FIN RESOURCES LIMITED
Annual Report
30 June 2023
finresources.com.au
ABN 25 009 121 644
CONTENTS
Corporate Directory
Directors’ Report
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Auditor’s Independence Declaration
Independent Auditor’s Report
ASX Additional Information
Tenements and Project Locations
PAGE
1
2
13
14
15
16
17
37
38
39
43
45
CORPORATE DIRECTORY
Directors and Officers
Brian Talbot (Technical Director)
Jason Bontempo (Non-Executive Director)
Aaron Bertolatti (Director and Company Secretary)
Solicitors
Gilbert + Tobin
Level 16 Brookfield Place Tower 2
123 St Georges Terrace
PERTH WA 6000
Registered Office
First floor, 35 Richardson Street
WEST PERTH WA 6005
Share Registry
Advanced Share Registry Limited
110 Stirling Highway
NEDLANDS WA 6009
Auditor
Stantons
Level 2, 40 Kings Park Road
WEST PERTH WA 6005
Stock Exchange
Australian Securities Exchange
(Home Exchange: Perth, Western Australia)
ASX Code: FIN
Website
www.finresources.com.au
Directors’ Report
The Directors present their report for Fin Resources Limited (“Fin Resources”, “Fin” or “the Company”) and its
subsidiaries (“the Group”) for the year ended 30 June 2023.
DIRECTORS
The names, qualifications and experience of the Company’s Directors in office during the year and until the
date of this report are as follows. Directors were in office for the entire year unless otherwise stated.
Brian Talbot
Technical Director – appointed 30 November 2021
Mr Talbot has over 25 years’ experience in the mining, minerals and chemical processing sector and holds a
bachelor’s degree in Chemical Engineering with Honours. Mr Talbot was previously Galaxy Resources Limited’s
(“Galaxy”) head of Australian Operations and the technical lead for the development of the evaporation ponds
and chemical processing of lithium salts. Prior to joining Galaxy, Mr Talbot was at Bikita Minerals, a lithium
mine in Zimbabwe where he achieved increased product yield and capacity. Mr Talbot has also held the
positions of mining company director, general manager and metallurgist at various mine operations in Egypt
and South Africa with diverse experience in designing, planning and managing profitable mining operations.
Jason Bontempo
Non-Executive Director – appointed 12 July 2011
Mr Bontempo has over 20 years’ experience in public company management, corporate advisory, investment
banking and public company accounting, qualifying as a chartered accountant with Ernst & Young. Mr
Bontempo has worked primarily serving on the board and the executive management of minerals and
resources public companies focusing on advancing and developing mineral resource assets and business
development. Mr Bontempo also provides corporate advice services and the financing of resource companies
across multiple capital markets including resource asset acquisitions and divestments.
Aaron Bertolatti
Director – appointed 1 February 2023
Company Secretary – appointed 1 September 2014
Aaron Bertolatti is a qualified Chartered Accountant and Company Secretary with over 15 years’ experience
in the mining industry and accounting profession. Mr Bertolatti has both local and international experience
and provides assistance to a number of resource companies with financial accounting and stock exchange
compliance. Mr Bertolatti has significant experience in the administration of ASX listed companies, corporate
governance and corporate finance.
Gautam Varma
Managing Director – appointed 17 January 2022, resigned 31 January 2023
Mr Varma is a veteran of the mining industry having held senior roles at BHP (ASX: BHP), Iluka Resources (ASX:
ILU), Xstrata and, most recently as the Chief Representative for Europe, India and South East Asia at Fortescue
Metals Group (ASX: FMG).
DIRECTORSHIPS OF OTHER LISTED COMPANIES
Directorships of other listed companies held by current directors in the 3 years immediately before the end
of the financial year are as follows:
Director
Company
Period of Directorship
Aaron Bertolatti Megado Minerals Limited (ASX: MEG)
Future Metals NL (ASX: FME)
Director since February 2018
Director from January 2011 to June 2021
Jason Bontempo Odin Metals Limited (ASX: ODM)
Future Metals NL (ASX: FME)
Beacon Minerals Limited (ASX: BCN)
Director from February 2018 to August 2022
Director from January 2011 to June 2021
Director from November 2020 to January 2022
Fin Resources Limited
2
2023 Annual Report to Shareholders
Directors’ Report
INTERESTS IN THE SECURITIES OF THE COMPANY
As at the date of this report, the interests of the Directors in the securities of Fin Resources Limited are:
Director
Ordinary Shares
Performance Options Options exercisable
at $0.018 on or before
30 June 2024
Brian Talbot
Jason Bontempo
Aaron Bertolatti
100,000
9,000,000
4,000,000
7,500,000
10,000,000
-
-
-
500,000
RESULTS OF OPERATIONS
The Group’s net loss after taxation attributable to the members of Fin Resources for the year to 30 June 2023
was $2,649,462 (2022: net loss $5,015,072).
DIVIDENDS
No dividend was paid or declared by the Company during the year and up to the date of this report.
CORPORATE STRUCTURE
Fin Resources Limited is a company limited by shares, which is incorporated and domiciled in Australia.
NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES
The principal activity of the Group during the financial year was mineral exploration and the continued
development of the Sol Mar Project.
REVIEW OF OPERATIONS
Mt Tremblant Lithium Project
In May 2023, Fin completed the acquisition of a 100% interest in the Mt Tremblant Lithium Projects, comprised
of the Cancet West, Ross and the Gaspe Lithium Projects (collectively the “MTLP”) located in Quebec, Canada
(the “Acquisition”). The MTLP comprises 480 granted mineral claims and 22 pending mineral claims covering
a combined area of 138 km2.
The Cancet West Lithium Project covers >14km strike length of the Archean-aged Guyer greenstone belt which
hosts Patriot Metals Corvette Project and Winsome Resources Cancet lithium deposits to the east. The Ross
Lithium Project covers >30km strike length of underexplored greenstone belt located along strike to the east
of the neighbouring Whabouchi lithium deposit. Gaspe Lithium Project has potential to host a lithium in clay
deposit with the project located within the Gaspe Peninsula in southeast Quebec.
A thorough desktop review of the historical exploration data available across the Mt Tremblant Project has
identified a number of targets that require immediate follow up fieldwork:
▪ Several coarse-grained pegmatites (incl. tourmaline pegmatites) have been mapped throughout the Ross
Project.
▪ A significant number of exploration targets interpreted as potential LCT Pegmatites have been mapped
across the Cancet West Project.
▪ An historical government sampling programme returned extremely elevated stream sediment lithium at
Gaspe.
Fin has executed a services agreement with geological consulting firm Mercator Geological Services to provide
field support at the Company’s Mt Tremblant Lithium Properties. During the September quarter it is planned
that geologists from Mercator will complete a multiple day helicopter supported field program to ground truth
and complete preliminary bedrock sampling at the Cancet West and Ross projects.
Fin Resources Limited
3
2023 Annual Report to Shareholders
Directors’ Report
Works Programme
Near-term works programme for the three project areas to include:
in-depth review of historical datasets and mapped outcrop throughout the three projects;
▪
▪ high-resolution satellite imagery acquisition and interpretation;
▪ remote sensing and geophysics as required, with interpretation in conjunction with the historic datasets
and satellite imagery, to highlight areas for ground-proofing and sampling within the upcoming summer
season; and
▪ preparations for the upcoming field season are underway with commencement planned during Q3 2023.
Key Acquisition Terms
As consideration for the acquisition for a 100% interest in the MTLP, Fin:
▪
issued 24,000,000 fully paid ordinary shares under Listing Rule 7.1 to the Vendor (or their nominee/s);
and
▪ paid A$150,000 cash.
The following will also be payable, subject to the relevant technical performance milestone being met within
the timeframe:
Tranche Value of Shares
1
A$375,000 worth of
FIN Shares at the
deemed issue price
2
3
A$375,000 worth of
FIN Shares at the
deemed issue price
A$500,000 worth of
FIN Shares at the
deemed issue price
Milestone
FIN announcing to the ASX geochemistry exploration
results which report one or more results of 2% Li2O grade
per tonne or higher in Spodumene or Pegmatites
(1000ppm for clay) in respect of the Tenements
FIN announcing to the ASX drilling results which report at
least one drill intercept result of greater than 10 metres at
1% or more Li2O per tonne in respect of the Tenements
FIN announcing to the ASX an inferred mineral resource of
at least 10 million tonnes at >1% Li2O or more contained
within the Tenements
End Date
24 months
after
completion
24 months
after
completion
48 months
after
completion
* The deemed issue price for each tranche of FIN Shares is proposed to be equal to the 30-day VWAP of FIN Shares
up to the date on which the relevant milestone is met. These FIN Shares will be issued subject to shareholder
approval being obtained under Listing Rule 7.1. If shareholder approval is not obtained, the relevant milestone
value of FIN Shares will be paid in cash.
Sol Mar Project
The Sol Mar Project consists of five granted exploration licences and one pending exploration licence located
in a proven salt production region with ideal climatic conditions to produce high purity salt. The Company is
investigating the use of renewable energy in the form of wind and solar energy to create a zero-carbon
footprint project and potentially fuel renewable product streams like Hydrogen and other green by products.
The Company has been in active discussions with the holders of land rights, potential green power suppliers,
counterparties for the development of a multiuser port at West Coolgra Point and potential offtake
customers. Fin has also continued to progress studies through technical consultants and is continuing to
focus on reducing capital costs for the project.
McKenzie Springs Project
The McKenzie Springs, is located within the Kimberley Region of Western Australia, 85km north-east of the
township of Halls Creek. The Project covers an area of approximately 82km2 including identified nickel,
copper, cobalt and graphite occurrences. The McKenzie Springs Project is considered prospective for
magmatic Ni-Cu sulphide and PGE mineralisation.
Fin Resources Limited
4
2023 Annual Report to Shareholders
Directors’ Report
The Company has continued to evaluate conducting a gridded soils program over the Springs Creek intrusive
complex located north east of the project area once access is available during the upcoming dry season. The
gridded soils programme will be designed to identify new drill targets for nickel, copper, graphite and other
base/precious metals. A field trip to McKenzie Springs has been planned for the Spring quarter by the
Company’s Technical Advisor Tom Ridges and geological consultant Gary Powell.
Appointment of Technical Advisor
The Company appointed Tom Ridges as technical advisor. Tom is responsible for project management of all
geological and technical programs across all of FIN’s assets. Tom is a geologist with more than 16 years’
experience and a proven track record in gold and base metals exploration, mining, and project development.
Tom’s most recent roles include MD/CEO of Great Western Exploration Limited (ASX: GTE) and Exploration
Manager at Mineral Resources Limited (ASX: MIN) where he led the team and undertook exploration, project
evaluation, mine geology, and oversaw resource modelling.
CORPORATE
Share Issues
On 11 July 2022, the Company issued 1,075,000 shares to Mr James Barrie (Project Director) following twelve
months of continued service.
On 29 July 2022, the Company issued 2,000,000 shares to Mr Gautam Varma following six months of continued
service.
On 24 January 2023, the Company issued 2,000,000 shares to Mr Gautam Varma following twelve months of
continued service.
On 3 February 2023, the Company issued 2,500,000 shares to Mr James Barrie (Project Director) following
eighteen months of continued service.
The Company completed a placement of 30,555,556 shares at $0.018 per share to raise A$550,000. Each share
had a free attaching option (1:2 basis) with an exercise price of $0.03 and an expiry of 17 April 2025. The
placement shares and options were issued on 17 April 2023. The Company appointed Peak Asset
Management as lead manager to the placement offer. Peak Asset management were paid 6% on all funds
raised and were issued 4,000,000 broker options on the same terms and price as the placement.
On 17 April 2023, the Company issued 6,000,000 options, with an exercise price of $0.03 and an expiry of 17
April 2025, to corporate advisors of the Company.
On 2 May 2023, the Company issued 24,000,000 shares to the vendors of the Mt. Tremblant Lithium Project
at a deemed issue price of $0.018 as part of its total consideration.
Board and Management Changes
Gautam Varma resigned as the Managing Director of the Company on 31 January 2023. Upon his resignation,
22,500,000 Performance Options lapsed. The Performance Options were exercisable at $0.00001 with vesting
conditions of consecutive 5-day VWAPs of $0.054 (1/3 Options), $0.072 (1/3 Options) and $0.09 (1/3 Options).
Aaron Bertolatti was appointed to the Board of Directors as a Non-Executive Director on 1 February 2023.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There have been no significant changes in the state of affairs of the Group during the financial year, other
than as set out in this report.
Fin Resources Limited
5
2023 Annual Report to Shareholders
Directors’ Report
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
On 18 July 2023, the Company issued 2,500,000 shares to Mr James Barrie (Project Director) following twenty-
four months of continued service.
There have been no other significant events subsequent to the end of the financial year to the date of this
report.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Directors have excluded from this report any further information on the likely developments in the
operations of the Group and the expected results of those operations in future financial years, as the Directors
believe that it would be speculative and prejudicial to the interests of the Group.
ENVIRONMENTAL REGULATIONS AND PERFORMANCE
The operations of the Group are presently subject to environmental regulation under the laws of Australia.
The Group is, to the best of its knowledge, at all times in full environmental compliance with the conditions of
its licences.
MATERIAL BUSINESS RISKS
The Group considers the following to be the key material business risks:
i) Access to and dependence on Capital Raisings
ii) Exploration Risks
iii) Geopolitics (Canada)
Risk of failure in exploration, development or production
Payment of compensation is ordinarily necessary to acquire participating interests. Also, surveying and
exploratory drilling expenses (exploration expenses) become necessary at the time of exploration activities
for the purpose of discovering resources. When resources are discovered, it is necessary to further invest in
substantial development expenses. There is, however, no guarantee of discovering resources on a scale that
makes development and production feasible. The probability of such discoveries is considerably low despite
various technological advances in recent years, and even when resources are discovered the scale of the
resource does not necessarily make commercial production feasible. For this reason, the Group
conservatively recognizes expenses related to exploration investment in our consolidated financial
statements.
To increase recoverable resources and production, the Group plans to always take an interest in promising
properties and plans to continue exploration investment. Although exploration and development (including
the acquisition of interests) are necessary to secure the resources essential to the Group’s future sustainable
business development, each type of investment involves technological and economic risks, and failed
exploration or development could have an adverse effect on the results of the Group’s operations.
Overseas Business Activities and Country Risk (Geopolitical Risk)
The Group engages in exploration activities outside of Australia, mainly in North America (Canada). The
success of the Group’s operation depends on the political stability in this country and the availability of
qualified and skilled workforce to support operations. While the operations of the Group in this country is
currently very stable, a change in the government may result in changes to the foreign investment laws and
these assets could have an adverse effect on the Group’s operational results. To manage this risk, the Group
ensures that all significant transactions in these countries are supported by robust contracts between the
company and third parties. We have a system in place for parent company level to continuously check the
country risk management before any significant investment is made. Furthermore, we have developed a
mechanism to counter legal risk, where foreign subsidiaries and management can receive appropriate legal
guidance regarding matters such as important agreements and lawsuits in foreign locations.
Fin Resources Limited
6
2023 Annual Report to Shareholders
Directors’ Report
SHARE OPTIONS
As at the date of this report there were 106,277,778 unissued ordinary shares under options. The details of
these securities are as follows:
Number
Type
63,500,000 Unlisted Options
17,500,000 Performance Options
25,277,778 Unlisted Options
106,277,778
Exercise Price $
Expiry Date
$0.018
$0.00001
$0.03
30 June 2024
5 July 2026
17 April 2025
No holder has any right under the options to participate in any other share issue of the Company or any other
entity. 22,500,000 options lapsed during the financial year. No options were exercised during the year ended
30 June 2023. Refer to note 9 (e) for option movements during the financial year.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has made an agreement indemnifying all the Directors and Officers of the Company against all
losses or liabilities incurred by each Director or Officer in their capacity as Directors or Officers of the Company
to the extent permitted by the Corporations Act 2001. The indemnification specifically excludes wilful acts of
negligence. The Company paid insurance premiums in respect of Directors’ and Officers’ Liability Insurance
contracts for current officers of the Company, including Officers of the Company’s controlled entities. The
liabilities insured are damages and legal costs that may be incurred in defending civil or criminal proceedings
that may be brought against the officers in their capacity as officers of entities in the Group.
DIRECTORS’ MEETINGS
During the financial year, in addition to frequent Board discussions, the Directors met regularly to discuss all
matters associated with investment strategy, review of opportunities, and other Company matters on an
informal basis. Circular resolutions were passed as necessary to execute formal Board decisions. The number
of meetings of Directors held during the year and the number of meetings attended by each Director were as
follows:
Director
Gautam Varma
Brian Talbot
Jason Bontempo
Aaron Bertolatti
Number of Meetings
Eligible to Attend
1
2
2
1
Number of Meetings
Attended
1
2
2
1
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of the Court to bring proceedings on behalf of the Group or intervene in any
proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Group for
all or any part of those proceedings. The Group was not a party to any such proceedings during the year.
CORPORATE GOVERNANCE
In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of
Fin Resources Limited support and have adhered to the principles of sound corporate governance. The Board
recognises the recommendations of the Australian Securities Exchange Corporate Governance Council, and
considers that Fin Resources complies to the extent possible with those guidelines, which are of importance
to the commercial operation of a junior listed resources company. During the financial year, shareholders
continued to receive the benefit of an efficient and cost-effective corporate governance policy for the
Company. The Company has established a set of corporate governance policies and procedures which can
be found, along with the Company’s Corporate Governance Statement, on the Fin Resources website:
finresources.com.au.
Fin Resources Limited
7
2023 Annual Report to Shareholders
Directors’ Report
AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES
Section 307C of the Corporations Act 2001 requires the Group’s auditors to provide the Directors of Fin
Resources with an Independence Declaration in relation to the audit of the financial report. A copy of that
declaration is included within this annual report. There were no non-audit services provided by the Group’s
auditor.
Officers of the company who are former partners of Stantons
There are no officers of the company who are former partners of Stantons.
Auditor
Stantons continue in office in accordance with section 327 of the Corporations Act 2001.
AUDITED REMUNERATION REPORT
This report, which forms part of the directors’ report, outlines the remuneration arrangements in place for
the key management personnel (“KMP”) of Fin Resources Limited for the financial year ended 30 June 2023.
The information provided in this remuneration report has been audited as required by Section 308(3C) of the
Corporations Act 2001.
The remuneration report details the remuneration arrangements for KMP who are defined as those persons
having authority and responsibility for planning, directing and controlling the major activities of the Group,
directly or indirectly, including any director (whether executive or otherwise) of the Group.
Details of Key Management Personnel
▪ Gautam Varma – Managing Director (appointed 17 January 2022, resigned 31 January 2023)
▪ Brian Talbot - Technical Director (appointed 30 November 2021)
▪
▪ Aaron Bertolatti – Director (appointed 1 February 2023) and Company Secretary (appointed 1 September
Jason Bontempo - Non-Executive Director (appointed 12 July 2011)
2014)
James Barrie – Project Manager (appointed 8 July 2021, resigned 5 July 2023)
▪
Remuneration Policy
The Board is responsible for determining and reviewing compensation arrangements for the Directors. The
Board assesses the appropriateness of the nature and amount of emoluments of such officers on a yearly
basis by reference to relevant employment market conditions with the overall objective of ensuring maximum
stakeholder benefit from the retention of a high-quality board and executive team. The expected outcome of
this remuneration structure is to retain and motivate Directors. As part of its Corporate Governance Policies
and Procedures, the board has adopted a formal Remuneration Committee Charter and Remuneration Policy.
The Board has elected not to establish a remuneration committee based on the size of the organisation and
has instead agreed to meet as deemed necessary and allocate the appropriate time at its board meetings.
Fees and payments to non‑executive directors reflect the demands which are made on, and the
responsibilities of the directors. Non‑executive directors’ fees and payments are reviewed annually by the
Board. Non‑executive directors do not receive performance-based pay, other than performance rights issued
in the prior year.
Level
Managing Director
Technical Director
Non-Executive Director
Project Manager
Officers
Cash Remuneration
S$300,000
A$36,000
Up to A$39,420
A$250,000
A$60,000
Fin Resources Limited
8
2023 Annual Report to Shareholders
Directors’ Report
Additional fees
A Director may also be paid fees or other amounts as the Directors determine if a Director performs special
duties or otherwise performs services outside the scope of the ordinary duties of a Director. A Director may
also be reimbursed for out-of-pocket expenses incurred as a result of their directorship or any special duties.
Remuneration Consultants
Remuneration consultants have not been used in determining the remuneration paid.
Retirement allowances for Directors
Superannuation contributions required under the Australian Superannuation Guarantee Legislation continue
to be made and are deducted from the directors’ overall fee entitlements where applicable.
Details of Remuneration
Details of the nature and amount of each element of the remuneration of each Director and Executive of the
Company for the year ended 30 June 2023 are as follows:
2023
Directors
Gautam Varma1
Jason Bontempo2
Brian Talbot3
Aaron Bertolatti4
Management
James Barrie
Short term
Base
Salary
$
Director
Fees
$
Consulting
Fees
$
Options
Share-
Based
Payments
$
Shares
Share-
Based
Payments
$
Super
$
Total
$
-
- 36,000
36,000
-
15,000
-
- 271,320
30,000
7,000
60,000
-
-
89,087
-
62,000
-
-
-
- 333,320
69,420
- 132,087
76,575
3,420
1,575
250,000
250,000
-
87,000
-
368,320
-
89,087
-
62,000
26,250 276,250
31,245 887,652
Option/
Share
related
%
18.6
-
67.4
-
-
17.0
1 Gautam Varma resigned on 31 January 2023.
2 Jason Bontempo received additional consulting fees totalling $30,000 for transactional services provided.
3 Brian Talbot received additional consulting fees totalling $7,000 for technical services provided.
4 Aaron Bertolatti was appointed as a director on 1 February 2023. He received consultancy fees of $60,000
for company secretarial services provided during the year.
The fees paid to Directors’ and Officers’ related entities were for the provision of management services of the
particular individual to the Group:
▪ BR Corporation Pty Ltd, an entity associated with Jason Bontempo.
▪ BT Lithium Pty Ltd and R-Tek Group Pty Ltd, entities associated with Brian Talbot.
▪ V2 Ventures Pte Ltd, an entity associated with Gautam Varma.
▪ 1918 Consulting Pty Ltd, an entity associated with Aaron Bertolatti.
There were no other executive officers of the Group during the financial year ended 30 June 2023.
Fin Resources Limited
9
2023 Annual Report to Shareholders
Directors’ Report
Details of the nature and amount of each element of the remuneration of each Director and Executive Officer
for the year ended 30 June 2022 are as follows:
2022
Base
Salary
$
Short term
Director
Fees
$
Consulting
Fees
$
Options
Share Based
Payments
$
Super
$
Total
$
Option
related
%
Directors
Gautam Varma1
Jason Bontempo7
Andrew Radonjic2
Simon Mottram3
Ryan de Franck4,8
Brian Talbot5
Officer and Management
James Barrie6
Aaron Bertolatti
-
- 36,000
- 11,416
- 17,500
- 25,000
15,000
-
- 140,987
42,000
257,796
187,830
-
14,423
-
85,347
-
3,420
1,142
-
1,903
-
398,783
269,250
12,558
31,923
86,903
149,347
-
-
60,000
49,000
250,000
-
250,000 104,916
-
-
-
60,000
351,987
-
18,311
563,707
25,000
-
31,465
275,000
78,311
1,302,075
64.6
69.8
-
45.2
-
57.1
-
23.4
43.3
1 Gautam Varma was appointed 17 January 2022.
2 Andrew Radonjic resigned 30 November 2021.
3 Simon Mottram resigned 17 January 2022.
4 Ryan de Franck was appointed 6 July 2021and resigned 31 May 2022.
5 Brian Talbot was appointed 30 November 2021.
6 James Barrie was appointed 8 July 2021.
7 Jason Bontempo received additional consulting fees totalling $42,000 for transactional services provided.
8 Ryan de Franck received additional consulting fees totalling $60,000 for technical services provided.
The fees paid to Directors’ and Officers’ related entities were for the provision of management services of the
particular individual to the Group:
▪ BR Corporation Pty Ltd, an entity associated with Jason Bontempo.
▪ Estrelas Cadentes Ltda, an entity associated with Simon Mottram.
▪ Valperlon Group Pty Ltd, an entity associated with Ryan de Franck.
▪ BT Lithium Pty Ltd and R-Tek Group Pty Ltd, entities associated with Brian Talbot.
▪ V2 Ventures Pte Ltd, an entity associated with Gautam Varma.
▪ 1918 Consulting Pty Ltd, an entity associated with Aaron Bertolatti.
There were no other executive officers of the Group during the financial year ended 30 June 2022.
Shareholdings of Key Management Personnel
The number of shares in the Company held during the financial year by each Director and specified executives
of the Group, including their personally related parties, is set out below.
Balance at the
start of the year
or date of
appointment
Granted during
the year as
compensation
On exercise of
share options/
Performance
Options
Other changes
during the year
Balance at the
end of the year
-
9,000,000
100,000
4,000,000
4,000,0002
-
-
-
1,175,000
3,575,0003
-
-
-
-
-
(4,000,000)
-
-
-
-
9,000,000
100,000
4,000,000
-
4,750,000
10
2023 Annual Report to Shareholders
Directors
Gautam Varma1
Jason Bontempo
Brian Talbot
Aaron Bertolatti
Management
James Barrie
Fin Resources Limited
Directors’ Report
1 Gautam Varma resigned on 31 January 2023.
2 Shares were granted during the reporting year as compensation following achievement of 6 months
(2,000,000) and 12 months (2,000,000) continued service.
3 Shares were granted during the reporting year as compensation following achievement of 12 months
(1,075,000) and 18 months (2,500,000) continued service.
All equity transactions with key management personnel other than arising from the exercise of remuneration
options have been entered into under terms and conditions no more favourable than those the Company
would have adopted if dealing at arm’s length.
Performance Options Holdings of Key Management Personnel
The numbers of options over ordinary shares in the Company held during the financial year by each Director
of Fin Resources Limited and specified executives of the Group, including their personally related parties, are
set out below:
Balance at
the start of
the year or
date of
appointment
22,500,000
10,000,000
7,500,000
500,000
-
Directors
Gautam Varma1
Jason Bontempo
Brian Talbot
Aaron Bertolatti
Management
James Barrie
Granted
during the
year as
compensation
Exercised
during the
year
Other
changes
during the
year
Balance at
the end of
the year
Exercisable
Un-
exercisable
-
-
-
-
-
-
- (22,500,000)
-
-
-
-
- 10,000,000 3,334,000 6,666,000
- 7,500,000
- 7,500,000
-
500,000
-
500,000
-
-
-
-
-
-
1 Gautam Varma resigned on 31 January 2023.
Performance Options Affecting Remuneration
The terms and conditions of Performance Options affecting remuneration in the current or future reporting
years are as follows:
Grant
Date
Grant
Number
Expiry
date/last
exercise
date
Exercise
price
$
Value at
grant date1
$
Number
vested
Vested
%
Value vested
during the
year
$
Max
value yet
to vest
$
Director
Brian Talbot 29/11/21 7,500,000 05/07/26 0.00001
195,002
-
-
89,089
20,5692
1 The value at grant date has been calculated in accordance with AASB 2 Share based payments.
2 Tranche 1, Tranche 2 and Tranche 3 Options vest upon the 5-day VWAP of the Company’s shares reaching at
least $0.054, $0.072 and $0.090, respectively, before the expiry date. In addition to these conditions, 50% of
the Performance Options will vest following completion of 12 months of continued service as a director and
the remaining 50% will vest following completion of 24 months of continued service as a director.
Service Agreements
Managing Director
Gautam Varma (V2 Ventures Pte Ltd) was engaged under a consulting agreement dated 17 January 2022. Under
the agreement Mr. Varma was to be paid a monthly fee of S$25,000. The Agreement was able to be terminated
by either party by giving three month’s written notice. On 31 January 2023, Mr. Gautam Varma provided his 3
month’s written notice to terminate the consulting agreement.
Fin Resources Limited
11
2023 Annual Report to Shareholders
Directors’ Report
Executive Officers
Company Secretary, Aaron Bertolatti (1918 Consulting Pty Ltd) is engaged under an Executive Agreement
dated 1 May 2018. Under the agreement Mr. Bertolatti is paid an annual fee of A$60,000. The Agreement may
be terminated by the Company without notice or without cause by giving three months’ notice in writing or
payment in lieu of notice. The Agreement may also be terminated by Mr. Bertolatti by providing three months’
notice in writing.
Non-Executive Director Service Agreements
On appointment to the Board, all non-executive directors enter into a service agreement with the Group in
the form of a letter of appointment. The letter summarises the Board policies and terms, including
compensation ranging from $30,000 to $39,420 per annum (including Superannuation), relevant to the
director. There is no termination clause included in the letter.
Loans to Directors and Executives
There were no loans to Directors and executives during the financial year ended 30 June 2023.
END OF AUDITED REMUNERATION REPORT
Additional Information
The earnings of the Group for the five years to 30 June 2023 are summarised below:
Other income
EBITDA
EBIT
Loss after income tax
2023
$
70,333
(2,649,462)
(2,649,462)
(2,649,462)
2022
$
6,600
(5,015,072)
(5,015,072)
(5,015,072)
2021
$
23,752
(880,124)
(880,124)
(880,124)
2020
$
39,191
(295,317)
(295,317)
(295,317)
2019
$
61,073
(274,901)
(274,901)
(274,901)
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
Share price at financial year end ($)
Total dividends declared (cents per share)
Basic loss per share (cents per share)
0.014
-
(0.46)
0.014
-
(0.90)
0.044
-
(0.29)
0.015
-
(0.10)
0.012
-
(0.09)
2023
2022
2021
2020
2019
Voting and comments made at the Company's 2022 Annual General Meeting
Fin Resources Limited received 96.2% of “yes” votes on its remuneration report for the 2022 financial year.
The Company did not receive any specific feedback at the AGM or throughout the year on its remuneration
practices.
Signed on behalf of the board in accordance with a resolution of the Directors.
Aaron Bertolatti
Director and Company Secretary
Perth, Western Australia
6 September 2023
Fin Resources Limited
12
2023 Annual Report to Shareholders
Fin Resources Limited
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the year ended 30 June 2023
Continuing operations
Consultancy fees
Corporate and compliance expense
Employee benefits expense
Share based payments
Exploration expenditure written off
Other expenses
Total expenses
Other income
Note
30-Jun-23
30-Jun-22
$
$
18
7
(98,000)
(307,620)
(138,669)
(188,309)
(1,764,446)
(222,751)
(138,660)
(340,781)
(474,835)
(3,002,636)
(911,391)
(153,369)
(2,719,795)
(5,021,672)
70,333
6,600
Loss before income tax from continuing operations
(2,649,462)
(5,015,072)
Income tax expense
3
-
-
Loss after income tax from continuing operations
(2,649,462)
(5,015,072)
Loss for the year
(2,649,462)
(5,015,072)
Other comprehensive income
Items that may be reclassified to profit and loss
Other comprehensive income for the year net of tax
-
-
-
-
Total comprehensive loss for the year
(2,649,462)
(5,015,072)
Loss attributable to:
Owners of the parent
Non-controlling interests
Total comprehensive loss attributable to:
Owners of the parent
Non-controlling interests
Loss per share
From continuing operations
(2,649,462)
(5,015,072)
-
-
(2,649,462)
(5,015,072)
(2,649,462)
(5,015,072)
-
-
(2,649,462)
(5,015,072)
Basic and diluted loss per share (cents)
14
(0.46)
(0.90)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction
with the accompanying notes.
Fin Resources Limited
13
2023 Annual Report to Shareholders
Fin Resources Limited
Consolidated Statement of Financial Position
as at 30 June 2023
Current Assets
Cash and cash equivalents
Trade and other receivables
Other assets
Other financial assets
Total Current Assets
Non-Current Assets
Exploration and evaluation expenditure
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Provisions
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
30-Jun-23
30-Jun-22
Note
$
$
4
5
6
7
8
2,269,837
3,394,010
45,232
13,898
100
35,115
26,460
100
2,329,067
3,455,685
3,509,302
3,509,302
5,838,369
3,852,412
3,852,412
7,308,097
85,969
24,039
110,008
110,008
58,325
9,616
67,941
67,941
5,728,361
7,240,156
9
10
11
36,670,335
35,691,562
5,763,477
5,862,379
(36,705,451)
(34,313,785)
5,728,361
7,240,156
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
Fin Resources Limited
14
2023 Annual Report to Shareholders
Fin Resources Limited
Consolidated Statement of Changes in Equity
for the year ended 30 June 2023
Balance at 1 July 2021
32,086,071
(29,298,713)
2,859,138
5,646,496
Issued capital
$
Accumulated
losses
$
Reserves
$
Total
$
Total comprehensive loss for the year
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
Transactions with owners in their
capacity as owners
Shares issued during the year
Shares issued on exercise of options
Proceeds from issue of options
Cost of issue
Share-based payment (note 18)
Balance at 30 June 2022
-
-
-
(5,015,072)
-
(5,015,072)
-
-
-
(5,015,072)
-
(5,015,072)
2,612,164
1,053,462
-
(60,135)
-
-
-
-
-
-
-
-
605
-
2,612,164
1,053,462
605
(60,135)
3,002,636
3,002,636
35,691,562
(34,313,785)
5,862,379
7,240,156
Balance at 1 July 2022
35,691,562
(34,313,785)
5,862,379
7,240,156
Total comprehensive loss for the year
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
Transactions with owners in their
capacity as owners
Shares issued during the year
Cost of issue
Share-based payment (note 18)
Balance at 30 June 2023
-
-
-
(2,649,462)
-
(2,649,462)
1,044,358
(65,585)
-
-
-
-
-
-
-
-
257,796
(98,902)
(2,649,462)
-
(2,649,462)
1,044,358
(65,585)
158,894
36,670,335
(36,705,451)
5,763,477
5,728,361
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
Fin Resources Limited
15
2023 Annual Report to Shareholders
Fin Resources Limited
Consolidated Statement of Cash Flows
for the year ended 30 June 2023
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Note
30-Jun-23
30-Jun-22
$
$
(645,039)
(1,160,300)
70,333
6,600
Net cash (used in) operating activities
4
(574,706)
(1,153,700)
Cash flows from investing activities
Payments for exploration expenditure
Net cash (used in) investing activities
Cash flows from financing activities
Proceeds from issue of shares
Proceeds from issue of options
Payments for share issue costs
Net cash provided by financing activities
Net (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
(1,066,825)
(1,690,393)
(1,066,825)
(1,690,393)
550,358
1,254,377
-
605
(33,000)
(60,135)
517,358
1,194,847
(1,124,173)
(1,649,246)
3,394,010
5,043,256
Cash and cash equivalents at the end of the year
4
2,269,837
3,394,010
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
Fin Resources Limited
16
2023 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2023
1. Corporate Information
The financial report of Fin Resources Limited (“Fin Resources”, “Fin” or “the Company”) and its subsidiaries (the
“Group”) for the year ended 30 June 2023 was authorised for issue in accordance with a resolution of the
Directors on 6 September 2023. Fin Resources is a company limited by shares incorporated in Australia whose
shares are publicly traded on the Australian Securities Exchange. The nature of the operations and the
principal activities of the Company are described in the Directors’ Report.
2. Summary of Significant Accounting Policies
(a) Basis of preparation
The financial statements are general-purpose financial statements, which have been prepared in accordance
with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative
pronouncements of the Australian Accounting Standards Board. The financial statements have also been
prepared on a historical cost basis. The presentation currency is Australian dollars.
(b) Statement of compliance
The financial report complies with Australian Accounting Standards, which include Australian equivalents to
International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report,
comprising the financial statements and notes thereto, complies with International Financial Reporting
Standards (IFRS).
(c) Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the Group
only. Supplementary information about the parent entity is disclosed in note 19.
(d) Basis of consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the parent (Fin
Resources Limited) and all of the subsidiaries. Subsidiaries are those entities over which the Company has the
power to govern the financial and operating policies so as to obtain benefits from their activities. The existence
and effect of potential voting rights that are currently exercisable or convertible are considered when
assessing whether a Company controls another entity. A list of the subsidiaries is provided in note 13(b).
In preparing the consolidated financial statements, all intercompany balances and transactions, income and
expenses and profit and losses resulting from intra-company transactions have been eliminated in full.
Unrealised losses are also eliminated unless costs cannot be recovered. Non-controlling interests in the
results and equity of subsidiaries are shown separately in the Consolidated Statement of Profit or Loss and
Other Comprehensive Income and Consolidated Statement of Financial Position, respectively.
(e) Cash and cash equivalents
Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid
investments that are readily convertible to known amounts of cash and which are subject to an insignificant
risk of changes in value. Bank overdrafts are shown within borrowings in current liabilities in the Consolidated
Statement of Financial Position.
(f) Employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, long
service leave, and sick leave when it is probable that settlement will be required and they are capable of being
measured reliably.
Liabilities recognised in respect of employee benefits expected to be settled within 12 months, are measured
at their nominal values using the remuneration rate expected to apply at the time of settlement. Liabilities
recognised in respect of employee benefits which are not expected to be settled within 12 months are
measured as the present value of the estimated future cash outflows to be made by the Group in respect of
services provided by employees up to reporting date.
Fin Resources Limited
17
2023 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2023
(g) Fair Value of Assets and Liabilities
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis,
depending on the requirements of the applicable Accounting Standard. Fair value is the price the Group
would receive to sell an asset or would have to pay to transfer a liability in an orderly (i.e. unforced) transaction
between independent, knowledgeable and willing market participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used
to determine fair value. Adjustments to market values may be made having regard to the characteristics of
the specific asset or liability. The fair values of assets and liabilities that are not traded in an active market are
determined using one or more valuation techniques. These valuation techniques maximise, to the extent
possible, the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the asset or
liability (i.e. the market with the greatest volume and level of activity for the asset or liability) or, in the absence
of such a market, the most advantageous market available to the entity at the end of the reporting period (i.e.
the market that maximises the receipts from the sale of the asset or minimises the payments made to transfer
the liability, after taking into account transaction costs and transport costs). For non-financial assets, the fair
value measurement also takes into account a market participant's ability to use the asset in its highest and
best use or to sell it to another market participant that would use the asset in its highest and best use.
The fair value of liabilities and the entity's own equity instruments (excluding those related to share-based
payment arrangements) may be valued, where there is no observable market price in relation to the transfer
of such financial instruments, by reference to observable market information where such instruments are
held as assets. Where this information is not available, other valuation techniques are adopted and, where
significant, are detailed in the respective note to the consolidated financial statements.
Valuation techniques
In the absence of an active market for an identical asset or liability, the Group selects and uses one or more
valuation techniques to measure the fair value of the asset or liability, The Group selects a valuation technique
that is appropriate in the circumstances and for which sufficient data is available to measure fair value. The
availability of sufficient and relevant data primarily depends on the specific characteristics of the asset or
liability being measured. The valuation techniques selected by the Group are consistent with one or more of
the following valuation approaches:
− Market approach: valuation techniques that use prices and other relevant information generated by
market transactions for identical or similar assets or liabilities.
−
Income approach: valuation techniques that convert estimated future cash flows or income and expenses
into a single discounted present value.
− Cost approach: valuation techniques that reflect the current replacement cost of an asset at its current
service capacity.
− Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use
when pricing the asset or liability, including assumptions about risks. When selecting a valuation technique,
the Group gives priority to those techniques that maximise the use of observable inputs and minimise the
use of unobservable inputs.
Inputs that are developed using market data (such as publicly available information on actual transactions)
and reflect the assumptions that buyers and sellers would generally use when pricing the asset or liability are
considered observable, whereas inputs for which market data is not available and therefore are developed
using the best information available about such assumptions are considered unobservable.
Fin Resources Limited
18
2023 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2023
Fair value hierarchy
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which categorises
fair value measurements into one of three possible levels based on the lowest level that an input that is
significant to the measurement can be categorised into as follows:
Level 1
Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can access at the measurement date.
Level 2
Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset
or liability, either directly or indirectly.
Level 3
Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or
more valuation techniques. These valuation techniques maximise, to the extent possible, the use of
observable market data. If all significant inputs required to measure fair value are observable, the asset or
liability is included in Level 2. If one or more significant inputs are not based on observable market data, the
asset or liability is included in Level 3.
The Group would change the categorisation within the fair value hierarchy only in the following circumstances:
i. if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or vice
versa; or
ii. if significant inputs that were previously unobservable (Level 3) became observable (Level 2) or vice versa.
When a change in the categorisation occurs, the Group recognises transfers between levels of the fair value
hierarchy (i.e. transfers into and out of each level of the fair value hierarchy) on the date the event or change
in circumstances occurred.
(h) Financial instruments
Financial assets
Except for those trade receivables that do not contain a significant financing component and are measured
at the transaction price in accordance with AASB 15, all financial assets are initially measured at fair value
adjusted for transaction costs (where applicable).
For the purpose of subsequent measurement, financial assets other than those designated and effective as
hedging instruments, are classified into the following categories upon initial recognition:
▪ amortised cost;
▪
▪
fair value through other comprehensive income (FVOCI); and
fair value through profit or loss (FVPL).
Classifications are determined by both:
▪ the contractual cash flow characteristics of the financial assets; and
▪ the entities business model for managing the financial asset.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not
designated as FVPL):
▪ they are held within a business model whose objective is to hold the financial assets and collect its
contractual cash flows; and
Fin Resources Limited
19
2023 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2023
▪ the contractual terms of the financial assets give rise to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method.
Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents,
trade and most other receivables fall into this category of financial instruments.
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge,
as appropriate.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs
unless the Group designated a financial liability at fair value through profit or loss. Subsequently, financial
liabilities are measured at amortised cost using the effective interest method except for derivatives and
financial liabilities designated at FVPL, which are carried subsequently at fair value with gains or losses
recognised in profit or loss.
All interest-related charges and, if applicable, gains and losses arising on changes in fair value that are
recognised in profit or loss.
Impairment
From 1 July 2018, the Group assesses on a forward-looking basis the expected credit losses associated with
its debt instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on
whether there has been a significant increase in credit risk.
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual
provisions of the financial instrument. Financial instruments (except for trade receivables) are measured
initially at fair value adjusted by transactions costs, except for those carried “at fair value through profit or
loss”, in which case transaction costs are expensed to profit or loss. Where available, quoted prices in an active
market are used to determine the fair value. In other circumstances, valuation techniques are adopted.
Subsequent measurement of financial assets and financial liabilities are described below.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire,
or when the financial asset and all substantial risks and rewards are transferred. A financial liability is
derecognised when it is extinguished, discharged, cancelled or expires.
(i) Goods and services tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:
i. where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as
part of the cost of acquisition of an asset or as part of an item of expense; or
for receivables and payables which are recognised inclusive of GST.
ii.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables. Cash flows are included in the cash flow statement on a gross basis. The GST
component of cash flows arising from investing and financing activities which is recoverable from, or payable
to, the taxation authority is classified as operating cash flows.
(j) Impairment of assets
At each reporting date, the Group reviews the carrying amounts of its tangible and intangible assets to
determine whether there is any indication that those assets have suffered an impairment loss. If any such
indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the
impairment loss (if any).
Fin Resources Limited
20
2023 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2023
Where the asset does not generate cash flows that are independent from other assets, the Group estimates
the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset for which the
estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-
generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-
generating unit) is reduced to its recoverable amount. An impairment loss is recognised in profit or loss
immediately.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is
increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying
amount does not exceed the carrying amount that would have been determined had no impairment loss been
recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised
in profit or loss immediately.
(k) Income tax
Current tax
Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the
taxable profit or tax loss for the period. It is calculated using tax rates and tax laws that have been enacted
or substantively enacted by reporting date. Current tax for current and prior periods is recognised as a liability
(or asset) to the extent that it is unpaid (or refundable).
Deferred tax
Deferred tax is accounted for using the statement of financial position liability method in respect of temporary
differences arising from differences between the carrying amount of assets and liabilities in the financial
statements and the corresponding tax base of those items.
In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets
are recognised to the extent that it is probable that sufficient taxable amounts will be available against which
deductible temporary differences or unused tax losses and tax offsets can be utilised.
However, deferred tax assets and liabilities are not recognised if the temporary differences giving rise to them
arise from the initial recognition of assets and liabilities (other than as a result of a business combination)
which affects neither taxable income nor accounting profit. Furthermore, a deferred tax liability is not
recognised in relation to taxable temporary differences arising from goodwill.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries,
branches, associates and joint ventures except where the Group is able to control the reversal of the
temporary differences and it is probable that the temporary differences will not reverse in the foreseeable
future. Deferred tax assets arising from deductible temporary differences associated with these investments
and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits
against which to utilise the benefits of the temporary differences and they are expected to reverse in the
foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period(s)
when the asset and liability giving rise to them are realised or settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted by reporting date. The measurement of deferred tax liabilities
and assets reflects the tax consequences that would follow from the manner in which the Group expects, at
the reporting date, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets
and liabilities are offset when they relate to income taxes levied by the same taxation authority and the
company/Group intends to settle its current tax assets and liabilities on a net basis.
Fin Resources Limited
21
2023 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2023
Current and deferred tax for the period
Current and deferred tax is recognised as an expense or income in the statement of profit or loss and other
comprehensive income, except when it relates to items credited or debited directly to equity, in which case
the deferred tax is also recognised directly in equity, or where it arises from the initial accounting for a
business combination, in which case it is taken into account in the determination of goodwill or excess.
(l) Payables
Trade payables and other accounts payable are recognised when the Group becomes obliged to make future
payments resulting from the purchase of goods and services.
(m) Revenue recognition
The Group has applied AASB 15 Revenue from Contracts with Customers using the cumulative effective
method. The Group does not have any revenue from contracts with customers.
Interest revenue
Revenue is recognised as interest accrues using the effective interest method. This is a method of calculating
the amortised cost of a financial asset and allocating the interest income over the relevant period using the
effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
(n) Exploration and evaluation expenditure
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an
exploration and evaluation asset in the year in which they are incurred where the following conditions are
satisfied:
the rights to tenure of the area of interest are current; and
(i)
(ii) at least one of the following conditions is also met:
(a) the exploration and evaluation expenditures are expected to be recouped through successful
development and exploration of the area of interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in the area of interest have not at the balance 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 initially measured at cost and include acquisition of rights to explore,
studies, exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation
and amortisation of assets used in exploration and evaluation activities. General and administrative costs are
only included in the measurement of exploration and evaluation costs where they are related directly to
operational activities in a particular area of interest.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that
the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The
recoverable amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has
been allocated being no larger than the relevant area of interest) is estimated to determine the extent of the
impairment loss (if any).
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised
estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss been recognised for the asset
in previous years.
Fin Resources Limited
22
2023 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2023
Where a decision has been made to proceed with development in respect of a particular area of interest, the
relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to
development. Where an area of interest is abandoned, any expenditure carried forward in respect of that
area is written off.
(o) Interests in joint ventures
Joint arrangements represent the contractual sharing of control between parties in a business venture where
unanimous decisions about relevant activities are required. Separate joint venture entities providing joint
ventures with an interest to net assets are classified as a "joint venture" and accounted for using the equity
method.
Joint venture operations represent arrangements whereby joint operators maintain direct interests in each
asset and exposure to each liability of the arrangement. The Group's interests in the assets, liabilities, revenue
and expenses of joint operations are included in the respective line items of the consolidated financial
statements. Gains and losses resulting from sales to a joint operation are recognised to the extent of the other
parties' interests. When the Group makes purchases from a joint operation, it does not recognise its share of
the gains and losses from the joint arrangement until it resells those goods/assets to a third party.
(p) Share-based payments
Equity-settled share-based payments with employees and others providing similar services are measured at
the fair value of the equity instrument at the grant date. Fair value is measured either with reference to the
value of the goods and services provided or by use of a Black-Scholes model. The expected life used in the
model has been adjusted, based on management’s best estimate, for the effects of non-transferability,
exercise restrictions, and behavioural considerations. Further details on how the fair value of equity-settled
share-based transactions has been determined can be found in note 18.
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a
straight-line basis over the vesting period, based on the Group’s estimate of shares that will eventually vest.
Equity-settled share-based payment transactions with other parties are measured at the fair value of the
goods and services received, except where the fair value cannot be estimated reliably, in which case they are
measured at the fair value of the equity instruments granted, measured at the date the entity obtains the
goods or the counterparty renders the service.
For cash-settled share-based payments, a liability equal to the portion of the goods or services received is
recognised at the current fair value determined at each reporting date.
(q) Segment reporting
Operating segments are identified and segment information disclosed on the basis of internal reports that
are regularly provided to, or reviewed by, the Group’s chief operating decision maker which, for the Group, is
the board of directors. In this regard, such information is provided using different measures to those used in
preparing the Consolidated Statement of Profit or Loss and Other Comprehensive Income and Consolidated
Statement of Financial Position. Reconciliations of such management information to the statutory information
contained in the annual financial report have been included.
(r) Critical accounting judgements and key sources of estimation uncertainty
In the application of the Group’s accounting policies, which are described in note 2, management is required
to make judgments, estimates and assumptions about carrying values of assets and liabilities that are not
readily apparent from other sources.
Fin Resources Limited
23
2023 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2023
The estimates and associated assumptions are based on historical experience and various other factors that
are believed to be reasonable under the circumstance, the results of which form the basis of making the
judgments. Actual results may differ from these estimates. The 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 if the revision affects only that period, or in the period of the revision and future periods
if the revision affects both current and future periods.
Key sources of estimation uncertainty
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty
at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year:
Exploration and Evaluation Expenditure
The Group capitalises expenditure relating to exploration and evaluation where it is considered likely to be
recoverable or where the activities have not reached a stage which permits a reasonable assessment of the
existence of reserves. While there are certain areas of interest from which no reserves have been extracted,
the directors are of the continued belief that such expenditure should not be written off since feasibility
studies in such areas have not yet concluded.
Deferred tax assets
The Group recognises deferred tax assets when it becomes probable that sufficient taxable income will be
derived in future periods against which to offset these assets. At each reporting date, the Group assesses the
level of expected future cash flows from the business and the probability associated with realising these cash
flows, and makes an assessment of whether the deferred tax assets of the Group should be recognised.
(s) New or amended Accounting Standards and Interpretations adopted
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any new
or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The following Accounting Standards and Interpretations are most relevant to the Group:
Classification of Liabilities as Current or Non-current
The amendment amends AASB 101 to clarify whether a liability should be presented as current or non-current.
The Group plans on adopting the amendment for the reporting period ending 30 June 2024. The amendment
is not expected to have a material impact on the financial statements once adopted.
Disclosure of Accounting Policies and Definition of Accounting Estimates
The amendment amends AASB 7, AASB 101, AASB 108, AASB 134 and AASB Practice Statement 2. These
amendments arise from the issuance by the IASB of the following International Financial Reporting Standards:
Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) and Definition of
Accounting Estimates (Amendments to IAS 8). The Group plans on adopting the amendment for the reporting
period ending 30 June 2024. The impact of the initial application is not yet known.
Deferred Tax related to Assets and Liabilities arising from a Single Transaction
The amendment amends the initial recognition exemption in AASB 112: Income Taxes such that it is not
applicable to leases and decommissioning obligations – transactions for which companies recognise both an
asset and liability and that give rise to equal taxable and deductible temporary differences. The Group plans
on adopting the amendment for the reporting period ending 30 June 2024. The impact of the initial application
is not yet known.
Fin Resources Limited
24
2023 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2023
3.
Income Tax
(a) Income tax expense
Major component of tax expense for the year:
Current tax
Deferred tax
(b) Numerical reconciliation between aggregate tax expense
recognised in the statement of comprehensive income and tax
expense calculated per the statutory income tax rate
Loss from before income tax expense
Tax at the Australian rate of 25% (2022: 25%)
Tax-effect of:
Other non-deductible expense
Impact of change in corporate tax rate
Revenue losses and other deferred tax balances not recognised
Income tax expense
(c) Unrecognised deferred tax assets @ 25% (2022: 25%):
Carry forward revenue losses
Carry forward capital losses
Capital raising costs
Other
(d) Unrecognised deferred tax liabilities @ 25% (2022: 25%):
Exploration expenditure
Other
2023
$
2022
$
-
-
-
-
-
-
(2,649,462)
(662,366)
(5,015,072)
(1,253,768)
69,833
-
592,533
-
795,237
726,639
(268,108)
-
3,770,860
1,130,358
31,634
13,010
4,945,862
3,282,806
1,130,358
28,507
5,521
4,447,192
(221,666)
(3,474)
(225,140)
(331,188)
(6,615)
(337,803)
Net deferred tax assets not brought to account
4,720,722
4,109,389
The benefit for tax losses will only be obtained if:
i. the Company derives future assessable income in Australia of a nature and of an amount sufficient to
enable the benefit from the deductions for the losses to be realised;
ii. the Company continues to comply with the conditions for deductibility imposed by tax legislation in
Australia; and
iii. no changes in tax legislation in Australia adversely affect the Company in realising the benefit from the
deductions for the losses.
(e) Tax consolidation
Fin Resources Limited and its wholly owned Australian resident subsidiaries have formed a tax consolidated
group with effect from 1 July 2009. Fin Resources Limited is the head entity of the tax consolidated group.
Fin Resources Limited
25
2023 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2023
4.
Cash and Cash Equivalents
Reconciliation of cash
Cash comprises of:
Cash at bank
Reconciliation of operating loss after tax to net cash flow from
operations
Loss after tax
Non-cash items
Share-based payments expense
Exploration expenditure written off
Annual leave expense
Change in assets and liabilities
Decrease / (increase) in trade and other receivables and other assets
Decrease / (increase) in exploration and evaluation expenditure
Increase / (decrease) in trade and other payables
Net cash flow (used in) operating activities
2023
$
2022
$
2,269,837
3,394,010
(2,649,462)
(5,015,072)
188,309
1,764,446
14,423
2,447
69,850
35,281
(574,706)
3,002,636
911,391
9,616
(6,098)
-
(56,173)
(1,153,700)
Non-cash investing and financing activities
24,000,000 shares were granted to the vendors of the Mt Tremblant Lithium Projects on 2 May 2023 as
consideration for the acquisition of the project tenements.
5.
Trade and Other Receivables - Current
Trade debtors
GST receivable
19,624
25,608
45,232
-
35,115
35,115
Trade debtors and GST receivable are non-interest bearing and generally receivable on 30-day terms. They are
neither past due nor impaired. The amount is fully collectable. Due to the short-term nature of these
receivables, their carrying value is assumed to approximate their fair value.
6.
7.
Other Assets
Prepayments
Exploration and Evaluation Expenditure
Opening balance
Acquisition of exploration tenements
Expenditure capitalised during the year
Exploration expenditure written off
Closing balance
13,898
26,460
3,852,412
582,0001
839,336
(1,764,446)2
3,509,302
900,245
2,666,667
1,196,891
(911,391)
3,852,412
1 In May 2023, the Company completed the acquisition of a 100% interest in the Mt Tremblant Lithium
Projects, located in Quebec, Canada (the “Acquisition”). The Project comprises 480 granted mineral claims
and 22 pending mineral claims covering a combined area of 138 km2. Consideration for the acquisition
comprised of the issue of 24,000,000 fully paid ordinary shares at a deemed issue price of $0.018 per share
(refer note 9(b)) and A$150,000 in cash.
2 An impairment expense of $1,764,446 was recognised in relation to the Sol Mar Project. Future exploration
activities will be reduced whilst the Company undertakes an assessment of the project.
The ultimate recoupment of costs carried forward for exploration expenditure is dependent on the successful
development and commercial exploitation or sale of the respective mining areas.
Fin Resources Limited
26
2023 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2023
8.
Trade and Other Payables
Trade payables
Other payables and accruals
9.
Issued Capital
(a) Issued and paid up capital
Issued and fully paid 618,535,366 (2022: 556,404,810)
Converting preference shares 2,006 (2022: 2,006)
2023
$
2022
$
50,286
35,683
85,969
28,893
29,432
58,325
36,669,535
800
36,670,335
35,690,762
800
35,691,562
30 June 2023
30 June 2022
No.
$
No.
$
(b) Movements in ordinary shares on issue
Opening balance
Shares issued via $0.018 placement
Conversion of Unlisted Options - $0.025
Shares issued as consideration for acquisition
Conversion of Performance Options
Shares issued to Project Manager - $0.0001
Shares issued to Managing Director
Shares issued via $0.018 placement
Shares issued as consideration for acquisition
Transaction costs on share issue
Closing balance
556,404,810
-
-
-
-
3,575,000
4,000,0001
30,555,556
24,000,0002
-
618,535,366
35,690,762
-
-
-
-
358
62,000
550,000
432,000
(65,585)3
404,780,962
24,743,807
42,138,375
83,333,3334
333,333
1,075,000
-
-
-
-
36,669,535 556,404,810
32,085,271
445,389
1,053,459
2,166,667
3
108
-
-
-
(60,135)
35,690,762
1 4,000,000 shares were issued to Gautam Varma during the year for nil consideration.
2 24,000,000 shares were granted to the vendors of the Mt Tremblant Lithium Projects on 2 May 2023 at a
deemed issue price of $0.018 as consideration for the acquisition of the projects in Quebec, Canada.
3 Includes the value of 6,000,000 million options issued to brokers during the year ($32,585).
4 83,333,333 shares were granted to North West Solar Salt Pty Ltd on 6 July 2021 at a deemed issue price of
$0.026 as consideration for the acquisition of the Sol Mar Project Tenements.
Fully paid ordinary shares carry one vote per share and carry the rights to dividends.
(c) Movements in converting preference shares
Opening balance
Closing balance
30 June 2023
30 June 2022
No.
2,006
2,006
$
800
800
No.
2,006
2,006
$
800
800
The converting preference shares do not have any voting rights but are entitled to the payment of a dividend.
The conversion terms for these shares have now expired.
(d) Capital risk management
The Group’s capital comprises share capital, reserves less accumulated losses amounting to a net equity of
$5,728,361 at 30 June 2023 (2022: $7,240,156). The Group manages its capital to ensure its ability to continue
as a going concern and to optimise returns to its shareholders. The Group was ungeared at year end and not
subject to any externally imposed capital requirements. Refer to note 15 for further information on the Group’s
financial risk management policies.
Fin Resources Limited
27
2023 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2023
(e) Share Options
As at 30 June 2023 there were 106,227,778 unissued ordinary shares under options. The details of these
securities are as follows:
Type
Exercise
price $
Expiry
date
Opening
balance
Issued
during
the year
Converted
during
the year
Expired/
lapsed
during
the year
Closing
balance
$0.018 30-Jun-24 63,500,000
-
-
- 63,500,000
$0.00001
5-Jul-26 17,500,000
-
-
- 17,500,000
Unlisted Options
Performance
Options
Performance
Options
Unlisted Options
$0.03 17-Apr-25
$0.00001
7-Feb-27 22,500,000
-
- 25,277,7781
- (22,500,000)
-
-
- 25,277,778
103,500,000 25,277,778
- (22,500,000) 106,227,778
1 The Company completed a placement of 30,555,556 shares at $0.018 per share to raise A$550,000. Each
share had a free attaching option (1:2 basis) with an exercise price of $0.03 and an expiry of 17 April 2025.
The total free attaching options issued was 15,277,778. The Company also issued 10,00,000 options on the
same terms, to lead managers and advisors (refer note 18(c)).
No holder has any right under the options or performance rights to participate in any other share issue of
the Company or any other entity.
10. Reserves
Option, performance rights, share based payments and option premium
reserves
5,763,477
5,862,379
2023
$
2022
$
Movements in Reserves
Opening balance
Transfer to retained earnings following option expiry
Share-based payments (note 18 (a))
Closing balance
5,862,379
(257,796)
158,894
5,763,477
2,859,138
-
3,003,241
5,862,379
The share based payments reserve arises on the grant of share options to Directors, Executives and senior
employees as part of their remuneration, to consultants for services provided and as consideration for project
acquisitions (refer to note 18). Further information about share-based payments to employees is made in the
remuneration report. This reserve also includes subscription proceeds from options.
11. Accumulated losses
Movements in accumulated losses were as follows:
Opening balance
Transfer to retained earnings following option expiry
Loss for the year
Closing balance
12. Auditor’s Remuneration
The auditor of Fin Resources Limited is Stantons
Amounts paid or due and payable for:
- an audit or review of the financial report
(34,313,785)
257,796
(2,649,462)
(36,705,451)
(29,298,713)
-
(5,015,072)
(34,313,785)
42,500
38,300
Fin Resources Limited
28
2023 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2023
2023
$
2022
$
13. Key Management Personnel Disclosures
(a) Remuneration of Key Management Personnel
Details of the nature and amount of each element of the emolument of each Director and Executive of the
Company for the financial year are as follows:
Short term employee benefits
Share-based payments
Other employee expense (superannuation)
Total remuneration
705,320
151,087
31,245
887,652
706,903
563,707
31,465
1,302,075
Transactions with key management personnel were made at arm’s length at normal market prices and normal
commercial terms. There were no other transactions with key management personnel for the year ended 30
June 2023.
(b) Subsidiaries
The consolidated financial statements include the financial statements of Fin Resources Limited and the
subsidiaries listed in the following table:
Name of Entity
Komodo Energy Pty Ltd
Sol Mar Holdings Pty Ltd (formerly Crestwood Pty Ltd)
Sugarbay Investments Pty Ltd
Stirling One Metals Limited
Fin Resources (Canada) Ltd
Country of
Incorporation
Australia
Australia
Australia
Australia
Canada
Equity Holding
30 June 2023
30 June 2022
100%
100%
100%
100%
100%
100%
100%
100%
100%
-
(c) Loans to/from related parties
There were no loans made or outstanding to Directors of Fin Resources and other key management personnel
of the Group, including their personally related parties.
14.
Loss per Share
Basic Loss per share amounts are calculated by dividing net loss for the year attributable to ordinary equity
holders of the parent by the weighted average number of ordinary shares outstanding during the year. The
following reflects the loss and share data used in the basic and diluted earnings per share computations:
Loss attributable to owners of the parent
Weighted average number of ordinary shares used in calculating basic
loss per share:
Effect of dilution:
Share options
Adjusted weighted average number of ordinary shares used in
calculating diluted loss per share:
2023
$
(2,649,462)
2022
$
(5,015,072)
Number of Shares
571,270,637
555,566,028
-
-
571,270,637
555,566,028
Fin Resources Limited
29
2023 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2023
Loss per share
From continuing operations (cents)
2023
2022
(0.46)
(0.90)
There have been no other transactions involving ordinary shares or potential ordinary shares since the
reporting date and before the completion of these financial statements.
15.
Financial Risk Management
The Group does not enter into or trade financial instruments, including derivative financial instruments, for
speculative purposes. The use of financial derivatives is governed by the Group’s policies approved by the
Board of Directors, which provide written principles on the use of financial derivatives.
Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the
basis of measurement and the basis on which income and expenses are recognised, in respect of each class of
financial asset, financial liability and equity instrument are disclosed in note 2 to the consolidated financial
statements.
(a) Liquidity Risk
The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing
facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of
financial assets and liabilities. The Group does not have non-current financial liabilities.
(b) Interest Rate Risk
Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair
value of financial instruments. The Group’s exposure to market risk for changes to interest rate risk relates
primarily to its earnings on cash. The Group manages the risk by investing in short term deposits.
Interest rate sensitivity
The following table demonstrates the sensitivity of the Group’s consolidated statement of profit or loss and
other comprehensive income to a reasonably possible change in interest rates, with all other variables
constant.
Change in Basis Points
Increase 75 basis points
Decrease 75 basis points
Effect on Post Tax Loss ($)
Increase/(Decrease)
2022
2023
Effect on Equity including
retained earnings ($)
Increase/(Decrease)
2022
2023
17,024
(17,024)
25,455
(25,455)
17,024
(17,024)
25,455
(25,455)
A sensitivity of 75 basis points has been used as this is considered reasonable given the current level of both
short term and long-term Australian Dollar interest rates. The change in basis points is derived from a review
of historical movements and management’s judgement of future trends.
(c) Credit Risk Exposures
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial
loss to the Group. The Group has adopted the policy of dealing with creditworthy counterparties and obtaining
sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from
defaults. The Group measures credit risk on a fair value basis. The Group does not have any significant credit
risk exposure to a single counterparty or any group of counterparties having similar characteristics. The
carrying amount of financial assets recorded in the consolidated financial statements, net of any provisions for
losses, represents the Group’s maximum exposure to credit risk without taking account of the fair value of any
collateral or other security obtained.
Fin Resources Limited
30
2023 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2023
Cash and cash equivalents AA
Trade and other receivables
Other financial assets
(d) Capital Risk Management
2023
$
2,269,837
45,232
100
2,315,169
2022
$
3,394,010
35,115
100
3,429,225
When managing capital, management’s objective is to ensure the entity continues as a going concern as well
as to maintain optimal returns to shareholders and benefits for other stakeholders. Management also aims to
maintain a capital structure that ensures the lowest cost of capital available to the entity. In order to maintain
or adjust the capital structure, the entity may adjust the amount of dividends paid to shareholders, return
capital to shareholders, issue new shares, enter into joint ventures or sell assets. There is no current intention
to incur debt funding on behalf of the Company as on-going exploration expenditure will be funded via cash
reserves, equity or joint ventures with other companies. The Company is not subject to any externally imposed
capital requirements.
(e) Foreign exchange risk
The Group operated in Australia in the year ended 30 June 2023 and had no exposure to foreign exchange risk.
(f) Fair value estimation
The Directors consider that the carrying amount of financial assets and financial liabilities recorded in the
financial statements approximates their fair value. The Group has performed sensitivity analysis that
demonstrates the effect on the current year results and equity which could result from a change in these risks.
Financial risk management objectives
The Group’s corporate treasury function provides services to the business, co-ordinates access to domestic and
international financial markets, monitors and manages the financial risks relating to the operations of the
Group through internal risk reports which analyse exposures by degree and magnitude of risks. These risks
include market risk (including currency risk, fair value interest rate risk and price risk), credit risk, liquidity risk
and cash flow interest rate risk.
2023 Financial Assets
Financial assets at fair value through profit and loss
2022 Financial Assets
Financial assets at fair value through profit and loss
Level 1 ($)
Level 2 ($)
Level 3 ($)
Total ($)
100
100
100
100
-
-
-
-
-
-
-
-
100
100
100
100
Included within Level 1 of the hierarchy are listed investments. The fair values of these financial assets have
been based on the closing quoted prices at reporting date, excluding transaction costs.
16. Dividends
No dividend was paid or declared by the Company in the year ended 30 June 2023 or the year since the end of
the financial year and up to the date of this report. The Directors do not recommend that any amount be paid
by way of dividend for the financial year ended 30 June 2023.
17. Contingent Liabilities and Contingent Assets
On 7 July 2021, the Company advised that it had completed the acquisition of NOSSP from NWSS. Upon
completion of the acquisition, the Group assumed the obligation to pay a 1% gross revenue royalty to the
extent of its 80% joint venture interest in NOSSP. The Directors are not aware of any other contingent liabilities
or contingent assets at the reporting date.
Fin Resources Limited
31
2023 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2023
In May 2023, Fin completed the acquisition of a 100% interest in the Mt Tremblant Lithium Projects, comprised
of the Cancet West, Ross and the Gaspe Lithium Projects located in Quebec, Canada. As consideration for the
acquisition for a 100% interest, Fin:
issued 24,000,000 fully paid ordinary shares under Listing Rule 7.1 to the Vendor (or their nominee/s); and
▪
▪ paid A$150,000 cash.
The following will also be payable, subject to the relevant technical performance milestone being met within
the timeframe:
Tranche Value of Shares
1
A$375,000 worth of
FIN Shares at the
deemed issue price
2
3
A$375,000 worth of
FIN Shares at the
deemed issue price
A$500,000 worth of
FIN Shares at the
deemed issue price
Milestone
FIN announcing to the ASX geochemistry exploration
results which report one or more results of 2% Li2O
grade per tonne or higher in Spodumene or Pegmatites
(1000ppm for clay) in respect of the Tenements
FIN announcing to the ASX drilling results which report at
least one drill intercept result of greater than 10 metres
at 1% or more Li2O per tonne in respect of the
Tenements
FIN announcing to the ASX an inferred mineral resource
of at least 10 million tonnes at >1% Li2O or more
contained within the Tenements
End Date
24 months
after
completion
24 months
after
completion
48 months
after
completion
* The deemed issue price for each tranche of FIN Shares is proposed to be equal to the 30-day VWAP of FIN Shares
up to the date on which the relevant milestone is met. These FIN Shares will be issued subject to shareholder
approval being obtained under Listing Rule 7.1. If shareholder approval is not obtained, the relevant milestone
value of FIN Shares will be paid in cash.
18.
Share-Based Payments
(a) Recognised share-based payment transactions
Share-based payment transactions recognised either as operational expenses in the consolidated statement
of profit or loss and other comprehensive income or as capitalised project acquisition costs in equity during
the year were as follows:
Employee, Consultant and Director share-based payments (note 18 (b))
Share-based payments to suppliers (note 18 (c))
Movement in share option reserve
Shares issued to Managing Director1 (note 9(b))
Total share-based payments expense
2023
$
89,087
37,222
126,309
62,000
188,309
2022
$
674,743
2,327,893
3,002,636
-
3,002,636
1 The following shares were issued to the Managing Director, Gautam Varma, for nil consideration:
Date
29/07/2022
24/01/2023
Number
2,000,000
2,000,000
4,000,000
Deemed Issue Price
$0.015
$0.016
Value ($)
30,000
32,000
62,000
Continued Service
Hurdle
6 months
12 months
Share-based payment transactions arising from the issuance of options that have been recognised within
reserves in the consolidated statement of financial positions as follows:
Fin Resources Limited
32
2023 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2023
Share-based payment expense (as above)
Share-based payment to suppliers (note 18(c))
Transferred to retained earnings following option expiry
Share-based payments recognised in reserves
2023
$
126,309
32,585
(257,796)
(98,902)
2022
$
3,002,636
-
3,002,636
(b) Employee, Consultant and Director share-based payments
The fair value at grant date of options was determined using either the Black-Scholes option pricing model, the
Monte Carlo simulation methodology, or the barrier up-and-in trinomial pricing model with a Parisian barrier
adjustment. These methodologies all take into account the exercise price, the term of the option, the share
price at grant date, the expected price volatility of the underlying share and the risk-free interest rate for the
term of the option.
There were no options granted to Employees, Consultants or Directors during the year ended 30 June 2023.
The expense recognised during the year with respect to options granted in prior periods was $89,087.
The table below summarises options granted during the year ended 30 June 2022:
Grant
Date
Expiry
date
Exercise
price per
option
$
30/06/21 30/06/24
0.018
30/06/21 05/07/26 0.00001
17/01/22 7/02/27 0.00001
29/11/21 5/07/26 0.00001
Granted
Balance at
during the
start of
year
the year
Number
Number
-
3,500,000
- 11,500,000
- 22,500,000
-
7,500,000
- 45,000,000
Exercised
during the
year
Number
-
(333,333)
-
-
(333,333)
Expired /
lapsed
during
the year
Number
Balance at
end of the
year
Number
3,500,000
(1,166,667) 10,000,000
- 22,500,000
7,500,000
-
(1,166,667) 43,500,000
-
Exercisable
at end of
the year
Number
3,500,000
3,333,3341
-2
-2
6,834,000
1 The Options will vest as follows:
Class
A
Percentage that vests
33.34%
B
C
33.33%
33.33%
2 The Options will vest as follows:
Class
A
Percentage that vests
33.34%
B
C
33.33%
33.33%
Vesting condition
The volume weighted average price of Company shares is at least
$0.036 for 5 consecutive Trading Days.
The volume weighted average price of Company shares is at least
$0.054 for 5 consecutive Trading Days.
The volume weighted average price of Company shares is at least
$0.072 for 5 consecutive Trading Days.
Vesting condition
The volume weighted average price of Company shares is at least
$0.054 for 5 consecutive Trading Days.
The volume weighted average price of Company shares is at least
$0.072 for 5 consecutive Trading Days.
The volume weighted average price of Company shares is at least
$0.09 for 5 consecutive Trading Days.
In addition to the above conditions, 50% of the Performance Options will vest following completion of 12
months of continued service as a director and the remaining 50% will vest following completion of 24 months
of continued service as a director.
Fin Resources Limited
33
2023 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2023
The expense recognised in respect of the above options granted in the prior year was $674,743. The value
per option issued was as follows:
Number
3,500,000
11,500,000
22,500,000
7,500,000
45,000,000
Exercise price
$0.018
$0.00001
$0.00001
$0.00001
Value per option issued
Expense recognised
$0.037
ranging from $0.041 to $0.043
ranging from $0.033 to $0.035
ranging from $0.025 to $0.027
$129,348
$202,253
$257,795
$85,347
$674,743
The model inputs, not included in the table above, for options granted during the year included:
share price at grant date ranging from $0.044 to $0.046;
a) options were granted for nil consideration;
b) expected life of the options ranging from 3 to 5 years;
c)
d) expected volatility ranging from 95% to 129%;
e) expected dividend yield of nil; and
f)
a risk-free interest rate ranging from 0.21% to 0.77%.
(c) Share-based payment to suppliers
During the year, the Company issued unlisted options to provide consideration to advisors for services
rendered. These options have been valued using the Black-Scholes option pricing model. The table below
summarises options granted during the year ended 30 June 2023:
Grant Date Expiry date
29/03/2023 17/04/2025
17/04/2023 17/04/2025
Exercise
price per
option
$
0.03
0.03
Granted
Balance at
during the
start of
year
the year
Number
Number
4,000,0001
-
6,000,0002
-
- 10,000,000
1 The value per option issued was $0.0081.
2 The value per option issued was $0.0062.
Exercised
during the
year
Expired
during the
year
Balance at
end of the
year
Number
Number Number
4,000,000
-
-
6,000,000
- 10,000,000
-
-
-
Exercisable at
end of the
year
Number
4,000,000
6,000,000
10,000,000
The expense recognised in respect of the 4,000,000 options granted to the lead manager in relation to the
capital raising during the year was $32,585. This amount was recognised as a capital raising cost.
The expenses recognised in respect of the 6,000,000 options granted to advisors during the year was $37,222.
This amount was recognised as a share-based payment expense.
The model inputs, not included in the table above, for options granted during the year included:
share price at grant date ranging from $0.016 to $0.019;
a) options were granted for nil consideration;
b) expected life of the options of 2 years;
c)
d) expected volatility of 100%;
e) expected dividend yield of nil; and
f)
a risk-free interest rate ranged of 3.75%
Fin Resources Limited
34
2023 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2023
The table below summarises options granted to advisors for services rendered during the year ended 30 June
2022.
Grant Date Expiry date
Exercise
price per
option
$
Balance at
start of
the year
Number
Granted
during the
year
Number
Exercised
during the
year
Expired
during the
year
Number Number
Balance at
end of the
year
Number
06/07/2021 30/06/2024 0.018
- 60,000,000
-
- 60,000,000
Exercisable at
end of the
year
Number
60,000,000
The value per option issued was $0.0366. The expense recognised in respect of the above options in the prior
year was $2,327,893.
The model inputs, not included in the table above, for options granted during the prior year included:
a) options were granted for nil consideration;
b) expected life of the options of 3 years;
c)
share price at grant date of $0.046;
d) expected volatility of 129%;
e) expected dividend yield of nil; and
f)
a risk-free interest rate ranged of 0.21%
19. Parent Entity Information
The following details information related to the parent entity, Fin Resources Limited, at 30 June 2023. The
information presented here has been prepared using consistent accounting policies as presented in note 2.
Current assets
Total assets
Current liabilities
Total liabilities
Net assets
Issued capital
Reserves
Accumulated losses
Loss of the parent entity
Other comprehensive income for the year
Total comprehensive loss of the parent entity
2023
$
2,329,067
5,838,369
(110,008)
(110,008)
5,728,361
36,670,335
5,763,477
(36,705,451)
5,728,361
(2,649,462)
-
(2,649,462)
2022
$
3,455,685
7,308,097
(67,941)
(67,941)
7,240,156
35,691,562
5,862,379
(34,313,785)
7,240,156
(5,015,072)
-
(5,015,072)
The parent company has not provided any guarantees and does not have any other commitments or
contingent assets or liabilities that are not disclosed elsewhere in the financial report.
20.
Segment Information
The Group has identified its operating segments based on the internal reports that are reported to the Board
(the chief operating decision makers) in assessing performance and in determining the allocation of resources.
The Board as a whole will regularly review the identified segments in order to allocate resources to the segment
and to assess its performance.
Fin Resources Limited
35
2023 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2023
The Group operates predominately in one industry, being the exploration of minerals. The main geographic
areas that the entity operates in are Australia and Canada. The parent entity is registered in Australia. The
Group has exploration assets located in Canada. The following table presents revenue, expenditure and certain
asset and liability information regarding geographical segments for the year ended 30 June 2023. There were
no operating segments for the year ended 30 June 2022.
Year ended 30 June 2023
Other income
Interest income
Segment revenue
Result
Loss before tax
Income tax expense
Loss for the year
Asset and liabilities
Segment assets
Segment liabilities
21. Commitments
Australia
Canada
$
$
Total
$
-
70,333
70,333
(2,649,462)
-
(2,649,462)
-
-
-
-
-
-
-
70,333
70,333
(2,649,462)
-
(2,649,462)
5,142,822
110,008
695,547
-
5,838,369
110,008
In order to maintain an interest in the exploration tenements in which the Group is involved, the Group is
committed to meet the conditions under which the tenements were granted and the obligations of any joint
venture agreements. The timing and amount of exploration expenditure commitments and obligations of the
Group are subject to the minimum expenditure commitments required as per the Mining Act, as amended, and
may vary significantly from the forecast based upon the results of the work performed which will determine
the prospectivity of the relevant area of interest.
These obligations are not provided for in the financial report and are payable. The annual minimum
expenditure commitment on the Group’s tenements is $575,938.
22.
Subsequent Events
On 18 July 2023, the Company issued 2,500,000 shares to Mr James Barrie (Project Director) following twenty-
four months of continued service.
Other than the above, there are no other significant events subsequent to the end of the financial year to
the date of this report, which significantly affect the operations of the Group, the results of those operations
or the state of affairs of the Group in future financial years.
Fin Resources Limited
36
2023 Annual Report to Shareholders
Directors’ Declaration
In accordance with a resolution of the Directors of Fin Resources Limited, state that:
1. In the opinion of the Directors:
a) the consolidated financial statements and notes of Fin Resources Limited and its subsidiaries (the
“Group”) for the year ended 30 June 2023 are in accordance with the Corporations Act 2001, including:
i.
ii.
giving a true and fair view of the Group’s consolidated financial position as at 30 June 2023 and
of its performance for the year ended on that date; and
complying with Accounting Standards (including the Australian Accounting Interpretations), the
Corporations Regulations 2001 and other mandatory professional reporting requirements; and
b) the consolidated financial statements and notes also comply with International Financial Reporting
Standards as disclosed in note 2.
2. There are reasonable grounds to believe that the Group will be able to pay its debts as and when they
become due and payable.
3. This declaration has been made after receiving the declarations required to be made by the Directors in
accordance with sections of 295A of the Corporations Act 2001 for the financial year ended 30 June 2023.
On behalf of the Board
Aaron Bertolatti
Director and Company Secretary
Perth, Western Australia
6 September 2023
Fin Resources Limited
37
2023 Annual Report to Shareholders
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
6 September 2023
Board of Directors
Fin Resources Limited
Level 1, 35 Richardson Street
West Perth, WA 6005
Dear Directors
RE:
FIN RESOURCES LIMITED
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following
declaration of independence to the directors of Fin Resources Limited.
As Audit Director for the audit of the financial statements of Fin Resources Limited for the year ended 30
June 2023, I declare that to the best of my knowledge and belief, there have been no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
Yours sincerely
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Martin Michalik
Director
Liability limited by a scheme approved under Professional Standards Legislation
Stantons Is a member of the Russell
Bedford International network of firms
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
FIN RESOURCES LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Fin Resources Limited (“the Company”) and its subsidiaries (“the
Group”), which comprises the consolidated statement of financial position as at 30 June 2023, the consolidated
statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity
and the consolidated statement of cash flows for the year then ended, and notes to the consolidated financial
statements, including a summary of significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its financial
performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Company in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards
Board's APES 110: Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
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.
Liability limited by a scheme approved under Professional Standards Legislation
Stantons Is a member of the Russell
Bedford International network of firms
Key Audit Matters
How the matters were addressed in the audit
Carrying Value of Exploration and Evaluation
Assets
As at 30 June 2023, capitalised exploration and
evaluation expenditure amounted to $3,509,302
(refer to Note 7).
The carrying value of
the exploration and
evaluation expenditure is a key audit matter due
to:
▪
▪
▪
the significance of the total balance (60% of
total assets);
the level of judgment required in evaluating
management’s
the
requirements of AASB 6 Exploration for and
Evaluation of Mineral Resources; and
application
of
the greater level of audit effort to evaluate the
Group’s application of the requirement of
AASB 6 and assessment of impairment
indicators which
involved management
judgment.
Measurement of Share-based Payments
For the financial year ended 30 June 2023, a
share-based payment expense totalling $188,308
was recognised by the Group (refer to Note 18).
The Company awarded share-based payments in
the form of share options. The awards vest subject
to the achievement of certain vesting conditions.
Measurement of share-based payments was a key
audit matter due to the complex and judgmental
estimates used in determining the fair value of the
share-based payments.
Inter alia, our audit procedures included the
following:
i. Assessing the management’s determination of
its areas of interest to ensure consistency with
the definition in AASB 6;
ii. Assessing the Group’s accounting policy for
compliance with AASB 6;
iii. Agreeing, on a sample basis, the capitalised
exploration and evaluation expenditure
to supporting
incurred during
the year
documentation and assessing
these
expenditures incurred in accordance with the
the
Group’s
requirements of AASB 6;
accounting
policy
that
and
iv. Obtaining evidence that the Group has valid
rights to explore in the areas represented by
the capitalised exploration and evaluation
expenditure;
v. Evaluating that there had been indicators of
impairment during the current period with
reference to the requirements of AASB 6 and
that allowance
impairment has been
provided for as necessary; and
for
vi. Assessing
the appropriateness of
the
disclosures in Note 7 to the consolidated
financial statements.
Inter alia, our audit procedures included the
following:
i. Assessing the relevant agreements to obtain
an understanding of the contractual nature
and terms and conditions of the share-based
payment arrangements;
ii. Assessing
the assumptions used
the
Group’s valuation of share options being the
share price of the underlying equity, interest
rate, volatility, dividend yield, time to maturity
(expected life) and grant date;
in
iii. Assessing the allocation of the share-based
payment expense over the relevant period;
and
iv. Assessing
the appropriateness of
the
disclosures in Note 18 to the consolidated
financial statements.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Group’s annual report for the year ended 30 June 2023 but does not include the financial report and our
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance opinion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial report.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of material
misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity's internal control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report.
We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause
the Group to cease to continue as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in Internal control that we identify during our
audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements.
We also provide the Directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore key audit matters. We describe these
matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 8 to 12 of the directors’ report for the year ended
30 June 2023.
In our opinion, the Remuneration Report of Fin Resources Limited for the year ended 30 June 2023 complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on
the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Martin Michalik
Director
West Perth, Western Australia
6 September 2023
ASX Additional Information
Additional information required by the Australian Stock Exchange Ltd and not shown elsewhere in this report
is as follows. The information is current at 25 August 2023.
Distribution of Share Holders
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - and over
TOTAL
Number of Holders
69
100
60
684
376
1,289
Ordinary Shares
Number of Shares
13,669
312,525
472,082
24,784,006
595,453,084
621,035,366
%
0.002
0.05
0.076
3.991
95.881
100
There were 654 holders of ordinary shares holding less than a marketable parcel.
Top Twenty Share Holders
The names of the twenty largest holders of quoted equity securities are listed below:
Name
North West Solar Salt Pty Ltd
Jalaver Pty Ltd
J & J Bandy Nominees Pty Ltd
10 Bolivianos Pty Ltd
Ms Nicole Gallin + Mr Kyle Haynes
J & J Bandy Nominees Pty Ltd
Ten Bricks Pty Ltd
Surf Coast Capital Pty Ltd
Mr Richard De Franck + Mrs Janet De Franck
Zessham Pty Ltd
Max Cap Investments Pty Ltd
Mr Stephen John Dobson
Sammy Resources Pty Ltd
Beemuh Holdings Pty Ltd
Strata Nominees Pty Ltd
Jordash Investments Pty Ltd
Mr Richard Alexander Andrew De Franck
Helmet Nominees Pty Ltd
Mr James Barrie
Mr Gregory Robert Hackshaw
Total Top Twenty Share Holders
Substantial Shareholders
Name
North West Solar Salt Pty Ltd
Jalaver Pty Ltd
On-Market Buy Back
There is no current on-market buy back.
Shares
63,918,364
42,499,999
28,666,667
17,832,135
16,500,000
14,666,666
12,000,000
11,333,335
11,111,111
10,000,000
9,770,000
8,775,537
8,000,000
7,500,000
7,000,000
7,000,000
6,968,333
6,622,223
5,775,000
5,500,000
301,439,370
%
10.29
6.84
4.62
2.87
2.66
2.36
1.93
1.82
1.79
1.61
1.57
1.41
1.29
1.21
1.13
1.13
1.12
1.07
0.93
0.89
48.54
Shares
63,918,364
42,499,999
%
10.29
6.84
Voting Rights
All ordinary shares carry one vote per share without restriction. Options have no voting rights.
Fin Resources Limited
43
2023 Annual Report to Shareholders
ASX Additional Information
Use of Proceeds
In accordance with listing rule 4.10.19, the Company confirms that it has used cash and assets in a form readily
convertible to cash in a way consistent with its business objectives during the financial year ended 30 June
2023.
Unquoted Equity Securities
Options
Number
Class
Holders with more than 20%
63,500,000 Options over ordinary shares exercisable at
- Jalaver Pty Ltd
$0.018 on or before 30 June 2024.
16,000,000 options
17,500,000 Performance Options over ordinary shares
exercisable at $0.00001 on or before 5 July 2026.
- Strata Nominees Pty Ltd 10,000,000
options
- R-Tek Group Pty Ltd 7,500,000 options
25,277,778 Unlisted Options over ordinary shares
- 10 Bolivianos Pty Ltd 7,875,000 options
exercisable at $0.03 on or before 17 April 2025.
Fin Resources Limited
44
2023 Annual Report to Shareholders
Tenements and Project Locations
FIN Resources Limited Tenements
Australia
Tenement
E80/4808
E08/2831
E08/2832
E08/2868
E08/3069
E08/3070
E08/3071
E08/3354
E08/3355
E08/3423
Location
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Area
81.6km2
140km2
153km2
64km2
38km2
19km2
10km2
111km2
271km2
99km2
Structure
Granted
Granted
Granted
Granted
Pending application
Granted
Granted
Granted
Granted
Pending application
Notes:
* Subject to grant of the tenement and receipt of ministerial consent to the transfer of the 80% from North West Solar Salt
Pty Ltd.
** Transfer of tenement from North West Solar Salt Pty Ltd awaiting ministerial consent (see the Company’s ASX
announcement dated 7 January 2022).
km2 – Square Kilometres
Canada
Project
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Title No
2724252
2724253
2724254
2724255
2724256
2724257
2724258
2724259
2724260
2724261
2724262
2724263
2724264
2724265
2724266
2724267
2724268
2724269
2724270
2724271
2724272
2724273
2724274
2724275
2724276
2724277
2724278
2724279
2724280
2724281
2724282
2724283
2724284
Status
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Expiry Date Area (Ha)
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
53
53
53
53
53
53
53
53
52,99
52,99
52,99
52,99
52,99
52,99
52,99
52,99
52,98
52,98
52,98
52,98
52,98
52,98
52,98
52,98
52,97
52,97
52,97
52,97
52,97
52,97
52,97
52,97
52,97
Project
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Title No
2724285
2724286
2724287
2724288
2724289
2724290
2724291
2724292
2724293
2724294
2724295
2724296
2724297
2724298
2724299
2724300
2724301
2724302
2724303
2724304
2724305
2724306
2724307
2724308
2724309
2724310
2724311
2724312
2724313
2724314
2724315
2724316
2724317
Status
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Expiry Date Area (Ha)
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
52,97
52,97
52,97
52,97
52,97
52,97
52,96
52,96
52,96
52,96
52,96
52,96
52,96
52,96
52,96
52,96
52,95
52,95
52,95
52,95
52,95
52,95
52,95
52,95
52,95
52,95
52,95
52,95
52,94
52,94
52,94
52,94
52,94
Fin Resources Limited
45
2023 Annual Report to Shareholders
Project
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Title No
2727505
2727506
2727507
2727508
2727509
2727510
2727511
2727512
2727513
2727514
2727515
2727516
2727517
2727518
2727519
2727520
2727521
2727522
2727523
2727524
2727525
2727526
2727527
2727528
2727529
2727530
2727531
2727532
2736731
2736732
2736733
2736734
Status
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Expiry Date Area (Ha)
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
15/02/2026
15/02/2026
15/02/2026
15/02/2026
52,91
52,96
52,96
52,95
52,95
52,94
52,94
52,94
52,93
52,93
52,93
52,93
52,93
52,93
52,93
52,93
52,92
52,92
52,92
52,92
52,92
52,92
52,92
52,92
52,92
52,91
52,91
52,91
52,99
52,98
52,98
52,98
Tenements and Project Locations
Project
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Ross
Title No
2724318
2724319
2724320
2724321
2724322
2724323
2724324
2724325
2724326
2724327
2724328
2724329
2724330
2724331
2724332
2724333
2724334
2724335
2724336
2724337
2724338
2724339
2724340
2724341
2724342
2724343
2724344
2724345
2724346
2724347
2724348
2724349
2724350
2724351
2724352
2724353
2724354
2724355
2727484
2727485
2727486
2727487
2727488
2727489
2727490
2727491
2727492
2727493
2727494
2727495
2727496
2727497
2727498
2727499
2727500
2727501
2727502
2727503
2727504
Status
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Expiry Date Area (Ha)
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
06/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
08/02/2026
52,94
52,94
52,94
52,94
52,93
52,93
52,93
52,93
52,93
52,93
52,92
52,92
52,96
52,96
52,96
52,96
52,96
52,96
52,96
52,95
52,95
52,95
52,95
52,95
52,95
52,95
52,95
52,94
52,94
52,94
52,94
52,94
52,94
52,93
52,92
52,91
52,91
52,91
52,97
52,96
52,96
52,96
52,96
52,95
52,95
52,95
52,94
52,94
52,97
52,97
52,97
52,96
52,95
52,95
52,95
52,95
52,94
52,94
52,91
Fin Resources Limited
46
2023 Annual Report to Shareholders
Tenements and Project Locations
Project
Title No Status Expiry Date
Project
Title No Status Expiry Date
Cancet West (W) 2727954 Active
Cancet West (W) 2727955 Active
Area
(Ha)
08/02/2026
51,2
08/02/2026 51,19
Project
Gaspe
Gaspe
Gaspe
Gaspe
Gaspe
Gaspe
Gaspe
Gaspe
Gaspe
Gaspe
Gaspe
Gaspe
Gaspe
Gaspe
Gaspe
Gaspe
Gaspe
Gaspe
Gaspe
Gaspe
Gaspe
Gaspe
Gaspe
Title No
2633303
2633304
2633305
2633306
2633307
2633308
2633309
2633310
2633311
2633312
2633313
2633314
2633315
2633316
2633317
2633318
2633319
2633650
2633651
2633652
2633653
2633654
2633655
Status
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Expiry Date
16/01/2025
16/01/2025
16/01/2025
16/01/2025
16/01/2025
16/01/2025
16/01/2025
16/01/2025
16/01/2025
16/01/2025
16/01/2025
16/01/2025
16/01/2025
16/01/2025
16/01/2025
16/01/2025
16/01/2025
23/01/2025
23/01/2025
23/01/2025
23/01/2025
23/01/2025
23/01/2025
Area
(Ha)
56,42
56,42
56,42
56,42
56,41
56,41
56,4
56,4
56,4
56,4
56,39
56,39
56,39
56,39
56,39
56,38
56,38
56,42
56,41
56,41
56,41
56,4
56,4
2726037 Active
Cancet West (E)
2726038 Active
Cancet West (E)
2726039 Active
Cancet West (E)
2726040 Active
Cancet West (E)
2726041 Active
Cancet West (E)
2726042 Active
Cancet West (E)
2726043 Active
Cancet West (E)
2726044 Active
Cancet West (E)
2726045 Active
Cancet West (E)
2726046 Active
Cancet West (E)
2726047 Active
Cancet West (E)
2726048 Active
Cancet West (E)
2726049 Active
Cancet West (E)
2726050 Active
Cancet West (E)
2726051 Active
Cancet West (E)
2726052 Active
Cancet West (E)
2726053 Active
Cancet West (E)
2726054 Active
Cancet West (E)
2726055 Active
Cancet West (E)
2726056 Active
Cancet West (E)
2726057 Active
Cancet West (E)
2726058 Active
Cancet West (E)
2726059 Active
Cancet West (E)
2726060 Active
Cancet West (E)
2726061 Active
Cancet West (E)
2726062 Active
Cancet West (E)
2726063 Active
Cancet West (E)
2726064 Active
Cancet West (E)
2726065 Active
Cancet West (E)
2726066 Active
Cancet West (E)
2726067 Active
Cancet West (E)
2726068 Active
Cancet West (E)
2726069 Active
Cancet West (E)
2726070 Active
Cancet West (E)
2726071 Active
Cancet West (E)
2726072 Active
Cancet West (E)
2726073 Active
Cancet West (E)
2726074 Active
Cancet West (E)
2726075 Active
Cancet West (E)
2726076 Active
Cancet West (E)
2726077 Active
Cancet West (E)
2726078 Active
Cancet West (E)
2726079 Active
Cancet West (E)
2726080 Active
Cancet West (E)
2726081 Active
Cancet West (E)
2726082 Active
Cancet West (E)
Cancet West (W) 2727942 Active
Cancet West (W) 2727943 Active
Cancet West (W) 2727944 Active
Cancet West (W) 2727945 Active
Cancet West (W) 2727946 Active
Cancet West (W) 2727947 Active
Cancet West (W) 2727948 Active
Cancet West (W) 2727949 Active
Cancet West (W) 2727950 Active
Cancet West (W) 2727951 Active
Cancet West (W) 2727952 Active
Cancet West (W) 2727953 Active
Area
(Ha)
07/02/2026
51,2
07/02/2026 51,19
07/02/2026 51,19
07/02/2026 51,19
07/02/2026 51,19
07/02/2026 51,18
07/02/2026 51,18
07/02/2026 51,18
07/02/2026 51,18
07/02/2026 51,18
07/02/2026 51,18
07/02/2026 51,17
07/02/2026 51,17
07/02/2026 51,17
07/02/2026 51,17
07/02/2026 51,17
07/02/2026 51,17
07/02/2026 51,16
07/02/2026 51,16
07/02/2026 51,21
07/02/2026 51,21
07/02/2026 51,21
07/02/2026 51,21
07/02/2026 51,21
07/02/2026 51,21
51,2
07/02/2026
51,2
07/02/2026
51,2
07/02/2026
51,2
07/02/2026
51,2
07/02/2026
51,2
07/02/2026
51,2
07/02/2026
07/02/2026
51,2
07/02/2026 51,19
07/02/2026 51,19
07/02/2026 51,19
07/02/2026 51,19
07/02/2026 51,19
07/02/2026 51,19
07/02/2026 51,19
07/02/2026 51,19
07/02/2026 51,18
07/02/2026 51,18
07/02/2026 51,18
07/02/2026 51,18
07/02/2026 51,17
08/02/2026 51,21
08/02/2026 51,21
08/02/2026 51,21
08/02/2026 51,21
08/02/2026 51,21
08/02/2026 51,21
08/02/2026 51,21
51,2
08/02/2026
51,2
08/02/2026
51,2
08/02/2026
51,2
08/02/2026
51,2
08/02/2026
Fin Resources Limited
47
2023 Annual Report to Shareholders
Tenements and Project Locations
Location of the Company’s Projects in Quebec, Canada
Location of the Company’s Projects in Western Australia
Fin Resources Limited
48
2023 Annual Report to Shareholders