ABN 91 124 752 745
ANNUAL REPORT 2024
Mt Coolon Gold Project – A$25 million farm-in with Newmont. Maiden diamond drill hole at Glen
Eva deposit underway May 2024.
CORPORATE DIRECTORY
GBM Resources Limited (GBM or the Company)
Directors
Guan Huat Sunny Loh
Non -Executive Chairman
Peter Rohner
Managing Director
Peter Thompson
Non -Executive Director
Company Secretary
Kevin Hart
Dan Travers
Registered Office & Principal
Place of Business
Level 1, Suite 102
303 Coronation Drive
Milton QLD 4064
Telephone: +61 493 239 674
Website
www.gbmr.com.au
Email
Auditor
HLB Mann Judd
Level 4, 130 Stirling Street
Perth WA 6000
Australia
Share Registry
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth WA 6000
Australia
Telephone: +61 8 9323 2000
Securities Exchange Listing
GBM Resources Limited – shares are listed on
the Australia Securities Exchange
(ASX Code: GBZ)
Solicitors
Steinepreis Paganin – Lawyers and
Consultants
Level 14, QV1 Building
250 St George Terrace
Perth WA 6000
Australia
reception@gbmex.com.au
Corporate Governance
A summary statement reporting against the 4th
Edition
of
the
ASX
Corporate
Governance
Recommendations which has been approved by the
Board together with current policies and charters is
available
on
the
Company
website
at
https://www.gbmr.com.au/about/corporate-
governance/
CONTENTS
Page
1.
Chairman’s Report
4
2.
Growth Strategy and Corporate Values
5 - 6
3.
Delivering on Growth Strategy
7 - 10
4.
Projects – Drummond Basin QLD
11 - 39
5.
Projects – Other
40 - 43
6.
Annual Mineral Resource Statement
44 - 48
8.
Sustainable Development
49 - 52
6.
Tenement Schedule
53
9.
Directors’ Report
54 - 64
10.
Auditor’s Independence Declaration
65
11.
Consolidated Statement of Profit or Loss and Other Comprehensive Income
66
12.
Consolidated Statement of Financial Position
67
13.
Consolidated Statement of Changes in Equity
68
14.
Consolidated Statement of Cash Flows
69
15.
Notes to the Financial Statements
70 - 106
16.
Consolidated Entity Disclosure Statement
107
17.
Directors’ Declaration
108
18.
Independent Auditor’s Report
109 - 113
19.
ASX Additional Information
114 - 115
Competent Persons Statement
The Company confirms that it is not aware of any new information or data that materially affects the
information included in the respective announcements and all material assumptions and technical parameters
underpinning the resource estimates within those announcements continue to apply and have not materially
changed.
The Company confirms that the form and context in which the Competent Persons findings are presented have
not been materially modified from the original market announcements.
GBM Resources Annual Report 2024
Page | 4
CHAIRMAN’S REPORT
Dear Fellow Shareholders,
It is my pleasure to present the GBM Resources Annual Report for 2024.
The past year our focus has been on exploring and developing our gold assets in the pre-eminent
Epithermal Region of the Drummond Basin in Queensland. The field activities greatly consolidated
the extensive geological information which further identified high potential prospects and advanced
the geological models and mineralising systems across Twin Hills and Yandan Gold Projects
The Company currently holds ~4,700 km2 of mining and exploration tenure across 23 granted EPM’s
and 7 mining leases within the Drummond Basin. This includes granted mining leases Twin Hills,
Yadan and Mt Coolon.
During the year the Company has been active in reviewing funding options to underwrite its growth
strategy in the Drummond Basin.
As part of this process the Board was pleased to announce on 18 October 2024 that it executed a $12
million Farm-in Agreement at Twin Hills with Wise Walkers Limited (Wise Walkers). Wise Walkers
can earn up to 70% in Twin Hills for a cash payment of $6 million, additional exploration expenditure
of $6 million over 18 months and the Company will retain its 30% interest free carried to a decision
to mine, (refer ASX:GBZ release 18 October 2024 for full details).
The potential Earn-in Funds on projects (Mt Coolon and Twin Hills) now total $37 million and may
substantially increase with the free carried to a decision to mine on Twin Hills.
The Company expects to be drilling at Twin Hills early in 2025 under the Farm-in with Wise Walkers,
plus completing some initial drilling at Yandan, targeting north of the known mineralisation bound
by Yandan Main and East Hill.
Recently Newmont have completed its maiden drilling program at the Mt Coolon project ($25 million
farm-In) which included two diamond holes for 1,040 m and ~ 7,000 m of air core drilling which is
underway testing multiple targets. Results are expected late in this December quarter.
The Company’s strategy of divestment of non-core assets continued with the conditional sale of
White Dam for $2.95 million plus a 1.5% royalty bring the value to date from divestment strategy to
~ $12.4 million (includes White dam). The funds generated gives support to the Company’s working
capital requirements and partial redemption of the convertible note facility.
On behalf of our Board, I would like to take the opportunity to say thank you to our shareholder base
and your continued support for our growth strategy.
I would also like to thank our farm-in and joint venture partners, employees and contractors for their
hard work and commitment over the past year and importantly achieving our core values in a safe
and responsible manner. Your efforts in contributing to the growth strategy are a key input to the
Company’s success.
Yours Faithfully,
Sunny Loh
Non-Executive Chairman
GBM Resources Annual Report 2024
Page | 5
GROWTH STRATEGY AND CORPORATE VALUES
OUR STRATEGY
Aggressively assembling, exploring and developing a portfolio of worldclass high
grade gold assets in the Premier Epithermal Region of the Drummond Basin.
Via strategic acquisitions, farm-in and significant exploration work to expand the
gold resource, targeting > 3 million ounces. GBM continues to lay the foundation to
become a true mid-tier Australian gold producer.
GBM divestments of its non-core assets strategy continues in which proceeds further
support its working capital requirements.
Figure 1: Location of the Drummond Basin Gold Assets. The figure also includes the location of non
-core asset divestments being Mt Morgan, Cloncurry Farm-in JV and White Dam Gold Copper
Project.
GBM Resources Annual Report 2024
Page | 6
GROWTH STRATEGY AND CORPORATE VALUES
OUR VALUES
We are committed to achieving our vision in a safe and responsible manner with the
highest regard for the environment and communities in which we operate. The
Board endorses the core values of GBM as summarised below.
SAFETY
We take care of our safety, health and wellness by recognising, assessing and managing risk to
continue our goal of zero harm.
SUSTAINABILITY
We have the highest regard and support for the environment and local communities in which we
operate.
INTEGRITY
We behave ethically and respect each other and the customs, cultures and laws in which we operate.
RESPONSIBILITY
We deliver on our commitments and work together with all stakeholders.
Figure 2: Yandan Gold Project - Ground water bore monitoring and water sampling at various
depths in the open cut mine completed during the year, as part of the environmental water
quality management requirements.
GBM Resources Annual Report 2024
Page | 7
DELIVERING ON GROWTH STRATEGY
2020-2022 Drummond Basin
Successful
▪ In securing a dominant tenement position in the Drummond Basin;
▪ In securing a large prospective tenement package surrounding key resources; and
▪ Achieving the acquisition of the Yandan and the Twin Hills Gold Projects.
Figure 3: GBM holds 4,667 km2 of mining and exploration tenure across 23 granted EPMs and 7
Mining Leases within the Drummond Basin, Australia’s pre-eminent epithermal gold terrain.
This includes granted mining leases at Twin Hills, Yandan, and Mt Coolon.
GBM Resources Annual Report 2024
Page | 8
DELIVERING ON GROWTH STRATEGY
2022-2023 Drummond Basin
Successfully increased, by sixfold, the total mineral resources in the Drummond Basin,
upgrading confidence and the geological understanding of the various mineralising systems.
The Drummond Basin “Processing Hub” now totals – 45.6 million tonnes at 1.26 g/t Au for
1,844,200 ounces with over a million ounces now classified as Indicated Mineral Resource.
Refer to Figure 3 above for summary of the resources on the projects
Figure 4: The Bar Chart demonstrates that the Total Mineral Resource has increased from a base of
330k Au ounces to 1.84 million Au ounces over a 3 year period with over half (+1 million ounces)
now classified as an Measured and Indicated Mineral Resource.
GBM Resources Annual Report 2024
Page | 9
DELIVERING ON GROWTH STRATEGY
2023-2024 Drummond Basin
JV FUNDING SECURED
Potential Earn-in Funds on Projects Total ~ $52-$62 million. This Significantly
Underwrites the Company’s Future Growth Strategy.
Mt Coolon Gold Project (A$25m)
The Company in FY23 entered into a farm-in agreement with (now) Newmont relating to the Mt
Coolon Gold Project tenements.
Newmont has the right to acquire up to a 75% interest in the Mount Coolon Project tenements
by spending up to A$25m and completing a series of exploration milestones in a 3 stage farm-in
over six years. Newmont are currently completing an air core drilling program of ~7,000 m
testing a number of targets. Total expenditure for the farm-in to date (30 June 24) totals ~ $8.9m.
Twin Hills Gold Project ($12m + free carried to decision to mine, estimated range
~$15-$25m)
The Company on 15 July 2024 executed a binding Heads of Agreement with Wise Walkers
Limited (WWL) to earn up to a 70% joint venture interest in Twin Hills Gold Project (Twin Hills).
Key Terms:
▪
WWL to earn up to a 70% joint venture interest in the Twin Hills.
▪
GBM to receive a total of A$6 million in cash consideration and WWL to sole fund further
exploration of A$6 million over an 18-month period to earn a 70% interest.
▪
GBM to retain a 30% interest free carried to a decision to mine.
▪
The parties have finalised the full form Farm-in and Joint Venture Agreement. (Refer to
the schedule of key terms of the agreement in ASX:GBZ releases 15 July 2024 and 21
October 2024.)
GBM Resources Annual Report 2024
Page | 10
DELIVERING ON GROWTH STRATEGY
PROJECTS SNAPSHOT
Activities throughout the year focused on consolidating the extensive geological dataset to advance
understanding of our projects in the Drummond Basin. The systematic field review identified high
potential prospects and further upgrades to the geological models across the Twin Hills and Yandan
Gold Projects and broader tenement package.
Twin Hills (MRE of ~ 1 million oz Au):
▪
Several high potential targets have been validated with potential for a substantial discovery
along the + 10 km long Twin Hills Gold Corridor.
▪
Evidence of the Epithermal Structural Zone connecting Lone Sister and 309 Deposits.
▪
Prospective host rocks and encouraging alteration observed at Southern Sister.
▪
Abundant quartz float and in-situ veining present at Bullock Creek.
▪
Silicified breccia similar to the 309 deposit host, is present at Coreshed-309 South and co-
incident with the best soil geochemistry.
Yandan (MRE of ~520 koz Au):
▪
Geological evidence continues to support that the East Hill deposit is the upper part of a large
scale epithermal gold system evidenced by the bladed carbonate replaced by silica and
sediments found below the fault.
▪
The Illamahta deposit lies in sediments due to increased fluid flow in the interpreted
dilatational (volume change) zone. Illamahta deposit has size potential and remains
completely untested at depth.
▪
The whole Yandan project area lies within a scalable epithermal gold system.
Mount Coolon (MRE of ~ 300 koz Au):
Major part of the year saw our farm-in partner Newmont, completing a substantial multifaceted
geophysical, geochemical and geological exploration program over the total farm-in tenement area.
This work was followed by data interpretation, target assessment and prioritisation which is currently
supporting the ~7,000 m air core drilling program currently underway at the Mount Coolon Project.
GBM Resources Annual Report 2024
Page | 11
PROJECTS – DRUMMOND BASIN QLD
TWIN HILLS PROJECT – MINERAL RESOURCE ESTIMATE (MRE) DEPOSITS
The combined resource at Twin Hills of 23.11 Mt @ 1.3 g/t Au and 6.5 g/t Ag for 999,200 oz Au and
4,824,600 oz Ag with 60% of the resource now in Measured and Indicated categories.
Both 309 and Lone Sister have high potential for open pit and bulk underground ore mining
methods.
GBM considers Twin Hills has the potential to be a Tier 1 stand-alone operation.
LONE SISTER DEPOSIT
The MRE for Lone Sister deposit comprises 12.48 Mt @ 1.2 g/t Au for 475,900 oz Au with 55% of the
resource now in Measured and Indicated categories (Table 1). The resource comprises open pit
resources to approximately 250 m below surface, of 11.8 Mt @ 1.1 g/t Au for 415,800 oz Au
calculated at a cut-off grade of 0.4 g/t Au and underground resources below 250 m of 0.68 Mt @ 2.7
g/t Au for 60,100 oz Au at a cut-off grade of 2.0 g/t Au.
Key Geological Features Include:
▪
Recorded high grades plunge to the north and remain open down plunge.
▪
Deposit hosted in rhyolite consistent with geological model.
▪
Mineralisation from surface deposit fully open down plunge.
▪
Felsic host rock with extensive quartz veining
▪
Potential bulk mining open pit and underground.
Figure 5: Lone Sister Plan view with Au Block model and IP Resistivity
Refer ASX:GBZ release 28 April 2023, “Compelling Target Areas Identified at Twin Hills”
GBM Resources Annual Report 2024
Page | 12
PROJECTS – DRUMMOND BASIN QLD
TWIN HILLS PROJECT – MINERAL RESOURCE ESTIMATE (MRE) DEPOSITS
LONE SISTER DEPOSIT (Cont.)
Figure 6: Lone Sister Long section Looking West (~50 m window). Note that high grades plunge to
the north and remain open down plunge. This remains a priority drill target.
Refer ASX:GBZ release 28 April 2023, “Compelling Target Areas Identified at Twin Hills”
Figure 7: The drill core recorded gold mineralisation of 25.3 g/t Au in Rhyolite at 272 m in Hole LRCD
152. Refer ASX:GBZ release 28 April 2023, “Compelling Target Areas Identified at Twin Hills”
GBM Resources Annual Report 2024
Page | 13
PROJECTS – DRUMMOND BASIN QLD
TWIN HILLS PROJECT – MINERAL RESOURCE ESTIMATE (MRE) DEPOSITS
309 DEPOSIT
The MRE for 309 deposit comprises 10.63 Mt @ 1.5 g/t Au for 523,300 oz Au with 64% of the resource
now in Measured and Indicated categories (Table1). The resource comprises open pit resources to
approximately 250 m below surface, of 9.96 Mt @ 1.4 g/t Au for 438,900 oz Au calculated at a cut-
off grade of 0.4 g/t Au and underground resources below 250 m of 0.67 Mt @ 3.9 g/t Au for 84,400
oz Au at a cut-off grade of 2.0 g/t Au.
Key Geological characteristics Include:
▪
Fully open at depth with grade increasing at depth.
▪
Base of resource high grade intersections:
o Hole TRCD7546 46 m @5.6 g/t Au from 297 m
o Hole 309DD22005 49 m @ 5.18 g/t Au from 310 m
(associated with late-stage visible gold as electrum)
o Hole THRCCD827 54 m @ 4.63 g/t Au from 352 m
(Refer ASX:GBZ release 28 April 2023)
▪
Possible high- grade feeder zone at depth.
▪
Surficial eruption breccia and sinter at the top of a larger epithermal system.
▪
Presence of fluorite suggest proximal felsic intrusion.
Figure 8: A Plan (A) and cross-section (B) showing the updated 309 MRE block model. Note that
high grades remain open along key NNE and WNW structural orientations. This is a key target for
GBM. Late-stage visible gold (C) is associated with high grade mineralisation in 309DD22005 that
remains open. Drill hole data is also shown. (Refer ASX:GBZ release 28 April 2023)
GBM Resources Annual Report 2024
Page | 14
PROJECTS – DRUMMOND BASIN QLD
TWIN HILLS PROJECT – MINERAL RESOURCE ESTIMATE SUMMARY TABLE
Table 1: Summary of the Twin Hills Gold Project MRE showing Au and Ag resources.
Deposit
MRE Category
Cutoff
(Au g/t)
Tonnes
Au
(g/t)
Ag
(g/t)
Au oz
Ag oz
Measured
0.4
830,000
2.8
5.3
73,900
141,900
Indicated
0.4
5,480,000
1.3
2.4
235,200
421,100
Inferred
0.4
3,650,000
1.1
1.7
129,800
198,000
Total open pit
0.4
9,960,000
1.4
2.4
438,900
761,000
Measured
2.0
-
-
-
-
-
Indicated
2.0
190,000
4.0
2.2
24,500
13,400
Inferred
2.0
480,000
3.9
1.8
59,900
28,600
Total underground
2.0
670,000
3.9
1.9
84,400
42,000
Measured
0.4 / 2.0
830,000
2.8
5.3
73,900
141,900
Indicated
0.4 / 2.0
5,670,000
1.4
2.4
259,700
434,500
Inferred
0.4 / 2.0
4,130,000
1.4
1.7
189,700
226,600
309 Total
0.4 / 2.0
10,630,000
1.5
2.3
523,300
803,000
Measured
0.4
-
-
-
-
-
Indicated
0.4
5,250,000
1.3
15.2
227,300
2,559,200
Inferred
0.4
6,550,000
0.9
6.5
188,500
1,370,700
Total open pit
0.4
11,800,000
1.1
10.4
415,800
3,929,900
Measured
2.0
-
-
-
-
-
Indicated
2.0
370,000
2.9
4.3
34,300
51,800
Inferred
2.0
310,000
2.6
4.0
25,800
39,900
Total underground
2.0
680,000
2.7
4.2
60,100
91,700
Measured
0.4 / 2.0
-
-
-
-
-
Indicated
0.4 / 2.0
5,620,000
1.4
14.5
261,600
2,611,000
Inferred
0.4 / 2.0
6,860,000
1.0
6.4
214,300
1,410,600
Lone Sister Total
0.4 / 2.0
12,480,000
1.2
10.0
475,900
4,021,600
Measured
0.4
830,000
2.8
5.3
73,900
141,900
Indicated
0.4
10,730,000
1.3
8.6
462,500
2,980,300
Inferred
0.4
10,200,000
1.0
4.8
318,300
1,568,700
Total open pit
0.4
21,760,000
1.2
6.7
854,700
4,690,900
Measured
2.0
-
-
-
-
-
Indicated
2.0
560,000
3.3
3.6
58,800
65,200
Inferred
2.0
790,000
3.4
2.7
85,700
68,500
Total underground
2.0
1,350,000
3.3
3.1
144,500
133,700
Measured
0.4 / 2.0
830,000
2.8
5.3
73,900
141,900
Indicated
0.4 / 2.0
11,290,000
1.4
8.4
521,300
3,045,500
Inferred
0.4 / 2.0
10,990,000
1.1
4.6
404,000
1,637,200
Twin Hills Total
0.4 / 2.0
23,110,000
1.3
6.5
999,200
4,824,600
309 Total
309 Deposit
Lone Sister Deposit
Twin Hills Total
309 Underground (below 0RL)
Lone Sister Open Pit (above 0RL)
Lone Sister Underground (below 0RL)
Lone Sister Total
Twin Hills Open Pit (above 0RL)
Twin Hills Underground (below 0RL)
Twin Hills Total
309 Open Pit (above 0RL)
GBM Resources Annual Report 2024
Page | 15
PROJECTS - DRUMMOND BASIN QLD
TWIN HILLS PROJECT – EXPLORATION HIGHLY PROSPECTIVE GOLD TARGETS
TWIN HILLS REGIONAL EXPLORATION
Following on from work identifying key targets and further geological assessment in understanding
of the structural controls at Twin Hills, GBM has completed a systematic field review in the year to
identify high potential prospects and areas of interest identified in the structural analysis.
See Figure 9 below.
Figure 9: A map of the Twin Hills area showing key prospects.
GBM Resources Annual Report 2024
Page | 16
PROJECTS – DRUMMOND BASIN QLD
TWIN HILLS PROJECT – EXPLORATION HIGHLY PROSPECTIVE GOLD TARGETS
TWIN HILLS REGIONAL EXPLORATION (Cont.)
The highly prospective > 10 km long Twin Hills Corridor (Figures 9&10) encompasses the 309 and
Lone Sister deposits of 23.1 Mt @ 1.3 g/t Au and 6.5 g/t Ag for ~ 1 Moz Au and 4.8 Moz Ag) and is
defined by strongly anomalous soil geochemistry, favourably oriented structures, and IP anomalies.
Multiple soil anomalies are present across areas of key target stratigraphy and are generally
coincident with NW or NE striking structures observed in magnetics. The key anomalies are at the
309 Trend Targets, Lone Sister, and Southern Sister, with second order anomalies at LS7 and Lone
Sister South and mapped sinter at Centipede.
There is clear geological evidence (the magnetic low with Au/As in soils) that the epithermal
structural zone connects the Lone Sister and 309 deposits.
Figure 10: The Twin Hills Gold Corridor with magnetics (RTP and Soil Au Contours). The > 10
km long corridor in which the Lone Sister and 309 deposits are located within and with
multiple untested /undertested soil and geophysical anomalies.
GBM Resources Annual Report 2024
Page | 17
PROJECTS – DRUMMOND BASIN QLD
TWIN HILLS PROJECT – EXPLORATION HIGHLY PROSPECTIVE GOLD TARGETS
TWIN HILLS REGIONAL EXPLORATION (Cont.)
The > 10 km2 soil anomaly surrounding Lone Sister and Southern Sister is very poorly tested outside
the immediate Lone Sister deposit area. Limited drilling at Southern Sister intersected prospective
andesite host stratigraphy with moderate silicification and anomalous gold/arsenic. This highly
prospective area will be a key focus of exploration.
The main outcrop at the Southern Sister prospect (Figure 11) comprises a knoll of autobrecciated
andesite to dacite and that may represent a flow dome or similar. The rocks are silicified and contain
disseminated pyrite but show little veining. The ~ 1 km2 > 10 ppb Au soil anomaly at Southern Sister
is centred over a 650 m long magnetic high bound by interpreted north trending faults.
A historic CSAMT survey extends across the eastern edge of the Southern Sister prospect and shows
a linear resistivity high co-incident with the interpreted structure. Limited, generally shallow drilling
has been focused along the eastern edge of the prospect and returned encouraging results of 3 m @
0.89 ppm Au from 125 m in SSRC005 and 14 m @ 0.28 ppm Au from 26 m in SSRC005 adjacent to the
Southern Sister knoll (Figure 12). GBM continues to view Southern Sister as a key target for further
exploration.
Figure 11: Photos of (A) the knoll at Southern Sister, (B) Autobrecciated andesite/dacite lava
possibly representing a flow dome or similar, (C) GBM Senior Geologist Damien Foster inspecting
the Southern Sister outcrop, and (D) Looking to the north from Southern Sister toward GBM’s Lone
Sister and 309 Deposits that contain ~ 1 Moz Au. Lone Sister is approximately 2 km NNE of Southern
Sister.
GBM Resources Annual Report 2024
Page | 18
PROJECTS – DRUMMOND BASIN QLD
TWIN HILLS PROJECT – EXPLORATION HIGHLY PROSPECTIVE GOLD TARGETS
TWIN HILLS REGIONAL EXPLORATION (Cont.)
Figure 12: Maps showing gold in soil across the Southern Sister and Lone Sister prospects
overlain on interpreted structure, aeromagnetics (A), and CSAMT (B).
GBM Resources Annual Report 2024
Page | 19
PROJECTS – DRUMMOND BASIN QLD
TWIN HILLS PROJECT – EXPLORATION HIGHLY PROSPECTIVE GOLD TARGETS
TWIN HILLS REGIONAL EXPLORATION (Cont.)
The 8 km long soil anomaly at Bullock Creek Prospect is coincident with abundant quartz float across
much of the core of the anomaly. The quartz was likely concentrated through regolith development
but similar quartz was observed as veins in outcrop only 1-2 m below surface and hosted in Anakie
Metamorphic Group phyllite (Figure 13).
Figure 13: A photo of quartz veining in bedrock at Bullock Creek Prospect overlain by abundant
quartz clasts in the regolith. Quartz float is coincident with the core of the Bullock Creek soil
anomaly.
GBM Resources Annual Report 2024
Page | 20
PROJECTS – DRUMMOND BASIN QLD
TWIN HILLS PROJECT – EXPLORATION HIGHLY PROSPECTIVE GOLD TARGETS
TWIN HILLS REGIONAL EXPLORATION (CONT)
The Coreshed and 309 South prospects are mostly covered by regolith with several small occurrences
of silicified breccia similar to the breccia that hosts 309 Deposit cropping out between the two
prospects (Figure 14). The breccia outcrops are co-incident with the highest Au in soil geochemistry
and combined with IP presented previously (Refer ASX:GBZ release 28 April 2023, Compelling Target
Areas Identified at Twin Hills) these prospects remain compelling exploration targets.
Figure 14: A photo of silicified breccia that crops out between the Coreshed and 309 South
prospects. This breccia is similar to the breccia that hosts the 309 Deposit and is co-incident with
the best Au in soil geochemistry.
GBM Resources Annual Report 2024
Page | 21
PROJECTS – DRUMMOND BASIN QLD
TWIN HILLS PROJECT – EXPLORATION HIGHLY PROSPECTIVE GOLD TARGETS
TWIN HILLS REGIONAL EXPLORATION (Cont.)
Priority combined geophysical, geochemical and geological targets have been identified immediately
to the south of the 309 deposit. A clear IP resistivity anomaly is defined at the 309 deposit and likely
reflects intense silicification associated with the mineralisation system. Two additional IP resistivity
anomalies, Coreshed and 309 South (Figure 15 A and B), define a SSE plunging trend sub-parallel to
the km-scale structural fabric that links 309 and Lone Sister deposits.
The Coreshed and 309 South resistivity anomalies are coincident with + 10 ppb Au soil anomalies and
outcropping silicified milled matrix breccia that also hosts the 309 deposit. Shallow drilling with
anomalous results of 0.5 – 1.9 g/t Au has tested part of the Coreshed anomaly but did not test the
309 South anomaly.
Figure 15: A Plan (A) showing the IP resistivity in the 309 area overlain by 309 deposit geometry,
drilling and Au in soil geochemistry. Note that the SSE trend sub-parallel to the km-scale structural
fabric that links 309 and Lone Sister deposits. Figure 16 below shows the cross section NW-SE
looking North East.
GBM Resources Annual Report 2024
Page | 22
PROJECTS – DRUMMOND BASIN QLD
TWIN HILLS PROJECT – EXPLORATION HIGHLY PROSPECTIVE GOLD TARGETS
TWIN HILLS REGIONAL EXPLORATION (Cont.)
Figure 16: A Plan (A) and cross-section (B) showing the IP resistivity in the 309 area overlain by 309
deposit geometry, drilling and Au in soil geochemistry. Note that the SSE plunging trend sub-
parallel to the km-scale structural fabric that links 309 and Lone Sister deposits.
GBM Resources Annual Report 2024
Page | 23
PROJECTS - DRUMMOND BASIN QLD
TWIN HILLS PROJECT – $12 MILLION SALE AND FARM-IN AGREEMENT
KEY POINTS
▪
GBM on 15 July 2024 executed a binding Heads of Agreement (HoA) with Wise Walkers
Limited (Wise Walkers) to earn up to a 70% joint venture interest in the Twin Hills Gold
Project (Twin Hills).
▪
GBM to receive a total A$6 million in cash consideration and Wise Walkers to sole fund
further exploration of A$6 million over an 18 month period to earn a 70% interest.
▪
GBM to retain a 30% interest free carried to a decision to mine.
▪
A non-refundable exclusivity fee of A$1 million and deposit of A$2 million have been
received. These payments will form part of the $6 million cash consideration.
▪
The parties have signed a full form Farm-in and Joint Venture Agreement, subject to
conditions precedent.
Wise Walkers are a significant and supportive shareholder with an interest of ~9.6% of the Company’s
issued shares, will enter into a farm-in agreement to advance the Twin Hills Gold Project to a decision
to mine.
Pursuant to the HoA, Wise Walkers will settle a total cash consideration of A$6 million to GBM and
sole fund a further $6 million in exploration expenditure over an 18-month period, subject to certain
conditions. Wise Walkers will have earned a 70% interest in Twin Hills and GBM will retain a 30% free
carried interest to a decision to mine.
Wise Walkers has paid GBM a non-refundable exclusivity fee of A$1 million. A further A$2 million has
been received at GBM’s solicitor’s trust account from Wise Walkers, with the remaining A$3 million
cash payment to be paid by Wise Walkers following satisfaction of certain Conditions Precedent and
execution of the formal Farm-in agreement.
GBM intends to apply the cash consideration component to repay the convertible notes debt held by
Collins St Convertible Notes Pty Ltd and to provide working capital.
(Refer to the schedule of key terms in ASX:GBZ releases 15 July 2024 and 21 October 2024)
GBM Resources Annual Report 2024
Page | 24
PROJECTS- DRUMMOND BASIN QLD
YANDAN PROJECT- MINERAL RESOURCE ESTIMATE (MRE)
Total MRE for Yandan is 15.9 Mt @ 1.0 g/t Au for 514,500 oz Au. The main deposits in the MRE are
- East Hill of 12.8 Mt @ 1.1 g/t Au for 443,000 oz Au with 54% of East Hill resources classified as
Indicated and the maiden MRE for Illamahta of 2.2 Mt @ 0.8 g/t Au for 55,500 oz Au (Table 2).
The Yandan Project comprises 2 mining leases and 4 exploration permits and is located 150 km SSE
of Charters Towers in northeast Queensland. Refer Figure 3 for Location Map.
The project contains known deposits (Yandan Main, Yandan South, East Hill, and Illamahta) and
numerous prospects and is hosted in the St Anns Formation sedimentary rocks and Yandan andesite,
within a 22 km long by 3 km wide, north-south elongated fault bounded subbasin, known as the
Yandan Tough.
The Yandan South MRE of 16,000 oz Au has not been further reviewed at this stage as no new drilling
or geological information has been gathered.
EAST HILLS MRE
The MRE for East Hill deposit comprises 12.8 Mt @ 1.1 g/t Au for 443,000 oz Au with 54% of East Hill
resources classified as Indicated.
The cut-off grade at East Hill has increased to 0.4 g/t Au (from 0.3 g/t Au the previous model) to bring
it in line with the Twin Hills MRE update and together with the previous drilling/SG data and
geological model greatly improved the deposit by reducing tonnes by 7.26 Mt and increasing the
head grade by 38% to 1.1 g/t Au,(Refer ASX:GBZ release 23 December 2020).
Of significance is the East Hill MRE high-grade core of 1.1 Mt @ 5.7 g/t Au for 201,000 oz Au. which
has the potential with further drilling to add additional high grade ounces to the resource.
Figure 17: A plan showing outlines of the East Hill and Yandan South block models projected to
surface. Section A-A’ is shown in Figure 18 below.
GBM Resources Annual Report 2024
Page | 25
PROJECTS – DRUMMOND BASIN QLD
EAST HILL MRE (Cont.)
The East Hill ore body comprises two main pods of mineralisation that together extend from surface
downward for 380 m. Overall, the system dips moderately to the south and plunges to the west with
no clear links to the adjacent Yandan Main or Yandan South ore bodies.
The East Hill deposit is a clear example of a hot spring low sulphidation epithermal system. Volcanic
facies contacts at a high angle to the overall stratigraphy suggests that the deposit likely formed in a
fault within the broader Yandan Trough.
The presence of hydrothermal alteration and epithermal veins below the Generator Fault together
with gold grades that increase down plunge suggest that the Yandan system remains open at depth
with potential for better grades likely that high-grade veins exist below the Generator Fault.
These high-grade veins are a key exploration target at Yandan.
The East Hill deposit is a clear example of a hot spring low sulphidation epithermal system.
Figure 18: The East Hill Cross Section depicts that East Hill is upper part of epithermal system
displaced by post mineral Generator Fault potentially concealing bonanza grade vein targets.
Refer ASX:GBZ release 22 March 2023, “New Yandan Geology Model Define Compelling Targets”
GBM Resources Annual Report 2024
Page | 26
PROJECTS – DRUMMOND BASIN QLD
YANDAN PROJECT- MINERAL RESOURCE ESTIMATE SUMMARY TABLE
Table 2: Summary of Yandan Project resources.
Deposit
MRE Category
Cutoff
(Au g/t)
Tonnes
Au
(g/t)
Ag
(g/t)
Au oz
Ag oz
Measured
-
-
-
-
-
Indicated
0.4
4,860,000
1.5
2.2
240,000
347,000
Inferred
0.4
7,900,000
0.8
1.4
203,000
362,000
Total
0.4
12,800,000
1.1
1.7
443,000
709,000
Measured
-
-
-
-
-
Indicated
2.0
750,000
6.4
6.3
154,000
153,000
Inferred
2.0
350,000
4.1
5.2
47,000
71,000
Total High Grade Core
2.0
1,100,000
5.7
5.9
201,000
224,000
Measured
-
-
-
-
-
Indicated
-
-
-
-
-
Inferred
0.3
900,000
0.6
-
16,000
-
Total
0.3
900,000
0.6
-
16,000
-
Measured
-
-
-
-
-
Indicated
-
-
-
-
-
Inferred
0.4
2,192,000
0.8
-
55,500
-
Total
0.4
2,192,000
0.8
-
55,500
-
Measured
-
-
-
-
-
Indicated
0.4
4,860,000
1.5
*
240,000
*
Inferred
0.3/0.4
10,992,000
0.8
*
274,500
*
Yandan Project Total
0.3/0.4
15,852,000
1.0
*
514,500
*
* not shown as no silver data reported for Yandan South and Illamahta
Yandan
Project
East Hill, Yandan South and Illamahta Total
East Hill
East Hill Open Pit (above -150m RL)
East Hill High Grade Core (included in East Hill above -150m RL)
Yandan
South
Yandan South (previously released)
Illamahta
Illamahta Open Pit
GBM Resources Annual Report 2024
Page | 27
PROJECTS - DRUMMOND BASIN QLD
EAST HILL UPDATE GEOLOGY MODEL AND EXPLORATION TARGET
The Generator Fault that truncates high grade mineralisation at East Hill is now interpreted to be
post-mineral and reverse movement is implied by andesite (older) juxtaposed over St Anns Formation
siltstone, limestone and Epiphany Conglomerate (younger) (Figure 19).
Figure 19: Schematic cross-sections illustrating the interpreted development of the East Hill gold
deposit showing (A) Formation of the East Hill gold deposit as a hot spring style low sulphidation
epithermal system, possibly in a graben, overlain by sinter and conglomerate containing clasts of
sinter and epithermal veins, (B) Regional folding resulting in tilting of the deposit, (C) The Generator
Fault cuts mineralisation and juxtaposes andesite (older) over St Anns Formation (younger). Erosion
to the present day showing currently defined East Hill mineralisation and the target zone at depth.
Note that sections are not to scale. The general position of the schematic section 19C is shown in
Figure 18.
GBM Resources Annual Report 2024
Page | 28
PROJECTS - DRUMMOND BASIN QLD
EAST HILL UPDATE GEOLOGY MODEL AND EXPLORATION TARGET (Cont.)
TARGET LOCATION
Yandan mineralisation (Yandan Main to East Hill) defines a 1 km trend that contains 900,000 oz Au
(historic and current resources). Hot spring epithermal systems often have better grades and more
ounces at depth with high-grade veins present underneath similar epithermal systems at Favona
mine in New Zealand and Golden Promise in USA. The geological model developed for East Hill implies
that the Generator Fault off-sets mineralisation to the south. Initial drilling will likely target locations
immediately to the north of known mineralisation (Figure 18).
Figure 20: A plan showing key targets zones for the new Yandan exploration model overlain on
gradient array chargeability and down hole gold with air photo background. The Yandan
mineralisation (Yandan Main to East Hill) defines a 1 km trend that contains 900,000 oz Au (historic
and current resources). Hot spring epithermal systems often have better grades and more ounces
at depth with high-grade veins present underneath similar epithermal systems. Note the
approximate position of the schematic sections shown in Figure 18.
GBM Resources Annual Report 2024
Page | 29
PROJECTS – DRUMMOND BASIN QLD
ILLAMAHTA MRE
The maiden MRE for Illamahta deposit comprises 2.19 Mt @ 0.8 g/t Au for 55,500 oz Au, including
1.15 Mt @ 0.73 g/t Au for 26,900 oz Au of oxide ore calculated at a cut-off grade of 0.4 g/t Au (Table
2)
Illamahta deposit sits approximately 15 km south southwest of Yandan Main and East Hill deposits.
Gold mineralisation occurs in several bedding parallel layers that dip shallowly to the northwest. The
Illamahta resource has been defined for more than 330 m along a NW strike, is typically 160 m wide
and extends from surface downward for 80 m.
Key Geological Features Include:
▪
Mineralisation from surface (Oxide).
▪
Illamahta Resource in Sediments due to increased fluid flow in interpreted dilatational
zone.
▪
Mineralisation ‘blowing out’ in St Anns Siltstone – Yandan Main Pit Analogy with East
Hill feeder.
▪
Andesites preferred host for thick high-grade epithermal veining (Waihi & Pajingo
mines).
▪
Focus on Feeder – Illamahta has size potential and remains completely untested at
depth.
▪
High-Grade Intersections:
MEC35 14 m @ 3.92 g/t Au from 50 m
ILRC010 17 m @ 3.48 g/t Au from 37 m
(Refer ASX:GBZ release 1 March 2023)
Figure 21: The Illamahta Cross-Section illustrates the mineralisation migrating up the
Dilational Zone in Sediments with the Main Feeder Vein in Andesite.
GBM Resources Annual Report 2024
Page | 30
PROJECTS – DRUMMOND BASIN QLD
ILLAMAHTA MRE (Cont.)
Illamahta mineralisation is similar to, Yandan Main mineralisation and is interpreted to represent the
upper and perhaps distal part of an epithermal system. A very large silicification halo surrounds
Illamahta (Figure 21) and GBM views Illamahta as being a small part of a much larger system, with
the potential for higher grades and more ounces in permissive structural settings and key lithological
units at depth.
Figure 22: A plan showing Illamahta mineralisation and outline of block model projected to surface.
Figure 23: A plan showing the location of the Illamahta Gold Deposit. Note that Illamahta forms at
one end of a large zone of pervasive silicification.
GBM Resources Annual Report 2024
Page | 31
PROJECTS – DRUMMOND BASIN QLD
ILLAMAHTA REGIONAL
Review of prospects outside of the immediate Yandan and Illamahta areas have been progressing
during the year. Historical soil sampling defines ten soil anomalies more than 1 km long with a tenor
> 5 ppb Au across the project (Figure 24).
Whilst Northeast Ridge has been the focus of several drilling programs other prospects have had little
significant work since initial discovery ~ 30 years ago. Historic soil sample results are predominantly
for gold only and cover < 10% of the project area. Comparison of historic soil and magnetic data
shows that multiple styles of mineralisation are likely to be present.
At Horse Creek and Murdering Lagoon gold in soil anomalies clearly correspond with circular
magnetic features that likely represent buried intrusions. Further work will be required, but these
prospects could represent intrusion related gold systems that are exemplified to north by deposits
such as Mt Leyshon, Kidston, and Mt Wright.
Figure 24: Maps showing (A) soil anomalies > 5 ppb Au across the Yandan Project overlain on
magnetics (RTP). Coverage of soil samples is also shown with just 8% of the project covered by soil
sampling. (B) Gold in soil (ppb) overlain on magnetics (RTP) at Horse Creek and Murdering Lagoon.
Note how well elevated gold matches the circular magnetic features. We interpret the circular
magnetic features to reflect buried intrusions that could represent intrusion related gold systems
exemplified to north by deposits such as Mt Leyshon, Kidston, and Mt Wright.
GBM Resources Annual Report 2024
Page | 32
PROJECTS – DRUMMOND BASIN QLD
MT COOLON GOLD PROJECT – A$25 M FARM-IN WITH NEWMONT
STATUS OF FARM-IN
In October 2022, Newcrest (now Newmont) entered into a farm-in agreement with GBM in relation
to the Mount Coolon Project to advance gold exploration in the Drummond Basin in Queensland. The
agreement provides the potential for Newmont to acquire up to a 75% interest in the Mount Coolon
Project tenements by spending A$25 million and completing a series of exploration milestones in a 3
stage farm-in over six years. (Refer ASX:GBZ release 21 October 2022 for further details of the farm-
in agreement).
The 3 stages are:
1. Minimum Commitment Period: $2 million spend within 24 months and reasonable
endeavours of completing at least 3,000 metres of drilling.
2. Stage 1 Phase: Subject to satisfying the Minimum Commitment Period, Newmont may
acquire a 51% farm-in interest by spending an additional $5 million and completing a further
7,000 metres of drilling within a period of 36 months of the commencement of the
agreement.
3. Stage 2 Phase: Subject to satisfying Stage 1 Phase Newmont may earn a further 24% farm-in
interest by spending an additional $18 million and completing at least another 10,000 metres
of drilling within a period of a further 36 months.
The project is currently in the Minimum Commitment Period. Total expenditure for the farm-in to date
(30 June 2024) is ~ $8.9 million.
Newcrest (now Newmont) completed a multifaceted geophysical, geochemical, and geological
exploration program across GBM’s Mt Coolon Gold Project.
Key activities completed or in progress:
▪
Substantial surface geochemistry completed over the broader Kolala to Verbena corridor,
Eugina and Badlands area plus Mt Coolon and Glen Eva project area.
▪
Induced Polarisation (IP) Geophysical Surveying complete within the broad Glen Eva and
Koala-Verbena structural corridors.
▪
Aeromagnetic and radiometric Survey completed covering 2,150Km2 .
▪
Final TruScan results received and reviewed. Determine if TruScan™ data can be used to
vector towards high-grade mineralisation and assist with making real-time decisions during
future drill programs.
▪
Data interpretation, target assessment and prioritisation continued throughout the year, with
the aim to commence an Air Core and Diamond drilling campaign in the first half of 2024.
▪
Two diamond holes were completed for a total of 1,040 m at Glen Eva (hole GLE001) and Eva
Lake (hole EVL001). Results pending.
▪
Planning and preparation for air core drilling program of ~ 7,000 m, testing a number of
targets has been completed and drilling is currently underway.
GBM Resources Annual Report 2024
Page | 33
PROJECTS – DRUMMOND BASIN QLD
MT COOLON GOLD PROJECT – A $25M FARM-IN WITH NEWMONT (Cont.)
SUMMARY OF ACTIVITIES
TruScan TM XRF Geochemical Scanning
TruScan™ provided high accuracy elemental concentrations of drill core and high-definition core
photos. To maximise the value associated with previous drilling conducted over 30+ years a
campaign to scan a selection of drill core from across the project area, focusing on the Koala, Glen
Eva, Eugenia, and Verbena prospects.
Over the course of a 3 month program, core and/or chips from 243 drill holes, totalling almost
17,000m of core and approximately 20,000 m of RC chips were scanned and photographed. Selected
holes and/or intervals were also geologically logged with details loaded/updated into the database.
This work greatly supported the data interpretation of the mineralised systems.
Induced Polarisation (IP) Geophysical Surveying
Approximately 80 line km of 2D pole-dipole IP was completed from the western side of the Glen Eva,
through to Canadian and Last Stand, Eugenia and also the Verbena Sinter areas. The program aims
to locate and define fertile structures, hydrothermal alteration, and broad lithological changes
within the broad Glen Eva and Koala-Verbena structural corridors. IP lines were nomically designed
at 400m spacing, with line spacing increased over lower priority areas (with the ability to infill if
warranted).
Data from the 2020-2021 GBM surveys between Glen Eva and Eastern Siliceous were also
remodelled with 2D inversion images produced using the same parameters / colour stretch as the
Newmont survey.
Assessment of the inversion models has highlighted the presence of multiple structures of interest,
particularly in the Canadian area. The IP program was completed in the first half FY24.
Surface Geochemistry
A soil sampling program was planned along the same lines as the Newcrest IP survey (nomically 400
x 50 m sample spacing) to provide a geochemical layer to assist with ranking and prioritising
structures/targets identified from the geophysics.
A total of 7,674 soil samples were collected over the broader Koala to Verbena corridor and to infill
areas of wider spaced sampling in the Eugenia and Badlands area.
Targeted geological reconnaissance and field mapping continued during the year with a total of 769
rock chips. (Figures 25 & 26)
GBM Resources Annual Report 2024
Page | 34
PROJECTS – DRUMMOND BASIN QLD
MT COOLON GOLD PROJECT – A$25M FARM-IN WITH NEWMONT (Cont.)
Figure 25: Mt Coolon Project - Soil samples coloured by Au (ppb).
Figure 26: Rock chip samples coloured by quartz vein texture over surface geology map
(tertiary/quaternary cover units not shown).
GBM Resources Annual Report 2024
Page | 35
PROJECTS – DRUMMOND BASIN QLD
MT COOLON GOLD PROJECT – A$25M FARM-IN WITH NEWMONT (Cont.)
Aeromagnetic & Radiometric Survey
An airborne magnetic and radiometric survey at 50 m line spacing covering an area of approx. 2,150
km2 / 49,184 line km was completed in the year.
The new magnetic data (Figure 27) will improve the lithological, structural and alteration
understanding of the project and will assist with targeting both low/intermediate-sulphidation
epithermal and intrusion-related type systems. The data has helped refine the margins of the
Drummond Basin and Anakie Inlier and define both structures and areas of alteration within the
Drummond Basin itself. A number of previously unrecognised mag high / lows have been identified
in the dataset which are thought to represent buried/blind intrusions. These may represent direct
targets or the more distal heat/fluid source for epithermal-type systems.
The radiometric data (Figure 28) is useful for understanding the surface geology of the project, in
particular discriminating between basement rocks (including subtle variations in bulk composition
between volcanic / volcaniclastic rocks) and various generations of transported / alluvial cover. The
data confirms that the southern part of the project is mostly under transported cover and the
northern part of the project is effectively covered by post mineral Bulgonunna Volcanics.
Drilling Update
Two diamond drill holes for a total of 1,039.7 m were drilled at Glen Eva and Eva Lake. Both drill holes
were sampled from near the base of the regolith and through the rest of the hole. All results are
currently expected in October 2024. Refer to Figure 29 for diamond hole location.
Field /Drill Program Planning for the 6 months to 31 December 2024
The Air Core (AC) program has commenced for ~ 7,000 m, testing a range of targets:
Planned Hole locations are presented in Figure 30 but may be subject to change when drilling
commences.
GBM Resources Annual Report 2024
Page | 36
PROJECTS – DRUMMOND BASIN QLD
MT COOLON GOLD PROJECT – A$25M FARM-IN WITH NEWMONT (Cont.)
Figure 27: Mt Coolon Project – Merged RTP magnetics image over the Mt Coolon project area.
2023 survey outline marked in red.
GBM Resources Annual Report 2024
Page | 37
PROJECTS – DRUMMOND BASIN QLD
MT COOLON GOLD PROJECT – A$25M FARM-IN WITH NEWMONT (Cont.)
Figure 28: Mt Coolon Project – Merged KUT radiometrics image over the Mt Coolon project area.
2023 survey outline marked in red.
GBM Resources Annual Report 2024
Page | 38
PROJECTS – DRUMMOND BASIN QLD
MT COOLON GOLD PROJECT – A$25M FARM-IN WITH NEWMONT(Cont.)
Figure 29: Diamond drill hole locations
Figure 30: Planned Drilling (2024) over surface geology map ( tertiary/quaternary cover units not
shown)
GBM Resources Annual Report 2024
Page | 39
PROJECTS – DRUMMOND BASIN QLD
DRUMMOND BASIN CONSOLIDATION
Since 2020, GBM has successfully consolidated three historic gold producing projects, being Mt
Coolon, Yandan and Twin Hills. These three key mining assets come with a highly prospective
tenement package and is a significant step in realising the Drummond Basin “processing halo
strategy” with now a combined resource base of 1.844 million ounces gold.
All projects are located within 70 km of the Yandan mining lease which has the potential to be a
processing centre due to its significant infrastructure which includes water storage dams, tailings
facilities, airstrip, leach pads and access to grid power.
GBM’s immediate focus will be to finalise the farm-in agreement with Wise Walkers and commence
the farm-in exploration budget of $6 million on the Twin Hills project and further advance the Yandan
project in the next 12 months.
Figure 31: Drummond Basin Consolidation of Twin Hills, Yandan and Mt Coolon Gold Projects
GBM Resources Annual Report 2024
Page | 40
PROJECTS - OTHER
CLONCURRY FARM-IN JOINT VENTURE (North-West Qld)
(Joint - Venture with Nippon Mining of Australia- GBM 44% and Nippon 56%)
MT MARGARET FC4 PROSPECT DRILLING PROGRAM
▪
The planned drill program testing a set of IOCG targets at the Mount Margaret project,
located near the Ernest Henry mine north of Cloncurry (Refer ASX:GBZ releases 7 & 29 May
2024) was completed in June 2024.
▪
The scout program comprised 12 Reverse Circulation (RC) holes for a total of 1,884 metres
drilled, testing 10 high priority targets along the magnetite-rich Rhea Shear Zone at FC4
prospect. The program was designed to test a suite of targets located under thin sedimentary
cover along the same magnetic belt of Fort Constantine Volcanics that hosts Ernest Henry
approximately 5 km to the south.
▪
Of the 12 completed holes, all reached their planned depth and most holes intersected
strong to intense magnetite-biotite-actinolite-feldspar alteration with many displaying the
intense foliation/ductile shearing typical of the RSZ. Final assay results are expected October
2024.
Project to date total expenditure for the farm-in is ~ $18.7 million to 30 June 2024.
Figure 32: Completed RC drill collars (June 2024 program at FC4).
GBM Resources Annual Report 2024
Page | 41
PROJECTS - OTHER
CLONCURRY FARM-IN JOINT VENTURE (Cont.)
(Joint - Venture with Nippon Mining of Australia- GBM 44% and Nippon 56%)
Figure 33: Location of GBM’s Farm in Tenements in the Cloncurry Region. The Cloncurry Project is
subject to a Farm-In/Joint Venture agreement with Nippon Mining of Australia (NMA, a wholly
owned subsidiary of JX Metals Corporation (JXM), previously Nippon Mining & Metals
Corporation). The Cloncurry Project exploration is fully funded by NMA who currently hold a 56%
interest in the Joint Venture.
GBM Resources Annual Report 2024
Page | 42
PROJECTS - OTHER
WHITE DAM GOLD - COPPER PROJECT SOUTH AUSTRALIA
CONDITIONAL SALE OF WHITE DAM
The proposed sale comprises the acquisition by Olary of a 100% interest in the issued capital of GBM’s
100% owned subsidiary Millstream Resources Pty Ltd (Millstream) and its wholly owned subsidiaries,
which hold the White Dam assets and operations.
Consideration for the sale comprises:
▪
$950,000 cash payable prior to 31 July 2024 or a later date as mutually agreed (Completion
Date);
▪
$1,000,000 cash payable 12 months from the Completion Date;
▪
$1,000,000 cash payable 24 months from the Completion Date; and
▪
1.5% net smelter royalty paid quarterly in arrears for all Au and Ag production at White Dam
to a maximum of $2.5 million.
As part of the transaction, Olary must also transfer a working capital contribution of a minimum of
$200,000 to Millstream on completion.
GBM and Olary to use reasonable endeavours to negotiate a share purchase agreement (SPA), and
management services agreement (MSA) relating to the provision of ongoing management, technical
and administrative support.
Conditions Precedent
The sale of White Dam to Olary is subject to a number of conditions precedent, including:
-
Olary securing a minimum of $2 million in funding during the Exclusivity Period; and
-
GBM obtaining all necessary consents to give effect to the sale.
As at 22 October 2024, Olary is yet to finalise its minimum funding condition.
GBM continues to assist Olary with its fund raising endeavours but is also in discussions with
other parties to finalise the sale of White Dam.
OVERVIEW
White Dam is located in South Australia, approximately 50 km south-west of Broken Hill. It is a heap
leach operation that, since 2010, has produced approximately 180,000 oz of gold from two open cuts
by heap leaching of 7.5 Mt of ore at 0.94 g/t Au. The current unmined JORC resource for the White
Dam Project is 4.6 Mt at 0.7 g/t Au for 101,900 oz Au. (Refer ASX:GBZ release 10 August 2020).
The two open cuts are the Vertigo, located within a granted mining lease (ML 6395) and the second
is the nearby White Dam North which is enclosed within an advanced lease adjacent to ML 6395 (MPL
105).
GBM Resources Annual Report 2024
Page | 43
PROJECTS - OTHER
WHITE DAM GOLD - COPPER PROJECT SOUTH AUSTRALIA (Cont.)
Figure 34: Aerial photo of White Dam with JORC resources highlighted in Image and table.
Figure 35: Location map of the White Dam Heap Leach Operations.
GBM Resources Annual Report 2024
Page | 44
2024 ANNUAL MINERAL RESOURCES STATEMENT
The following Annual Statement of Mineral Resources statement reflects the Company’s mineral
resources (including wholly owned subsidiary companies) as at the 30 June 2024. This section of the
Annual Report includes information relevant to that Statement.
There has been no change during the 2024 financial year to GBM’s combined gold resources from all
projects from 30 June 2023. GBM’s total gold resources are estimated to contain 1.94 million ounces
of gold.
The Drummond Basin in Queensland remains the key focus for GBM, with 1.8 Moz or 95% of the total
gold resource base contained in deposits located in this region. In the Drummond Basin deposits,
55% of the estimated contained gold is classified in the ‘measured’ and ‘indicated’ categories. Despite
a reduction in exploration during 2024, the Company remains optimistic that that the resource base
will increase further during the 2025 financial year as the impact of renewed exploration activity
focussed on recently identified promising exploration targets and extensions to known deposits, in
particular at the Twin Hills and Yandan Projects, yields additional data and these results are
incorporated into revised resource models.
For the purpose of preparing this Annual Statement of Mineral Resources (ASMR) as at 30 June 2024,
GBM has completed a review of each resource taking into account long term metal price, foreign
exchange rates, cost assumptions based on current industry trends and conditions, any changes that
may affect the capability for these resources to be exploited or which may result in material changes
to cut-off grades and physical mining parameters. It should be emphasised that this is a summary
only of the Company’s resources and for further detail the reader is referred to the respective ASX
releases listed at the end of this section.
In relation to commodities key to GBM’s resource base the company holds the following views;
➢ Operating costs in the industry have displayed varying trends during the last 12 months. Labour
costs have continued to edge further upwards. The trend to increasing use of energy from
renewable sources in mining operations is continuing and is likely to further reduce the reliance
of new mining operations on fossil fuels.
➢ The gold price trended upwards during the year from USD1,909 per ounce to finish trade around
USD2,330. Over the course of the financial year and the 3 months subsequent, the gold price
appears to be continuing a long upwards trend in value which commenced around 2006.
➢ The Australian dollar traded in a relatively narrow range from 0.68 USD to 0.62 USD throughout
the year, finishing the year at 0.67 USD. At the time of writing the Australian dollar is trading
around 0.67 USD. This lower exchange rate of the Australian dollar against the US dollar, in
conjunction with ongoing strong metal prices reaching new record highs, has resulted in a
continued positive outlook for Australian gold deposits.
The Company believes that, considering the outlook for commodity prices and other factors, there is
a reasonable expectation that resources at the Drummond Basin and White Dam Projects will
eventually support mining operations.
GBM Resources Annual Report 2024
Page | 45
2024 ANNUAL MINERAL RESOURCES STATEMENT
Key Developments Since 30 June 2022 Resource and Ore Reserve Statement
There have been no key developments relating to GBM’s gold resources in the Drummond Basin
during the 2024 Financial Year or the three months subsequent.
Drummond Basin Gold Project Resources
The following projects are located within the Company’s Drummond Basin ‘Processing Hub’ concept
in Queensland.
Twin Hills Gold Project
The Twin Hills Gold Project comprises the 309 and Lone Sister Gold Deposits. The project was
acquired during the 2022 financial year. Twin Hills Project tenements are owned by the Company’s
100% owned subsidiary Mount Coolon Gold Mines Pty Ltd. A second resource upgrade was
announced by the Company in December 2022 increasing the combined Twin Hills Resource base
from 760,700 to an estimated 999,200 ounces of contained gold. Under the terms of the Strategic
Farm In agreement, Newcrest has a first right of refusal in respect of any proposed sale or transfer of
the Twin Hills Project tenements (Refer GBZ:ASX release 21 October 2022).
There have been no changes to the Twin Hills mineral resources since the last Annual Statement of
Mineral resources as at 30th June 2023. It is important to note that the December 2022 resource
upgrade was the result of a substantial drilling program resulting in improved geological
understanding, additional QA-QC data and additional geological data in previously untested portions
of the deposit which resulted in significant extensions to the known mineralisation being defined and
the overall resources at both the 309 and Lone Sister deposits being significantly increased.
The information in this report that relates to the Twin Hills Project is based on information compiled
by Kerrin Allwood, who is a Member of The Australasian Institute of Mining and Metallurgy and The
Australasian Institute of Geoscientists. Refer ASX:GBZ release 5 December 2022.
Mt Coolon Gold Project
The Mount Coolon Gold Project includes the Koala, Glen Eva and Eugenia deposits. Tenements and
resources are owned by the Company’s 100% owned subsidiary, Mt Coolon Gold Mines Pty. Ltd. In
October 2022, GBM entered into a Farm In agreement with Newcrest*1 whereby Newcrest has the
right to earn up to a 75% interest in the Mount Coolon tenements, including the Mining Licences
hosting the Koala and Glen Eva mineral resources, by spending up to A$25m and completing a series
of exploration milestones in a 3-stage farm-in over six years (Refer ASX:GBZ 21 October 2022). There
have been no changes in the Mt Coolon mineral resources since the last Annual Statement of Mineral
Resources as at 30 June 2023.
The information in this report that relates to Koala and Glen Eva Mineral Resources is based on
information compiled by Kerrin Allwood, who is a Member of The Australasian Institute of Mining and
Metallurgy and The Australasian Institute of Geoscientists. Refer ASX:GBZ release 4 December 2017.
The information in this report that relates to the Eugenia Mineral Resource is based on information
compiled by Scott McManus, who is a Member of The Australasian Institute of Mining and Metallurgy
and The Australasian Institute of Geoscientists. Refer ASX:GBZ release 4 December 2017.
*1 Newcrest was acquired by Newmont Mining Corporation on 6 November 2023. Newmont is
continuing to explore the Mount Coolon Gold Project under the Newcrest Farm-In Agreement.
GBM Resources Annual Report 2024
Page | 46
2024 ANNUAL MINERAL RESOURCES STATEMENT
Yandan Gold Project
The Yandn Gold Project includes the East Hill, Yandan South and Illamahta deposits. This project was
acquired via acquisition of the holding company Straits Gold Pty Ltd in January 2021. Yandan Project
tenements are owned by the Company’s 100% owned subsidiary Straits Gold Pty Ltd. In December
2020 GBM completed a re-estimation of the project resources compliant with JORC 2012. A
substantial drilling program was completed in 2021 and the results of this program used to upgrade
the Yandan mineral resource estimate in March 2023. Under the terms of the Strategic Farm In
agreement, Newcrest has a first right of refusal in respect of any proposed sale or transfer of the
Yandan Project tenements (Refer GBZ:ASX release 21 October 2022).
There have been no changes to the Yandan resource estimate (comprising the Yandan South, East
Hill and Illamahta deposits) during the 2024 financial year.
Key points relating to the current Yandan Project resource base include;
▪
52% of the Yandan resources contained gold (excluding Illamahta) now classified as
‘indicated’ (previously 100% ‘Inferred’).
▪
The East Hill deposit has been modelled to incorporates open pit mining to a depth of
approximately 330 metres with a higher 0.4 g/t Au cut-off grade used. In addition, a higher
grade ‘core’ zone mineralisation has also been modelled (cut-off grade 2.0 g/t Au).
▪
Silver grades have been estimated for the East Hill deposit however at this early assessment
stage, no assumption has been made that silver could contribute positively as a bye-product
to any future mining operation. Silver prices have been trending higher since 2019 and are
now in excess of US$30 per ounce.
▪
The maiden resource estimate for the Illamahta deposit has been included.
The information in this report that relates to the Yandan and Illamahta Projects is based on
information compiled by Ian Taylor, who is a Member of The Australasian Institute of Mining and
Metallurgy and The Australasian Institute of Geoscientists. Refer ASX:GBZ release 14 March 2023.
White Dam Gold Project Resources
The White Dam Project is located approximately 50 kilometres west of Broken Hill within the
Curnamona Province of South Australia. This project includes an active heap leach gold operation
which produced 425 ounces of gold during the 2024 financial year. GBM announced that it had
acquired 100% interest in the project on 30 July 2021 through Millstream Pty. Ltd., now a 100%
owned subsidiary of GBM.
The White Dam Project includes three separate gold deposits, Vertigo, Hannaford and White Dam
North in addition there is significant exploration tenure. GBM announced a JORC (2012) compliant
gold resource for the White Dam project in August 2020 (CP K Allwood). Additional drilling was
completed by GBM at the White Dam deposits Vertigo and White Dam North during 2021 and re-
estimation of resources and pit optimisation is continuing.
There have been no changes in the White Dam mineral resources since the last Annual Statement of
Mineral Resources as at 30 June 2023.
The Company considers that any minor increases in mining and operating costs that may have
occurred through the year have been outweighed by the increase in average gold price in Australia
resulting from a favourable combination of commodity price and minor currency movements. The
company believes that, considering the outlook for commodity prices and other factors, there is a
reasonable expectation that resources at the White Dam Project will eventually support renewed
mining operations.
GBM Resources Annual Report 2024
Page | 47
2024 ANNUAL MINERAL RESOURCES STATEMENT
The information in this report that relates to the White Dam Mineral Resources is based on
information compiled by Kerrin Allwood, who is a Member of The Australasian Institute of Mining and
Metallurgy and The Australasian Institute of Geoscientists. Refer ASX:GBZ release 10 August 2020.
Changes Since 30 June 2024 Resource and Ore Reserve Statement
GBM is not aware of any new information or data that materially affects the information contained
in the 2024 Annual Mineral Resource and Ore Reserve Statement.
GBM Resources Limited – Mineral Resources at 30 June 2024
Table 3: GBM consolidated table of Mineral Resources at 30 June 2024. (All tonnages are dry metric
tonnes, data is rounded to (‘000 tonnes, 0.0 g/t and ‘000 ounces). Discrepancies in totals may occur
due to rounding. Resources have been reported as both open pit and underground with varying
cut-off based on several factors as discussed in the corresponding Table 1 (which can be found with
the original ASX announcement for each of the resources).
000' t
Au g/t
Au oz
000' t
Au g/t
Au oz
000' t
Au g/t
Au oz
000' t
Au g/t
Au oz
Open Pit
670
2.6
55,100
440
1.9
26,700
1,120
2.3
81,800
0.4
UG Extension
50
3.2
5,300
260
4
34,400
320
3.9
39,700
2.0
Tailings
114
1.7
6,200
9
1.6
400
124
1.6
6,600
1.0
Sub Total
114
1.7
6,200
729
2.6
60,800
700
2.7
61,100
1,563
2.5
128,100
Oxide - Open Pit
885
1.1
32,400
597
1.0
19,300
1,482
1.1
51,700
0.4
Sulphide - Open Pit
905
1.2
33,500
1,042
1.2
38,900
1,947
1.2
72,400
0.4
Sub Total
1,790
1.1
65,900
1,639
1.1
58,200
3,430
1.1
124,100
Sub Total - Open Pit
1,070
1.6
55,200
580
1.2
23,100
1,660
1.5
78,300
0.4
East Hill - Open Pit
4,860
1.5
240,000
7,900
0.8
203,000
12,800
1.1
443,000
0.4
Yandan South - Open Pit
900
0.6
16,000
900
0.6
16,000
0.3
Sub Total
4,860
1.5
240,000
8,800
0.8
219,000
13,700
1.0
459,000
Oxide - Open Pit
1,147
0.7
26,900
1,147
0.7
26,900
0.4
Sulphide - Open Pit
1,045
0.9
28,600
1,045
0.9
28,600
0.4
Sub Total
2,192
0.8
55,500
2,192
0.8
55,500
309 - Open Pit
830
2.8
73,900
5,480
1.3
235,200
3,650
1.1
129,800
9,960
1.4
438,900
0.4
309 - UG
190
4.0
24,500
480
3.9
59,900
670
3.9
84,400
2.0
Lone Sister - Open Pit
5,250
1.3
277,300
6,550
0.9
188,500
11,800
1.1
415,800
0.4
Lone Sister - UG
370
2.9
34,300
310
2.6
25,800
680
2.7
60,100
2.0
Sub Total
830
2.8
73,900
11,290
1.4
521,300
10,990
1.1
404,000
23,110
1.3
999,200
Drummond Basin Total
944
2.6
80,100
19,739
1.5
943,200
24,901
1.0
820,900
45,655
1.26
1,844,200
Hannaford - Open Pit
700
0.7
16,400
1,000
0.8
26,900
1,700
0.8
43,300
0.2
Vertigo - Open Pit
300
1.0
9,400
1,400
0.6
29,000
1,700
0.7
38,400
0.2
White Dam North - Open Pit
200
0.5
2,800
1,000
0.6
17,600
1,200
0.5
20,400
0.2
Sub Total
1,200
0.7
28,600
3,400
0.7
73,500
4,600
0.7
101,900
cut-off grade is 0.20 g/t Au for all, Vertigo is restricted to above 150RL (~70 m below surface)
GBM Total
1,946,100
White Dam - ML
Twin Hills - ML
Deposit
Resource Category
Total
Cut-off
Measured
Indicated
Inferred
Koala -ML
Eugenia
Glen Eva - ML
Yandan - ML
Illamahta
GBM Resources Annual Report 2024
Page | 48
2024 ANNUAL MINERAL RESOURCES STATEMENT
The announcements containing the JORC Table 1 Checklists of Assessment and Reporting Criteria
relating to each of the 2012 JORC compliant Resources are:
▪
Koala/Glen Eva and Eugenia – Refer ASX:GBZ release 4 December 2017, Mt. Coolon Gold
Project Scoping Study.
▪
Yandan and Illamahta – Refer ASX:GBZ release 14 March 2023, ‘Results of Yandan Mineral
Resource Update’
▪
Twin Hills (309 & Lone Sister) – Refer ASX:GBZ release 5 December 2022, ‘Twin Hills Gold
Project Upgrades to ~1 Moz Mineral Resource’
▪
White Dam – Refer ASX:GBZ release 10 August 2020, White Dam Maiden JORC 2012 Resource
of 102 koz.
Competent Person Statement
The information in this Annual Mineral Resources Statement is based on and fairly represents
information and supporting documentation prepared by the competent persons named in the
relevant sections of this report. The preceding statements of Mineral Resources conforms to the
“Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (JORC
Code) 2012 Edition”.
The information in this Annual Mineral Resources Statement as a whole that relates to Mineral
Resources is based on information compiled by Neil Norris, who is a Member of The Australasian
Institute of Mining and Metallurgy. Mr Norris is a holder of shares in the company and is a consultant
to the company. Mr Norris has sufficient experience which is relevant to the style of mineralisation
and type of deposit under consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves’. Mr Norris consents to the inclusion in the
report of the matters based on his information in the form and context in which it appears.
GBM Resources Annual Report 2024
Page | 49
SUSTAINABLE DEVELOPMENT
FRAMEWORK
The board and management of GBM maintain a strong commitment to the principles of sustainable
development. GBM’s Environmental, Health and Safety and Diversity policies provide the framework
for effective and proactive management, which are supported by appropriate procedures at the
operational level.
GBM has been a signatory to the Mineral Council of Australia’s ‘Enduring Value: The Australian
Minerals Industry Framework for Sustainable Development’ since 2008 and reconfirmed this
commitment in 2016.
SAFETY AND HEALTH
GBM provides appropriate training, equipment and systems to ensure all our employees and
contractors are well equipped to undertake the required work tasks. As well as endeavouring to
comply with all statutory health and safety requirements through our managers, supervisors and
employees, we actively assess work environments and individual tasks to identify potential hazards
and ensure that appropriate controls are in place.
At White Dam, GBM continued with the implementation of the recommendations from the FY23
external audit of White Dam’s safety management system. The findings and recommendations of the
audit have been followed up, with key actions including the ongoing maintenance of the site’s risk
register. Safety-related processes including pre-start meetings, job safety analysis (JSAs), safety
communications and pre-start checks continued to be implemented and processes strengthened.
Procedures for emergency response and management also continued to be implemented with the
involvement and support of the workforce.
Queensland exploration operations were completed, with the sites going into a care and
maintenance phase in anticipation of renewed exploration programs. Whilst in care and
maintenance, all sites were managed in accordance with our health & safety policies and procedures
and regulatory requirements.
No lost time injuries or high potential incidents were recorded for the year across GBM’s operations.
ENVIRONMENTAL MANAGEMENT
GBM is committed to managing our activities to minimise impacts to the environment. We comply
with relevant environmental laws and regulations as a minimum standard, and regularly inform and
consult with relevant government departments. We strive to achieve superior outcomes for the
environment, and to continually improve our performance.
At our White Dam operation, monitoring and reporting as required under the Program for
Environment
Protection and Rehabilitation (PEPR) continued, including quarterly surface and groundwater
monitoring and photographic records of rehabilitation progress. GBM also continued with
environmental management and maintenance/repairs of HDPE liners for the Pregnant Liquor Storage
(PLS) and Intermediate Liquor Storage (ILS) process ponds.
GBM Resources Annual Report 2024
Page | 50
SUSTAINABLE DEVELOPMENT
Figure 36: Installation of concrete bunds around raw water tanks as part of environmental
management at White Dam
At our Queensland operations, following the approval of the Mt Coolon Progressive Rehabilitation
and Closure Plan (PRCP) by the Queensland Department of Environment, Science and Innovation
(DESI), the Mt Coolon Estimated Rehabilitation Cost (ERC) was finalised and accepted by DESI.
Following extensive communications with DESI regarding the current infrastructure’s rehabilitation
status and the legacy effects of the former mining operations on surface water and groundwater
quality, a substantially increased environmental monitoring program and detailed technical studies
were implemented and the ERC for the Yandan project was accepted by DESI. The finalisation of the
PRCP for the Yandan project is ongoing following communications and feedback from DESI. Extended
environmental monitoring is ongoing at the Yandan project in accordance with GBM’s policies and
regulatory requirements. Whilst the site is in care and maintenance, GBM is reviewing the
opportunities for starting progressive rehabilitation of disturbed areas.
GBM Resources Annual Report 2024
Page | 51
SUSTAINABLE DEVELOPMENT
Figure 37: Groundwater sampling at Yandan
For the Twin Hills project, environmental management and monitoring is ongoing in accordance with
GBM’s policies and regulatory requirements. Whilst the site is in care and maintenance, GBM is
reviewing the opportunities for starting progressive rehabilitation of disturbed areas.
Across the Yandan, Mt Coolon and Twin Hills project sites, we continued our programs to repair and
upgrade fencing to control livestock access and improve safety in the vicinity of open holes and edges
and control invasive weed species, including parthenium.
No environmental incidents were recorded for the year across GBM’s operations.
GBM Resources Annual Report 2024
Page | 52
SUSTAINABLE DEVELOPMENT
COMMUNITY RELATIONS
GBM endeavours to maintain good relationships with our neighbours and support businesses in our
local communities.
In the Drummond Basin, we work closely with the Jaanga people, the traditional owners and Native
Title holders of the land on which our projects are sited. Jaanga representatives undertake cultural
heritage surveys on our project sites in advance of any field work with the potential to disturb the land.
We source our consumables and services for our Drummond Basin projects from nearby towns,
including Mt Coolon, Collinsville, Moranbah, Emerald and Mackay.
At White Dam, we provide assistance to the owners of the sheep station property that the White
Dam camp is sited upon, including undertaking maintenance work on station facilities, helping with
other station work and providing mine equipment for road maintenance and earthworks related
tasks. We also rent accommodation facilities on the station, and on occasions provide casual
employment. In turn, we also borrow road maintenance, earthmoving and construction equipment.
A high proportion of our everyday consumables for the operation are sourced from Broken Hill, the
nearest town to White Dam.
GBM Resources Annual Report 2024
Page | 53
TENEMENT SCHEDULE
Project / Name
Tenement No.
Owner
Manager
Interest
Status
Granted
Expiry
Approx
Area
sub-
blocks
31/03/2024
(km2 or Hectare-ha)
South Australia
White Dam
EL6435
GBMR*6 (Millstream)
GBMR
100%
Granted
14-Oct-14
13-Oct-24
96
EL6565
GBMR*6 (Millstream)
GBMR
100%
Granted
28-Jul-20
27-Jul-25
343
ML6395
GBMR (Millstream)
GBMR
100%
Granted
8-Dec-11
7-Dec-26
249.9 ha
ML6275
GBMR (Millstream)
GBMR
100%
Granted
11-Sep-07
23-Jan-29
249.8 ha
EL6946
GBMR (Millstream)
GBMR
100%
Granted
6-Nov-23
5-Nov-29
438
MPL107
GBMR (Millstream)
GBMR
100%
Granted
24-Jan-08
23-Jan-29
132.3 ha
MPL106
GBMR (Millstream)
GBMR
100%
Granted
24-Jan-08
23-Jan-29
162.6 ha
MPL105
GBMR (Millstream)
GBMR
100%
Granted
24-Jan-08
23-Jan-29
250 ha
MPL95
GBMR (Millstream)
GBMR
100%
Granted
11-Sep-07
23-Jan-29
24.1 ha
MPL139
GBMR (Millstream)
GBMR
100%
Granted
8-Dec-11
7-Dec-26
249.77 ha
Queensland
Mount Morgan
Mt Morgan West
EPM27096
GBMR
GBMR
100%
RA
28-Aug-19
27-Aug-27
325
100
Mt Morgan East
EPM27097
GBMR
GBMR
100%
Granted
11-Jan-21
10-Jan-26
299
92
Mt Morgan Central
EPM27098
GBMR*1
GBMR
100%
Granted
16-Dec-20
15-Dec-25
325
100
Mount Usher
EPM27865
GBMR
GBMR
100%
Application
22.75
7
Mount Usher
MDL2020
GBMR
GBMR
100%
Application
573.4ha
Mt Morgan
EPM17850
GBMR
GBMR
100%
Granted
16-Apr-10
15-Apr-25
42
13
Mount Isa Region (QLD)
Mount Margaret
Mt Malakoff Ext
EPM16398
GBMR*2, 3 /Isa Tenements
GBMR
44%
Granted
19-Oct-10
18-Oct-26
78
24
Cotswold
EPM16622
GBMR*2, 3 /Isa Tenements
GBMR
44%
Granted
30-Nov-12
29-Nov-24
16
5
Dry Creek
EPM18172
GBMR*2, 3/Isa Tenements
GBMR
44%
Granted
13-Jul-12
12-Jul-25
163
50
Dry Creek Ext
EPM18174
GBMR*2, 3/Isa Tenements
GBMR
44%
Granted
25-Oct-11
24-Oct-24
23
7
Mt Marge
EPM19834
GBMR*3/Isa Tenements
GBMR
44%
Granted
4-Mar-13
3-Mar-25
3
1
Tommy Creek
EPM25544
GBMR*3/Isa Tenements
GBMR
44%
Granted
11-Nov-14
10-Nov-24
33
10
Corella
EPM25545
GBMR*3/Isa Tenements
GBMR
44%
Granted
20-Mar-15
19-Mar-25
46
14
Middle Creek
EPM27128
GBMR*3/Isa Tenements
GBMR
44%
Granted
28-Jan-20
27-Jan-25
35
89
Sigma
EPM27166
GBMR*3/Isa Tenements
GBMR
44%
Granted
28-Jan-20
27-Jan-25
287
11
Bungalien
Bungalien 2
EPM18207
GBMR*2, 3/Isa Tenements
GBMR
44%
Granted
24-May-12
23-May-25
120
37
The Brothers
EPM25213
GBMR*3/Isa Tenements
GBMR
44%
Granted
16-Oct-14
15-Oct-25
7
2
Drummond Basin (QLD)
Yandan
Yandan West
EPM27644
GBMR/MCGM
GBMR
100%
Granted
04-Jul-22
03-Jul-27
325
100
Yandan East
EPM27591
GBMR/MCGM
GBMR
100%
Granted
06-Jul-21
05-Jul-26
227
71
Clewitts
EPM27592
GBMR/MCGM
GBMR
100%
Granted
08-Jul-21
07-Jul-26
322
99
Yandan
EPM8257
GBMR/Straits Gold
GBMR
100%
Granted
02-Sep-91
01-Sep-25
74.75
23
Yandan West
ML1095
GBMR/Straits Gold
GBMR
100%
Granted
27-Jun-91
30-Jun-36
1369ha
Yandan East
ML1096
GBMR/Straits Gold
GBMR
100%
Granted
27-Jun-91
30-Jun-36
602.4ha
Mt Coolon
Mt Coolon
EPM15902
GBMR/MCGM*4
Newmont
100%
Granted
13-Jun-08
12-Jun-28
299
92
Mt Coolon North
EPM25365
GBMR/MCGM*4
Newmont
100%
Granted
18-Sep-14
17-Sep-28
85
26
Mt Coolon East
EPM25850
GBMR/MCGM*4
Newmont
100%
Granted
07-Sep-15
06-Sep-28
176
54
Conway
EPM7259
GBMR/MCGM*4
Newmont
100%
Granted
18-May-90
17-May-25
39
12
Bulgonunna
EPM26842
GBMR/MCGM*4
Newmont
100%
RA
15-Aug-19
14-Aug-24
325
100
Black Creek
EPM26914
GBMR/MCGM*4
Newmont
100%
RA
15-Aug-19
14-Aug-24
325
100
Sullivan Creek
EPM27555
GBMR/MCGM*4
Newmont
100%
Granted
15-Sep-20
14-Sep-25
325
100
Belleview
EPM27556
GBMR/MCGM*4
Newmont
100%
Granted
05-Jul-21
04-Jul-26
325
100
Pasha
EPM27557
GBMR/MCGM*4
Newmont
100%
Granted
15-Sep-20
14-Sep-25
325
100
Suttor
EPM27558
GBMR/MCGM*4
Newmont
100%
Granted
05-Jul-21
04-Jul-26
325
100
Whynot
EPM27598
GBMR/MCGM*4
Newmont
100%
Granted
26-Jul-21
25-Jul-26
65
20
Glen Eva
ML 10227
GBMR/MCGM*4
Newmont
100%
RA
05-Dec-96
31-Jan-24
1.30
Koala 1
ML 1029
GBMR/MCGM*4
Newmont
100%
RA
30-May-74
31-Jan-24
0.71
Koala Camp
ML 1085
GBMR/MCGM*4
Newmont
100%
RA
27-Jan-94
31-Jan-24
0.05
Koala Plant
ML 1086
GBMR/MCGM*4
Newmont
100%
RA
27-Jan-94
31-Jan-24
0.98
Twin Hills
Dingo Range
EPM19504
GBMR/MCGM
GBMR
100%
Granted
12-Mar-13
11-Mar-28
16.25
5
Twin Hills
EPM19856
GBMR/MCGM
GBMR
100%
RA
10-Mar-14
09-Mar-24
74.75
23
Anakie
EPM25182
GBMR/MCGM
GBMR
100%
Granted
14-Jan-14
13-Jan-29
35.75
11
Twin Hills South
EPM27594
GBMR/MCGM
GBMR
100%
Granted
25-Oct-22
24-Oct-27
325
100
Twin Hills North
EPM27597
GBMR/MCGM
GBMR
100%
Granted
08-Jul-21
07-Jul-26
273
84
Gunjulla
EPM27974
GBMR/MCGM
GBMR
100%
Granted
12-May-22
11-May-27
35.75
11
Frank Field
EPM28140
GBMR/MCGM
GBMR
100%
Granted
09-Dec-22
08-Dec-27
97.5
30
Yacimiento
EPM27554
GBMR
GBMR
100%
Granted
29-Mar-21
28-Mar-26
243.75
75
Twin Hills
ML70316
GBMR/MCGM
GBMR
100%
Granted
16-Dec-04
31-Dec-34
238ha
Total
7367
1998
Note
* 2 subject to a 2% net smelter royalty is payable to Newcrest Mining Ltd. On all or part of the tenement area.
* 3 subject to Farm In by Cloncurry Exploration and Develoment, a subisdiary of Nippon Mining Australia .
* 4 subject to Farm In by Newcrest Operations Ltd. a subsidiary of Newmont Corporation.
* 5 subject to completion of the sale to Havilah Resources Limited (ASX:HAV) (Refer ASX:GBZ release 8 August 2023).
*6 subject to Farm In by Syndicate Minerals Pty Ltd (Refer ASX:GBZ release 8 December 2023)
* 1 approximately 16 km 2 which was the area of previous EPM19849 Moonmera, is subject to 1% smelter royalty and other conditions to Rio Tinto.
GBM Resources Annual Report 2024
Page | 54
DIRECTORS’ REPORT
The Directors present their report together with the consolidated financial statements of the Company and its
controlled entities (‘Group’) for the financial year ended 30 June 2024.
DIRECTORS
The names of Directors in office at any time during or since the end of the year are:
Mr Guan Huat Sunny Loh – BBA, ACS, ACIS, MBA
Non-Executive Chairman
Mr Loh’s expertise lies in corporate strategy, finance markets, investor relations and capital restructures. Mr
Loh holds a BBA from National University of Singapore and an MBA of Strategic Marketing from the University
of Hull. He is also an Associate of the Institute of Chartered Secretaries and Administrators.
Mr Loh has been appointed to the role of Chairperson. In this role he will further support the Board through
interaction with the Company’s overseas shareholder base, and via evaluation of additional funding and
corporate options to further develop and grow GBM. He has a long and supportive relationship with the
Company as both a shareholder and previously held the role as a Non-Executive Director.
Mr Loh has been appointed as an Executive Chairman of Nova MSC Berhad, a public company listed on Bursa
Malaysia since 1 April 2021.
Mr Loh has held no other directorships of listed companies in the last 3 years.
Peter Rohner – B.Sc (Metallurgy), Grad Dip Applied Finance & Investment
Managing Director
Mr Rohner has over 30 years’ experience in the mining industry. In particular, he has been heavily involved in
mineral process technology development including development of the Jameson flotation cell, IsaMill fine
grinding and, more recently, significant involvement in further development of Glencore’s Albion Process (fine
grind oxidative leach) technology.
Mr Rohner is also currently a Technical Director of the Core Group, which provides metallurgical processing
solutions to its global clients. He is also a director of Stibium Mining Pty Ltd, a private resource company that
previously owned a gold antimony operation in South Africa. In the last 3 years, Mr Rohner was a former
director of Stibium China Holdings Ltd (from October 2018 to August 2021).
Peter Thompson – B.Bus, CPA, FCIS
Non-Executive Director
Mr Thompson is a CPA qualified accountant and Fellow of Governance Institute of Australia. He has over 40
years’ experience in the mining industry in Australia, UK and South America in senior roles with several
international mining companies.
Mr Thompson is an independent non-executive director of Nova MSC Berhad, a Malaysian public company.
Mr Thompson has held no other directorships of listed companies in the last 3 years.
GBM Resources Annual Report 2024
Page | 55
DIRECTORS’ REPORT
COMPANY SECRETARIES
Mr Kevin Hart – B.Comm, FCA
Mr Hart is a Principal in the Company Secretarial and CFO advisory divisions of the Automic Group providing
secretarial support, corporate and compliance advice. He is a Chartered Accountant and was appointed to the
position of Company Secretary on 3 February 2010. He has over 35 years’ experience in accounting and the
management and administration of public listed entities in the mining and exploration industry.
Dan Travers – B.Sc (Hons), FCCA
Mr Travers is a Fellow of the Association of Chartered Certified Accountants and was appointed to the position
of Joint Company Secretary on 19 November 2020. Mr Travers is an employee of Automic Group and has over
25 years experience in company secretarial and accounting roles.
MEETINGS OF DIRECTORS
During the financial year, the following meetings of Directors (including committees) were held:
DIRECTORS’ MEETINGS
Number Eligible to Attend
Number Attended
S Loh
21
21
P Rohner
21
21
P Thompson
21
21
PRINCIPAL ACTIVITIES
The principal activities of the Group during the financial year were exploration in respect of its gold and copper
gold projects in Australia and operation of the White Dam gold copper project. Corporate activities focussed
on various equity raisings and strategic disposals of non-core assets to further the Group’s Drummond Basin
growth strategy.
REVIEW OF OPERATIONS
Exploration
During the year various exploration activities were undertaken and included:
▪
Work continued on the Twin Hills Gold Project consolidating all the historical data sets and
reprocessing significant geophysical data to provide the best information to finalise exploration
targeting which will commence on commencement of the farm-in agreement with Wise Walkers.
▪
Work continued on the Mt Coolon Gold Project farm-in with Newmont with a multifaceted
geophysical, geochemical and geological exploration program being completed in the first half of the
year. Following these programs, data interpretation and target assessment/prioritisation occurred
and two diamond holes were completed. Planning and preparation for an air core drilling program of
up to ~7,000 metres has been completed. Total expenditure for the farm-in to date is approximately
$8.9 million.
▪
Work continued on the Yandan Gold Project consolidating all the historical data sets and reprocessing
significant geophysical data to provide the best information to finalise exploration targeting which will
allow the commencement of a new phase of exploration in 2025.
▪
Work continued on the Cloncurry Copper Gold JV with Nippon Mining Australia, with earlier
geophysical work that led to a drilling campaign at the Mt Margaret tenement (near Ernest Henry). A
program of 12 RC holes for 1,884 metres was completed in May/Jun 2024 with assays to be reported.
GBM Resources Annual Report 2024
Page | 56
DIRECTORS’ REPORT
REVIEW OF OPERATIONS (CONTINUED)
Production – White Dam
During the year, Benagerie Gold & Copper Pty Ltd (BGC) mobilised its mining equipment at site to carry out
activities enabling the treatment of remaining ROM pad material and rehandling/stacking of poorly irrigated
heap leach material to increase gold production. Irrigation of the new reclaimed and stacked mineralised
material occurred in second half of the year with leach solutions indicating an elevated grade being realised
from the drain lines beneath the newly placed material.
Gold production for the year was 425 ounces with 466 ounces being sold during the year ended 30 June 2024.
Corporate
The Group continued with the rationalisation of its tenements and asset divestment with the following
transactions occurring during the financial year:
▪
the Company entered into a farm-in agreement with Syndicated Minerals Pty Ltd (SM) under which
SM can earn up to a 60% interest in selected commodities, such as uranium and rare earth elements,
on certain White Dam exploration licences.
▪
Non-core exploration lease EL 6299 was sold to Havilah Resources Limited for a consideration
including $100,000 cash payment (in stages) along with some development rights to two Havilah
owned prospects (Green and Gold and Wilkins) near White Dam.
▪
the Company entered into a binding Heads of Agreement with Wise Walkers Limited to advance the
Twin Hills Gold Project (Twin Hills) to a decision to mine. Under the agreement, the Company will
receive $6 million in cash consideration and Wise Walkers will fund a further $6 million exploration
over an 18 month period to earn a 70% interest. The Company will also retain a 30% free carried
interest to decision to mine. The $6 million cash consideration includes a $1 million non-refundable
exclusivity fee which was received in the current reporting period.
▪
The Company entered into a conditional term sheet with Olary Gold Mines Limited (Olary) in relation
to the sale of the White Dam gold-copper heap leach project for a total consideration of $2.95 million
in cash and a 1.5% net smelter royalty (capped at $2.5 million). The White Dam project has been
reflected as a discontinued operation in the Consolidated Statement of Profit or Loss and Other
Comprehensive Income and as non-current assets held for sale and liabilities associated with assets
held for sale in the Statement of Financial Position. Refer note 21a.
The Company received approximately $3.8 million from capital raising activities conducted during the year
through the issue of 417,895,236 shares and 208,400,296 unlisted options. An amount of $0.9 million of the
Collins St convertible note was converted via the issue of 100 million shares and 50 million unlisted options.
Operating Results
In the financial year to 30 June 2024, the Group made a net loss after income tax of $5,926,950 (2023:
$2,112,654). The loss included $2,724,652 in relation to the White Dam project (which is classified as a
discontinued operation) and non-cash costs of $939,923 (depreciation and fair value losses).
Financial Position
At the end of the financial year, continuing operations of the Group had $1,600,808 (2023: $1,901,042) in
cash on hand and on deposit. Exploration expenditure incurred for the year on the Group’s wholly owned
projects was $2,572,682, with carried forward exploration and evaluation expenditure totalling $41,765,261
(2023: $45,629,203).
Risk Management
The Company takes a proactive approach to risk management. The Board is responsible for ensuring that risks,
including emerging risks, and also opportunities, are identified on a timely basis and the Company’s objectives
and activities are aligned with the risks and opportunities identified by the Board.
Given the size of the Company and its stage of development all Board members are involved and have
responsibility for management of risk.
GBM Resources Annual Report 2024
Page | 57
DIRECTORS’ REPORT
REVIEW OF OPERATIONS (CONTINUED)
Material business risks
There are inherent risks associated with the exploration for minerals. The Group faces the usual risks
encountered by companies engaged in the exploration, evaluation and development of minerals. The material
business risks for the Group include:
External Risks
Environmental risks
The Company’s operations and projects are subject to the laws and regulations of the
jurisdictions in which it has interests and carries on business (currently Queensland
and South Australia), regarding environmental compliance and relevant hazards.
There is also a risk that the environmental laws and regulations may become more
onerous, making the Group’s operations more expensive which may adversely affect
the financial position and /or performance of the Group. The Directors are not aware
of any environmental law that is not being complied with.
Government
regulations and claims
risks
Changes in law and regulations or government policy may adversely affect the Group’s
operations. There is no guarantee that current or future exploration permit
applications or existing permit renewals will be granted, that they will be granted
without undue delay, or that the Company can economically comply with any
conditions imposed on any granted exploration permits. Loss of permits may
adversely affect the financial position and /or performance of the Group.
Commodity Price and
foreign exchange risk
Volatility in the gold and copper markets will impact the revenues of the Group in
relation to metal sales from the White Dam Project. In addition, fluctuation in
commodity price could impact market sentiment and therefore adversely affect the
ability of the Company to raise capital.
During the year, the Group held investments in companies listed on the TSX and these
securities were impacted by market conditions and the Australian/Canadian dollar
exchange rate.
Cyber risk
The Group uses various IT systems and cloud based software. Should a cyber event
occur, there is a risk of business disruption or data breach that may adversely affect
the financial position and /or performance of the Group.
Climate change risks
The Group may be impacted by climate related risks including reduced water
availability, extreme weather events and changes to legislation and regulation in
relation to climate.
Operating Risks
Exploration and
development risk
The exploration for and development of mineral deposits involve significant risks that
even a combination of careful evaluation, experience and knowledge may not
eliminate. While the discovery of an ore body may result in substantial rewards, not
all exploration activity will lead to the discovery of economic deposits. Major
expenditure may be required to locate and establish Ore Reserves, to establish rights
to mine the ground, to receive all necessary operating permits, to develop
metallurgical processes and to construct mining and processing facilities at a particular
site.
Mineral Resources
The Group’s estimates of Mineral Resources are based on different levels of geological
confidence and different degrees of technical and economic evaluation, and no
assurance can be given that anticipated tonnages and grades will be achieved or could
be mined or processed profitably.
GBM Resources Annual Report 2024
Page | 58
DIRECTORS’ REPORT
In addition to the risks described above, the Group’s ability to successfully develop projects is contingent on
the Group’s ability to fund those projects through debt or equity raisings.
EQUITY SECURITIES ON ISSUE
30 June 2024
30 June 2023
Ordinary fully paid shares
1,156,688,889
615,960,932
Options over unissued shares
314,394,002
106,561,007
Performance Rights over unissued shares
773,762
1,168,262
Subsequent to the end of the financial year, the Company issued no further shares. Total shares on issue at
date of this report are 1,156,688,889.
Options over Ordinary Shares
At the date of this report, there are 314,094,002 unissued shares of the Group under option as follows:
Granted
Expiry Date
Exercise Price
(cents)
Number of options
at 30 June 2024
Number of options at
date of report
September 2020
14 September 2024
21.0
300,000
-
February 2021
11 February 2025
18.0
2,000,000
2,000,000
April 2021
11 February 2025
18.0
1,900,000
1,900,000
December 2021
31 October 2025
18.0
855,000
855,000
November 2022
1 December 2026
6.9
8,000,000
8,000,000
February 2023
7 February 2025
7.5
38,738,706
38,738,706
February 2023
19 February 2027
6.1
4,200,000
4,200,000
February/March2024
5 February 2026
1.5
91,429,098
91,429,098
March/April 2024
15 March 2026
1.5
166,971,198
166,971,198
314,394,002
314,094,002
During the year, 258,400,296 options were issued (comprising of 91,429,098 options exercisable at $0.015,
expiring 5 February 2026; and 166,971,198 options exercisable at $0.015, expiring 15 March 2026). A total of
50,567,051 options were cancelled during the financial year and 250 options were exercised.
Subsequent to 30 June 2024 and up to the date of this report, no options have been issued or exercised and
300,000 unlisted options were cancelled on their expiry date without being exercised.
Performance Rights over Ordinary Shares
During the year ended 30 June 2024, the Company issued 395,000 fully paid ordinary shares on the exercise of
performance rights. No performance rights were issued or cancelled during the reporting period.
Subsequent to 30 June 2024, no performance rights have been issued, exercised or cancelled.
GBM Resources Annual Report 2024
Page | 59
DIRECTORS’ REPORT
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
Other than as stated in the Operational and Financial Review section above, there were no other significant
changes in the state of affairs of the Group during the financial year, not otherwise disclosed in this Directors’
Report or in the Review of Operations.
Other than as stated below, there has not arisen in the interval between the end of the financial year and the
date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the
Directors of the Company to affect substantially the operations of the Group, the results of those operations
or the state of affairs of the Group in subsequent financial years.
▪
On 8 July 2024, the Company announced that it had entered into a conditional term sheet with Olary
Gold Mines Limited in relation to the sale of the White Dam gold-copper heap leach project (White
Dam) for a total consideration of $2.95 million in cash and a 1.5% net smelter royalty (capped at $2.5
million). Currently both parties are working towards completion of the sales transaction. Refer note
21a for further detail.
▪
On 15 July 2024, the Company announced the execution of a binding Heads of Agreement with Wise
Walkers Limited to earn up to a 70% joint venture interest in the Twin Hills Gold Project (Twin Hills)
for a total of A$6 million cash consideration including a non-refundable exclusivity fee of A$1 million.
At the date of this report, A$3 million has been received. In addition, Wise Walkers will sole fund
further exploration of A$6 million over an 18 month period to earn a 70% interest. A full form farm-in
and joint venture agreement is currently being negotiated.
▪
On 27 August 2024, the Company announced that it had entered into an option agreement with
Graphite Plains Pty Ltd in relation to the sale of the Company’s 100% owned Sevastopol Graphite
Prospect in North-West Queensland for a maximum consideration of $1.2 million (if certain milestones
are achieved) and a 1% net smelter royalty applied to graphite product produced.
DIVIDENDS
No dividends were paid during the year and the Directors recommend that no dividends be paid or declared
for the financial year ended 30 June 2024.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
Comments on expected results of the operations of the Company are included in this report under the Review
of Operations.
Disclosure of other information regarding likely developments in the operations of the Company in future
financial years and the expected results of those operations is likely to result in unreasonable prejudice to
the Company. Accordingly, this information has not been disclosed in this report.
ENVIRONMENTAL ISSUES
The Group holds participating interests in a number of exploration tenements. The various authorities granting
such tenements require the tenement holder to comply with the terms of the grant of the tenement and all
directions given to it under those terms of the tenement.
There have been no known breaches of the tenement conditions, and no such breaches have been notified by
any government agencies during the year ended 30 June 2024.
GBM Resources Annual Report 2024
Page | 60
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
The remuneration report is set out in the following manner:
•
Policies used to determine the nature and amount of remuneration
•
Details of remuneration
•
Service agreements
•
Share based compensation
Remuneration Policy
The Board of Directors is responsible for remuneration policies and the packages applicable to the Directors of
the Company. Whilst the broad remuneration policy is to ensure that packages offered properly reflect a
person’s duties and responsibilities and that remuneration is competitive and attracts, retains, and motivates
people of the highest quality, the Board has consciously been focused on conserving the Company’s funds to
ensure the maximum amount is spent on exploration, and this is reflected in the modest level of Director fees.
The policy of the Group is to offer competitive salary packages which provide incentives to Directors and senior
executives and are designed to reward and motivate. Total remuneration for all Non-Executive Directors was
voted on by shareholders, whereby it is not to exceed in aggregate $200,000 per annum. Non-Executive
Directors receive fees agreed on an annual basis by the Board.
At the date of this report, the Company had not entered into any remuneration packages with Directors or
senior executives which include specific performance-based components. Long term and short term incentives,
may be awarded subject to Board discretion.
Details of Remuneration for Directors and Executive Officers
The remuneration of each Director of the Company and relevant executive officers (together known as Key
Management Personnel or KMP) are set out in the table below.
Remuneration levels are competitively set to attract and retain appropriately qualified and experienced
Directors and senior executives. The Board of Directors obtains independent advice when appropriate in
reviewing remuneration packages.
During the year, there were no senior executives who were employed by the Company for whom disclosure
is required.
2024
Short term
Post
Employment
Share Based
Payments
Salary and
fees
Super -
annuation
Options /
shares
Total
Performance Based Payments
as % of remuneration
$
$
$
$
%
Directors
S Loh
48,000
-
-
48,000
-
P Rohner 1
161,720
19,882
12,482
194,084
-
P Thompson
84,000
9,240
-
93,240
-
Total
Directors
293,720
29,122
12,482
335,324
-
1 Share based payments represents the fair value of 656,928 fully paid shares issued on 12 September 2023,
following shareholder approval, in satisfaction of directors fees owing.
GBM Resources Annual Report 2024
Page | 61
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
2023
Short
term
Post
Employment
Share Based
Payments
Salary
and fees
Super -
annuation
Options /
shares
Total
Performance Based
Payments as % of
remuneration
$
$
$
$
%
Directors
P Mullens 1
28,000
-
-
28,000
-
P Rohner
209,285
21,975
184,704
415,964
-
P
Thompson
84,000
8,820
-
92,820
-
S Loh
48,000
-
-
48,000
-
B Cook 2
12,000
-
-
12,000
-
Total
Directors
381,285
30,795
184,704
596,784
-
1 Resigned 30 June 2023.
2 Resigned 30 November 2022.
See disclosure relating to service agreements for further details of remuneration of executive directors.
Director Options
During the year ended 30 June 2024 no options were issued as remuneration.
Key management personnel have the following interests in unlisted options over unissued shares of the
Company.
Name
Balance at
beginning of
the year
Received
during the year
as
Other changes
during the
year1
Balance at the
end of the year
Vested and
exercisable at
30.06.2024
P Rohner
8,516,302
-
23,982,467
32,498,769
32,498,769
S Loh
-
-
2,777,777
2,777,777
2,777,777
1 Net of options acquired through participation in capital raisings and options cancelled during the year.
GBM Resources Annual Report 2024
Page | 62
DIRECTORS’ REPORT
Service Agreements
Remuneration and other terms of employment for Executive Directors are set out in Service Agreements:
Peter Rohner – Managing Director
On 1 July 2023, Mr Rohner entered into a 2 year service agreement with the Company with a base salary
inclusive of statutory superannuation of $254,566 per annum which is subject to annual review. From 1
February 2024, Mr Rohner worked reduced hours with his salary being adjusted accordingly.
The Service agreement contains certain provisions typically found in contracts of this nature. Mr Rohner may
be eligible to receive a short term incentive payment (STIP) in the form of a cash bonus based on achievement
of key performance indicators agreed annually with the Board in advance of each financial year. Any decision
regarding the eligibility to receive a STIP is at the discretion of the Board. Long term incentives in the form of
options or performance rights may be awarded subject to Board discretion and shareholder approval. The
Company may terminate the Service Agreement without cause by providing six months written notice to the
individual or by making a payment in lieu of notice. The Service Agreement may be terminated immediately in
the case of serious misconduct.
Share Based Compensation
At the date of this report the Company has not entered into any agreements with KMP which include
performance based components. Options issued to Directors are approved by shareholders and were not the
subject of an agreement or issued subject to the satisfaction of a performance condition.
Options may be issued to provide an appropriate level of incentive and are a cost effective means given the
Company’s size and stage of development.
Group Performance
In considering the Company’s performance, the Board provides the following indices in respect of the past five
financial years:
2024
2023
2022
2021
2020
(Loss)/profit for the year
attributable to shareholders
($5,926,950) ($2,112,654)
($642,341)
$267,851
($1,198,012)
Closing share price at 30 June
$0.01
$0.022
$0.061
$0.115
$0.080
As a Group focussed on exploration activities, the Board does not consider the loss attributable to shareholders
as one of the performance indicators when implementing Short Term Incentive payments.
In addition to technical exploration success-resource growth, the Board considers the effective management
of safety, environmental and operational matters and successful management, acquisition and consolidation
of high quality projects together with successful management of the Group’s joint venture and farm-in
arrangements and divestment of non-core assets, as more appropriate indicators of management performance
for the financial year.
GBM Resources Annual Report 2024
Page | 63
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
DIRECTORS’ INTERESTS
The relevant interest of each Director in the ordinary shares and options issued by the Company as notified by
the Directors to the Australian Securities Exchange at the date of this report, is set out in the table below.
Ordinary shares
Director
Ordinary shares
held at 1 July 2023
Received during
the year as
remuneration 1
Movement during
the financial year
2
Ordinary Shares
held at 30 June
2024
Ordinary shares
held at the date
of the Directors’
Report
S Loh
6,688,738
-
6,666,666
13,355,404
13,355,404
P Rohner
16,859,379
656,928
51,469,817
68,986,124
68,986,124
P Thompson
7,011,467
-
-
7,011,467
7,011,467
1 Shares received in lieu of accrued director fees.
2 Movement during the year relates to participation in placements and non-renounceable entitlement issue.
Options
Director
Options held at 1
July 2023
Received during
the year as
remuneration
Movement during
the financial year 1
Options held at
30 June 2024
Options held at
the date of the
Directors’ Report
S Loh
-
-
2,777,777
2,777,777
2,777,777
P Rohner
8,516,301
-
23,982,468
32,498,769
32,498,769
P Thompson
-
-
-
-
-
1 Free attaching options issued on participation in placements and non-renounceable entitlement issue less
options cancelled (if applicable).
LOANS TO DIRECTORS AND EXECUTIVES
There were no loans entered into with Directors or executives during the financial year ended 30 June 2024.
OTHER TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
During the year, no transactions occurred with director related entities other than those listed above.
End of Remuneration Report
INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS
During the year, the Company paid an insurance premium to insure certain officers of the Company. The
officers of the Company covered by the insurance policy include the Directors named in this report.
The Directors and Officers Liability insurance provides cover against all costs and expenses that may be incurred
in defending civil or criminal proceedings that fall within the scope of the indemnity and that may be brought
against the officers in their capacity as officers of the Company. The insurance policy does not contain details
of the premium paid in respect of individual officers of the Company. Disclosure of the nature of the liability
cover and the amount of the premium is subject to a confidentiality clause under the insurance policy.
GBM Resources Annual Report 2024
Page | 64
DIRECTORS’ REPORT
Other than the above, the Group has not, during or since the end of the financial year, given an indemnity or
entered an agreement to indemnify, or paid or agreed to pay insurance premiums for the Directors, officers or
auditors of the Company or the controlled entity.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for
the purpose of taking responsibility on behalf of the Company for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under
section 237 of the Corporations Act 2001.
NON-AUDIT SERVICES
No non-audit services were provided by the external auditors in respect of the current or preceding financial
year.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001,
is set out on the following page.
Signed in accordance with a resolution of the Board of Directors.
Dated this 27th day of September 2024
PETER ROHNER
Managing Director
GBM Resources Annual Report 2024
Page | 65
AUDITOR’S INDEPENDENCE DECLARATION
GBM Resources Annual Report 2024
Page | 66
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2024
Consolidated
2024
2023
Note
$
$
Gain on sale of assets
4
6,784
2,122,340
Other revenue
4
83,596
271,579
Interest and finance income
325,013
2,367,774
Interest and finance expenses
(925,521)
(958,839)
Net Interest and finance (expenses)/income
4
(600,508)
1,408,935
Employee expenses
5
(675,794)
(1,050,971)
Consulting and professional services
(367,299)
(425,494)
Exploration expenditure expensed and written off
5
(74,073)
(386,173)
Depreciation and amortisation expenses
5
(155,238)
(187,204)
Foreign exchange gain/(loss)
-
(1,547)
Fair value loss on investments
13
(784,685)
(282,017)
Administration and other expenses
(635,081)
(1,015,477)
(Loss)/profit before income tax
(3,202,298)
453,971
Income tax benefit
6
-
-
(Loss)/profit for the year from continuing operations
(3,202,298)
453,971
Loss for the year from discontinued operations
21a
(2,724,652)
(2,566,625)
Loss for the year
(5,926,950)
(2,112,654)
Other comprehensive income
-
-
Total comprehensive loss for the year
(5,926,950)
(2,112,654)
Cents
Cents
Basic loss per share from continuing operations
7
(0.39)
0.08
Basic loss per share from discontinuing operations
7
(0.34)
(0.45)
Diluted loss per share from continuing operations
7
(0.39)
0.08
Diluted loss per share from discontinuing operations
7
(0.34)
(0.45)
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2024
Page | 67
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT
30 JUNE 2024
Consolidated
2024
2023
Note
$
$
Current assets
Cash and cash equivalents
25
1,600,808
1,901,042
Trade and other receivables
8
92,749
387,495
Prepayments
9
628,809
523,343
Inventories
10
-
299,267
Financial assets
13
15,041
132,512
Assets held-for-sale
21a, b
7,907,680
132,775
Total Current Assets
10,245,087
3,376,434
Non-current assets
Prepayments
9
223,379
1,045,011
Exploration and evaluation expenditure
11
41,765,261
45,629,203
Right-of-use assets
7,050
91,644
Property, plant and equipment
12
468,619
2,749,512
Financial assets
13
-
1,246,392
Bonds and security deposits
14
8,425,883
9,839,106
Total Non-current Assets
50,890,192
60,600,868
TOTAL ASSETS
61,135,279
63,977,302
Current liabilities
Trade and other payables
15
571,536
598,230
Employee leave liabilities
169,942
306,313
Lease liabilities
7,717
97,676
Borrowings
16
3,354
32,276
Provisions
17
-
30,000
Deferred consideration
21c
1,000,000
-
Liabilities associated with assets held for sale
21a
4,957,680
-
Total Current Liabilities
6,710,229
1,064,495
Non-current liabilities
Employee leave liabilities
96,283
128,285
Borrowings
16
6,011,972
7,360,421
Provisions
17
8,924,182
15,068,667
Total Non-current Liabilities
15,032,437
22,557,373
TOTAL LIABILITIES
21,742,666
23,621,868
NET ASSETS
39,392,613
40,355,434
Equity
Issued capital
18
70,858,065
65,878,950
Option capital
193,694
193,694
Accumulated losses
20
(32,516,483)
(26,589,533)
Reserves
20
857,337
872,323
TOTAL EQUITY
39,392,613
40,355,434
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2024
Page | 68
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2024
Note
Issued capital
$
Option capital
$
Accumulated
losses
$
Share based
payment reserve
$
Convertible
note reserve
$
Total
$
Balance at 1 July 2022
62,217,473
977,990
(25,523,814)
773,056
-
38,444,705
Loss attributable to
members of the Company
20
-
-
(2,112,654)
-
-
(2,112,654)
Other comprehensive income
-
-
-
-
-
-
Total comprehensive loss for the year
-
-
(2,112,654)
-
(2,112,654)
Shares issued (net of costs)
18
2,915,961
-
-
-
-
2,915,961
Shares issued in lieu of services
31,325
-
-
-
31,325
Issue of convertible notes
-
-
-
-
110,806
110,806
Issue of options
-
193,694
-
-
-
193,694
Exercise of options/rights
714,191
(9,522)
-
(276,102)
-
428,567
Cancellation of options
(968,468)
1,046,935
(78,467)
-
Vesting of options/rights
-
-
-
343,030
-
343,030
Balance at 30 June 2023
65,878,950
193,694
(26,589,533)
761,517
110,806
40,355,434
Balance at 1 July 2023
65,878,950
193,694
(26,589,533)
761,517
110,806
40,355,434
Loss attributable to
members of the Company
20
-
-
(5,926,950)
-
-
(5,926,950)
Other comprehensive income
-
-
-
-
-
-
Total comprehensive loss for the year
-
-
(5,926,950)
-
(5,926,950)
Shares issued capital raise (net of costs)
18
3,716,028
-
-
-
-
3,716,028
Shares issued in lieu of services/fees
18
313,684
-
-
-
313,684
Shares issued on convertible note
redemption
900,000
900,000
Exercise of options/rights
49,403
-
-
(49,375)
-
28
Vesting of options/rights
-
-
-
34,389
-
34,389
Balance at 30 June 2024
70,858,065
193,694
(32,516,483)
746,531
110,806
39,392,613
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2024
Page | 69
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR
ENDED 30 JUNE 2024
Consolidated
2024
2023
Note
$
$
Cash flows from operating activities
Cash receipts from metal sales
1,697,152
1,304,176
Payments to suppliers and employees
(4,034,869)
(5,028,764)
Interest received
325,171
132,171
Government assistance, grants and tax
incentives
-
146,926
JV management fee income
83,596
107,071
Interest and other costs of finance paid
(223,740)
(658,839)
Net cash flows used in operating activities
25(c)
(2,152,690)
(3,997,259)
Cash flows from investing activities
Payments for bonds and security deposits
(354,236)
-
Refunds of bonds and security deposits
25,818
15,000
Funds provided by JV partner under Farm-in
agreement
780,230
1,222,372
Payments for exploration and evaluation,
including JV Farm-in spend
(3,344,896)
(8,097,965)
Proceeds on sale of tenements
1,050,000
1,210,000
Proceeds on sale of investments
122,178
1,832,409
Proceeds on sale of property, plant and
equipment
18,000
-
Payments to acquire property, plant and
equipment
(42,539)
(30,757)
Net cash flows used in investing activities
(1,745,445)
(3,848,941)
Cash flows from financing activities
Proceeds from the issue of shares
3,827,724
3,070,340
Share issue costs
(83,332)
(154,379)
Proceeds from the issue/exercise of options
-
597,763
Proceeds from loans and borrowings
199,604
228,051
Repayment of loans and borrowings
(231,403)
(260,492)
Proceeds from the issue of convertible notes
-
7,515,174
Redemption of convertible notes
-
(2,000,000)
Repayment of lease liabilities
(89,959)
(83,817)
Net cash flows provided by financing activities
3,622,634
8,912,640
Net (decrease)/increase in cash held
(275,501)
1,066,440
Cash and cash equivalents at the beginning of the
financial year
1,901,042
836,149
Effect of foreign exchange on cash and cash
equivalents
-
(1,547)
Cash and cash equivalents at the end of the
financial year
25(a)
1,625,541
1,901,042
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2024
Page | 70
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
1. STATEMENT OF MATERIAL ACCOUNTING POLICIES
GBM Resources Limited (‘the Company’) is a listed public company domiciled in Australia. The consolidated
financial report of the Company for the financial year ended 30 June 2024 comprises the Company and its
subsidiaries (together referred to as ‘the Group’).
The following is a summary of the material accounting policies adopted by the Group in the preparation of
the financial report. The accounting policies have been consistently applied, unless otherwise stated.
In addition, the Group has adopted amendments made to AASB 101 Presentation of Financial Statements
which require the disclosure of “material” rather than “significant” accounting policies. Although the
amendments did not result in any changes to the accounting policies themselves, they impacted the
accounting policy information disclosed in this note.
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, and Australian Accounting Standards and Interpretations. The
financial report has also been prepared on an historical cost basis, unless otherwise stated. The financial
report is presented in Australian dollars. For the purpose of preparation of the consolidated financial
statements the Company is a for-profit entity.
Going Concern Basis for the Preparation of Financial Statements
The financial statements have been prepared on the going concern basis which contemplates the
continuity of normal business activities and the realisation of assets and discharge of liabilities in the
normal course of business.
As at 30 June 2024, the Group has cash assets of $1,600,808 (2023: $1,901,042), total current assets of
$2,337,407 (2023: $3,376,434) and total current liabilities of $1,752,548 (2023: $1,064,495) excluding
assets held for sale and liabilities associated with such assets. The loss for the 2024 financial year was
$5,926,950 (2023: $2,112,654) and operating and investing cash outflows were $3,898,135 (2023:
$7,846,200). Notwithstanding the fact that the Company incurred an operating loss, the Directors are of
the opinion that the Company is a going concern for the following reasons:
•
Sale of the White Dam gold-copper Project (refer note 21a).
•
Sale and Farm-in agreement for Twin Hills Project.
•
Negotiations for the divestment of certain non-core assets are continuing.
•
The remaining interest payable on the convertible notes has been prepaid.
•
Continued support from the Queensland regulatory bodies regarding future environmental bond
obligations;
•
Expenditure on future exploration activity is largely discretionary and is entirely dependent on
available cash.
The Company is party to a convertible note agreement with Collins St Convertible Notes Pty Ltd (refer note
16) and a requirement under this agreement is that the Group holds a minimum cash balance of $1 million.
The Directors will continue to manage the Group’s activities with due regard to current and future funding
requirements and the minimum cash balance requirement under the convertible note agreement. The
directors reasonably expect that the Company will be able to raise sufficient capital to fund the Group’s
exploration and working capital requirements if required, and that the Group will be able to settle debts
as and when they become due and payable.
The Group’s ability to continue as a going concern and meet future working capital requirements is
dependent on the above points being realised. Should the Company not be successful in generating the
required cash flows, there is a material uncertainty that may cast significant doubt on the Group’s ability
to continue as a going concern and realise its assets and extinguish its liabilities in the normal course of
business and at the amounts stated in the financial statements.
GBM Resources Annual Report 2024
Page | 71
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
1. STATEMENT OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
Adoption of New and Revised Standards - Changes in accounting policies on initial application of
accounting standards
The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations
issued by the Australian Accounting Standards Board (“AASB”) that are mandatory for the current
reporting period. The adoption of these Accounting Standards and Interpretations did not have any
significant impact on the financial performance or position of the Group during the financial year.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have
not been early adopted by the Group for the reporting year ended 30 June 2024. There are no material
new or amended Accounting Standards which will materially affect the Group.
b) Statement of Compliance
The financial report was authorised for issue on 27 September 2024.
The financial report complies with Australian Accounting Standards, which include Australian equivalents
to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial
report, comprising the financial statements and notes thereto, complies with International Financial
Reporting Standards (IFRS).
c) Principles of Consolidation
The consolidated financial statements comprise the financial statements of GBM Resources Limited and
its subsidiaries as at 30 June each year (the Group). The financial statements for the subsidiaries are
prepared for the same reporting period as the parent company, using consistent accounting policies.
In preparing the consolidated financial statements, all intercompany balances and transactions, income
and expenses and profit and losses resulting from intra-group transactions have been eliminated in full.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease to
be consolidated from the date on which the control is transferred out of the Group.
The acquisition of subsidiaries has been accounted for using the purchase method of accounting. The
purchase method of accounting involves allocating the cost of the business combination to the fair value
of the assets acquired and the liabilities and contingent liabilities assumed at the date of acquisition.
Accordingly, the consolidated financial statements include the results of subsidiaries for the period from
their acquisition. Non-controlling interests represent the portion of profit and loss and net assets in
subsidiaries not held by the Group and are presented separately in the consolidated statement of profit or
loss and other comprehensive income and within equity in the consolidated statement of financial
position.
d) Revenue Recognition
Revenue is recognised to the extent that control has passed and it is probable that the economic benefits
will flow to the Group and the revenue can be reliably measured. The following specific recognition
criteria must also be met before revenue is recognised:
Interest Revenue
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield
on the financial asset.
Management Fees
Revenue from farm-in management fees is recognised at the time the fees are invoiced for services
rendered.
Sales of gold and other metals
With the sale of gold bullion, copper concentrate and other metals control is determined to occur when
physical bullion/concentrate from a contracted sale is transferred from the Company’s account into the
account of the buyer. Revenue from gold, copper and other metal sales is recognised at this point.
GBM Resources Annual Report 2024
Page | 72
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
1. STATEMENT OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
e)
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:
•
when the deferred income tax liability arises from the initial recognition of goodwill or of an
asset or liability in a transaction that is not a business combination and that, at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss; or
•
when the taxable temporary difference is associated with investments in subsidiaries, associates
or interests in joint ventures, and the timing of the reversal of the temporary difference can be
controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.
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 credits and
unused tax losses can be utilised, except:
•
when 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
•
when the deductible temporary difference is associated with investments in subsidiaries,
associates or interests in joint ventures, in which case a deferred tax asset is only recognised to
the extent that it is probable that the temporary difference will reverse in the foreseeable future
and taxable profit will be available against which the temporary difference 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 re-assessed at each balance 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.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or
loss. Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set
off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the
same taxable entity and the same taxation authority.
f)
Financing Costs
Net financing costs comprise interest payable on borrowings calculated using the effective interest
method.
Borrowing costs are expensed as incurred and included in net financing costs, where there is no
qualifying asset.
g)
Leases
A lease liability is recognised at the commencement date of a lease. The lease liability is initially
recognised at the present value of the lease payments to be made over the term of the lease, discounted
using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's
incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives
receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid
under residual value guarantees, exercise price of a purchase option when the exercise of the option is
reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that
do not depend on an index or a rate are expensed in the period in which they are incurred.
GBM Resources Annual Report 2024
Page | 73
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
1. STATEMENT OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
Lease liabilities are measured at amortised cost using the effective interest method. The carrying
amounts are remeasured if there is a change in the following: future lease payments arising from a
change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and
termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding
right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.
Right-of-use asset
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is
measured at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date net of any lease incentives received, any initial
direct costs incurred, and, except where included in the cost of inventories, an estimate of costs expected
to be incurred for dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership
of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-
of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-
term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these
assets are expensed to profit or loss as incurred.
h) Property, Plant and Equipment
Property, plant and equipment is stated at cost, less accumulated depreciation and any accumulated
impairment losses. Such cost includes the cost of replacing parts that are eligible for capitalisation when
the cost of replacing the parts is incurred. Similarly, when each major inspection is performed, its cost is
recognised in the carrying amount of the plant and equipment as a replacement only if it is eligible for
capitalisation.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Property and improvements
10 – 40 years
Office furniture and equipment
2.5 - 20 years
Plant and equipment
1 - 40 years
Motor Vehicles
8 years
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if
appropriate, at each financial year end.
(i) Impairment
The carrying values of property, plant and equipment are reviewed for impairment at each reporting
date, with recoverable amount being estimated when events or changes in circumstances indicate that
the carrying value may be impaired.
The recoverable amount of property, plant and equipment is the higher of fair value less costs to sell and
value in use. In assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value of money
and the risks specific to the asset. For an asset that does not generate largely independent cash inflows,
recoverable amount is determined for the cash-generating unit to which the asset belongs, unless the
asset's value in use can be estimated to be close to its fair value.
An impairment exists when the carrying value of an asset or cash-generating units exceeds its estimated
recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount.
GBM Resources Annual Report 2024
Page | 74
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
1. STATEMENT OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
h) Property, Plant and Equipment (continued)
(ii) Derecognition and Disposal
An item of property, plant and equipment is derecognised upon disposal or when no further future
economic benefits are expected from its use or disposal.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset
is de-recognised.
i)
Financial Instruments
Investments and other financial assets are initially measured at fair value. Transaction costs are included
as part of the initial measurement, except for financial assets at fair value through profit or loss. Such
assets are subsequently measured at either amortised cost or fair value depending on their classification.
Classification is determined based on both the business model within which such assets are held and the
contractual cash flow characteristics of the financial asset unless, an accounting mismatch is being
avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been
transferred and the consolidated entity has transferred substantially all the risks and rewards of
ownership. When there is no reasonable expectation of recovering part or all of a financial asset, it's
carrying value is written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are
classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either:
(i)
held for trading, where they are acquired for the purpose of selling in the short-term with an
intention of making a profit, or a derivative; or
(ii)
designated as such upon initial recognition where permitted. Fair value movements are recognised
in profit or loss.
Fair value hierarchy
All assets and liabilities measured at fair value are classified using a three level hierarchy based on the
lowest level of input that is significant to the entire fair value measurement, being Level 1: Quoted prices
(unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date; Level 2: Inputs other than quoted prices included within Level 1 that are observable
for the asset or liability, either directly or indirectly; and Level 3: Unobservable inputs for the asset or
liability. Considerable judgement is required to determine what is significant to fair value and therefore
which category the asset or liability is placed in can be subjective.
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring
basis, depending on the requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability
in an orderly unforced transaction between independent, knowledgeable and willing market participants
at the measurement date and is based on the fair value hierarchy
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which
are either measured at amortised cost or fair value through other comprehensive income. The
measurement of the loss allowance depends upon the Group's assessment at the end of each reporting
period as to whether the financial instrument's credit risk has increased significantly since initial
recognition, based on reasonable and supportable information that is available, without undue cost or
effort to obtain.
GBM Resources Annual Report 2024
Page | 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
1. STATEMENT OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12
month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime
expected credit losses that is attributable to a default event that is possible within the next 12 months.
Where a financial asset has become credit impaired or where it is determined that credit risk has increased
significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of
expected credit loss recognised is measured on the basis of the probability weighted present value of
anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is
recognised within other comprehensive income. In all other cases, the loss allowance is recognised in
profit or loss.
j)
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:
(i)
the rights to tenure of the area of interest are current; and
(ii) at least one of the following conditions is also met:
(a) the exploration and evaluation expenditures are expected to be recouped through successful
development and exploitation of the area of interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in the area of interest have not at the reporting date reached
a stage which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in, or in relation to, the area of
interest are continuing.
Exploration and evaluation assets are 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 amortised of assets used in exploration and evaluation activities. General and
administrative costs are only included in the measurement of exploration and evaluation costs where they
are related directly to operational activities in a particular area of interest.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that
the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The
recoverable amount of the exploration and evaluation asset (for the cash generating unit(s) to which it
has been allocated being no larger than the relevant area of interest) is estimated to determine the extent
of the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of
the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the
increased carrying amount does not exceed the carrying amount that would have been determined had
no impairment loss been recognised for the asset in previous years.
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.
k) Impairment of Assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired.
If any such indication exists, or when annual impairment testing for an asset is required, the Group makes
an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair
value less costs to sell and its value in use and is determined for an individual asset, unless the asset does
not generate cash inflows that are largely independent of those from other assets or groups of assets and
the asset's value in use cannot be estimated to be close to its fair value. In such cases the asset is tested
for impairment as part of the cash-generating unit to which it belongs. When the carrying amount of an
asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is
considered impaired and is written down to its recoverable amount.
GBM Resources Annual Report 2024
Page | 76
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
1. STATEMENT OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
In assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. Impairment losses relating to continuing operations are recognised in those expense
categories consistent with the function of the impaired asset unless the asset is carried at re-valued
amount (in which case the impairment loss is treated as a re-valuation decrease).
An assessment is also made at each reporting date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. If such indication exists, the
recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has
been a change in the estimates used to determine the asset’s recoverable amount since the last
impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its
recoverable amount. That increased amount cannot exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.
Such reversal is recognised in profit or loss unless the asset is carried at re-valued amount, in which case
the reversal is treated as a re-valuation increase. After such a reversal the depreciation charge is adjusted
in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic
basis over its remaining useful life.
l)
Interest Bearing Liabilities
All loans and borrowings are initially recognised at the fair value of the consideration received less directly
attributable transaction costs. After initial recognition, interest-bearing loans and borrowings are
subsequently measured at amortised cost using the effective interest method. Gains and losses are
recognised in profit or loss when the liabilities are de-recognised.
Where borrowings contain a conversion option and the number of shares to be issued is fixed the amount
of borrowing is initially recognised at fair value of a similar liability that does not have an equity
conversion option. The equity conversion feature is the residual. Subsequently the borrowing is measured
at amortised cost and the equity portion is not remeasured.
m) Share Based Payments
Equity Settled Transactions:
The Group provides benefits to employees (including senior executives) of the Group in the form of share
based payments, whereby employees 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
of the equity instruments at the date at which they are granted. The fair value of options is determined
by using a Black and Scholes model. Share rights are valued at the underlying market value of the
ordinary shares over which they are granted unless they contain market conditions in which case such
rights are valued using an appropriate valuation 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 GBM Resources Limited (market conditions) if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity,
over the period in which the performance and/or service conditions are fulfilled, ending on the date on
which the relevant employees become fully entitled to the award (the vesting period).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting
date reflects (i) the extent to which the vesting period has expired and (ii) the Group’s best estimate of
the number of equity instruments that will ultimately vest. No adjustment is made for the likelihood of
market performance conditions being met as the effect of these conditions is included in the
determination of fair value at grant date. The charge or credit to the consolidated statement of profit or
loss and other comprehensive income for a period represents the movement in cumulative expense
recognised as at the beginning and end of that period.
GBM Resources Annual Report 2024
Page | 77
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
1. STATEMENT OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only
conditional upon a market condition. 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, the cumulative expense recognised in respect of that award is
transferred from its respective reserve to accumulated losses. 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 awards are treated as if they were a modification of the original award, as described
in the previous paragraph.
n) Share Capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares
or options are shown in equity as a deduction, net of tax, from the proceeds.
o) Earnings Per Share
Basic earnings/loss per share ("EPS") is calculated by dividing the net profit or loss attributable to
members of the Company for the reporting period, after excluding any costs of servicing equity (other
than ordinary shares and converting preference shares classified as ordinary shares for EPS calculation
purposes), by the weighted average number of ordinary shares of the Company, adjusted for any bonus
element.
Diluted EPS is calculated by dividing the basic EPS earnings, adjusted by the after tax effect of financing
costs associated with dilutive potential ordinary shares and the effect on revenues and expenses of
conversion, by the weighted average number of ordinary shares and potential dilutive ordinary shares,
adjusted for any bonus element.
p) Non-current assets or disposal groups classified as held for sale
Non-current assets and assets of disposal groups are classified as held for sale if their carrying amount will
be recovered principally through a sale transaction rather than through continued use. They are measured
at the lower of their carrying amount and fair value less costs of disposal. For non-current assets or assets
of disposal groups to be classified as held for sale, they must be available for immediate sale in their
present condition and their sale must be highly probable.
An impairment loss is recognised for any initial or subsequent write down of the non-current assets and
assets of disposal groups to fair value less costs of disposal. A gain is recognised for any subsequent
increases in fair value less costs of disposal of a non-current assets and assets of disposal groups, but not
in excess of any cumulative impairment loss previously recognised.
Non-current assets are not depreciated or amortised while they are classified as held for sale. Interest and
other expenses attributable to the liabilities of assets held for sale continue to be recognised.
Non-current assets classified as held for sale and the assets of disposal groups classified as held for sale
are presented separately on the face of the statement of financial position, in current assets. The liabilities
of disposal groups classified as held for sale are presented separately on the face of the statement of
financial position, in current liabilities.
q) Discontinued Operations
A discontinued operation is a component of the Group that has been disposed of or is classified as held
for sale and represents a separate major line of business or geographical area of operations or is part of
a single co-ordinated plan to dispose of such a line of business or area of operations. The results of
discontinued operations are presented separately on the face of the consolidated statement of profit or
loss and other comprehensive income.
GBM Resources Annual Report 2024
Page | 78
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 1: STATEMENT OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
r)
Provision for Restoration and Rehabilitation
A provision for restoration and rehabilitation is recognised when there is a present obligation as a result
of development activities undertaken, it is probable that an outflow of economic benefits will be
required to settle the obligation, and the amount of the provision can be measured reliably. The
estimated future obligations include the costs of abandoning sites, removing facilities and restoring the
affected areas.
The provision for future restoration costs is the best estimate of the present value of the expenditure
required to settle the restoration obligation at the balance date. Future restoration costs are reviewed
annually and any changes in the estimate are reflected in the present value of the restoration provision
at each balance date.
The initial estimate of the restoration and rehabilitation provision is capitalised into the cost of the
related asset and amortised on the same basis as the related asset, unless the present obligation arises
from the production of inventory in the period, in which case the amount is included in the cost of
production for the period. Changes in the estimate of the provision for restoration and rehabilitation are
treated in the same manner, except that the unwinding of the effect of discounting on the provision is
recognised as a finance cost rather than being capitalised into the cost of the related asset.
s)
Parent Entity Financial Information
The financial information for the parent entity, GBM Resources Limited, disclosed in Note 33 has been
prepared on the same basis as the consolidated financial statements, except as set out below.
Investments in subsidiaries, associates and joint venture entities
Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the parent
entity’s financial statements. Dividends received from associates are recognised in the parent entity’s
profit or loss, rather than being deducted from the carrying amount of these investments.
t)
Critical Accounting Estimates and Judgements
Estimates and judgements are continually evaluated and are based on historical experience and other
factors, including expectations of future events that may have a financial impact on the Group and that
are believed to be reasonable under the circumstances.
Accounting for capitalised mineral exploration and evaluation expenditure
The Group’s accounting policy is stated at 1(j). A regular review is undertaken of each area of interest
to determine the reasonableness of continuing to carry forward costs in relation to that area of interest.
Share based payments
The Group uses independent advisors to assist in valuing share based payments.
Estimates and assumptions used in these valuations are disclosed in the notes in periods when these
share based payments are made.
Rehabilitation Provision
A provision has been made for the anticipated costs for future rehabilitation of land explored. The
Group's mining and exploration activities are subject to various laws and regulations governing the
protection of the environment. The consolidated entity recognises management's best estimate for
assets retirement obligations and site rehabilitations in the period in which they are incurred. Actual
costs incurred in the future periods could differ materially from the estimates. Additionally, future
changes to environmental laws and regulations, life of mine estimates and discount rates could affect
the carrying amount of this provision.
GBM Resources Annual Report 2024
Page | 79
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 1: STATEMENT OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
Provision for Royalty
Under the acquisition of the White Dam Project the consideration payable by the Group includes
$2,355,619 of future royalties payable on the JORC resources forming the White Dam Project. The
independent valuation undertaken made a number of assumptions including those on production
parameters, revenue received from production and discount rates. Actual royalties incurred in future
periods could differ materially from the estimate. At 30 June 2024, the provision for royalty is $2,282,223
(note 21a).
White Dam Impairment
An assessment of recoverable amount has been performed in comparison to carrying amount with
reference to prior valuations performed on the assets constituting the CGU and the conditional term
sheet entered into with Olary Gold Mines Limited for the sale of the White Dam Project. An impairment
charge of $687,286 has been recognised against the carrying value of White Dam property, plant and
equipment (refer note 21a).
2. FINANCIAL RISK MANAGEMENT
The Group has exposure to a variety of risks arising from its use of financial instruments. This note presents
information about the Group’s exposure to the specific risks, and the policies and processes for measuring
and managing those risks. Further quantitative disclosures are included throughout this financial report. The
Board of Directors has overall responsibility for the risk management framework.
(a) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its contractual obligations and arises principally from transactions with customers and
investments.
Trade and other receivables
The current nature of the business activity does not result in trading receivables. The receivables that the
Group recognises through its normal course of business are short term in nature and the most significant
(in quantity) is the receivable from the Australian Taxation Office and interest receivable. The risk of non-
recovery of receivables from this source is considered to be negligible.
Cash deposits
The Group’s primary banker is National Bank of Australia. At balance date all operating accounts and funds
held on deposit are with this bank. The Directors believe any risk associated with the use of only one bank
is mitigated by its size and reputation. Except for this matter the Group currently has no significant
concentrations of credit risk.
(b) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Group’s reputation.
The Group manages its liquidity risk by monitoring its cash reserves and forecast spending. Management
is cognisant of the future demands for liquid finance resources to finance the Group’s current and future
operations, and consideration is given to the liquid assets available to the Group before commitment is
made to future expenditure or investment.
GBM Resources Annual Report 2024
Page | 80
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2. FINANCIAL RISK MANAGEMENT (CONTINUED)
(c) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and
equity prices will affect the Group’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising any return.
Currency risk
The Group is not exposed to any currency risk other than the respective functional currencies of each
Company within the Group, the Australian dollar (AUD).
Interest rate risk
The Group is not exposed to significant interest rate risk and no financial instruments are employed to
mitigate risk (Note 23 – Financial Instruments).
Equity price risk
The Group was not exposed to any material equity price risk during the financial year (Note 23 – Financial
Instruments).
(d) Capital management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the business. The Board of Directors monitors capital
expenditure and cash flows as mentioned in (b).
3. SEGMENT REPORTING
Operating segments are identified and segment information disclosed, where appropriate, on the basis of
internal reports reviewed by the Company’s Board of Directors, being the Group’s Chief Operating
Decision Maker, as defined by AASB 8.
The Group has identified its operating segments based on the internal reports that are reviewed and used
by the Board of Directors in assessing performance and determining the allocation of resources.
Reportable segments disclosed are based on aggregating operating segments, where the segments have
similar characteristics. The Group has two operating segments, these being mineral exploration and
resource development within Australia and production of minerals in Australia.
GBM Resources Annual Report 2024
Page | 81
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
3. SEGMENT REPORTING (CONTINUED)
The following tables present revenue and profit information and certain asset and liability information
regarding operating segments.
Mineral
Exploration
Mineral
Production1
Consolidated
30 June 2024
$
$
$
Interest income
325,013
14,180
339,193
Metal sales
-
1,399,090
1,399,090
Other income
90,380
43,927
134,307
Segment income
415,393
1,457,197
1,872,590
Segment expenses
(3,617,691)
(4,181,849)
(7,799,540)
Segment profit/(loss)
(3,202,298)
(2,724,652)
(5,926,950)
Current assets
2,337,407
7,907,680
10,245,087
Non-current assets
50,890,192
-
50,890,192
Current liabilities
(1,752,549)
(4,957,680)
(6,710,229)
Non-current liabilities
(15,032,437)
-
(15,032,437)
Net assets
36,442,613
2,950,000
39,392,613
Acquisitions of non-current assets
734,669
42,539
777,208
1 At 30 June 2024 the White Dam Project was classified as held for sale and all assets and liabilities relating
to the mineral production segment were treated as current in the Statement of Financial Position. Refer to
note 21a for further detail.
GBM Resources Annual Report 2024
Page | 82
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
3. SEGMENT REPORTING (CONTINUED)
Mineral
Exploration
Mineral
Production1
Consolidated
30 June 2023
Interest income
2,367,774
275,441
2,643,215
Metal Sales
-
1,626,372
1,626,372
Other income
2,393,919
-
2,393,919
Segment income
4,761,693
1,901,813
6,663,506
Segment expenses
(4,307,722)
(4,468,438)
(8,776,160)
Segment profit/(loss)
453,971
(2,566,625)
(2,112,654)
Current assets
2,737,834
638,600
3,376,434
Non-current assets
56,458,516
4,142,352
60,600,868
Current liabilities
(737,185)
(327,310)
(1,064,495)
Non-current liabilities
(18,027,607)
(4,529,766)
(22,557,373)
Net assets
40,431,558
(76,124)
40,355,434
Acquisitions of non-current assets
8,213,116
4,030
8,217,146
GBM Resources Annual Report 2024
Page | 83
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Consolidated
2024
2023
Note
$
$
4. INCOME
Included in loss before tax are the following amounts of income:
Gain on disposal of assets:
Gain on disposal of exploration assets - Mayfield
-
274,389
Gain on disposal of exploration assets - Malmsbury
-
1,890,719
Gain on disposal of motor vehicles
18,000
-
Loss on disposal of investments
(11,216)
(42,768)
6,784
2,122,340
Interest and financing income/(expense):
Interest income
325,013
132,171
Discount on rehabilitation provision
(46,484)
2,511,044
Convertible note establishment fee
-
(300,000)
Interest expense – convertible notes
(867,676)
(640,232)
Interest expense – leases
(1,755)
(4,865)
Interest expense – other
(9,606)
(13,742)
Less reclassified as discontinued operations
21a
-
(275,441)
(600,508)
1,408,935
Other Revenue
Joint venture management fee
83,596
107,071
Research and development rebate
-
146,926
Other income
-
17,582
83,596
271,579
GBM Resources Annual Report 2024
Page | 84
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Consolidated
2024
2023
Note
$
$
5. EXPENSES
Employee expenses
Wages and salaries
2,253,729
3,249,137
Directors’ fees
303,965
360,503
Superannuation expense
263,968
336,359
Share based remuneration
27,845
343,030
Contract labour
165,151
-
Other employee costs
157,292
270,075
3,171,950
4,559,104
Less allocated to discontinued operation:
21a
- Employee costs: processing
(1,217,924)
(1,238,067)
- Employee costs: administration
(79,410)
(169,238)
Less allocated to exploration
(1,198,822)
(2,100,828)
Employee benefit expense
675,794
1,050,971
Depreciation expense:
Property and improvements
12
677
2,645
Office equipment and software
12
6,476
37,783
Site equipment
12
44,840
224,153
Motor vehicles
12
18,651
18,650
Buildings
12
-
457,260
Mine properties
12
-
74,155
Right-of-use asset
84,594
84,595
Less reclassified as discontinued operations
21a
(712,037)
155,238
187,204
Other costs:
Exploration costs expensed
74,073
386,173
GBM Resources Annual Report 2024
Page | 85
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Consolidated
2024
2023
$
$
6.
INCOME TAX
a) Tax expense
Current tax expense
-
-
Deferred tax expense
-
-
-
-
b) Numerical reconciliation between tax expense and
pre-tax loss
Loss before income tax from continuing operations
(3,202,298)
453,971
Income tax benefit at 25%
(800,575)
113,493
Increase in income tax due to tax effect of:
Share based payments expense
80,088
89,214
Non-deductible expenses
1,116
321
Current year tax losses not recognised
606,612
-
Current year capital losses not recognised
31,903
290,205
Decrease in income tax due to:
Non-assessable income
-
(36,732)
Capital raising costs claimed
(86,218)
(83,466)
Unused tax losses and temporary differences not
brought to account
167,074
(273,712)
Current year tax losses offset to discontinued
operations
-
(99,323)
Income tax expense attributable to the Group
-
-
c) Deferred tax assets and liabilities
Recognised deferred tax assets and liabilities
Deferred tax assets:
Losses available for offset
against future taxable income
6,616,396
8,954,963
Employee provisions
66,556
108,649
Other provisions and accruals
8,095
939
Royalty provision
3,885
570,556
Rehabilitation assets and liabilities
2,231,046
-
Right of Use assets
167
1,508
Capital raising costs
5,054
7,117
Assets held for sale
1,270,029
-
Other DTAs
316,215
127,571
10,517,443
9,771,303
Set-off deferred tax liabilities:
Exploration and mine properties
(9,855,929)
(8,855,656)
Inventory
-
(21,585)
Rehabilitation assets and liabilities
-
(631,640)
Property, plant and equipment
-
(262,422)
Liabilities associated with assets held for sale
(661,514)
-
(10,517,443)
(9,771,303)
Net deferred tax asset/tax liability
-
-
GBM Resources Annual Report 2024
Page | 86
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Consolidated
2024
2023
$
$
6.
INCOME TAX (CONTINUED)
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 a corporate tax rate of
25%:
Deductible temporary differences
421,141
319,292
Tax revenue losses
10,285,322
6,784,482
Tax capital losses
1,360,387
1,259,887
Total unrecognised deferred tax assets
12,066,850
8,363,661
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.
The potential future income tax benefit will only be obtained if:
I.
the Group derives future assessable income of a nature and an amount sufficient to enable the
benefit to be realised in accordance with Division 170 of the Income Tax Assessment Act 1997;
II.
the Group companies continue to comply with the conditions for deductibility imposed by the
law; and
III.
no changes in tax legislation adversely affect the Group in realising the benefits.
Consolidated
2024
2023
$
$
7. EARNINGS/(LOSS) PER SHARE
(Loss)/profit from continuing operations
(3,202,298)
453,971
Loss from discontinued operations
(2,724,652)
(2,566,625)
Loss for the year
(5,926,950)
(2,112,654)
Cents
Cents
Basic (loss)/profit per share from continuing operations
(0.39)
0.08
Basic loss per share from discontinued operations
(0.34)
(0.45)
Diluted (loss)/profit per share from continuing operations
(0.39)
0.08
Diluted loss per share from discontinued operations
(0.34)
(0.45)
#
#
Weighted average number of shares used in
calculation of basic loss per share
814,397,676
566,089,672
calculation of diluted loss per share
814,397,676
567,427,991
Options and performance share rights
Options and share rights to acquire ordinary shares granted by the Company and not exercised at the
reporting date have been included in the determination of diluted earnings per share to the extent to which
they are dilutive. There are no options or share rights on issue at 30 June 2024 that are considered to be
dilutive.
GBM Resources Annual Report 2024
Page | 87
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Consolidated
2024
2023
$
$
8. TRADE AND OTHER RECEIVABLES
Current
Trade receivables
2,222
387,495
GST recoverable
20,166
-
Other receivables 1
70,361
-
92,749
387,495
1 Refund owing on prepaid convertible note interest.
There is no expected credit loss in relation to the trade and other receivables at the balance date. The
carrying amount of trade and other receivables are assumed to approximate their fair values due to their
short-term nature.
Consolidated
2024
2023
$
$
9. PREPAYMENTS
Current
Prepaid interest 1
619,317
523,343
Other prepaid expenses
9,492
-
628,809
523,343
Non-Current
Prepaid interest
223,379
1,045,011
Total Prepayments
852,188
1,568,354
1 Prepaid interest on convertible note (refer note 16).
Consolidated
2024
2023
$
$
10. INVENTORIES
Gold on hand
-
220,311
Reagents and consumables
-
78,956
-
299,267
GBM Resources Annual Report 2024
Page | 88
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Consolidated
2024
2023
Note
$
$
11. EXPLORATION AND EVALUATION EXPENDITURE
Exploration and evaluation phase:
Capitalised costs at the start of the financial
year
45,629,203
37,442,813
Exploration and evaluation costs incurred
(excluding joint venture costs incurred)
2,572,682
4,912,526
(Decrease)/increase in capitalised
rehabilitation costs
(1,744,096)
3,817,801
Less: costs relating to tenements sold
(19,844)
(282,204)
Less: exploration costs not capitalised
5
(74,073)
(261,733)
Less: transfer to asset held for sale
21(a)
(4,598,611)
-
Capitalised costs at the end of the financial year
41,765,261
45,629,203
Capitalised exploration and evaluation expenditure represents expenditure and acquisition costs incurred by
the Group on its exploration assets. The recoverability of the carrying amount of the exploration and evaluation
assets is dependent upon successful development and commercial exploitation, or alternatively, sale of the
respective areas of interest.
Consolidated
2024
2023
$
$
12. PROPERTY, PLANT AND EQUIPMENT
Carrying values at 30 June:
Property and improvements:
Cost
193,117
193,117
Depreciation
(141,448)
(140,771)
51,669
52,346
Office equipment and software:
Cost
292,758
292,758
Depreciation
(291,224)
(284,748)
1,534
8,010
Site equipment and plant:
Cost
648,244
1,135,616
Depreciation
(324,229)
(456,111)
324,015
679,505
Motor vehicles:
Cost
222,769
279,840
Depreciation
(131,368)
(169,788)
91,401
110,052
Buildings:
Cost
-
2,303,327
Depreciation
-
(529,895)
-
1,773,432
Mine properties:
Cost
-
741,550
Depreciation
-
(210,106)
Impairment
-
(405,277)
-
126,167
Total
468,619
2,749,512
GBM Resources Annual Report 2024
Page | 89
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Consolidated
2024
2023
Note
$
$
12. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Reconciliation of movements:
Property and improvements:
Opening net book value
52,346
54,991
Depreciation
5
(677)
(2,645)
Closing net book value
51,669
52,346
Office equipment and software:
Opening net book value
8,010
45,793
Depreciation
5
(6,476)
(37,783)
Closing net book value
1,534
8,010
Site equipment and plant:
Opening net book value
679,505
912,229
Reclassification
-
(39,327)
Additions
42,539
30,756
Disposals
(44,738)
-
Depreciation
5
(155,171)
(224,153)
Transfer to asset held for sale
21(a)
(198,120)
Closing net book value
324,015
679,505
Motor vehicles:
Opening net book value
110,052
128,702
Depreciation
5
(18,651)
(18,650)
Closing net book value
91,401
110,052
Buildings
Opening net book value
1,773,432
2,191,365
Reclassification
-
39,327
Depreciation
5
(276,875)
(457,260)
Impairment charge
21(a)
(687,286)
-
Transfer to asset held for sale
21(a)
(809,271)
-
Closing net book value
-
1,773,432
Mine properties-Capital Work in Progress:
Opening net book value
126,167
200,322
Depreciation
(74,154)
(74,155)
Transfer to asset held for sale
21(a)
(52,013)
-
Closing net book value
-
126,167
Total
468,619
2,749,512
GBM Resources Annual Report 2024
Page | 90
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Consolidated
2024
2023
$
$
13. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Current
15,041
132,512
Non-current
-
1,246,392
15,041
1,378,904
Balance at the start of the financial year
1,378,904
1,634,642
Investments acquired – Novo 1
-
1,665,493
Investments acquired – C29 2
-
250,000
Disposal of investments
(133,606)
(1,889,214)
Loss on fair value of investment recognised
through profit or loss
(784,685)
(282,017)
Transfer of Novo shares 3
(445,572)
-
Balance at the end of the financial year 4
15,041
1,378,904
1 Fair value of fully paid ordinary shares and warrants received from Novo Resources Corp (Novo), a TSX-V
listed company, as consideration for the remaining 50% of the Malmsbury Project.
2 Fair value of fully paid ordinary shares received from C29 Metals Limited as part consideration for the sale
of the Mayfield Project tenement. The shares have been classified as a current asset.
3 On 24 June 2024, the remaining shares held in Novo were transferred to Collins St Convertible Notes Pty
Ltd. The value of the shares has been offset against the amount owing on the convertible note loan (refer
Note 16). The warrants attached to the shares were retained by the Company
4 Value of Novo warrants.
Investments designated at fair value through profit or loss have been measured at Level 1 in the fair value
hierarchy. Refer to accounting policy at Note 1(i).
14. BONDS AND SECURITY DEPOSITS
Consolidated
2024
2023
$
$
Environmental bonds and security deposits for:
Mount Coolon Gold Project
1,033,068
1,238,000
Yandan Project
5,277,151
5,077,151
White Dam 1
-
1,940,000
Twin Hills
2,023,290
1,467,656
Other
92,374
116,299
8,425,883
9,839,106
1 Transferred to non-current assets held for sale.
GBM Resources Annual Report 2024
Page | 91
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
15. TRADE AND OTHER PAYABLES
Consolidated
2024
2023
$
$
Current
Unspent funds received from farm-in partner
148,103
126,445
Acquisition costs payable1
12,500
12,500
Trade creditors2
172,702
362,485
Sundry creditors and accruals
172,213
21,970
Employee liabilities
66,018
74,802
Share subscription liability
-
28
571,536
598,230
1 Acquisition costs payable to Drummond Gold Limited pursuant to the acquisition of Mt Coolon Gold
Mines Pty Ltd.
2 Trade creditors are non-interest bearing and are normally settled on 30 day terms.
16. BORROWINGS
Consolidated
2024
2023
$
$
Current
Secured loan 1
3,354
32,276
Non-Current
Secured loan 1
-
2,877
Convertible note liability 2
6,011,972
7,357,544
6,011,972
7,360,421
Total Borrowings
6,015,326
7,392,697
Movement in Borrowings:
Secured loan
Balance at the start of the financial year
35,153
67,594
Principal and Interest repayments
(31,799)
(32,441)
Balance at the end of the financial year
3,354
35,153
Convertible note
Balance at the start of the financial year
7,357,544
-
Proceeds from drawdown
-
10,000,000
Amounts classified as equity
-
(110,806)
Partial redemption of note
(900,000)
(2,531,650)
Partial redemption - Novo share transfer
(445,572)
-
Balance at the end of the financial year
6,011,972
7,357,544
1 The Company has entered into loan agreements to finance vehicles/mobile equipment at the White Dam
project. The loans have a term of 3 years and are secured over the assets financed, which have a net book
value of $64,366 at 30 June 2024 (30 June 2023: $77,172).
2 The Company entered into a convertible note agreement with Collins St Convertible Notes Pty Ltd during
the prior period for funding of up to $10,000,000 via the issue of two convertible notes each with a face
value of $5,000,000. Each note is due for repayment 3 years after its issue date.
GBM Resources Annual Report 2024
Page | 92
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
16. BORROWINGS (CONTINUED)
Interest on the convertible notes is calculated at 10.5% per annum and is paid monthly in advance for the
first 12 months from issue date. The remainder of the interest due has been prepaid and is classified as
Prepayments on the Statement of Financial Position (refer note 9).
The outstanding face value of the notes is convertible at any time by the holder into fully paid ordinary
shares in the capital of the Company. During the financial year, shareholders approved an amendment to
the terms of the convertible notes to allow a change in the conversion price from approximately $0.06 to
$0.02. In addition, shareholders approved $900,000 of the convertible note debt to be converted into equity
via the issue of 100,000,000 Shares (at an issue price of $0.009) and 50,000,000 free attaching Options.
The convertible notes are secured by way of a mortgage over property of Mt Coolon Gold Mines Pty Ltd
(which holds the Twin Hills and Mt Coolon Gold Projects) and Straits Gold Pty Ltd (which holds the Yandan
Gold Project). The Group is required to maintain a minimum cash balance of $1,000,000.
The Company has granted the noteholder a first-ranking security interest over the shares the Company held
in Novo Resources Corp. These shares were transferred to the noteholder on 24 June 2024 and the value of
the shares has been offset against the amount owing to the note holder.
The value of the notes has been split between the financial liability and an equity component, representing
the residual attributable to the option to convert the financial liability into equity, based on a discount rate
of 11.2%.
Consolidated
2024
2023
Note
$
$
17. PROVISIONS
Current
Royalty provision1
-
30,000
Non-Current
Rehabilitation provision2
8,924,182
12,816,444
Royalty provision1
-
2,252,223
8,924,182
15,068,667
Current year movement in Provisions:
Rehabilitation
$
Royalty
$
Balance at the start of the financial year
12,816,444
2,282,223
Additional provisions recognised
-
12,961
Partial release of provision
(1,744,096)
-
Unwinding of discount
32,462
-
Transfer to liabilities associated with assets
held for sale 3
(2,180,628)
(2,295,184)
Balance at the end of the financial year
8,924,182
-
1 Provision for royalty payments on the acquisition of the White Dam gold-copper Project.
2 At 30 June 2023, the value of the rehabilitation provision for the Yandan project was recognised at $9.67
million which represented the Estimated Rehabilitation Cost (ERC) as advised by the Department of
Environment and Science (DES). The Group appealed the DES’ calculations with the Land Court of Queensland
and in November 2023 a decision was agreed by the parties and handed down with an amount of the ERC
being $7.91 million.
3 Reclassified as liabilities associated with assets held for sale. Refer to Note 21.
The present value of the provision for future rehabilitation costs was reassessed during the reporting period.
The effect of discounting the provision amounts to $46,484 (for continuing operations) and is recognised in
the Statement of Profit or Loss and Other Comprehensive Income as financing income.
GBM Resources Annual Report 2024
Page | 93
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Issue
price
2024
No.
2023
No.
2024
$
2023
$
18. ISSUED CAPITAL
Issued capital at the balance
date
1,156,688,889
615,960,932
70,858,065
65,878,950
Movements in issued capital:
Balance at the start of the
year
615,960,932
522,928,466
65,878,950
62,217,473
Share placement
$0.054
-
25,269,262
-
1,364,540
Share placement
$0.050
-
6,100,000
-
305,000
Share placement
$0.027
3,703,704
51,881,485
100,000
1,400,800
Share Entitlement Offer
$0.009
414,191,532
-
3,727,724
-
Shares in lieu of payment for
services1
21,780,543
918,869
301,202
31,325
Shares in lieu of director fees2
656,928
-
12,482
-
Shares issued on redemption
of convertible note
100,000,000
-
900,000
-
Shares on exercise of options
250
8,380,893
28
654,816
Shares on exercise of rights
395,000
481,957
49,375
59,375
Share issue costs
-
-
(111,696)
(154,379)
Balance at the end of the reporting year
1,156,688,889
615,960,932
70,858,065
65,878,950
1 2024: Shares issued to consultants at agreed issued prices.
2023: Shares issued at 3.41 cents per share to a consultant and employee in lieu of cash payment for
services.
2 Fair value of shares issued to P Rohner at a deemed price of 1.9 cents per share as payment in lieu for
accrued salaries.
The Company’s shares are limited whereby the liability of its members is limited to the amount (if any)
unpaid on the shares respectively held by them. Ordinary shares entitle the holder to participate in
dividends and the proceeds on winding up of the Company in proportion to the number of and amounts
paid on the shares held. On a show of hands every holder of ordinary shares present at a meeting in
person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.
Ordinary shares have no par value. There is no limit to the authorised share capital of the Company.
GBM Resources Annual Report 2024
Page | 94
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
19. OPTIONS
Details of the Company’s Incentive Option Scheme are provided at Note 22.
2024
No.
2023
No.
(a)
Options over unissued shares
Options on issue at the balance date
314,394,002
106,561,007
Movements in options:
Options on issue at the start of the year
106,561,007
120,696,052
Lapsed during the year
(50,567,051)
(56,692,858)
Issued to directors
-
8,000,000
Options issued 1
258,400,296
38,738,706
Options issued pursuant to the employee incentive plan (Note 22)
-
4,200,000
Options exercised
(250)
(8,380,893)
Options on issue at the end of the reporting year
314,394,002
106,561,007
1 2024: Unlisted free-attaching options issued pursuant to a placement and entitlement offer. The options
are exercisable at 1.5 cents each and expire 2 years after issue date.
2023: Unlisted options issued pursuant to a Priority Option Offer. The options are exercisable at 7.5 cents
each and expire 2 years after issue date.
(b)
Option capital
Consolidated
2024
2023
$
$
Opening balance
193,694
977,990
Issue of options
-
193,694
Exercise of options
-
(9,522)
Cancellation of options
-
(968,468)
Closing balance
193,694
193,694
GBM Resources Annual Report 2024
Page | 95
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Consolidated
2024
2023
$
$
20. RESERVES AND ACCUMULATED LOSSES
Accumulated losses
Opening balance
(26,589,533)
(25,523,814)
Transfer from option reserve on expiry of options
-
1,046,935
Net loss attributable to the members of the Company
(5,926,950)
(2,112,654)
Closing balance
(32,516,483)
(26,589,533)
Share based payments reserve
Opening balance
761,517
773,056
Vesting expense of options/rights
34,389
343,030
Options/rights exercised during the year
(49,375)
(276,102)
Options cancelled during the year
-
(78,467)
Closing balance
746,531
761,517
Share based payments reserve
The share based payments reserve represents the fair value of vested equity instruments issued as
remuneration or consideration.
Convertible note reserve
Opening balance
110,806
-
Issue of convertible notes
-
110,806
Closing balance
110,806
110,806
Convertible note reserve
The convertible note reserve represents the residual value of the fair value of a compound financial
instrument after deducting the fair value of the liability.
GBM Resources Annual Report 2024
Page | 96
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
21. NON-CURRENT ASSET DIVESTMENTS
a) White Dam Project – Asset Held For Sale and Discontinued Operation
On 8 July 2024, the Company reported that it had entered into a conditional term sheet with Olary Gold Mines
Limited (Olary) in relation to the sale of the White Dam gold-copper heap leach project (White Dam). The
Company further announced on 27 August 2024 that the minimum funding condition precedent had been met
by Olary to allow completion to occur by 15 October 2024.
Under the terms of the sale of the White Dam agreement, Olary has agreed to purchase the issued capital of
direct wholly-owned subsidiary Millstream Resources Pty Limited and wholly owned subsidiaries Polymetals
Operations Pty Ltd, Polymetals (White Dam) Pty Ltd Exco Operations (SA) Pty Limited and Exco Resources (SA)
Pty Ltd, the group of companies that hold and operate White Dam.
Consideration for the sale comprises:
•
$0.95 million cash payable prior to 31 July 2024 or a later date as mutually agreed;
•
$1 million cash payable 12 months from the Completion Date;
•
$1 million cash payable 24 months from the Completion Date; and
•
1.5% net smelter royalty paid quarterly in arrears for all Au and Ag production at White Dam to a
maximum of $2.5 million
As a result of the sale, the assets and liabilities of the White Dam subsidiaries are classified as assets held for
sale and liabilities associated with assets held for sale and financial performance as a discontinued operation.
2024
2023
$
$
Assets classified as held for sale
Cash and cash equivalents
24,733
-
Trade and other receivables
71,858
-
Inventories
213,074
-
Exploration and evaluation
4,598,611
-
Property, plant and equipment
1,059,404
-
Bonds and security deposits
1,940,000
-
Total assets classified as held for sale
7,907,680
-
Liabilities associated with assets held for sale
Trade and other payables
261,205
-
Employee leave liabilities
220,663
-
Provisions
4,475,812
-
Total liabilities associated with assets held for sale
4,957,680
-
2024
2023
$
$
Cashflow Information
Net cash used in operating activities
(1,005,716)
(1,859,996)
Net cash used investing activities
(228,598)
(129,378)
Net cash from financing activities1
1,241,910
2,000,405
Increase/(decrease) in net cash from discontinued
operations
7,596
11,031
1 Loan from parent.
GBM Resources Annual Report 2024
Page | 97
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
21. NON-CURRENT ASSET DIVESTMENTS
2024
2023
$
$
Financial Performance Information
Revenue from metal sales
1,399,090
1,626,372
Gain on sale of assets
(137,191)
-
Other revenue
43,927
-
Interest and finance income
14,180
275,441
Processing expenses
(2,288,934)
(3,267,569)
Royalty expenses
(79,327)
(117,618)
Employee expenses
(79,410)
(169,238)
Share based payments to suppliers
(250,000)
-
Depreciation and amortisation expenses
(461,362)
(712,037)
Impairment of property, plant and equipment1
(687,286)
-
Administration and other expenses
(198,339)
(201,976)
Loss before income tax
(2,724,652)
(2,566,625)
Income tax benefit
-
-
Other comprehensive income
-
-
Total comprehensive loss for the year from discontinued
operations
(2,724,652)
(2,566,625)
1 AASB 5 Non-current Assets Held for Sale and Discontinued Operations requires a non-current asset held
for sale to be measured at the lower of carrying value and fair value less costs to sell. An impairment charge
of $687,286 has been recognised during the financial year, thereby reducing the carrying value of White
Dam to $2.95 million, this being the value of consideration to be received on sale of the project.
b) Sale White Dam Tenement-Prior Year
The Group entered into a sale agreement with Havilah Resources Limited (ASX: HAV) for the sale of non-
core White Dam exploration lease EL6299 for a cash consideration of $100,000 along with some
development rights to two Havilah owned prospects Green and Gold and Wilkins. Capitalised exploration
expenditure of $132,775 had been transferred to assets held-for-sale at the end of the prior financial year.
c) Twin Hills Farm-In
On 15 July 2024, the Company announced the execution of a binding Heads of Agreement with Wise
Walkers Limited to earn up to a 70% joint venture interest in the Twin Hills Gold Project (Twin Hills) for a
total of A$6 million cash consideration. In June 2024, a non-refundable exclusivity fee of A$1 million (which
forms part of the A$6 million consideration) was received and has been treated as deferred consideration
on the Statement of Financial Position.
22. SHARE BASED PAYMENTS
The Company’s Incentive Option Plan and Incentive Performance Rights Plan (“Plan”) were adopted and
approved by Shareholders on 7 September 2023. Details of the Plans, under which performance rights and
options are issuable to employees, directors and consultants are summarised below. Details of share rights
and options issued to Directors and executives are set out in the Remuneration Report that forms part of
the Directors’ Report.
Incentive Options
Options are granted free of charge and are exercisable at a fixed price in accordance with the terms of the
grant. Options over unissued shares are issued under the terms of the Plan at the discretion of the Board.
GBM Resources Annual Report 2024
Page | 98
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
22. SHARE BASED PAYMENTS (CONTINUED)
Options granted during the year
During the reporting period no unlisted options were issued under the Plan.
The fair value of options is apportioned over the vesting period of the options. A total expense of $8,244
has been recognised in the condensed consolidated statement of profit or loss and other comprehensive
income for the financial year in respect of options vesting during the period.
A total of 258,400,296 unquoted free attaching options were issued pursuant to a placement and a non-
renounceable pro rata entitlement offer.
Options exercised and cancelled during the year
During the year no unlisted employee options were exercised or cancelled. A total of 50,567,051 quoted
options lapsed without exercise on the expiry date and 250 quoted options were exercised during the year.
Options on issue under the plan at balance date
The number of options issued under the Plan and outstanding over unissued ordinary shares at 30 June
2024 is 17,255,000 as follows.
Grant date
Exercise price
Expiry date
Balance at 30 June
Vested and
Exercisable at 30 June
15 Sep 20
$0.21
14 Sep 24
300,000
300,000
12 Feb 21
$0.18
11 Feb 25
2,000,000
2,000,000
29 Apr 21
$0.18
11 Feb 25
1,900,000
1,900,000
9 Dec 21
$0.18
15 Oct 25
855,000
570,000
30 Nov 22
$0.069
1 Dec 26
8,000,000
8,000,000
20 Feb 23
$0.061
19 Feb 27
4,200,000
4,200,000
In addition to the incentive options listed above, at 30 June 2024 there are a further 38,738,706 unquoted
priority offer options (expiry 7 February 2025), 91,429,098 unquoted placement options (expiry 5 February
2026) and 166,971,198 unquoted entitlement offer options (expiry 15 March 2026) on issue.
Subsequent to balance date
Subsequent to the end of the financial year, no Plan options were issued, exercised or cancelled.
GBM Resources Annual Report 2024
Page | 99
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
22. SHARE BASED PAYMENTS (CONTINUED)
Reconciliation of movement of options
Set out below is a summary of options granted under the plan:
2024
2023
No.
WAEP
(cents)
No.
WAEP
(cents)
Options outstanding at the start
of the year
17,255,000
9.7
14,935,000
9.6
Options granted during the year
-
-
12,200,000
6.6
Options exercised during the year
-
-
(8,000,000)
5.0
Options cancelled during the year
-
-
(1,880,000)
9.0
Options outstanding at the end of
the year
17,255,000
9.7
17,255,000
9.7
Weighted average contractual life
The weighted average contractual life for un-exercised options is 23.6 months (2023: 35.6 months).
Performance Rights
Movements during the year
During the reporting period 395,000 performance rights vested and were exercised, with 395,000 ordinary
shares being issued on exercise. No performance rights were granted or cancelled during the year.
The fair value of performance rights is apportioned over the vesting period of the rights with a total
expense of $26,145 being recognised in the consolidated statement of profit or loss and other
comprehensive income during the year.
Subsequent to balance date
Subsequent to balance date, no performance rights were granted, vested, exercised or cancelled.
GBM Resources Annual Report 2024
Page | 100
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
23. FINANCIAL INSTRUMENTS
Credit risk
The Directors do not consider that the Group’s financial assets are subject to anything more than a
negligible level of credit risk, and as such no disclosures are made (note 2(a)).
Impairment losses
The Directors do not consider that any of the Group’s financial assets are subject to impairment at the
reporting date. No impairment expense or reversal of impairment charge has occurred during the reporting
period.
Liquidity risk
The following are the contractual maturities of financial liabilities, including estimated interest payments
and excluding the impact of netting agreements (note 2(b)):
Consolidated
Carrying
amount
Contractu
al cash
flows
6 months
or less
6-12
months
1-2
years
2-5
years
More
than 5
years
$
$
$
$
$
$
$
30 June 2024
Borrowings
6,015,326
6,015,497
3,525
-
5,000,00
0
1,011,972
-
Leases
7,717
7,717
7,717
-
-
-
-
Trade and other payables
571,536
571,536
571,536
-
-
-
-
6,594,579
6,594,750
582,778
-
5,000,00
0
1,011,972
-
30 June 2023
Borrowings
7,392,697
7,768,102
281,770
14,457
3,525
7,468,350
-
Lease liabilities
97,676
99,215
45,672
45,894
7,649
-
-
Trade and other payables
598,230
598,230
598,230
-
-
-
-
8,088,603
8,465,547
925,672
60,351
11,174
7,468,350
-
GBM Resources Annual Report 2024
Page | 101
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
23. FINANCIAL INSTRUMENTS (CONTINUED)
Interest rate risk
At the reporting date the interest profile of the Group’s interest-bearing financial instruments were:
Consolidated
2024
2023
$
$
Fixed rate instruments:
Financial liabilities
(6,023,043)
(7,490,373)
(6,023,043)
(7,490,373)
Variable rate instruments:
Financial assets
1,600,808
1,901,042
1,600,808
1,901,042
The Group is not materially exposed to interest rate risk on its variable rate investments.
Fair values
Fair values versus carrying amounts
The carrying amounts of financial assets and liabilities not measured at fair value on a recurring basis, as
described in the consolidated statement of financial position represent their estimated net fair value.
24. COMMITMENTS
(a) Exploration
The Group has certain obligations to perform minimum exploration work on mineral leases held. These
obligations may vary over time, depending on the Group’s exploration programmes and priorities. As at
balance date, total exploration expenditure commitments on tenements held by the Group have not been
provided for in the financial statements. These obligations are also subject to variations by farm-out
arrangements or sale of the relevant tenements.
Minimum expenditure requirements for the following 12 months on the Group’s exploration licences as
at 30 June 2024, including licences subject to farm-in arrangements are approximately $4,220,000 (2023:
$4,240,000).
(b) Environmental Bonds
The Queensland State Government has a Financial Provisioning Scheme (FPS) to assist with managing
environmental and rehabilitation obligations. Estimated Rehabilitation Costs (ERC) as advised by the
Department of Environment and Science (DES) for the Yandan, Twin Hills, and Mount Coolon Gold Projects
were re-assessed during the period, resulting in an increase of environmental bonds due of approximately
$3.2 million.
GBM Resources Annual Report 2024
Page | 102
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
(c)
Lease Commitments
During the financial year, premises in Victoria were leased on a month by month basis or under short term
leases of 12 months or less. The Group has availed itself of the exemption in AASB 16 Leases to not
capitalise these leases. An amount of $8,355 (2023: $7,777) has been expensed in relation to short term
leases.
Consolidated
2024
2023
$
$
25. NOTES TO THE STATEMENT OF CASH FLOWS
a) Reconciliation of cash recorded in Statement of Financial Position to Statement of Cash Flows
Cash at bank and on hand
1,600,808
1,901,042
Cash and cash equivalents classified as
held for sale
24,733
-
Balance as per Statement of Cash Flows
1,625,541
1,901,042
b) Cash available for specific use
Included in cash and cash equivalents at 30 June 2024 is $507,744 relating to cash calls received in advance
from farm in and joint venture partners. These funds are for specific use on tenements covered under the
Cloncurry Joint Venture agreements.
Consolidated
2024
2023
$
$
c)
Reconciliation
of
Profit/(loss)
from
Ordinary Activities after Income Tax to
Net Cash Used in Operating Activities
Loss after income tax
(5,926,950)
(2,112,654)
Add (less) non-cash items:
(Loss)/Gain on sale of assets
130,407
(2,122,340)
Share based payments-employees
27,845
343,030
Share based payments-suppliers
250,000
-
Depreciation and impairment expenses
616,600
899,241
Fair value loss/(gain) on financial assets
784,685
282,017
Exploration expenditure written off,
expensed and impaired
74,073
386,173
Impairment of property, plant and
equipment
687,286
-
Non-cash interest and finance costs
687,760
(2,211,044)
Changes in assets and liabilities:
Increase/(decrease) in trade creditors
and other payables
138,462
(68,550)
Decrease in inventories
86,193
750,680
Decrease/(increase) in sundry
receivables
290,949
(143,812)
Net cash flows used in operations
(2,152,690)
(3,997,259)
GBM Resources Annual Report 2024
Page | 103
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
25. NOTES TO THE STATEMENT OF CASH FLOWS (continued)
Consolidated
2024
2023
$
$
d) Reconciliation of changes in borrowings arising from financing activities
Convertible note
Opening Balance
7,357,544
-
Net cash from financing activities
-
5,515,174
Non-cash redemption (note 16)
(1,345,572)
Allocated to prepaid interest
-
1,568,354
Other adjustments
-
274,016
Closing balance
6,011,972
7,357,544
Consolidated
2024
2023
$
$
26. AUDITOR’S REMUNERATION
Amounts received or receivable by HLB Mann
Judd for:
-
Audit and review of financial reports
83,243
99,925
2024
%
2023
%
27. CONTROLLED ENTITIES
Particulars in Relation to Ownership of Controlled Entities
Belltopper Hill Pty Ltd
100
100
Syndicated Resources Pty Ltd
100
100
Willaura Minerals Pty Ltd
100
100
Isa Brightlands Pty Ltd
100
100
Isa Tenements Pty Ltd
100
100
Mt Morgan Metals Pty Ltd (formerly Koala Quarries Pty Ltd)
100
100
Mt Coolon Gold Mines Pty Ltd
100
100
Millstream Resources Pty Ltd
100
100
Straits Gold Pty Ltd
100
100
Polymetals Operations Pty Ltd
100
100
Polymetals (White Dam) Pty Ltd
100
100
Exco Operations (SA) Pty Limited
100
100
Exco Resources (SA) Pty Ltd
100
100
Balances and transactions between the Company and its subsidiaries, which are related parties of the
Company, have been eliminated on consolidation and not disclosed in the note. Details of transactions between
the Group and other related parties are disclosed in note 29.
GBM Resources Annual Report 2024
Page | 104
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
28. KEY MANAGEMENT PERSONNEL DISCLOSURES
a) Details of Key Management Personnel
The following were key management personnel of the Group at any time during the year and unless
otherwise stated were key management personnel for the entire year.
Non-Executive Director
Guan Huat Sunny Loh – Non-Executive Director
Peter Thompson – Non-Executive Director
Executive Directors
Peter Rohner – Managing Director
Total remuneration paid to key management personnel during the year:
Consolidated
2024
2023
$
$
Short-term benefits
293,720
381,285
Post-employment benefits
29,122
30,795
Share based payments
12,482
184,704
335,324
596,784
b) Other Transactions and Balances with Key Management Personnel
There are no other transactions with Directors, or Director related entities or associates, other than
those reported in note 28 and note 29.
Consolidated
2024
2023
$
$
29. RELATED PARTY TRANSACTIONS
a) Total amounts receivable and payable from entities
in the wholly-owned group (see Note 27 for details
of controlled entities) at balance date:
Non-Current Receivables
Loans to controlled entities
44,978,083
41,286,012
Non-Current Payables
Loans from controlled entities
3,946,115
3,946,115
b) Transactions with Directors
During the year, other than the payment of directors’ fees, there were no transactions with director
related entities and at 30 June 2024, there was no amount owing to director related entities.
GBM Resources Annual Report 2024
Page | 105
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
30. DIVIDENDS
There are no dividends paid or payable during the year ended 30 June 2024 or the 30 June 2023 comparative
year.
31. EVENTS SUBSEQUENT TO BALANCE DATE
Other than as stated below, there has not arisen in the interval between the end of the financial year and the
date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the
Directors of the Company to affect substantially the operations of the Group, the results of those operations
or the state of affairs of the Group in subsequent financial years.
•
On 8 July 2024, the Company announced that it had entered into a conditional term sheet with Olary Gold
Mines Limited in relation to the sale of the White Dam gold-copper heap leach project (White Dam) for a
total consideration of $2.95 million in cash and a 1.5% net smelter royalty (capped at $2.5 million).
Currently both parties are working towards completion of the sales transaction (refer note 21(a) for
further detail). Furthermore, on 27 August 2024 the Company announced that Olary and its funding
parties confirmed that they had secured the minimum funding requirement under the term sheet to allow
completion by 15 October 2024.
•
On 15 July 2024, the Company announced the execution of a binding Heads of Agreement with Wise
Walkers Limited to earn up to a 70% joint venture interest in the Twin Hills Gold Project (Twin Hills) for a
total of A$6 million cash consideration including a non-refundable exclusivity fee of A$1 million. At the
date of this report, A$3 million has been received. In addition, Wise Walkers will sole fund further
exploration of A$6 million over an 18 month period to earn a 70% interest. The Company will also retain
a 30% free carried interest to decision to mine. A full form farm-in and joint venture agreement is currently
being negotiated.
•
On 27 August 2024, the Company announced that it had entered into an option agreement with Graphite
Plains Pty Ltd in relation to the sale of the Company’s 100% owned Sevastopol Graphite Prospect in North-
West Queensland for a maximum consideration of $1.2 million (if certain milestones are achieved) and a
1% net smelter royalty applied to graphite product produced.
32. CONTINGENCIES
(i)
Contingent liabilities
The Group has no contingent liabilities outstanding at the end of the year.
(ii)
Native Title and Aboriginal Heritage
Native title claims have been made with respect to areas which include tenements in which the Group has
an interest. The Group is unable to determine the prospects for success or otherwise of the claims and, in
any event, whether or not and to what extent the claims may significantly affect the Group or its projects.
Agreement is being or has been reached with various native title claimants in relation to Aboriginal
Heritage issues regarding certain areas in which the Group has an interest.
(iii) Contingent assets
There were no material contingent assets as at 30 June 2024 or 30 June 2023.
GBM Resources Annual Report 2024
Page | 106
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2024
2023
$
$
33. PARENT ENTITY INFORMATION
Financial position
Assets
Current assets
2,337,076
2,593,394
Non-current assets 1
44,916,346
45,913,812
Total Assets
47,253,422
48,507,206
Liabilities
Current liabilities
(1,752,554)
(618,884)
Non-current liabilities
(6,108,255)
(7,532,888)
Total Liabilities
(7,860,809)
(8,151,772)
NET ASSETS
39,392,613
40,355,434
Equity
Issued capital
70,858,065
65,878,950
Option capital
193,694
193,694
Accumulated losses
(32,516,483)
(26,589,533)
Share based payment reserve
857,337
872,323
TOTAL EQUITY
39,392,613
40,355,434
Financial performance
Loss for the year
(5,926,950)
(3,611,157)
Other comprehensive income
-
-
Total comprehensive loss
(5,926,950)
(3,611,157)
1 The Company has recognised a provision against the investment in subsidiary holdings to the extent that
parent company net assets exceed those of the Group.
Contingent liabilities
For full details of contingent liabilities see Note 32.
Commitments
For full details of commitments see Note 24.
GBM Resources Annual Report 2024
Page | 107
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
Entity Name
Entity Type
Place
Formed/
Country
of
Incorporation
Ownership
Interest %
Tax
Residency
GBM Resources Limited
Body corporate
Australia
N/A
Australia
Belltopper Hill Pty Ltd
Body corporate
Australia
100%
Australia
Syndicated Resources Pty Ltd
Body corporate
Australia
100%
Australia
Willaura Minerals Pty Ltd
Body corporate
Australia
100%
Australia
Isa Brightlands Pty Ltd
Body corporate
Australia
100%
Australia
Isa Tenements Pty Ltd
Body corporate
Australia
100%
Australia
Mt Morgan Metals Pty Ltd
Body corporate
Australia
100%
Australia
Mt Coolon Gold Mines Pty Ltd
Body corporate
Australia
100%
Australia
Millstream Resources Pty Ltd
Body corporate
Australia
100%
Australia
Straits Gold Pty Ltd
Body corporate
Australia
100%
Australia
Polymetals Operations Pty Ltd
Body corporate
Australia
100%
Australia
Polymetals (White Dam) Pty Ltd
Body corporate
Australia
100%
Australia
Exco Operations (SA) Pty Limited
Body corporate
Australia
100%
Australia
Exco Resources (SA) Pty Ltd
Body corporate
Australia
100%
Australia
All entities are members of the GBM Resources Limited consolidated tax group.
GBM Resources Annual Report 2024
Page | 108
DIRECTORS’ DECLARATION
FOR THE YEAR ENDED 30 JUNE 2024
1.
In the opinion of the Directors:
a.
a)
the accompanying financial statements and notes are in accordance with the
Corporations Act 2001 including:
i.
giving a true and fair view of the Group’s financial position as at 30 June 2024 and
of its performance for the year then ended; and
ii.
complying with Accounting Standards and Corporations Regulations 2001.
b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable.
c)
the financial statements and notes are in accordance with International Financial Reporting
Standards issued by the International Accounting Standards Board.
d)
the information disclosed in the Consolidated Entity Disclosure Statement is true and correct.
b.
2.
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 2001 for the financial year ended
30 June 2024.
This declaration is made in accordance with a resolution of the Board of Directors.
PETER ROHNER
Managing Director
Dated this 27th day of September 2024
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INDEPENDENT AUDITOR’S REPORT
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INDEPENDENT AUDITOR’S REPORT
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INDEPENDENT AUDITOR’S REPORT
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INDEPENDENT AUDITOR’S REPORT
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INDEPENDENT AUDITOR’S REPORT
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ASX ADDITIONAL INFORMATION
Pursuant to the Listing Rules of the Australian Securities Exchange Limited, the shareholder information set out
below was applicable as at 4 October 2024.
a. Distribution of Equity Securities
Quoted Shares (GBZ)
Range
Number of Holders
Securities Held
% Held
1 – 1,000
63
15,859
0.00%
1,001 – 5,000
127
498,302
0.04%
5,001 – 10,000
164
1,266,915
0.11%
10,001 – 100,000
496
21,020,618
1.82%
100,001 and over
472
1,133,887,195
98.03%
Total
1,322
1,156,688,889
100.00%
There are 725 shareholders holding less than a marketable parcel of shares.
b. Substantial Shareholders
An extract of the Company’s register of Substantial Shareholders (who hold 5% or more of the issued capital)
is set out below:
Shareholder
Shares Held
% of Issued Capital
Collins St Asset Management and associated entities
190,441,153
16.46%
Wise Walkers Limited
111,111,111
9.61%
Peter Rohner
68,896,124
5.96%
c. Twenty Largest Holders – Ordinary Shares (GBZ)
Shareholder
Shares Held
% of Issued
Capital
Citicorp Nominees Pty Limited
126,485,055
10.94%
Wise Walkers Limited
111,111,111
9.61%
Sandhurst Trustees Ltd
100,000,000
8.65%
Bell Potter Nominees Ltd
62,274,488
5.38%
Syndicate Minerals Pty Ltd
44,549,722
3.85%
Mr Michael Piperoglou
42,796,378
3.70%
BNP Paribas Nominees Pty Ltd
35,577,541
3.08%
Straits Mineral Investments Pty Ltd
33,129,629
2.86%
Verrierdale Investments Pty Ltd
31,285,923
2.70%
Mr Peter Rohner + Ms Fiona Jane Murdoch
29,540,826
2.55%
Sandhurst Trustees Ltd
28,166,666
2.44%
Mr Thomas Lloyd Hodge
21,764,370
1.88%
Day Livin Pty Ltd
18,871,238
1.63%
CBH Corp Pty Ltd
16,091,432
1.39%
Blaikie Pty Ltd
14,500,000
1.25%
Mr Binh Thanh Le
13,099,461
1.13%
Beatons Creek Gold Pty Ltd
11,363,637
0.98%
Longru Zheng
8,871,860
0.77%
HSBC Custody Nominees (Australia) Limited
8,838,435
0.76%
Mullens Family Super Fund Pty Ltd
8,334,333
0.72%
Total
766,652,105
66.28%
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P a g e | 115
ASX ADDITIONAL INFORMATION
d. Unquoted Securities
Details of Security
Securities on
Issue
Number of
Holders
Options (exercisable at $0.18 expiring 11 February 2025)
3,900,000
10
Options (exercisable at $0.18 expiring 31 October 2025)
855,000
1
Options (exercisable at $0.075 expiring 7 February 2025)
38,738,706
150
Options (exercisable at $0.069 expiring 1 December 2026)
8,000,0003
1
Options (exercisable at $0.061 expiring 19 February 2027)
4,200,000
7
Options (exercisable at $0.015 expiring 5 February 2026)
91,429,0981
127
Options (exercisable at $0.015 expiring 15 March 2026)
166,971,1982
26
Performance Rights expiring 26 August 2025
378,262
5
Performance Rights expiring 31 October 2025
395,000
1
Information on holders of >20% interest included in classes of unquoted securities (excluding issued pursuant to
employee incentive schemes):
1 includes 44,509,350 options (48.68%) held by Wise Walkers Limited.
2 includes 50,000,000 options (29.95%) held by Sandhurst Trustees Limited .
3 all options in this class of securities held by Mr Peter Rohner.
e. Voting Rights
In accordance with the Company’s Constitution, voting rights in respect of ordinary shares are on a show of
hands whereby each member present in person or by proxy shall have one vote and upon a poll, each share
will have one vote.
f. Restricted Securities
The Company has no securities subject to voluntary escrow on issue.