ANNUAL
REPORT
2023
ABN 63 616 317 778
CONTENTS
CORPORATE DIRECTORY
DIRECTORS' REPORT
AUDITOR’S INDEPENDENCE DECLARATION
REVIEW OF OPERATIONS
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR’S REPORT
SHAREHOLDER INFORMATION
ADDITIONAL INFORMATION FOR PUBLIC LISTED COMPANIES
2
3
13
15
24
25
26
27
28
65
66
74
76
CORPORATE DIRECTORY
DIRECTORS
SHARE REGISTRY
Mr Adrian Byass
Non-Executive Chairman
Automic Pty Ltd
Level 5, 191 St Georges Terrace, Perth WA 6000
Mr Anthony James
Managing Director / Chief Executive Officer
AUDITORS
Mr Alexander Molyneux
Non-Executive Director
Mr Stewart Howe
Non-Executive Director
Mr Neville Gardiner
Non-Executive Director
COMPANY SECRETARY
Ms Aida Tabakovic
CORPORATE OFFICE
PKF Perth
Level 5, 35 Havelock Street, West Perth WA 6005
LEGAL ADVISORS
King & Wood Mallesons
Level 30, QV1 Building,
250 St Georges Terrace
Perth WA 6000
Steinepreis Paganin
Level 4, The Read Buildings
16 Milligan Street
Perth WA 6000
Level 2, 1100 Hay Street, West Perth, WA 6005
PO Box 297, West Perth, WA 6872
Website: www.galenamining.com.au
STOCK EXCHANGE LISTING - ASX Code: G1A
REGISTERED OFFICE
COUNTRY OF INCORPORATION AND DOMICILE
Level 8, London House, 216 St Georges Terrace,
Perth WA 6000
Australia
Galena Mining Limited | Annual Report 2023
2
DIRECTORS’ REPORT
Your directors present the following report on Galena Mining Limited and its controlled entities (“Galena”, the
“Company” or “Group”) for the year ended 30 June 2023.
DIRECTORS
The names and details of the Company’s directors in office during the financial year and until the date of this report
are set out below. Directors were in office for this entire period unless otherwise stated.
Adrian Byass
Anthony James
Alexander Molyneux
Stewart Howe
Neville Gardiner
Non-Executive Chairman
Managing Director / Chief Executive Officer
Non-Executive Director
Non-Executive Director
Non-Executive Director
COMPANY SECRETARY
Stephen Brockhurst held office as Company Secretary since the start of the financial year until 11 January 2023.
Aida Tabakovic was appointed Company Secretary on 11 January 2023.
COMMITTEE ROLES AND MEMBERSHIP
The role of the audit and risk committee is to assist the Board in monitoring and reviewing any matters of significance
affecting financial reporting and compliance. The role of the remuneration committee is to assist the Board in
monitoring and reviewing any matters of significance affecting the remuneration of the Board and employees of the
Company.
Members acting on the committees of the Board during the year are set out below.
Audit and Risk Committee
Stewart Howe - Chairman
Neville Gardiner
Adrian Byass
PRINCIPAL ACTIVITIES
Remuneration Committee
Neville Gardiner - Chairman
Stewart Howe
Adrian Byass
Since listing on the ASX on 7 September 2017 the Company has continued to focus on development, construction
and production ramp-up of the Abra Base Metals Mine (“Abra” or the “Project”), together with early-stage
exploration works at Abra and other mineral prospects within the Group’s portfolio.
OPERATING RESULTS
The Group incurred a loss for the financial year ended 30 June 2023 of $61,181,994 (2022: $9,325,687).
A detailed operating review of the Group is set out on pages 15 to 22 of this report under the section entitled
“Review of Operations”.
FINANCIAL POSITION
As at 30 June 2023 the Group had a cash balance of $19,342,915 (2022: $48,219,668) and a net asset position of
$101,829,435 (2022: $126,668,961).
DIVIDENDS PAID OR RECOMMENDED
No dividends have been paid, and the directors do not recommend the payment of a dividend for the financial year
ended 30 June 2023.
Galena Mining Limited | Annual Report 2023
3
DIRECTORS’ REPORT
CORPORATE GOVERNANCE STATEMENT
The Company has disclosed
www.galenamining.com.au.
its corporate governance statement on
the Company website at
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
In the opinion of the directors, there were no other significant changes in the state of affairs of the Group that
occurred during the year not otherwise disclosed in this report or in the financial report.
CORPORATE
As at the date of this report, the following shares and options were on issue.
Ordinary Shares
Fully Paid Ordinary Shares
Performance Rights
No.
752,568,687
Performance rights expiring on 9 November 2023
Performance rights expiring on 13 August 2024
Performance rights expiring on 8 March 2027
6,500,000
1,200,000
5,500,000
Share Appreciation Rights
17 cents expiring on 21 January 2024
24 cents expiring on 1 September 2025
815,000
1,400,000
SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
On 7 August 2023, Galena Mining Ltd announced an update to its JORC Code 2012 Mineral Resources Estimate
(refer ASX announcement dated 7 August 2023). Details of this update is set out in this report under “Review of
Operations”.
On 18 August 2023, the Company announced the high-grade drilling results received after the data cut-off
associated with the 2023 Mineral Resource Estimate which was released on 7 August 2023 (refer ASX
announcement dated 18 August 2023).
No other matter or circumstance has arisen since the end of the audited period which significantly affected or may
significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group
in future financial periods.
Galena Mining Limited | Annual Report 2023
4
DIRECTORS’ REPORT
INFORMATION ON DIRECTORS
The names of directors who held office during or since the end of the financial year until the date of this report are
as follows. Directors were in office for this entire period unless otherwise stated.
Mr Adrian Byass, BSc Geol Hons, B Econ, FSEG and MAIG
Non-Executive Chairman
Mr Byass has over 25 years’ experience in the mining and minerals industry. This experience has principally been
gained through evaluation and development of mining projects for a range of base, precious and specialty metals
and bulk commodities. Due to his experience in resource estimation and professional association membership, Mr
Byass is a competent person for reporting to the ASX for certain minerals. Mr Byass has also gained experience
in corporate finance, capital raising, permitting and delivery of production-ready mining projects.
Mr Byass is a non-executive chairman of Kaiser Reef Limited (ASX: KAU), Infinity Lithium Corporation Limited
(ASX: INF), and non-executive director of Sarama Resources Limited (ASX: SRR).
Interest in Shares and Options (at the date of this report)
- 13,250,000 fully paid ordinary shares.
- 220,000 share appreciation rights exercisable at $0.17 expiring on 21 January 2024.
- 135,000 share appreciation rights exercisable at $0.24 expiring on 1 September 2025.
Anthony James, BEng (Min) AWASM, FAusIMM
Managing Director / Chief Executive Officer
Mr James has over 30 years’ mine operating and project development experience predominantly in WA. He joined
Galena on 15 October 2018 as a non-executive director before becoming Managing Director / Chief Executive
Officer on 16 June 2021. Mr James has had previous experience at Managing Director level of three ASX listed
companies with two of those companies successfully guided through a merger and takeover process to the benefit
of the shareholders. He has strong mine operating background (examples being the Kanowna Belle Gold Mine and
the Black Swan Nickel Mine) and a strong feasibility study / mine development background (examples being the
Pillara Zinc/Lead Mine and the Trident/Higginsville Gold Mine).
Interest in Shares and Options (at the date of this report)
- 3,245,000 fully paid ordinary shares.
- 220,000 share appreciation rights exercisable at $0.17 expiring on 21 January 2024.
- 200,000 share appreciation rights exercisable at $0.24 expiring on 1 September 2025.
- 5,500,000 contingent performance rights which may convert into shares upon the achievement of various
milestones.
Alexander Molyneux, BEc, GradDipMinExplGeoSc
Non-Executive Director
Mr Molyneux is a metals and mining industry executive and financier with 20-years industry experience. He joined
Galena on 1 September 2018.
Prior to Galena, Mr Molyneux was CEO of Paladin Energy Limited (ASX: PDN) (2015 – 2018) one of the world’s
largest uranium companies, where he optimised its operating business and completed a US$700M successful
recapitalisation of the company and a re-listing on the ASX. Prior to that, Mr Molyneux spent approximately five-
years with Ivanhoe Mines Group and Ivanhoe Energy in various leadership capacities including as CEO and
Director of SouthGobi Resources Ltd. (TSX: SGQ) (2009 – 2012).
Mr Molyneux currently serves on a number of public company boards, including: Metalla Royalty & Streaming Ltd
(TSX-V / NYSE: MTA), Tempus Resources Ltd (ASX: TMR, TSX-V: TMRR) and Comet Resources Ltd (ASX:
CRL).
Galena Mining Limited | Annual Report 2023 5
DIRECTORS’ REPORT
INFORMATION ON DIRECTORS (continued)
Prior to his mining industry executive and director roles, Mr Molyneux was Managing Director, Head of Metals and
Mining Investment Banking, Asia Pacific for Citigroup. As a specialist resources investment banker, he spent
approximately 10-years providing investment banking services to natural resources companies. Mr Molyneux holds
a bachelor’s degree in Economics from Monash University and a Graduate Diploma in Mineral Exploration and
Geoscience from Curtin University (WA School of Mines).
Interest in Shares and Options (at the date of this report)
- 17,050,000 fully paid ordinary shares.
- 6,500,000 contingent performance rights which may convert into shares upon the achievement of various
milestones.
Stewart Howe, BE (Chem), ME (Mining), MAppFin, FAICD, FAusIMM
Non-Executive Director
Mr Howe brings over 40 years’ experience in the global resources industry including the last 20 years in mining.
He spent 6 years as Chief Development Officer of Zinifex Limited, one of the world’s largest miners and smelters
of lead/zinc, where he directed the spin-off of Zinifex’s smelters to create Nyrstar N.V. and restarted development
of Dugald River Mine now owned by MMG.
During the past 14 years Mr Howe has provided advisory roles to boards, private equity and financiers related to
restructuring and acquisition of mining assets in base metals and bulk commodities. Mr Howe is an experienced
director, currently serving as an executive director of ASX-listed Kaiser Reef Limited (ASX: KAU) and chairing the
board of Whittle Consulting Group.
Interest in Shares and Options (at the date of this report)
- 723,092 fully paid ordinary shares.
- 135,000 share appreciation rights exercisable at $0.24 expiring on 1 September 2025.
Neville Gardiner, BBus (Accounting & Business Law)
Non-Executive Director
Mr Gardiner has over 30 years’ experience in advising private and public sector clients. His experience includes
being the founding partner of Torridon Partners a leading independent corporate advisory firm based in Perth,
Western Australia which merged with Deloitte in 2016. He also served five years as Head of the Australian Natural
Resources Team at Bank of America Merrill Lynch and nine years with Macquarie Bank including responsibility for
its Western Australian Corporate Finance business and its Australian Oil and Gas Advisory business.
Prior to Macquarie, Neville specialised in Corporate Tax advice for eight years with Arthur Andersen. Neville’s
transaction experience details a strong history of public and private market mergers, acquisitions, divestments, and
company financing over an extensive period. This experience includes the natural resources, agricultural and
energy sectors.
Interest in Shares and Options (at the date of this report)
- 700,000 fully paid ordinary shares.
Galena Mining Limited | Annual Report 2023 6
DIRECTORS’ REPORT
INFORMATION ON OTHER MANAGEMENT
Craig Barnes, BCom, BAcc (Hons), CA
Chief Financial Officer
Mr Barnes is a chartered accountant with more than 25 years’ experience in senior finance and financial
management within the mining industry and previously the financial services industry. Mr Barnes has considerable
experience in project financing, mergers and acquisitions, joint ventures, treasury and implementation of
accounting controls and systems. He joined Galena on 12 August 2019.
Before joining Galena, Mr Barnes held the position of Chief Financial Officer of Paladin Energy Limited (ASX: PDN)
for more than 5 years and was part of the team that successfully completed the company’s capital restructuring in
2018. Prior to that, he was the Chief Financial Officer of DRDGOLD Limited (NYSE and JSE: DRD) and its affiliated
subsidiaries for more than 7 years where he played a key role in the successful transformation of the company
from an underground miner with two ultra-deep underground operations into a profitable tailings retreatment
business.
Interest in Shares and Options (at the date of this report)
- 800,000 fully paid ordinary shares.
- 200,000 share appreciation rights exercisable at $0.24 expiring on 1 September 2025.
- 1,200,000 contingent performance rights which may convert into shares upon the achievement of various
milestones.
Aida Tabakovic, BBus, GradDipBus(Law)
Company Secretary (appointed 11 January 2023)
Miss Tabakovic has over 11 years’ experience in the accounting profession. Her experience includes financial
accounting reporting, company secretarial services, ASX and ASIC compliance requirements. Miss Tabakovic has
been involved in listing a number of junior exploration companies on the ASX and is currently Company Secretary
for numerous ASX listed companies.
Stephen Brockhurst, BCom
Company Secretary (resigned 11 January 2023)
Mr Brockhurst has over 20 years’ experience in the finance and corporate advisory industry and has been
responsible for the preparation of the due diligence process and prospectuses on a number of initial public offers.
His experience includes corporate and capital structuring, corporate advisory and company secretarial services,
capital raising, ASX and ASIC compliance requirements.
Mr Brockhurst has served on the board and acted as Company Secretary for numerous ASX listed companies. He
is currently a Director of Locksley Resources Limited (ASX: LKY) and Company Secretary of Kaiser Reef Limited,
Kingfisher Mining Ltd, Heavy Minerals Limited and Estrella Resources Limited.
Galena Mining Limited | Annual Report 2023 7
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
The remuneration report, which forms part of the Directors' Report, outlines the remuneration arrangements in place
for key management personnel (“KMP”) who are defined as those persons having the authority and responsibility
for planning and directing the major activities of the Company, directly and indirectly, including any director (whether
executive or otherwise).
Remuneration Philosophy
The performance of the Company depends on the quality of the Company's Directors, executives and employees
and therefore the Company must attract, motivate and retain appropriately qualified industry personnel.
Remuneration policy
Remuneration levels for the executives are competitively set to attract the most qualified and experienced
candidates, taking into account prevailing market conditions and the individual's experience and qualifications.
The Remuneration and Nomination Committee is responsible for assisting the Board with determining and
reviewing remuneration arrangements for the executive and non-executive Directors.
The remuneration of Non-Executive Directors is not dependent on the satisfaction of performance conditions.
Remuneration and share based payments are issued to align Directors' interest with that of shareholders.
Non-Executive Directors Remuneration
All Non-Executive Directors are entitled to receive $67,500 per annum (exclusive of statutory superannuation) for
their roles as Directors of the Company. The Chairman receives $100,000 per annum (exclusive of statutory
superannuation).
The Company's Constitution provides that the remuneration of Non-Executive Directors will not be more than the
aggregate fixed sum determined by a general meeting. Before a determination is made by the Company in a general
meeting, the aggregate sum of fees payable by the Company to the Non-Executive Directors is a maximum of
$500,000 per annum. Summary details of remuneration of the Non-Executive Directors are provided in the table
below. Other than performance rights issued when a Non-Executive Director was previously an Executive Director,
the remuneration is not dependent on the satisfaction of a performance condition.
Directors are entitled to be paid reasonable travelling, accommodation and other expenses incurred in
consequence of their attendance at meetings of Directors and otherwise in the execution of their duties as Directors.
A Director may also be paid additional amounts as fees or as the Directors determine where a Director performs
extra services or makes any special exertions, which in the option of the Directors are outside the scope of the
ordinary duties of a Director.
Other Executives / Non-Executive Remuneration
Mr Anthony James
Managing Director / Chief Executive Officer
Mr James’ engagement terms are governed by an Executive Employment Agreement. The terms of agreement
can be terminated by either party providing six months written notice. Mr James is entitled to receive a salary of
$470,000 per annum (exclusive of statutory superannuation). Mr James is also entitled to receive 7,500,000
performance rights, which will convert into shares upon the achievement of various milestones expiring five years
from their grant date.
Mr Alexander Molyneux
Non-Executive Director
Mr Molyneux’s engagement terms are governed by a Director Appointment Letter and a Consultant Appointment
Letter. The consultant engagement can be terminated by either party providing three months written notice. Mr
Molyneux is entitled to receive Director and Consulting Fees of US$10,000 per month. Mr Molyneux is also entitled
to receive 16,500,000 performance rights, which will convert into shares upon the achievement of various
milestones expiring on 9 November 2023.
Galena Mining Limited | Annual Report 2023 8
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
Mr Craig Barnes
Chief Financial Officer
Mr Barnes’ employment conditions are governed by an Executive Employment Agreement. The terms of agreement
can be terminated by either party providing three months written notice. Mr Barnes is entitled to receive a salary of
$385,000 per annum (exclusive of statutory superannuation). Mr Barnes is also entitled to receive 2,000,000
performance rights, which will convert into shares upon the achievement of various milestones expiring on
13 August 2024.
The remuneration for key management personnel of the Company during the 2023 and 2022 financial years was
as follows:
Short-term Benefits
Post-
employment
Benefits
Share-
based
Payments
Cash fees
and salary
$
STI
payments
$
Year
Termination
payments
$
Super-
annuation
$
Options /
Rights
(vi)
$
Total
$
Share-based
Payments as a
percentage of
Remuneration
%
Performance
Related
%
Non-Executive
Directors
Adrian Byass
Stewart Howe
2023
2022
Alexander Molyneux (i) 2023
2022
2023
2022
2023
2022
Jonathan Downes (iii) 2023
2022
2023
2022
Sub-Total Non-
Executive Directors
Neville Gardiner (ii)
Executive Directors
Anthony James
2023
2022
Alexander Molyneux (i) 2023
2022
Sub-Total Executive 2023
2022
Directors
110,500
95,000
187,830
-
67,500
60,221
67,500
47,178
-
15,221
433,330
217,620
456,667
450,000
-
332,220
456,667
782,220
Other KMP
Craig Barnes (iv)
Troy Flannery (v)
396,543
2023
360,000
2022
-
2023
51,667
2022
396,543
Sub-Total Other KMP 2023
2022
411,667
2023 1,286,540
2022 1,411,507
TOTAL
-
-
-
-
-
-
-
-
-
-
-
-
216,459
-
-
-
216,459
-
184,014
-
-
-
184,014
-
400,473
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,088
6,022
7,088
4,718
-
1,522
14,176
12,262
-
-
632,366
-
-
-
-
-
-
-
110,500
95,000
820,196
-
74,588
66,243
74,588
51,896
-
16,743
632,366 1,079,872
229,882
-
25,292
23,568
-
-
25,292
23,568
674,542 1,372,960
779,506
305,938
-
-
832,624
500,404
674,542 1,372,960
806,342 1,612,130
-
-
-
205,680
-
205,680
-
205,680
829,228
223,379
25,292
571,488
187,920
23,568
-
-
-
263,239
-
5,892
829,228
223,379
25,292
29,460
834,727
187,920
64,760 1,530,287 3,282,060
994,262 2,676,739
65,290
-
-
77.10
-
-
-
-
-
-
-
49,13
39.25
-
60.10
26.94
32.88
-
-
-
-
77.10
-
-
-
-
-
-
-
49.13
39.25
-
60.10
26.94
32.88
-
-
(i)
(ii)
(iii)
(iv)
(v)
(vi)
Mr Molyneux is currently a Non-Executive Director, prior to this in FY2022 he was an Executive Director.
Mr Gardiner was appointed as a Non-Executive Director on 20 October 2021.
Mr Downes resigned as a Non-Executive Director on 29 October 2021.
Mr Barnes received a higher duties allowance as Acting CEO of Abra Mining Pty Ltd during FY2023.
Mr Flannery resigned on 20 August 2021.
The fair value of options or rights were calculated at grant date using the Black-Scholes option pricing model and
recognised over the vesting period. These amounts have not actually been paid during the year and the fair value
is not related to or indicative of the benefit (if any) that key management personnel may ultimately receive.
Galena Mining Limited | Annual Report 2023 9
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
Options and Rights Over Equity Instruments Granted as Compensation
Details of options and rights over ordinary shares in the Company that were granted as compensation to key
management personnel during the 2023 and 2022 financial years:
Director/Key
Management
Personnel
Anthony James
KMP Shareholdings
Number
Granted
Grant Date
Fair Value
Exercise
Price
Expiry Date
Number
Vested
7,500,000
02/03/2022
$0.1751
N/A
02/03/2027
2,000,000
The number of ordinary shares in Galena Mining Limited held by each KMP of the Company during the financial
year is as follows:
30 June 2023
Adrian Byass
Anthony James
Balance at
beginning of
period
12,550,000
Issued on
exercise of
options
during the
period
Other changes
during the
period
Balance at
end of period
-
700,000
13,250,000
365,000
2,000,000
880,000
3,245,000
Alexander Molyneux
8,000,000
2,500,000
6,250,000
16,750,000
Stewart Howe
Neville Gardiner
Craig Barnes
536,425
100,000
-
-
-
800,000
186,667
600,000
-
723,092
700,000
800,000
21,551,425
5,300,000
8,616,667
35,468,092
KMP Share Appreciation Rights Holdings
The number of share appreciation rights held during the year by each KMP of the Company is as follows:
30 June 2023
Balance at
beginning of
period
Granted
during the
period
Exercised
during the
period
Other
changes
during the
period
Balance at
end of
period
Vested
during the
period
Vested and
exercisable
Vested and
unexercisable
Adrian Byass
Anthony James
Stewart Howe
355,000
420,000
135,000
-
-
-
Craig Barnes
200,000
-
1,110,000
-
KMP Performance Rights Holdings
-
-
-
-
-
-
-
-
-
-
355,000
45,000
310,000
420,000
135,000
66,667
45,000
353,333
90,000
200,000
66,667
133,333
1,110,000
223,334
886,666
-
-
-
-
-
The number of performance rights held during the year by each KMP of the Company is as follows:
30 June 2023
Alexander Molyneux
Balance at
beginning of
period
9,000,000
Anthony James
7,500,000
Craig Barnes
2,000,000
18,500,000
End of Remuneration Report
Granted
during the
period
-
-
-
-
Exercised
during the
period
(2,500,000)
(2,000,000)
(800,000)
(5,300,000)
Other
changes
during the
period
Balance at
end of
period
6,500,000
5,500,000
1,200,000
-
-
-
- 13,200,000
Vested
during the
period
Vested and
exercisable
Vested and
unexercisable
-
-
-
-
-
-
-
-
-
-
-
-
Galena Mining Limited | Annual Report 2023 10
DIRECTORS’ REPORT
MEETING OF DIRECTORS
During the period, 6 director’s meetings were held. Attendance by each director during the period were as follows:
Director’s Meetings
Number eligible to attend Director’s meetings attended
Mr Adrian Byass
Mr Alexander Molyneux
Mr Anthony James
Mr Stewart Howe
Mr Neville Gardiner
6
6
6
6
6
6
6
6
6
6
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES
Further information, other than as disclosed in this report, about likely developments in the operations of the
Company and the expected results of those operations in future periods has not been included in this report as
disclosure of this information would be likely to result in unreasonable prejudice to the Group.
ENVIRONMENTAL ISSUES
The operations and proposed activities of the Group are subject to State and Federal laws and regulations
concerning the environment. As with most exploration projects and mining operations, the Group’s activities are
expected to have an impact on the environment, particularly if advanced exploration or field development proceeds.
It is the Group’s intention to conduct its activities to the highest standard of environmental obligation, including
compliance with all environmental laws. In this regard, the Department of Minerals and Petroleum of Western
Australia from time to time, review the environmental bonds that are placed on permits. The Directors are not in a
position to state whether a review is imminent or whether the outcome of such a review would be detrimental to
the funding needs of the Group.
PROCEEDINGS ON BEHALF OF THE GROUP
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any
proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for
all or any part of those proceedings.
The Group was not a party to any such proceedings during the year.
INDEMNITY AND INSURANCE OF OFFICERS
The Company has indemnified the directors and executives of the Company for costs incurred, in their capacity as
a director or executive, for which they may be held personally liable, except when there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the directors and
executives of the Group against a liability to the extent permitted by the Corporations Act 2001. The contract of
insurance prohibits disclosure of the nature of the liability and the amount of the premium.
Galena Mining Limited | Annual Report 2023 11
DIRECTORS’ REPORT
INDEMNITY AND INSURANCE OF AUDITORS
The Company has not, during the financial year, indemnified or agreed to indemnify the auditor of the Company or
any related entity against a liability incurred by the auditor.
During the financial period, the Company has not paid a premium in respect of a contract to insure the auditor of
the Company or any related entity.
NON-AUDIT SERVICES
The Board of Directors are satisfied that the provision of non-audit services during the year is compatible with the
general standard of independence for auditors imposed by the Corporations Act 2001.
The following fees were paid out to PKF Perth for non-audit services provided during the year ended 30 June 2023:
-Taxation compliance services
$1,650
AUDITOR’S INDEPENDENCE DECLARATION
Section 307C of the Corporations Act 2001 requires our auditors, PKF Perth, to provide the Directors of the
Company with an Independence Declaration in relation to the audit of the financial report. This Independence
Declaration is set out on page 13 and forms part of this Directors’ Report for the year ending 30 June 2023.
This report is signed in accordance with a resolution of the Board of Directors.
__________________
Adrian Byass
Chairman
Dated this 23rd day of August 2023
Galena Mining Limited | Annual Report 2023 12
PKF Perth
AUDITOR’S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF GALENA MINING LIMITED
In relation to our audit of the financial report of Galena Mining Limited for the year ended 30 June 2023, to the
best of my knowledge and belief, there have been no contraventions of the auditor independence requirements
of the Corporations Act 2001 or any applicable code of professional conduct.
PKF PERTH
SHANE CROSS
PARTNER
23 August 2023
WEST PERTH,
WESTERN AUSTRALIA
Level 4, 35 Havelock Street, West Perth, WA 6005
PO Box 609, West Perth, WA 6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions
or inactions of any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
Galena Mining Limited | Annual Report 2023 13
REVIEW OF OPERATIONS
i
Galena Mining Limited | Annual Report 2023 14
REVIEW OF OPERATIONS
For the financial year, the Company’s focus remained on the completion of construction, the commencement of
production and production ramp-up of its Abra Base Metals Mine (“Abra”), which is a globally significant lead-silver
mine located in the Gascoyne region of Western Australia (between the towns of Newman and Meekatharra,
approximately 110 kilometres from Sandfire’s DeGrussa Project).
Map showing the Abra Project location.
Other than Abra, Galena holds a strategic package of exploration licences over the Jillawarra sub-basin that
comprises an elongated tenement package covering approximately 76km continuous strike length and 508km2
directly to the west of Abra (“Jillawarra Prospects”).
Magnetic and gravity anomaly map showing the Abra Project and Jillawarra Project tenements with drill hole results and targets.
Galena Mining Limited | Annual Report 2023 15
REVIEW OF OPERATIONS
ABRA BASE METALS MINE (60% GALENA OWNED)
Abra comprises a granted Mining Lease, M52/0776 and is surrounded by the Exploration Licence E52/1455,
together with several co-located General Purpose and Miscellaneous Leases. The Project is 100% owned by
AMPL, which as at 30 June 2023 was 60% owned by Galena, with the remaining 40% owned by Toho (pursuant
to an Investment Agreement and Shareholders Agreement with Toho).
Abra is well located with the availability of key infrastructure and close access to water, public roads, existing mining
operations and the towns of Meekatharra and Newman. Lead-silver concentrate is transported by road to the port
of Geraldton in the mid-west of Western Australia. Abra is fully permitted, and construction of the processing plant
and surface infrastructure was completed in December 2022. First production of its lead-silver concentrate occurred
in January 2023 with first product shipment achieved in March 2023. The Company’s primary focus currently is on
the ongoing production ramp-up of both Abra’s underground mine and processing plant to achieve steady-state
production in the second half of 2023.
Project construction / development
Abra Project construction works were completed by the end of December 2022 and ore commissioning commenced
with first ore feed into the plant and first concentrate produced as part of the plant commissioning process in early
January 2023. Abra construction was completed at a total cost of approximately A$234.0 million, within 1% of
budget construction costs.
Concentrate sales
First product shipment was achieved in March 2023 and subsequent shipments in May and June 2023. During the
financial year, 15,059t of lead concentrate was sold containing 9,468t of payable lead and 69,735oz of payable
silver at an average lead price received of US$0.96/lb (A$1.45/lb), generating revenue of approximately
A$29.5 million.
Safety and environment
During the financial year, 724,695 employee and contractor work hours were recorded at Abra. The site’s total
recordable injury frequency rate (“TRIFR”) and notifiable incident frequency rate (“NIFR”) calculated on a 12-month
moving average at the end of each quarter were 12.4 injuries per million work hours. During this time Abra had
three medical treated injuries, six restricted work injuries and one notifiable incident.
Abra continues to focus on the prevention of incidents and management of risks for employees and contractors,
including hazard reporting and other safety systems to assist with continuous improvement of safety. A strong
focus remains on forward looking safety initiatives.
Galena Mining Limited | Annual Report 2023 16
REVIEW OF OPERATIONS
Operation performance
Abra Base Metals Mine
Performance Summary (100% Basis)
Units
Sep 2022
Quarter
Dec 2022
Quarter
Mar 2023
Quarter
Jun 2023
Quarter
FY2023
YTD
Safety
TRIFR1
NIFR1
Concentrate Sales2
Lead Concentrate Sold
Payable Lead Sold3
Payable Silver Sold3
Mining
Total Ore Mined
Total Mined Grade - Lead
Total Mined Grade - Silver
Processing
Total Ore Milled
Mill Feed Grade – Lead
Mill Feed Grade - Silver
Concentrate Produced
Lead in Concentrate Produced
Silver in Concentrate Produced
Costs
C1 Costs4
All-in Sustaining Costs5
Project Capital Expenditure6
Metal Price and Currency
Average Lead Price Received2
Average Lead Price Received2
Average Lead Price Received2
Average Exchange Rate
/Mwhrs
/Mwhrs
14.6
16.4
11.0
11.0
12.5
12.5
12.4
12.4
12.4
12.4
t
t
oz
t
%
g/t
t
%
g/t
t
t
oz
A$M
A$M
A$M
US$/t
US$/lb
A$/lb
A$:US$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,002
3,105
10,057
15,059
6,363
9,468
27,339
42,396
69,735
17,925
136,008
194,644
348,577
4.3
20.0
4.8
20.6
5.4
16.9
5.1
18.4
-
-
-
-
-
-
-
-
135,666
190,258
325,924
4.4
22.0
5,425
3,492
5.1
19.0
4.8
20.3
12,468
17,893
8,305
11,797
34,232
65,060
99,292
22.7
29.2
-
25.6
32.3
-
48.3
61.5
65.8
32.5
33.3
-
-
-
-
-
-
-
-
2,088
2,133
2,118
0.95
1.41
0.67
0.97
1.47
0.66
0.96
1.45
0.66
Notes:
1. Total Recordable Injury Frequency Rate (“TRIFR”) and Notifiable Incident Frequency Rate (“NIFR”) are the 12-month moving
average at the end of each quarter calculated per million work hours.
2. Concentrate sales and average lead price received initially based on provisional invoices and subsequently updated with
final invoices, including final assays and quotational period adjustments.
3. Payable lead and silver based on 95% metal payability subject to standard deductions (i.e., 3 units for lead and 50g/t for
silver).
4. C1 costs include mining costs, processing costs, site general and administration costs, transport, logistics and shipping
costs, and treatment and refining charges, adjusted for inventory movements and net of silver by-product credits.
5. All-in sustaining costs include C1 Costs plus royalties, corporate general and administration costs, sustaining capital and
capitalised mine development costs. All-in sustaining costs exclude growth capital and exploration costs.
6. Abra Project construction works were completed by the end of the December 2022 quarter (see Galena ASX announcements
of 10 January 2023 and 13 January 2023).
Galena Mining Limited | Annual Report 2023 17
REVIEW OF OPERATIONS
Mining and geology
Underground mining of the first three levels of the mine (1,300mRL, 1,280mRL, and 1,260mRL) commenced in the
first half of 2023 and has occurred predominantly in Apron Zone mineralisation. Some initial development has
occurred in Core Zone mineralisation on the lowest of the three levels (1,260mRL).
In June 2023 a new site record of lateral development of 646m was achieved and a total of 5,083m of development
was completed during the year. At 30 June 2023, total mine development reached 19,117m consisting of 8,493m
of decline development, 9,192m of lateral development and 1,432m of vertical development. The decline reached
1,234mRL, being 312m vertically below the surface.
Ore drive development continued progressing on the 1280mRL and 1260mRL levels and capital development
continued in the Abra Main and Central declines, and the 1280mRL primary services drive. The new Abra Central
decline is being developed on the southern side of the orebody to gain access to the 1260mRL to 1250mRL levels
on the central and eastern side of the mine. This decline will also enable new drill platforms to be established for
multiple parts of the mine including Core lodes and recently discovered mineralisation outside of the MRE.
A total of 348,577t of ore was delivered to the ROM pad from the mine for processing during the year, including
266,985t from development and 81,592t from stoping. Stoping occurred on the 1300mRL, 1280mRL and 1260mRL
levels. A total of six different stopes were in production with two of those stopes being completed by the end of
June 2023. As the mine progresses into a more balanced production profile, stoping will account for approximately
70% of the mine production. At the end of June, a total of 1,728t of ore remained stockpiled on the ROM pad for
processing.
Mining and processing grade is slowly improving and will continue to do so in the coming months as new work
areas are established and the ratio of stoping ore to development ore increases to required production levels.
During the year, a total of 251 (41,296m) underground diamond holes were completed for grade control and
resource definition drilling providing greater confidence in mine planning. The underground drilling program
continued to focus on grade control to the western part of the upper apron and drilling the planned core stopes to
be mined in the last quarter of 2023. Additional resource definition drilling into the newly identified second Jaspilite
dome is also scheduled for the next quarter along with some copper exploration drilling.
Two underground drill rigs will continue to operate on an ongoing basis providing continual improvement in the
confidence levels of the mine plan and ongoing optimisation opportunities.
Processing
Several important milestones were achieved during the year, including the completion of commissioning of the
processing plant, first ore fed into the plant and first concentrate produced in January 2023. The processing plant
achieved in-specification concentrate production from the commencement of concentrate production.
During January to March 2023, 135,666t of ore was processed and 5,425t of lead concentrate was produced. The
plant only operated for approximately 50 days during this time with low levels of throughput around 2,000t per day
increasing to the expected throughput levels of 3,600t per day, with an average of approximately 2,700t per day.
The plant operated in a stop-start nature during this period due to ore availability during the commissioning and
initial stages of ramp-up.
A significant rainfall event in April 2023 caused road closures and limited Abra mine site access resulting in a
reduction in work hours and the closure of the processing plant. The Abra processing plant recommenced ore
treatment on 3 May 2023 and other than a planned maintenance shutdown at the beginning of June, the plant
operated continuously through to the end of June 2023 and was able to process all the ore mined. The plant’s
instantaneous throughput rate was maintained at 150dmt/hr and a new record total of 190,258t of ore was
processed between April and June 2023 producing 12,468t of lead concentrate.
Lead metal recovery continued to improve, increasing from 37.7% in January to 86.1% in June. Ongoing
improvement is expected to be achieved in metal recoveries with longer more consistent run times and improving
feed head grade as stoping increases in the mine’s production profile. Processing plant performance is consistent
with process flow-sheet design and throughput rates in each section of the plant is being achieved.
Galena Mining Limited | Annual Report 2023 18
REVIEW OF OPERATIONS
Costs
C1 costs of A$48.3 million and all-in sustaining costs of A$61.5 million for the financial year were in line with
previous guidance.
Heritage
The Nharnuwangga Wajarri and Ngarlawangga (“NWN”) people are recognised as the traditional owners of the
country where the Galena projects are located. The NWN people have granted Native Title for the area and the
Jidi Jidi Aboriginal Corporation (“JJAC”) is the group representing the NWN people.
Following AMPLs first concentrate shipment in March 2023, JJAC received its first royalty payment from Abra
amounting to $45,112. These royalty payments will continue to JJAC on a quarterly basis.
One heritage clearance survey was conducted during the reporting period to accommodate a pipeline and
discharge point that was outside of previously surveyed areas. There were no areas of heritage significance
discovered during this survey.
AMPL conducted a review of the Aboriginal Cultural Heritage (“ACH Act”) Act 2021 in May of 2023 to determine
any potential implications for the operations on site. The conclusions from this review were that all AMPL’s previous
heritage surveys were current and had been endorsed by JJAC and that the ACH Act 2021 would have minimal
impact on AMPL’s current operations. Any future expansion activities outside of the previously surveyed areas
would need to be managed in accordance with the ACH Act 2021. In August 2023, the Western Australian State
Government formally announced the new ACH Act will be repealed, just over a month after it commenced.
Regulation of Aboriginal cultural heritage will revert back to the Aboriginal Heritage Act 1972 (“AHA Act”).
AMPL will continue to support the government funded Ranger program which covers the Collier Range National
Park and other conservation estate reserves within the NWN granted Native Title area. AMPL has also offered to
integrate any environmental monitoring initiatives the Rangers wish to undertake into the monitoring program
currently undertaken on the Abra mine site. AMPL is actively working with JJAC to identify current and future
employment opportunities for its members with most recent discussions conducted during the Environment,
Employment, Training and Contracts Liaison Committee meeting on 16 June 2023.
Abra JORC Mineral Resource Estimate
On 7 August 2023, Galena announced that the Abra Base Metals Mine has updated its JORC Code 2012 Mineral
Resource Estimate (“MRE”). This update is the first MRE annual update including all underground drilling up to
5 May 2023, and all underground geological mapping, and mining and processing up to 30 June 2023.
There is no material difference from the previous MRE (April 2021).
The table below states the Abra July 2023 Resource at a 5.0% lead cut-off grade:
Abra JORC Mineral Resource estimate1, 2
Resource classification
Tonnes (Mt)
Lead grade (%)
Silver grade (g/t)
Measured
Indicated
Inferred
Total
0.3
16.2
16.9
33.4
7.3
7.3
6.9
7.1
32
19
15
17
Notes:
1. See Galena ASX announcement of 7 August 2023.
2. Calculated using ordinary kriging method and a 5.0% lead cut-off grade. Tonnages are rounded to the nearest 100,000t,
lead grades to one decimal place and silver to the nearest gram. Rounding errors may occur when using the above figures.
Galena Mining Limited | Annual Report 2023 19
REVIEW OF OPERATIONS
Commercial initiatives in support of Abra development – Toho transaction
In April 2019, the Company executed definitive agreements with Toho setting out the terms for Toho’s investment
of $90 million in tranches for a 40% ownership interest in Galena’s previously wholly-owned subsidiary, AMPL (the
“Toho Transaction”). Key components of the Toho Transaction include:
•
Investment and investment structure – $90 million total investment to be made via the subscription of new
ordinary shares in AMPL such that Toho owns 40% of AMPL on completion of the full investment and
Galena retains 60%.
• Tranched payment – $20 million was paid on initial closing of the transaction in April 2019; $10 million was
paid in August 2019; and the remaining $60 million was received during the 2021 financial year after project
financing debt for the Project was confirmed (with all tranches combined taking Toho’s total ownership in
AMPL to 40%).
• Off-take –Toho has also entered into an off-take agreement with AMPL to purchase 40% of Abra’s high-
grade high-value lead-silver concentrate on arms-length, benchmark terms.
Commercial initiatives in support of Abra development – project financing debt
In November 2020, Galena put in place US$110 million in finalised debt facilities arranged by Taurus Funds
Management. The facilities include a US$100 million project finance facility (“Facility A”) plus a US$10 million cost
overrun or working capital facility (“Facility B”).
Facility A consists of a US$100 million, 69-month term loan primarily to fund capital expenditures for the
development of Abra. Key terms include:
• Fixed interest of 8.0% per annum on drawn amounts, payable quarterly in arrears.
• 1.125% net smelter return royalty.
• No mandatory hedging.
• Early repayment allowed without penalty.
• Fifteen quarterly repayments from 31 December 2023 to 30 June 2027.
Facility B consists of a US$10 million loan to finance identified cost overruns on the Project in capital expenditure
and working capital. Fixed interest of 10.0% per annum will apply to amounts drawn under Facility B.
The Taurus Debt Facilities have been fully drawn and are secured against Abra Project assets and over the shares
that each of Galena and Toho own in AMPL.
Near-Project exploration
With the development of the Abra mine, the geological understanding of the Abra deposit and the surrounding
targets has increased significantly. Specifically, the importance of the Jaspilite cap (Red Zone Cap) sitting directly
above the mineralisation providing a physical barrier to the hydrothermal fluids is significant. The morphology of
the Red Zone Cap has now been examined in relation to the adjacent prospects, including Sultan, Genie, and
Jasmine. This work shows the tremendous advantage to ongoing exploration work at Abra and Galena’s 100%-
owned Jillawarra Project with the increased knowledge gained from physical access to the Abra orebody 230m
below surface.
JILLAWARRA PROSPECTS (100% GALENA OWNED)
Galena’s non-Abra prospects located in the Jillawarra Project area consist of Woodlands, Manganese Range,
Quartzite Well and Copper Chert, which comprise more than 60km of continuous strike directly to the west of Abra
and reside within five granted Exploration Licences, being: E52/1413; E52/3575; E52/3581; E52/3630; and
E52/3823.
During the year, minor exploration activities were completed within the Jillawarra exploration licences.
Galena Mining Limited | Annual Report 2023 20
REVIEW OF OPERATIONS
CORPORATE
A$20 million share placement
On 20 April 2023, the Company accepted binding commitments for a placement of 133,333,334 fully paid ordinary
shares (“New Shares”) at an issue price of A$0.15 per share to raise A$20 million before costs (“Placement”).
The Placement comprised the issue of 133,333,334 New Shares via two tranches, comprising:
•
•
92,885,303 New Shares (A$13.9 million) issued within the Company’s 15% placement capacity under
ASX Listing Rule 7.1 (Tranche 1); and
40,448,031 New Shares (A$6.1 million) issued following shareholder approval at a meeting of
shareholders on 9 June 2023 (Tranche 2).
Proceeds from the Placement (net of expenses) are being used to provide AMPL with additional working capital
funding during the ramp-up period of the Abra mine.
A$17 million placement
On 26 July 2022, the Company accepted binding commitments for a placement of 137,200,000 new shares at an
issue price of $0.125 per share (“Placement Shares”), to raise $17.2 million before costs (“Placement”).
Proceeds from the Placement are being used to provide AMPL a temporary unsecured reserve facility (“URF”).
The URF of $30 million, was contributed $18 million by Galena and $12 million by the Company’s joint-venture
partner Toho. The URF is available during the critical commissioning and initial ramp-up stages of the Abra mine,
up until the Project Completion tests are satisfied under the Taurus Debt Facilities. Its purpose is to provide a
working capital and cost buffer for AMPL to draw in the event of unforeseen circumstances and costs such as
weather-related road or port closures or other events. Any drawn amounts will become unsecured shareholder
loans to AMPL whilst undrawn amounts will be returned to each of Galena and Toho in their respective 60:40 share.
71,400,000 of the shares issued under the Placement fell within the Company’s 15% placement capacity under
ASX Listing Rule 7.1, with settlement occurring on Wednesday, 3 August 2022. The remaining 65,800,000 shares
issued under the Placement were subject to shareholder approval which was received at a general meeting held
on 13 September 2022.
Galena Mining Limited | Annual Report 2023 21
REVIEW OF OPERATIONS
OUTLOOK
Upcoming key focus areas and corporate milestone workstreams include:
• Achieve the production ramp-up plan including ongoing concentrate shipments to achieve and maintain
positive cash flows from operations during the September quarter. September quarter mining and
processing plans have been completed to achieve this and the guidance for CY2023 production (CY2023
50-60kt lead production and 325-425kozs silver production).
- Mining over 2,000m of development and over 250,000t of stope ore. Commission the paste plant
and paste fill first stope in August 2023.
- Processing over 300,000t of ore.
- Targeting ~25-30kt of lead concentrate shipments expected to generate positive operating cash
flows in the September quarter.
• Completion of specific technical works as follows:
- Finalisation and publication of 2023 Mineral Resource Estimate.
- Complete and publish 2023 Ore Reserve update.
- Complete work associated with 2024 budget and CY2024 production guidance to be provided in
December 2023.
- Ongoing grade control drilling and model updates to continue to improve mine planning
confidence.
• Complete construction of the next stage of the tailings storage facility (“TSF”).
• Achieve Project Completion milestone under the Taurus Debt Facilities.
Competent Persons’ Statement
The information in this report related to the Abra July 2023 Mineral Resource is based on work completed by Mr
Angelo Scopel BSc (Geol), MAIG, an employee of Abra Mining Pty Ltd and Ms Lisa Bascombe BSc (Geol), MAIG,
an employee of Abra Mining Pty Ltd. Mr Scopel is responsible for data review. QAQC, and the geological model.
Ms Bascombe is responsible for the resource estimation, classification, and reporting. Mr. Scopel and Ms.
Bascombe have sufficient experience relevant to the style of mineralisation and type of deposit under consideration
and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of
the Australasian Code for Reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore
Reserves. Mr Scopel and Ms Bascombe consent to the inclusion in the report of the matters based on this
information in the form and context in which it appears.
Galena Mining Limited | Annual Report 2023 22
REVIEW OF OPERATIONS
Galena Mining Limited | Annual Report 2023 23
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2023
Revenue
Cost of sales
Gross loss
Note
7(a)
7(b)
2023
$
29,516,863
(68,126,726)
(38,609,863)
2022
$
-
-
-
Corporate and administration expenses
7(c)
(6,389,831)
(4,901,668)
Foreign exchange loss
(5,885,941)
(4,553,563)
Loss before finance costs and income tax expense
(50,885,635)
(9,455,231)
Finance income
Finance costs
Loss before income tax
Income tax expense
Loss for the year
8
8
9
671,403
(10,967,762)
194,774
(65,230)
(61,181,994)
(9,325,687)
-
-
(61,181,994)
(9,325,687)
Other comprehensive income net of income tax
-
-
Total comprehensive loss for the year
(61,181,994)
(9,325,687)
Loss for the year attributable to:
Non-controlling interest
Members of the parent
Loss per share
4
(23,015,752)
(2,485,823)
(38,166,242)
(6,839,864)
(61,181,994)
(9,325,687)
Basic and diluted loss per share (cents per share)
10
(10.00)
(1.96)
The accompanying notes form part of these financial statements.
Galena Mining Limited | Annual Report 2023 24
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2023
Note
2023
$
2022
$
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventories
Prepayments
Total current assets
Non-Current Assets
Exploration and evaluation expenditure
Property, plant and equipment
Right-of-use assets
Total non-current assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Unearned Revenue
Lease liabilities
Provisions
Interest bearing loans and borrowings
Total current liabilities
Non-Current Liabilities
Lease liabilities
Provisions
Interest bearing loans and borrowings
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Share-based payment reserve
Consolidation reserve
Accumulated losses
Parent interest
Non-controlling interest
TOTAL EQUITY
20
21
22
11
12
19
23
19
24
15
19
24
15
16
17
4
19,342,915
2,769,702
6,289,388
2,239,899
30,641,904
48,219,668
1,469,987
-
1,539,883
51,229,538
9,805,623
8,788,294
280,596,218
201,266,119
45,138,609
2,960,543
335,540,450
213,014,956
366,182,354
264,244,494
38,710,617
17,780,287
306,280
3,362,474
1,132,772
30,549,327
74,061,470
-
812,824
543,595
-
19,136,706
41,501,951
10,610,771
1,173,549
3,863,356
138,178,727
113,401,922
190,291,449
118,438,827
264,352,919
137,575,533
101,829,435
126,668,961
84,336,578
2,199,090
52,727,720
48,287,278
1,905,922
52,727,720
(59,056,469)
(20,890,227)
80,206,919
21,622,516
82,030,693
44,638,268
101,829,435
126,668,961
The accompanying notes form part of these financial statements.
Galena Mining Limited | Annual Report 2023 25
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2023
Balance at 1 July 2021
Loss for the year
Other comprehensive income
Total comprehensive loss
Transactions with owners directly recorded in equity:
Shares issued during the year
Share-based payments
CBHWA share subscription
Balance at 30 June 2022
Balance at 1 July 2022
Loss for the year
Other comprehensive income
Total comprehensive loss
Transactions with owners directly recorded in equity:
Shares issued during the year
Share-based payments
Share issue costs
Balance at 30 June 2023
The accompanying notes form part of these financial statements.
Issued capital Share-based
Note
payment
reserve
Consolidation
reserve
Accumulated
losses
Non-
controlling
interest
Total
$
$
48,006,327
1,657,270
52,727,720
-
-
-
-
-
-
16
17
280,951
(745,610)
-
-
994,262
-
-
-
-
-
-
-
$
(14,566,022)
$
$
45,124,091
132,949,386
(6,839,864)
(2,485,823)
(9,325,687)
-
-
-
(6,839,864)
(2,485,823)
(9,325,687)
515,659
-
-
-
-
2,000,000
51,000
994,262
2,000,000
48,287,278
1,905,922
52,727,720
(20,890,227)
44,638,268
126,668,961
48,287,278
1,905,922
52,727,720
(20,890,227)
44,638,268
126,668,961
-
-
-
-
-
-
16
17
16
38,443,219
(1,237,119)
-
1,530,287
(2,393,919)
-
-
-
-
-
-
-
(38,166,242)
(23,015,752)
(61,181,994)
-
-
-
(38,166,242)
(23,015,752)
(61,181,994)
-
-
-
-
-
-
37,206,100
1,530,287
(2,393,919)
84,336,578
2,199,090
52,727,720
(59,056,469)
21,622,516
101,829,435
Galena Mining Limited | Annual Report 2023 26
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest received
Note
2023
$
28,189,876
2022
$
-
(58,589,915)
(6,517,781)
671,403
194,774
Net cash used in operating activities
20
(29,728,636)
(6,323,007)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
Project development expenditure
Exploration and evaluation expenditure
CBHWA share subscription in subsidiary
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Transaction costs associated with issue of shares
Payments of lease liabilities
Proceeds from loans and borrowings
Borrowing costs paid
Net cash provided by financing activities
(8,293,061)
(26,086,512)
(55,056,078)
(85,520,739)
(1,017,329)
(2,123,022)
-
2,000,000
(64,366,468)
(111,730,273)
37,206,100
(2,393,919)
51,000
-
(4,235,605)
(1,051,344)
48,603,208
76,998,482
(13,961,433)
(5,920,752)
65,218,351
70,077,386
Net decrease in cash held
(28,876,753)
(47,975,894)
Cash and cash equivalents at beginning of financial
period
48,219,668
96,195,562
Cash and cash equivalents at end of financial period
20
19,342,915
48,219,668
The accompanying notes form part of these financial statements.
Galena Mining Limited | Annual Report 2023 27
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS
TAXES
GOING CONCERN
NET FINANCE COSTS
GROUP INFORMATION
INCOME AND EXPENSES
BASIS OF PREPARATION
SEGMENT INFORMATION
CORPORATE INFORMATION
TRANSACTIONS WITH RELATED PARTIES
CORPORATE INFORMATION AND BASIS OF PREPARATION
NOTE 1:
NOTE 2:
NOTE 3:
GROUP STRUCTURE
NOTE 4:
NOTE 5:
RESULTS FOR THE YEAR
NOTE 6:
NOTE 7:
NOTE 8:
NOTE 9:
NOTE 10: EARNINGS PER SHARE
INVESTED CAPITAL
NOTE 11: EXPLORATION AND EVALUATION EXPENDITURE
NOTE 12: PROPERTY, PLANT AND EQUIPMENT
NOTE 13: CAPITAL AND OTHER COMMITMENTS
CAPITAL AND DEBT STRUCTURE
NOTE 14: CAPITAL MANAGEMENT
NOTE 15:
NOTE 16:
NOTE 17: SHARE-BASED PAYMENT RESERVE
NOTE 18:
NOTE 19:
WORKING CAPITAL
NOTE 20: CASH AND CASH EQUIVALENTS
NOTE 21:
NOTE 22:
NOTE 23:
OTHER
NOTE 24: PROVISIONS
NOTE 25: SHARE-BASED PAYMENTS
NOTE 26: CONTINGENT ASSETS AND LIABILITIES
NOTE 27: AUDITORS’ REMUNERATION
NOTE 28: SIGNIFICANT EVENTS AFTER REPORTING PERIOD
INTEREST BEARING LOANS AND BORROWINGS
TRADE AND OTHER RECEIVABLES
FINANCIAL RISK MANAGEMENT
TRADE AND OTHER PAYABLES
ISSUED CAPITAL
INVENTORIES
LEASES
29
29
29
32
33
33
35
35
35
38
40
41
43
44
44
45
47
47
48
48
50
50
51
56
58
58
59
60
60
61
61
62
63
64
64
Galena Mining Limited | Annual Report 2023 28
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
CORPORATE INFORMATION AND BASIS OF PREPARATION
NOTE 1:
CORPORATE INFORMATION
Galena Mining Limited is a for profit company incorporated in Australia whose shares are publicly traded on the
Australian Stock Exchange (“ASX”). The consolidated financial statements of Galena Mining Limited and its
controlled entities (together referred to as “Galena”, the “Company”, the “Group” or the “Consolidated Entity”)
for the year ended 30 June 2023 were authorised for issue in accordance with a resolution of the directors on 23
August 2023.
The nature of the Group’s operations and principal activities are described in the Director’s report. Information on
the Group structure is provided in note 4. Information on other related party relationships of the Group is provided
in note 5.
NOTE 2:
BASIS OF PREPARATION
The consolidated financial statements are a general purpose financial report, which have been prepared in
accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other
authoritative pronouncements of the Australian Accounting Standards Board. The financial report also complies
with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards
Board (“IASB”).
The financial statements have been prepared on an accruals basis and are based on historical costs, modified
where applicable, by the measurement at fair value of financial assets and financial liabilities.
The financial report is presented in Australian dollars and all values are rounded to the nearest dollar unless
otherwise stated.
Other than Revenue (outlined in note 7a) and Inventories (outlined in note 22) the accounting policies adopted are
consistent with those of the previous financial year and corresponding reporting period except for the adoption of
the new standards and amendments which became mandatory for the first time this reporting period commencing
1 July 2022. The adoption of these standards and amendments did not result in a material adjustment to the
amounts or disclosures in the current or prior year. The Group has not early adopted any other standard,
interpretation or amendment that has been issued but is not yet effective.
a) Basis of consolidation
The consolidated financial statements comprise the financial statements of Galena Mining Limited and its controlled
entities as at 30 June 2023 (as outlined in note 4).
Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the
investee and has the ability to affect those returns through its power over the investee. Specifically, the Group
controls an investee if and only if the Group has:
• Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the
investee);
• Exposure, or rights, to variable returns from its involvement with the investee; and
•
The ability to use its power over the investee to affect its returns.
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all
relevant facts and circumstances in assessing whether it has power over an investee, including:
The contractual arrangement with the other vote holders of the investee;
•
• Rights arising from other contractual arrangements; and
The Group’s voting rights and potential voting rights.
•
Galena Mining Limited | Annual Report 2023 29
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 2:
BASIS OF PREPARATION (continued)
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements of control. Consideration of a subsidiary begins when the Group
obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities,
income and expenses of a subsidiary acquired or disposed of during the year and included in the statement of
comprehensive income from the date the Group contains control until the date the Group ceases to control the
subsidiary.
Profit or loss and each component of the other comprehensive income (“OCI”) are attributed to the equity holders
of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests
having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring
their accounting policies into line with the Group’s accounting policies. All intra-group assets and liabilities, equity,
income, expenses and cash flows relating to a transaction between members of the Group are eliminated in full on
consolidation.
A change in ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.
b) Foreign currencies
The Group’s consolidated financial statements are presented in Australian dollars, which is also the parent entity’s
functional currency and the Group’s presentation currency.
Transactions in foreign currencies are initially recorded by each entity in the Group at their respective functional
currency spot rates at the date the transaction first qualifies for recognition. Monetary assets and liabilities
denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting
date. All differences are taken to the statement of profit or loss and other comprehensive income. Non-monetary
items that are measured at historical cost in a foreign currency are translated using the exchange rates at the dates
of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the
exchange rates at the date when the fair value was determined.
c) Significant accounting adjustments, estimates and assumptions
The preparation of the Group’s consolidated financial statements requires management to make judgements,
estimates and assumptions that affect the reported amounts at the date of the consolidated financial statements.
Estimates and assumptions are continually evaluated and are based on management’s experience and other
factors, including expectations of future events that are believed to be reasonable under the circumstances.
Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to
the carrying amount of assets or liabilities affected in future periods.
In particular, the Group has identified a number of areas where significant judgements, estimates and assumptions
are required. Further information on each of these areas and how they impact the various accounting policies are
described and highlighted separately with the associated accounting policy note within the related note.
d) Changes in accounting policies and disclosures
The Group has adopted all the new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board (“AASB”) that are mandatory for the current reporting period. Any new or amended
Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. The Group has
yet to assess the impact of these new or amended Accounting Standards and Interpretations.
Galena Mining Limited | Annual Report 2023 30
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 2:
BASIS OF PREPARATION (continued)
e) Changes in accounting policies and disclosures (continued)
The following Australian Accounting Standards that have recently been issued or amended but are not yet effective
are relevant to the Group but have not been applied by the Group for the annual reporting period ending 30 June
2023:
AASB No.
Title
Application
date of
standard *
Application
date for
Group
AASB 2014-10 Amendments to AASs – Sale or Contributions of Assets between an
1 January 2025
1 July 2025
Investor and its Associate or Joint Venture
AASB 2020-1
Amendments to AASs – Classification of Liabilities as Current or Non-
current
1 January 2023
1 July 2023
AASB 2021-2
Amendments to Australian Accounting Standards – Disclosure of
Accounting Policies and Definition of Accounting Estimates
1 January 2023
1 July 2023
AASB 2021-5
Amendments of AASs – Deferred Tax related to Assets and Liabilities
arising from a Single Transaction
1 January 2023
1 July 2023
AASB 2021-6
Amendments to Australian Accounting Standards – Disclosure of
Accounting Policies: Tier 2 and Other Australian Accounting Standards
1 January 2023
1 July 2023
AASB 2021-7c Amendments to Australian Accounting Standards – Effective Date of
1 January 2025
1 July 2025
Amendments to AASB 10 and AASB 128 and Editorial Corrections
[deferred AASB 10 and AASB 128 amendments in AASB 2014-10
apply]
* Annual reporting periods beginning after
f)
Fair Value Measurement
When an asset or liability, financial or non-financial is measured at fair value for recognition or disclosure purposes,
the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date; and assumes that the transaction will take place
either; in the principal market; or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability
assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based
on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient
data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising
the use of unobservable inputs.
Assets and liabilities measured at fair value are classified, into three levels, using a fair value hierarchy that reflects
the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting
date and transfers between levels are determined based on a reassessment of the lowest level of input that is
significant to the fair value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is
either not available or when the valuation is deemed to be significant. External valuers are selected based on
market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one
period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest
valuation and a comparison, where applicable, with external sources of data.
Galena Mining Limited | Annual Report 2023 31
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 2:
BASIS OF PREPARATION (continued)
g) Goods and Services Tax (“GST”)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part
of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the
statement of financial position are shown inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of
investing and financing activities, which are disclosed as operating cash flows.
h) Other accounting policies
Significant and other accounting policies that summarise the measurement basis used and are relevant in
understanding the financial statements are provided throughout the notes to the financial statements.
NOTE 3:
GOING CONCERN
The financial report has been prepared on the basis of accounting policies applicable to a going concern. This basis
presumes that funds will be available to finance future operations and that the realisation of assets and settlement
of liabilities, contingent obligations and commitments will occur in the ordinary course of business.
The Group incurred a loss for the period of $61,181,994 (2022: $9,325,687), net cash outflows from operating
activities of $29,728,636 (2022: $6,323,007) and net cash outflows from investing activities of $64,366,468 (2022:
$111,730,273). As at 30 June 2023, the Group had a net current asset deficit of $43,419,566 (2022: surplus
$32,092,832), including cash and cash equivalents of $19,342,915 (2022: $48,219,668).
Management has prepared a cash flow forecast for the next twelve months, which anticipates that the Group will
be able to pay its debts as and when they fall due during that period. Key assumptions in the cashflow forecast
include:
• A production ramp-up plan including ongoing shipments to achieve and maintain positive cash flows
from operations.
Lead price continuing at current market prices.
•
• Operating costs have been prepared based on contracted rates taking into account cost pressures
facing the industry, including rising costs.
• Capital sufficient to deliver the planned mine development, completion of the next stage of the Tailings
Storage Facility, other sustaining capital expenditure and planned exploration activities.
At the date of this report, the Directors are satisfied there are reasonable grounds to believe that, having regard to
the Group’s position and its available financing options, the Group will be able to meet its obligations as and when
they fall due. The Directors recognise that:
•
•
•
The ramp up of the Abra Base Metals Mine will progressively generate positive cash flow for the Group.
There are risks associated with the ramp up of a new lead mine.
If required, suitable funding solutions can be sourced and the Group has a history of successful capital
raisings.
In concluding this, the Directors have considered the Company’s liquidity position, any risks to future projected cash
flows and available funding. The economic outcomes associated with future projected cash flows are based on
certain assumptions made for commodity prices, foreign exchange rates, commissioning and ramp-up of
production, recovered grades, timing of concentrate sales and costs. Changes in such assumptions may have a
material impact on the economic outcomes, including the timing and quantum of estimated revenues and cash
flows.
Galena Mining Limited | Annual Report 2023 32
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
GROUP STRUCTURE
This section provides information on the Group’s structure as well as related party transactions.
NOTE 4:
GROUP INFORMATION
Interest in controlled entities
The consolidated financial statements incorporate the assets, liabilities and the results of the following subsidiaries:
Country of
Equity holding
Name
Incorporation
Class of share
30 June 2023
30 June 2022
Abra Mining Pty Ltd
Australia
GML Marketing Pty Ltd Australia
Ordinary
Ordinary
60%
100%
60%
100%
Parent entity information
The accounting policies of the parent entity, which have been applied in determining the financial information shown
below, are the same as those applied in the consolidated financial statements.
Statement of Financial Position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Statement of Profit or Loss and other Comprehensive Income
Loss for the year
Other comprehensive income
Total comprehensive income
There are no material guarantees or capital commitments to be disclosed.
2023
$
2022
$
7,446,056
62,969,057
70,415,113
3,590,548
34,708,781
38,299,329
574,528
503,371
498,638
1,073,166
680,837
1,184,208
69,341,947
37,115,121
84,336,578
2,199,090
48,287,278
1,905,921
(17,193,721)
(13,078,078)
69,341,947
37,115,121
2023
$
(4,115,643)
-
2022
$
(3,120,864)
-
(4,115,643)
(3,120,864)
Galena Mining Limited | Annual Report 2023 33
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 4:
GROUP INFORMATION (continued)
Proportion of equity interest held by non-controlling entity
Name
Country of
Incorporation
Non-controlling interest
30 June 2023
30 June 2022
Abra Mining Pty Ltd
Australia
40%
40%
On 12 April 2019, the Company completed a transaction with Toho to invest $90,000,000 in various tranches for a
40% joint-venture investment in AMPL. During FY2021, AMPL received the final tranche payment of $60,000,000
from Toho and an additional $7,200,000 which included funding for the 2020 Abra Drilling Program and issued new
shares to Galena and Toho’s wholly-owned subsidiary, CBHWA, such that AMPL is currently owned 60% by Galena
and 40% by CBHWA. During FY2022, AMPL received an additional $2,000,000 of funding from CBHWA. The
transactions have been accounted for as an equity transaction with a non-controlling interest in accordance with
AASB 10 Consolidated Financial Statements which specifies accounting for non-controlling interests, resulting in
the following:
Proceeds from the issue of new shares in AMPL to CBHWA
Net assets attributable to non-controlling interest
Increase in equity attributable to parent (i)
(i) Represented by an increase in the consolidation reserve.
AMPL’s Summarised Statement of Financial Position
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Total equity
Attributable to:
Equity holders of parent
Non-controlling interest
2023
$
-
-
-
2023
$
2022
$
2,000,000
-
-
2022
$
23,357,775
42,687,416
309,622,588
205,363,815
(62,581,936)
(18,697,572)
(216,342,137)
(117,757,990)
54,056,290
111,595,669
32,433,774
21,622,516
66,957,401
44,638,268
AMPL’s Summarised Statement of Profit or Loss and Other Comprehensive Income
Revenue
Expenses
Loss for the year
Other comprehensive income
Total comprehensive income
Attributable to non-controlling interest
Dividends paid to non-controlling interest
2023
$
29,762,973
(87,302,354)
(57,539,381)
-
2022
$
142,640
(6,357,197)
(6,214,557)
-
(57,539,381)
(6,214,557)
(23,015,752)
(2,485,823)
-
-
Galena Mining Limited | Annual Report 2023 34
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 5:
TRANSACTIONS WITH RELATED PARTIES
Key Management Personnel
The totals of remuneration paid or due to be paid to the KMP of the Company during the year are as follows:
Short-term employment benefits
Post-employment benefits
Termination benefits
Share-based payments
Total Remuneration paid or due to be paid
2023
$
1,687,013
64,760
-
1,530,287
3,282,060
2022
$
1,411,507
65,290
205,680
994,262
2,676,739
Transactions between related parties are on commercial terms and conditions, no more favourable than those
available to other parties unless otherwise stated.
RESULTS FOR THE YEAR
This section provides additional information that is most relevance in explaining the Group’s performance during
the year.
NOTE 6:
SEGMENT INFORMATION
The Group has identified its operating segments based on the internal reports that are reviewed and used by the
board of directors (chief operating decision makers) in assessing performance and determining the allocation of
resources.
The Group is managed primarily on the basis of one geographical segment being Australia, and has the following
operating segments:
Segment Name
Description
Abra Mine
Exploration
The Abra Mine segment is a globally significant lead-silver mine located in the
Gascoyne region of Western Australia.
The Exploration segment which undertakes exploration and evaluation
activities in Western Australia.
Other Activities
The Other Activities segment which includes all corporate expenses that
cannot be directly attributed to the Group’s operating segments.
The accounting policies used by the Group in reporting segments internally are the same as those contained in the
financial statements and in the prior period.
Galena Mining Limited | Annual Report 2023 35
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 6:
SEGMENT INFORMATION (continued)
(a) Segment Results, Segment Assets and Segment Liabilities
Year ended 30 June 2023
Revenue
Mine operating costs
Inventory movements
Royalty expense
Administration expenses
EBITDA
Foreign exchange (loss) gain
Depreciation and amortisation
Segment result (EBIT)
Finance Income
Interest expense and other costs of finance
Loss before tax
Income tax expense
Loss after tax
Segment assets
Segment liabilities
Other segment information
Abra Mine
$
Exploration
$
Other Activities
$
Consolidated
$
29,199,148
(56,947,526)
2,461,997
(2,151,733)
-
(27,438,114)
(6,018,809)
(11,489,464)
(44,946,387)
-
-
-
-
-
-
-
-
317,715
29,516,863
-
-
-
(56,947,526)
2,461,997
(2,151,733)
(4,556,792)
(4,556,792)
(4,239,077)
(31,677,191)
132,868
(5,885,941)
(1,833,039)
(13,322,503)
(5,939,248)
(50,885,635)
671,403
(10,967,762)
(61,181,994)
-
(61,181,994)
348,269,305
9,805,623
8,107,426
366,182,354
262,369,906
-
1,983,013
264,352,919
Capital expenditure (i)
(20,671,244)
(1,017,329)
(1,435)
(21,690,008)
(i) Capital expenditure consists of additions to property, plant and equipment, assets under construction, lease assets and
exploration and evaluation assets.
Galena Mining Limited | Annual Report 2023 36
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 6:
SEGMENT INFORMATION (continued)
(a) Segment Results, Segment Assets and Segment Liabilities
Year ended 30 June 2022
Revenue
Mine operating costs
Inventory movements
Royalty expense
Administration expenses
EBITDA
Foreign exchange (loss) gain
Depreciation and amortisation
Segment result (EBIT)
Finance Income
Interest expense and other costs of finance
Loss before tax
Income tax expense
Loss after tax
Segment assets
Segment liabilities
Other segment information
Capital expenditure (i)
Abra Mine
$
Exploration
$
Other Activities
$
Consolidated
$
-
-
-
-
(54,759)
(54,759)
(4,551,968)
(1,699,118)
(6,305,845)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2,966,289)
(3,021,048)
(2,966,289)
(3,021,048)
(1,595)
(4,553,563)
(181,502)
(1,880,620)
(3,149,386)
(9,455,231)
194,774
(65,230)
(9,325,687)
-
(9,325,687)
245,843,527
8,788,294
9,612,673
264,244,494
136,414,123
-
1,161,410
137,575,533
(127,053,232)
(2,139,505)
(238,075)
(129,430,812)
(i) Capital expenditure consists of additions to property, plant and equipment, assets under construction, lease assets and
exploration and evaluation assets.
(b) Geographical Information
Total Revenue
Japan
China
Total revenue
2023
$
18,971,105
10,545,758
29,516,863
2022
$
-
-
-
Galena Mining Limited | Annual Report 2023 37
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 7:
INCOME AND EXPENSES
(a) Revenue
Revenue from sale of concentrate (point in time)
Revenue from shipping services (over time)
Total revenue from contracts with customers
Realised and unrealised fair value movements on receivables
subject to QP adjustment
Total Revenue
Recognition and Measurement
2023
$
2022
$
28,039,614
1,060,701
29,100,315
416,548
29,516,863
-
-
-
-
-
Revenue from contracts with customers is recognised when control of the goods is transferred to the customer at an
amount that reflects the consideration the Group expects to receive in exchange for those goods.
The Group is principally engaged in the business of producing lead-silver concentrates. The Group has concluded that
it is the principal in its revenue contracts on the basis that it controls the goods before transferring them to the customer.
(i) Concentrate Sales
The Group’s lead-silver concentrate is sold under Cost, Insurance and Freight (“CIF”) Incoterms and allow for price
adjustments based on the market price at the end of the relevant quotational period (“QP”) determined in accordance
with the contract. These are referred to as provisional pricing arrangements and are such that the selling price for
metal in concentrate is based on prevailing forward prices on a specified future date after shipping to the customer.
Adjustments to the sales price then occur based on movements in quoted market prices up to the end of the QP. The
period between provisional invoicing and the end of the QP may vary between one and five months.
Revenue is recognised at the point in time when the lead-silver concentrate is physically transferred onto a vessel
under CIF terms. The revenue is measured at the amount to which the Group expects to be entitled, being the
estimate of the price expected to be received at the end of the QP, i.e., the forward price, and a corresponding trade
receivable is recognised. Under CIF shipping terms a portion of the transaction price is allocated to the separate
freight/shipping services.
For these provisional pricing arrangements, any future changes that occur during the QP are embedded within the
provisionally priced trade receivables. Given the exposure to the commodity price, these provisionally priced trade
receivables do not satisfy the cash flow characteristics test and are subsequently measured at fair value through the
Consolidated Statement of Profit or Loss and Other Comprehensive Income until the date of settlement. These
subsequent changes in fair value are recognised in the Consolidated Statement of Profit or Loss and Other
Comprehensive Income for each period and presented in revenue. Changes in fair value until the end of the QP are
estimated by reference to updated forward market prices for the metal contained in mineral concentrates as well as
taking into account other relevant fair value considerations, including interest rates and credit risk adjustments. The
period between provisional invoicing and the end of the QP may vary between one and five months.
(ii) Shipping Services
Where the Group makes concentrate sales on CIF terms, the Group is required to provide freight and shipping
services after the date at which the goods have transferred to the customer. The Group, therefore, has separate
performance obligations for shipping services which are provided solely to facilitate sale of the commodities it
produces.
For CIF arrangements, the transaction price (as determined above) is allocated to the metal concentrate and shipping
services using the relative stand-alone selling price method. Shipping services revenue is generally recognised over
the period of time in which the shipping services are being provided.
Galena Mining Limited | Annual Report 2023 38
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 7:
INCOME AND EXPENSES (continued)
Significant Judgements, Estimates and Assumptions
(i) Concentrate sales contract - point of revenue recognition
Control of the product is transferred to the customer when the lead-silver concentrates are physically transferred onto
a vessel as this coincides with the transfer of legal title and the risk and rewards of ownership as sales of lead-silver
concentrates are sold under CIF.
(ii) Concentrate sales contract - variable consideration
Revenue is initially recognised based on the most recently determined estimate of metal contained in lead-silver
concentrates using the expected value approach based on initial internal assay and weight results. The Group has
determined that it is highly unlikely that a significant reversal of the amount of revenue recognised will occur due to
variations in assay and weight results. Subsequent changes in the fair value based on the customer’s final assay and
weight results are recognised in revenue at the end of the QP.
(b) Cost of Sales
Mining costs
Processing costs
Site general and administration costs
Transport, logistics and shipping costs
Inventory movements
Depreciation and amortisation
Royalty expense
(c) Administration Expenses
Corporate and administration expenses
Depreciation and amortisation
Employee costs
Share-based payments
2023
$
2022
$
31,788,252
11,816,457
9,369,987
3,972,830
(2,461,997)
11,489,464
2,151,733
68,126,726
2023
$
1,403,951
1,833,039
1,622,554
1,530,287
6,389,831
-
-
-
-
-
-
-
-
2022
$
664,172
1,880,620
1,362,614
994,262
4,901,668
Galena Mining Limited | Annual Report 2023 39
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 8:
NET FINANCE COSTS
Interest Income
Finance Income
Interest expense
Interest expense on lease liabilities
Amortisation of borrowing costs
Capitalised borrowing costs to qualifying asset
Unwinding of discount on provision for rehabilitation
24
Interest expense and other costs of finance
Net finance costs
Note
2023
$
671,403
671,403
(768,692)
2022
$
194,774
194,774
-
19
(2,276,697)
(110,134)
(14,185,415)
(5,920,752)
6,472,034
(208,992)
(10,967,762)
(10,296,359)
5,920,752
44,904
(65,230)
129,544
Recognition and Measurement
Finance income comprises of interest income on funds invested. Interest income is recognised on a proportional
basis taking into account the interest rates applicable to the financial assets.
All borrowing costs, calculated using the effective interest method, are recognised in the Consolidated Statement of
Comprehensive Income except where capitalised as part of a qualifying asset. Eligible borrowing costs directly
attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take
a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time
as the assets are substantially ready for their intended use. The capitalisation rate used to determine the amount of
borrowing costs to be capitalised is the weighted average interest rate applicable to the Group’s outstanding
borrowings during the period. All other borrowing costs are recognised in the Consolidated Statement of
Comprehensive Income in the year in which they are incurred.
Galena Mining Limited | Annual Report 2023 40
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 9:
TAXES
a. Recognised in the income statement:
Current income tax
- Current income tax charge
- Adjustments in respect of previous current income tax
- Current tax not brought to account
Deferred income tax
- Relating to origination and reversal of temporary differences
- Adjustments in respect of previous deferred income tax
- Relating to origination and reversal of temporary differences
not brought to account
Income tax as reported in the statement of comprehensive
income
b. Reconciliation of income tax expense (benefit) to accounting
profit:
Accounting profit (loss) before tax from continuing operations
Income tax at the Australian tax rate of 30% (2022: 30%)
Increase / (decrease) in income tax due to:
- Non-deductible expenses
- Changes in unrecognised temporary differences
- Unused tax losses not recognised
Income tax attributable to operating loss
The following deferred tax balances have not been recognised:
c. Deferred tax assets not recognised at 30% (2022: 30%)
2023
$
2022
$
56,286,033
11,662,491
(67,948,524)
49,346,649
(1,658,915)
(47,687,734)
-
-
-
-
-
-
-
-
(61,181,994)
(18,354,598)
(9,325,687)
(2,797,706)
472,413
303,294
(38,401,534)
(1,269,305)
56,283,719
3,763,717
-
-
Carry forward revenue and capital losses
96,061,082
28,114,873
Trade and other receivables
Capital raising costs
Capital raising costs - Equity
Unrealised foreign exchange loss (gains)
Provision for employee entitlements
Provision for rehabilitation
Other
Net deferred tax asset
61,484
12,206
656,148
-
304,125
-
1,812,504
(1,683,977)
240,984
3,183,231
11,873,158
120,604
-
4,469
113,900,797
26,860,094
The carry forward revenue losses are only available for offset subject to Galena Mining Limited and Abra Mining
Pty Ltd satisfying the carried-forward loss tests for deductibility such as the Continuity of Ownership Test and the
Similar Business Test.
d. Deferred tax liabilities not recognised at 30% (2022: 30%)
Exploration expenditure
Plant and equipment
Deferred Mining
Net deferred tax liability
2,870,045
30,557,644
43,808,875
2,550,759
(213,934)
8,118,308
77,236,564
10,455,133
Galena Mining Limited | Annual Report 2023 41
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 9:
TAXES (continued)
Potential deferred tax assets and liabilities attributable to tax losses and other temporary differences have not been
brought to account at 30 June 2023 because the directors do not believe it is appropriate to regard realisation of
the deferred tax assets as probable at this point in time. These benefits will only be obtained if:
•
•
the Company derives future assessable income of a nature and of an amount sufficient to enable the
benefit from the deductions for the expenditure to be realised; and
no changes in tax legislation adversely affect the Company in realising the benefit from the deductions for
the expenditure.
Change in Corporate Tax Rate
As a result of the non-controlling ownership of Abra Mining Pty Ltd, Galena Mining Ltd and its subsidiaries should
not be considered a 'base rate entity' for income tax purposes and therefore not entitled to the reduced corporate
tax rate. The impact of this change in the corporate tax rate has been reflected in the unrecognised deferred tax
positions and the prima face income tax reconciliation.
Tax Consolidation
Galena Mining and its wholly owned Australian subsidiaries were part of an income tax consolidated group for the
entire financial year.
Recognition and Measurement
Current Income tax
The income tax expense (income) for the period comprises current income tax expense (income) and deferred tax
expense (income).
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using
applicable income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities (assets)
are therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.
Deferred tax
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during
the period as well unused tax losses.
Current and deferred income tax expense (income) is charged or credited directly to equity instead of the profit or
loss when the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where
amounts have been fully expensed but future tax deductions are available. No deferred income tax will be
recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no
effect on accounting or taxable profit or loss.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that
it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be
utilised.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the
asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting date.
Their measurement also reflects the manner in which management expects to recover or settle the carrying amount
of the related asset or liability.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint
ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary
difference can be controlled and it is not probable that the reversal will occur in the foreseeable future.
Galena Mining Limited | Annual Report 2023 42
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 9:
TAXES (continued)
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that
net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred
tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and
liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different
taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective
asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are
expected to be recovered or settled.
NOTE 10:
EARNINGS PER SHARE
2023
2022
Cents per share
Cents per share
Basic and diluted loss per share
(10.00)
(1.96)
The loss and weighted average number of ordinary shares used in this
calculation of basic and diluted loss per share are as follows:
Loss
$
$
(61,181,994)
(9,325,687)
Number
Number
Weighted average number of ordinary shares for the purposes of basic
and diluted loss per share
611,873,517
476,354,394
As the Company is in a loss position the options outstanding at 30 June 2023 have no dilutive effects on the earnings
per share calculation.
Recognition and Measurement
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Galena Mining Limited,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary
shares, outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the
financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary
shares and the weighted average number of shares assumed to have been issued for no consideration in relation to
dilutive potential ordinary shares.
Galena Mining Limited | Annual Report 2023 43
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
INVESTED CAPITAL
This section provides additional information about how the Group invests and manages its capital.
NOTE 11:
EXPLORATION AND EVALUATION EXPENDITURE
Exploration expenditure capitalised
Exploration and evaluation asset acquisition
Exploration and evaluation costs incurred
A reconciliation of the carrying amount of exploration and evaluation
expenditure is set out below:
Carrying amount at the beginning of the year
Costs capitalised during the year
Carrying amount at the end of the year
Recognition and Measurement
2023
$
2022
$
3,674,086
6,131,537
9,805,623
3,674,086
5,114,208
8,788,294
8,788,294
1,017,329
9,805,623
6,648,789
2,139,505
8,788,294
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest.
These costs are only carried forward to the extent that they are expected to be recouped through the successful
development of the area or where activities in the area have not yet reached a stage that permits reasonable
assessment of the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the period in which the
decision to abandon the area is made.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry
forward costs in relation to that area of interest.
Significant Judgements, Estimates and Assumptions
Exploration and evaluation expenditure has been capitalised on the basis that the consolidated entity will
commence commercial production in the future, from which time the costs will be amortised in proportion to the
depletion of the mineral resources.
Key judgements are applied in considering costs to be capitalised which includes determining expenditures directly
related to these activities and allocating overheads between those that are expensed and capitalised. In addition,
costs are only capitalised that are expected to be recovered either through successful development or sale of the
relevant mining interest. Factors that could impact the future commercial production at the mine include the level
of reserves and resources, future technology changes, which could impact the cost of mining, future legal changes
and changes in commodity prices. To the extent that capitalised costs are determined not to be recoverable in the
future, they will be written off in the period in which this determination is made.
Galena Mining Limited | Annual Report 2023 44
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 12:
PROPERTY, PLANT AND EQUIPMENT
Reconciliation of the carrying amounts for each class of property, plant and equipment is set out below.
2023
Mine Properties
Buildings
Plant and
Equipment
Assets under
construction
Total
$
$
$
$
$
Opening net carrying
amount
3,863,356
20,988,536
3,315,169
173,099,058
201,266,119
Additions
14,397,752
-
-
68,685,209
83,082,961
Transfer from mine under
construction
Depreciation and
amortisation
Change in rehabilitation
provision
Closing net carrying
amount
At 30 June 2023
Gross carrying amount at
cost
146,873,333
1,137,132
91,168,643
(239,179,108)
-
(6,125,971)
(1,160,010)
(3,005,304)
6,538,423
-
-
-
-
(10,291,285)
6,538,423
165,546,893
20,965,658
91,478,508
2,605,159
280,596,218
171,672,864
23,096,278
95,024,599
2,605,159
292,398,900
Accumulated depreciation
(6,125,971)
(2,130,620)
(3,546,091)
-
(11,802,682)
Closing net carrying
amount
165,546,893
20,965,658
91,478,508
2,605,159
280,596,218
2022
Mine Properties
Buildings
$
1,622,978
-
-
-
Opening net carrying
amount
Additions
Transfer from mine under
construction
Depreciation and
amortisation
Change in rehabilitation
provision
Closing net carrying
amount
At 30 June 2022
Gross carrying amount at
cost
Plant and
Equipment
Assets under
construction
Total
$
$
$
117,972
63,560,746
65,301,696
238,074
134,948,121
135,186,195
$
-
-
21,959,146
3,450,663
(25,409,809)
-
(970,610)
(491,540)
2,240,378
-
-
-
-
(1,462,150)
2,240,378
3,863,356
20,988,536
3,315,169
173,099,058
201,266,119
3,863,356
21,959,146
3,806,709
173,099,058
202,728,269
Accumulated depreciation
-
(970,610)
(491,540)
-
(1,462,150)
Closing net carrying
amount
3,863,356
20,988,536
3,315,169
173,099,058
201,266,119
Galena Mining Limited | Annual Report 2023 45
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 12:
PROPERTY, PLANT AND EQUIPMENT (continued)
Recognition and Measurement
Mine Properties
Mine Properties include expenditures incurred to develop new ore bodies to define further mineralisation in existing
ore bodies, to expand the capacity of a mine and to maintain production. Mine Properties also includes costs
transferred from exploration and evaluation phase once a final investment decision is made and construction
commences in the area of interest.
Mine property and development assets are stated at historical cost less accumulated amortisation and any
accumulated impairment losses recognised. The initial cost of an asset comprises its purchase price or construction
cost, any costs directly attributable to bringing the asset into operation, the initial estimate of the rehabilitation
obligation, and for qualifying assets (where relevant) borrowing costs. Any ongoing costs associated with mining
which are considered to benefit mining operations in future periods are capitalised.
Buildings, Plant and Equipment
Buildings, plant and equipment are stated at historical cost less accumulated depreciation and impairment.
Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of building, plant, and
equipment over their expected useful lives. The residual values, useful lives and depreciation methods are
reviewed, and adjusted if appropriate, at each reporting date.
An item of building and plant and equipment is derecognised upon disposal or when there is no future economic
benefit to the Group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit
or loss. Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits.
Useful lives
The useful lives of assets are estimated as follows:
Category
Buildings
Plant and Equipment
Depreciation Method
20 years
2 to 15 years
Assets Under Construction
No depreciation
Mine Property and Development
Units of ore extracted basis over the life of mine or straight line over the
life of mine
Right of Use Assets (note 19)
Straight line over the shorter of the lease term and life of the asset
Galena Mining Limited | Annual Report 2023 46
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 12:
PROPERTY, PLANT AND EQUIPMENT (continued)
Significant Judgements, Estimates and Assumptions
Estimation of useful lives of assets
The consolidated entity determines the estimated useful lives and related depreciation and amortisation charges
for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as
a result of technical innovations or some other event. The depreciation and amortisation charge will increase where
the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have
been abandoned or sold will be written off or written down.
Impairment of Property, Plant and Equipment and Mine Under Construction
The consolidated entity assesses impairment of non-financial assets at each reporting date by evaluating conditions
specific to the consolidated entity and to the particular asset that may lead to impairment. If an impairment trigger
exists, the recoverable amount of the asset is determined. This involves fair value less costs of disposal or value-
in-use calculations, which incorporate a number of key estimates and assumptions.
It is reasonably possible that the underlying metal price assumption may change which may then impact the
estimated life of mine determinant and may then require a material adjustment to the carrying value of mining plant
and equipment, mining infrastructure and mining development assets. Furthermore, the expected future cash flows
used to determine the value-in-use of these assets are inherently uncertain and could materially change over time.
They are significantly affected by a number of factors including reserves and production estimates, together with
economic factors such as metal spot prices, discount rates, estimates of costs to produce reserves and future
capital expenditure.
NOTE 13:
CAPITAL AND OTHER COMMITMENTS
Capital commitments
2023
$
2022
$
2,572,108
47,164,702
At 30 June 2023, the Group has capital commitments that principally relate to the purchase and maintenance of
plant and equipment for mining operations.
Mineral tenement lease commitments
Within one year
Between 1 and 5 years
Above 5 years
544,534
857,722
3,060,704
4,462,960
508,383
510,004
3,296,343
4,314,730
The Company has commercial leases over the tenements in which the mining operations are located. These
tenements leases have a life between six months to twenty-one years. To maintain current rights to explore and
mine the tenements, the Group is required to perform minimum exploration work to meet the expenditure
requirements specified by the relevant state governing authority.
CAPITAL AND DEBT STRUCTURE
This section provides additional information about the Group’s business and management policies that the directors
consider is most relevant in understanding the business and management of the Group’s capital and debt structure.
Galena Mining Limited | Annual Report 2023 47
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 14:
CAPITAL MANAGEMENT
For the purpose of the Group’s capital management, capital includes issued capital and all other equity reserves
attributable to the equity holders of the parent. The primary objective of the Group’s capital management is to
ensure that it maintains a strong balance sheet and healthy capital ratios in order to support its business and
maximise shareholder value.
In order to achieve this overall objective, the Group’s capital management, amongst other things, aims to ensure
that it meets financial covenants attached to its interest-bearing loans and borrowings that form part of its capital
structure requirements. Breaches in the financial covenants without a waiver could permit the lender to immediately
call interest-bearing loans and borrowings. There have been no breaches in the financial covenants of any interest-
bearing loans and borrowings in the current or prior period.
The Group monitors capital using a gearing ratio, which is net debt divided by the aggregate of equity and net debt.
The Group includes in its net debt, interest-bearing loans and borrowings, lease liabilities, trade and other payables,
less cash and cash equivalents.
Interest-bearing loans and borrowings
Lease liabilities
Trade and other payables
Less cash and cash equivalents
Net debt
Equity
Capital and net debt
Gearing ratio
NOTE 15:
INTEREST BEARING LOANS AND BORROWINGS
Current
Secured US$110 million Taurus Debt Facilities (i)
June 2027
Maturity
CBH Resources WA Pty Ltd
Total Current
Non-Current
2023
$
2022
$
168,728,054
113,401,922
44,864,425
38,710,617
1,986,373
17,780,287
(19,342,915)
(48,219,668)
232,960,181
84,948,914
101,829,435
126,668,961
334,789,616
211,617,875
70%
40%
2023
$
26,549,327
4,000,000
30,549,327
2022
$
-
-
-
Secured US$110 million Taurus Debt Facilities (i)
June 2027
130,178,727
113,401,922
CBH Resources WA Pty Ltd
Total Non-Current
8,000,000
-
138,178,727
113,401,922
(i) Balance includes an unrealised foreign exchange loss of $5,730,270 at 30 June 2023 (2022: $4,550,894).
Secured US$110 million Taurus Debt Facilities
In November 2020, the Company put in place US$110 million in finalised debt facilities arranged by Taurus Funds
Management. The facilities include a US$100 million project finance facility (“Facility A”) plus a US$10 million cost
overrun or working capital facility (“Facility B”). As at 30 June 2023, a total of US$110 million has been drawn
under the Taurus Debt Facilities.
Facility A consists of a US$100 million, 69-month term loan primarily to fund capital expenditures for the
development of the Abra mine. Key terms include:
•
•
Fixed interest of 8.0% per annum on drawn amounts, payable quarterly in arrears.
1.125% net smelter return royalty.
Galena Mining Limited | Annual Report 2023 48
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 15:
INTEREST BEARING LOANS AND BORROWINGS (continued)
• No mandatory hedging.
•
• Early repayment allowed without penalty.
Fixed repayments over 15 quarters with the first repayment on 31 December 2023.
Facility B consists of a US$10 million loan to finance identified cost overruns on the Project in capital expenditure
and working capital. Fixed interest of 10.0% per annum will apply to amounts drawn under Facility B. The Taurus
Debt Facilities are secured against Abra Project assets and over the shares that each of Galena and Toho own in
AMPL.
There have been no breaches in the covenants of any interest bearing loans and borrowings in the current or prior
period.
Unsecured Reserve Facility (“URF”)
The URF of $30 million, was contributed $18 million by Galena and $12 million by the Company’s joint-venture
partner Toho through its wholly owned subsidiary CBH Resources WA Pty Ltd. The URF is available during the
critical commissioning and initial ramp-up stages of the Abra mine, up until the Project Completion tests are satisfied
under the Taurus Debt Facilities.
Its purpose is to provide a working capital and cost buffer for AMPL to draw in the event of unforeseen
circumstances and costs such as weather-related road or port closures or other events. Any drawn amounts will
become unsecured shareholder loans to AMPL whilst undrawn amounts together with any interest earned will be
returned to each of Galena and Toho in their respective 60:40 share. As at 30 June 2023, a total of $20 million was
drawn under the URF and $10 million remains undrawn.
Interest bearing loans and borrowings are recognised initially at fair value, net of directly attributable transaction
costs incurred. Interest bearing loans and borrowings are subsequently stated at amortised cost and any difference
between the proceeds, net of transactions costs, and the redemption value is recognised in profit or loss over the
period of the borrowings using the effective interest method.
Interest bearing loans and borrowings are derecognised when the obligation specified in the contract is discharged,
cancelled or has expired. The difference between the carrying amount of the financial liability and the consideration
paid, including any non-cash assets, is recognised in profit or loss as finance costs.
Finance costs attributable to qualifying assets are capitalised as part of the asset and amortised over the life of the
loan. All other finance costs are expensed in the period in which they are incurred.
Galena Mining Limited | Annual Report 2023 49
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 16:
ISSUED CAPITAL
2023
No.
2023
$
2022
No.
2022
$
Movement in ordinary shares
Balance at beginning of period
476,405,353
48,287,278 476,105,353
48,006,327
Shares issued
270,533,334
37,150,000
-
-
Shares issued under share-based payments (ii)
5,630,000
1,293,219
300,000
280,951
Share issue costs
-
(2,393,919)
-
-
Balance at reporting date
752,568,687
84,336,578 476,405,353
48,287,278
(ii) The value recorded in issued capital on conversion of shares under share-based payments represents the original fair value
of the award in the share-based payment reserve that is transferred from the share-based payment reserve to issued capital
on exercise, as well as any consideration received on exercise.
Recognition and Measurement
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.
Terms and conditions of issued capital
Ordinary shares participate in dividends and the proceeds on winding up of the Company in proportion to the
number of shares held. The fully paid ordinary shares have no par value.
At the shareholders’ meetings each ordinary share is entitled to one vote when a poll is called, otherwise each
shareholder has one vote on a show of hands.
NOTE 17:
SHARE-BASED PAYMENT RESERVE
The share-based payment reserve records items recognised as expenses on valuation of employees’ and
consultants’ options.
Opening balance 1 July
Share-based payments vesting expense
Share-based payments issued
Closing balance 30 June
Refer to note 25 for valuation technique and assumptions.
2023
$
1,905,922
1,530,287
(1,237,119)
2,199,090
2022
$
1,657,270
994,262
(745,610)
1,905,922
Galena Mining Limited | Annual Report 2023 50
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 18:
FINANCIAL RISK MANAGEMENT
The Group’s activities expose it to a variety of financial risks, including commodity price risk, interest rate risk,
market risk, currency risk, credit risk and liquidity risk. The Group’s overall risk management program focuses on
the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial
performance. The senior executives of the Group meet on a regular basis to analyse treasury risks and evaluate
risk management strategies in the context of the prevailing economic conditions and forecasts. Risk management
policies are approved and reviewed by the Board on a regular basis.
The group’s financial instruments are as follows:
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial liabilities
Trade and other payables
Unearned revenue
Interest bearing liabilities
Lease liabilities
Commodity Price Risk
2023
$
2022
$
19,342,915
48,219,668
2,769,702
1,469,987
22,112,617
49,689,655
38,710,617
17,780,287
306,280
-
168,728,054
113,401,922
44,864,425
1,986,373
252,609,376
133,168,582
The prices of lead and silver are affected by numerous factors and events that are beyond the control of the Group.
These metal prices change daily and can vary up and down, over time. The factors impacting metal prices include
broader macro-economic developments and factors impacting the demand and supply specific to each metal.
The following table details the sensitivity of the Group’s financial assets balances to movements in commodity
prices. At 30 June 2023, the Group’s outstanding provisionally priced sales contract amounted to $1,030,129 (2022:
Nil). At the reporting date, if commodity prices increased / (decreased) by 10%, and all other variables were held
constant, the Group’s after-tax profit / loss for the year would have changed as set out below:
30 June 2023
Concentrate
Lead
Total
Commodity Price
Movement
Price Increase –
Increase Profit /
Equity
Price Decrease –
Decrease Profit /
Equity
10%
103,013
103,013
(103,013)
(103,013)
Galena Mining Limited | Annual Report 2023 51
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 18:
FINANCIAL RISK MANAGEMENT (continued)
Interest Rate Risk
The Group is exposed to interest rate risk primarily through interest-bearing liabilities (note 15), cash and cash
equivalents (note 20), and lease liabilities (note 19). The Group manages interest rate risk by monitoring immediate
and forecast cash requirements and ensuring adequate cash reserves are maintained.
At the reporting date the interest rate profile of the Group’s interest-bearing financial instruments was as follows.
Fixed rate instruments
Term deposits
Interest bearing liabilities
Lease liabilities
Variable rate instruments
Cash and cash equivalents
2023
$
2022
$
158,102
122,857
168,728,054
113,401,922
44,864,425
1,986,373
213,750,581
115,511,152
19,342,915
48,219,668
19,342,915
48,219,668
The following table illustrates sensitivities to the Consolidated Entity’s exposures to changes in interest rates and
equity prices. These sensitivities assume that the movement in a particular variable is independent of other
variables.
Year ended 30 June 2023
+/- 1% interest rate
Year ended 30 June 2022
+/- 1% interest rate
Profit or Loss
$
Equity
$
+/- 193,429
+/- 193,429
+/- 482,197
+/- 482,197
Galena Mining Limited | Annual Report 2023 52
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 18:
FINANCIAL RISK MANAGEMENT (continued)
Currency risk
The Group is exposed to currency risk on bank balances, payables and receivables that are denominated in a
currency other than the functional currency in which they are measured.
The Group is primarily exposed to changes in the US dollar exchange rate in relation to the price of commodities
produced by the Group which are priced in US dollar terms and the carrying value of its US dollar denominated
debt and cash holdings. The Group manages foreign currency risk by borrowing in US dollar terms and by regularly
reviewing its exposure to US dollar fluctuations.
The Australian dollar carrying amount of the Group’s US dollar financial assets and liabilities by its currency risk
exposure at the reporting date is disclosed below:
Cash and cash equivalents
Trade and other receivables
Trade and other payables
Interest bearing liabilities
Net exposure
2023
$
(400,502)
(1,030,129)
2022
$
-
-
57,095
28,861
156,728,054
113,401,922
155,354,518
113,430,783
The following significant exchange rates applied during the year:
AUD:USD
Average Rate
2023
0.673432
Average Rate
2022
0.725598
Spot Rate
30 June 2023
0.662917
Spot Rate
30 June 2022
0.689198
Based on the financial instruments held at reporting date, had the functional currency weakened / strengthened by
10%, and all other variables held constant, the group’s after-tax profit / loss and equity for the year would have
been decreased / increased by the amounts shown below.
Year ended 30 June 2023
+/- 10% foreign exchange rate
Year ended 30 June 2022
+/- 10% foreign exchange rate
Credit Risk
Profit or Loss
$
Equity
$
+/- 15,535,452
+/- 15,535,452
+/- 11,343,078
+/- 11,343,078
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to
the Group.
The Group is exposed to counterparty credit risk through sales of metal products on normal terms of trade and
deposits of cash held with financial institutions.
The most significant exposure to credit risk is through sales of metal products on normal terms of trade. All sales
for mining operations were made under contractual arrangements whereby provisional payment is received
promptly after loading of ship and is generally 90-95% of estimated value at that time (Refer to note 7a).
The Group held cash and cash equivalents of $19,342,915 at 30 June 2023 (2022: $48,219,668). The cash and
cash equivalents are held with financial institutions which are rated AA-, based on Standard & Poor’s credit ratings.
The Group considers that its cash and cash equivalents have low credit risk based on the external credit ratings of
the counterparties.
Galena Mining Limited | Annual Report 2023 53
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 18:
FINANCIAL RISK MANAGEMENT (continued)
At the reporting date, the carrying amounts of financial assets are adjusted for any impairment and represent the
Group’s maximum exposure to credit risk, excluding the value of any collateral or other security, as shown below.
Cash and cash equivalents
Trade and other receivables
Net exposure
Liquidity risk
2023
$
2022
$
19,342,915
48,219,668
2,769,702
1,469,987
22,112,617
49,689,655
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with financial
liabilities.
The Group manages liquidity risk by conducting regular reviews of the timing of cash outflows, and short and long-
term cash flow forecasts, in order to ensure sufficient funds are available to meet its obligations.
Financial liability and financial asset maturity analysis
1 year or less
$
Between
1 & 2 years
$
Between
2 & 5 years
$
5 years
plus
$
Total
$
2023
Non-Derivatives
Financial Assets
Cash and cash equivalents
19,342,915
Trade and other receivables
2,769,702
-
-
-
-
Financial Liabilities
Trade and other payables
(23,710,617)
(10,000,000)
(5,000,000)
-
-
-
19,342,915
2,769,702
(38,710,617)
Lease liabilities
(3,362,469)
(3,551,267)
(16,356,912)
(21,593,772)
(44,864,420)
Loans and borrowings
(27,817,029)
(42,370,739)
(98,540,286)
-
(168,728,054)
Net Financial Assets
(32,777,498)
(55,922,006)
(119,897,198)
(21,593,772)
(230,190,474)
1 year or less
$
Between
1 & 2 years
$
Between
2 & 5 years
$
5 years
plus
$
Total
$
2022
Non-Derivatives
Financial Assets
Cash and cash equivalents
48,219,668
Trade and other receivables
1,469,987
Financial Liabilities
Trade and other payables
(17,780,287)
-
-
-
-
-
-
Lease liabilities
Loans and borrowings
(812,824)
(365,045)
(811,504)
-
(25,536,928)
(87,864,994)
Net Financial Assets
31,096,544
(25,901,973)
(88,676,498)
-
-
-
-
-
-
48,219,668
1,469,987
(17,780,287)
(1,986,373)
(113,401,922)
(83,481,927)
Fair value of financial instruments
Unless otherwise stated, the carrying amount of financial instruments reflects their fair value.
Galena Mining Limited | Annual Report 2023 54
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 18:
FINANCIAL RISK MANAGEMENT (continued)
Recognition and Measurement
Financial Instruments
Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions
to the instrument. For financial assets, this is equivalent to the date that the Company commits itself to either the
purchase or sale of the asset.
Financial instruments are initially measured at fair value plus transactions costs except where the instrument is
classified ‘at fair value through profit or loss in which case transaction costs are expensed to profit or loss
immediately.
Classification and Subsequent Measurement
Financial instruments are subsequently measured at fair value, amortised cost using the effective interest
method, or cost.
Amortised cost is calculated as the amount at which the financial asset or financial liability is measured at initial
recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative
amortization of the difference between that initial amount and the maturity amount calculated using the effective
interest method.
Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are
applied to determine the fair value for all unlisted securities, including recent arm’s length transactions,
reference to similar instruments and option pricing models.
The effective interest method is used to allocate interest income or interest expense over the relevant period
and is equivalent to the rate that discounts estimated future cash payments or receipts (including fees,
transaction costs and other premiums or discounts) over the expected life (or when this cannot be reliably
predicted, the contractual term) of the financial instruments to the net carrying amount of the financial asset or
financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying
amount with a consequential recognition of an income or expense item in profit or loss.
The Company does not designate any interests in subsidiaries, associates or joint venture entiti es as being
subject to the requirements of accounting standards specifically applicable to financial instruments.
(i)
Financial assets at fair value through profit or loss
Financial assets are classified at “fair value through profit or loss” when they are held for trading for the purpose of
short-term profit taking, derivatives not held for hedging purposes, or when they are designated as such to avoid
an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key
management personnel on a fair value basis in accordance with a documented risk management or investment
strategy. Such assets are subsequently measured at fair value with changes in carrying amount being included in
profit or loss.
(ii)
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted
in an active market and are subsequently measured at amortised cost.
Loans and receivables are included in current assets, where they are expected to mature within 12 months after
the end of the reporting period.
(iii)
Financial Liabilities
Non-derivative financial liabilities other than financial guarantees are subsequently measured at amortised cost.
Gains or losses are recognised in profit or loss through the amortisation process and when the financial liability is
derecognised.
Galena Mining Limited | Annual Report 2023 55
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 19:
LEASES
The Group has lease contracts for certain plant and equipment and for its corporate office. The plant and equipment
lease terms range from three to sixteen years and the corporate office has a five-year lease term. The Group’s
obligations under its leases are secured by the lessor’s title to the leased assets.
Set out below are the carrying amounts of right-of-use assets recognised and the movements during the period:
Right-Of Use Assets
Corporate Office
At 1 July net of accumulated depreciation
Additions
Reassessment
Depreciation charge for the year
At 30 June net of accumulated depreciation
Plant and Equipment
At 1 July net of accumulated depreciation
Additions
Reassessment
Depreciation charge for the year
At 30 June net of accumulated depreciation
2023
$
833,941
-
(679)
(188,602)
644,660
2,126,602
45,246,106
(36,143)
(2,842,616)
44,493,949
2022
$
37,091
944,084
-
(147,234)
833,941
1,807,262
590,576
-
(271,236)
2,126,602
Total Right-Of-Use Assets
45,138,609
2,960,543
Set out below are the carrying amounts of lease liabilities and the movements during the period:
Lease Liabilities
Balance at beginning of period
Additions
Reassessment
Accretion of interest
Payments
2023
$
1,986,373
45,246,107
(36,789)
2,276,697
(4,607,963)
2022
$
1,392,925
1,534,658
-
110,134
(1,051,344)
Balance at reporting date
44,864,425
1,986,373
Current
Non-current
Depreciation expense for right-of use assets
Interest expense on lease liabilities
Total amount recognised in profit or loss
3,362,474
41,501,951
812,824
1,173,549
3,031,218
2,276,697
5,307,915
418,470
110,134
528,604
Galena Mining Limited | Annual Report 2023 56
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 19:
LEASES (continued)
Recognition and Measurement
Right-of-Use Assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at
cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made
at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and,
except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and
removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated
useful life of the asset, whichever is the shorter. Where the 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.
Lease Liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the
present value of the lease payments to be made over the term of the lease, discounted using the interest rate
implicit in the lease or, if that rate cannot be readily determined, the 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.
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.
Significant Judgements, Estimates and Assumptions
Lease term
The lease term is a significant component in the measurement of both the right-of-use asset and lease liability.
Judgement is exercised in determining whether there is reasonable certainty that an option to extend the lease or
purchase the underlying asset will be exercised, or an option to terminate the lease will not be exercised, when
ascertaining the periods to be included in the lease term. In determining the lease term, all facts and circumstances
that create an economical incentive to exercise an extension option, or not to exercise a termination option, are
considered at the lease commencement date. Factors considered may include the importance of the asset to the
consolidated entity's operations; comparison of terms and conditions to prevailing market rates; incurrence of
significant penalties; existence of significant leasehold improvements; and the costs and disruption to replace the
asset. The consolidated entity reassesses whether it is reasonably certain to exercise an extension option, or not
exercise a termination option, if there is a significant event or significant change in circumstances.
Incremental borrowing rate
Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is estimated
to discount future lease payments to measure the present value of the lease liability at the lease commencement
date. Such a rate is based on what the consolidated entity estimates it would have to pay a third party to borrow
the funds necessary to obtain an asset of a similar value to the right-of-use asset, with similar terms, security and
economic environment.
Galena Mining Limited | Annual Report 2023 57
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
WORKING CAPITAL
This section provides additional information that the directors consider most relevant in understanding the
composition and management of the Group’s working capital.
NOTE 20:
CASH AND CASH EQUIVALENTS
Cash at bank
Term deposits at call
Total Cash and Cash Equivalents
2023
$
2022
$
19,342,915
48,194,668
-
25,000
19,342,915
48,219,668
Reconciliation to cash and cash equivalents at the end of the financial year
The above figure is reconciled to cash and cash equivalents at the end of the financial year as shown in the
statement of cash flows as follows:
Balance as above
Balance as per statement of cash flows
Recognition and Measurement
19,342,915
48,219,668
19,342,915
48,219,668
Cash and cash equivalents include cash on hand, deposits held at call with banks and other short-term highly liquid
investments with original maturities of 3 months or less.
Cash flow information
A reconciliation of cash flow from operating activities is as follows:
Reconciliation of Cash Flow from Operations with Loss after
Income Tax
Loss after income tax
Non-cash flows in loss:
Share-based payments
Depreciation and amortisation
Unrealised foreign exchange loss
Other non-cash items
Changes in assets and liabilities:
2023
$
2022
$
(61,181,994)
(9,325,687)
1,530,287
13,322,503
5,727,431
10,199,104
994,262
1,880,620
4,553,563
65,226
(30,402,669)
(1,832,016)
(Increase)/decrease in trade and other receivables
(1,296,863)
(1,365,892)
(Increase)/decrease in inventories
(Increase)/decrease in prepayments
(6,289,388)
-
(700,013)
(1,316,213)
Increase/(decrease) in trade payables and accruals
8,371,120
(2,125,013)
Increase/(decrease) in provisions
Cashflow from operating activities
589,177
316,127
(29,728,636)
(6,323,007)
Galena Mining Limited | Annual Report 2023 58
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 20:
CASH AND CASH EQUIVALENTS (continued)
Changes in Liabilities arising from Financing Activities
Balance at 1 July 2021
Net cash provided by / (used in) financing activities
Acquisition and reassessment of leases
Foreign exchange loss
Accretion of interest
Balance at 30 June 2022
Interest Bearing
Loans and
Borrowings
Lease
Liabilities
31,852,545
1,392,925
76,998,483
(1,051,344)
-
1,534,658
4,550,894
-
-
110,134
113,401,922
1,986,373
Net cash provided by / (used in) financing activities
48,603,208
(4,235,605)
Accrued payments
Acquisition of leases
Foreign exchange loss
Amortisation
Interest Payments
Accretion of interest
Balance at 30 June 2023
NOTE 21:
TRADE AND OTHER RECEIVABLES
Current
GST receivable
Other trade receivables
Guarantees
Total Trade and Other Receivables
-
-
(372,358)
45,209,318
5,730,284
14,185,415
(13,192,775)
-
-
-
-
2,276,697
168,728,054
44,864,425
2023
$
1,262,313
1,349,287
158,102
2,769,702
2022
$
1,369,661
2,469
97,857
1,469,987
Trade receivables (subject to provisional pricing) are non-interest bearing, are exposed to future commodity price
movements over the QP and, hence, do not satisfy the solely payments of principal and interest (“SPPI”) test, and,
as a result, are measured at fair value up until the date of settlement. These trade receivables are initially measured
at the amount which the Group expects to receive, being the estimate of the price expected to be received at the
end of the QP.
Approximately 90 - 95% of the provisional invoice is received in cash when the goods are loaded onto the ship or
accepted by the buyer under a holding certificate, which reduces the initial receivable recognised. The QP’s can
range between one- and five-months post shipment and final payment is due within 30 days from the end of the
QP.
Recognition and Measurement
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the
effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for
settlement within 30 days from the date of recognition, with any mark to market adjustment due for settlement
usually from 30-120 days.
Galena Mining Limited | Annual Report 2023 59
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 22:
INVENTORIES
Ore stockpiles at net realisable value
Concentrates at net realisable value
Stores and spares at cost
Inventories at lower of cost and net realisable value
2023
$
32,218
4,814,169
1,443,001
6,289,388
2022
$
-
-
-
-
During the year there were write-downs of inventories to net realisable value of $5,409,048 (2022: Nil), which are
included in cost of sales (refer to note 7b).
Recognition and Measurement
Lead-silver concentrate and ore stockpiles are physically measured or estimated and valued at the lower of cost or
net realisable value. Net realisable value is the estimated future sales price of the product the entity expects to
realise when the product is processed and sold, less estimated costs to complete production and bring the product
to sale.
Cost is determined by using the weighted-average method and comprises direct purchase costs and an appropriate
portion of fixed and variable overhead costs, including depreciation and amortisation, incurred in converting
materials into finished goods, based on the normal production capacity. The cost of production is allocated to joint
products using a ratio of spot prices by volume at each month end. Separately identifiable costs of conversion of
each metal are specifically allocated.
Stores and consumables are valued at the lower of cost or net realisable value. Any provision for obsolescence is
determined by reference to specific items of stock. A regular review is undertaken to determine the extent of any
provision for obsolescence.
Significant Judgements, Estimates and Assumptions
Net realisable value tests are performed at each reporting date and represent the estimated future sales price of
the product the entity expects to realise when the product is processed and sold, less estimated costs to complete
production and bring the product to sale.
Concentrate and ore stockpiles are measured by estimating the number of tonnes added and removed from the
stockpiles, the number of contained metal based on assay data, and the estimated recovery percentage is based
on the expected processing method.
Stockpile tonnages are verified by regular surveys.
NOTE 23:
TRADE AND OTHER PAYABLES
2023
$
2022
$
Current
Sundry payables and accrued expenses
38,710,617
17,780,287
Recognition and Measurement
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial
year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not
discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
Galena Mining Limited | Annual Report 2023 60
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
OTHER
This section provides additional information about various other disclosures including some disclosures that the
directors of the Group consider to be less significant to the users of the financial statements.
NOTE 24:
PROVISIONS
Current
2023
$
2022
$
Provisions for employee entitlements
1,132,772
543,595
Non-Current
Provision for mine rehabilitation
10,610,771
3,863,356
The movement in the provision for mine rehabilitation is set out
below:
Balance at beginning of period
Arising during the year
Unwinding of discount
Balance at reporting date
Recognition and Measurement
Provisions
3,863,356
6,538,423
208,992
10,610,771
1,667,882
2,240,378
(44,904)
3,863,356
Provisions are recognised when the Company has a legal or constructive obligation, as a result of past events, for
which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.
Employee Benefits
Provision is made for the company’s liability for employee benefits arising from services rendered by employees to
balance date. Employee benefits that are expected to be settled within a 12 month period have been measured at
the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later
than 12 months have been measured at the present value of the estimated future cash outflows to be made for
those benefits.
Mine Rehabilitation
Provisions are made for the estimated cost of rehabilitation, restoration and dismantling relating to areas disturbed
during the mine’s construction up to the reporting date, but not yet rehabilitated. The provision has been made in
full for all the disturbed areas at the reporting date based on current estimates of costs to rehabilitate such areas,
discounted to their present value based on expected future cash flows. Changes in estimates are dealt with on a
prospective basis as they arise.
The provision is recognised as a liability with a corresponding asset included in mine properties and development
(note 12). The corresponding asset is included only to the extent that it is probable that future economic benefits
associated with the restoration expenditure will flow to the entity, otherwise a corresponding expense is recognised
in the statement of profit and loss.
Galena Mining Limited | Annual Report 2023 61
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 24:
PROVISIONS (continued)
At each reporting date, the rehabilitation liability is remeasured in line with changes in discount rates, and the
expected timing or amounts of the costs to be incurred. Mine rehabilitation provisions are adjusted for changes in
estimates. Adjustments to the estimates amount and timing of future rehabilitation and restoration cash flows are a
normal occurrence in light of the significant judgements and estimates involved. Changes in the liability relating to
mine rehabilitation are added to or deducted from the related asset, other than the unwinding of discount on
provisions, which is recognised as a finance cost in the statement of profit and loss.
Significant Judgements, Estimates and Assumptions
Employee benefits provision
The liability for employee benefits expected to be settled more than 12 months from the reporting date are
recognised and measured at the present value of the estimated future cash flows to be made in respect of all
employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay
increases through promotion and inflation have been taken into account.
Rehabilitation provision
A provision has been made for the present value of anticipated costs for future rehabilitation of land explored or
mined. The consolidated entity'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.
NOTE 25:
SHARE-BASED PAYMENTS
Grant Date / entitlement
Number of
Instruments
Grant Date Fair value per
instrument $
Value $
Performance Rights issued on
2 March 2022 exercisable on
or before 2 March 2027 (i)
Total value at 30 June 2022
7,500,000
02/03/2022
0.1751
1,313,600
1,313,600
The Company did not issue any new employee share and option schemes during the year ending 30 June 2023.
The below inputs have been adjusted to ensure they are on a post-split basis.
Galena Mining Limited | Annual Report 2023 62
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 25:
SHARE BASED PAYMENTS (continued)
(i) 7,500,000 Performance Rights issued as part of Chief Executive Officer’s employment agreement have been
calculated using Black-Scholes option pricing model with the following inputs:
Expected volatility (%)
Risk free interest rate (%)
Weighted average expected life of options (years)
Expected dividends
Option exercise price ($)
Share price at grant date ($)
Fair value of option ($)
Expiry date
Performance Rights
Granted on
2 March 2022
60
1.75
5
Nil
Nil
0.215
0.1751
2 March 2027
Reconciliation of the number of Options, Performance Rights and Share Appreciation Rights
Opening balance at 1 July
Issued
Expired / lapsed
Exercised
Other changes
Closing balance 30 June
Recognition and Measurement
Equity-settled compensation
2023
Number
26,045,000
-
(5,000,000)
(5,630,000)
-
15,415,000
2022
Number
20,110,000
7,500,000
(1,265,000)
(300,000)
-
26,045,000
The Company operates equity-settled share-based payment employee share and option schemes. The fair value
of the equity to which employees become entitled is measured at grant date and recognised as an expense over
the vesting period, with a corresponding increase to an equity account. The fair value of shares is ascertained as
the market bid price. The fair value of options is ascertained using a Black –Scholes pricing model which
incorporates all market vesting conditions. The number of shares and options expected to vest is reviewed and
adjusted at the end of each reporting date such that the amount recognised for services received as consideration
for the equity instruments granted shall be based on the number of equity instruments that eventually vest.
Significant Judgements, Estimates and Assumptions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the
equity instruments at the date at which they are granted. Significant judgement may be required in determining the
valuation technique adopted. The fair value of the options issued in the current period are determined by an internal
valuation using a Black-Scholes option pricing model. The assumptions detailed in this note are also judgemental.
For equity transactions with consultants and other employees, the fair value reflects the value attributable to
services where applicable. Where there is no quantifiable value of services the value of options is calculated using
the Black-Scholes option pricing model or in the case of share grants, the fair value of an ordinary share is utilised.
For instruments issued with market-based conditions, alternative valuation methodologies would be adopted.
NOTE 26:
CONTINGENT ASSETS AND LIABILITIES
In the opinion of the directors there were no contingent assets or liabilities as at 30 June 2023.
Galena Mining Limited | Annual Report 2023 63
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2023
NOTE 27:
AUDITORS’ REMUNERATION
Remuneration of the auditor of the parent entity for:
- Auditing or reviewing the financial report of consolidated group
- Reviewing the financial report of subsidiary
- Fees for other assurance and agreed upon procedures services
and other legislation or contractual arrangements where there is
discretion as to whether the service is provided by the auditor or
another firm
- Tax compliance
2023
$
119,500
10,000
10,250
2022
$
82,000
8,500
-
1,650
141,400
25,700
116,200
NOTE 28:
SIGNIFICANT EVENTS AFTER REPORTING PERIOD
On 7 August 2023, Galena Mining Ltd announced an update to its JORC Code 2012 Mineral Resources Estimate
(refer ASX announcement dated 7 August 2023). Details of this update is set out in this report under “Review of
Operations”.
On 18 August 2023, the Company announced the high-grade drilling results received after the data cut-off
associated with the 2023 Mineral Resource Estimate which was released on 7 August 2023 (refer ASX
announcement dated 18 August 2023).
No other matter or circumstance has arisen since the end of the audited period which significantly affected or may
significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group
in future financial periods.
Galena Mining Limited | Annual Report 2023 64
DIRECTORS’ DECLARATION
In accordance with a resolution of the directors of Galena Mining Limited, the directors of the company declare
that:
the financial statements, notes and the remuneration report in the Directors’ Report are in accordance with
1.
the Corporations Act 2001, including:
(i)
(ii)
giving a true and fair view of the financial position of the Consolidated Entity as at 30 June
2023 and of its performance, for the year ended on that date; and
complying with Australian Accounting Standards (including International Financial Reporting
Standards) and the Corporations Regulations 2001;
2.
in the directors' opinion there are reasonable grounds to believe that the company will be able to pay its
debts as and when they become due and payable;
This declaration has been made after receiving the declarations required to be made to the directors in accordance
with sections of 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors.
Adrian Byass
Chairman
Perth, 23 August 2023
Galena Mining Limited | Annual Report 2023 65
PKF Perth
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
GALENA MINING LIMITED
Report on the Financial Report
Opinion
We have audited the accompanying financial report of Galena Mining Limited (the “Company”), which comprises
the consolidated statement of financial position as at 30 June 2023, the consolidated statement of profit or loss
and other comprehensive income, the consolidated statement of changes in equity and the consolidated
statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies
and other explanatory information, and the Directors’ Declaration of the Company and the consolidated entity
comprising the Company and the entities it controlled at the year’s end or from time to time during the financial
year.
In our opinion the accompanying financial report of Galena Mining Limited is in accordance with the Corporations
Act 2001, including:
i) Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2023 and of its
performance for the year ended on that date; and
ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of
our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
We are independent of the consolidated entity in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
Level 4, 35 Havelock Street, West Perth, WA 6005
PO Box 609, West Perth, WA 6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions
or inactions of any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
Galena Mining Limited | Annual Report 2023 66
PKF Perth
Key Audit Matters
A key audit matter is a matter that, in our professional judgement, was of most significance in our audit of the
financial report of the current year. These matters were addressed in the context of our audit of the financial report
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For
each matter below, our description of how our audit addressed these matters is provided in that context
Carrying Value of Mine Development – Cash Generated Unit (CGU)
Why significant
How our audit addressed the key audit matter
As at 30 June 2023 the carrying value of Plant and
Equipment is $280,596,218 (2022: $201,266,119), as
disclosed in Note 12. The balance is comprised by:
- Mine Properties - $165,546,893
Buildings - $20,965,658
-
Plant and Equipment - $ 91,478,508
-
Assets under Construction - $2,605,159
-
The consolidated entity’s accounting policy in respect of
mine properties is outlined in Note 12. Estimates and
judgments
capitalised development
to
expenditures is also detailed at Note 12.
relation
in
There is a level of judgement applied in determining the
treatment of the mine asset in accordance with AASB 116
Property, Plant and Equipment and whether the asset is
impaired in accordance with AASB 136 Impairment of
Assets.
Judgement is also required on the following:
• whether depreciation rates applied are appropriate;
• whether disclosure is appropriate; and
• whether the mine asset is impaired.
The evaluation of the recoverable amount of the mine asset
requires significant judgement in determining the key
assumptions supporting the expected future cash flows of
the Abra Base Metal Project.
Our work included, but was not limited to, the following
procedures:
• Obtaining a schedule of costs capitalised and testing
on a sample basis, expenditure on the mine site and
ensuring costs capitalised during the year comply
with the recognition and measurement criteria of
AASB 116 – Property, Plant and Equipment for
qualifying assets;
• Reviewing management’s
impairment model,
including consideration of inputs used in net present
value calculations;
• Performing a physical inspection of the mine site,
including mine site tour and observation of mine site
assets capitalised. This inspection and observation
was conducted by senior members of
the
engagement team,
• Reviewing management’s assessment of impairment
of the CGU;
• Reviewing competent persons report on the mineable
reserves and valuation,
it’s congruence with
management’s assessment and the competence/
independence of the author;
• Ensure
• Ensuring valid mining licenses held and consider
impairment of CGU for which no license is now held;
financial
statements are accurate and that all estimates and
judgements made by management are included
therein, and
that disclosures within
the
• Assessing
the appropriateness of
the
related
disclosures in Note 12.
Galena Mining Limited | Annual Report 2023 67
PKF Perth
Revenue Recognition and Measurement
Why significant
How our audit addressed the key audit matter
The Group generates revenue predominantly from the sale
of lead/silver concentrate.
Revenue recognition is considered to be a key audit matter
given the significance of revenue to the Group’s results as
well as the additional audit effort required to evaluate
whether the ore concentrate sales revenue recognised
before and after balance date is in compliance with the
Group’s revenue recognition policy and the requirements of
the applicable accounting standard.
We focussed on the following judgements the Group applied
in determining sales revenue:
• Assessing the revenue recognised against the
from
requirements of AASB 15 – Revenue
Contracts with Customers; and
•
The application of AASB 9 – Financial Instruments
on
the provisional pricing arrangements –
embedded derivatives.
Our procedures included:
• Assessing
the Group’s accounting policies
for
recognition of revenue against the requirements of
the accounting standards and consistency of
disclosure in the financial report;
• Understanding and documenting
the Group’s
processes for recognition of revenue, including
review of an independent external expert advise in
relation to the accounting treatment of the provisional
pricing arrangements in accordance with Australian
Accounting Standards AASB 15 Revenue from
Contracts with Customers and AASB 9 Financial
Instruments;
• Agreeing all lead / silver sales revenue transactions
recorded by the Group during the year to the various
supporting documents in relation to the assay and
from
weight
customers;
results, and
the cash
receipts
• Assessing the gain or loss on sales revenue as a
result of the adjustment on provisional quotational
period;
• Assessing a sample of ore sales
revenue
transactions recorded by the Group. For each
sample selected we:
o Checked the amount of revenue recorded by
the Group to the amount of the third party
generated sales invoice; and
o Checked
the
the date
revenue was
recognised to the customer, assessing the
date at which control of the ore transferred to
the customer.
• Assessing
the appropriateness of
the related
disclosures in Note 7.
Galena Mining Limited | Annual Report 2023 68
PKF Perth
Stockpiles – Valuation and Classification
Why significant
How our audit addressed the key audit matter
Significant judgement is required to be exercised by the
Group in assessing the value and classification of ore
stockpiles which will be used to produce lead / silver
concentrate in the future.
The valuation and classification of ore stockpiles is a key
audit matter because:
• Ore stockpiles have been recorded through the mining
activities; and
• Significant judgement is required by us in evaluating and
challenging the key assumptions within the Group’s
assessment of net realisable value and estimated timing
of processing into ore concentrate.
The Group’s assessment is based on a model which
estimates future revenue expected to be derived from
concentrate contained in the ore stockpiles, less future
processing costs, to convert stockpiles into concentrate. We
placed particular focus on those assumptions listed below
which
the valuation and classification of ore
stockpiles:
impact
• Future processing costs of ore stockpiles including
potential cost increases;
• The estimated quantity of ore concentrate from the ore
stockpiles;
• Future commodity prices.
Assumptions are forward looking or not based on observable
data and are therefore inherently judgmental to audit.
Our procedures included:
• Testing the Group’s inventory reconciliations which
utilise underlying data such as production and
processing costs, survey reports;
• Assessing the methodology applied by the Group in
determining the value of ore stockpiles against the
requirements of the accounting standards;
• Assessing the key assumptions in the Group’s model
used to determine the value of ore stockpiles by:
• Comparing future processing costs to previous
actual costs, and for consistency with the
Group’s latest life of mine plan;
• Comparing
the estimated quantity of ore
concentrate to the Group’s internal survey
results. We assessed the scope, competence
and objectivity of the Group’s internal expert
involved in preparing the survey results;
• Comparing ore prices to published external
analysts’ data for prices expected to prevail in
the future.
• Assessing
the appropriateness of
the related
disclosures in Note 22.
Galena Mining Limited | Annual Report 2023 69
PKF Perth
Provision for Rehabilitation
Why significant
How our audit addressed the key audit matter
As at 30 June 2023 the carrying value of Rehabilitation
Provision is $10,610,771 (2022: $3,863,356), as disclosed
in Note 24. The increase is due to the disturbance area
occurred in the mine site due to the development of the mine
site as well as the increase in the inflation rate.
The consolidated entity’s accounting policy in respect of
Rehabilitation Provision is outlined in Note 24. Estimates
and judgments in relation to this provision is also detailed at
Note 24.
Rehabilitation Provision is a key audit matter due to:
•
the level of complexity, judgement and assumptions
applied in determining the best estimate in accordance
with AASB 137 - Provisions, Contingent Liabilities and
Contingent Assets.
In particular, complexity,
around:
judgement and assumptions
•
The closure costs estimate have been calculated based
on reasonable rates;
• Whether the discount rate used is appropriate;
• Whether the inflation rate used is appropriate;
• Whether facts and circumstances changed from the
prior year, such as Life of Mine.
Our work included, but was not limited to, the following
procedures:
• Obtaining and reviewing the report prepared by
management in relation to the estimation of closure
costs;
• Obtaining support documentation / information to
corroborate the rates used to calculate the closure
costs estimate;
• Reviewing
the
its
disturbance
reasonableness considering the construction works
performed up until the reporting date;
area
and
• Obtaining and reviewing the qualifications and work
experience of the internal and external expert that
has prepared and reviewed the estimation of the
closure costs;
• Obtaining and reviewing the net present value of the
provision to restore the mine site;
• Reperforming
calculations using
released by reliable sources at 30 June 2023;
the
rehabilitation
provision
inflation and discount rates
• Assessing
the appropriateness of
the
related
disclosures in Note 24.
Galena Mining Limited | Annual Report 2023 70
PKF Perth
Other Information
The Directors are responsible for the other information. The other information comprises the information included
in the consolidated entity’s annual report for the year ended 30 June 2023, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon, with the exception of the Remuneration Report.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Directors’ for the Financial Report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the Directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the consolidated entity’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Directors either intend to liquidate the consolidated entity or to cease
operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
consolidated entity’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the Directors
Galena Mining Limited | Annual Report 2023 71
PKF Perth
• Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the consolidated entity’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures
in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the consolidated entity to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the consolidated entity to express an opinion on the group financial report. We are responsible
for the direction, supervision and performance of the group audit. We remain solely responsible for our audit
opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the Directors, we determine those matters that were of most significance in
the audit of the financial report of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on the Remuneration Report
Opinion
We have audited the Remuneration Report included in the Directors’ Report for the year ended 30 June 2023.
In our opinion, the Remuneration Report of Galena Mining Limited for the year ended 30 June 2023, complies
with section 300A of the Corporations Act 2001.
Galena Mining Limited | Annual Report 2023 72
PKF Perth
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
PKF PERTH
SHANE CROSS
AUDIT PARTNER
23 August 2023
WEST PERTH,
WESTERN AUSTRALIA
Galena Mining Limited | Annual Report 2023 73
SHAREHOLDER INFORMATION
The following additional information is required by the Australian Securities Exchange Ltd in respect of listed public
companies only. The information is current as at 15 August 2023.
1.
a.
(i)
b.
c.
d.
Shareholding
Distribution of Shareholders
Ordinary share capital
- 752,568,687 fully paid shares held by 2,147 shareholders. All issued ordinary share carry one vote per
share and carry the rights to dividends.
Class of Equity Security
Category (size of holding)
Number of Holders
Fully Paid Ordinary Shares
1 - 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
62
385
343
929
428
2,147
4,904
1,307,844
2,812,736
37,615,211
710,827,992
752,568,687
The number of shareholdings held in less than marketable parcels is 318.
The Company had the following substantial shareholders listed in the holding company’s register at the
date of this report.
Fully Paid Ordinary Shares
Holder
Citicorp Nominees Pty Ltd
BNP Paribas Noms Pty Ltd
Number
164,023,183
63,194,824
%
21.80
8.40
Voting Rights
The voting rights attached to each class of equity security are as follows:
Ordinary shares
-
Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a
meeting or by proxy has one vote on a show of hands.
Galena Mining Limited | Annual Report 2023 74
SHAREHOLDER INFORMATION
e.
20 Largest holders of quoted equity securities (fully paid ordinary shares)
Name
Citicorp Nominees Pty Ltd
BNP Paribas Nominees Pty Ltd
Brazil Farming Pty Ltd
JP Morgan Nominees Australia Pty Ltd
Bloomgold Investments Pty Ltd
Taurus Mining Finance Fund No 2 LP
Mr Connor Michael Maloney
Mr Alexander Alan Molyneux
Anchorfield Pty Ltd
1.
2.
3.
4.
5.
6.
7.
8.
9.
10. Navigator Australia Ltd
11. UBS Nominees Pty Ltd
12. GR Engineering Services Ltd
13. Silverlight Holdings Pty Ltd
14
Neweconomy com au Nominees Pty Limited <900 Account>
15. Valiant Equity Management Pty Ltd
16. Zerrin Investments Pty Ltd
17. Netwealth Investments Limited
18.
Mr Simon Van Der Berg & Mrs Fiona Van Der Berg
19. Taurus Mining Finance Fund No 2 LP
20.
Jayleaf Holdings Pty Ltd
Number Held Percentage %
164,023,183
63,194,824
35,299,952
34,761,754
29,027,778
21,457,862
18,027,282
17,050,000
15,000,000
10,701,448
10,045,831
10,000,000
9,000,000
8,471,821
8,450,000
8,424,529
7,130,716
6,908,335
6,666,667
6,240,576
21.80
8.40
4.69
4.62
3.86
2.85
`2.40
2.27
1.99
1.42
1.33
1.33
1.20
1.13
1.12
1.12
0.95
0.92
0.89
0.83
2.
The Name of the Company Secretary is Ms Aida Tabakovic.
3.
The address of the registered office and principal place of business in Australia is Level 8, 216 St Georges
Terrace, Perth WA 6000. Telephone (08) 9481 0389.
489,882,558
65.09
4. Registers of securities are held at the following address:
Automic Pty Ltd
Level 5, 191 St Georges Terrace, Perth WA 6000
5.
Stock Exchange Listing
Quotation has been granted for all the ordinary shares of the company on the Australian Securities Exchange
Limited.
6.
Restricted Securities
The Company has no restricted securities on issue as at the date of this report.
7.
Unquoted Securities
The Company has the following unquoted securities on issue as at the date of this report
-
-
-
-
-
6,500,000 performance rights expiring 9 November 2023;
1,200,000 performance rights expiring 13 August 2024;
5,500,000 performance rights expiring 2 March 2027;
815,000 share appreciation rights exercisable at $0.17 on or before 21 January 2024.
1,400,000 share appreciation rights exercisable at $0.24 on or before 1 September 2025.
Galena Mining Limited | Annual Report 2023 75
ADDITIONAL INFORMATION
Schedule of Tenements
Tenement
Project
Location
Registered holder
% Interest
E52/1413
Jillawarra
E52/3575
Jillawarra
E52/3581
Jillawarra
E52/3630
Jillawarra
E52/3823
Jillawarra
M52/0776
E52/1455
G52/0286
G52/0292
L52/0121
L52/0194
L52/0198
Abra
Abra
Abra
Abra
Abra
Abra
Abra
L52/0205
Teano
L52/0206
Erivilla
L52/0210
Teano
L52/0214
Three Rivers
L52/0240
Teano
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
Galena Mining Limited
Galena Mining Limited
Galena Mining Limited
Galena Mining Limited
Galena Mining Limited
Abra Mining Pty Ltd
Abra Mining Pty Ltd
Abra Mining Pty Ltd
Abra Mining Pty Ltd
Abra Mining Pty Ltd
Abra Mining Pty Ltd
Abra Mining Pty Ltd
Abra Mining Pty Ltd
Abra Mining Pty Ltd
Abra Mining Pty Ltd
Abra Mining Pty Ltd
Abra Mining Pty Ltd
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
The Company’s interest in the Abra Mining Pty Ltd tenements is held by virtue of its 60% equity holding in Abra
Mining Pty Ltd which in turn has a 100% interest in the tenements.
Galena Mining Limited | Annual Report 2023 76
ADDITIONAL INFORMATION
FOR PUBLIC LISTED COMPANIES
Galena Mining Limited | Annual Report 2023 77