Freehill Mining Limited
ACN 091 608 025
Annual Report - 30 June 2024
Freehill Mining Limited
Corporate directory
30 June 2024
1
Directors
Paul Davies
Benjamin Jarvis
Peter Williams
Company secretary
Joe Fekete
Registered office
Level 24, 570 Bourke St
Melbourne, Victoria,
Australia, 3000
Principal place of business
Level 24, 570 Bourke St,
Melbourne, Victoria,
Australia, 3000
Share register
Automic Registry Services
Level 12, 50 Holt Street
Surry Hills, NSW 2000
Auditor
Connect National Audit Pty Ltd
Level 11/333 Collins St
MELBOURNE VIC 3000
Stock exchange listing
Freehill Mining Limited shares are listed on the Australian Securities Exchange (ASX
code: FHS)
Website
www.freehillmining.com
Corporate Governance Statement
Refer to www.freehillmining.com
Freehill Mining Limited
Chairman's letter
30 June 2024
2
Dear Fellow Shareholders,
It is my pleasure to present the Freehill Mining 2024 Annual Report, following what has been a busy 12 months for the
Company. At this time last year, Freehill’s near-term objectives were focused on recapitalising the business and meeting our
requirements to recommence trading on the ASX, following a series of delays at the Company’s 100%-owned Yerbas Buenas
(‘YB’) magnetite mine in Chile. In terms of those key deliverables, I am pleased to report that Freehill quickly achieved its
goals and subsequently moved on to its core near-term operational priority; to establish Freehill as a trusted supplier of
premium waste material products for a client base comprising some of Chile’s largest cement and construction companies.
During the financial year, Freehill successfully executed on a multi-phase strategy to expand waste material production and
establish product-market fit with large customers. We managed to achieve this while also reporting progressively strong growth
in quarterly sales, as demand stayed robust while our capacity to meet that demand increased. In doing so, the Company has
capitalised on the opportunity stemming from significant regulatory changes in Chile, which stipulated that feedstock for the
cement and construction industries can no longer be extracted from natural sources. In turn, Freehill has positioned its
business to meet the demand pivot from major industrials.
Of course, a key requirement of this process was to first establish that waste material products from YB can provide an
effective substitute to natural sources. As a feedstock component for the construction sector, waste material suppliers must
ensure their product meets the highest standards of safety and quality control to ensure the structural integrity of major
infrastructure projects. To that end, the Company has carried out rigorous testing in close collaboration with its client base, to
establish both product quality and the required logistics capability to ensure efficient delivery processes.
By proving its credentials in this regard, Freehill has been able to attract a diversified customer base of blue-chip Chilean
industrial companies including Empresa Constructora Belfi SA, Cementos Melón and BSA Cementos. Concurrently, our on-
site team has worked diligently to boost supply capacity to meet demand, including the rapid procurement and rollout of cost-
efficient production equipment. The conversion of our business development and customer engagement practices into
revenue-generating waste material contracts was reflected in the group’s sales momentum heading into the end of the year –
including an 84% quarterly sales uplift in the June quarter which flowed through to a 176% quarterly increase in cash receipts
to $434,000.
Post balance-date, our momentum was slowed by a tragic accident on site at YB which resulted in the death of one of our
contracted workers. As well as providing direct assistance to the family, operations temporarily ceased while we engaged
directly with regulators including SERNAGEOMIN (Servicio Nacional de Geología y Minería), Chile’s national government
agency for geology and mining services. This included the implementation of additional measures to enhance our processes
around on-site safety and security. Following that process, the Company has received regulatory approval to recommence
operations in full. As production ramps back up, Freehill’s customers remain very supportive of its operating model as a
premium supplier of waste material products. Most recently, existing customer Belfi SA – which is conducting a major
expansion of the Coquimbo port facility – awarded Freehill a $400,000 purchase order, following on from a $1.7m sale in
March 2024.
While recapitalising the business over the past 12 months, the Freehill Board has also not lost sight of our commitment to
shareholders to progress towards a restart of magnetite mining operations at YB, to be funded internally through the profits
from our waste materials business. The Company continues to view recommencement of magnetite mining as a value-
accretive strategy which leverages the inherent strengths of the YB mine, and we look forward to providing more updates on
the pursuit of that objective in the 2025 financial year.
To conclude, when I reflect on the 2024 financial year and what we hoped to achieve at this time 12 months ago, I am pleased
by the efforts of the Freehill team to deliver on our stated objectives. We head into FY25 with strong momentum in our waste
materials business, and an established market position as a trusted supplier in the Chilean market. With further potential
upside from the recommencement of magnetite mining, the Board is unanimous in its view that, taking into account the
company’s share price and market capitalisation, Freehill now offers a compelling value proposition.
Freehill Mining Limited
Chairman's letter
30 June 2024
3
I’d like to take this opportunity to thank our shareholders for their ongoing support, which included two capital raises during
the period; a $704,000 Entitlement Offer in September 2023 and a $1.2m Placement in January 2024, along with an additional
$500,000 Placement in July 2024. These funding rounds have helped underpin the execution of our stated development
strategy and facilitated the scale-up of processing operations made possible by acquiring the necessary plant and equipment
to meet growing customer demand. With a clear strategy to achieve profitability, we are ready to deliver at the operational
level and, along with my fellow Directors, as Freehill Chairman, we are committed to unlocking the value that is evidently
inherent in our Chilean asset base.
Ben Jarvis
Non-Executive Chairman
Freehill Mining Limited
Directors' report
30 June 2024
4
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'consolidated entity') consisting of Freehill Mining Limited (referred to hereafter as the 'company' or 'parent entity') and the
entities it controlled at the end of, or during, the year ended 30 June 2024.
Directors
The following persons were directors of Freehill Mining Limited during the whole of the financial year and up to the date of this
report, unless otherwise stated:
Paul Davies
Benjamin Jarvis
Peter Williams
Principal activities
During the financial year the principal continuing activities of the consolidated entity consisted of:
●
Continue to develop position as leading supplier of material to Infrastructure and Construction Sectors in La Serena
Region;
●
Initiate small scale magnetite mining and production at Yerbas Buenas mine;
●
Diversify product offering within waste material business; and
●
Reviewing potential acquisitions predicated on adding shareholder value.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The loss for the consolidated entity after providing for income tax amounted to $1,505,954 (30 June 2023: $14,707,646).
The loss for the prior year includes $13,011,718 of impairment expense in relation to mining and exploration assets.
Refer to the Chairman's Letter that directly precedes this Directors' Report.
Significant changes in the state of affairs
Other than those matters disclosed in the Chairman's Letter, there were no other significant changes in the state of affairs of
the consolidated entity during the financial year.
Matters subsequent to the end of the financial year
On 8 July 2024, the company announced that a fatal accident occurred at the company's Yerbas Beunas site. The financial
impact of any settlement is still being determined.
Since 30 June 2024, the company issued has 78,683,337 fully paid ordinary shares raising $472,100 before costs.
No other matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
Likely developments and expected results of operations
Information on likely developments in the operations of the consolidated entity and the expected results of operations have
not been included in this report because the directors believe it would be likely to result in unreasonable prejudice to the
consolidated entity.
Environmental regulation
The consolidated entity is not subject to any significant environmental regulation under Australian Commonwealth or State
law. It subject to environmental regulations in Chile and breaches occurred during the year.
Freehill Mining Limited
Directors' report
30 June 2024
5
Information on directors
Name:
Paul Davies
Title:
Chief Executive Officer
Qualifications:
Paul holds an Economics Degree from Monash University, has qualified as a Chartered
Accountant and is an alumnus of the Stanford Business School.
Experience and expertise:
Mr Davies has been CFO of the Company for six years prior to being appointed Chief
Executive. He brings an intimate knowledge of Freehill’s activities combined with
significant experience in the mining sector from his 30 plus years in the finance industry.
During his career, Mr Davies has held leadership roles with many organisations, both
large and small, in addition to his finance experience. Most notably, he was Director in
Charge of Corporate and Institutional Banking for Deutsche Bank Australia and a
member of the Deutsche Bank Credit Committee.
He has been directly involved in over $20 billion worth of transactions involving
origination, advising, arranging, structuring, project finance, lead managing, syndication,
negotiation, risk management, including servicing many of Australia’s major mining
companies. Before Deutsche Bank, Mr. Davies worked for a number of years with both
Bankers Trust Australia and Macquarie Bank. Mr Davies holds an Economics Degree
from Monash University, has qualified as a Chartered Accountant and is an alumnus of
the Stanford Business School.
Other current directorships:
Nil
Former directorships (last 3 years):
Nil
Interests in shares:
38,404,806 fully paid ordinary shares
Interests in options:
Nil
Interests in rights:
Nil
Name:
Benjamin Jarvis
Title:
Non - Executive Director
Experience and expertise:
Mr Jarvis is an experienced company director in the small resources sector. Since 2011,
he has been a non-executive director of South-American focused Austral Gold Limited
(ASX: AGD; TSX-V: AGLD), a precious metals mining and exploration company with an
extensive portfolio of assets in Chile and Argentina. He is also a non-executive director
of QX Resources Limited (ASX: QXR) which has a portfolio of exploration assets in
Australia and other investments in the resources sector, and a non-executive director of
unlisted public company Aeramentum Resources Limited which is focused on copper,
nickel, cobalt and gold exploration in Cyprus in the EU. Mr Jarvis is the managing
director of Six Degrees Investor Relations, an investor relations and advisory firm he
founded in 2006 with offices now in Sydney and Perth.
Other current directorships:
Austral Gold Limited (ASX: AGD; TSX-V: AGLD), Aguia Resources Limited (ASX: AGR)
and QX Resources Limited (ASX: QXR)
Former directorships (last 3 years):
Nil
Interests in shares:
1,450,000 fully paid ordinary shares held directly
34,249,986 fully paid ordinary shares held indirectly
Interests in options:
Nil
Name:
Peter Williams
Title:
Non-Executive Director
Experience and expertise:
Mr Williams joins the Board with over 20 years’ experience as a company director, and
a successful career in logistics management and private equity. His career experience
includes over 30 years’ experience at Toyota Tsusho Australasia, a wholly owned
trading and supply-chain specialist of the Toyota Group. As Director and COO of Toyota
Tsusho Australia, Mr Williams led all trading divisions and sat on the board of five
subsidiary companies with annual revenues of over $500 million. He was subsequently
appointed as an Investment Committee Member for TeamInvest Private Ltd, a
specialised private equity investment group which listed on the ASX in 2019.
Other current directorships:
Nil
Former directorships (last 3 years):
Nil
Interests in shares:
28,580,359 fully paid ordinary shares
Interests in options:
Nil
Freehill Mining Limited
Directors' report
30 June 2024
6
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes
directorships of all other types of entities, unless otherwise stated.
Company secretary
Joe Fekete holds a Bachelor of Business in Accounting and is a registered Company Secretary. He is a member of both
the CPA Australia and the Chartered Institute of Secretaries. His business management and accounting experience spans
over 20 years in various industries including Mining, Advertising, Travel, Wholesale Retail distribution, Construction, and
Public Practice. Joe is an experienced professional who has gained his experience in areas of statutory reporting, IPOs,
accounting, system development, restructuring and general business management from the Board Room to Shop Floor.
He is also experienced in public disclosure requirements and dealing with external parties, including statutory reporting and
in the delivery of quality management information within the organisation on a timely basis.
Meetings of directors
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2024, and the
number of meetings attended by each director were:
Full Board
Attended
Held
Paul Davies
4
4
Ben Jarvis
4
4
Peter Willliams
4
4
Held: represents the number of meetings held during the time the director held office.
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for the consolidated entity, in
accordance with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all directors.
The remuneration report is set out under the following main headings:
●
Principles used to determine the nature and amount of remuneration
●
Details of remuneration
●
Service agreements
●
Share-based compensation
●
Additional information
●
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
The objective of the consolidated entity's executive reward framework is to ensure reward for performance is competitive and
appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives and
the creation of value for shareholders, and it is considered to conform to the market best practice for the delivery of reward.
The Board of Directors ('the board') ensures that executive reward satisfies the following key criteria for good reward
governance practices:
●
competitiveness and reasonableness
●
acceptability to shareholders
●
performance linkage / alignment of executive compensation
●
transparency
The board is responsible for determining and reviewing remuneration arrangements for its directors and executives. The
performance of the consolidated entity depends on the quality of its directors and executives. The remuneration philosophy is
to attract, motivate and retain high performance and high quality personnel. The board have structured an executive
remuneration framework that is market competitive and complementary to the reward strategy of the consolidated entity.
Freehill Mining Limited
Directors' report
30 June 2024
7
The reward framework is designed to align executive reward to shareholders' interests. The Board have considered that it
should seek to enhance shareholders' interests by:
●
having economic profit as a core component of plan design
●
focusing on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering
constant or increasing return on assets as well as focusing the executive on key non-financial drivers of value
●
attracting and retaining high calibre executives
Additionally, the reward framework should seek to enhance executives' interests by:
●
rewarding capability and experience
●
reflecting competitive reward for contribution to growth in shareholder wealth
●
providing a clear structure for earning rewards
In accordance with best practice corporate governance, the structure of non-executive director and executive director
remuneration is separate.
Non-executive directors remuneration
Fees and payments to non-executive directors reflect the demands and responsibilities of their role. Non-executive directors'
fees and payments are reviewed annually by the Board. The Board may, from time to time, receive advice from independent
remuneration consultants to ensure non-executive directors' fees and payments are appropriate and in line with the market.
ASX listing rules require the aggregate non-executive directors' remuneration be determined periodically by a general meeting.
The most recent determination, where the shareholders approved a maximum annual aggregate remuneration of $200,000.
Executive remuneration
The consolidated entity aims to reward executives based on their position and responsibility, with a level and mix of
remuneration which has both fixed and variable components.
The executive remuneration and reward framework has four components:
●
base pay and non-monetary benefits
●
Long-term performance incentives
●
share-based payments
●
other remuneration such as superannuation and long service leave
The combination of these comprises the executive's total remuneration.
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the Board
based on individual and business unit performance, the overall performance of the consolidated entity and comparable market
remunerations.
Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle benefits)
where it does not create any additional costs to the consolidated entity and provides additional value to the executive.
The short-term incentives ('STI') program is designed to align the targets of the business units with the performance hurdles
of executives. STI payments are granted to executives based on specific annual targets and key performance indicators
('KPI's') being achieved. KPI's include profit contribution, customer satisfaction, leadership contribution and product
management.
The long-term incentives ('LTI') include long service leave and share-based payments including performance rights issued in
accordance with the company's Equity Incentive Plan.
Use of remuneration consultants
During the financial year ended 30 June 2024, the consolidated entity did not engage remuneration consultants.
Voting and comments made at the company's 30 November 2023 Annual General Meeting ('AGM')
At the 30 November 2023 AGM, 99.65% of the votes received supported the adoption of the remuneration report for the year
ended 30 June 2023. The company did not receive any specific feedback at the AGM regarding its remuneration practices.
Freehill Mining Limited
Directors' report
30 June 2024
8
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables.
Short-term benefits
Post-
employment
benefits
Share-
based
Share-
based
payments
payments
Salary
Consulting
Non-
Super-
Shares
Equity-
and fees
fees
monetary
annuation
issued *
settled
Total
2024
$
$
$
$
$
$
$
Peter Williams
41,500
-
-
-
3,500
-
45,000
Ben Jarvis
38,727
-
-
-
21,273
-
60,000
Executive Directors:
Paul Davies
86,912
-
-
-
12,088
-
99,000
167,139
-
-
-
36,861
-
204,000
*
During the year, directors were issued shares to settle fees for current period and prior periods. The value of shares
relating to current year fees has been disclosed above.
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Salary
Consulting
Non-
Super-
Long
service
Equity-
and fees
fees
monetary
annuation
leave
settled
Total
2023
$
$
$
$
$
$
$
Raymond Charles Mangion *
28,849
-
-
-
-
-
28,849
Jim Moore *
28,849
-
-
-
-
-
28,849
Peter Williams
7,500
-
-
-
-
-
7,500
Ben Jarvis **
21,000
-
-
-
-
-
21,000
Executive Directors:
Paul Davies ***
99,000
-
-
-
-
17,299
116,299
185,198
-
-
-
-
17,299
202,497
*
Resigned on 20 February 2023.
**
Includes director's fees of $11,250 and additional investor relations consulting fees incurred since his appointment.
*** The performance rights for which this expense relates to lapsed during the year.
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Fixed remuneration
At risk - STI
At risk - LTI
Name
2024
2023
2024
2023
2024
2023
Non-Executive Directors:
Raymond Charles Mangion
-
100%
-
-
-
-
Jim Moore
-
100%
-
-
-
-
Peter Williams
100%
100%
-
-
-
-
Ben Jarvis
100%
100%
-
-
-
-
Executive Directors:
Paul Davies
100%
85%
-
-
-
15%
Freehill Mining Limited
Directors' report
30 June 2024
9
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details
of these agreements are as follows:
Name:
Paul Davies
Title:
Chief Executive Officer
Agreement commenced:
1 January 2017
Details:
Remuneration is set at $99,000 per annum plus GST
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
Issue of shares
There were no shares issued to directors and other key management personnel as part of compensation during the year
ended 30 June 2024.
Options
There were no options over ordinary shares issued to directors and other key management personnel as part of compensation
that were outstanding as at 30 June 2024.
Additional information
The earnings of the consolidated entity for the five years to 30 June 2024 are summarised below:
2024
2023
2022
2021
2020
$
$
$
$
$
Revenue
691,105
112,965
-
2,825
13,471
Loss after income tax *
(1,505,594)
(14,707,646)
(1,616,501)
(2,244,747)
(2,831,376)
*
The loss for the 2023 year includes $13,011,718 of impairment expense in relation to mining and exploration assets.
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
2024
2023
2022
2021
2020
Share price at financial year end (cents) *
0.60
-
1.80
3.40
5.40
Basic earnings per share (cents per share)
(0.06)
(0.78)
0.09
(0.14)
(0.25)
Diluted earnings per share (cents per share)
(0.06)
(0.78)
0.09
(0.14)
(0.25)
*
The company was suspended from trading on the ASX at 30 June 2023.
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:
Balance at
Additions
Received
Other
Balance at
the start of
in relation to
the end of
the year
remuneration
the year
Ordinary shares
Paul Davies
4,706,787
8,043,786
25,654,233
-
38,404,806
Peter Williams
20,990,299
4,090,060
3,500,000
-
28,580,359
Ben Jarvis
-
9,016,653
26,683,333
-
35,699,986
25,697,086
21,150,499
55,837,566
-
102,685,151
Loans to key management personnel and their related parties
There were no loans transactions with key management personnel and their related entities as at 30 June 2024.
Freehill Mining Limited
Directors' report
30 June 2024
10
Other transactions with key management personnel and their related parties
During the year entities, entities related to Ben Jarvis received fee totalling $15,773 for investor relations services provided in
addition to
his directors fees.
This concludes the remuneration report, which has been audited.
Shares under option
Unissued ordinary shares of Freehill Mining Limited under option at the date of this report are as follows:
Exercise
Number
Expiry date
price
under option
22 February 2026
$0.0250
72,000,000
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the
company or of any other body corporate.
Shares issued on the exercise of options
There were no ordinary shares of Freehill Mining Limited issued on the exercise of options during the year ended 30 June
2024 and up to the date of this report.
Business risks
The Consolidated Entity's significant business risks are summarised below:
●
Commodity prices are subject to volatility due to factors such as supply and demand dynamics and overall economic
conditions. Changes in prices will directly impact the consolidated entity's revenues and profitability.
●
Risk related to general market conditions which add pressure on future project value and access to capital.
●
Jurisdictional risk is considered low given the positive mining investment environment in Chile.
Indemnity and insurance of 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
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the company, or to 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 part of those proceedings.
Non-audit services
There were no non-audit services provided during the financial year by the auditor.
Officers of the company who are former partners of Connect National Audit
There are no officers of the company who are former partners of Connect National Audit.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this directors' report.
Freehill Mining Limited
Directors' report
30 June 2024
11
Auditor
Connect National Audit continues 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
___________________________
Benjamin Jarvis
Director
30 September 2024
Connect National Audit Pty Ltd is an Authorised Audit Company
Head Office: Level 11, 333 Collins St, Melbourne VIC 3000
ABN 43 605 713 040
Gold Coast Office: Level 9, Wyndham Corporate Centre, 1 Corporate Court, BUNDALL,
QUEENSLAND, 4217
Sydney Office: Level 5, 20 Bond Street, Sydney NSW 2000
Liability limited by a scheme approved under Professional Standards Legislation
w: www.connectaudit.com.au
AUDITOR’S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
As lead auditor for the audit of Freehill Mining Limited for the year ended 30 June 2024, I declare
that, to the best of my knowledge and belief, there have been:
(a)
no contraventions of the auditor independence requirements of the Corporations Act
2001 in relation to the audit; and
(b)
no contraventions of any applicable code of professional conduct in relation to the
audit.
This declaration is in respect of Freehill Mining Limited.
CONNECT NATIONAL AUDIT PTY LTD
Authorised Audit Company No. 521888
GEORGE GEORGIOU FCA RCA
MANAGING DIRECTOR
Freehill Mining Limited
Contents
30 June 2024
13
Statement of profit or loss and other comprehensive income
14
Statement of financial position
15
Statement of changes in equity
16
Statement of cash flows
17
Notes to the financial statements
18
Directors' declaration
36
Independent auditor's report to the members of Freehill Mining Limited
37
Shareholder information
41
Consolidated entity disclosure statement
43
General information
The financial statements cover Freehill Mining Limited as a consolidated entity consisting of Freehill Mining Limited and the
entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is
Freehill Mining Limited's functional and presentation currency.
Freehill Mining Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered
office and principal place of business is:
Level 24, 570 Bourke St,
Melbourne, Victoria,
Australia, 3000
A description of the nature of the consolidated entity's operations and its principal activities are included in the directors' report,
which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 30 September 2024. The
directors have the power to amend and reissue the financial statements.
Freehill Mining Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2024
Consolidated
Note
2024
2023
$
$
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
14
Revenue
4
691,105
112,965
Other income
5
1,195
59,958
Expenses
Mine production costs
(769,263)
(556,270)
Corporate and administration expenses
(805,711)
(595,762)
Consulting expenses
(151,496)
(29,494)
Employee benefits expense
(325,532)
(348,788)
Impairment of non-current assets
6
-
(13,011,718)
Depreciation and amortisation expense
(95,611)
(32,054)
Other expenses
(5,370)
(89,103)
Finance costs
(45,271)
(217,380)
Loss before income tax expense
(1,505,954)
(14,707,646)
Income tax expense
7
-
-
Loss after income tax expense for the year attributable to the owners of Freehill
Mining Limited
(1,505,954)
(14,707,646)
Other comprehensive income / (loss)
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
(132,357)
1,694,952
Other comprehensive income / (loss) for the year, net of tax
(132,357)
1,694,952
Total comprehensive loss for the year attributable to the owners of Freehill
Mining Limited
(1,638,311)
(13,012,694)
Cents
Cents
Basic earnings per share
27
(0.06)
(0.78)
Diluted earnings per share
27
(0.06)
(0.78)
Freehill Mining Limited
Statement of financial position
As at 30 June 2024
Consolidated
Note
2024
2023
$
$
The above statement of financial position should be read in conjunction with the accompanying notes
15
Assets
Current assets
Cash and cash equivalents
63,481
46,880
Trade and other receivables
8
518,872
58,448
Inventories
106,524
-
Other
2,928
45,952
Total current assets
691,805
151,280
Non-current assets
Trade and other receivables
8
887,099
1,319,825
Property, plant and equipment
9
750,991
437,222
Exploration and evaluation asset
10
23,227
-
Mining
11
10,495,493
10,505,042
Total non-current assets
12,156,810
12,262,089
Total assets
12,848,615
12,413,369
Liabilities
Current liabilities
Trade and other payables
12
368,308
665,983
Borrowings
13
-
308,440
Derivative financial instruments
-
75,777
Employee benefits
-
6,141
Total current liabilities
368,308
1,056,341
Non-current liabilities
Borrowings
13
-
1,209,168
Provisions
70,000
70,000
Total non-current liabilities
70,000
1,279,168
Total liabilities
438,308
2,335,509
Net assets
12,410,307
10,077,860
Equity
Issued capital
14
43,981,593
40,097,764
Reserves
15
1,201,147
1,246,575
Accumulated losses
(32,772,433)
(31,266,479)
Total equity
12,410,307
10,077,860
Freehill Mining Limited
Statement of changes in equity
For the year ended 30 June 2024
The above statement of changes in equity should be read in conjunction with the accompanying notes
16
Issued
Reserves
Accumulated
Total equity
capital
losses
Consolidated
$
$
$
$
Balance at 1 July 2022
39,713,329
(465,676)
(16,558,833)
22,688,820
Loss after income tax expense for the year
-
-
(14,707,646)
(14,707,646)
Other comprehensive income for the year, net of tax
-
1,694,952
-
1,694,952
Total comprehensive income / (loss) for the year
-
1,694,952
(14,707,646)
(13,012,694)
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 14)
384,435
-
-
384,435
Shared based payments (note 15)
-
17,299
-
17,299
Balance at 30 June 2023
40,097,764
1,246,575
(31,266,479)
10,077,860
Issued
Reserves
Accumulated
Total equity
capital
losses
Consolidated
$
$
$
$
Balance at 1 July 2023
40,097,764
1,246,575
(31,266,479)
10,077,860
Loss after income tax expense for the year
-
-
(1,505,954)
(1,505,954)
Other comprehensive loss for the year, net of tax
-
(132,357)
-
(132,357)
Total comprehensive loss for the year
-
(132,357)
(1,505,954)
(1,638,311)
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 14)
3,883,829
-
-
3,883,829
Share-based payments (note 28)
-
86,929
-
86,929
Balance at 30 June 2024
43,981,593
1,201,147
(32,772,433)
12,410,307
Freehill Mining Limited
Statement of cash flows
For the year ended 30 June 2024
Consolidated
Note
2024
2023
$
$
The above statement of cash flows should be read in conjunction with the accompanying notes
17
Cash flows from operating activities
Payments to suppliers and employees (inclusive of GST)
(2,185,349)
(1,219,380)
Receipts from customers
638,142
112,965
Interest and other finance costs paid
-
(120,712)
Net cash used in operating activities
26
(1,547,207)
(1,227,127)
Cash flows from investing activities
Payments for property, plant and equipment
9
(480,526)
(271,268)
Payments for exploration and evaluation
(24,787)
(919,835)
Net cash used in investing activities
(505,313)
(1,191,103)
Cash flows from financing activities
Proceeds from borrowings and convertible notes
2,271,410
1,937,425
Share issue transaction costs
(199,452)
(53,729)
Net cash from financing activities
2,071,958
1,883,696
Net increase/(decrease) in cash and cash equivalents
19,438
(534,534)
Cash and cash equivalents at the beginning of the financial year
46,880
580,651
Effects of exchange rate changes on cash and cash equivalents
(2,837)
763
Cash and cash equivalents at the end of the financial year
63,481
46,880
Freehill Mining Limited
Notes to the financial statements
30 June 2024
18
Note 1. Material accounting policy information
The accounting policies that are material to the consolidated entity are set out below. The accounting policies adopted are
consistent with those of the previous financial year, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity 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 for the
year ended 30 June 2024.
Going concern
These financial statements have been prepared on a going concern basis, which contemplates the 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 consolidated entity incurred a loss of $1,505,954 (2023: $14,707,646) and had
operating cash outflows of $1,547,207 (2023: $1,227,127).
These events and conditions indicate a material uncertainty which may cast significant doubt as to whether the consolidated
entity will continue as a going concern and therefore whether it will realise assets and discharge liabilities in the normal course
of business and at the amounts shown in the financial report.
The directors have reviewed the cash flow forecast for the next 12 months from the date of signing this financial report, and
assessed that there are reasonable grounds to believe the consolidated entity will be able to continue as a going concern due
to the following factors:
●
Since 30 June 2024, the company issued has 78,683,337 fully paid ordinary shares raising $472,100 before costs;
●
The consolidated entity's Yerbas Buenas project has commenced production and is budgeted to be generate positive
cash flows over the coming 12 month period and beyond. With outstanding orders in excess of $1 million relating to local
infrastructure projects and additional orders coming in, combined with regular consumption from the local construction
industry the Company believes the work done to date in establishing itself as a reliable source of supply for leading
participants within the construction industry will sustain and evolve its position as a going concern;
●
As an ASX listed entity, the company has the ability to access equity capital markets and has a history of being able to
raise additional capital as and when the Directors consider appropriate; and
●
The Company is reviewing a number of opportunities which it believes will positive generate near term cashflows to
further support its development.
Accordingly, the directors believe that the Consolidated Entity 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. In the event that the Consolidated Entity
is unsuccessful in implementing the above-stated initiatives, a material uncertainty exists, that may cast significant doubt on
the Consolidated Entity's ability to continue as a going concern and its ability to recover assets and discharge liabilities in
normal course of business and at the amounts shown in the financial report.
The financial report does not include any adjustments relating to the recoverability and classification of recorded asset
amounts or to the amounts and classification of liabilities that might be necessarily incurred should the company not continue
as a going concern.
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').
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.
Freehill Mining Limited
Notes to the financial statements
30 June 2024
Note 1. Material accounting policy information (continued)
19
Critical accounting estimates
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 in note 2.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only.
Supplementary information about the parent entity is disclosed in note 23.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Freehill Mining Limited
('company' or 'parent entity') as at 30 June 2024 and the results of all subsidiaries for the year then ended. Freehill Mining
Limited and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity
when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the
date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity 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 consolidated entity.
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.
Where the consolidated entity 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 consolidated
entity 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.
Operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same basis
as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation
of resources to operating segments and assessing their performance.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Freehill Mining Limited's functional and presentation
currency.
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.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting
date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange
rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences
are recognised in other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
Freehill Mining Limited
Notes to the financial statements
30 June 2024
Note 1. Material accounting policy information (continued)
20
Revenue recognition
The consolidated entity recognises revenue as follows:
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.
Mining sales
Revenue from mining sales is recognised at the point in time when the customer obtains control of the goods, which is
generally at the time of delivery.
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30
days.
Inventories
Stock on hand is stated at the lower of cost and net realisable value. Cost comprises of purchase and delivery costs, net of
rebates and discounts received or receivable.
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.
Property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment
(excluding land) over their expected useful lives as follows:
Motor vehicles
7 years
Plant and equipment
6 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the
consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
Exploration and evaluation assets
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried
forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through
the successful development and exploitation of an area of interest, or by its sale; or exploration activities are continuing in an
area and activities have not reached a stage which permits a reasonable estimate of the existence or otherwise of economically
recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure incurred thereon is written
off in the year in which the decision is made.
Freehill Mining Limited
Notes to the financial statements
30 June 2024
Note 1. Material accounting policy information (continued)
21
Mining assets
Capitalised mining development costs include expenditures incurred to develop new ore bodies to define further mineralisation
in existing ore bodies, to expand the capacity of a mine and to maintain production. Mining development also includes costs
transferred from exploration and evaluation area of interest is ready to move into the production phase. Amortisation is being
charged based of units of production over the estimated total resource.
Issued capital
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.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory,
have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2024. The consolidated
entity has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.
Note 2. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect
the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation
to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and
assumptions on historical experience and on other various factors, including expectations of future events, management
believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the
related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed
below.
Impairment of mining assets and exploration and evaluation assets
The consolidated entity assesses impairment of mining and exploration and evaluation assets at each reporting date by
evaluating conditions specific to the consolidated entity and to the particular asset that may lead to impairment. If an
impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value less costs of disposal or
value-in-use calculations, which incorporate a number of key estimates and assumptions. It is only during the current year
that the Yerbas Buenas project has gone into production. In April the site's plant was completed and ready for use, meaning
that it could only operate at full capacity from that time. The impairment assessment at 30 June 2024 was based on expected
future cash flows, however given the relatively short time that the project has been fully operational, significant judgement and
estimation is required is making this impairment assessment.
During the prior year the consolidated entity has recognised impairments in relation to exploration and evaluation assets (note
10) and mining assets (note 11).
Yerbas Buenas Project
As at 30 June 2023, the board determined that the Yerbas Buenas project was ready to move into the production phase, and
for this reason the capitalised value of exploration and evaluation expenditure relating to that project was transferred to mining
assets. Amortisation is being charged based of units of production over the estimated total resource.
Note 3. Operating segments
Identification of reportable operating segments
The consolidated entity is organised into one operating segment: Chilean Mining. This operating segment is based on the
internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision
Makers ('CODM')) in assessing performance and in determining the allocation of resources.
Note 4. Revenue
Consolidated
2024
2023
$
$
Mining sales
691,105
112,965
Freehill Mining Limited
Notes to the financial statements
30 June 2024
Note 4. Revenue (continued)
22
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Consolidated
2024
2023
$
$
Geographical regions
Chile
691,105
112,965
Timing of revenue recognition
Goods transferred at a point in time
691,105
112,965
Note 5. Other income
Consolidated
2024
2023
$
$
Net foreign exchange gain
1,195
-
Net gain on derivatives
-
59,958
Other income
1,195
59,958
Note 6. Expenses
Consolidated
2024
2023
$
$
Loss before income tax includes the following specific expenses:
Impairment
Mining assets (note 11)
-
5,597,217
Exploration and evaluation assets (note 10)
-
7,414,501
Total impairment
-
13,011,718
Note 7. Income tax expense
Consolidated
2024
2023
$
$
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
(1,505,954)
(14,707,646)
Tax at the statutory tax rate of 25%
(376,489)
(3,676,912)
Non-deductible expenses
20,106
218,460
Temporary differences and losses not bought to account
356,383
205,523
Impairment of non-current assets
-
3,252,929
Income tax expense
-
-
Freehill Mining Limited
Notes to the financial statements
30 June 2024
Note 7. Income tax expense (continued)
23
Consolidated
2024
2023
$
$
Australian tax losses not recognised
Unused tax losses for which no deferred tax asset has been recognised
11,882,321
10,822,111
Potential tax benefit @ 25%
2,970,580
2,705,528
In addition to the above Australian tax losses the consolidated entity has unused losses of 2,541,395,777 Chilean pesos
($4,002,793) which amount to an unrecognised benefit of 686,176,860 Chilean pesos ($1,085,614). The corporate tax rate in
Chile is 27%.
The above potential tax benefit for unused tax losses have not been recognised in the statement of financial position. These
unused tax losses are available for used against future taxable income.
Note 8. Trade and other receivables
Consolidated
2024
2023
$
$
Current assets
Trade receivables
52,963
-
Other receivables
622
1,312
Indirect taxes receivable
465,287
57,136
518,872
58,448
Non-current assets
Indirect taxes receivable
887,099
1,319,825
Note 9. Property, plant and equipment
Consolidated
2024
2023
$
$
Non-current assets
Plant and equipment - at cost
721,847
310,241
Less: Accumulated depreciation
(73,685)
(18,982)
648,162
291,259
Motor vehicles - at cost
153,797
182,999
Less: Accumulated depreciation
(51,266)
(37,036)
102,531
145,963
Computer equipment - at cost
1,191
-
Less: Accumulated depreciation
(893)
-
298
-
750,991
437,222
Freehill Mining Limited
Notes to the financial statements
30 June 2024
Note 9. Property, plant and equipment (continued)
24
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Motor
Computer
Plant and
vehicles
equipment
equipment
Total
Consolidated
$
$
$
$
Balance at 1 July 2022
144,642
-
4,338
148,980
Additions
-
-
271,268
271,268
Exchange differences
25,337
-
23,690
49,027
Depreciation expense
(24,056)
-
(7,997)
(32,053)
Balance at 30 June 2023
145,923
-
291,299
437,222
Additions
-
1,270
479,256
480,526
Exchange differences
(21,899)
(20)
(58,776)
(80,695)
Depreciation expense
(21,493)
(952)
(63,617)
(86,062)
Balance at 30 June 2024
102,531
298
648,162
750,991
Note 10. Exploration and evaluation asset
Consolidated
2024
2023
$
$
Non-current assets
Exploration and evaluation - at cost
7,541,406
7,518,179
Less: Impairment
(7,518,179)
(7,518,179)
23,227
-
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Exploration &
evaluation
Consolidated
$
Balance at 1 July 2022
21,201,563
Additions
724,043
Exchange differences
1,591,154
Impairment of assets
(7,414,501)
Transfer to mining assets (note 11)
(16,102,259)
Balance at 30 June 2023
-
Additions
24,787
Exchange differences
(1,560)
Balance at 30 June 2024
23,227
The carrying value of the mining asset is reviewed annually for impairment. The most recent impairment assessment was
completed as at 30 June 2024. This was done based on the discounted cash flows expected from the Yerbas Beunas project,
using a discount rate of 12.5%. No impairment expense was recognised (2023: 5,597,217).
Freehill Mining Limited
Notes to the financial statements
30 June 2024
25
Note 11. Mining
Consolidated
2024
2023
$
$
Non-current assets
Mining assets - at cost
16,102,259
16,102,259
Less: Accumulated amortisation
(9,549)
-
Less: Accumulated impairment
(5,597,217)
(5,597,217)
10,495,493
10,505,042
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Mining
asset
Consolidated
$
Balance at 1 July 2022
-
Transfer from exploration and evaluation (note 11)
16,102,259
Impairment of assets
(5,597,217)
Balance at 30 June 2023
10,505,042
Amortisation expense
(9,549)
Balance at 30 June 2024
10,495,493
Note 12. Trade and other payables
Consolidated
2024
2023
$
$
Current liabilities
Trade payables
275,411
468,086
Other payables
92,897
197,897
368,308
665,983
Refer to note 17 for further information on financial instruments.
Note 13. Borrowings
Consolidated
2024
2023
$
$
Current liabilities
Convertible notes payable
-
308,440
Non-current liabilities
Loan - convertible debt
-
1,209,168
Refer to note 17 for further information on financial instruments.
Freehill Mining Limited
Notes to the financial statements
30 June 2024
Note 13. Borrowings (continued)
26
Convertible notes shown in the comparative information included notes with a value of $400,000 which were issued at US$1.00
with a face value of $US1.15 and expiring on 15 November 2023. The conversion price was the lesser of :
●
90% of the lowest VWAP during the 5 actual trading day prior to the conversion; and
●
$A0.01 being the lowest daily VWAP during the 5 actual trading days immediately prior to the agreement.
No interest was payable on the notes, and the company's obligations under the convertible note agreement were secured by
way of the issue of 90,000,000 collateral shares to the noteholder, refer to note 14.
Interest was payable on the convertible debt at 10% per annum and the borrowings expire in November 2024. It could be
converted at a 15% discount to 7 day VWAP.
All borrowings were settled during the current year via the issue of fully paid ordinary shares in the company, refer to note 14.
Note 14. Issued capital
Consolidated
2024
2023
2024
2023
Shares
Shares
$
$
Ordinary shares - fully paid
2,999,844,432
1,926,848,893
43,981,593
40,097,764
Movements in ordinary share capital
Details
Date
Shares
Issue price
$
Balance
1 July 2022
1,809,194,419
39,713,329
Share issued to settle trade payables
7 September 2022
650,000
$0.0170
11,050
Conversion of debt
7 September 2022
25,804,474
$0.0140
371,562
Share issued to settle trade payables
16 November 2022
1,200,000
$0.0080
9,600
Convertible note collateral shares issued (note 13)
16 November 2022
90,000,000
$0.0000
-
Less cost of capital raising
-
$0.0000
(7,777)
Balance
30 June 2023
1,926,848,893
40,097,764
Issue of shares
15 September 2023
234,829,990
$0.0030
704,460
Issue of shares to settle trade payables
15 September 2023
110,256,905
$0.0030
330,770
Shares issued to settled debt and accrued interest
15 September 2023
370,558,695
$0.0030
1,111,676
Issue of shares
27 September 2023
112,316,630
$0.0030
336,950
Shares issued to convertible notes
27 September 2023
90,000,000
$0.0044
395,206
Issue of shares
7 November 2023
5,000,000
$0.0030
15,000
Issue of shares
25 November 2023
33,333
$0.0030
100
Issue of shares to settle trade payables
7 December 2023
23,999,986
$0.0030
72,000
Issue of shares
30 January 2024
120,000,000
$0.0100
1,200,000
Issue of shares to settle trade payables
31 January 2024
2,000,000
$0.0110
22,000
Issue of shares to settle trade payables
23 April 2024
4,000,000
$0.0070
28,000
Less cost of capital raising
-
$0.0000
(332,333)
Balance
30 June 2024
2,999,844,432
43,981,593
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion
to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company
does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
Freehill Mining Limited
Notes to the financial statements
30 June 2024
Note 14. Issued capital (continued)
27
Share buy-back
There is no current on-market share buy-back.
Capital risk management
The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that
it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to
reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated
as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The consolidated entity would look to raise capital when an opportunity to invest in a business or company was seen as value
adding relative to the current company's share price at the time of the investment. The consolidated entity is not actively
pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in order to
maximise synergies.
The consolidated entity is subject to certain financing arrangements covenants and meeting these is given priority in all capital
risk management decisions. There have been no events of default on the financing arrangements during the financial year.
The capital risk management policy remains unchanged from the 30 June 2023 Annual Report.
Note 15. Reserves
Consolidated
2024
2023
$
$
Foreign currency reserve
(588,334)
(455,977)
Share-based payments reserve
1,789,481
1,702,552
1,201,147
1,246,575
Foreign currency reserve
The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign
operations to Australian dollars. It is also used to recognise gains and losses on hedges of the net investments in foreign
operations.
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their remuneration,
and other parties as part of their compensation for services.
Freehill Mining Limited
Notes to the financial statements
30 June 2024
Note 15. Reserves (continued)
28
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Share based
Foreign
payments
currency
Total
Consolidated
$
$
$
Balance at 1 July 2022
1,685,253
(2,150,929)
(465,676)
Foreign currency translation
-
1,694,952
1,694,952
Share based payments
17,299
-
17,299
Balance at 30 June 2023
1,702,552
(455,977)
1,246,575
Foreign currency translation
-
(132,357)
(132,357)
Share based payments
86,929
-
86,929
Balance at 30 June 2024
1,789,481
(588,334)
1,201,147
Note 16. Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 17. Financial instruments
Financial risk management objectives
The consolidated entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price
risk and interest rate risk), credit risk and liquidity risk. The consolidated entity's overall risk management program focuses on
the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the
consolidated entity. The consolidated entity uses different methods to measure different types of risk to which it is exposed.
These methods include sensitivity analysis in the case of interest rate, foreign exchange and other price risks, ageing analysis
for credit risk.
Risk management is carried out by the Board of Directors ('the Board'). These policies include identification and analysis of
the risk exposure of the consolidated entity and appropriate procedures, controls and risk limits. The Board identifies,
evaluates and hedges financial risks within the consolidated entity's operating units.
Market risk
Foreign currency risk
The consolidated entity is exposed to foreign exchange risk in relation to its operation in Chile, and liabilities denominated in
US dollars.
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 net carrying amount of the consolidated entity's foreign currency denominated financial assets and financial liabilities at
the reporting date were as follows:
Assets
Liabilities
2024
2023
2024
2023
Consolidated
$
$
$
$
Chilean pesos
88,883
19,183
149,673
289,674
Freehill Mining Limited
Notes to the financial statements
30 June 2024
Note 17. Financial instruments (continued)
29
AUD strengthened
AUD weakened
Consolidated - 2024
% change
Effect on
profit before
tax
Effect on
equity
% change
Effect on
profit before
tax
Effect on
equity
Chilean pesos
20%
-
12,158
20%
-
(12,158)
AUD strengthened
AUD weakened
Consolidated - 2023
% change
Effect on
profit before
tax
Effect on
equity
% change
Effect on
profit before
tax
Effect on
equity
Chilean pesos
20%
-
54,098
20%
-
(54,098)
Price risk
The consolidated entity is not exposed to any significant price risk.
Interest rate risk
The consolidated entity is not exposed to any interest rate risk.
Credit risk
The consolidated entity is not exposed to credit risk in relation to mining sales made in Chile. It has not incurred any credit
losses in the current or prior years.
Liquidity risk
Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by
continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.
Remaining contractual maturities
The following tables detail the consolidated entity's remaining contractual maturity for its financial instrument liabilities. The
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining
contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.
Weighted
average
interest rate
1 year or less
Between 1
and 2 years
Between 2
and 5 years
Over 5 years
Remaining
contractual
maturities
Consolidated - 2024
%
$
$
$
$
$
Non-derivatives
Non-interest bearing
Trade and other payables
-
368,308
-
-
-
368,308
Total non-derivatives
368,308
-
-
-
368,308
Freehill Mining Limited
Notes to the financial statements
30 June 2024
Note 17. Financial instruments (continued)
30
Weighted
average
interest rate
1 year or less
Between 1
and 2 years
Between 2
and 5 years
Over 5 years
Remaining
contractual
maturities
Consolidated - 2023
%
$
$
$
$
$
Non-derivatives
Non-interest bearing
Trade and other payables
-
665,983
-
-
-
665,983
Convertible notes payable
-
308,440
-
-
-
308,440
Interest-bearing - fixed rate
Loan - convertible debt
15.00%
-
1,209,168
-
-
1,209,168
Total non-derivatives
974,423
1,209,168
-
-
2,183,591
Derivatives
Derivative portion of
convertible notes
-
75,777
-
-
-
75,777
Total derivatives
75,777
-
-
-
75,777
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Note 18. Key management personnel disclosures
Directors
The following persons were directors of Freehill Mining Limited during the financial year:
Paul Davies
Benjamin Jarvis
Peter Williams
Compensation
The aggregate compensation made to directors and other members of key management personnel of the consolidated entity
is set out below:
Consolidated
2024
2023
$
$
Short-term employee benefits
167,140
185,198
Share-based payments
36,860
17,299
204,000
202,497
Freehill Mining Limited
Notes to the financial statements
30 June 2024
31
Note 19. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by Connect National Audit, the auditor
of the company, and its network firms:
Consolidated
2024
2023
$
$
Audit services - Connect National Audit
Audit or review of the financial statements
55,000
52,500
Audit services - network firms
Audit or review of the financial statements (Kennedy Auditores Consultores)
8,245
-
Note 20. Contingent liabilities
The consolidated entity had no contingent liabilities at 30 June 2024 and 30 June 2023.
Note 21. Commitments
The consolidated entity had no commitments at 30 June 2024 and 30 June 2023.
Note 22. Related party transactions
Parent entity
Freehill Mining Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 24.
Key management personnel
Disclosures relating to key management personnel are set out in note 18 and the remuneration report included in the directors'
report.
Transactions with related parties
The following transactions occurred with related parties:
Consolidated
2024
2023
$
$
Payment for goods and services:
Fees payable to entities related to Ben Jarvis for investor relations services
15,773
-
Other transactions:
Interest accrued on "loan - convertible debt" from directors and those related to former
directors
-
10,319
Receivable from and payable to related parties
The following balances are outstanding at the reporting date in relation to transactions with related parties:
Consolidated
2024
2023
$
$
Current payables:
Directors fees payable to current and former directors
47,723
146,498
Freehill Mining Limited
Notes to the financial statements
30 June 2024
Note 22. Related party transactions (continued)
32
Loans to/from related parties
The following balances are outstanding at the reporting date in relation to loans with related parties:
Consolidated
2024
2023
$
$
Non-current borrowings:
Loan - convertible debt from directors and those related to former directors (including accrued
interest)
-
150,619
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
Note 23. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Parent
2024
2023
$
$
Loss after income tax
(929,474)
(6,337,707)
Total comprehensive loss
(929,474)
(6,337,707)
Statement of financial position
Parent
2024
2023
$
$
Total current assets
90,868
132,056
Total assets
22,883,370
21,593,141
Total current liabilities
218,635
760,525
Total liabilities
218,635
1,969,693
Equity
Issued capital
57,237,538
53,353,709
Share-based payments reserve
1,789,481
1,702,552
Convertible notes reserve
1,007,202
1,007,202
Accumulated losses
(37,369,486)
(36,440,015)
Total equity
22,664,735
19,623,448
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2024 and 30 June 2023.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2024 and 30 June 2023.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2024 and 30 June 2023.
Freehill Mining Limited
Notes to the financial statements
30 June 2024
Note 23. Parent entity information (continued)
33
Material accounting policy information
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1, except
for the following:
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Note 24. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in note 1:
Ownership interest
Principal place of business /
2024
2023
Name
Country of incorporation
%
%
Freehill Investments Pty Ltd
Australia
100.00%
100.00%
Yerbas Buenas SpA
Chile
100.00%
100.00%
San Patricio Mineria SpA
Chile
100.00%
100.00%
El Dorado Mineria SpA
Chile
100.00%
100.00%
El Dorado Hold Co Pty Ltd
Australia
100.00%
100.00%
Note 25. Events after the reporting period
On 8 July 2024, the company announced that a fatal accident occurred at the company's Yerbas Beunas site. The financial
impact of any settlement is still being determined.
Since 30 June 2024, the company issued has 78,683,337 fully paid ordinary shares raising $472,100 before costs.
No other matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
Note 26. Reconciliation of loss after income tax to net cash used in operating activities
Consolidated
2024
2023
$
$
Loss after income tax expense for the year
(1,505,954)
(14,707,646)
Adjustments for:
Depreciation and amortisation
95,611
32,054
Impairment of non-current assets
-
13,011,718
Net gain on derivatives
-
(59,958)
Share-based payments
-
17,299
Operating expenses settled via the issue of shares
306,116
20,650
Non-cash finance expenses
45,251
96,668
Change in operating assets and liabilities:
Increase in trade and other receivables
(27,698)
(456,063)
Increase in inventories
(106,524)
-
Decrease/(increase) in other operating assets
(2,928)
474
Increase/(decrease) in trade and other payables
(344,940)
824,901
Decrease in employee benefits
(6,141)
(7,224)
Net cash used in operating activities
(1,547,207)
(1,227,127)
Freehill Mining Limited
Notes to the financial statements
30 June 2024
34
Note 27. Earnings per share
Consolidated
2024
2023
$
$
Loss after income tax attributable to the owners of Freehill Mining Limited
(1,505,954)
(14,707,646)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
2,713,211,042
1,887,116,951
Weighted average number of ordinary shares used in calculating diluted earnings per share
2,713,211,042
1,887,116,951
Cents
Cents
Basic earnings per share
(0.06)
(0.78)
Diluted earnings per share
(0.06)
(0.78)
Note 28. Share-based payments
During the current year the company issued 12,000,000 options to brokers as part of their fees. A shared based payment of
the $86,929 has been recognised as cost of capital raised.
Set out below are summaries of options granted under the plan:
Number of
options
Weighted
average
exercise price
Number of
options
Weighted
average
exercise price
2024
2024
2023
2023
Outstanding at the beginning of the financial year
-
$0.0000
-
$0.0000
Granted
12,000,000
$0.2500
-
$0.0000
Outstanding at the end of the financial year
12,000,000
$0.2500
-
$0.0000
Exercisable at the end of the financial year
12,000,000
$0.2500
-
$0.0000
2024
Balance at
Expired/
Balance at
Exercise
the start of
forfeited/
the end of
Grant date
Expiry date
price
the year
Granted
Exercised
other
the year
24/01/2024
22/02/2026
$0.0250
-
12,000,000
-
-
12,000,000
-
12,000,000
-
-
12,000,000
The weighted average remaining contractual life of options outstanding at the end of the financial year was 1.64 years.
For the options granted during the current financial year, the valuation model inputs used to determine the fair value at the
grant date, are as follows:
Share price
Exercise
Expected
Dividend
Risk-free
Fair value
Grant date
Expiry date
at grant date
price
volatility
yield
interest rate
at grant date
24/01/2024
22/02/2026
$0.0130
$0.0250
135.000%
-
3.870%
$0.0072
Freehill Mining Limited
Notes to the financial statements
30 June 2024
35
Note 29. Changes in liabilities arising from financing activities
Borrowings
Derivative
liability
Total
Consolidated
$
$
$
Balance at 1 July 2022
-
-
-
Net cash from financing activities
1,937,425
-
1,937,425
Conversion to equity
(370,009)
-
(370,009)
Other changes
(53,808)
75,777
21,969
Balance at 30 June 2023
1,513,608
75,777
1,589,385
Conversion to equity
(1,513,608)
(75,777)
(1,589,385)
Balance at 30 June 2024
-
-
-
Freehill Mining Limited
Directors' declaration
30 June 2024
36
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 consolidated entity's financial position as at
30 June 2024 and of its performance for the financial year ended on that date;
●
there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due
and payable; and
●
the information disclosed in the attached consolidated entity disclosure statement is true and correct.
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
___________________________
Benjamin Jarvis
Director
30 September 2024
Connect National Audit Pty Ltd is an Authorised Audit Company
Head Office: Level 11, 333 Collins St, Melbourne VIC 3000
ABN 43 605 713 040
Gold Coast Office: Level 9, Wyndham Corporate Centre, 1 Corporate Court, BUNDALL,
QUEENSLAND, 4217
Sydney Office: Level 5, 20 Bond Street, Sydney NSW 2000
Liability limited by a scheme approved under Professional Standards Legislation
w: www.connectaudit.com.au
Independent Auditor’s Report
To the Members of Freehill Mining Limited
Report on the Audit of the Financial Report
Opinion
We have audited the accompanying financial report of Freehill Mining Limited (the “consolidated
entity”), which comprises the statement of financial position as at 30 June 2024, the statement of
profit or loss and other comprehensive income, the statement of cash flows and the statement of
changes in equity for the financial year ended on that date, notes comprising a summary of material
accounting policies and other explanatory information, and the directors’ declaration of the
consolidated entity as set out on page 36 and the consolidated entity disclosure statement.
In our opinion the financial report of Freehill Mining Limited is in accordance with the Corporations
Act 2001, including:
(a)
giving a true and fair view of the entity’s financial position as at 30 June 2024 and of its
performance for the financial year ended on that date; and
(b)
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 consolidated entity 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 consolidated entity, 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.
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.
Key Audit Matter
How our audit addressed the key audit
matter
Assessment of Carrying Value of Mining
Asset
We focus on the assessment of the carrying
value of the Mining asset as this represents a
significant asset of the consolidated entity. We
We enquired with management and reviewed
budgets to ensure that waste resources in the
need to assess whether the facts and
circumstances existed to suggest that the
carrying value of this asset may exceed its
recoverable amount. Significant judgement is
involved in considering if there was impairment
indicator and estimating the value of the asset
and the potential material impact on the
financial report.
As part of their annual impairment review
management prepared noted the quantum of
their Mining asset and reviewed these against
their list of impairment indicators. Where
impairment indicators existed, management
performed
an
impairment
review
in
accordance with AASB 136 Impairment. No
Asset was written off during this year in respect
of areas of exploration in the Mining assets.
consolidated entity’s control were planned to
be sold.
We
assessed
and
challenged
the
management’s
budget
methodology,
assumptions, the cash flow projections and the
discount factor used. We evaluated and
discussed with management factors such as
current financial performance, future purchase
orders, and resource availability.
We enquired with management, reviewed
announcements made and reviewed minutes
of the directors’ meetings to ensure that the
consolidated entity had not decided to
discontinue selling the mining asset. We noted
the consolidated entity received purchase
orders for continued sale of its mining
resources.
We evaluated management’s assessment of
impairment indicators including the conclusion
reached.
We also considered the appropriateness of the
related disclosure in Notes 1, 2 and 11 to the
financial statements.
Emphasis of Matter – Material uncertainty related to going concern
These financial statements have been prepared on a going concern basis, which contemplates the
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 consolidated entity incurred a loss of $1,505,954
(2023: $14,707,646) and had operating cash outflows of $1,547,207 (2023: $1,227,127).
These events and conditions indicate a material uncertainty which may cast significant doubt as to
whether the consolidated entity will continue as a going concern and therefore whether it will realise
assets and discharge liabilities in the normal course of business and at the amounts shown in the
financial report.
The directors have reviewed the cash flow forecast for the next 12 months from the date of signing
this financial report, and assessed that there are reasonable grounds to believe the consolidated
entity will be able to continue as a going concern due to the following factors:
● Since 30 June 2024, the company issued has 78,683,337 fully paid ordinary shares raising
$472,100 before costs;
● The consolidated entity's Yerbas Buenas project has commenced production and is budgeted
to be generate positive cash flows over the coming 12-month period and beyond. With outstanding
orders in excess of $1 million relating to local infrastructure projects and additional orders coming
in, combined with regular consumption from the local construction industry the Company believes
the work done to date in establishing itself as a reliable source of supply for leading participants
within the construction industry will sustain and evolve its position as a going concern;
● As an ASX listed entity, the company has the ability to access equity capital markets and has a
history of being able to raise additional capital as and when the Directors consider appropriate;
and
● The Company is reviewing a number of opportunities which it believes will positively generate
near term cashflows to further support its development.
Accordingly, the directors believe that the Consolidated Entity 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. In the event that the Consolidated Entity is unsuccessful in implementing the above-stated
initiatives, a material uncertainty exists, that may cast significant doubt on the Consolidated Entity's
ability to continue as a going concern and its ability to recover assets and discharge liabilities in
normal course of business and at the amounts shown in the financial report.
The financial report does not include any adjustments relating to the recoverability and classification
of recorded asset amounts or to the amounts and classification of liabilities that might be
necessarily incurred should the company not continue as a going concern.
Our opinion is unmodified in this regard.
Other Information
The directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 30 June 2024 but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do
not express any form of assurance 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 consolidated entity are responsible for the preparation of the financial report
that gives a true and fair view and have determined that the basis of preparation described in Note
1 to the financial report is appropriate to meet the requirements of the Corporations Act 2001 and
is appropriate to meet the needs of the members. The directors’ responsibility also includes 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 the basis of preparation, the directors also state, in accordance with Accounting
Standard AASB 101 Presentation of Financial Statements, that the financial statements comply
with International Financial Reporting Standards.
In preparing the financial report, the directors are responsible for assessing the consolidated
entity’s ability 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 consolidated entity 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: http://www.auasb.gov.au/Home.aspx. 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 pages 4 to 8 of the directors’ report for the
financial year ended 30 June 2024.
In our opinion the Remuneration Report of Freehill Mining Limited for the financial year ended 30
June 2024, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the consolidated entity 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.
CONNECT NATIONAL AUDIT PTY LTD
Authorised Audit Company No. 521888
GEORGE GEORGIOU FCA RCA
MANAGING DIRECTOR
Melbourne VIC 3000
30 September 2024
Freehill Mining Limited
Shareholder information
30 June 2024
41
The shareholder information set out below was applicable as at 22 September 2023.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Ordinary shares
% of total
Number
shares
of holders
issued
1 to 1,000
779
-
1,001 to 5,000
74
0.01
5,001 to 10,000
183
0.06
10,001 to 100,000
580
0.86
100,001 and over
2,488
99.07
4,104
100.00
Holding less than a marketable parcel
930
0.77
At the date of signing the company was suspended from trading on the Australian Securities Exchange (ASX).
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Ordinary shares
% of total
shares
Number held
issued
DUDDY INVESTMENT PTY LTD (DUDDY INVESTMENT A/C)
257,151,451
8.35
BNP PARIBAS NOMINEES PTY LTD (IB AU NOMS RETAILCLIENT)
238,014,675
7.73
J M ROSS SUPER PTY LTD (J M ROSS SUPER FUND A/C)
212,689,492
6.91
DG FREEHOLD PTY LTD (DG FREEHOLD A/C)
190,716,025
6.20
CLAYMORE VENTURES LIMITED
167,232,798
5.43
NETWEALTH INVESTMENTS LIMITED (WRAP SERVICES A/C)
61,314,346
1.99
CAM NOMINEES PTY LTD (CAM NOMINEES SUPER FUND A/C)
50,414,865
1.64
HRM PARTNERS PTY LTD (L&P SUPERFUND A/C)
42,999,171
1.40
MRS ANITA MANGION
38,006,642
1.23
SIGNAL SUPERANNUATION PTY LTD (SIGNAL SUPER FUND A/C)
37,374,498
1.21
SOLAR FLAIR PTY LTD (SOLAR FLAIR P/L SUPER A/C)
36,000,000
1.17
SIX DEGREES GROUP HOLDINGS PTY LTD
33,599,986
1.09
MR PAUL DAVIES
32,756,661
1.06
MR DANIAN JOSEPH PEKIN
30,031,916
0.98
TARPOT PTY LTD (M A KANE SUPER FUND A/C)
29,333,334
0.95
PAW SUPER PTY LTD (PAW SUPER FUND A/C)
28,580,359
0.93
BNP PARIBAS NOMINEES PTY LTD (CLEARSTREAM)
27,227,946
0.88
MR ROBERT JESSE HUNT
26,902,282
0.87
R & A MANGION PTY LTD (STEGMAN SMSF A/C)
26,234,721
0.85
ANTHONY TRENKNER PTY LTD (ANTHONY79W SUPER FUND A/C)
25,866,667
0.84
1,592,447,835
51.71
Unquoted equity securities
The company has 72,000,000 options over ordinary shares on issue.
Freehill Mining Limited
Shareholder information
30 June 2024
42
Substantial holders
Substantial holders in the company are set out below:
Ordinary shares
% of total
shares
Number held
issued
DUDDY INVESTMENT PTY LTD (DUDDY INVESTMENT A/C)
257,151,451
8.35
BNP PARIBAS NOMINEES PTY LTD (IB AU NOMS RETAILCLIENT)
238,014,675
7.73
J M ROSS SUPER PTY LTD (J M ROSS SUPER FUND A/C)
212,689,492
6.91
DG FREEHOLD PTY LTD (DG FREEHOLD A/C)
190,716,025
6.20
CLAYMORE VENTURES LIMITED
167,232,798
5.43
Voting rights
The voting rights attached to ordinary shares are set out below:
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
Options
Option holders do not have voting rights.
Tenements
Description
Tenement number
Interest
owned %
YERBAS BUENAS 1-16
04102-2723-1
100.00
ARENAS III 1 to 15
04102-2714-2
100.00
ARENAS IV 1 to 10
04102-2715-0
100.00
ARENAS VI 1 to 20
04102-2755-K
100.00
ARENAS X 1 to 18
04102-2937-4
100.00
ARENAS XI 1 to 20
04102-3522-6
100.00
EL DORADO I to 10
04102-3669-9
100.00
EL DORADO II 1 to 10
04102-3670-2
100.00
EL DORADO III 1 to 10
04102-3671-0
100.00
EL DORADO IV 1 to 10
04102-3672-9
100.00
EL DORADO V 1 to 10
04102-3673-7
100.00
EL DORADO VI 1 to 10
04102-3674-5
100.00
EL DORADO VII 1 to 7
04102-3675-3
100.00
EL DORADO VIII 1 to 10
04102-3676-1
100.00
Freehill Mining Limited
Consolidated entity disclosure statement
As at 30 June 2024
43
Place formed /
Ownership
interest
Entity name
Entity type
Country of incorporation
%
Tax residency
Freehill Investments Pty
Ltd
Company
Australia
100.00% Australia
Yerbas Buenas SpA
Company
Chile
100.00% Australia
San Patricio Mineria SpA Company
Chile
100.00% Australia
El Dorado Mineria SpA
Company
Chile
100.00% Australia
El Dorado Hold Co Pty Ltd Company
Australia
100.00% Australia