More annual reports from Galileo Mining:
2023 ReportGALILEO MINING LTD
ANNUAL FINANCIAL REPORT
For the Year Ended 30 June 2022
GALILEO MINING LTD
ABN 70 104 114 132
CONTENTS
CHAIRMAN’S LETTER .................................................................................................................................................................... 3
DIRECTORS’ REPORT .................................................................................................................................................................... 5
AUDITOR’S INDEPENDENCE DECLARATION ................................................................................................................... 40
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ................................................................................. 41
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ........................................................................................... 42
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ............................................................................................. 43
CONSOLIDATED STATEMENT OF CASH FLOWS ............................................................................................................ 44
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ...................................................................................... 45
DIRECTORS’ DECLARATION .................................................................................................................................................... 67
INDEPENDENT AUDITOR’S REPORT .................................................................................................................................... 68
CORPORATE GOVERNANCE ................................................................................................................................................... 72
ADDITIONAL ASX SHAREHOLDERS’ INFORMATION.................................................................................................... 73
TENEMENT SCHEDULE ............................................................................................................................................................. 76
2
GALILEO MINING LTD
ABN 70 104 114 132
CHAIRMAN’S LETTER
Dear Shareholder,
FY2022 has proven to be a watershed year in the short history of Galileo Mining Ltd with the discovery of the
Callisto palladium-platinum-rhodium-gold-copper-nickel target at our wholly-owned Norseman project in
Western Australia in May.
While discovery drill hole NRC266 returned significant palladium-platinum-gold-copper-nickel-rhodium
mineralisation over 33 metres, what made this a particularly outstanding discovery was all six RC drill holes in
the initial exploration program contained significant zones of mineralisation with strong confirmation of the
initial results from NRC266.
On the back of these results, we spent little time before kicking off our second round of RC drilling, consisting
of 16 holes for 3,939m, to expand on the early results with drilling designed at a 50-metre spacing across strike
and followed by drill lines along strike to the north.
Post year end, we reported assays from the first four RC drill holes of this second program at Callisto which
demonstrated the extensive continuity of mineralisation intercepted with significant thicknesses over 20 metres
at the 1.0 g/t 3E cut-off grade and over 30 metres at the lower 0.5 g/t 3E cut-off reported.
Most importantly, the mineralisation is open at the end of the 6,448,000-drill line where it starts to dip east,
further onto our granted Mine Lease. NRC278 ended in mineralisation at this location and will be completed
with a diamond drill rig, as will further step out holes to the east.
An additional eleven drill holes were completed with each drill hole intersecting disseminated sulphide
mineralisation geologically consistent with the first round of drilling.
A third round of RC drilling has now begun with diamond drilling scheduled to start this month.
At Fraser Range, we undertook a RC drilling campaign at Empire Rose prospect with drilling intersecting
disseminated sulphides. Meanwhile, at the Delta Blues prospect, two diamond drill holes tested a conductive
target beneath sulphide mineralisation at DB2 with matrix, stringer, and disseminated sulphides intercepted in
both holes.
We also acquired a new strategic Fraser Range tenement along strike from known nickel-copper sulphide
mineralisation at the Lantern Prospect where we are undertaking EM surveying to gain a better understanding
of the prospect’s potential. In addition, we are planning infill EM surveying of the highly conductive Green
Moon prospect to refine targets for drill testing.
On the corporate front, we were very pleased with the strong market support for our $20.4 million placement
post year end with $8.7 million of the funds coming from our major shareholders, Mark Creasy and IGO. This
funding allows us to aggressively explore this significant new palladium province within our Norseman Project
area.
In addition, we welcomed highly experienced mining lawyer Cecilia Camarri to the board as an Independent
Non-Executive Director. Cecilia’s appointment will assist us with our aim to transition from an exploration
company to a resource development company on the back of the Callisto discovery.
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GALILEO MINING LTD
ABN 70 104 114 132
Lastly, I would like to thank our loyal shareholders for their unwavering support over the past year. With over
five kilometres of strike length at Callisto, I genuinely feel that we have a significant company-making discovery
with upcoming drilling campaigns to further unearth its mineralisation potential. Coupled with highly
prospective targets at the Jimberlana and Mission Sill prospects, ongoing exploration at Fraser Range and cash
in the bank to aggressively turn the drill bit, the potential to build on our mineralisation is very high and I can’t
wait to share our successes during FY2023 with you.
Yours faithfully,
Brad Underwood
Chairman & Managing Director
GALILEO MINING LTD
4
GALILEO MINING LTD
ABN 70 104 114 132
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2022
The directors present their report on the Company and the Group (consisting of the Company and the entities
it controlled during the period) for the financial year ended 30 June 2022.
DIRECTORS
The following directors have been in office since the start of the financial year to the date of this report unless
otherwise stated:
Brad Underwood (Managing Director and Chairman)
Noel O’Brien (Non-executive Director)
Mathew Whyte (Non-executive Director)
Cecilia Camarri (Non-executive Director) – Appointed 7 June 2022
PRINCIPAL ACTIVITIES
The principal activity of the Group during the financial year was mineral exploration.
FINANCIAL RESULTS AND FINANCIAL POSITION
The net loss of the Group for the financial year ended 30 June 2022 after providing for income tax amounted
to $1,190,216 (2021: $688,244).
The Group has not reached a stage in its development where it is generating an operating profit. All the
Group’s efforts go into project exploration and evaluation.
At the end of the financial period the Group had cash on hand, including deposits of $7,019,993 (2021:
$5,395,503) and Net Assets of $24,349,620 (2021: $19,238,440).
DIVIDENDS
No dividends have been declared since the end of the previous financial year and no dividends have been
recommended by the directors.
REVIEW OF OPERATIONS
Galileo has two highly prospective West Australian resource and exploration projects (Figure 1) being:
1) The Norseman Project with exploration tenements prospective for palladium-nickel-cobalt deposits and
an existing JORC compliant cobalt-nickel resource, and
2) The Fraser Range Project with exploration tenements prospective for nickel-copper-cobalt deposits.
During the financial year, the Group’s main exploration activities moved from the Fraser Range Project to
the Norseman Project through a series of drilling campaigns, electromagnetic (EM) surveying and other
exploration activities.
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GALILEO MINING LTD
ABN 70 104 114 132
Figure 1: Galileo Mining’s Project Areas
Highlights of the Group’s activities during the year include:
Norseman Project (100% owned)
Significant exploration event during June Quarter 2022 with major palladium-platinum discovery at
Norseman - the Callisto discovery
Discovery drillhole (NRC266) returned significant palladium-platinum-gold-copper-nickel-rhodium
mineralisation over 33 metres;
o 33 metres @ 2.05 g/t 4E (1.64 g/t Pd, 0.28 g/t Pt, 0.09 g/t Au, 0.05 g/t Rh), 0.32% Cu & 0.30%
Ni from 144m
6
GALILEO MINING LTD
ABN 70 104 114 132
All six RC drill holes completed at Callisto contained significant zones of mineralisation and confirm
initial results from the discovery drill hole NRC266.
GAL received significant nickel-copper-cobalt-palladium assay results from its first aircore drilling
campaign from:
Jimberlana prospect (JD1 & JD2)
o
o Northern Mission Sill prospect (MS2 & MS3)
o Southern Mission Sill prospect (MS1)
Assay results significantly increase the prospectivity of Galileo’s project area with mineralised nickel-
copper-cobalt-palladium sulphides confirmed at shallow depths
o One metre of sulphide from 60 metres downhole with 1 metre @ 0.24% nickel, 0.35% copper,
0.04% cobalt and 0.25 g/t palladium (NAC105)
Subsequent events
Second round of RC drilling at Callisto completed with 3,939m drilled over 16 drill holes and three pre-
collars
First four holes returned significant palladium-platinum-gold-copper-nickel assays
Highest grade palladium and platinum assays recorded to date with 8.25 g/t Pd & 1.94 g/t Pt over one
metre in NRC275
Samples from reported intersections were analysed for rhodium content with assays reported in August
11 drill holes hit sulphide mineralisation with portable XRF analyses confirming the presence of nickel
and copper sulphides. Positive assays were reported to the ASX in August.
Mineralised sulphide zone extends over 300m across strike on the southern and central lines, and over
200m across strike on the northern line
Fraser Range Project (JV with Creasy Group)
EM surveying of recently acquired tenement along strike of sulphide mineralisation at the Lantern
South prospect is continuing
Infill EM surveying of highly conductive Green Moon prospect is planned to refine targets for drill
testing
RC drilling commenced and completed at the Empire Rose prospect with ultramafic rock unit
prospective for nickel intersected in drill hole FSRC005
Drilling intersected disseminated sulphides associated with an interpreted graphitic shear
zone in drill holes FSRC001, FSRC002, and FSRC003
Two deep diamond drill holes completed at the Delta Blues prospect with matrix, stringer, and
disseminated sulphides intercepted
The drill holes tested for mineralisation beneath initial prospective RC drill intercepts:
o 4m @ 0.29 g/t gold and 0.29% copper from 188m (DBRC001) including 1 metre @ 0.61 g/t
gold and 0.66% copper from 190m
o 5m @ 0.10 g/t gold and 0.25% copper from 167m (DBRC002)
o 4m @ 0.21 g/t gold and 0.27% copper from 154m (DBRC003)
Sulphides occur in association with tonalite intrusion (described petrographically as a trondhjemite)
Further potential at Delta Blues to be assessed through laboratory assays and down hole EM surveys
Acquired new strategic Fraser Range tenement along strike from known nickel-copper sulphide
mineralisation at the Lantern Prospect
New nickel target less than 5km from nickel sulphides previously drilled at the Lantern South prospect
o Modelled EM conductor is a large-scale target 750 metres long and only 165 metres below
surface
o Ongoing target generation work delivering results with high quality drill targets developed
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GALILEO MINING LTD
ABN 70 104 114 132
Corporate
Highly experienced mining lawyer Cecilia Camarri joins the board as an Independent Non-Executive
Director
In September Quarter FY22, successfully raised $6.5 million (before costs) through a Placement with
cornerstone investments by major shareholders Creasy Group and IGO
Funds used to accelerate exploration program
Well-funded to continue exploration programs with approximately $7.0 million in cash as at 30 June
2022
Subsequent event
Successful Placement raising $20.4 million (before costs) with cornerstone investments by major
shareholders Mark Creasy and IGO
Funds to be used for RC and diamond drill programs at Callisto and drilling at the highly prospective
Mission Sill and Jimberlana palladium and nickel targets at Norseman
Norseman Project
During the year, Galileo reported the discovery of significant palladium-platinum-copper-nickel-sulphide at
the Callisto target.1
Six holes for 1,142 metres were drilled at Callisto2. The target is a mineralised sulphide unit developed at the
base of an ultramafic sill where it intrudes into a package of sedimentary rocks.
Drill holes from the initial campaign were completed on two east-west lines spaced 50 metres apart with a 50-
metre drill spacing along the lines.
Each of the six drill holes intersected palladium-platinum-gold-copper-nickel sulphide intersections. Of the six
holes, drill hole NRC266 recorded the widest interval of sulphide mineralisation with sulphide abundance
increasing to the east in the drilling.
Interpretation of results from Callisto have shown similarities with South Africa’s Platreef deposits with
disseminated sulphide mineralisation hosted in the lower unit of a layered ultramafic sill.
Drill assays from NRC266 were analysed to include the presence of rhodium in addition to palladium-platinum-
gold-copper-nickel.3 These metals also occur in the Platreef deposits in a similar disseminated mineralisation
style and in a similar host rock. Petrographical examination of drill chips from NRC266 is ongoing with the
intention of describing the host rock in more detail.
Table 1: Significant intersections for drill hole NRC266
Hole ID
From
(m)
To
(m)
Interval
(m)
3E (Pd+ Pt+
Au; g/t)
Palladium
(g/t)
Platinum
(g/t)
Gold
(g/t)
Copper
(%)
Nickel
(%)
NRC266
144
177
33
including
159
165
and
176
177
6
1
2.00
2.69
3.21
1.64
2.21
2.66
0.28
0.37
0.41
0.09
0.32
0.11
0.41
0.14
0.48
0.30
0.36
0.46
1 Refer to ASX announcement dated 11th May 2022
2 Refer to ASX announcement dated 4th May 2022
3 Refer to ASX announcement dated 27th May 2022
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GALILEO MINING LTD
ABN 70 104 114 132
Table 2: Significant intersections for drill holes NRC264, NRC265, NRC267, NRC268, NRC269. Cut off
is 1 g/t 3E, maximum of 2m internal dilution
Hole ID
From
(m)
To
(m)
Interval
(m)
3E (Pd+ Pt+
Au; g/t)
Palladium
(g/t)
Platinum
(g/t)
Gold
(g/t)
Copper
(%)
Nickel
(%)
NRC264
133
147
NRC265
135
147
NRC267
124
143
NRC268
137
165
NRC269
135
157
14
12
19
28
22
1.26
1.36
1.69
1.58
1.60
1.02
1.11
1.38
1.29
1.32
0.19
0.19
0.23
0.22
0.21
0.06
0.25
0.06
0.19
0.09
0.07
0.07
0.24
0.27
0.25
0.28
0.22
0.28
0.26
0.26
In June, the Company commenced a second program of RC drilling at the Callisto discovery (Figure 2) to expand
on the early results with drilling designed at a 50-metre spacing across strike to be followed by drill lines along
strike to the north.4 In total, 16 drill holes were completed in this program and three pre-collars prepared for
diamond drill tails.
Figure 2: RC Drilling Underway at Galileo’s Callisto Discovery near Norseman
Galileo reported each of the first four drill holes of the 20-hole program5 had intersected disseminated
sulphide mineralisation geologically consistent with the first round of drilling (Figure 3).
4 Refer to ASX announcement dated 6th June 2022
5 Refer to ASX announcement dated 21st June 2022
9
GALILEO MINING LTD
ABN 70 104 114 132
Figure 3: RC chips with disseminated sulphides (1% – 5%) in NRC274. Depth labels in metres
Figure 4: Norseman Project with Callisto, Mission Sill and Jimberlana palladium-nickel-copper
prospects outlined (over TMI1VD magnetic image).
10
GALILEO MINING LTD
ABN 70 104 114 132
In addition to success at the Callisto discovery, Galileo also received significant nickel-copper-cobalt-palladium
assay results from its first pass aircore drilling program consisting of 8,700m drilled at:
Jimberlana prospect (JD1, JD2)
Northern Mission Sill prospect (MS2 & MS3)
Southern Mission Sill prospect (MS1)
Figure 5: Location of significant Norseman aircore drilling campaign
11
GALILEO MINING LTD
ABN 70 104 114 132
Jimberlana (JD 1 and JD 2)
Significant assays were received from drill holes around the southern EM conductor (labelled “J1 EM Target” in
Figure 6) and are listed in Table 3.6 Of particular note was the presence of nickel, copper, cobalt and palladium
in NAC068 which is located up dip of the J1 conductive target. Results from neighbouring drill holes NAC066
and NAC076 also support the drill target at the modelled conductor.
Figure 6 –– Location of aircore drilling with anomalous results and EM conductors. TMI1VD magnetic
image in background.
6 Refer to ASX announcement dated 3rd March 2022
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GALILEO MINING LTD
ABN 70 104 114 132
Table 3: Significant intersections of drillholes NAC066, NAC068 and NAC076 close to the southern
EM conductor target.
Hole ID
From
(m)
To (m)
Interval
Nickel
(%)
Copper
(%)
Cobalt
(%)
Palladium
(g/t)
Platinum
(ppb)
NAC066
NAC068
NAC068
NAC076
NAC076
0
8
24
4
16
16
20
29
8
27
16
12
5
4
0.15
0.10
0.01
0.13
0.11
0.01
0.15
0.11
0.02
0.29
0.12
0.02
11
0.22
0.05
0.02
0.20
0.12
0.11
0.12
0.14
43
24
20
37
35
At J3 and J4 EM targets, results from drill holes adjacent to the previously reported massive sulphide intercept
in NAC105 were also reported.7 The bottom of hole sample from NAC105 was a follow up of sampling reported
on the 1st December 2021 and confirmed the palladium, copper, and nickel sulphide mineralisation previously
reported of 1m @ 0.24% nickel, 0.35% copper, 0.04% cobalt and 0.25 g/t palladium. NAC092, drilled 500m west
of NAC105, had an anomalous result of 1m @ 0.39% nickel, 0.17% copper, 0.03% cobalt and 73 ppb palladium
while NAC108, which was drilled 150m south of NAC105, also had an anomalous result of 4m @ 0.11 g/t Pd
from 16m. Both results extend the zone of interest of this prospect area and further demonstrates that this is
a priority area for follow up drilling.
Parameters of all the modelled conductors at the Jimberlana prospect are described in Table 4.
Table 4: Jimberlana modelled conductors:
Prospect
Conductivity
Length
Height
Depth to Top
Jimberlana 1 (J1)
48,700S
Jimberlana 2 (J2)
20,580S
Jimberlana 3 (J3)
14,000S
Jimberlana 4 (J4)
24,780S
155m
379m
800m
700m
189m
243m
120m
241m
-21m
-40m
-67m
-80m
Southern Mission Sill (MS1)
Galileo announced numerous aircore drill holes from the southern end of the Mission Sill prospect returning
anomalous palladium results greater than 0.1 g/t Pd (see Table 5). Drill holes were undertaken on drill lines
between 200 and 800 metres apart with a nominal drill spacing of 50 metres along the line. The target zone is
the contact between the ultramafic and mafic units of the Mission Sill. This contact can be delineated in the
magnetic imagery and previous RC drilling at this margin has encountered disseminated sulphides in fresh rock
(up to 5% in patches, with up to 74m @ 0.19 g/t Pd in fresh rock).8 Those assays considered to be significantly
anomalous contain greater than 0.1 g/t Pd over the width of the assay interval. Most assays were received from
four metre composite samples with three, two or one metre samples used where required by the end depth of
the drill hole.
7 Refer to ASX announcement 24 March 2022
8 Refer to Galileo’s ASX announcements dated 17th May 2021
13
GALILEO MINING LTD
ABN 70 104 114 132
Table 5: Significant intersections of drillholes NAC001 to NAC054 (cut-off grade >= 0.1 g/t Pd).
Intersections with >= 0.2 g/t Pd are highlighted in red. Full assays are reported in Appendix 2
Hole ID
From (m)
To (m)
Interval
(m)
Palladium
(g/t)
Platinum
(g/t)
Nickel (%)
Copper (%)
NAC007
NAC008
NAC009
NAC010
NAC016
NAC017
NAC018
NAC019
NAC023
NAC024
NAC025
NAC026
NAC028
NAC031
NAC032
NAC033
NAC034
NAC035
NAC040
NAC041
NAC042
0
4
0
29
0
24
0
0
0
0
28
0
0
0
0
4
0
0
0
0
42
0
34
2
2
0
36
4
8
28
30
8
38
4
18
22
20
35
4
5
7
6
6
4
2
14
32
43
4
35
3
3
32
44
4
4
28
1
8
14
4
18
22
20
7
4
5
7
6
2
4
2
14
32
1
4
1
1
1
32
8
0.08
0.02
0.10
0.11
0.08
0.06
0.02
0.08
0.07
0.06
0.06
0.05
0.09
0.13
0.06
0.11
0.06
0.03
0.04
0.07
0.05
0.07
0.05
0.02
0.09
0.07
0.04
0.10
0.13
0.14
0.38
0.15
0.13
0.11
0.29
0.21
0.15
0.14
0.13
0.28
0.40
0.30
0.11
0.15
0.15
0.17
0.20
0.32
0.11
0.13
0.10
0.28
0.14
0.12
14
0.02
0.02
0.14
0.17
0.11
0.16
0.03
0.23
0.20
0.14
0.18
0.07
0.08
0.06
0.10
0.01
0.06
0.02
0.07
0.23
0.14
0.21
0.10
0.02
0.11
0.26
0.12
0.01
0.02
0.04
0.09
0.02
0.03
0.01
0.11
0.04
0.03
0.03
0.02
0.05
0.10
0.05
0.00
0.02
0.01
0.04
0.03
0.03
0.02
0.01
0.02
0.06
0.03
0.02
GALILEO MINING LTD
ABN 70 104 114 132
Hole ID
From (m)
To (m)
Interval
(m)
Palladium
(g/t)
Platinum
(g/t)
Nickel (%)
Copper (%)
NAC043
NAC044
NAC050
NAC053
0
44
56
64
0
28
52
4
8
4
48
60
65
4
32
56
8
12
4
4
4
1
4
4
4
4
4
0.11
0.13
0.10
0.17
0.11
0.14
0.11
0.17
0.13
0.07
0.04
0.03
0.03
0.04
0.04
0.02
0.03
0.06
0.10
0.11
0.08
0.13
0.07
0.10
0.08
0.14
0.31
0.00
0.02
0.02
0.03
0.01
0.03
0.01
0.13
0.11
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GALILEO MINING LTD
ABN 70 104 114 132
Figure 7 –– Location of Mission Sill aircore drilling with anomalous palladium >= 0.1 g/t. Drill holes
with > 0.2 g/t Pd noted on map – see Table 1 for details. TMI1VD magnetic image in background.
Northern Mission Sill (MS2 and MS3)
Laboratory assays were received from drilling completed at the northern end of Mission Sill along the same
prospective geological contact zone as at the southern end of Mission Sill.9 Assay results demonstrate the
continuity of palladium mineralisation over 9km of strike length at the Mission Sill prospect of which 4km
remains untested by drilling (Figures 8 and 10). IP surveying and RC drilling will be used to explore this extensive
9 Refer to ASX announcement dated 21 March 2022.
16
GALILEO MINING LTD
ABN 70 104 114 132
zone looking for disseminated sulphides at depth that could represent economic accumulations of palladium
and/or nickel.
Figure 8 –– Location of Jimberlana/Mission Sill aircore drilling with a selection of anomalous assays.
2E = palladium + platinum, see Tables 6 & 7 for full details. TMI magnetic image in background.
Figure 8 shows the position of the drill holes. The best results obtained were from aircore drill holes NAC126,
NAC151, and NAC160 as shown below:
4 metres @ 1.66% nickel, 0.16% cobalt, 0.31 g/t 2E (palladium + platinum) from 32m; and 4 metres @
0.90% nickel, 0.18% cobalt, 0.39 g/t gold, 0.23 g/t 2E (palladium + platinum) from 52m in NAC126
8 metres @ 1.44 g/t 2E including 4m @ 1.7 g/t 2E
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GALILEO MINING LTD
ABN 70 104 114 132
15 metres @ 0.44 g/t 2E, including 4m @ 0.69 g/t 2E in NAC160
The high nickel and cobalt results in NAC126 were drilled in a zone on the northern margin of the Jimberlana
Dyke where it comes in contact with the Mission Sill prospect. NAC126 is approximately 800m east of NAC105
which intersected massive sulphides in bottom of hole chips. Subsequent EM surveying around NAC105
delineated large EM conductors beneath drill hole NAC105. Additional EM surveying and IP surveying is now
being planned to follow up the results from NAC126.
Figure 9 - NAC126 aircore chips with nickel/cobalt/palladium & platinum. Iron rich weathered
ultramafic (saprolite) - 4 metres @ 1.66% nickel, 0.16% cobalt, 0.31 g/t 2E from 32m. See Tables 4 & 5
for assay details. Metre numbers are the end of the interval ie. 33 denotes the interval from 32 to 33m
NAC 160 occurs at the interpreted contact between ultramafic and mafic rock. The drill line is a few hundred
metres north of the east-west trending Jimberlana Dyke.10 The area of interaction between the Jimberlana Dyke
and Mission Sill is a priority exploration target for upcoming work programs. Figure 10 shows the extent of
Mission Sill with the prospective target zone and the four kilometres of untested strike length with no palladium
exploration. This unexplored contact position will be targeted with first pass aircore drilling, IP surveying, and
follow up RC drill testing.
Table 6: Significant intersections of aircore drillholes (cut-off grade >= 0.1 g/t Pd, rounded to two
decimal places). Cobalt results with gold are in Table 2.
Hole ID
From
(m)
To (m)
Interval
(m)
Palladium
(g/t)
Platinum
(g/t)
Nickel (%) Copper (%)
NAC120
8
NAC126
including
NAC126
NAC127
NAC127
NAC130
NAC132
12
32
48
16
32
8
4
12
44
36
56
28
36
17
14
4
32
4
8
12
4
9
10
0.13
0.18
0.18
0.15
0.18
0.12
0.16
0.19
0.13
0.12
0.14
0.05
0.06
0.02
0.07
0.03
0.20
0.54
1.66
0.76
0.27
0.12
0.10
0.05
0.00
0.03
0.05
0.01
0.02
0.01
0.06
0.01
10 See Galileo ASX announcements dated 1st December 2021 and 9th February 2022
18
GALILEO MINING LTD
ABN 70 104 114 132
Hole ID
From
(m)
To (m)
Interval
(m)
Palladium
(g/t)
Platinum
(g/t)
Nickel (%) Copper (%)
NAC133
NAC136
NAC138
NAC139
8
20
16
0
NAC139
40
NAC140
0
20
24
22
36
44
4
12
4
6
36
4
4
0.13
0.10
0.20
0.19
0.13
0.13
0.05
0.02
0.06
0.09
0.07
0.17
0.36
0.11
0.13
0.17
0.18
0.11
0.03
0.02
0.08
0.02
0.07
0.00
Table 7: Significant intersections of aircore drillholes (cut-off grade >= 0.1% cobalt, rounded to two
decimal places, gold results included where Au > 0.1 g/t).
Hole ID
Fro
m
(m)
NAC126
32
including
32
NAC126
48
including
52
and
52
To (m)
Interval
(m)
Gold
(g/t)
Nickel
(%)
Cobalt
(%)
Copper
(%)
Palladium
(g/t)
Platinum
(g/t)
40
36
60
60
56
8
4
12
8
4
NA
NA
NA
1.21
0.15
0.04
1.66
0.16
0.05
0.78
0.13
0.00
0.32
0.87
0.14
0.00
0.39
0.90
0.18
0.01
0.16
0.18
0.12
0.13
0.19
0.10
0.14
0.04
0.04
0.04
19
GALILEO MINING LTD
ABN 70 104 114 132
Figure 10 –– Location of aircore drilling over the Mission Sill and the Jimberlana Dyke. Palladium
prospective zone with untested 4km strike length as marked. Magnetic background is TMI
20
GALILEO MINING LTD
ABN 70 104 114 132
Planned work programs at the Norseman Project
The next assays from the second-round drill program at Callisto are anticipated in August 2022.
The third round of RC drilling at Callisto commenced in early August. This drilling aims to expand the known
mineralisation along strike and to the west.
Diamond drilling is also planned to start in August and will focus on the down dip zones to the east.
The drilling programs allow for a broader interpretation of the mineralisation setting, and a better
understanding of the regional potential for more discoveries.
Drill programs at the Mission Sill and Jimberlana prospects are also being planned for later in the year. These
programs aim to follow up on the multitude of anomalous aircore drilling results generated in these areas (see
ASX announcements dated 03/08/22, 08/03/22, 21/03/22, 24/03/22 and 28/03/22).
Fraser Range Project
While the priority for Galileo during the financial year was exploration at Norseman, the Company continued
to progress exploration work at its Fraser Range project.
EM surveying is ongoing at Galileo’s northern Fraser Range project area with the aim of defining new
undercover nickel targets for drill testing. Previous drilling at the Lantern South and Lantern East prospects has
established the area as highly prospective for sulphides. The conductive anomaly at the Easterly prospect is
northeast along strike from known sulphide mineralisation at the Lantern prospect and is ready for drill testing.
The conductive target at the Green Moon prospect requires infill EM surveying to refine the target prior to drill
testing. The current parameters of the EM models at these locations are shown in Table 8 with magnetic
background imagery shown in Figure 11.
Figure 11 – Location of untested EM targets at the Easterly and Green Moon prospects and the
interpreted intrusive targets on new tenement to the south (TMI magnetic background imagery)
21
GALILEO MINING LTD
ABN 70 104 114 132
Table 8: Modelled parameters of Green Moon and Easterly conductors
During the March Quarter, Galileo undertook an RC drill campaign at the Empire Rose prospect consisting of
940m over six drill holes.11 All targets were under shallow cover and represented a combination of geological
and geophysical anomalies. Figure 12 shows the location of the six RC drill holes completed and summary logs
with drill hole details are contained in Appendices 1 and 2. Figure 8 ––Empire Rose prospect with 2022 RC drill
holes and geological/geophysical targets drill tested (over TMI magnetic image).
Figure 12 ––Empire Rose prospect with 2022 RC drill holes and geological/geophysical targets drill
tested (over TMI magnetic image)
Conductive anomalies EM1, EM2, and EM3 (drill holes FSRC001, FSRC003, FSRC002 respectively) were found to
be related to an interpreted graphitic shear zone with disseminated sulphides over significant drilled
thicknesses of greater than 50 metres in FSRC002.
Disseminated sulphides were predominantly pyrrhotite and pyrite and were typically 0.5 to 3% of the one metre
drilled interval, where recorded. FSRC004 was a short drill hole designed to ascertain the cause of the strong
magnetic anomaly beneath cover. The bottom of hole rock chips showed magnetic paragneiss/mafic
metasedimentary unit. FSRC005 and FSRC006 were drilled beneath ultramafic rock units first identified by
aircore drilling. More ultramafic rock was recognised from drill chips which will now be sent for petrographical
analyses to determine nickel fertility. Down hole EM surveying and laboratory assaying will also be used to
establish whether there are further targets for drilling within the prospect area.
11 See ASX announcement dated 14 March 2022
22
GALILEO MINING LTD
ABN 70 104 114 132
Assays from diamond drilling completed at the Delta Blues prospect in the Fraser Range were also received
during the March Quarter. Although matrix, disseminated and stringer sulphides were intersected in drilling
(see ASX announcement dated 15 December 2021), assays indicated the majority of the sulphide was pyrrhotite,
in line with geological logging. Copper and gold values were sporadic through the sulphide zones with a
maximum copper value of 0.51% (from 399 to 400m in DBDD001) and maximum gold values of 0.20 g/t (from
181 to 182m in DBDD001 and from 298 to 299m in DBDD002).
In October 2021, Galileo reported the results of EM surveying from the Company’s Delta Blues prospect within
the Fraser Range Belt in Western Australia.12
This followed positive assay results from three reverse circulation (RC) drill holes completed in September at
the Delta Blues DB2 prospect13 with all three drill holes targeting the very top of a large electro-magnetic (EM)
conductor and all three holes recording sulphide intercepts with anomalous amounts of copper and gold.
DHEM surveying at the Delta Blues DB2 prospect defined a highly conductive target with modelled conductivity
up to 10,500 Siemens. The most conductive zone was positioned below drill holes DBRC001 and DBRC003.
Both RC drill holes recorded sulphide intercepts with anomalous amounts of copper and gold in the first round
of drilling undertaken at the prospect.14 Modelled conductor dimensions up to 500m by 500m represent a
large-scale target with all three drill holes completed to date showing sulphide indications over a minimum
strike length of 210 metres.
Drill holes DBDD001 and DBDD002 were subsequently drilled to test the conductive target beneath sulphide
mineralisation at the DB2 target (Figure 13).15
Figure 13 – Diamond drilling at the Delta Blues prospect in the Fraser Range
Matrix, stringer, and disseminated sulphides were intercepted in both drill holes (Figure 14). However, the
Company is unsure whether the modelled conductor can be adequately explained by the mineralisation
intercepted or is in part related to graphite which accompanies some sections of the sulphide mineralisation.16
12 Refer to ASX announcement dated 27th October 2021
13 Refer to ASX announcement dated 13th September 2021
14 Refer to ASX announcement dated 13th September 2021
15 Refer to ASX announcement dated 13th September 2021
16 Refer to ASX announcement dated 15th December 2021
23
GALILEO MINING LTD
ABN 70 104 114 132
Figure 14 - Matrix sulphide mineralisation at 399m downhole in DBDD001 (field of view approximately
20cm across)
Observed sulphides are predominantly pyrrhotite with minor chalcopyrite. Geological logging recorded typical
Fraser Range meta-sediments and mafic granulites as well as units of felsic (tonalite) intrusive rocks. The
intrusive units occur proximal and adjacent to the sulphides and may have a causative relationship. Felsic
intrusive samples from RC drill hole DBRC001 were examined petrographically under the microscope and were
determined to be trondhjemite, a variety of tonalite.
EM surveying at the Delta Blues DB1 prospect was not successful in replicating earlier modelling and the target
wasn’t drilled during this drill program.
Planned work programs at the Fraser Range Project
Ongoing EM surveying at Galileo’s northern Fraser Range project area with the aim of defining new undercover
nickel targets for drill testing.
The conductive target at the Green Moon prospect requires infill EM surveying to refine the target prior to drill
testing.
OPERATIONS POST YEAR END
Norseman Project
Post end of FY2022, Galileo reported drill assays from the first four RC holes of the second RC drill program at
Callisto and confirmed significant palladium-platinum-gold-copper-nickel results. 17
This included the highest-grade palladium and platinum assays recorded to date of 8.25 g/t Pd & 1.94 g/t Pt
over one metre in NRC275 which add even more prospectivity to the Callisto area with the possibility of high-
grade zones occurring within the mineralised system.
The Company reported significant thicknesses over 20 metres at the 1.0 g/t 3E cut-off grade and over 30 metres
at the lower 0.5 g/t 3E cut-off.
Mineralisation is open in all directions and now extends over 300 metres across strike on section 6,448,000N.
17 Refer to ASX announcement dated 11th July 2022
24
GALILEO MINING LTD
ABN 70 104 114 132
Table 9: Significant intersections for drill holes NRC274, NRC275, NRC276, NRC277 with a 1.0 g/t 3E
cut off, maximum of 1m internal dilution. Rounding may have slight effect on the calculation of 3E
Hole ID
From
(m)
To
(m)
Interval
(m)
3E (Pd+ Pt+
Au; g/t)
Palladium
(g/t)
Platinum
(g/t)
Gold
(g/t)
Copper
(%)
Nickel
(%)
NRC274
144
167
and
172
174
NRC275
143
172
including
170
171
NRC276
150
170
and
and
174
176
180
181
NRC277
147
159
and
and
172
173
177
199
23
2
29
1
20
2
1
12
1
22
2.12
1.79
2.22
10.46
1.79
1.28
1.00
1.81
1.16
1.67
1.74
1.43
1.80
8.25
1.47
1.07
0.83
1.48
0.94
1.33
0.30
0.26
0.33
1.94
0.25
0.18
0.13
0.25
0.17
0.23
0.09
0.35
0.10
0.29
0.09
0.32
0.26
0.36
0.07
0.03
0.04
0.08
0.05
0.11
0.27
0.92
0.23
0.31
0.17
0.27
0.35
0.28
0.31
0.22
0.30
0.20
0.17
0.30
0.22
0.27
Table 10: Significant intersections for drill holes NRC274, NRC275, NRC276, NRC277 with a 0.5 g/t 3E
cut off, maximum of 3m internal dilution. Rounding may have slight effect on the calculation of 3E
Hole ID
From
(m)
To
(m)
Interval
(m)
3E (Pd+ Pt+
Au; g/t)
Palladium
(g/t)
Platinum
(g/t)
Gold
(g/t)
Copper
(%)
Nickel
(%)
NRC274
138
174
NRC275
136
174
NRC276
146
183
NRC277
142
159
NRC277
169
200
36
38
37
17
31
1.63
1.84
1.26
1.50
1.40
1.33
1.49
1.04
1.22
1.11
0.23
0.28
0.18
0.21
0.19
0.07
0.27
0.08
0.26
0.05
0.07
0.09
0.25
0.25
0.22
0.28
0.28
0.22
0.26
0.24
Eleven additional drill holes have been completed with each drill hole intersecting disseminated sulphide
mineralisation geologically consistent with the first round of drilling.18
The geometry of the sulphide mineralisation appears to be flat lying before it begins to dip to the east.
Mineralisation is not yet closed off on the flat lying areas to the west with the possibility of extensions to the
west at a relatively shallow depth below surface. Mineralisation is also open to the north, south and east.
18 Refer to ASX announcement dated 13th July
25
GALILEO MINING LTD
ABN 70 104 114 132
Figure 15: Callisto preliminary geological drill section 6,448,000mN with major drill intercepts at 1.0
g/t 3E cut-off. NRC278 finished in mineralisation and NRC279/280 are pre-collars.
Figure 16: Callisto preliminary geological section 6,448,050mN with target sulphide zone.
26
GALILEO MINING LTD
ABN 70 104 114 132
Figure 17: Callisto preliminary geological section 6,448,100mN with target sulphide zone.
Figure 18: Plan map view of completed drilling. 6,448,050mN and 6,448,100mN section lines are in
Figures 4 & 5 respectively
27
GALILEO MINING LTD
ABN 70 104 114 132
CORPORATE
During the year, Galileo announced the appointment of highly experienced mining lawyer Cecilia Camarri as
an Independent Non-Executive Director of the Company.
Cecilia is Special Counsel at a WA law firm and has extensive experience specialising in the mining industry.
Cecilia acts as a legal adviser to private and listed mining companies and has both operational and
management experience.
As at 30 June 2022, the Group had cash and deposits of approximately $7 million.
Notably, post period-end Galileo successfully closed a placement of 17,000,000 shares at an issue price of $1.20
per share to raise gross proceeds of $20.4 million.
The Placement received strong backing, with $8.7 million of the funds coming from major shareholders, Mark
Creasy and IGO, and ensures the Company is well positioned for future exploration activities.
Risks to the Group due to the ongoing global COVID-19 health emergency continue to be monitored. The
Group’s cash position provides insulation to any longer-term unforeseen impacts to funding and operating
that may occur. All of Galileo’s projects are located in Western Australia and, although the future risk from
COVID-19 cannot be reliably estimated, the potential impact on Group’s operations over the next 12 months
does not appear significant.
JORC Mineral Resource Estimates
Cut‐off
Cobalt %
MT THIRSTY SILL
0.06 %
Class
Tonnes Mt
Co
%
Tonnes %
Ni
Tonnes
Indicated
Inferred
Total
MISSION SILL
0.06 %
Inferred
GOBLIN
0.06 %
Inferred
TOTAL JORC COMPLIANT RESOURCES
0.06 %
Total
10.5
2.0
12.5
7.7
4.9
0.12 12,100 0.58
0.11
0.51
2,200
0.11 14,300 0.57
60,800
10,200
71,100
0.11
8,200
0.45
35,000
0.08
4,100
0.36
16,400
25.1
0.11 26,600 0.49 122,500
Table 1 ‐ JORC Mineral Resource Estimates for the Norseman Cobalt Project (“Estimates”)
(refer to ASX “Prospectus” announcement dated May 25th 2018 and ASX announcement
dated 11th December 2018, accessible at http://www.galileomining.com.au/investors/asx‐
announcements/). Galileo confirms that all material assumptions and technical parameters
underpinning the Estimates continue to apply and have not materially changed).
28
GALILEO MINING LTD
ABN 70 104 114 132
Competent Person Statements
The information in this Table that relates to the Mt Thirsty Sill and Mission Sill Mineral Resource Estimates is
based on, and fairly represents, information and supporting documentation prepared by Michael Elias, who
is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr. Elias is employed by CSA Global Pty
Ltd. Mr. Elias has sufficient experience which is relevant to the style of mineralisation and type of deposit
under consideration and to the activity he is undertaking to qualify as a competent person as defined in the
2012 Edition of the “Australasian Code for reporting of Exploration Results, Exploration Targets, Mineral
Resources and Ore Reserves”. Mr. Elias consents to the inclusion in this Table of the matters based on his
information in the form and context in which it appears.
The information in this Table that relates to the Goblin Mineral Resource Estimate, and the Exploration
Information in the Review of Operations and the information in this report that relates to exploration results,
is based on, and fairly represents, information and supporting documentation prepared by Mr Brad
Underwood, a Member of the Australasian Institute of Mining and Metallurgy, and a full time employee of
Galileo Mining Ltd. Mr Underwood has sufficient experience that is relevant to the styles of mineralisation
and types of deposit under consideration, and to the activity being undertaken, to qualify as a Competent
Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves” (JORC Code). Mr Underwood consents to the inclusion in the Table of the
matters based on his information in the form and context in which it appears.
With regard to the Company’s ASX Announcements referenced in this report, the Company is not aware of
any new information or data that materially affects the information included in the Announcements.
CAPITAL STRUCTURE
As at the date of this Directors’ report the Company’s Capital structure is as follows:
Quoted Securities:
Number
Class
197,408,260
Ordinary Fully Paid Shares
Un-quoted Securities:
Number
Class
2,500,000
Unquoted Options exercisable at $0.52 expiring 15 September 2023
974,615
Unquoted Options exercisable at $2.40 expiring 14 July 2024
SIGNIFICANT EVENTS AFTER THE BALANCE DATE
-
-
Subsequent to balance date the Company completed a capital raising (refer ASX announcements 6 and
14 July 2022) to raise $20.4 million (before costs) by way of a placement to institutions and
sophisticated investors (“Placement”). Settlement of the placement occurred on 14 July 2022 when the
Company issued 17,000,000 at an issue price of $1.20 per share. As part of the fee for the lead
manager to the Placement the Company also issued on 14 July 974,615 unquoted Options with an
exercise price of $2.40 and an expiry date of 14 July 2022.
On 14 July 2022 the Company announced 1,600,000 fully paid ordinary shares were issued in full
satisfaction of the exercise of 1,600,000 Performance Rights issued in accordance with the terms and
conditions of the Galileo Mining Ltd Employee Incentive Plan.
29
GALILEO MINING LTD
ABN 70 104 114 132
Other than the above, no other matters or circumstances have occurred subsequent to balance date that
have or may significantly affect the operations or state of affairs of the Group in subsequent financial years.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Group will continue its evaluation of its mineral projects and undertake generative work to identify and
acquire new resource projects and opportunities. Due to the nature of the business, the result is not
predictable.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Other than reported above in the Review of Operations, there were no significant changes in the state of
affairs of the Group during the reporting period.
ENVIRONMENTAL REGULATIONS AND PERFORMANCE
The Group is required to carry out the exploration and evaluation of its mining tenements in accordance
with various State Government Acts and Regulations.
In regard to environmental considerations, the Group is required to obtain approval from various State
regulatory authorities before any exploration requiring ground disturbance, such as line clearing, drilling
programs and costeaning is carried out. It is normally a condition of such regulatory approval that any area
of ground disturbed during the Group’s activities is rehabilitated in accordance with various guidelines. The
Group conducts its exploration activities in an environmentally sensitive manner and is not aware of any
significant breaches of these guidelines.
INFORMATION ON DIRECTORS AND SECRETARIES
Current Directors
Brad Underwood – Managing Director (appointed 13 September 2017) and Chairman (effective from
26 December 2019)
Mr Underwood is a geologist with over 19 years’ experience in exploration, prospecting and mining. He has
been involved in nickel, gold, copper and cobalt discoveries and the development of numerous prospects
over a variety of commodities.
Between 2010 and 2018 Mr Underwood worked for prospector and mining entrepreneur Mark Creasy as
General Manager of several private companies. He has a wide range of skills including the strategic growth
and commercialisation of mineral assets at different stages of development.
Mr Underwood played a key role in the discovery of the Silver Knight nickel-copper-cobalt deposit in the
Fraser Range and the discovery of Galileo’s Mission Sill cobalt resources.
Mr Underwood has a Bachelor of Science in Geology and a Post Graduate Diploma in Geology from the
University of Auckland, and a Master of Science (Distinction) in Mineral Economics from Curtin University.
Brad has not held any other directorships of listed entities in the last 3 years.
Noel O’Brien – Non-Executive Director (appointed 6 February 2018)
Noel O’Brien is a metallurgist with wide international and corporate experience. After a career spanning 40
years in Australia and Africa he established Trinol Pty Ltd, a Perth based consultancy, to provide process and
project development services over a broad range of commodities.
Mr O’Brien has been actively involved with projects containing manganese, iron ore, gold, base metals, and
the battery metals including lithium, graphite and cobalt.
He has served on the board of a number of ASX listed companies over the past 9 years and is currently a
technical advisor to several listed companies with early to advanced stage projects.
Mr O’Brien has a Batchelor’s degree in Metallurgical Engineering from the University of Melbourne, an MBA
from the University of the Witwatersrand and is a Fellow of the AusIMM. Noel was appointed as a Non-
30
GALILEO MINING LTD
ABN 70 104 114 132
executive Director of Resource Mining Corporation Ltd (ASX:RMI) on 20 June 2022 and was previously a
Non-executive Director of : Mali Lithium (ASX: MLL) from 1 December 2017 to 6 April 2020; and Metals Tech
Limited (ASX: MTC) from 17 June 2019 to 6 July 2020.
Ms Cecilia Camarri – Independent Non-Executive Director (Appointed 7 June 2022)
Cecilia Camarri is Special Counsel at a WA law firm and has extensive experience specialising in the mining
industry. Ms Camarri acts as a legal adviser to private and listed mining companies and has both operational
and management experience.
Ms Camarri began her mining career in 1996 at the historic Great Fingall Gold Mine at Day Dawn near Cue
in WA. Following this she undertook community and public relations management roles at the Super Pit /
Mt Charlotte underground mine and Alcoa’s Wagerup Refinery before becoming a lawyer.
Ms Camarri has acted for many WA based exploration and mining companies and was the In-House Counsel
for the Creasy Group between 2012 and 2016.
Ms Camarri has a Bachelor of Laws, a Graduate Diploma in Journalism, a Bachelor of Arts, and is a member
of the Australian Institute of Company Directors. Ms Camarri has not held any other directorships of listed
entities in the last 3 years.
Mr Mathew Whyte – Non-Executive Director (Appointed 26 December 2019) and Company Secretary
Mr Whyte is a CPA and a Chartered Secretary (FGIA FCG). He has over 26 years’ commercial experience in
the financial management, direction, and corporate governance of ASX listed companies.
Mr Whyte has held senior executive, company secretarial and directorship roles on a broad range of
Australian ASX listed entities with operations in Australia and overseas in the mining exploration, mining
services, power infrastructure and technology development industries. Mr Whyte was a Non-executive
director and Company Secretary of Aurora Labs Ltd (ASX: A3D) from 26 July 2017 to 26 February 2020.
DIRECTORS’ INTERESTS IN SHARES AND PERFORMANCE RIGHTS OF THE COMPANY
As at the date of this report, the interest of the directors in securities of Galileo Mining Ltd were:
Brad Underwood
Noel O’Brien
Cecilia Camarri
Mathew Whyte
DIRECTORS’ MEETINGS
Number of
Ordinary Shares
8,619,244
2,429,811
-
350,000
The following table sets out the number of meetings of directors held during the year ended 30 June 2022
and the number of meetings attended by each director.
Brad Underwood
Noel O’Brien
Cecilia Camarri
Mathew Whyte
Number Eligible to
Attend
14
14
1
14
Number Attended
14
14
1
14
31
GALILEO MINING LTD
ABN 70 104 114 132
REMUNERATION REPORT (Audited)
The Directors of Galileo Mining Ltd present the Remuneration Report (‘the Report”) for the Group for the year
ended 30 June 2022 (“FY22”). This Report forms part of the Directors’ Report and has been audited as required
by section 300A of the Corporations Act 2001.
Key management personnel disclosed in this report
For the purposes of this Report, key management personnel (KMP) of the Group are defined as those persons
having authority and responsibility for planning, directing and controlling the major activities of the Group,
directly or indirectly, including a director (whether executive or otherwise) of the Company, and its
subsidiaries.
Details of key management personnel:
Brad Underwood (Managing Director/Chairman)
Noel O’Brien (Non-executive Director)
Cecilia Camarri (Non-executive Director)
Mathew Whyte (Non-executive Director and Company Secretary)
Remuneration Philosophy
The performance of the Group depends upon the quality of its Directors and Executives. To prosper the Group
must attract, motivate and retain highly skilled directors and KMP.
To this end Galileo aims to reward executives with a level and mix of remuneration commensurate with their
position and responsibility so as to align the interests of executives with those of shareholders and to ensure
total remuneration is competitive by market standards.
Remuneration and nomination issues are handled at the full Board level. Due to the small number of directors
and KMP no separate committee has been established for this purpose.
Board members, as per groupings detailed below, are responsible for determining and reviewing
compensation arrangements.
In order to maintain good corporate governance, the Non-executive Directors assume responsibility for
determining and reviewing compensation arrangements for the Executive Directors of the Group. The
Executive Directors in turn are responsible for determining and reviewing the compensation arrangements
for the Non-executive Directors.
The assessment considers the appropriateness of the nature and amount of remuneration of KMPs on a
periodic basis by reference to relevant employment market conditions with the overall objective of ensuring
maximum stakeholder benefit from the retention of a high-quality Board and executive team.
Independent external advice is sought from remuneration consultants when required, however no advice has
been sought during the year ended 30 June 2022. The Corporate Governance Statement provides further
information on the Company’s remuneration governance.
Remuneration structure
In accordance with best practice corporate governance, the structure of Non-executive Director and Executive
Director’s remuneration is separate and distinct.
A. Non-executive Directors’ remuneration
Objective
The Board seeks to set aggregate remuneration at a level that provides the Group with the ability to attract
and retain directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
Structure
The Board policy is to remunerate non-executive directors at commercial market rates for comparable
companies for their time, commitment and responsibilities.
32
GALILEO MINING LTD
ABN 70 104 114 132
On appointment to the Board, all non-executive directors sign a letter of appointment. The letter summarises
the Board policies and terms including remuneration, relevant to the office of director.
The constitution and the ASX Listing rules specify that the aggregate remuneration of non-executive directors
shall be determined from time to time by shareholders at general meeting.
Non-executive directors receive a fixed fee inclusive of superannuation contributions. Fees for non-executive
directors are not linked to the performance of the Group. Subject to approval by shareholders, Non-executive
directors’ remuneration may also include an incentive portion consisting of Options and Performance Rights,
which are granted for the same reasons and objectives and on the same terms as Options granted to Executive
Directors as outlined in Section B below. To this end Non-executive Directors are also entitled to participate
in Galileo’s Long Term Incentive Plan (LTI Plan).
The remuneration of Non-executive Directors for the year ended 30 June 2022 is detailed in the table in
Section C of this Report.
B. Executive Directors’ remuneration
Objective
The Group aims to reward Executive Directors with a level and mix of remuneration commensurate with their
position and responsibilities within the Group and so as to:
- Align the interests of Executive Directors with those of shareholders.
-
Link rewards with the strategic goals and performance of the Group
-
Ensure total remuneration is competitive by market standards.
Structure
In determining the level of remuneration paid to Executive Directors, the Board takes into account the
activities of the Group and available benchmarks.
An employment contract has been entered into with the Executive Director of Galileo. Details of this contract
are provided in Section D of this Report.
Remuneration consist of the following key elements:
Fixed remuneration
-
- Variable Remuneration – Long Term Incentive (LTI).
The proportion of fixed remuneration and variable remuneration is established for the Executive Director by
the Board. The table in Section C of this Report details the fixed and variable components (%) of the Executive
Directors of Galileo.
Fixed Remuneration
The level of fixed remuneration is set as a cash salary plus superannuation contributions so as to provide a
base level of remuneration which is both appropriate to the position and is competitive in the market.
Variable remuneration – Long Term Incentives (LTI)
Options
LTI grants to executives are delivered in the form of Options.
The table in Section C provides details of Options granted and the value of equity instruments granted,
exercised and lapsed during the year. Options were issued free of charge. Each option entitles the holder to
subscribe for one (1) fully paid ordinary share in Galileo upon the exercise of the option based on achieving
vesting conditions at a $0.20 exercise price. The terms and conditions including the service and performance
criteria that must be met are as follows:-
Each Option will only vest and become exercisable when the 60-day volume weighted average market price
(as defined in the Listing Rules) of Galileo’s quoted Shares first exceeds $0.60 per Share. Options not so
exercised shall automatically expire on the expiry date. Each Option entitles the holder to subscribe for one
33
GALILEO MINING LTD
ABN 70 104 114 132
Share in the capital of Galileo. Each Share allotted as a result of the exercise of any Option will rank in all
respect pari passu with the existing Shares in the capital of Galileo on issue at the date of allotment.
Relationship between remuneration and the Group’s performance
As the Group is a listed exploration Group, measuring performance is difficult. The most meaningful measure
of internal performance is on goals that have an exploration focus.
In considering the Group’s performance and benefits for shareholder wealth, the Board has regard to the
following indices in respect of the current financial year and the previous financial years:
2022
2021
2020
Net Loss
1,190,216
688,244
912,561
Share price (as at year
end)
$1.30
$0.275
$0.21
34
GALILEO MINING LTD
ABN 70 104 114 132
Remuneration Details
Details of the nature and amount of each element of the remuneration of each KMP of the Group are shown
in the table below:
Short-term benefits
Share-based payments(1)
Post
employment
Super-
annuation
Long-term
benefits
Long
Service
Leave
$
$
$
$
Options
8,867
5,928
18,119
12,319
49,773
54,931
36,000
30,875
360,000
325,000
Salary &
fees
Non
monetary
benefits
$
Brad Underwood (Managing Director) – appointed 13 September 2017
2022
2021
Noel O’Brien (Non-Executive Director) – appointed 6 February 2018
2022
2021
Cecilia Camarri (Non-Executive Director) – appointed 7 June 2022
2022
2021
Mathew Whyte (2) (Non-Executive Director) – appointed 26 December 2019
2022
2021
Simon Jenkins (Ex Chairman) – appointed 13 September 2017, Deceased 24 December 2019
2022
2021
Total 2022
Total 2021
-
(66,500)
-
(66,500)
-
-
564,546
531,931
-
-
45,954
38,250
-
-
18,119
12,319
-
-
8,867
5,928
154,773
152,000
4,977
4,750
4,977
2,625
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
Perfor-
mance
Rights
$
422,986
374,122
54,750
57,556
-
-
200,543
187,063
-
(66,500)
678,279
552,241
-
-
-
-
-
-
40,793
30,313
-
-
40,793
30,313
Perform-
ance
Related
%
-
-
-
-
-
-
20.3
16.2
-
-
6.0
5.5
(1) Amounts recognised as Share Based Payments represent:
Options ‐ the non‐cash fair value of Class A Unquoted Options issued during FY 2018. Each Option is exercisable at $0.20 and expires on
31 January 2023 without meeting exercise conditions. Options will only vest and become exercisable when the 60‐day VWAP of the
Company’s quoted shares first exceeds $0.60 per share. All Options were released from escrow on 29 May 2020. On 27 May 2022
12,500,000 options were exercised for 10,399,055 shares pursuant to a cashless exercise facility (Refer Note 20(a)).
Performance Rights – the expensed non‐cash fair value of performance rights issued during FY 2018 and FY 2022 free of charge (Refer
Note 20(b)). Each Performance Right entitles the holder to subscribe for one (1) fully paid ordinary share in the Company based on
achieving vesting conditions at a nil exercise price.
The terms and conditions including the service and performance criteria that must be met are as follows: ‐
(a)
volume weighted average market price (as defined in the ASX Listing Rules) of the Company’s quoted Shares first exceeds $1.00 per
Share (Vesting Condition).
(b) Maintain a minimum of 12 months continuous service with the Company.
(c)
employment with the Company is terminated for any reason before the Vesting Condition is met.
If a Good Leaver* and the Vesting Condition has been satisfied at the date of termination the Performance Rights may be
(d)
exercised within 20 Business Days of termination of employment or contracting (as applicable) with the Company. If a Bad Leaver* and
the Vesting Condition has been satisfied at the date of termination the Performance Rights will terminate.
*As defined in the Galileo Mining Ltd Employee Incentive Plan
Subject to the below paragraphs (b) to (d), each Performance Right will only vest and become exercisable when the 10 day
Each Performance Right will automatically be cancelled and will be redeemed by the Company for nil consideration if
(2) Mathew Whyte provided company secretarial services through his controlled entity Whypro Corporate Services ABN 53 844 654 790.
Payments for company secretarial services during FY 2022 totaled $105,000 (excluding superannuation) (2021: $102,000). Mr Whyte
also received a Non‐executive director fee of $49,773 (plus superannuation of $4,977) (2021: $50,000 (plus superannuation $4,750).
35
GALILEO MINING LTD
ABN 70 104 114 132
Unlisted Options Issued to KMP
No options were issued to KMP during, or since the end of, the current financial year ended 30 June 2022.
The following options over unissued ordinary shares held by KMP as remuneration were exercised during the
year:
Class
Expiry date
Exercise
price
Date granted
Number of
options
Grant date
fair value
Vesting date
Unlisted
Options
31 Jan 2023
$0.20
6 Feb 2018
12,500,000
$0.0266
Based on
VWAP
Option holdings of key management personnel (unlisted options)
KMP
Balance at
beginning
of the year
Options
Granted
Options
expired
Net change
other
(exercised)*
Balance
at end of
the year
Vested at end of year
Exercisable
Not
exercisable
2022
B Underwood
N O’Brien
C Camarri
M Whyte
10,000,000
2,500,000
-
-
Total
12,500,000
-
-
-
-
-
-
-
-
-
-
(10,000,000)
(2,500,000)
-
-
(12,500,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
* On 27 May 2022 12,500,000 options were exercised for 10,399,055 shares pursuant to a cashless exercise facility (Refer Note 20(a)).
KMP
Balance at
beginning
of the year
Options
Granted
Options
expired
Net
change
other
Balance
at end of
the year
Vested at end of year
Exercisable
Not
exercisable
2021
B Underwood
N O’Brien
M Whyte
10,000,000
2,500,000
-
Total
12,500,000
Performance Rights Issued to KMP
-
-
-
-
-
-
-
-
-
-
-
10,000,000
2,500,000
-
-
12,500,000
-
-
-
-
-
-
-
-
The following performance rights over unissued ordinary shares were issued to KMP during, or since the end
of, the current financial year ended 30 June 2022:
Class
Expiry date
Performance
Rights
31 January
2023
* The rights vested prior to 30 June 2022
Exercise
price
Nil
Date granted
Number
Grant date
fair value
Expected Vesting
date
25 November
2021
200,000
$0.0524
31 January 2023*
36
GALILEO MINING LTD
ABN 70 104 114 132
Performance Rights of key management personnel (unlisted options)
KMP
Balance at
beginning
of the year
Performance
Rights
Granted
Performance
Rights
expired
Net
change
other
Balance at
end of the
year
Vested at end of year
Exercisable
Not
exercisable
2022
M Whyte
400,000
200,000
Total
400,000
200,000
-
-
KMP Balance at
beginning
of the year
Performance
Rights
Granted
Performance
Rights
expired
Net
change
other
2021
M Whyte
400,000
Total
400,000
-
-
-
-
Shareholdings of key management personnel (ordinary shares)
-
-
-
-
600,000
600,000
600,000
600,000
-
-
Balance at
end of the
year
Vested at end of year
Exercisable
Not
exercisable
400,000
400,000
-
-
-
-
KMP
2022
B Underwood
N O’Brien
C Camarri
M Whyte
Balance at
beginning of
the year
Granted as
remuneration
Exercised
Options*
Net change
other
Balance at
end of the
year
300,000
-
-
200,000
-
-
-
-
8,319,244
2,079,811
-
-
-
8,619,244
350,000
2,429,811
-
-
-
200,000
Total
11,249,055
* On 27 May 2022 12,500,000 options were exercised for 10,399,055 shares pursuant to a cashless exercise facility (Refer Note 20(a)).
10,399,055
500,000
350,000
-
The value of the options at the time of exercise was $12,293,136. The value was calculated using a 5-day VWAP leading up to the
conversion.
KMP
2021
B Underwood
N O’Brien
M Whyte
Total
Balance at
beginning of
the year
Granted as
remuneration
Exercise
Options
Net change
other
300,000
-
200,000
500,000
-
-
-
-
-
-
-
-
Balance at
end of the
year
-
-
-
-
300,000
-
200,000
500,000
C. Service Agreements
Mr Brad Underwood – Managing Director and Chairman
Terms of Agreement – commenced as Managing Director on 6 February 2018, no fixed term, until
terminated by either party.
- Termination – 3 months by Mr Underwood and 6 months by Galileo.
37
GALILEO MINING LTD
ABN 70 104 114 132
- Salary: Fixed remuneration of $360,000 per annum plus superannuation for the year ended 30/6/2022.
Fixed remuneration of $420,000 per annum plus superannuation commencing from 1/7/2022 pursuant
to a deed of variation dated 21 July 2022.
D. Loans to key management personnel
There were no loans to key management personal during the financial year or the previous financial year.
E. Other KMP transactions
1. Whypro Corporate Services a business of which Mathew Whyte is principal, provided company
secretarial, corporate administration and CFO services to the Company totalling $105,000
(excluding GST) (30 June 2021: $102,000). As at 30 June 2022, $12,650 was payable to Whypro
Corporate Services.
End of Remuneration Report
SHARE OPTIONS
At the date of this report the unissued ordinary shares of the Company under option are as follows:
Date of
Expiry
31 Jan 23
29 April 22
15 Sept 23
14 July 2024
Exercise
Price
$0.20
$0.44
$0.52
$2.40
Held at
01 Jul 21
12,500,000
2,272,727
2,500,000
Issued
Exercised
-
-
-
(12,500,000)*
-
-
-
-
974,615
Lapsed /
Cancelled
-
(2,272,727)
Held at
19 Aug 22
-
-
-
-
2,500,000
974,615
* On 27 May 2022 12,500,000 options were exercised for 10,399,055 shares pursuant to a cashless exercise facility (Refer Note 20(a)).
Option holders do not have any right, by virtue of the option, to participate in any share issue of the Company
or any related body corporate or in the issue of any other registered scheme.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to any court pursuant to section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for
the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. The
Company was not a party to any such proceedings during the year.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has entered into a deed of indemnity with all existing directors and officers. Under the deed
the Company has undertaken, subject to the restrictions in the Corporations Act, to indemnify all existing
directors in certain circumstances whilst a director or officer and for 7 years after they have ceased to be a
director or officer.
During the year, the Company paid a premium to insure officers of the Group. The officers of the Group
covered by the insurance policy include all directors and the company secretary.
The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may
be brought against the officers in their capacity as officers of the Company, and any other payments arising
from liabilities incurred by the officers in connection with such proceedings, other than where such liabilities
arise out of conduct involving a wilful breach of duty by the officers or the improper use by the officers of
their position or of information to gain advantage for themselves or someone else to cause detriment to the
Group.
Details of the amount of the premium paid in respect of the insurance policies is not disclosed as such
disclosure is prohibited under the terms of the contract.
38
GALILEO MINING LTD
ABN 70 104 114 132
The Company has not otherwise, during or since the end of the financial year, except to the extent permitted
by law, indemnified or agreed to indemnify any current or former officer or auditor of the Group against a
liability incurred as such by an officer.
AUDIT COMMITTEE
The Group is not of a size nor are its financial affairs of such complexity to justify a separate audit committee
of the board of directors. All matters that might properly be dealt with by such a committee are the subject
of scrutiny at full board meetings.
AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES
The Auditor’s Independence Declaration immediately follows this Report and forms part of this Report. The
Directors are satisfied as to the independence of the auditors.
During the financial year the entity’s auditor, HLB Mann Judd, did not provide other non-audit services (2021:
$Nil) (refer to note 21).
Signed in accordance with a resolution of directors.
For and on Behalf of the Board of Directors
Mr Brad Underwood
Managing Director
Perth, 18 August 2022
39
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of Galileo Mining Ltd for the year
ended 30 June 2022, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
18 August 2022
D I Buckley
Partner
40
GALILEO MINING LTD
ABN 70 104 114 132
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
Notes
30 June 2022
$
30 June 2021
$
Other income
3
21,689
124,568
Employee benefits and director fees expense
Consulting fees
Share-based payment (expense)/reversal
Depreciation expense
Exploration & evaluation (expense)/refund
Legal and audit expenses
Other expenses
(218,022)
(246,944)
(74,170)
(70,208)
(2,450)
(62,628)
(537,483)
(177,710)
(234,091)
17,492
(85,133)
14,920
(39,181)
(309,109)
Loss before income tax expense
(1,190,216)
(688,244)
Income tax expense
4
-
-
Net loss after income tax
(1,190,216)
(688,244)
Other comprehensive income
-
-
Total comprehensive loss for the year
(1,190,216)
(688,244)
Loss per share (cents per share)
Basic loss per share for the year
Diluted loss per share for the year
5
5
2022
¢
(0.73)
(0.73)
2021
¢
(0.48)
(0.48)
The above Consolidated Statement of Comprehensive Income is to be read in conjunction with the Notes to the
Consolidated Financial Statements.
41
GALILEO MINING LTD
ABN 70 104 114 132
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
Notes
30 June 2022
$
30 June 2021
$
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Other
Total Current Assets
Non-Current Assets
Property, plant and equipment
Right-of-use assets
Exploration and evaluation expenditure
Other assets
Total Non-Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Lease liabilities
Other liabilities
Total Current Liabilities
Non-Current Liabilities
Lease liabilities
Other liabilities
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
17a
6a
7a
8
9
10
7b
11
12a
13a
12b
13b
7,019,993
99,809
27,845
7,147,647
1,052
111,483
17,718,791
26,136
5,395,503
46,301
37,546
5,479,350
4,549
61,863
13,934,466
26,071
17,857,462
14,026,949
25,005,109
19,506,299
411,847
56,707
85,804
554,358
55,049
46,082
101,131
124,599
59,320
54,025
237,944
-
29,915
29,915
655,489
267,859
24,349,620
19,238,440
14
15
16
28,864,590
936,417
(5,451,387)
22,929,035
903,076
(4,593,671)
24,349,620
19,238,440
The above Consolidated Statement of Financial Position is to be read in conjunction with the Notes to the Consolidated
Financial Statements.
42
GALILEO MINING LTD
ABN 70 104 114 132
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
Issued
capital
$
Share based
payment
reserve
$
Accumulated
losses
Total
$
$
As at 1 July 2021
22,929,035
903,076
(4,593,671)
19,238,440
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
Issue of shares
Transaction costs of share issue
Share based payments
Transfer cancelled performance rights
from reserve
Transfer of exercised options from
reserve
-
-
-
-
-
-
(1,190,216)
-
(1,190,216)
(1,190,216)
-
(1,190,216)
6,580,080
(644,525)
-
-
-
-
393,376
(27,535)
-
-
-
-
6,580,080
(644,525)
393,376
(27,535)
-
(332,500)
332,500
-
As at 30 June 2022
28,864,590
936,417
(5,451,387)
24,349,620
As at 1 July 2020
22,929,035
920,568
(3,905,427)
19,944,176
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
Share based payments
Reversal of cancelled options from
reserve
Reversal of cancelled performance rights
from reserve
-
-
-
-
-
-
-
-
-
(688,244)
-
(688,244)
94,330
(66,500)
(45,322)
-
-
-
(688,244)
-
(688,244)
94,330
(66,500)
(45,322)
As at 30 June 2021
22,929,035
903,076
(4,593,671)
19,238,440
The above Consolidated Statement of Changes in Equity is to be read in conjunction with the Notes to the Consolidated
Financial Statements.
43
GALILEO MINING LTD
ABN 70 104 114 132
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
Cash Flow from Operating Activities
Payments to suppliers and employees
Exploration and evaluation (expenditure)/refund
Interest received
Other income
GST received/(paid)
Interest paid
Notes
30 June 2022
$
30 June 2021
$
(999,391)
(2,450)
17,436
3,172
(52,428)
(2,376)
(749,440)
14,920
38,710
93,075
50,838
(2,710)
Net cash (used in) operating activities
17b
(1,036,037)
(554,607)
Cash Flow from Investing Activities
Payments for exploration and evaluation expenditure
Payment for purchase of tenements
Security deposit paid
Receipts from/(payments for) term deposits
(3,327,990)
(94,670)
(65)
-
(2,665,192)
-
-
4,505,000
Net cash provided by/(used in) investing activities
(3,422,725)
1,839,808
Cash Flow from Financing Activities
Proceeds from issue of shares
Share issue costs
Lease payments
6,500,025
(352,879)
(63,894)
-
-
(81,759)
Net cash provided by/(used in) financing activities
6,083,252
(81,759)
Net increase in cash held
1,624,490
1,203,443
Cash at the beginning of the year
5,395,503
4,192,061
Cash at the end of the year
17a
7,019,993
5,395,503
The above Consolidated Statement of Cash Flows is to be read in conjunction with the Notes to the Consolidated Financial
Statements.
44
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
1. CORPORATE INFORMATION
The financial report of Galileo Mining Ltd for the year ended 30 June 2022 was authorised for issue in accordance
with a resolution of directors on 18 August 2022.
Galileo Mining Ltd is a company limited by shares incorporated in Australia whose shares are publicly traded on
the Australian Securities Exchange.
The address of the registered office is 13 Colin Street, West Perth WA 6005.
The Group’s principal activity during the year was mineral exploration. Major exploration activities during the
period are outlined in the Review of Operations as contained in the Directors’ Report.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of preparation
The financial report is a general purpose financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative
pronouncements of the Australian Accounting Standards Board. The financial report has also been prepared
on a historical cost basis.
For the purpose of preparing the consolidated financial statements, the Group is a for-profit entity.
The financial report is presented in Australian dollars and the accounting policies below have been
consistently applied to all of the years presented unless otherwise stated. The financial report is for the Group
consisting of Galileo Mining Ltd and its subsidiaries.
(b) Basis of consolidation
The consolidated financial statements comprise the financial statements of Galileo Mining Ltd (Galileo) and
its subsidiaries as at 30 June 2022 (the Group).
Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with
the investee and has the ability to affect those returns through its power over the investee. Specifically, the
Group controls an investee if and only if the Group has:
Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities
of the investee);
Exposure, or rights, to variable returns from its involvement with the investee; and
The ability to use its power over the investee to affect its returns.
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers
all relevant facts and circumstances in assessing whether it has power over an investee, including:
The contractual arrangement with the other vote holders of the investee:
Rights arising from other contractual arrangements; and
The Group’s voting rights and potential voting rights.
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there
are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the
Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets,
liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the
statement of comprehensive income from the date the Group gains control until the date the Group ceases
to control the subsidiary.
Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders
of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling
interests having a deficit balance. When necessary, adjustments are made to the financial statements of
subsidiaries to bring their accounting policies into line with the Group’s accounting policies. All intra-group
assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of
the Group are eliminated in full on consolidation.
45
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity
transaction. If the Group loses control over a subsidiary, it:
De-recognises the assets (including goodwill) and liabilities of the subsidiary
De-recognises the carrying amount of any non-controlling interests
De-recognises the cumulative translation differences recorded in equity
Recognises the fair value of the consideration received
Recognises the fair value of any investment retained
Recognises any surplus or deficit in profit or loss
Reclassifies the parent’s share of components previously recognised in OCI to profit or loss or retained
earnings, as appropriate, as would be required if the Group had directly disposed of the related assets
or liabilities
Business combinations are accounted for using the acquisition method.
(c) Compliance with IFRS
The financial report complies with Australian Accounting Standards, which include Australian equivalents to
International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report,
compromising the financial statements and notes thereto, complies with International Financial Reporting
Standards.
(d) New Accounting Standards and Interpretations
Standards and Interpretations applicable to 30 June 2022
In the period ended 30 June 2022, the Directors have reviewed all of the new and revised Standards and
Interpretations issued by the AASB that are relevant to the Group and effective for the current reporting
period. As a result of this review the Directors have determined that there is no material impact on the
Group’s accounting policies.
Standards and Interpretations in issue not yet adopted
The Directors have also reviewed all of the new and revised Standards and Interpretations in issue not yet
adopted as at 30 June 2022. As a result of this review the Directors have determined that there is no material
impact of the Standards and Interpretations in issue not yet adopted on the Group.
(e) Exploration and evaluation expenditure
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an
exploration and evaluation asset in the year in which they are incurred where the following conditions are
satisfied:
-
-
the rights to tenure of the area of interest are current; and
at least one of the following conditions is also met:
-
the exploration and evaluation expenditures are expected to be recouped through successful
development and exploration of the area of interest, or alternatively, by its sale; or
- exploration and evaluation activities in the area of interest have not at the balance date reached a
stage which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in, or in relation to, the area of interest
are continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore,
studies, exploratory drilling, trenching and sampling and associated activities and an allocation of
depreciation and amortisation of assets used in exploration and evaluation activities. General and
administrative costs are only included in the measurement of exploration and evaluation costs where they
are related directly to operational activities in a particular area of interest.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that
the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The
recoverable amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has
46
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
been allocated being no larger than the relevant area of interest) is estimated to determine the extent of the
impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset
is increased to the revised estimate of its recoverable amount, but only to the extent that the increased
carrying amount does not exceed the carrying amount that would have been determined had no impairment
loss been recognised for the asset in previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest, the
relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to
development.
(f) Plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.
Depreciation is calculated on a straight-line basis over the estimated useful life of the asset as follows:
Plant and equipment – 2 to 6 years
Impairment
The carrying values of plant and equipment are reviewed for impairment when events or changes in
circumstances indicate the carrying value may not be recoverable.
For an asset that does not generate largely independent cash inflows, the recoverable amount is determined
for the cash-generating unit to which the asset belongs, unless the asset’s value in use can be estimated to
be close to its fair value.
If any such indication exists and where the carrying values exceeds the estimated recoverable amount, the
assets or cash generating units are written down to their recoverable amount.
Disposal
An item of plant and equipment is derecognised upon disposal or when no further future economic benefits
are expected to arise from the continued use or disposal of the asset.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the item) is included in profit or loss in the period the item is
derecognised.
(g) Trade and other receivables
Trade receivables are measured on initial recognition at fair value and are subsequently measured at
amortised cost using the effective interest rate method, less any allowance for impairment. Trade receivables
are generally due for settlement within periods ranging from 0 days to 30 days.
The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime
expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based
on days overdue.
(h) Cash and cash equivalents
Cash and cash equivalents in the Statement of Financial Position comprise cash at bank and on hand and
short-term deposits with an original maturity of three months or less.
For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash
equivalents as defined above, net of outstanding bank overdrafts.
(i) Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.
Provisions are measured at the present value of management’s best estimate of the expenditure required to
settle the obligation at the balance date. If the effect of the time value of money is material, provisions are
47
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
discounted using a current pre-tax rate that reflect the time value of money and the risks specific to the
liability. The increase in the provision resulting from the passage of time is recognised in finance costs.
(j) Other Income
Interest income
Interest income is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through
the expected life of the financial asset to the net carrying amount of the financial asset.
Government grants
Grants that compensate the Group for expenses incurred are recognised as other income in the Statement
of Comprehensive Income on a systematic basis in the same periods in which the related expenses are
incurred.
(k)
Income tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to
be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount
are those that are enacted or substantively enacted by the balance date.
Deferred income tax is provided on all temporary differences at the balance date between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences:
except where the deferred income tax liability arises from the initial recognition of goodwill or of an asset
or liability in a transaction that is not a business combination and, at the time of the transaction, affects
neither the accounting profit or taxable profit or loss; or
in respect of taxable temporary differences associated with investments in subsidiaries, associates and
interest in joint ventures, except where the timing of the reversal of the temporary differences can be
controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused
tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, and the carry–forward of unused tax assets and unused tax losses
can be utilised:
except where the deferred income tax asset relating to the deductible temporary difference arises from
the initial recognition of an asset or liability in a transaction that is not a business combination and, at the
time of the transaction, affects neither the accounting profit nor taxable profit or loss; or
in respect of deductible temporary differences associated with investment in subsidiaries, associates and
interests in joint ventures, deferred tax assets are only recognised to the extent that it is probable that the
temporary differences will reverse in the foreseeable future and taxable profit will be available against
which the temporary differences can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the
deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to
the extent that it has become probable that future taxable profit will allow the deferred tax asset to be
recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted
or substantively enacted at the balance date.
48
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Income taxes relating to items recognised directly in equity are recognised in equity and not in the Statement
of Comprehensive Income.
Deferred tax assets and liabilities are offset only if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and
the same taxation authority.
(l) Other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
where the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of
the expense item as applicable; and
receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of the
receivables or payables in the Statement of Financial Position.
Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash
flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation
authority, are classified as operating cash flows.
(m) Trade and other payables
Trade payables and other payables are initially measured at fair value and subsequently carried at amortised
cost and represent liabilities for goods and services provided to the Group prior to the end of the financial
year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the
purchase of the goods and services.
Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts
are unsecured and are usually paid with 30 days of recognition.
(n) Employee Entitlements
Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled
wholly within 12 months after the end of the period in which the employees render the related service are
recognised in respect of employees services up to the end of the reporting period and are measured at the
amounts expected to be paid when the liabilities are settled.
Long Service Leave
The liability for long service leave is recognised and measured as the present value of expected future
payments to be made in respect of services provided by employees up to the reporting date. Consideration
is given to expected future wage and salary levels, experience of employee departures and periods of service.
Based on the Company’s experience of employee departures, a long service leave liability is only recognised
once an employee has been employed by the Company for a period of 5 years. Expected future payments
are discounted using market yields at the reporting date on national Government bonds with terms to
maturity and currencies that match, as closely as possible, the estimated future cash outflows.
(o) Contributed equity
Ordinary share capital is recognised at the fair value of the consideration received by the Group.
Any transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction
of the share proceeds received.
(p) Earnings/Loss per share (EPS)
Basic EPS is calculated as net profit or loss attributable to members, adjusted to exclude costs of servicing
equity (other than dividends), divided by the weighted average number of ordinary shares, adjusted for any
bonus element.
49
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Diluted EPS is calculated as net profit or loss attributable to members, adjusted for:
costs of servicing equity (other than dividends);
the after tax effect of dividend and interest associated with dilutive potential ordinary shares that have
been recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result from the
dilution of potential ordinary shares;
divided by the weighted average number or ordinary shares and dilutive potential ordinary shares, adjusted
for any bonus element.
(q) Share-based payment transactions
The Group provides benefits to employees (including directors and executives) of the Group and to third
parties in the form of share-based payment transactions, whereby employees and third parties render services
in exchange for shares or rights over shares (‘equity-settled transactions’).
The cost of these equity-settled transactions with employees is measured by reference to the fair value at the
date at which they are granted. The fair value is determined by using an appropriate option pricing model.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than
conditions linked to the price of the shares of Galileo Mining Ltd (‘market conditions’).
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over
the period in which the performance conditions are fulfilled, ending on the date on which the relevant
employees become fully entitled to the award (‘vesting date’).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date
reflects (i) the extent to which the vesting period has expired and (ii) the number of awards that, in the opinion
of the directors of the Company, will ultimately vest. This opinion is formed based on the best available
information at balance date. No adjustment is made for the likelihood of market performance conditions
being met as the effect of these conditions is included in the determination of fair value at grant date.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is
conditional upon a market condition.
Until an award has vested, any amounts recorded are contingent and will be adjusted if more or fewer awards
vest than were originally anticipated to do so. Any award subject to a market condition is considered to vest
irrespective of whether or not that market condition is fulfilled, provided that all other conditions are satisfied.
If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms
had not been modified. In addition, an expense is recognised for any modification that increases the total fair
value of the share-based payment arrangement, or is otherwise beneficial to the employee, as measured at
the date of modification.
If an equity-settled award is cancelled, other than forfeiture, it is treated as if it had vested on the date of
cancellation, and any expense not yet recognised for the award is recognised immediately. However, if a new
award is substituted for the cancelled award and designated as a replacement award on the date that it is
granted, the cancelled and new award are treated as if they were a modification of the original award, as
described in the previous paragraph.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation
of earnings/loss per share.
For equity-settled share-based payment transactions, the entity shall measure the goods or services received,
and the corresponding increase in equity, directly, at the fair value of the goods or services received, unless
that fair value cannot be estimated reliably, If the entity cannot estimate reliably the fair value of the goods
or services received, the entity shall measure their value, and the corresponding increase in equity, indirectly
by reference to the fair value of the equity instruments granted.
50
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
(r) Significant Accounting Judgements, Estimates and Assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates and
assumptions of future events. The key estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of certain assets and liabilities with the next annual reporting
period are:
(i) Capitalised exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number
of factors, including whether the Group decides to exploit the related lease itself or, if not, whether it
successfully recovers the related exploration and evaluation asset through sale.
Factors which could impact the future recoverability include the level of proved, probable and inferred
mineral resources, future technological changes which could impact the cost of mining, future legal
changes (including changes to environmental restoration obligations) and changes to commodity prices.
To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable
in the future, this will reduce profits and net assets in the period in which this determination is made.
In addition, exploration and evaluation expenditure, other than acquisition costs, is expensed as incurred.
Acquisition costs in relation to mineral tenements are capitalised and carried forward provided the rights
to tenure of the area of the interest are current and such costs are expected to be recouped through
successful development, or by sale, or where exploration and evaluation activities have not, at balance
date, reached a stage to allow a reasonable assessment regarding the existence of economically
recoverable reserves.
(ii) Share-based payment transactions
The consolidated entity measures the cost of equity-settled transactions with employees by reference to
the fair value of the equity instruments at the date at which they are granted. The fair value is determined
by using either the Trinomial or Black-Scholes model taking into account the terms and conditions upon
which the instruments were granted. The accounting estimates and assumptions relating to equity-
settled share-based payments would have no impact on the carrying amounts of assets and liabilities
within the next annual reporting period but may impact profit or loss and equity. Refer to note 20 further
information.
2022
$
18,517
-
3,172
21,689
2021
$
31,493
24,575
68,500
124,568
-
-
-
-
-
-
3. OTHER INCOME
Interest revenue
Research and development rebate
Other income
Total other income
4. INCOME TAX EXPENSE
a) Tax Expense
Current tax expense
Deferred tax expense
Total income tax expense
51
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
b) Numerical reconciliation between tax expense and pre-tax net
loss
Net Loss from operations before income tax expense
2022
$
2021
$
(1,190,216)
(688,244)
Corporate tax rate applicable
30%
30%
Income tax benefit on above at applicable corporate rate
(357,064)
(206,473)
Increase in income tax due to tax effect of:
Share based payments
Non-deductible expenses
Current year tax losses not recognised
Decrease in income tax expense due to:
Deductible capital raising costs
Non-assessable income
Income tax expense / (benefit)
Deferred tax assets and liabilities
-
10,002
443,279
(96,217)
-
-
-
-
291,638
(57,545)
(27,620)
-
c) Recognised deferred tax assets and liabilities
30%
30%
Deferred tax assets
Other provisions & accruals
Employee provisions
Tax losses
ROU Assets
Blackhole – Previously expensed
Set -off of deferred tax liabilities
Net deferred tax assets
Deferred tax liabilities
Exploration and evaluation assets
Unearned income
Prepayments
8,864
39,566
4,908,554
82
88
8,103
25,182
3,813,259
(763)
175
4,957,154
3,845,956
(4,957,154)
-
(3,845,956)
-
(4,956,522)
(632)
-
(3,845,648)
(308)
-
Gross deferred tax liabilities
(4,957,154)
(3,845,956)
Set-off of deferred tax assets
Net deferred tax liabilities
4,957,154
-
3,845,956
-
52
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
d) Unused tax losses and temporary differences for which no
deferred tax asset has been recognised
Deferred tax assets have not been recognised in respect of the
following using corporate tax rates of:
Deductible temporary difference
Tax Revenue Losses
2022
$
2021
$
30%
30%
181,254
1,727,514
84,113
1,284,362
Total Unrecognised deferred tax assets
1,908,768
1,368,475
The corporate tax rates on both recognised and unrecognised deferred tax assets and deferred tax liabilities have
been calculated with respect to the tax rate that is expected to apply in the year the deferred tax asset is realised
or the liability is settled.
5. LOSS PER SHARE
Loss per share (cents per share)
Basic loss per share for the year
Diluted loss per share for the year
The following reflects the loss used in the basic and diluted loss
per share computations.
(a) Loss used in calculating loss per share
2022
¢
(0.73)
(0.73)
2021
¢
(0.48)
(0.48)
2022
$
2021
$
For basic and diluted loss per share:
Net loss for the year attributable to ordinary shareholders of the
parent
(1,190,216)
(688,244)
As the Group generated losses for the financial years ended 30 June 2020 and 2021, all potential ordinary shares
on issue will not have a dilutionary effect and therefore no calculation of diluted earnings per share performed.
(b) Weighted average number of shares
For basic and diluted loss per share:
Weighted average number of ordinary shares
2022
Number
2021
Number
163,027,221
143,101,205
53
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
6. TRADE AND OTHER RECEIVABLES
(a) Current
Accrued interest
Net GST receivable
7. OTHER ASSETS
(a) Current
Cash deposited as security bond
Prepayments
(b) Non-current
Cash deposited for rental bond
8. PROPERTY, PLANT AND EQUIPMENT
At cost
Accumulated depreciation
Net carrying amount
Reconciliation
Reconciliation of the carrying amount of office furniture and
equipment at the beginning and end of the current financial year.
Office furniture and equipment
At 1 July net of accumulated depreciation
Depreciation charge for the year
At 30 June net of accumulated depreciation
Field equipment
At 1 July net of accumulated depreciation
Depreciation charge for the year
At 30 June net of accumulated depreciation
2022
$
2021
$
2,108
97,701
99,809
2,340
25,505
27,845
26,135
26,135
1,027
45,274
46,301
2,340
35,206
37,546
26,071
26,071
38,015
(36,963)
1,052
38,015
(33,466)
4,549
3,055
(2,124)
931
1,495
(1,374)
121
9,106
(6,051)
3,055
4,607
(3,112)
1,495
Total
1,052
4,549
54
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
9. RIGHT-OF-USE ASSETS
At cost
Accumulated depreciation
Net carrying amount
Reconciliation
Reconciliation of the carrying amount of right-of-use assets at the
beginning and end of the current financial year.
Right-of-use assets
At 1 July net of accumulated depreciation
Lease modification (see note 17(d))
Depreciation charge for the year
At 30 June net of accumulated depreciation
10. EXPLORATION AND EVALUATION EXPENDITURE
Costs carried forward in respect of:
Exploration and evaluation phase – at cost
Reconciliation
Opening balance
Acquisition of tenements
Incurred during the year
Written off during the year
Total exploration and evaluation expenditure
2022
$
2021
$
334,104
(222,621)
111,483
217,773
(155,910)
61,863
61,863
116,330
(66,710)
111,483
79,941
57,891
(75,969)
61,863
17,718,791
13,934,466
13,934,466
174,750
3,610,475
(900)
17,718,791
11,387,156
-
2,547,310
-
13,934,466
The ultimate recoupment of the Group’s deferred mining tenements and exploration expenditure carried forward
in respect of areas of interest still in the exploration and/or evaluation phases is dependent on successful
development and commercial exploitation or, alternatively, sale of the respective areas.
11. TRADE AND OTHER PAYABLES
Current
Trade creditors
Other creditors
2022
$
2021
$
360,870
50,977
411,847
81,190
43,409
124,599
Trade and other payables are non-interest bearing and are normally settled on 30-day terms. Due to the short-
term nature of these payables, their carrying value is assumed to approximate their fair value.
55
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
12. LEASE LIABILITIES
(a) Current
Lease Liabilities
(b) Non-current
Lease Liabilities
13. OTHER LIABILITIES
(a) Current
Annual Leave
(b) Non-current
Long Service Leave provision
14. ISSUED CAPITAL
(a) Ordinary shares
Movements of ordinary shares
2022
$
2021
$
56,707
59,320
55,049
-
85,804
54,025
46,082
29,915
28,864,590
22,929,035
Shares on issue
Beginning of financial year
Add shares issued
- Placement
- Part Payment of tenement purchase
- Options Exercised*
Less capital raising costs
2022
Number
2021
$
Number
$
143,101,205
22,929,035
143,101,205
22,929,035
25,000,000
308,000
10,399,055
-
6,500,000
80,080
-
(644,525)
-
-
-
-
-
-
-
-
As at the end of the financial year
178,808,260
28,864,590
143,101,205
22,929,035
* On 27 May 2022 12,500,000 options were exercised for 10,399,055 shares pursuant to a cashless exercise facility (Refer Note 20(a)).
(b) Terms & conditions of issued capital
Ordinary shares
Ordinary shares have the right to receive dividends as declared and, in the event of winding up the Company,
to participate in the proceeds from the sale of the surplus assets in proportion to the number of and amounts
paid up on shares held.
(c) Options
Unlisted options
The Company has the following unlisted options on issue at balance date:
- 2,500,000 options exercisable at $0.52 expiring on 15 September 2023.
Each option entitles the holder to subscribe (in cash) for one Share in the capital of the Company. Each Share
allotted as a result of the exercise of any Option will rank in all respect pari passu with the existing Shares in
56
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
the capital of the Company on issue at the date of allotment. Options not exercised shall automatically expire
on the expiry date.
Performance Rights
The Company has 1,600,000 rights on issue at balance date, expiring on 31 January 2023.
Performance Rights were issued free of charge. Each Performance Right entitles the holder to subscribe for one
(1) fully paid ordinary share in the Company based on achieving vesting conditions at a nil exercise price. The
terms and conditions including the service and performance criteria that must be met are as follows: -
(a) Subject to the below paragraphs (b) to (d), each Performance Right will only vest and become exercisable
when the 10-day volume weighted average market price (as defined in the ASX Listing Rules) of the
Company’s quoted Shares first exceeds $1.00 per Share (Vesting Condition).
(b) Maintain a minimum of either 6 or 12 months continuous service with the Company.
(c)
Each Performance Right will automatically be cancelled and will be redeemed by the Company for nil
consideration if employment with the Company is terminated for any reason before the Vesting Condition
is met.
If a Good Leaver* and the Vesting Condition has been satisfied at the date of termination the Performance
Rights may be exercised within 20 Business Days of termination of employment or contracting (as
applicable) with the Company. If a Bad Leaver* and the Vesting Condition has been satisfied at the date
of termination the Performance Rights will terminate.
(d)
*As defined in the Galileo Mining Ltd Employee Incentive Plan refer to:
http://www.galileomining.com.au/about-us/corporate-governance/
Each Performance Right, issued for nil consideration, entitles the participant to acquire one (1) fully paid ordinary
share, by way of issue of new Shares or transfer of existing Shares.
All Performance Rights that have not vested by the expiry date will automatically lapse and be forfeited.
15. RESERVES
Share-based payment reserve
2022
$
2021
$
936,417
903,076
Movement in share-based payment reserve
Balance at the beginning of the financial year
Share-based payments during the year
Transfer of previously expensed options on exercise to accumulated
losses
Reversal of cancelled options
Reversal of cancelled performance rights
903,076
393,376
(332,500)
-
(27,535)
920,568
94,330
-
(66,500)
(45,322)
Balance at the end of the financial year
936,417
903,076
Share-based payment reserve records the value of shares, share options and performance rights issued to
Galileo’s employees or others. Refer to Note 20 for further details.
57
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
16. ACCUMULATED LOSSES
Accumulated losses
Movement in accumulated losses:
Balance at the beginning of the financial year
Transfer from share-based payment reserve
Net loss for the year
2022
$
2021
$
(5,451,387)
(4,593,671)
(4,593,671)
332,500
(1,190,216)
(3,905,427)
-
(688,244)
Balance at the end of the financial year
(5,451,387)
(4,593,671)
17. STATEMENT OF CASH FLOWS
(a) Reconciliation of cash
Cash at bank and on hand
Short term deposits
627,570
6,392,423
33,665
5,361,838
Total cash and cash equivalents
7,019,993
5,395,503
(b) Reconciliation of net loss after tax to net
cash flows from operations:
Loss from ordinary activities after income tax
(1,190,216)
(688,244)
Adjustments for:
Depreciation
Employee share-based payment/(reversal)
Changes in assets and liabilities:
Increase in payables
Increase in provisions
(Increase)/Decrease in receivables
(Increase)/Decrease in prepayments
70,208
74,170
85,133
(17,492)
5,663
47,946
(53,509)
9,700
7,324
5,831
58,055
(5,214)
Net cash used in operating activities
(1,036,038)
(544,607)
(c) Changes in liabilities arising from financing activities
Opening balance
Net cash used in financing activities
Lease liability recognised on modification of lease
2022
$
59,320
(63,894)
116,330
2021
$
83,187
(81,759)
56,892
Closing balance
111,756
59,320
58
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
(d) Non-cash financing & investing activities:
Non-cash financing activities for the year include the office lease extension of 24 months commencing June
2022 at an initial value of $116,330 (2021: $57,892).
During the year the Company issued 2,500,000 unlisted options exercisable at $0.52 and expiring 15
September 2023 to Inyati Capital as part payment for capital raised at a value of $291,645. 308,000 ordinary
shares in the Company were issued as part payment of a tenement purchase. There were no non-cash
investing activities in 2021.
18. RELATED PARTY TRANSACTIONS
1)
Whypro Corporate Services a business of which Mathew Whyte is principal, provided company
secretarial, corporate administration and CFO services to the Company totalling $105,000 (excluding
GST) (30 June 2021: $102,000). As at 30 June 2022, $12,650 was payable to Whypro Corporate Services.
19. DIRECTORS AND KEY MANAGEMENT PERSONNEL
Compensation for Executive Directors and Key Management Personnel
Short-term benefits
Long-term benefits
Post-employment benefits
Share-based payments
2022
$
582,665
8,867
45,954
40,793
2021
$
544,250
5,928
38,250
(36,187)
Total compensation
678,279
552,241
20. SHARE-BASED PAYMENTS
(a) Options
During the year the following options were granted to a third party, Inyati Capital, as part payment for capital
raised. A total of $291,645 was recognised as a share-based payment.
Class
Expiry date
Exercise
price
Date
granted
Number
of options
Grant date
fair value
Vesting date
Unlisted
Options
15 Sept 2023
$0.52
15 Sept 2021
2,500,000
$0.117
15 Sept 2021
The assessed fair value of the options was determined using Black-Scholes model, taking into account the
exercise price, term of option, the share price at grant date and expected price volatility of the underlying
share, expected dividend yield and the risk-free interest rate for the term of the option. The following
assumptions were used in the estimation:
- Risk free interest rate of 1.05%
- Company share price at date of grant of $0.325
- Dividend Yield of 0%
- Expected volatility of 90%
- Option exercise price of $0.52
- Option duration of 24 months
- Discount factor of 0%
On 27 May 2022 12,500,000 options were exercised for 10,399,055 shares pursuant to a cashless exercise
facility.
59
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
The following table illustrates the number and weighted average exercise prices (WAEP) and movements in
share options during the year.
2022
2022
WAEP
Number
Outstanding at the beginning of the year
14,772,727
Granted during the year
Exercised during the year
Expired or Cancelled during the year
Outstanding at the end of the year
2,500,000
(12,500,000)
(2,272,727)
2,500,000
$
0.24
0.52
0.20
0.44
0.52
2021
Number
17,272,727
-
-
(2,500,000)
14,772,727
2021
WAEP
$
0.23
-
-
0.20
0.24
Exercisable at reporting date
2,500,000
0.52
2,272,727
0.44
(b) Performance Rights
During the year the following performance rights were granted to employees under the Company’s Employee
Incentive Plan. A total of $16,341 was recognised as a share-based payment expense, in relation to rights
granted during the period.
Class
Expiry
date
Exercise
price
Date
granted
Number
Grant
date fair
value
Expected Vesting
date
Performance
Rights
Performance
Rights
31 January
2023
31 January
2023
Nil
Nil
5 August 2021
100,000
$0.0524
31 January 2023
25 November
2021
500,000
$0.0524
31 January 2023
Performance Rights were issued free of charge. Each Performance Right entitles the holder to subscribe for one
(1) fully paid ordinary share in the Company based on achieving vesting conditions at a nil exercise price.
The terms and conditions including the service and performance criteria that must be met are as follows: -
(a)
Subject to the below paragraphs (b) to (d), each Performance Right will only vest and become exercisable
when the 10-day volume weighted average market price (as defined in the ASX Listing Rules) of the
Company’s quoted Shares first exceeds $1.00 per Share (Vesting Condition).
(b) Maintain a minimum of either 6 or 12 months continuous service with the Company.
(c)
Each Performance Right will automatically be cancelled and will be redeemed by the Company for nil
consideration if employment with the Company is terminated for any reason before the Vesting Condition
is met.
If a Good Leaver* and the Vesting Condition has been satisfied at the date of termination the Performance
Rights may be exercised within 20 Business Days of termination of employment or contracting (as
applicable) with the Company. If a Bad Leaver* and the Vesting Condition has been satisfied at the date
of termination the Performance Rights will terminate.
(d)
*As defined in the Galileo Mining Ltd Employee Incentive Plan
Each Performance Right, issued for nil consideration, entitles the participant to acquire one (1) fully paid ordinary
share, by way of issue of new Shares or transfer of existing Shares.
All Performance Rights that have not vested by the expiry date will automatically lapse and be forfeited.
60
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
The performance rights have been valued at $0.0524 per right using the Hoadley trinomal barrier valuation
model.
On 23 July 2021 100,000 unlisted performance rights were cancelled which resulted in a reversal of $27,535.
The total expense recognised in relation to performance rights inclusive of reversals was $74,170.
Movement of Performance Rights:
Outstanding at beginning of the year
Granted during the year
Cancelled during the year
2022
Number
1,100,000
600,000
(100,000)
2021
Number
1,600,000
-
(500,000)
Outstanding at the end of the year
1,600,000
1,100,000
21. AUDITOR’S REMUNERATION
The auditor of Galileo Mining Ltd is
HLB Mann Judd
Amounts received or due and receivable by the auditors for:
- Auditing or reviewing accounts
- Other assurance services
The auditors received no other benefits.
22. EXPENDITURE COMMITMENTS
(a) Exploration expenditure commitments
2022
$
2021
$
30,403
500
30,903
29,509
-
29,509
The Group has certain obligations to perform minimum exploration work and to expend minimum amounts
of money on such work on mining tenements. These obligations may be varied from time to time subject
to approval and are expected to be fulfilled in the normal course of the operations of the Group. These
commitments have not been provided for in the financial report. Due to the nature of the Group’s
operations in exploring and evaluating areas of interest, it is difficult to accurately forecast the nature and
amount of future expenditure beyond the next year. Expenditure may be reduced by seeking exemption
from individual commitments, by relinquishing of tenure or by new joint venture arrangements. Expenditure
may be increased when new tenements are granted or joint venture agreements amended. The minimum
expenditure commitment on the tenements is shown below.
Not later than one year
Later than one year and less than five years
61
2022
$
2021
$
941,080
3,963,320
863,080
3,772,320
4,904,400
4,635,400
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
23. FINANCIAL RISK MANAGEMENT
The Group’s principal financial instruments comprise cash and short-term deposits.
The Group has various other financial assets and liabilities such as trade receivables, and trade payables, which
arise directly from its operations and other activities.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the
basis of measurement and the basis on which income and expenses are recognised, in respect of each class of
financial asset, financial liability and equity instrument are disclosed in Notes 2, 6, 11 and 13 to the financial
statements.
The Group manages its exposure to a variety of financial risks: market risk (interest rate risk), credit risk and
liquidity risk in accordance with specific approved Group policies.
Primary responsibility for the identification and control of financial risks rests with the Board. The Board reviews
and agrees policies for managing each of the risks identified.
The Group uses different methods to measure and manage different types of risks to which it is exposed. These
include monitoring levels of exposure to interest rate risk and assessment of market forecast for interest rate.
The Group manages credit risk by only dealing with recognized, creditworthy, third parties and liquidity risk is
monitored through the development of future rolling cash flow forecasts.
Interest rate risk
The Group’s current exposure to the risk of changes in market interest rates relate primarily to cash assets rates
and is managed by the Board approved investment policy. This policy defines maximum exposures and credit
ratings limits.
The following table summarises the impact of reasonably possible changes on interest rates for the Group at
30 June 2021. The sensitivity is based on the assumption that interest rate changes by 100 basis points with all
other variables held constant. The 100 basis points sensitivity is based on reasonably possible changes over a
financial year, using the observed range of actual historical rates for the preceding 3 year period. The analysis
is performed on the same basis for the comparative period.
The Group’s exposure to interest rate risk arises from higher or lower interest income from cash and cash
equivalents. The Parent’s main interest rate risk arises from cash and cash equivalents and other assets with
variable interest rates.
Financial assets
Cash and cash equivalents
Impact on profit/loss and equity
Post-tax gain/(loss)
100 bp increase
100 bp decrease
30 June 2022
$
30 June 2021
$
7,019,993
5,395,503
70,199
(70,199)
53,955
(53,955)
62
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Credit risk
Credit risk arises in the event that counterparty will not meet its obligations under a financial instrument leading
to financial losses. The Group is exposed to credit risk from its operating activities and financing activities
including deposits with banks.
The credit risk control procedures adopted by the Group is to assess the credit quality of the institution with
whom funds are deposited or invested, taking into account its financial position and past experiences.
Investment limits are set in accordance with limits set by the Board of Directors based on the counterparty
credit rating. The limits are assigned to minimise concentration of risks and mitigate financial loss through
potential counterparty failure. The compliance with credit limits is regularly monitored as part of day-to-day
operations. Any credit concerns are highlighted to senior management.
Credit quality of financial assets:
30 June 2022
S&P Credit rating
AAA
A1+
A1
A2
Unrated
Cash & cash equivalents ($)
Other Assets ($)
-
-
7,019,993
28,476
-
-
-
-
-
-
S&P Credit rating
AAA
A1+
A1
A2
Unrated
30 June 2021
Cash & cash equivalents ($)
Other Assets ($)
-
-
5,395,503
28,411
-
-
-
-
-
-
Alternatives for sourcing our future capital needs include the Group’s current cash position, future operating
cash flow, project debt financings and equity raisings. These alternatives are evaluated to determine the optimal
mix of capital resources for the Group’s capital needs.
Liquidity risk
The responsibility for liquidity risk management rests with the Board of Directors.
The Group manages liquidity risk by maintaining sufficient cash or credit facilities to meet the operating
requirements of the business and investing excess funds in highly liquid short term investments. The Group’s
liquidity needs can be met through a variety of sources, including: short and long term borrowings and issue
of equity instruments.
The following table details the Group’s non-derivative financial instruments according to their contractual
maturities. The amounts disclosed are based on contractual undiscounted cash flows.
Less than 6
$
6 months – 12
$
1-2 years
$
> 2 years
$
As at 30 June 2022
Trade and other receivables
Trade and other payables
Lease liabilities
As at 30 June 2021
Trade and other receivables
Trade and other payables
Lease liabilities
2,108
(411,847)
(30,935)
1,027
(124,599)
(33,335)
63
-
-
-
-
(30,987)
(62,179)
-
-
(33,391)
-
-
-
-
-
-
-
-
-
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Capital risk management
Capital consists of total equity $24,349,620 (2021: $19,238,440).
When managing capital, management’s objective is to ensure the Company continues as a going concern as
well as to maintain optimal returns to shareholders and benefits for other stakeholders. Management also aims
to maintain a capital structure that ensures the lowest cost of capital available to the entity.
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, issue new shares, enter into joint ventures or sell assets.
The entity does not have a defined share buy-back plan.
No dividends were paid in 2021 and no dividend will be paid in 2022.
There is no current intention to incur debt funding on behalf of the Company as on-going exploration
expenditure will be funded via equity or joint ventures with other companies.
The Company is not subject to any externally imposed capital requirements.
24. EVENTS SUBSEQUENT TO BALANCE DATE
Subsequent to balance date the Company completed a capital raising (refer ASX announcements 6 and 14 July
2022) to raise $20.4 million (before costs) by way of a placement to institutions and sophisticated investors
(“Placement”). Settlement of the placement occurred on 14 July 2022 when the Company issued 17,000,000 at
an issue price of $1.20 per share. As part of the fee for the lead manager to the Placement the Company also
issued on 14 July 974,615 unquoted Options with an exercise price of $2.40 and an expiry date of 14 July 2022.
On 14 July 2022 the Company announced 1,600,000 fully paid ordinary shares were issued in full satisfaction
of the exercise of 1,600,000 Performance Rights issued in accordance with the terms and conditions of the
Galileo Mining Ltd Employee Incentive Plan.
Other than the above, no other matters or circumstances have occurred subsequent to balance date that have
or may significantly affect the operations or state of affairs of the Group in subsequent financial years.
25. EXPLORATION AGREEMENTS
Dunstan JV Agreement
On 22 January 2018, Mark Creasy and Dunstan Holdings Pty Ltd (ACN 009 686 691) (“Dunstan”) entered into
an agreement with the Company’s wholly owned subsidiary, FSZ Resources Pty Ltd (ACN 622 898 882) (“FSZ”)
(“Dunstan JV Agreement”). Mark Creasy was a director of the Company from 18 March 2003 to 12 March 2018.
The Dunstan JV Agreement provides for three phases of collaboration on the exploration and mining of
Dunstan’s mining tenements E63/1539, E63/1623 and E63/2624 (“Dunstan Tenements”). First, the Dunstan JV
Agreement provided for the partial sale of Dunstan’s interest in the Dunstan Tenements to FSZ (“Tenement
Sale”), which was settled during the financial year ended 30 June 2018 by a payment of $530,000 to Dunstan
(of which $478,955 (plus GST) was paid in cash and $51,045 settled by the issue of 510,455 fully paid ordinary
shares at a deemed issue price of $0.10 per share). Second, the Dunstan JV Agreement established an
unincorporated joint venture between Dunstan and FSZ for the exploration of the Dunstan Tenements and
completion of a bankable feasibility study in respect of all or part of the Dunstan Tenements (“Exploration Joint
Venture”). Third, the Dunstan JV Agreement regulates the manner in which the parties may determine their
respective involvement in any mining operations to implement a bankable feasibility study on all or part of the
Dunstan Tenements (“Mining Joint Venture”).
64
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
GSN JV Agreement
On 22 January 2018, Mark Creasy and Great Southern Nickel Pty Ltd (ACN 135 382 142) (“GSN”) entered into
an agreement with the Company’s wholly owned subsidiary, NSZ Resources Pty Ltd (ACN 622 900 396) (“NSZ”)
(“GSN JV Agreement”). Mark Creasy was a director of the Company from 18 March 2003 to 12 March 2018.
The GSN JV Agreement provides for three phases of collaboration on the exploration and mining on GSN’s
mining tenement E28/2064 (“GSN Tenement”). First, the GSN JV Agreement provided for the partial sale of
GSN’s interest in the GSN Tenement to NSZ (“Tenement Sale”), which was settled during the financial year
ended 30 June 2018 by a payment of $870,000 to GSN. Second, the GSN JV Agreement established an
unincorporated joint venture between GSN and NSZ for the exploration of the GSN Tenement and completion
of a bankable feasibility study in respect of all or part of the GSN Tenement (“Exploration Joint Venture”). Third,
the GSN JV Agreement regulates the manner in which the parties may determine their respective involvement
in any mining operations to implement a bankable feasibility study on all or part of the GSN Tenement (“Mining
Joint Venture”).
26. SEGMENT INFORMATION
For management purposes, the Group is organised into one main business and geographic segment, which
involves exploration of mineral deposits. All of the Group’s activities are interrelated, and discrete financial
information is reported to the Board (Chief Operating Decision Makers) as a single segment. Accordingly, all
significant operating decisions are based upon analysis of the Group as one segment. The financial results from
the segment are equivalent to the financial statement of the Group as a whole. The accounting policies used
by the Group in reporting segment internally are the same as those contained in Note 2 to the consolidated
financial statements.
27. CONTROLLED ENTITIES
Name
Country of
Incorporation
Principal Activity
FSZ Resources Pty Ltd
NSZ Resources Pty Ltd
Norseman Resources Pty Ltd
Ganymede Resources Pty Ltd *
* Subsidiary incorporated 4 December 2020.
Australia
Australia
Australia
Australia
Mineral exploration
Mineral exploration
Mineral exploration
Mineral exploration
Beneficial Percentage
Interest Held By Group
2022
%
100
100
100
100
2021
%
100
100
100
100
65
GALILEO MINING LTD
ABN 70 104 114 132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
28. PARENT ENTITY INFORMATION
Information relating to Galileo Mining Ltd
The immediate parent and ultimate controlling party of the Group is Galileo Mining Ltd. Interests in subsidiaries
are set out in Note 27.
Current Assets
Non-Current Assets
TOTAL ASSETS
Current Liabilities
Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Loss of the parent entity
Total comprehensive loss of the parent
entity
2022
$
7,142,830
17,983,160
25,125,990
554,357
101,131
655,488
2021
$
5,474,534
14,115,279
19,589,813
237,944
29,915
267,859
24,470,502
19,321,954
28,864,590
936,417
(5,330,505)
24,470,502
(1,152,848)
(1,152,848)
22,929,035
903,076
(4,510,157)
19,321,954
(658,771)
(658,771)
The parent entity did not have any guarantees or contingent liabilities at balance date.
The accounting policies of the parent entity are consistent with those of the Group as disclosed in Note 2,
except for investment in subsidiaries, which are accounted for at cost.
29. GUARANTEES AND CONTINGENT LIABILITIES
The Group did not have any guarantees or contingent liabilities at balance date.
30. FINANCIAL INSTRUMENTS
The fair value of financial assets and financial liabilities approximates the carrying amount at balance date.
66
GALILEO MINING LTD
ABN 70 104 114 132
DIRECTORS’ DECLARATION
FOR THE YEAR ENDED 30 JUNE 2022
In accordance with a resolution of the directors of Galileo Mining Ltd, we state that:
In the opinion of the directors:
(a) the financial statements and notes of the Group in pages 41 to 66 are in accordance with the Corporations Act
2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its performance for
the year ended on that date; and
(ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and
Corporations Regulations 2001;
(b) the financial statements and notes also comply with International Financial Reporting Standards as disclosed
in Note 2 (c); and
(c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
This declaration has been made after receiving the declarations required to be made to the directors in accordance
with Section 295A of the Corporations Act for the year ended 30 June 2022.
For and on behalf of the Board of Directors.
Mr Brad Underwood
Managing Director
Perth, 18 August 2022
67
INDEPENDENT AUDITOR’S REPORT
To the Members of Galileo Mining Ltd
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Galileo Mining Ltd (“the Company”) and its controlled entities
(“the Group”), which comprises the consolidated statement of financial position as at 30 June 2022,
the consolidated statement of comprehensive income, the consolidated statement of changes in equity
and the consolidated statement of cash flows for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
(a) giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its financial
performance for the year then ended; 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 Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (“the Code”) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
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. We have determined the matters described below to be the key
audit matters to be communicated in our report.
68
Key Audit Matter
How our audit addressed the key audit
matter
Exploration and evaluation expenditure
Note 10 to the financial report
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources, the Group capitalises
exploration and evaluation expenditure.
Our audit focussed on the Group’s assessment of the
carrying amount of the capitalised exploration and
evaluation expenditure asset, due to this asset being
the most significant asset of the Group.
Our procedures included but were not
limited to the following:
• We obtained an understanding of the
key processes associated with
management’s review of the carrying
value of the capitalised exploration
and evaluation expenditure asset;
• We
considered
the Directors’
assessment of potential indicators of
impairment;
• We obtained evidence that the Group
has current rights to tenure of its areas
of interest;
• We examined the exploration and
evaluation budget for the year ending
30 June 2023 and discussed with
management the nature of planned
ongoing activities; and
• We substantiated a sample of
capitalised expenditure to underlying
support.
Information Other than the Financial Report and Auditor’s Report Thereon
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 2022, 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 Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
69
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 Australian Auditing Standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
−
Identify and assess the risks of material misstatement of the financial report, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
− Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
− Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
− Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial report or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions may cause the Group to cease to
continue as a going concern.
− Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in
a manner that achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
70
REPORT ON THE REMUNERATION REPORT
Opinion on the Remuneration Report
We have audited the Remuneration Report included the directors’ report for the year ended 30 June
2022.
In our opinion, the Remuneration Report of Galileo Mining Ltd for the year ended 30 June 2022
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express
an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian
Auditing Standards.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
18 August 2022
D I Buckley
Partner
71
GALILEO MINING LTD
ABN 70 104 114 132
CORPORATE GOVERNANCE STATEMENT
The Board is committed to achieving and demonstrating the highest standards of corporate governance. As such
Galileo Mining Ltd has adopted the fourth edition of the Corporate Governance Principles and Recommendations
which was released by the ASX Corporate Governance Council and became effective for financial years beginning on
or after 1 July 2020.
The Company’s Corporate Governance Statement for the financial year ending 30 June 2022 was approved by the
Board on 18 August 2022. The Corporate Governance Statement can be located on the Company’s website
http://www.galileomining.com.au/about-us/corporate-governance/
72
GALILEO MINING LTD
ABN 70 104 114 132
ADDITIONAL ASX SHAREHOLDERS’ INFORMATION (As at 7 August 2022)
The following additional information is required by the Australian Securities Exchange in respect of listed public
companies. As at 7 August 2022 there were 5,143 holders of Ordinary Fully Paid Shares.
VOTING RIGHTS
The voting rights attached to each class of equity security are as follows:
Ordinary shares: Each ordinary share is entitled to one vote when a poll is called, otherwise each member
present at a meeting or by proxy has one vote on a show of hands.
Unlisted Options and Performance Rights: Options and performance rights do not entitle the holders to
vote in respect of that equity instrument, nor participate in dividends, when declared, until such time as the
options are exercised or performance rights convert and subsequently registered as ordinary shares.
20 LARGEST SHAREHOLDERS – ORDINARY SHARES AS AT 7 AUGUST 2022
Holder Name
Holding %IC
Australian Gold Resources Pty Ltd
IGO Newsearch Pty Ltd
S3 Consortium Holdings Pty Ltd
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