Focus Minerals Limited
ABN 56 005 470 799
Annual Report
For the year ended 31 December 2023
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Corporate Directory
ABN 56 005 470 799
Directors
Wanghong Yang
Chairman – Executive
Lingquan Kong
Gerry Fahey
Richard O’Shannassy
ZhongShan Song
Director – Executive
Director – Independent
Director – Independent
Director – Non-Executive (appointed 20 April 2023)
Company Secretary
Nicholas Ong
Registered and Head Office
Level 2
159 Adelaide Terrace
East Perth WA 6004
PO Box 3233
East Perth WA 6892
Tel: +61 (0) 8 9215 7888
Fax: +61 (0) 8 9215 7889
Share Registry
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth WA 6000
Auditor
RSM Australia Partners
Level 32 – Exchange Tower
2 The Esplanade
Perth WA 6000
Bankers
National Australia Bank
100 St Georges Terrace
Perth WA 6000
Solicitors
HFW Australia
Level 15, Brookfield Place – Tower 2
123 St Georges Terrace, Perth, WA 6000
Bank of China Perth Branch
Ground Floor, 179 St Georges Terrace
Perth WA 6000
Stock Exchange Listing
Australian Securities Exchange (ASX)
ASX Symbol: FML
Industrial and Commercial Bank of China
Level 28, 44 St Georges Terrace
Perth WA 6000
Page | 2
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Contents
Corporate Directory ............................................................................................................................................ 2
Chairman’s Report .............................................................................................................................................. 4
Directors’ Report ................................................................................................................................................ 5
Auditors Independence Declaration................................................................................................................. 39
Consolidated Financial Statements .................................................................................................................. 40
Notes to Consolidated Financial Statements ................................................................................................... 44
Directors’ Declaration ....................................................................................................................................... 79
Independent Auditor’s Report ......................................................................................................................... 80
Shareholder Information .................................................................................................................................. 84
Interest in Mining Tenements .......................................................................................................................... 86
Page | 3
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Chairman’s Report
Dear Shareholders,
I am pleased to present the 2023 Annual Report for Focus Minerals Limited (ASX:FML) summarising the milestones your
company has achieved. During the year, the Coolgardie Gold Project (Coolgardie) was brought back into production
following extensive refurbishment works spanning just over nine months. Practical completion of the Three Mile Hill (TMH)
plant upgrade was reached in July 2023. This coincided with mobilisation of the open pit contractor Ozland Mining Services
and beginning of mining at Greenfield Pit.
Commissioning of the TMH plant was completed using predominantly low-grade stockpile sourced from within the
Coolgardie project. All of this hard work led to our first pour of gold doré bars in late August 2023. The Company poured
and sold a total of 10,926 ounces of gold during the year through a combination of toll treatment and production from TMH
plant.
Average gold sale price achieved during the year was approximately A$3,023/oz. Focus has not entered into gold hedging
for its Coolgardie operations, enabling it to take advantage of a strong gold price environment. In the new year ahead, the
Company will focus on managing its cost of production to ensure sustainable production level and maximising efficiencies.
It wasn’t all smooth sailing on our way to production. In late January 2024 severe weather crumpled critical power
transmission infrastructure impacting the Goldfields area. The extended black out period has impacted gold production at
the TMH plant.
We have also been actively exploring at the Laverton Gold projects. Resource and exploration drilling during the year
comprised 52 RC holes for 7,486m and 1 DD hole for 240.8m. On 8 March 2024, the Company announced the upgrade of
Total Mineral Resources at Laverton to 74.22 Mt @ 1.7 g/t for 3.98 Moz of gold. The Focus team will continue to convert
more of the Mineral Resources into a JORC 2012-reporting standard to significantly enhance the scale, economics, and
value of Laverton.
I take this opportunity to thank our contractors, suppliers and stakeholders who contributed to the refurbishment works at
Coolgardie. The diligent planning and commitment by all involved to complete the refurbishment on schedule is impressive.
I also thank our Board, management team and staff who have all contributed to make production at Coolgardie a reality.
Our major shareholder, Shandong Gold Group, has been providing financial assistance to help fund the gold mining
operations at Coolgardie, also deserve thanks.
We will continue to work hard to position the Coolgardie operations for long-term gold production. We look forward in
sharing the value and journey with you in the years to come.
Yours faithfully,
Wanghong Yang
Chairman of the Board
Page | 4
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Directors’ Report
The Directors present their report on the Group comprising of Focus Minerals Limited – the parent company (referred to
as “the Company”) – and its subsidiaries (together referred to as “the Group” or “Focus” or “consolidated entity”) at the end
of, or during the year ended 31 December 2023.
Operations Review
Overview
During the year in review, the Company has resumed production at its’ Coolgardie Operations (Coolgardie), and further
invested in improving the Coolgardie Ore Reserves and Life of Mine plan (LOM). During this period, mining commenced
in the Greenfields Open Pit, refurbishment of the Three Mile Hill (TMH) treatment plant was completed, the plant was
commissioned and was capable of throughputs exceeding nameplate by year end.
Key deliverables included:
Successful recruitment of Management and Operating teams was achieved in a very competitive market.
Open Pit Mining Contractor Ozland Mining Services mobilised to site and commenced mining in the Greenfields
Open Pit in late June. Mining cutback of the North and South walls of the pit continued through to end of year.
Design, approval, construction and operation of 100-man camp located in the Coolgardie townsite. The camp was
operational in June 2023.
Refurbishment of the Three Mile Hill Plant by contractor Macca Interquip reached practical completion in July
2023. All other required infrastructure for processing was completed in line with this schedule.
First Gold was poured on 24 August 2023.
Commissioning of the TMH plant continued through to year end. The November mill throughput rate exceeded
the nameplate capacity of 100,000 tonnes per month.
Mill feed was predominantly from low-grade historical stockpiles for commissioning whilst Greenfields ore
production ramped up.
395,980 tonnes at 0.94 g/t at 87% recovery was processed at TMH producing 10,154 ounces of gold during the
year.
Toll milling of 63,793 tonnes of low-grade stockpile at 0.81 g/t produced of a further 1,475 ounces of gold in one
campaign in the June Quarter.
During the year the Company sold 10,926 ounces of gold achieving an average price of A$3,023 per ounce. Gold
in circuit was 932 ounces at the end of the period.
The cut back at Greenfields Open Pit was largely complete at year end. 910,799 tonnes of waste and 73,622
tonnes of ore was mined for the period.
Final completion of the cut back, will see a significant reduction in stripping ratio and increasing ore production to
provide 100% ore feed to the processing plant going forward.
Bonnie Vale Mineral Resource update with increase in Indicated Category ounces September 2023.
The subsequent updated Bonnie Vale Ore Reserve estimate October 2023 increased by around 26,000oz to a
total of 178,000oz. This is a very positive result for the new underground mine plan at Bonnie Vale, with project
commencement targeted in 2H2024.
Mineral Resource updates for Dreadnought and several other Coolgardie deposits and stockpiles December 2023.
Progress was made on approvals for the Bonnie Vale underground mine and additional approvals to support
expanding the LOM plan.
Meanwhile at the Laverton Gold Project (Laverton), the focus remained on advancing exploration and review of the
Company’s Mineral Resources with the aim of delivering sufficient open pit resources to underpin a mining operation.
Significant effort has been applied to rebuilding and expanding JORC compliant Central Laverton Mineral Resources.
These Mineral Resources have since been compiled and reported in the March Quarter 2024 increasing global Mineral
Resources at the Laverton Gold Project (LGP) by 6.2% (refer to ASX announcement dated 8 March 2024).
Page | 5
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
COOLGARDIE in detail
Total Coolgardie Gold Operations Mineral Resources at 31 December 2023:
Classification
Tonnage (Mt) Au Grade (g/t)
Au Moz
Total Coolgardie Measured Mineral Resource
Total Coolgardie Indicated Mineral Resource
Total Coolgardie Inferred Mineral Resource Increase
Total Coolgardie 2023 Mineral Resource
3.47
26.53
16.17
46.17
1.65
1.81
1.96
1.85
0.18
1.54
1.02
2.74
Coolgardie Gold Operations Summary Mineral Reserves as at 31 December 2023 including: Updated Bonnie Vale
Underground Reserve, mining depleted Greenfields Open Pit Reserve and summary stockpiles and ROM stocks:
2022
Tonnes
MT
Grade
g/t
Ounces
Tonnes
MT
2023
Grade
g/t Ounces
Changes
Tonnes
MT
Grade
g/t Ounces
3.46
3.46
1.21
0.06
1.27
1.83
1.48
1.48
1.17
1.58
1.19
1.22
164,000
164,000
45,550
3,000
48,550
71,750
3.46
3.46
1.21
0.06
1.27
1.34
1.48 164,000
1.48 164,000
45,550
1.17
3,000
1.58
48,550
1.19
65,900
1.53
1.83
1.22
71,750
1.34
1.53
65,900
0.00
0.00
0.00
0.00
0.00
-0.49
0.00
-0.49
0.00
0.00
0.00
0.00
0.00
0.31
0.00
0.31
0
0
0
0
0
-5,850
0
-5,850
0.93
0.93
5.11
5.11
152,200
152,200
0.93
0.932
5.94 177,900
5.94 177,900
0.01
0.01
0.83
0.83
25,700
25,700
Brilliant
Open Pit
Reserve
CNX
Open Pit
Reserve
Green Fields
Open Pit
Reserve
Bonnie Vale
Underground
Reserve
Stockpiles
and ROM
stocks
Proved
Probable
Total
Proved
Probable
Total
Proved
Probable
Total
Proved
Probable
Total
Proved
Probable
Total
Coolgardie
Total
Reserves
Total Proven
Total Probable
Total
3.04
4.45
7.49
1.20
2.23
1.81
117,300
319,200
436,500
0.13
0.13
2.55
4.59
7.14
0.80
0.80
3,460
3,460
0.13
0.13
1.36 111,450 -0.49
0.14
2.36 348,360
2.00 459,810 -0.35
0.80
0.80
0.37
0.13
0.19
3,460
3,460
-5,850
29,160
23,310
During 2023 drilling at Coolgardie was targeted in the following areas:
2023 Coolgardie Drilling Summary
Exploration at Various Prospects
Bonnie Vale Resource
Other Stockpiles, and Tails
Dreadnought Resource Development
Pre Mining drilling to support LOM
Total
% of drilling supporting LOM
RC Drill Meters
6,926.0
9,370.4
1,414.0
2,736.0
14,966.0
35,412.4
80%
DD Drill Meters
3,429.8
3,429.8
100%
The Bonnie Vale underground Mineral Resource was updated following intensive: Resource Development, Feasibility
and pre – mining drilling (refer to ASX announcement dated on 26 September 2023). Bonnie Vale Ore Reserves were
updated using the new Mineral Resource and advanced underground Mining assessment during 2023 (refer to ASX
announcement dated 10 November 2023).
Page | 6
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
The 2023 Bonnie Vale Ore Reserve is derived from this updated Mineral Resource estimate published in using a gold price
of A$2,500 per oz and a cut-off grade of 1.87 g/t for stope design:
PROJECT
PROVEN
PROBABLE
TOTAL Ore
Tonnes
(g/t Au)
Tonnes
(g/t Au)
Totals
(g/t Au)
(oz.)
-
-
932,000
5.94
932,000
5.94
177,920
Bonnie Vale
Underground
The 2023 Bonnie Vale Ore Reserve is shown below with comparison to the previous Ore Reserve as stated in the October
2022 Ore Reserve update (refer to ASX announcement dated 12 October 2022):
Bonnie Vale UG Ore Reserve
2022 Update
2023 Update
Probable
Total
Tonnes
g/t
Ounces
Tonnes
g/t
Ounces
925,800
5.11
152,220
932,000
5.94
177,920
925,800
5.11
152,220
932,000
5.94
177,920
The 2023 Ore Reserve update sees an increase in of 25,700oz on the previous 2022 result largely driven by a 16%
increase in mined grade. This improvement in grade has resulted from increased drill density and a higher confidence
Mineral Resource model.
In summary, the mining plan developed for the 2023 Underground Ore Reserve estimate sees:
4-year mine life, with significant potential for extension.
2.3Km of decline development to a depth of 260m below surface, a further 2.3km of other capital development.
5.0 km of ore drives mining 247K tonnes at 4.48g/t for 35,562oz and stoping of 685k Tonnes at 6.46g/t for
142,358oz.
932k tonnes of ore at a diluted grade of 5.94g/t for 177,920 mined ounces.
A production cost estimate of A$1,374 per ounce.
Following on from the 2023 Updated Ore Reserve and the development of the detailed mine and infrastructure plan for the
Bonnie Vale Underground Project, Focus hopes to bring the mine online in 2024 consistent with our current LOM plan.
Figure 2 below shows the development and stoping design of the Bonnie Vale UG Reserve. The economic risk is
considered very low as the mine plan is underpinned by the fact that 93% of the Ore Reserve is above the fully costed cut-
off grade. This demonstrates the robust economics of the Bonnie Vale UG project.
Figure 2: Long Section view from North of Current Mine Plan showing development and stoping design.
Page | 7
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
LAVERTON in detail
The Company has continued to invest in exploration and review of its Mineral Resources. During the reporting period the
Company spent $3.1M at Laverton completing 7,486m RC and 240.8m diamond drilling. In addition, significant effort
was made to review and compile Mineral Resources in the Central Laverton part of the Project.
As at 31 December 2023, Laverton’s Total Mineral Resources comprised:
Classification
Tonnage (Mt)
Au Grade (g/t)
Au Moz
Total Laverton Measured Mineral Resource
Total Laverton Indicated Mineral Resource
Total Laverton Inferred Mineral Resource
Total Laverton 2023 Mineral Resource
0.92
44.81
18.7
64.43
1.99
1.54
2.43
1.81
0.06
2.22
1.46
3.74
The following Central Laverton Mineral Resources Estimates were advanced for compilation during 2023:
Craigiemore trend comprising:
o Golden Pinnacles,
o Mary Mac North,
o Mary Mac,
o Mary Mac Hill and,
o Craigiemore
West Laverton Trend comprising:
o Rega,
o West Laverton and,
o Bulldog
Chatterbox Trend comprising:
o
Innuendo,
o Whisper,
o Rumor and,
o Garden Well
Gladiator Trend comprising:
o Gladiator Pit,
o Gladiator West,
o Maurrays and,
o Cousin Murrays
These Central Laverton Mineral Resource Estimates were released during the March Quarter 2024 (refer to ASX
announcement dated 8 March 2024). The updated Mineral Resources comprise:
Classification
Total Indicated
Total Inferred
Total Mineral Resource
Tonnage
(Mt)
9.76
Au Grade
(g/t)
1.45
Au Contained
Moz
0.45
8.41
18.17
1.32
1.39
0.36
0.81
The Updated Laverton Gold Project aggregate Mineral Resources have increased 6.2% following March quarter 2024
Mineral Resource Updates and now comprise:
Classification
Total Measured
Total Indicated
Total Inferred
Total Mineral Resource
Tonnage
(Mt)
0.39
Au Grade
(g/t)
1.7
Au Contained
Moz
0.02
49.29
24.54
74.22
1.5
2.1
1.7
2.33
1.63
3.98
Page | 8
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Ore Reserves and Mineral Resources Tables
2022 / 2023 JORC 2012 Coolgardie Gold Project Ore Reserves Comparison Table
2022 Reserves
2023 Reserves
COOLGARDIE GOLD PROJECT
Tonnes Grade Au
Mt
-
3.46
3.46
1.21
0.06
1.27
1.83
g/t
-
1.48
1.48
1.17
1.58
1.19
1.22
Ounces
-
164,000
164,000
45,500
3,000
48,500
71,750
Tonnes
Mt
-
3.46
3.46
1.21
0.06
1.27
1.74
Grade
Au g/t
-
1.48
1.48
1.17
1.58
1.19
1.23
Ounces
-
164,000
164,000
45,500
3,000
48,500
68,800
Change
Grade
Au g/t
Ounces
-
-
Tonnes
Mt
-
-0.09
0.01
-2,950
1.83
1.22
71,750
1.74
1.23
68,800
-0.09
0.01
-2,950
0.93
0.93
5.11
5.11
152,200
152,200
0.93
0.93
5.94
5.94
0.71
0.71
1.21
0.77
0.85
0.85
0.88
0.88
1.23
2.36
1.94
177,900
177,900
1,600
1,600
280
280
370
370
1,200
1,200
114,300
348,350
462,650
0.01
0.01
0.07
0.07
0.01
0.07
0.01
0.07
0.04
0.04
-0.09
0.13
0.04
0.83
0.83
0.71
0.71
1.21
1.21
0.85
0.85
0.88
0.88
0.03
0.13
0.13
25,700
25,700
1,600
1,600
280
280
370
370
1,200
1,200
-2,950
29,150
26,200
0.07
0.07
0.01
0.01
0.01
0.01
0.04
0.04
2.95
4.58
7.53
Total Proven
Total Probable
Total Ore Reserves
3.04
4.45
7.49
1.20
2.23
1.81
117,250
319,200
436,450
Proven
Probable
Total
Proven
Probable
Total
Proven
Probable
Total
Proven
Probable
Total
Proven
Probable
Total
Proven
Probable
Total
Proven
Probable
Total
Proven
Probable
Total
Brilliant Project – Open Pit Reserve
CNX Project – Open Pit Reserve
Greenfields Open Pit Reserve
(Mining Depleted)
Bonnie Vale Project – Underground
Bonnie Vale Tails Mining Stocks
Tindals LG Mining Stocks
Empress – Dreadnought LG Mining
Stocks
MILL ROM Stocks
Total Coolgardie
Page | 9
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
2022 / 2023 JORC 2012 Ore Reserves Comparison Table
2022 Reserves
2023 Reserves
LAVERTON GOLD PROJECT
Tonnes Grade Au
Karridale – Open Pit Reserve
Burtville – Open Pit Reserve
Beasley Creek – Open Pit Reserve
Beasley Creek South – Open Pit Reserve
Wedge – Open Pit Reserve
Total Laverton
Proven
Probable
Total
Proven
Probable
Total
Proven
Probable
Total
Proven
Probable
Total
Proven
Probable
Total
Total Proven
Total Probable
Total Ore Reserves
Mt
-
5.8
5.8
-
3.5
3.5
-
1.8
1.8
0.7
0.7
-
0.8
0.8
-
12.6
12.6
g/t
-
1.1
1.1
-
0.9
0.9
-
2.3
2.3
2.7
2.7
-
1.6
1.6
-
1.34
1.34
Ounces
-
205,000
205,000
-
103,000
103,000
-
133,000
133,000
64,000
64,000
-
41,000
41,000
-
546,000
546,000
Tonnes
Mt
-
5.8
5.8
-
3.5
3.5
-
1.8
1.8
0.7
0.7
-
0.8
0.8
-
12.6
12.6
Grade
Au g/t
-
1.1
1.1
-
0.9
0.9
-
2.3
2.3
2.7
2.7
-
1.6
1.6
-
1.34
1.34
Ounces
-
205,000
205,000
-
103,000
103,000
-
133,000
133,000
64,000
64,000
-
41,000
41,000
-
546,000
546,000
Change
Grade
Au g/t
Tonnes
Mt
Ounces
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Page | 10
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Mineral Resources Table
Coolgardie Gold Project
Coolgardie Surface Mineral Resources
Prospect
JORC
Classification
Tonnes
Grade
(g/t)
Alicia
JORC 2012
Indicated
JORC 2012
Inferred
JORC 2012
Total
Alicia ROM
JORC 2012
Indicated
JORC 2012
Total
625,000
2,000
627,000
60,000
60,000
1.4
1.1
1.4
0.8
0.8
Big Blow - Mining
Depleted
JORC 2012
Measured
4,200
3.84
JORC 2012
Indicated
776,500
1.63
JORC 2012
Inferred
JORC 2012
Total
140,500
1.16
921,200
1.57
Reporting
Cut-Off
Grade (g/t)
Ounces
28,200
100
0.7
28,300
1,500
1,500
500
40,700
5,200
46,400
NA
0.6
Big Blow Stockpile
JORC 2012
Indicated
44,900
0.6
800
NA
Bird in Hand
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Bonnie Vale Open Pit
JORC 2012
Indicated
Bonnie Vale Tails
Stockpiles – Mining
Depleted
JORC 2012
Inferred
JORC 2012
Total
JORC 2012
Indicated
JORC 2012
Total
210,000
1.96
107,000
2.00
317,000
1.97
978,000
731,000
1,709,000
70,300
70,300
0.9
0.9
0.9
0.7
0.7
Cookes
JORC 2004
Indicated
120,000
2.38
JORC 2004
Inferred
47,000
3.25
13,500
6,500
20,000
27,200
20,900
48,100
1,600
1,600
9,000
5,000
JORC 2004
Total
167,000
2.62
14,000
Cyanide
JORC 2004
Indicated
JORC 2004
Inferred
34,000
2.17
84,000
1.80
JORC 2004
Total
118,000
1.91
JORC 2012
Indicated
193,700
0.8
Low Grade
Stockpile: TMH,
Tindals East,
Bayleys, QOS,
Golden Bar,
JORC 2012
Inferred
JORC 2012
Total
193,700
2,818,500
0.8
1.5
Dreadnought
JORC 2012
Indicated
JORC 2012
Inferred
511,000
1.50
JORC 2012
Total
3,329,500
1.5
JORC 2012
Indicated
13,800
0.85
JORC 2012
Total
13,800
0.85
Empress –
Dreadnought
Stockpiles - Mining
Depleted
Empress
JORC 2012
Indicated
JORC 2012
Inferred
JORC 2012
Total
Friendship
JORC 2004
Inferred
Griffiths
JORC 2004
Inferred
145,000
35,000
180,000
1.6
1.1
1.5
100,000
1.43
104,000
2.74
Page | 11
2,500
5,000
7,500
5,000
5,000
137,000
24,500
161,500
400
400
7,300
1,200
8,500
4,500
9,000
1.0
0.5
NA
1.0
1.0
NA
0.6
NA
0.7
1.0
1.0
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Prospect
JORC
Classification
Tonnes
Grade
(g/t)
Ounces
Happy Jack
JORC 2012
JORC 2012
JORC 2012
Indicated
Inferred
Total
Patricia Jean
JORC 2012
Inferred
JORC 2012
Total
Jolly Briton
JORC 2012
Inferred
JORC 2012
Total
Lady Charlotte
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
322,000
1.32
203,000
1.37
525,000
1.34
390,000
390,000
900,000
900,000
2.2
2.2
1.3
1.3
137,000
1.64
346,000
1.51
483,000
1.55
13,500
9,000
22,500
27,000
27,000
38,500
38,500
7,000
17,000
24,000
Reporting
Cut-Off
Grade (g/t)
0.7
0.5
0.5
1.0
Perseverance
JORC 2004
Inferred
53,000
2.43
4,000
1.0
Tindals Pit
JORC 2004
Indicated
Undaunted/Lady
Charlotte
JORC 2004
Inferred
JORC 2004
Total
JORC 2012
Indicated
JORC 2012
Inferred
JORC 2012
Total
Brilliant
JORC 2012
Indicated
JORC 2012
Inferred
257,000
2.71
288,000
2.36
545,000
2.53
1,162,000
1,162,000
8,990,000
1,550,000
1.4
1.4
1.4
1.2
1.4
JORC 2012
Total
10,540,000
Green Light
JORC 2012
Indicated
JORC 2012
Inferred
445,000
1.14
773,000
1.18
JORC 2012
Total
1,218,000
1.17
CNX
JORC 2012
Measured
JORC 2012
Indicated
1,771,000
1,630,000
1.3
1.1
JORC 2012
Inferred
465,000
1.50
JORC 2012
Total
Greenfields – Mining
Depleted
JORC 2012
Measured
JORC 2012
Indicated
JORC 2012
Total
3,866,000
1,368,000
1,045,500
2,413,500
1.2
1.5
1.3
1.4
22,500
22,000
44,500
50,500
50,500
400,000
1.0
0.5
61,000
0.5
462,000
16,500
29,
0.5
45,500
74,000
58,000
22,000
154,000
67,000
42,300
109,300
0.5
0.6
Hillside
Lindsays
JORC 2004
Inferred
437,000
4.42
62,000
1.0
JORC 2004
Indicated
4,350,000
1.70
238,000
JORC 2004
Inferred
1,490,000
1.60
77,000
1.0
JORC 2004
Total
5,840,000
1.67
315,000
King Solomon/
Queen Sheba
Lord Bob
JORC 2004
Inferred
1,400,000
2.00
JORC 2004
Inferred
820,000
1.60
90,000
42,000
Norris - Grosmont
JORC 2004
Inferred
1,620,000
2.44
127,000
1.0
0.8
1.0
Total CGP Open Pit
Minera Resources
Total Coolgardie
Surface
Page | 12
Measured
Indicated
Inferred
3,193,700
1.4
144,000
23,132,700
1.43
1,065,700
13,412,500
1.72
742,900
39,738,900
1.53
1,952,600
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Coolgardie Underground Mineral Resources
Prospect
JORC
Classification
Tonnes
Grade (g/t)
Ounces
Reporting
Cut-Off
Grade (g/t)
Bird in Hand
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Countess
JORC 2004 Measured
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Cyanide
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Empress
JORC 2004 Measured
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Griffiths
JORC 2004
Inferred
Perseverance
JORC 2004 Measured
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Tindals
JORC 2004 Measured
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Brilliant
JORC 2012
Indicated
JORC 2012
Inferred
JORC 2012
Total
Quarry Reef
JORC 2012
Indicated
(Bonnie Vale)
JORC 2012
Inferred
JORC 2012
Total
Total GPG
Underground
Mineral Resources
Total
Coolgardie
Underground
Measured
Indicated
Inferred
282,000
90,000
372,000
50,000
127,000
0
177,000
516,000
77,000
593,000
13,000
175,000
13,000
201,000
39,000
154,000
438,000
18,000
610,000
51,000
179,000
72,000
302,000
270,000
2,120,000
2,390,000
878,500
325,500
1,204,000
268,000
2,865,500
2,754,500
3.07
2.76
3.00
3.46
2.88
0.00
3.04
4.65
5.53
4.76
4.10
3.40
7.50
3.71
2.90
5.30
4.50
4.30
4.70
3.40
2.83
3.10
2.99
2.4
3.1
3.0
8.0
3.50
6.5
4.5
5.0
3.1
2.0
2.0
2.0
2.0
2.0
2.0
2.0
1.5
1.5
28,000
8,000
36,000
5,500
12,000
0
17,500
77,000
13,500
90,500
2,000
19,000
3,000
24,000
4,000
26,000
64,000
2,000
92,000
5,500
16,000
7,000
28,500
21,000
209,000
230,000
226,500
276,000
253,500
39,000
463,500
273,500
5,888,000
4.1
776,000
Coolgardie Total Surface and Underground Mineral Resources
Classification
Total Measured Resource
Total Indicated Resource
Total Inferred Resource
TOTAL COOLGARDIE
Page | 13
Tonnes
4,461,700
Grade
(g/t)
1.64
Ounces
183,000
25,998,200
1.83
1,529,200
16,167,000
1.96
1,016,400
45,626,900 1.86 2,728,600
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Mineral Resources Table
Laverton Gold Project
Laverton Surface Mineral Resources
Prospect
JORC
Classification
Tonnes
Grade
(g/t)
Contained
Ounces
Admiral Hill
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Barnicoat
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Bells
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Castaway
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Grouse
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Sickle
JORC 2004
Measured
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Burtville
JORC 2012
Indicated
JORC 2012
Inferred
JORC 2012
Total
Karridale
JORC 2012
Indicated
JORC 2012
Inferred
JORC 2012
Total
Craggiemore
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Euro South
JORC 2012
Indicated
JORC 2012
Inferred
JORC 2012
Total
Euro North
JORC 2012
Indicated
JORC 2012
Inferred
JORC 2012
Total
Mary Mac
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Mary Mac South
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Page | 14
660,000
1,310,000
1,970,000
340,000
250,000
590,000
594,000
36,000
630,000
247,000
28,000
275,000
447,000
27,000
474,000
390,000
198,000
152,000
740,000
5,095,000
1,554,000
6,649,000
22,149,000
5,584,000
27,733,000
575,000
113,000
688,000
520,000
50,000
570,000
560,000
270,000
830,000
232,000
9,000
241,000
435,000
90,000
525,000
1.40
1.10
1.20
1.30
1.00
1.17
1.99
1.44
1.96
1.55
1.80
1.58
1.69
1.33
1.67
1.65
2.56
3.11
2.19
1.00
0.90
0.96
1.36
1.22
1.33
2.16
2.74
2.26
1.4
1.2
1.4
2.1
2.1
2.1
2.20
1.60
2.18
1.59
1.81
1.63
Reporting
Cut-Off
Grade
(g/t)
0.8
30,000
46,000
76,000
14,000
8,000
0.5
22,000
38,000
2,000
0.5
40,000
13,000
2,000
1.0
15,000
24,000
1,000
1.0
25,000
21,000
16,000
15,000
52,000
159,000
1.0
47,000
0.6
206,000
968,500
219,000
1,187,500
40,000
10,000
50,000
24,000
0.6
1.0
2,000
0.6
26,000
37,500
18,000
55,500
16,000
0.6
1,000
1.0
17,000
22,000
5,000
1.0
27,000
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Laverton Surface Mineral Resources
Prospect
West Laverton
JORC
JORC 2004
Classification
Indicated
JORC 2004
Inferred
JORC 2004
Total
Apollo
JORC 2004
Measured
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Inuendo
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Eclipse (Garden Well)
JORC 2004
Measured
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Gladiator North
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Rumor
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Beasley Creek
JORC 2012
Indicated
JORC 2012
Inferred
JORC 2012
Total
Beasley Creek South
JORC 2012
Indicated
JORC 2012
Inferred
JORC 2012
Total
Telegraph
JORC 2012
Indicated
Wedge - Lancefield
North
JORC 2012
Inferred
JORC 2012
Total
JORC 2012
Indicated
JORC 2012
Inferred
JORC 2012
Total
Lancefield Far North
JORC 2012
Inferred
South Lancefield
JORC 2004
Indicated
JORC 2004
Inferred
JORC 2004
Total
Tonnes
1,252,000
116,000
1,368,000
512,000
910,000
560,000
1,982,000
180,000
380,000
560,000
19,000
63,000
152,000
234,000
48,000
123,000
171,000
1,590,000
1,060,000
2,650,000
3,727,000
386,000
4,114,000
1,620,000
430,000
2,050,000
638,000
534,000
1,172,000
2,660,000
750,000
3,410,000
790,000
72,000
3,000
75,000
Measured
Indicated
Inferred
921,000
44,812,000
14,758,000
Grade
(g/t)
2.10
Contained
Ounces
84,500
Reporting
Cut-Off
Grade
(g/t)
1.0
1.80
2.07
2.20
2.00
3.03
2.34
2.90
2.30
2.49
2.68
1.77
1.70
1.80
1.70
1.60
1.63
2.10
2.10
2.10
2.04
1.64
2.00
2.1
0.8
1.8
2.13
1.43
1.81
1.70
1.10
1.50
1.3
4.00
5.00
4.04
1.99
1.5
1.4
6,500
91,000
36,000
59,000
54,000
149,000
17,000
28,000
45,000
2,000
4,000
8,000
14,000
3,000
6,000
9,000
0.8
1.0
0.8
1.0
107,000
72,000
1.0
179,000
244,000
20,500
0.5
264,500
109,000
11,000
0.5
120,000
43,500
24,500
68,000
141,000
0.8
27,000
0.8
168,000
34,000
0.5
1.0
9,000
1,000
10,000
59,000
2,223,000
668,500
Total Laverton
Surface
Page | 15
60,491,000
1.5
2,950,500
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Laverton Underground
Prospect
JORC
Classification
Tonnes
Grade
(g/t)
Contained
Ounces
Lancefield
Subtotal
Subtotal
Subtotal
Total Laverton
Underground
JORC 2012
Indicated
JORC 2012
Inferred
JORC 2012
Total
Measured
Indicated
Inferred
0
3,944,000
3,944,000
0
0
3,944,000
0.0
6.3
6.3
0.0
0.0
6.3
0
793,000
793,000
0
0
793,000
3,944,000
6.3
793,000
Reporting
Cut-Off
Grade
(g/t)
4.0
Classification
Total Measured Resource
Total Indicated Resource
Total Inferred Resource
TOTAL LAVERTON
TOTAL Laverton
Tonnes
921,000
44,812,000
18,702,000
64,435,000
Grade
(g/t)
2.0
1.5
2.4
1.8
Ounces
59,000
2,223,000
1,461,500
3,743,500
Page | 16
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Mineral Resources Table – Comparison to Previous Year
Coolgardie Gold Project Resource Updates
Tonnes
Kt
1,391.70
1,146.65
-
2022
Grade
g/t
1.62
1.38
-
Ounces
Koz
Cut
Off
Category
72.66
50.71
-
0.6 g/t
JORC
2012
JORC
2012
2,538.35
1.51
123.37
0.6 g/t
Tonnes
Kt
2,132.10
1,660.30
817.40
2021 LUC
Grade
g/t
Ounces
Koz
Cut
Off
Category
1.06
1.03
1.00
76.68
54.94
26.18
0.8 g/t
4,609.80
1.06
157.80
0.8 g/t
Tonnes
Kt
-
1,900.00
145.00
2013
Grade
g/t
-
2.00
1.70
Ounces
Koz
-
122.00
8.00
Cut
Off
1.0 g/t
2,045.00
1.98
130.00
1.0 g/t
JORC
2012
JORC
2012
Category
JORC
2012
JORC
2012
Tonnes
Kt
1,368.04
1,045.51
-
2023
Grade
g/t
1.52
1.26
-
Ounces
Koz
Cut
Off
67.00
42.28
-
0.6 g/t
Tonnes Kt
-23.66
-101.14
-
Difference
Grade
g/t
-0.10
-0.12
-
Ounces
Koz
-5.66
-8.43
-
Cut Off
0.0 g/t
2,413.55
1.41
109.28
0.6 g/t
-124.80
-0.10
-14.09
0.0 g/t
Tonnes
Kt
1,770.60
1,630.50
464.50
2023 OK
Grade
g/t
Ounces
Koz
Cut
Off
1.31
1.11
1.46
74.36
57.93
21.74
0.5 g/t
Tonnes Kt
-361.50
-29.80
-352.90
3,865.60
1.24
154.03
0.5 g/t
-744.20
Difference
Grade
g/t
Ounces
Koz
-2.32
2.99
-4.44
0.25
0.08
0.46
0.17
Cut Off
-0.3 g/t
-3.77
-0.3 g/t
Tonnes
Kt
-
2,055.00
1,314.90
2023
Grade
g/t
-
1.55
1.66
Ounces
Koz
-
102.41
70.13
Cut
Off
0.6 g/t
Tonnes Kt
-
155.00
1,169.90
Difference
Grade
g/t
-
-0.45
-0.04
Ounces
Koz
-
-19.59
62.1
Cut Off
-0.4 g/t
3,369.90
1.59
172.54
0.6 g/t
1,324.90
-0.38
42.54
-0.4 g/t
Greenfields Mineral Resource Update
Greenfields Open Pit
Mineral Resource with
2023 mining depletion
Measured
Indicated
Inferred
Total Greenfields
CNX Mineral Resource Update
CNX Open Pit Mineral
Resource
Measured
Indicated
Inferred
Total CNX Open Pit
Category
JORC
2012
JORC
2012
Category
JORC
2012
JORC
2012
Dreadnought Mineral Resource
Update
Category
Dreadnought Open Pit
Mineral Resource
Measured
Indicated
Inferred
Total Dreadnought Open Pit Mineral
Resource
JORC
2004
JORC
2004
Page | 17
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Bonnie Vale Mining Centre Resource
Updates
Bonnie Vale Underground
Below 315mRL
Measured
Indicated
Inferred
Total Bonnie Vale Underground
Bonnie Vale Open Pit
Above 315mRL to surface
Measured
Indicated
Inferred
Total Bonnie Vale Open Pit
Bonnie Vale historic tails
with 2023 mining
depletion
Measured
Indicated
Inferred
Total Bonnie Vale Historic Tails
Total Bonnie Vale Mining
Centre Mineral Resources
Updated
Measured
Indicated
Inferred
Total Bonnie Vale Mining Centre
Resources Updated
Tonnes
Kt
-
658.34
503.27
2020
Grade
g/t
-
7.66
3.46
Cut
Off
1.4 g/t
Ounces
Koz
-
162.13
55.98
1,161.61
5.84
218.11
1.4 g/t
Category
JORC
2012
JORC
2012
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
JORC
2012
JORC
2012
-
658.30
503.30
-
7.66
3.46
-
162.10
56.00
1.4 g/t
1,161.60
5.84
218.10
1.4 g/t
Category
JORC
2012
JORC
2012
JORC
2012
JORC
2012
JORC
2012
JORC
2012
JORC
2012
JORC
2012
Big Blow Depleted Mineral Resource
and Big Blow Historic Low Grade
Stockpile Mineral Resource
Category
Big Blow Open Pit Mineral
Resource with 2023
mining depletion
Measured
Indicated
Inferred
Total Big Blow Open Pit
JORC
2012
JORC
2012
Tonnes
Kt
-
321.00
178.00
2021
Grade
g/t
-
2.60
1.00
Ounces
Koz
Cut
Off
Category
-
26.50
5.50
0.7 g/t
499.00
1.99
32.00
0.7 g/t
Big Blow Historic Low
Grade Stockpile Mineral
Resource
Measured
Indicated
NA
Inferred
-
-
-
-
-
-
-
-
-
NA
Page | 18
JORC
2012
JORC
2012
JORC
2012
Tonnes
Kt
-
878.76
325.63
2023
Grade
g/t
-
8.01
2.58
Cut
Off
1.5 g/t
Ounces
Koz
-
226.31
27.04
Tonnes Kt
-
220.42
-177.64
1,204.39
6.54
253.35
1.5 g/t
42.78
-
977.79
731.07
-
0.86
0.89
-
27.17
20.91
0.5 g/t
-
977.79
731.07
Difference
Grade
g/t
-
0.35
-0.88
0.70
-
0.86
0.89
Ounces
Koz
-
64.18
-28.94
Cut Off
0.1 g/t
35.24
0.1 g/t
-
27.17
20.91
0.5 g/t
1,708.86
0.88
48.08
0.5 g/t
1,708.86
0.88
48.08
0.5 g/t
-
178.60
-
-
0.77
-
-
4.41
-
0.4 g/t
178.60
-
178.60
0.77
4.41
0.4 g/t
178.60
0.77
-
0.77
0.4 g/t
4.41
-
4.41
0.4 g/t
-
2,035.15
1,056.70
-
3.94
1.41
-
257.89
47.95
3,091.85
3.08
305.84
2023 Depleted Mineral Resource
Ounces
Koz
Tonnes
Kt
Grade
g/t
4.23
776.50
140.49
3.84
1.63
1.16
0.52
40.74
5.24
0.4,
0.5 &
1.5 g/t
0.4,
0.5 &
1.5 g/t
Cut
Off
0.6 g/t
1,376.81
553.43
2.16
-0.45
95.76
-8.03
1,930.24
1.41
87.73
Difference
Grade
g/t
Ounces
Koz
3.84
-0.97
0.16
0.52
14.24
-0.26
Tonnes Kt
4.23
455.50
-37.51
0.4,0.5
& 1.5
g/t
0.4,0.5
& 1.5
g/t
Cut Off
-0.1 g/t
921.22
1.57
46.50
0.6 g/t
422.22
-0.42
14.50
-0.1 g/t
-
-
-
-
-
-
44.90
0.56
0.81
NA
44.90
0.56
0.81
NA
-
-
-
-
-
-
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Total Big Blow Historic Low Grade
Stockpile
NA
0.0
0.00
0.00
NA
JORC
2012
44.90
0.56
0.81
NA
44.90
0.56
0.81
NA
Undaunted and Lady Charlotte
Mineral Resource Updates
Category
Undaunted Open Pit
Mineral Resource
Total Undaunted
Lady Charlotte Open Pit
Mineral Resource
Measured
Indicated
Inferred
Measured
Indicated
Inferred
Total Lady Charlotte
JORC
2004
JORC
2004
JORC
2004
JORC
2004
Empress, & Alicia OP and Alicia ROM
Mineral Resource Updates
Category
Empress Open Pit Mineral
Resource
Total Empress
Alicia Open Pit Mineral
Resource
Total Alicia
Alicia ROM Mineral
Resource
Measured
Indicated
Inferred
Measured
Indicated
Inferred
Measured
Indicated
Inferred
JORC
2004
JORC
2004
JORC
2012
JORC
2012
NA
Tonnes
Kt
-
187.00
126.00
2012
Grade
g/t
-
1.97
1.93
Ounces
Koz
Cut
Off
Category
-
12.00
8.00
1.0 g/t
Ounces
Koz
Cut
Off
Category
313.00
1.95
20.00
1.0 g/t
-
137.00
346.00
-
1.64
1.51
-
7.00
17.00
1.0 g/t
483.00
1.55
24.00
1.0 g/t
Tonnes
Kt
-
128.00
12.00
140.00
-
505.00
-
2011
Grade
g/t
-
2.00
2.30
2.00
-
1.57
-
-
8.00
1.00
1.0 g/t
9.00
1.0 g/t
-
25.50
-
0.8 g/t
505.00
1.57
25.50
0.8 g/t
-
-
-
-
-
-
-
-
-
NA
JORC
2012
JORC
2012
JORC
2012
JORC
2012
JORC
2012
JORC
2012
JORC
2012
JORC
2012
JORC
2012
JORC
2012
Tonnes
Kt
-
-
381.80
2023
Grade
g/t
-
-
1.53
Ounces
Koz
Cut
Off
-
-
18.74
0.5 g/t
Tonnes Kt
-
-187.00
255.80
Difference
Grade
g/t
-
-1.97
-0.40
Ounces
Koz
-
-12.0
10.7
Cut Off
-0.5 g/t
381.80
1.53
18.74
0.5 g/t
68.80
-0.42
-1.26
-0.5 g/t
-
-
780.30
-
-
1.27
-
-
31.85
0.5 g/t
-
-137.00
434.30
-
-1.97
-0.24
-
-7.00
14.85
-0.5 g/t
780.30
1.27
31.85
0.5 g/t
297.30
-0.28
7.85
-0.5 g/t
Tonnes
Kt
-
144.78
35.19
2023
Grade
g/t
-
1.57
1.09
Ounces
Koz
Cut
Off
Tonnes Kt
-
7.29
1.23
0.7 g/t
-
16.78
23.19
Difference
Grade
g/t
-
-0.43
-1.21
Ounces
Koz
-
-0.71
0.23
Cut Off
-0.3 g/t
179.97
1.47
8.52
0.7 g/t
39.97
-0.53
-0.48
-0.3 g/t
-
625.20
1.90
627.10
-
60.10
-
60.10
-
1.41
1.12
1.41
-
0.77
-
0.77
-
28.27
0.07
0.7 g/t
-
120.20
1.90
-
-0.16
1.12
-
2.77
0.07
-0.1 g/t
28.34
0.7 g/t
122.10
-0.16
2.84
-0.1 g/t
-
1.49
-
1.49
NA
NA
-
60.10
-
60.10
-
0.77
-
0.77
-
1.49
-
1.49
NA
NA
Total Alicia ROM
NA
0.0
0.00
0.00
NA
Page | 19
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Historic Empress - Dreadnought Low
Grade Stockpile Mineral Resource -
Almost Fully Depleted
Empress - Dreadnought
LG Stockpile with 2023
mining depletion
Measured
Indicated
Inferred
Total EDLGSP
Indicated
Central CGP Indicated Mineral
Resources for Selected Stockpiles and
Tails
TMH Greenfields Low
Grade Stockpile
Tindals East Low Grade
Stockpile
Lyndsays Tails vats 4 & 5
Bayleys tails vats 1, 2 & 3
Redemption Tails Vat
Queen of Sheba tails vat
Golden Bar tails Vat
Indicated
Indicated
Indicated
Indicated
Indicated
Indicated
Category
JORC
2012
JORC
2012
Tonnes
Kt
-
-
226.0
226.0
Category
Tonnes
Kt
2023
Grade
g/t
-
-
0.82
0.82
NA
Grade
g/t
Ounces
Koz
-
-
6.00
6.00
Cut
Off
NA
NA
Category
JORC
2012
JORC
2012
Remnant December 2023
Tonnes
Kt
Grade
g/t
Ounces
Koz
-
-
13.77
13.77
-
-
0.85
0.85
-
-
0.37
0.37
Cut
Off
NA
Tonnes Kt
-
-
-212.23
NA
-212.23
Ounces
Koz
Cut
Off
Category
Tonnes
Kt
2023
Grade
g/t
Ounces
Koz
Cut
Off
Tonnes Kt
Difference
Grade
g/t
Ounces
Koz
Cut Off
-
-
0.03
0.03
-
-
-5.63
-5.63
NA
NA
Difference
Grade
g/t
Ounces
Koz
Cut Off
NA
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
39.30
0.69
0.87
39.30
0.69
0.87
NA
JORC
2012
30.70
18.00
77.70
6.60
1.10
20.30
0.56
0.63
0.91
0.67
0.67
1.11
0.55
0.36
2.28
0.14
0.03
0.73
4.96
NA
30.70
18.00
77.70
6.60
1.10
20.30
NA
193.70
0.56
0.63
0.91
0.67
0.67
1.11
0.80
0.55
0.36
2.28
0.14
0.03
0.73
4.96
NA
NA
Total Central CGP Stockpiles and Tails
NA
0.0
0.00
0.00
NA
JORC
2012
193.70
0.80
Page | 20
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Category
Tonnes
MT
Grade
g/t
Ounces
Cut Off
Category
Tonnes
MT
Grade
g/t
Ounces
Cut Off
Tonnes
MT
Grade
g/t
2022
2023
Measured
Patricia Jean
Indicated
Inferred
Total Patricia Jean
Measured
Jolly Briton
Indicated
Inferred
Total Jolly Briton
Brilliant
Open Pit
Measured
Indicated
Inferred
Total Brilliant Open Pit
Brilliant
Underground
Measured
Indicated
Inferred
Total Brilliant Underground
Measured
Greenfields
Indicated
Inferred
Total Greenfields
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
JORC
2012
JORC
2012
JORC
2012
JORC
2012
JORC
2012
JORC
2012
5,706,000
771,000
2.14
2.00
392,500
0.5 g/t
50,000
6,477,000
2.12
442,500
0.5 g/t
3,730,000
2.30
248,500
1.5 g/t
3,730,000
2.30
248,500
1.5 g/t
1,148,000
1,515,000
-
1.75
1.53
-
64,500
74,500
-
0.8 g/t
2,663,000
1.62
139,000
0.8 g/t
JORC
2012
JORC
2012
JORC
2012
JORC
2012
JORC
2012
JORC
2012
JORC
2012
JORC
2012
JORC
2012
JORC
2012
-
-
390,000
390,000
-
-
900,000
900,000
-
8,990,000
1,550,000
-
-
2.15
2.15
-
-
1.33
1.33
-
1.39
1.23
-
-
0.5 g/t
-
-
27,000
390,000
27,000
0.5 g/t
390,000
-
-
0.5 g/t
-
-
38,500
900,000
38,500
0.5 g/t
900,000
-
400,000
0.5 g/t
3,284,000
61,000
779,000
-
-
2.15
2.15
-
-
1.33
1.33
0.07
0.44
Difference
Ounces
Cut Off
-
-
27,000
0.5 g/t
27,000
0.5 g/t
-
-
38,500
0.5 g/t
38,500
0.5 g/t
7,500
11,000
10,540,000
1.36
462,000
0.5 g/t
4,063,000
0.15
19,500
270,000
2.38
21,000
1.5 g/t
2,120,000
3.07
209,000
2,390,000
2.99
230,000
1.5 g/t
1,392,000
1,147,000
-
1.6
1.4
-
72,500
50,500
-
0.6 g/t
-368000
270,000
-
1,610,000
-
1,340,000
244,000
2.42
0.76
21,000
-39,500
0.43
-18,500
1.02
2.03
8,000
-24000
-0.2 g/t
2,539,000
1.51
123,000
0.6 g/t
-124,000
4.01
-16,000
-0.2 g/t
Total Coolgardie Resources Updated
12,870,000
2.01
830,000
16,759,000
1.63
880,500
3,889,000
0.40
50,500
Laverton Gold Project Resource Updates
There were no changes to Laverton Gold Project Mineral Resources in the Annual Reporting Period ending 31 December 2023
Page | 21
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Competent Persons’ Statement
Resources
The information in this announcement that relates to previously announced Mineral Resource estimates was compiled by
Mr Alex Aaltonen, who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Aaltonen is an
employee of Focus Minerals Limited. Mr Aaltonen has sufficient experience that is relevant to the style of mineralisation
and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as
defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves.
Ms Hannah Kosovich, an employee of Focus Minerals compiled all updated Coolgardie Gold Project Mineral Resource
estimates reported in 2023. Ms Hannah Kosovich is a member of Australian Institute of Geoscientists and has sufficient
experience to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves.
Mr Aaltonen, and Ms Hannah Kosovich consent to the inclusion in the report of the matters based on the information in the
form and context in which it appears.
Reserves
The information in this announcement that relates to open pit Ore Reserves estimates is based on an assessment
completed by Gary McCrae , a Competent Person who is a member of the Australasian Institute of Mining and Metallurgy
(AusIMM) with a chartered professional status in mining. Mr McCrae is employed by Minecomp Pty Ltd who were engaged
by FML to complete the open pit Mine Designs and compile open pit Ore Reserve estimates for the Greenfields, CNX and
Brilliant South Deposits. Mr McCrae has sufficient experience that is relevant to the style of mineralisation and type of
deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012
Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr McCrae
consents to the inclusion in any report or public announcement of the matters based on his information in the form and
context in which it appears.
The information in this announcement that relates to the Bonnie Vale underground Ore Reserve estimate is based on an
assessment completed by Mr Elias Mudzamba, a Competent Person who is a member of the Australasian Institute of
Mining and Metallurgy (AusIMM). Mr Mudzamba is a fulltime employee of Focus Minerals Pty Ltd. Mr Mudzamba has
sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity
being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves. Mr Mudzamba consents to the inclusion in any report or
public announcement of the matters based on his information in the form and context in which it appears.
The information in this announcement that relates to Laverton Gold Project Ore Reserves is based on an assessment
completed by Mr Igor Bojanic who is a Fellow of the Australasian Institute of Mining and Metallurgy and is a full-time
employee of RPM Advisory Services Pty Ltd (RPMGlobal).
RPMGlobal and Mr Bojanic were engaged by FML to complete the Preliminary Feasibility Study investigating the technical
and financial viability of mining the Karridale, Burtville, Beasley Creek, Beasley Creek South and Wedge Mineral
Resources. Mt Bojanic has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of “The
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.“ Mr Bojanic consents to
the inclusion in any report or public announcement of the matters based on his information in the form and context in which
it appears
Focus Minerals confirms that to the best of its knowledge, Focus is not aware of any new information or data that materially
affects the information included in the relevant market announcements and, in the case of estimates of mineral resources
or ore reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market
announcements continue to apply and have not materially changed.
Page | 22
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Summary of Governance Arrangements and Internal Controls
Focus Minerals ensures that the Mineral Resources and Ore Reserve estimates are subject to governance arrangements
and internal controls up to a corporate level within the company. Internal and external reviews of the Mineral Resource
estimation procedures and results are carried out. An external consultancy firms have been used to generate the ore
reserves that were subject to internal reviews by the consultants.
The General Manager – Exploration, is responsible for monitoring the planning, prioritisation and progress of exploratory
and resource definition drilling programs across the company and the estimation and reporting of resources. These
definition activities are conducted within a framework of quality assurance and quality control protocols covering aspects
including drill hole location, sample collection, sample preparation and analysis as well as sample and data security.
Focus Minerals reports its Mineral Resources and Ore Reserves on an annual basis, in accordance with the Australasian
Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves (the JORC code) 2004 and 2012 Edition.
Mineral Resources are quoted inclusive of Ore Reserves. Competent Persons named by Focus Minerals are members of
the Australasian Institute of Mining and Metallurgy and/or the Australian Institute of Geoscientists and qualify as Competent
Persons as defined in the JORC Code
Page | 23
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Directors
The directors of the Company at any time during or since the end of the year and up to the date of this report, unless
otherwise indicated, are:
Name
Designation & Independence Status
Wanghong Yang
Chairman – Executive
Lingquan Kong
Director – Executive
Gerry Fahey
Director – Independent
Richard O’Shannassy
Director - Independent
Zhongshan Song*
Director – Non-Executive
*Mr Song was appointed on 20 April 2023.
Details of the Directors’ qualifications, experience, special responsibilities, and details of directorships of other listed
companies can be found on pages 25 to 26 and in the remuneration report on pages 29 to 35.
Page | 24
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Information on Directors, Officers and Senior Management
Designation &
Independence
Status
Chairman
Executive
Directors
Wanghong Yang
Appointed Executive
Chairman on 14th
October 2021
Experience, Expertise & Qualifications
Qualifications: B.Acc. MAppFin
Mr Yang was an Executive Director and Interim CEO of Focus
between 2013 and 2017. He was then appointed Vice President of
the Business Development Unit of Shandong Gold International Co.,
Ltd.
Prior to his role at Focus he worked at Shandong Gold International
Mining Corporation as Financial Controller. He joined Shandong Gold
Group
the Group’s Senior Manager of Capital
Management before becoming the Deputy General Manager of
Shandong Gold International Mining Corporation Limited.
in 2008 as
Mr Yang has a Bachelor’s degree in Accounting from Renmin
University of China and a Master’s degree in Applied Finance from
Macquarie University.
Directorships of other ASX listed companies: None
Interest in shares/options: Nil
Gerry Fahey
Director
Qualifications: BSc (Hons) Geology, FAusIMM, MAIG, MAICD
Appointed on
18 April 2011
Independent
Page | 25
resource, mine development and
Mr Fahey is a geologist with over 40 years’ experience. He was chief
geologist for Delta Gold between 1992-2002 where he gained
extensive
feasibility study
experience on projects including Kanowna Belle and Sunrise in
Australia and Ngezi Platinum in Zimbabwe. Mr Fahey began his
career as a mine geologist in the Irish base-metals industry on
projects such as Tynagh, Avoca, and Tara Mines (Navan). On
migrating to Australia in 1988, he gained further operational
experience in Western Australia and the Northern Territory (Whim
Creek and Dominion Mining), prior to joining Delta Gold. He formed
FinOre Mining Consultants in 2005, which merged with CSA Global
in 2006 and is currently Principal Mining Geologist with CSA Global
specialising in mining geology, mine development and training.
Mr Fahey is a former member of the Joint Ore Reserve Committee
(JORC) and a former Board Member (Federal Councillor) of the
Australian Institute of Geoscientists (AIG).
Directorships of other ASX listed companies:
Prospect Resources Limited (Non-Executive Director:
appointed July 2013, ongoing)
Interest in shares/options: 25,640 shares
Nil options
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Directors
Lingquan Kong
Appointed on 14th
January 2021
Designation &
Independence
Status
Director
Executive
Experience, Expertise & Qualifications
Qualifications: Meng (Mining Engineering)
Mr Kong joined Focus in September 2019 as the company’s Principal
Mining Engineer. Prior to joining Focus, Mr Kong spent five years as
a Director and General Manager at Vatukoula Gold Mines in Fiji,
focusing on long term mine planning, production management, cost
assessment and stakeholder relations. During his time at Focus
Minerals, he has been pivotal in managing the pre-feasibility studies
including mine planning and
for Coolgardie and Laverton,
engineering.
Directorships of other ASX listed companies:
Cardinal Resources Limited (appointed 1st February 2021).
Cardinal Resources Limited was delisted from ASX on 8th
February 2021
Interest in shares/options: Nil
Richard O’Shannassy
Director
Qualifications: B. Juris, LLB (Hons), Law
Appointed on 19th
November 2021
Independent
Mr O’Shannassy has more than 35 years of experience as a
commercial lawyer. He served on mining industry committees over
several years and is a member of Energy & Resources Law
Association and the Law Society of Western Australia.
Mr O’Shannassy was general counsel and company secretary at
Hardman Resources, a non-executive director of Avenira (formerly
Minemakers) and Key Petroleum Limited.
Directorships of other ASX listed companies: None
Interest in shares/options: Nil
ZhongShan Song
Appointed on 20th April
2023
Director
Qualifications: B.Acc
Non-Executive
Mr Song has obtained bachelor of Accounting degree from Shandong
Business School and is a CPA based in China. He has more than 10
years’ experience in mining industry.
Directorships of other ASX listed companies: None
Interest in shares/options: Nil
Note: For director’s special responsibilities during the year ended 31 December 2023, please refer to the Remuneration
Report
Page | 26
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Senior Management
Wanghong Yang – Executive Chairman
Please refer to the directors’ section for information about Mr Yang.
Lingquan Kong – Principal Engineer/ Director
Please refer to the directors’ section for information about Mr Kong.
Nicholas Ong – Company Secretary (contract)
Qualifications: B. Comm, MBA
Appointed: 19th October 2020
Mr Nicholas Ong has more than 16 years of experience in corporate governance and listing compliance, including 7 years
working as a Principal Advisor at the ASX. He is the Managing Director of Minerva Corporate and provides non-executive
director and Company Secretary services to several ASX listed companies. He is a fellow of the Governance Institute of
Australia.
Alex Aaltonen – General Manager Exploration
Qualifications: B.Sc Geology (Hons), MAUSIMM
Appointed: 19 February 2018
Mr Alex Aaltonen has more than 20 years of mining, resource development and exploration experience. He has worked in
geology management and leadership roles in Australia, Eastern Europe, Middle East, Asia and South America.
Mr Aaltonen has developed in depth experience in a broad range of deposit styles including gold, gold-copper-polymetallic,
IOCGU, uranium, vanadium-polymetallic, tin-tungsten and graphite. Mr Aaltonen has extensive experience in managing
and rejuvenating existing projects and or building teams and facilities for new projects.
Fengfan Sun – Chief Financial Officer
Qualifications: MBus (Financial Accounting) , CPA
Appointed: 1st December 2020
Mr Fengfan Sun has many years of invaluable experience in leading and developing successful finance teams in listed
and unlisted gold companies. He was employed by Focus as a senior accountant from June 2013 to February 2018 and
was appointed as Focus Limited’s Chief Financial Officer in December 2020. Fengfan is responsible for managing the
financial aspects of Focus’ strategy which includes financial planning and reporting, capital management, tax, treasury
and investor relations.
Rodney Johns – Chief Operating Officer
Qualifications: BappSc (Extractive Metallurgy)
Appointed: 9th November 2021 (former Independent Director)
Mr Johns has extensive experience in the WA gold sector, having held senior positions at Delta Gold, Placer Dome, La
Mancha Resources and Echo Resources that included oversight and delivery of growth strategies, new processing plants
and mine optimisations. In addition to his current role as a consultant to the WA mining sector, Mr Johns was previously a
Non-Executive Director of Beacon Minerals Limited (ASX: BCN).
Page | 27
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Interests in the Shares and Options of the Company and Related Bodies Corporate
At the date of this report, the direct and indirect interests of directors in the shares and options of the Company were:
Ordinary Shares
Options (Unlisted)
Wanghong Yang
Gerry Fahey
Rodney Johns
Lingquan Kong
Richard O’Shannassy
ZhongShan Song
Directors’ Meetings
-
25,640
-
-
-
-
-
-
-
-
-
-
The number of meetings of directors (including meetings of committees of directors) held during the year and the number
of meetings attended by each director was as follows:
Board
Audit and Risk
Committee
A
2
2
2
1
2
B
2
2
1
1
2
A
-
-
2
-
2
B
-
-
2
-
2
Remuneration
and Nominations
Committee
B
A
Technical
Committee
A
B
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Directors
Lingquan Kong
Wanghong Yang
Gerry Fahey
ZhongShan Song
Richard O’Shannassy
A – Number of meetings attended.
B – Number of meetings held during the time the director held office or was a member of the relevant committee during the year.
Capital Structure
Ordinary shares
As at the date of this report, the Company had on issue 286,558,645 fully paid ordinary shares.
Share Options
Options Issued
There were no options issued during the year ended 31 December 2023.
Options Exercised
There were no options exercised during the year ended 31 December 2023.
As at the date of this report, there are no unissued ordinary shares under options.
Principal Activities
The principal activity of the Company during the year was gold exploration and production in Western Australia.
Page | 28
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Remuneration Report (Audited)
This report, prepared in accordance with the Corporations Act 2001, contains detailed information regarding the
remuneration arrangements for the Directors and Senior Executives who are the ‘key management personnel’ (KMP) of
the Company and the Group. The Board formed the view that the three most senior people in the organisation, being the ,
Chief Financial Officer, Chief Operating Officer and General Manager – Exploration are, in addition to the directors, the
only executives who satisfy the “key management personnel” criteria during the period. The tables disclosing remuneration
for this period and comparatives only include these KMPs.
The KMP for the year ended 31 December 2023 are listed in the table below:
Director
Capacity
Change during the Year
Wanghong Yang
Executive Chairman
Gerry Fahey
Independent
Richard O’Shannassy
Independent
Lingquan Kong
Director, Executive
None
None
None
None
ZhongShan Song
Director, Non-Executive
Appointed on 20 April 2023
Current Executive
Capacity
Change during the Year
Alex Aaltonen
Fengfan Sun
Rodney Johns
General Manager – Exploration
Chief Financial Officer
Chief Operating Officer
None
None
None
Remuneration Objectives
It is the Company’s objective to provide maximum stakeholder benefit from the retention of a high-quality Board and
executive team by remunerating directors and key executives fairly and appropriately with reference to relevant
employment market conditions.
The expected outcomes of the remuneration structure are:
Retaining and motivating key executives; and
Attracting high quality management to the Company.
Remuneration and Nominations Committee Established
The Board is responsible for determining and reviewing compensation arrangements for the directors themselves and the
executive team. The Board has established a Remuneration and Nominations Committee, comprising all the non-executive
directors.
Members of the Remuneration and Nominations Committee during the year were:
Gerry Fahey - Committee Chairman; and,
Richard O’Shannassy
The Remuneration and Nominations Committee did not meet during the year.
Page | 29
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Compensation of Key Management Personnel
Remuneration Structure
In accordance with best practice of the Corporate Governance Principles and Recommendations 3rd Edition, the
remuneration structures for non-executive directors and executive directors are separate and distinct.
Remuneration and Nominations Committee
The Remuneration and Nominations Committee assesses the appropriateness of the nature and amount of remuneration
of directors and senior executives on a periodic basis by reference to relevant employment market conditions with an
overall objective of ensuring maximum stakeholder benefit from the retention of a high-quality Board and executive team,
subject to the following section relating to non-executive directors. The committee did not meet this year.
Non-Executive Director Remuneration
The Board seeks to set aggregate remuneration at a level that provides the Company with the ability to attract and retain
directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned
amongst directors is reviewed annually. The Board considers advice from external shareholders as well as the fees paid
to non-executive directors of comparable companies when undertaking the annual review process.
Each non-executive director receives a fee for being a director of the Company.
No retirement fees were paid to Directors during 2023 (2022: nil)
The committees of the Board, as of the date of this report, their Chair and members are presently as follows:
Board Member
Position
Audit & Risk
Technical
Remuneration and
Nominations
Wanghong Yang
Gerry Fahey
Richard O’Shannassy
Lingquan Kong
Chair
Executive
Director
Independent
Director
Independent
Director
Executive
ZhongShan Song
Director
Non-Executive
-
C
M
-
-
C=Chairman, M=Member
The following fees have applied:
Independent/Non-executive directors
$50,000 per annum
-
C
-
M
-
-
C
M
-
-
The compensation provided to the Directors in these circumstances is fixed, which reflects the time commitment and
responsibilities of their roles.
At present, the maximum aggregate remuneration of directors’ fees is $150,000 per annum of which $134,861 (2022:
$100,000) has been paid to the directors as fees during the year.
Page | 30
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Voting and comments made at the company's 2022 Annual General Meeting ('AGM')
At the 2022 AGM, 99.69% of the votes received supported the adoption of the remuneration report for the year ended 31
December 2022. The Company did not receive any specific feedback at the AGM regarding its remuneration practices.
Use of remuneration consultants
There is no use of any remuneration consultant for the year ended 31 December 2023.
Senior Executive and Executive Director Remuneration
Remuneration primarily consists of fixed and performance-based remuneration where determined by the Remuneration
and Nominations Committee. The Company had established an equity-based scheme that will allow the executive team to
share in the success of Focus. Any issue of an equity component to executive directors is subject to the approval of
shareholders in general meeting and it is a policy of the current Board that Directors do not participate in equity-based
proposals.
Fixed Remuneration
Fixed remuneration is reviewed by the Remuneration and Nominations Committee. The process consists of a review of
relevant comparative remuneration in the market and internally and, where appropriate, external advice on policies and
practices. The Committee has access to external, independent advice where necessary.
Senior managers are given the opportunity to receive their fixed (primary) remuneration in a variety of forms including cash
and fringe benefits such as motor vehicles and expense payment plans. It is intended that the manner of payment chosen
will be optimal for the recipient without creating additional cost for the Group.
Performance Based Remuneration
For the year ended 31 December 2023, the Company did not set any KPIs.
During the year ended 31 December 2023, no discretionary bonuses were awarded to Directors and Key Management
Personnel.
No options were issued during the year (2022: None). At this stage, no LTI programmes are in place.
Key Management Personnel Contracts
The key terms of the employment contracts for the key management personnel are summarised as follows:
Alex Aaltonen – General Manager – Exploration
Base Salary:
Term:
Termination:
$290,000 per annum plus superannuation guarantee
Permanent starting from 19 February 2018
Four weeks’ notice
Fengfan Sun – Chief Financial Officer
Base Salary:
Term:
Termination:
$270,000 per annum plus superannuation guarantee
Permanent starting from 1 December 2020
Four weeks’ notice
Rodney Johns – Chief Operating Officer
Base Salary:
Term:
Termination:
$400,000 per annum plus superannuation guarantee
Permanent starting from 9 November 2021
1 month notice
Page | 31
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Wanghong Yang – Executive Chairman
Base Salary:
Other benefits
Term:
Termination:
$400,000 per annum plus superannuation guarantee
Apartment rent is covered by the company.
Permanent fixed term starting from 1 April 2022. Maximum period of 48 months
Four weeks notice
Lingquan Kong – Principal Mining Engineer/ Director
Base Salary:
Term:
Termination:
$230,000 per annum plus superannuation guarantee
Permanent fixed term from 7th August 2023. Maximum period of 48 months
Four weeks’ notice
Remuneration Tables
Directors’ remuneration for the year ended 31 December 2023
Short-Term
Benefits
Post-Employment
Benefits
Salary
Fees
Bonus
Non-
Monetary
benefits
Super-
annuation
Other
Total
Performance
Related
$
$
$
$
$
$
$
%
Directors
Gerry Fahey
-
50,000
Richard O’Shannassy
-
50,000
Lingquan Kong
230,958
-
Wanghong Yang
400,000
-
ZhongShan Song
-
34,861
Total
630,958 134,861
-
-
-
-
-
-
-
-
5,375
5,375
-
-
55,375
55,375
19,388
24,826
- 275,172
65,726
43,000
- 508,726
-
-
-
34,861
85,114
78,575
-
929,509
0%
0%
0%
0%
0%
*Zhongshan Song was appointed on 20 April 2023.
Directors’ remuneration for the year ended 31 December 2022
Short-Term
Benefits
Salary
Fees
Bonus
$
$
$
Non-
Monetary
benefits
$
Post-Employment
Benefits
Super-
annuation
Other
Total
Performance
Related
$
$
$
%
Directors
Gerry Fahey
-
50,000
8,000
-
5,925
Zhaoya Wang*
248,234
-
2,000
16,313
14,200
Richard
O’Shannassy
Lingquan
Kong
Wanghong
Yang
Total
-
50,000
8,000
220,708
- 37,409
-
-
5,925
26,481
300,000
- 30,000
43,788
31,000
768,942 100,000
85,409
60,101
83,531
-
1,097,983
-
-
-
-
-
63,925
280,747
63,925
12.5%
0.7%
12.5%
284,598
13.1%
404,788
7.4%
*Zhaoya Wang resigned on 30 April 2022. Total remuneration includes termination payments.
Page | 32
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Remuneration of the key management personnel for the year ended 31 December 2023
Short-Term
Benefits
Salary
Fees
Bonus
$
$
$
Non-
Monetary
benefits
$
Post-Employment
Benefits
Super-
annuation
Other
Total
Performance
Related
$
$
$
%
Current Executive
Alex
Aaltonen
Fengfan Sun
Rodney
Johns
Total
290,000
-
270,000
-
400,000
-
960,000
-
-
-
-
-
-
31,175
-
-
-
29,025
43,000
103,200
-
-
-
-
321,175
299,025
443,000
1,063,200
0%
0%
0%
Remuneration of the key management personnel for the year ended 31 December 2022
Short-Term Benefits
Benefits
Salary
Fees
Bonus
$
Current Executive
Alex
Aaltonen
Fengfan
Sun
Rodney
Johns**
Total
283,750
261,667
400,000
945,417
$
$
-
-
-
-
45,679
43,462
164,840
253,981
Post-Employment
Benefits
Super-
annuation
Other
Total
Performance
Related
$
$
$
%
Non-
Monetary
benefits
$
-
-
-
-
33,796
31,305
41,484
106,585
-
-
-
-
363,225
12.6%
336,434
12.9%
606,324
27.2%
1,305,983
* Bonuses include amounts paid in relation to both the 2021 and the 2022 financial year
** Rod Johns’ bonus includes a 40% performance based bonus which was approved by the Board.
Page | 33
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Relationship between Remuneration and Focus Minerals’ Performance
The majority of salary is fixed while small portions of remuneration, such as bonus and share option, are linked to the
Company’s performance. Although there is some linkage to the Company’s performance, it is not closely aligned.
The following table shows key performance indicators for the Company over the last five reporting periods.
2023
2022
2021
2020
2019
Revenue ($’000)
33,080
16,545
78
199
745
EBITDA ($’000)
1,431
(1,576)
(4,969)
(6,735)
(796)
EBIT ($’000)
(797)
(2,459)
(5,232)
(7,106)
(1,319)
(Loss) attributable to the
owners of Focus Minerals
Ltd (‘$000’s)
Basic loss per share (Cents
per share)
Dividend declared
Share Price as at the end of
the year
$
$
(2,797)
(4,138)
(6,708)
(7,858)
(2,063)
(0.98)
(1.44)
(3.66)
(4.3)
(1.13)
n/a
n/a
n/a
n/a
n/a
0.185
0.255
0.39
0.34
0.215
Transactions and Balances with Related Parties
Summary of related party loans
Below is a summary of the related party loans
Related Party
Shandong Gold
Financial Holdings
Group (Hong Kong)
Co., Limited
Shandong Gold
International Mining Co.,
Limited
Shandong Gold
Group Co., Ltd
Shandong Gold
Group Co., Ltd
Loan Facility
USD10,000,000
USD35,000,000
RMB38,800,000*
RMB100,000,000*
Term
3 years
3 years
1 year
1 year
3% per annum over 3-
month (the “Interest
Period”) Term SOFR
3% per annum over 3-
month (the “Interest
Period”) Term SOFR
6.5%
6.5%
6 July 2022
2 March 2023
27 July 2023
13 November 2023
USD10,000,000
converted to
AUD14,619,883 using
exchange rate of
AUD 1: USD.6840
USD34,000,000
converted to
AUD49,707,602 using
exchange rate of
AUD 1:USD0.6840
RMB38,800,000
converted to
AUD7,992,749 using
exchange rate of
AUD1:RMB4.8544
RMB100,000,000
converted to
AUD20,599,868
using exchange rate
of AUD1:RMB4.8544
AUD648,388
AUD2,160,489
AUD16,141
AUD41,599
Interest
Date drawn
down
Balance
Payable as at
31 December
2023
Interest
accrued during
the year
Page | 34
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
*Note that the loan facilities from Shandong Gold Group Co., Ltd of RMB38,800,000 and RMB100,000,000 are due and
payable on 26 July 2024 and 12 November 2024 respectively.
As at 31 December 2023, there is an accounts payable balance, representing Directors fees for the previous Chairman,
Mr Pei and current director Mr Song totalling $68,230.
As at 31 December 2023, there is no bonus payable to Directors and key management personnel (2022: $259,049).
All transactions were made on normal commercial terms and conditions and at market rates.
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the company held during the financial year by each director and other members of key
management personnel of the consolidated entity, including their personally related parties, is set out below:
Received as
part of
remuneration
Balance at
the start of
the year
Balance at the
end of the year
Disposals/other
Additions
Ordinary shares
Gerry Fahey
Richard O’Shannassy
Lingquan Kong
Wanghong Yang
ZhongShan Song
Alex Aaltonen
Fengfan Sun
Rodney Johns
No.
No.
No.
No.
No.
25,640
-
-
-
-
-
-
-
25,640
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
25,640
-
-
-
-
-
-
-
25,640
This is the end of remuneration report.
Page | 35
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Operating Result
The full-year loss after income tax for 2023 was $2,797,000 (2022: loss of $4,138,000). The decrease in loss is largely due
to mining works and stockpiles being treated from July of the year.
As at 31 December 2023, the Company has a cash balance (consisting of cash and cash equivalent and short-term
deposits) of $1,198,000 (2022: $18,898,000).
Dividends
No dividends have been paid or provided during the year ended 31st December 2023 (2022: nil).
Significant Changes in the State of Affairs
Other than explained in the Review of Operations section above, there have been no significant changes in the state of
affairs of the Group to balance date.
Significant Events after Balance Date
In early February 2024, Focus had secured an additional RMB100 million (AUD20.8 million) loan facility from Shandong
Gold Group Co., Ltd., of which RMB50 million (AUD10.4 million) was drawn down on 6 February 2024. The key terms of
the loan are as follows:
o Term: 1 year from draw down, principal payable at the end of the term
o
Interest: 6.5% per annum, payable quarterly in arrears
Other than the above, there has not been any other matter or circumstance that has arisen after balance date that has
significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or the state
of affairs of the Group in future periods.
Material Business Risks
The material business risks the Group believes may have an impact on its operating and financial prospects are as follows:
Gold price and foreign exchange currency fluctuations
The Group is exposed to fluctuations in the gold and silver prices which can impact revenue. Management actively monitors
the price of gold and silver to ensure that the best prices are achieved on each sale. As the gold and silver sales are done
in Australian Dollar terms, the Group is exposed to currency fluctuation which may impact on the proceeds from each sale.
Mineral Resources and Ore Reserves
The Group’s Mineral Resources and Ore Reserves are estimates based largely on interpretations of geological data. No
assurances can be given that Resources and Reserves are accurate and that the indicated levels of gold and silver can
be recovered from any project. To reduce the risks the Group ensures estimates are determined in accordance with the
JORC Code and compiled or reviewed by qualified competent persons.
Government regulation
The Group’s operations and exploration are subject to extensive laws in Australia. The Group cannot give any assurances
that future amendments to current laws or regulations won’t have a material impact on its projects. The Group monitors
new laws and regulations to ensure compliance and address any impacts on projects as early as possible.
Exploration and development risk
There is a risk that Ore Reserves may be depleted and not offset by new discoveries or developments. Exploration for,
and development of, mineral deposits have some inherent risks that even careful evaluation and execution may not
produce results that were anticipated. Further, the discovery of an ore body may not ultimately be developed into producing
mines. There are significant costs in establishing Resources and Reserves, obtaining all necessary operating permits, and
to eventually developing a particular site.
Climate change
The Group acknowledges that its business may be impacted by the effects of climate change. The Group is committed to
understanding these risks and developing strategies to manage their impact.
Page | 36
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Environmental, health and safety
The Group has environmental liabilities associated with each project which have arisen because of its mining operations
and exploration projects. The Group is subject to extensive laws and regulations governing the protection and management
of the health and safety of workers, the environment, waste disposal, mine development and rehabilitation and local cultural
heritage. Any non-compliance may result in regulatory fines and/or civil liability.
The Group seeks to comply with the required permits and approvals needed for each project. Any delays in obtaining these
approvals may affect the Group’s operations or its ability to continue its operations.
Cybersecurity
Our operations are supported by and dependent upon information technology managed internally and by the third party
providers who manage our cloud services. There is a risk that cyber attacks could cause business disruption, financial loss,
inappropriate disclosure of information or reputation damage.
The Group deployed a number of technical controls such as firewalls and antivirus software. The Group had implemented
a program at all staff level to educate them on cybersecurity awareness.
Likely Developments and Expected Results
Disclosure of information regarding the likely developments in the operations of the Group in future financial period and
the expected results of those operations is likely to result in unreasonable prejudice to the Group. Accordingly, this
information has not been disclosed in this report.
Environmental Regulations
The Group’s operations hold licences issued by the relevant regulatory authorities. These licences specify the limits and
regulate the management associated with the operations of the Group. At the date of this report the Group is not aware of
any breach of those environmental regulations which apply to the Group’s operations. The Group continues to comply with
its specified regulations.
Indemnification and Insurance of Directors and Officers
The Company has indemnified the directors and executives of the company for costs incurred, in their capacity as a director
or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the directors and executives of
the company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company
or any related entity.
Proceedings on Behalf of the Company
Other than as disclosed in this report no person has applied for leave of Court to bring proceedings on behalf of the
Company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf
of the Company for all or any part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under Section 237
of the Corporations Act 2001.
Page | 37
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Non-Audit Services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor
are outlined in note 21 to the financial statements.
The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by
the Corporations Act 2001.
The directors are of the opinion that the services as disclosed in note 21 to the financial statements do not compromise the
external auditor's independence requirements of the Corporations Act 2001 for the following reasons:
●
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity
of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code
of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including
reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the company,
acting as advocate for the company or jointly sharing economic risks and rewards.
●
Officers of the Company Who are Former Partners of RSM Australia Partners
There are no officers of the company who are former partners of RSM Australia Partners.
Auditor’s Independence Declaration
The auditor’s independence declaration for the year ended 31 December 2023 has been received and can be found on
page 39 of the Financial Report.
Rounding of Amounts
The Company is of a kind referred to in Instrument 2016/191, issued by the Australian Securities and Investments
Commission, relating to the ‘rounding off’ of amounts in the Directors’ Report. Amounts in the Directors’ Report have been
rounded off in accordance with that Instrument to the nearest thousand dollars, or in certain cases, to the nearest dollar.
Auditor
RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the directors
Wanghong Yang
Chairman of the Board
28 March 2024
Page | 38
RSM Australia Partners
Level 32, Exchange Tower
2 The Esplanade Perth WA 6000
GPO Box R1253 Perth WA 6844
T +61 (0) 8 9261 9100
F +61 (0) 8 9261 9111
www.rsm.com.au
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Focus Minerals Limited for the year ended 31 December
2023, I declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
(ii)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 28 March 2024
AIK KONG TING
Partner
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent
accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Consolidated Financial Statements
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
Revenue from Contracts with Customers
Interest Income
Other Income
Expenses
Changes in Inventories
Mining and Processing Expenses
Government and Other Royalty Expenses
Employee Expenses
Depreciation and Amortisation Expenses
Finance Costs
Loss on Disposal of Tenements
Care and Maintenance Costs
Corporate and Other Expenses
Exploration Expenses
Loss Before Income Tax for the year
Income Tax Expense
Loss After Income Tax for the year
Other Comprehensive Income for the year, net of tax
Total Comprehensive Loss for the year
Loss per Share
Basic Loss per Share (Cents Per Share)
Diluted Loss per Share (Cents Per Share)
Notes
2(a)
2(b)
2(c)
2(c)
2(c)
2(c)
2(c)
2(c)
2(c)
2(c)
4
5
5
Consolidated
2023
$’000
33,080
757
1,999
4,287
(15,433)
(992)
(12,241)
(2,228)
(2,757)
(4,943)
(608)
(3,659)
(59)
(2,797)
-
(2,797)
-
(2,797)
2022
$’000
16,545
360
365
-
(11,458)
(418)
(3,368)
(883)
(2,039)
-
(1,342)
(1,900)
-
(4,138)
-
(4,138)
-
(4,138)
(0.98)
(0.98)
(1.44)
(1.44)
The accompanying notes form part of these financial statements.
Page | 40
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
Notes
Consolidated
31 December
2023
$’000
31 December
2022
$’000
Assets
Current Assets
Cash and Cash Equivalents
Trade and Other Receivables
Inventories
Total Current Assets
Non-Current Assets
Cash and Cash Equivalents - Restricted Cash
Property, Plant and Equipment
Right-of-use Assets
Mine Properties
Exploration and Evaluation Assets
Total Non-Current Assets
Total Assets
Liabilities
Current Liabilities
Trade and Other Payables
Provisions
Borrowings
Lease Liabilities
Total Current Liabilities
Non-Current Liabilities
Trade and Other Payables
Provisions
Borrowings
Lease Liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Issued Capital
Reserves
Accumulated Losses
Total Equity
6
7
23
6
8
9
10
10
11
12
14
13
11
12
14
13
15(a)
15(c)
15(d)
1,198
6,102
5,401
12,701
6,008
85,315
4,219
19,364
119,185
234,091
246,792
16,906
1,122
29,656
1,223
48,907
4,606
33,102
64,327
3,230
105,265
154,172
92,620
453,119
(7,178)
(353,321)
92,620
18,898
4,987
1,114
24,999
13,746
18,266
794
-
116,625
149,431
174,430
11,086
379
20,000
231
31,696
-
31,977
14,760
580
47,317
79,013
95,417
453,119
(7,178)
(350,524)
95,417
The accompanying notes form part of these financial statements.
Page | 41
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
Balance as at 31 December 2021
453,119
(346,386)
(7,178)
99,555
Issued
Capital
$’000
Accumulated
Losses
Reserves
$’000
$’000
Total
$’000
Loss after income tax for the year
Other comprehensive income
Total Comprehensive Loss for the year
-
-
-
(4,138)
-
(4,138)
-
-
-
(4,138)
-
(4,138)
Balance as at 31 December 2022
453,119
(350,524)
(7,178)
95,417
Balance as at 1 January 2023
453,119
(350,524)
(7,178)
95,417
Loss after income tax for the year
Other comprehensive income
Total Comprehensive Loss for the year
-
-
-
(2,797)
-
(2,797)
-
-
-
(2,797)
-
(2,797)
Balance as at 31 December 2023
453,119
(353,321)
(7,178)
92,620
The accompanying notes form part of these financial statements.
Page | 42
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
Notes
Consolidated
2023
$’000
2022
$’000
Cash Flows from Operating Activities
Receipts from Customers (Including GST)
33,176
13,487
Payments to Suppliers and Employees (Including GST)
(31,164)
(16,962)
Royalties Paid
Other Income
Interest Received
Finance Costs
Net Cash used in Operating Activities
6(ii)
Cash Flows from Investing Activities
Proceeds from Sale of Non-Current Assets
Acquisition of Plant and Equipment
Increase in Short-term Deposits
Decrease in Security Deposit
Payments for Development Activities
Payments for Exploration Expenditure
(992)
40
757
(3,184)
(1,367)
-
49
361
(1,066)
(4,131)
19
26
(60,463)
(10,029)
-
7,738
(13,133)
(9,905)
(4)
-
-
(9,374)
Net Cash used in Investing Activities
(75,744)
(19,382)
Cash Flows from Financing Activities
Proceeds from Rights Issue
Proceeds from Borrowings
Repayment of Borrowings
Repayment of Lease Liabilities
Net Cash from Financing Activities
Net decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at the Beginning of the Year
Effects of Exchange Rate Changes on Cash and Cash
Equivalents
Cash and Cash Equivalents at the End of the Year
6(i)
-
80,220
(20,027)
(691)
59,502
(17,609)
18,898
(91)
1,198
234
14,741
-
(130)
14,844
(8,668)
27,251
315
18,898
Page | 43
The accompanying notes form part of these financial statements.
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Notes to Consolidated Financial Statements
Note 1: Summary of Material Accounting Policies
The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below.
These policies have been consistently applied to all the years presented, unless otherwise stated. The financial statements
are for the Group consisting of Focus Minerals Ltd (‘the parent entity’ or “Focus”) and its subsidiaries (the ‘Group’ or
“consolidated Entity”).
(a) 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.
(b) Basis of Preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards
and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as
appropriate for for-profit oriented entities. These financial statements also comply with International Financial
Reporting Standards as issued by the International Accounting Standards Board ('IASB').
The consolidated financial statements are presented in Australian dollars (AUD), which is also the functional currency
of the parent company. The financial report covers the consolidated financial statements of Focus Minerals Ltd and
controlled entities. Focus Minerals Ltd is a for-profit, listed public company, incorporated and domiciled in Australia.
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through
other comprehensive income, investment properties, certain classes of property, plant and equipment and derivative
financial instruments.
(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.
The financial information for the parent entity, Focus Minerals Ltd, disclosed in Note 19 has been prepared on the
same basis as the consolidated financial statements other than investments in subsidiaries, which are held at cost.
(d) Going concern
The financial statements have been prepared on the going concern basis, which contemplates continuity of normal
business activities and the realisation of assets and discharge of liabilities in the normal course of business.
As disclosed in the financial statements, the Group incurred a net loss of $2,797,000 and net cash outflows from
operating and investing activities of $1,367,000 and $75,744,000 respectively for the year ended 31 December 2023.
As at that date, the Group had net current liabilities of $36,206,000, which include borrowings of $29,656,000 classified
as current. The Group had a cash balance of $1,198,000 as at reporting date.
These factors indicate a material uncertainty which may cast significant doubt as to whether the Group will continue
as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of
business and at the amounts stated in the financial report.
The Directors believe that there are reasonable grounds to believe that the Group will be able to continue as a going
concern after consideration of the following factors:
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Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
The Group is expected to receive continuing support from its major shareholder, Shandong Gold Group Co., Ltd.
(“Shandong”). As disclosed in Note 22, the Group had secured additional RMB100 million loan facility (AUD20.8
million) from Shandong of which, RMB50 million (AUD10.4 million) was drawn down on 6 February 2024. The
Group expects to draw down the balance of the facility in due course to fund its operations;
As disclosed in Note 14, the Group believes that it will be able to negotiate a favourable outcome on refinancing
the outstanding loans with Shandong when it is due and payable; and
The Group has the ability to manage its cash flows and cash reserves within budget, including scaling down
operations and capital expenditure if required to curtail expenditure in the event insufficient cash is available, in
order to meet projected expenditure.
Accordingly, the Directors believe that the Group will be able to continue as a going concern and that it is appropriate
to adopt the going concern basis in the preparation of the financial report.
The financial report does not include any adjustments relating to the amounts or classification of recorded assets or
liabilities that might be necessary if the Group does not continue as a going concern.
(e) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Executive Chairman.
(f) Principles of Consolidation
The consolidated financial statements incorporate the assets, liabilities and results of entities controlled by Focus
Minerals Ltd at the end of the reporting period and from time to time during the year. A controlled entity is any entity
over which Focus Minerals Limited has control of the entity, demonstrated by the Group’s exposure to, or rights to,
variable returns from its involvement with the entity and has the ability to affect those returns through its power to
direct the activities of the entity. In assessing the ability to control, the existence and effect of holdings of actual and
potential voting rights are also considered.
Where controlled entities have entered or left the Group during the year, the financial performance of those entities
are included only for the period of the year that they were controlled. A list of controlled entities is contained in Note
18 to the financial statements.
Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the
asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with
the policies adopted by the Group.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership
interest, without the loss of control, is accounted for as an equity transaction, where the difference between the
consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly
in equity attributable to the parent.
Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss
and other comprehensive income, statement of financial position and statement of changes in equity of the Group.
Losses incurred by the Group are attributed to the non-controlling interest in full, even if that results in a deficit balance.
Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-
controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The
Group recognises the fair value of the consideration received and the fair value of any investment retained together
with any gain or loss in profit or loss.
Page | 45
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
(g) Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates
of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from
the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognised in profit or loss.
(h) Revenue Recognition
Revenue is recognised for the major business activities as follows:
Sale of gold and other metals
Revenue from the sale of goods is recognised at the point in time when the customer obtains control of the goods.
Control is generally considered to have passed when:
Physical possession and risk of goods are transferred.
-
- Determination of accuracy of the metal content of the goods delivered; and
-
The refiner has no practical ability to reject the goods where it is within contractually specified terms.
Revenue from contracts with customers: Revenue is recognised at an amount that reflects the consideration to which
the consolidated entity is expected to be entitled in exchange for transferring goods or services to a customer. For
each contract with a customer, the consolidated entity: identifies the contract with a customer; identifies the
performance obligations in the contract; determines the transaction price which takes into account estimates of
variable consideration and the time value of money; allocates the transaction price to the separate performance
obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and
recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the
customer of the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as
discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events.
Such estimates are determined using either the 'expected value' or 'most likely amount' method. The measurement of
variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that
it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The
measurement constraint continues until the uncertainty associated with the variable consideration is subsequently
resolved. Amounts received that are subject to the constraining principle are recognised as a refund liability.
Interest Income: Interest revenue is recognised on a time proportionate basis that takes into account the effective yield
on the financial asset.
Dividends: Revenue is recognised when the Group’s right to receive the payment is established.
Rental Income: Rental income from mining leases is accounted for on a straight-line basis over the lease term.
Contingent rental income is recognised as income in the periods in which it is earned.
(i) Costs of Production
Cash costs of production include direct costs incurred for mining, processing and mine site administration, net of
costs capitalised to pre-strip and production stripping assets.
Royalty: Royalty expenses under existing royalty regimes are payable on sales and are therefore recognised as the
sale occurs.
Depreciation: Depreciation of mine specific plant and equipment and buildings and infrastructure is charged on a unit-
of-production basis over the mine inventory of the mine concerned (consistent with the Life of Mine plan), except in
the case of assets whose useful life is shorter than the life of the mine, in which case the straight-line method is used.
The unit of account is ounces of gold produced.
Amortisation: Mine properties are amortised on a unit-of-production basis over the mine inventory of the mine
concerned (consistent with the Life of Mine plan). The unit of account is ounces of gold produced.
Page | 46
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
(j) Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current
classification for the current reporting period.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
Group’s normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12
months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or
used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the Group’s normal operating cycle; it is
held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is
no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other
liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
(k) Cash and Cash Equivalents
Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand and short-term,
highly liquid deposits with an original maturity of three months or less. For the purposes of the statement of cash flows,
cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts
(l) Trade and Other Receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method, less allowance for expected for credit losses. Trade receivables are generally due for settlement
within 30 days.
The Group has applied the simplified approach to measuring expected credit loses, which uses a lifetime expected
loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
(m) Non-current assets held for sale
Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale
transaction rather than through continuing use and a sale is considered highly probable. They are measured at the
lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets
arising from employee benefits, financial assets and investment property that are carried at fair value and contractual
rights under insurance contracts, which are specifically exempt from this requirement.
An impairment loss is recognised for any initial or subsequent write-down of the asset to fair value less costs to sell.
A gain is recognised for any subsequent increases in fair value less costs to sell of an asset, but not in excess of any
cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of
the non-current asset is recognised at the date of derecognition.
Non-current assets are not depreciated or amortised while they are classified as held for sale. Interest and other
expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised.
Non-current assets classified as held for sale are presented separately from the other assets in the statement of
financial position. The liabilities of a disposal group classified as held for sale are presented separately from other
liabilities in the statement of financial.
A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and
that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated
plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to
resale. The results of discontinued operations are presented separately in the statement of profit or loss and other
comprehensive income.
Page | 47
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
(n) Inventories
Gold in circuit and ore stockpiles are physically measured or estimated and valued at the lower of cost and net
realisable value. Net realisable value less costs to sell is assessed annually based on the amount estimated to be
obtained from sale of the item of inventory in the normal course of business, less any anticipated costs to be incurred
prior to its sale.
Cost comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead
expenditure and depreciation and amortisation relating to mining activities, the latter being allocated on the basis of
normal operating capacity. Costs are assigned to individual items of inventory on the basis of weighted average costs.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of
completion and the estimated costs necessary to make the sale.
Inventories of consumable supplies and spare parts expected to be used in production are valued at the lower of
weighted average cost, which includes the cost of purchase as well as transportation and statutory charges, or net
realisable value. Any provision for obsolescence is determined by reference to specific stock items identified.
During the exploration and development phase, where the cost of extracting the ore exceeds the likely recoverable
amount, gold in circuit and ore stockpile inventory is written down to net realisable value.
(o) Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost,
which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or
before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except
where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing
the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated
useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the
leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are
subject to impairment or adjusted for any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for short-
term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are
expensed to profit or loss as incurred.
(p) Impairment of Financial Assets
The accounting policy for impairment of financial assets is explained in note 1(r).
(q) Income Tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are
enacted or substantively enacted by the reporting date.
Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
When the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a
transaction that is not a business combination and that, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; or
Page | 48
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
When the taxable temporary difference is associated with investments in subsidiaries, associates or interests in
joint ventures, and the timing of the reversal of the temporary difference can be controlled and it is probable that
the temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset
to be utilised.
Unrecognised deferred income tax assets attributable to income tax losses are reassessed at each reporting date and
are recognised to the extent that it has become probable that future taxable profits will be available to allow the deferred
tax asset to be recovered.
Determination of future taxable profits requires estimates and assumptions as to future events and outcomes, in
particular, whether successful development and commercial exploitation, or alternatively sale, of the respective areas
of interest will be achieved. This includes estimates and judgements about commodity prices, ore resources, exchange
rates, future capital requirements, future operational performance and the timing of estimated cash flows. Changes in
these estimates and assumptions could impact on the amount and probability of estimated taxable profits and
accordingly the recoverability of deferred tax assets.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted at the reporting date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the
same taxation authority.
Focus Minerals Ltd and its wholly-owned Australian controlled entities have implemented the tax consolidation
legislation. As a consequence, these entities are taxed as a single entity and the deferred tax assets and liabilities of
these entities are set off in the consolidated financial statements.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or
directly in equity, respectively.
(r) Financial Instruments
Financial assets
Classification:
The Group classifies its financial assets in the following measurement categories:
those to be measured subsequently at fair value, and
those to be measured at amortised cost.
The classification depends on whether the financial asset is an equity instrument or a debt instrument, the Group’s
business model for managing the financial assets and the contractual terms of the cash flows.
Measurement:
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at
fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial
asset. Transaction costs of financial assets carried at FVPL are expensed in profit or loss.
Equity instruments
The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected
to present fair value gains and losses on equity investments which are not held for trading, in OCI, there is no
subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment.
Page | 49
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Dividends from such investments continue to be recognised in profit or loss as other income when the Group’s right
to receive payments is established.
Changes in the fair value of financial assets at FVPL are recognised in other gains/(losses) in the statement of profit
or loss as applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at
FVOCI are not reported separately from other changes in fair value.
Debt instruments
Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and
the cash flow characteristics of the asset. There are three measurement categories into which the Group classifies
its debt instruments:
Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent
solely payments of principal and interest are measured at amortised cost. Interest income from these financial
assets is included in finance income using the effective interest rate method. Any gain or loss arising on
derecognition is recognised directly in profit or loss and presented in other gains/(losses), together with foreign
exchange gains and losses. Impairment losses are presented as separate line item in profit or loss.
FVPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL. A gain or loss on
a debt investment that is subsequently measured at FVPL is recognised in profit or loss and presented net within
other gains/(losses) in the period in which it arises.
FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the
assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in
the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest
revenue and foreign exchange gains and losses which are recognised in profit or loss. When the financial asset
is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or
loss and recognised in other gains/(losses). Interest income from these financial assets is included in finance
income using the effective interest rate method. Foreign exchange gains and losses are presented in other
gains/(losses) and impairment expenses are presented as separate line item in profit or loss.
Impairment:
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.
For trade receivables, the Group applies the simplified approach permitted by AASB 9, which requires expected
lifetime losses to be recognised from initial recognition of the receivables.
Financial liabilities
Financial liabilities held for trading are measured at FVPL, and all other financial liabilities are measured at amortised
cost.
(s) Goods and Services Tax (“GST”)
Revenues, expenses and assets are recognised net of the amount of GST except:
When the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in
which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as
applicable; and
Receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or
payables in the statement of financial position.
Page | 50
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Cash flows are included in the statement of cash flow on a gross basis and the GST component of cash flows arising
from investing and financing activities, which is recoverable from, or payable to, the taxation authority, are classified
as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation
authority.
(t) Property, Plant and Equipment
Property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.
Such cost includes the cost of replacing parts that are eligible for capitalisation when the cost of replacing the parts is
incurred. Similarly, when each major inspection is performed, its cost is recognised in the carrying amount of the plant
and equipment as a replacement only if it is eligible for capitalisation.
Depreciation
Depreciation on mobile plant is calculated on a straight-line basis over the estimated useful life of the assets being 2
– 25 years.
Depreciation of underground assets is calculated on a unit of production basis over the period of the life of mine plan.
Depreciation of the mill treatment assets is calculated on a unit of production basis over the period of the life of mine
plan.
The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at the
end of each reporting period.
Impairment
The carrying values of plant and equipment are reviewed for impairment when events or changes in circumstances
indicate that the carrying value may be impaired. Where this is the case then the recoverable amount of this plant and
equipment is estimated.
The recoverable amount of plant and equipment is the higher of fair value less costs of disposal 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 an asset that does not generate largely independent cash inflows, recoverable amount is determined for the cash-
generating unit to which the asset belongs, unless the asset’s value in use can be estimated to be close to its fair
value.
Impairment exists when the carrying value of an asset or cash-generating units exceeds its estimated recoverable
amount. The asset or cash-generating unit is then written down to its recoverable amount.
For plant and equipment, impairment losses are recognised in profit or loss.
De-Recognition and Disposal
An item of plant and equipment is derecognised upon disposal or when no further future economic benefits are
expected from its use or disposal.
Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds
and the carrying amount of the asset) is included in profit or loss in the year the asset is derecognised.
(u) Exploration and Evaluation Assets
Exploration and evaluation assets incurred by or on behalf of the Group is accumulated separately for each area of
interest. Such expenditure comprises direct costs and does not include general overheads or administrative
expenditure not having a specific nexus with a particular area of interest.
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Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Exploration expenditure for each area of interest is carried forward as an asset provided the rights to tenure of the
area of interest are current and one of the following conditions is met:
The exploration and evaluation expenditures are expected to be recouped through successful development and
exploitation of the area of interest, or alternatively, by its sale; or
Exploration and evaluation activities in the area of interest have not, at the reporting date, reached a stage which
permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active
and significant operations in, or in relation to, the area of interest is continuing.
Exploration expenditure is written off when it fails to meet at least one of the conditions outlined above or an area of
interest is abandoned.
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, or when the cash
generating unit that exploration expenditure assets are a part of are tested for impairment. When facts and
circumstances suggest that the carrying amount exceeds the recoverable amount the impairment loss will be
measured and disclosed in accordance with AASB 136 Impairment of Assets.
When a decision is made to develop an area of interest, all carried forward exploration expenditure in relation to the
area of interest is transferred to Mine Properties and Development.
(v) Mine Properties
Mine properties includes aggregate expenditure in relation to mine construction, mine development, exploration and
evaluation expenditure where a development decision has been made and acquired mineral interests.
Expenditure incurred in constructing a mine by, or on behalf of, the Group is accumulated separately for each area of
interest in which economically recoverable reserves and resources have been identified. This expenditure includes
direct costs of construction, drilling costs and removal of overburden to gain access to the ore, borrowing costs
capitalised during construction and an appropriate allocation of attributable overheads. Further, any revenue
generated during the pre-production phase of mining is recorded in profit and loss as revenue with appropriate costs
of production allocated and charged to profit or loss.
Mine development represents expenditure in respect of exploration and evaluation, overburden removal based on
underlying mining activities and related mining data and construction costs and development incurred by or on behalf
of the Group previously accumulated and carried forward in relation to properties in which mining has now commenced.
Such expenditure comprises direct costs and an appropriate allocation of directly related overhead expenditure.
All expenditure incurred prior to commencement of production from each development property is carried forward to
the extent to which recoupment out of future revenue from the sale of production, or from the sale of the property, is
reasonably assured. When further development expenditure is incurred in respect of a mine property after
commencement of commercial production, such expenditure is carried forward as part of the cost of the mine property
only when future economic benefits are reasonably assured, otherwise the expenditure is classified as part of the cost
of production and expensed as incurred. Such capitalised development expenditure is added to the total carrying value
of mine development being amortised.
Mine development costs (as transferred from exploration and evaluation and/or mines under construction) are
amortised on a units-of-production basis over the life of mine to which they relate. In applying the units of production
method, amortisation is calculated using the expected total contained ounces as determined by the life of mine plan
specific to that mine property. For development expenditure undertaken during production, the amortisation rate is
based on the ratio of total development expenditure (incurred and anticipated) over the expected total contained
ounces as estimated by the relevant life of mine plan to achieve a consistent amortisation rate per ounce. The rate
per ounce is typically updated annually as the life of mine plans are revised.
Mineral interests comprise identifiable exploration and evaluation assets, mineral resources and ore reserves, which
are acquired as part of a business combination or joint venture acquisition and are recognised at fair value at the date
of acquisition. Where possible, mineral interests are attributable to specific areas of interest and are classified within
mine properties.
Page | 52
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
(w) Development Expenditure
Once a mining project has been established as commercially viable and technically feasible, expenditure, other than
that on land, buildings and plant and equipment, is capitalised under development expenditure. Development
expenditure costs include past capitalised exploration and evaluation costs, preproduction development costs,
development excavation, development studies and other subsurface expenditure pertaining to that area of interest.
Costs related to surface plant and equipment and any associated land and buildings are accounted for as property,
plant and equipment.
Development costs are accumulated in respect of each separate area of interest. Costs associated with commissioning
new assets in the period before they are capable of operating in the manner intended by management, are capitalised.
Development costs incurred after the commencement of production are capitalised to the extent they are expected to
give rise to a future economic benefit.
When an area of interest is abandoned or the Directors decide that it is not commercial or technically feasible, any
accumulated cost in respect of that area is written off in the financial period the decision is made. Each area of interest
is reviewed at the end of each accounting period and accumulated cost written off to the profit or loss to the extent
that they will not be recoverable in the future.
Amortisation of carried forward exploration and development costs is charged on a unit of production basis over the
life of economically recoverable reserves once production commences.
Development assets are assessed for impairment if facts and circumstances suggest that the carrying amount exceeds
the recoverable amount. For the purposes of impairment testing, development assets are allocated to cash-generating
units to which the development activity relates. The cash generating unit shall not be larger than the area of interest.
(x) Development Stripping
Overburden and other mine waste materials are often removed during the initial development of a mine in order to
access the mineral deposit. This activity is referred to as development stripping. The directly attributable costs
(inclusive of an allocation of relevant operational overhead expenditure) are capitalised as development costs.
Capitalisation of development stripping costs ceases and amortisation of those capitalised costs commences upon
extraction of ore. Amortisation of capitalised development stripping costs is determined on a unit of production basis
for each separate area of interest.
Capitalised development and production stripping costs are classified as ‘Development Expenditure’. Development
stripping costs are considered in combination with other assets of an operation for the purpose of undertaking
impairment assessments.
Removal of waste material normally continues throughout the life of a mine. This activity is referred to as production
stripping and commences upon extraction of ore.
(y)
Intangible Assets
Software
Significant costs associated with software are deferred and amortised on a straight‐line basis over the period of their
expected benefit, being their finite life of 3 years.
(z)
Impairment of Non-Financial Assets
Goodwill and other intangible assets that have an indefinite useful life are not subject to amortisation and are tested
annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired.
Other non‐financial assets are reviewed for impairment whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's
carrying amount exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use
is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to
Page | 53
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
the asset or cash generating unit to which the asset belongs. Assets that do not have independent cash flows are
grouped together to form a cash‐generating unit.
(aa) Trade and Other Payables
Trade and other payables are recognised originally at fair value and subsequently measured at amortised cost using
the effective interest rate method. Trade and other payables represent liabilities for goods and services provided to
the Group prior to the end of each reporting period that are unpaid and arise when the Group becomes obliged to
make future payments in respect of the purchase of goods and services. Trade and other payables are presented as
current liabilities unless payment is not due within 12 months from the reporting date.
(bb) Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects
the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is
recognised as a borrowing cost.
(cc) Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the
present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit
in the lease or, if that rate cannot be readily determined, the consolidated entity's incremental borrowing rate. Lease
payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on
an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option
when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable
lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are
remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate
used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability
is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount
of the right-of-use asset is fully written down.
(dd) Employee Benefits
Wages, Salaries and Annual Leave
Liabilities for wages and salaries, including non-monetary benefits, leave-in-lieu (“Toil”) and annual leave expected
to be settled within 12 months of the reporting date are recognised in other payables in respect of employees’ services
up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled.
Liabilities for non-accumulating sick leave are recognised when the leave is taken and are measured at the rates paid
or payable.
Defined Contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
Long Service Leave
The liability for long service leave is recognised in the provision for employee benefits and measured as the present
value of expected future payments to be made in respect of services provided by employees up to the reporting date
using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience
of employee departures, and period of service.
Expected future payments are discounted using market yields at the reporting date on corporate bonds with terms to
maturity and currencies that match, as closely as possible, the estimated future cash outflows.
Page | 54
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Termination Benefits
Termination benefits are payable when employment is terminated before the normal retirement date, or when an
employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits
when it is demonstrably committed to either terminating the employment of current employees according to a detailed
formal plan without possibility of withdrawal or to providing termination benefits as a result of an offer made to
encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting period are
discounted to present value.
(ee) Borrowings
Borrowings:
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs.
They are subsequently measured at amortised cost using the effective interest method.
Finance Cost:
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed
in the period in which they are incurred.
(ff) Fair Value Measurement
When an asset or liability, financial or non‐financial, is measured at fair value for recognition or disclosure purposes,
the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date; and assumes that the transaction will take place
either: in the principal market; or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability,
assuming they act in their economic best interests. For non‐financial assets, the fair value measurement is based
on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient
data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising
the use of unobservable inputs.
(gg) Share-Based Payment Transactions
Equity Settled Transactions
The Group provides benefits to certain third parties and employees (including senior executives) in the form of share-
based payments. Third parties and employees render services to the Group in exchange for shares or rights over
shares (“equity-settled transaction”).
The cost of these equity-settled transactions with third parties and employees is measured by reference to the fair
value of the equity instruments at the date at which they are granted. The fair value is determined using an appropriate
model.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions linked
to the price of the shares of Focus Minerals Ltd (market conditions) if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period
in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant beneficiary
becomes fully entitled to the award (“vesting date”).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects
(i) the extent to which the vesting period has expired and (ii) the Group’s best estimate of the number of equity
instruments that will ultimately vest. No adjustment is made for the likelihood of market performance conditions being
met as the effect of these conditions is included in the determination of fair value at grant date. The profit or loss
charge or credit for a period represents the movement in cumulative expense recognised as at the beginning and
end of that period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only conditional
upon a market condition.
Page | 55
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense
not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled
award and designated as a replacement award on the date that it is granted, the cancelled and new award are treated
as if they were a modification of the original award.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of earnings
per share (see Note 5).
(hh) Issued Capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the proceeds.
(ii) Provision for Rehabilitation
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it
is more likely than not that an outflow of resources will be required to settle the obligation and the amount can be
reliably estimated. The mining, extraction and processing activities of the Group give rise to obligations for site
restoration and rehabilitation. Restoration and rehabilitation obligations can include facility decommissioning and
dismantling, removal or treatment of waste materials, land rehabilitation and site restoration. Provisions for the cost of
each rehabilitation program are recognised at the time that environmental disturbance occurs.
Provision for rehabilitation is initially measured at the expected value of future cash flows required to rehabilitate the
relevant site, discounted to their present value. The judgements and estimates applied for the estimation of the
rehabilitation provisions are discussed in Note 1(mm).
When provisions for rehabilitation are initially recognised, the corresponding cost is capitalised into the cost of the
related assets and is amortised using the units of production method over the life of the mine. The value of the provision
is progressively increased over time as the effect of discounting unwinds, creating an expense recognised in finance
costs.
At each reporting date, provision for rehabilitation is re-measured to account for any new disturbance, updated cost
estimates, inflation, changes to the estimated reserves and lives of operations, new regulatory requirements,
environmental policies and revised discount rates. Changes to the provision for Rehabilitation liability are added to or
deducted from the related rehabilitation asset and amortised accordingly.
(jj)
Government Grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant
will be received and the Group will comply with all attached conditions. Government grants relating to costs are
deferred and recognised in the profit or loss over the period necessary to match them with the costs that they are
intended to compensate. If the assets related to government grants have been fully impaired, amortised or depreciated,
the grant received is recorded in the statement of profit or loss as other income.
(kk) Loss per Share
Basic loss per share is calculated as net result attributable to members of the parent, adjusted to exclude any costs
of servicing equity (other than dividends) and preference share dividends, divided by the weighted average number of
ordinary shares, adjusted for any bonus element.
Diluted loss per share is calculated as net result attributable to members of the parent, adjusted for:
Costs of servicing equity (other than dividends) and preference share dividends.
The after-tax effect of dividends and interest associated with dilutive potential ordinary shares that have been
recognised as expenses; and
Other non-discretionary changes in revenues or expenses during the period that would result from the dilution of
potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential
ordinary shares, adjusted for any bonus element.
Page | 56
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
(ll) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
(mm) Critical Accounting Estimates and Judgements
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity’s accounting policies. The
areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant
to the financial statements, are disclosed below.
Exploration and Evaluation Expenditure
The Group’s accounting policy for exploration and evaluation expenditure results in expenditure being capitalised
for an area of interest where it is considered likely to be recoverable by future exploitation or sale or where the
activities have not reached a stage which permits a reasonable assessment of the existence of reserves. This
policy requires management to make certain estimates as to future events and circumstances, in particular
whether an economically viable extraction operation can be established. Any such estimates and assumptions
may change as new information becomes available. If, after having capitalised the expenditure under the policy,
a judgement is made that recovery of the expenditure is unlikely, the relevant capitalised amount will be written
off to profit and loss.
Restoration and Rehabilitation Provision
The Group’s accounting policy for the recognition of restoration and rehabilitation provision requires significant
estimates including the magnitude of possible works required for the removal of infrastructure and of rehabilitation
works, future cost of performing the work, the inflation and discount rates and the timing of cash flows. These
uncertainties may result in future actual expenditure differing from the amounts currently provided. When these
factors change or become known in the future, such differences will impact the mine rehabilitation provision in the
period in which they change or become known.
Estimation of Useful Lives of Assets
The Group determines the estimated useful lives and related depreciation and amortisation charges for its
property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a
result of technical innovations or some other event. The depreciation and amortisation charge will increase where
the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have
been abandoned or sold will be written off or written down.
Unit-of-production Method of Depreciation/Amortisation
The Group uses the unit-of-production basis when depreciating/amortising life of mine specific assets which
results in a depreciation/amortisation charge proportionate to the depletion of the anticipated remaining life of
mine production. Each asset’s economic life, which is assessed annually, has due regard for both its physical life
limitations and to present assessments of economically recoverable mine plan of the mine property at which it is
located. These calculations require the use of estimates and assumptions.
Provision for Impairment of Inventories
The provision for impairment of inventories assessment requires a degree of estimation and judgement. The level
of the provision is assessed by taking into account the recent change in technology, the ageing of inventories and
other factors that affect inventory obsolescence.
Development Stripping
The Group capitalises stripping costs incurred during the production phase of mining. As a result, the Group
distinguishes between the production stripping that relates to the extraction of inventory and that which relates to
the stripping asset.
The Group has identified its production stripping for each surface mining operation it identifies the separate
components of the ore bodies for each of its mining operations. An identifiable component is a specific volume of
the ore body that is made more accessible by the stripping activity. Judgement is required to identify and define
these components, and also to determine the expected volumes of waste to be stripped and ore to be mined in
each of these identified components.
Page | 57
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
These assessments are undertaken for each individual identified component based on life of mine strip ratio.
Judgement is also required to identify a suitable production measure to be used to allocate production stripping
costs between inventory and any stripping activity asset for each identified component.
(nn) Rounding
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to ‘rounding-off’. Amounts in this report have been rounded off in accordance with
that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
(oo) 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.
Page | 58
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Note 2: Revenues and Expenses
(a) Revenue from contracts with customers
Gold sales ***
Silver Sales ***
Total revenue from contracts with customers
*** All revenue is sold in Australia, with goods transferred at a point in time.
(b) Other income
Sundry income
Gain on disposal of assets
Net foreign exchange gains
Total other income
(c) Expenses
Changes in Inventories
Total changes in inventories
Mining and Processing Expenses
Total mining and processing Expenses
Government and Other Royalty Expenses
Total government and other royalty expenses
Depreciation and Amortisation Expenses
Depreciation – Plant and equipment
Depreciation – Right-of-use assets
Amortisation – Mine Development
Total depreciation and amortisation expenses
Finance Expenses
Interest provision – Asset Retirement Obligation
Interest expense paid/payable on lease liabilities
Interest expense paid/payable on long term borrowings
Other Finance Costs
Total finance expenses
Corporate and other expenses
Professional services and consulting fees
Short-term lease payments
Other Corporate expense
Total corporate and other expenses
Page | 59
Consolidated
31 December
2023
$’000
31 December
2022
$’000
33,034
46
33,080
40
18
1,941
1,999
16,545
-
16,545
44
26
295
365
(4,287)
-
15,433
11,458
992
418
1,058
893
277
2,228
1,067
263
1,177
250
2,757
531
55
3,073
3,659
141
134
608
883
714
20
1,160
145
2,039
900
31
969
1,900
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Employee Expenses
Total employee expenses
Loss on disposal of tenements
Total loss on disposal of tenements
Note 3: Segment Reporting
12,241
3,368
4,943
-
All Focus Minerals Limited’s subsidiaries are wholly owned. The Group has three reportable segments, as described below,
which are the Group’s strategic business units. The business units are managed separately as they require differing
processes and skills. The Executive Chairman reviews internal management reports on each of these business units on a
monthly basis.
Types of products and services
The principal products and services of this operating segment are the mining and exploration operations predominantly in
Australia.
Major customers
During the year ended 31 December 2023, $33,080,000 (2022: $16,545,000) of the Group’s external revenue was derived
from sales to the Perth Mint in Western Australia.
Segment Financial Information for the year ended 31 December 2023 is presented below:
2023
Coolgardie
$’000
2023
Laverton
$’000
2023
Corporate
$’000
2023
Consolidated
$’000
Revenue from Contracts with Customers
Interest Revenue
Other Income
Total Revenue
EBITDA
Interest Revenue
Depreciation and Amortisation Expenses
Finance cost
Loss before income tax expense
Income tax expense
Loss after income tax expense
Current Assets
Non-Current Assets
TOTAL ASSETS
Current Liabilities
Other Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
Page | 60
33,080
152
11
33,243
-
124
6
130
-
481
1,982
2,463
5,740
(461)
(3,848)
10,856
169,685
180,541
14,284
22,432
36,716
143,825
105
63,910
64,015
54
18,280
18,334
45,681
1,740
496
2,236
34,569
64,553
99,122
(96,886)
33,080
757
1,999
35,836
1,431
757
(2,228)
(2,757)
(2,797)
-
(2,797)
12,701
234,091
246,792
48,907
105,265
154,172
92,620
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Segment Financial Information for the year ended 31 December 2022 is shown below.
2022
Coolgardie
$’000
2022
Laverton
$’000
2022
Corporate
$’000
2022
Consolidated
$’000
Revenue from Contracts with Customers
16,545
31
15
16,591
-
43
15
58
-
286
335
621
3,400
(505)
(4,471)
9,444
84,516
93,960
10,184
15,045
25,229
68,731
238
65,488
65,726
86
17,326
17,412
14,228
516
14,744
21,426
14,946
36,372
48,314
(21,628)
16,545
360
365
17,270
(1,576)
360
(883)
(2,039)
(4,138)
-
(4,138)
23,910
150,520
174,430
31,696
47,317
79,013
95,417
Interest Revenue
Other Income
Total Revenue
EBITDA
Interest Revenue
Depreciation and Amortisation Expenses
Finance cost
Loss before income tax expense
Income tax expense
Loss after income tax expense
Current Assets
Non-Current Assets
TOTAL ASSETS
Current Liabilities
Other Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
.
Page | 61
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Note 4: Income Tax
Consolidated
31 December
2023
$’000
31 December
2022
$’000
The prima facie income tax expense on pre-tax accounting
loss from operations reconciles to the income tax expense in
the financial statements as follows:
Accounting loss before tax
Tax at the statutory income tax rate of 30% (2022: 30%)
(2,797)
(839)
(4,138)
(1,242)
Tax effect of amount which we are not deductible/(taxable) in
calculating taxable income:
Other deductible expense
Fixed assets
Rehabilitation provision
Immediate deduction for exploration costs
Unrecognised tax losses
Income tax expense/(benefit) recognised in profit or loss
(1,594)
(1)
320
(1,473)
3,587
-
108
(33)
489
(2,805)
3,483
-
The tax rate used in the above reconciliation is the corporate tax rate of 30% payable by Australian corporate entities on
taxable profits under Australian tax law. The Company has tax losses arising in Australia. The tax benefit of these losses
is available indefinitely for offset against future taxable profits of the companies in which the losses arose, subject to
ongoing conditions for deductibility being met.
Tax Consolidation
The Company and its 100% owned controlled entities have formed a tax consolidated group. Members of the Group
have entered into a tax sharing arrangement with effect from 30 June 2013 in order to allocate income tax expense to
the wholly owned controlled entities on pro-rata basis. The agreement provides for the allocation of income tax liabilities
between the entities should the head entity default on its tax payment obligations. At balance date, the possibility of
default is remote. The head entity of the tax consolidated group is Focus Minerals Ltd.
Tax Effect Accounting by Members of the Tax Consolidated Group
Members of the tax consolidated group have entered into a tax funding agreement with effect from 30 June 2013. The
tax funding agreement provides for the allocation of current taxes to members of the tax consolidated group. Deferred
taxes are allocated to members of the tax consolidated group in accordance with a group allocation approach which is
consistent with the principles of AASB 112 Income Taxes. The allocation of taxes under the tax funding agreement is
recognised as an increase/decrease in the controlled entities intercompany accounts with the tax consolidated group
head company, Focus Minerals Ltd.
Page | 62
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Unrecognised deferred tax balances
A net deferred tax balance has not been recognised in respect to the following items.
Deferred tax assets unrecognised:
Other deductible expenses
Rehabilitation provision
Inventory
Tax losses (revenue in nature)
Capital losses
Exploration & evaluation expenditure
Total
Consolidated
31 December
2023
$’000
31 December
2022
$’000
756
9,930
78
161,137
4,338
(35,755)
140,484
469
9,543
445
158,220
4,338
(34,988)
138,027
The deductible temporary differences and tax losses do not expire under current tax legislation. Deferred tax assets have
not been recognised in respect of these items because it is not probable that future taxable profit will be available against
which the Company can utilise the benefits thereof.
Note 5: Loss per Share
Basic Loss per share:
Total Basic Loss per Share
Diluted Loss per share
Total Diluted Loss per Share
Basic Loss per share
Consolidated
31 December 2023
Cents per Share
31 December 2022
Cents per Share
(0.98)
(1.44)
(0.98)
(1.44)
Net loss used in the calculation of basic loss per share ($000)
(2,797)
(4,138)
Weighted average number of ordinary shares for the purposes of basic
loss per share
286,558,645
286,558,645
Adjustments for calculation of diluted loss per share:
-
-
Weighted average number of ordinary shares for the purposes of diluted
loss per share
286,558,645
286,558,645
Page | 63
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Note 6: Cash, Cash Equivalents, Restricted Cash and Short-Term Deposits
Current Assets
Cash and cash equivalents
Non-Current Assets
Non-current – Restricted cash
Cash and cash equivalents
Consolidated
31 December
2023
$’000
31 December
2022
$’000
1,198
18,898
6,008
13,746
Cash at bank earns interest at floating rates based on daily deposit rates.
Cash deposits are made for varying periods up to three months, depending on the immediate cash requirements of the
Group, and earn interest at the respective commercial short-term deposit rates which is recognised as cash and cash
equivalents.
Short-term deposits
Short-term deposits have original maturity longer than three months and shorter than one year.
Restricted cash
Restricted cash includes performance bonds totalling $5.6 million (2022: $13.5 million) have been issued by a bank on
behalf of the Group in respect of Western Australian mining tenements. The Group has indemnified the bank against any
loss arising from the performance bonds and the indemnity is secured against cash deposits. Those are recognised as
restricted cash.
In addition, security deposits totalling $209,000 (2022: $210,000) are held on Focus’ behalf. These are also classified as
restricted cash.
(i)
Reconciliation to Statement of Cashflows
For the purposes of the Statement of Cash Flows, cash and cash equivalents comprise cash on hand and at bank and
short-term deposits, net of secured short-term deposits. Cash and cash equivalents as shown in the Statement of Cash
Flows is:
Cash, cash equivalents, restricted cash and short-term deposits
Less: Short-term Deposit
Less: Restricted cash not available for use
Cash and cash equivalents as per statement of cash flows
Consolidated
31 December
2023
$’000
31 December
2022
$’000
7,206
-
32,644
-
(6,008)
(13,746)
1,198
18,898
Page | 64
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
(ii)
Reconciliation of Loss for the Year to Net Cash Flows from Operating Activities
Net loss for the year
Adjustments for:
Depreciation expense
Proceeds from sale of non-current assets
Loss on disposal of tenements
Finance costs (non cash)
Foreign exchange movement
Exploration costs
(Increase)/decrease in assets:
Current receivables
Inventories
Increase/(decrease) in liabilities
Current payables
Provisions
Operating Lease
Net cash used in operating activities
(iii)
Non-cash investing and financing activities
Additions to the right-of-use assets
Additions to exploration
Total
(iv)
Changes in liabilities arising from financing activities
Consolidated
Balance as at 1 January 2022
Net cash from/used in financing activities
Non-cash movements
Balance as at 31 December 2022
Net cash from/(used in) financing activities
Non-cash movements
Balance as at 31 December 2023
Page | 65
Consolidated
31 December
2023
$’000
31 December
2022
$’000
(2,797)
(4,138)
2,228
(19)
4,943
1,067
(1,942)
-
(1,115)
(4,287)
446
800
(691)
(1,367)
883
(26)
-
734
(295)
40
(3,235)
(20)
1,876
50
-
(4,131)
Consolidated
31 December
2023
$’000
31 December
2022
$’000
4,318
-
4,318
726
893
1,619
Borrowings
$’000
Lease liability
$’000
20,000
14,741
19
34,760
60,193
(970)
93,983
211
(130)
730
811
(691)
4,333
4,453
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Note 7: Trade and Other Receivables
Gold Sales Receivable
Proceeds receivable from Rights Issue
Goods and Services Tax Receivable
Other receivables
Consolidated
31 December
2023
$’000
31 December
2022
$’000
2,961
216
634
2,291
6,102
3,057
216
1,032
682
4,987
There is no expected credit loss provision for the year ended 31 December 2023 (31 December 2022: Nil)
Note 8: Property, Plant and Equipment
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below.
Non-current
At 31 December 2022
Cost
Accumulated depreciation
Accumulated Impairment loss
Net carrying amount
Year ended
31 December 2023
Opening net book amount
Additions/transfer from WIP
Net transfer from Work in
Progress to Plant and Equipment
Depreciation expense
Assets disposed
Accumulated depreciation on
disposals
Land&
Buildings
$’000
Furniture &
fittings
$’000
Plant &
Equipment
$’000
Motor
Vehicles
$’000
Assets
in
progress
$’000
Total
$’000
25
-
(25)
-
-
9,302
-
(101)
-
-
1,094
(999)
(2)
93
37,850
(24,353)
(13,165)
332
656
(427)
-
229
17,612
-
-
17,612
57,237
(25,779)
(13,192)
18,266
93
13
-
(58)
-
-
332
64,264
-
(843)
(16)
16
229
116
17,612
68,109
18,266
141,804
-
(73,695)
(73,695)
(56)
(67)
65
-
-
-
(1,058)
(83)
81
Closing carrying amount
9,201
48
63,753
287
12,026
85,315
At 31 December 2023
Cost
Accumulated depreciation
Accumulated Impairment loss
Net carrying amount
9,327
(101)
(25)
9,201
1,107
(1,057)
(2)
48
102,098
(25,180)
(13,165)
63,753
705
(418)
-
287
12,026
-
-
12,026
125,263
(26,756)
(13,192)
85,315
During the year, the Group capitalised borrowing costs in relation to specific and general borrowings. The total borrowing
cost capitalised during the financial year is $4,233,000 (2022: Nil). The capitalisation rate in relation to the general
borrowings is 3% (2022: Nil). No borrowing costs were capitalised in the prior year.
Page | 66
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Non-current
At 31 December 2021
Cost
Accumulated depreciation
Impairment loss
Net carrying amount
Year ended
31 December 2022
Opening net book amount
Additions
Depreciation expense
Depreciation expense capitalised
to Exploration
Assets disposed
Accumulated depreciation on
disposals
Accumulated impairment on
disposals
Closing carrying amount
At 31 December 2022
Cost
Accumulated depreciation
Impairment loss
Net carrying amount
Note 9: Right-of-use Assets
Land&
Buildings
$’000
Furniture &
fittings
$’000
Plant &
Equipment
$’000
Motor
Vehicles
$’000
Assets
in
progress
$’000
Total
$’000
25
-
(25)
-
1,345
(1,274)
(2)
69
38,850
(25,278)
(13,165)
407
684
(416)
(50)
218
284
-
-
284
41,188
(26,968)
(13,242)
978
-
-
-
-
-
-
-
-
25
-
(25)
-
69
77
(24)
(29)
(328)
407
75
(113)
(37)
(1,075)
218
59
(4)
(45)
(87)
328
1,075
38
284
17,328
-
-
-
-
-
332
50
229
-
17,612
978
17,539
(141)
(111)
(1,490)
1,441
50
18,266
37,850
(24,353)
(13,165)
332
656
(427)
-
229
17,612
-
-
17,612
57,237
(25,779)
(13,192)
18,266
-
93
1,094
(999)
(2)
93
The Group leases land and buildings for its offices. In some cases, the agreements have options to extend. The leases
have various escalation clauses. On renewal, the terms of the leases are renegotiated.
The Group also leases land and buildings for staff accommodation under agreements of less than two years. These
leases are either short-term or low-value, so have been expensed as incurred and not capitalised as right-of-use assets.
The group also lease motor vehicles. The agreements are for 48 months with no option to extend.
Right-of-use Assets:
Land and Buildings*
Less: Accumulated Depreciation
Net Carrying Value
Plant & Equipment*
Less: Accumulated Depreciation
Net Carrying Value
Total
Consolidated
31 December
2023
$’000
31 December
2022
$’000
2,238
(529)
1,709
3,086
(576)
2,510
4,219
280
(171)
109
726
(41)
685
794
*During the year, the Group has entered into Lease Agreements for Land & Buildings and Plant & Equipment, including
Motor Vehicles, amount to additions of $4,318,000 (2022: $726,000)
Page | 67
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Land and buildings –
Right of Use
Plant & Equipment –
Right of Use
Total
31 December
31 December
31 December
Consolidated
$'000
$'000
$'000
Balance at 31 December 2021
Additions
Depreciation Expense
Balance at 31 December 2022
Additions
Depreciation Expense
Balance at 31 December 2023
202
-
(93)
109
1,958
(358)
1,709
-
726
(41)
685
2,360
(535)
2,510
202
726
(134)
794
4,318
(893)
4,219
Note 10: Mine Properties and Exploration and Evaluation Assets
Mine Properties
At 31 December 2022
Cost
Accumulated amortisation
Accumulated Impairment
Net Carrying amount
Movement Summary:
Carrying amount at beginning of the year
Add – expenditure capitalised
Add – Exploration asset transferred to Mine Development
Less – Amortisation
Carrying amount at end of the year
At 31 December 2023
Cost
Accumulated amortisation
Accumulated Impairment
Net Carrying amount
Consolidated
$’000
69,726
(65,358)
(4,368)
-
-
17,288
2,353
(277)
19,364
89,366
(65,634)
(4,368)
19,364
Mine properties includes aggregate expenditure in relation to mine construction, mine development, exploration and
evaluation expenditure where a development decision has been made and acquired mineral interests. Expenditure
includes direct cost of construction, drilling costs and removal of overburden to gain access to the ore and an appropriate
allocation of attributable overheads.
Mine development costs are amortised on a units-of-productions basis over the life of mine to which they relate.
Page | 68
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Exploration & Evaluation Assets
Consolidated
31 December
2023
$’000
31 December
2022
$’000
Exploration and evaluation assets – at cost
119,185
116,625
Movement Summary:
Carrying amount at beginning of the year
Add – exploration expenditure capitalised
Add – rehabilitation liability adjustment classified as Exploration
Less – Exploration asset transferred to Statement of Profit or Loss
Less – write-off of tenements allowed to lapse, dropped or sold
Less – Exploration asset transferred to Mine Development
Carrying amount at end of the year
116,625
9,856
-
-
(4,943)
(2,353)
119,185
106,961
9,355
893
(584)
-
-
116,625
The value of the Group’s interest in exploration and evaluation assets is dependent upon:
the continuance of the Group’s rights to tenure of the areas of interest;
-
the results of future exploration;
-
the recoupment of costs through successful development and exploitation of the areas of interest, or
-
alternatively, by their sale; and
no significant changes in laws and regulations that greatly impact the Group’s ability to maintain tenure.
-
Note 11: Trade and Other Payables
Trade payables and other payables
Payroll tax and other statutory liabilities
Current
Non-current
Note 12: Provisions
Consolidated
31 December
2023
$’000
21,179
31 December
2022
$’000
10,996
333
21,512
16,906
4,606
21,512
90
11,086
11,086
-
11,086
Employee Benefits – Amounts not expected to be settled within the next 12 months
The current provision for employee benefits includes all unconditional entitlements where employees have completed the
required period of service and also those where employees are entitled to pro-rata payments in certain circumstances. The
entire amount is presented as current, since the Group does not have an unconditional right to defer settlement. However,
based on past experience, the Group does not expect all employees to take the full amount of accrued leave or require
payment within the next 12 months.
Rehabilitation
The provision represents the present value of estimated costs for future rehabilitation of land explored or mined by the
Group at the end of the exploration or mining activities.
Page | 69
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Movements in provisions
Movements in each class of provision during the current financial year, are set out below:
Consolidated
31 December
31 December
2023
$’000
379
743
1,122
168
58
226
31,809
-
1,067
32,876
33,102
2022
$’000
278
101
379
219
(51)
168
30,178
917
714
31,809
31,977
Consolidated
31 December
2023
$’000
31 December
2022
$’000
1,223
3,230
231
580
Current
Employee benefits
Balance at the beginning of the year
Increase in provision during the year
Balance at the year end
Non-current
Employee benefits
Balance at the beginning of the year
Increase / (Utilised) in provision during the year
Balance at the year end
Provision for Rehabilitation
Balance at the beginning of the year
Additional provisions recognised
Unwinding discount
Balance at the year end
Total
Note 13: Lease Liabilities
Current
Lease Liabilities
Non-current
Lease Liabilities
Page | 70
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Note 14: Borrowings
Current Liabilities
Related Party Loans
Insurance Premium Finance
Consolidated
31 December
2023
$’000
31 December
2022
$’000
28,593
1,063
29,656
20,000
-
20,000
On 27 October 2023, the Group has repaid the AUD20.0 million loan in full to Shandong Gold Group Co., Limited.
On 26 July 2023, the Group secured a new RMB38.8 million loan facility with Shandong Gold Group Co., Limited. The
unsecured loan is payable 1 year after drawdown. Interest is payable quarterly in arrears at 6.5% per annum. The loan
was fully drawn down on 27 July 2023. The loan amount owing of RMB38.8 million has been revalued to an AUD amount
using the year end exchange rate of AUD1:RMB4.8544.
On 12 November 2023, the Group secured an additional RMB100.0 million loan facility with Shandong Gold Group Co.,
Limited. The unsecured loan is payable, 1 year after drawdown. Interest is payable quarterly in arrears at 6.5% per annum.
The loan was fully drawn down on 13 November 2023. The loan amount owing of RMB100.0 million has been revalued to
an AUD amount using the year end exchange rate of AUD1:RMB4.8544.
Non-Current Liabilities
Related Party Loans
64,327
14,760
On 8 December 2021, the Group secured a US10.0 million loan facility with Shandong Gold Financial Holdings Group
(HongKong) Co., Limited. The unsecured loan is payable, 3 years after drawdown. Interest is payable quarterly in arrears
at 3% per annum over the USD London Inter Lender Offered Rate. The loan was fully drawn down on 6 July 2022. The
loan amount owing of USD10.0 million has been revalued to an AUD amount using the year end exchange rate of
AUD1:USD0.6840.
On 19 January 2023, the Group secured an additional US35.0 million loan facility with Shandong Gold International Mining
Co., Limited. The unsecured loan is payable, 3 years after drawdown. Interest is payable quarterly in arrears at 3% per
annum over the USD London Inter Lender Offered Rate. USD34.0 million of the loan was drawn down on 2 March 2023,
with USD1 million unutilised as at 31 December 2023. The loan amount owing of US34.0 million has been revalued to an
AUD amount using the year end exchange rate of AUD1:USD0.6840.
Page | 71
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Note 15: Issued Capital and Reserves
Authorised Capital
The Company does not have an Authorised Capital and there is no par value for ordinary shares.
(a) Ordinary shares
31 December 2023
No. of
shares
$’000
31 December 2022
No. of shares
$’000
Issued capital
286,558,645
453,119
286,558,645 453,119
Movements in Ordinary Capital
Date
Details
Shares
Issue price
$’000
Balance
Balance
Balance
1 January 2022
31 December 2022
31 December 2023
286,558,645
286,558,645
286,558,645
453,119
453,119
453,119
Share Issue Details
During the year, there were no new shares issued new shares issued (2022: nil).
Voting Entitlements
At each shareholder’s meeting each ordinary share is entitled to one vote on the calling of a poll, otherwise each
shareholder is entitled to one vote on a show of hands.
(b) Capital Management
Management controls the capital of the Group in order to ensure the Group can fund its operations; continue as a going
concern and ensure compliance with banking covenants. The Group’s debt and capital includes ordinary share capital and
financial liabilities supported by financial assets and cash and cash equivalents. There are no externally imposed capital
requirements. Management effectively manages the Group’s capital by assessing the Group’s financial risks, adjusting its
capital structure in response to changes in these risks and in the market. These responses include the management of
debt levels, distributions to shareholders and share issues.
(c) Reserves
Acquisition reserve
Consolidated
31 December
2023
$’000
(7,178)
31 December
2022
$’000
(7,178)
(7,178)
(7,178)
The acquisition reserve resulted from acquisition of Focus Minerals (Laverton) Pty Ltd.
(d) Accumulated Losses
Accumulated losses at beginning of the year
Net loss for the year
Accumulated losses at end of the year
Page | 72
Consolidated
31 December
2023
$’000
(350,524)
(2,797)
(353,321)
31 December
2022
$’000
(346,386)
(4,138)
(350,524)
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
(e) Dividends
No dividends have been paid or provided for during the year ended 31 December 2023 (2022: Nil).
(f) Options
Options Issued
No options were issued in the year ended 31 December 2023 (2022: Nil).
Options Exercised
There were no options exercised during the year ended 31 December 2023 (2022: Nil).
Options Lapsed
During the year ended 31 December 2023, there were no options expired (2022: Nil).
Options Outstanding
There were no options outstanding as at 31 December 2023 (2022: Nil).
Note 16: Financial Instruments
The Group’s financial instruments consist mainly of deposits with banks, local money market instruments, and short-term
investments, accounts receivable and payable, convertible notes and derivatives.
The main purpose of non-derivative financial instruments is to raise finance for group operations.
The Group may consider the use of derivatives from time to time for hedging purposes such as forward gold sales
agreements. The Group does not speculate in the trading of derivative instruments.
Treasury Risk Management
Risks are reviewed by the Audit and Risk Committee which consists of non-executive directors and senior staff by invitation.
This includes the analysis of financial risk exposure and to evaluate treasury management strategies in the context of the
most recent economic conditions and forecasts.
The committee’s overall risk management strategy seeks to assist the Group in meeting its financial targets, whilst
minimising potential adverse effects on financial performance.
The Audit and Risk Committee operates under policies approved by the board of directors. Risk management policies are
reviewed and approved by the Board on a regular basis. These include the use of hedging derivative instruments, credit
policies and future cash flow requirements.
Financial Risk Exposures and Management
The main risks the Group is exposed to through its financial instruments are market risk (including interest rate risk and
price risk), credit risk and liquidity risk.
Price risk
The Group is exposed to bullion price risk. This arises from the gold in-circuit and ore stockpiles held as inventories.
The policy of the Group is to sell gold at the spot price and has not entered into any hedging contracts. The Group’s
revenue was exposed to fluctuations in the price of gold. If the average selling price of gold is $3,023 (2022: $2,659) for
the financial year had increased/decreased by 10%, the change in the profit before income tax for the Group would have
been an increase/decrease of $3,303,000 (2022: $1,654,000).
Interest Rate Risk
The Group’s exposure to risks of changes in market interest rates relates primarily to the Group’s cash balances. The
Group’s long-term borrowing is maintained at fixed rate.
Credit Risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised
financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement
of financial position and notes to the financial statements.
Credit risk is managed on a group basis and reviewed regularly by the finance department. It arises from exposures to
approved customers as well as deposits with financial institutions.
Page | 73
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
The Audit and Risk Committee monitors credit risk by actively assessing the rating quality and liquidity of counter parties:
only approved banks and financial are utilised;
all potential customers are rated for credit worthiness taking into account their size, market position and financial
standing.
The Group currently holds its cash and cash equivalents with various financial institutions, all of which hold a credit rating
of AA. The Group believes the credit risk exposure to these counterparties is manageable.
Credit risk for derivative financial instruments arises from the potential failure by counter-parties to the contract to meet
their obligations.
Liquidity Risk
The Group manages liquidity risk by monitoring forecast project and operating cash flows and ensuring that a minimum
level of uncommitted cash is available for immediate use and consists of cash on deposit and/or utilised borrowing facilities.
At the end of the year, the Group held deposits at call of $5.6 million (December 2021: $13.5 million).
Sensitivity Analysis
Interest Rate Analysis
At 31 December 2023, the Group had $5,799,000 invested in security deposits and performance bonds and $1,198,000 in
cash and cash equivalents and short-term deposits. A 1% increase in the interest rate would impact the interest earned by
$57,990. A 1% decrease in the rate would reduce interest earned by $57,990.
Maturities of Financial Liabilities
The table below analyses the Group’s financial liabilities into relevant maturity groupings based on their contractual
maturities for non-derivative financial liabilities.
Contractual maturities
of financial liabilities
Weighted
average
interest
rate
Less than
6 months
6-12
months
Between
1 and 2
years
Between
2 and 5
years
Over
5 years
Total
%
$’000
$’000
$’000
$’000
$’000
$’000
At 31 December 2023
Non-derivatives
Trade payables and
other payables
Related Party Loan
(RMB138.8 million)
Related Party Loan
(USD10 million)
Related Party Loan
(USD34 million)
Insurance premium
finance
-
16,906
-
4,606
6.50%
8.28%
8.08%
-
-
-
3.27%
1,063
28,592
-
14,620
-
-
-
-
-
49,708
-
-
-
-
Lease liabilities
6.50%
500
723
1,232
1,610
388
At 31 December 2022
Non-derivatives
Trade payables and
other payables
Related Party Loan
Related Party Loan
(USD10 million)
Lease liabilities
-
11,086
-
-
-
20,00.0
-
-
-
-
-
-
14,760
94
137
156
424
3.50%
6.17%
6.50%
-
-
-
-
-
-
-
-
-
21,512
28,592
14,620
49,708
1,063
4,453
11,086
20,000
14,760
811
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
Page | 74
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Foreign currency risk
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to foreign
currency risk through foreign exchange rate fluctuations.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and
cash flow forecasting.
The carrying amount of the consolidated entity's foreign currency denominated financial assets and financial liabilities at
the reporting date were as follows:
Consolidated
US dollars
Chinese yuan
Liabilities
2023
$'000
64,328
28,593
92,921
2022
$'000
14,760
-
14,760
The consolidated entity had net liabilities denominated in foreign currencies of $92,921,000 (foreign currency assets: nil)
as at 31 December 2023 (2022: $14,760,000, nil foreign currency assets). Based on this exposure, had the Australian
dollar weakened by 10%/strengthened by 10% (2022: weakened by 10%/strengthened by 10%) against these foreign
currencies with all other variables held constant, the consolidated entity's profit before tax for the year would have been
$9,292,100 lower/$9,292,100 higher (2022: $1,476,000 lower/$1,476,000 higher) and equity would have been $9,292,100
lower/$9,292,100 higher (2022: $1,476,000 lower/$1,476,000 higher). The percentage change is the expected overall
volatility of the significant currencies, which is based on management’s assessment of reasonable possible fluctuations
taking into consideration movements over the last 6 months each year and the spot rate at each reporting date.
The actual foreign exchange gain for the year ended 31 December 2023 was $1,941,000 (2022: gain of $295,000).
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Note 17: Commitments and Contingencies
Operating Mining tenement expenditure commitments
As at 31 December 2023, the Group has committed, under tenement landholding conditions, to spend a minimum of $3.2
million per annum (2022: $3.3 million).
For the Laverton tenements, the commitment for 2023 is $2.0 million (202: $2.0 million).
For the Coolgardie tenements, the commitment for 2023 is $1.2 million (2022: $1.3 million).
Contingent Asset
On 18th September 2020, Focus Minerals Limited entered an agreement to terminate the Coolgardie Rare Metals Venture
with Lithium Australia NL. Under the terms of the agreement, Focus Minerals Limited agreed to transfer 3 prospecting
licenses in exchange for a conditional grant of royalty equal to 20% of the statutory royalty paid to the State of Western
Australia. The licenses were transferred on 24th September 2021. Focus has lodged consent caveats to protect Focus
interest in the royalties. As at balance date, the related mining lease application (as conversion of the prospecting licenses)
is still pending, therefore the likelihood, amount, and timing of receiving future royalties under the agreement is unknown.
Because the royalty income is not virtually certain, no asset has been recognised within these financial statements.
Page | 75
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Contingent Liability
The Group has given security deposits as at 31 December 2023 of $166,000 (2022: $168,000) to various landlords. In
addition, the Group also has bank guarantees of $13.3 million (2022: $13.3 million) to the department of mines for mining
tenements. On 18 September 2023, the Group has obtained a non-financial letter of Guarantee facility of $18.0 million
from Bank of China, of which $8.3 million utilised and $9.7 million remains unutilised as at 31 December 2023.
Capital Commitments
The Group has the following capital commitments in relation to capital projects:
Capital commitments
Within one year
Note 18: Controlled Entities
Consolidated
2023
$'000
278
2022
$'000
33,337
The consolidated financial statements include the financial statements of Focus Minerals Ltd and the subsidiaries listed
below:
Name
Country of
Incorporation
% Equity Interest
31 December
2023
31 December
2022
Focus Operation Pty Ltd
Focus Minerals (Laverton) Pty Ltd
Australia
Australia
100%
100%
100%
100%
Note 19: Parent Entity
Set out below is the supplementary information about the parent entity.
Results of the parent entity
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
Financial position of parent entity at year end
Current assets
Total assets
Current Liabilities
Total liabilities
Total net asset
Total equity of parent entity comprising of:
Share capital
Accumulative losses
Total equity
Contingent Liability
Parent Entity
2023
$’000
(2,797)
-
(2,797)
1,740
191,743
34,569
99,123
92,620
2022
$’000
(4,138)
-
(4,138)
14,228
131,789
21,426
36,372
95,417
453,119
(360,499)
92,620
453,119
(357,702)
95,417
There are no contingent liabilities as at 31 December 2023 (2022: Nil).
Ultimate Controlling Entity
The ultimate parent at 31 December 2023 and 2022 was Shandong Gold International Mining Co., Limited which owned
62.84% (2022: 62,84%) of the company’s shares.
Page | 76
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Financial Support for controlled entities
The parent entity, Focus Minerals Ltd is providing and will continue to provide financial support to all its controlled entities.
Mining tenement expenditure commitment
As at 31 December 2023, the parent company has committed, under tenement landholding conditions, to spend a minimum
of $1.1 million per annum (2022: $1.1 million).
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the Group, as disclosed in note 1, except for the
following:
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
●
●
Investments in joint ventures are accounted for at cost, less any impairment, in the parent entity.
Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an
indicator of an impairment of the investment.
Note 20: Related Party Disclosure
Parent Entity
Focus Minerals Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in Note 18.
Compensation
The aggregate compensation made to directors and other members of key management personnel of the Group is set out
below:
Short-term employee benefits
Post-employment benefits
31 December 2023
$’000
31 December 2022
$’000
1,811
182
1,993
2,214
190
2,404
Terms and Conditions of Transactions with Related Parties
Sales to and purchases from related parties are made in arm’s length transactions both at normal market prices and on
normal commercial terms.
Transactions and Balances with Related Parties
During the year, the Group has obtained multi loans from Shandong Gold entities, details are stated in Note 14:
The balance of the loan payable to related parties was as follows:
Related Party
Shandong Gold Group Co. Ltd
Shandong Gold Financial Holdings Group (Hong Kong) Co., Ltd
Shandong Gold International Mining Co., Ltd
* RMB138.8 million converted to AUD using an exchange rate of 4.8544.
** USD44.0 million converted to AUD using an exchange rate of 0.6840.
2023
$’000
28,592*
14,620**
49,708**
2022
$’000
20,000
14,760
-
Total interest charged on the related party loans for the year ended 31 December 2023 was $5,141,000 (2022: $1,160,000),
Amount of interest payable at 31 December 2023 was $2,866,000 (2022: nil).
Page | 77
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
In addition, there was a payment of director fees $34,861 to Mr Song, who was appointed on 20 April 2023. As at 31
December 2023, the accounts payable balance for Shandong Gold director fees was $68,230 (2022: $42,388).
As at 31 December 2023, bonus payable balance to Directors and other members of key management personnel of the
Group was Nil (2022: $259,049).
Note 21: Auditors’ Remuneration
During the financial year the following fees were paid or payable for services provided by Accounting Firm RSM Australia,
the auditor of the company, its network firms and unrelated firms.
31 December 2023
$000
31 December 2022
$000
RSM Australia Partners - Audit and review of the financial statements
Total
104
104
65
65
Note 22: Significant Events after Balance Date
In early February 2024, Focus had secured an additional RMB100 million (AUD20.8 million) loan facility from Shandong
Gold Group Co., Ltd., of which, RMB50 million (AUD10.4 million) was drawn down on 6 February 2024. The key terms of
the loan are as follows:
Term: 1 year from draw down, principal payable at the end of the term
Interest: 6.5% per annum, payable quarterly in arrears.
Other than the above, there has not been any other matter or circumstance that has arisen after balance date that has
significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or the state
of affairs of the Group in future periods.
Consolidated
31 December
2023
$’000
31 December
2022
$’000
2,309
2,551
541
5,401
1,114
-
-
1,114
Note 23: Inventories
Current
Consumables
Gold in circuits
Ore stockpile
Page | 78
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Directors’ Declaration
In the directors’ opinion:
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by
the International Accounting Standards Board as described in note 1 to the financial statements;
the attached financial statements and notes give a true and fair view of the Group's financial position as at
31 December 2023 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
Wanghong Yang
Chairman of the Board
28 March 2024
Page | 79
RSM Australia Partners
Level 32, Exchange Tower,
2 The Esplanade Perth WA 6000
GPO Box R1253 Perth WA 6844
T +61 (0) 8 9261 9100
F +61 (0) 8 9261 9111
www.rsm.com.au
INDEPENDENT AUDITOR’S REPORT
To the Members of FOCUS MINERALS LIMITED
Opinion
We have audited the financial report of Focus Minerals Limited (the Company) and its subsidiaries (the Group),
which comprises the consolidated statement of financial position as at 31 December 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 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 31 December 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 Group 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 auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 1, which indicates that the Group incurred a net loss of $2,797,000 and had net cash
outflows from operating and investing activities of $1,367,000 and $75,744,000 respectively for the year ended
31 December 2023. As at that date, the Group had net current liabilities of $36,206,000. These events or
conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast
significant doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in respect of
this matter.
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent
accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have
determined the matters described below to be the key audit matters to be communicated in our report.
Key Audit Matter
How our audit addressed this matter
Carrying Value of Exploration and Evaluation Assets -Refer to Note 10 in the financial statements
The Group has capitalised exploration and evaluation
assets with a carrying value of $119,185,000 as at 31
December 2023.
We considered this to be a key audit matter due to the
significant management
in
assessing the carrying value of the asset including:
judgments
involved
• Determination of whether the exploration and
evaluation assets can be associated with finding
specific mineral resources and the basis on which
that expenditure is allocated to an area of interest;
• Assessing whether exploration activities have
reached a stage at which the existence of
economically
reserves may be
determined; and
recoverable
• Assessing whether any indicators of impairment
are present and if so, judgement applied to
determine and quantify any impairment loss.
Our audit procedures included:
• Assessing the Group’s accounting policy for
Accounting
Australian
with
compliance
Standards;
• Obtaining a schedule of the areas of interest held
by the Group and testing on a sample basis that
the right to tenure of each relevant area of interest
remained current at reporting date;
• Testing a sample of additions to supporting
documentation and ensuring
the amounts
capitalised during the year are in compliance with
the Group’s accounting policy and relate to the
area of interest;
• Critically assessing and evaluating management’s
determination of exploration and evaluation
assets transfer to mine properties and impairment
provided for during the year are appropriate;
• Assessing management’s determination
that
exploration activities have not yet progressed to
the stage where the existence or otherwise of
economically
reserves may be
determined;
recoverable
• Enquiring with management and reading budgets
and other documentation as evidence that active
and significant operations in, or relation to, the
area of interest will be continued in the future;
• Assessing
and
evaluating management’s
assessment of whether indicators of impairment
existed at the reporting date; and
• Assessing the appropriateness of the disclosures
in the financial statements.
Key Audit Matter
Carrying Value of Mine Properties and Property, Plant and Equipment - Refer to Note 8 and 10 in the
financial statements
How our audit addressed this matter
The Group has mine properties and property, plant
and equipment with a carrying value of $19,364,000
and $85,315,000 respectively as at 31 December
2023.
We considered this to be a key audit matter due to
to
significant
determine the carrying value at the reporting date. The
significant judgements include:
judgments made by management
• Application of the units of production method in
determining the amortisation charge for the year.
This included determining the appropriate ore
reserve estimate and
the cost allocation
attributable to mine properties;
• Determination of useful life of assets that is ready
for use; and
• Assessing whether any impairment indicators
existed at the reporting date in relation to the mine
properties and property, plant and equipment.
Our audit procedures included:
to
key
inputs
testing
• Assessing the Group’s accounting policy for
compliance with Australian Accounting Standards;
• Assessing management’s amortisation models
and
supporting
documentation. This included an assessment of
the work performed by the management’s expert
in respect of the ore reserve estimate, including
the competency and objectivity of the expert;
• Testing a sample of additions to supporting
documentation and ensuring
the amounts
capitalised during the year are in compliance with
the Group’s accounting policy;
• Testing the mathematical accuracy of the rates
applied for amortisation;
• Critically assessing management’s determination
of useful life of assets and challenge management
assumptions used;
• Critically assessing and evaluating management’s
indicators and
impairment
assessment of
conclusion reached; and
Inventories – Valuation and Existence - Refer to Note 23 in the financial statements
• Assessing the appropriateness of disclosure in the
financial statements.
As at 31 December 2023, the Group’s inventories
comprised of:
-
Consumables of $2,309,000;
- Gold in-circuit of $2,551,000; and
- Ore stockpiles of $541,000.
The valuation and existence of
inventories are
considered a key audit matter due to their material
balance on consolidated statement of
financial
position and significant
judgments made by
management to determine the carrying value at the
reporting date. The significant judgements include:
• Valuation of inventories is based on an inventory
costing model developed by management, which
considers the direct costs (cash and non-cash)
incurred at each stage of the production process;
• Estimation of the quantity of ore stockpiles based
on survey reports prepared by a management
expert;
• Estimation of the processing costs; and
• Estimation of the gold quantity contained in the ore
stockpiles and gold in-circuit.
Our audit procedures included:
• Assessing the Group’s accounting policy for
compliance with Australian Accounting Standards;
• Assessing the methodology and key assumptions
in the Group’s inventory costing model for gold in
circuit and ore stockpiles, including agreeing key
inputs to supporting documentation;
• Critically assessing and evaluating survey reports
prepared by a management expert in relation to
existence of ore stockpiles at reporting date;
• Attending consumable stocktake at reporting date;
• Critically assessing and evaluating management’s
assessment of net realisable value; and
• Assessing the appropriateness of disclosure in the
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 31 December 2023 but does not include the financial report and
the 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 conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of 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 have no realistic
alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: https://www.auasb.gov.au/auditors_responsibilities/ar2.pdf. This
description forms part of our auditor's report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 31 December 2023.
In our opinion, the Remuneration Report of Focus Minerals Limited for the year ended 31 December 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.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 28 March 2024
AIK KONG TING
Partner
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Shareholder Information
Additional information required by the Australian Securities Exchange Listing Rules and not disclosed elsewhere in this
report. The information was prepared based on share registry information processed up to 1 March 2024.
Range of Units
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Rounding
Total
Total holders
1,030
1,521
390
505
128
3,574
Units
454,358
3,706,908
2,905,158
15,908,099
263,584,122
286,558,645
% Units
0.16
1.29
1.01
5.55
91.98
0.01
100.00
Unmarketable Parcels
Minimum $ 500.00 parcel at $ 0.165 per unit
Minimum Parcel Size
3,031
Holders
2,162
Units
2,595,562
Substantial Shareholders
As at 1 March 2024, the following had notified the Company as being substantial shareholders:
Shandong Gold International Mining Corporation Limited
HSBC Custody Nominees (Australia) Limited
181,079,908 ordinary shares
16,238,085 ordinary shares
Voting Rights
All ordinary shares carry one vote per share without restriction. Options for ordinary shares do not carry any voting rights.
Statement of Quoted Securities
Quoted on the Australian Securities Exchange are 286,558,645 ordinary shares.
Page | 84
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Twenty Largest Shareholders of Each Class of Quoted Securities
Ordinary Fully Paid Shares (ungrouped) as at 1 March 2024
Rank Name
1 SHANDONG GOLD INTERNATIONAL MINING CORPORATION LIMITED
2 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
3 BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
4 CITICORP NOMINEES PTY LIMITED
5 BNP PARIBAS NOMS PTY LTD
6 CAMITOSA PTY LTD
7 KAHUNA CLOTHING AND TRADING CO PTY LTD
8 MRS ETERNALINA ELLIS
9 RP ADMIN PTY LTD
10 BNP PARIBAS NOMINEES PTY LTD
11 MRS SUZANNE JOY ROBERTSON
12 ERIC'S PTY LIMITED
13
ISANTI HOLDINGS PTY LTD
14 MR YIFEI WANG
15 MOCOCO PTY LTD
16 MR ZHAOYA WANG
17 SWISS TRADING OVERSEAS CORP
18 FOCUS MINERALS LIMITED
19 MR GEORGE SCOTT MILLING + MRS STEPHANIE MAY MILLING
20 MS HUALIN YAO
Totals: Top 20 holders of ORDINARY SHARES (Total)
Total Remaining Holders Balance
Units
% Units
180,079,908
62.84
16,238,085
10,892,063
5,036,024
4,573,927
2,055,813
2,000,493
1,600,000
1,433,055
1,410,291
1,230,000
1,100,000
1,100,000
1,054,490
1,004,733
900,000
883,740
863,483
829,299
788,515
235,073,919
51,484,726
5.67
3.80
1.76
1.60
0.72
0.70
0.56
0.50
0.49
0.43
0.38
0.38
0.37
0.35
0.31
0.31
0.30
0.29
0.23
82.03
17.97
Page | 85
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Interest in Mining Tenements
Coolgardie Gold Project - Focus Minerals Ltd and its 100% subsidiaries
State
Project
Tenement
Status
Interest
State
Project
Tenement
Status
Interest
Bayleys
M15/0150
Bayleys
M15/0630
Bayleys
M15/1434
Bayleys
M15/1788
Bayleys
P15/5717
Bayleys
P15/5995
Bayleys
P15/6254
Bayleys
P15/6256
Bonnie Vale
M15/0277
Bonnie Vale
M15/0365
Bonnie Vale
M15/0595
Bonnie Vale
M15/0662
Bonnie Vale
M15/0711
Bonnie Vale
M15/0770
Bonnie Vale
M15/0852
Bonnie Vale
M15/0857
Bonnie Vale
M15/0877
Bonnie Vale
M15/0981
Bonnie Vale
M15/1384
Bonnie Vale
M15/1444
Bonnie Vale
M15/1760
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Bonnie Vale
P15/5159
Bonnie Vale
P15/5702
Bonnie Vale
P15/5703
Bonnie Vale
P15/5704
Bonnie Vale
P15/6598
Bonnie Vale
P15/6670
Live
Live
Live
Live
Live
Live
Bonnie Vale
P15/6801
Pending
Gunga
Gunga
Gunga
Gunga
P15/6825
Pending
P15/6826
Pending
P15/6827
Pending
P15/6828
Pending
Infrastructure
L15/0027
Infrastructure
L15/0028
Infrastructure
L15/0034
Infrastructure
L15/0042
Infrastructure
L15/0051
Infrastructure
L15/0059
Infrastructure
L15/0063
Live
Live
Live
Live
Live
Live
Live
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
Page | 86
100%
WA
Infrastructure
L15/0403
Pending
100%
WA
Infrastructure
L15/0405
Pending
100%
WA
Infrastructure
L15/0421
Pending
100%
WA
Infrastructure
L15/0455
Pending
100%
WA
Infrastructure
L15/0458
Pending
100%
WA
Infrastructure
L15/0459
100%
WA
Londonderry
P15/5964
100%
WA
Londonderry
P15/5966
100%
WA
Londonderry
P15/5967
100%
WA
Londonderry
P15/5968
100%
WA
Londonderry
P15/5971
100%
WA
Londonderry
P15/5972
100%
WA
Londonderry
P15/6118
100%
WA
Londonderry
P15/6119
100%
WA
Londonderry
P15/6120
100%
WA
Londonderry
P15/6121
100%
WA
Londonderry
P15/6122
100%
WA
Londonderry
P15/6123
100%
WA
Londonderry
P15/6176
100%
WA
Londonderry
P15/6177
100%
WA
Londonderry
P15/6178
100%
WA
Lord Bob
M15/1789
100%
WA
Lord Bob
P15/5712
100%
WA
Lord Bob
P15/5939
100%
WA
Lord Bob
P15/6102
100%
WA
100%
WA
0%
0%
0%
0%
0%
WA
WA
WA
WA
WA
100%
WA
100%
WA
Norris
Norris
Norris
Norris
Norris
Norris
Norris
Norris
Norris
Norris
Norris
M15/0384
M15/0515
M15/0761
M15/0791
M15/0871
M15/1153
M15/1422
M15/1793
P15/6002
P15/6033
P15/6605
100%
WA
Three Mile Hill
M15/0154
100%
WA
Three Mile Hill
M15/0636
100%
WA
Three Mile Hill
M15/0645
100%
WA
Three Mile Hill
M15/0781
100%
WA
Three Mile Hill
M15/0827
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
0%
0%
0%
0%
0%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Infrastructure
G15/0007
Live
100%
WA
Infrastructure
G15/0046
Pending
0%
WA
Bonnie Vale
M15/1853
Pending
0%
WA
Lord Bob
M15/0385
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
State
Project
Tenement
Status
Interest
State
Project
Tenement
Status
Interest
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
Infrastructure
L15/0077
Infrastructure
L15/0078
Infrastructure
L15/0088
Infrastructure
L15/0090
Infrastructure
L15/0095
Infrastructure
L15/0096
Infrastructure
L15/0114
Infrastructure
L15/0116
Infrastructure
L15/0119
Infrastructure
L15/0122
Infrastructure
L15/0123
Infrastructure
L15/0126
Infrastructure
L15/0127
Infrastructure
L15/0130
Infrastructure
L15/0161
Infrastructure
L15/0164
Infrastructure
L15/0168
Infrastructure
L15/0169
Infrastructure
L15/0171
Infrastructure
L15/0172
Infrastructure
L15/0173
Infrastructure
L15/0174
Infrastructure
L15/0175
Infrastructure
L15/0177
Infrastructure
L15/0179
Infrastructure
L15/0186
Infrastructure
L15/0193
Infrastructure
L15/0194
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
100%
WA
Three Mile Hill
M15/1341
100%
WA
Three Mile Hill
M15/1357
100%
WA
Three Mile Hill
M15/1358
100%
WA
Three Mile Hill
M15/1359
100%
WA
Three Mile Hill
M15/1432
100%
WA
Tindals
M15/0023
100%
WA
Tindals
M15/0237
100%
WA
Tindals
M15/0410
100%
WA
Tindals
M15/0411
100%
WA
Tindals
M15/0412
100%
WA
Tindals
M15/0646
100%
WA
Tindals
M15/0660
100%
WA
Tindals
M15/0675
100%
WA
Tindals
M15/0958
100%
WA
Tindals
M15/0966
100%
WA
Tindals
M15/1114
100%
WA
Tindals
M15/1262
100%
WA
Tindals
M15/1293
100%
WA
Tindals
M15/1294
100%
WA
Tindals
M15/1433
100%
WA
Tindals
M15/1461
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
WA
Tindals
M15/1903
Pending
0%
100%
WA
Tindals
P15/6251
100%
WA
Tindals
P15/6252
100%
WA
Tindals
P15/6253
100%
WA
Tindals
P15/6257
Live
Live
Live
Live
100%
100%
100%
100%
100%
WA
Tindals
P15/6333
Pending
0%
100%
WA
Tindals
P15/6335
Live
100%
WA
Infrastructure
L15/0200
Live
100%
WA
Lepidolite Hill
M15/1874
Pending
WA
Infrastructure
L15/0211
Live
100%
WA
Lepidolite Hill
P15/5574
Live
WA
Infrastructure
L15/0283
Live
100%
WA
Lepidolite Hill
P15/5575
Live
WA
Infrastructure
L15/0294
Live
100%
WA
Lepidolite Hill
P15/5739
Live
WA
Infrastructure
L15/0371
Live
100%
Royalty
Interest
Royalty
Interest
Royalty
Interest
Royalty
Interest
Page | 87
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
Laverton Gold Project - Focus Minerals Ltd and its 100% subsidiaries
State
Project
Tenement
Status
Interest
State
Project
Tenement
Status
Interest
Admiral Hill -
Barnicoat
Admiral Hill -
Barnicoat
Admiral Hill -
Barnicoat
Admiral Hill -
Barnicoat
Admiral Hill -
Barnicoat
Admiral Hill -
Barnicoat
Admiral Hill -
Barnicoat
Admiral Hill -
Barnicoat
Admiral Hill -
Barnicoat
Admiral Hill -
Barnicoat
Admiral Hill -
Barnicoat
Admiral Hill -
Barnicoat
Admiral Hill -
Barnicoat
Admiral Hill -
Barnicoat
Admiral Hill -
Barnicoat
Admiral Hill -
Barnicoat
Admiral Hill -
Barnicoat
Burtville
Burtville
Burtville
Burtville
Burtville
Burtville
Burtville
Burtville
Burtville
Burtville
Burtville
Burtville
Burtville
Burtville
E38/1864
Live
100%
WA
Chatterbox
M38/0693
Live
100%
E38/3232*
Live
100%
WA
Infrastructure
G38/0020*
Live
100%
E38/3238*
Live
100%
WA
Infrastructure
G38/0024*
Live
100%
E38/3565*
Live
100%
WA
Infrastructure
G38/0025*
Live
100%
E38/3661*
Live
100%
WA
Infrastructure
G38/0033*
Live
100%
E38/3691*
Pending
E38/3824*
Pending
0%
0%
WA
Infrastructure
L38/0034*
WA
Infrastructure
L38/0052*
M38/0264
Live
100%
WA
Infrastructure
L38/0053*
M38/0318
Live
100%
WA
Infrastructure
L38/0054*
M38/0376
Live
100%
WA
Infrastructure
L38/0055*
M38/0377
Live
100%
WA
Infrastructure
L38/0056*
M38/0387
Live
100%
WA
Infrastructure
L38/0057*
M38/0401
Live
100%
WA
Infrastructure
L38/0063*
M38/0507
Live
100%
WA
Infrastructure
L38/0075*
M38/1032
Live
100%
WA
Infrastructure
L38/0076*
M38/1042
Live
100%
WA
Infrastructure
L38/0078*
P38/4519*
Live
100%
WA
Infrastructure
L38/0092*
E38/1642
E38/2032
E38/3050**
E38/3051**
E38/3088*
E38/3217*
Live
Live
Live
Live
Live
Live
100%
WA
Infrastructure
L38/0101*
100%
WA
Infrastructure
L38/0108*
100%
WA
Infrastructure
L38/0152*
100%
WA
Infrastructure
L38/0153*
100%
WA
Infrastructure
L38/0160*
100%
WA
Infrastructure
L38/0165*
E38/3659*
Pending
E38/3816*
Pending
0%
0%
WA
Infrastructure
L38/0166*
WA
Infrastructure
L38/0173*
M38/0008
M38/0073
M38/0089
M38/0261
M38/1281
P38/4547*
Live
Live
Live
Live
Live
Live
Live
100%
WA
Infrastructure
L38/0177*
91%
91%
WA
Infrastructure
L38/0179*
WA
Infrastructure
L38/0183*
100%
WA
Infrastructure
L38/0231*
100%
WA
Infrastructure
L38/0335*
100%
WA
Infrastructure
L38/0336*
100%
WA
Infrastructure
L38/0337*
WA
Infrastructure
L38/0338*
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Central Laverton
E38/3424*
Central Laverton
E38/3858*
Pending
Central Laverton
E38/3859*
Pending
0%
0%
WA
Infrastructure
L38/0339*
Pending
0%
Central Laverton
M38/0143
Central Laverton
M38/0236
Central Laverton
M38/0270
Central Laverton
M38/0342
Central Laverton
M38/0345
Live
Live
Live
Live
Live
100%
WA
Lake Carey
E38/2873*
100%
WA
Lancefield
E38/3186*
100%
WA
Lancefield
M38/0037
100%
WA
Lancefield
M38/0038
100%
WA
Lancefield
M38/0159
Live
Live
Live
Live
Live
100%
100%
100%
100%
100%
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
Page | 88
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
Central Laverton
M38/0363
Central Laverton
M38/0364
Central Laverton
M38/1187
Chatterbox
E38/3639*
Chatterbox
E38/3821*
Live
Live
Live
Live
Live
100%
WA
Lancefield
M38/0547*
100%
WA
Lancefield
M38/1272
100%
WA
Lancefield
P38/4347*
100%
WA
Lancefield
P38/4348*
100%
WA
Lancefield
P38/4349*
Chatterbox
E38/3823*
Pending
Chatterbox
E38/3830*
Pending
Chatterbox
E38/3832*
Pending
0%
0%
0%
WA
Prendergast
E38/1725
WA
Prendergast
E38/1869
WA
Prendergast
E38/2862**
Chatterbox
M38/0049
Chatterbox
M38/0101
Live
Live
100%
WA
Prendergast
P38/4551*
100%
WA
Murrin Murrin
M38/0425*
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Chatterbox
M38/0535
Live
100%
WA
Murrin Murrin
M38/0505*
Live
100%
100%
100%
100%
100%
100%
100%
100%
100%
Gold
Rights
Gold
Rights
* and ** see note within Royalty Agreements section for the Laverton Gold Project.
Tenement Abbreviations:
E
P
M
L
G
=
=
=
=
=
Exploration Licence
Prospecting Licence
Mining Lease
Miscellaneous Licence
General Purpose Licence
ROYALTY AGREEMENTS
Coolgardie Gold Project
The Parent Entity has entered into the following deeds of assignment for royalty agreements relating to the Coolgardie
Gold Project. The material terms of these royalty agreements are set out in the table below:
Tenements
Royalty
M15/645 (portion of)
$1.00/tonne crushed and treated
M15/660, M15/646, M15/1114, M15/1262,
P15/6251, P15/6252 & P15/6257
$0.25/tonne mined and treated (after 2,500,000 tonnes or ore have
been mined and treated)
M15/646 (portion of)
M15/781 & M15/827
M15/365, M15/662, M15/711, M15/770,
M15/852, M15/857, M15/981, M15/1384 &
M15/1760
2% of all future gold production
0.5% NSR
2.5% NSR
M15/660 (portion of), M15/646 (portion of),
M15/958 & M15/1114
$10/ounce gold produced (after first 100,000 ounces produced) &
3% NSR on all other metals
M15/958 (portion of)
$0.75/dry tonne mined and treated
M15/958 (portion of)
M15/1357 & M15/1358
M15/1341 & M15/1359
M15/675
M15/237
M15/1461
E15/986
$1.50/tonne mined and treated
1.5% NSR on gold & 1% NSR on all other metals
2.5% NSR on gold & 1% NSR on all other metals
$1/tonne mined and treated
1.5% NSR
$1.00/tonne mined and treated
2.5% NSR
P15/6254 (portion of)
$1.00/tonne mined and treated.
Page | 89
Focus Minerals Ltd – Annual Report for the year ended 31 December 2023
ROYALTY AGREEMENTS Continued
Laverton Gold Project
The Parent Entity has entered into the following deeds of assignment for royalty agreements relating to the Laverton
Gold Project. The material terms of these royalty agreements are set out in the table below:
Tenements
M38/376 & M38/377
M38/143
All tenements at Laverton owned by Focus
Minerals (Laverton) Ltd (all tenements listed in the
"Interest in Mining Tenements - Laverton Gold
Project" section above except those with an *.
Those marked with an ** only portion of)
M38/37, M38/38, M38/49, M38/101, M38/159,
M38/342, M38/363, M38/364, M38/535, M38/693,
M38/1272, E38/1642 & E38/1725
M38/1042
M38/73
M38/1272
M38/693
Royalty
$1.50/BCM of ore mined between 100,000BCM and 850,000BCM
$10/ounce gold produced (after the first 50,000 ounces)
2% of Deemed Sale Proceeds for each Mineral Product
3% of the Gross Revenue for the relevant quarter, if Focus has
incurred, after the date of agreement and prior to the first production
date, at least $2,000,000 but not more than $4,000,000 in
Exploration Expenditure;
2.5% of the Gross Revenue for the relevant quarter, if Focus has
incurred, after the date of agreement and prior to the first production
date, at least $4,000,000 but not more than $6,000,000 in
Exploration Expenditure; or
2% of the Gross Revenue for the relevant quarter, if Focus has
incurred, after the date of agreement and prior to the first production
date, $6,000,000 or more in Exploration Expenditure.
$1.50/tonne of ore mined and treated after 100,000 tonnes &
$0.58/tonne ore mined and milled for first 500,000 tonnes,
$0.05/tonne of ore mined and milled thereafter
3% of the gross value of gold recovered
1.5% NSR
$0.75/tonne ore mined
E38/1642 (portion of), E38/2032 (portion of) &
E38/3051 (portion of)
1% gross value of gold produced
All tenements within a 50km radius of Laverton
Gold Plant Feed Bin.
A quarterly fee equal to the greater of 1.25% of annual tenement
fees or $2,500.
A quarterly mining fee relating to gold production from the tenements
in a calendar year, of:
0 – 50,000oz Au: 0.20% of total gross proceeds of the
relevant quarter;
50,001 – 100,000oz Au: 0.24% of the total gross proceeds
of the relevant quarter;
100,001 – 150,000oz Au: 0.28% of total gross proceeds of
the relevant quarter;
150,001 – 200,000oz Au: 0.33% of total gross proceeds of
the relevant quarter;
>200,000oz Au: 0.40% of total gross proceeds of the
relevant quarter.
Scholarship funds payable each calendar year in the amount of
$10,000 where the total annual gold production is less than
100,000oz, and $20,000 if the total annual gold production is greater
than 100,000oz.
Page | 90