More annual reports from Equus Mining Limited:
2023 ReportAnnual
Report
2022
EQUUS MINING LIMITED
and its controlled entities
ABN 44 065 212 679
Corporate Directory
Directors
Mark Lochtenberg
Non-Executive Chairman
John Braham
Managing Director
Damien Koerber
Executive Director – Chief Operating Officer
Robert Yeates
Non-Executive Director
David Coupland
Non-Executive Director
Ryan Austerberry
Non-Executive Director
Company Secretary
Marcelo Mora
Principal Place of Business Level 2
and Registered Office
66 Hunter Street
Sydney NSW 2000
Australia
Telephone:
Facsimile:
(61 2) 9300 3366
(61 2) 9221 6333
Email address:
info@equusmining.com
Website:
www.equusmining.com
Share Registry
Advanced Share Registry Limited
110 Stirling Highway
Nedlands, Western Australia 6009
Telephone:
Facsimile:
(61 8) 9389 8033
(61 8) 9262 3723
Auditors
KPMG
Level 16, Riparian Plaza
71 Eagle Street
Brisbane QLD 4000
Stock Exchange Listings
Australian Securities Exchange
(Code – EQE)
Equus Mining Limited Annual Report 2022
Chairman’s Letter
Review of Operations
Corporate Governance Statement
Directors’ Report
Lead Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional Stock Exchange Information
Contents
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Equus Mining Limited Annual Report 2022
1
Chairman and Managing Director’s Letter
Dear fellow shareholders,
It gives me great pleasure to present the 2022 Annual Report for Equus Mining Limited (ASX:EQE) (Equus or
Company).
The Company is proud to have completed its acquisition of 100% of the Cerro Bayo Project from Mandalay
Resources effective 1 December 2021 and now owning 100% of all the mine infrastructure, including the
operational 0.5Mtpa Cerro Bayo flotation plant and stockpile processing, mining infrastructure, existing
mineral resources and 295 km2 mining claim package.
the mining methodology and introduced pre-
processing of feed material. Continued optimization
of mining, screening and processing of finer feed
is expected to provide improvements in gold and
silver feed grades.
The Company is well positioned and entering
an exciting phase in the Company’s strategy
towards becoming a significant near term gold-
silver producer at Cerro Bayo, and with growing
confidence in exploration potential combined with
operational processing infrastructure in place, we
firmly believe that it represents one of the more
compelling projects in a world class, gold-silver
producing district on the ASX.
We are greatly appreciative of your support
throughout the period and believe that the
Company will continue to increase value for
shareholders over the upcoming year. We especially
value our in-country staff for their efforts and
success achieved safely for the seamless change
of control of the Cerro Bayo Project to Equus and
welcome them into the team to execute the next
exciting growth phase of the Cerro Bayo Project.
Yours Sincerely
Mark H. Lochtenberg
Chairman
John Braham
Managing Director
This exciting milestone uniquely positions the
Company amongst its peers to leverage off a
fully operational plant producing gold and silver,
a significant existing resource base and a large,
highly prospective land package in what is
considered one of the premier epithermal gold-
silver mining provinces globally, located in a highly
ranked mining and investment jurisdiction.
During the year the Company is proud to have
accomplished an aggressive phase of exploration,
which delivered exciting drill results from a series
of compelling new targets ideally situated within
1km from the Cerro Bayo mine and processing
plant infrastructure. Importantly, the large scale
and high gold and silver grades of these new
targets, relative to styles of mineralization exploited
historically, provide high confidence for the capacity
of the district to host new, significant resources.
Additionally, a large portion of these results
were reported from close proximity to the JORC
compliant maiden Inferred Mineral Resource of
302,000 gold equivalent ounces announced by the
Company in December 2020, situated under and
peripheral to the historically mined Taitao Pit.
Equus continues to aggressively drill test these
high priority brownfields targets and is especially
excited with the planned drilling of these targets at
deeper levels which the Company interprets to hold
exceptional potential for discovery of further high-
grade mineralization. Furthermore, the Company
believes that compelling additional exploration
potential remains throughout the expansive 295km2
mining claim package at Cerro Bayo.
Equus has continued with processing of low-
grade stockpiles since acquisition on 1 December
2021 following the successful recommissioning
by Mandalay Resources of the Cerro Bayo
0.5Mtpa flotation plant and commencement of
processing of low-grade stockpiles on 20 February
2021. Although stockpile processing operations
have been impacted by inflationary pressures,
particularly higher fuel and transportation costs
during the first semester of 2022, to attain the
required cut-off grade to maintain a viable
operation, Equus has implemented changes to
2
Equus Mining Limited Annual Report 2022
Review of Operations
CERRO BAYO PROJECT ACQUISITION
CERRO BAYO PROJECT OVERVIEW
Following shareholder approval obtained on 27
November 20211, Equus completed its acquisition of
the Cerro Bayo Project from Mandalay Resources
effective 1 December 2021. The acquisition provided
a near zero cash outlay to acquire 100% of the
Cerro Bayo Project including the Project´s mining
properties, resources and mine infrastructure,
including the now fully operational plant.
Key Terms of the Acquisition
– The issue to Mandalay of Equus shares such
that Mandalay acquired a 19% shareholding in
Equus effective 1 December 2021 and a 2.25%
NSR on production from the Cerro Bayo mining
claims subsequent to production of 50,000 oz
Aueq.
– Equus holds the right to repurchase the NSR
at any time by paying Mandalay US$4M and
issuing US$2M in ordinary shares.
– Equus will assume the closure costs at Cerro
Bayo with a guarantee from Mandalay covering
50% of the closure costs at the Closing Date.
The Cerro Bayo Project lies within the northwest
extension of the premier, world class epithermal
silver-gold province titled the Deseado Massif, in
southern Chile (Figure 1). This epithermal province
hosts seven operating mines with cumulative past
production-remaining resources of approximately
30Moz Au equivalent, several of the largest of which
are owned by major gold-silver producers including
Newmont, Yamana Gold, Pan American Silver and
Hochschild Mining.
The Cerro Bayo Project is centred approximately
10km west of the township of Chile Chico (Figure
2). Throughout the 295km² Cerro Bayo mining
property there are 9 historical mines located within
15km of the fully operational Cerro Bayo 1,500 tpd
flotation processing plant for which historical
production between 1995-2017 totals approximately
0.65Moz Au and 45Moz Ag at average grades of 5.42
g/t AuEq2 (2.81 g/t Au, 196 g/t Ag)3.
Figure 1 – Cerro Bayo project regional location within the Deseado Massif epithermal Gold-Silver district showing operating
gold-silver mines, operators and cumulative Au and Ag past production-remaining resources
1ASX Announcement 25th Nov 2021 - Results of Meeting
ASX:EQE
1
2Gold Equivalent (AuEq) is based on the formula AuEq g/t = Au g/t + (Ag g/t / 75). The AuEq formula assumes a gold and silver price of
US$1,800/oz and US$24/oz respectively and similar recoveries for gold and silver. Gold and silver recovery assumptions are based on historical
performance of the Cerro Bayo processing plant
3Based on Mandalay Resources Corporation, Cerro Bayo Mine NI 43-101 Technical Reports dated May 14, 2010 & March 21, 2017 Report #2699
Equus Mining Limited Annual Report 2022
3
Review of Operations
PUERTO
CHACABUCO
AND PUERTO
AYSÉN
PUERTO
IBAÑEZ
CERRO DIABLO
Equus Mining
CERRO BAYO
Equus Mining
C
O
N
C
E
N
T
R
A
T
E
T
R
A
N
S
P
O
R
T
R
O
U
T
E
CHILE
CHICO
CHILE
EQUUS MINING
PROJECTS
LOS DOMOS
Equus Mining
10km
Figure 2 – Cerro Bayo Project district location positioned centrally to Equus Minings’ Los Domos and Cerro Diablo
satellite exploration projects
CERRO BAYO EXPLORATION POTENTIAL
AND MINERAL RESOURCES
Equus is aggressively advancing drill testing
of compelling newly generated high priority
brownfields drill targets, the majority of which
are located within 3km from the processing
plant and infrastructure at our Taitao-Appaloosa
Fault and Pegaso Targets, as well as systematic
surface exploration of >100 historically identified
veins throughout the Cerro Bayo district that
the Company considers underexplored (Figure
3). In parallel, throughout the expansive 295km2
mining claim package at Cerro Bayo, Equus is
also evaluating potential for future higher grade
feedstock for the plant based on the 2020 JORC
compliant inferred resource at Taitao of 302koz gold
equivalent at 2.5 g/t Au equivalent4, the remnant
NI 43.101 resource at the Marcela Mine (21.8KOz
gold, 2.74Moz silver with an average grade of 2.53
g/t gold, 318 g/t silver)5 and potential extensions
to mineralisation adjacent to the numerous other
historic mines throughout the Cerro Bayo Project.
4ASX Announcement – 22 Dec 2020 Maiden Inferred Mineral Resource Estimate, Cerro Bayo Project & Gold equivalent (AuEq) is based on the
formula AuEq g/t = Au g/t + 0.0128 x Ag g/t
5Based on Mandalay Resources Corporation, Cerro Bayo Mine NI 43-101 Technical Reports dated May 14, 2010 & March 21, 2017 Report #2699
4
Equus Mining Limited Annual Report 2022
CHILEARGENTINAARGENTINABRAZILPARAGUAYBOLIVIAPERUURUGUAY
Review of Operations
Figure 3 – Cerro Bayo Project Area, with Brownfields/Greenfields targets, historical mines and interpreted geology including
faults and veins
Based on Mandalay Resources Corporation, Cerro Bayo Mine NI 43-101 Technical Reports dated May 14, 2010. & March 21, 2017 Report #2699
ASX Announcement 25/05/21 - Standout Intersection Bolsters Droughtmaster Potential
Gold Equivalent (AuEq) is based on the formula AuEq g/t = Au g/t + (Ag g/t / 75)
1.
2.
3.
ASX:EQE
3
TAITAO- APPALOOSA FAULT
EXPLORATION DRILL RESULTS
During the March and June 2022 quarters and post
the reporting period, the Company announced
significant high-grade gold and silver drill results
from a newly defined zone peripheral to the Taitao
Pit, titled the Appaloosa Fault complex. This zone
comprises a potentially large, shallowly dipping,
high Au-Ag grade mineralised target extending
from the margins of the existing Taitao Mineral
Resource at depth to the east, towards the Pegaso II
and III Targets (Figures 4 and 5), throughout which
limited historical exploration drilling has been
conducted. Importantly, shallower portions of this
zone were previously interpreted as being part of
a localised low-grade stockwork zone within the
December 2020 Taitao Inferred Mineral Resource of
302k AuEq oz @ 2.5 g/t AuEq4.
During and post the reporting period up to 26 July
2022, a total of 5,029 metres in 26 holes (CBD080-
CBD104) had been drilled on the Appaloosa Fault-
breccia target, broadly testing an approximate
500m strike length and down to approximately
150m down-dip along the structure. The majority
of closer spaced drilling was centred below and to
the east of the central eastern margin of the Taitao
Pit. This drilling was focused on testing extensions
of epithermal vein-hydrothermal breccia hosted in
the 10-40m wide, low-moderate (30-60°) easterly
dipping fault, both along strike and down dip.
Equus Mining Limited Annual Report 2022
5
Review of Operations
Significant intercepts from these holes included6,7:
– CBD080:
› 0.89m @ 12.4 g/t AuEq² (1.8 g/t Au and 800.4
g/t Ag) from 45.31m
›
1.61m @ 6.23 g/t AuEq² (6.1 g/t Au and 9.8 g/t
Ag) from 153.3m
– CBD081:
› 0.73m @ 23.64 g/t AuEq² (3.64 g/t Au and
1500.0 g/t Ag) from 56.1m
› 2.44m @ 6.73 g/t AuEq² (6.13 g/t Au and 44.5
g/t Ag) from 135.91m including
› 0.76m @ 14.44 g/t AuEq² (13.45 g/t Au, 74.0 g/t
Ag) from 136.72m
– CBD082:
› 4.14m @ 17.9 g/t AuEq² (11.0 g/t Au, 520.0 g/t
Ag) from 92.01m (Photo 1) including
Additionally, holes CBD084 and CBD086 were
drilled approximately 400m to the north of hole
CBD082 for which the more significant results
include:
– CBD084
›
1.8m @ 4.42 g/t AuEq² (3.95 g/t Au, 35.45 g/t
Ag) from 175.61m including
0.51m @ 11.06 g/t AuEq² (10.3 g/t Au, 57.0 g/t
Ag) from 175.61m
Drill intersections from progressively shallower,
interpreted up-dip extensions of the higher-grade
intercepts mentioned above, approximately 60m
below and 80m to the east of the base of the Taitao
open pit, include :
– CBD097:
› 5.82m @ 4.38 g/t AuEq² (1.76 g/t Au, 195.84 g/t
Ag) from 60.53m
including: 1.56m @ 5.9 g/t AuEq² (2.6 g/t Au,
250.4 g/t Ag) from 63.66m
› 2.64m @ 26.1 g/t AuEq² (16.3 g/t Au, 736.1 g/t
Ag) from 92.01m
– CBD096:
› 0.42m @ 18.9 g/t AuEq² (18.65 g/t Au and 19.0
g/t Ag) from 105.73m
› 0.59m @ 6.1 g/t AuEq² (3.66 g/t Au and 182.0
g/t Ag) from 134.92m
– CBD083:
› 0.73m @ 31.71 g/t AuEq² (16.97 g/t Au, 1105.1
g/t Ag) from 117.12m including
› 5.83m @ 3.16 g/t AuEq² (1.43 g/t Au, 130.1 g/t
Ag) from 58m
including: 0.73m @ 13.24 g/t AuEq² (4.73 g/t
Au, 638.0 g/t Ag) from 60.34m
Progressively shallower intercepts, to within
approximately 25m below the base of the Taitao
Pit, and which are encompassed in 10-15m
wide intervals of lower grade (0.3-0.5 g/t AuEq)
stockwork-breccia style mineralization, include8:
› 0.49 @ 46.67 AuEq² (24.80 g/t Au, 1,640 g/t
– CBD098:
Ag) from 117.36m
› 3.60m @ 3.20 g/t AuEq² (2.20 g/t Au, 74.77 g/t
Ag) from 172.51m including
›
1.49 @ 7.00 AuEq² (4.91 g/t Au, 157 g/t Ag)
from 174.62m
– CBD085:
› 7.5m @ 8.7 g/t AuEq² (6.0 g/t Au, 206.3 g/t Ag)
from 86.08m including
› 4.79m @ 0.85 g/t AuEq² (0.52 g/t Au, 25.3 g/t
Ag) from 51.99m
including: 0.38m @ 3.1 g/t AuEq² (1.8 g/t Au,
98.0 g/t Ag) from 54.51m
– CBD099:
› 4.45m @ 2.12 g/t AuEq² (1.04 g/t Au, 80.3 g/t
Ag) from 39.27m
including: 0.97m @ 4.4 g/t AuEq² (1.65 g/t Au,
206 g/t Ag) from 40.28m
– CBD100:
› 2.47m @ 24.1 g/t AuEq² (17.7 g/t Au, 483.9 g/t
› 5.22m @ 1.56 g/t AuEq² (1.3 g/t Au, 20.0 g/t Ag)
Ag) from 87.87m
from 35.68m
including: 0.6m @ 4.12 g/t AuEq² (2.73 g/t Au,
105.0 g/t Ag) from 36.48m
6ASX Announcement 20 Jan 2022 – Cerro Bayo Exploration Update
7ASX Announcement 1 Apr 2022 – High Grade Mineralisation Intersected
6
Equus Mining Limited Annual Report 2022
Review of Operations
Drill intersections from progressively deeper,
interpreted down-dip extensions of the moderate-
grade intercepts mentioned above, approximately
40m below and 160m to the east respectively to the
base of the Taitao open pit, include8:
– CBD102:
› 8.76m @ 8.05 g/t AuEq² (4.9 g/t Au, 237.4 g/t
Ag) from 70.44m
including: 1.25m @ 29.3 g/t AuEq² (20.5 g/t Au,
667.0 g/t Ag) from 77.25m
– CBD103:
› 29.91m @ 1.84 g/t AuEq² (1.0 g/t Au, 63.5 g/t
Ag) from 84.81m
including: 8.0m @ 3.53 g/t AuEq² (1.4 g/t Au,
162.7 g/t Ag) from 84.81m
– CBD104:
›
1.46m @ 12.1 g/t AuEq² (6.46 g/t Au, 422 g/t Ag)
from 83.99m
› 4.89m @ 8.5 g/t AuEq² (4.31 g/t Au, 313.9 g/t
Ag) from 101.57m
including: 3.0m @ 12.81 AuEq² (6.43 g/t Au,
478.4 g/t Ag) from 103.46m
› 7.44m @ 5.68 g/t AuEq² (4.59 g/t Au, 81.57 g/t
Ag) from 117.46m
including: 2.23m @ 12.61 AuEq² (10.34 g/t Au,
170.0 g/t Ag) from 119.88m
8ASX Announcement 26 Jul 2022 – Cerro Bayo Update
Equus Mining Limited Annual Report 2022
7
Review of Operations
Figure 4 – Plan view showing location of the Taitao-Appaloosa Fault, Pegaso II- V targets, location of cross section A -A´(see
Figure 5) and historic underground mine workings and summary resources of the Delia, Dagny, Fabiola and Coyita Mines,
and historic production of the Taitao Pit.
Collectively, the intercepts in the above holes relate
to vein-breccia mineralisation interpreted to be
hosted within a large scale, 10-40m wide, gently
(30-60°) easterly dipping normal fault-breccia
complex, the westernmost surface expression of
which broadly corresponds to the Taitao Pit (Figures
3 & 4). Historical production from the Taitao Pit
from between 1995-2002 totalled approximately
153Koz AuEq2 @ 3.4 g/t AuEq2 (1.9 g/t Au, 115 g/t Ag)9
over pit dimensions of <35m depth x 30-200m wide
x 1,200m length. This fault is interpreted to extend
down dip at depth towards the sub vertical dipping
Pegaso II and III structures and presents a series
of highly prospective additional targets below the
current level of drilling.
Importantly, the high-grade gold-silver
mineralization in these holes is comprised of
brecciated, massive to crudely banded chalcedonic
veining and vein clasts (Photo 1- hole CBD082), in
which the origin of the vein clasts is interpreted to
be from a potentially deeper source. This coupled
with the overall increasing grade distribution from
the multiple intercepts at differing elevations
between holes CBD096 to CBD104 strongly
suggests a vector of potentially increasing grade
with depth (i.e. down dip to the east and for which it
remains open).
Furthermore, the chalcedonic texture of veining
intersected in the above holes (the deepest of
which to date is at approximately 280m RL) is
commonly characteristic of lower temperature
and hence upper levels of low-sulphidation type
epithermal systems. The Pegaso II target structure,
defined approximately 450-500m east of current
drilling along the Appaloosa Fault (see Figure 5),
is interpreted to represent the higher level, north-
west extension of the nearest historic mine, Delia
NW, and possibly represents a sub-vertical splay,
emanating at depth, off the east dipping Appaloosa
Fault complex.
9Based on Mandalay Resources Corporation, Cerro Bayo Mine NI 43-101 Technical Reports dated May 14, 2010. & March 21, 2017 Report #2699
8
Equus Mining Limited Annual Report 2022
Review of Operations
Figure 5 – A-A´Section view showing a summary of Equus and historic drill results, interpreted mineralisation and
exploration targets along and at intersections of low and high angle splays along the Taitao-Appaloosa Fault and Pegaso
I-II zones (west to east).
Vein hosted mineralization mined from Delia
NW was emplaced throughout an approximate
150m vertical interval between lower elevations of
approximately 50m to 200m RL, as compared to
the 300m RL intercepts in holes CBD102 to CBD104.
Veining at Delia NW is characterized texturally by
higher temperature saccharoidal quartz than that
observed from veining intersected in the holes
CBD096 to CBD104.
The above comparative distribution of vein textures
also suggests potential for increases in grade with
depth exist down dip along the Appaloosa Fault.
Based on the above, the company believes that
highly prospective, deeper drill targets are provided
by both the along strike and down dip extension of
the large-scale Appaloosa Fault and particularly at
the intersection of it with the Pegaso II and other
subsidiary fault splays (See Figure 5).
Subsequent drilling will be focused along a +750m
long portion of the host fault complex broadly
extending from hole CBD084 to beneath the
operational plant infrastructure. Drilling is designed
to test the down dip extension of the Appaloosa
Fault structure at depth, east of the Taitao Pit, and
below the underground resource component of the
2020 Inferred Mineral Resource4.
The styles of mineralisation and alteration within
the Taitao Pit and that intersected in relatively
shallow drilling to date are characteristic of the
upper levels of a large, low-sulphidation type
epithermal system and hence it is interpreted
that compelling potential exists for grades to
considerably improve at depth along the gently
easterly dipping, normal fault complex.
Equus Mining Limited Annual Report 2022
9
Review of Operations
1.41m @ 11.1 g/t Au, 458 g/t Ag
1.23m @ 22.2 g/t Au, 1055 g/t Ag
0.78m @ 1.75 g/t Au, 140 g/t Ag
0.72m @ 1.52 g/t Au, 139 g/t Ag
Photo 1. CBD102 drill core displaying the high grade epithermal vein-breccia interval which returned 4.14m @ 17.9 g/t AuEq2
(11.0 g/t Au, 520.0 g/t Ag) from 92.01m -96.15m including 2.64m @ 26.1 g/t AuEq2 (16.3 g/t Au, 736.1 g/t Ag) from 92.01-94.65m
10
Equus Mining Limited Annual Report 2022
Review of Operations
PEGASO TARGET EXPLORATION
DRILL RESULTS
The Pegaso I-V Targets represent five high-priority
brownfield targets with a cumulative strike length
of more than 3.5km located within 2km from
the Cerro Bayo flotation plant (Figure 6). The
targets geologically comprise the interpreted,
underexplored north-western extensions of major
host faults to mineralisation mined historically in
the Delia, Dagny, Yasna-Fabiola and Coyita mines
which represent a combined 560,000oz AuEq²
past production-remnant resources inventory3.
Drill testing of the targets was focused on the
intersection of the host faults and favourable
stratigraphy for vein development beneath and
along strike of relatively shallow high-grade results
reported from low density and wide spaced historic
drilling.
The Pegaso exploration drill program commenced
in the previous reporting period for which the initial
focus was exploring potential extensions to high-
grade historical intercepts10 and beneath high Au-
Ag grade rock chip geochemical results that were
reported during that period11 & 12
During the reporting period, the Company
continued with systematic drill testing of the
Pegaso II-V Targets as part of a cumulative total 33
holes (9,574.3 m) diamond drill program.
Significant results reported during the reporting
period include:
– CBD061
› 0.81m @ 7.37 g/t AuEq² (3.81 g/t Au and 267
g/t Ag) from 89.91m.
– CBD062
› 0.92m @ 7.26 g/t AuEq² (3.83 g/t Au and 257
g/t Ag) from 87.62m
– CBD063
›
1.31m @ 4.92 g/t AuEq² (3.51 g/t Au, 106.1 g/t
Ag) from 187.39m
– CBD068
› 0.75m @ 6.91 g/t AuEq² (3.48 g/t Au, 257.0 g/t
Ag) from 153.05m
– CBD070
› 0.71m @ 8.66 g/t AuEq² (1.1 g/t Au, 568 g/t Ag)
from 102.65m
› 0.89m @ 4.98 g/t AuEq² (1.1 g/t Au and 291 g/t
Ag) from 145.0m
› 2.62m @ 4.89 g/t AuEq² (1.8 g/t Au and 229 g/t
Ag) from 166.81m
Significant results reported in the preceding
reporting period included:13 & 14
Pegaso II
– CBD051
Four principal subparallel veins were intersected by
this drilling, which returned high-grade gold and
silver results. Drilling to date has confirmed the
extension of high-grade mineralisation in multiple
structures along a significant portion of the 1km
long trend between the northeast extension of the
Taitao Pit along trend to within 250m of the Delia
NW mine (Figures 6 & 7).
› 0.35m @ 5.74 g/t AuEq² (3.37 g/t Au and 154
g/t Ag) from 151.45m
› 0.2m @ 7.29 g/t AuEq² (4.49 g/t Au and 182 g/t
Ag) from 258.95m
– CBD052
›
›
1.53m @ 4.26 g/t AuEq² (1.35 g/t Au and 189.14
g/t Ag) from 96m incl. 0.25m @ 5.73 g/t AuEq²
(1.6 g/t Au, 269.0 g/t Ag) from 96.47m
1.66m @ 5.22 g/t AuEq² (2.88 g/t Au and 152.25
g/t Ag) from 189.02m incl. 0.78m @ 9.03 g/t
AuEq² (5.11 g/t Au, 254.6 g/t Ag) from 189.9m
– CBD053
› 0.24m @ 8.05 g/t AuEq² (7.07 g/t Au and 63.8
g/t Ag) from 187.56m
– CBD054
› 0.38m @ 15.93 g/t AuEq² (5.84 g/t Au and 656
g/t Ag) from 169.27m
10ASX Announcement 13 Aug 2020 New Gold and Silver Targets at Cerro Bayo
11ASX announcement 25th Aug 2020 Sampling Delivers High Grade Silver Results
12ASX announcement 11 September 2020 High grade silver rock chip results at Cerro Bayo
13ASX Announcement 18 May 2021 - High Grade Pegaso Drill Results
14ASX Announcement 5 August 2021 – Further High Garde Gold Silver Results at Pegaso
Equus Mining Limited Annual Report 2022
11
Review of Operations
– CBD056
– DCO010
›
14.05m @ 2.62 g/t AuEq² (0.48 g/t Au and
139.21 g/t Ag) from 53.15 Incl. 2.77m @ 5.14
g/t AuEq² (1.09 g/t Au, 263.34 g/t Ag) from
55.95m
› 0.7m @ 6.35 g/t AuEq² (1.35 g/t Au and 324.79
g/t Ag) from 74.85m
› 0.68m @ 5.34 g/t AuEq² (2.25 g/t Au and 201.0
g/t Ag) from 87.47m
› 0.53m @ 7.74 g/t AuEq² (3.17 g/t Au and 297.0
g/t Ag) from 133.27m
– CBD057
› 0.41m @ 8.07 g/t AuEq² (5.62 g/t Au and 159
g/t Ag) from 18.29m
› 0.65m @ 5.25 g/t AuEq² (2.8 g/t Au and 159
g/t Ag) from 229.56m
Collectively these results correlate well with the
mineralised intercepts from the sparse historic
drilling along the Pegaso II trend (see Figure 7)
which include14:
– DCO001
› 7.04m @ 5.73 g/t AuEq² (3.37 g/t Au, 153.6 g/t
Ag) from 69.51m incl. 1.23m @ 12.26 g/t AuEq²
(7.57 g/t Au, 304.9 g/t Ag) from 69.51m
– DCO005
›
1.32m @ 9.72 g/t AuEq² (1.90 g/t Au, 508.61 g/t
Ag) from 29.8m
– DCO009
›
1.9m @ 7.49 g/t AuEq² (1.33 g/t Au, 400.43 g/t
Ag) from 191.7m
›
1.05m @ 25.12 g/t AuEq² (21.04 g/t Au, 265.74
g/t Ag) from 130.9m
– DCO015
›
1.4m @ 14.42 g/t AuEq² (5.23 g/t Au, 597.9
g/t Ag) from 129.75m incl. 0.45m @ 39.88
g/t AuEq² (14.95 g/t Au, 1620.4 g/t Ag) from
130.70m
– DLV13-049
› 4.10m @ 7.36 g/t AuEq² (6.74 g/t Au, 40.10 g/t
Ag) from 156.8m
– BPR260
› 2m @ 6.13 g/t AuEq² (4.41 g/t Au, 112.0 g/t Ag)
from 58.0m
Pegaso V Target
– CBD064
› 0.22m @ 36.4 g/t AuEq² (12.55 g/t Au and
1790 g/t Ag) from 27.14m
Further drill testing of the Pegaso II and III Targets
at deeper levels, is planned along the Pegaso II
and III Targets to further test this significant new
mineralised trend during the remainder of 2022-23,
particularly at prospective structural intersections
of it with the highly prospective, east dipping
Appaloosa major fault hosted vein/breccia.
12
Equus Mining Limited Annual Report 2022
Review of Operations
P O R V E N I R - C H A T I T O
M I N E
5
4
0
D
B
C
2.05m @ 7.29 g/t AuEq
0.59m @ 7.92 g/t AuEq
0.78m @ 8.60 g/t AuEq
0
500m
1
5
0
D
B
C
0.35m @ 5.74 g/t AuEq
0.20m @ 7.29 g/t AuEq
TAITAOPIT
6
4
0
D
B
C
0.40m @ 22.82 g/t AuEq
0.77m @ 6.20 g/t AuEq
CBD046
CBD045
CBD049
PEGASO IV
PEGASO V
CBD047
CBD051
CBD048
7
5
0
D
B
C
0.41m @ 8.07 g/t AuEq
0.53m @ 3.26 g/t AuEq
0.20m @ 5.28 g/t AuEq
0.65m @ 5.25 g/t AuEq
C
O
A
Y
p
p
I
T
r
o
A
x
M
1
I
4
N
0
E
k
O
z
A
u
E
q
@
Y
A
A
S
p
N
p
A
r
o
-
F
x
A
1
1
B
I
0
O
k
L
O
A
z
M
A
u
I
N
E
E
q
@
5
6
.
6
g
/
t
A
u
E
q
CBD056
CBD057
CBD052
CBD053
PEGASO III
3
5
0
D
B
C
1.32m @ 3.70 g/t AuEq
PEGASO II
D
A
A
G
p
p
N
Y
r
o
1,500 TPD
FLOTATION
PLANT
CBD054
CBD055
L
O
N
G S
E
C
TIO
N
4
5
0
D
B
C
0.38m @ 15.93 g/t AuEq
0.34m @ 4.71 g/t AuEq
0.73m @ 2.58 g/t AuEq
D
E
A
p
LIA N
pro
x 2
W
0
0
MIN
E
z A
O
k
u E
q @
M
x
1
I
N
0
9
E
k
O
z
A
u
E
q
@
5
.
2
5
g
/
t
A
u
E
q
5.9
2 g/t A
u E
q
g
/
t
A
u
E
q
PEGASO TARGETS
Mine tunnel infrastructure
T
Mine production/Remnant
Resources
Planned Pit Development
Brownfields Exploration Targets
Vein Trends
Historical Drill Intercepts (Au Equiv g/t)
0.1 - 2.0
2.0 - 5.0
>5.0
Results this release
Results previously released
20210804
6
5
0
D
B
C
14.05m @ 2.62 g/t AuEq
incl 8.05m @ 3.62 g/t AuEq
incl 2.77m @ 5.14 g/t AuEq
0.70m @ 6.35 g/t AuEq
0.68m @ 5.34 g/t AuEq
0.53m @ 7.73 g/t AuEq
1.26m @ 2.10 g/t AuEq
2
5
0
D
B
C
1.53m @ 4.29 g/t AuEq
1.66m @ 5.21 g/t AuEq
Incl 0.78m @ 9.03 g/t AuEq
Figure 6 – Plan view showing summary Pegaso II Target drill results and interpreted intersected vein trends and B-B’ long
section (presented in Figure 7)
SE
B
600RL
DCO001
DCO005
1.32m @9.72 AuEq65, 1.90 g/t Au, 508.61 g/t Ag
0
7
0
D
CBD053
B
C
1.32m @ 3.70AuEq65, 2.48g/t Au,
0.71m @ 8.66 g/t Au eq
2.62m @ 4.89 g/t Au eq
1
6
0
D
B
C
0.81m @ 7.37 g/t Au eq
0.46m @ 4.83 g/t Au eq
0.69 m @ 8.33 g/t Au eq
DCO002
2.38m @ 3.50 g/t AuEq65, 1.20 g/t
Au, 150.01 g/t Ag, from 141,50m
1.32m @3.54 g/t Au eq
3
5
0
D
B
C
1.19m @ 5.84 g/t g/t Au eq
0.41m @ 8.07 g/t AuEq65, 5.62 Au g/t, 159 g/t Ag, from
18.29m
0.53m @ 3.26 g/t AuEq65, 2.94 Au g/t, 20.70 g/t Ag, from
193.91m
0.20m @ 5.28g/t AuEq65, 3.84 g/t Au, 93.40 g/t Ag, from
0.41m @ 7.74 g/t Au eq
212.66m
0.20m @ 5.1 g/t Au eq
0.65m @ 5.25 g/t AuEq65, 2.80 g/t Au, 159 g/t Ag, from
0.65m @ 4.92 g/t Au eq
229.56m
CBD057
7
5
0
D
B
C
NW
B
600RL
2
6
0
D
B
C
5
0
0
O
C
D
1.32m @ 8.7 g/t Au eq
1
5
0
D
B
C
CBD051
0.35m @ 5.42 g/t Au eq
6
6
0
D
B
C
0,35m @ 5,74 g/t AuEq65, 3,37 g/t Au, 154 g/t Ag
from 151,45m
0.20m @ 7.29g/t AuEq65, 4.49 g/t Au, 182 g/t Ag,
0.21m @ 3.9 g/t g/t Au eq
0.20m @ 6.92 g/t Au eq
BRECHA-PORVENIR-CHATITO MINE
BRECHA-PORVENIR-CHATITO MINE
BRECHA-PORVENIR-CHATITO MINE
Approx mined out area
Approx mined out area
Approx mined out area
8
7.04m @ 5.73AuEq65, 3.37 g/t Au, 153.60 g/t
6
0
D
Ag, incl 1,23m@7,57 g/t Aum 304,9 g/t Ag
B
C
2.42 m @ 1.82 g/t Au eq
1.83m @ 2.5 g/t Au eq
0.75m @ 6.91 g/t Au eq
DELIA NORTHWEST MINE
Approx 200K Oz Au Eq @ 5,92 g/t Au Eq
Production/Remnant Resources
7.04m @ 5.42 g/t Au eq
1
0
0
O
C
D
DELIA MINE
Approx 200K Oz Au Eq @ 5,92 g/t Au Eq
Production/Remnant Resources
DELIA NORTHWEST MINE
Approx 200K Oz Au Eq
@ 5.92 g/t Au Eq
Production/Remnant Resources
4
5
0
D
B
C
0.38m @ 14.58 g/t Au eq
0.34m @ 4.54 g/t Au eq
0.73m @ 2.4 g/t Au eq
Coigues Temer contact
0RL
2
0
0
O
C
D
9
0
0
O
C
D
2.38m @ 3.2 g/t g/t Au eq
1.90m @ 6.67 g/t Au eq
DCO009
Coigues Temer Contact
I N T E R P R E T E D I N T E R S E C T I O N O F T A I T A O L O W A N G L E F A U L T & P E G A S O
TA R G E T
1.90m @ 7.49AuEq65, 1.33 g/t Au,
400.43 g/t Ag, from 191.70m
I
I
CBD045
0
1
0
0
O
C
D
DCO0010
0
CBD054
2
5
0
D
B
C
1.53m @ 3.87 g/t Au eq
1.66m @ 4.91 g/t Au eq
0.38m @15.93 g/t AuEq65, 5.84 g/tAu, 656
g/tAg from 169.27m
0.34m @ 4.71 g/t AuEq65, 3.39 g/tAu, 86.10
250m
g/tAg from 173.83m
0.73m @ 2.58 g/t AuEq65, 1.29 g/tAu, 84.20
g/tAg from 175.72m
CBD052
1.53m @4.29g/t AuEq65, 1.38 g/t Au, 189.13
3
1.31m @ 4.92 g/t g/t Au eq
6
g/t Ag from 96m
0
D
0.70m @ 6.53 g/t g/t Au eq
B
1.66m @5.21AuEq65, 2.87 g/t Au, 152.25
C
g/t Ag from 189,90m
Incl 0,78m@ 9,03 g/t AuEq65, 5,11 g/t Au,
254,65 g/t Ag
8
7
0
D
B
C
1.05m @ 25.12 g/t AuEq65, 21.04 g/t
Au, 265.74 g/t Ag, from 130.90m
14.1m @ 2.3 g/t Au eq
incl 2.77@ 4.6 g/t Au eq
0RL
0.45m @ 4.23 g/t g/t Au eq
0.52m @ 3.75 g/t g/t Au eq
0.39 m @ 4.48 g/t g/t Au eq
CBD056
0.70m @ 5.68 g/t Au eq
14.05m @ 2.62g/t AuEq65, 0.48 g/t Au, 139.21g/t Ag from 53,15m
6
5
incl 8,05m@ 3.62AuEq, 0.67Au, 191.34 Ag
0
D
B
incl 2.77@ 5.14AuEq65, 1.089Au, 263.33Ag from 55.95
C
0.70m @ 6.35 g/t AuEq65, 1.35 g/t Au, 324.79 g/t Ag, from 74.85m
0.68m @ 5.34 g/t AuEq65, 2.25 g/t Au, 201 g/t Ag, from 87.47m
0.53m @ 7.73g/t AuEq65, 3.17 g/t Au, 297g/t Ag, from 133.24m
1.26m @ 2.096g/t AuEq65, 1.71 g/t Au, 23.07g/t Ag, from 176.14m
0.68m @ 4.93 g/t Au eq
0.53m @ 7.13 g/t Au eq
Lower Temer Fm
5
4
0
D
B
C
2.05 m @ 7.2 g/t Au eq
0.59 m @ 7.4 g/t Au eq
2.98m @ 4.82 g/t Au, 36.64 g/t Ag,
0.78 m @ 8.56 g/t Au eq
from 9.10m
1.5 m @ 8.57 g/t Au eq
1.91m @ 3.97 g/t AuEq65, 3.82g/t Au,
9.65 g/t Ag, from 288.75m
2.35m @ 5.95 g/t AuEq65, 4.08g/t Au,
1.05m @ 24.58 g/t Au eq
121 g/t Ag, from 344.85m
PEGASO II LONG SECTION
LEGEND
Equus exploration
hole traces and collars
Historical Pierce points
SIGNIFICANT DRILL RESULTS
2
8
0
D
B
C
4.14m @ 17.9 g/t AuEq
Drill Hole, Downhole intercept length
and AuEq g/t = Au g/t + (Ag g/t /75)
Target
g/t Au eq is based on the formula
Au eq g/t = Au g/t + (Ag g/t /75)
Historical and EQE drill
intercept (Au Equiv g/t)
0.5 a 1.0
1.0 a 2.0
2.0 a 3.0
3.0 a 5.0
> = 5.0
Figure 7 – Pegaso II long section B-B´- showing summary Equus and historic drill result pierce points, interpreted
exploration target at the intersection of the low angle Appaloosa Fault and subvertical Pegaso II structure and
underground mine workings of the Delia NW mine
Equus Mining Limited Annual Report 2022
220124
13
Review of Operations
CERRO BAYO STOCKPILE PROCESSING
Equus has continued with processing of low-grade
stockpiles since acquisition on 1 December 2021
following the successful recommissioning by
Mandalay Resources of the Cerro Bayo 0.5Mtpa
flotation plant and commencement of processing
of low-grade stockpiles on 20 February 2021.
Production and sales results through the end of
November 2021 corresponded to the ownership of
Mandalay and have been reported by Mandalay.
Production and sales for the March 202215 and
June 202216 quarters correspond to the operation
under the ownership and control of Equus since 1
December 202117 (Tables 1-3) in which production for
the full year ended 30 June 2022 is also provided.
Overall, higher comparable production costs in
the June 2022 quarter related to the processing of
lower gold and silver grades plus higher fuel and
transportation costs. Continued optimization of
mining, screening and processing of finer feed is
expected to provide improvements in gold and
silver feed grades in the coming quarters.
During the 12 month period between 30 June 2021
and 30 June 2022 combined production by both
Mandalay and Equus since acquisition achieved
processing of 491,040t of ore to produce 5,997 oz of
gold and 294,517 oz of silver for a total of 10,737 oz
gold equivalent. 15,16,17 & 18
The operation’s complete Quarter ended 30 June 2022 and Full Year ended 30 June 2022 results are
provided in Tables 1-316.
Table 1. March and June Quarters 2022 and Full-Year to 30 June 2022 Production and Cash Cost Highlights
Group Production and Cash Cost
Quarter ended
31 March 2022
Quarter ended
30 June 2022
Year ended
30 June 2022
Ore Milled
DMT
120,401
Feed Grade Au
Feed Grade Ag
Gold in Mill Feed
Silver in Mill Feed
g/t
g/t
Oz
Oz
Concentrate produced DMT
Concentrate Grade Au g/t
Concentrate Grade Ag g/t
Recovery Au
Recovery Ag
Gold Production
Silver Production
%
%
Oz
Oz
Gold Production Au Eq Oz
Cash Cost (Oz AuEq)
$/oz
0.47
33.6
1,834
129,908
1,053
44.4
3,045
81.9
79.3
1,503
103,074
2,819
1,518
119,856
0.44
25.7
1,688
98,907
846
49.8
2,773
80.3%
76.3%
1,356
75,425
2,272
2,230
491,040
0.49
28.4
7,705
448,781
3,719
52.9
2,863
82.1%
76.3%
6,325
342,254
10,737
1,505
15ASX Announcement 29 Apr 2022 Quarterly Activities Report
16ASX Announcement 29 Jul 2022 Quarterly Activities Report
17ASX Announcement 28 January 2022 – Dec 2021 Quarterly Activities Report
18TSX Announcement - Mandalay Resources Corporation Announces Financial Results for the three and six months ended June 30, 2021
(*). Quarterly gold equivalent ounces (“Au Eq. oz”) produced is calculated by multiplying the saleable quantities of gold (“Au”), silver (“Ag”) in the
period by the respective average market prices of the commodities in the period, adding the amounts to get a “total contained value based
on market price”, and then dividing that total contained value by the average market price of Au in the period. Average Au and Ag prices in
the periods are calculated as the average of the monthly LBMAAM/PM Precious Metals Prices in the period, with price on weekend days and
holidays taken of the last business day, average. The source for Au and Ag prices is www.lbma.org.uk.
14
Equus Mining Limited Annual Report 2022
Review of Operations
Table 2. Saleable Production for the March and June Quarters 2022 and Full-Year to 30 June 2022
Metal
Quarter ended
31 March 2022
Quarter ended
30 June 2022
Year ended
30 June 2022
Gold (oz)
Silver (oz)
Average prices
Gold US$/oz
Silver US$/oz
Total Gold Eq. (oz) (*)
1,503
103,074
1,873.7
23.9
2,819
1,356
75,425
1,873.0
22.6
2,272
5,997
294,517
1,832.8
23.6
10,737
Table 3. Sales for March and June Quarters 2022 and Full-Year to 30 June 2022
Quarter ended
31 March 2022
Quarter ended
30 June 2022
Year ended
30 June 2022
Metal
Gold (oz)
Silver (oz)
Average Prices
Gold US$/oz
Silver US$/oz
1,631
77,647
1,873.7
23.9
Total Gold Eq. (oz) (*)
2,621
1,726
116,761
1,873.0
22.6
3,135
6,393
341,159
1,832.8
23.6
10,786
(*). Quarterly gold equivalent ounces (“Au Eq. oz”) produced is calculated by multiplying the saleable quantities of gold (“Au”), silver (“Ag”) in the
period by the respective average market prices of the commodities in the period, adding the amounts to get a “total contained value based
on market price”, and then dividing that total contained value by the average market price of Au in the period. Average Au and Ag prices in
the periods are calculated as the average of the monthly LBMAAM/PM Precious Metals Prices in the period, with price on weekend days and
holidays taken of the last business day, average. The source for Au and Ag prices is www.lbma.org.uk.
Resource comparison 2021 to 2022
The companys´ maiden resource estimate was
first reported on 22 December 2020 after which,
to date, no further drilling or update to the
resource estimate has been made, and hence no
material changes have occurred since its´ original
publication.
Governance Arrangements
Equus management and Board of Directors include
individuals with many years’ work experience in
the mineral exploration and mining industry who
monitor all exploration programs and oversee the
preparation of reports on behalf of the Company
by independent consultants. The exploration data
is produced by or under the direct supervision
of qualified geoscientists. In the case of drill hole
data half core samples are preserved for future
studies and quality assurance and quality control.
The Company uses only accredited laboratories for
analysis of samples and records the information in
electronic databases that are automatically backed
up for storage and retrieval purposes.
LOS DOMOS & CERRO DIABLO PROJECTS
With the focus of exploration efforts during the
reporting period targeted towards evaluation
and discovery of resources close to infrastructure
throughout the Cerro Bayo Project, work and
expenditure on both the Los Domos and Cerro
Diablo Projects were limited principally to the
maintenance of claim tenure. Both projects are
viewed to host good, underexplored potential
for precious and base metals and the Company
during the course of the 2023 financial year plans to
undertake work including mapping and sampling.
LOS DOMOS PROJECT
The Los Domos gold-silver project is located 15km
south of the township of Chile Chico and 20km
southeast of the Cerro Bayo gold-silver mine and
processing plant (Refer to Figure 2).
During the year ended 30 June 2020, Equus
incorporated a joint venture company “Equus
Equus Mining Limited Annual Report 2022
15
Review of Operations
Patagonia SpA” with Patagonia Gold SCM, the
Chilean subsidiary of Patagonia Gold Corp (TSXV:
PGDC). This entity incorporates the Company´s
75% interest in the mining concessions owned by
Patagonia Gold SCM, which form part of the Los
Domos Project. Southern Gold SpA can acquire
a further 20% interest in the Mining Concessions
via sole funding exploration through the Equus
Patagonia SpA joint venture company at which
point Patagonia Gold SCM has the right to retain a
5% free carried interest or convert its equity into a
1.5% NSR.
Only limited surface exploration activities and
environmental studies were completed during the
reporting period.
CERRO DIABLO PROJECT
The Cerro Diablo Project is located approximately
25km to the north-northwest of the Cerro Bayo
gold-silver mine and processing plant (Refer to
Figure 2). The project is situated in the interpreted
northwest limit of the world-class Deseado Massif
mineral province, where it extends into southern
Chile, in a corridor also broadly coincident with
the slightly younger Andean-type arc and back-
arc tectonic belt which host epithermal, skarn,
porphyry and volcanic-hosted massive sulfide
(VHMS) style mineral occurrences.
CORPORATE
During the year ended 30 June 2022, the significant
changes in the state of affairs of the Group were as
follows:
During July 2021, the Company obtained approval at
a shareholders’ meeting to issue tranche two of the
placement announced in May 2021 to institutional
investors and a Director of the Company by issuing
204,973,636 ordinary shares at an issue price of
$0.011 raising $2,254,710 before costs.
During September 2021, the Company issued
1,250,000 new ordinary shares fully paid shares to a
consultant as consideration for Geological Technical
Services provided in connection with the Cerro
Bayo project in southern Chile.
During October 2021, Mr. John Sadek was appointed
as Country Manager in Chile. Mr Sadek holds
a Bachelor of Engineering from the University
of Sydney and brings with him over 35 years of
international industry experience in operational,
technical, managerial, executive and consulting
roles. Mr Sadek has extensive knowledge in both
open pit and underground mining and has held
management roles in junior and major mining
companies that focused on gold, silver, base metals,
and uranium which included WMC, MIM, Newmont,
Orosur Mining Inc. and Scorpio Mining Corporation.
He was issued 2,500,000 new ordinary shares fully
paid shares as part of his employment agreement.
During October 2021, Mr Richard Tapia was
appointed as Vice President of Finance. MrTapia
holds a degree in Accounting and Auditing from
the Universidad of Santiago de Chile and Diploma
in international accounting from the Universidad
de Chile. Mr Tapia has more than 20 years of
experience as head of accounting and finance in
international mining companies including Anglo
American and Antofagasta Minerals.
On 11 October 2021, Equus executed its option with
Mandalay Resources Corporation (‘Mandalay’) over
the Cerro Bayo Project in Southern Chile to acquire
100% equity in Compañía Minera Cerro Bayo
Limitada (‘CMCB’).
During November 2021, at the Annual General
Meeting, shareholders approved the acquisition
of CMCB from Mandalay, and on 2 December
2021, Equus issued 587,502,438 ordinary shares to
Mandalay to acquire 100% of the equity interest in
CMCB. In addition, the Equus will pay Mandalay
2.25% of the Net Smelter Returns (NSR Royalty)
upon the production of 50,000 gold equivalent
ounces.
On 2 December 2021, Equus appointed Mr. Ryan
Austerberry as Non-executive Director. Mr. Ryan
Austerberry is the General Manager-Mandalay
Resources Costerfield Operations and was
nominated by Mandalay Resources Corporation to
the Board of Equus Mining Limited. Mr Austerberry
has previously assisted with developing Cerro Bayo
and has operational knowledge of the Cerro Bayo
Mine in Chile.
On 8 December 2021, the Company consolidated its
issued securities (ordinary shares and options) on a
1 for 20 basis.
During December 2021, the Company announced
a placement to be conducted on two tranches on a
post consolidated basis.
– The Placement was conducted under two
tranches. Under tranche 1 the Company issued
13,080,000 new ordinary shares at an issue price
of $0.17 per share for a total consideration of
$2,223,600 before costs.
– Tranche 2 of the placement was completed on
9 February 2022 the company issued 6,355,294
ordinary shares raising $1,080,400 before costs.
16
Equus Mining Limited Annual Report 2022
Review of Operations
Compliance Statement
No Material Changes
The information in this report that relates to
Exploration Results for the Cerro Bayo Project is
based on information compiled by Damien Koerber.
Mr Koerber is a fulltime employee to the Company.
Mr Koerber is a Member of the Australian Institute
of Geoscientists and has sufficient experience
which is relevant to the style of mineralisation and
type of deposits under consideration and to the
activities which he is undertaking to qualify as a
Competent Person as defined in the 2012 Edition of
the ‘Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves’. Mr
Koerber has a beneficial interest as shareholder
of Equus Mining Limited and consents to the
inclusion in this report of the matters based on his
information in the form and context in which it
appears.
Equus Mining Limited confirms that it is not aware
of any new information or data that materially
affects the information included in this Annual
Report and that all information continues to apply.
Yours sincerely
John Braham
Executive Director
Dated this 30th day of September 2022
Equus Mining Limited Annual Report 2022
17
Corporate Governance Statement
CORPORATE GOVERNANCE STATEMENT
The Board is committed to maintaining the highest standards of Corporate Governance. Corporate
Governance is about having a set of core values and behaviours that underpin the Company’s activities and
ensure transparency, fair dealing and protection of the interests of stakeholders. The Company has reviewed
its corporate governance practices against the Corporate Governance Principles and Recommendations (4th
edition) published by the ASX Corporate Governance Council.
The 2022 corporate governance statement is dated 30 September 2022 and reflects the corporate
governance practices throughout the 2022 financial year. The board approved the 2022 corporate
governance on 30 September 2022. A description of the Company’s current corporate governance practices is
set out in the Company’s corporate governance statement, which can be viewed at http://www.equusmining.
com/corporate-governance/.
18
Equus Mining Limited Annual Report 2022
Directors’ Report
The Directors present their report, together with the consolidated financial statements of the Group,
comprising of Equus Mining Limited (‘Equus’ or ‘the Company’) and its controlled entities for the financial
year ended 30 June 2022 and the auditor’s report thereon.
DIRECTORS
The names and details of the Directors in office
during or since the end of the previous financial
year are as follows. Directors were in office for the
entire year unless otherwise stated.
Mark Hamish Lochtenberg,
Non-Executive Chairman
Director since 10 October 2014
John Richard Braham,
Managing Director
Director since 13 November 2018
Mr Braham is an experienced Mining Finance and
Investment professional with a 24-year career
at Macquarie Bank, the last 11 of which were as
an Executive Director within the Mining Finance
Division.
John built and ran a successful mining finance
business in New York for Macquarie Bank from
2001 to 2008, providing capital to the junior mining
industry. This involved providing debt and equity
to exploration companies and mine developers
in both North and South America including
companies operating in Argentina, Peru and Chile.
On returning to Australia, John built a successful
bulk commodity finance business for Macquarie
Bank which he ran from 2008 to 2017 based in
Sydney. John is a Director of public listed company
Castile Resources Limited.
He has not served as a director of any other listed
company during the past three years.
Mr Lochtenberg graduated with a Bachelor of Law
(Hons) degree from Liverpool University, U.K. and
has been actively involved in the coal industry for
more than 30 years.
Mark Lochtenberg is Non Executive Director of
public listed companies Nickel Mines Limited
and Terracom Limited. He is the former Executive
Chairman and founding Managing Director
of ASX-listed Baralaba Coal Company Limited
(formerly Cockatoo Coal Limited). He was a principal
architect of Cockatoo’s inception and growth from
an early-stage grassroots explorer through to an
emerging mainstream coal producer. He was also
formerly the co-head of Glencore International AG’s
worldwide coal division, where he spent 13 years
overseeing a range of trading activities including
the identification, due diligence, negotiation,
acquisition and aggregation of the coal project
portfolio that would become Xstrata Coal.
Prior to this Mark established a coal “swaps” market
for Bain Refco, (Deutsche bank) after having served
as a senior coal trader for Hansen Neuerburg AG
and as coal marketing manager for Peko Wallsend
Limited.
Mr Lochtenberg is currently Non-Executive Director
of public listed company Nickel Mines Limited,
Director of Australian Transport, Energy Corridor Pty
Limited and Montem Resources Limited.
He has not served as a director of any other listed
company during the past three years.
Equus Mining Limited Annual Report 2022
19
Directors’ Report
Damien John Koerber,
Executive Director, Chief Operating Officer
Director since 27 November 2019
Robert Ainslie Yeates,
Non-Executive Director
Director since 20 July 2015
Mr Koerber commenced with Equus in 2012 as
exploration manager at the Naltagua copper
project in Chile which brought considerable senior
management and technical experience in the
resources industry, from both in Australia and
throughout South America.
Mr Koerber is a geologist with 32 years of
exploration experience, mainly throughout
and based in Latin America. He has held senior
management and consulting exploration and
business development positions in companies
including Billiton Gold (Northern Territory and
Western Australia), North (Chile), Rio Algom
(Chile), Newcrest (Chile, Argentina and Peru), MIM
(Argentina and Brazil), Patagonia Gold SA (Chile
and Argentina) and Mirasol Resources (Chile and
Argentina).
During his career, he has been directly involved
in several discoveries including Cleo-Sunrise Dam
(Western Australia), Tanami (Northern Territory),
Union Reefs (Northern Territory) and Cap Oeste-
COSE (Argentina).
Mr Koerber graduated from the UNSW (BSc.
Geology Hons Class 1) in 1989 and is a bilingual,
Australian geologist.
He has not served as a director of any other listed
company during the past three years.
Dr Yeates is a graduate of the University of NSW,
completing a Bachelor of Engineering (Honours 1)
in 1971 and a PhD in 1977 and then an MBA in
1986 from Newcastle University. He began his
career with Peko Wallsend working in a variety
of roles including mining engineering, project
management, mine management and marketing.
He became General Manager Marketing for
Oakbridge Pty Limited in 1989 following a merger
with the Peko Wallsend coal businesses and went
on to become Managing Director of Oakbridge,
which was the largest coal mining company in
NSW at that time, operating one open cut and five
underground coal mines.
Dr Yeates also has gained operating, business
development and infrastructure experience as a
director of Port Waratah Coal Services (Newcastle
Port), Port Kembla Coal Terminal, Great Northern
Mining Corporation NL and Cyprus Australia Coal
and for the past 20 years has been principal of his
own mine management consultancy, providing a
wide range of technical, management and strategic
planning services to the mining industry. Until 2014
he was also Project Director then CEO of Newcastle
Coal Infrastructure Group, which has developed and
is operating coal export facilities in Newcastle.
Dr Yeates was until 2015 and for the prior ten years
a director in ASX-listed Baralaba Coal Company
Limited (formerly Cockatoo Coal Limited), and from
2016 to 2019 he was a director of Watagan Mining
Ltd and from 2018 to early 2020 was a director of
Montem Resources Limited.
He has not served as a director of any other listed
company during the past three years.
20
Equus Mining Limited Annual Report 2022
Directors’ Report
David (Ted) Harcourt Coupland,
Non-Executive Director
Director since 21 June 2021
Ryan Kane Austerberry,
Non-Executive Director
Director since 2 December 2021
Ted Coupland has over 30 years of experience in the
mining, exploration and resource finance industry
and holds qualifications in geology, geostatistics,
mineral economics and finance. Ted has had a
comprehensive technical career in the resources
sector covering exploration, mine geology, resource
estimation, risk analysis, resource consulting and
business management. Ted spent 6 years between
2013 and 2018 working in Macquarie Bank’s Mining
Finance team where he specialised in technical
due diligence, deal origination, client relationship
management, principal equity investing, mezzanine
finance, structured project finance and commodity
derivative structures. As a professional Geologist
and Geostatistician, Ted has been involved with
many technically challenging resource projects
around the globe covering a range of commodities
including gold, silver, copper, base metals, PGM’s,
bauxite and coal.
Ted holds a Bachelor of Science (Geology) from the
University of New England, Post-Graduate Degree
in Geostatistics from the Paris School of Mines,
Post-Graduate Diploma in Mineral Economics from
Macquarie University and a Post-Graduate Diploma
in Applied Finance and Investment from the
Securities Institute of Australia. Ted is a Corporate
Member of the Australasian Institute of Mining
and Metallurgy (AusIMM). Mr. Coupland is currently
a Director of public listed company Odin Metals
Limited.
He has not served as a director of any other listed
company during the past three years.
Ryan Austerberry has over 18 years of experience in
the resource industry with a background in Mining
Engineering, predominantly undertaking technical
roles and operations management. Ryan has had
comprehensive technical roles and operations
management through a variety of mining
engineering roles into project work.
Ryan has been with Mandalay Resources
Corporation (TSX:MDN) (‘Mandalay’) for most of
his career, he is the current General Manager of
Operations at Costerfield in Victoria and previously
was General Manager of Björkdal in Sweden. Ryan
has previously assisted with developing Cerro Bayo
and has operational knowledge of the Cerro Bayo
Mine in Chile.
Ryan holds a Bachelor of Applied Science from the
Royal Melbourne Institute of Technology, a Post-
Graduate Diploma in Mining from the University of
Ballarat, and an MBA from the Australian Institute
of Business. Ryan is a Chartered Professional in
Mining with the Australasian Institute of Mining
and Metallurgy (AusIMM) and a graduate of the
Australian Institute of Company Directors.
He has not served as a director of any other listed
company during the past three years.
COMPANY SECRETARY
Marcelo Mora
Company Secretary since 16 October 2012
Marcelo Mora holds a Bachelor of Business degree
and Graduate Diploma of Applied Corporate
Governance. Mr Mora has been an accountant for
more than 30 years and has experience in resources
and mining companies both in Australia and
internationally, providing financial reporting and
company secretarial services to a range of publicly
listed companies.
Equus Mining Limited Annual Report 2022
21
Directors’ Report
DIRECTORS’ MEETINGS
The number of Directors’ meetings and number of meetings attended by each of the Directors (while they
were a Director) of the Company during the year are:
Director
Mark H. Lochtenberg
John R. Braham
Damien J. Koerber
Robert A. Yeates
David (Ted) H. Coupland
Ryan K. Austerberry
Board Meetings
Held
Attended
4
4
4
4
4
2
4
4
4
4
4
2
DIRECTORS’ INTERESTS
At the date of this report, the beneficial interests of each director of the Company in the issued share capital
of the Company and options, each exercisable to acquire one fully paid ordinary share of the Company are:
Director
Fully Paid
Ordinary Shares
Options over
ordinary shares
Option Terms
(Exercise Price and Term)
Mark H. Lochtenberg
12,487,431
555,555
$0.30 at any time up to 16 September 2023
John R. Braham
1,038,953
277,777
$0.30 at any time up to 16 September 2023
-
-
-
-
-
-
250,000
$1.40 at any time up to 13 November 2023
333,333
$0.60 at any time up to 13 November 2022
333,333
$0.70 at any time up to 13 November 2024
333,333
$0.44 at any time up to 25 November 2023
333,333
$0.50 at any time up to 25 November 2024
333,333
$0.54 at any time up to 25 November 2025
Damien J. Koerber
2,173,370
111,111
$0.30 at any time up to 16 September 2023
-
-
-
83,333
$0.44 at any time up to 25 November 2023
83,333
$0.50 at any time up to 25 November 2024
83,333
$0.54 at any time up to 25 November 2025
Robert A. Yeates
David (Ted) H. Coupland
343,538
944,684
166,666
$0.30 at any time up to 16 September 2023
55,555
$0.30 at any time up to 16 September 2023
Ryan K. Austerberry
29,375,122
-
During the year ended 30 June 2022, no options were granted as compensation to directors of the Company
(2021: 1,249,998 unlisted options were on a post-consolidation basis of 20 to 1).
During the year ended 30 June 2022, 11,666,666 pre-consolidation unlisted options expired unexercised.
There were no options over unissued ordinary shares granted as compensation to directors or executives of
the Company during or since the end of the financial year.
22
Equus Mining Limited Annual Report 2022
Directors’ Report
OPTION HOLDINGS
Options granted to directors’ and officers’
Since the end of the financial year, the Company did not grant any options over unissued ordinary shares to
directors or officers as part of their remuneration.
UNISSUED SHARES UNDER OPTIONS
At the date of this report, unissued ordinary shares of the Company under option are:
Number of Options
Employee Options
Attaching Options
Exercise Price
Expiry Date
250,000(1)
333,333(1)
333,333(1)
416,666(1)
416,666(1)
416,666(1)
125,000(1)
-
-
-
-
-
-
-
-
20,094,427
$1.40
$0.60
$0.70
$0.44
$0.50
$0.54
$0.44
$0.30
13 November 2023
13 November 2022
13 November 2024
25 November 2023
25 November 2024
25 November 2025
01 December 2023
16 September 2023
(1) In the event that the employment of the option holder is terminated by breach of its obligations to the Company, then the options shall
lapse upon written notification to the holder.
All options expire on their expiry date. The persons entitled to exercise the options do not have, by virtue of
the options, the right to participate in a share issue of the Company or any other body corporate.
SHARES ISSUED ON EXERCISE OF OPTIONS
During the financial year ended 30 June 2022, no ordinary shares were issued as a result of the exercise
of options (2021: 2,000,000 on a pre-consolidation basis of 20 to 1). Since the end of the financial year, the
Company has not issued ordinary shares as a result of the exercise of options.
Equus Mining Limited Annual Report 2022
23
Directors’ Report
CORPORATE INFORMATION
Corporate Structure
Equus Mining Limited is a limited liability company that is incorporated and domiciled in Australia. It has
prepared a consolidated financial report incorporating the entities that it controlled during the financial year.
The Group’s structure at 30 June 2022 is outlined below.
EQUUS MINING LIMITED – GROUP STRUCTURE AT 30 JUNE 2022
Equus Mining
Limited
100%
Okore Mining
Pty Ltd
100%
Hotrock
Enterprises
Pty Ltd
100%
Dataloop
Pty Ltd
100%
Equus Resources
Pty Ltd
100%
100%
Leo Shield
Exploration
Ghana Ltd
Andean Coal
Pty Ltd
100%
Derrick
Pty Ltd
100%
100%
Southern Gold
SpA
Equus Resources
Chile SpA
100%
Minera Carbones
Del Sur SpA
75%
Equus Patagonia
SpA
Minera Equus
Chile SpA
The Companies referred above comprise the “Consolidated Entity” for the purposes of the Financial
Statements included in this report.
100%
Compañía
Minera
Cerro Bayo SpA
24
Equus Mining Limited Annual Report 2022
Directors’ Report
PRINCIPAL ACTIVITIES
The principal activities of the Group during the
course of the financial year were continuing
its dual-track strategy of Brownfields resource
evaluation and Brownfields/Greenfields exploration
to define sufficient resources to sustain a potential
Cerro Bayo mine restart and the maintenance of
claims held by Equus for the nearby Los Domos and
Cerro Diablo Projects. Together with the processing
of low-grade stockpiles at Cerro Bayo since its
acquisition on 1 December 2021.
FINANCIAL RESULTS
The consolidated loss after income tax attributable
to members of the Company for the year was
$3,981,385 (2021: $1,716,498 loss).
REVIEW OF OPERATIONS
A review of the Group’s operations for the year
ended 30 June 2022 is set out on pages 3 to 17 of
this Annual Report.
DIVIDENDS
The Directors do not recommend the payment of
a dividend in respect of the financial year ended 30
June 2022. No dividends have been paid or declared
during the financial year (2021 - $nil).
CHANGES IN STATE OF AFFAIRS
In the opinion of the Directors, significant changes
in the state of affairs of the Group that occurred
during the year ended 30 June 2022 were as follows:
On 7 July 2021, the Company obtained approval at
a shareholders’ meeting to issue tranche two of the
placement announced in May 2021 to institutional
investors and a Director of the Company by issuing
204,973,636 ordinary shares at an issue price of
$0.011 raising $2,254,710 before costs.
On 14 September 2021, the Company issued
1,250,000 new ordinary shares fully paid shares to a
consultant as consideration for Geological Technical
Services provided in connection with the Cerro
Bayo project in southern Chile.
On 1 October 2021, Mr. John Sadek was appointed as
Country Manager in Chile and was issued 2,500,000
new ordinary shares fully paid shares as part of his
employment agreement.
On 11 October 2021, Equus executed its option with
Mandalay Resources Corporation (‘Mandalay’) over
the Cerro Bayo Project in Southern Chile to acquire
100% equity in Compañía Minera Cerro Bayo
Limitada (‘CMCB’).
On 25 November 2021, at the Annual General
Meeting, shareholders approved the acquisition
of CMCB from Mandalay, and on 2 December
2021, Equus issued 587,502,438 ordinary shares to
Mandalay to acquire 100% of the equity interest in
CMCB. In addition, Equus will pay Mandalay 2.25%
of the Net Smelter Returns (NSR Royalty) upon the
production of 50,000 gold equivalent ounces.
On 1 December 2021, Equus completed its
acquisition of the Cerro Bayo Project from
Mandalay Resources Corporation (TSX:MND,
OTCQB: MNDJF), which remains the company’s key
focus. The Cerro Bayo Project and infrastructure
is optimally situated nearby Equus’s Los Domos
and Cerro Diablo Projects. Equus gained control
of processing of the low-grade stockpiles which
Mandalay Resources (‘Mandalay’) had commenced
in late February 2021. Production from the low-
grade stockpiles is providing important information
on plant operational parameters and efficiencies
to support Equus’s further Cerro Bayo mine restart
studies during 2022-2023.
The Cerro Bayo mining property comprises 29,495
hectares of mining claims which are optimally
located with respect to the mine infrastructure. As
identified by drilling and mapping to date, from
which a large database of surface and drill hole
geochemical and geological data was compiled,
the Cerro Bayo Project area hosts at least 100 veins,
stockwork and breccia structures hosting gold
and silver mineralization for which the company
considers highly prospective.
The project includes an operational 1,500tpd
flotation processing plant for which Mandalay
Resources commenced processing of low-
grade stockpiles in late February 2021 via the
commissioning of the plant which was previously
on care and maintenance. The mine infrastructure
also includes a permitted tailings storage facility
and all power generation, in addition to a large
proportion of the fixed and mobile plant required
for a potential restart of mining of insitu resources.
Within the expansive 295km2 mining claim
package at Cerro Bayo, Equus is evaluating the
potential for future higher-grade feedstock for the
plant based on several potential sources which
include the JORC 2012 compliant inferred resource
at Taitao and potential extensions to mineralisation
adjacent to the numerous other historic mines
throughout the Cerro Bayo Project. In parallel, the
Company is aggressively exploring what it believes
to be compelling potential at our Taitao, Pegaso,
Brahman and Droughtmaster targets, and other
large portions of the Cerro Bayo district that the
Company considers underexplored.
Equus Mining Limited Annual Report 2022
25
Directors’ Report
On 2 December 2021, Equus appointed Mr. Ryan
Austerberry as Non-executive Director.
LIKELY DEVELOPMENTS
On 8 December 2021, the Company consolidated its
issued securities (ordinary shares and options) on a
1 for 20 basis.
During December 2021, the Company announced
a placement to be conducted on two tranches on a
post-consolidated basis.
– The Placement was conducted under two
tranches. Under tranche 1 the Company issued
13,080,000 new ordinary shares at an issue price
of $0.17 per share for a total consideration of
$2,223,600 before costs.
– Tranche 2 of the placement was completed on
9 February 2022 the company issued 6,355,294
ordinary shares raising $1,080,400 before costs.
Other than the matters detailed above, there were
no other significant changes in the affairs of the
Company during the year.
ENVIRONMENTAL REGULATIONS
The Group’s operations are subject to various
environmental laws and regulations in Chile
where it has operations. The group measures its
performance against environmental regulations
by monitoring incidents according to their actual
environmental impact. Incidents are reported to
the Managing Director immediately after occurring.
There were no environmental incidents for the year
ended 30 June 2022.
The Company is undertaking a range of mine
related baseline and drill permitting environmental
studies throughout the Cerro Bayo Project
pertaining to future potential mining, increasing
tailings dam capacity and exploration. The Group
has provided for the rehabilitation obligations at the
Cerro Bayo Project.
The Board believes that the Group has adequate
systems in place for the management of its
environmental requirements and is not aware of
any breach of those environmental requirements as
they apply to the Group.
During the course of the 2023 financial year, the
Company will focus principally on advancing
brownfield and greenfields exploration drilling
programs, resource evaluation, and optimising the
current production from the low-grade stockpiles of
the Cerro Bayo Project.
Ongoing strategic assessment will continue for the
nearby Los Domos and Cerro Diablo Projects and
additional areas of exploration interest in the vicinity
of the Cerro Bayo Mine infrastructure. Results from
which they will make public in accordance with ASX
listing rules once the information is received.
Further information as to likely developments in the
operations of the Group and the expected results
of those operations in subsequent years have not
been included in this report because disclosure
of this information would be likely to result in
unreasonable prejudice to the Group.
EVENTS SUBSEQUENT TO BALANCE DATE
On 2 September 2022, the Company issued
12,755,000 ordinary shares to institutional investors
at an issue price of $0.10 raising $1,275,500 before
costs.
Other than the matters detailed above, no other
matters or circumstances have arisen in the interval
between the end of the financial year and the date
of this report any item, transaction or event of a
material or unusual nature likely, in the opinion of
the Directors of the Company, to affect significantly
the operations of the Group, the results of those
operations, or the state of affairs of the Group, in
future financial years.
INDEMNIFICATION AND INSURANCE OF
OFFICERS AND AUDITORS
During or since the end of the financial, the
Company has not indemnified or made a relevant
agreement to indemnify an officer or auditor of the
Company against a liability incurred as such by an
officer or auditor. The Group has not paid or agreed
to pay, a premium in respect of a contract insuring
against a liability incurred by an officer or auditor.
26
Equus Mining Limited Annual Report 2022
Directors’ Report
REMUNERATION REPORT - Audited
Principals of compensation - Audited
Key management personnel have authority and responsibility for planning, directing and controlling the
activities of the Group. Key management personnel comprise the directors of the Company. No other
employees have been deemed to be key management personnel.
The remuneration policy of Directors is to ensure the remuneration package properly reflects the persons’
duties and responsibilities, and that remuneration is competitive in attracting, retaining and motivating
people of the highest quality. The Board is responsible for reviewing its own performance. The evaluation
process is designed to assess the Group’s business performance, whether long-term strategic objectives are
being achieved, and the achievement of individual performance objectives.
The Constitution and ASX Listing Rules specify that the aggregate remuneration of Non-Executive Directors
shall be determined from time to time by a general meeting. The latest determination was at a shareholders
meeting on 25 November 2021 when the shareholders approved an aggregate remuneration of $300,000 per
year.
Remuneration generally comprises of salary and superannuation. Long-term incentives are able to be
provided through the Company’s share option program, which acts, to align the Director’s and senior
executive’s actions with the interests of the shareholders.
The remuneration disclosed below represents the cost to the Group for services provided under these
arrangements.
John Braham, Mark Lochtenberg, Damien Koerber and Ryan Austerberry are paid through the Company’s
payroll. All other Directors services are paid by way of an arrangement with related parties.
There were no remuneration consultants used by the Company during the year ended 30 June 2022, or in the
prior year.
Consequences of performance on shareholders’ wealth - Audited
In considering the Group’s performance and benefits for shareholders’ wealth, the Board has regard to the
following indices in respect of the current financial year and the previous four financial years.
2022
$
2021
$
2020
$
2019
$
2018
$
Net loss attributable to equity holders of the parent
3,981,385
1,716,498
1,728,160
942,751
2,142,214
Dividends paid
Change in share price
-
(0.12)
-
-
-
-
-
(0.02)
-
-
The overall level of key management personnel’s compensation has been determined based on market
conditions, the advancement of the Group’s projects and the financial performance of the Group.
Remuneration Structure - Audited
In accordance with better practice corporate governance, the structure of Executive Director and Non-
Executive Director remuneration is separate and distinct.
Equus Mining Limited Annual Report 2022
27
Directors’ Report
Service contracts - Audited
In accordance with better practice corporate governance, the company provided each key management
personnel with a letter detailing the terms of appointment, including their remuneration. Key management
personnel may at any time resign by written notice.
Details of the nature and amount of each major element of the remuneration of each Director of the
Company and other key management personnel of the Company and Group are:
Primary
Salary / Fees
$
Bonus
$
Super-
annuation
$
Year
Share-Based
Payments
Options
$
Other
Short Term
Benefit(4)
$
Total
$
Executive Directors
John Braham
2022
272,917
150,000
42,292
-
35,952
501,161
2021
200,000
-
19,000
160,000
1,469
380,469
Damien Koerber
2022
229,166
25,000
25,417
-
31,507
311,090
19,000
40,000
16,799
275,799
2021
200,000
Non-Executive Directors
Mark Lochtenberg
2022
75,000
2021
33,750
Robert Yeates
2022
50,000
David (Ted) Coupland(1), (3)
2022
119,900
2021
31,667
Ryan K. Austerberry(2)
2022
29,167
2020
1,644
2021
-
-
-
-
-
-
-
-
-
-
7,500
3,206
-
-
-
-
2916
-
Total all directors
2022
776,150
175,000
78,125
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
82,500
36,956
50,000
31,667
119,900
1,644
32,083
-
67,459
1,096,734
2021
467,061
-
41,206
200,000
18,268
726,535
(1) Appointed as Director on 21 June 2021.
(2) Appointed as Director on 2 December 2021
(3) Mr. Coupland received $50,000 in Director’s fees and $69,900 for technical services.
(4) Other short term benefit relates to annual leave expensed during the year
Executive Directors - Audited
During the financial year ended 30 June 2022, John Braham and Damien Koerber were considered Executive
Directors. Their remuneration for the year ended 30 June 2022 comprised of fixed remuneration plus 10%
statutory superannuation paid through the Company’s payroll. In addition, Mr. Braham and Mr. Koerber
received a combined Bonus payment of $175,000 which was determined at the discretion of the board.
28
Equus Mining Limited Annual Report 2022
Directors’ Report
Options granted as compensation - Audited
Refer below for the Options granted to John Braham and Damien Koerber. The Company employed no other
key management personnel.
The options granted to key management personnel were not subject to any performance or service
conditions and vested immediately. Details of options granted as compensation to each key management
person in the current and prior year:
Director
Grant Date
Number
of
Options
Granted
Fair value
per option
at grant
date
Fair
Value
at Grant
Date
Option Terms
(Exercise Price and Term)
John Braham
14 October 2019
(1)250,000
$0.172
$43,000 $1.00 at any time to 13 November 2021
John Braham
14 October 2019
(1)250,000
$0.236
$59,000 $1.40 at any time to 13 November 2023
John Braham
29 November 2019 (2)333,333
$0.168
$56,000 $0.54 at any time to 13 November 2021
John Braham
29 November 2019 (2)333,333
$0.202
$67,333 $0.60 at any time to 13 November 2022
John Braham
29 November 2019 (2)333,333
$0.24
$80,000 $0.70 at any time to 13 November 2024
John Braham
25 November 2020 (3)333,333
$0.14
$46,667 $0.44 at any time to 25 November 2023
John Braham
25 November 2020 (4)333,333
$0.16
$53,333 $0.50 at any time to 25 November 2024
John Braham
25 November 2020 (4)333,333
$0.18
$60,000 $0.54 at any time to 25 November 2025
Damien Koerber 25 November 2020 (3)83,333
$0.14
$11,667 $0.44 at any time to 25 November 2023
Damien Koerber 25 November 2020 (4)83,333
$0.16
$13,333 $0.50 at any time to 25 November 2024
Damien Koerber 25 November 2020 (4)83,333
$0.18
$15,000 $0.54 at any time to 25 November 2025
– The fair value of the (1) 250,000 options on a post-consolidated basis at grant date was determined based
on a Black- Scholes formula. The model inputs of the options issued, were the Company’s share price
of $0.0155 (share price post consolidation $0.31) at the grant date, a volatility factor of 152.60% based on
historic share price performance, a risk free rate of 0.71% based on the 2 year government bond rate and
no dividends paid.
– The fair value of the (2) 666,666 options on a post-consolidation basis at grant date was determined based
on a Black- Scholes formula. The model inputs of the options issued, were the Company’s share price
of $0.014 (share price post consolidation $0.28) at the grant date, a volatility factor of 149.46% based on
historic share price performance, a risk free rate of 0.65% based on the 3 year government bond rate and
no dividends paid.
– The fair value of the (3) 416,666 options on a post-consolidated basis at grant date was determined based
on a Black- Scholes formula. The model inputs of the options issued, were the Company’s share price
of $0.011 (share price post consolidation $0.22) at the grant date, a volatility factor of 136.20% based on
historic share price performance, a risk free rate of 0.11% based on the 3 year government bond rate and
no dividends paid.
– The fair value of the (4) 833,332 options on a post-consolidated basis at grant date was determined based
on a Black- Scholes formula. The model inputs of the options issued, were the Company’s share price
of $0.011 (share price post consolidation $0.22) at the grant date, a volatility factor of 136.20% based on
historic share price performance, a risk free rate of 0.30% based on the 5 year government bond and no
dividends paid.
During the year ended 30 June 2022 583,333 unlisted options on a post consolidated basis lapsed (2021:
250,000 on a post consolidated basis) and no options held by key management personnel were exercised
during the 2022 or 2021 financial years.
Equus Mining Limited Annual Report 2022
29
Directors’ Report
Modification of terms of equity-settled share-based payment transactions - Audited
No terms of equity- settled share based payment transactions (including options granted as compensation
to a key management person) have been altered or modified by the issuing entity during the 2022 and 2021
financial years.
Exercise of options granted as compensation - Audited
There were no shares issued to Directors on the exercise of options previously granted as compensation
during the 2022 and 2021 financial years.
Analysis of options and rights over equity instruments granted as compensation - Audited
All options refer to options over ordinary shares of Equus Mining Limited, which are exercisable on a one-for-
one basis.
Director
Number
Date
Options granted
% vested
at year end
Expired during
the year
Balance at
year end
Financial year in
which grant vests
John Braham
500,000
14 October 2019
John Braham
999,999 29 November 2019
John Braham
999,999 25 November 2020
Damien Koerber 249,999 25 November 2020
100%
100%
100%
100%
250,000
250,000
30 June 2020
333,333
666,666
30 June 2020
-
-
999,999
30 June 2021
249,999
30 June 2021
The number of options that had vested on a post-consolidation basis as at 30 June 2022 is 2,166,664 (2021
– 2,750,000 on a post-consolidation basis). No options were granted as remuneration during the year (2021:
1,250,000 on a post-consolidation basis). No options were granted as compensation subsequent to year end.
Analysis of movements in options granted as compensation - Audited
Director
John Braham
Damien Koerber
Value of options granted in the year
Value of options exercised in the year
-
-
-
-
Options and rights over equity instruments - Audited
The movement during the reporting period in the number of options over ordinary shares in the Company
held directly, indirectly or beneficially, by each key management person, including their personally related
entities, is as follows:
Option holdings 2022 - Audited
Held at
1 July 2021
Post
consolidation
Granted /
Purchased
Exercised /
Sold
Expired
Held at
30 June 2022
Vested and
exercisable at
30 June 2022
Directors
Mark Lochtenberg
-
John Braham
Damien Koerber
Robert Yeates
David (Ted) Coupland
Ryan Austerberry
2,499,998
249,999
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
583,333
1,916,665
1,916,665
-
-
-
-
249,999
249,999
-
-
-
-
-
-
30
Equus Mining Limited Annual Report 2022
Directors’ Report
Loans to key management personnel and their related parties - Audited
There were no loans made to key management personnel or their related parties during the 2022 and 2021
financial years and no amounts were outstanding at 30 June 2022 (2021 - $nil).
Other transactions with key management personnel - Audited
There were no other transactions with key management personnel or their related parties during 2022.
At 30 June 2022, the amount outstanding for salaries, superannuation and directors fees were $22,492 (2021:
nil).
Movements in shares - Audited
The movement during the reporting period in the number of ordinary shares in the Company held directly,
indirectly or beneficially by each key management personnel, including their related parties, is as follows:
Fully paid ordinary shareholdings and transactions - 2022
Key management personnel
Held at
30 June 2021
Post Consolidation
Purchases
Sales
Other
Mark Lochtenberg
3,155,538
9,331,893
John Braham
Damien Koerber
Robert Yeates
David (Ted) Coupland*
Ryan Austerberry
742,483
2,114,546
343,538
799,978
-
296,470
58,824
-
144,706
-
-
-
-
-
-
-
-
-
-
-
-
-
Held at
30 June 2022
12,487,431
1,038,953
2,173,370
343,538
944,684
-
* Number of shares held at date of appointment as a Director
Non-Executive Directors - Audited
During the financial year ended 30 June 2022, the following Directors were considered Non-Executive
Directors:
– Mark Lochtenberg;
– Robert Yeates;
– David (Ted) Coupland;
– Ryan Austerberry.
The salary component of Non-Executive Directors was made up of:
– fixed remuneration;
– 10% statutory superannuation for Australian resident directors pay through the Company’s payroll; and
– an entitlement to receive options, subject to shareholders’ approval.
The services of non-executive directors who are not paid through the Company’s payroll system are provided
by way of arrangements with related parties.
End of remuneration report.
Equus Mining Limited Annual Report 2022
31
Directors’ Report
NON-AUDIT SERVICES
During the year ended 30 June 2022 KPMG, the Group’s auditor, did not perform other services in addition to
the audit and review of the financial statements.
Details of the amounts paid to the auditor of the Group, KPMG, and its network firms for audit and non-audit
services provided during the year are set out below.
Services other than audit and review of financial statements:
Other services
Audit and review of financial statements
AUDITOR’S INDEPENDENCE DECLARATION
2022
$
2021
$
-
-
134,500
134,500
90,750
90,750
The lead auditor’s independence declaration is set out on page 33 and forms part of the Directors’ Report for
the financial year ended 30 June 2022.
Signed at Sydney this 30th day of September 2022
in accordance with a resolution of the Board of Directors:
Mark H. Lochtenberg
Chairman
John R. Braham
Executive Director
32
Equus Mining Limited Annual Report 2022
Lead Auditor’s Independence Declaration
Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001
To the Directors of Equus Mining Limited
I declare that, to the best of my knowledge and belief, in relation to the audit of Equus Mining Limited for the
financial year ended 30 June 2022 there have been:
i.
ii.
no contraventions of the auditor independence requirements as set out in the Corporations Act
2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
KPMG
Jason Adams
Partner
Brisbane
30 September 2022
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and
logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by
a scheme approved under Professional Standards Legislation
Equus Mining Limited Annual Report 2022
33
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
For the Year Ended 30 June 2022
CONTINUING OPERATIONS
Revenue from contracts with customers – sales revenue
Other revenue
Cost of sales
Gross Profit
Government grant income
Expenses
Employee, directors and consultants costs
Administration expenses
Other expenses
Results from operating activities
Finance income
Finance costs
Net finance income
Loss before tax
Tax benefit/(expense)
Loss for the year
Notes
2022
$
2021
$
4
4
4
5
5
6
15,622,699
253,677
(17,647,398)
(1,771,022)
-
-
-
-
-
50,000
(1,245,834)
(952,285)
(417,325)
(464,399)
(1,219,681)
(355,837)
(4,653,862)
(1,722,521)
698,141
(28,525)
669,616
3,514
-
3,514
(3,984,246)
(1,719,007)
-
-
(3,984,246)
(1,719,007)
Other comprehensive income for the year
Items that may be classified subsequently to profit or loss:
Exchange differences on translation of foreign operations
18
(1,377,401)
(1,377,401)
252,926
252,926
Items that will not be classified subsequently to profit or loss
Net change in fair value of equity instruments at fair value
through other comprehensive income
Total other comprehensive gain/(loss)
Total comprehensive loss for the year
Loss for the year attributable to:
Equity holders of the Company
Non-controlling interest
Total comprehensive loss attributable to:
Equity holders of the Company
Non-controlling interest
5
(13,096)
(999)
(1,390,497)
251,927
(5,374,743)
(1,467,080)
(3,981,385)
(1,716,498)
(2,861)
(2,509)
(3,984,246)
(1,719,007)
(5,371,882)
(1,464,571)
(2,861)
(2,509)
(5,374,743)
(1,467,080)
Earnings per share
Basic and diluted loss per share (cents)
19
(2.63)
(1.89)*
*Restated for share consolidation during the year ended 30 June 2022, refer to Note 17.
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in
conjunction with the accompanying notes.
34
Equus Mining Limited Annual Report 2022
Consolidated Statement of Financial Position
Current Assets
Cash and cash equivalents
Receivables
Inventories
Prepayments
Total Current Assets
Non-Current Assets
Other receivables
Other financial assets
Property plant and equipment
Exploration and evaluation expenditure
Total Non-Current Assets
Total Assets
Current Liabilities
Payables
Lease liability
Total Current Liabilities
Non-Current Liability
Lease liability
Provision for rehabilitation
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Share capital
Reserves
Accumulated losses
Parent entity interest
Non-controlling interest
Total Equity
As at 30 June 2022
Notes
2022
$
2021
$
7
8
9
10
8
11
12
13
14
15
15
16
17
18
2,148,443
4,724,429
2,209,154
2,325,794
574,087
51,834
-
-
7,257,478
4,776,263
7,158,568
-
777
13,803
365,060
-
23,091,596
11,203,674
30,616,001
11,217,477
37,873,479
15,993,740
2,975,736
894,025
165,360
-
3,141,096
894,025
82,680
14,207,888
14,290,568
-
-
-
17,431,664
894,025
20,441,815
15,099,715
140,177,143
129,460,300
(1,351,513)
137,984
(118,385,050)
(114,502,665)
20,440,580
15,095,619
1,235
4,096
20,441,815
15,099,715
The above Consolidated Statement of Financial Position should be read in conjunction with the
accompanying notes.
Equus Mining Limited Annual Report 2022
35
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2022
Balance at 1 July 2020
Profit/(Loss) for the year
Total other comprehensive income / (loss)
Total comprehensive
profit/(loss) for the year
Transactions with owners recorded directly in equity
Ordinary shares issued
Transaction costs on issue of shares
Share base payments
Changes in ownership interest in subsidiaries
Transfer of expired options
Balance at 30 June 2021
Balance at 1 July 2021
Profit/(Loss) for the year
Total other comprehensive income / (loss)
Total comprehensive
profit/(loss) for the year
Transactions with owners recorded directly in equity
Ordinary shares issued
Transaction costs on issue of shares
Share base payments
Changes in ownership interest in subsidiaries
Transfer of expired options
Balance at 30 June 2022
17
8,987,340
(709,402)
-
-
17 10,885,232
(168,389)
-
-
-
-
-
-
-
-
-
-
-
(3,981,385)
-
(3,981,385)
Share
Capital
$
Accumulated
Losses
$
Option
Reserve
$
Fair Value
Reserve
$
Note
Foreign
Currency
Translation
Reserve
$
Non-
controlling
Interest
$
Total
Equity
$
Total
$
121,182,362 (112,819,667)
338,833
402,161
(1,234,022)
7,869,667
6,605
7,876,272
-
-
-
(1,716,498)
-
(1,716,498)
-
-
-
-
-
412,585
-
(1,716,498)
(2,509)
(1,719,007)
(999)
252,926
251,927
-
251,927
(999)
252,926
(1,464,571)
(2,509)
(1,467,080)
-
-
-
-
-
-
-
-
8,987,340
(709,402)
412,585
-
-
-
-
-
8,987,340
(709,402)
412,585
-
33,500
(33,500)
129,460,300 (114,502,665)
717,918
401,162
(981,096) 15,095,619
4,096 15,099,715
129,460,300 (114,502,665)
717,918
401,162
(981,096) 15,095,619
4,096 15,099,715
-
-
-
-
-
-
-
-
(3,981,385)
(2,861)
(3,984,246)
(13,096)
(1,377,401)
(1,390,497)
-
(1,390,497)
(13,096)
(1,377,401)
(5,371,882)
(2,861)
(5,374,743)
-
-
-
-
- 10,885,232
- 10,885,232
-
-
-
(168,389)
-
-
-
-
-
(168,389)
-
-
99,000
(99,000)
140,177,143 (118,385,050)
618,918
388,066
(2,358,497) 20,440,580
1,235 20,441,815
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
36
Equus Mining Limited Annual Report 2022
Consolidated Statement of Cash Flows
Cash flows from operating activities
Cash receipts in the course of operations
Cash payments in the course of operations
Net cash used in operations
Interest received
For the Year Ended 30 June 2022
Notes
2022
$
2021
$
15,998,345
50,000
(18,989,750)
(1,296,129)
(2,991,405)
(1,246,129)
3,269
3,514
Net cash used in operating activities
20
(2,988,136)
(1,242,615)
Cash flows from investing activities
Payments for exploration and development expenditure
Net cash used in investing activities
(4,895,336)
(3,590,646)
(4,895,336)
(3,590,646)
Cash flows from financing activities
Proceeds from share issues
Transaction costs on share issue
Lease payments
Net cash provided by financing activities
Net increase / (decrease) in cash held
Cash and cash equivalents at 1 July
Effects of exchange rate fluctuations on cash held
5,558,710
8,775,290
(168,389)
(516,816)
(82,835)
-
5,307,486
8,258,474
(2,575,986)
3,425,213
4,724,429
1,304,130
-
(4,914)
Cash and cash equivalents at 30 June
7
2,148,443
4,724,429
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying
notes.
Equus Mining Limited Annual Report 2022
37
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1. REPORTING ENTITY
Equus Mining Limited (the ‘Company’) is a company domiciled in Australia. The address of the Company’s
registered office is Level 2, 66 Hunter Street, Sydney, NSW, 2000. The consolidated financial statements of the
Company as at and for the year ended 30 June 2022 comprises the Company and its subsidiaries (together
referred to as the ‘Group’). The Group is a for-profit entity and is primarily engaged in identifying and
evaluating mineral resource opportunities in Southern Chile, South America.
2. BASIS OF PREPARATION
(a) Statement of compliance
The consolidated financial statements are general purpose financial statements which have been prepared
in accordance with Australian Accounting Standards (‘AASBs’) adopted by the Australian Accounting
Standards Board (‘AASB’) and the Corporations Act 2001. The consolidated financial statements comply
with International Financial Reporting Standards (‘IFRSs’) and interpretations adopted by the International
Accounting Standards Board (‘IASB’).
The consolidated financial statements were authorised for issue by the Directors on 30 September 2022.
(b) Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis except for certain
financial assets which are measured at fair value.
(c) Functional and presentation currency
These consolidated financial statements are presented in Australian dollars, which is the Company’s
functional currency.
(d) Going concern
The consolidated financial statements have been prepared on a going concern basis, which contemplates
the realisation of assets and settlement of liabilities in the ordinary course of business.
During the year, the Company raised $5,558,710 (net of associated costs) through the issue of ordinary shares
via placements.
The Group recorded a loss attributable to equity holders of the Company of $3,981,385 for the year ended 30
June 2022 and has accumulated losses of $118,385,050 as at 30 June 2022. The Group has cash on hand of
$2,148,443 at 30 June 2022 and used $7,883,472 of cash in operations, including payments for exploration and
evaluation, for the year ended 30 June 2022.
Since the end of the financial year, Equus raised $1,275,500 (before costs) through a share placement. The
additional funding will primarily be used by the Group to fund its exploration program at the Cerro Bayo
project and working capital.
The Directors have prepared cash flow projections for the period 1 July 2022 to 30 September 2023 that
support the ability of the Group to continue as a going concern. The cash flow projections assume the Group
continues substantial exploration activities in the Cerro Bayo area of interest and the processing of low-
grade waste stockpiles at Cerro Bayo that were acquired in December 2021. The ability to generate net cash
inflows from the processing of these low-grade stockpiles is uncertain and highly sensitive to fluctuations
in commodity prices, stockpile grades, processing plant performance and cash operating costs. As a result,
the Group plans to seek additional funding from shareholders or other parties to continue its operations
that is yet to be secured at the date of this report. If such funding is not secured, the Group plans to reduce
expenditure to the level of funding available.
38
Equus Mining Limited Annual Report 2022
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1. REPORTING ENTITY (Cont’d)
These conditions give rise to a material uncertainty that may cast significant doubt upon the Group’s ability
to continue as a going concern. The ongoing operation of the Group is dependent upon the Group raising
additional funding from shareholders or other parties and/or the Group reducing expenditure in-line with
available funding.
In the event that the Group does not obtain additional funding and/or reduce expenditure in line with
available funding, which are uncertain until secured or realised, it may not be able to continue its operations
as a going concern and therefore may not be able to realise its assets and extinguish its liabilities in the
ordinary course of operations and at the amounts stated in the consolidated financial statements.
(e) Use of estimates and judgements
The preparation of the consolidated financial statements in conformity with AASBs requires management
to make judgements, estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised and in any future periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgements in
applying accounting policies that have the most significant effect on the amount recognised in the
consolidated financial statements are described in the following notes:
– Going Concern (Note 2 (d));
– Inventories (Note 9);
– Provision for rehabilitation (Note 16);
– Exploration and evaluation (Note 13);
– Acquisition of controlled entities (Note 28).
(f) Business combinations
The Group accounts for business combinations using the acquisition method when the acquired set of
activities and assets meets the definition of a business and control is transferred to the Group. In determining
whether a particular set of activities and assets is a business, the Group assesses whether the set of assets
and activities acquired includes, at a minimum, an input and substantive process and whether the acquired
set has the ability to produce outputs.
The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net
assets acquired. Subsequent changes in fair value are adjusted against the cost of the acquisition where they
qualify as measurement period adjustments. Any goodwill that arises is tested annually for impairment. Any
gain on bargain purchase is recognised in the profit or loss immediately. Transaction costs are expensed as
incurred, except if related to the issue of debt or equity securities.
Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay
contingent consideration that meets the definition of a financial instrument is classified as equity, then it is
not remeasured and settlement is accounted for within equity. Otherwise, other contingent consideration is
remeasured at fair value at each reporting date and subsequent changes in the fair value of the contingent
consideration are recognised in profit or loss.
Equus Mining Limited Annual Report 2022
39
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
3. SIGNIFICANT ACCOUNTING POLICIES
(a) Changes in accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these
consolidated financial statements, and have been applied consistently by entities in the Group.
(b) Revenue
Revenue from contracts with customers is recognised when control of the goods is transferred to the
customer at an amount that reflects the consideration to which the Company expects to be entitled in
exchange for those goods. The Company has generally concluded that it is the principal in its revenue
contracts because it typically controls the goods or services before transferring them to the customer.
Sales of certain commodities are provisionally priced such that the price is not settled until a predetermined
future date based on the market price at that time. Revenue on these sales is initially recognised at the
current market price. The receivables relating to provisionally priced sales are marked to market at each
reporting date using the forward price for the period equivalent to that outlined in the contract. This mark
to market adjustment is recognised in revenue but is not considered to be revenue from contracts with
customers.
(c) Inventories
Finished goods, work-in-process and stockpiled ore are valued at the lower of average production cost or
net realisable value. Production costs include the cost of raw materials, direct labour, mine-site overhead
expenses and depreciation and depletion of mining interests. Net realisable value is calculated as the
estimated price at the time of sale based on prevailing and long-term metal prices less estimated future
production costs to convert the inventories into saleable form and the costs necessary to make the sale.
In-process inventories represent materials that are currently in the process of being converted into finished
goods. The average production cost of finished goods represents the average cost of in-process inventories
incurred prior to the refining process, plus applicable refining costs and associated royalties. Consumables
are valued at the lower of average cost and net realisable value.
(d) Finance income and finance costs
Finance income comprises interest income on funds invested, dividend income. Interest income is
recognised as it accrues in profit or loss, using the effective interest method. Dividend income is recognised
in profit or loss on the date that the Group’s right to receive payment is established, which in the case of
quoted securities is the ex-dividend date.
Finance costs comprise interest expense on borrowings. Borrowing costs that are not directly attributable
to the acquisition, construction or production of a qualifying asset are recognised in profit or loss using the
effective interest method.
Foreign currency gains and losses are reported on a net basis.
40
Equus Mining Limited Annual Report 2022
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
3. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
(e) Plant and equipment
Plant and equipment are recorded at cost less accumulated depreciation, depletion and impairment
charges.
Where an item of plant and equipment comprises major components with different useful lives, the
components are accounted for as separate items of plant and equipment.
Expenditures incurred to replace a component of an item of plant and equipment that is accounted for
separately, including major inspection and overhaul expenditures, are capitalised. Any remaining book value
associated with the component being replaced is derecognised upon its replacement. Directly attributable
costs incurred for major capital projects and site preparation are capitalised until the asset is brought to
a working condition for its intended use. These costs include dismantling and site restoration costs to the
extent these are recognized as a provision.
(f) Depreciation
Management reviews the estimated useful lives, residual values and depreciation methods of the Company’s
property, plant and equipment at the end of each reporting period and when events and circumstances
indicate that such a review should be made. Changes to estimated useful lives, residual values or
depreciation methods resulting from such review are accounted for prospectively.
Plant and equipment cost is depreciated, using the units of production method over their estimated useful
lives. Assets under construction are not depreciated until their construction is substantially complete
and they are available for their intended use. In the case of projects involving the development of mineral
properties, this is when the property has achieved commercial production.
(g) Exploration and evaluation expenditure
Exploration and evaluation expenditure, including the costs of acquiring licences, are capitalised as
intangible exploration and evaluation assets on an area of interest basis, less any impairment losses. Costs
incurred before the Group has obtained the legal rights to explore an area are recognised in profit or loss.
Exploration and evaluation assets are only recognised if the rights of the area of interest are current and
either:
– the expenditures are expected to be recouped through successful development and exploitation of the
area of interest; or
– activities in the area of interest have not at the reporting date, reached a stage which permits a
reasonable assessment of the existence or otherwise of economically recoverable reserves and active and
significant operations in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical
feasibility and commercial viability and facts and circumstances suggest that the carrying amount exceeds
the recoverable amount. For the purposes of impairment testing, exploration and evaluation assets are
allocated to cash-generating units to which the exploration activity relates. The cash generating unit shall not
be larger than the area of interest.
Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of
interest are demonstrable, exploration and evaluation assets attributable to that area of interest are first
tested for impairment and then reclassified to developing mine properties.
Equus Mining Limited Annual Report 2022
41
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
3. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
(h) Financial instruments
Non-derivative financial assets
Recognition and initial measurement
The Group initially recognises trade receivables on the date that they are originated. All other financial assets
are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of
the instrument.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire,
or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which
substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in
such transferred financial assets that is created or retained by the Group is recognised as a separate asset or
liability.
Financial assets and liabilities are offset and the net amount presented in the statement of financial position
when, and only when, the Group has a legal right to offset the amounts and intends either to settle them on
a net basis or to realise the asset and settle the liability simultaneously.
Classification and subsequent measurement
On initial recognition, a financial asset is classified as measured at:
– Amortised cost;
– Fair value through other comprehensive income – equity investment; or
– Fair value through profit or loss.
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its
business model for managing financial assets, in which case all affected financial assets are reclassified on
the first day of the first reporting period following the change in the business model.
A financial asset is measured at amortised cost if it meets both the following conditions and is not
designated as fair value through profit or loss:
– It is held within a business model whose objective is to hold assets to collect contractual cash flows; and
– Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect
to present subsequent changes in the investment’s fair value through OCI. This election is made on an
investment-by-investment basis.
All financial assets not classified as measured at amortised cost or fair value through other comprehensive
income as described above are measured at fair value through profit or loss. This includes all derivative
financial assets. On initial recognition, the Group may irrevocably designate a financial asset that otherwise
meets the requirements to be measured at amortised cost or at fair value through other comprehensive
income as at fair value through profit or loss if doing so eliminates or significantly reduces an accounting
mismatch that would otherwise arise. The Group has trade receivables with embedded derivatives for
provisional pricing. These receivables are generally held to collect but do not meet the SPPI criteria and as a
result must be held at FVTPL.
42
Equus Mining Limited Annual Report 2022
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
3. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
Non-derivative financial liabilities
Financial liabilities are measured at amortised cost.
The Group initially recognises debt securities issued and subordinated liabilities on the date that they are
originated. All other financial liabilities are recognised initially on the trade date, which is the date that the
Group becomes a party to the contractual provisions of the instrument.
The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or
expire.
Other financial liabilities comprise loans and borrowings and trade and other payables.
(i) Basis of consolidation
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has
rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power over the entity. The financial statements of subsidiaries are included in the consolidated
financial statements from the date that control commences until the date that control ceases.
Non-controlling interests
NCI are measured initially at their proportionate share of the acquiree’s identifiable net assets at the date of
acquisition.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as
equity transactions.
Loss of control
When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and
any related NCI and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any
interest retained in the former subsidiary is measured at fair value when control is lost.
Transactions eliminated on consolidation
Intra-group balances and any unrealised gains and losses or income and expenses arising from intragroup
transactions are eliminated in preparing the consolidated financial statements.
(j) Share Capital
Ordinary Shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares
are recognised as a deduction from equity, net of any tax effects.
(k) Trade and other receivables and payables
Trade receivables and payables are carried at amortised cost. For receivables and payables with a remaining
life of less than one year, the notional amount is deemed to reflect the fair value. All other receivables and
payables are discounted to determine the fair value.
Equus Mining Limited Annual Report 2022
43
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
3. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
(l)
Impairment
Non-derivative financial assets
The Group recognises loss allowances to an amount equal to lifetime expected credit losses (ECLs), except for
the following, which are measured at 12-month ECLs:
– Debt securities that are determined to have a low credit risk at the reporting date; and
– Other debt securities and bank balances for which credit risk (i.e the risk of default occurring over the
expected life of the financial instrument) has not increased significantly since initial recognition.
Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime
ECLs.
Measurement of ECLs
ECLs are a probability weighted estimate of credit losses. Credit losses are measured as the present value of
all cash shortfalls. ECL’s are discounted at the effective interest rate of the financial asset.
Non-financial assets
An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit
(CGU) exceeds its recoverable amount. The recoverable amount of an asset or CGU is the greater of their
fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset or CGU. For impairment testing, assets are
grouped together into the smallest group of assets that generates cash inflows from continuing use that are
largely independent of the cash inflows of other assets or CGUs. Impairment losses are recognised in profit or
loss.
Reversals of impairment
An impairment loss in respect of a financial asset carried at amortised cost is reversed if the subsequent
increase in recoverable amount can be related objectively to an event occurring after the impairment loss
was recognised.
In respect of non-financial assets, an impairment loss is reversed if there has been a conclusive change in the
estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that
the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortisation, if no impairment loss had been recognised.
(m) Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three
months or less.
44
Equus Mining Limited Annual Report 2022
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
3. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
(n) Income tax
Current tax and deferred tax is recognised in profit or loss except to the extent that it relates to a business
combination or items recognised directly in equity or in other comprehensive income.
Current tax
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax
rates enacted or substantially enacted at the reporting date, and any adjustment to tax payable in respect of
previous years.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and
liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not
recognised for:
– temporary differences on the initial recognition of assets or liabilities in a transaction that is not a
business combination and that affects neither accounting nor taxable profit or loss;
– temporary differences related to investments in subsidiaries to the extent that the Group is able to
control the timing of the reversal of the temporary differences and it is probable that they will not reverse
in the foreseeable future; or
– taxable temporary differences arising on the initial recognition of goodwill.
The measurement of deferred tax reflects the tax consequences that would follow the manner in which the
Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and
liabilities.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when
they reverse, using tax rates enacted or substantively enacted at the reporting date. Deferred tax assets and
liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets and they
relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but
they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be
realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences to
the extent that it is probable that future taxable profits will be available against which they can be utilised.
Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer
probable that the related tax benefit will be realised.
(o) Foreign currency transactions
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are
retranslated to the functional currency at the exchange rate at the reporting date. The foreign currency
gain or loss on monetary items is the difference between amortised cost in the functional currency at the
beginning of the period, adjusted for effective interest and payments during the period, and the amortised
cost in foreign currency translated at the exchange rate at the end of the reporting period.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are
retranslated to the functional currency at the exchange rate at the date that the fair value was determined.
Foreign currency differences arising on retranslation are recognised in profit or loss, except for differences
arising on the retranslation of investments in equity securities designated as FVOCI, a financial liability
designated as a hedge of the net investment in a foreign operation or qualifying cash flow hedges, which are
recognised in other comprehensive income. Non-monetary items that are measured in terms of historical
cost in a foreign currency are translated using the exchange rate at the date of the transaction.
Equus Mining Limited Annual Report 2022
45
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
3. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
(p) Foreign operations
The assets and liabilities of foreign operations are translated to Australian dollars at foreign exchange rates
ruling at the reporting date. The income and expenses of foreign operations are translated to Australian
dollars at rates approximating the foreign exchange rates ruling at the dates of the transactions. Foreign
exchange differences arising on retranslation are recognised directly in the foreign currency translation
reserve (‘FCTR’), a separate component of equity.
Foreign exchange gains and losses arising from a monetary item receivable or payable to a foreign operation,
the settlement of which is neither planned nor likely in the foreseeable future, are considered to form part of
a net investment in a foreign operation and are recognised directly in the FCTR.
Any references to functional currency, unless otherwise stated, are to the functional currency of the
Company, Australian dollars.
When a foreign operation is disposed of, in part or in full, the relevant amount in the FCTR is transferred to
profit or loss as part of the profit or loss on disposal.
When the settlement of a monetary item receivable from or payable to a foreign operation is neither
planned nor likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary
item are considered to form part of a net investment in a foreign operation and are recognised in other
comprehensive income, and are presented within equity in the FCTR.
(q) Segment reporting
Determination and presentation of operating segments
The Group determines and presents operating segments based on the information that is provided internally
to the Executive Director, who is the Group’s chief operating decision maker.
An operating segment is a component of the Group that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that relate to transactions with any
of the Group’s other components. All operating segments’ operating results are regularly reviewed by the
Group’s Executive Director to make decisions about resources to be allocated to the segment and assess its
performance, and for which discrete financial information is available.
Segment results that are reported to the Executive Director include items directly attributable to a segment
as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate
assets (primarily the Company’s headquarters), head office expenses, and income tax assets and liabilities.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and
equipment, and intangible assets other than goodwill.
(r) Provisions
Provisions are recorded when a present legal or constructive obligation exists as a result of past events,
where it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation, and when a reliable estimate of the amount of the obligation can be made.
The amount recognized as a provision is the best estimate of the consideration required to settle the present
obligation estimated at the end of each reporting period, taking into account the risks and uncertainties
surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present value of those cash flows. When some or all of the
economic benefits required to settle a provision are expected to be recovered from a third party, the
receivable is recognized as an asset.
46
Equus Mining Limited Annual Report 2022
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
3. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
(s) Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Taxation Office. In these circumstances, the GST is recognised
as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in
the balance sheet are shown inclusive of GST.
Cash flows are presented in the 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.
(t) Employee benefits
Short-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the
amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as
a result of past service provided by the employee and the obligation can be estimated reliably.
Share-based payment transactions
The grant-date fair value of share-based payment awards granted is recognised as an employee and
consultants expense, with a corresponding increase in equity, over the period that the employees become
unconditionally entitled to the awards. The amount recognised as an expense is adjusted to reflect the
number of awards for which the related service and non-market vesting conditions are expected to be met,
such that the amount ultimately recognised as an expense is based on the number of awards that meet
the related service and non-market performance conditions at the vesting date. For share-based payment
awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to
reflect such conditions and there is no true-up for differences between expected and actual outcomes.
(u) Determination of fair values
A number of the Group’s accounting policies and disclosures require the determination of fair value for both
financial and non-financial assets and liabilities. Fair values have been determined for measurement and/
or disclosure purposes based on the following methods. When applicable, further information about the
assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.
Investments in equity securities
The fair values of investments in equity securities are determined with reference to the quoted market price
that is most representative of the fair value of the security at the measurement date.
Share-based payment transactions
The fair value of the share options is measured using the Black-Scholes formula. Measurement inputs include
share price on measurement date, exercise price of the instrument, expected volatility (based on weighted
average historic volatility), expected dividends, and the risk-free interest rate (based on government bonds).
The grant-date fair value of share-based payment awards is recognised as an expense, with a corresponding
increase in equity, over the period that the recipient unconditionally become entitled to the awards. The
amount recognised as an expense is adjusted to reflect the number of awards for which the related service
and non-market vesting conditions are expected to be met, such that the amount ultimately recognised as
an expense is based on the number of awards that meet the related service and non-market performance
conditions at the vesting date. For share-based payment awards with non-vesting conditions, the grant date
fair value of the share-based payment is measured to reflect such conditions and there is no true-up for
differences between expected and actual outcomes. Service and non-market performance conditions are not
taken into account in determining fair value.
Equus Mining Limited Annual Report 2022
47
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
3. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
(v) Lease accounting
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
The Group applies a single measurement recognition and approach for all leases, except for short-term leases
and leases of low-value assets. The Group recognises lease liabilities to make lease payments and right-of-use
assets representing the right to use the underlying assets.
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities.
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value
of lease payments to be made over the lease term. The lease payments include fixed payments (including
in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on
an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments
also include the exercise price of a purchase option reasonably certain to be exercised by the Group and
payments of penalties for terminating the lease, if the lease term reflects the Group’s exercising the option
to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses
(unless they are incurred to produce inventories) in the period in which the event or condition that triggers
the payment occurs.
In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the
lease commencement date because the interest rate implicit in the lease is not readily determinable. After
the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if
there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future
payments resulting from a change in an index or rate used to determine such lease payments) or a change in
the assessment of an option to purchase the underlying asset.
48
Equus Mining Limited Annual Report 2022
Notes to the Consolidated Financial Statements
4. LOSS FROM OPERATING ACTIVITIES
Other revenue
For the Year Ended 30 June 2022
2022
$
253,677
253,677
2021
$
-
-
The other revenue relates to the changes between provisionally priced invoices and the final price recorded
per the quotation periods stipulated in the sales contracts.
Other income
Recognised in profit or loss
Government grant
Other expenses
Depreciation
Travel
Audit and review services – KPMG
Accounting and secretarial fees
Legal fees
ASIC and ASX fees
5. FINANCE INCOME AND FINANCE COSTS
Recognised in profit and loss
Interest income on cash deposits
Foreign exchange gain / (loss)
Finance income
Finance costs
2022
$
2021
$
-
-
50,000
50,000
81,920
126,118
134,500
72,922
692,016
112,205
-
-
90,750
28,300
139,012
97,775
1,219,681
355,837
2022
$
2021
$
3,269
3,514
694,872
698,141
(28,525)
-
3,514
-
Net finance income/(costs) recognised in profit or loss
669,616
3,514
Recognised in other comprehensive income
Net change in fair value of equity instruments at fair value
Finance cost recognised in other comprehensive income, net of tax
(13,096)
(13,096)
(999)
(999)
Equus Mining Limited Annual Report 2022
49
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
6. INCOME TAX EXPENSE
Current tax expense
Current year
Overprovision in prior year
Losses not recognised
2022
$
2021
$
(352,838)
(526,520)
-
-
352,838
526,520
-
-
Numerical reconciliation of income tax expense to prima facie tax payable:
Loss before tax
3,984,248
1,719,007
Prima facie income tax benefit at the Australian tax rate of 25% (2021: 26%)
(1,095,668)
(446,942)
Decrease in income tax benefit due to:
- non-deductible expenses
381,100
76,541
- effect of deferred tax asset (DTA) for capital losses not brought to account
-
-
- effect of DTA for tax losses not brought to account
- effect of DTA for temporary differences not brought to account
Income tax expense/(benefit)
687,303
37,876
27,265
332,525
-
-
Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the following items:
Capital losses
Tax losses – Australian entities
Tax losses – Chilean entities
Net deductible temporary differences
Potential tax benefit at 25% (2021: 26%)
5,908,891
5,574,426
4,158,744
4,023,021
14,955,384
-
245,973
272,483
25,268,992
9,869,930
The deductible temporary differences and tax losses do not expire under current tax legislation. Deferred tax
assets have not been recognised in respect of these items because it is not probable that future taxable profit
will be available against which the Group can utilise the benefits there-from. The Australian and Chilean tax
losses do not expire under current tax legislation.
7. CASH AND CASH EQUIVALENTS
Cash at bank
Deposits at call
2022
$
2021
$
1,088,308
615,889
1,060,135
4,108,540
2,148,443
4,724,429
50
Equus Mining Limited Annual Report 2022
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
8. RECEIVABLES
Current
Trade receivables
Income tax paid in advanced
Goods and service tax and value added tax
Other
Non-current
Reimbursement for rehabilitation costs
2022
$
2021
$
1,863,555
181,296
160,038
4,265
2,209,154
-
-
-
51,834
51,834
7,158,568
-
9,367,722
51,834
In accordance with the acquisition agreement, Mandalay Resources Corporation has agreed to contribute
50% of the closure cost up to AU $7,158,568 (plus V.A.T.). The Group has recognised a receivable from
Mandalay in relation to this reimbursement right.
9. INVENTORIES
INVENTORIES
Gold and silver concentrate
Consumables
Impairment of consumables
2022
$
2021
$
1,864,115
1,823,326
(1,361,647)
2,325,794
-
-
-
-
Compañía Minera Cerro Bayo SpA has an offtake agreement with Glencore Chile SpA. (‘Glencore’) for the
supply of gold and silver concentrate. The contract duration of twelve months, from April 2022 to March
2023. The contract can be extended for a period of up to 6 (six) months until September 2023.The price of the
material is calculated using the official LBMA price in USD as published on the Fastmarket MB.
Inventories are measured at the lower of cost and net realisable value.
Equus Mining Limited Annual Report 2022
51
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
10. PREPAID EXPENSES
Prepaid expenses
11. INVESTMENTS
2022
$
574,087
574,087
2021
$
-
-
At 30 June 2022, the Group holds 1,327,000 shares (30 June 2021: 1,327,000) in Blox Inc., a US over the counter
traded company at which had a closing share price of US$0.00048 at 30 June 2021 (30 June 2021: US$0.0078).
The Group recognises its financial assets at fair value and classifies its investments as follows:
2022
$
2021
$
Equity instruments at fair value through other comprehensive income
Equity securities – Investment in Blox Inc.
777
13,803
Equity instruments at fair value through other comprehensive income are equity instruments which the
Group intends to hold for the foreseeable future. Any dividends received are recognised as income in profit
or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains
and losses are recognised in the fair value reserve in OCI and are never reclassified to profit or loss.
Movement of the carrying amount of investment.
Movement during the period
Opening balance
Net change in fair value
Equity securities – at fair value through other comprehensive income
2022
$
13,803
(13,026)
777
2021
$
14,802
(999)
13,803
52
Equus Mining Limited Annual Report 2022
Notes to the Consolidated Financial Statements
12. PLANT AND EQUIPMENT
Plant and office equipment - at cost
Additions
Accumulated depreciation
Foreign currency exchange
Computers - at cost
Additions
Accumulated depreciation
Foreign currency exchange
Motor Vehicles
Additions
Accumulated depreciation
Foreign currency exchange
Total plant and equipment - net book value
For the Year Ended 30 June 2022
2022
$
2021
$
-
108,439
(2,512)
(104)
105,823
-
14,276
(761)
(32)
13,483
-
327,672
(78,647)
(3,271)
245,754
365,060
-
-
-
-
-
-
-
-
-
-
-
-
Equus Mining Limited Annual Report 2022
53
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
12. PLANT AND EQUIPMENT (Cont’d)
Reconciliations of the carrying amounts for each class of plant and
equipment are set out below:
Plant and office equipment
Balance at 1 July
Additions
Depreciation
Foreign currency exchange
Carrying amount at the end of the financial year
Computers
Balance at 1 July
Additions
Depreciation
Foreign currency exchange
Carrying amount at the end of the financial year
Motor Vehicles
Balance at 1 July
Addition new lease
Depreciation
Foreign currency exchange
Carrying amount at the end of the financial year
Total carrying amount at the end of the financial year
2022
$
2021
$
-
108,439
(2,512)
(105)
105,823
-
14,276
(761)
(32)
13,483
-
327,672
(78,647)
(3,271)
245,754
365,060
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
54
Equus Mining Limited Annual Report 2022
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
13. EXPLORATION AND EVALUATION EXPENDITURE
Los Domos gold-silver
Cerro Diablo gold-silver
Cerro Bayo
Net Book Value
Los Domos gold-silver
Carrying amount at the beginning of the year
Additions
Foreign currency translation movement
Balance carried forward
Cerro Diablo gold-silver
Carrying amount at the beginning of the year
Additions
Foreign currency translation movement
Balance carried forward
Cerro Bayo
Carrying amount at the beginning of the year
Additions
Additions via acquisition of Compañía Minera Cerro Bayo
Foreign currency translation movement
Balance carried forward
Net book value
2022
$
2021
$
4,374,815
4,979,807
73,478
72,404
18,643,303
6,151,463
23,091,596
11,203,674
4,979,807
4,743,528
45,466
70,044
(650,458)
166,235
4,374,815
4,979,807
72,404
11,443
(10,369)
73,478
58,423
11,751
2,230
72,404
6,151,463
2,093,325
4,895,336
3,941,212
8,552,360
-
(955,856)
116,926
18,643,303
6,151,463
23,091,596
11,203,674
The ultimate recoupment of exploration and evaluation expenditure is dependent on the successful
development and commercial exploitation, or alternatively sale of the respective areas of interest.
Equus Mining Limited Annual Report 2022
55
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
14. TRADE AND OTHER PAYABLES
Current liabilities
Trade creditors and accruals
Employee leave entitlements
15. LEASE LIABILITY
Current
Non-current
2022
$
2021
$
2,688,123
842,710
287,613
51,315
2,975,736
894,025
2022
$
2021
$
165,360
82,680
-
-
248,040
894,025
16. PROVISION FOR REHABILITATION
Compañía Minera Cerro Bayo has a closure plan approved by the Chilean National Service of Geology and
Mining (Sernageomin) dated 17 May 2019 and amended on 23 June 2020. The closure plan cost is the amount
of 332.65 UF (Chilean Unidades de Fomento) AU $14,207,888 (plus V.A.T.) as determined by Sernageomin. In
accordance with the acquisition agreement, Mandalay Resources Corporation has agreed to contribute 50%
of the closure cost up to AU $7,158,568 (plus V.A.T.). The Group has recognised a receivable from Mandalay in
relation to this contribution.
56
Equus Mining Limited Annual Report 2022
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
17. ISSUED CAPITAL
(a) Fully paid ordinary shares
2022
2021
Nº
$
Nº
$
Balance at beginning of financial year
2,296,617,251 129,460,300 1,412,045,355 121,182,362
Issued ordinary shares 20 July 2020 for $0.009
Issued ordinary shares 20 September 2020 for $0.009
Issued ordinary shares 9 December 2020 – non cash
Issued ordinary shares 14 January 2021 – non cash
Issued ordinary shares 3 February 2021 for $0.015
Issued ordinary shares 24 February 2021 – non cash
Issued ordinary shares 12 May 2021 – non cash
Issued ordinary shares 28 May 2021 for $0.0111
Issued ordinary shares 18 June 2021 for $0.011
348,886,300
3,139,977
40,002,589
360,023
3,300,000
36,300
11,538,462
150,000
2,000,000
1,250,000
750,000
30,000
16,375
9,375
431,390,000
4,745,290
45,454,545
500,000
Issued ordinary shares 7 July 2021 for $0.011 11
204,973,636
2,254,710
Issued ordinary shares 14 September 2021 – non cash2
1,250,000
Issued ordinary shares 1 October 2021 – non cash3
2,500,000
14,000
25,000
Issued ordinary shares 2 December 2021 – non cash4
587,502,438
5,287,522
Consolidation of 1 share for every 20
(2,938,201,665)
-
Issued ordinary shares 16 December 2021 for $0.175
13,080,000
2,223,600
Issued ordinary shares 9 February 2022 for $0.175
6,355,294
1,080,400
Less cost of issue
-
(168,389)
(709,402)
174,076,954 140,177,143 2,296,617,251 129,460,300
1 On 21 May 2021, the Company announced a share placement of 636,363,636 shares in two tranches:
– Pursuant to tranche 1, the Company issued 431,390,000 ordinary shares under the offer at $0.011 per share raising $4,745,290 before costs
during the financials ended 30 June 2021.
– Pursuant to tranche 2, the Company issued 204,973,636 ordinary shares under the offer at $0.011 per share raising $2,254,710 before costs.
2 Shares issued on 14 September 2021 related to the issued of shares as consideration for Geological Technical Services provided in connection
with the Cerro Bayo project in southern Chile.
3 Shares issued on 1 October 2021 related to the issued of shares to John Sadek appointed as Country Manager in Chile as part of his
employment agreement.
4 Shares issued on 2 December 2021 related to the acquisition of the issued capital of Compañía Minera Cerro Bayo Limited.
5 On 8 December 2021, the Company announced a share placement of 19,435,294 shares in two tranches:
– Pursuant to tranche 1, the Company issued 13,080,000 ordinary shares under the offer at $0.17 per share raising $2,223,600 before costs
during the half year ended 31 December 2021.
– Pursuant to tranche 2, the Company issued 6,355,294 ordinary shares under the offer at $0.17 per share raising $1,080,400 before costs
during February 2022.
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled
to one vote per share at the shareholders meetings. In the event of winding up of the Company, ordinary
shareholders rank after creditors and are fully entitled to any proceeds of liquidation.
Equus Mining Limited Annual Report 2022
57
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
17. ISSUED CAPITAL (Cont’d)
(b) Share Options
During the year ended 30 June 2022, there were no options granted by the Group, the following options were
grated during the year ended 30 June 2021:
– The Company announced on 20 July 2020, a share placement of 19,444,444 shares post-consolidation. For
every one placement share, the company issued one free attaching option. The options are unlisted and
have an exercise price of $0.30 post-consolidation, vest immediately and expire on 16 September 2023.
The Company has recognised these options as part of the issued share capital amount recorded of
$3,500,000 within equity and no allocation to reserves has been made in accordance with the Group’s
accounting policy.
– The Company announced on 20 July 2020, pursuant to the share placement to grant 750,000 unlisted
options post-consolidation to the brokers of the placement. The options have an exercise price of $0.30,
vest immediately and expire on 16 September 2023.
The fair value of the options was $192,585. The Black-Scholes formula model inputs were the Company’s
share price of $0.34 post-consolidation at the grant date, a volatility factor of 129.63% based on historical
share price performance and a risk-free interest rate of 0.24% based on the 3-year government bond rate.
As the options are not subject to vesting conditions, the total grant date fair value of $192,585 has been
recognised in equity as cost of the offer in the year ended 30 June 2021.
– During the year ended 30 June 2022 the Company has not granted options to Directors of the Company
(2021: options 1,250,000 post-consolidation).
On 25 November 2020, 20,000,000 unlisted options were granted to the Managing Director (‘MD’) and
5,000,000 unlisted options were granted to the Chief Operating Officer (‘COO’) as follows:
Number of
options
Post-
concolidation
Exercise
price
Post-
consolidation
Fair Value
per Option at
Grant Date
Post-
Vesting
Expiry Date
consolidation Fair Value
Tranche 1
Tranche 2
Tranche 3
416,666
416,666
416,666
$0.44
$0.50
$0.54
Immediately 25 November 2023
Immediately 25 November 2024
Immediately 25 November 2025
$0.14
$0.16
$0.18
$58,333
$66,667
$75,000
The fair value of the options granted on 25 November 2020 to the MD and the COO was $200,000. The
Black-Scholes formula model inputs were the Company’s share price of $0.22 post-consolidation at the
grant date, a volatility factor of 136.2% based on historical share price performance and a risk-free interest
rate of 0.11% based on the 3-year government bond rate.
– On 1 December 2020, 125,000 unlisted options post-consolidation were granted to the Group’s Exploration
Manager. The options have an exercise price of $0.44 post-consolidation, vest immediately and expire on 1
December 2023.
The fair value of the options granted to the Exploration Manager was $20,000. The Black-Scholes formula
model inputs were the Company’s share price of $0.24 post-consolidation at the grant date, a volatility
factor of 137.27% based on historical share price performance and a risk-free interest rate of 0.12% based
on the 3-year government bond rate.
– The options issued to the MD, COO and the Exploration manager are not subject to vesting conditions,
the total grant date fair value of $220,000 (30 June 2020: $338,833) has been recognised as an expense
in the year ended 30 June 2021. The expense has been included in “employee, director and consultants
costs” in the income statement.
58
Equus Mining Limited Annual Report 2022
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
17. ISSUED CAPITAL (Cont’d)
The following unlisted options were on issue as at 30 June 2022:
Opening Balance
1 July 2021
Post-
consolidation
Number
Exercise
Price
Post-
consolidation
$
Granted during
the year
Post-
consolidation
Number
Expired during
the year
Post-
consolidation
Number
Exercised
during the year
Post-
consolidation
Number
Closing Balance
30 June 2022
Post-
consolidation
Number
250,000
250,000
333,333
333,333
333,333
416,666
416,666
416,666
125,000
20,094,427
1.00
1.40
0.54
0.60
0.70
0.44
0.50
0.54
0.44
0.30
-
-
-
-
-
-
-
-
-
-
(250,000)
-
(333,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
250,000
-
333,333
333,333
416,666
416,666
416,666
125,000
20,094,427
The following unlisted options were on issue as at 30 June 2021:
Opening Balance
1 July 2020
Post-
consolidation
Number
Exercise
Price
Post-
consolidation
$
Granted during
the year
Post-
consolidation
Number
Expired during
the year
Post-
consolidation
Number
Exercised
during the year
Post-
consolidation
Number
Closing Balance
30 June 2021
Post-
consolidation
Number
250,000
250,000
250,000
333,333
333,333
333,333
-
-
-
-
-
0.60
1.00
1.40
0.54
0.60
0.70
0.44
0.50
0.54
0.44
0.30
250,000
250,000
250,000
333,333
333,333
333,333
416,666
416,666
416,666
125,000
20,194,427
(250,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
250,000
250,000
333,333
333,333
333,333
416,666
416,666
416,666
125,000
(100,000)
20,094,427
Equus Mining Limited Annual Report 2022
59
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
18. RESERVES
Fair value reserve (a)
Foreign currency translation reserves (b)
Equity based compensation reserve (c)
Movements during the period:
(a) Fair value reserve
Balance at beginning of period
Net change in fair value
Balance at end of period
(b) Foreign currency translation reserves
Balance at beginning of period
Currency translation differences
Balance at end of period
(c) Equity based compensation reserve
Balance at beginning of period
Share based payment – vested share options
Options expired during the period
Balance at end of period
Nature and purpose of reserves
Fair value reserve:
2022
$
2021
$
388,066
401,162
(2,358,497)
(981,096)
618,918
717,918
(1,351,513)
137,984
401,162
402,161
(13,096)
(999)
388,066
401,162
(981,096)
(1,234,022)
(1,377,401)
252,926
(2,358,497)
(981,096)
717,918
338,833
-
412,585
(99,000)
(33,500)
618,918
717,918
The fair value reserve comprises the cumulative net change in the fair value of equity securities designated at
fair value through other comprehensive income.
Foreign currency translation reserve:
The foreign currency translation reserve records the foreign currency differences arising from the translation
of the financial statements of foreign operations where their functional currency is different to the
presentation currency of the reporting entity.
Equity based compensation reserve:
The equity based compensation reserve is used to record the options issued to directors and executives of
the Company as compensation.
60
Equus Mining Limited Annual Report 2022
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
2022
$
2021
$
19. LOSS PER SHARE
Basic and diluted loss per share has been calculated using:
Net loss for the year attributable to equity holders of the parent
(3,981,385)
(1,716,498)
Weighted average number of ordinary shares (basic and diluted)
Issued ordinary shares at beginning of year
Share consolidation
Effect of shares issued (Note 17)
2,296,617,251 1,412,045,355
(2,181,786,893)
-
36,674,841
410,859,626
Weighted average ordinary shares at the end of the year
151,505,199 1,822,904,981
As the Group is loss making, none of the potentially dilutive securities are currently dilutive in the calculation
of total earnings per share.
20. RECONCILIATION OF CASH FLOWS
FROM OPERATING ACTIVITIES
Cash flows from operating activities
Loss for the year
Non-cash items
Depreciation
Impairment consumables
Share based payments
Foreign currency exchange loss/(gain)
Changes in assets and liabilities
Decrease/(increase) in receivables
Decrease/(increase) in inventories
Decrease/(increase) in other assets
(Decrease)/Increase in payables
Decrease/(increase) in provisions
2022
$
2021
$
(3,984,246)
(1,719,007)
81,920
1,361,647
-
-
39,000
220,000
(698,141)
4,914
(153,700)
(33,728)
306,181
(574,087)
396,992
236,298
-
-
285,206
-
Net cash used in operating activities
(2,988,136)
(1,242,615)
Reconciliation of cash
For the purposes of the statement of cash flows, cash includes cash on
hand and at bank and cash on deposit net of bank overdrafts and excluding
security deposits. Cash at the end of the financial year as shown in the
statement of cash flows is reconciled to the related items in the statement
of financial position as follows:
Cash and cash equivalents
2,148,443
4,724,429
Equus Mining Limited Annual Report 2022
61
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
21. SHARE BASED PAYMENT
No options were granted during the year ended 30 June 2022 to Directors of the Company to acquire options
over unissued ordinary shares in the Company (2021: 1,250,000 post-consolidation).
The terms and conditions of the options held by key management personnel during the year ended 30 June
2022 are as follows:
Grant date
Expiry date Vesting date
14 October
2019
13 November
2023
14 October
2019
29 November
2019
13 November
2022
29 November
2019
29 November
2019
13 November
2024
29 November
2019
25 November
2020
25 November
2023
25 November
2020
25 November
2020
25 November
2024
25 November
2020
25 November
2020
25 November
2025
25 November
2020
Exercise
price
Post-
Consolidation
Fair
value of
options
granted
Total
granted
Number
Post-
consolidation
Balance
at end of
the period
Post-
consolidation
Total
Exercised
Number
$1.40
$59,000
250,000
$0.60
$67,333
333,333
$0.70
$80,000
333,333
$0.44
$58,334
416,666
$0.50
$66,666
416,666
$0.54
$75,000
416,666
-
-
-
-
-
-
250,000
333,333
333,333
416,666
416,666
416,666
Weighted average of options in the equity based compensation reserve during the year
Number of
options
2021
Post-consolidation
Weighted average
exercise price
2021
Post-consolidation
Number of
options
2021
Post-consolidation
Weighted average
exercise price
2021
Post-consolidation
Outstanding
2,166,664
$0.627
2,750,000
$0.78
The equity based compensation reserve is used to record the options issued to directors and executives of
the Company as compensation. Options are valued using the Black-Scholes option pricing model.
The weighted average remaining contractual life of share options outstanding at the end of the year in the
equity based compensation reserve was 1.97 years (2021 – 2.42).
During the year, no ordinary shares were issued as a result of the exercise of options granted to Directors
(2021 – nil).
62
Equus Mining Limited Annual Report 2022
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
22. RELATED PARTIES
Parent and ultimate controlling party
Equus Mining Limited is both the parent and ultimate controlling party of the Group.
Key management personnel and director transactions
During the year ended 30 June 2022 and 2021, no key management persons, or their related parties, held
positions in other entities that provide material professional services resulting in them having control or joint
control over the financial or operating policies of those entities.
23. KEY MANAGEMENT PERSONNEL DISCLOSURES
Information regarding individual key management personnel’s compensation and some equity instruments
disclosures as permitted by Corporations Act and Corporations Regulations 2M.3.03 are provided in the
Remuneration Report section of the Director’s Report.
Key management personnel compensation
Primary fees/salary
Bonus
Superannuation
Share based payment
Short term benefits
2022
$
2021
$
776,150
175,000
78,125
467,061
-
41,206
-
200,000
67,459
18,268
1,096,734
726,535
At 30 June 2022 $22,492 fees were outstanding (2021 – $nil). There were no loans made to key management
personnel or their related parties during the 2022 and 2021 financial years.
The Board reviews remuneration arrangements annually based on services provided. Apart from the details
disclosed in this note, there were no material contracts involving Directors’ interest’s existing at year-end.
24. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS DISCLOSURE
The Group’s financial instruments comprise deposits with banks, receivables, trade and other payables and
from time to time short term loans from related parties. The Group has trade receivables with embedded
derivatives for provisional pricing.
The main risks arising from the Group’s financial instruments are market risk, credit risk and liquidity risks.
This note presents information about the Group’s exposure to each of these risks, its objectives, policies and
processes for measuring and managing risk, and the Group’s management of capital.
Risk management framework
The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk
management framework. Risk management policies are established to identify and analyse the risks faced
by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. These
policies are reviewed regularly to reflect changes in market conditions and the Group’s activities. The primary
responsibility to monitor the financial risks lies with the Managing Director and the Company Secretary
under the authority of the Board.
Equus Mining Limited Annual Report 2022
63
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
24. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS DISCLOSURE (Cont’d)
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligation as they fall due. The
Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Group’s reputation.
The Group monitors rolling forecasts of liquidity based on expected fund raisings, trade payables and
other obligations for the ongoing operation of the Group. At balance date, the Group has available funds of
$2,148,443 for its immediate use.
The following are the contractual maturities of financial liabilities:
Financial liabilities
Trade and other payables
30 June 2022
30 June 2021
Carrying
amount
$
Contractual
cash flows
$
Less than
6 months
$
6 to 12
months
$
1 to 5
years
$
More than
5 years
$
3,223,776
(3,223,776)
(3,058,416)
(82,680)
(82,680)
894,025
(894,025)
(894,025)
-
-
-
-
It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at
significantly different amounts.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails
to meet its contractual obligations.
The carrying amount of the Group’s financial assets represents the maximum credit risk exposure as follows:
Cash and cash equivalents
Receivables
Other receivables
Cash and cash equivalents
2022
$
2021
$
2,148,443
4,724,429
2,209,154
7,158,568
51,834
-
11,516,165
4,776,263
At 30 June 2022, the Group held cash and cash equivalents of $2,148,443 (2021: $4,724,429), which represents
its maximum credit exposure on these assets. The cash and cash equivalents are held with reputable banks
and financial institution counterparties, which are rated AA- to AAA+, based on rating agency ‘Moody’s
rating’.
64
Equus Mining Limited Annual Report 2022
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
24. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS DISCLOSURE (Cont’d)
Receivables
For the year ended 30 June 2022, the Group holds US$1,863,555 of trade receivables and the Company
considers its trade receivables to be of low risk as the Company has one contractual debtor. Other receivables
primariliy relates to the receivable from Mandalay Resources to cover 50% of the closure costs of Cerro Bayo.
The Group has assessed the credit risk associated with the Mandalay Resources receivable and considers the
risk to be low at 30 June 2022.
The remaing other receivables are with government departments for the recoupment of VAT and prepaid
taxes.
Market risk
Market risk is the risk that changes in market prices, such as commodity prices, foreign exchange rates,
interest rates and equity prices will affect the Group’s income or the value of its holdings of financial
instruments. The objective of market risk management is to manage and control market risk exposures
within acceptable parameters, while optimising the return.
The Group sell products to their customer under a contract that includes a provisional pricing mechanism
and the revenue generated from the sales will be adjusted if the product does not conform to the terms
specified in the sales contract. At the date revenue is recognised, the product is provisionally priced for
a three month quotational period at the LBMA Gold and Silver prices published on Fastmarkets MB and
adjusted for the average price over the quotational period. The Group is exposed to fluctuations in these
prices.
Interest Rate Risk
The Group’s exposure to market interest rate relates to cash assets
At balance date, the Group interest rate risk profile in interest bearing financial instruments was:
Cash and cash equivalents
2022
$
2021
$
2,148,443
4,724,429
There are no fixed rate instruments (2021 - $nil) and the Group does not have interest rate swap contracts.
Sensitivity analysis
A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) profit
for the period by current and prior reporting date would have increased/(decreased) equity and loss for the
period by an immaterial amount.
Equus Mining Limited Annual Report 2022
65
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
24. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS DISCLOSURE (Cont’d)
Currency risk
The Group is exposed to currency risk on bank accounts denominated in USD and CLP.
2022
CLP
2021
CLP
569,013,794
19,501,856
2022
USD
45,262
2021
USD
15
Sensitivity analysis
The following sensitivity analysis is based on the exchange rates exposure at balance date.
+10% higher exchange rate
-10% lower exchange rate
Price risk
Post-tax profit/(loss)
Higher/(lower)
2022
$
87,767
(107,271)
Total equity
Higher/(lower)
2022
$
87,767
(107,271)
The Group is exposed to equity securities price risk. This arises from investments held by the Group and
classified in the balance sheet as other financial assets.
The Group’s investments are publicly traded on the Over-The-Counter-Market (‘OTC market’) in the USA.
Sensitivity analysis
A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) profit
for the period by current and prior reporting date would have increased/(decreased) equity and loss for the
period by an immaterial amount.
Capital management
Management aim to control the capital of the Group in order to maintain an appropriate debt to equity
ratio, provide the shareholders with adequate returns and ensure that the Group can fund its operations and
continue as a going concern.
The Group’s capital includes ordinary share capital supported by financial assets. There are no externally
imposed capital requirements on the Group.
Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting
its capital structure in response to changes in these risks and in the market. These responses include the
management of cash levels, distributions to shareholders and share issues.
There have been no changes in the strategy adopted by management to control the capital of the Group
since the prior year.
66
Equus Mining Limited Annual Report 2022
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
24. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS DISCLOSURE (Cont’d)
Financial instruments carried at fair value
The carrying amounts of financial assets and financial liabilities included in the balance sheet approximate
fair values.
The table below analyses financial instruments carried at fair value, by valuation method. The different levels
have been defined as follows:
– Level 1 - fair value measurements are those instruments valued based on quoted prices (unadjusted) in
active markets for identical assets or liabilities.
– Level 2 - fair value measurements are those instruments valued based on inputs other than quoted
prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices).
– Level 3 - fair value measurements are those instruments valued based on inputs for the asset or liability
that are not based on observable market data (unobservable inputs).
Equity instruments at fair value through other comprehensive* income
30 June 2022
30 June 2021
Equity instruments at fair value through profit and loss**
30 June 2022
30 June 2021
Level 1
$
Level 2
$
Level 3
$
Total
$
-
-
-
-
777
13,803
1,863,555
-
-
-
-
-
777
13,803
1,865,555
-
* The financial assets held at fair value through other comprehensive income relate to investments held in quoted equity securities.
** The financial assets held at fair value through profit and loss relate to trade receivables including provisionally priced invoices. The related
revenue is based on forward market selling prices for the quotation periods stipulated in the contract with changes between the provisional
price and the final price recorded as other revenue. The selling price can be measured reliably for the Group’s products, as it operates in
active and freely traded commodity markets.
Equus Mining Limited Annual Report 2022
67
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
25. CONTROLLED ENTITIES
Parent entity
Equus Mining Limited is an Australian incorporated company listed on the Australian Securities Exchange.
Wholly owned controlled entities
Country of incorporation
2022 %
2021 %
Ownership Interest
Hotrock Enterprises Pty Ltd (i)
Okore Mining Pty Ltd
Dataloop Pty Ltd
Equus Resources Pty Ltd (ii)
(i) Subsidiary of Hotrock Enterprises Pty Ltd
Derrick Pty Ltd
Andean Coal Pty Ltd (iii)
(iii) Subsidiary of Andean Coal Pty Ltd
Minera Carbones Del Sur SpA
(ii) Subsidiary of Equus Resources Pty Ltd
Equus Resources Chile SpA (iv)
Minera Equus Chile SpA
Southern Gold SpA (v)
(iv) Subsidiary of Equus Resources Chile SpA
Minera Equus Chile SpA
(v) Subsidiary of Southern Gold SpA
Equus Patagonia SpA
(vi) Subsidiary of Minera Equus SpA
Compañía Minera Cerro Bayo SpA
26. COMMITMENTS
Exploration expenditure commitments
Australia
Australia
Australia
Australia
Australia
Australia
Chile
Chile
Chile
Chile
Chile
Chile
Chile
100
100
100
100
100
100
100
100
100
100
100
100
99.9
99.9
100
0.1
100
100
0.1
100
99.9
99.9
75
100
75
-
The Group does not have any minimum expenditure commitments in relation to its mineral interests in the
Cerro Bayo project, Los Domos Gold-Silver project, or Cerro Diablo project.
27. SUBSEQUENT EVENTS
On 2 September 2022, the Company issued 12,755,000 ordinary shares to institutional investors at an issue
price of $0.10 raising $1,275,500 before costs.
Other than the matters detailed above, no other matters or circumstances have arisen in the interval
between the end of the financial year and the date of this report any item, transaction or event of a material
or unusual nature likely, in the opinion of the Directors of the Company, to affect significantly the operations
of the Group, the results of those operations, or the state of affairs of the Group, in future financial years.
68
Equus Mining Limited Annual Report 2022
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
28. ACQUISITION OF CONTROLLED ENTITIES
During the year ended 30 June 2022, the Company acquired 100% of the issued capital of Compañía Minera
Cerro Bayo SpA (‘CMCB’). As consideration for CMCB the Company issued 587,502,438 ordinary shares pre-
consolidation(equivalent to a fair value of $5,287,522, based on the listed share price of the Company at 1
December 2021 of $0.009 per share pre-consolidation) to the vendor Mandalay Resources Corporation. CMCB
is situated nearby Equus’s Los Domos and Cerro Diablo Projects. The CMCB mining property comprises
29,495 hectares of mining claims and includes an operational 1,500tpd flotation processing plant.
From 1 December 2021 to 30 June 2022 CMBC contributed revenue of $15,876,376 and loss of $1,771,022 to
the Group’s results. If the acquisition had occurred on 1 July 2021, management estimates that consolidated
revenue would have been $26,012,575 and consolidated loss for the year would have been $3,819,550. In
determining these amounts, management has assumed that the fair value adjustments, determined
provisionally, that arose on the date of acquisition would have been the same if the acquisition had occurred
on 1 July 2021.
The acquisition of CMBC had the following effect on the Group’s assets and liabilities on acquisition date,
determined on a provisional basis:
Cash
Trade receivables
Inventories
Exploration and evaluation assets
Property, plant and equipment
Non-current receivable
Trade and other payables
Rehabilitation provision
Pre-acquisition
carrying amounts
$
Fair value
adjustment
$
Recognised value
on acquisition
$
38,366
1,985,524
3,318,260
66,986
-
-
(1,448,421)
(14,317,135)
-
-
-
8,485,374
-
7,158,568
-
38,366
1,985,524
3,318,260
8,552,360
-
7,158,568
(1,448,421)
(14,317,135)
(10,356,420)
15,643,942
5,287,522
No fair value has been allocated to the processing plant and related infrastructure due to it being highly
uncertain that the Group will be able to generate net cash inflows from its use. The ability to generate net
cash inflows from these assets is dependent on the Group obtaining access to ore of sufficient grade to feed
the processing plant (either from its exploration activities or existing waste ore stockpiles) and is sensitive to
fluctuations in commodity prices, stockpile grades, processing plant performance and cash operating costs.
Compañía Minera Cerro Bayo Limitada operations are subject to specific Chilean environmental regulations.
In accordance with the sale and purchase agreement, 50% of the rehabilitation cost up to $7,158,567 is
payable by Mandalay Resources Corporation this amount has been recognised as a non-current receivable.
The above fair values recognised on acquisition are determined on a provisional basis. If new information is
obtained within one year of the date of acquisition about facts and circumstances that existed at the date of
acquisition identifies adjustments to the above amounts, or any additional provisions that existed at the date
of acquisition, then the accounting for the acquisition will be revised.
The Group incurred $108,211 in costs related to the acquisition of CMBC
Equus Mining Limited Annual Report 2022
69
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
29. OPERATING SEGMENTS
The Group’s chief operating decision maker has considered the requirements of AASB 8, Operating
Segments, and has concluded that, during the year ended 30 June 2022, the reportable segments of the
Group are mineral processing and mineral exploration within the geographical segment of Chile.
30 June 2022
External revenues
Processing
$
Mineral Exploration
$
Total
$
15,876,376
-
15,876,376
Reportable segment profit /(loss) before tax
(1,771,022)
(406,479)
(2,177,501)
Interest income
Interest expense
Depreciation
Impairment of consumables
-
(28,525)
(81,920)
(1,361,647)
2
-
-
-
2
(28,525)
(81,920)
(1,361,647)
Reportable segment assets
Reportable segment liabilities
12,058,576
16,623,774
23,091,596
483,677
35,150,172
17,107,451
30 June 2021
External revenues
Reportable segment profit /(loss) before tax
Interest income
Interest expense
Depreciation
Reportable segment assets
Reportable segment liabilities
-
-
-
-
-
-
-
-
(109,502)
(109,502)
-
-
-
-
11,339,830
11,339,830
564,102
564,102
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Equus Mining Limited Annual Report 2022
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
29. OPERATING SEGMENTS (Cont’d)
Reconciliations of reportable segment revenues and profit or loss
Revenues
Total revenue for reportable segments
Total revenue unallocated
Consolidated revenue
Profit or loss
2022
$
2021
$
15,876,376
-
15,876,376
-
-
-
Total loss for reportable segments
(2,177,501)
(109,502)
Unallocated amounts:
Other income
Net finance income
Net other corporate expenses
Consolidated loss before tax from continuing operations
Assets
Total assets for reportable segments
Unallocated corporate assets
Consolidated total assets
Liabilities
Total liabilities for reportable segments
Unallocated corporate liabilities
Consolidated total liabilities
Geographical information
-
3,337
50,000
3,514
(1,810,082)
(1,663,019)
(3,984,246)
(1,719,007)
35,150,172
11,339,830
2,723,307
4,653,910
37,873,479
15,993,740
17,107,451
324,213
17,431,664
564,102
329,923
894,025
In presenting information on the basis of geography, segment revenue and segment assets are based on the
geographical location of the operations.
2022
2021
Revenue
$
15,876,376
Non-current assets
$
Revenues
$
Non-current assets
$
30,615,223
-
11,203,674
Chile
Equus Mining Limited Annual Report 2022
71
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
30. PARENT ENTITY DISCLOSURES
As at, and throughout the financial year ended 30 June 2022 the parent entity of the Group was Equus
Mining Limited.
Result of the parent entity
Net (loss)/profit
Other comprehensive income
Total comprehensive profit/(loss)
Financial position of the parent entity at year end
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Accumulated losses
Reserve
Total equity
Company
2022
$
2021
$
(5,823,935)
(13,727,852)
-
-
(5,823,935)
(13,727,852)
1,150,218
4,640,107
19,489,788
11,224,795
20,640,006
15,864,902
324,215
329,923
-
-
324,215
329,923
20,315,791
15,534,979
140,177,143
129,460,300
(120,868,336)
(115,044,401)
1,006,984
1,119,080
20,315,791
15,534,979
The Directors are of the opinion that no commitments or contingent liabilities existed at or subsequent to
year end.
72
Equus Mining Limited Annual Report 2022
Directors’ Declaration
1.
In the opinion of the Directors of Equus Mining Limited (the ‘Company’):
(a)
the consolidated financial statements and notes there to, set out on pages 34 to 72, and the
Remuneration Report as set out on pages 27 to 31 of the Directors’ Report are 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 2022 and of its
performance, for the financial year ended on that date;
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
The Directors have been given the declarations required under section 295A of the Corporations Act 2001
for the financial year ended 30 June 2022.
The Director’s draw attention to Note 2(a) to the consolidated financial statements, which includes a
statement of compliance with International Financial Reporting Standards.
2.
3.
Signed at Sydney this 30th day of September 2022 in accordance with a resolution of the Board of Directors:
Mark H. Lochtenberg
Director
John R. Braham
Director
Equus Mining Limited Annual Report 2022
73
Independent Auditor’s Report
Independent Auditor’s Report
To the shareholders of Equus Mining Limited
Report on the audit of the Financial Report
Opinion
We have audited the Financial Report of Equus Mining
Limited (the Company).
In our opinion, the accompanying Financial Report of
the Company is in accordance with the Corporations
Act 2001, including:
•
•
giving a true and fair view of the Group's financial
position as at 30 June 2022 and of its financial
performance for the year ended on that date; and
complying with Australian Accounting Standards
and the Corporations Regulations 2001.
The Financial Report comprises:
•
•
•
•
Consolidated statement of financial position as at
30 June 2022;
Consolidated statement of profit or loss and other
comprehensive income, Consolidated statement
of changes in equity, and Consolidated statement
of cash flows for the year then ended;
Notes including a summary of significant
accounting policies; and
Directors’ Declaration.
The Group consists of the Company and the entities it
controlled at the year-end or from time to time during
the financial year.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the
Financial Report section of our report.
We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants
(including Independence Standards) (the Code) that are relevant to our audit of the Financial Report in Australia. We
have fulfilled our other ethical responsibilities in accordance with the Code.
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and
logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by
a scheme approved under Professional Standards Legislation
74
Equus Mining Limited Annual Report 2022
Independent Auditor’s Report
Material uncertainty related to going concern
We draw attention to Note 2(d), “Going Concern” in the financial report. The conditions disclosed in Note 2(d),
indicate a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going
concern and, therefore, whether it will realise its assets and discharge its liabilities in the normal course of business,
and at the amounts stated in the financial report. Our opinion is not modified in respect of this matter.
In concluding there is a material uncertainty related to going concern, we evaluated the extent of uncertainty
regarding events or conditions casting significant doubt in the Group’s assessment of going concern. This included:
•
•
•
•
Analysing the cash flow projections by:
-
-
Evaluating the underlying data used to generate the projections for consistency with other information
tested by us, our understanding of the Group’s intentions, and past results and practices;
Assessing the planned levels of operating and capital expenditures for consistency of relationships and
trends to the Group’s historical results, results since year end, and our understanding of the business,
industry and economic conditions of the Group;
Assessing significant non-routine forecast cash inflows and outflows, including the expected impact of planned
debt and capital raisings for feasibility, quantum and timing. We used our knowledge of the client, its industry
and current status of those initiatives to assess the level of associated uncertainty;
Reading minutes of Directors’ meetings and relevant correspondence with the Group’s advisors to understand
the Group’s ability to raise additional funds, and assessed the level of associated uncertainty;
Evaluating the Group’s going concern disclosures in the financial report by comparing them to our
understanding of the matter, the events or conditions incorporated into the cash flow projections assessment,
the Group’s plans to address those events or conditions, and accounting standard requirements. We
specifically focused on the principal matters giving rise to the material uncertainty.
Key Audit 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:
Key Audit Matters are those matters that, in our
professional judgment, were of most significance in
our audit of the Financial Report of the current
period.
•
•
Exploration and evaluation expenditure; and
Acquisition accounting.
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.
69
Equus Mining Limited Annual Report 2022
75
Independent Auditor’s Report
Exploration and evaluation expenditure ($23,091,596)
Refer to Note 13 to the Financial Report
The key audit matter
How the matter was addressed in our audit
Capitalised exploration and evaluation (E&E)
expenditure is a key audit matter due to:
• The significance of the activity to the Group’s
business and the balance (being 61% of total
assets); and
• The greater level of audit effort to evaluate the
Group’s application of the requirements of the
industry specific accounting standard AASB 6
Exploration for and Evaluation of Mineral
Resources, in particular the conditions allowing
capitalisation of relevant expenditure and the
presence of impairment indicators. The presence
of impairment indicators would necessitate a
detailed analysis by the Group of the value of
capitalised E&E, therefore given the criticality of
this to the scope and depth of our work, we
involved senior team members to challenge the
Group’s determination that no such indicators
existed.
In assessing the conditions allowing capitalisation of
relevant expenditure, we focused on:
• The determination of the areas of interest (areas);
• Documentation available regarding rights to
tenure, via licensing, and compliance with
relevant conditions to maintain current rights to
an area of interest;
• The Group’s intention and capacity to continue
the relevant E&E activities; and
• The Group’s determination of whether the
capitalised E&E meets the carry forward
conditions of AASB 6, including whether it is
expected to be recouped through successful
development and exploitation of the area of
interest, or alternatively, by its sale.
In assessing the presence of impairment indicators, we
focused on those that may draw into question the
commercial continuation of E&E activities for areas of
interest where significant capitalised E&E exists. In
addition to the assessments above, we paid particular
attention to:
Our procedures included:
• We evaluated the Group’s accounting policy to
recognise exploration and evaluation assets using
the criteria in the accounting standard;
• We assessed the Group’s determination of its areas
of interest for consistency with the definition in the
accounting standard. This involved analysing the
licenses in which the Group holds an interest and
the exploration programmes planned for those for
consistency with documentation such as license
related technical conditions, contractual
agreements, and planned work programmes;
For each area of interest, we assessed the Group’s
current rights to tenure by checking the ownership
of the relevant license to government registries or
government correspondence and evaluating
agreements in place with other parties. We also
tested licences for compliance with conditions
where applicable under the terms of agreements
with the other party;
•
• We tested the Group’s additions to capitalised E&E
for the year by evaluating a statistical sample of
recorded expenditure for consistency to underlying
records, the capitalisation requirements of the
Group’s accounting policy and the requirements of
the accounting standard;
• We evaluated Group documents, such as minutes
of Directors’ meetings and management’s cash flow
projections, for consistency with their stated
intentions for continuing E&E activities in certain
areas. We corroborated this through interviews
with key personnel;
• We obtained project and corporate budgets
identifying areas with existing funding and those
requiring alternate funding sources. We compared
this for consistency with areas with capitalised E&E,
for evidence of the ability to fund continued
activities. We identified those areas relying on
alternate funding sources and evaluated the
capacity of the Group to secure such funding;
70
76
Equus Mining Limited Annual Report 2022
Independent Auditor’s Report
•
•
•
The strategic direction of the Group and its
intention to continue E&E activities in each area
of interest;
The ability of the Group to fund the continuation
of activities; and
Results from latest activities regarding the
existence or otherwise of economically
recoverable reserves for each area of interest.
• We assessed the Group’s evaluation of the carry
forward conditions of AASB 6 including the
determination of whether the capitalised E&E is
expected to be recouped through successful
development and exploitation of the area or by its
sale. We did this by analysing the Group’s activities
in each area of interest and assessing the Group’s
documentation of planned future activities
including work programmes and corporate budgets.
Acquisition accounting
Refer to Note 28 to the Financial Report
The key audit matter
How the matter was addressed in our audit
The Group’s acquisition of Compañía Minera Cerro
Bayo SpA (CMCB) in December 2021 for consideration
of $5,287,522 represents a significant transaction.
This was a key audit matter due to the size of the
acquisition. The acquisition had a pervasive impact on
the financial statements and consequently required
significant audit effort and senior team involvement.
Significant judgement was required by us in assessing
the Group’s determination of the fair values of
acquired assets and liabilities, in particular exploration
and evaluation assets, property, plant and equipment
and provisions for rehabilitation.
Our procedures included:
• We read the Acquisition Agreement and related key
transaction documents to:
-
-
Understand the key terms and conditions of
the acquisition; and
Assess the acquisition against the criteria of a
business combination in the accounting
standards.
• We assessed the fair value of property, plant and
equipment and exploration and evaluation assets
having regard to the status of CMCB’s operations at
the time of acquisition and the uncertainty relating
to the grade of the waste ore stockpiles and costs
of processing. We used our knowledge of the
business and our industry experience;
• We assessed the fair value of the provision for
rehabilitation with reference to the closure plan
approved by government authorities in Chile;
• We assessed the Group’s disclosures in respect of
business combination with reference to the
requirements of the accounting standards.
71
Equus Mining Limited Annual Report 2022
77
Independent Auditor’s Report
Other Information
Other Information is financial and non-financial information in Equus Mining Limited’s annual reporting which is
provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible for the Other
Information.
Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an
audit opinion or any form of assurance conclusion thereon, with the exception of the Remuneration Report and our
related assurance opinion.
In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so,
we consider whether the Other Information is materially inconsistent with the Financial Report or our knowledge
obtained in the audit, or otherwise appears to be materially misstated.
We are required to report if we conclude that there is a material misstatement of this Other Information, and based
on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s
Report we have nothing to report.
Responsibilities of the Directors for the Financial Report
The Directors are responsible for:
•
•
•
preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001
implementing necessary internal control to enable the preparation of a Financial Report that gives a true and
fair view and is free from material misstatement, whether due to fraud or error
assessing the Group and Company's ability to continue as a going concern and whether the use of the going
concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless they either intend to liquidate the Group and
Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objective is:
•
•
to obtain reasonable assurance about whether the Financial Report as a whole is free from material
misstatement, whether due to fraud or error; and
to issue an Auditor’s Report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of the Financial
Report.
A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and
Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This
description forms part of our Auditor’s Report.
72
78
Equus Mining Limited Annual Report 2022
Independent Auditor’s Report
Report on the Remuneration Report
Opinion
Directors’ responsibilities
In our opinion, the Remuneration Report
of Equus Mining Limited for the year
ended 30 June 2022, complies with
Section 300A of the Corporations Act
2001.
The Directors of the Company are responsible for the preparation
and presentation of the Remuneration Report in accordance with
Section 300A of the Corporations Act 2001.
Our responsibilities
We have audited the Remuneration Report included in pages 26 to
30 of the Directors’ report for the year ended 30 June 2022.
Our responsibility is to express an opinion on the Remuneration
Report, based on our audit conducted in accordance with Australian
Auditing Standards.
KPMG
Jason Adams
Partner
Brisbane
30 September 2022
73
Equus Mining Limited Annual Report 2022
79
Additional Stock Exchange Information
Additional information as at 31 August 2022 required by the Australian Stock Exchange Listing Rules and not
disclosed elsewhere in this report.
Home Exchange
The Company is listed on the Australian Securities Exchange. The Home Exchange is Sydney.
Audit Committee
As at the date of the Directors’ Report, an audit committee of the Board of Directors is not considered
warranted due to the composition of the Board and the size, organisational complexity, and scope of
operations of the Group.
Class of Shares and Voting Rights
The voting rights attached to ordinary shares, as set out in the Company’s Constitution, are that every
member in person or by proxy, attorney or representative, shall have one vote on a show of hands and one
vote for each share held on a poll.
A member holding partly paid shares is entitled to a fraction of a vote equivalent to the proportion, which the
amount paid up bears to the issue price for the share.
Distribution of Shareholders
The total distribution of fully paid shareholders as at 31 August 2022 was as follows:
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Total
Total Shareholders
Total Number of Shares
993
735
253
552
161
2,694
353,799
1,892,468
1,899,754
19,643,701
150,287,232
174,076,954
Less than Marketable Parcels
On 31 August 2022, 1,735 shareholders held less than marketable parcels of 5,102 shares.
On Market Buy Back
There is no current on-market buy-back.
Substantial Holders
Substantial shareholders and the number of equity securities in which it has an interest, as shown in the
Company’s Register of Substantial Shareholders are set out below.
Mandalay Resources Corporation
Tribeca Investment Partners Pty Ltd
Rigi Investments Pty Limited
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