EQUUS MINING LIMITED
and its controlled entities
A.B.N. 44 065 212 679
ANNUAL REPORT
FOR THE FINANCIAL YEAR ENDED
30 JUNE 2023
Equus Mining Limited
Corporate Directory
Directors
Mark Lochtenberg
John Braham
Damien Koerber
David Coupland
Ryan Austerberry
Non-Executive Chairman
Managing Director
Executive Director – Chief Operating Officer
Non-Executive Director
Non-Executive Director
Company Secretary
Marcelo Mora
Principal Place of Business
and Registered Office
Level 2
66 Hunter Street
Sydney NSW 2000
Australia
Telephone:
Facsimile:
Email address:
Web site:
(61 2) 9300 3366
(61 2) 9221 6333
info@equusmining.com
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
Heritage Lanes, Level 11
80 Ann Street
Brisbane QLD 4000
Stock Exchange Listings
Australian Securities Exchange
(Code – EQE)
Equus Mining Limited
Contents
CONTENTS
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
Page
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71
Additional Stock Exchange Information
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Equus Mining Limited
CHAIRMAN AND MANAGING DIRECTOR’S LETTER
Dear fellow shareholders,
2023 was a challenging year for the Company, concluding with the cessation of stockpile processing and exploration
drilling at Cerro Bayo. Unfortunately it coincided with one of the most difficult for the exploration sector on the ASX,
with scarce available capital in the gold and silver sectors exacerbating the problems for the Company.
The Company continued processing low-grade stockpiles until inflationary pressures, particularly higher fuel and
transportation costs, coupled with diminishing grades delivered from the stockpiles, forced the Company to cease
operations in October 2022.
The cessation of operations left the Company requiring a significant restructure to reduce overhead costs, including the
termination of operating staff and contractors, who were paid their entitlements. To conserve cash the Company
suspended drilling in December 2022 and focused exploration on drill target generative activities including surface
geochemcial sampling and mapping and review of historic drill data. This work has highlighted numerous additional
high-priority vein targets that remain untested by drilling.
The Directors continue to believe that the Cerro Bayo project holds exceptional potential for discovery of further high-
grade mineralisation throughout the expansive 286km2 mining claim package at Cerro Bayo, combined with the valuable
and proven highly efficient, turnkey processing infrastructure.
The Directors have been reviewing all options for the company including the sale of the Chilean Assets.
This review culminated in the announcement on 1 December 2023 of the signing of binding documentation regarding
the sale of all Equus’s Chilean assets and undertakings to Mitre Minining Corporation Ltd. Whilst this is a disappointing
end to Equus’s involvement with the Cerro Bayo region in Chile, it allows Equus to survive and pursue other
opportunities for the benefit of shareholders.
We are greatly appreciative of your support throughout this challenging period for the Company
Yours Sincerely
Mark H. Lochtenberg
Chairman
John Braham
Managing Director
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Equus Mining Limited
Review of Operations
For the Year Ended 30 June 2023
REVIEW OF OPERATIONS
CERRO BAYO PROJECT OVERVIEW
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.
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.
The Cerro Bayo Project is centred approximately 10km west of the township of Chile Chico (Figure 2). Throughout the
286km² Cerro Bayo mining property there are 9 historical mines located within 15km of the turn-key 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 AuEq1 (2.81 g/t Au, 196 g/t Ag) 2.
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
1 Gold 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
2 Based on Mandalay Resources Corporation, Cerro Bayo Mine NI 43-101 Technical Reports dated May 14, 2010 & March 21, 2017 Report #2699
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Review of Operations
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Figure 2 – Cerro Bayo Project district location positioned centrally to Equus Minings’
Los Domos and Cerro Diablo satellite exploration projects
CERRO BAYO PROJECT EXPLORATION AND MINERAL RESOURCES
During the first half of the reporting period, Equus aggressively advanced drill testing of 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. Additionally, systematic surface exploration comprising of geochemical sampling
and mapping was conducted throughout large portions of the the Cerro Bayo district, throughout which historically
greater than 100 veins have been identified and for which the Company considers are underexplored (Figure 3).
In parallel, throughout the expansive 286km2 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 equivalent3, 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)4 and potential extensions to mineralisation adjacent to the
numerous other historic mines throughout the Cerro Bayo Project.
3 ASX 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
4 Based on Mandalay Resources Corporation, Cerro Bayo Mine NI 43-101 Technical Reports dated May 14, 2010 & March 21, 2017 Report #2699
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Review of Operations
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Figure 3 – Cerro Bayo Project Area, with Brownfields/Greenfields targets, historical mines and interpreted geology including
faults and veins
TAITAO-APPALOOSA FAULT EXPLORATION DRILL RESULTS
During the previous5,6 and current7,8,9 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 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 AuEq3.
During the reporting period up to 30 January 20239, a total of 6,657.1 metres in 33 holes (CBD105-CBD137) were drilled
and results reported 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.
Drilling was primarily focused on testing extensions of:
► Epithermal vein-hydrothermal breccia hosted in the 10-30m wide, low-angle (35-45°) easterly dipping
Appaloosa Fault complex, both along strike and down dip, of the previously reported holes CBD0829: 4.14m @
17.9 g/t AuEq1 and CBD10210: 8.76m @ 8.05 g/t AuEq1 and CBD10410: 4.89m @ 8.5 g/t AuEq1 and 7.44m @ 5.68
g/t AuEq1
► High-grade steeply dipping hangingwall splay epithermal veins adjacent to the Appaloosa fault-breccia
complex which are not exposed at surface in outcrop.
As previously reported, the westernmost surface expression of the Appaloosa vein-breccia complex is interpreted to
broadly correspond to the historic Taitao Pit (Figures 4, 5 & 6). Historical production from the Taitao Pit from between
1995-2002 totaled approximately 153Koz AuEq1 @ 3.4 g/t AuEq1 (1.9 g/t Au, 115 g/t Ag)11 over pit dimensions of <35m
depth x 30-200m wide x 1,400m length.
5 ASX Announcement 20 Jan 2022 – Cerro Bayo Exploration Update
6 ASX Announcement 1 Apr 2022 – High Grade Mineralisation Intersected
7 ASX Announcement -26 Jul 2022 Cerro Bayo Exploration Update
8 ASX Announcement -28 Oct 2022 Cerro Bayo Exploration Update
9 ASX Announcement – 30th Jan 2023 Cerro Bayo Exploration Update
10 ASX Announcement – 26th July 2022 Cerro Bayo Update
11 Based on Mandalay Resources Corporation, Cerro Bayo Mine NI 43-101 Technical Reports dated May 14, 2010. & March 21, 2017 Report #2699
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The most significant results received over relatively broad intervals were reported from the deeper intersections centred
within approximately 80m north and south respectively from high grade results reported in hole CBD082, which define
a broadly cohesive, high-grade envelope extending approximately +120m down dip to the east and for which veining
and brecciation remains open at depth (see Figures 4, 5 & 6). These results report to a newly defined mineralized zone
located outside a previously interpreted Stockwork Vein domain of the existing maiden December 2020 Taitao Inferred
Mineral Resource Estimate of 302koz AuEq3. The new results extend well beyond the limits of the 2020 MRE to the east
and at depth (Figures 4, 5 & 6).
These results include:
► CBD1158:
15.5m @ 3.32 g/t AuEq1 (2.97 g/t Au, 26.5 g/t Ag) from 114.38m
including: 7.02m @ 5.2 g/t AuEq1 (4.27 g/t Au, 69.9 g/t Ag) from 114.38m
and 4.73m @ 3.48 g/t AuEq1 (3.08 g/t Au, 30 g/t Ag) from 125.2m
6.01m @ 6.89 g/t AuEq1 (5.62 g/t Au, 95.2 g/t Ag) from 140.91m
including: 3.09m @ 9.6 g/t AuEq1 (9.05 g/t Au, 41.32 g/t Ag) from 140.91m
► CBD1198:
2.61m @ 9.5 g/t AuEq1 (6.14 g/t Au, 249.7 g/t Ag) from 128.57m
The above high-grade interval occurs in the upper hangingwall portion of a wide low-grade
interval of stockwork veining and hydrothermal brecciation of 22.8m @ 1.73 g/t AuEq1 (1.2 g/t
Au, 43.1 g/t Ag) from 127.41m
2.71m @ 6.88 g/t AuEq1 (4.56 g/t Au, 174.2 g/t Ag) from 205.61m
Deeper high-grade intercepts of breccia and stockwork veining related to the Appaloosa vein-breccia structure were
reported from subsequent holes which returned results including:
► CBD1309:
► 1.76m @ 4.5 g/t AuEq1 (1.87 g/t Au, 197.4 g/t Ag) from 246.35 including 0.54m @ 13.48 g/t
AuEq1 (5.05 g/t Au, 632 g/t Ag) from 247.57 m
This interval is hosted in a 8.23m wide zone of hydrothermal brecciation grading 1.30 g/t
AuEq1 (0.67 g/t Au, 47.22 g/t Ag).
► CBD1329:
0.47m @ 16.71 g/t AuEq1 (13.1 g/t Au, 272 g/t Ag) from 260.74m
Significant results were also received from relatively shallow extensions of the east dipping Appaloosa vein-breccia
complex, to within 25m below the historic Taitao Pit, which include:
► CBD1178:
1.96m @ 5.53 g/t AuEq1 (1.1 g/t Au, 332.2 g/t Ag) from 45.42m
2.6m @ 9.2 g/t AuEq1 (8.93 g/t Au, 19.95 g/t Ag) from 52.13m
Further significant results were received from relatively shallow extensions of the east dipping
Appaloosa vein-breccia complex, approximately 100m to the east of the historic Taitao Pit, which include:
► CBD1209:
3.5m @ 2.9 g/t AuEq1 (2.0 g/t Au, 66.4 g/t Ag) from 44.98m including: 0.93m @ 4.53
g/t AuEq1 (4.17 g/t Au, 27 g/t Ag) from 47.52m
Hole CBD1379 returned lower grade but a wider interval of breccia related mineralization of 11.35m @ 0.58 g/t
AuEq1 (0.39 g/t Au, 14.1 g/t Ag) from 195.31m.
All holes drilled to date on the large scale Appaloosa fault-breccia have intersected mineralised brecciation over
true thickness intervals of between 8m to 25m emplaced on the major normal fault contact between the two main
rock types of the upper Coigues and lower, more competent Temer Formation.
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The following results relate to a newly discovered, steeply north easterly dipping high grade vein along an
approximate 160m long horizontal extension representing a hangingwall splay adjacent to the Appaloosa Fault
breccia. These intercepts are characterized by banded colloform chalcedonic veins the texture of which is typical
throughout the upper levels of epithermal mineralization at Cerro Bayo.
Results include9:
► CBD130:
1.95m @ 5.92 g/t AuEq1 (3.73 g/t Au, 164.4 g/t Ag) from 170.93m including 0.94m @ 10.27
g/t AuEq1 (6.5 g/t Au, 283 g/t Ag) from 170.93m
► CBD131:
0.7m @ 6.11 g/t AuEq1 (1.76 g/t Au, 326 g/t Ag) from 92.38m
► CBD132:
0.64m @ 5.18 g/t AuEq1 (4.01 g/t Au, 88 g/t Ag) from 187.08m
► CBD133:
1.54m @ 8.32 g/t AuEq1 (3.80 g/t Au, 339.2 g/t Ag) from 109.2m
including: 0.54m @ 37.68 g/t AuEq1 (8.1 g/t Au, 2221 g/t Ag) from 110.2m
► CBD134:
1.43m @ 23.9 g/t AuEq1 (19.0 g/t Au, 367.8 g/t Ag) from 140.55m including 0.55m @ 61.4 g/t
AuEq1 (48.9 g/t Au, 937 g/t Ag) from 140.55m
This is currently the most northwestern hole testing this vein for which it remains open to the
north-northwest towards the northern portion of the Taitao pit for approximately 200m.
► CBD137:
1.64m @ 6.83 g/t AuEq1 (3.55 g/t Au, 245.9 g/t Ag) from 162.56m including 0.67m @ 13.32
g/t AuEq1 (5.68 g/t Au, 573 g/t Ag) from 162.56m
CBD1259 comprises the southernmost hole collared approximately 100m north of the flotation plant for which
results include 1.15m @ 9.56 g/t AuEq1 (6.72 g/t Au, 213 g/t Ag) from 126.01m. This interval relates to a northeast
dipping hangingwall splay vein which remains open at depth and along strike to the southeast. Anomalous Au and
Ag values were returned from a 7.2m wide interval corresponding to the Appaloosa fault-breccia intersected at
302.9m.
The chalcedonic texture of veining and breccia matrix intersected in the Appaloosa fault-breccia in holes drilled on
this structure to date is commonly characteristic of lower temperature and hence upper levels of low-sulphidation
type epithermal systems. The Pegaso II target structure, defined approximately 300m east of current drilling along
the Appaloosa Fault (see Figures 4 and 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-breccia complex.
Vein hosted mineralization mined from the Delia NW mine (hosting approximately 200,000 Oz AuEq @ 5.92 g/t
AuEq1 in mined and remaining resources11) was emplaced throughout an approximate 230m vertical interval
between lower and higher elevations respectively, of approximately 0m to 230m RL. Importantly, the latter upper
level of the Delia NW mine resources sits approximately 50m below the deeper intercepts drilled to date in holes
CBD104-CBD119, at approximately 280m RL. Furthermore, veining at Delia NW is characterized texturally by higher
temperature saccharoidal quartz than that observed from veining intersected in drilling to date on the Appaloosa
fault-breccia structure.
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Figure 4 – Plan view showing location of Appaloosa Fault-Pegaso II- V targets, location of cross
section A -A´(Figure 5), location of drill results (Figures 5 & 6), historic production of the Taitao
Pit, and historic underground mine workings and summary resources of the Delia, Dagny,
Fabiola and Coyita Mines
Figure 5 – A-A´Section view (refer to location in Figure 4) showing a summary of Equus drill results,
interpreted mineralisation and exploration targets along and at intersections of low and high
angle splays along the Appaloosa fault-breccia complex and Pegaso I-II zones (west to east).
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Figure 6 – Orthogonal view (looking northwest) of Appaloosa fault-breccia drill results and structure, extending to
the east of the Stockwork Vein domain of the underground resource component of the 2020 MRE
Follow-up drilling is warranted along a +1km long portion of the Appaloosa host fault-breccia extending east of the
1.4km long Taitao Pit, below the underground resource component of the 2020 Inferred Mineral Resource3. Drilling is
designed to test for further high grade mineralized ore shoots principally at the intersection of the down dip extension
of the Appaloosa fault-breccia and hangingwall splay veins of the Pegaso structures.
PEGASO VII TARGET- HISTORIC CORE RE-LOGGING AND SAMPLING RESULTS
As detailed during the reporting period12, the Pegaso VII target is located 2.5km to the north-east of the Cerro Bayo
plant infrastructure and sits in a subparallel northwest trend 1km from the partially exploited Coyita Mine which hosts
approximately 140kOz AuEq15 @ 6.6 g/t AuEq15 in mine production/remaining NI 43.101 resources13 (Figure 7). A total
of 14,134.67m in 64 holes were drilled on the Pegaso VII target by previous operators, initiating in 2004 and for which
the majority (>90%) was completed prior to 2013.
A large proportion of historic drilling was concentrated in the southern 400m of a 450m wide x 1400m corridor
throughout which high-grade mineralization was intersected along, north-south and north-northwest trends over a
vertical interval of +250m.
Significant, exceptionally high-grade gold and particularly silver results from the above historic drilling included12:
► DGA009:
1.13m @ 166.06 g/t AuEq15 (95.51 g/t Au, 5291.05 g/t Ag) from 235.50m
► DGA012:
1.70m @ 35.46 g/t AuEq15 (13.76 g/t Au, 1627.61 g/t Ag) from 259.10m
► CRH-44:
1.48m @ 39.00 g/t AuEq15 (5.55 g/t Au, 2508.95 g/t Ag) from 36.37m
12 ASX Announcement – 24 Feb 2023, Standout historic drill results at Cerro Bayo
13 Reported effective December 31, 2016 by Mandalay Resources Corporation – Cerro Bayo Project, Project #2559 according to Canadian Institute of Mining definitions in an
independent National Instrument 43-101 Technical Report filed March 31, 2017.
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► DGA010:
1.00m @ 39.44 g/t AuEq15 (20.86 g/t Au, 1393.46 g/t Ag) from 169.15m
► DGA019:
5.45m @ 5.13 g/t AuEq15 (4.53 g/t Au, 45.09 g/t Ag) from 322.30m
► DGA029:
1.45m @ 9.41 g/t AuEq15 (2.04 g/t Au, 552.96 g/t Ag) from 127.00m
Detailed re-logging and sampling of unsampled historic drill core hosting stockwork veining and brecciation was
conducted to support geological modeling of vein geometries and follow-up drill program design. This work comprised
of 330 core samples from which, results reported post the reporting period14, included 66 samples > 0.2 g/t AuEq15,
including 14 samples > 0.5 g/t AuEq15 and 5 samples > 1 g/t AuEq15 with the highest value returned of 0.52m @ 5.34 g/t
AuEq15 (4.72 g/t Au, 47 g/t Ag).
From the above work, a high priority drill target corridor has been defined extending to the north and down dip of the
highest grade DGA009 which remains open for at least 400m along a northwest to north north-west trending vein
corridor that historic drilling did not effectively test (Figure 11).
Figure 7 – Plan view showing location of Pegaso VII (Including location of the Long Section presented in Figure 11),
Appaloosa Fault vein-breccia and Pegaso II- VII targets and historic production/resources of the historic open pit
and underground mines
14 ASX Announcement- 14th Aug 2023 Cerro Bayo Exploration Update
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Figure 8 – Pegaso VII Target - Plan view of southern portion showing summary high grade historic drill results and
location of Sections 4842600N & 4842820N (refer to Figures 9 & 10)
Figure 9 – Pegaso VII Section 4842820N - showing summary high grade historic composited drill results and
modelled vein trends
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Figure10 – Pegaso VII Section 4842600N - showing summary high grade historic composited drill results and
modelled vein trends
Figure 11- Pegaso VII Target –NNW-SSE Long Section (refer to location in Figure 7) - showing summary high grade
historic composited drill results and target area along strike from high grade historic drill intercept: 1.13m @
166.06 g/t AuEq1 (95.51 g/t Au, 5291 g/t Ag)
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CERRO BAYO PROJECT EXPLORATION
Continued geological modelling based on extensive re-logging of historic drill core and geological mapping and
geochemical sampling was conducted to support follow-up drill program design throughout the Cerro Bayo project area.
The geological mapping and geochemical sampling was predominantly focused throughout the underexplored, eastern
portion of the Cerro Bayo mine district, centred within a 5km x 8km corridor that hosts a series of 6 mines from which
historical production during 2002-2008, achieved approximately 615Koz AuEq15,16 averaging 8.0 g/t AuEq15. This work
has highlighted numerous high-priority vein targets that remain untested by drilling throughout this corridor, some of
which have not received any historic exploration including mapping or surface sampling (Figure 12).
Two of the key vein targets highlighted by this work, for which results17 were reported post the reporting period, include:
CLAUDIA VEIN-
• Mapped as a 0.2-2m wide, north-east dipping brecciated chalcedonic vein along a 1,700m length, which is
exposed at surface approximately 150m higher in elevation to veins mined at the Cerro Bayo mine district
(Historic production of approximately 450Koz AuEq15), located approximately 3.8km to the northeast.
• Host fault interpreted to correspond to a major southwestern bounding arcuate fault of an interpreted
northwest-southeast trending graben structure.
•
Requires drilling at depth, to test the potentially more favourable deeper host rock units, similar to those
hosting the veins mined at the Cerro Bayo mine district.
Sampled along an approximate 1,150m length on approximately 200m spaced centres with continuous sawn channel
and rockchip methodologies which reported results including17:
SAWN CHANNELS
► CC059
0.6m @ 54.2 g/t AuEq15 (23.95 g/t Au, 2272 g/t Ag)
► CC058
► CC050
► CC056
0.5m @ 38 g/t AuEq15 (14.62 g/t Au, 1752 g/t Ag)
2m @ 14.2 g/t AuEq15 (5.84 g/t Au, 627 g/t Ag)
0.8m @ 15.5 g/t AuEq15 (6.95 g/t Au, 640 g/t Ag)
CONTINOUS ROCKCHIP CHANNELS
0.4m @ 41.88 g/t AuEq15 (17.02 g/t Au, 1865 g/t Ag)
GUANACO 2 NORTH VEIN-
• Mapped as a 0.1-0.4m wide, southwest dipping vein along a 500m length.
• Occurs approximately 1km to the north northwest and along strike of the Guanaco 2 vein (Historic production
sporadically between 1998-2006 of approximately 12Koz AuEq15 in shallow open pit and underground
operations).
•
•
Requires drilling at depth, to test the potentially more favourable deeper host rock units, similar to those
hosting the veins mined at the Cerro Bayo mine district (Historic production of approximately 450Koz AuEq15)
located approximately 3.3km to the east.
Sampled along an approximate 250m length on approximately 50-70m spaced centres with continuous sawn
channel and rockchip methodologies which reported results including17:
15 Gold Equivalent (AuEq) is based on the formula AuEq g/t = Au g/t + (Ag g/t / 75).
16 Based on Mandalay Resources Corporation, Cerro Bayo Mine NI 43-101 Technical Reports dated May 14, 2010. & March 21, 2017 Report #2699
17 ASX Announcement- 14th Aug 2023 Cerro Bayo Exploration Update
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SAWN CHANNELS
► CC062
0.85m @ 19.8 g/t AuEq15 (11.05 g/t Au, 657 g/t Ag)
CONTINOUS ROCKCHIP
0.2m @ 33.48 g/t AuEq15 (8.68 g/t Au, 1860 g/t Ag)
0.2m @ 42.53 g/t AuEq15 (33.4 g/t Au, 686 g/t Ag)
Other underexplored vein systems throughout this corridor include those of the Droughtmaster Prospect, which is
located approximately 4km due south and outcrops at an elevation approximately 400m higher than veins mined at
the Cerro Bayo Mine district. First pass, relative shallow drilling at this prospect during 2020 returned high grade
intercepts including diamond drill hole CBD020: 3.8m @ 21.14 g/t AuEq15 (20.4 g/t gold and 55.45 g/t silver)18 from
109m.
Figure 12. Central Cerro Bayo District Vein Corridor–Centres of historical production, distribution of mined and
underexplored veins and summary surface sampling geochemical results over a Digital Elevation Model image
CERRO BAYO STOCKPILE PROCESSING
Equus continued with processing of low-grade stockpiles subsequent to the acquisition of the Cerro Bayo Project on 1
December 2021, following the recommissioning by Mandalay Resources of the 0.5Mtpa flotation plant and
commencement of processing of low-grade stockpiles on 20 February 2021, however a combination of factors during
the period made it no longer economically viable and hence the Company announced the suspension of processing on
the 17th October 202219.
During the months of production between July to October 2022, within the reporting period to 30 June 2023, production
by Equus achieved processing of 137,521t of ore to produce 2,469 oz of gold and 102,718 oz of silver for a total of 3,635
oz gold equivalent20,21.
Whilst technically successful, with over 3,000 tonnes of concentrates shipped to customers during operations by the
Company, a combination of factors made it no longer economically viable. Rising costs, particularly for fuel, made power
generation and transport costs unsustainably high, and the addition of pre-screening to increase grades by circa 30%
was not enough to overcome the increase in operating costs.
18 ASX Announcement- 25th May 2020 Standout Intersection Bolsters Droughtmaster Potential
19 ASX Announcement-17th Oct 2022 Suspension of Processing, Cerro Bayo Project
20 ASX Announcement- 31st Oct 2022 – September 2022 Quarterly Activities Report
21 ASX Announcement- 31st Jan 2023 – December 2022 Quarterly Activities Report
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Equus Mining Limited
Review of Operations
For the Year Ended 30 June 2023
The processing of low grade stockpiles demonstrated that the processing plant and infrastructure is capable of
consistently achieving nameplate throughput and high gold and silver recoveries even on low grade stockpile ore.
Despite the disappointment of ceasing mining and processing of stockpiles, the technical success of processing low
grade material supports the Director’s view of the significant value of the very efficient, turnkey processing infrastructure
when sufficient higher grade resources are delineated at Cerro Bayo.
The operation’s complete September and December 2022 and Full Year ended 30 June 2023 results are provided in
Tables 1-4.
Table 1. Quarterly and Yearly Production, Sales and Cash Cost Summary
Au Produced
Ag Produced
Au eq. Produced
Au Sold
Ag Sold
Au eq. Sold (*)
Cash Cost per oz Au eq.
produced
Average prices
Gold
Silver
Unit
oz
oz
oz
oz
oz
oz
USD$/oz
US$/oz
US$/oz
Three months ended
30 September 2022
Three months ended
31 December 2022
Twelve months ended
30 June 2023
1,743
70,593
2,535
1,308
58,558
1,965
2,041
1,729.1
19.4
726
32,125
1,100
1,574
68,326
2,412
2,750
1,728.8
21.2
2,469
102,718
3,635
2,980**
133,593**
4,570**
2,256
1,831.1
21.8
(*). 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.
(**) Includes final liquidation of sales
Table 2. September and December 2022 Quarters and Full-Year to 30 June 2023 Production and
Cash Cost Highlights
Group Production and Cash Cost
Quarter ended
31 September
2022
Quarter ended 31
December 2022
Year ended 30
June 2023
Ore Milled
DMT
102,049
35,472
137,521
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
Concentrate Grade Ag
Recovery Au
Recovery Ag
Gold Production
Silver Production
Gold Production Au Eq
g/t
g/t
%
%
Oz
Oz
Oz
Cash Cost (Oz AuEq)
$/oz
0.63
27.1
2,077
89,021
917
59.1
2,395
83.9%
79.3%
1,743
70,593
2,535
2,041
0.74
34.3
845
0.66
28.96
2,922
39,078
128,099
382
59.2
2,617
85.9%
82.2%
726
32,125
1,100
2,750
1,299
59.13
2,460
84.42%
80.0%
2,469
102,718
3,635
2,256
14 | P a g e
Equus Mining Limited
Review of Operations
For the Year Ended 30 June 2023
Table 3. Saleable Production for the September and December 2022 Quarters and Full-Year to 30
June 2023
Metal
Gold (oz)
Silver (oz)
Average prices
Gold US$/oz
Silver US$/oz
Total Gold Eq. (oz) (*)
Quarter ended 31
September 2022
Quarter ended 31
December 2022
Year ended 30 June
2023
1,743
70,593
1,729.1
19.4
2,535
726
32,125
1,728.8
21.2
1,120
2,469
102,718
1,831.1
21.80
3,655
(*). Quarterly gold equivalent ounces (“Au Eq. oz”) produced is calculated by multiplying the saleable quantities of gold (“Au”), silver
(“Ag”) in the period by the respective average market prices of the commodities in the period, adding the amounts to get a “total
contained value based on market price”, and then dividing that total contained value by the average market price of Au in the period.
Average Au and Ag prices in the periods are calculated as the average of the monthly LBMAAM/PM Precious Metals Prices in the period,
with price on weekend days and holidays taken of the last business day, average. The source for Au and Ag prices is www.lbma.org.uk.
Table 4. Sales for September and December 2022 Quarters and Full-Year to 30 June 2023
Metal
Gold (oz)
Silver (oz)
Average Prices
Gold US$/oz
Silver US$/oz
Total Gold Eq. (oz) (*)
Quarter ended 31
September 2022
Quarter ended 31
December 2022
Year ended 30
June 2023
1,308
58,558
1,729.1
19.4
1,965
1,574
68,326
1,728.8
21.2
2,412
2,980**
133,593**
1,831.1
21.8
4,570**
(*). 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.
(**) Includes final liquidation of sales
Resource comparison 2022 to 2023
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.
15 | P a g e
Equus Mining Limited
Review of Operations
For the Year Ended 30 June 2023
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.
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 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.
Compliance Statement
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.
No Material Changes
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.
CORPORATE
During the year ended 30 June 2023, the significant changes in the state of affairs of the Group were as follows:
• On 2 September 2022, the Company issued 12,755,000 new ordinary fully paid shares at an issue price of $0.10
raising $1,275,500 before costs.
• On 14 October 2022, the Company entered into a loan agreement with Tribeca for US$2,200,000. The loan is
repayable in 24 months at a 10% interest rate payable quarterly in arrears. The loan is secured over the
properties of the Group.
• On 14 October 2022, the Company issued 22,863,081 options to Tribeca as part consideration for the loan
granted by Tribeca to the Company. The options have an exercise price of $0.15 expiring on 14 October 2025.
• On 17 October 2022, the Company announced the suspension of the stockpile processing at its Cerro Bayo
project, and placing the processing infrastructure on care and maintenance whilst continuing exploration at
the Cerro Bayo Project.
• On 1 December 2022, the Company issued 4,605,971 new ordinary fully paid shares to a supplier in Chile to
settle $322,418 for Drilling services provided in connection with the Cerro Bayo project in southern Chile.
16 | P a g e
Equus Mining Limited
Review of Operations
For the Year Ended 30 June 2023
• On 13 December 2022, the Company issued 2,700,000 new ordinary fully paid to Directors of the Company
following the approval of shareholders at the Annual General Meeting held in November 2022. The shares were
issued at an issue price of $0.10 and raised $270,000.
• On 16 March 2023, the Company’s securities were placed into suspension pending an anticipated
announcement by the Company regarding a proposed capital raising and further, the Company disclosed to
the ASX that it was not in a position to release the Financial Statement for the half year ended 31 December
2022 (Financial Statement).
• On 31 March 2023, Tribeca Investment Partners Pty Ltd (‘Tribeca’) granted a waiver until 31 March 2024 to
Equus with respect to the financial covenants in the loan facility agreement executed on 13 October 2022
between Tribeca and the Company.
• On 6 April 2023, the Company issued 5,000,000 new ordinary fully paid shares at an issue price of $0.04 to raise
$200,000 before costs.
• On 5 May 2023, the Company issued 17,500,000 new ordinary fully paid shares at an issue price of $0.04 to
raise $700,000 before costs.
• On 9 June 2023, the Company requisitioned a shareholders meeting for 14 July 2023 to approve the issue of
32,500,000 ordinary fully paid shares at $0.04 per share to raise $1,300,000 and the issue of 25,000,000 unlisted
options. The options have an exercise price of $0.05 expiring on 28 June 2026. Subsequent to 30 June 2023,
shareholders on 14 July 2023 approved the issue of the ordinary shares and unlisted options.
For the Financial Year ended 30 June 2023, the Group impaired the carrying value of $4,777,044 of the Los
Domos Project, the carrying value of $80,084 of the Cerro Diablo project, and reduced the carrying value of the
exploration expenditure of the Cerro Bayo project by $9,432,065.
•
Yours sincerely
John Braham
Executive Director
Dated this 22nd day of December 2023
17 | P a g e
Equus Mining Limited
Corporate Governance Statement
For the Year Ended 30 June 2023
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 behaviors 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 2023 corporate governance statement is dated 22 December 2023 and reflects the corporate governance practices
throughout the 2023 financial year. The board approved the 2023 corporate governance on 22 December 2023. 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 | P a g e
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2023
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 2023
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
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 a Non-Executive Chairman of the publicly listed company Terracom Limited. He is the former
Executive Chairman and founding Managing Director of ASX-listed Baralaba Coal Company Limited (formerly Cockatoo
Coal Limited) and former Non-executive Director of Nickel Industries 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 a Non-Executive Director of public listed company Terracom Limited. Former Director of
Nickel Industries Limited and former Director of Evolve Power Limited former Montem Resources.
He has not served as a director of any other listed company during the past three years.
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.
19 | P a g e
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2023
Damien John Koerber, Executive Director, Chief Operating Officer
Director since 27 November 2019
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.
Robert Ainslie Yeates, Non-Executive Director
Director since 20 July 2015 – resignation 23 March 2023
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 | P a g e
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2023
David (Ted) Harcourt Coupland, Non-Executive Director
Director since 21 June 2021
Ted Coupland has over 35 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).
Ryan Kane Austerberry, Non-Executive Director
Director since 2 December 2021 – resignation 4 September 2023
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.
21 | P a g e
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2023
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
8
8
8
7
8
8
7
8
8
7
8
8
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
Mark H. Lochtenberg
John R. Braham
Fully Paid
Ordinary
Shares
12,487,431
1,038,953
-
-
-
-
-
Options over
ordinary shares
Option Terms
(Exercise Price and Term)
555,555 $0.30 at any time up to 16 September 2023
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 $0.70 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
David (Ted) H. Coupland
944,684
55,555 $0.30 at any time up to 16 September 2023
During the year ended 30 June 2023, no options were granted as compensation to directors of the Company (2022: nil).
During the year ended 30 June 2023, 333,333 unlisted options expired unexercised (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 | P a g e
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2023
OPTION HOLDINGS
Options granted to directors' and officers’
Since the end of the financial year, the Company has not granted 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)
416,666(1)
416,666(1)
416,666(1)
125,000(1)
-
-
-
-
-
-
-
-
22,863,081
25,000,000 (2)
$1.40
$0.70
$0.44
$0.50
$0.54
$0.44
$0.15
$0.05
13 November 2023
13 November 2024
25 November 2023
25 November 2024
25 November 2025
01 December 2023
14 October 2025
28 June 2026
(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.
(2)The options were issued on 14 July 2023.
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 2023, no ordinary shares were issued as a result of the exercise of options
(2022: nil). Since the end of the financial year, the Company has not issued ordinary shares as a result of the exercise of
options.
23 | P a g e
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2023
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 2023 is outlined below.
EQUUS MINING LIMITED – GROUP STRUCTURE AT 30 JUNE 2023
The Companies referred above comprise the “Consolidated Entity” for the Financial Statements included in this 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. The Company ceased the processing of low-grade stockpiles at Cerro Bayo announced on 17 October
2022 and subsequently implemented a cost base restructure involving the termination of legacy operational staff who
were retained as part of the project acquisition from Mandalay Resources on 1 December 2021.
24 | P a g e
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2023
FINANCIAL RESULTS
The consolidated loss after income tax attributable to members of the Company for the year was $25,223,443 (2022:
$3,981,385 loss).
REVIEW OF OPERATIONS
A review of the Group's operations for the year ended 30 June 2023 is set out on pages 2 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 2023. No
dividends have been paid or declared during the financial year (2022 - $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 2023 were as follows:
• On 2 September 2022, the Company issued 12,755,000 new ordinary fully paid shares at an issue price of $0.10
raising $1,275,500 before costs.
• On 14 October 2022, the Company entered into a loan agreement with Tribeca for US$2,200,000. The loan is
repayable in 24 months at a 10% interest rate payable quarterly in arrears. The loan is secured over the
properties of the Group.
• On 14 October 2022, the Company issued 22,863,081 options to Tribeca as part consideration for the loan
granted by Tribeca to the Company. The options have an exercise price of $0.15 expiring on 14 October 2025.
• On 17 October 2022, the Company announced the suspension of the stockpile processing at its Cerro Bayo
project, and placing the processing infrastructure on care and maintenance whilst continuing exploration at the
Cerro Bayo Project.
• On 1 December 2022, the Company issued 4,605,971 new ordinary fully paid shares to a supplier in Chile to
settle $322,418 for Drilling services provided in connection with the Cerro Bayo project in southern Chile.
• On 13 December 2022, the Company issued 2,700,000 new ordinary fully paid to Directors of the Company
following the approval of shareholders at the Annual General Meeting held in November 2022. The shares were
issued at an issue price of $0.10 and raised $270,000.
• On 16 March 2023, the Company’s securities were placed into suspension pending an anticipated
announcement by the Company regarding a proposed capital raising and further, the Company disclosed to
the ASX that it was not in a position to release the Financial Statement for the half year ended 31 December
2022 (Financial Statement).
• On 31 March 2023, Tribeca Investment Partners Pty Ltd (‘Tribeca’) granted a waiver subject to certain
conditions until 31 March 2024 to Equus with respect to the financial covenants in the loan facility agreement
executed on 13 October 2022 between Tribeca and the Company.
• On 6 April 2023, the Company issued 5,000,000 new ordinary fully paid shares at an issue price of $0.04 to raise
$200,000 before costs.
• On 5 May 2023, the Company issued 17,500,000 new ordinary fully paid shares at an issue price of $0.04 to
raise $700,000 before costs.
• On 9 June 2023, the Company requisitioned a shareholders meeting for 14 July 2023 to approve the issue of
32,500,000 ordinary fully paid shares at $0.04 per share to raise $1,300,000 and the issue of 25,000,000 unlisted
options. The options have an exercise price of $0.05 expiring on 28 June 2026. Subsequent to 30 June 2023,
shareholders on 14 July 2023 approved the issue of the ordinary shares and unlisted options.
25 | P a g e
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2023
•
For the Financial Year ended 30 June 2023, the Group impaired the carrying value of $4,777,044 of the Los
Domos Project, the carrying value of $80,084 of the Cerro Diablo project and reduced the carrying value of the
exploration expenditure of the Cerro Bayo project by $9,432,065.
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 2023.
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.
LIKELY DEVELOPMENTS
Following the announcement of the sale of the Chilean assets on 1 December 2023, the Group liability to Tribeca will be
extinguished once the transaction is completed, ongoing care and maintenance, and exploration expenditure at the
Cerro Bayo project will cease. Equus will continue to seek new business opportunities.
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.
INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS
During or since the end of the financial year, 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 | P a g e
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2023
EVENTS SUBSEQUENT TO BALANCE DATE
On 14 July 2023, the Company issued 32,500,000 ordinary shares to an institutional investor and a director of the
Company at an issue price of $0.04 raising $1,300,000 ($500,000 was received before 30 June 2023) before costs, the
Company also issued 25,000,000 unlisted options to the institutional investor. The options have an exercise price of
$0.05 expiring on 28 June 2026.
On 3 October 2023, the Company entered into a Deed of Forbearance with the lenders of its borrowing facility, Tribeca
and its affiliated entities (“Tribeca”), as a result of breaching the terms of its loan facility agreement, having failed to pay
accrued interest on 30 September 2023. As a result, the lenders have agreed not to exercise their power to call upon
the loan until 31 January 2024, or earlier in the event that the sale of the Group’s Chilean operations is finalised or does
not proceed (refer below). On 12 October 2023, the Company issued 3,937,008 ordinary shares to the value of $50,000
to Tribeca under the terms of the deed.
On 30 November 2023, Equus executed binding documentation with Mitre Mining Corporation Limited (“Mitre”) under
which Mitre will acquire all the Chilean assets and undertakings of Equus. Under the terms of the agreement, Mitre will
acquire 100% of the Group’s Australian subsidiary Equus Resources Pty Ltd which holds through subsidiaries in Chile
100% of the share capital of the Cerro Bayo project and the Cerro Diablo exploration project. Additionally, Mitre will
acquire all the assets and undertakings of Equus’ subsidiaries, Southern Gold SpA and Equus Patagonia SpA, which
together own all the assets comprising the Los Domos exploration project. The sale is contingent on a number of
conditions, which include both parties receiving shareholder approval, Mitre securing financing of not less than
$6,000,000, and relevant third party approvals with the transaction intended to close prior to 31 January 2024.
Total consideration for the sale is A$5.0 million comprised of:
• A$3.5 million cash;
• A$0.5 million of Mitre shares; and
• A$1.0 million deferred consideration in cash or shares (at Mitre’s discretion and subject to Mitre shareholder
approval) subject to minimum resource and grade milestones at Cerro Bayo within 5 years.
Tribeca will be directly paid and issued cash of A$3 million and shares to the value of A$500,000 in full repayment of
all amounts owed by Equus under the US$2.2 million Loan Facility Agreement with Tribeca. The Group will be entitled
to cash consideration of $500,000 as a result of the sale, of which $200,000 was received in October 2023.
27 | P a g e
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2023
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 2023, 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.
2023
$
2022
$
2021
$
2020
$
2019
$
Net loss attributable to equity holders of the
parent
Dividends paid
Change in share price
25,223,443
3,981,385
1,716,498
1,728,160
942,751
-
-
(0.05)
(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.
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.
28 | P a g e
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2023
REMUNERATION REPORT - Audited (Con’t)
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
Super-
Bonus
annuation
Share-Based
Payments
Options
Other
Short Term
Benefit(2)
Year
$
$
$
$
$
Total
$
Executive Directors
John Braham
Damien Koerber
Non-Executive Directors
Mark Lochtenberg
Robert Yeates
David (Ted) Coupland (1)
Ryan K. Austerberry
Total all directors
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
325,000
-
272,917
150,000
250,000
-
229,166
25,000
75,000
75,000
38,159
50,000
92,450
119,900
50,000
29,167
830,609
-
-
-
-
-
-
-
-
776,150
175,000
34,125
42,292
26,250
25,417
7,875
7,500
-
-
-
5,250
2,916
73,500
78,125
(1) Mr. Coupland earned $50,000 in Director's fees and $42,450 for technical services.
(2) Other short term benefit relates to annual leave expensed during the year
Executive Directors - Audited
-
-
-
-
-
-
-
-
-
-
-
-
-
22,799
35,952
17,538
31,507
381,924
501,161
293,788
311,090
-
-
-
-
-
-
82,875
82,500
38,159
50,000
92,450
119,900
55,250
32,083
40,337
944,446
67,459 1,096,734
During the financial year ended 30 June 2023, John Braham and Damien Koerber were considered Executive Directors.
Their remuneration for the year ended 30 June 2023 comprised of fixed remuneration plus 10.5% statutory
superannuation paid through the Company’s payroll.
29 | P a g e
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2023
REMUNERATION REPORT - Audited (Con’t)
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
$0.236
$59,000
$1.40 at any time to 13 November 2023
John Braham
29 November 2019
(2) 333,333
John Braham
25 November 2020
(3) 333,333
John Braham
25 November 2020
(4) 333,333
John Braham
25 November 2020
(4) 333,333
Damien Koerber 25 November 2020
(3) 83,333
Damien Koerber 25 November 2020
(4) 83,333
Damien Koerber 25 November 2020
(4) 83,333
$0.24
$0.14
$0.16
$0.18
$0.14
$0.16
$0.18
$80,000
$0.70 at any time to 13 November 2024
$46,667
$0.44 at any time to 25 November 2023
$53,333
$0.50 at any time to 25 November 2024
$60,000
$0.54 at any time to 25 November 2025
$11,667
$0.44 at any time to 25 November 2023
$13,333
$0.50 at any time to 25 November 2024
$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) 333,333 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 2023 333,333 unlisted options on a post consolidated basis lapsed (2022: 583,333 on a
post consolidated basis) and no options held by key management personnel were exercised during the 2022 or 2021
financial years.
30 | P a g e
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2023
REMUNERATION REPORT - Audited (Con’t)
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 2023 and 2022 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
2023 and 2022 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.
Options granted
Director
Number
Date
% vested
at year
end
Balance at
1 July 2022
Expired
during
the year
Balance at
30 June
2023
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
666,666
333,333
333,333
30 June 2020
999,999
249,999
-
-
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 2023 is nil (2022 – 2,166,664 on a
post-consolidation basis). No options were granted as remuneration during the year (2022: nil 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
Value of options
granted in the year
Value of options
exercised in the year
Value of options
lapsed in the year
John Braham
Damien Koerber
-
-
-
-
(67,333)
-
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 2023 - Audited
Directors
Mark Lochtenberg
John Braham
Damien Koerber
Robert Yeates
David (Ted) Coupland
Ryan Austerberry
Held at
1 July 2022
Post
consolidation
-
1,916,665
249,999
-
-
-
Granted/
Purchased
Exercised /
Sold
Expired
Held at
30 June 2023
Vested and
exercisable
at 30 June 2023
-
-
-
-
-
-
-
-
-
-
-
-
-
-
333,333
1,583,332
-
-
-
-
249,999
-
-
-
-
1,583,332
249,999
-
-
-
31 | P a g e
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2023
REMUNERATION REPORT – Audited (Con’t)
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 2023 and 2022 financial
years and apart from the amounts outlined below, no amounts were outstanding at 30 June 2023 (2022 - $nil).
Outstanding director's fees as at 30 June 2023
Director
Mark Lochtenberg
John Braham
Damien Koerber
Robert Yeates
David (Ted) Coupland
Ryan Austerberry
Fees
$
Superannuation
$
25,000
54,167
41,667
11,962
16,667
16,667
2,625
5,688
4,375
-
-
1,750
Other transactions with key management personnel - Audited
There were no other transactions with key management personnel or their related parties during 2023.
At 30 June 2023, the amount outstanding for salaries, superannuation and directors fees were $180,568 including GST
(2022: 22,492).
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 - 2023
Key management
personnel
Mark Lochtenberg
John Braham
Damien Koerber
Robert Yeates
David (Ted) Coupland
Ryan Austerberry
Held at
30 June 2022
12,487,431
1,038,953
2,173,370
343,538
944,684
-
Purchases
Sales
2,500,000
100,000
-
-
100,000
-
Other
-
-
-
1 (343,538)
-
-
Held at
30 June 2023
14,987,431
1,138,953
2,173,370
-
1044,684
-
-
-
-
-
-
-
1 Robert Yeates held 343,538 ordinary fully paid shares at the time he resigned as director
Non-Executive Directors - Audited
During the financial year ended 30 June 2023, 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;
statutory superannuation for Australian resident directors paid 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 the remuneration report.
32 | P a g e
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2023
NON-AUDIT SERVICES
During the year ended 30 June 2023 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
2022
2022
$
-
$
-
Audit and review of financial statements
141,875
134,500
141,875
134,500
AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration is set out on page 34 and forms part of the Directors' Report for the
financial year ended 30 June 2023.
Signed at Sydney this 22nd day of December 2023
in accordance with a resolution of the Board of Directors:
Mark H. Lochtenberg
Chairman
John R. Braham
Executive Director
33 | P a g e
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 2023 there have been:
(a) no contraventions of the auditor independence requirements as set out in the Corporations
Act 2001 in relation to the audit; and
(b) no contraventions of any applicable code of professional conduct in relation to the audit.
KPM_INI_01
PAR_SIG_01
PAR_NAM_01
PAR_POS_01
PAR_DAT_01
PAR_CIT_01
KPMG
KPMG
Adam Twemlow
Partner
Brisbane
22 December 2023
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.
34 | P a g e
Equus Mining Limited
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 30 June 2023
CONTINUING OPERATIONS
Revenue from contracts with customers – sales revenue
Other revenue
Cost of sales
Gross Profit/(Loss)
Expenses
Employee, directors and consultants costs
Administration expenses
Impairment exploration and evaluation expenditure
Other expenses
Results from operating activities
Finance income
Finance costs
Net finance income
Loss before tax
Tax benefit/(expense)
Loss for the year
Other comprehensive income for the year
Items that may be classified subsequently to profit or loss:
Exchange differences on translation of foreign operations
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
Notes
2023
$
2022
$
4
13
4
5
5
6
19
5
11,586,762
680,565
(17,540,051)
(5,272,724)
15,622,699
253,677
(17,647,398)
(1,771,022)
(797,295)
(749,993)
(14,289,193)
(1,433,316)
(22,542,521)
10,967
(2,707,127)
(2,696,160)
(25,238,681)
-
(25,238,681)
(1,245,834)
(417,325)
-
(1,219,681)
(4,653,862)
698,141
(28,525)
669,616
(3,984,246)
-
(3,984,246)
1,192,333
1,192,333
(1,377,401)
(1,377,401)
9,148
1,201,481
(24,037,200)
(13,096)
(1,390,497)
(5,374,743)
(25,223,443)
(15,238)
(25,238,681)
(3,981,385)
(2,861)
(3,984,246)
(24,021,962)
(15,238)
(24,037,200)
(5,371,882)
(2,861)
(5,374,743)
Earnings per share
Basic and diluted loss per share (cents)
20
(13.10)
(2.63)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
35 | P a g e
Equus Mining Limited
Consolidated Statement of Financial Position
As at 30 June 2023
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
Borrowings
Provision for rehabilitation
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
Notes
2023
$
2022
$
7
8
9
10
8
11
12
13
14
15
16
17
15
17
235,148
2,148,443
1,009,615
2,209,154
-
2,325,794
39,333
574,087
1,284,096
7,257,478
9,190,240
7,158,568
9,953
777
270,314
365,060
13,738,462
23,091,596
23,208,969
30,616,001
24,493,065
37,873,479
2,458,213
178,723
3,318,251
4,593,411
2,975,736
165,360
-
-
10,548,598
3,141,096
-
82,680
13,780,233
14,207,888
13,780,233
14,290,568
24,328,831
17,431,664
164,234
20,441,815
18
19
142,930,786
140,177,143
788,611
(1,351,513)
(143,541,160)
(118,385,050)
178,237
20,440,580
(14,003)
1,235
164,234
20,441,815
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
36 | P a g e
Equus Mining Limited
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2023
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
Share
Capital
Accumulated
Losses
Note
$
129,460,300
-
-
-
$
(114,502,665)
(3,981,385)
-
(3,981,385)
Ordinary shares issued
Transaction costs on issue of shares
18
18
10,885,232
(168,389)
-
-
Transfer of expired options
Balance at 30 June 2022
Balance at 1 July 2022
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
Issue of options
Transfer of expired options
Balance at 30 June 2023
-
99,000
140,177,143
(118,385,050)
140,177,143 (118,385,050)
-
-
-
(25,223,443)
-
(25,223,443)
18
18
2,767,918
(14,275)
-
-
-
-
-
67,333
142,930,786 (143,541,160)
Option
Premium
reserve
$
Equity Based
reserve
Fair Value
reserve
$
$
Foreign Currency
Translation
Reserve
$
Total
$
Non-
controlling
Interest
$
Total
Equity
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,005,976
717,918
401,162
(981,096)
15,095,619
4,096
15,099,715
-
-
-
-
-
(99,000)
-
(13,096)
(13,096)
-
(3,981,385)
(2,861)
(3,984,246)
(1,377,401)
(1,390,497)
-
(1,390,497)
(1,377,401)
(5,371,882)
(2,861)
(5,374,743)
-
-
-
-
-
-
10,885,232
(168,389)
-
-
-
-
10,885,232
(168,389)
-
618,918
388,066
(2,358,497)
20,440,580
1,235
20,441,815
618,918
388,066
(2,358,497)
20,440,580
1,235
20,441,815
-
-
-
-
-
-
-
9,148
9,148
-
-
-
-
-
(25,223,443)
(15,238)
(25,238,681)
1,192,333
1,201,481
-
1,201,481
1,192,333
(24,021,962)
(15,238)
(24,037,200)
-
-
-
-
2,767,918
(14,275)
1,005,976
-
-
-
-
-
2,767,918
(14,275)
1,005,976
-
-
(67,333)
1,005,976
551,585
397,214
(1,166,164)
178,237
(14,003)
164,234
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
37 | P a g e
Equus Mining Limited
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2023
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
Interest paid
Notes
2023
$
2022
$
15,892,242
15,998,345
(20,461,911)
(18,989,750)
(4,569,669)
(2,991,405)
10,967
3,269
(240,119)
-
Net cash used in operating activities
21
(4,798,821)
(2,988,136)
Cash flows from investing activities
Payments for exploration and evaluation expenditure
Payment for plant and equipment
Net cash used in investing activities
Cash flows from financing activities
Proceeds from share issues
Proceeds for shares yet to be issued
Transaction costs on share issue
Proceeds from Borrowings
Lease payments
Net cash provided by financing activities
Net increase / (decrease) in cash held
Cash and cash equivalents at 1 July
(3,025,056)
(4,895,336)
(33,687)
-
(3,058,743)
(4,895,336)
2,445,500
5,558,710
500,000
(14,275)
3,223,969
-
(168,389)
-
(210,925)
(82,835)
5,944,269
5,307,486
(1,913,295)
(2,575,986)
2,148,443
4,724,429
Cash and cash equivalents at 30 June
7
235,148
2,148,443
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
38 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
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 2023 comprises the Company and its subsidiaries (together referred to as the 'Group'). The
Group is a for-profit entity and has 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 ('IFRS') and interpretations adopted by the International Accounting Standards Board ('IASB').
The consolidated financial statements were authorised for issue by the Directors on 22 December 2023.
(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.
The Group recorded a loss attributable to equity holders of the Company of $25,223,443 for the year ended 30 June
2023 and has accumulated losses of $143,541,160 as at 30 June 2023. The Group used $4,798,821 of cash in operations,
in addition to $3,025,056 of cash for exploration and evaluation expenditure for the year ended 30 June 2023 and had
cash on hand of $235,148 at 30 June 2023 and net current liabilities of $9,264,502 as at 30 June 2023.
Subsequent to period end the Group executed binding agreements with Mitre Mining Corporation Limited (“Mitre") (ASX:
MMC) for the sale of all the Chilean assets and undertakings of Equus. The sale is contingent on a number of conditions,
which include both parties receiving shareholder approval, Mitre securing financing of not less than $6,000,000, and
relevant third party and government approvals. Total consideration for the sale is $5,000,000. Of the stated
consideration, Tribeca and its affiliated entities (“Tribeca”) will receive $3,000,000 cash and Mitre shares to the value of
$500,000. In return, Tribeca will unconditionally release the Group of its repayment obligations in respect of the USD
$2,200,000 facility outstanding as at 30 June 2023 (refer to note 16). The Group will be entitled to cash consideration of
$500,000 as a result of the sale, of which $200,000 was received in October 2023. There is an additional $1,000,000 in
deferred consideration, in the form of cash or shares being at the discretion of Mitre and subject to shareholder
approval, contingent on a minimum resource and grade milestones at Cerra Bayo within 5 years. In addition to the
purchase consideration, since execution of the agreements Mitre has provided funding of $500,000 towards the working
capital of the Chilean operations and in the event the transaction is not completed Equus will be required to repay these
amounts to Mitre.
The Directors have prepared cash flow projections for the period to 31 December 2024 that support the ability of the
Group to continue as a going concern. These cash flow projections are critically dependent on the following
assumptions:
•
Finalisation of the sale of the Chilean assets and undertakings to Mitre, thereby rendering the Group entitled to the
remaining cash consideration of $300,000 in January 2024;
39 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
2.
BASIS OF PREPARATION (Cont.)
(d) Going concern (Cont.)
• The Group securing unconditional release from all of its present and future obligations under its loan facility
agreement with Tribeca as a result of the finalisation of the sale. During and subsequent to year-end the Group has
failed to meet covenant requirements imposed by the facility agreement and as a result entered into forbearance
arrangements with Tribeca with effect to 31 January 2024 or until which time the abovementioned sale is finalised
or is no longer to proceed;
• Subsequent to the completion of the sale to Mitre, the Directors securing future investment opportunities for the
Group in order to sustain its operations long-term. Until such a time, the Group will be dependent upon future share
placements and will be required to significantly reduce operating expenditure in line with available funding. The
Group has successfully raised additional funding in the prior years, however such fundraising is inherently uncertain
until secured.
In the event some or all of these critical assumptions do not transpire, the Group may not be able to continue its
operations as a going concern. As a result the Group may not be in a position to realise its assets and extinguish its
liabilities in the ordinary course of operations and at the amounts stated in the consolidated annual financial report.
(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));
• Borrowings (Note 16);
•
•
Provision for rehabilitation (Note 17);
Exploration and evaluation (Note 13);
(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.
40 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
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) Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in the income statement over the period of the borrowings using the effective interest method.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the
liability for at least 12 months after the balance sheet date.
Borrowing costs which are directly attributable to the Group’s exploration and evaluation activities are capitalised in
relation to qualifying assets
(d)
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.
(e) 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.
41 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
3.
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
(f) 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.
(g) 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.
(h) 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.
42 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
3.
(i)
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
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.
43 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
3.
(i)
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
Financial instruments
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.
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.
(j) 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.
(k) 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.
44 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
3.
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
(l) 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.
(m) 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.
(n) Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three months or less.
45 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
3.
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
(o)
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.
(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.
46 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
3.
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
(q) 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.
(r) 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.
(s) 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.
(t) 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.
47 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
3.
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
(u) 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.
(v) 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.
48 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
3.
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
(w) 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.
49 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
4. LOSS FROM OPERATING ACTIVITIES
Other revenue
Miscellaneous revenue
2023
$
270,015
410,550
680,565
2022
$
253,677
-
253,677
Other revenue relates to the changes between provisional priced invoices and the final price recorded per the quotation
periods stipulated in the sales contract.
Miscellaneous revenue represent the sale of obsolete consumables and minor assets.
Other expenses
Depreciation
Travel
ASIC and ASX fees
Amortisation of consumables
Audit and review services – KPMG
Accounting and secretarial fees
Legal fees
Other
5. FINANCE INCOME AND FINANCE COSTS
Recognised in profit and loss
Interest income on cash deposits
Foreign exchange (loss) / gain
Interest expense
Imputed interest on borrowings
Net finance income/(costs) recognised in profit or loss
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
2023
$
241,948
118,564
79,812
394,859
141,875
81,093
164,240
210,925
1,433,316
2022
$
81,920
126,118
112,205
-
134,500
72,922
692,016
-
1,219,681
10,967
(1,366,750)
(240,119)
(1,100,258)
(2,696,160)
3,269
694,872
(28,525)
-
669,616
9,148
9,148
(13,096)
(13,096)
50 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
6. INCOME TAX EXPENSE
Current tax expense
Current year
Overprovision in prior year
Losses not recognised
Numerical reconciliation of income tax expense to prima facie tax payable:
Loss before tax
Prima facie income tax benefit at the Australian tax rate of 25%
Decrease in income tax benefit due to:
- non-deductible expenses
- 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)
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%
2023
$
2022
$
(287,853)
(352,838)
-
-
287,853
352,838
-
-
25,238,681
3,984,248
(6,309,671)
(1,095,668)
5,499,202
381,100
-
-
477,137
687,303
333,332
27,265
-
-
5,574,426
5,908,891
4,462,282
4,158,744
18,149,547 14,955,384
128,030
245,973
28,314,285 25,268,992
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
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
Other
2023
$
2022
$
235,148
1,088,308
-
1,060,135
235,148
2,148,443
-
-
687,160
322,455
1,009,615
1,863,555
181,296
160,038
4,265
2,209,154
9,186,822
3,418
7,158,568
-
9,190,240
7,158,568
For the year ended 30 June 2023 and in accordance with the acquisition agreement, Mandalay Resources Corporation
has agreed to contribute 50% of the closure cost up to AU $9,186,822 (plus V.A.T.). The Group has recognised a receivable
from Mandalay in relation to this reimbursement right. Refer to note 17.
51 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
INVENTORIES
9.
Gold and silver concentrate
Consumables
Impairment of consumables
2023
$
2022
$
-
1,864,115
394,859
1,823,326
(394,859)
(1,361,647)
-
2,325,794
In 2022, Compañía Minera Cerro Bayo SpA had an offtake agreement with Glencore Chile SpA. (‘Glencore’) for the supply
of gold and silver concentrate. The contract duration was for 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.
10. PREPAID EXPENSES
Prepaid expenses
11. INVESTMENTS
2023
$
2022
$
39,333
39,333
574,087
574,087
At 30 June 2023, the Group holds 1,327,000 shares (30 June 2022: 1,327,000) in Blox Inc., a US over the counter traded
company at which had a closing share price of US$0.0050 at 30 June 2023 (30 June 2022: US$0.0004).
The Group recognises its financial assets at fair value and classifies its investments as follows:
Equity instruments at fair value through other comprehensive income
Equity securities – Investment in Blox Inc.
2023
$
2022
$
9,953
777
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
2023
$
777
9,176
9,953
2022
$
13,803
(13,026)
777
52 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
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
2023
$
2022
$
108,439
-
-
108,439
(39,681)
3,375
72,133
14,276
34,821
(15,263)
336
34,170
327,672
101,834
(272,331)
6,836
164,011
(2,512)
(104)
105,823
-
14,276
(761)
(32)
13,483
-
327,672
(78,647)
(3,271)
245,754
Total plant and equipment – net book value
270,314
365,060
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
105,823
-
(37,065)
3,375
72,133
13,483
34,821
(14,470)
336
34,170
245,754
101,834
(190,413)
6,836
164,011
-
108,439
(2,512)
(105)
105,823
-
14,276
(761)
(32)
13,483
-
327,672
(78,647)
(3,271)
245,754
270,314
365,060
53 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
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
Impairment
Foreign currency translation movement
Balance carried forward
Cerro Diablo gold-silver
Carrying amount at the beginning of the year
Additions
Impairment
Foreign currency translation movement
Balance carried forward
Cerro Bayo
Carrying amount at the beginning of the year
Additions
Impairment
Additions via acquisition of Compañía Minera Cerro Bayo
Foreign currency translation movement
Balance carried forward
Net book value
2023
$
2022
$
-
4,374,815
73,478
13,738,462 18,643,303
-
13,738,462 23,091,596
4,374,815
4,979,807
16,997
45,466
(4,777,044)
385,232
(650,458)
-
4,374,815
73,478
-
(80,084)
72,404
11,443
6,606
(10,369)
-
73,478
18,643,303
6,151,463
2,980,053
4,895,336
(9,432,065)
-
-
8,552,360
1,547,171
(955,856)
13,738,462 18,643,303
13,738,462 23,091,596
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. During the year the Group impaired
Los Domos gold-silver project by $4,777,044 and the Cerro Diablo project by $80,084 as no exploration work was carried
out. The Company impaired the carrying value of the Cerro Bayo exploration expenditure by $9,432,065 to reflect the
fair value as at 30 June 2023.
14. TRADE AND OTHER PAYABLES
Current liabilities
Trade creditors and accruals
Employee leave entitlements
2023
$
2022
$
2,410,387
2,688,123
47,826
2,458,213
287,613
2,975,736
54 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
15. LEASE LIABILITY
Current
Non-current
16. BORROWINGS
Loan facility
Fair value adjustment
Foreign currency translation movement
2023
$
2022
$
178,723
-
178,723
165,360
82,680
248,040
3,305,482
17,921
(5,152)
3,318,251
-
-
-
The Company entered into a Corporate Debt facility for US$2.2 million provided by a Fund managed by Tribeca
Investment Partners Pty Ltd, Tribeca Global Resources Credit Pty Ltd (‘Tribeca’), and certain nonassociated co-investors
introduced by Tribeca. The interest rate is 10% payable quarterly in arrears. The loan is repayable in full in 24 months
following the drawdown date of 13 October 2022. The loan is secured by firstranking general security. The loan financial
covenants have been conditionally deferred by Tribeca until 31 March 2024. Tribeca received 22,863,081 options for
providing the loan facility. The fair value of the options are recognised as part of the loan facility and amortised in profit
and loss as finance costs using the effective interest rate over the term of the loan.
The Company was required to raise $2 million in additional share capital by 15 June 2023 to comply with the terms of
the Corporate Debt Facility (as amended for waivers granted by the Lender). As a result of not obtaining the share
capital, the contractual amount payable (the face value of the debt) of US$2.2 million (A$3.3 million) became repayable
on demand. The difference between the carrying amount of the loan and the face value (being the unamortised interest
that was to be recognised using the effective interest rate) was recognised as interest expense of $1,023,897 during the
year.
On 3 October 2023, the Company entered into a Deed of Forbearance with the lenders of its borrowing facility, Tribeca
and its affiliated entities (“Tribeca”), as a result of breaching the terms of its loan facility agreement, having failed to pay
accrued interest on 30 September 2023. As a result, the lenders have agreed not to exercise their power to call upon
the loan until 31 January 2024, or earlier in the event that the sale of the Group’s Chilean operations is finalised or does
not proceed.
Fair value of options
The fair value of options granted is measured at grant date and recognised as an expense over the period during which
the recipients become unconditionally entitled to the options. The fair value of the options granted is measured using
an option valuation methodology, taking into account the terms and conditions upon which the options were granted.
The amount recognised as an expense is adjusted to reflect the actual number of options that vested during the period.
The fair value of options granted on 11 October 2022 to the lender of the loan facility was $1,005,976. The Black-Scholes
formula model inputs were the Company's share price of $0.088 at the grant date, a volatility factor of 94.3% based on
historic share price performance, a risk-free interest rate of 3.01% based on government bonds and a dividend yield of
0%.
17. PROVISION FOR REHABILITATION
In 2012, 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 $18,373,644 (plus V.A.T.) as determined by Sernageomin. The Company has
recognised $4,593,411 of the closure plan cost as a current liability and $13,780,233 as a non-current liability. In
accordance with the acquisition agreement, Mandalay Resources Corporation has agreed to contribute 50% of the
closure cost up to AU $9,186,822 (plus V.A.T.). The Group has recognised a receivable from Mandalay in relation to this
contribution.
55 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
2023
2022
Nº
$
Nº
$
18. ISSUED CAPITAL
(a) Fully paid ordinary shares
Balance at beginning of financial year
174,076,954
140,177,143
2,296,617,251 129,460,300
Issued ordinary shares 7 July 2021 for $0.011 1
Issued ordinary shares 14 September 2021 – non cash 1
Issued ordinary shares 1 October 2021 – non cash 2
Issued ordinary shares 2 December 2021 – non cash 3
Consolidation of 1 share for every 20
Issued ordinary shares 16 December 2021 for $0.17
Issued ordinary shares 9 February 2022 for $0.17
Issued ordinary shares 2 September 2022 for $0.10
Issued ordinary shares 1 December 2022 – non cash 4
Issued ordinary shares 13 December 2022 for $0.10
Issued ordinary shares 6 April 2023 for $0.04
Issued ordinary shares 5 May 2023 for $0.04
Less cost of issue
204,973,636
2,254,710
1,250,000
2,500,000
14,000
25,000
587,502,438
5,287,522
(2,938,201,665)
-
13,080,000
2,223,600
6,355,294
1,080,400
12,755,000
1,275,500
4,605,971
2,700,000
5,000,000
17,500,000
322,418
270,000
200,000
700,000
(14,275)
-
(168,389)
216,637,925
142,930,786
174,076,954 140,177,143
1 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.
2 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.
3 Shares issued on 2 December 2021 related to the acquisition of the issued capital of Compañía Minera Cerro Bayo
Limited.
4 Shares issued on 1 December 2022 related to the issued of shares as consideration for drilling services provided in
connection with the Cerro Bayo project in southern Chile.
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.
56 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
18. ISSUED CAPITAL (Cont.)
(b)
Share Options
During the year ended 30 June 2023, the company granted the following options:
•
The Company on 11 October 2022, pursuant to a loan facility agreement provided by a Fund managed by Tribeca
Investment Partners Pty Ltd, Tribeca Global Resources Credit Pty Ltd (‘Tribeca’) granted 22,863,081 unlisted options
to the lenders. The options have an exercise price of $0.15, vest immediately and expire on 14 October 2025.
The fair value of options granted is measured at grant date and the expense is recognised on vesting date. The fair
value of the options granted is measured using an option valuation methodology, taking into account the terms
and conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect
the actual number of options that vested during the period.
The fair value of the options was $1,005,976. The Black-Scholes formula model inputs were the Company's share
price of $0.088 at the grant date, a volatility factor of 94.3% based on historical share price performance and a risk-
free interest rate of 3.01% based on the 3-year government bond rate.
No options were garnted during the year ended 30 June 2022.
• During the year ended 30 June 2023 and 30 June 2022 the Company has not granted options to Directors of the
Company.
On 25 November 2020, 999,999 (pre-consolidation 20,000,000) unlisted options were granted to the Managing
Director (‘MD’) and 249,999 (pre-consolidation 5,000,000) unlisted options were granted to the Chief Operating
Officer (‘COO’) as follows:
Number of
options
Exercise
price
Vesting
Expiry Date
Fair Value per
Option at Grant
Date
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
Fair
Value
$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.
57 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
18. ISSUED CAPITAL (Cont.)
(b) Share Options (Cont.)
The following unlisted options were on issue as at 30 June 2023:
Opening Balance
1 July 2022
Exercise
Price
Granted
during the year
Expired during
the year
Exercised during
the year
Closing Balance
30 June 2023
Number
250,000
333,333
333,333
416,666
416,666
416,666
125,000
20,094,427
-
$
1.40
0.60
0.70
0.44
0.50
0.54
0.44
0.30
0.15
Number
Number
Number
Number
-
-
-
-
-
-
-
-
22,863,081
-
333,333
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
250,000
-
333,333
416,666
416,666
416,666
125,000
20,094,427
22,863,081
The following unlisted options were on issue as at 30 June 2022:
Opening Balance
1 July 2021
Number
250,000
250,000
333,333
333,333
333,333
416,666
416,666
416,666
125,000
20,094,427
Exercise
Price
Granted
during the year
Expired during
the year
Exercised during
the year
Closing Balance
30 June 2022
$
1.00
1.40
0.54
0.60
0.70
0.44
0.50
0.54
0.44
0.30
Number
Number
Number
Number
-
-
-
-
-
-
-
-
-
-
250,000
-
333,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
250,000
-
333,333
333,333
416,666
416,666
416,666
125,000
20,094,427
58 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
19. RESERVES
Fair value reserve (a)
Foreign currency translation reserves (b)
Equity based compensation reserve (c)
Option premium reserve (d)
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
(d) Option premium reserve
Balance at beginning of period
Issue of options
Balance at end of period
Nature and purpose of reserves
2023
$
2022
$
397,214
(1,166,164)
551,585
1,005,976
388,066
(2,358,497)
618,918
-
788,611
(1,351,513)
388,066
9,148
397,214
401,162
(13,096)
388,066
(2,358,497)
1,192,333
(1,166,164)
(981,096)
(1,377,401)
(2,358,497)
618,918
-
(67,333)
551,585
717,918
-
(99,000)
618,918
-
1,005,976
1,005,976
-
-
-
Fair value reserve:
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.
Option premium reserve:
The option premium reserve is used to recognise the grant date fair value and to accumulate proceeds received from
the issue of options.
59 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
2023
$
2022
$
20. 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
(25,223,443)
(3,981,385)
Weighted average number of ordinary shares (basic and diluted)
Issued ordinary shares at beginning of year
Share consolidation
Effect of shares issued (Note 18)
Weighted average ordinary shares at the end of the year
174,076,954
2,296,617,251
-
(2,181,786,893)
18,502,508
36,674,841
192,579,462
151,505,199
As the Group is loss making, none of the potentially dilutive securities are currently dilutive in the calculation of total
earnings per share.
21. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES
Cash flows from operating activities
Loss for the year
Non-cash items
Imputed interest on borrowings
Depreciation
Foreign currency exchange loss/(gain)
Impairment consumables
Share based payments
Impairment E&E
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
Net cash used in operating activities
2023
$
2022
$
(25,238,681)
(3,984,246)
1,100,258
241,948
-
81,920
1,367,198
(698,141)
394,859
1,361,647
-
39,000
14,289,193
-
1,273,791
2,012,927
(153,700)
306,181
(1,474,433)
(574,087)
(2,200,832)
3,434,951
396,992
236,298
(4,798,821)
(2,988,136)
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
235,148
2,148,443
60 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
22. SHARE BASED PAYMENT
No options were granted during the year ended 30 June 2023 and 2022 to Directors of the Company to acquire options
over unissued ordinary shares in the Company.
The terms and conditions of the options held by key management personnel during the year ended 30 June 2023 are as
follows:
Grant
date
Expiry
date
Vesting
date
Exercise
price
Fair value
of options
granted
Total
granted
Number
Total
Exercised
Number
Balance at
end of the
period
14 October 2019 13 November 2023
14 October 2019
$1.40
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
$0.70
$0.44
$0.50
$0.54
$59,000
$80,000
250,000
333,333
$58,334
416,666
$66,666
416,666
$75,000
416,666
-
-
-
-
-
250,000
333,333
416,666
416,666
416,666
Weighted average of options in the equity based compensation reserve during the year
Number of options
Weighted average
exercise price
Number of options
Weighted average
exercise price
Outstanding
2022
2,166,664
2022
$0.627
2023
1,833,331
2023
$0.632
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 1.26 years (2022 – 1.97).
During the year, no ordinary shares were issued as a result of the exercise of options granted to Directors (2022 – nil).
23. 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 2023 and 2022, 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.
61 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
24. KEY MANAGEMENT PERSONNEL DISCLOSURES
Information regarding individual key management personnel’s compensation and some equity instruments disclosures
as permitted by the 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
Short term benefits
2023
$
2022
$
830,609
-
73,500
40,337
944,446
776,150
175,000
78,125
67,459
1,096,734
At 30 June 2023, $180,568 in fees and superannuation were outstanding (2022 fees – $22,492). There were no loans
made to key management personnel or their related parties during the 2023 and 2022 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' interests existing at year-end.
25. 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.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group's
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Group's reputation.
The Group 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 $235,148 for its immediate
use.
62 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
25. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS DISCLOSURE (Cont.)
The following are the contractual maturities of financial liabilities:
Financial liabilities
30 June 2023
Carrying
amount
Contractual
cash flows
Less than 6
months
6 to 12
months
1 to 5 years
$
$
$
$
$
Trade and other payables
Borrowings
2,636,936
3,318,251
(2,636,936)
(3,318,251)
(2,636,936)
(3,318,251)
-
-
-
-
30 June 2022
Trade and other payables
Borrowings
3,223,776
-
(3,223,776)
-
(3,058,416)
-
(82,680)
-
(82,680)
-
More
than 5
years
$
-
-
-
-
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
2023
$
2022
$
235,148
2,148,443
1,009,615
2,209,154
9,190,240
10,435,003
7,158,568
11,516,165
At 30 June 2023, the Group held cash and cash equivalents of $235,148 (2022: $2,148,443), 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’.
Receivables
For the year ended 30 June 2023, the Group receivables are with government departments for the recoupment of GST.
Other receivables primariliy relates to the receivable from Mandalay Resources to cover 50% of the closure costs of
Cerro Bayo, this receivable has been reclassified as assets held for sale. The Group has assessed the credit risk
associated with the Mandalay Resources receivable and considers the risk to be low at 30 June 2023.
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. For the year ended 30 June 2023, the Group is not exposed to Market Risk because it has
suspended its production activities at its Cerro Bayo project.
63 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
25. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS DISCLOSURE (Cont.)
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
2023
$
2022
$
235,148
2,148,443
There are no fixed rate instruments (2022 - $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.
Currency risk
The Group is exposed to currency risk on bank accounts and a loan payable denominated in USD
Cash at Bank
2023
USD
-
2022
USD
45,262
Borrowing
(2,200,000)
-
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)
Total equity
Higher/(lower) Higher/(lower)
2023
$
300,000
(366,703)
2023
$
300,000
(366,703)
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.
64 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
25. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS DISCLOSURE (Cont.)
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.
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 2023
30 June 2022
Equity instruments at fair value through profit and loss**
30 June 2023
30 June 2022
Level 1
Level 2
Level 3
Total
$
$
$
$
-
-
-
9,953
777
-
-
-
-
9,953
777
-
- 1,863,555
- 1,863,555
*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.
65 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
26. CONTROLLED ENTITIES
Parent entity
Equus Mining Limited is an Australian incorporated company listed on the Australian Securities Exchange.
Wholly owned controlled entities
Hotrock Enterprises Pty Ltd
Equus Resources Pty Ltd
Dataloop Pty Ltd
Okore Mining Pty Ltd
Subsidiary of Hotrock Enterprises Pty Ltd
Derrick Pty Ltd
Andean Coal Pty Ltd
Subsidiary of Andean Coal Pty Ltd
Minera Carbones Del Sur SpA
Subsidiary of Equus Resources Pty Ltd
Equus Resources Chile SpA
Minera Equus Chile SpA
Compañía Minera Cerro Bayo SpA
Subsidiary of Dataloop Pty Ltd
Southern Gold SpA
Subsidiary of Southern Gold SpA
Equus Patagonia SpA
27. SUBSEQUENT EVENTS
Country of
incorporation
Ownership Interest
2023
2022
Australia
Australia
Australia
Australia
Australia
Australia
Chile
Chile
Chile
Chile
Chile
Chile
%
100
100
100
100
100
100
%
100
100
100
100
100
100
100
99.9
100
100
100
100
100
100
100
100
75
75
On 14 July 2023, the Company issued 32,500,000 ordinary shares to an institutional investor and a director of the
Company at an issue price of $0.04 raising $1,300,000 ($500,000 was received before 30 June 2023) before costs, the
Company also issued 25,000,000 unlisted options to the institutional investor. The options have an exercise price of
$0.05 expiring on 28 June 2026.
On 3 October 2023, the Company entered into a Deed of Forbearance with the lenders of its borrowing facility, Tribeca
and its affiliated entities (“Tribeca”), as a result of breaching the terms of its loan facility agreement, having failed to pay
accrued interest on 30 September 2023. As a result, the lenders have agreed not to exercise their power to call upon
the loan until 31 January 2024, or earlier in the event that the sale of the Group’s Chilean operations is finalised or does
not proceed (refer below). On 12 October 2023, the Company issued 3,937,008 ordinary shares to the value of $50,000
to Tribeca under the terms of the deed.
On 30 November 2023, Equus executed binding documentation with Mitre Mining Corporation Limited (“Mitre”) under
which Mitre will acquire all the Chilean assets and undertakings of Equus. Under the terms of the agreement, Mitre will
acquire 100% of the Group’s Australian subsidiary Equus Resources Pty Ltd which holds through subsidiaries in Chile
100% of the share capital of the Cerro Bayo project and the Cerro Diablo exploration project. Additionally, Mitre will
acquire all the assets and undertakings of Equus’ subsidiaries, Southern Gold SpA and Equus Patagonia SpA, which
together own all the assets comprising the Los Domos exploration project. The sale is contingent on a number of
conditions, which include both parties receiving shareholder approval, Mitre securing financing of not less than
$6,000,000, and relevant third party approvals with the transaction intended to close prior to 31 January 2024.
66 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
27. SUBSEQUENT EVENTS (Cont.)
Total consideration for the sale is A$5.0 million comprised of:
• A$3.5 million cash;
• A$0.5 million of Mitre shares; and
• A$1.0 million deferred consideration in cash or shares (at Mitre’s discretion and subject to Mitre shareholder
approval) subject to minimum resource and grade milestones at Cerro Bayo within 5 years.
Tribeca will be directly paid and issued cash of A$3 million and shares to the value of A$500,000 in full repayment of all
amounts owed by Equus under the US$2.2 million Loan Facility Agreement with Tribeca. The Group will be entitled to
cash consideration of $500,000 as a result of the sale, of which $200,000 was received in October 2023.
28. COMMITMENTS
Exploration expenditure commitments
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.
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 2023, the reportable segments of the Group are mineral processing and
mineral exploration within the geographical segment of Chile.
30 June 2023
External revenues
Processing
$
Mineral
Exploration
$
Total
$
12,267,327
-
12,267,327
Reportable segment profit /(loss) before tax
(5,272,724)
(13,549,181)
(18,821,905)
Interest income
Interest expense
Depreciation
Impairment of consumables
Impairment of E&E
Reportable segment assets
Reportable segment liabilities
30 June 2022
External revenues
-
-
(241,948)
(394,859)
-
374
-
-
-
(14,289,193)
374
-
(241,948)
(394,859)
(14,289,193)
10,638,861
18,950,651
13,825,366
1,093,641
24,464,227
20,044,292
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
Reportable segment assets
Reportable segment liabilities
-
(28,525)
(81,920)
(1,361,647)
2
-
-
-
2
(28,525)
(81,920)
(1,361,647)
12,058,576
16,623,774
23,091,596
483,677
35,150,172
17,107,451
67 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
29. OPERATING SEGMENTS (Cont.)
Reconciliations of reportable segment revenues and profit or loss
Revenues
Total revenue for reportable segments
Total revenue unallocated
Consolidated revenue
Profit or loss
Total loss for reportable segments
Unallocated amounts:
Other income
Net finance income
Net finance costs
Net other corporate expenses
Consolidated loss before tax
Reconciliations of reportable segment revenues and profit or loss (Cont.)
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
2023
$
2022
$
12,267,327
-
12,267,327
15,876,376
-
15,876,376
(18,821,905)
(2,177,501)
-
10,593
(1,340,377)
(5,086,992)
-
3,337
-
(1,810,082)
(25,238,681)
(3,984,246)
2023
$
2022
$
24,464,227
28,838
24,493,065
35,150,172
2,723,307
37,873,479
20,044,292
4,284,539
24,328,831
17,107,451
324,213
17,431,664
In presenting information on the basis of geography, segment revenue and segment assets are based on the
geographical location of the operations.
Chile
2023
2022
Revenue
$
Non-current
assets
$
12,267,327
23,199,015
Revenues
$
15,876,376
Non-current
assets
$
30,615,223
68 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
30. PARENT ENTITY DISCLOSURES
As at, and throughout the financial year ended 30 June 2023 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
2023
$
2022
$
(24,248,791)
-
(24,248,791)
(5,823,935)
-
(5,823,935)
18,648
4,031,888
4,050,536
1,150,218
19,489,788
20,640,006
966,288
2,920,015
3,886,303
164,233
324,215
-
324,215
20,315,791
142,930,786
(145,049,794)
1,954,775
164,233
140,177,143
(120,868,336)
1,006,984
20,315,791
The Directors are of the opinion that no commitments or contingent liabilities existed at or subsequent to year end.
69 | P a g e
Equus Mining Limited
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 35 to 69, and the Remuneration Report
as set out on pages 28 to 32 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 2023 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.
2. The Directors have been given the declarations required under section 295A of the Corporations Act 2001 for the
financial year ended 30 June 2023.
3. 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.
Signed at Sydney this 22nd day of December 2023 in accordance with a resolution of the Board of Directors:
Mark H. Lochtenberg
Director
John R. Braham
Director
70 | P a g e
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 2023 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 2023
• 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
• 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 these requirements.
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.
71 | P a g e
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:
-
-
-
-
-
Analysing the underlying data used to generate projections for consistency with other
information tested by us, our understanding of the Group’s intentions, and past results and
practices;
Agreeing key assumptions in respect of the sale of the Group’s Chilean assets and
undertakings to the executed sale and asset purchase documentation;
Assessing the Group’s present and future obligations under the Tribeca loan facility
agreement and the effect of subsequent forbearance arrangements entered into following
the Group’s non-compliance with covenant and interest payment requirements under the
facility prior and subsequent to year-end;
Assessing the planned levels of operating expenditure for consistency of relationships and
trends to the Group’s historical results, results since year end, confirmations from directors
and related parties 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 cash consideration from the sale of Chilean operations and prospective 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
Key Audit Matters are those matters that, in our professional judgement, were of most significance in
our audit of the Financial Report of the current period.
These matters were addressed in the context of our audit of the Financial Report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
In addition to the matter described in the Material uncertainty related to going concern section, we
have determined the matter described below to be the Key Audit Matter.
72 | P a g e
Exploration and evaluation expenditure ($13,738,462)
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
56% of total assets);
• 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; and
• The presence of impairment indicators in
the current year and the planned sale of the
Chilean entities after year end.
In assessing the conditions allowing
capitalisation of relevant expenditure, we
focused on:
• The determination of 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:
• The strategic direction of the Group and its
intention to continue E&E activities in each
area of interest, including the sale of the
Chilean entities post-year end;
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. We corroborated
this through interviews with key personnel;
• 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 evaluated the terms and conditions of the
proposed sale of the Chilean assets including
the expected proceeds on disposal.
• The ability of the Group to fund the
• We tested the discounted cash flows prepared
73 | P a g e
continuation of activities, including
assessing the previous capital raisings that
occurred; and
by management for consistency with available
information to support the inputs and
assumptions included in the valuation model.
• We tested management’s calculation of
impairment based on their assessment of the
recoverable amounts to ensure impairment of
E&E assets was consistent with the
requirements of accounting standards.
• Results from latest activities regarding the
existence or otherwise of economically
recoverable reserves for each area of
interest.
From our assessment of the above, we
concluded that impairment indicators did exist
during the year and an assessment was
required to determine the recoverable amount
of the E&E assets. This assessment led to an
impairment of the E&E assets of $14.3m for
the year ended 30 June 2023.
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.
74 | P a g e
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.
Report on the Remuneration Report
Opinion
Directors’ responsibilities
In our opinion, the Remuneration Report
of Equus Mining Limited for the year
ended 30 June 2023, 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 28 to 32 of the Directors’ report for the year
ended 30 June 2023.
Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
KPMG
Adam Twemlow
Partner
Brisbane
22 December 2023
75 | P a g e
EQUUS MINING LIMITED
ADDITIONAL STOCK EXCHANGE INFORMATION
Additional information as at 30 November 2023 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 30 November 2023 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
985
698
243
526
169
2,621
Total
Number of
Shares
348,874
1,774,134
1,833,625
18,736,070
230,382,230
253,074,933
Less than Marketable Parcels
On 30 November 2023, 1,926 shareholders held less than marketable parcels of 10,000 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.
Tribeca Investment Partners Pty Ltd
Mandalay Resources Corporation
Mark Lochtenberg - Rigi Investments Pty Limited
Gerard C Toscan Management Pty Limited – Ringwood Management Pty Ltd
Number of
Ordinary Shares
50,563,289
29,375,122
27,487,431
14,113,416
76 | P a g e
EQUUS MINING LIMITED
ADDITIONAL STOCK EXCHANGE INFORMATION
Twenty Largest Shareholders
As at 30 November 2023, the twenty largest quoted shareholders held 71.73% of the fully paid ordinary shares as follows:
Name
Number
%
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Tribeca Investment Partners Pty Ltd
Mandalay Resources Corporation
Rigi Investments Pty Ltd
HSBC Custody Nominees (Australia) Limited
JP Morgan Nominees Australia Pty Limited
Hodgson Capital Limited
Gerard C Toscan Management Pty Limited
Ringwood Management Pty Limited
Mountain Drilling Limitada
John Wardman & Associates Pty Ltd
Perrin Legal Pty Ltd
Terrane Minerals SpA
Simon Gary Sedorenko
Argonaut Partners Pty Ltd
DRYCA Pty Ltd
CITICORP Nominees Pty Limited
Mrs Sally Anne Clifford
Kyalla Investments Pty Limited
BNP Paribas Nominees Pty Ltd ACF Clear Sream
BNP Paribas Nominees Pty Ltd
50,563,289
29,375,122
27,487,431
14,508,742
12,142,090
9,200,000
7,774,506
6,338,910
4,605,971
3,524,118
2,771,925
2,070,853
1,700,000
1,500,000
1,491,115
1,431,767
1,420,300
1,250,000
1,196,915
1,180,591
19.98
11.61
10.86
5.73
4.80
3.64
3.07
2.50
1.82
1.39
1.10
0.82
0.67
0.59
0.59
0.57
0.56
0.49
0.47
0.47
OPTIONHOLDERS IN THE COMPANY
Total optionholders as at 30 November 2023 9, holding 49,154,746 unlisted options.
SUBSTANTIAL OPTIONHOLDERS IN THE COMPANY
As at 30 November 2023, the twenty largest optionholders that held 20% or more of the unquoted options.
Name
Unlisted Options
Quantity
%
1
J.P. Morgan Nominees Australia Pty Limited
34,809,514
70.82
Escrow securities
As at 30 November 2023, there were escrow securities.
77 | P a g e
EQUUS MINING LIMITED
ADDITIONAL STOCK EXCHANGE INFORMATION
Group Mineral Concession Interests at 30 November 2023
The Company provides the following information regarding its mining tenements:
Project
Tenement Name
Location
Ownership
Cerro Bayo
ARROYO 1-25
ARROYO 31-40
BUITRERA 61-90
BUITRERA 91-120
GUANACA 101-106
GUANACA 131-158
GUANACA 161-190
GUANACA 191-220
GUANACA 221-243
JARA 1-100
NIEVES 1-30
NIEVES 31-60
NIEVES 61-90
NIEVES 91-120
NIEVES 121-150
LAPIZ 1-7
PERRA 101-123
PERRA 131-160
PERRA 161-190
PERRA 191-220
PERRA 221-244
CARRERA 1-37
MALLINES 1-100
HORQUETAS 1-75
BUITRERA 1-60
BRILLANTES 1-100
BAYO 1-70
MESETA 1-100
AGUILA 1-100
SINTER 1-100
BAHIA 1-100
VERDE 1-60
PERRA 1-66
VICUNA 1-45
LARGA 1-84
CASCADA 1-100
ALPACA 4-15 Y 19-45
GUANACA 6-17, 23-34 Y 38-
87
LAGUNA 10-20, 30-40, 45-
60, 62-80 Y 82-100
RIBERA 6-12, 18-24, 30-36,
41-48 Y 50-60
ROCA 5-15, 20-30 Y 32-100
PUNTA 3-15, 18-30, 33-45,
47-60, 62-75, 78-81 Y 88-90
ORILLA 12-15, 27-30, 37-45,
47-60 Y 62-75
EDITH 3 1/60
EDITH 4 1/60
EDITH 5 1/60
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Chile
Minera Equus Chile Limitada
Chile
Minera Equus Chile Limitada
Chile
Chile
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Chile
Minera Equus Chile Limitada
%
Interest
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Type of tenement
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
100
Mining Concession
100
Mining Concession
100
Mining Concession
100
Mining Concession
100
Mining Concession
100
Mining Concession
Chile
Chile
Chile
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
100
100
100
Mining Concession
Mining Concession
Mining Concession
78 | P a g e
EQUUS MINING LIMITED
ADDITIONAL STOCK EXCHANGE INFORMATION
Project
Tenement Name
Location
Ownership
Cerro Bayo
EDITH 6 1/60
EDITH 7 1/28
EDITH 8 1/56
EDITH 9 1/56
EDITH 10 1/38
EDITH 11 1/60
MIRASOL 1 1/56
MIRASOL 2 1/36
MIRASOL 3 1/36
EDITH 12 1/40
EDITH 13 1/60
EDITH 14 1/60
EDITH 15 1/50
EDITH 16 1/50
EDITH 17 1/43
MIRASOL 4 1/20
MIRASOL 5 1/30
MIRASOL 6 1/45
JOE 1 1/20
EDITH 2 1/40
MIRASOL 7 1/15
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
%
Interest
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Type of tenement
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Mining Concession
Project
Tenement Name
Location
Ownership
Los Domos
Cerro Diablo
Electrum 3A 1 - 24
Electrum 4A 1 - 26
Electrum 5A 1 - 42
Electrum 6A 1 - 32
Electrum 7A 1 - 44
Electrum 8CC
Electrum 10 1-20
Electrum 11CC
Pedregoso I 1 - 30
Pedregoso VII 1 - 30
Honda 20 1 - 20
Diablo 1
Diablo 2
Diablo 3
Diablo 4
Diablo 5
Diablo 6
Diablo 7
Diablo 8
Diablo 9
Diablo 10
Diablo 11
Diablo 12
Diablo 13
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Southern Gold SpA
Southern Gold SpA
Southern Gold SpA
Southern Gold SpA
Southern Gold SpA
Southern Gold SpA
Southern Gold SpA
Southern Gold SpA
Equus Patagonia SpA
Equus Patagonia SpA
Equus Patagonia SpA
Type of Tenement
%
Interest
Mining Concession
100
100 Mining Concession1
100 Mining Concession1
100 Mining Concession1
100 Mining Concession1
100
100 Mining Concession1
100
Exploration2
Exploration2
Note 1 Mining Concession3
Note 1 Mining Concession3
Note 1 Mining Concession3
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
Minera Equus Chile Limitada
100
100
100
100
100
100
100
100
100
100
100
100
100
Exploration
Exploration
Exploration
Exploration
Exploration
Exploration
Exploration
Exploration
Exploration
Exploration
Exploration
Exploration
Exploration
Notes to Table 2:
1 Converted from exploration to mining claim
2 Renewed Exploration claims
3The Company incorporated effective 12 August 2019 a joint venture company titled Equus Patagonia SpA with Patagonia Gold SCM, the Chilean subsidiary of Patagonia Gold
Corp (TSXV: PGDC). This entity incorporates the Company ́s 75% interest in 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.
79 | P a g e
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