Elementos Limited Annual Report for the year ended 30 June 2024 1
Elementos Limited Annual Report for the year ended 30 June 2024 2
Contents
04
Corporate Directory
05
Chairman’s Letter
07
Review of
Operations
08
Project Overview
26
Corporate
29
Environmental,
Social and
Governance
31
Tenement Interests
32
Resources and
Reserves
35
Cautionary
Statements
39
Directors’ Report
44
Remuneration
Report
56
Auditor’s
Independence
Declaration
57
Shareholder
Information
60
Corporate
Governance
Statement
67
Consolidated Statement
of Profit or Loss and
Other Comprehensive
Income
68
Consolidated
Statement of
Financial Position
69
Consolidated
Statement of
Changes in Equity
70
Consolidated
Statement of Cash
Flows
71
Notes to the
Consolidated
Financial
Statements
91
Consolidated Entity
Disclosure
Statement
93
Independent
Auditor’s Report
92
Directors’
Declaration
Elementos Limited Annual Report for the year ended 30 June 2024 3
Elementos Limited’s focus is to develop its
portfolio of tin assets including Oropesa in
Andalucía, Spain and Cleveland in
Tasmania, Australia for the benefit of our
shareholders.
Elementos is committed to the safe and environmentally conscious exploration, development, construction
and production of its global tin projects. The company owns two mature tin projects with large resource
bases and significant exploration potential in mining-friendly jurisdictions. Led by an experienced-heavy
management team and Board, Elementos is positioned as one of the few tin companies, with genuine
development projects in highly regulated mining jurisdictions of Australia and Spain.
The company is well-positioned to help bridge the forecast significant tin supply shortfall in coming years.
This shortfall is being driven by significant supply challenges in major tin mining and refining countries, in
addition to a steady increase in global demand, forecast to accelerate due to electrification, green energy,
automation, AI and the conversion to lead-free solders as electrical contacts.
The proposed acquisition of the Robledallano Tin Smelter provides a clear development pathway for our
Spanish project to becoming the first vertically integrated mine-to metal tin producer within the European
Union, this hits key strategic goals of the EU Critical Raw Materials Act, which aims to foster ‘domestic’
mining and downstream processing of minerals from within the EU.
Elementos Limited Annual Report for the year ended 30 June 2024 4
Corporate Directory
Directors and Company Secretary
Mr Andy Greig (Non-executive Chairman)
Mr Joe David (Managing Director)
Mr Calvin Treacy (Non-executive Director, Chairman of
the ESG Committee)
Mr Corey Nolan (Non-executive Director, Chairman of
the Audit and Risk Committee)
Mr Duncan Cornish (Company Secretary)
Head Office and Registered Office
Elementos Limited
Level 7, 167 Eagle Street
Brisbane QLD 4000
Tel: +61 7 2111 1110
www.elementos.com.au
Auditor
BDO Audit Pty Ltd
Level 10, 12 Creek Street
Brisbane QLD 4000
Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au
Share Registry
Boardroom Pty Limited
Level 8, 210 George Street
Sydney NSW 2000
Tel: 1300 737 760
Fax: 1300 653 459
www.boardroomlimited.com.au
Stock Exchange Listing
Australian Securities Exchange Ltd
ASX Code: ELT
Australian Business Number
49 138 468 756
Banker
National Australian Bank Limited
Level 19, 259 Queen Street
Brisbane QLD 4000
Elementos Limited Annual Report for the year ended 30 June 2024
4
Elementos Limited Annual Report for the year ended 30 June 2024 5
Chairman’s Letter
Dear fellow shareholders
The last year has been one of key strategic progress for Elementos, in the face of volatile global markets. After a
challenging start to the year in Spain, we have rebuilt momentum throughout the year and have made significant
strides in securing our goal of becoming the first vertically integrated mine-to-metal tin producer within the
European Union.
Whilst our focus remains firmly on our flagship Oropesa Tin Project in Andalucia, Spain, the Cleveland Tin Project in
Tasmania is again displaying further mineralisation which make it a very exciting expansion project for the
company. Both projects are strategically positioned in mature economies, poised to deliver base and critical
minerals into key markets facing growing demand and supply challenges. We are determined to develop these
projects with a strong commitment to Environmental, Social, and Governance (ESG) principles.
In May 2024, the company announced it planned to complete its Definitive Feasibility Study (DFS) for Oropesa by the
end of the year after securing Andalucian Government (Administration) support for a modified project layout which
resolved their previously documented concerns and further improved community and environmental outcomes. This
followed an intensive 11-month process which followed the June 2023 notification from the Administration. The
resulting modifications include relocating waste dumps, redesigning the tailings dam, and adjusting the access road
to minimise impact to the local environment.
With respect to the DFS, significant progress has already been made across various work streams, including
redesigning the waste dumps and tailings dam, and the mine schedule to maintain efficient operations. Due to the
high level of data and engineering already at hand, we are focussed on completing the DFS modifications with
minimal on-ground work and have also initiated market repricing of major packages.
The company is now finalising and preparing to resubmit the key regulatory documents, including the Exploitation
Project, Restoration Plan, and Environmental Impact Study. The Administration has reaffirmed its support for
Oropesa, maintaining it as a project of economic significance within their Project Accelerator Unit. We are thankful
for this continued support of the Administration as we continue to interact with them whilst securing the necessary
approvals to commence mining operations.
The term-sheet agreement to acquire up to 50% of the Robledallano Tin Smelter, located 220km from the Oropesa
Tin Project, further strengthens our position within the European Union, offering significant cost savings and
environmental benefits by processing tin concentrate into ingots within Spain. The acquisition aligns with the EU’s
strategic goals under the Critical Raw Materials Act, reinforcing our commitment to becoming a vertically
integrated mine-to-metal producer within the EU.
The announcement of a maiden zinc by-product Mineral Resource Estimate (MRE) marked a welcome expansion to
the project’s mineral portfolio. The estimate, totalling 24.75mt @ 0.42% Zn, is a testament to the robust work
performed by the team to review thousands of assays and effectively produce a concentrate via labwork. With no
impact on the projects tin production, the opportunity to produce a saleable zinc concentrate from material which
would otherwise be sent to the tailings dam will deliver significant environmental, mining and economic benefits to
the project.
Elementos Limited Annual Report for the year ended 30 June 2024 6
In Tasmania, the company continues to advance the Cleveland Project. The highlight was the drilling of a 1,100m
hole aimed at identifying additional tungsten, tin, copper, and fluorite mineralisation. The program has already
yielded high-grade un-targeted intersections of tin, copper, gold and silver, highlighting the potential for significant
additional mineralisation expansion. The company is eagerly awaiting the assay results from the main targeted
tungsten zone which is the major focus to unlocking further potential of this historically significant project.
The tin price has remained strong throughout the year despite significant macro-economic upheaval in the global
monetary and junior mining equity markets. The supply side of the market remains incredibly tight with production
issues in Myanmar, Indonesia and at times the Democratic Republic of Congo. The tin price has been the best
performing base metal in 1H-2024, hitting two-year highs in April. Tin remains relatively low-profile as one of the
‘forgotten critical metals’ with supply models struggling to meet demand and forecasting significant deficits over the
next decade and beyond. Tin has many growth opportunities driven by electrical solder usage, associated with
solar PV, 5G rollout and increased automation and AI being the major demand generators, along with general
electronics consumption.
I would like to extend my gratitude to our dedicated management team, our staff, and our shareholders for your
continued support of the company despite the challenges we have faced. We finish the year in a much better
position than we started and are well-positioned to capitalise on the growing demand for critical minerals and to
make a significant impact in the global tin market.
I am excited about the future of Elementos and the opportunities that lie ahead. I firmly believe our plans for 2025
will continue to deliver results that justify your faith in the company.
Yours sincerely,
Andy Greig
Chairman
Elementos Limited Annual Report for the year ended 30 June 2024 7
Review of Operations
Elementos Limited Annual Report for the year ended 30 June 2024
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Elementos Limited Annual Report for the year ended 30 June 2024 8
Projects Overview
Elementos Limited’s strategy is to deliver sustainable shareholder value through the exploration and development
of its portfolio of tin assets including the Oropesa Tin Project in Andalucia, Spain and the Cleveland Tin Project in
Tasmania, Australia.
The company is focussed on maturing the Oropesa Tin Project through permitting and the completion of a Definitive
Feasibility Study (DFS) whilst also expanding the mineral potential of the Cleveland Tin Project, before formalising its
focussed development pathway.
Oropesa is on track to become Europe’s first major tin mine with access to major European tin markets. It will
produce an average of 5,400tpa of tin concentrate (3,350tpa contained tin). Which is ~1% of the global tin market
supply but critically 100% of Europe’s ‘domestic’ mined supply.
In May 2024, the company announced that the Oropesa DFS will now be completed after an agreement was reached
with the Andalucian Government on project layout modifications. The project is forecast to have primary approvals
in-hand and a Final Investment Decision by the end of 2025.
The announcement of the agreement to acquire up to a 50% interest in the Robledallano Tin Smelter in June 2024
provides a clear pathway for Elementos to become the EU’s only (and one of a global handful) vertically integrated
mine-to-metal tin producer.
The company also released a maiden zinc by-product Mineral Resource Estimate (MRE) for Oropesa of 24.75mt @
0.42% Zn following an extensive review of historic assay results and metallurgical test work program.
In addition, tin and tungsten drilling was completed at the Cleveland Tin Project in Tasmania just after the reporting
period, including hitting some untargeted, high grade copper, gold 111m from surface . The 1,100m drill program was
designed to test for tin, copper, tungsten and fluorite mineralisation to further define the project. The company was
awarded $70,000 from the Tasmanian Government’s Exploration Drilling Grant Initiative program (EDGI) for the drill
program.
Elementos Limited Annual Report for the year ended 30 June 2024 9
Oropesa Tin Project
Andalucia, Spain
The Oropesa Tin Project is located in the Guadiato Valley, in the Province of Cordoba, within the Andalucía
Autonomous Region, Spain, and as a result, is strategically located within the European Union. Oropesa has one of
the world’s largest undeveloped, open-cut tin deposits, and is the only tin project being actively developed within
the Europeans Union, with access to Spain’s world-class infrastructure. The project is at an advanced stage of
development, significantly progressed through its DFS and working with the authorities to attain its major project
approvals.
The project is a “State Significant Project” in Andalucia (being a member of the Government’s “Project Accelerator
Unit”) and of strategic significance to the European Union which is committed to sourcing a responsible and local
‘domestic’ supply of critical minerals like tin.
The Oropesa tenement consists of an exploration concession package (Investigation Permit No. 13.050) covering an
area of 13km2, located approximately 75km north-west of city of Cordoba and 180km north-east of the capital of
Seville in southern Spain. The Oropesa district has historically been a mining district for base metals (copper, lead,
silver, and iron) and coal, with coal mining ceasing in recent times on European Union intervention, leaving the
region eager for further industrial and mining investments.
Figure 1. Location of both the Oropesa Tin Project & recently optioned Robledallano Tin Smelter in Spain.
Elementos Limited Annual Report for the year ended 30 June 2024 10
Figure 2. Location of both the Oropesa Tenement & recently awarded tenure
Tin mineralisation was first identified at Oropesa in 1982. Intensive exploration activity since 2010, including 372
historic drill holes (72,654m), has resulted in the definition of the current Mineral Resources. The project area
contains numerous geophysical and geochemically anomalous regions that could potentially extend this resource
with additional exploration.
Following the reporting period, the Company has been notified by the Junta de Andalucia (Andalucian Government)
that it has been the awarded three additional tenements in Cordoba Province, Andalucia. The tenure covers
historically relinquished mining rights, which have been explored by the company and assessed as holding high
geological prospectivity as well as being of strategic importance to support access and infrastructure around the
Oropesa Project.
Tin mineralisation at Oropesa (>99% cassiterite with minimal stannite) occurs as a replacement style orebody
associated with sulphides, predominantly pyrite and pyrrhotite within a sedimentary sequence at the contact
between sandstone and conglomerate units. Widespread folding and faulting of the sedimentary sequence has
resulted in the mineralised sequence being overturned and repeated in places.
The compilation of 11,446 zinc assay results from multiple data sources led to a maiden zinc by-product Mineral
Resource Estimate (MRE) being declared over the project during the year and the potential to develop a zinc by-
product in the future.
Elementos Limited Annual Report for the year ended 30 June 2024 11
Oropesa contains a JORC compliant Measured, Indicated and Inferred Resource of 75,834 tonnes of tin1, 95% of
which is classified as Measured or Indicated, and 99,571 tonnes of zinc2, 86% of which is classified as Measured or
Indicated. The tin resource forms the basis of the DFS with potential for the zinc by-product to be included in the
future.
Agreement for Regulatory Approvals
On 15 May 2024, the company announced it had reached an agreement with the Andalucían authorities on
Oropesa’s layout modifications to further reduce disturbance and improve environmental and community outcomes.
Elementos has re-commenced the DFS to align with the agreed disturbance footprints, in addition to preparing the
documents to re-apply for key permitting licences at the project. Following the agreement, the Administration
reaffirmed its support for Oropesa with the project remaining as one of seven key mining projects in the
Government’s Project Accelerator Unit3.
Key Project Modifications
The key agreed modifications to the project’s layout to minimise impacts are summarised below:
1.
External Waste Dumps: The main external waste dumps have been re-located from the northern edge of the
open-pit to a series of smaller dumps around the southern and western edges of the open-pit. These areas
have a significantly lower density of flora and will minimise the impact on trees and associated wildlife. See
Figure-3
2.
Tailings Dam: The tailings dam has moved from the eastern edge of the pit into the north-western corner of the
tenure, bordered by natural topography and again has a reduced impact on trees. This new dam location
requires significantly less borrow material in the engineered walls. See Figure-3
3.
Access Road: a 375 m long section of the 5km access road has been re-designed and relocated approximately
~20m north to avoid overlap with a stock cattle route.
With the external waste dumps being modified to the southern edges of the open pit, the movement of trucks
dictates further modifications to key project infrastructure to maintain efficient operations, the following changes
have been proposed:
4.
Process & Non-Process Infrastructure Locations: The crushing, sorting, mineral process plant (and supporting
facilities) have been moved to a cleared cropping area on the southern side of the pit. See Figure-4
5.
Pit-Shell Modification: The master haulage ramp for ore and waste will be re-designed from the northern edge
of the pit to the southern edge.
6.
Open-Pit Rehabilitation: The open-pit will now only be partially back-filled to ensure stabilisation of the final
benches, the free movement of animals and birds around the pit with a focus on the convenient access to a
proposed water reservoir at the bottom of the open pit. This provides an economic benefit to the project by
reducing end-of-mine-life rehabilitation costs.
1 Refer ASX announcement 29 November 2023, Maiden Zinc Mineral Resource at Oropesa Tin Project
2 Refer ASX announcement 14 February 2023, Oropesa Tin Project 2023 Mineral Resource Update
3 Refer ASX Release 10 March 2022, Government support for Oropesa Tin Project
Elementos Limited Annual Report for the year ended 30 June 2024 12
Primary Licence Submissions
Further to reaching an agreement with the Administration on project modifications, the company is now preparing
the resubmission of three key regulatory reports, currently estimated to be resubmitted October 2024:
1.
Exploitation (Mining) Project
2.
Restoration Plan
3.
Environmental Impact Study
These reports will contain the agreed modifications to the project, as well as the unchanged elements. The
documents will then be further assessed by the authorities, including public exhibition, leading to the project
achieving the two key primary approvals, which are:
1.
Exploitation License (Mining License)
2.
Environmental Authorisation (Autorización Ambiental Unificada - AAU)
Figure 3. External Waste Dump & Tailings Dam Modifications
Elementos Limited Annual Report for the year ended 30 June 2024 13
Figure 4. Process Plant, Non-Process Infrastructure, Workshops and Offices re-location
Update on Definitive Feasibility Study
Work on the DFS was slowed through the reporting period whilst the company continued to seek clarity and
establish the way forward with the Andalucian authorities regarding changes to the project scope and layouts.
During this time further work was maintained on the following components:
•
Mineral Process Plant Package.
•
Power Transmission & Distribution Package.
•
Concentrate Offtake.
•
Insurance Packages.
Following the agreement with the Andalucian authorities in May 2024, the company officially recommenced the DFS
activities. Only a small amount of additional on-ground works (surveys, ground investigations) is required to
complete the DFS modifications. Engineering work is focussed on the new tailings dam, waste dump, mine plan and
infrastructure locations due to the large volume of works already performed across the project. The vast majority of
works will be based on the available project data and further engineering and market engagement activities –
significantly reducing the costs associated with the completion of the DFS.
Elementos Limited Annual Report for the year ended 30 June 2024 14
The key areas/work-streams of the DFS and the updated status are listed below:
1.
Access Road segment re-design.
- Already completed
2.
Tailings Dam Design.
- Significantly completed
3.
Waste Dump Designs.
- Designs completed
4.
Confirmation of ROM pad location.
- Design completed
5.
Revision of waste pre-strip designs for construction materials.
- Design completed
6.
Review and confirmation of mine stage designs.
- Completed
7.
Pit Shell, Mine Ore & Waste Schedules.
- Significantly Completed
8.
Re-orientation of Processing & NPI infrastructure:
a.
Crushing, Screening & Sorting Infrastructure.
- Significantly Completed.
b.
Mineral Process Plant Design.
- Remains un-affected
c.
Mineral Process Plant Layout
- Significantly re-located
d.
Power Transmission & Distribution.
- Concept extensions
e.
Buildings, offices & Non-Process Infrastructure (NPI).
- Significantly re-located
f.
ROM Pad & Mine Contractors Area.
- Significantly Completed
9.
Market repricing of key packages.
- Preparation activities commenced
Acquisition of Robledallano Tin Smelter
On 13 June 2024, Elementos announced that it had signed a non-binding term-sheet, through a wholly owned
Spanish subsidiary, to secure an option to acquire up to a 50% interest in Iberian Smelting SL. Iberian Smelting
owns the tin smelting and refining facility near the town of Robledallano, in the Extremadura Region of Spain, which
is located only 220km from the Oropesa Tin Project via Spain’s high-quality roads and highway network (see Figure-
5).
Figure 5. Partial External View of Robledallano Smelter owners by Iberian Smelting SL
Elementos Limited Annual Report for the year ended 30 June 2024 15
The proximity of the smelter is expected to lead to significant cost reductions and environmental benefits, over
transporting and selling tin concentrate to other Asian based global smelters. In addition, selling tin ingots from
within the EU allows the company to further benefit from a ‘European Tin Premium’ that currently trades at a
premium between US$600-1,000/t above the LME published contract price.
The acquisition provides a clear development pathway to becoming the first vertically integrated mine-to metal tin
producer within the European Union, this hits key strategic goals of the EU Critical Raw Materials Act, which aims to
foster ‘domestic mining and downstream processing’ of minerals from within the EU, as well as the strategic
interests of the Spanish Government.
Iberian Smelting, Robledallano Smelter and Refining Facility Summary
The smelter owners have provided the following information:
•
Current Ownership: The current smelter is owned by Iberian Smelting SL. 90% owned by CRM Synergies (CRM)
and 10% owned by a private individual.
•
History: The tin smelter was previously operated as a lead shot smelter and a lead-acid battery recycling plant.
It was acquired by CRM in June 2021 and had a new rotary furnace installed and commissioned in May 2022 to
process tin.
•
Licences: The facility holds all required Environmental (Integrated Environmental Authorisation), Waste &
Emissions (State Register of Emissions and Pollutants Sources) and Operational permits and is currently
licenced to smelt tin, lead and other base metal concentrates and residue products. The current environmental
licenses approve a facility of up to 20,000t/year.
•
Audits & Compliance: The smelter is ISO-14001 certified and is in the process of being audited and registered
as a Responsible Minerals Assurance Process (RMAP) facility, aligned with CRM’s other company smelters.
•
Smelter Capacity: The facility can operate 24 hours a day, 7 days per week, 365 days per year, and is currently
estimated to be able to process ~10-12,000t/year of tin concentrate feed.
•
Operational Status: The facility is currently operating and processing materials at a rate of 600t/month
(~7,200t/year on an annualised basis).
•
Expansion Potential: The facility has physical room to expand, with the pre-commitment (as part of the
transaction) to install a vacuum furnace to further refine the tin after the rotary furnace produces a high grade.
Background on CRM Synergies S,L:
CRM Synergies is the current 90% owner of the facility and is proposed to remain the sole other 50% shareholder,
with Elementos’ subsidiary (once Elementos exercises the acquisition options).
•
History: Founded in 1996, CRM Synergies is one of the leading global manufacturers of high-quality tin and
soldering products as well as being considered one of the most important tin producers in Europe.
•
Customers: Customers include the largest international conglomerates from major industrial sectors, such as:
automotive, aeronautics, and electronics. CRM Synergies services Europe and subsidiary companies in Brazil
and Mexico offer full coverage to North American clients.
•
Recycling: The main activity is currently environmental management and recycling of tin waste materials, via
the re-smelting and refining into tin metal and subsequent downstream products.
•
Certifications: CRM Synergies is certified as an Integrated Environmental Authorized company (IEA company),
one of very few manufacturers of tin and tin alloys which have this prestigious certification.
Elementos Limited Annual Report for the year ended 30 June 2024 16
Figure 6. Iberian Smelting’s Rotary furnace, feeding hopper and exhaust hood
Elementos Limited Annual Report for the year ended 30 June 2024 17
Maiden Zinc Mineral Resource Estimate and Metallurgical Test Work
During the reporting period, the company confirmed zinc mineralisation from historic assays within Oropesa’s
Mineral Resource area4. Elementos compiled 11,446 zinc assay results from multiple data sources. The compilation
of these data sources included the reassessment of historic zinc data held by the company, the acquisition and
assessment of additional assay data purchased from a third party laboratory (previously not held by the company)
and the re-assaying of 3,183 historical drill sample pulps from core not previously sampled for zinc within Oropesa’s
Mineral Resource Area.
Following this extensive work, in November 2023, the company announced a maiden zinc MRE for the project of
24.75mt @ 0.42% Zn (96% classified as Measured and Indicated resources)5.
The development of a by-product flow sheet to recover and produce a saleable zinc concentrate from material
which would otherwise be sent to the tailings dam will deliver significant environmental, mining and economic
benefits to complement the company’s primary activities of production of tin concentrate.
The zinc flow sheet has been based on metallurgical test work conducted at the Wardell Armstrong International
Ltd laboratories (UK), managed by Competent Person David Castro Lopez from consulting process engineering firm
Minepro Solutions in Spain. The process has been developed following the completion of laboratory scale flotation
tests, including open circuit and locked cycle tests, specifically targeting the recovery of zinc. The zinc occurs as
the mineral sphalerite, (Zn,Fe)S and is mostly located in the same mining blocks as the tin mineralisation.
The incremental capital and operating costs associated with producing zinc are likely to be relatively minor as most
of the zinc mineralisation can be mined and processed along with the tin production with a relatively small
additional circuit to recover the zinc that would have otherwise been expelled as metal waste into the tailings dam.
The company will continue to evaluate the economics of the zinc by-product stream and consider it for inclusion in
the Basis of Design of the Definitive Feasibility Study for the Oropesa Project.
Zinc production will not affect the main tin concentrate production at Oropesa. The Tin MRE remains unchanged at
19.6mt @ 0.39% Sn6. The project’s zinc MRE has been completed by Elementos’ geologists for the zinc
mineralisation only.
The Mineral Resource Estimate for zinc is summarised in Table 1, and Figure 7.
Table 1. 2023 Oropesa Mineral Resource Estimate for Zinc at a 0.05% Zn cut-off
4 Refer ASX Release dated 3 August 2023; Elementos confirms zinc mineralisation and by-product potential at Oropesa Tin Project
5 Refer ASX announcement 29 November 2023, Maiden Zinc Mineral Resource at Oropesa Tin Project
6 Refer ASX announcement 14 February 2023, Oropesa Tin Project 2023 Mineral Resource Update
Elementos Limited Annual Report for the year ended 30 June 2024 18
Figure 7. Oropesa block model resource for zinc
Additional Spanish Exploration Activities
During the reporting period, the company completed additional exploration and reconnaissance activities, outside
the main footprint of the Oropesa tin deposit.
On tenure - La Grana Targets
A comprehensive systematic grid-based soil sampling program was commenced over the La Grana prospect by our
local project team. La Grana is located to the immediate north of the Oropesa Tin Resource (on tenement) and
comprises a regionally significant topographical high approximately 2.5km in length.
The geology within La Grana is predominantly quartzite with lesser shales. Observations of intermittent outcrop and
float material show the quartzite to be highly fractured, with some of the fractures containing visible cassiterite.
Historical work at La Grana, which has always been a target of interest, has previously included a localised soil
sampling program and a randomly executed 17-hole diamond drilling program (by previous project owners) which
intersected minor tin mineralised zones.
The current soil sampling program (the first since Elementos took ownership) is being carried out in a much more
technically diligent manner. The program is being complemented by a detailed structural analysis of the drill core
from the historic drill campaign. This program entails the recording of the orientations of all the fractures in the drill
core and analysis of the fractures for tin using a NITON hand-held XRF. This data will be combined with the soil
sampling data and results of an ASTER remote sensing survey (completed in 2022) to determine the best location
and orientation for a future exploration drilling program.
Elementos Limited Annual Report for the year ended 30 June 2024 19
Figure 8. Coarse cassiterite within a fracture in quartzite from La Grana
Elementos Limited Annual Report for the year ended 30 June 2024 20
Cleveland Tin Project
Tasmania, Australia
The Cleveland Tin Project is located 80km southwest of Burnie in the mineral-rich northwest region of Tasmania,
Australia. The Cleveland mine is a historic (previously operating) underground tin mine still boasting a large
Mineral Resource base and excellent access to electrical, water and transport infrastructure.
Cleveland still hosts tin and copper Mineral Resources in tailings, open-cut and underground Mineral Resources,
and includes a separate tungsten Mineral Resource and Exploration Target (Foleys Zone). The Company continues
to assess the potential of further developing these tin, copper and tungsten Resources and a new suite of
intersected critical minerals like fluorspar/fluorite and molybdenum.
In 2018, the company completed an update to the JORC Resource Estimate for hard rock resources for Cleveland.
The total contained tin within the revised 2018 JORC Resource Estimate increased by 15.8% and contained copper
increased by 20.0%. There was no change to the existing 2015 estimate for the tailings resource at Cleveland. The
results for the 2018 hard rock resource estimate are reported in accordance with the JORC Code (2012).
In May 2024, the company commenced drilling a planned 1,100m hole at the Cleveland Project.
Figure 9. Location of the Cleveland Tin Project, Tasmania
Elementos Limited Annual Report for the year ended 30 June 2024 21
Cleveland Drilling Program
During May 2024 drilling commenced at the Cleveland Tin Project. The 1,100m drill hole was drilled to test for tin,
copper, tungsten and fluorite mineralisation. It was also drilled in a southeasterly direction, which is the opposite
direction to the majority of the over 2,000 historical surface and underground drill holes at Cleveland. The main
purpose of the hole was to test the continuity and boundaries of the Tungsten Exploration Target* as well as
possible extensions to the company’s Tin & Copper Mineral Resources7, which also contains fluorite
mineralisation8.
*The potential quantity and grade of the Exploration Target is conceptual in nature and therefore is an
approximation. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further
exploration will result in the estimation of a Mineral Resource
The program has been successful intersecting both targeted and un-targeted intersections, which have been
reported to the market, summarised in the following updates:
High grade Copper & Gold Intersections (ASX Announcement: 18 Jun 2024)
Drill hole C2123 intersected a narrow zone of high-grade stratiform copper sulphide and gold mineralisation at a
downhole depth of 111.0m (Refer Table 2, Figure 10).
C2123: 0.45m @ 9.7% Cu, 5.15g/t Au, 18g/t Ag & 1.35% Zn from 111.0m
The intersected mineralisation consists of semi-massive, laminated pyrite, pyrrhotite and chalcopyrite over 0.45m
within a distinct zone of fine-grained sediments between two mafic volcanic units. The mineralisation reported from
C2123 differs from the main Cleveland tin/copper mineralisation in two ways: 1) the Cleveland tin/copper
mineralisation has formed by the replacement of carbonate rich sediments whereas the mineralisation in C2123 is
interpreted to be primary and stratiform in nature (formed at the same time as the formation of the host sedimentary
sequence) and 2) is dominated by copper and gold with no detectable levels of tin.
Table 2. Analytical results from drill hole C2123
Subsequent to the end of the reporting period, the Company announced a number of other Mineralised intersections
at the Cleveland Tin Project.
7 Cleveland Tin, Copper and Tungsten JORC Resources ,18 April 2013
8 Fluorite Confirmed at Cleveland Project, 03 March 2023
ALS Analytical Method ME-XRF15d ME-XRF15d ME-XRF15d ME-XRF15d ME-XRF15d Au-AA25 Ag-AA46
Drill Hole ID From (m)
To (m)
Sample Number
% Cu
% Pb
% Zn
% W
% Sn
g/t Au
g/t Ag
C2123
111.00
111.45
90002
9.70
0.06
1.35
<0.008
<0.01
5.15
18
Elementos Limited Annual Report for the year ended 30 June 2024 22
Figure 10. Drill hole C2123, with the orange box indicating the semi-massive copper sulphide mineralisation from
111.0m – 111.45m
Additional High Grade Tin & Copper hit at Cleveland Project (ASX Announcement: 10 July 2024)
An additional intersection of un-targeted high-grade tin and copper mineralisation in diamond drill hole C2124 during
its drilling program at Cleveland.
C2124: 1.4m @ 1.0% Sn and 3.76% Cu from 353.7m
including: 0.6m @ 1.9% Sn and 7.69% Cu from 353.7m.
A second zone of similar, yet lower grade mineralisation occurred at a down hole depth of 359.75m.
C2124: 0.73m @ 0.11% Sn & 0.25% Cu from 359.75m
Elementos Limited Annual Report for the year ended 30 June 2024 23
Figure 11. Cross-section depicting location of the tin-copper mineralisation in C2124 and copper-gold mineralisation
in C2123 about the known mineral resources and underground infrastructure at Cleveland (looking from the
southwest)
The intercept is located 150m, laterally, to the northwest of Level 21 of the existing underground infrastructure
within the Cleveland Tin Mine
The intersected mineralisation consists of disseminated to semi-massive pyrrhotite, chalcopyrite and pyrite within
two closely spaced zones of silicified fine-grained sediments. The mineralisation has a similar appearance to the
replacement style mineralisation that occurs within the main Cleveland tin-copper resource. A downhole
electromagnetic survey is planned to follow the drill campaign to determine the orientation of potential extensions
to the semi-massive sulphide mineralisation intersected by C2124.
The geophysical survey results, in addition to logging and assays, will be the key data required to determine the
follow up programs targeting tin, copper, gold and silver at Cleveland.
Table 3. Analytical results from drill hole C2124
ME-XRF15d ME-XRF15d ME-XRF15d ME-XRF15d ME-XRF15d ME-XRF15d
Au-AA25
Ag-AA46
Sn
Cu
Pb
Zn
Ni
W
Au
Ag
Hole No.
From (m)
To (m)
Interval(m)
Sample No.
%
%
%
%
%
%
ppm
ppm
C2124
347.13
347.59
0.46
90004
0.02
0.02
0.01
0.31
0.12
<0.008
0.01
<1
C2124
347.90
348.40
0.50
90005
0.01
0.03
0.01
0.03
0.07
<0.008
0.01
1.00
C2124
350.00
350.20
0.20
90006
0.08
0.53
0.01
0.07
0.14
<0.008
0.01
3.00
C2124
353.17
353.50
0.33
90007
0.07
0.10
0.01
0.03
0.21
<0.008
0.01
1.00
C2124
353.50
353.70
0.20
90008
0.06
0.01
0.01
0.02
0.18
<0.008
0.01
<1
C2124
353.70
354.30
0.60
90009
1.90
7.69
0.01
0.46
0.25
0.07
0.11
37.00
C2124
354.30
355.10
0.80
90010
0.33
0.81
0.01
0.06
0.01
0.01
0.03
3.00
C2124
355.10
356.10
1.00
90011
0.09
0.04
<0.01
0.03
<0.01
<0.008
0.01
<1
C2124
359.75
360.48
0.73
90012
0.11
0.25
0.01
0.05
<0.01
<0.008
0.01
1.00
C2124
363.90
364.10
0.20
90013
0.02
0.05
0.01
0.02
0.05
0.08
0.02
<1
C2124
382.00
382.30
0.30
90014
0.16
0.22
0.01
0.03
0.04
0.02
0.03
1.00
ALS Analytical Method
Elementos Limited Annual Report for the year ended 30 June 2024 24
Figure 12. Drill hole C2124 depicting the tin-copper mineralisation from 353.7m to 355.1m
Cleveland Project Intersects 420m of Tungsten Mineralisation (ASX Announcement: 29 & 30th Aug 2024)
The company, based on visual observations only (core logging), intersected approximately 420m of tungsten
mineralisation from within the Foleys Zone Exploration Target. Drill hole C2124 encountered difficult drilling
conditions due to faults from 640-652m depth. A downhole wedge was placed at a depth of 614m in C2124 at which
point drill hole C2124A was commenced using a slightly different technique to successfully control the drill hole
through the fault zone to the end of the drill hole which was terminated at 1,122m.
The observed mineralisation shows quartz veining within strongly altered sediments containing visual wolframite
(tungsten) ± scheelite (tungsten) ± molybdenite(molybdenum) ± fluorspar/fluorite ± chalcopyrite (copper)
mineralisation from 672m to 1092m downhole, approximately 580m to 960m vertically below the underground mine
portal/entry of the historic Cleveland Tin Mine.
Elementos Limited Annual Report for the year ended 30 June 2024 25
Figure 13. Section looking from the southeast of the trace of drill hole C2124A through the Foleys Zone Exploration
Target and highlighting the ~420m of visually identified mineralisation, now being assayed.
Figure 14. Close-up image of NQ diameter drill core from C2124A from 887.9-888.0m depicting coarse grained
wolframite within a steeply dipping cross-cutting quartz vein.
Elementos Limited Annual Report for the year ended 30 June 2024 26
Corporate
Funding
The company only conducted one funding event during the financial year, entering a loan facility with Chairman, Mr
Andy Greig. However, subsequent to the year ending the company completed a successful $3.0m Private Placement
(with some pre-commitments to entitlement offer) and have launched a subsequent $3.08m entitlement offer to all
eligible shareholders.
Chairman supports the company with $2.0 million Loan facility
In January, Elementos Limited entered into an unsecured Loan Facility (“Facility”) with the company’s largest
shareholder and Non-Executive Chairman, Mr Andy Greig.
The key terms of the Facility include:
•
Maximum loan value of AUD$2.0M for a maximum term of 24 months
•
Ability to draw down in minimum tranches of $250,000 at the company’s discretion
•
Interest rate of 6% per annum on drawn funds
•
Unsecured and no conversion rights
•
No requirement for the company to repay principal or interest during the loan term
•
Repayable by Elementos at any time during the loan term
The company’s board (with Mr Greig abstaining) determined that the loan is on favourable commercial terms and as
such, resolved to execute the loan agreement.
Private Placement and Entitlement Offer Commitment Raises $3m to advance tin projects
Subsequent to the end of the reporting period, the company announced that it is undertaking a non-renounceable
entitlement offer to eligible shareholders following receipt of firm commitments of $3m via private placement and
pre-commitments in a Rights Issue.
Placement
Elementos and its lead manager to the offer, BW Equities Pty Ltd, has received firm commitments for Elementos to
make a placement to raise A$2.55m with the issue of approximately 26.85 million new fully paid ordinary shares
(Shares) at an issue price of A$0.095 per Share and 13.4 million attaching options to acquire Shares (Options)9, for nil
additional consideration (Placement).
Entitlement Offer
Immediately following the Placement, Elementos made a non-underwritten and non-renounceable entitlement offer
to Elementos’ eligible shareholders of one (1) new Share for every six (6) existing Shares held by each eligible
shareholder as at 9 August 2024 (Record Date). The entitlement offer will otherwise be on the same terms and
conditions as the Placement.
9 The placement includes the issue of one free attaching option for every two new Shares, providing the holder with the right to be issued one Share upon
payment of the exercise price (A$0.18) for the period from the option’s issue date until 31 January 2026 (Options).
Elementos Limited Annual Report for the year ended 30 June 2024 27
The entitlement offer will raise A$3.08 million (before costs) if fully subscribed through the issue of 32.45 million new
Shares, together with one (1) unlisted new Option for every two (2) new Shares acquired for nil additional
consideration, which are exercisable at A$0.18 and expire on 31 January 2026 unless previously exercised
(Entitlement Offer).
Other Updates
Australian Government adds Tin to the Strategic Minerals List
On 16 December 2023 the Australian Government added tin to a new ‘Strategic Minerals List’. Like the ‘Critical
Minerals List’, the new Strategic Materials List contains minerals:
•
that are important for the global transition to net zero and broader strategic applications, specifically the
priority technologies set out in the Critical Minerals Strategy
•
for which Australia has geological potential for resources
•
in demand from our strategic international partners.
The Strategic Materials List will let the government monitor the market developments for these minerals. It also
signals the government’s support for their continued development.
The new Strategic Materials List consists of six minerals: tin, copper, nickel, aluminium, phosphorous, zinc and is in
addition to the 30 minerals listed on the Critical Minerals List.
The Oropesa and Cleveland projects have published Minerals Resource Estimates for three of the Australian
Government’s Strategic Minerals (Tin, Copper, Zinc) and one Critical Mineral (Tungsten).
Figure 15. The Critical and Strategic status of Elementos project minerals on global Government lists.
Elementos Limited Annual Report for the year ended 30 June 2024 28
Tin Pricing
The London Metals Exchange (LME) tin price increased 19.1% during the year from US$27,700/t (3 July 2023) to
US$33,000/t (30 June 2024). The tin price remained relatively steady throughout the year until April 2024 when the
price smashed through two-year highs hitting US$35,685/t. The rapid price growth was driven by production
problems in Myanmar, Indonesia and the ongoing conflict in the eastern Democratic Republic of Congo, which
accounted for 43% of global tin mine production in 2023 according to United States Geological Survey data. Trading
Economics noted that the price spike also followed the surge for other base metals amid mounting concerns about
low supply. The developments were aligned with optimistic data for factory activity in the US and China, adding to
the strong momentum for base metals. The Shanghai Futures Exchange (SHFE) also saw a relatively flat year
boosted in April with prices for the year increasing by 22.4% from US$30,901/t (3 July 2023) to US$37,840/t (30 June
2024).
Figure 16. LME and SHFE Tin Prices during FY 2024 (www.LME.com & https://www.metal.com/tin)
Elementos Limited Annual Report for the year ended 30 June 2024 29
Environmental, Social and Governance
Following Elementos’ initial Environmental, Social and Governance (ESG) Position Statement in 2021, the company
has made further commitments to developing its global tin assets in a responsible way.
Elementos has subsequently progressed in the following manner:
Worked closely with the Andalucia Administration modify key layout and disturbance aspects of the
Environmental Impact Study, Exploitation Licence and Restoration Plan for the Oropesa Project in Spain which is
designed to comply with European regulations and OECD guidance (see section – “Agreement for Regulatory
Approvals”).
Continued to improve long-term relationships with the communities in which we operate and committed to the
economic development of the mine via our application for the Oropesa Exploitation licence.
Established a consulting relationship with the University of Cordoba.
Elementos will continue to monitor the evolving ESG landscape and ensure its ESG commitments remain relevant
and effective in a changing environment.
Revised Tin Code Reporting Plan
In FY2023 the company made the decision to delay its reporting against the tin code for a period of time, to ensure it
has the adequate time and resources to deliver a suitable submission aligned with its projects environmental
commitments. During FY2024 the company was engaged in detailed negotiations with the Andalucian
Administration, for the majority of the period, regarding modifications to the project layout and disturbance areas
and therefore decided whilst the project scope was being ammended it was not the prudent time to progress tin
code reporting. The company maintains it’s target of reporting against the Tin Code, but will maintain optionality as
to when it decides to commence reporting.
Background on the Tin Code
The Tin Code ESG reporting tool has 10 Principles supported by more than 70 Standards. These standards are
specific to various tiers of the supply chain, with many being relevant to mine operators and others to smelters or
secondary recycling companies and vice-versa. Company evidence for each standard is independently evaluated
by an external assessor against a range of indicators to demonstrate progressive improvement with an expectation
to achieve conformance in priority areas and to increasingly make use of assurance for further validation. This
approach has been adopted to provide an opportunity for positive change among all operators.
The Tin Code reflects leading ESG standards & international expectations including;
•
ISO (14001, 9001, 45001, 37001)
•
OECD Guidance for responsible supply chains
•
ILO Convention standards
•
RMI Risk Readiness Assessment
Elementos Limited Annual Report for the year ended 30 June 2024 30
•
Investor expectations & more
The Tin Code is accepted and recognised by leading external organisations:
•
LME passport – listed multi-dimensional ESG reporting tool
•
LME Responsible Sourcing – Standard 7.3 conditionally approved for ‘Track A’
•
IRMA - Initiative for Responsible Mining Assurance (IRMA)
•
Responsible Steel – recognition in progress
•
ICMM Mining Principles – equivalency in progress
Elementos Limited Annual Report for the year ended 30 June 2024 31
Tenement Interests
Elementos Limited held the following interests in tenements as at the date of this report:
Tenement Name
Tenement
Number
Area (km²)
ELT Interest
Tenement Location
Cleveland
EL7/2005
60
100%
Tasmania, Australia
Oropesa#
13.050
13
100%1
Andalucia, Spain
1 Elementos currently holds 100% of the project. Noting that SPIB (a local Spanish drilling company) continues to hold rights to convert to a 4% holding of the
Spanish project subsidiary on its election at Final Investment Decision (FID) for the projects and a 1.35% Net Smelter Royalty.
# This Investigation (Exploration) lease is currently being exclusively renewed, associated with the Primary License re-application resubmital in Spain.
Figure 17. A view across our acreage (looking South) at the Oropesa Tin Project in Andalucia Spain with the local
town of Fuente Obejuna ~5km in the background.
Elementos Limited Annual Report for the year ended 30 June 2024 32
Resources and Reserves
Oropesa Project
Total Tin Metal Resource (at 0.15% Sn cut-off)
30 June 2023 and 30 June 2024 - unchanged
Category
Tonnage (Kt)
Sn Grade %
Contained Sn (t)
Measured
7,418
0.36
26,801
Indicated
11,113
0.41
45,012
Sub: Measured & Indicated
18,532
0.39
71,813
Inferred
1,071
0.38
4,021
Total
19,602
0.39
75,834
Feb-2023 Oropesa Mineral Resource Estimate at a 0.15% Sn cut-off
Table subject to rounding errors; Sn = tin
See ASX Release on 14th February 2023 “Oropesa Tin Project – 2023 Mineral Resource Update”
Total Zinc Metal Resource (at 0.05% Zn cut-off)
30 June 2024
Category
Tonnage (Kt)
Zn Grade %
Contained Zn (t)
Measured
8,664
0.37
31,670
Indicated
14,053
0.39
54,356
Sub: Measured & Indicated
22,717
0.38
86,026
Inferred
1,028
01.32
13,545
Total
23,745
0.42
99,571
Nov-2023 Oropesa Mineral Resource Estimate at a 0.05% Zn cut-off
Table subject to rounding errors; Zn = zinc
See ASX Release on 29th November 2023 “Maiden Zinc Mineral Resource at Oropesa Tin Project”
Elementos Limited Annual Report for the year ended 30 June 2024 33
Cleveland Project
Total Tin-Copper Mineral Resource (at 0.35% Sn cut-off)
30 June 2023 and 30 June 2024 – unchanged
Category
Tonnage (Mt)
Sn Grade %
Contained Sn (t)
Cu Grade %
Contained Cu (t)
Indicated
6.23
0.75
46,700
0.30
18,700
Inferred
1.24
0.76
9,400
0.28
3,500
Total
Table subject to rounding errors; Sn = tin, Cu = copper
Tailings Ore Reserve (at 0% Sn cut-off)
30 June 2023 and 30 June 2024 – unchanged
Category
Tonnage (Mt)
Sn Grade %
Contained Sn (t)
Cu Grade %
Contained Cu (t)
Probable
3.70
0.29
11,000
0.13
5,000
Table subject to rounding errors; Sn = tin, Cu = copper
Tungsten Mineral Resource – Above 850RL (at 0.20% WO3 cut-off)
30 June 2023 and 30 June 2024 – unchanged
Category
Tonnage (Mt)
W03 Grade %
Contained W03 (t)
Inferred
4.00
0.30
12,000
Table subject to rounding errors; WO3 = tungsten oxide
Tungsten Exploration Target – Below 850RL (at 0.20% WO3 cut-off)
30 June 2023 and 30 June 2024 – unchanged
Category
Tonnage (Mt)
W03 Grade %
Contained W03 (t) Range
Inferred
15-24
0.24-0.30
36,000-72,000
Table subject to rounding errors; WO3 = tungsten oxide
The potential quantity and grade of the Exploration Target is conceptual in nature and therefore is an approximation. There has
been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration will result in the
estimation of a Mineral Resource.
The Group regularly reviews its Mineral Resources and Reserves to assess their reasonableness, engaging suitably qualified
competent person/s where required. A summary of the governance and controls applicable to the Group’s Mineral Resources
and Reserves processes is as follows:
• Review and validation of drilling and sampling methodology and data spacing, geological logging, data collection and
storage, sampling and analytical quality control;
• Geological interpretation — review of known and interpreted structure, lithology and weathering controls;
• Estimation methodology — relevant to mineralisation style and proposed mining methodology;
• Comparison of estimation results with previous mineral resource models, and with results using alternate modelling
methodologies;
• Visual validation of block model against raw composite data; and
• Peer review by senior company personnel and independent consultants as required.
Elementos Limited Annual Report for the year ended 30 June 2024 34
Competent Persons Statement
The information in this report that relates to the Annual Mineral Resources and Ore Reserves Statement, Exploration
Results and Exploration Targets is based on information and supporting documentation compiled by Mr Chris
Creagh, who is an employee to Elementos Ltd. Mr Creagh is a Competent Person who is a Member of the
Australasian Institute of Mining and Metallurgy and who consents to the inclusion in the report of the matters based
on his information in the form and context in which it appears.
Chris Creagh has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity being undertaken 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).
The information in this report that relates to Processing and Metallurgy for the Oropesa Tin Project is based on and
fairly represents information and supporting documentation compiled by Chris Creagh, who is an employee to
Elementos Ltd. Mr Creagh is a Competent Person who is a Member of the Australasian Institute of Mining and
Metallurgy and who consents to the inclusion in the report of the matters based on his information in the form and
context in which it appears.
Chris Creagh has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity being undertaken 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).
The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or
adequacy of this release.
Elementos Limited Annual Report for the year ended 30 June 2024 35
Cautionary Statements
Forward-looking statements
This report contains a series of forward-looking statements. The words “expect”, “potential”, “intend”, “estimate”
and similar expressions identify forward-looking statements. Forward-looking statements are subject to known and
unknown risks and uncertainties that may cause the actual results, performance or achievements to differ
materially from those expressed or implied in any of the forward-looking statements in this release that are not a
guarantee of future performance.
Statements in this release regarding the Elementos business or proposed business, which are not historical facts,
are forward-looking statements that involve risks and uncertainties. These include Mineral Resource Estimates,
metal prices, capital and operating costs, changes in project parameters as plans continue to be evaluated, the
continued availability of capital, general economic, market or business conditions, and statements that describe the
future plans, objectives or goals of Elementos, including words to the effect that Elementos or its management
expects a stated condition or result to occur. Forward-looking statements are necessarily based on estimates and
assumptions that, while considered reasonable by Elementos, are inherently subject to significant technical,
business, economic, competitive, political and social uncertainties and contingencies. Since forward-looking
statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.
Actual results in each case could differ materially from those currently anticipated in such statements. Investors are
cautioned not to place undue reliance on forward-looking statements.
Elementos has concluded that it has a reasonable basis for providing these forward-looking statements and the
forecast financial information included in this Presentation. This includes a reasonable basis to expect that it will be
able to fund the development of the Oropesa Tin Project upon successful delivery of key development milestones.
The detailed reasons for these conclusions are outlined throughout this ASX release and in Appendix 1 (JORC Code
2012, Table 1. Consideration of Modifying Factors) contained in the announcement released to the ASX on 29 March
2022. All material assumptions and technical parameters underpinning the production target and forecast financial
information contained in the Study continue to apply and have not materially changed.
While Elementos considers all of the material assumptions to be based on reasonable grounds, there is no certainty
that they will prove to be correct or that the range of outcomes indicated by the Study will be achieved. To achieve
the range of outcomes indicated in the Study, pre-production funding in excess of US$86m will likely be required.
There is no certainty that Elementos will be able to source that amount of funding when required. Discussions with
potential funders have confirmed that a project of this scale will be able to be funded with a combination of Debt
and Equity. The company is confident that the capital costs are sufficiently low that raising the required equity will
be possible. The company continues to have the full support of its existing largest shareholders and is working with
potential offtake partners, brokers, senior debt providers, private equity firms and traditional funders to ensure that
the Company will be in a position to fund the project as needed. It is also possible that such funding may only be
available on terms that may be dilutive to or otherwise affect the value of Elementos’ shares. It is also possible that
Elementos could pursue other value realisation strategies such as a sale, partial sale or joint venture of the Oropesa
Tin Project. This could materially reduce Elementos’ proportionate ownership of, and corresponding funding liability,
for the Oropesa Tin Project.
The inclusion of such statements should not be regarded as a representation, warranty or prediction with respect to
the accuracy of the underlying assumptions or that any forward-looking statements will be or are likely to be
Elementos Limited Annual Report for the year ended 30 June 2024 36
fulfilled. Elementos undertakes no obligation to update any forward-looking statement to reflect events or
circumstances after the date of this document (subject to securities exchange disclosure requirements).
The information in this document does not take into account the objectives, financial situation or particular needs of
any person or organisation. Nothing contained in this document constitutes investment, legal, tax or other advice.
Mineral Resources, Ore Reserves and Production Targets
The information in this report that relates to the Mineral Resources and Ore Reserves were last reported by the
company in compliance with the 2012 Edition of the JORC Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves. The Mineral Resources, Ore Reserves, production targets and financial
information derived from a production target were included in market releases dated as follows:
1.
Cleveland JORC Resource Significantly Expanded, 5 March 2014 (tungsten resource);
2.
Cleveland Tailings Ore Reserve, 3 August 2015;
3.
Substantial increase in Cleveland Open Pit Project Resources following revised JORC study, 26th September
2018;
4.
Oropesa Tin Project - Mineral Resource Estimate, 8th November 2021
5.
Optimisation Study Oropesa Tin Project, 29th March 2022
6.
Oropesa Tin Project – 2023 Mineral Resource Update, 14th February 2023
7.
Maiden Zinc Mineral Resource at Oropesa Tin Project, 29th November 2023
References to Previous Releases
1.
29 November 2023, Maiden Zinc Mineral Resource at Oropesa Tin Project
2.
14 February 2023, Oropesa Tin Project 2023 Mineral Resource Update
3.
10 March 2022, Government support for Oropesa Tin Project
4.
3 August 2023; Elementos confirms zinc mineralisation and by-product potential at Oropesa Tin Project
5.
29 November 2023, Maiden Zinc Mineral Resource at Oropesa Tin Project
6.
14 February 2023, Oropesa Tin Project 2023 Mineral Resource Update
7.
29 October 2013, Cleveland Project Tungsten Potential
8.
26 September 2018, Substantial Increase in Cleveland Open Pit Project Resources following Revised JORC
Study
9.
3 March 2023, Fluorite Confirmed at Cleveland Project
10. 20 June 2023, Update on Regulatory Approvals and DFS
11. 15 May 2024, Approvals & DFS to Resume at Oropesa Tin Project
12. 16 May 2024, Tin and Tungsten drilling commences at Cleveland Tin Project
13. 13 June 2024, Agreement for 50% interest in Operating Spanish Tin Smelter
14. 18 June 2024, High Grade Copper & Gold intersected at Cleveland Project
15. 10 July 2024, Additional High Grade Tin & Copper hit at Cleveland Project
16. 1 August 2024, Placement and Entitlement Offer Commitments Raises $3.0m
Elementos Limited Annual Report for the year ended 30 June 2024 37
The company confirms that it is not aware of any new information or data that materially affects the information
included in the market announcements referred above and further confirms that all material assumptions
underpinning the production targets, forecast financial information derived from a production target and all material
assumptions and technical parameters underpinning the Ore Reserve and Mineral Resource statements contained
in those market releases continue to apply and have not materially changed.
Elementos Limited Annual Report for the year ended 30 June 2024 38
Directors’ Report
Elementos Limited Annual Report for the year ended 30 June 2024
39
Elementos Limited Annual Report for the year ended 30 June 2024 39
Directors’ Report
The directors submit their report on the consolidated entity (“Group”) consisting of Elementos Limited and the entities it controlled
at the end of, and during, the financial year ended 30 June 2024.
Directors
The following persons were directors of Elementos Limited during the financial year and up to the date of this report, unless
otherwise stated:
Mr Andy Greig
Mr Joe David
Mr Corey Nolan
Mr Calvin Treacy
Information on Directors
The board has a strong combination of technical, managerial and capital markets experience. Expertise and experience includes
operating and mineral exploration in Australia. The names and qualifications of the current directors are summarised as follows:
Andy Greig
Non-Executive Chairman
Mr Greig (GDipBus (Monash); Fellow, ATSE) retired from the Bechtel Group, Inc., the globally renowned engineering, construction,
and project management company, in 2015 after a 35-year career. Mr Greig was a director of Bechtel Group, Inc. for 5 years, and
for 13 years through until 2014; the President of its Mining and Metals Global Business Unit.
Mr Greig has deep experience in the engineering and construction of large mining and minerals processing projects around the
world. He is a business graduate of Monash University, and a Fellow of the Australian Academy of Technological Sciences and
Engineering.
Mr Greig has not held any other (ASX listed) directorships in the last three years.
Joe David
Managing Director
Mr David joined Elementos as Chief Executive Officer in April 2021 and was appointed Managing Director in January 2022.
His career has spanned executive roles with private equity, listed and private mining companies, an Associate Director within
M&A advisory as well running his own project development consulting company. He has managed the development of natural
resource projects, bankable feasibility studies, exploration and metallurgical programs, project financing, corporate finance
advisory, corporate strategy, and mergers and acquisitions.
Mr David is a Mining Engineer (AusIMM), Civil Engineer and holds a Commerce Degree in Finance.
Mr David is a member of the ESG Committee.
Mr David has not held any other (ASX listed) directorships in the last three years.
Elementos Limited Annual Report for the year ended 30 June 2024 40
Corey Nolan
Non-executive Director
Mr Nolan is an accomplished public company director whose 30-year career in the resources industry started on the ground in
operations before spanning a broad range of corporate roles from equities analyst and corporate finance director to a number of
senior executive and board positions.
As Managing Director of ASX listed Platina Resources Limited since August 2018, he has been instrumental in restructuring the
company’s project portfolio, which has included the acquisition, funding, exploration and development of new assets.
Prior to Platina, Mr Nolan was Chief Executive Officer at Sayona Mining Limited where he led the acquisition and development of
the Authier Lithium Project in Canada and chartered a substantial growth in the company’s market capitalisation.
Mr Nolan’s qualifications include a Bachelor of Commerce, Masters Degree in Mineral and Energy Economics and graduate
diploma from the Australian Institute of Company Directors.
Mr Nolan is a member of the Audit and Risk Committee.
During the past three years, Mr Nolan has also served as a director of ASX listed company Platina Resources Limited (August
2018 to current).
Calvin Treacy
Non-executive Director
Mr Treacy (BEng, MBA, MAICD) has over 20 years senior management experience in mining, mining technology and
manufacturing. He has a strong track record of founding and growing companies, and brings a wealth of experience in the areas
of strategic planning and capital raising.
Mr Treacy is a qualified Mechanical Engineer and holds a Masters of Business Administration, with extensive experience across
a range of industries and positions.
Mr Treacy has worked in a range of roles including Non-executive Director, Chief Executive Officer, Chief Operating Officer and
Production Manager, providing a blend of experience from hands-on management through to executive oversight and strategic
management.
Mr Treacy is a member of the Audit and Risk Committee and ESG Committee.
Mr Treacy has not held any other (ASX listed) directorships in the last three years.
Company Secretary
Duncan Cornish held the position of Company Secretary during the financial year and up to the date of this report. Mr Cornish is a
Chartered Accountant with significant experience as public company CFO and Secretary, focused on junior resource companies,
as well as financial, administration and governance.
Mr Cornish is an accomplished and highly efficient corporate administrator and manager. Duncan has more than 20 years’
experience in the accountancy profession both in England and Australia, mainly with the accountancy firms Ernst & Young and
PricewaterhouseCoopers.
He has extensive experience in all aspects of company financial reporting, corporate regulatory and governance areas, business
acquisition and disposal due diligence, capital raising and company listings and company secretarial responsibilities, and serves
as corporate secretary and chief financial officer of several Australian and Canadian public companies.
Mr. Cornish holds a Bachelor of Business (Accounting) and is a member of the Chartered Accountants Australia and New Zealand.
Elementos Limited Annual Report for the year ended 30 June 2024 41
Interests in Securities
As at the date of this report, the interests of each director in shares, options and rights issued by the Company are shown in the
table below:
Directors
Shares
Rights
Options
A. Greig(1)
26,442,901
-
360,000
J. David(2)
273,631
800,000
6,000,000
C. Nolan
249,545
-
360,000
C. Treacy
1,548,107
-
1,860,000
(1) Mr Greig has subscribed for, subject to shareholder approval at the Annual General Meeting, 11,382,323 shares and 5,691,162
attaching options in the capital raising announced on 1 August 2024. In addition, Mr Greig has committed to taking up his full
entitlement under the Entitlement Offer which will result in the issue of an additional 4,407,151 shares and 2,203,576 options.
(2) Mr David has subscribed for, subject to shareholder approval at the Annual General Meeting, 210,527 shares and 105,264
attaching options in the capital raising announced on 1 August 2024.
Principal Activities
The principal activity of the Group during the year was exploration and project development activity in relation to the Oropesa Tin
Project. The Group is also exploring the Cleveland tin-copper-tungsten Project, which minimises upfront capital, with cash flow
funding future stages.
Operating Results
The Group’s operating loss for the financial year, after applicable income tax was $1,276,542 (2023: $2,225,307).
Dividends Paid or Recommended
There were no dividends paid or recommended during the financial year.
Review of Operations
Information on the operations of the Group during the financial year and up to the date of this report is set out separately in the
Annual Report under Review of Operations.
Elementos Limited Annual Report for the year ended 30 June 2024 42
Review of Financial Condition
Capital Structure
At 1 July 2023, the Company had 194,740,085 ordinary shares, 3,300,000 performance rights and 1,800,000 unlisted options on issue.
On 28 August 2023, the Company cancelled 360,000 options with an exercise price of $1.10 and expiry of 31 May 2025.
On 11 September 2023, the Company issued 2,100,000 options in three equal tranches with the following exercise prices: tranche
1: $0.25, tranche 2: $0.30 and tranche 3: $0.35, each tranche has an expiry date of 30 June 2026 and vest immediately upon grant.
On 20 November 2023, the Company issued 7,500,000 options, following shareholder approval, in three equal tranches with the
following exercise prices: tranche 1: $0.25, tranche 2: $0.30 and tranche 3: $0.35, each tranche has an expiry date of 30 June 2026
and vest immediately upon grant.
On 31 December 2023, the Company cancelled 600,000 performance rights following expiry that had been issued to executives.
On 30 June 2024, the Company cancelled 1,500,000 performance rights following expiry that had been issued to executives.
At 30 June 2024, the Company had 194,740,085 ordinary shares, 1,200,000 performance rights and 11,040,000 unlisted options on
issue.
On 1 August 2024, the Company announced that it had received commitments to complete a private placement of 26,850,746 shares
to be issued at $0.095 per share with one option for every two shares, exercisable at $0.18 by 31 January 2026. The transaction will
complete in two tranches as follows:
•
On 12 August 2024 14,826,317 shares were issued at $0.095 per share raising $1,408,500 and 7,413,161 options.
•
Following the Annual General Meeting planned for November 2024, 12,024,429 shares with an issue price of $0.095
and 6,012,216 options will be issued. Of this amount, 11,592,850 shares and 5,796,426 options will be subject to
shareholder approval.
On 1 August 2024, the Company announced that it would conduct an Entitlement Offer to shareholders on a 1 for 6 basis with an
issue price of $0.095 per share with one option for every two shares, exercisable at $0.18 by 31 January 2026.
As at the date of this report, the Company had 209,566,402 ordinary shares, 1,200,000 performance rights and 18,453,161 unlisted
options on issue.
Financial Position
At 30 June 2024, the Group’s net assets totalled $19,964,616 (2023: $21,913,878) which included cash assets of $503,214 (2023:
$3,449,654).
The Group’s working capital, being current assets less current liabilities has decreased from $2,697,455 at 30 June 2023 to a deficit
of $201,701 at 30 June 2024, principally due to ongoing exploration and evaluation expenditure and operating costs.
Treasury policy
The Group does not have a formally established treasury function. The Board is responsible for managing the Group’s finance
facilities. The Group does not currently undertake hedging of any kind.
Liquidity and funding
The Group has sufficient funds to finance its operations and exploration activities, and to allow the Group to take advantage of
favourable business opportunities, not specifically budgeted for, or to fund unforeseen expenditure.
Significant Changes in State of Affairs
There was no significant changes in the state of affairs of the Group in the financial year.
Elementos Limited Annual Report for the year ended 30 June 2024 43
Events After Reporting Date
Subsequent to the reporting period the following occurred:
•
On 1 August 2024, the Company announced that it had received commitments to complete a private placement of 26,850,746
shares to be issued at $0.095 per share with one option for every two shares, exercisable at $0.18 by 31 January 2026. The
transaction will complete in two tranches as follows:
-
On 12 August 2024 14,826,317 shares were issued at $0.095 per share raising $1,408,500 and 7,413,161 options.
-
Following the Annual General Meeting planned for November 2024, 12,024,429 shares with an issue price of $0.095 and
6,012,216 options will be issued. Of this amount, 11,592,850 shares and 5,796,426 options will be subject to shareholder
approval.
•
On 1 August 2024, the Company announced that it would conduct an Entitlement Offer to shareholders on a 1 for 6 basis with
an issue price of $0.095 per share with one option for every two shares, exercisable at $0.18 by 31 January 2026.
•
On 27 August 2024, the Company announced the award of four additional tenements in the Cordoba Province of Spain, by the
Junta de Andalucia. Three of the new tenements are located to the west and north-east of the Company’s existing Oropesa
Tin Project. The remaining independent tenement is located ~7km to the South of the Oropesa Tin Project.
Other than the events noted above, there are no other matters or circumstances that have arisen since the end of the year which
significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs
of the Group in future financial years.
Environmental Issues
The Group is subject to significant environmental regulations under the laws of the Commonwealth of Australia and states of
Australia in which the Group currently operates. In addition, the Group is subject to the environmental regulations of the Central
Government of Spain, Cordoba Province of Andalucia, Fuente Obejuna municipality and to a lesser extent the European Union in
relation to the Oropesa Tin Project.
The directors monitor the Group’s compliance with environmental obligations. The directors are not aware of any compliance
breach arising during the year and up to the date of this report.
In addition, in 2021 the company established an Environmental, Social and Governance (ESG) Position Statement as part of its
desire to maturing its global tin assets into production in a responsible way. The company made further commitments to commence
reporting against the Tin Code in 2023, the company subsequently decided to delay its reporting for at least one more year. During
the 2024 financial year the company was in negotiations with the Junta de Andalucia (Andalucian Government) for the majority of
the year with respect to its environmental disturbance and project layout. The company decided that seeking to report against the
Tin Code for a development project with its basis of design in flux was not a prudent use of the company’s resources or
Management’s time. The company plans for the ESG sub-committee to revisit this reporting commitment during the 2025 financial
year.
Native Title
Mining tenements that the Group currently holds, are not subject to any known Native Title claims. The Group has a policy that is
respectful of the Native Title rights and therefore surveys sites before disturbance for archaeological items.
Elementos Limited Annual Report for the year ended 30 June 2024 44
Remuneration Report (Audited)
This report details the nature and amount of remuneration for each director and other key management personnel.
The names of key management personnel of Elementos Ltd who have held office during the financial year are:
Key Management Personnel
Position
Andy Greig
Director – Non-executive Chairman
Joe David
Managing Director
Corey Nolan
Director - Non-executive
Calvin Treacy
Director - Non-executive
Drew Speedy
Chief Financial Officer
The Group’s remuneration policy seeks to align director and executive objectives with those of shareholders and business, while
at the same time, recognising the early development stage of the Group and the criticality of funds being utilised to achieve
development objectives. The board believes the current policy has been appropriate and effective in achieving a balance of these
objectives.
The Group’s remuneration policy provides for long-term incentives to be offered through a director and employee share option
plan and also through a performance rights plan. Options and/or rights may be granted under these plans to align directors’,
executives’, employees’ and shareholders’ interests. Two methods may be used to achieve this aim, the first being performance
rights and options that vest upon reaching or exceeding specific predetermined objectives, and the second being options granted
with higher exercise prices (than the share price at issue) rewarding share price growth.
The board of directors is responsible for determining and reviewing the Group’s remuneration policy, remuneration levels and
performance of both executive and non-executive directors. Independent external advice will be sought when required. No
independent external advice was sought during the current year.
Performance-Based Remuneration
Performance-based remuneration includes both short-term and long-term incentives and is designed to reward key management
personnel for reaching or exceeding specific objectives or as recognition for strong individual performance.
The short-term incentives (‘STI’) program is designed to align the targets of the Company with the performance of key
management personnel. The STI payments are granted based on the Board assessment of the Executives performance for the
period and are payable at the discretion of the Board.
Long-term incentives are comprised of share options and performance rights, which are granted from time-to-time to encourage
sustained strong performance in the realisation of strategic outcomes and growth in shareholder value.
The exercise price of the options is determined after taking into account the underlying share price performance in the period
leading up to the date of grant and if applicable, performance conditions attached to the share options. Subject to specific vesting
conditions, each option is convertible into one ordinary share.
Performance rights are issued with performance conditions that align with strategic outcomes of the business.
The Group’s policy for determining the nature and amount of remuneration of board members and key executives is set out below.
Elementos Limited Annual Report for the year ended 30 June 2024 45
Non-Executive Directors
Board policy is to remunerate non-executive directors at market rates for comparable companies for time, commitment and
responsibilities. The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval by
shareholders at the Annual General Meeting and is not linked to the performance of the Group. The maximum aggregate amount
of fees that can be paid to non-executive directors approved by shareholders is currently $400,000. One-third, by number, of non-
executive directors retires by rotation at the Company’s Annual General Meeting. Retiring directors are eligible for re-election by
shareholders at the Annual General Meeting of the Company. The appointment conditions of the non-executive directors are set
out and agreed in letters of appointment.
Non-Executive Director fees as at 30 June 2024 were $55,000 per annum (including superannuation where applicable) to each
non-executive director. In addition, Non- Executive Directors who act as a Director of operational subsidiaries are paid an annual
fee of $15,000 per operating subsidiary.
If directors perform services for the Company that, in the opinion of the other directors, is outside the scope of the ordinary duties
of the director, the Company may pay that director for those services in addition to the remuneration outlined above. During the
current financial period Mr Treacy received $2,625 of additional fees in relation to work undertaken on the Oropesa Tin Project.
Executives
The remuneration structure for executives is based on a number of factors, including length of service, particular experience of
the individual concerned, and overall performance of the Group. The executives receive payments provided for under an
employment or service agreement, which may include cash, superannuation, short-term incentives, and equity based
performance remuneration.
Joe David was appointed Chief Executive Officer (CEO) on 13 April 2021 and subsequently Managing Director on 27 January 2022.
The key terms of the employment agreement with Joe David were:
•
Total Fixed Remuneration of $325,000 per annum (inclusive of superannuation);
•
Short term incentive of up to 30% of base package (salary and superannuation) for the 2024 financial year, at the
discretion of the Board, based on performance for the period; and
•
3 months’ notice of termination by either party.
Drew Speedy was appointed Chief Financial Officer (CFO) on 1 April 2019. The key terms of the employment agreement with Drew
Speedy are:
•
Total Fixed Remuneration of $133,808 per annum (inclusive of superannuation); and
•
90 days’ notice of termination by either party.
Elementos Limited Annual Report for the year ended 30 June 2024 46
Remuneration Details of Key Management Personnel
The remuneration of the key management personnel of Elementos Limited for the year ended 30 June 2024 was as follows:
Year Ended 30 June 2024
Key Management
Personnel
Short Term Benefits
Equity
Settled
Options
Equity
Settled
Performanc
e Rights(1)
Post-
Employment
Super-
annuation
Total
Salary & Fees
Bonuses
Performance
related %
%
consisting
of options /
rights
$
$
$
$
$
$
A. Greig
55,000
-
-
-
-
55,000
-
-
J. David(2)
309,977
85,000
198,137
(475,475)
27,475
145,114
(132.5%)
(191.1%)
C. Nolan
49,550
-
-
-
5,450
55,000
-
-
C. Treacy
72,621
-
49,534
-
-
122,155
40.6%
40.6%
D. Speedy
128,134
-
65,457
(237,737)
13,149
(30,997)
(555.8%)
(555.8%)
615,282
85,000
313,128
(713,212)
46,074
346,272
(1)
During the period performance rights with performance conditions linked with an acquisition or merger, Oropesa DFS and Oropesa
Exploitation Licence were deemed to effectively be expired which resulted in the reversal of a previous share-based payment expense of
$713,212.
(2)
The Elementos Board resolved to issue Mr David a bonus to the value of $85,000 which will be settled through the issue of 1,000,000 shares,
subject to shareholder approval, based on a closing share price of $0.085 on 23 August 2024.
Year Ended 30 June 2023
Key Management
Personnel
Short Term Benefits
Equity
Settled
Options(1)
Equity
Settled
Performanc
e Rights
Post-
Employment
Super-
annuation
Total
Salary & Fees
Bonuses
Performance
related %
%
consisting
of options /
rights
$
$
$
$
$
$
A. Greig
55,000
-
(16,447)
-
-
38,553
(42.7%)
(42.7%)
J. David
285,931
45,000
-
240,372
27,450
598,753
47.7%
40.1%
C. Nolan
49,774
-
(16,447)
-
5,226
38,553
(42.7%)
(42.7%)
C. Treacy
81,371
-
(16,447)
-
-
64,924
(25.3%)
(25.3%)
B. Smith(2)
45,626
-
(16,447)
-
4,791
33,970
(48.4%)
(48.4%)
D. Speedy
114,225
11,312
-
120,186
12,695
258,418
50.9%
46.5%
631,927
56,312
(65,788)
360,558
50,162
1,033,171
(1)
The Company agreed on 31 May 2022 to issue 360,000 share options to each Non-Executive Director subject to shareholder approval at
the 2022 Annual General Meeting. The negative equity settled option amount for the current financial period is a result of the reduced value
of the options at grant date following shareholder approval compared to the valuation performed at 30 June 2022 as a result of the
agreement to issue the options.
(2)
Resigned as Non-Executive Director on 26 May 2023 and ceased to be a KMP.
Elementos Limited Annual Report for the year ended 30 June 2024 47
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Key
Management
Personnel
Fixed Remuneration
At risk - STI
At risk – LTI
2024
2023
2024
2023
2024
2023
A. Greig
100%
142.7%
-
-
-
(42.7%)
J. David
232.5%
52.3%
58.6%
7.5%
(191.1%)
40.1%
C. Nolan
100%
142.7%
-
-
-
(42.7%)
C. Treacy
59.4%
125.3%
-
-
40.6%
(25.3%)
B. Smith(1)
-
148.4%
-
-
-
(48.4%)
D. Speedy
(455.8%)
49.1%
-
4.4%
555.8%
46.5%
(1)
Mr Smith resigned and ceased being a KMP on 26 May 2023.
The STI payments are granted based on the Board assessment of the Executives performance for the period and are payable at
the discretion of the Board. The maximum bonus values are established at the start of each financial year and amounts payable
are determined at the discretion of the Board based on performance for the period.
Key Management
Personnel
Bonus paid / payable
Bonus forfeited
2024
2023
2024
2023
J. David
87.2%(1)
37.5%
12.8%(1)
62.5%
D. Speedy
-
25%
-
75%
(1)
Mr David agreed to accept the STI as 1,000,000 fully paid ordinary shares, subject to shareholder approval at the Company’s Annual General
Meeting.
Equity-based Remuneration
Options
The terms and conditions of each grant of options over ordinary shares affecting remuneration of directors and other key
management personnel in this financial year or future reporting years are included in the table below.
Key Management
Personnel
Number of
options
Grant date
Vesting date
and exercisable
date
Expiry date
Exercise
price
Fair value per option
at 30 June 2024
Value of options
granted during the
year
J. David
2,000,000
20-Nov-2023
Upon issue
30-Jun-2026
$0.25
$0.0375
$75,058
J. David
2,000,000
20-Nov-2023
Upon issue
30-Jun-2026
$0.30
$0.0327
$65,400
J. David
2,000,000
20-Nov-2023
Upon issue
30-Jun-2026
$0.35
$0.0288
$57,677
C. Treacy
500,000
20-Nov-2023
Upon issue
30-Jun-2026
$0.25
$0.0375
$18,764
C. Treacy
500,000
20-Nov-2023
Upon issue
30-Jun-2026
$0.30
$0.0327
$16,350
C. Treacy
500,000
20-Nov-2023
Upon issue
30-Jun-2026
$0.35
$0.0288
$14,419
D. Speedy
500,000
11-Sep-2023
Upon issue
30-Jun-2026
$0.25
$0.0489
$24,435
D. Speedy
500,000
11-Sep-2023
Upon issue
30-Jun-2026
$0.30
$0.0433
$21,646
D. Speedy
500,000
11-Sep-2023
Upon issue
30-Jun-2026
$0.35
$0.0387
$19,376
Elementos Limited Annual Report for the year ended 30 June 2024 48
Performance Rights
The terms and conditions of each grant of performance right over ordinary shares affecting remuneration of directors and other
key management personnel in this financial year or future reporting years are included in the table below.
Tranche
Key
Management
Personnel
Number of
rights
Value of
rights
expensed
during the
year
Grant date
Vesting date and
exercisable date
Expiry date
Exercise
price
Fair value per
right at grant
1 & 2
J. David
800,000
($340,000)
8-Jul-2021
Completion of Oropesa
DFS and retention to 1-
08-22
24-Jul-2024(a)
Nil
$0.43
D. Speedy
400,000
($170,000)
3
J. David
200,000
Nil
8-Jul-2021
Granting of Oropesa
Exploitation License and
retention to 1-08-22
31-Jul-2024(a)
Nil
$0.43
D. Speedy
100,000
Nil
4
J. David
400,000
($135,475)
8-Jul-2021
Oropesa project funding
package and retention to
1-07-23
31-Jan-2025
Nil
$0.43
D. Speedy
200,000
($67,737)
5
J. David
400,000
Nil
8-Jul-2021
Acquisition or merger
and retention to 1-07-23
31-Jan-2024(b)
Nil
$0.43
D. Speedy
200,000
Nil
6
J. David
200,000
Nil
8-Jul-2021
Completion of Cleveland
PFS and retention to 1-
07-23
31-Jan-2025
Nil
$0.43
D. Speedy
100,000
Nil
7
J. David
200,000
Nil
8-Jul-2021
First production of
mineral concentrate and
retention to 1-07-25
31-Jan-2026
Nil
$0.43
D. Speedy
100,000
Nil
(a) Performance rights deemed to effectively be expired on 30 June 2024 as the performance conditions had not been
achieved by the test date.
(b) Performance rights deemed to effectively be expired on 31 December 2023 as the performance conditions had not
been achieved by the test date.
Company Performance, Shareholder Wealth, and Director and Executive Remuneration
During the financial year, the Company has generated losses as its principal activity was mineral exploration.
The following table shows the share price of the Company since 2020 (historical comparative prices have been adjusted to reflect
the 25:1 consolidation undertaken in December 2021).
30 June
2024
30 June
2023
30 June
2022
30 June
2021
30 June
2020
Share Price at
year end ($)
0.13
0.165
0.405
0.425
0.125
As the Company is still in the exploration and development stage, the link between remuneration, company performance and
shareholder wealth is tenuous. Share prices are subject to the influence of metal prices and market sentiment towards the sector,
and as such, increases and decreases might occur independent of executive performance and remuneration.
Elementos Limited Annual Report for the year ended 30 June 2024 49
Shares Held by Key Management Personnel
Details of shares held directly, indirectly or beneficially by key management personnel during the year ended 30 June 2024 were
as follows:
Key
Management
Personnel
Balance at 1
July 2023
Granted as
Compensation
Received on
Exercise of
Options / Rights
Net change
other
Balance at 30
June 2024
A. Greig
25,442,901
-
-
1,000,000(1)
26,442,901
J. David
273,631
-
-
-
273,631
C. Nolan
249,545
-
-
-
249,545
C. Treacy
1,548,107
-
-
-
1,548,107
D. Speedy
189,444
-
-
-
189,444
27,703,628
-
-
1,000,000
28,703,628
(1)
Mr Greig acquired 1,000,000 shares on market during the reporting period.
Unlisted options held by Key Management Personnel
The number of options in Elementos Limited held by each key management person of the consolidated entity during the financial
year is set out below. These figures do not include any options issued post year end.
Key
Management
Personnel
Balance at
1 July 2023
Granted as
compensation
Other
Expired
Exercised
Balance at
30 June
2024
Total vested
and
exercisable
at 30 June
2024
A. Greig
360,000
-
-
-
-
360,000
360,000
J. David
-
6,000,000
-
-
-
6,000,000
6,000,000
C. Nolan
360,000
-
-
-
-
360,000
360,000
C. Treacy
360,000
1,500,000
-
-
-
1,860,000
1,860,000
D. Speedy
-
1,500,000
-
-
-
1,500,000
1,500,000
1,080,000
9,000,000
-
-
-
10,080,000
10,080,000
Elementos Limited Annual Report for the year ended 30 June 2024 50
Unlisted performance rights held by Key Management Personnel
The number of performance rights in Elementos Limited held by each key management person of the consolidated entity during
the financial year is set out below. There were no rights issued post year end.
Key
Management
Personnel
Balance at 1
July 2023
Granted as
compensation
Exercised
Expired
Balance at 30
June 2024
Total vested
and
exercisable at
30 June 2024
J. David
2,200,000
-
-
(1,400,000)
800,000
-
D. Speedy
1,100,000
-
-
(700,000)
400,000
-
3,300,000
-
-
(2,100,000)
1,200,000
-
Other transactions with Key Management Personnel
On 22 January 2024, the Company executed a loan facility with the Company’s Non-Executive Chairman Mr Andy Greig, a related
party, with the following terms:
•
Loan amount: $2,000,000
•
Loan term: 2 years
•
Interest rate: 6% on drawn funds
•
Unsecured
•
No conversion rights
•
No requirement to repay principal or pay interest during the loan term
•
Repayable by the Company at any time (during the loan term)
As at 30 June 2024, the balance outstanding was $1,000,000.
There were no other transactions with Key Management Personnel during the financial year.
End of Remuneration Report (Audited)
Options
At the date of this report, the unissued ordinary shares of the Company under options are as follows:
Elementos Limited Annual Report for the year ended 30 June 2024 51
Unlisted Options
The following share options are currently on issue at the date of this report:
Grant Date/s
Expiry Date
Exercise Price
No. of options(1)
16 November 2022
31-May-2025
$1.10
1,440,000
11 September 2023
30-Jun-2026
$0.25
700,000
11 September 2023
30-Jun-2026
$0.30
700,000
11 September 2023
30-Jun-2026
$0.35
700,000
20 November 2023
30-Jun-2026
$0.25
2,500,000
20 November 2023
30-Jun-2026
$0.30
2,500,000
20 November 2023
30-Jun-2026
$0.35
2,500,000
12 August 2024
31-Jan-2026
$0.18
7,413,161
(1)
The Company has agreed to issue a further 6,012,216 options at the time of the 2024 Annual General Meeting. Of this amount 5,796,426 are
subject to shareholder approval at the meeting. In addition, the Company announced on 1 August 2024 plans to conduct an entitlement
offer to existing shareholders that may result in the issue of up to 16,228,341 options.
No ordinary shares were issued during and since the year ended 30 June 2024 on the exercise of options.
Performance Rights
At the date of this report the following Performance Rights were on issue:
Grant Date/s
Expiry Date
Exercise Price
No. of Rights
8 July 2021
31 January 2025
Nil
900,000
8 July 2021
31 January 2026
Nil
300,000
Option and Performance Right holders do not have any rights to participate in any share issue or other interests in the Company
or any other entity.
Directors’ Meetings
The meetings attended by each director during the financial year were:
Directors
Board
Audit & Risk Committee
Meetings
Attended
Meetings
Attended
A. Greig
5
5
n/a
n/a
J. David
5
5
n/a
n/a
C. Nolan
5
5
2
1
C. Treacy
5
5
2
2
There were no meetings of the ESG Committee during the period.
Elementos Limited Annual Report for the year ended 30 June 2024 52
Corporate Governance
In recognising the need for the highest standards of corporate behaviour and accountability, the directors of Elementos Limited
support and, where practicable or appropriate, have adhered to the ASX Principles of Corporate Governance. The Company’s
corporate governance statement is set out in this Annual Report.
Indemnification and Insurance of Directors and Auditors
The Company has entered into a Deed with each of the directors whereby the Company has agreed to provide certain indemnities
to each director to the extent permitted by the Corporations Act and to use its best endeavours to obtain and maintain directors’
and officers’ indemnity insurance, subject to such insurance being available at reasonable commercial terms.
The Company has paid premiums to insure each of the directors of the Company against liabilities for costs and expenses incurred
by them in defending any legal proceedings arising out of their conduct while acting in the capacity of director of the Company,
other than conduct involving a wilful breach of duty in relation to the Company. The contracts include a prohibition on disclosure
of the premium paid and nature of the liabilities covered under the policy.
The Company has not given an indemnity or entered into an agreement to indemnify, or paid or agreed to pay insurance premiums
in respect of any person who is or has been an auditor of the Company or a related entity during the year and up to the date of this
report.
Proceedings on Behalf of the Company
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which
the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings.
The Company was not a party to any such proceedings during the year.
Non-Audit Services
The auditors did not provide any non-audit services during the year (2023: Nil).
Future Developments and Likely Outlook
Planned developments in the operations of the Group and the expected results of those operations in subsequent financial years
has been discussed where appropriate in the Annual Report under Review of Operations.
There are no further developments of which the Directors are aware which could be expected to affect the results of Group's
operations and plans, other than information which the Directors believe comment on, or disclosure of, would prejudice the
interests of the Group.
Business Risks
The Company is currently developing two mineral projects, which are currently licensed for exploration, into approved mines
which still require approvals, feasibility studies, finance, offtake, construction development and commissioning into operations,
these activities carry inherent risks. Factors specific to the company or those which impact the market more broadly, may
individually or in combination, impact the financial and operating performance of the Company. These events may be beyond the
control of the Board and management of the Company.
The material risks for the company are outlined below. This summary is not an exhaustive list of all the risks that may affect the
Company and its projects, nor have they been listed in any particular order of materiality.
Exploration of in-situ minerals - the success of the Company depends on the discovery and quantification of mineralisation,
positive assessment that those resources are economically mineable, access to required development capital, movement in
the price of commodities, securing and maintaining title to the Company’s exploration and mining tenements and licenses and
Elementos Limited Annual Report for the year ended 30 June 2024 53
obtaining all consents and approvals necessary for the conduct of its exploration and development activities. The Company
undertakes extensive exploration and laboratory tests prior to establishing JORC compliant resource estimates, with industry
accepted QA/QC protocols. The Company employs qualified professionals and engages external experts to assist with the
evaluation of exploration results where required and utilises third party competent persons to prepare JORC resource
statements or suitably qualified senior management of the Company.
Technical/Feasibility Studies - The company conducts technical and feasibility studies, modelling and economic reporting of
its projects in conjunction with third party experts who, where required, provide Competent Person sign-off under the JORC
Code and listing rules. The economic studies (Scoping Studies, Pre-Feasibility Studies & Definitive Feasibility Studies) are
published as per the regulations and clearly states the risks and confidence levels associated with inputs, the confidence
levels associated with capital and operating costs as well as any other material statements and the risks that remain. The
Company engages external experts to assist with the development and compilation of studies and utilises third party
competent persons to prepare JORC resource statements or suitably qualified senior management of the Company.
Regulatory Approval Risk - the Company’s operations are subject to various National, State/Regional(Spain), Provincial(Spain)
and local laws (including Royal Decrees in Spain), as well as other Regulations, Standards, Guidelines and Plans, including
those relating to exploration/investigation(Spain), mining/exploitation(Spain), development & construction permits and licence
requirements, industrial relations, environment, land access ad use, royalties, water, native title and cultural heritage, mine
safety and occupational health. Approvals, licences and permits required to comply with such rules are subject to the
discretion of the applicable government body officials. No assurance can be given that the Company will be successful in
acquiring and maintaining such authorisations in full force and effect without modification or revocation. To the extent such
approvals are required and not retained or obtained in a timely manner or at all, the Company may be curtailed or prohibited
from continuing or proceeding with exploration, development or production. The Company’s business and results of operations
could be adversely affected if applications lodged for exploration, environmental and mining/exploitation(Spain) licences are
not granted. Mining/Exploitation(Spain) and exploration/investigation(Spain) tenements are subject to periodic renewal. The
renewal of the term of a granted tenement is also subject to the discretion of the relevant Minister and/or Department. Renewal
conditions may include increased expenditure and work commitments or compulsory relinquishment of areas of the tenements
comprising the Company’s projects. The imposition of new conditions or the inability to meet those conditions may adversely
affect the operations, financial position and/or performance of the Company. The Company diligently lodges tenement annual
reports and renewals and liaises closely with applicable government departments to best manage its regulatory compliance.
The company recently announced an agreed path forward of its Primary licence submissions (Environmental Licence &
Mining Licence) for it’s Oropesa Tin Project in Andalucia. As part of the agreed way forward, which involves modifications to
the project disturbance layouts (waste dumps, tailings dam and associated process and non-process infrastructure) the
company is required to cancel and resubmit a new AAU (Environmental Licence). Due to the age of the current Investigation
Permit (similar to an exploration licence in Australia) the cancellation of the prior AAU, and in preparation for the submission
of new AAU our Spanish subsidiary have to submit an Investigation permit extension application to the Andalucian Mining
Department’s Cordoba (Province) office.
This is a legislated process which gives us an exclusive 30-day period to re-submit an extension application, which has not
commenced. The company has held detailed conversations with the Director General of the Andalucian Mining Department
(at the Regional (Seville) level) and the local Cordoba office (Provincial level) and have alignment on both the required
procedure and the content of the application that will be acceptable to the Administration. The company already has an
advanced draft of the application, and based on conversations with the Mining Department and advice from our specialist
Andalucian mining approvals lawyer consider a rejection of the tenure extension application to be an extremely low risk to
the company.
Environmental - all phases of mining and exploration present environmental risks and hazards. The Company’s operations are
subject to environmental regulations pursuant to a variety of national, state/regional(Spain), Provincial(Spain) and local laws
and regulations. Environmental legislation provides for, among other things, restrictions and prohibitions on spills, releases or
emissions of various substances produced in association with exploration and mining operations. Compliance with such
legislation can require significant expenditures and a breach may result in the imposition of fines and penalties, some of which
may be material. Environmental legislation is evolving in both Australian and Spain in a manner expected to result in stricter
standards and enforcement, larger fines and liability and potentially increased capital expenditures and operating costs.
Elementos Limited Annual Report for the year ended 30 June 2024 54
Environmental assessments of proposed projects carry a heightened degree of responsibility for companies and directors,
officers and employees. The Company assesses each of its projects very carefully with respect to potential environmental
issues, in conjunction with specific environmental regulations applicable to each project, prior to commencing field
exploration and in great details when submitting its Environmental applications to support mining operations.
Safety - safety is of critical importance in the planning, organisation and execution of the Company’s exploration, development
and planned mining activities. The Company is committed to providing and maintaining a working environment in which its
employees are not exposed to hazards that will jeopardise an employee’s health, safety or the health and safety of others
associated with the Company. The Company recognises that safety is both an individual and shared responsibility of all
employees, contractors and other persons involved with the operation of the organisation. The Company has a Safety and
Health Management system which is designed to minimise the risk of an uncontrolled safety and health event and to
continuously improve the safety culture within the organisation. In addition, all contractors and consultants are inducted to
site when they are performing activities deemed a risk to themselves or others. This is supported by a culture which supports
all personnel feeling they are free to report incidents or risks without worrying about persecution.
Funding - the Company will require additional funding to continue the exploration, development and construction of its projects
before they become cashflow positive. There is no certainty that the Company will have access to available financial resources
sufficient to fund its exploration, feasibility or development costs at the required points in time. Discussions with ongoing
development sources of funds, and key project finance funders have confirmed that a project of these scales should be able
to be funded with a combination of Debt (various types) and Equity. The company remains confident that the development
capital costs are sufficiently low that raising the required equity, in conjunction with debt facilities, will be possible. The
company continues to have the full support of its existing largest shareholders and is working with potential offtake partners,
brokers, senior debt providers, private equity firms, government grants and traditional funders to best ensure that the Company
will be in a position to fund the projects as needed. It is also possible that Elementos could pursue other value realisation
strategies such as a sale, partial sale or joint venture of the projects if the opportunity presents itself.
Macro-economic/External Risks - Fluctuations in commodity prices foreign currency exchange rates have the ability to
significantly affect the financial outcomes and profitability of both studies and operating mines. There can be no assurance
that commodity prices will be significantly supportive so the Company can develop and mine its deposits at a profit. Commodity
prices fluctuate due to a variety of factors including supply and demand fundamentals, international economic and political
trends, expectations of inflation, currency exchange fluctuations, interest rates, global or regional consumption patterns and
speculative activities. Similarly, demand and supply of capital and currencies, forward trading activities, relative interest rates
and exchange rates and relative economic conditions can impact exchange rates.
Potential acquisitions and investments - The Company may pursue and assess other new business opportunities in the
resource sector in order to realise benefits including complementary revenue streams and future platforms for growth. The
identification, evaluation and negotiation of these opportunities may require significant time and effort from key management
and employees, and may result in disruptions to the business. These new business opportunities may take the form of direct
project acquisitions, investments, joint ventures, farm-ins, acquisition of tenements, permits, downstream smelting facilities,
and/or direct equity participation. Such transactions (whether completed or not) may require the payment of monies (as a
deposit and/or exclusivity fee) after only limited due diligence or prior to the completion of comprehensive due diligence. There
can be no guarantee that any proposed acquisition will be completed or be successful. If the proposed acquisition is not
completed, monies advanced may not be recoverable, which may have a material adverse effect on the Company. The
Company cannot guarantee that every acquisition or partnership that it makes or enters into will result in favourable outcomes
for the business. In addition, the process of integrating new businesses or assets may require significantly more financial and
management resources, or time to complete, than originally planned.
Reliance on key personnel - The Directors are primarily responsible for overseeing the operations and the strategic
management of the Company. The day-to-day operations of the Company are the responsibility of the Managing Director. There
can be no assurance that there will be no detrimental impact on the Company if one or more of the Directors, particularly the
Managing Director, no longer act as Directors of the Company.
Information technology/privacy - The Company relies heavily on its own computer systems and those of third party service
providers to store and manage private and confidential information. A malicious attack on the Company’s systems, processes
Elementos Limited Annual Report for the year ended 30 June 2024
55
or people from external or internal sources could put the integrity and privacy of the Company’s data at risk. If the Company’s
efforts to combat any malicious attack are unsuccessful or the Company has actual or perceived vulnerabilities, the Company’s
business reputation and brand name may be harmed, potentially having a material adverse effect on the Company’s operations
and financial position.
Insurance - The Company insures its operations in accordance with industry practice. However, in certain circumstances the
Company’s insurance may not be of a nature or level to provide adequate insurance cover. The occurrence of an event that is
not covered or fully covered by insurance could have a material adverse effect on the business, financial condition and results
of the Company. Insurance of all risks associated with mineral exploration and production is not always available and where
available the costs can be prohibitive.
Climate change -There are a number of climate-related factors that may affect the operations and proposed activities of the
Company. Climate change may be said to cause certain physical and environmental risks that cannot be predicted by the
Company, including events such as increased severity of weather patterns and incidence of extreme weather events and
longer-term physical risks such as shifting climate patterns. These risks said to be associated with climate change may have
a direct impact on Company’s ability to perform its mining operations, and may significantly change the industry in which the
Company operates. In addition, changing investor sentiment towards climate change, including a view that all mining should
be avoided due to its contribution to greenhouse gas emissions (despite the reliance on the various metals by the renewables
sector) and, thus, cause investors to cease investing in mining and exploration entities, may have a significant adverse effect
on the Company’s ability to secure additional funding and other ancillary products and services (including, for example,
appropriate insurance at affordable prices).
Auditor’s Independence Declaration
The lead auditor’s independence declaration under section 307C of the Corporations Act 2001 is attached to this financial report.
Signed in accordance with a resolution of the board of directors.
Joe David
Managing Director
Dated 20 September 2024
Brisbane, Queensland
Elementos Limited Annual Report for the year ended 30 June 2024
56
Auditor’s Independence Declaration
Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au
Level 10, 12 Creek Street
Brisbane QLD 4000
GPO Box 457 Brisbane QLD 4001
Australia
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
DECLARATION OF INDEPENDENCE BY A J WHYTE TO THE DIRECTORS OF ELEMENTOS LIMITED
As lead auditor of Elementos Limited for the year ended 30 June 2024, I declare that, to the best of my
knowledge and belief, there have been:
1.
No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2.
No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Elementos Limited and the entities it controlled during the period.
A J Whyte
Director
BDO Audit Pty Ltd
Brisbane, 20 September 2024
Elementos Limited Annual Report for the year ended 30 June 2024
57
Shareholder Information
Additional information required by the Australian Securities Exchange and not shown elsewhere in this report is as follows. The
information is current as at 17 September 2024.
(a) Distribution of equity securities
The number of holders, by size of holding, in each class of security are:
Ordinary Shares
No. Holders
No. Shares
1 - 1,000
374
136,056
1,001 - 5,000
538
1,480,102
5,001 - 10,000
239
1,811,777
10,001 - 100,000
540
19,348,990
100,001 and over
201
186,789,477
Total
1,892
209,566,402
Performance Rights
No. Holders
No. Rights
1 - 1,000
-
-
1,001 - 5,000
-
-
5,001 - 10,000
-
-
10,001 - 100,000
-
-
100,001 and over
2
1,200,000
Total
2
1,200,000
Options
No. Holders
No. Options
1 - 1,000
-
-
1,001 - 5,000
-
-
5,001 - 10,000
-
-
10,001 - 100,000
5
368,423
100,001 and over
18
18,084,738
Total
23
18,453,161
The number of shareholders holding less than a marketable parcel is 945.
Elementos Limited Annual Report for the year ended 30 June 2024 58
(b) Twenty Largest Shareholders
The names of the twenty largest holders of Quoted Ordinary Shares are:
#
Registered Name
Number of Shares
% of total
Shares
1
MR ANDREW CARLYLE GREIG
26,442,901
12.61%
2
SANDHURST TRUSTEES LTD
12,236,609
5.83%
3
GOM PROPERTIES PTY LTD
11,672,303
5.57%
4
MCCUSKER HOLDINGS PTY LTD
9,705,965
4.63%
5
TR NOMINEES PTY LTD
8,525,051
4.06%
6
SANGWILL PTY LTD
5,977,237
2.85%
7
CITICORP NOMINEES PTY LIMITED
4,770,362
2.27%
8
FAIRWINDS SUPERANNUATION PTY LTD
4,720,029
2.25%
9
KEO PROJECTS PTY LTD
4,030,000
1.92%
10
BINVID PTY TLD
3,856,371
1.84%
11
MR CARLO CHIODO
3,290,775
1.57%
12
WOODY POINT HOLIDAY VILLAGE PTY LTD
3,110,718
1.48%
13
DRAWONE PTY LTD < THE NEWTOWN INVESTMENT A/C>
2,919,000
1.39%
14
NETWEALTH INVESTMENTS LIMITED
2,914,686
1.39%
15
GLEN LEWIS PTY LTD
2,567,471
1.22%
16
ANDES INVESTORS LLC
2,273,049
1.08%
17
NETWEALTH INVESTMENTS LIMITED
2,244,817
1.07%
18
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
2,232,449
1.06%
19
MR JOSEPH IGNATIUS D'SOUZA
2,040,000
0.97%
20
TUWHERA TE RANGI LTD
1,965,000
0.93%
Top 20 Total
117,494,793
56.07%
Total of Securities
209,566,402
Elementos Limited Annual Report for the year ended 30 June 2024 59
(c) Substantial Shareholders
The Company notes that, as at the date of this report, the following shareholders own substantial shareholdings (>= 5.0%) in
Elementos Limited:
Name of Shareholder
Ordinary Shares
% of total Shares
MR ANDREW CARLYLE GREIG
26,442,901
12.61%
SANDHURST TRUSTEES LTD
12,236,609
5.83%
GOM PROPERTIES PTY LTD
11,672,303
5.57%
(d) Voting rights
All ordinary shares carry one vote per share without restriction.
Options and Rights do not carry voting rights.
(e) Restricted securities
The Group currently has no restricted securities on issue.
(f) On-market buy back
There is not a current on-market buy-back in place.
(g) Business objectives
The Group has used its cash and assets that are readily convertible to cash in a way consistent with its business objectives.
Elementos Limited Annual Report for the year ended 30 June 2024 60
Corporate Governance Statement
The board of directors of Elementos Limited is responsible for the corporate governance of the consolidated entity. The Board
guides and monitors the business and affairs of Elementos Limited on behalf of the shareholders by whom they are elected and
to whom they are accountable.
Elementos Limited’s Corporate Governance Statement (which can be found on the Company’s website www.elementos.com.au)
is structured with reference to the Australian Securities Exchange (“ASX”) Corporate Governance Council’s (the “Council”)
“Corporate Governance Principles and Recommendations, 4th Edition”, which are as follows. A copy of the eight Corporate
Governance Principles and Recommendations can be found on the ASX’s website.
The Board is of the view that, during the reporting period, with the exception of the departures from the ASX Guidelines as set
out below, it otherwise complies with all of the ASX Guidelines.
ASX CGC Principle 1
Lay solid foundations for management and oversight.
Role of the Board
The Board of Directors is pivotal in the relationship between shareholders and management and the role and responsibilities of
the Board underpin corporate governance.
The Board is committed to administering the policies and procedures with openness and integrity, pursuing the true spirit of
corporate governance commensurate with the Group’s needs.
Generally, the powers and obligations of the Board are governed by the Corporations Act and the general law.
Without limiting those matters, the Board expressly considers itself responsible for the following:
Ensuring compliance with the Corporations Act, ASX Listing Rules (where appropriate) and all relevant laws;
Oversight of the Group including its framework of control and accountability systems to enable risk to be assessed and
managed;
Appointing and removing the chief executive officer and/or Managing Director;
Ratifying the appointment and, where appropriate, removal of senior executives including the chief financial officer and
the Group secretary;
Input into and final approval of management’s development of corporate strategy and performance objectives;
Monitoring the cash position of the company and providing oversight on the timing and quantum of capital raises;
Monitoring senior executive’s performance and implementation of strategy;
Ensuring appropriate resources are available to senior executives;
Approving and monitoring the progress of major capital expenditure, capital management and acquisitions and
divestitures;
Approving and overseeing Committees where appropriate to assist in the Board’s function and powers.
The Functions, Powers and Responsibilities of the Board are set out in the Company’s Corporate Governance Charter which is
available from the corporate governance section of the Group’s website.
Elementos Limited Annual Report for the year ended 30 June 2024 61
The board meets on a regular basis to review the performance of the Company against its goals both financial and non-financial.
In normal circumstances, prior to the scheduled board meetings, each board member is provided with a formal board package
containing appropriate management and financial reports.
Appropriate background checks are conducted on proposed new directors and material information about a director being re-
elected is provided to security holders.
Written agreements are entered in to with directors and senior management clearly setting out their roles and responsibilities.
The company secretary works directly with the chair and the executive director on the functioning of all board and committee
procedures.
Diversity
The Group is committed to workplace diversity and ensuring a diverse mix of skills amongst its directors, officers and employees.
Recommendation 1.5 requires that listed entities should establish a policy concerning diversity. Whilst the Group does not
currently have a Diversity policy due to its size and nature of its operations, it strives to attract the best person for the position
regardless of gender, age, ethnicity or cultural background.
As at 30 June 2024, the proportion of women in the whole organisation is a follows:
Male
Female
Board Members
4
-
Officers
1
-
Employees
5
1
Performance Evaluation
The Board (in carrying out the functions of the Remuneration and Nomination Committees) considers remuneration and
nomination issues annually and otherwise as required in conjunction with the regular meetings of the Board.
An informal performance evaluation of the CEO has been undertaken.
No formal performance evaluation of the non-executive directors was undertaken during the year ended 30 June 2024.
ASX CGC Principle 2
Structure of the Board to be effective and add value
Nomination Committee
Recommendation 2.1 requires the Board to establish a nomination committee.
Although the Board has adopted a Nominations Committee Charter, the Board has not formally established a Nominations
Committee as the Directors consider that the Company is currently not of a size nor are its affairs of such complexity as to justify
the formation of this Committee. The Board as a whole is able to address these issues and is guided by the Nominations Committee
Charter. The Company will review this position annually and determine whether a Nominations Committee needs to be
established.
The Nomination Committee Charter is set out in the Company’s Corporate Governance Charter which is available from the
corporate governance section of the Group’s website.
Elementos Limited Annual Report for the year ended 30 June 2024 62
The Company is developing an appropriate board skills matrix. The skills, experience and expertise relevant to the position of
each director who is in office at the date of the Annual Report is detailed in the Directors’ report.
Corporate Governance Council Recommendation 2.4 requires a majority of the Board to be independent Directors. The Corporate
Governance Council defines independence as being free from any interest, position, association or relationship that might
influence, or reasonably be perceived to influence, in a material capacity to bring independent judgement to bear on issues before
the board and to act in the best interests of the entity and its security holders generally.
In the context of Director independence, “materiality” is considered from both the Group and the individual Director perspective.
The determination of materiality requires consideration of both quantitative and qualitative elements. An item is presumed to be
material (unless there is qualitative evidence to the contrary) if it is equal to or greater than 10% of the appropriate base amount.
Qualitative factors considered included whether a relationship is strategically important, the competitive landscape, the nature
of the relationship and the contractual or other arrangements governing it and other factors which point to the actual ability of
the Director in question to shape the direction of the Group.
In accordance with the Council’s definition of independence above and the materiality thresholds set, the directors listed below
are not considered independent. As the Chairman of the Company is not considered independent, the Group does not comply
with Recommendation 2.5. Corey Nolan and Calvin Treacy are considered independent. Despite not complying with
Recommendation 2.4 and 2.5, the Board believes the current structure is appropriate given the size and scale of operations.
Name
Position
Reason for non-compliance
A. Greig
Non-Executive Chairman
Director is a substantial (>5%) shareholder
J. David
Managing Director
Director was engaged in an executive capacity within the
previous 3 years
Elementos Limited considers industry experience and specific expertise, as well as general corporate experience, to be important
attributes of its Board members. The Directors noted below have been appointed to the Board of Elementos Limited due to their
considerable industry and corporate experience. The term in office held by each Director in office at the date of this report is as
follows:
Name
Term in Office
A. Greig
8 years, 11 months
J. David
2 year, 8 months
C. Nolan
15 years 2 months
C. Treacy
10 years 11 months
Directors have the right to seek independent professional advice in the furtherance of their duties as directors at the Group’s
expense. Written approval must be obtained from the chair prior to incurring any expense on behalf of the Group. Informal
induction is provided to any new directors.
ASX CGC Principle 3
Instil a culture of acting lawfully, ethically and responsibly
The Directors are subject to certain stringent legal requirements regulating the conduct both in terms of their internal conduct
as directors and in their external dealings with third parties both on their own and on behalf of the Group.
To assist directors in discharging their duty to the Group and in compliance with relevant laws to which they are subject, the
Group has adopted a Corporate Ethics Policy and Corporate Code of Conduct, whistleblower, anti-bribery and corruption policy
within its Corporate Governance Charter.
The Corporate Ethics Policy sets out rules binding Directors in respect of:
Elementos Limited Annual Report for the year ended 30 June 2024 63
a Directors’ legal duties as an officer of the Company;
a Directors’ obligations to make disclosures to the ASX and the market generally; and
dealings by Directors in shares in the Company.
The Corporate Ethics Policy, as set out in the Company’s Corporate Governance Charter is available from the corporate
governance section of the Group’s website.
ASX CGC Principle 4
Safeguard Integrity in Corporate Reporting
Audit Committee
The Board has established an Audit and Risk Management Committee which operates under a charter approved by the Board.
Recommendation 4.1 states that an audit committee should be structured so that it:
i.
consists only non-executive directors;
ii. consists of a majority of independent directors;
iii. is chaired by an independent chair, who is not the chair of the Board; and
iv. has at least three members.
The members of the Audit & Risk Management Committee during the financial year were Corey Nolan and Calvin Treacy all of
whom are considered non-executive and independent directors. The Committee is chaired by an independent director (Corey
Nolan). The Company does not currently fully comply with Recommendation 4.1 due to the committee only consisting of 2
members. The Board believes the current structure is appropriate given the size and scale of operations.
All members of the Audit & Risk Management Committee are considered financially literate in the context of the Company’s
affairs.
The number of meetings of the Audit & Risk Management Committee held during the year and the number of meetings attended
by each Director was as follows:
Member
Audit & Risk Management Committee
Number of meetings held
while in office
Meetings attended
C. Nolan
2
1
C. Treacy
2
2
The Audit Committee Charter is set out in the Company’s Corporate Governance Charter which is available from the corporate
governance section of the Group’s website.
Certification of financial reports
The Managing Director and Chief Financial Officer have made the following certifications to the Board:
That the Group’s financial reports are complete and present a true and fair view, in all material respects, of the financial
position and performance of the Group and are in accordance with relevant accounting standards;
The integrity of the reports is founded on a sound system of financial risk management and internal compliance and
control.
The Group ensures that its external auditor is present at the AGM to answer any questions with regard to the efficacy of the
financial statement audit and the associated independent audit report. The Board ensures that management provide sufficient
additional information to ensure the integrity of periodic corporate reports disclosed to the market and, if appropriate, certain
Elementos Limited Annual Report for the year ended 30 June 2024 64
declarations are provided by management regarding the underlying assumptions and procedures that have been implemented to
ensure this integrity.
ASX CGC Principle 5
Make timely and balanced disclosure
The Group has adopted a corporate ethics and continuous disclosure policy which is included in the Corporate Governance
Charter that duly complies with ASX and ASIC requirements for the timely and accurate reporting of the Group’s financial
activities, thus ensuring that the Group has disclosed all information which has a material impact on shareholders. This includes
the Annual Financial Report, Interim Financial Report, quarterly cash flows, new and relinquished tenements and changes in
directors and shareholder interests and other events which are identified to be material. All ASX announcements are available
on the Group’s website.
The Company Secretary is responsible for communication with the ASX, including responsibility for ensuring compliance with
the continuous disclosure requirements of the ASX Listing Rules and oversight of information distributed to the ASX.
ASX CGC Principle 6
Respect The Rights of Security Holders
The Board of directors undertakes to ensure that shareholders are informed of all major developments affecting the Group.
Information is communicated to shareholders through the annual report, interim financial report, announcements made to the
ASX, notices of Annual General and Extraordinary General Meetings, the AGM and Extraordinary General Meetings.
Information regarding the Group and its governance is available in the Corporate Governance Charter which can be found on the
Group’s website.
The Board encourages full participation of shareholders at Annual and Extraordinary General Meetings to ensure a high level of
accountability and identification with the Group’s direction, strategy and goals. In particular, shareholders are responsible for
voting on the re-election of directors.
The Group also offers shareholders the option to receive ASX announcements and other notices from the Company electronically.
ASX CGC Principle 7
Recognise and manage risk
The Board has established an Audit and Risk Management Committee which operates under a charter approved by the Board.
Recommendation 7.1 states that an audit committee should be structured so that it:
i.
consists of a majority of independent directors;
ii. is chaired by an independent chair, who is not the chair of the Board; and
iii. has at least three members.
The members of the Audit & Risk Management Committee during the financial year are Corey Nolan and Calvin Treacy all of
whom are considered independent directors. The Committee is chaired by an independent director (Corey Nolan). The Company
does not currently fully comply with Recommendation 7.1 due to the committee only consisting of 2 members. The Board believes
the current structure is appropriate given the size and scale of operations.
All members of the Audit & Risk Management Committee are considered to have sufficient technical, legal and industry
experience in the context of the Company’s affairs to properly assess the risks facing the Group.
The number of meetings of the Audit & Risk Management Committee held during the year and the number of meetings attended
by each Director was as follows:
Elementos Limited Annual Report for the year ended 30 June 2024 65
Member
Audit & Risk Management Committee
Number of meetings held
while in office
Meetings attended
C. Nolan
2
1
C. Treacy
2
2
The Company has developed a basic framework for risk management and internal compliance and control systems which cover
organisational, financial and operational aspects of the Company’s affairs. Further detail of the Company’s risk management
policies can be found within the Audit and Risk Management Committee Charter.
Recommendation 7.2 requires that the Board review the Company’s risk management framework and disclose whether such a
review has taken place. Business risks are considered regularly by the Board and management at management and Board
meetings. A formal report to the Board as to the effectiveness of the management of the Company’s material business risks has
not been formally undertaken.
The Audit and Risk Management Committee Charter is set out in the Company’s Corporate Governance Charter which is available
from the corporate governance section of the Group’s website.
The Company does not have a separate internal audit function. The board considers that the Company is not currently of the size
or complexity to justify a separate internal audit function, and that appropriate internal financial controls are in place. Such
controls are monitored by senior financial management and the Audit and Risk Committee.
The Directors’ Report sets out some of the key risks relevant to the Company and its operations. Although not specifically defined
as such, the risks include economic, environmental and social sustainability risks. As noted above, the Company regularly reviews
risks facing the Company and adopts appropriate mitigation strategies where possible.
ASX CGC Principle 8
Remunerate fairly and responsibly
Remuneration Committee
Although the Board has adopted a Remuneration Committee Charter, the Board has not formally established a Remuneration
Committee as the Directors consider that the Company is currently not of a size nor are its affairs of such complexity as to justify
the formation of this Committee. The Board as a whole considers themselves to have sufficient legal, corporate, commercial and
industry experience in the context of the Company’s affairs to properly assess the remuneration issues required by the Group and
is able to address these issues while being guided by the Remuneration Committee Charter. The Company will review this position
annually and determine whether a Remuneration Committee needs to be established.
The Company believes that given the size and nature of its operations, non-compliance by the Company with Recommendation
8.1 will not be detrimental to the Company.
It is the Company’s objective to provide maximum stakeholder benefit from the retention of a high quality Board and Executive
team by remunerating directors and key executives fairly and appropriately with reference to relevant employment market
conditions. To assist in achieving this objective, the Board links the nature and amount of executive Directors’ and officer’s
remuneration to the Group’s financial and operations performance. The expected outcomes of the remuneration structure are:
retention and motivation of key Executives
attraction of quality management to the Group
performance incentives which allow executives, management and staff to share the rewards of the success of
Elementos Limited.
For details on the amount of remuneration and all monetary and non-monetary components for Key Management Personnel
during the period, please refer to the Remuneration Report within the Directors’ Report. In relation to the payment of bonuses,
Elementos Limited Annual Report for the year ended 30 June 2024 66
options and other incentive payments, discretion is exercised by the Remuneration Committee and the Board, having regard to
the overall performance of Elementos Limited and the performance of the individual during the period.
There is no scheme to provide retirement benefits to directors other than statutory superannuation.
The Remuneration Committee Charter is set out in the Company’s Corporate Governance Charter which is available from the
corporate governance section of the Group’s website.
Remuneration Policy
The Group’s remuneration policy is also further detailed in the Remuneration Report in the Directors Report.
Non-Executive Director Remuneration
Non-executive directors are remunerated at market rates for time, commitment and responsibilities. Non-executive directors are
remunerated by fees as determined by the Board with the aggregate directors’ fee pool limit of $400,000. The maximum aggregate
amount of fees that can be paid to non-executive directors is subject to approval by shareholders at the Annual General Meeting.
Independent consultancy sources provide advice, as required; ensuring remuneration is in accordance with market practice.
Fees for non-executive Directors are not linked to the performance of the Group. However, to align Directors’ interests with
shareholders’ interests, the Directors are encouraged to hold shares in the Company and are, subject to approval by
shareholders, periodically offered options and/or performance rights.
The Company has adopted a Trading Policy that includes a prohibition on hedging, aimed at ensuring participants do not enter
into arrangements which would have the effect of limiting their exposure to risk relating to an element of their remuneration.
Other Information
Further information relating to the Group’s corporate governance practices and policies has been made publicly available on the
Group’s web site.
Elementos Limited Annual Report for the year ended 30 June 2024 67
Consolidated Statement of Profit or Loss and
Other Comprehensive Income for the Year Ended 30 June 2024
Note
30 June 2024
30 June 2023
$
$
Interest income
16,859
38,702
Other income
-
50,000
Corporate and administrative expenses
2
(1,291,916)
(2,308,429)
Foreign Currency Gain / (Loss)
(1,485)
(5,580)
Loss before income tax expense
(1,276,542)
(2,225,307)
Income tax expense
3
-
-
Loss for the period attributable to members of the parent entity
(1,276,542)
(2,225,307)
Other comprehensive income
Items that may be reclassified to profit or loss:
Exchange gain / (losses) on translation of foreign operations
(298,818)
744,148
Other comprehensive income for the period, net of tax
(298,818)
744,148
Total comprehensive loss attributable to members of the parent
entity
(1,575,360)
(1,481,159)
Basic and diluted loss per share
12
(0.006)
(0.012)
The accompanying notes form part of these financial statements.
Elementos Limited Annual Report for the year ended 30 June 2024 68
Consolidated Statement of Financial Position
As at 30 June 2024
Note
30 June 2024
30 June 2023
$
$
CURRENT ASSETS
Cash and cash equivalents
4
503,214
3,449,654
Trade and other receivables
5
222,154
287,333
Other current assets
41,375
9,362
Total Current Assets
766,743
3,746,349
NON-CURRENT ASSETS
Exploration and evaluation assets
6
20,959,205
19,007,033
Property, plant and equipment
46,081
57,754
Right of use assets
59,628
6,686
Other non-current assets
110,719
144,950
Total Non-Current Assets
21,175,633
19,216,423
TOTAL ASSETS
21,942,376
22,962,772
CURRENT LIABILITIES
Trade and other payables
7
915,231
1,041,831
Lease liability
53,213
7,063
Total Current Liabilities
968,444
1,048,894
NON-CURRENT LIABILITIES
Lease liability
9,316
-
Borrowings
8
1,000,000
-
Total Non-Current Liabilities
1,009,316
-
TOTAL LIABILITIES
1,977,760
1,048,894
NET ASSETS
19,964,616
21,913,878
EQUITY
Contributed equity
9
39,262,318
39,262,318
Reserves
10
677,955
1,350,675
Accumulated losses
(19,975,657)
(18,699,115)
TOTAL EQUITY
19,964,616
21,913,878
The accompanying notes form part of these financial statements.
Elementos Limited Annual Report for the year ended 30 June 2024 69
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2024
Note
Contributed
Equity
Accumulated
Losses
Share-
Based
Payments
Reserve
Foreign
Currency
Translation
Reserve
Total
$
$
$
$
$
Balance at 1 July 2022
36,165,450
(16,473,808)
831,735
(503,531)
20,019,846
Loss for the period
-
(2,225,307)
-
-
(2,225,307)
Other comprehensive loss
-
-
-
744,148
744,148
Total comprehensive income
-
(2,225,307)
-
744,148
(1,481,159)
Issue of shares
9
2,990,000
-
-
-
2,990,000
Exercise of options
9
225,002
-
-
-
225,002
Transaction costs
9
(118,134)
-
-
-
(118,134)
Issue of options and
performance rights
16
-
-
278,323
-
278,323
Balance at 30 June 2023
39,262,318
(18,699,115)
1,110,058
240,617
21,913,878
Balance at 1 July 2023
39,262,318
(18,699,115)
1,110,058
240,617
21,913,878
Loss for the period
-
(1,276,542)
-
-
(1,276,542)
Other comprehensive loss
-
-
-
(298,818)
(298,818)
Total comprehensive income
-
(1,276,542)
-
(298,818)
(1,575,360)
Issue of options and
performance rights
16
-
-
(373,902)
-
(373,902)
Balance at 30 June 2024
39,262,318
(19,975,657)
736,156
(58,201)
19,964,616
The accompanying notes form part of these financial statements.
Elementos Limited Annual Report for the year ended 30 June 2024 70
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2024
Note
30 June 2024
30 June 2023
$
$
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received
16,859
38,702
Payments to suppliers and employees
(1,852,319)
(1,948,004)
Interest Paid
(7,375)
(6,310)
VAT refunds
381,646
801,490
Other receipts
-
50,000
Net cash used in operating activities
11
(1,461,189)
(1,064,122)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration and evaluation assets
(2,372,774)
(4,745,219)
Payments for property, plant and equipment
-
(57,015)
Payments for deposits
(64,238)
-
Net cash used in investing activities
(2,437,012)
(4,802,234)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
9
-
3,215,002
Costs associated with share issues
9
-
(118,134)
Proceeds from Borrowings
11
1,000,000
-
Lease payments
11
(46,754)
(51,147)
Net cash provided by financing activities
953,246
3,045,721
Net increase/(decrease) in cash held
(2,944,955)
(2,820,635)
Net foreign exchange difference
(1,485)
116
Cash at Beginning of Year
3,449,654
6,270,173
Cash at End of Year
4
503,214
3,449,654
The accompanying notes form part of these financial statements.
Elementos Limited Annual Report for the year ended 30 June 2024 71
Notes to the Consolidated Financial
Statements
For the Year Ended 30 June 2024
NOTE 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES
The financial statements are general purpose financial statements that have been prepared in accordance with the Corporations
Act 2001, Australian Accounting Standards and Interpretations, and other authoritative pronouncements of the Australian
Accounting Standards Board. Elementos Limited is a for-profit entity for the purpose of preparing the financial statements. The
financial statements are presented in Australian dollars.
Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International
Financial Reporting Standards. The financial statements are for the consolidated entity consisting of Elementos Limited and its
Controlled Entities. Elementos Limited is a public company, incorporated and domiciled in Australia. The financial statements have
been prepared on an accruals basis and are based on historical cost. The financial report was authorised for issue on 20
September 2024 by the directors of the Company.
Financial information required for Elementos Limited as an individual entity is included in Note 22.
Material accounting policies adopted in the preparation of these financial statements are presented below. They have been
consistently applied unless otherwise stated.
Going Concern
The financial statements have been prepared on a going concern basis which contemplates the continuity of normal business
activities and the realisation of assets and discharge of liabilities in the ordinary course of business.
The Group has not generated any revenues from operations. As at 30 June 2024 the Group had cash reserves of $503,214, net
current liabilities of $201,701 and net assets of $19,964,616. The Group incurred a net loss of $1,575,360 for the year ended 30 June
2024 and had an outflow of $1,461,189 of cash from operating activities.
Subsequent to balance date the Group has raised $1,408,500 as part of a private placement and has received commitments for
the placement of a further 12,024,429 shares at an issue price of $0.095, subject to shareholder approval. Subsequent to balance
date the Group has also initiated and Entitlement Offer to existing shareholders on a 1 for 6 basis at an issue price of $0.095. The
Entitlement Offer will close on 4 October 2024.
The ability of the Group to maintain continuity of normal business activities and to pay its debts as and when they fall due is
dependent on the ability of the Group to successfully raise additional capital and/or successful exploration and subsequent
exploitation of areas of interest through sale or development.
These conditions give rise to material uncertainty which may cast significant doubt over the Group’s ability to continue as a going
concern.
The directors believe that the going concern basis of preparation is appropriate due to the following reasons:
• To date the Group has funded its activities through issuance of equity securities, and it is expected that the Group will be able
to fund its future activities through further issuances of equity securities; and
• The directors believe there is sufficient cash available for the Group to continue operating based on the Company’s cash flow
forecast.
Elementos Limited Annual Report for the year ended 30 June 2024 72
Should the Group be unable to continue as a going concern, it may be required to realise its assets and extinguish its liabilities
other than in the ordinary course of business, and at amounts that differ from those stated in the financial statements. This financial
report does not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts
or classification of liabilities and appropriate disclosures that may be necessary should the Group be unable to continue as a
going concern.
Principles of Consolidation
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Elementos Limited ("Company" or
"parent entity") as at 30 June 2024, and the results of all subsidiaries for the year then ended. Elementos Limited and its subsidiaries
together are referred to in these financial statements as “the Group” or “the consolidated entity”.
The names of the subsidiaries are contained in Note 20. All subsidiaries are accounted for by the parent entity at cost.
Subsidiaries are all entities over which the Group has control. The Group has control over an entity when the Group is exposed to,
or has a right to, variable returns from its involvement with the entity, and has the ability to use its power to affect those returns.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the
date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised
losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting
policies of controlled entities have been changed where necessary to ensure consistency with the policies adopted by the Group.
Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the Executive Director.
Income Tax
The income tax expense/(income) for the year comprises current income tax expense/(income) and deferred tax
expense/(income). Current income tax expense charged to profit or loss is the tax payable on taxable income calculated using
applicable income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities/ (assets) are therefore
measured at the amounts expected to be paid to/ (recovered from) the relevant taxation authority. Deferred income tax expense
reflects movements in deferred tax asset and deferred tax liability balances during the period as well as unused tax losses.
Current and deferred income tax expense/ (income) is charged or credited directly to equity instead of profit or loss when the tax
relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised
or the liability is settled, based on tax rates enacted or substantively enacted at reporting date. Their measurement also reflects
the manner in which management expects to recover or settle the carrying amount of the related asset or liability.
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 statements. 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.
The Company and its Australian 100% owned controlled entities have formed a tax consolidated group.
Members of the Group entered into a tax sharing arrangement. The agreement provides for the allocation of income tax liabilities
between the entities in proportion to their contribution to the Group's taxable income. The head entity of the tax consolidated
Group is Elementos Ltd.
Elementos Limited Annual Report for the year ended 30 June 2024 73
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable
that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised. The amount of
benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur
in income taxation legislation and the anticipation that the Group will derive sufficient future assessable income to enable the
benefit to be realised and comply with the conditions of deductibility imposed by the law.
Exploration and Evaluation Assets
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. Such expenditures
comprise net direct costs and an appropriate portion of related overhead expenditure but do not include overheads or
administration expenditure not having a specific nexus with a particular area of interest. These costs are only carried forward to
the extent that they are expected to be recouped through the successful development of the area or where activities in the area
have not yet reached a stage which permits reasonable assessment of the existence of economically recoverable reserves and
active or significant operations in relation to the area are continuing.
A regular review has been undertaken on each area of interest to determine the appropriateness of continuing to carry forward
costs in relation to that area of interest.
A provision is raised against exploration and evaluation assets where the directors are of the opinion that the carried forward net
cost may not be recoverable or the right of tenure in the area lapses. The increase in the provision is charged against the results
for the year. Accumulated costs in relation to an abandoned area are written off in full against profit or loss in the year in which
the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area
according to the rate of depletion of the economically recoverable reserves.
Restoration Costs
Costs of site restoration are provided over the life of the facility from when exploration commences and are included in the costs
of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste
removal, and rehabilitation of the site in accordance with clauses of the exploration and mining permits. Such costs have been
determined using estimates of future costs, current legal requirements and technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted for on a prospective basis. In determining the costs of site restoration,
there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation.
Accordingly, the costs have been determined on the basis that the restoration will be completed within one year of abandoning
the site.
The Group currently has no obligation for any restoration costs in relation to discontinued operations, nor is it currently liable for
any future restoration costs in relation to current areas of interest. Consequently, no provision for restoration has been deemed
necessary.
Impairment of Non-Financial Assets
At each reporting date, the Group reviews the carrying values of its tangible and intangible assets to determine whether there is
any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the
higher of the asset’s fair value less costs to sell and value in use, is compared to the asset's carrying value. Any excess of the
asset's carrying value over its recoverable amount is expensed to profit or loss. No impairment existed at reporting date.
Other Receivables
Other receivables are recognised at amortised cost less any allowance expected credit losses.
Elementos Limited Annual Report for the year ended 30 June 2024 74
Trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial
year and which are unpaid. Due to their short-term nature they are measured at amortised cost and not discounted. The amounts
are unsecured and are usually paid within 30 days of recognition.
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at
amortised cost. Any difference between the proceeds and the redemption amount is recognised in profit or loss over the period
of the borrowings using the effective interest method. Borrowing costs on the establishment of loan facilities are recognised as
transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the
fee is deferred until the draw down occurs.
Borrowings are removed from the consolidated statement of financial position when the obligation specified in the contract is
discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished
or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is
recognised in profit or loss as other income or finance costs.
Borrowings are classified as current liabilities unless the consolidated entity has an unconditional right to defer settlement of
the liability for at least 12 months after the reporting period.
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks and other short-term highly liquid investments
with original maturities of less than 3 months.
Issued Capital
Ordinary shares are classified as equity. Transaction costs (net of tax where the deduction can be utilised) arising on the issue of
ordinary shares are recognised in equity as a reduction of the share proceeds received.
Share Based Payments and Performance Rights
The Company makes equity-settled share-based payments to directors, employees and other parties for services provided or the
acquisition of exploration assets. Where applicable, the fair value of the equity is measured at grant date and recognised as an
expense over the vesting period, with a corresponding increase to an equity account. The fair value of shares is ascertained as
the market bid price. The fair value of options is ascertained using a Black Scholes option pricing model. The fair value of
performance rights with no market conditions is determined by reference to the share price at grant. Where applicable, the
number of shares options and performance rights expected to vest is reviewed and adjusted at each reporting date such that the
amount recognised for services received as consideration for the equity instruments granted shall be based on the number of
equity instruments that eventually vest.
Where the fair value of services rendered by other parties can be reliably determined, this is used to measure the equity-settled
payment.
Interest income
Interest income is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.
Elementos Limited Annual Report for the year ended 30 June 2024 75
Employee Benefits
Short-term employee benefit obligations
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled wholly within 12
months after the end of the reporting period are recognised in liabilities in respect of employees' services rendered up to the end
of the reporting period and are measured at amounts expected to be paid when the liabilities are settled.
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST (or overseas VAT), except where the amount of GST
incurred is not recoverable. In these circumstances the GST (or overseas VAT) 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 consolidated statement of financial position are
shown inclusive of GST. Cash flows are presented in the consolidated statement of cash flows on a gross basis except for the
GST component of investing and financing activities which are disclosed as operating cash flows.
Foreign Currency Transactions and Balances
Functional and presentation currency
The functional and presentation currency of Elementos Ltd and its Australian subsidiaries is Australian dollars ($A).
Transactions and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the
transaction. Foreign currency monetary items are translated at the year-end exchange rate. 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 measured. Exchange differences arising on the
translation of monetary items are recognised in profit or loss, except where deferred in equity as a qualifying cash flow or net
investment hedge.
Group Companies
The financial results and position of foreign operations whose functional currency is different from the Company’s presentation
currency are translated as follows:
assets and liabilities are translated at period-end exchange rates prevailing at that reporting date;
income and expenses are translated at average exchange rates for the period;
accumulated losses are translated at the exchange rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign operations are recognised in other comprehensive income.
Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be
received and the group will comply with all attached conditions.
Government grants relating to costs are deferred and recognised in the profit or loss over the period necessary to match them
with the costs that they are intended to compensate.
Government grants relating to exploration and evaluation assets that have been capitalised are recognised by deducting the grant
received from the carrying amount of the exploration and evaluation asset recognised on the consolidated statement of financial
position.
Elementos Limited Annual Report for the year ended 30 June 2024 76
Earnings Per Share (EPS)
Basic earnings per share is calculated by dividing the loss attributable to equity holders of the Company, excluding any costs of
servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial
period adjusted for any bonus elements in ordinary shares issued during the period.
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.
New and Amended Standards and Interpretations Adopted During the Year
There were no new or revised accounting standards adopted that had any impact on the Group’s accounting policies and required
retrospective adjustments.
New Standards and Interpretations not yet adopted
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2024 reporting
periods. The consolidated entity has decided against early adoption of these standards. The consolidated entity’s has assessed
the impact of these new standards that are not yet effective and determined that they are not expected to have a material impact
to the Group’s financial statements in the current or future reporting periods and on foreseeable future transactions.
Fair Values
Fair values may be used for financial asset and liability measurement as well as for sundry disclosures. Fair value is the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. It is based on the presumption that the transaction takes place either in the principal market for the asset or
liability or, in the absence of a principal market, in the most advantageous market. The principal or most advantageous market
must be accessible to, or by, the Group.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability assuming that
market participants act in their best economic interest. The fair value measurement of a non-financial asset takes into account
the market participant's ability to generate economic benefits by using the asset at its highest and best use or by selling it to
another market participant that would use the asset at its highest and best use. In measuring fair value, the Group uses valuation
techniques that maximise the use of observable inputs and minimise the use of unobservable inputs.
Critical Accounting Estimates and Judgements
The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and
best available current information. Estimates assume a reasonable expectation of future events and are based on current trends
and economic data, obtained both externally and within the Group.
Key Judgements:
Exploration and Evaluation Assets
The Group performs regular reviews on each area of interest to determine the appropriateness of continuing to carry forward
costs in relation to that area of interest. These reviews are based on detailed surveys and analysis of drilling results performed to
reporting date. Exploration and evaluation assets at 30 June 2024 were $20,959,205 (2023: $19,007,033). Based on a review
performed as at 30 June 2024, the Directors determined that it is still appropriate to continue capitalising costs in relation to the
Group's areas of interest.
Elementos Limited Annual Report for the year ended 30 June 2024 77
NOTE 2: EXPENSES
30 June 2024
30 June 2023
$
$
Included in expenses are the following items:
Depreciation
61,096
51,319
ASX, ASIC, share registry expenses
72,658
99,734
Business development and investor relations costs
100,533
141,951
Legal fees
36,122
35,522
Insurances
40,355
47,797
Audit, tax and external accounting fees
88,346
103,292
Interest expense
17,896
3,690
Employee benefits expense comprises:
Salaries and wages
842,880
854,865
Consulting fees
233,460
349,734
Superannuation
78,826
84,389
Share based payment expense
(373,902)
278,323
Annual leave expensed
17,911
35,936
NOTE 3: INCOME TAX EXPENSE
30 June 2024
30 June 2023
$
$
The prima facie tax on the operating loss is reconciled to income tax
expense as follows:
Prima facie tax/ (benefit) on loss from ordinary activities before income tax
at 30% (2023: 25%)
(382,963)
(556,327)
Adjust for tax effect of:
Non-deductible / (non-assessable) amounts
(90,809)
97,050
Tax loss not recognised (current year and true up)
471,974
458,786
Under/Over
1,798
491
Income tax expense/(benefit)
-
-
Deferred tax assets not recognised, the net benefit of which will only be realised if the conditions for deductibility as set out in
Note 1 occur:
Temporary differences
-
-
Tax losses
6,827,625
5,347,629
The Group has carried forward tax losses of $29,051,411 in Australia, which must satisfy the Continuity of Ownership Test, or failing
that, the Same Business Test, in order to be utilised in the future. Elementos Ltd failed the Continuity of Ownership Test on 4 January
2019. As a result, tax losses incurred prior to this date will need to satisfy the Same Business Test or Similar Business Test, in order
for them to be available in future years.
Elementos Limited Annual Report for the year ended 30 June 2024 78
NOTE 4: CASH AND CASH EQUIVALENTS
30 June 2024
30 June 2023
$
$
Cash at bank and on hand
457,380
3,404,931
Short term deposits
45,834
44,723
503,214
3,449,654
NOTE 5: TRADE AND OTHER RECEIVABLES
30 June 2024
30 June 2023
$
$
GST & VAT receivable
222,154
287,333
222,154
287,333
As at year end, there were no material receivable balances that were past due and not impaired. All receivables as at 30 June
2024 were due within 60 days (2023: 60 days). The carrying value of trade receivables is considered a reasonable approximation
of fair value.
NOTE 6: EXPLORATION AND EVALUATION ASSETS
30 June 2024
30 June 2023
$
$
Exploration and evaluation expenditure carried forward in respect of areas
of interest are:
Exploration and evaluation phase - at cost
20,959,205
19,007,033
Movement in exploration and evaluation assets:
Opening balance - at cost
19,007,033
13,901,380
Capitalised exploration expenditure
2,235,250
4,315,361
Foreign exchange differences
(283,078)
790,292
Carrying amount at the end of the year
20,959,205
19,007,033
Recoverability of the carrying amount of exploration assets is dependent on the successful development and commercial
exploitation of projects, or alternatively, through the sale of the areas of interest.
Elementos Limited Annual Report for the year ended 30 June 2024 79
NOTE 7: TRADE AND OTHER PAYABLES
30 June 2024
30 June 2023
$
$
Current:
Trade payables and accrued expenses
788,851
933,361
Short term employee benefits
126,380
108,470
Total payables (unsecured)
915,231
1,041,831
The average credit period on purchases of goods and services is 30 days. No interest is paid on trade payables.
NOTE 8: BORROWINGS
30 June 2024
30 June 2023
$
$
Non-Current:
Loan(a)
1,000,000
-
Total unsecured non-current liability
1,000,000
-
(a)
On 22 January 2024, the Company executed a loan facility with the Company’s Non-Executive Chairman Mr Andy Greig, a
related party, with the following terms:
•
Loan amount: $2,000,000
•
Loan term: 2 years
•
Interest rate: 6% on drawn funds
•
Unsecured
•
No conversion rights
•
No requirement to repay principal or pay interest during the loan term
•
Repayable by the Company at any time (during the loan term)
As at 30 June 2024, the balance outstanding was $1,000,000.
Elementos Limited Annual Report for the year ended 30 June 2024 80
NOTE 9: CONTRIBUTED EQUITY
Fully paid ordinary shares
2024
2023
No. of Shares
$
No. of Shares
$
Balance as at 1 July
194,740,085
39,262,318
177,128,963
36,165,450
Share issues:
Issue of shares
(a)
-
-
1,000,011
225,002
Issue of shares
(b)
-
-
16,611,111
2,990,000
Balance as at 30 June
194,740,085
39,262,318
194,740,085
39,380,452
Total transaction costs associated with
share issues
-
(118,134)
Net issued capital
39,262,318
39,262,318
Ordinary shareholders are entitled to participate in dividends and the proceeds on the winding up of the company in proportion
to the number of and amount paid on the shares held. Every ordinary shareholder present at a meeting in person or by proxy is
entitled to one vote on a show of hands or by poll. Ordinary shares have no par value.
Notes for the above table, relating to the year ended 30 June 2023, are:
(a) From 1 July 2022 to 31 August 2022 the following share options were exercised into ordinary shares of the Company:
•
1,000,011 options with an exercise price of $0.225 per option raising $225,002 (and 3,912,254 lapsed).
(b) On 5 April 2023, the Company announced that it had received commitments to complete a private placement of 16,611,111
shares to be issued at $0.18 per share. The transaction completed in two tranches as follows:
•
On 13 April 2023 11,444,444 shares were issued at $0.18 per share raising $2,060,000.
•
On 5 June 2023, following shareholder approval, 5,166,667 shares were issued at $0.18 per share raising $930,000.
Other Options
Note
Weighted
average
exercise price
(cents)
30 June 2024
No. of Options
Weighted
average
exercise
price (cents)
30 June 2023
No. of Options
Unlisted Share Options
-
-
-
-
Balance at the beginning of the
reporting period
-
-
22.5
4,912,265
Options issued during the period
-
-
Options exercised during the period:
-
-
22.5
(1,000,011)
Expired
-
-
22.5
(3,912,254)
Exercisable at end of year
-
-
-
-
The weighted average remaining contractual life of the options was nil (2023: nil).
Elementos Limited Annual Report for the year ended 30 June 2024 81
Director & Employee Options
Note
Weighted
average
exercise price
$
30 June 2024
No. of Options
Weighted
average
exercise
price
$
30 June 2023
No. of Options
Unlisted Share Options
0.40
11,040,000
1.10
1,800,000
Balance at the beginning of the
reporting period
1.10
1,800,000
1.10
1,800,000
Options issued during the period
16
0.30
9,600,000
-
-
Options exercised during the period
-
-
-
-
Expired
1.10
(360,000)
-
-
Balance at end of year
0.40
11,040,000
1.10
1,800,000
Exercisable at end of year
0.40
11,040,000
1.10
1,800,000
The weighted average remaining contractual life of the options was 1.9 years (2023: 1.9 years).
Performance Rights
During the 2022 annual financial period the Company issued 3,300,000 performance rights (on a post consolidation basis) to
Executives of the Company. The performance rights have both company milestone and employment retention vesting conditions.
During the period 2,100,000 performance rights expired leaving a balance of 1,200,000 unvested performance rights on issue. A
credit to the share-based payment expense of $713,212 was recorded during the period as performance rights either expired or
the probability of certain tranches of performance rights vesting reduced below the 50% threshold (2023: $360,557) see Note 16
for further details.
Capital Management
Exploration companies such as Elementos Limited are funded almost exclusively by share capital.
Management controls the capital of the Group to ensure it can fund its operations and continue as a going concern. Capital
management policy is to fund its exploration activities principally by way of equity, and where required, debt and/or project
finance. No dividend will be paid while the Group is in the exploration stage. There are no externally imposed capital requirements.
There have been no changes to the capital management policies during the year.
NOTE 10: RESERVES
Foreign Currency Translation Reserve
The foreign currency translation reserve recorded exchange differences arising on translation of foreign controlled subsidiaries.
Share-Based Payments Reserve
The share-based payment reserve is used to recognise the fair value of options and rights issued to employees and consultants.
This reserve can be reclassified to accumulated losses if options or rights lapse.
Elementos Limited Annual Report for the year ended 30 June 2024 82
NOTE 11: CASH FLOW INFORMATION
30 June 2024
30 June 2023
$
$
Reconciliation of Cash Flow from Operations with Loss after Income Tax:
Loss after income tax
(1,276,542)
(2,225,307)
Non-cash flows in loss from ordinary activities:
Depreciation
61,096
51,319
Equity settled compensation
(373,902)
278,323
Unrealised Foreign exchange
1,485
5,580
Changes in operating assets and liabilities:
(Increase)/Decrease in receivables
(32,013)
819,813
(Decrease)/Increase in payables
158,687
6,150
Cash flows from operations
(1,461,189)
(1,064,122)
Options and performance rights issued to employees and consultants for no cash consideration are disclosed in note 16.
Reconciliation of cash and non-cash movements in borrowings from financing activities
2023
Cash flows
Principal
converted to
equity
Loan balance
offset /
discounted
Non-cash
adjustments
2024
Lease liability
7,063
(46,754)
-
-
102,220
62,529
Borrowings
-
1,000,000
-
-
-
1,000,000
7,063
953,246
-
-
102,220
1,062,529
2022
Cash flows
Principal
converted to
equity
Loan balance
offset /
discounted
Non-cash
adjustments
2023
Lease liability
58,210
(51,147)
-
-
-
7,063
58,210
(51,147)
-
-
-
7,063
NOTE 12: LOSS PER SHARE
30 June 2024
30 June 2023
$
$
Net loss used in the calculation of basic and diluted EPS
(1,276,542)
(2,225,307)
Weighted average number of ordinary shares outstanding during the period
used in the calculation of basic EPS
194,740,085
180,796,145
Options and performance rights are considered potential ordinary shares. Options and performance rights issued are not
presently dilutive and were not included in the determination of diluted loss per share for the period.
Elementos Limited Annual Report for the year ended 30 June 2024 83
NOTE 13: COMMITMENTS
(a) Exploration Commitments
The Group has certain obligations to expend minimum amounts on exploration in tenement areas. These obligations may be varied
from time to time and are expected to be fulfilled in the normal course of operations of the Group.
The following commitments exist at reporting date but have not been brought to account. If the relevant option to acquire a mineral
tenement is relinquished, the expenditure commitment also ceases. The Group has the option to negotiate new terms or relinquish
the tenements and also to meet expenditure requirements by joint venture or farm-in arrangements.
30 June 2024
30 June 2023
$
$
Not later than 1 year
598,100
602,000
Total commitment
598,100
602,000
NOTE 14: CONTINGENT LIABILITIES
The Company’s wholly owned subsidiary, Minas de Estano De Espana (MESPA) is currently involved in legal proceedings in
Spain. While the referenced case is not considered material, and does not affect the Company’s title to the Oropesa Project, the
Company has appointed legal counsel who are defending the case in the Spanish courts. MESPA is defending the claim regarding
the alleged 2018 contemporaneous appointment and dismissal of Mr Jose Cereijo Soto as MESPA’s Con.Delegado (CEO) and an
alleged €300,000 payment he claims he was entitled to. The trial is set to be heard in relation to the claim around February 2025.
There were no other contingent liabilities at the end of the reporting period.
NOTE 15: RELATED PARTY TRANSACTIONS
Parent Entity
Elementos Limited is the legal parent and ultimate parent entity of the Group, owning 100% of all subsidiaries at 30 June 2024.
Subsidiaries
Interest in subsidiaries are disclosed in Note 20.
Key Management Personnel
30 June 2024
30 June 2023
$
$
Short-term employee benefits
700,282
688,239
Post-employment benefits
46,074
50,162
Share-based payments
(400,084)
294,770
346,272
1,033,171
On 22 January 2024, the Company executed a loan facility with the Company’s Non-Executive Chairman Mr Andy Greig, a related
party, for up to $2,000,000. The Company had drawn $1,000,000 under the loan facility at the reporting period, refer to Note 8 for
further details.
Elementos Limited Annual Report for the year ended 30 June 2024 84
NOTE 16: SHARE-BASED PAYMENTS
Options
During the reporting period the Company issued 9,600,000 options to directors and employees. The amount recognised for the
financial period under the share-based payment reserve amounted to $339,310. All options issued during the period have vested.
The fair value of options at grant date is determined using generally accepted valuation techniques that take into account exercise
price, the term of the option, the impact of dilution, the share price at grant date, the expected price volatility of the underlying
share, the expected dividend yield and the risk-free rate for the term of the option and an appropriate probability weighting to
factor the likelihood of the satisfaction of non-vesting conditions. The expected volatility is based on historic volatility, adjusted for
any expected changes to future volatility due to publicly available information.
Inputs used to value the share options are as follows:
Number of options
700,000
700,000
700,000
2,500,000
2,500,000
2,500,000
Grant date
11-Sep-2023
11-Sep-2023
11-Sep-2023
20-Nov-2023
20-Nov-2023
20-Nov-2023
Share price at grant date
$0.13
$0.13
$0.13
$0.115
$0.115
$0.115
Exercise price
$0.25
$0.30
$0.35
$0.25
$0.30
$0.35
Expected volatility
82.55%
82.55%
82.55%
82.55%
82.55%
82.55%
Risk-free interest rate
3.71%
3.71%
3.71%
3.71%
3.71%
3.71%
Expected life
2.8 years
2.8 years
2.8 years
2.6 years
2.6 years
2.6 years
Model used
Black Scholes
Black Scholes
Black Scholes
Black Scholes
Black Scholes
Black Scholes
Value per option
$0.04887
$0.04329
$0.03875
$0.03753
$0.03270
$0.02884
Outstanding Options
The outstanding balance of options is represented below:
Grant Date/s
Expiry Date
Exercise Price
Share options
30 June 2024
Share options
30 June 2023
31 May 2022
31 May 2025
$1.10
1,440,000
1,800,000
11 September 2023
30 June 2026
$0.25
3,200,000
-
11 September 2023
30 June 2026
$0.30
3,200,000
-
11 September 2023
30 June 2026
$0.35
3,200,000
-
The weighted average remaining contractual life of the options
outstanding at year end:
1.9 years
1.9 years
Elementos Limited Annual Report for the year ended 30 June 2024 85
Performance Rights
During the year ended 30 June 2022 3,300,000 (post consolidation) rights were issued to the Company’s Executives. During the
period 2,100,000 performance rights expired leaving a balance of 1,200,000 unvested performance rights on issue. The amount
recognised for the current period under the share-based payment reserve in relation to share based payments amounts to a credit
of $713,212 (2023: $360,557) as performance rights either expired or the probability of certain tranches of performance rights
vesting reduced below the 50% threshold.
The fair value of rights at grant date is determined using the share price at the grant date and the estimated probability of achieving
each vesting condition. These values are then recognised over the proposed vesting period.
Inputs used to value the performance rights are as follows:
Tranche
Number of
rights
Grant/
valuation
date
Vesting date and exercisable date
Expiry date
Exercise
price
Spot price
at grant
1 & 2
1,200,000
8-Jul-2021
Completion of Oropesa DFS and retention to 1-08-22
24 July 2024(a)
Nil
$0.43
3
300,000
8-Jul-2021
Granting of Oropesa Exploitation License and retention to 1-08-22
31 July 2024(a)
Nil
$0.43
4
600,000
8-Jul-2021
Oropesa project funding package and retention to 1-07-23
31-Jan-2025
Nil
$0.43
5
600,000
8-Jul-2021
Acquisition or merger and retention to 1-07-23
31 Jan 2024(b)
Nil
$0.43
6
300,000
8-Jul-2021
Completion of Cleveland PFS and retention to 1-07-23
31-Jan-2025
Nil
$0.43
7
300,000
8-Jul-2021
First production of mineral concentrate and retention to 1-07-25
31-Jan-2026
Nil
$0.43
(a) Performance rights deemed to be effectively expired on 30 June 2024 as the performance conditions had not been
achieved by the test date.
(b) Performance rights deemed to be effectively expired on 31 December 2023 as the performance conditions had not
been achieved by the test date.
Outstanding Rights
The outstanding balance of rights is represented below:
Grant Date/s
Expiry Date
Exercise Price
Rights
30 June 2024
Rights
30 June 2023
8 July 2021
24 July 2024(a)
Nil
-
1,200,000
8 July 2021
30 July 2024(a)
Nil
-
300,000
8 July 2021
31 January 2024(b)
Nil
-
600,000
8 July 2021
31 January 2025
Nil
900,000
900,000
8 July 2021
31 January 2026
Nil
300,000
300,000
(a) Performance rights deemed to be effectively expired on 30 June 2024 as the performance conditions had not been
achieved by the test date.
(b) Performance rights deemed to be effectively expired on 31 December 2023 as the performance conditions had not
been achieved by the test date.
None of the rights on issue at 30 June 2024 are vested and exercisable. The weighted average remaining contractual life of the
rights outstanding at year end is 0.84 years (2023: 1.18 years).
Elementos Limited Annual Report for the year ended 30 June 2024 86
NOTE 17: AUDITOR’S REMUNERATION
Remuneration for the auditor of the parent entity:
30 June 2024
30 June 2023
$
$
BDO Audit Pty Ltd and its related entities:
Auditing or reviewing the financial reports
64,000
59,158
64,000
59,158
NOTE 18: FINANCIAL RISK MANAGEMENT
(a) Financial Risk Management Policies
The Elementos Group's financial instruments comprises cash balances, receivables and payables, loans to and from subsidiaries.
The main purpose of these financial instruments is to provide finance for Group operations.
Treasury Risk Management
Key executives of the Company meet on a regular basis to analyse exposure and to evaluate treasury management strategies in
the context of the most recent economic conditions and forecasts.
The board of directors has overall responsibility for the establishment and oversight of the Group's risk management framework.
Management is responsible for developing and monitoring the risk management policies and reports to the board.
Financial Risks
The main risks the Group is exposed to through its financial instruments are interest rate risk, credit risk and liquidity risk. These
risks are managed through monitoring of forecast cash flows, interest rates, economic conditions and ensuring adequate funds
are available.
Interest Rate Risk
The Group's exposure to interest rate risk, which is the risk that a financial instrument's cash flows from interest will fluctuate as
a result of changes in market interest rates, arises in relation to the Group's bank balances. This risk is managed through careful
placement of surplus funds in interest bearing bank accounts.
The Company has performed sensitivity analysis relating to its exposure to interest rate risk. At year end, the effect on profit and
equity as a result of a 1% change in the interest rate, with all other variables remaining constant, is immaterial (2023: immaterial).
Liquidity Risk
Liquidity risk is the risk that the Group will not be able meet its financial obligations as they fall due. This risk is managed by
ensuring, to the extent possible, that there is sufficient liquidity to meet liabilities when due, without incurring unacceptable losses
or risking damage to the Group's reputation.
The Group's activities are funded from equity and where required and available debt and/or project finance.
Credit Risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at reporting date to recognised
financial assets, is their carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of
financial position and notes to the financial statements.
Elementos Limited Annual Report for the year ended 30 June 2024 87
Credit risk arises from exposures to deposits with financial institutions and sundry receivables.
Credit risk is managed and reviewed regularly by key executives. The key executives monitor credit risk by actively assessing the
rating quality and liquidity of counter parties:
only banks and financial institutions with an ‘A’ rating are utilised; and
all other entities are rated for credit worthiness taking into account their size, market position and financial standing.
At 30 June 2024, there was no concentration of credit risk, other than bank balances and on geographical basis with most financial
assets in Australia (2023: nil).
(b) Financial Instrument Composition and Contractual Maturity Analysis
30 June 2024
30 June 2023
$
$
Financial assets:
Within 6 months:
cash & cash equivalents
503,214
3,449,654
receivables (i)
222,154
287,333
725,368
3,736,987
Financial liabilities:
Within 6 months:
payables (i)
(915,231)
(1,041,831)
Within 12 months:
Lease liabilities
(55,601)
(7,117)
Greater than 12 months:
Lease liabilities
(9,346)
-
Borrowings(ii)
(1,104,384)
-
(2,084,562)
(1,048,948)
(i)
Non-interest bearing. The contractual cash flows do not differ to the carrying amount.
(ii)
Interest bearing with a weighted average interest rate of 6% per annum.
(c) Fair Values
Fair values of financial assets and financial liabilities are materially in line with carrying values due to their short term nature.
NOTE 19: SEGMENT REPORTING
Operating segments have been determined on the basis of reports reviewed by the board of directors (chief operating decision
makers) in assessing performance and determining the allocation of resources. The Group is managed primarily on a geographic
basis, that is, the location of the respective areas of interest (tenements) in Australia and Spain. Operating segments are
determined on the basis of financial information reported to the board of directors.
Accordingly, management currently identifies the Group as having two reportable segments, being Australia and Spain.
Basis of accounting for purposes of reporting by operating segments.
Elementos Limited Annual Report for the year ended 30 June 2024 88
(a) Accounting policies adopted
Unless stated otherwise, all amounts reported to the Board of Directors, being the chief decision maker with respect to operating
segments, are determined in accordance with accounting policies that are consistent to those adopted in the annual financial
statements of the Group.
(b) Segment Assets
Where an asset is used across multiple segments, the asset is allocated to that segment that receives majority economic value
from that asset. In the majority of instances, segment assets are clearly identifiable on the basis of their nature and physical
location.
(c) Segment Liabilities
Liabilities are allocated to segments where there is a direct nexus between the incurrence of the liability and the operations of
the segment. Segment liabilities include trade and other payables, lease liabilities and borrowings.
2024
Australia
Spain
Intercompany
eliminations
Total
$
$
$
$
Current assets
13,638,127
273,394
(13,144,778)
766,743
Non-current assets
6,821,968
14,353,665
-
21,175,633
Total assets
20,460,095
14,627,059
(13,144,778)
21,942,376
Current liabilities
717,957
13,395,265
(13,144,778)
968,444
Non-current liabilities
1,009,316
-
-
1,009,316
Total liabilities
1,727,273
13,395,265
(13,144,778)
1,977,760
Contributed equity
36,262,318
3,000,000
-
39,262,318
Reserves
736,155
(58,200)
-
677,955
Accumulated losses
(18,265,651)
(1,710,006)
-
(19,975,657)
Total equity
18,732,822
1,231,794
-
19,964,616
Loss for the period
(1,121,309)
(155,233)
-
(1,276,542)
Other comprehensive income
for the period
-
(298,818)
-
(298,818)
Total comprehensive income
for the period
(1,121,309)
(454,051)
-
(1,575,360)
Elementos Limited Annual Report for the year ended 30 June 2024 89
2023
Australia
Spain
Intercompany
eliminations
Total
$
$
$
$
Current assets
14,301,676
399,715
(10,955,042)
3,746,349
Non-current assets
6,348,392
12,868,031
-
19,216,423
Total assets
20,650,068
13,267,746
(10,955,042)
22,962,772
Current liabilities
422,034
11,581,902
(10,955,042)
1,048,894
Non-current liabilities
-
-
-
-
Total liabilities
422,034
11,581,902
(10,955,042)
1,048,894
Contributed equity
36,262,318
3,000,000
-
39,262,318
Reserves
1,110,058
240,617
-
1,350,675
Accumulated losses
(17,144,342)
(1,554,773)
-
(18,699,115)
Total equity
20,228,034
1,685,844
-
21,913,878
Loss for the period
(1,958,134)
(267,173)
-
(2,225,307)
Other comprehensive income
for the period
-
744,148
-
744,148
Total comprehensive income
for the period
(1,958,134)
476,975
-
(1,481,159)
NOTE 20: SUBSIDIARIES
The consolidated financial statements incorporate the assets, liabilities and results of the following wholly-owned subsidiaries in
accordance with the accounting policy described in Note 1:
Country of
incorporation
Ownership interest
2024
2023
Rockwell Minerals Pty Ltd
Australia
100%
100%
Rockwell Minerals (Tasmania) Pty Ltd
Australia
100%
100%
Elementos Minerales S.A.
Argentina
100%
100%
Elementos Chile Limitada
Chile
100%
100%
Elementos Spain Pty Ltd
Australia
100%
100%
Minas de Estano de Espana, S.L.U
Spain
100%
100%
Southern Spain Tin Mining Group Holdings, S.L
Spain
100%
-
Southern Spain Exploration Company, S.L
Spain
100%
-
NOTE 21: EVENTS AFTER REPORTING PERIOD
Subsequent to the reporting period the following occurred:
•
On 1 August 2024, the Company announced that it had received commitments to complete a private placement of 26,850,746
shares to be issued at $0.095 per share with one option for every two shares, exercisable at $0.18 by 31 January 2026. The
transaction will complete in two tranches as follows:
-
On 12 August 2024 14,826,317 shares were issued at $0.095 per share raising $1,408,500 and 7,413,161 options.
Elementos Limited Annual Report for the year ended 30 June 2024 90
-
Following the Annual General Meeting planned for November 2024, 12,024,429 shares with an issue price of $0.095 and
6,012,216 options will be issued. Of this amount, 11,592,850 shares and 5,796,426 options will be subject to shareholder
approval.
•
On 1 August 2024, the Company announced that it would conduct an Entitlement Offer to shareholders on a 1 for 6 basis with
an issue price of $0.095 per share with one option for every two shares, exercisable at $0.18 by 31 January 2026.
•
On 27 August 2024, the Company announced the award of four additional tenements in the Cordoba Province of Spain, by the
Junta de Andalucia. Three of the new tenements are located to the west and north-east of the Company’s existing Oropesa
Tin Project. The remaining independent tenement is located ~7km to the South of the Oropesa Tin Project.
Other than the events noted above, there are no other matters or circumstances that have arisen since the end of the year
which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state
of affairs of the Group in future financial years.
NOTE 22: PARENT ENTITY INFORMATION
The following information relates to the parent entity, Elementos Limited at 30 June 2024. This information has been prepared using
consistent accounting policies as presented in Note 1 except for the Investments in subsidiaries which are accounted for at cost,
less any impairment, in the parent entity.
30 June 2024
30 June 2023
$
$
Current assets
493,024
3,346,308
Non-current assets
21,208,291
18,999,029
Total assets
21,701,315
22,345,337
Current liabilities
727,383
431,459
Non-current liabilities
1,009,316
-
Total liabilities
1,736,699
431,459
Contributed equity
55,157,849
55,157,849
Reserves
736,156
1,110,058
Accumulated losses
(35,929,389)
(34,354,029)
Total equity
19,964,616
21,913,878
Loss for the period
(1,575,360)
(1,481,159)
Other comprehensive income for the period
-
-
Total comprehensive income for the period
(1,575,360)
(1,481,159)
The Company has no contingent liabilities, nor has it entered into any guarantees in relation to the debts of its subsidiaries (2023:
nil).
The Company has not entered into any contractual commitments for the acquisition of property, plant and equipment (2023: nil).
NOTE 23: DIVIDENDS & FRANKING CREDITS
There were no dividends paid or recommended during the financial year. There are no franking credits available to the
shareholders of the Company.
Elementos Limited Annual Report for the year ended 30 June 2024 91
Basis of Preparation
This Consolidated Entity Disclosure Statement (CEDS) has been prepared in accordance with the Corporations Act 2001. It
includes certain information for each entity that was part of the consolidated entity at the end of the financial year.
Determination of Tax Residency
Section 295 (3A) of the Corporations Act 2001 defines tax residency as having the meaning in the Income Tax Assessment Act 1997.
The determination of tax residency involves judgement as there are currently several different interpretations that could be
adopted, and which could give rise to a different conclusion on residency. It should be noted that the definitions of ‘Australian
resident’ and ‘foreign resident’ in the Income Tax Assessment Act 1997 are mutually exclusive. This means that if an entity is an
‘Australia resident’ it cannot be a ‘foreign resident’ for the purposes of disclosure in the CEDS.
In determining tax residency, the consolidated entity has applied the following interpretations:
Australian tax residency
The consolidated entity has applied current legislation and judicial precedent, including having regard to the Tax Commissioner’s
public guidance in Tax Ruling TR 2018/5 and PCG 2018/9.
Foreign tax residency
Where necessary, the consolidated entity has used independent tax advisers in foreign jurisdictions to assist in determining tax
residency and ensure compliance with applicable foreign tax legislation.
Type of Entity
% of share
capital held
Country of
Incorporation
Australian
Resident or
foreign resident
(for tax purposes)
Foreign tax
jurisdiction for
foreign residents
Elementos Limited
Body Corporate
N/A
Australia
Australia
N/A
Rockwell Minerals Pty Ltd
Body Corporate
100%
Australia
Australia
N/A
Rockwell Minerals
(Tasmania) Pty Ltd
Body Corporate
100%
Australia
Australia
N/A
Elementos Minerales S.A.
Body Corporate
100%
Argentina
Foreign
Argentina
Elementos Chile Limitada
Body Corporate
100%
Chile
Foreign
Chile
Elementos Spain Pty Ltd
Body Corporate
100%
Australia
Australia
N/A
Minas de Estano de Espana,
S.L.U
Body Corporate
100%
Spain
Foreign
Spain
Southern Spain Tin Mining
Group Holdings, S.L
Body Corporate
100%
Spain
Foreign
Spain
Southern Spain Exploration
Company, S.L
Body Corporate
100%
Spain
Foreign
Spain
Consolidated Entity Disclosure Statement
As at 30 June 2024
Elementos Limited Annual Report for the year ended 30 June 2024
92
The directors of the Company declare that:
1.
The attached financial statements and notes are in accordance with the Corporations Act 2001, including:
a.
complying with Australian Accounting Standards and Interpretations which, as stated in accounting policy note
1 to the financial statements, constitutes explicit and unreserved compliance with International Financial
Reporting Standards (IFRS); and
b.
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2024 and of its
performance for the financial year ended on that date.
2.
The managing director and chief financial officer have each declared under section 295A that:
a.
the financial records of the Company for the financial year have been properly maintained in accordance with
section 286 of the Corporations Act 2001;
b.
the financial statements and notes for the financial year comply with the Australian Accounting Standards and
Interpretations; and
c.
the financial statements and notes for the financial year give a true and fair view.
3.
In the directors' opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable.
4.
The information disclosed in the attached consolidated entity disclosure statement is true and correct.
This declaration is made in accordance with a resolution of the board of directors.
Joe David
Managing Director
20 September 2024
Brisbane, Queensland
Directors’ Declaration
Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au
Level 10, 12 Creek Street
Brisbane QLD 4000
GPO Box 457 Brisbane QLD 4001
Australia
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
INDEPENDENT AUDITOR'S REPORT
To the members of Elementos Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Elementos Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2024, 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 report, including material accounting policy information, the consolidated entity
disclosure statement and the directors’ declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
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 in the financial report which describes the events and/or conditions which
give rise to the existence of a material uncertainty that may cast significant doubt about the group’s
ability to continue as a going concern and therefore the group may be unable to realise its assets and
discharge its liabilities in the normal course of business. Our opinion is not modified in respect of this
matter.
93
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
Carrying value of exploration and evaluation assets
Key audit matter
How the matter was addressed in our audit
The Group recognises exploration and
evaluation assets in accordance with the
Group’s accounting policy for exploration and
evaluation assets as set out in Note 1 and
Note 6 in the financial report.
The recoverability of exploration and
evaluation assets is a key audit matter due to:
•
the significance of the total balance; and
•
the level of procedures undertaken to
evaluate management’s application of the
requirements of AASB 6 Exploration for
and Evaluation of Mineral Resources
(‘AASB 6’) in light of any indicators of
impairment that may be present.
Our procedures included, but were not limited to,
the following:
•
Obtaining evidence that the Group has valid
rights to explore in the areas represented by the
capitalised exploration and evaluation
expenditure by obtaining supporting
documentation and considering whether the
Group maintains the tenements in good
standing.
•
Making enquiries of management with respect to
the status of ongoing exploration programs in
the respective areas of interest, assessing the
Group's cash flow budget for the level of
budgeted spend on exploration projects, and
held discussions with Directors of the Group as
to their intentions and strategy.
•
Enquiring of management, reviewing ASX
announcements, and reviewing directors'
minutes to ensure that the Group had not
decided to discontinue activities in any
applicable areas of interest and to assess
whether there are any other facts or
circumstances that existed to indicate
impairment testing was required.
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 2024, but does not include the
financial report and the auditor’s report thereon.
94
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
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:
a)
the financial report that gives a true and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001 and
b)
the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i) the financial report that gives a true and fair view and is free from material misstatement, whether
due to fraud or error; and
ii) the consolidated entity disclosure statement that is true and correct and is free of 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 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 the financial report is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
95
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included on pages 44 to 50 of the directors’ report for the
year ended 30 June 2024.
In our opinion, the Remuneration Report of Elementos Limited, for the year ended 30 June 2024,
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.
BDO Audit Pty Ltd
A J Whyte
Director
Brisbane, 20 September 2024
96
94
Elementos Limited Annual Report 30 June 2022