EQUUS MINING LIMITED
and its controlled entities
A.B.N. 44 065 212 679
ANNUAL REPORT
FOR THE FINANCIAL YEAR ENDED
30 JUNE 2024
Equus Mining Limited
Corporate Directory
Directors
John Braham
Non-Executive Chairman
Damien Koerber
Non-Executive Director
David Coupland
Non-Executive Director
Company Secretary
Marcelo Mora
Principal Place of Business
and Registered Office
Level 2
66 Hunter Street
Sydney NSW 2000
Australia
Telephone:
(61 2) 9300 3366
Facsimile:
(61 2) 9221 6333
Email address:
info@equusmining.com
Web site:
www.equusmining.com
Share Registry
Automic Pty Ltd
Level 5, 126 Phillip Street
Sydney NSW 2000
Telephone:
1 300 288 664 (within Australia)
Facsimile:
(61 2) 9698 5414 (outside Australia)
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
Page
Review of Operations
1
Corporate Governance Statement
2
Directors’ Report
3
Lead Auditor’s Independence Declaration
15
Consolidated Statement of Profit or Loss and Other Comprehensive Income
16
Consolidated Statement of Financial Position
17
Consolidated Statement of Changes in Equity
18
Consolidated Statement of Cash Flows
19
Notes to the Consolidated Financial Statements
20
Consolidated Entity Disclosure Statement
46
Directors’ Declaration
47
Independent Auditor’s Report
48
Additional Stock Exchange Information
53
Equus Mining Limited
Review of Operations
For the Year Ended 30 June 2024
1 | P a g e
REVIEW OF OPERATIONS
During the year ended 30 June 2024, the significant changes in the state of affairs of the Group were as follows:
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 of the Deed and subsequent extensions agreed to, the lenders agreed not to
exercise their power to call upon the loan until 31 January 2024, or earlier in the event the sale of the Group’s Chilean
operations is finalised or does not proceed. 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 Andean Silver Limited (‘Andean’) (formerly Mitre Mining
Corporation Limited) under which Andean would acquire all the Chilean assets and undertakings of Equus Mining Limited
(‘Equus’).
Shareholder approval was received for the sale on 29 January and 30 January 2024 respectively for Andean and Equus.
On 21 February 2024, the transaction was completed, and under the terms of the agreement, Andean acquired 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, Andean acquired 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.
Total consideration for the sale was A$5.0 million comprised of:
• A$3.5 million cash;
• A$0.5 million of Andean shares; and
• A$1.0 million deferred consideration in cash or shares (at Andean’s discretion) subject to minimum resource and grade
milestones at Cerro Bayo within 5 years.
Under the Deed, Tribeca was 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 was entitled to cash
consideration of $500,000 as a result of the sale, of which $200,000 was received in October 2023. A further $270,000 was
received in February 2024 and $30,000 was received in June 2024.
On 31 December 2023, the Group failed to pay accrued interest for the quarter ended 31 December 2023. The lenders Tribeca
and its affiliated entities did not impose any additional penalties, restrictions, or conditions on the Group.
Subsequent to year-end, on 1 October 2024 the Company amended the sale and purchase agreement executed with Andean
in 2023. Andean and Equus agreed to amend the deferred consideration of $1,000,000 in cash or shares at the election of
Andean upon the milestone being met. Under the amended agreement the deferred consideration was reduced to $750,000
and Andean paid the amount in cash on 4 October 2024, notwithstanding that the milestone had not been achieved at that
time.
Since the completion of the assets sale in February 2024, the Company has actively reviewed investment opportunities for
Equus Mining Limited. With the injection of the $750,000, the Company is now well positioned in the search for a new venture.
Yours sincerely
John Braham
Non-Executive Chairman
Dated this 13th day of December 2024.
Equus Mining Limited
Corporate Governance Statement
For the Year Ended 30 June 2024
2 | P a g e
CORPORATE GOVERNANCE STATEMENT
The Board is committed to maintaining the highest standards of Corporate Governance. Corporate Governance is about having
a set of core values and behaviours that underpin the Company's activities and ensure transparency, fair dealing and protection
of the interests of stakeholders. The Company has reviewed its corporate governance practices against the Corporate
Governance Principles and Recommendations (4th edition) published by the ASX Corporate Governance Council.
The 2024 corporate governance statement is dated 13 December 2024 and reflects the corporate governance practices
throughout the 2024 financial year. The board approved the 2024 corporate governance on 13 December 2024. A description
of the Company’s current corporate governance practices is set out in the Company’s corporate governance statement, which
can be viewed at http://www.equusmining.com/corporate-governance/.
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2024
3 | P a g e
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 2024 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.
John Richard Braham, Non-Executive Chairman (from 21 February 2024)
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 was a Director of public listed company Castile Resources Limited from 29 November
2019 to 1 January 2024.
John has experience as both an executive and non executive director of junior mining companies, most recently as non
executive director of Castile Mining Ltd and Managing Director of Equus Mining Limited.
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).
He was a director of Odin Metals Ltd until September 2022. He has not served as a director of any other listed company during
the past two years.
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2024
4 | P a g e
Damien John Koerber, Non-Executive Director
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) and more recently, as COO
for Andean Silver Limited.
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.
Mark Hamish Lochtenberg, Non-Executive Chairman
Director since 10 October 2014 – resigned 21 February 2024.
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.
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2024
5 | P a g e
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.
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
Board Meetings
Held
Attended
Mark H. Lochtenberg
4
4
John R. Braham
4
4
Damien J. Koerber
4
4
David (Ted) H. Coupland
4
4
Ryan K. Austerberry
3
3
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2024
6 | P a g e
DIRECTORS’ INTERESTS
At the date of this report, the beneficial interests of each director of the Company in the issued share capital of the Company
and options, each exercisable to acquire one fully paid ordinary share of the Company are:
Director
Fully Paid
Ordinary
Shares
Options over
ordinary shares
Option Terms
(Exercise Price and Term)
John R. Braham
1,138,953
333,333
$0.54 at any time up to 25 November 2025
Damien J. Koerber
2,173,370
83,333
$0.54 at any time up to 25 November 2025
David (Ted) H. Coupland
1,044,684
-
During the year ended 30 June 2024, no options were granted as compensation to directors of the Company (2023: nil).
During the year ended 30 June 2024, 666,666 unlisted options granted to directors of the Company expired unexercised
(2023: 333,333).
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.
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
416,666(1)
-
$0.54
25 November 2025
-
22,863,081
$0.15
14 October 2025
-
25,000,000 (2)
$0.05
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 2024, no ordinary shares were issued as a result of the exercise of options (2023:
nil). Since the end of the financial year, the Company has not issued ordinary shares as a result of the exercise of options.
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2024
7 | P a g e
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 2024 is outlined below.
The Companies referred above comprise the “Consolidated Entity” for the Financial Statements included in this report.
PRINCIPAL ACTIVITIES
During November 2023, the Company executed a binding agreement with Andean Silver Limited (former Mitre Mining
Corporation Limited) for the sale of Equus Chilean Assets. On 21 February 2024 the transaction completed and Equus no
longer holds an interest in any projects and the Company will provide updates as required regarding future investment
opportunities.
FINANCIAL RESULTS
The consolidated loss after income tax attributable to members of the Company for the year was $3,805,256 (2023:
$25,223,443 loss).
REVIEW OF OPERATIONS
A review of the Group's operations for the year ended 30 June 2024 is set out on pages 1 of this Annual Report.
DIVIDENDS
The Directors do not recommend the payment of a dividend in respect of the financial year ended 30 June 2024. No dividends
have been paid or declared during the financial year (2023 - $nil).
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2024
8 | P a g e
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 2024 were as follows:
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 of the Deed, the lenders have agreed not to exercise
their power to call upon the loan until 31 January 2024, or earlier in the event the sale of the Group’s Chilean
operations is finalised or does not proceed. 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 Andean Silver Limited (former Mitre Mining
Corporation Limited) (“Andean”) under which Andean acquired all the Chilean assets and undertakings of Equus.
Under the terms of the agreement, Andean acquired 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, Andean acquired all the assets and undertakings of Equus’ subsidiaries,
Southern Gold SpA and Equus Patagonia SpA, which together owned all the assets comprising the Los Domos
exploration project. The transaction completed on 21 February 2024.
Total consideration for the sale was A$5.0 million comprised of:
A$3.5 million cash;
A$0.5 million of Andean shares; and
A$1.0 million deferred consideration in cash or shares (at Andean’s discretion) subject to minimum resource
and grade milestones at Cerro Bayo within 5 years.
Under the Deed, Tribeca was 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 received a cash consideration of $500,000 as a result of the sale, of which $200,000 was received in October
2023. A further $270,000 was received in February 2024 and $30,000 was received during June 2024.
On 31 December 2023, the Group failed to pay accrued interest for the quarter ended 31 December 2023. The
lenders Tribeca and its affiliated entities did not impose any additional penalties, restrictions, or conditions on the
Group.
On 1 October 2024, the Company amended the sale and purchase agreement executed with Andean in 2023.
Andean and Equus agreed to amend the deferred consideration of $1,000,000 in cash or shares at the election of
Andean upon the milestone being met. Under the amended agreement the deferred consideration was reduced to
$750,000 and Andean paid the amount in cash on 4 October 2024, notwithstanding that the milestone had not been
achieved at that time.
Other than the matters detailed above, there were no other significant changes in the affairs of the Company during the year.
ENVIRONMENTAL REGULATIONS
There were no environmental incidents from 1 July 2023 until 21 February 2024 when the Chilean assets were sold to Andean
Silver Limited.
LIKELY DEVELOPMENTS
Following the sale of the Chilean assets in February 2024, Equus continues 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.
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2024
9 | P a g e
EVENTS SUBSEQUENT TO BALANCE DATE
On 1 October 2024, the Company amended the sale and purchase agreement executed with Andean Silver Limited (formerly
Mitre Mining Corporation Limited) last year. Andean and Equus agreed to amend the deferred consideration amount to
$750,000.00 and Andean paid the amount in cash on 4 October 2024 notwithstanding that the Milestone had not been
achieved at that time.
In December 2024 the Group received confirmation from its largest creditor that invoices outstanding at 30 June 2024
amounting to $220,000 would not require repayment.
No other matters or circumstances have arisen since the end of the financial year which significantly affected or may
significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future
financial years.
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 and Damien Koerber are paid through the Company's payroll. David Coupland is paid by way of an arrangement
with a related party.
There were no remuneration consultants used by the Company during the year ended 30 June 2024, 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.
2024
$
2023
$
2022
$
2021
$
2020
$
Net loss attributable to equity holders of the parent
3,805,256
25,223,443
3,981,385
1,716,498
1,728,160
Dividends paid
-
-
-
-
-
Change in share price
-
(0.05)
(0.12)
-
-
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.
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2024
10 | P a g e
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
Superannuation
Other Short
Term Benefit(2)
Total
Year
$
$
$
$
Directors
John Braham
2024
117,250
12,897
10,384
140,531
2023
325,000
34,125
22,799
381,924
Damien Koerber
2024
92,500
10,175
8,171
110,846
2023
250,000
26,250
17,538
293,788
Mark Lochtenberg
2024
-
-
-
-
2023
75,000
7,875
-
82,875
Robert Yeates
2024
-
-
-
-
2023
38,159
-
-
38,159
David (Ted) Coupland (1)
2024
30,000
-
30,000
2023(1)
92,450
-
-
92,450
Ryan K. Austerberry
2024
-
-
-
-
2023
50,000
5,250
-
55,250
Total all directors
2024
239,750
23,072
18,555
281,377
2023
830,609
73,500
40,337
944,446
(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
During the financial year ended 30 June 2024, John Braham and Damien Koerber were considered Non-Executive Directors.
Their remuneration for the year ended 30 June 2024 comprised of fixed remuneration plus 11% statutory superannuation paid
through the Company’s payroll.
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2024
11 | P a g e
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. No options were granted during the current or prior year to key management personnel. Details of options
granted as compensation to each key management personnel as at reporting date is as follows:
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
29 November 2019
(1) 333,333
$0.24
$80,000
$0.70 at any time to 13 November 2024
John Braham
25 November 2020
(2) 333,333
$0.16
$53,333
$0.50 at any time to 25 November 2024
John Braham
25 November 2020
(2) 333,333
$0.18
$60,000
$0.54 at any time to 25 November 2025
Damien Koerber 25 November 2020
(2) 83,333
$0.16
$13,333
$0.50 at any time to 25 November 2024
Damien Koerber 25 November 2020
(2) 83,333
$0.18
$15,000
$0.54 at any time to 25 November 2025
The fair value of the (1) 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 (2) 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 2024 666,666 unlisted options on a post consolidated basis lapsed (2023: 333,333 on a post
consolidated basis) and no options held by key management personnel were exercised during the 2024 or 2023 financial
years.
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 2024 and 2023 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 2024 and
2023 financial years.
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2024
12 | P a g e
REMUNERATION REPORT - Audited (Con’t)
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.
The number of options that had vested as at 30 June 2024 is 1,166,665 (2023 – 1,958,331). No options were granted as
remuneration during the year (2023: nil). No options were granted as compensation subsequent to year end.
Analysis of movements in options granted as compensation - Audited
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 2024 - Audited
Directors
Held at
1 July 2023
Granted/
Purchased
Exercised /
Sold
Expired
Held at
30 June 2024
Vested and
exercisable
at 30 June 2024
John Braham
1,583,332
-
-
583,333
999,999
999,999
Damien Koerber
249,999
-
-
83,333
166,666
166,666
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 2024 and 2023 financial years.
Options granted
Director
Number
Date
% vested
at year
end
Balance at
1 July 2023
Expired
during the
year
Balance at
30 June
2024
Financial year
in which grant
vests
John Braham
500,000 14 October 2019
100%
250,000
250,000
-
30 June 2020
John Braham
999,999 29 November 2019
100%
333,333
-
333,333
30 June 2020
John Braham
999,999 25 November 2020
100%
999,999
333,333
666,666
30 June 2021
Damien Koerber
249,999 25 November 2020
100%
249,999
83,333
166,666
30 June 2021
Director
Value of options
granted in the year
Value of options
exercised in the year
Value of options lapsed
in the year
John Braham
-
-
(105,667)
Damien Koerber
-
-
(11,667)
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2024
13 | P a g e
REMUNERATION REPORT – Audited (Con’t)
The Amount of Directors fees and Remuneration Outstanding at each reporting date is outlined below.
Outstanding director's fees and superannuation
Director
Year
Fees
$
Superannuation
$
Mark Lochtenberg
2024
-
-
2023
25,000
2,625
John Braham
2024
12,000
1,320
2023
54,167
5,688
Damien Koerber
2024
10,000
1,100
2023
41,667
4,375
Robert Yeates
2024
-
-
2023
11,962
-
David (Ted) Coupland
2024
15,000
-
2023
16,667
-
Ryan Austerberry
2024
-
-
2023
16,667
1,750
Other transactions with key management personnel - Audited
There were no other transactions with key management personnel or their related parties during 2024.
At 30 June 2024, the amount outstanding for salaries, superannuation and directors fees were $39,420 including GST (2023:
$180,568).
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 - 2024
Key management
personnel
Held at
30 June 2023
Purchases
Sales
Other
Held at
30 June 2024
Mark Lochtenberg(1)
14,987,431
12,500,000
-
(27,487,431)
-
John Braham
1,138,953
-
-
-
1,138,953
Damien Koerber
2,173,370
-
-
-
2,173,370
David (Ted) Coupland
1,044,684
-
-
-
1,044,684
1 Mark Lochtenberg held 27,487,431 ordinary fully paid shares at the time he resigned as director
Non-Executive Directors - Audited
During the financial year ended 30 June 2024, the following Directors were considered Non-Executive Directors:
John Braham;
Damien Koerber
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.
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2024
14 | P a g e
NON-AUDIT SERVICES
During the year ended 30 June 2024 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.
2024
2023
$
$
Services other than audit and review of financial statements:
Other services
-
-
Audit and review of financial statements
140,664
141,875
140,664
141,875
AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration is set out on page 15 and forms part of the Directors' Report for the financial year
ended 30 June 2024.
Signed at Sydney this 13th day of December 2024
in accordance with a resolution of the Board of Directors:
John R. Braham
Non-Executive Chairman
15
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.
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 2024 there have been:
i.
no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
ii.
no contraventions of any applicable code of professional conduct in relation to the audit
KPMG
Adam Twemlow
Partner
Brisbane
13 December 2024
KPM_INI_01
PAR_SIG_01
PAR_NAM_01
PAR_POS_01
PAR_DAT_01
PAR_CIT_01
Equus Mining Limited
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 30 June 2024
16 | P a g e
Notes
2024
2023*
$
$
CONTINUING OPERATIONS
Expenses
Employee, directors and consultants costs
(68,586)
(760,491)
Administration expenses
(139,612)
(321,666)
Other expenses
4
(377,426)
(733,879)
Result from operating activties
(585,624)
(1,816,036)
Finance income
5
5,971
10,476
Finance costs
5
(1,212,367)
(1,340,377)
Loss before income tax
(1,792,020)
(3,145,937)
Income tax benefit/(expense)
6
-
-
Loss from continuing operations
(1,792,020)
(3,145,937)
DISCONTINUED OPERATIONS
Loss from discontinued operation (net of tax)
29
(2,011,850)
(22,092,744)
Loss for the year
(3,803,870)
(25,238,681)
Other comprehensive income for the year
Items that may be classified subsequently to profit or loss:
Exchange differences on translation of foreign operations
18
(2,142,770)
1,192,333
Transfer of foreign currency translation to loss on disposal of subsidiaries in profit
or loss
29
3,308,934
-
1,166,164
1,192,333
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
5
-
9,148
Total other comprehensive gain/(loss)
1,166,164
1,201,481
Total comprehensive loss for the year
(2,637,706)
(24,037,200)
Loss for the year attributable to:
Equity holders of the Company
(3,805,256)
(25,223,443)
Non-controlling interest
1,386
(15,238)
(3,803,870)
(25,238,681)
Total comprehensive loss attributable to:
Equity holders of the Company
(2,639,092)
(24,021,962)
Non-controlling interest
1,386
(15,238)
(2,637,706)
(24,037,200)
Earnings per share
Basic and diluted loss per share (cents)
19
(1.52)
(13.10)
Earnings per share – continuing operations
Basic and diluted loss per share (cents)
(0.71)
(1.63)
*The comparative information has been re-presented due to a discontinued operation. Refer Note 29
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying
notes.
Equus Mining Limited
Consolidated Statement of Financial Position
As at 30 June 2024
17 | P a g e
Notes
2024
2023
$
$
Current Assets
Cash and cash equivalents
7
38,796
235,148
Receivables
8
9,796
1,009,615
Prepayments
9
-
39,333
Total Current Assets
48,592
1,284,096
Non-Current Assets
Other receivables
8
-
9,190,240
Other financial assets
10
-
9,953
Property plant and equipment
11
-
270,314
Exploration and evaluation expenditure
12
-
13,738,462
Total Non-Current Assets
-
23,208,969
Total Assets
48,592
24,493,065
Current Liabilities
Payables
14
340,068
2,458,213
Lease liability
13
-
178,723
Borrowings
15
-
3,318,251
Provision for rehabilitation
16
-
4,593,411
Total Current Liabilities
340,068
10,548,598
Non-Current Liability
Provision for rehabilitation
16
-
13,780,233
Total Non-Current Liabilities
-
13,780,233
Total Liabilities
340,068
24,328,831
Net (Liabilities)/Assets
(291,476)
164,234
Equity
Share capital
17
144,280,786
142,930,786
Reserves
18
2,456,853
788,611
Accumulated losses
(147,029,115) (143,541,160)
Parent entity interest
(291,476)
178,237
Non-controlling interest
-
(14,003)
Total Equity
(291,476)
164,234
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
Equus Mining Limited
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2024
18 | P a g e
Note
Share
Capital
Accumulated
Losses
Option
Premium
reserve
Equity Based
reserve
Fair Value
reserve
Foreign Currency
Translation
Reserve
Total
Non-
controlling
Interest
Total
Equity
$
$
$
$
$
$
$
$
$
Balance at 1 July 2022
140,177,143 (118,385,050)
-
618,918
388,066
(2,358,497)
20,440,580
1,235
20,441,815
Profit/(Loss) for the year
-
(25,223,443)
-
-
-
-
(25,223,443)
(15,238)
(25,238,681)
Total other comprehensive income / (loss)
-
-
-
-
9,148
1,192,333
1,201,481
-
1,201,481
Total comprehensive profit/(loss) for the year
-
(25,223,443)
-
-
9,148
1,192,333
(24,021,962)
(15,238)
(24,037,200)
Transactions with owners recorded directly in
equity
Ordinary shares issued
17
2,767,918
-
-
-
-
-
2,767,918
-
2,767,918
Transaction costs on issue of shares
17
(14,275)
-
-
-
-
-
(14,275)
-
(14,275)
Issue of options
-
-
1,005,976
-
-
-
1,005,976
-
1,005,976
Transfer of expired options
-
67,333
-
(67,333)
-
-
-
-
-
Balance at 30 June 2023
142,930,786 (143,541,160)
1,005,976
551,585
397,214
(1,166,164)
178,237
(14,003)
164,234
Balance at 1 July 2023
142,930,786 (143,541,160)
1,005,976
551,585
397,214
(1,166,164)
178,237
(14,003)
164,234
Profit/(Loss) for the year
-
(3,805,256)
-
-
-
-
(3,805,256)
1,386
(3,803,870)
Total other comprehensive income / (loss)
-
-
-
-
-
1,166,164
1,166,164
-
1,166,164
Total comprehensive profit/(loss) for the year
-
(3,805,256)
-
-
-
1,166,164
(2,639,092)
1,386
(2,637,706)
Transactions with owners recorded directly in
equity
Ordinary shares issued
17
1,350,000
-
-
-
-
-
1,350,000
-
1,350,000
Options issued
-
-
831,996
-
-
-
831,996
-
831,996
Transfer of expired options
-
329,918
-
(329,918)
-
-
-
-
-
Changes in Ownership interest in subsidiaries
Acquisition of non-controlling interest
-
(12,617)
-
-
-
-
(12,617)
12,617
-
Balance at 30 June 2024
144,280,786 (147,029,115)
1,837,972
221,667
397,214
-
(291,476)
-
(291,476)
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
Equus Mining Limited
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2024
19 | P a g e
Notes
2024
2023
$
$
Cash flows from operating activities
Cash receipts in the course of operations
809,285
15,892,242
Cash payments in the course of operations
(2,713,102)
(20,461,911)
Net cash used in operations
(1,903,817)
(4,569,669)
Interest received
6,110
10,967
Interest paid
(236,227)
(240,119)
Net cash used in operating activities
20
(2,133,934)
(4,798,821)
Cash flows from investing activities
Payments for exploration and evaluation expenditure
-
(3,025,056)
Payment for plant and equipment
-
(33,687)
Disposal of discontinued operations, net of cash disposed
29
3,357,494
-
Net cash provided by/(used in) investing activities
3,357,494
(3,058,743)
Cash flows from financing activities
Proceeds from share issues
800,000
2,445,500
Proceeds for shares yet to be issued
-
500,000
Transaction costs on share issue
-
(14,275)
Proceeds from operating advances/loan
874,069
-
Proceeds from Borrowings
-
3,223,969
Lease payments
(93,981)
(210,925)
Repayment of borrowings
(3,000,000)
-
Net cash (used in)/provided by financing activities
(1,419,912)
5,944,269
Net (decrease) in cash held
(196,352)
(1,913,295)
Cash and cash equivalents at 1 July
235,148
2,148,443
Cash and cash equivalents at 30 June
7
38,796
235,148
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
20 | P a g e
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 2024 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 until recently 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 13 December 2024.
(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 $3,805,256 for the year ended 30 June 2024 and
has accumulated losses of $147,029,115 as at 30 June 2024. The Group used $2,133,934 of cash in operations ended 30
June 2024 and had cash on hand of $38,796 and net current liabilities of $291,476 as at 30 June 2024.
Subsequent to the end of the financial year, on 1 October 2024 the Company executed an Amendment to the Cerro Bayo
Share Sale Agreement with Andean Silver Limited (Andean, formerly Mitre Mining Corporation Limited). Under the terms of
the Amendment, Andean and Equus agreed to amend the Deferred Consideration Amount from $1,000,000 to $750,000 to be
received in cash on or before 15 October 2024 notwithstanding that the resource milestones may not have been achieved by
that date. The Company received the cash consideration of $750,000 on 4 October 2024 and paid outstanding creditors at 30
June 2024 with the exception of $220,000 which was forgiven subsequent to year-end (refer note 14). As at 30 November
2024, the Group had cash balances of $577,973 and total creditors of $30,912 (excluding amount subsequently forgiven).
The securities of the Company were suspended from the ASX on16 March 2023 and remain suspended at the date of signing
of these financial statements. If the Company has not executed its plans for trading in its securities to resume to the ASX’s
satisfaction by 16 March 2025 the Company will be removed from the ASX. In the event that the Company’s securities are
removed from the ASX the ability for the Group to secure future financing and investment opportunities will be significantly
adversely impacted.
The Directors have prepared cash flow projections for the period to 31 December 2025 that support the ability of the Group to
continue as a going concern. The ongoing viability of the Group is dependent upon the Directors securing future financing and
investment opportunities for the Group in order to sustain its operations long-term. Accordingly, a material uncertainty exists
that may cast significant doubt on the Group’s ability to continue as a going concern.
The ability to secure such investment opportunities is critically dependent on obtaining the requisite funding to do so whilst
significantly reducing operating expenditure in line with available funding. However, such financing is inherently uncertain until
secured.
In the event that this does 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 at the
amounts stated in the consolidated annual financial report.
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
21 | P a g e
2.
BASIS OF PREPARATION (Cont.)
(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).
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
22 | P a g e
3.
MATERIAL 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)
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.
(e)
Plant and equipment
Plant and equipment are recorded at cost less accumulated depreciation, depletion and impairment charges.
Where an item of plant and equipment comprises major components with different useful lives, the components are accounted
for as separate items of plant and equipment.
Expenditures incurred to replace a component of an item of plant and equipment that is accounted for separately, including
major inspection and overhaul expenditures, are capitalised. Any remaining book value associated with the component being
replaced is derecognised upon its replacement. Directly attributable costs incurred for major capital projects and site
preparation are capitalised until the asset is brought to a working condition for its intended use. These costs include dismantling
and site restoration costs to the extent these are recognized as a provision.
(f)
Depreciation
Management reviews the estimated useful lives, residual values and depreciation methods of the Company’s property, plant
and equipment at the end of each reporting period and when events and circumstances indicate that such a review should be
made. Changes to estimated useful lives, residual values or depreciation methods resulting from such review are accounted
for prospectively.
Plant and equipment cost is depreciated, using the units of production method over their estimated useful lives. Assets under
construction are not depreciated until their construction is substantially complete and they are available for their intended use.
In the case of projects involving the development of mineral properties, this is when the property has achieved commercial
production.
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
23 | P a g e
3.
MATERIAL ACCOUNTING POLICIES (Cont.)
(g)
Exploration and evaluation expenditure
Exploration and evaluation expenditure, including the costs of acquiring licences, are capitalised as intangible exploration and
evaluation assets on an area of interest basis, less any impairment losses. Costs incurred before the Group has obtained the
legal rights to explore an area are recognised in profit or loss.
Exploration and evaluation assets are only recognised if the rights of the area of interest are current and either:
the expenditures are expected to be recouped through successful development and exploitation of the area of
interest; or
activities in the area of interest have not at the reporting date, reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable reserves and active and significant operations
in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility and
commercial viability and facts and circumstances suggest that the carrying amount exceeds the recoverable amount. For the
purposes of impairment testing, exploration and evaluation assets are allocated to cash-generating units to which the
exploration activity relates. The cash generating unit shall not be larger than the area of interest.
Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are
demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for impairment and then
reclassified to developing mine properties.
(h)
Financial instruments
Non-derivative financial assets
Recognition and initial measurement
The Group initially recognises trade receivables on the date that they are originated. All other financial assets are recognised
initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers
the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and
rewards of ownership of the financial asset are transferred. Any interest in such transferred financial assets that is created or
retained by the Group is recognised as a separate asset or liability.
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only
when, the Group has a legal right to offset the amounts and intends either to settle them on a net basis or to realise the asset
and settle the liability simultaneously.
Classification and subsequent measurement
On initial recognition, a financial asset is classified as measured at:
Amortised cost;
Fair value through other comprehensive income – equity investment; or
Fair value through profit or loss.
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for
managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period
following the change in the business model.
A financial asset is measured at amortised cost if it meets both the following conditions and is not designated as fair value
through profit or loss:
It is held within a business model whose objective is to hold assets to collect contractual cash flows; and
Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent
changes in the investment’s fair value through OCI. This election is made on an investment-by-investment basis.
All financial assets not classified as measured at amortised cost or fair value through other comprehensive income as
described above are measured at fair value through profit or loss. This includes all derivative financial assets. On initial
recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at
amortised cost or at fair value through other comprehensive income as at fair value through profit or loss if doing so
eliminates or significantly reduces an accounting mismatch that would otherwise arise. The Group has trade receivables with
embedded derivatives for provisional pricing. These receivables are generally held to collect but do not meet the SPPI
criteria and as a result must be held at FVTPL.
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
24 | P a g e
3.
MATERIAL ACCOUNTING POLICIES (Cont.)
Non-derivative financial liabilities
Financial liabilities are measured at amortised cost.
The Group initially recognises debt securities issued and subordinated liabilities on the date that they are originated. All other
financial liabilities are recognised initially on the trade date, which is the date that the Group becomes a party to the contractual
provisions of the instrument.
The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expire.
Other financial liabilities comprise loans and borrowings and trade and other payables.
(i) Basis of consolidation
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The
financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences
until the date that control ceases.
Non-controlling interests
NCI are measured initially at their proportionate share of the acquiree’s identifiable net assets at the date of acquisition.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.
Loss of control
When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related
NCI and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the
former subsidiary is measured at fair value when control is lost.
Transactions eliminated on consolidation
Intra-group balances and any unrealised gains and losses or income and expenses arising from intragroup transactions are
eliminated in preparing the consolidated financial statements.
(j) Share Capital
Ordinary Shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised
as a deduction from equity, net of any tax effects.
(k) Trade and other receivables and payables
Trade receivables and payables are carried at amortised cost. For receivables and payables with a remaining life of less than
one year, the notional amount is deemed to reflect the fair value. All other receivables and payables are discounted to
determine the fair value.
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
25 | P a g e
3.
MATERIAL ACCOUNTING POLICIES (Cont.)
(l) Impairment
Non-derivative financial assets
The Group recognises loss allowances to an amount equal to lifetime expected credit losses (ECLs), except for the following,
which are measured at 12-month ECLs:
-
Debt securities that are determined to have a low credit risk at the reporting date; and
-
Other debt securities and bank balances for which credit risk (i.e the risk of default occurring over the expected life
of the financial instrument) has not increased significantly since initial recognition.
Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECLs.
Measurement of ECLs
ECLs are a probability weighted estimate of credit losses. Credit losses are measured as the present value of all cash
shortfalls. ECL’s are discounted at the effective interest rate of the financial asset.
Non-financial assets
An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit (CGU) exceeds its
recoverable amount. The recoverable amount of an asset or CGU is the greater of their fair value less costs to sell and value
in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. For
impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing
use that are largely independent of the cash inflows of other assets or CGUs. Impairment losses are recognised in profit or
loss.
Reversals of impairment
An impairment loss in respect of a financial asset carried at amortised cost is reversed if the subsequent increase in
recoverable amount can be related objectively to an event occurring after the impairment loss was recognised.
In respect of non-financial assets, an impairment loss is reversed if there has been a conclusive change in the estimates used
to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does
not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss
had been recognised.
(m) Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three months or less.
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
26 | P a g e
3.
MATERIAL ACCOUNTING POLICIES (Cont.)
(n) Income tax
Current tax and deferred tax is recognised in profit or loss except to the extent that it relates to a business combination or
items recognised directly in equity or in other comprehensive income.
Current tax
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or
substantially enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:
temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination
and that affects neither accounting nor taxable profit or loss;
temporary differences related to investments in subsidiaries to the extent that the Group is able to control the timing
of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; or
taxable temporary differences arising on the initial recognition of goodwill.
The measurement of deferred tax reflects the tax consequences that would follow the manner in which the Group expects, at
the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using
tax rates enacted or substantively enacted at the reporting date. Deferred tax assets and liabilities are offset if there is a legally
enforceable right to offset current tax liabilities and assets and they relate to taxes levied by the same tax authority on the
same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their
tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences to the extent that it
is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
(o) Foreign 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.
(p) Foreign currency transactions
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the
exchange rate at the reporting date. The foreign currency gain or loss on monetary items is the difference between amortised
cost in the functional currency at the beginning of the period, adjusted for effective interest and payments during the period,
and the amortised cost in foreign currency translated at the exchange rate at the end of the reporting period.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the
functional currency at the exchange rate at the date that the fair value was determined. Foreign currency differences arising
on retranslation are recognised in profit or loss, except for differences arising on the retranslation of investments in equity
securities designated as FVOCI, a financial liability designated as a hedge of the net investment in a foreign operation or
qualifying cash flow hedges, which are recognised in other comprehensive income. Non-monetary items that are measured in
terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
27 | P a g e
3.
MATERIAL ACCOUNTING POLICIES (Cont.)
(q) Segment reporting
Determination and presentation of operating segments
The Group determines and presents operating segments based on the information that is provided to 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 Non-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 chief operating decision maker include items directly attributable to a segment as
well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the
Company's headquarters), head office expenses, and income tax assets and liabilities.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, and intangible
assets other than goodwill.
(r) Provisions
Provisions are recorded when a present legal or constructive obligation exists as a result of past events, where it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation, and when a reliable estimate
of the amount of the obligation can be made.
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation
estimated at the end of each reporting period, taking into account the risks and uncertainties surrounding the obligation. Where
a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present
value of those cash flows. When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, the receivable is recognized as an asset.
(s) Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the Australian Taxation Office. In these circumstances, the GST is recognised as part of the cost of
acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown
inclusive of GST.
Cash flows are presented in the Consolidated Statement of Cash Flows on a gross basis, except for the GST component of
investing and financing activities, which are disclosed as operating cash flows.
(t) Employee benefits
Short-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected
to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by
the employee and the obligation can be estimated reliably.
Share-based payment transactions
The grant-date fair value of share-based payment awards granted is recognised as an employee and consultants expense,
with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the awards.
The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-
market vesting conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the
number of awards that meet the related service and non-market performance conditions at the vesting date. For share-based
payment awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to reflect such
conditions and there is no true-up for differences between expected and actual outcomes.
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
28 | P a g e
3.
MATERIAL ACCOUNTING POLICIES (Cont.)
(u) Determination of fair values
A number of the Group's accounting policies and disclosures require the determination of fair value for both financial and non-
financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the
following methods. When applicable, further information about the assumptions made in determining fair values is disclosed
in the notes specific to that asset or liability.
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.
(v) Lease accounting
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right
to control the use of an identified asset for a period of time in exchange for consideration. The Group applies a single
measurement recognition and approach for all leases, except for short-term leases and leases of low-value assets. The Group
recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is
available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and
adjusted for any remeasurement of lease liabilities.
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease
payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments)
less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be
paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably
certain to be exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects the Group’s
exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as
expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the
payment occurs.
In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement
date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of
lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the
carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease
payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease
payments) or a change in the assessment of an option to purchase the underlying asset.
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
29 | P a g e
4.
LOSS FROM OPERATING ACTIVITIES
Other expenses
2024
2023
$
$
Travel
22,594
118,564
ASIC and ASX fees
61,241
79,812
Accounting and secretarial fees
16,900
54,550
Audit and review services – KPMG*
112,391
141,875
Legal fees
85,709
75,123
Insurance
31,130
81,733
Share registry
37,508
24,489
Other
9,953
157,733
377,426
733,879
*In addition to the above, during the year the Group incurred expenditure for audit and review services performed by KPMG
Chile of $28,274 which has been classified under ‘loss from discontinued operation (net of tax)’.
5. FINANCE INCOME AND FINANCE COSTS
Recognised in profit and loss
Interest income on cash deposits
5,971
10,476
Interest expense
(236,227)
(240,119)
Share-based payments*
(881,996)
-
Loss on disposal of financial liability
(94,144)
-
Imputed interest on borrowings
-
(1,100,258)
Net finance income/(costs) recognised in profit or loss
(1,206,396)
(1,329,901)
*During the year ended 30 June 2024 the Group issued shares to the value of $50,000 and unlisted options with a fair value
of $831,996 in relation to its debt facility with Tribeca. Refer to note 17.
Recognised in other comprehensive income
Net change in fair value of equity instruments at fair value
-
9,148
Finance cost recognised in other comprehensive income, net of tax
-
9,148
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
30 | P a g e
2024
2023
$
$
6. INCOME TAX EXPENSE
Current tax
-
-
Deferred tax
-
-
-
-
Numerical reconciliation of income tax expense to prima facie tax payable:
Loss before tax from continuing operations
1,792,020
3,145,937
Prima facie income tax benefit at the Australian tax rate of 25%
(448,005)
(786,484)
(Increase)/decrease in income tax benefit due to:
- non-deductible expenses
257,213
-
- allowable deductions
(61,662)
(61,662)
- tax loss not recognised
252,454
848,146
Income tax expense/(benefit)
-
-
Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the following items:
Capital losses
6,457,698
5,574,426
Tax losses – Australian entities
5,472,098
4,462,282
Tax losses – Chilean entities
-
18,149,547
Net deductible temporary differences
79,163
128,030
Potential tax benefit not recognised
12,008,959
28,314,285
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.
2024
2023
$
$
7.
CASH AND CASH EQUIVALENTS
Cash at bank
38,796
235,148
38,796
235,148
8.
RECEIVABLES
Current
Goods and service tax and value added tax
9,796
687,160
Other
-
322,455
9,796
1,009,615
Non-current
Reimbursement for rehabilitation costs
-
9,186,822
Other
-
3,418
-
9,190,240
For the year ended 30 June 2024, the receivable for rehabilitation cost was disposed as part of the sale of Cerro Bayo SpA.
Refer to note 29.
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
31 | P a g e
2024
2023
$
$
9.
PREPAID EXPENSES
Prepaid expenses
-
39,333
-
39,333
10. INVESTMENTS
At 30 June 2024, the Group impaired 1,327,000 shares in Blox Inc., as Blox Inc, is no longer quoted in the US over the counter
traded company (OTC Market).
The Group recognises its financial assets at fair value and classifies its investments as follows:
2024
2023
Equity instruments at fair value through other comprehensive income
$
$
Equity securities – Investment in Blox Inc.
-
9,953
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.
2024
2023
Movement during the period
$
$
Opening balance
9,953
777
Impairment
(9,953)
Net change in fair value
-
9,176
Equity securities – at fair value through other comprehensive income
-
9,953
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
32 | P a g e
2024
2023
$
$
11. PLANT AND EQUIPMENT
Plant and office equipment – at cost
112,262
108,439
Additions
-
-
Accumulated depreciation
(62,368)
(39,681)
Disposal
(51,195)
-
Foreign currency exchange
1,301
3,375
-
72,133
Computers – at cost
49,600
14,276
Additions
-
34,821
Accumulated depreciation
(25,255)
(15,263)
Disposal
(24,960)
-
Foreign currency exchange
615
336
-
34,170
Motor Vehicles
441,058
327,672
Additions
160,980
101,834
Accumulated depreciation
(457,570)
(272,331)
Disposal
(147,565)
-
Foreign currency exchange
3,097
6,836
-
164,011
Total plant and equipment – net book value
-
270,314
Reconciliations of the carrying amounts for each class of plant and equipment are set out
below:
Plant and office equipment
Balance at 1 July
72,133
105,823
Additions
-
-
Depreciation
(22,239)
(37,065)
Disposal
(51,195)
Foreign currency exchange
1,301
3,375
Carrying amount at the end of the financial year
-
72,133
Computers
Balance at 1 July
34,170
13,483
Additions
-
34,821
Depreciation
(9,825)
(14,470)
Disposal
(24,960)
-
Foreign currency exchange
615
336
Carrying amount at the end of the financial year
-
34,170
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
33 | P a g e
11. PLANT AND EQUIPMENT (Cont.)
12. EXPLORATION AND EVALUATION EXPENDITURE
Los Domos gold-silver
-
-
Cerro Diablo gold-silver
-
-
Cerro Bayo
-
13,738,462
Net Book Value
-
13,738,462
Los Domos gold-silver
Carrying amount at the beginning of the year
-
4,374,815
Additions
-
16,997
Impairment
-
(4,777,044)
Foreign currency translation movement
-
385,232
Balance carried forward
-
-
Cerro Diablo gold-silver
Carrying amount at the beginning of the year
-
73,478
Additions
-
-
Impairment
-
(80,084)
Foreign currency translation movement
-
6,606
Balance carried forward
-
-
Cerro Bayo
Carrying amount at the beginning of the year
13,738,462
18,643,303
Additions
-
2,980,053
Impairment
-
(9,432,065)
Disposal
(11,593,568)
-
Foreign currency translation movement
(2,144,894)
1,547,171
Balance carried forward
-
13,738,462
Net book value
-
13,738,462
During the year the Group diposed its subsidiary of Cerro Bayo SpA.
2024
2023
$
$
Motor Vehicles
Balance at 1 July
164,011
245,754
Addition new lease
160,980
101,834
Depreciation
(180,523)
(190,413)
Disposal
(147,565)
Foreign currency exchange
3,097
6,836
Carrying amount at the end of the financial year
-
164,011
Total carrying amount at the end of the financial year
-
270,314
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
34 | P a g e
14. TRADE AND OTHER PAYABLES
Current liabilities
Trade creditors and accruals
333,582
2,410,387
Employee leave entitlements
6,486
47,826
340,068
2,458,213
Subsequent to year-end, the Group’s largest creditor confirmed to the Group that invoices outstanding at 30 June 2024
amounting to $220,000 would not require repayment.
15. BORROWINGS
Loan facility
3,318,251
3,305,482
Fair value adjustment
-
17,921
Interest
236,227
-
Loan repayment
(3,684,584)
-
Loss on disposal
94,144
Foreign currency translation movement
35,962
(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 was secured by firstranking general security. Tribeca received 22,863,081 options for
providing the loan facility. The fair value of the options were 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 in profit and loss in prior 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.
On 21 February 2024, and as part of the sale of the Group’s Chilean assets and undertakings, consideration amounting to
$3,000,000 cash and $500,000 shares in Mitre Mining Corporation Limited (now trading as Andean Silver Limited) was
transferred to Tribeca Investment Partners Pty Ltd, Tribeca Global Resources Credit Pty Ltd (‘Tribeca’), and certain non-
associated co-investors introduced by Tribeca. The cash and share consideration transferred was agreed to constitute full and
final consideration of all debts payable under the facility.
16. PROVISION FOR REHABILITATION
With the sale of the Chilean assets which included Compañía Minera Cerro Bayo SpA to Andean Silver Limited (formerly
Mitre Mining Corporation Limited) the rehabilitation liability was disposed.
2024
2023
$
$
13. LEASE LIABILITY
Current
-
178,723
-
178,723
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
35 | P a g e
2024
2023
Nº
$
Nº
$
17. ISSUED CAPITAL
(a)
Fully paid ordinary shares
Balance at beginning of financial year
216,637,925
142,930,786
174,076,954
140,177,143
Issued ordinary shares 2 September 2022 for $0.10
-
-
12,755,000
1,275,500
Issued ordinary shares 1 December 2022 – non cash 1
-
-
4,605,971
322,418
Issued ordinary shares 13 December 2022 for $0.10
-
-
2,700,000
270,000
Issued ordinary shares 6 April 2023 for $0.04
-
-
5,000,000
200,000
Issued ordinary shares 5 May 2023 for $0.04
-
-
17,500,000
700,000
Issued ordinary shares 14 July 2023 for $0.04
32,500,000
1,300,000
-
-
Issued ordinary shares 13 October 2023 for $0.04 2
3,937,008
50,000
-
-
Less cost of issue
-
-
-
(14,275)
253,074,933
144,280,786
216,637,925
142,930,786
1 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.
2 On 13 October 2023 the Company issued 3,937,008 shares to its lenders Tribeca as a one-off consent fee for the Deed of
Forbearance as a result of breaching the terms of its loan facility agreement, having failed to pay accrued interest on 30
September 2023.
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.
(b)
Share Options
During the year ended 30 June 2024, the company granted the following options:
The Company on 14 July 2023, the Company issued 25,000,000 unlisted options as part of consideration to Tribeca for
agreeing to defer the financial covenant requirements associated with the loan facility. The amended deed was executed
on 31 March 2023. The options have an exercise price of $0.05, vest immediately and expire on 28 June 2026.
The fair value of the options was $831,996. The Black-Scholes formula model inputs were the Company's share price of
$0.05 at the grant date, a volatility factor of 102.36% based on historical share price performance and a risk-free interest
rate of 3.20% based on the 3-year government bond rate.
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 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.
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.
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
36 | P a g e
17. ISSUED CAPITAL (Cont.)
(b) Share Options (Cont.)
During the year ended 30 June 2024 and 30 June 2023 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
Fair
Value
Tranche 1
416,666
$0.44
Immediately
25 November 2023
$0.14
$58,333
Tranche 2
416,666
$0.50
Immediately
25 November 2024
$0.16
$66,667
Tranche 3
416,666
$0.54
Immediately
25 November 2025
$0.18
$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.
Tranche 1 expired unexercised on 25 November 2023 at it had a fair value of $58,333.
The options issued to the MD and COO are not subject to vesting conditions, the total grant date fair value of $141,667
(30 June 2023: $200,000) and were recognised as an expense in the income statement for the year ended 30 June 2021
The following unlisted options were on issue as at 30 June 2024:
Opening Balance
1 July 2023
Exercise
Price
Granted
during the year
Expired during
the year
Exercised
during the year
Closing Balance
30 June 2024
Number
$
Number
Number
Number
Number
250,000
1.40
-
250,000
-
-
333,333
0.70
-
-
-
333,333
416,666
0.44
-
416,666
-
-
416,666
0.50
-
-
-
416,666
416,666
0.54
-
-
-
416,666
125,000
0.44
-
125,000
-
-
20,094,427
0.30
-
20,094,427
-
-
22,863,081
0.15
-
-
-
22,863,081
-
0.05
25,000,000
-
-
25,000,000
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
$
Number
Number
Number
Number
250,000
1.40
-
-
-
250,000
333,333
0.60
-
333,333
-
-
333,333
0.70
-
-
-
333,333
416,666
0.44
-
-
-
416,666
416,666
0.50
-
-
-
416,666
416,666
0.54
-
-
-
416,666
125,000
0.44
-
-
-
125,000
20,094,427
0.30
-
-
-
20,094,427
-
0.15
22,863,081
-
-
22,863,081
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
37 | P a g e
Movements during the period:
(a) Fair value reserve
Balance at beginning of period
397,214
388,066
Net change in fair value
-
9,148
Balance at end of period
397,214
397,214
(b) Foreign currency translation reserves
Balance at beginning of period
(1,166,164)
(2,358,497)
Currency translation differences
(2,142,770)
1,192,333
Transfer of foreign currency translation reserve to loss on sale of discontinued operation
3,308,934
-
Balance at end of period
-
(1,166,164)
(c) Equity based compensation reserve
Balance at beginning of period
551,585
618,918
Share based payment – vested share options
-
-
Options expired during the period
(329,918)
(67,333)
Balance at end of period
221,667
551,585
2024
2023
$
$
(d) Option premium reserve
Balance at beginning of period
1,005,976
-
Issue of options
831,996
1,005,976
Balance at end of period
1,837,972
1,005,976
Nature and purpose of reserves
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.
2024
2023
$
$
18. RESERVES
Fair value reserve (a)
397,214
397,214
Foreign currency translation reserves (b)
-
(1,166,164)
Equity based compensation reserve (c)
221,667
551,585
Option premium reserve (d)
1,837,972
1,005,976
2,456,853
788,611
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
38 | P a g e
19. LOSS PER SHARE
2024
2023
Continuing
operations
Discontinued
operations
Total
Continuing
operations
Discontinued
operations
Total
$
$
$
$
$
$
Basic and diluted loss per share has
been calculated using:
Net loss for the year attributable to
equity holders of the parent
(1,792,020)
(2,013,236)
(3,805,256)
(3,145,937)
(22,077,506) (25,223,443)
2024
2023
Weighted average number of ordinary shares (basic and diluted)
Issued ordinary shares at beginning of year
216,637,925
174,076,954
Effect of shares issued (Note 17)
34,064,369
18,502,508
Weighted average ordinary shares at the end of the year
250,702,294
192,579,462
As the Group is loss making, none of the potentially dilutive securities are currently dilutive in the calculation of total earnings
per share.
2024
2023
$
$
20. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES
Cash flows from operating activities
Loss for the year
(3,803,870)
(25,238,681)
Non-cash items
Loss on sale of discontinued operation, net of tax
1,612,720
-
Imputed interest on borrowings
-
1,100,258
Depreciation
212,587
241,948
Foreign currency exchange loss
489,162
1,367,198
Impairment of investment in shares
9,953
-
Impairment of consumables
-
394,859
Share based payments
881,996
-
Loss on disposal of financial liability
94,144
-
Impairment of E&E
-
14,289,193
Changes in assets and liabilities
Decrease in receivables
973,245
1,273,791
Decrease in inventories
-
2,012,927
(Increase) in other assets
(308,811)
(1,474,433)
(Decrease) in payables
(1,437,871)
(2,200,832)
(Increase)/decrease in provisions
(857,189)
3,434,951
Net cash used in operating activities
(2,133,934)
(4,798,821)
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
38,796
235,148
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
39 | P a g e
21. SHARE BASED PAYMENT
No options were granted during the year ended 30 June 2024 and 2023 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 2024 are as
follows:
Grant
date
Expiry
date
Vesting
date
Exercise
price
Fair value
of options
granted
Total
granted
Number
Total
Exercised
Number
Total
Expired
Number
Balance at
end of the
period
14 October 2019
13 November 2023
14 October 2019
$1.40
$59,000
250,000
-
250,000
-
29 November 2019
13 November 2024
29 November 2019
$0.70
$80,000
333,333
-
333,333
25 November 2020
25 November 2023
25 November 2020
$0.44
$58,334
416,666
-
416,666
-
25 November 2020
25 November 2024
25 November 2020
$0.50
$66,666
416,666
-
416,666
25 November 2020
25 November 2025
25 November 2020
$0.54
$75,000
416,666
-
416,666
Weighted average of options in the equity based compensation reserve during the year
Number of options
2023
Weighted average
exercise price
2023
Number of options
2024
Weighted average
exercise price
2024
Outstanding
1,833,331
$0.632
1,166,665
$0.536
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 0.75 years (2023 – 1.26).
During the year, no ordinary shares were issued as a result of the exercise of options granted to Directors (2023 – nil).
22. RELATED PARTIES
Parent and ultimate controlling party
Equus Mining Limited is both the parent and ultimate controlling party of the Group.
Key management personnel and director transactions
During the year ended 30 June 2024 and 2023, 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.
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
40 | P a g e
23. 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.
2024
2023
$
$
Key management personnel compensation
Primary fees/salary
239,750
830,609
Superannuation
23,072
73,500
Short term benefits
18,555
40,337
281,377
944,446
At 30 June 2024, $39,420 in fees and superannuation were outstanding (2023 fees – $180,568). There were no loans made
to key management personnel or their related parties during the 2024 and 2023 financial years.
During the year ended 30 June 2024 the Directors’ of the Group waived primary fees/salary and superannuation amounting
to $168,604 which had been outstanding as at 30 June 2023. The recovery of these amounts has been reflected in ‘Employee,
directors and consultants costs’ in the Consolidated Statement of Profit or Loss and Other Comprehensive Income.
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.
24. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS DISCLOSURE
The Group's financial instruments comprise deposits with banks, receivables, trade and other payables and from time to time
short term loans from related parties.
The 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 $38,796 for its immediate use.
The following are the contractual maturities of financial liabilities:
Financial liabilities
Carrying
amount
Contractual
cash flows
Less than 6
months
6 to 12
months
1 to 5 years
More than
5 years
$
$
$
$
$
$
30 June 2024
Trade and other payables
340,068
(340,068)
(340,068)
-
-
-
Borrowings
-
-
-
-
-
-
30 June 2023
Trade and other payables
2,636,936
(2,636,936)
(2,636,936)
-
-
-
Borrowings
3,318,251
(3,318,251)
(3,318,251)
-
-
-
It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly
different amounts.
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
41 | P a g e
24. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS DISCLOSURE (Cont.)
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:
2024
2023
$
$
Cash and cash equivalents
38,796
235,148
Receivables
9,796
1,009,615
Other receivables
-
9,190,240
48,592
10,435,003
Cash and cash equivalents
At 30 June 2024, the Group held cash and cash equivalents of $38,796 (2023: $235,148), 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’.
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 2024, the Group is not exposed to Market Risk because it has disposed its Cerro Bayo project.
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:
2024
2023
$
$
Cash and cash equivalents
38,796
235,148
There are no fixed rate instruments (2023 - $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
For the year ended 30 June 2024, the Group is not exposed to currency risk on bank accounts and a loan payable
denominated in USD
2024
2023
USD
USD
Cash at Bank
-
-
Borrowing
-
(2,200,000)
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
42 | P a g e
24. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS DISCLOSURE (Cont.)
Price risk
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. During the financial
year, the investment was impaired.
Sensitivity analysis
A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) profit for the period by
current and prior reporting date would have increased/(decreased) equity and loss for the period by an immaterial amount.
Capital management
Management aim to control the capital of the Group in order to maintain an appropriate debt to equity ratio, provide the
shareholders with adequate returns and ensure that the Group can fund its operations and continue as a going concern.
The Group's capital includes ordinary share capital supported by financial assets. There are no externally imposed capital
requirements on the Group.
Management effectively manages the Group's capital by assessing the Group's financial risks and adjusting its capital
structure in response to changes in these risks and in the market. These responses include the management of cash levels,
distributions to shareholders and share issues.
There have been no changes in the strategy adopted by management to control the capital of the Group since the prior year.
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).
Level 1
Level 2
Level 3
Total
$
$
$
$
Equity instruments at fair value through other comprehensive* income
30 June 2024
-
-
-
-
30 June 2023
-
9,953
-
9,953
*The financial assets held at fair value through other comprehensive income were for investments held in quoted equity securities in prior
year.
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
43 | P a g e
25. CONTROLLED ENTITIES
Parent entity
Equus Mining Limited is an Australian incorporated company listed on the Australian Securities Exchange.
Wholly owned controlled entities
Country of
incorporation
Ownership Interest
2024
2023
%
%
Hotrock Enterprises Pty Ltd
Australia
100
100
Equus Resources Pty Ltd
Australia
-
100
Dataloop Pty Ltd
Australia
100
100
Okore Mining Pty Ltd
Australia
100
100
Subsidiary of Hotrock Enterprises Pty Ltd
Derrick Pty Ltd
Australia
100
100
Andean Coal Pty Ltd
Australia
100
100
Subsidiary of Andean Coal Pty Ltd
Minera Carbones Del Sur SpA
Chile
100
100
Subsidiary of Equus Resources Pty Ltd
Equus Resources Chile SpA
Chile
-
100
Minera Equus Chile SpA
Chile
-
100
Compañía Minera Cerro Bayo SpA
Chile
-
100
Subsidiary of Dataloop Pty Ltd
Southern Gold SpA
Chile
100
100
Subsidiary of Southern Gold SpA
Equus Patagonia SpA
Chile
100
75
26. SUBSEQUENT EVENTS
On 1 October 2024 the Company executed an Amendment to the Cerro Bayo Share Sale Agreement with Andean Silver
Limited (Andean, formerly Mitre Mining Corporation Limited). Under the terms of the Amendment, Andean and Equus agreed
to amend the Deferred Consideration Amount from $1,000,000 to $750,000 to be received in cash on or before 15 October
2024 notwithstanding that the resource milestones may not have been achieved by that date. The Company received the cash
consideration of $750,000 on 4 October 2024 .
In December 2024 the Group received confirmation from its largest creditor that invoices outstanding at 30 June 2024
amounting to $220,000 would not require repayment.
No other matters or circumstances have arisen since the end of the financial year which significantly affected or may
significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future
financial years.
27. 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 2024, the Group was actively reviewing investment opportunities following the
disposal of the Group’s processing and mineral exploration segments in February 2024 which has been classified as a
discontinued operation in these consolidated financial statements. The related results, assets and liabilities of the discontinued
operation are shown separately in note 29.
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
44 | P a g e
28. PARENT ENTITY DISCLOSURES
As at, and throughout the financial year ended 30 June 2024 the parent entity of the Group was Equus Mining Limited.
Company
2024
2023
$
$
Result of the parent entity
Net (loss)
(1,494,046)
(24,248,791)
Other comprehensive income
-
-
Total comprehensive profit/(loss)
(1,494,046)
(24,248,791)
Financial position of the parent entity at year end
Current assets
48,410
18,648
Non-current assets
-
4,031,888
Total assets
48,410
4,050,536
Current liabilities
356,689
966,288
Non-current liabilities
-
2,920,015
Total liabilities
356,689
3,886,303
Net (liabilities) / assets
(308,279)
164,233
Equity
Share capital
144,280,786
142,930,786
Accumulated losses
(147,045,918) (145,049,794)
Reserve
2,456,853
1,954,775
Total (negative equity) / equity
(308,279)
164,233
The Directors are of the opinion that no commitments or contingent liabilities existed at or subsequent to year end.
29. DISCONTINUED OPERATION
On 30 November 2023, Equus executed binding documentation with Andean Silver Limited (‘Andean’) (formerly Mitre Mining
Corporation Limited) under which Andean would acquire all the Chilean assets and undertakings of Equus Mining Limited
(‘Equus’).
Shareholder approval was received for the sale on 29 January and 30 January 2024 respectively for Andean and Equus.
On 21 February 2024, the transaction was completed, and under the terms of the agreement, Andean acquired 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, Andean acquired 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.
Total consideration for the sale was A$5.0 million comprised of:
• A$3.5 million cash;
• A$0.5 million of Andean shares; and
• A$1.0 million deferred consideration in cash or shares (at Andean’s discretion) subject to minimum resource and grade
milestones at Cerro Bayo within 5 years.
The $1.0 million deferred consideration was not assessed as probable at the year-end and as such was not recognised.
Subsequent to year-end the Company amended the sale and purchase agreement which resulted in a reduction in the deferred
consideration component to $750,000 (refer to note 26).
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2024
45 | P a g e
29. DISCONTINUED OPERATION (Cont.)
As part of the sale documentation, a deed was entered into between the parties and the Group’s lenders whereby of the above
total consideration, $3.0 million cash and $0.5 million of Andean shares was agreed transferred to the Group’s lenders as full
and final consideration of all debts payable under the facility (refer to note 15).
The geographical segment of Chile is presented as a discontinued operation following the commitment of the Group's
management to a plan to sell all the exploration assets in Chile and the Cerro Bayo mine. The ownership interests in Equus
Resources Pty Ltd which owns the interest of Cerro Bayo mine together with the exploration project of Los Domos were disposed
of on 21 February 2024.
2024
2023
$
$
A. Results of discontinued operation
Revenue
-
11,586,762
Other income
517,329
681,056
Impairment of exploration and evaluation assets
-
(14,289,194)
Expenses
(916,459)
(20,071,368)
Results from operating activities
(399,130)
(22,092,744)
Income tax expense
-
-
Results from operating activities, net of tax
(399,130)
(22,092,744)
Loss on sale of discontinued operation
(1,612,720)
-
Income tax on loss on sale of discontinued operation
-
-
Loss from discontinued operation, net of tax
(2,011,850)
(22,092,744)
Basic and diluted loss per share (cents)
(0.80)
(11.47)
B. Cash flow from (used in) discontinued operation
Net cash used in operating activities
(953,141)
(2,988,714)
Net cash used in investing activities
-
(3,058,743)
Net cash from financing activities
874,069
(210,925)
(79,072)
(6,258,382)
C. Effect of disposal on the financial position of the Group
Cash and cash equivalents
(142,506)
Trade and other receivables
(9,564,959)
Property plant and equipment
(223,720)
Exploration and evaluation expenditure
(11,593,568)
Trade and other payables
680,274
Borrowings
874,069
Lease liability
150,169
Provision for rehabilitation
17,516,455
Net assets disposed
(2,303,786)
Consideration received, satisfied in cash
3,500,000
Cash and cash equivalents disposed of
(142,506)
Net cash inflow
3,357,494
D. Reconciliation of loss on sale of discontinued operation
Consideration received, satisfied in cash and shares
4,000,000
Net assets disposed on loss of control
(2,303,786)
Transfer of foreign currency translation reserve to profit or loss
(3,308,934)
Loss on sale of discontinued operation
(1,612,720)
Equus Mining Limited
Consolidated Entity Disclosure Statement
For the Year Ended 30 June 2024
46 | P a g e
Determination of Tax Residency
Section 295 (3A) of the Corporations Act 2001 requires that the tax residency of each entity which is included in the
Consolidated Entity Disclosure Statement (CEDS) be disclosed. In the context of an entity which was an “Australian resident”
has the meaning provided in the Income Tax Assessment Act 1997. The determination of tax residency involves judgment as
the determination of tax residency is highly fact dependent and there are currently several different interpretations that could
be adopted, and which could give rise to a different conclusion on residency.
In determining tax residency – The consolidated entity has applied the following interpretations:
Australian tax residency – The consolidated entity has applied current legislation and judicial precedent, including
having regard to the Commissioner of Taxation’s public guidance in Tax Ruling TR 2018/5.
Foreign tax residency – The consolidated entity has applied current legislation and where available judicial precedent
in the determination of foreign tax residency. Where necessary, the consolidated entity has used independent tax
advisers in foreign jurisdictions to assist in its determination of tax residency to ensure applicable foreign tax legislation
has been complied with.
Entity Name
Body corporate,
partnership or
trust
Place of
incorporation
% of share capital
held directly or
indirectly by the
Company in the
body corporate
Australian or
Foreign tax
resident
Jurisdiction for
Foreign tax
resident
Equus Mining Limited
Body Corporate
Australia
N/A
Australia
N/A
Hotrock Enterprises Pty Ltd
Body Corporate
Australia
N/A
Australia
N/A
Dataloop Pty Ltd
Body Corporate
Australia
100%
Australia
N/A
Okore Mining Pty Ltd
Body Corporate
Australia
100%
Australia
N/A
Derrick Pty Ltd
Body Corporate
Australia
100%
Australia
N/A
Andean Coal Pty Ltd
Body Corporate
Australia
100%
Australia
N/A
Minera Carbones Del Sur SpA
Body Corporate
Chile
100%
Foreign
Chile
Southern Gold SpA
Body Corporate
Chile
100%
Foreign
Chile
Equus Patagonia SpA
Body Corporate
Chile
100%
Foreign
Chile
Equus Mining Limited
Directors’ Declaration
47 | P a g e
The Directors of the Company decleare that:
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 16 to 45, and the Remuneration Report
as set out on pages 9 to 13 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 2024 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) the consolidated entity disclosure statement at 30 June 2024 set out on page 46 is true and correct; and
(c) 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 2024.
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 13th day of December 2024 in accordance with a resolution of the Board of Directors:
John R. Braham
Director
48
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.
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 gives a true and
fair view, including of the Group’s
financial position as at 30 June 2024 and
of its financial performance for the year
then ended, in accordance with the
Corporations Act 2001, in compliance with
Australian Accounting Standards and the
Corporations Regulations 2001.
The Financial Report comprises:
• Consolidated statement of financial position as at 30
June 2024
• 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
• Consolidated entity disclosure statement and
accompanying basis of preparation as at 30 June
2024
• Notes, including material 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.
49
Material uncertainty related to going concern
We draw attention to Note 2(d), “Going Concern” in the financial report. The conditions disclosed in
Note 2(d), indicate a material uncertainty exists that may cast significant doubt on the Group’s ability
to continue as a going concern and, therefore, whether it will realise its assets and discharge its
liabilities in the normal course of business, and at the amounts stated in the financial report. Our
opinion is not modified in respect of this matter.
In concluding there is a material uncertainty related to going concern, we evaluated the extent of
uncertainty regarding events or conditions casting significant doubt in the Group’s assessment of
going concern. This included:
•
Analysing the cash flow projections by:
-
Evaluating the underlying data used to generate the projections for consistency with other
information tested by us, our understanding of the Group’s intentions, and past results and
practices; and
-
Assessing the planned levels of operating cash inflows and outflows for feasibility, timing,
consistency of relationships and trends to the Group’s historical results, results since year
end, and our understanding of the Group. In particular, we assessed the impact of the cash
inflows received subsequent to year-end as a result of the amendment to the Cerro Bayo
Sale Agreement.
•
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.
50
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.
Loss from discontinued operation ($2,011,850)
Refer to Note 29 of the Financial Report
The key audit matter
How the matter was addressed in our audit
The loss arising from the sale of the Group’s
Chilean assets and undertakings comprising the
Cerro Bayo, Los Domos and Cerro Diablo
Projects (the discontinued operation) is a key
audit matter due to:
•
The significance of the loss from
discontinued operation to the Group’s
results; and
•
The significant audit effort required to
assess the disposal accounting,
presentation and disclosure requirements in
accordance with accounting standards.
Our procedures included:
•
Reading the sale agreements and deed of debt
repayment (‘the agreements’) to understand
the key terms and conditions and the
obligations of each entity which is party to the
agreements;
•
Evaluating whether the components disposed
of as part of the sale transaction were
appropriately identified in accordance with the
requirements of AASB 5;
•
Evaluating whether the purchase consideration
received by the Group and applied to
extinguish the Group’s borrowing facility was
accounted for and disclosed in accordance
with the terms of the agreements;
•
Testing the integrity and accuracy of the
reported loss from discontinued operation
through recalculation; and
•
Assessing the accuracy and presentation of
the discontinued operation in the financial
statements and note disclosures in
accordance with accounting standards.
51
Other Information
Other Information is financial and non-financial information in Equus Mining Limited’s annual report
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 in accordance with the Corporations Act 2001, including giving
a true and fair view of the financial position and performance of the Group, and in compliance
with Australian Accounting Standards and the Corporations Regulations 2001
•
implementing necessary internal control to enable the preparation of a Financial Report in
accordance with the Corporations Act 2001, including giving a true and fair view of the
financial position and performance of the Group, and that 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.
52
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
In our opinion, the Remuneration Report
of Equus Mining Limited for the year
ended 30 June 2024, complies with
Section 300A of the Corporations Act
2001.
Directors’ responsibilities
The Directors of the Company are responsible for the
preparation and presentation of the Remuneration
Report in accordance with Section 300A of the
Corporations Act 2001.
Our responsibilities
We have audited the Remuneration Report included in
pages 9 to 13 of the Directors’ report for the year
ended 30 June 2024.
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
13 December 2024
EQUUS MINING LIMITED
ADDITIONAL STOCK EXCHANGE INFORMATION
53 | P a g e
Additional information as at 30 November 2024 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 2024 was as follows:
Total
Total
Shareholders
Number of
Range
Shares
1 - 1,000
984
348,914
1,001 - 5,000
698
1,774,134
5,001 - 10,000
243
1,833,625
10,001 - 100,000
523
18,600,806
100,001 and over
170
230,517,454
Total
2,618
253,074,933
Less than Marketable Parcels
On 30 November 2024, 1,882 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.
Number of
Ordinary Shares
Tribeca Investment Partners Pty Ltd
50,563,289
Mandalay Resources Corporation
29,375,122
Mark Lochtenberg - Rigi Investments Pty Limited
27,487,431
Gerard C Toscan Management Pty Limited – Ringwood Management Pty Ltd
14,113,416
EQUUS MINING LIMITED
ADDITIONAL STOCK EXCHANGE INFORMATION
54 | P a g e
Twenty Largest Shareholders
As at 30 November 2024, the twenty largest quoted shareholders held 71.69% of the fully paid ordinary shares as follows:
Name
Number
%
1
Citicorp Nominees Pty Limited
41,712,521
16.48
2
USB Nominees Pty Ltd
39,273,377
15.52
3
Rigi Investments Pty Ltd
25,562,449
10.10
4
HSBC Custody Nominees (Australia) Limited
15,683,521
6.20
5
JP Morgan Nominees Australia Pty Limited
12,500,000
4.94
6
Hodgson Capital Limited
9,266,120
3.66
7
Gerard C Toscan Management Pty Limited
7,774,506
3.07
8
Ringwood Management Pty Limited
5,930,484
2.34
9
Mountain Drilling Limitada
4,605,971
1.82
10
John Wardman & Associates Pty Ltd
3,524,118
1.39
11
Levuka Pastoral Pty Ltd
2,771,925
1.10
12
Terrane Minerals SpA
2,070,853
0.82
13
Simon Gary Sedorenko
1,700,000
0.67
14
Strickland Consulting Pty Ltd
1,500,000
0.59
15
DRYCA Pty Ltd
1,491,115
0.59
16
Mrs Sally Anne Clifford
1,420,300
0.56
17
Kyalla Investments Pty Limited
1,250,000
0.49
18
BNP Paribas Nominees Pty Ltd
1,196,915
0.47
19
John Braham
1,138,953
0.45
20
Northcliffe Holdings Pty Ltd
1,067,941
0.42
OPTIONHOLDERS IN THE COMPANY
Total optionholders as at 30 November 2024 5, holding 48,279,747 unlisted options.
SUBSTANTIAL OPTIONHOLDERS IN THE COMPANY
As at 30 November 2024, 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
72.10
Escrow securities
As at 30 November 2024, there were escrow securities.
Group Mineral Concession Interests as at 30 November 2024
The Company on 30 November 2024 does not hold any interest in mining or exploration tenements: