodity prices.
Key Estimates – Share Based Payment Transactions
The Group 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. Fair values of share options are determined
using the Black Scholes option pricing model. Should the assumptions used in these calculations differ, the
amounts recognised could significantly change.
Key Assumptions –Valuation of derivative liability
The Group has entered into loan agreements which contain a conversion feature whereby the value of the
loan, or a portion thereof, can be converted into shares in the Company upon the occurrence of various
conversion trigger events or upon the election of the lender (or borrower). To derive the fair value of the
embedded derivative liability component of the loans, a number of assumptions have been made. These
assumptions, as well as key terms of the loan agreements, are outlined in note 13.
Key Judgement – Environmental Issues
Balances disclosed in the financial statements and notes thereto are not adjusted for any pending or
enacted environmental legislation. At the current stage of the Group’s development and its current
environmental impact, the Directors believe such treatment is reasonable and appropriate.
65
Page 32
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
((ww)) FFaaiirr VVaalluuee ooff AAsssseettss aanndd LLiiaabbiilliittiieess
The Group is required to classify all assets and liabilities, measured at fair value, using a three level hierarchy
based on the lowest level of input that is significant to the entire fair value measurement, being Level 1:
Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at
the measurement date; Level 2: Inputs other than quoted prices included within Level 1 that are observable
for the asset or liability, either directly or indirectly; and Level 3: Unobservable inputs for the asset or liability.
Considerable judgement is required to determine what is significant to fair value and therefore which
category the asset or liability is placed in can be subjective.
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring
basis, depending on the requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in
an orderly unforced transaction between independent, knowledgeable and willing market participants at
the measurement date and is based on the fair value hierarchy.
((xx)) GGoovveerrnnmmeenntt AAssssiissttaannccee aanndd GGrraannttss
Assistance received from the government by way of grant or other forms of assistance designed to provide
an economic benefit to the Group, is presented in the statement of financial position as deferred income,
in instances where the grant is related to assets. In all other cases, grant money is presented in the profit
and loss as other income. Grants are recognised when there is reasonable assurance that conditions will
be complied with and the grant will be received.
((yy)) EEaarrnniinnggss PPeerr SShhaarree
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of the parent entity,
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 financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to
take into account the after income tax effect of interest and other financing costs associated with dilutive
potential ordinary shares and the weighted average number of shares assumed to have been issued for
no consideration in relation to dilutive potential ordinary shares.
Page 33
66
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
22..
RREELLAATTEEDD PPAARRTTYY TTRRAANNSSAACCTTIIOONNSS
Transactions between related parties are on commercial terms and conditions, no more favourable than those
available to other parties unless otherwise stated.
o
o
During the financial year, the Company entered into a $3,000,000 unsecured loan agreement with a
director related entity, Metech Super Pty Ltd as trustee for the Metech No2 Super Fund. Refer to note 13
for further detail. $2,000,000 has been drawn down at the reporting date.
The Company has entered into a lease agreement with Elk Mountain Mining Limited, an entity associated
with Mr Charles Bass, for the lease of the Company’s administration offices in Perth, Western Australia.
Total payments made under the lease amounted to $95,748 (2022: $89,135) and included interest of
$17,530 (2022: $12,069) and lease principal repayments of $78,218 (2022: $77,066).
33..
RREEMMUUNNEERRAATTIIOONN OOFF AAUUDDIITTOORRSS
Audit and review of the financial statements
Taxation services
Total
YYeeaarr eennddeedd
3300 JJuunnee 22002233
AA$$
3322,,112255
2222,,112200
5544,,224455
Year ended
30 June 2022
A$
31,350
20,350
51,700
The auditor of Eagle Mountain Mining Limited is William Buck Audit (WA) Pty Ltd. During the reporting period, a
related entity of William Buck Audit (WA) Pty Ltd provided non-audit services amounting to $22,120 (2022: $20,350)
to companies in the Group.
44..
LLOOSSSS FFRROOMM OORRDDIINNAARRYY AACCTTIIVVIITTIIEESS
Included in the loss before income tax are the
following specific items of expenses:
Interest paid/payable on borrowings
Interest paid/payable on leases
Employee expenses – non-exploration
Share based payments expense - employees
Share based payments expense - suppliers
Insurances
Travel expenses
Movements in employee leave liabilities
YYeeaarr eennddeedd
3300 JJuunnee 22002233
AA$$
Year ended
30 June 2022
A$
((335588,,660000))
((3399,,444466))
((667700,,447711))
((332277,,887700))
--
((440099,,886633))
((220000,,115577))
((3311,,773399))
(348,971)
(49,181)
(631,630)
(736,936)
(802,800)
(335,357)
(66,522)
(28,544)
67
Page 34
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
55..
IINNCCOOMMEE TTAAXX EEXXPPEENNSSEE
YYeeaarr eennddeedd 3300 JJuunnee
22002233
AA$$
--
--
Year ended 30 June
2022
(Restated)
A$
-
-
((553355,,223355))
(936,847)
553355,,223355
936,847
--
-
Current tax:
Current income tax charge/(benefit)
Current income tax benefit not recognised
Deferred tax:
Relating to origination and reversal of timing
differences
Deferred tax benefit not recognised
(a)
The prima facie tax on loss from ordinary activities
before income tax is reconciled to the income tax
as follows:
Loss before tax
((1133,,666611,,330022))
(30,748,045)
The prima facie tax on loss from ordinary activities
attributable to parent entity before income tax:
Prima facie tax (benefit) on loss from ordinary
activities before income tax at 30% (2021: 30%)
Add/(less) tax effect of:
Exploration costs not deducted for tax
Non-deductible share based payments
Share issue costs deducted
Unrealised movement in fair value of financial
liabilities
Deferred tax asset not brought to account
Income tax attributable to entity
(b) Deferred tax – statement of financial position
Liabilities
Prepaid expenses
Foreign exchange
Assets
Employee leave and other employee liabilities
Liability for tailings storage facility
Right-of-use asset
Revenue losses available to offset against future
taxable income
Deductible equity raising costs
((44,,009988,,339911))
(9,224,414)
33,,110022,,009988
9988,,336611
((117711,,887766))
((5566,,113311))
11,,112255,,993399
--
3344,,440044
--
3344,,440044
5544,,005555
--
1133,,445599
8,095,447
461,921
(211,960)
(25,268)
904,274
-
42,688
-
42,688
54,926
130,643
11,834
22,,775588,,227733
1,994,871
444499,,007788
33,,227744,,886655
555,641
2,747,915
Net deferred tax asset not recognised
33,,224400,,446611
2,705,227
Page 35
68
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
55..
IINNCCOOMMEE TTAAXX EEXXPPEENNSSEE ((ccoonnttiinnuueedd))
(c) Deferred tax – income statement
Liabilities
Prepaid expenses
Foreign exchange
Assets
Accrued expenses and provisions
Employee leave and other employee liabilities
Right-of-use asset
Deductible equity raising costs
Increase in tax losses carried forward
Deferred tax benefit movement not recognised
YYeeaarr eennddeedd 3300 JJuunnee
22002233
AA$$
Year ended 30 June
2022
A$
88,,228844
--
((112233,,114433))
((88,,337711))
11,,662266
((110066,,556633))
776633,,440022
553355,,223355
311
41,228
130,643
13,096
5,623
253,122
492,824
936,847
The deferred tax benefit of tax losses not brought to account will only be obtained if:
(i)
The Company derives future assessable income of a nature and an amount sufficient to enable the benefit
from the tax losses to be realised;
The Company continues to comply with the conditions for deductibility imposed by tax legislation; and
No changes in tax legislation adversely affect the Company realising the benefit from the deduction of the losses.
(ii)
(iii)
66..
CCAASSHH AANNDD CCAASSHH EEQQUUIIVVAALLEENNTTSS
Cash at bank
Deposits at call
Total
3300 JJuunnee 22002233
AA$$
22,,223366,,553366
--
30 June 2022
A$
11,073,913
-
22,,223366,,553366
11,073,913
Included in cash at bank are amounts held in US dollar denominated bank accounts equivalent to $1,361,138
(2022: $4,063,402).
77..
TTRRAADDEE AANNDD OOTTHHEERR RREECCEEIIVVAABBLLEESS
GST receivable
Accrued income and other receivables
Prepaid expenses and deposits
Total
3300 JJuunnee 22002233
AA$$
30 June 2022
A$
55,,558800
6644,,444400
111144,,668811
118844,,770011
6,341
162,045
142,294
310,680
The carrying amounts of trade and other receivables are assumed to approximate their fair values due to their
short term nature.
69
Page 36
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
88..
EEXXPPLLOORRAATTIIOONN AANNDD EEVVAALLUUAATTIIOONN EEXXPPEENNDDIITTUURREE
MMoovveemmeenntt dduurriinngg tthhee yyeeaarr
Carrying value – beginning of year
Capitalisation of tailings storage facility costs 1
Effect of movement in foreign exchange rates
CCaarrrryyiinngg vvaalluuee –– eenndd ooff tthhee yyeeaarr
1 Refer to note 14.
3300 JJuunnee 22002233
AA$$
30 June 2022
A$
1100,,777744,,880033
9,474,278
8855,,776666
442200,,991177
435,477
865,048
1111,,228811,,448866
10,774,803
Carried forward exploration and evaluation expenditure represents the exploration asset acquisition costs
recognised on the acquisition of Silver Mountain Mining Pty Ltd and the Oracle Ridge Copper Mine. The
recoverability of the carrying amount of the exploration and evaluation assets is dependent upon successful
development and commercial exploitation, or alternatively, sale of the respective areas of interest.
99..
PPRROOPPEERRTTYY,, PPLLAANNTT AANNDD EEQQUUIIPPMMEENNTT
Leasehold
improve-
ments
A$
Office
equipment
and
furniture
A$
Field
equipment
and
vehicles
A$
Mine plant
and
equipment
Mine
prop-
erties
Total
A$
A$
A$
397,302
123,777
582,970
1,244,737
3,924
2,830
22,137
48,626
-
-
2,348,786
77,517
-
-
90,504
-
11,203
-
81,467 3,008,939
-
-
3,192,113
-
Cost at the beginning of the
year
Effect of foreign exchange
movements
Additions
Disposals
CCoosstt aatt tthhee eenndd ooff tthhee yyeeaarr
440011,,222266
221177,,111111
661166,,331100
11,,337744,,883300 33,,000088,,993399
55,,661188,,441166
Accumulated depreciation at
the beginning of the year
Disposals
Effect of foreign exchange
movements
Depreciation charged in the
year
AAccccuummuullaatteedd ddeepprreecciiaattiioonn aatt
tthhee eenndd ooff tthhee yyeeaarr
Net book
beginning of the year
value at
the
NNeett bbooookk vvaalluuee aatt tthhee eenndd ooff
tthhee yyeeaarr
(297,120)
(93,984)
(234,185)
(501,111)
-
-
-
-
(1,564)
(2,137)
(10,016)
(22,288)
(54,046)
(26,906)
(95,651)
(172,529)
-
-
-
-
(1,126,400)
-
(36,005)
(349,132)
((335522,,773300))
((112233,,002277))
((333399,,885522))
((669955,,992288))
--
((11,,551111,,553377))
100,182
29,793
348,785
743,626
-
1,222,386
4488,,449966
9944,,008844
227766,,445588
667788,,990022 33,,000088,,993399
44,,110066,,887799
Page 37
70
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
1100.. RRIIGGHHTT--OOFF--UUSSEE AASSSSEETT
Opening balance
Right-of-use asset additions
Depreciation expense
Foreign currency differences
Total
3300 JJuunnee 22002233
AA$$
30 June 2022
A$
559922,,660066
--
((225555,,228833))
99,,119933
334466,,551166
531,202
261,426
(230,840)
30,818
592,606
The Group leases land and buildings for its offices in Perth, Australia and Arizona, United States of America under
agreements with original terms of up to five years and which may contain options to extend the lease term.
1111.. TTRRAADDEE AANNDD OOTTHHEERR PPAAYYAABBLLEESS
CCuurrrreenntt
Trade creditors and accrued expenses
Other payables
Payroll liabilities
Total
3300 JJuunnee 22002233
AA$$
30 June 2022
A$
441122,,667722
2266,,447711
7755,,665577
551144,,880000
846,813
1,415
152,408
1,000,636
The carrying amounts of trade and other payables are assumed to approximate their fair values due to their short
term nature.
1122.. LLEEAASSEE LLIIAABBIILLIITTIIEESS
Current liability
Non-current liability
Total
MMoovveemmeenntt iinn lleeaassee lliiaabbiilliittiieess
Opening balance
Increase in liability1
Principal repayments
Foreign currency differences
Lease liabilities at the end of the year
3300 JJuunnee 22002233
AA$$
30 June 2022
A$
225500,,332211
114411,,006600
339911,,338811
663322,,005522
--
((225500,,774466))
1100,,007755
339911,,338811
246,870
385,182
632,052
551,908
261,426
(249,703)
68,421
632,052
1 During the prior financial year the option to extend the lease on the office premises in Nedlands, Australia was
exercised with the lease extended for a further period of three years.
Refer to note 23(c) for details of short term leases or leases of low value assets.
71
Page 38
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
1133.. BBOORRRROOWWIINNGGSS
CCuurrrreenntt
Vehicle loan amounts due within one year 1
NNoonn--CCuurrrreenntt
Loan – derivative liability
Loan – debt liability
Subtotal loan 2
Loan from related party 3
Loan – derivative liability
Loan – debt liability
Subtotal loan
3300 JJuunnee 22002233
AA$$
-
30 June 2022
(Restated)
A$
3,797
334488,,660066
1100,,449966,,118899
449,035
9,783,207
1100,,884444,,779955
10,232,242
4488,,770022
11,,996699,,448877
22,,001188,,118899
-
-
-
Total non-current borrowings
1122,,886622,,998844
10,232,242
1 Vehicle loan amounts are secured over assets with a net book value of A$23,278 (2021: A$28,440) held by Silver
Mountain Mining Operations Inc. (refer note 9).
2 VViinncceerree LLooaann
Under the terms of the purchase agreement of the Oracle Ridge Copper Mine in Arizona in the United States of
America, Wedgetail Operations LLC, a subsidiary in which the Company now holds a 100% interest, entered into a
US$6,423,000 secured loan with Vincere Resource Holdings LLC. The loan is secured over all of the assets of
Wedgetail Operations LLC, has a ten-year term and accrues interest at 3.15% per annum for the first five years with
no interest accruing thereafter.
Under the terms of the agreement, the lender has the right to convert up to US$1,000,000 of the secured loan into
ordinary shares of the Company upon each of the following three conversion trigger events:
i.
ii.
iii.
The completion of a preliminary feasibility study;
A commitment is made to proceed with a bankable feasibility study; and
A commitment is made to commission the financing of the project as evidenced by a feasibility study
sufficient to obtain third party financing.
The terms of the agreement prevent the issue of ordinary shares to the lender where the cumulative amount of
shares held as a result of exercising the conversion rights would exceed 10% of the Company’s ordinary shares on
issue.
The conversion price of each conversion right held by the lender is an amount equal to a 20% discount to the 30
day volume weighted average price of the Company’s shares for the 30 days immediately after the date of public
announcement of the applicable conversion trigger event.
The face value of US$6,423,000 comprises the sum of the value of the derivative liability (or conversion right), and
the debt liability component at inception. The debt liability component of the secured loan is amortised at each
reporting period using the effective interest method. The derivative liability component is revalued at each reporting
date over the life of the secured loan.
Page 39
72
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
1133.. BBOORRRROOWWIINNGGSS ((ccoonnttiinnuueedd))
Fair Value Measurement
The derivative liability component of the US$6,423,000 loan is measured or disclosed at fair value, using a three
level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement. Refer to
accounting policy note 1(w) for a description of the three levels. The derivative liability has been categorised as Level
3 in the fair value hierarchy and the fair value at the end of the reporting period was A$348,606.
There were no transfers between levels during the financial year.
Correction of significant misstatement of fair value of the conversion right
An independent valuation was undertaken on initial recognition of the conversion right. At each reporting date since
initial recognition, the conversion right has been independently revalued. During the 31 December 2022 reporting
period, it was discovered that the fair value of the conversion right had been miscalculated at the preceding
reporting dates. As a consequence, an updated independent valuation of the fair value of the conversion right was
undertaken to establish the fair value of the conversion rights that should have been reported. As a result, the total
value of the loan was found to have been overstated in prior periods. The reported value of the liability has been
corrected by restating each of the affected financial statement line items for prior periods. The following tables
summarise the impacts on the Group’s consolidated financial statements.
SSttaatteemmeenntt ooff FFiinnaanncciiaall
PPoossiittiioonn ((eexxttrraacctt))
3300 JJuunnee
22002222
((RReeppoorrtteedd))
$$AA
IInnccrreeaassee//
((ddeeccrreeaassee))
$$AA
3300 JJuunnee 22002222
((RReessttaatteedd))
$$AA
3300 JJuunnee
22002211
((RReeppoorrtteedd))
$$AA
IInnccrreeaassee//
((ddeeccrreeaassee))
$$AA
11 JJuullyy 22002211
((RReessttaatteedd))
$$AA
Derivative Liability
Debt Liability
2,797,229
8,717,849
(2,348,194)
1,065,358
449,035
9,783,207
3,297,591
7,705,643
(2,817,711)
976,224
479,880
8,681,867
NNeett aasssseettss
1100,,551133,,005544
11,,228822,,883366
1111,,779955,,889900
66,,558811,,884444
11,,884411,,448877
88,,442233,,333311
Foreign exchange
reserve
Retained earnings
TToottaall eeqquuiittyy
184,045
118,723
302,768
272,208
(12,435)
259,773
(74,604,789)
1100,,551133,,005544
1,164,113
11,,228822,,883366
(73,440,676)
1111,,779955,,889900
(44,550,789)
66,,558811,,884444
1,853,922
11,,884411,,448877
(42,696,867)
88,,442233,,333311
SSttaatteemmeenntt ooff PPrrooffiitt oorr LLoossss oorr OOtthheerr CCoommpprreehheennssiivvee IInnccoommee ((eexxttrraacctt))
Fair value gain/(loss) on convertible notes
LLoossss bbeeffoorree iinnccoommee ttaaxx
Income tax
LLoossss aafftteerr iinnccoommee ttaaxx
Other comprehensive income/(loss)
-
TToottaall ccoommpprreehheennssiivvee lloossss ffoorr tthhee yyeeaarr
(Loss)/gain on foreign currency exchange
Earnings per share
- Basic and diluted loss per share
3300 JJuunnee 22002222
((RReeppoorrtteedd))
$$AA
760,670
((3300,,005588,,223366))
-
((3300,,005588,,223366))
IInnccrreeaassee//
((ddeeccrreeaassee))
$$AA
(689,809)
((668899,,880099))
-
((668899,,880099))
3300 JJuunnee 22002222
((RReessttaatteedd))
$$AA
70,861
((3300,,774488,,004455))
-
((3300,,774488,,004455))
(88,163)
((3300,,114466,,339999))
131,158
113311,,115588
42,995
((3300,,770055,,005500))
cceennttss
((1133..00))
cceennttss
((00..33))
cceennttss
((1133..33))
73
Page 40
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
1133.. BBOORRRROOWWIINNGGSS ((ccoonnttiinnuueedd))
Valuation Model Assumptions
An independent valuation of the derivative liability has been undertaken at 30 June 2023 using a Monte Carlo
simulation model with the following assumptions:
Assumptions
Valuation date
Spot price (A$) 1
Exercise price 2
Risk free rate
Expected future volatility
Expiry date 3
Probability 4
Conversion Event 1
30 June 2023
$0.100
$0.085
4.18%
85%
31 December 2024
90%
Conversion Event 2
30 June 2023
$0.100
$0.088
4.18%
85%
31 December 2025
70%
Conversion Event 3
30 June 2023
$0.100
$0.093
4.28%
85%
31 December 2026
70%
1 The share price of an EM2 share traded on the ASX to market close on 30 June 2023.
2 Exercise price is equal to a 20% discount to the estimated volume weighted average price of the Company’s shares
for the 30 days immediately after the public announcement of the applicable conversion trigger event.
3 The expiry date is the estimated date on which the conversion right will be exercised for each tranche of conversion
rights and is estimated from the date of the agreement.
4 Management’s estimate as at balance date of the probability of the conversion trigger events being achieved on
the expiry dates for each tranche of conversion rights.
Based on the above assumptions, the revaluation of the derivative liability resulted in a fair value gain of US$78,214
(A$116,145) which has been recognised through the profit and loss.
In relation to the restriction of conversion rights up to 10% of the ordinary shares on issue, the valuation is based
on the number of shares on issue at valuation date.
Reconciliation of movement in Level 3 derivative liability
MMoovveemmeenntt dduurriinngg tthhee yyeeaarr
Balance at the start of the financial year
Gain recognised in profit or loss
Effect of movement in foreign exchange rates
BBaallaannccee aatt tthhee eenndd ooff tthhee ffiinnaanncciiaall yyeeaarr
3300 JJuunnee 22002233
AA$$
444499,,003355
((111166,,114455))
1155,,771166
334488,,660066
30 June 2022
(Restated)
A$
479,880
(70,861)
40,016
449,035
Page 41
74
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
1133.. BBOORRRROOWWIINNGGSS ((ccoonnttiinnuueedd))
Unobservable inputs for fair value measurement
In determining the fair value measurement of the derivative liability, certain observable inputs such as the share
price and exercise price of the conversion rights are used, together with unobservable inputs.
The unobservable inputs used in the valuation of the derivative liability are deemed to be:
1.
Issued capital – as the conversion rights are restricted to not more than 10% of the ordinary shares on issue,
any increase in issued shares may impact the number of conversion rights that can be exercised; and
2. Timing of the three milestones to be achieved (conversion trigger events).
The Level 3 unobservable inputs and sensitivity are as follows:
Unobservable Input
Change in input
Shares on Issue
+25%
Date of conversion trigger
event
-6 months
Date of conversion trigger
event
+6 months
Sensitivity
A 25% increase in share capital will result in
an increase in fair value of approximately
$42,100
A decrease of 6 months in achieving the first
and subsequent milestones will result in an
increase in fair value of approximately
$7,100
An increase of 6 months in achieving the
first and subsequent milestones will result in
a decrease in fair value of approximately
$6,900
3 LLooaann ffrroomm RReellaatteedd PPaarrttyy
During the financial year, Metech Super Pty Ltd as trustee for the Metech No2 Super Fund (Lender), an entity
associated with Director, Mr Charles Bass, provided an unsecured loan facility of up to $3,000,000 to the Company.
At 30 June 2023, the Company had drawn down $2,000,000 of the facility. The loan attracts interest at 10% per
annum and matures on 31 December 2024. The Company may repay all or part of the outstanding loan balance at
any time prior to the maturity date without penalty. The Lender may elect to convert all or part of the outstanding
balance into ordinary shares in the Company at any time up until the date which is 90 days prior to maturity, subject
to shareholder approval, at a conversion price being the greater of:
i.
ii.
a 15% discount to the 15 day VWAP for the Company’s shares immediately prior to the election to convert;
and
a floor price of $0.14 per share.
If any portion of the loan is not repaid or converted prior to the day which is 90 days prior to maturity, the Company
may at its sole discretion either repay the balance of the loan and interest in cash or require conversion at a 12%
discount to the 15 day VWAP for the Company’s shares immediately prior to the election to convert, subject to
shareholder approval.
The face value of $2,000,000 comprises the sum of the value of the derivative liability (or conversion right), and the
debt liability component at inception. The debt liability component of the loan is amortised at each reporting period
using the effective interest method. The fair value of the derivative liability component is revalued at each reporting
date over the life of the loan.
75
Page 42
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
1133.. BBOORRRROOWWIINNGGSS ((ccoonnttiinnuueedd))
Fair Value Measurement
The derivative liability component of the $2,000,000 loan drawn down at 30 June 2023 is measured or disclosed at
fair value, using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value
measurement. Refer to accounting policy note 1(w) for a description of the three levels. The derivative liability has
been categorised as Level 3 in the fair value hierarchy and the fair value at the end of the reporting period was
$48,702.
There were no transfers between levels during the financial year.
Valuation Model Assumptions
An independent valuation of the derivative liability has been undertaken at the loan drawdown date, and
subsequently revalued at 30 June 2023, using a Monte Carlo simulation model with the following assumptions:
Assumptions
Valuation date
Spot price (A$) 1
Risk free rate
Expected future volatility
Expiry date 2
Drawdown Date
26 May 2023
$0.100
3.57%
85%
31 December 2024
30 June 2023
30 June 2023
$0.100
4.18%
85%
31 December 2024
1 The share price of an EM2 share traded on the ASX to market close on 26 May 2023 and 30 June 2023 respectively.
2 The expiry date is the maturity date of the loan and it is assumed that conversion would occur on this date.
Exercise price – It was identified that three possible conversion scenarios could occur depending on the value of
the share price. A Monte Carlo simulation model was used to assess the probability of the share price hitting each
of the thresholds with results as follows:
Probability of spot price < $0.140
Probability of spot price $0.140 to $0.165
Probability of spot price > $0.165
Probability
78.9%
4.0%
17.1%
Based on the above assumptions, the revaluation of the derivative liability resulted in a fair value gain of $4,291
which has been recognised through the profit and loss.
Reconciliation of movement in Level 3 derivative liability
MMoovveemmeenntt dduurriinngg tthhee yyeeaarr
Balance at the start of the financial year
Fair value on initial drawdown date
Gain recognised in profit or loss
BBaallaannccee aatt tthhee eenndd ooff tthhee ffiinnaanncciiaall yyeeaarr
3300 JJuunnee 22002233
AA$$
30 June 2022
A$
--
5522,,999933
((44,,229911))
4488,,770022
-
-
-
-
Page 43
76
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
1144.. PPRROOVVIISSIIOONNSS
MMoovveemmeenntt iinn TTaaiilliinnggss SSttoorraaggee FFaacciilliittyy dduurriinngg tthhee yyeeaarr
Carrying value – beginning of year
Additional provision for tailings storage facility
Amounts used
CCaarrrryyiinngg vvaalluuee –– eenndd ooff tthhee yyeeaarr
3300 JJuunnee 22002233
AA$$
30 June 2022
A$
443355,,447777
8855,,776666
((552211,,224433))
-
435,477
-
--
435,477
The Group acquired an existing tailings storage facility (“TSF”) with the purchase of the Oracle Ridge Copper Project.
The TSF is covered by a permit issued by the Arizona Department of Environmental Quality which includes a condition
that the TSF be upgraded to meet current engineering standards. The cost of the upgrade which was completed
during the financial year has been provided for in the financial statements as an adjustment to the cost of acquisition
of the Oracle Ridge Copper Project (refer note 8).
1155..
IISSSSUUEEDD CCAAPPIITTAALL
SShhaarreess
Balance at the beginning of the year
Shares issued on exercise of
options
Shares issued on exercise of
performance rights
Placement shares issued
Placement shares issued
Issued in lieu of loan repayment
Placement shares issued
Share Purchase Plan shares issued
Less: share issue costs – cash *
Balance at 30 June
IIssssuuee
pprriiccee
$0.20
$0.30
-
$0.65
$0.45
$0.165
$0.165
-
YYeeaarr eennddeedd
3300 JJuunnee 22002233
Year ended
30 June 2022
SShhaarreess
AA$$
Shares
A$
226688,,226655,,006633 7788,,550011,,887788
202,669,630
45,601,593
11,,990000,,000000
445566,,000000
3,640,877
1,137,080
--
--
--
--
--
--
--
--
35,000
11,200
24,620,001
16,003,000
35,555,555
16,000,000
1,744,000
1,299,280
3300,,330033,,003311
55,,000000,,000000
44,,449988,,776699
774422,,229977
--
((221177,,770077))
-
-
-
-
-
(1,550,275)
330044,,996666,,886633 8844,,448822,,446688
268,265,063
78,501,878
* No deferred tax asset has been recognised in respect of the share issue costs as at the date of the financial
report as it is not probable that it will be realised (refer note 5).
The Company is a public company limited by shares. The Company was incorporated in Perth, Western Australia.
The Company’s shares are limited whereby the liability of its members is limited to the amount (if any) unpaid on
the shares respectively held by them.
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in
proportion to the number of and amounts paid on the shares held. On a show of hands every holder of ordinary
shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled
to one vote.
Ordinary shares have no par value. There is no limit to the authorised share capital of the Company.
77
Page 44
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
1166.. RREESSEERRVVEESS
Foreign currency translation reserve – 2022 restated (note 13)
447799,,776644
330022,,776688
3300 JJuunnee 22002233
AA$$
30 June 2022
A$
Share based payments reserve
Common control reserve
Movements in reserves:
aa))
FFoorreeiiggnn ccuurrrreennccyy ttrraannssllaattiioonn rreesseerrvvee
Balance at the beginning of the year
Exchange gain for the year
Balance at the end of the year
88,,005588,,331111
99,,444466,,119966
((33,,001144,,227766))
((33,,001144,,227766))
55,,552233,,779999
66,,773344,,668888
YYeeaarr eennddeedd
3300 JJuunnee 22002233
AA$$
Year ended
30 June 2022
(Restated)
A$
330022,,776688
117766,,999966
447799,,776644
225599,,777733
4422,,999955
330022,,776688
FFoorreeiiggnn ccuurrrreennccyy ttrraannssllaattiioonn rreesseerrvvee
The foreign currency translation reserve records unrealised exchange gains and losses on translation of
controlled entities accounts during the year.
bb))
SShhaarree bbaasseedd ppaayymmeennttss rreesseerrvvee
Balance at the beginning of the year
Fair value vesting expense of options and performance rights
Fair value of options/performance rights exercised during the year
Fair value of options expired during the year
Balance at the end of the year
YYeeaarr eennddeedd
3300 JJuunnee 22002233
AA$$
Year ended
30 June 2022
A$
99,,444466,,119966
332277,,887700
((7766,,000000))
((11,,663399,,775555))
8,268,608
1,539,736
(357,912)
(4,236)
88,,005588,,331111
9,446,196
SShhaarree bbaasseedd ppaayymmeennttss rreesseerrvvee
The share based payments reserve has been used to recognise the fair value of options and performance
rights issued and vested but not exercised as at the end of the reporting year.
cc))
CCoommmmoonn ccoonnttrrooll rreesseerrvvee
Balance at the beginning of the year
Common control transactions during the year
Balance at the end of the year
YYeeaarr eennddeedd
3300 JJuunnee 22002233
AA$$
Year ended
30 June 2022
A$
((33,,001144,,227766))
(3,014,276)
--
-
((33,,001144,,227766))
(3,014,276)
Page 45
78
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
1166.. RREESSEERRVVEESS ((ccoonnttiinnuueedd))
CCoommmmoonn ccoonnttrrooll rreesseerrvvee
The amount recognised in the common control reserve represents the excess in fair value consideration
given, over the net assets acquired, on the acquisition of Silver Mountain Mining Pty Ltd from Silver
Mountain Mining Nominees Pty Ltd on 7 December 2017.
1177.. OOPPTTIIOONNSS AANNDD EEQQUUIITTYY BBAASSEEDD PPAAYYMMEENNTTSS
OOppttiioonnss –– RReeccoonncciilliiaattiioonn ooff MMoovveemmeennttss
Options on issue at the beginning of the year
Options issued pursuant to corporate advisory mandate
Options cancelled
Options exercised
Options on issue at the end of the year
OOppttiioonn CCaappiittaall –– RReeccoonncciilliiaattiioonn ooff MMoovveemmeennttss
Balance at the beginning of the year
Movements during the year
Balance at the end of the year
3300 JJuunnee 22002233
NNuummbbeerr
2277,,661111,,115544
--
((1100,,336611,,115544))
((11,,990000,,000000))
1155,,335500,,000000
30 June 2022
Number
29,452,780
2,000,000
(200,749)
(3,640,877)
27,611,154
3300 JJuunnee 22002233
AA$$
--
--
30 June 2022
A$
44,,550000
((44,,550000))
--
--
Options outstanding at the beginning
of the year
Options granted during the year
Options exercised during the year
Options cancelled and expired
unexercised during the year
Options outstanding at 30 June
22002233
WWeeiigghhtteedd
AAvveerraaggee
EExxeerrcciissee PPrriiccee
((cceennttss))
4466..3366
--
2200..0000
4422..4400
5522..2299
2022
Weighted
Average
Exercise Price
(cents)
41.56
81.25
21.58
139.55
46.36
No.
29,452,780
2,000,000
(3,640,877)
(200,749)
27,611,154
NNoo..
2277,,661111,,115544
--
((11,,990000,,000000))
((1100,,336611,,115544))
1155,,335500,,000000
Basis and Assumptions Used in the Valuation of Options
Options issued during a reporting period are valued using the Black Scholes option valuation methodology.
Historical volatility over the previous 12 months is used as the expected share price volatility.
An expense of $239,074 has been recognised through the consolidated statement of profit or loss and other
comprehensive income for the year ended 30 June 2023 (2022: $1,511,654) in respect of the expensing of options
during the year.
Weighted Average Contractual Life
The weighted average contractual life for unexercised options is 8.6 months (2022: 16.2 months).
79
Page 46
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
1177..
OOPPTTIIOONNSS AANNDD EEQQUUIITTYY BBAASSEEDD PPAAYYMMEENNTTSS ((ccoonnttiinnuueedd))
PPeerrffoorrmmaannccee RRiigghhttss
During the year ended 30 June 2023, no performance rights were issued (2022: 300,000) and 100,000 performance
rights vested (2022: 35,000). No performance rights were exercised or cancelled.:
An expense of $88,796 (2022: $28,082) has been recognised through the consolidated statement of profit or loss and
other comprehensive income in respect of the vesting of performance rights during the financial year.
1188.. CCAASSHH FFLLOOWW IINNFFOORRMMAATTIIOONN
RReeccoonncciilliiaattiioonn ooff ccaasshh fflloowwss ffrroomm ooppeerraattiinngg aaccttiivviittiieess wwiitthh lloossss aafftteerr iinnccoommee
ttaaxx
Loss after income tax
NNoonn--ccaasshh iitteemmss iinncclluuddeedd iinn pprrooffiitt oorr lloossss
Depreciation expense
Gains on foreign exchange
Fair value gain
Share based payment expense
Accrued interest expense
CChhaannggeess iinn aasssseettss aanndd lliiaabbiilliittiieess::
(Increase)/decrease in receivables
(Increase)/decrease in prepayments
(Decrease)/increase in employee leave liabilities
(Decrease)/increase in accounts payable and accruals
YYeeaarr eennddeedd
3300 JJuunnee 22002233
AA$$
Year ended
30 June 2022
(Restated)
A$
((1133,,666611,,330022))
(30,748,045)
660044,,441155
((5500,,884499))
((112200,,443366))
332277,,887700
335522,,886633
9988,,336666
2277,,661133
((1199,,773300))
((663344,,004422))
582,588
(611,687)
(141,819)
1,539,736
309,623
(5,584)
1,035
43,559
(198,058)
NNeett ccaasshh oouuttfflloowwss ffrroomm ooppeerraattiinngg aaccttiivviittiieess
((1133,,007755,,223322))
(29,228,652)
1199.. SSEEGGMMEENNTT IINNFFOORRMMAATTIIOONN
AASB 8 Operating Segments requires operating segments to be identified on the basis of internal reports about
components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate
resources to the segment and to assess its performance.
The Group operates in one segment, being exploration for mineral resources. This is the basis on which internal
reports are provided to the Directors for assessing performance and determining the allocation of resources
within the Group.
Following the acquisition of Silver Mountain Mining Pty Ltd on 7 December 2017, and the Oracle Ridge Copper
Mine in November 2019, the Group operates in Australia and United States of America.
Page 47
80
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
1199.. SSEEGGMMEENNTT IINNFFOORRMMAATTIIOONN ((ccoonnttiinnuueedd))
Information regarding the non-current assets by geographical location is reported below. No segment information
is provided for United States of America in relation to revenue and profit or loss for the year ended 30 June 2023
or year ended 30 June 2022.
Reconciliation of Non-Current Assets by Geographical Location
Australia
United States of America
2200.. SSUUBBSSEEQQUUEENNTT EEVVEENNTTSS
3300 JJuunnee 22002233
AA$$
30 June 2022
A$
227788,,001144
325,526
1155,,775522,,776633
12,548,510
1166,,003300,,777777
12,874,036
There has not arisen in the interval between the end of the financial year and the date of this report any item,
transaction or event of a material and unusual nature likely to affect substantially the operations of the Group, the
results of those operations or the state of affairs of the Group in subsequent financial years.
2211.. KKEEYY MMAANNAAGGEEMMEENNTT PPEERRSSOONNNNEELL
(a)
Directors and Key Management Personnel
The following persons were Directors or Key Management Personnel of Eagle Mountain Mining Limited during the
financial year:
(i)
(ii)
(iii)
(iv)
(v)
Chairman – Non-Executive
Rick Crabb
Executive Director
Charles Bass, Managing Director
Non-Executive Director
Roger Port
Alternate Director
Brett Rowe (as Alternate Director to Charles Bass)
Chief Executive Officer
Timothy Mason
There were no other persons employed by or contracted to the Company during the financial year having
responsibility for planning, directing and controlling the activities of the Company, either directly or indirectly.
81
Page 48
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
2211.. KKEEYY MMAANNAAGGEEMMEENNTT PPEERRSSOONNNNEELL ((ccoonnttiinnuueedd))
(b)
Key Management Personnel Compensation
A summary of total compensation paid to Key Management Personnel is as follows:
Total short term employment benefits
Total equity based payments
Total post employment benefits
3300 JJuunnee 22002233
AA$$
448800,,220055
116622,,222299
3399,,554455
30 June 2022
A$
447,796
214,966
37,203
668811,,997799
699,965
2222.. CCOONNTTIINNGGEENNTT LLIIAABBIILLIITTIIEESS
The Group has an exploration service agreement with Dragon’s Deep Exploration, Inc., an Arizona corporation
(“Dragon”). Included in this agreement is a performance bonus payable to Dragon consisting of cash together with
shares in Eagle Mountain Mining Limited (shares at market price, escrowed as required by the appropriate
exchange) within 10 days of the event detailed below:
CCrriitteerriiaa ((SSppeecciiffiiccaallllyy rreellaatteedd ttoo tthhee SSiillvveerr MMoouunnttaaiinn PPrroojjeecctt))
Commencement of a preliminary feasibility study in respect of
any land covered by any mining claims or permits held by Silver
Mountain Mining LLC and located in Arizona, USA.1
CCaasshh BBoonnuuss
SShhaarreess ooff
VVaalluuee
US$100,000
US$200,000
1.
The milestone satisfaction date is the date on which the Company announces to the Australian Securities
Exchange that it has commenced a pre-feasibility study on the relevant mining claims or permits. “Pre-
feasibility Study” is as defined in the Australian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (2012 Edition).
The Group does not currently foresee a preliminary feasibility study covering the claims held by Silver Mountain
Mining LLC commencing in the near future.
Other than the above, the Group has no contingent liabilities outstanding at the end of the year.
Page 49
82
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
2233.. CCOOMMMMIITTMMEENNTTSS
((aa))
EExxpplloorraattiioonn EExxppeennddiittuurree
In order to maintain the current tenure status of its exploration assets, the Group has certain obligations
and minimum expenditure requirements with respect to unpatented claims and Arizona state exploration
permits located in Arizona in the United States of America, as follows:
Within 1 year
After 1 year but not more than 5 years
Total
3300 JJuunnee 22002233
AA$$
553333,,997788
22,,119977,,775588
22,,773311,,773366
30 June 2022
A$
547,373
2,080,621
2,627,994
((bb))
AAsssseett AAccqquuiissiittiioonn
The Group has no commitments for asset acquisitions at 30 June 2023.
((cc))
OOppeerraattiinngg LLeeaasseess
During the current reporting period, the Group entered into a low value operating lease to rent storage space in
Tucson, Arizona and the Group has availed itself of the recognition exemption under AASB16 Leases. At 30 June
2023, the commitments under the lease agreement are as follows:
Within 1 year
After 1 year but not more than 5 years
Total
3300 JJuunnee 22002233
AA$$
1122,,667700
1122,,667700
2255,,334400
30 June 2022
A$
3,484
7,258
10,742
((dd))
((ee))
DDrriilllliinngg CCoommmmiittmmeennttss
There were no drilling commitments outstanding at 30 June 2023 (2022: US$187,000).
OOtthheerr CCoommmmiittmmeennttss
A Reversionary Interest in the Mineral Rights is held by Marble Mountain Ventures LLC (“MMV”) over certain of the
Patented Claims covering the mine. The Reversionary Interest is provided for in a deed dated 18 February 2010,
with reversion set to occur on 18 February 2025, unless an Extension Option is exercised by Wedgetail Operations
LLC (“WTO”). In order to exercise the Extension Option, WTO needs to provide 30 days written notice, make an
Extension Payment in the order of US$3 million adjusted for CPI and remain in compliance with various related
agreements. Should WTO agree to exercise the Extension Option, WTO’s interest in the mineral rights related to
certain of the Patented Claims will be extended to 18 February 2040.
The Company also has an Industrial Property Lease agreement (“Lease Agreement”) with MMV which provides
surface access rights over patented claims which covers areas including the existing 5900 and 6400 mine portals,
and the historic mill site. The Company made lease payments of approximately US$194,000 this financial year to
MMV pursuant to the Lease Agreement (refer note 23(a)). The lease payments are subject to annual escalation for
inflation. The term of the lease automatically renews every three years until expiration of the term on 31 January
2040.
83
Page 50
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
2244.. FFIINNAANNCCIIAALL RRIISSKK MMAANNAAGGEEMMEENNTT
The Group has exposure to a variety of risks arising from its use of financial instruments. This note presents
information about the Company’s exposure to the specific risks, and the policies and processes for measuring and
managing those risks. The Board of Directors has the overall responsibility for the risk management framework
and has adopted a Risk Management Policy.
((aa)) CCrreeddiitt RRiisskk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from transactions with customers and
investments.
Trade and Other Receivables
The nature of the business activity of the Group does not result in trading receivables. The receivables that
the Group does experience through its normal course of business are short term and the most significant
recurring by quantity is receivable from the ATO. The risk of non-recovery of receivables from this source
is considered to be negligible.
Cash Deposits
The Directors believe any risk associated with the use of predominantly one bank is addressed through the
use of at least an A-rated bank as a primary banker. Except for this matter the Group currently has no
significant concentrations of credit risk.
((bb))
LLiiqquuiiddiittyy RRiisskk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Group’s reputation.
The Group manages its liquidity risk by monitoring its cash reserves and forecast spending. Management
is cognisant of the future demands for liquid finance resources to finance the Company’s current and future
operations, and consideration is given to the liquid assets available to the Company before commitment is
made to future expenditure or investment.
((cc)) MMaarrkkeett RRiisskk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and
equity prices will affect the Group’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising any return.
Interest Rate Risk
The Group has cash assets which may be susceptible to fluctuations in changes in interest rates. Whilst the
Group requires the cash assets to be sufficiently liquid to cover any planned or unforeseen future
expenditure, which prevents the cash assets being committed to long term fixed interest arrangements,
the Group does mitigate potential interest rate risk by entering into short to medium term fixed interest
investments.
Page 51
84
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
2244.. FFIINNAANNCCIIAALL RRIISSKK MMAANNAAGGEEMMEENNTT ((ccoonnttiinnuueedd))
Equity Risk
The Group has no direct exposure to equity risk.
Foreign Exchange Risk
The Group holds a portion of its cash assets in US dollar denominated bank accounts and bank deposits.
The Group is also significantly exposed to foreign exchange risk through transactions and arrangements in
respect of its US based operations.
Other than the above, the Group does not have any direct contact with foreign exchange fluctuations other
than their effect on the general economy.
The Group seeks to mitigate foreign exchange risk by considering capital requirements and foreign
exchange rates when undertaking treasury transactions, such as utilising US dollar denominated term
deposits.
2255.. FFIINNAANNCCIIAALL IINNSSTTRRUUMMEENNTTSS
CCrreeddiitt RRiisskk
The Directors do not consider that the Group’s financial assets are subject to anything more than a negligible level
of credit risk, and as such no disclosures are made (refer note 24(a)).
IImmppaaiirrmmeenntt LLoosssseess
The Directors do not consider that any of the Group’s financial assets are subject to impairment at the reporting
date. No impairment expense or reversal of impairment charge has occurred during the financial year.
IInntteerreesstt RRaattee RRiisskk
At the reporting date the interest profile of the Group’s interest-bearing financial instruments was:
FFiixxeedd rraattee iinnssttrruummeennttss
Financial liabilities
VVaarriiaabbllee rraattee iinnssttrruummeennttss
Financial assets
CCaarrrryyiinngg
aammoouunntt (($$))
22002233
Carrying
amount ($)
2022
((1122,,885522,,220077))
(10,110,627)
22,,223366,,553366
11,073,913
85
Page 52
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
2255.. FFIINNAANNCCIIAALL IINNSSTTRRUUMMEENNTTSS ((ccoonnttiinnuueedd))
Cash Flow Sensitivity Analysis for Variable Rate Instruments
A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) equity and
profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant.
22002233
VVaarriiaabbllee rraattee iinnssttrruummeennttss
2022
Variable rate instruments
PPrrooffiitt oorr lloossss
11%%
iinnccrreeaassee
11%%
ddeeccrreeaassee
EEqquuiittyy
11%%
iinnccrreeaassee
11%%
ddeeccrreeaassee
2222,,336655
((2222,,336655))
2222,,336655
((2222,,336655))
110,739
(110,739)
110,739
(110,739)
FFoorreeiiggnn EExxcchhaannggee RRiisskk
At the reporting date the Australian dollar equivalent of amounts recognised by the Group in US dollars were as
follows:
FFiinnaanncciiaall aasssseettss
Cash at bank
Deposits at call
FFiinnaanncciiaall lliiaabbiilliittiieess
Trade and other payables
Borrowings (2022 restated – refer note 13)
CCaarrrryyiinngg
aammoouunntt (($$))
22002233
Carrying
amount ($)
2022
11,,336611,,113388
--
4,063,403
-
11,,336611,,113388
4,063,403
((445577,,448888))
((1100,,884444,,779955))
(900,226)
(10,236,039)
((1111,,330022,,228833))
(11,136,265)
Cash Flow Sensitivity Analysis for Foreign Exchange
A change in foreign exchange rates of 5% at the reporting date would have increased/(decreased) equity and profit
or loss by the amounts shown below. This analysis assumes that all other variables remain constant.
22002233
FFiinnaanncciiaall aasssseettss
FFiinnaanncciiaall lliiaabbiilliittiieess
2022
Financial assets
PPrrooffiitt oorr lloossss
EEqquuiittyy
55%%
iinnccrreeaassee
55%%
ddeeccrreeaassee
55%%
iinnccrreeaassee
55%%
ddeeccrreeaassee
2222,,990088
((2222,,990088))
4455,,115599
((4455,,115599))
556655,,111144
((556655,,111144))
556655,,111144
((556655,,111144))
134,244
(134,244)
68,926
(68,926)
Financial liabilities (2022 restated – refer note 13)
556,813
(556,813)
556,813
(556,813)
Page 53
86
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
2255.. FFIINNAANNCCIIAALL IINNSSTTRRUUMMEENNTTSS ((ccoonnttiinnuueedd))
FFaaiirr VVaalluueess
Fair Values Versus Carrying Amounts
The fair values of financial assets and liabilities, together with the carrying amounts shown in the statement of
financial position, are as follows:
CCoonnssoolliiddaatteedd
22002233
CCaarrrryyiinngg
aammoouunntt
$$
FFaaiirr vvaalluuee
$$
Consolidated
2022
Carrying
amount
$
Fair value
$
Cash and cash equivalents
Trade and other payables
Borrowings (2022 restated)
Lease liabilities
22,,223366,,553366
((551144,,880000))
((1122,,886622,,998844))
((339911,,338811))
22,,223366,,553366
((551144,,880000))
((1122,,886622,,998844))
((339911,,338811))
11,073,913
(1,000,636)
(10,236,039)
(632,052)
11,073,913
(1,000,636)
(10,236,039)
(632,052)
((1111,,553322,,662299))
((1111,,553322,,662299))
(794,814)
(794,814)
The Group’s policy for recognition of fair values is disclosed at note 1(w).
LLiiqquuiiddiittyy RRiisskk
The following are the contractual maturities of financial liabilities, including estimated interest payments and
excluding the impact of netting agreements (refer note 24(b)):
CCoonnssoolliiddaatteedd
22002233
Non-Derivatives
Trade and other
payables
Borrowings
Lease liabilities
Derivatives
Derivative
liability
CCaarrrryyiinngg
aammoouunntt
$$
CCoonnttrraaccttuuaall
ccaasshh fflloowwss
$$
<< 66
mmoonntthhss
$$
66--1122
mmoonntthhss
$$
11--22 yyeeaarrss 22--55 yyeeaarrss
>> 55 yyeeaarrss
$$
$$
$$
551144,,880000
1122,,446655,,667766
339911,,338811
551144,,880000
1133,,666622,,118822
339911,,338811
551144,,880000
--
113399,,223355
--
--
111111,,008866
--
22,,334466,,775533
9922,,550077
--
--
4488,,555533
--
1111,,331155,,442299
--
1133,,337711,,885577
1144,,556688,,336633
665544,,003355
111111,,008866
22,,443399,,226600
4488,,555533
1111,,331155,,442299
339977,,330088
339977,,330088
339977,,330088
339977,,330088
--
--
--
--
4488,,770022
4488,,770022
--
--
334488,,660066
334488,,660066
87
Page 54
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
2255.. FFIINNAANNCCIIAALL IINNSSTTRRUUMMEENNTTSS ((ccoonnttiinnuueedd))
2022
Non-Derivatives
Trade and other
payables
Borrowings-
Restated
Lease liabilities
Derivatives
Derivative
liability-Restated
1,000,637
1,000,637
1,000,637
9,787,004
9,787,294
4,087
-
-
-
-
-
-
-
9,787,294
632,052
632,052
119,928
126,942
244,122
141,060
-
11,419,693
11,419,983
1,124,652
126,942
244,122
141,060
9,787,294
449,035
449,035
449,035
449,035
-
-
-
-
-
-
-
-
449,035
449,035
2266.. CCOONNTTRROOLLLLEEDD EENNTTIITTIIEESS
Eagle Mountain Mining Limited is the ultimate parent entity of the Group.
The following were controlled entities at the end of the financial year and have been included in the consolidated
financial statements:
Name
Country of
Incorporation
Date
acquired/incorporated
PPeerrcceennttaaggee
IInntteerreesstt HHeelldd
22002233
Percentage
Interest Held
2022
Silver Mountain Mining Pty
Ltd
Silver Mountain Mining LLC
Silver Mountain Mining
Operations Inc
Wedgetail Arizona Pty Ltd
Wedgetail Holdings LLC
Wedgetail Operations LLC
Australia
7 December 2017
United States of
America
United States of
America
Australia
United States of
America
United States of
America
7 December 2017
18 January 2018
18 July 2019
25 June 2019
18 July 2019
110000%%
110000%%
110000%%
110000%%
110000%%
11000%%
100%
100%
100%
100%
100%
100%
Silver Mountain Mining LLC and Silver Mountain Mining Operations Inc are both 100% owned subsidiaries of Silver
Mountain Mining Pty Ltd.
Wedgetail Operations LLC and Wedgetail Holdings LLC are both 100% owned subsidiaries of Wedgetail Arizona
Pty Ltd.
Page 55
88
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
2266.. CCOONNTTRROOLLLLEEDD EENNTTIITTIIEESS ((ccoonnttiinnuueedd))
The following amounts are payable by subsidiary companies to the parent company at the reporting date:
NNaammee
Silver Mountain Mining Pty Ltd
Silver Mountain Mining LLC
Silver Mountain Mining Operations Inc
Wedgetail Arizona Pty Ltd
Wedgetail Holdings LLC
AAmmoouunntt dduuee ttoo
EEaaggllee MMoouunnttaaiinn MMiinniinngg LLiimmiitteedd
2022
A$
70,183
528,472
10,253,476
620
49,689,546
22002233
AA$$
7711,,992233
552299,,884433
1100,,668800,,337744
44,,669966
6633,,884466,,558822
The loans to subsidiary companies are non-interest bearing and Eagle Mountain Mining Limited does not intend
to call for repayment within 12 months.
2277.. LLOOSSSS PPEERR SSHHAARREE
Loss used in calculation of loss per share - 2022 restated
Weighted average number of shares used in the
calculation of loss per share
3300 JJuunnee 22002233
$$((1133,,666611,,330022))
30 June 2022
$$((3300,,774488,,004455))
228866,,992200,,224455
223322,,000055,,992255
Basic and diluted loss per share
((44..88 cceennttss))
((1133..33 cceennttss))
Options and performance rights to acquire ordinary shares granted by the Company and not exercised at the
reporting date are included in the determination of diluted loss per share, to the extent that they are considered
dilutive.
There are 15,350,000 options and 300,000 performance rights on issue at 30 June 2023 (2022: 27,611,154 options
and 300,000 performance rights) that have not been considered in calculating diluted loss per share as they are
not considered to be dilutive to the reported earnings per share.
89
Page 56
EAGLE MOUNTAIN MINING | 2023 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2023
2288.. PPAARREENNTT EENNTTIITTYY IINNFFOORRMMAATTIIOONN
AAsssseettss
Current assets
Non-current assets1
TToottaall AAsssseettss
LLiiaabbiilliittiieess
Current liabilities
Non-current liabilities
TToottaall LLiiaabbiilliittiieess
NNeett AAsssseettss
EEqquuiittyy
Issued capital
Option capital
Reserves
Accumulated losses
TToottaall EEqquuiittyy
Loss for the period1
Other comprehensive income
TToottaall ccoommpprreehheennssiivvee lloossss ffoorr tthhee ppeerriioodd
PPaarreenntt
3300 JJuunnee
22002233
AA$$
Parent
30 June
2022
(Restated)
A$
11,,441100,,114466
55,,557733,,339955
9,818,773
2,479,170
66,,998833,,554411
12,297,943
117799,,771100
22,,225599,,778877
260,455
241,598
22,,443399,,449977
502,053
44,,554444,,004444
11,795,890
8844,,448822,,446688
--
55,,552233,,779999
((8855,,446622,,222233))
78,501,878
-
6,734,688
(73,440,676)
44,,554444,,004444
11,795,890
((7755,,776677,,005588))
--
(64,862,070)
-
((7755,,776677,,005588))
(64,862,070)
1 The Company has recognised a provision against the investment in subsidiary holdings to the extent that
parent company net assets exceed those of the Group.
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity is the guarantor in relation to the US$6,423,000 loan from Vincere Resource Holdings LLC
(“Vincere”). In addition, the parent entity has entered into a Guarantee of Performance with Vincere under which
the parent entity guarantees the full and timely performance of the conversion obligations under the note with
Vincere. Refer to note 13.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2023 and 30 June 2022.
Commitments
The parent entity had no exploration or capital commitments as at 30 June 2023 and 30 June 2022.
Accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity as disclosed in
note 1.
Page 57
90
EAGLE MOUNTAIN MINING | 2023 Annual Report
DIRECTORS’ DECLARATION
In the opinion of the Directors of Eagle Mountain Mining Limited (“the Company”):
(a)
the accompanying financial statements and notes are in accordance with the Corporations Act 2001,
including:
(i)
(ii)
complying with Accounting Standards and the Corporations Regulations 2001 and other
mandatory professional reporting requirements which, as stated in accounting policy note 1
to the financial statements, constitutes explicit and unreserved compliance with International
Financial Reporting Standards (IFRS); and
give a true and fair view of the financial position as at 30 June 2023 and of the performance
for the year ended on that date of the Group.
(b)
(c)
the remuneration disclosures that are contained in the Remuneration Report in the Directors’ Report
comply with Australian Accounting Standard AASB 124 Related Party Disclosures, The Corporations Act
2001 and the Corporations Regulations 2001.
there are reasonable grounds to believe that the Group will be able to pay its debts as and when they
become due and payable.
(d)
the financial statements comply with International Financial Reporting Standards as set out in note 1.
The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the
Chief Executive Officer and Chief Financial Officer for the financial year ended 30 June 2023.
This declaration is made in accordance with a resolution of the Directors.
Signed at Perth this 15th day of September 2023.
RRiicckk CCrraabbbb
CChhaaiirrmmaann
91
Page 58
EAGLE MOUNTAIN MINING | 2023 Annual Report
Eagle Mountain Mining Limited
Independent auditor’s report to members
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Eagle Mountain Mining Limited (the Company and its subsidiaries
(the Group)), which comprises the consolidated statement of financial position as at 30 June 2023, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies and other explanatory
information, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group, is in accordance with the Corporations Act
2001, including:
i.
ii.
giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its financial
performance for the year ended on that date; and
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the 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 (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 1 (a)(i) in the financial report, which indicates that the Group has incurred a net
loss of $13,661,302 and a net operating cash outflow of $13,075,232 during the year ended 30 June 2023.
As stated in Note 1 (a)(i), these events or conditions, along with other matters as set forth in Note 1 (a)(i),
indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue
as a going concern. Our opinion is not modified in respect of this matter.
92
EAGLE MOUNTAIN MINING | 2023 Annual Report
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 as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. In addition to the matter described in the Material Uncertainty Related to
Going Concern section, we have determined the matters described below to be the key audit matters to be
communicated in our report.
EXPLORATION COSTS CAPITALISED
Area of focus
Refer also to notes 1(b), 1v(ii) and 8
How our audit addressed it
As at 30 June 2023, the carrying value of the
Group’s exploration and evaluation assets
amounted to $11,281,486. The carrying value of
these costs represents a significant asset of Eagle
Mountain Mining Limited and its controlled entities.
Our audit procedures focussed on evaluating
management’s assessment of whether the
exploration and evaluation assets continue to meet
the recognition criteria of AASB 6 Exploration for
and Evaluation of Mineral Resources, including:
This is considered a key audit matter as significant
judgement is applied in determining whether the
asset continues to meet the recognition criteria in
AASB 6 Exploration for and Evaluation of Mineral
Resources. As noted in Note 1v(ii) of the financial
report, significant judgement is required in
determining whether facts and circumstances
indicate that the exploration and evaluation assets
should be tested for impairment.
— Obtaining evidence that the Group has valid
rights to explore the areas for which the
exploration costs have been capitalised;
— Enquiring of management and reviewing the
cashflow forecast and ASX announcements to
verify that substantive expenditure on further
exploration for and evaluation of mineral
resources in the Group’s areas of interest is
planned and compared these to the minimum
expenditure requirements of the licence
expenditure requirements;
— Enquiring of management, reviewing
announcements made and reviewing minutes
of director meetings to verify that management
had not decided to discontinue activities in any
of the areas of interest that has capitalised
exploration costs;
— Assessing a sample of expenses capitalised in
the year to source documents and
— Assessing the adequacy of the related
disclosures in the financial report.
CONVERTIBLE LOANS
Area of focus
Refer also to notes 1(h), 1(i), 1(v)(ii) and 13
How our audit addressed it
At 30 June 2023, the reported value of the Group’s
convertible loans was $12,862,984. The loans
have conversion features which means that the
loans are hybrid financial instruments with
Our audit procedures included:
— Verifying the terms of the loans to the loan
agreements
2
93
EAGLE MOUNTAIN MINING | 2023 Annual Report
embedded derivatives which must be separated
from the underlying debt component and
accounted for on an individual basis.
A prior period error was identified during the year
in relation to the valuation of the embedded
derivatives. The Group has corrected this material
prior period error retrospectively by restating the
comparative amounts for the prior period and the
opening balances as at 1 July 2021.
Accounting for embedded derivatives is complex
and requires the use of valuation methodologies
that rely upon observable and unobservable inputs
and assumptions. This creates estimation
uncertainty for the amounts recognised in the
financial statements. For these reasons, we
consider the valuation of convertible notes to be a
key audit matter.
— Assessing the requirements of AASB 9
Financial Instruments and AASB 132 Financial
Instruments: Presentation to consider the
appropriateness of the initial and subsequent
accounting treatment of the convertible loans
— Critically assessing the appropriateness of the
pricing models used for the current and
previous reporting periods, the key inputs to
the models and the reasonableness of the
valuations of the embedded derivatives
— Considering the adequacy of the related
disclosures in the consolidated financial
statements, including the adequacy of the
restatement and disclosures in respect of the
prior period error.
Other Information
The directors are responsible for the other information. The other information comprises the information in
the Group’s annual report for the year ended 30 June 2023 but does not include the financial report and the
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and 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.
In preparing the financial report, the directors are responsible for assessing the ability of the Group 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 Group 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
3
94
EAGLE MOUNTAIN MINING | 2023 Annual Report
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.
A further description of our responsibilities for the audit of these financial statements is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our independent auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 43 to 50 of the directors’ report for the year
ended 30 June 2023.
In our opinion, the Remuneration Report of Eagle Mountain Mining Limited, for the year ended 30 June
2023, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
William Buck Audit (WA) Pty Ltd
ABN 67 125 012 124
Amar Nathwani
Director
Dated this 15th day of September 2023
95
4
EAGLE MOUNTAIN MINING | 2023 Annual Report ASX:EM2 | eaglemountain.com.au