Annual Report 2023
Gold Mountain Limited
ABN 79 115 845 942
CORPORATE DIRECTORY
GOLD MOUNTAIN LIMITED
ABN 79 115 845 942
ASX: GMN
Directors
Share Register
David Evans Executive Director
Boardroom Pty Limited
Syed Hizam Alsagoff Non-executive Director
Aharon Zaetz Non-executive Director
Grosvenor Place, Level 12, 225 George Street,
SYDNEY NSW 2000,
GPO Box 3993, SYDNEY NSW 2001
Management
David Evans Executive Officer
Rhys Davies Company Secretary
Registered Office
24/589 Stirling Highway
Cottesloe WA 6011 Australia
Principal Place of Business
24/589 Stirling Highway
Cottesloe WA 6011 Australia
info@goldmountainltd.com.au
www.goldmountainltd.com.au
Telephone: 1300 737 760
Facsimile: 1300 653 459
Solicitor
Bird & Bird Lawyers
Level 22, 25 Martin Place
SYDNEY NSW 2000 Australia
Banker
Australia and New Zealand Banking Group Limited
Auditor
KS Black & Co. Chartered Accountants
Level 1, 251 Elizabeth Street, SYDNEY NSW 2000
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
1
LETTER TO SHAREHOLDERS
Dear Shareholders,
On behalf of the Board of Gold Mountain Limited, I am pleased to present to you our Annual Report for the year to 30 June 2023.
During the 2023 financial year the Company successfully acquired a portfolio of highly prospective Brazil lithium projects and restructured
the project management teams.
The Company also commenced lithium exploration in Brazil and continued ongoing PNG Wabag copper gold exploration programs.
Management recognised potential for a significant discovery at Mt Wipi after receiving very encouraging channel samples containing highly
anomalous copper values. Subsequent remodelling of airborne magnetic data identified two strong areas of magnetic anomalism north of
the drilled area which are postulated to be buried porphyry intrusive. Channel sampling in the areas adjacent to these magnetic anomalies
returned GMN’s best copper intercepts to date from trenches further enhancing the potential of the area. GMN intends to drill these exciting
targets in the coming year in the belief that the company is getting close to a possible discovery.
World renowned Geologist Dr Steve Garwin wrote an independent presentation and review on the Wabag Project which utilised new
technology that highlighted new drill targets and other areas for further sampling and testing.
In the 2024 financial year, the company will continue to ramp up exploration within its Brazil lithium projects and PNG tenements. In PNG
the primary focus being Mt Wipi, with the aim to continue the review and implementation of a new targeted exploration and drilling program.
In addition, we will continue to evaluate a range of diversification opportunities in Australia and abroad as we recognise that opportunities
for value-added acquisitions, farm-ins, asset sales or mergers could de-risk investment and provide additional value creation for our
shareholders.
I extend my thanks to those shareholders that have continued to help fund the Company throughout the year and in recent capital raises.
I would also like to thank my fellow directors Syed Hizam Alsagoff and Aharon Zaetz for their continued support and encouragement in
setting the Company on an exciting new trajectory and clear pathway to success.
To all shareholders of the Company, I thank you for your support and I genuinely believe Gold Mountain Limited is now positioned to
capitalise on significant exploration results.
David Evans
Executive Director
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
2
TABLE OF CONTENTS
CORPORATE DIRECTORY ............................................................................................................................................................................. 1
LETTER TO SHAREHOLDERS ....................................................................................................................................................................... 2
TABLE OF CONTENTS .................................................................................................................................................................................... 3
DIRECTORS’ REPORT .................................................................................................................................................................................... 4
Interest in the Shares and Options of the Company ................................................................................................................................... 6
Operations Report ..................................................................................................................................................................................... 10
Remuneration Report (Audited) ................................................................................................................................................................ 34
SCHEDULE OF TENEMENTS ....................................................................................................................................................................... 40
AUDITOR’S INDEPENDENCE DECLARATION ............................................................................................................................................ 42
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (for the year ended 30 June 2023) .............................. 43
STATEMENT OF FINANCIAL POSITION (as at 30 June 2023) .................................................................................................................... 44
STATEMENT OF CHANGES IN EQUITY (for the year ended 30 June 2023) ............................................................................................... 45
STATEMENT OF CASHFLOWS (for the year ended 30 June 2023) ............................................................................................................. 46
NOTES TO THE FINANCIAL STATEMENTS (for the year ended 30 June 2023) ......................................................................................... 47
DIRECTORS’ DECLARATION ....................................................................................................................................................................... 73
INDEPENDENT AUDITORS REPORT........................................................................................................................................................... 74
ADDITIONAL SHAREHOLDER INFORMATION (as at 14 September 2023) ................................................................................................ 78
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
3
DIRECTORS’ REPORT
Your Directors submit the annual financial report of Gold Mountain Limited for the financial year ended 30 June 2023. In order to comply with
the provisions of the Corporations Act, the Directors’ report as follows:
KEY MANAGEMENT PERSONNEL DISCLOSURES
DIRECTORS
The names of Directors who held office during or since the end of the year and until the date of this report are as follows.
Directors were in office for this entire period unless otherwise stated.
Aharon Zaetz (appointed 16 March 2023)
David Evans (appointed 16 March 2023)
Pay Chuan “Paul” Lim (resigned 21 April 2023)
Steven John Larkins (resigned 14 March 2023)
Syed Hizam Alsagoff
Tim Cameron (resigned 16 March 2023)
Names, qualifications, experience, and special responsibilities
Aharon Zaetz
Non-Executive Director
Qualifications
DipLaw
Experience
Mr Zaetz is a lawyer and experienced director. He brings many years of legal expertise in corporate law, mergers
and acquisitions, and business negotiations to his role including experience negotiating with tenement holders
and landowners. As a seasoned lawyer, Aharon has assisted clients at all stages of their business journeys, from
start-ups to established corporations. He is an experienced ASX investor and GMN shareholder
Interest in Shares and
Options
7,501,001 ordinary shares
2,666,667 quoted options exercisable at $0.01 expiring 7 March 2026 (GMNO)
Directorships held in
other listed entities
No directorships held of ASX listed entities in the past three years
Syed Hizam Alsagoff
Non-Executive Director
Qualifications
B.Sc (Finance/Economics)
Experience
Interest in Shares and
Options
Directorships held in
other listed entities
Mr Alsagoff has extensive network and experience in investment and corporate strategies in Asia and globally, of
over 20 years’ experience in senior operational and corporate leadership roles in diverse sector operations across
several countries including distribution of industrial, electronic components and satellite manufacturing,
engineering, construction, property, and infra-structure development.
He is currently a board member and Audit Committee Chairman of Wasatah Capital, a private company in Saudi
Arabia.
26,815,483 ordinary shares
5,000,000 performance options exercisable at $0.1460 with vesting conditions expiring 31/12/2025 (GMNAT)
5,363,096 quoted options exercisable at $0.01 expiring 7 March 2026 (GMNO)
No directorships held of ASX listed entities in the past three years.
Tim Cameron
Previous Executive Director & CEO (resigned 16 March 2023)
Experience
Mr Cameron is an experienced mining executive with sound leadership, technical, corporate, and financial skills
underpinned by a reputation of innovation, integrity, and determination. Mr Cameron's expertise encompasses
strategic direction, acquisitions and business and project management. With experience in both domestic
(Australia) and international (North America and Asia) operations, he has played an integral part in several
successful exploration and open cut mining operations.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
4
Interest in Shares and
Options
Directorships held in
other listed entities
Not disclosed as resigned in the year
No directorships held of ASX listed entities in the past three years
Pay Chuan “Paul” Lim
Non-Executive Director (resigned 21 April 2023)
Qualifications
B.S.E.E., M.Eng., PEPC, FIEM, PMP, ACPE, APEC Eng., IntPE(MY), AER
Experience
Paul Lim is an entrepreneur and a Chartered Professional Engineer of more than 20 years’ experience in multi-
disciplinary organisations in the engineering industry; in power generation, transmission, distribution and automation
systems, and telecommunications.
He is the current Executive Director and Group Chief Executive Officer of Pestech International Berhad, a global
integrated electrical power technology company listed in the Kuala Lumpur Stock Exchange (PEST:MK).
Interest in Shares and
Options
Directorships held in
other listed entities
Not disclosed as resigned in the year
No directorships held of ASX listed entities in the past three years
Steven Larkins
Non-Executive Director (resigned 14 March 2023)
Qualifications
B.Comm., LLB
Experience
Interest in Shares and
Options
Directorships held in
other listed entities
MANAGEMENT
David Evans
Qualifications
Experience
With extensive experience in the areas of capital markets, risk management, compliance, corporate governance and
mineral exploration, Steven currently holds the role of General Manager – Markets Operations & Compliance at AIMS
Financial Group. He has previously held senior stockbroking and investment banking positions at Commonwealth
Bank of Australia, Bell Potter, Goldman Sachs and JBWere.
He has also served as the Chief Executive Officer of High Peak Royalties (ASX:HPR), an oil and gas royalties
company.
Not disclosed as resigned in the year
No directorships held of ASX listed entities in the past three years.
Executive Director
BSc
David Evans is the founder, executive director and a major shareholder of Mars Mines Limited with business
experience spanning over 28 years in the mining industry, financial services sector and more recently as an
entrepreneur and Company founder/Director.
Interest in Shares and
Options
182,102,741 ordinary shares
8,905,834 quoted options exercisable at $0.02 expiring 25 March 2024 (GMNOB)
83,333,333 quoted options exercisable at $0.01 expiring 7 March 2026 (GMNO)
No directorships held of ASX listed entities in the past three years
Directorships held in other
listed entities
Rhys Davies
Qualifications
Company Secretary and Chief Financial Officer
BSc (Hons), CA, AGIA
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
5
Experience
Mr Davies is a Charted Accountant and Chartered Secretary with over 20 years experience as chief financial officer,
company secretary and/or director of both ASX-listed and private companies across a range of sectors. Rhys is a
member of the Australian Institute of Company Directors and holds an Honours degree in Applied Accounting from
Oxford Brookes University in the UK.
Interest in Shares and
Options
None
Directorships held in other
listed entities
No directorships held of ASX listed entities in the past three years
Interest in the Shares and Options of the Company
DIRECTOR’S SHAREHOLDINGS
As at the date of this report, the interests of the Directors in the securities of Gold Mountain Limited are:
Director
Name
Shares and Options
Shares and Options
Direct
Indirect
Syed Hizam Alsagoff
10,433,483 ordinary shares
16,382,000 ordinary shares
2,086,696 quoted options exercisable at $0.01
expiring 7 March 2026 (GMNO)
3,276,400 quoted options exercisable at $0.01 expiring 7
March 2026 (GMNO)
5,000,000 performance options exercisable at $0.1460
with vesting conditions expiring 31/12/2025 (GMNAT)
David Evans
182,102,741 ordinary shares
8,905,834 quoted options exercisable at $0.02 expiring 25
March 2024 (GMNOB)
83,333,333 unlisted options exercisable at $0.012 expiring
21 November 2023
Aharon Zaetz
7,501,001 ordinary shares
2,666,667 quoted options exercisable at $0.01 expiring 7
March 2026
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
6
Movement in equity instruments (other than options and rights)
As at the date of this report, the interests of the Directors in the securities of Gold Mountain Limited are:
Details of the movement in equity instruments (other than options and rights) held directly, indirectly, or beneficially by Directors and Key
Management Personnel and their related parties are as follows:
Balance at
beginning of the
Year
Granted as
remuneration
during the Year
Issued on
Exercise of
Options during
the Year
Other
changes
during the
Year
Balance at end
of the Year
3,000,000
26,815,483
91,380,000
2,118,462
-
123,313,945
-
-
-
-
-
-
-
(3,000,000)
-
-
26,815,483
-
(91,380,000)
(2,118,462)
-
-
7,501,001
7,501,001
-
182,102,741
182,102,741
-
93,105,280
216,419,225
Balance at
beginning of the
Year
Granted as
remuneration
during the Year
Issued on
Exercise of
Options during
the Year
Other
changes
during the
Year
Balance at end
of the Year
500,000
19,915,333
50,000,000
1,818,462
72,233,795
-
-
-
-
-
-
-
-
-
-
2,500,000
3,000,000
6,900,150
26,815,483
41,380,000
91,380,000
300,000
2,118,462
51,080,150
123,313,945
30 June 2023
Steven Larkins
Syed Hizam Alsagoff
Pay Chuan “Paul” Lim
Tim Cameron
Aharon Zaetz
David Evans
Total
30 June 2022
Steven Larkins
Syed Hizam Alsagoff
Pay Chuan “Paul” Lim
Tim Cameron
Total
Exercise of Options
No ordinary shares were issued by the Company during and/or since the end of the financial year as a result of the exercise of options by Directors
and Key Management Personnel and their related parties. There are no unpaid amounts on the shares issued.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
7
Options and Rights Holdings
Details of movements in options and rights held directly, indirectly, or beneficially by Directors and Key Management Personnel and their related parties
are as follows:
30 June 2023
Balance at
beginning of the
Year
Granted as
remuneration
during the Year
Issued on
Exercise of
Options during
the Year
Other changes
during the Year
Balance at
end of the
Year
Syed Hizam Alsagoff
7,433,382
Pay Chuan “Paul” Lim
21,398,333
-
-
Tim Cameron
Steven Larkins
Aharon Zaetz
David Evans
Total
30 June 2022
Syed Hizam Alsagoff
Pay Chuan “Paul” Lim
Tim Cameron
Steven Larkins
Total
20,133,333
30,000,000
1,566,666
-
-
-
-
-
50,531,714
30,000,000
-
-
-
-
-
-
-
2,929,714
10,363,096
(21,398,333)
-
(50,133,333)
-
(1,566,666)
-
2,666,667
2,666,667
92,239,167
92,239,167
24,737,216
105,268,930
Balance at
beginning of the
Year
Granted as
remuneration
during the Year
Issued on
Exercise of
Options during
the Year
Other changes
during the Year
Balance at
end of the
Year
6,666,677
20,000,000
-
-
909,231
20,000,000
-
-
27,575,908
20,000,000
-
-
-
-
-
766,705
7,433,382
1,398,333
21,398,333
(775,898)
20,133,333
1,566,666
1,566,666
2,955,806
50,531,714
Options on issue at the date of this report are:
Issue Date
Number
Expiry Date
Exercise price*
Number of
holders
ASX Code
30 Dec 2020
20,000,000
31 Dec 2025
25 March 2022
115,864,430
25 Mar 2024
21 Dec 2021
20,000,000
21 Dec 2026
21 November 2022
125,000,000
21 November 2023
7 March 2023 – 26
May 2023
611,661,063
7 March 2026
23 November 2022
10,0000,000
24 November 2024
23 November 2022
10,0000,000
24 November 2025
23 November 2022
10,0000,000
24 November 2026
$0.146
$0.020
$0.120
$0.012
$0.020
$0.030
$0.035
$0.040
3
187
2
1
281
1
1
1
GMNAT°
GMNOB◇o
GMNAU
GMNAV
GMNO
GMNAW
GMNAX
GMNAY
* Consistent with ASX Listing Rule 6.22, a reduction of $0.0015 is applied to the original exercise price of the $0.1475 unquoted options to
$0.1460 following the pro-rata issue under a Rights Offer.
° GMNAT performance options under the Employee Share Option Plan (ESOP) are exercisable at $0.1460 (after adjustment of exercise
price) until expiry date 31/12/2025 and subject to vesting condition that the total options granted shall be vested over 3 periods of 12 months
per period.
◇o GMNOB - Quoted Options expiring 25 March 2024
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
8
Dividends
No dividends have been paid or declared since the start of the financial year and/or the Directors do not recommend the payment of a dividend
in respect of the financial year.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
9
Operations Report
Principal Activities
The principal activity of the Company during the financial period was to acquire, explore and develop areas that are highly prospective for gold
and other precious and base metals and minerals in Brazil and Papua New Guinea.
Operating and Financial Review
(i)
Operations
Gold Mountain is an exploration company operating in Australia, Brazil and Papua New Guinea to acquire, explore and develop areas that are
highly prospective for gold and other precious and base metals and minerals.
The Company creates value for shareholders, through exploration activities which develop and quantify mineral assets. Once an asset has been
developed and quantified within the framework of the JORC guidelines the Company may elect to move to production, to extract and refine ore
which will then be available for sale as a primary product.
The Company is actively exploring and developing the tenements in Brazil and Papua New Guinea.
Please refer to the Review of Operations for more information on the status of the projects.
(ii)
Financial Performance & Financial Position
The financial results of the Company for the five (5) years to 30 June 2023 are:
30 June 2023
30 June 2022
30 June 2021
30 June 2020
30 June 2019
Cash and cash equivalents
1,302,567
660,525
780,283
1,835,586
54,070
Net assets
11,117,318
24,076,361
27,740,321
25,434,816
20,296,725
Revenue & financial income
16,734
152,383
888,163
105,844
48,529
Net loss after tax
(10,209,547)
(18,072,128)
(1,394,982)
(1,569,877)
(1,401,021)
EBITDAX
(1,221,478)
(1,194,228)
(1,394,982)
(1,569,877)
(1,401,021)
Share price at 30 June
Loss per share (cents)
$0.007
(0.62)
$0.005
(0.91)
$0.030
(0.18)
$0.066
(0.25)
$0.066
(0.27)
a)
Financial Performance
The net loss after tax of the Company for the financial year after tax amounted to $10,209,547 (2022: Loss $18,072,128).
The Company is creating value for shareholders through its exploration expenditure and currently has no revenue generating operations.
Revenue and financial income are generated from interest income from funds held on deposit and miscellaneous income. Due to the increase
in interest rates the company has increased the level of interest earned on funds.
During the year, the operations relating to the exploration projects continued and expanded as the Company undertook its exploration program,
accordingly, deferred exploration expenditure increased from $9,132,679 at 30 June 2022 FY to $9,767,008 at 30 June 2023 after taking into
account impairment of assets.
b)
Financial Position
The 30 June 2023 financial report has been prepared on the going concern basis that contemplates the continuity of normal business activities
and the realisation of assets and extinguishment of liabilities in the ordinary course of business. For the year ended 30 June 2023, the Company
recorded a loss after tax of $10,244,004 (2022: Loss $18,072,128) and had a net working capital surplus of $1,342,964 (30 June 2022:
$448,571).
As the Company is an exploration and development entity, ongoing exploration and development activities are reliant on future capital raisings.
Based on these facts, the Directors consider the going concern basis of preparation to be appropriate for this financial report.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
10
(iii)
Business Strategies and Prospects for future financial years
The Company actively evaluates the prospects of each project as results from each program become available, these results are available via the
ASX platform for shareholders information. The Company then assesses the continued exploration expenditure and further asset development.
The Company will continue the evaluation of its mineral projects in the future and undertake generative work to identify and acquire new resource
projects.
There are specific risks associated with the activities of the Company and general risks which are largely beyond the control of the Company and
the Directors. The risks identified below, or other risk factors, may have a material impact on the future financial performance of the Company and
the market price of the Company’s shares.
a)
Operating Risks
The operations of the Company may be affected by various factors, including failure to locate or identify mineral deposits, failure to achieve
predicted grades in exploration and mining, operational and technical difficulties encountered in mining, sovereign risk difficulties in commissioning
and operating plant and equipment, mechanical failure or plant breakdown, unanticipated metallurgical problems which may affect extraction
costs, adverse weather conditions, industrial and environmental accidents, industrial disputes and unexpected shortages or increases in the costs
of consumables, spare parts, plant and equipment.
b)
Environmental Risks
The operations and proposed activities of the Company are subject to the laws and regulations of Australia, Brazil and Papua New Guinea
concerning the environment. As with most exploration projects and mining operations, the Company’s activities are expected to have an impact
on the environment, particularly if advanced exploration or mine development proceeds. It is the Company’s intention to conduct its activities to
the highest standard of environmental obligation, including compliance with all environmental laws.
c)
Economic
General economic conditions, movements in interest and inflation rates and currency exchange rates may have an adverse effect on the
Company’s exploration, development, and production activities, as well as on its ability to fund those activities.
d)
Market conditions
Share market conditions may affect the value of the Company’s quoted securities regardless of the Company’s operating performance. Share
market conditions are affected by many factors such as:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
general economic outlook;
introduction of tax reform or other new legislation;
interest rates and inflation rates;
changes in investor sentiment toward particular market sectors;
the demand for, and supply of, capital; and
terrorism or other hostilities.
The market price of securities can fall as well as rise and may be subject to varied and unpredictable influences on the market for equities in
general and resource exploration stocks in particular. Neither the Company nor the Directors warrant the future performance of the Company or
any return on an investment in the Company.
e)
Additional requirements for capital
The Company’s capital requirements depend on numerous factors. Depending on the Company’s ability to generate income, the Company will
require further financing. Any additional equity financing will dilute shareholdings, and debt financing, if available, may involve restrictions on
financing and operating activities. If the Company is unable to obtain additional financing as needed, it may be required to reduce the scope of its
operations and scale back its exploration programs. There is however no guarantee that the Company will be able to secure any additional funding
or be able to secure funding on terms favourable to the Company.
f)
Speculative investment
The above list of risk factors ought not to be taken as exhaustive of the risks faced by the Company or by investors in the Company. The above
factors, and others not specifically referred to above, may in the future materially affect the financial performance of the Company and the value
of the Company’s shares. Potential investors should consider that the investment in the Company is speculative and should consult their
professional advisers before deciding whether to invest.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
11
Corporate
Capital Raisings & Equity Securities
On 3 October 2022, the Company announced the issue and allotment of 260,000,000 ordinary shares at an issue price of $0.006 per share
following the capital raising announced 21 September 2022.
On 23 November 2022, the Company advised it had issued 49,444,444 GMNOB class quoted options following Shareholder approval at
the Company’s AGM.
On 23 November 2022, the Company advised it had issued 95,000,000 ordinary shares to Mars Mines Limited (or their nominees) in relation
to the acquisition of an initial 20% interest in the Brazilian lithium projects.
On 22 December 2022, the Company announced that it had received commitments from new and existing sophisticated and professional
investors to raise $2 million (before costs) through a placement of 266,666,666 new shares at an issue price of A$0.0075 per share
(Placement). The Placement Shares were issued on 3 January 2023. Subscribers in the Placement will receive a 1:2 free-attaching option
exercisable at A$0.01 each on or before 3 years from the date of issue.
On 31 December 2022, 11,000,000 unlisted options exercisable at $0.146 each expired unexercised.
On 19 January 2023, 16,666 GMNOA Options were exercised at $0.040.
On 13 February 2023, the Company announced the issue of 125,000,000 ordinary shares at an issue price of $0.008 in consideration of
75% acquisition of the Salinas Lithium Project.
On 16 February 2023, 100,111 GMNOA Options were exercised at $0.040.
Board and Management
On 14 March 2023, Steven Larkins resigned.
On 16 March 2023 the Company announced the appointment of Aharon Zaetz and David Evans as non-executive directors and Tim
Cameron resigned as director.
On 21 April 2023, Pay Chuan “Paul” Lim resigned.
On 16 June, the Company announced the appointment of Rhys Davies as Company Secretary and Chief Financial Officer, and that Dan
Smith would resigned as of 30 June.
Annual General Meeting
On 18 November 2022, the Company announced that all resolutions put to shareholders at the 2022 Annual General Meeting were passed by
way of a poll.
Review of Operations
GMN-Mars JV Projects (Gold Mountain 75%)
On 19 September 2022, the Company entered into a proposed acquisition in earn up to a 75% interest in four (4) lithium projects in north-
eastern Brazil, covering ~285km2 from Mars Mines Limited. The Proposed Transaction was approved by shareholders at the Company’s
Annual General Meeting (AGM) in November 2022.
On 24 January 2023 the Company announced the signing of an agreement with Mars Mines Limited (“Mars”) that effectively restructures
and simplifies the joint venture (JV) previously in place covering the Juremal, Custodia, Jacurici, Cerro Cora and Porta D’Agua Projects.
The original JV terms provided for an initial 20% interest in these assets to be held by Gold Mountain, with the ability to move to a 75%
interest in the projects through $2.75m in JV expenditure within a two-year period. The revised terms, which came effective on 31 January
2023, will see Gold Mountain immediately move to a 75% JV interest. As part of the arrangement, the Company will make a $0.3m cash
payment to Mars.
Mars will remain free carried for its 25% until a decision to mine is made.
On 19 June 2023 the Company reached an agreement with Mars, subject to shareholder approval, to expand the current Mars JV in Brazil
to include a 75% interest in all of Mars’ current significant holdings in Brazil consisting of highly prospective battery metals tenements in
Central and NE Brazil for a total consideration of 600 million GMN Ordinary shares. The JV terms are the same as the previous Mars Mines
Limited transaction on 24 January 2023. A general meeting is to be held to obtain shareholder approval, as at the date of this report a
meeting date has not been set.
Gold Mountain Limited (“the Company”) has two main geographical areas for exploration activities. Brazil, where the Company is predominately
exploring for Lithium, and Papua New Guinea, where the group is predominately exploring for Porphyry copper-gold and epithermal gold.
Brazil
Project Acquisitions Brazil
The Company acquired a 75% interest in 4 project areas in NE Brazil with an area of 285 km2 on 22 November 2022 following a Due Diligence
visit in October to three of the four project areas. The four Project areas acquired were Cerro Cora -Porta D’Água, Custodia, Juremal and
Jacurici.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
12
On December 20 2022 GMN acquired the Salinas II project, consisting of 7 tenements with a combined area of 92.64 km2 in the Lithium Valley
of Minas Gerais. These tenements are favourably located in relation to the source G4 granites and both inferred and known NE trending
structures that are thought to control pegmatite intrusion zones.
In June 2023 GMN announced that it proposed to acquire a large package of lithium, copper and copper-nickel tenements in Brazil. This package
consists of 204 tenements with a total area of 3921 km2. The tenements are in both the Borborema Province and in the Aracuai Orogen,
including the Lithium Valley region.
Location of the initial four project areas in NE Brazil and the subsequently acquired Salinas II project.
Personnel
The Company secured the services of an experienced Exploration Manager for the lithium projects commencing in March 2023 and in mid-May
an additional two geologists and an experienced field technician were added to the team. Additional recruiting is ongoing. These personnel form
the core of a skilled technical team on the ground in Brazil that are progressing exploration now at a rate that was not previously possible.
Further staff are to be recruited as the Company finds suitable personnel.
Cerro Cora - Porta D’Água Project
An initial visit by the Company to this project area was made in October 2022 and the analytical results of rock chip sampling of previously
mined pegmatites showed that the pegmatites present were LCT pegmatites. An additional visit was made in June 2023 and planning for
stream sediment sampling completed.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
13
Figure 1. Artisanal mine on a pegmatite mined for tantalum in the Cerro Corá-Porta D’água tenement region.
Stream sediment sampling on the Cerro Cora - Porta D’Água and Custodia project will be completed in the September Quarter 2023.
Custodia Project
LCT pegmatites were also confirmed from rock chip sample geochemical data from the October 2022 visit. Soil sampling at Custodia on small
reconnaissance grids was undertaken to determine the extent of the lithium present at the initial discovery site. Anomalies were found on both
grids samples and are shown on figure 2.
Stream sediment sampling of about 50 km2 of the tenements and additional geological mapping is planned to be completed in the September
Quarter 2023.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
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Figure 2 Soil sampling grids at Custodia with orange zones having values greater than 56 ppm Li at Central Grid and greater than 47 ppm Li at
Southeast Grid.
Juremal
Highly weathered spodumene was found as float within and adjacent to tenement 870208/2022 at Juremal in October 2022 and LCT pegmatites
were also confirmed from rock chip geochemical data. An additional visit made in June 2023 did not result in the location of more pegmatite
float or outcrop, partly due to the heavy vegetation cover from the wet season.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
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Highly weathered spodumene was found as float within and adjacent to tenement 870208/2022 at Juremal in October 2022.
Figure 3. Highly weathered spodumene found adjacent to the GMN tenement in a zone striking into the tenement area.
Planning of stream sediment sampling was completed and sampling was planned to commence in July 2023.
Salitre South
Pegmatites of two ages are present on the Salitre South tenement, one deformed and a second suite of undeformed pegmatites. Samples of
both types of pegmatite have been collected and sent for analysis. Scale of the undeformed pegmatites has not been determined at present but
will be assessed when soil sampling over the deformed and one undeformed pegmatite is completed and analytical results received.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
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Figure 4 Target region with spodumene* (green circles) and pegmatite bodies (red circles). Soil sampling is ongoing, with 68 samples collected
out of a total of 150 programmed.
Salitre
The Company is acquiring the four Salitre tenements which are contiguous with Salitre south and on which Mars Mines had collected over 1200
soil samples which are at the laboratory. These samples cover areas adjacent to the Salitre South tenement as well as the western margin of
the block of four tenements.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
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Soil Sampling carried out on the Salitre Project tenements.
Figure 5.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
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Figure 6. Magnetic gradient image at Salitre. Black star in 872267/2021 shows the location of the granite recently found. Black dashed line
represents an interpreted eastern margin to the Early Lower Proterozoic granite.
Ico
The original reported spodumene occurrence was visited in conjunction with the landowner. Dense vegetation meant that the strike of the
pegmatite could not be determined, nor its width. A shaft had been sunk to 9 metres depth and waste rock piles were sampled for analysis.
The pegmatite is a post tectonic pegmatite with a substantial quartz core visible in one side of the shaft. The pegmatite looks to be of interest
and is associated with a major structural zone.
Production has been small amounts of beryl for market assessment purposes. Samples of the pegmatite have been submitted for analysis for
LCT characteristics.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
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Figure 7. Small shaft at Ico. Pegmatite had abundant perthitic feldspar, a quartz core and areas with small and large muscovite books. Beryl
was present and was the reason the shaft was excavated initially. Farmer/garimpeiro sitting on the edge of the waste dump.
Solonopole
A visit was made to tenements held by Oceana immediately north of the GMN Solonopole tenements. Features of the mineralisation on the
Oceana ground were explained to Company personnel and the approach that Oceana had used was shown to the Company in detail. A brief
field review of the Company Solonopole group of tenements showed that similar geology mapped in both areas and thick scrub cover was a
significant issue affecting exploration on the Company’s ground. Dense vegetation in many areas at Mars Solonopole made access difficult
and outcrop hard to find.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
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Figure 8. Solonopole tenements in green. Red outlined belt is Li, Ta, Be, albite and muscovite occurrences. Radiometric responses indicative
of lithium mineralisation are found in several of the GMN tenements. Li and Art Li refer to known occurrences of lithium, the green pins are
places Company personnel visited with Oceana personnel.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
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Figure 9. Dense vegetation in many areas at Mars Solonopole made access difficult and outcrop hard to find.
Stream sediment sampling has been planned in detail and will be completed in September.
Logradouro
The two tenements at Logradouro lie immediately south of a mapped large accumulation of tantalum bearing pegmatites and one pegmatite
analysed for lithium that did contain lithium. Over 250 pegmatites were interpreted on the Logradouro tenement, about half prior to a field visit
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
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and the remainder immediately following the field visit. All pegmatites interpreted from satellite imagery were confirmed in the field, as well as
many more that were not initially interpreted.
Figure 10. Logradouro tenements with approximately 250 interpreted pegmatites (green).
In this region many of the pegmatites, despite being strongly weathered, stand above the general land surface as prominent outcrops.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
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Figure 11. A minimum of three lines of pegmatite intrusives viewed from a fourth pegmatite at Logradouro. Pegmatites are usually continuous
between the tall outcrops running left to right across the photo.
Stream Sediment sampling of all drainages has been planned and will commence in the September Quarter.
Salinas II
An initial 18 samples were taken on Salinas II, mainly on the Agua Boa tenement which lies along regional structural strike from the “Lithium
Corridor” announced by Latin Resources (ASX announcement 28 June 2023).
The extent of drainage, geological and magnetic linears in the directions of the “Lithium Corridor” suggests parallel lithium pegmatite zones are
likely to be present and the tenement pegging by Latin Resources in the region suggests they are of the same opinion.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
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Figure 12. Location of the Salinas project tenements in blue compared to the regional structural trends and the “Lithium Corridor” being explored
by Latin Resources.
Casa Nova
The Casa Nova Project was originally taken up for lithium, but further work has shown major potential for nickel-copper in the region in mafic-
ultramafic intrusives and additional areas have been acquired in both the Casa Nova Project area and the Casa Nova West project area. Both
areas are located in Bahia state NE Brazil, in very arid country with predominantly low value agricultural land being present.
Initial rock samples taken in part of the Casa Nova tenements had little lithium present and a check on the area was made in June 2023 to
assess the anticipated sampling difficulties due to strong weathering and windblown sand cover. The Casa Nova region was found to have only
thin to no sand cover and areas with strongly weathered areas as well as occasional fresh outcrops of the post tectonic granite present on the
western side of the soil grid.
Sampling on 400 metre spaced lines at 25 metre intervals had been completed early in 2023 however significant laboratory delays meant that
the Company had not received the results to date.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
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Figure 13. Geology of the Casa Nova tenements and location of the soil grid. Green units are the exposed areas of mafic and ultramafic intrusives
that have both Ni-Cu potential and host pegmatites.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
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Figure 14. Trial soil grid and rock sample analyses with Li2O ppm values in yellow. Green diamonds are check sample sites and diamonds with
numbers in green are the original rock sample locations.
Figure 15. Part of the grid area at Casa Nova with an outcrop of a weathered felsic paragneiss.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
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Papua New Guinea
The Company holds two tenement areas in Papua New Guinea both with Porphyry copper-gold and epithermal gold potential.
The Wabag project is in the underexplored central highlands part of the Papuan Mobile Belt that contains several world class porphyry and
epithermal type gold and copper gold deposits. The Green River Project is in the lowlands of the Papuan Mobile Belt adjacent to a major road
and close to the airstrip at Green River which is to be upgraded with development of the Frieda River porphyry and epithermal copper gold
project.
Figure 16. Location of the Wabag and Green River tenements in relation to major geological features and mineralised regions in Papua New
Guinea. Modified from Garwin et al (2005).
Wabag Project
Exploration by the Company’s Wabag project located porphyry and skarn style mineralisation (ASX announcement 19 May 2021) that has been
systematically followed up by GMN with porphyry style mineralisation present at Mt Wipi with encouraging copper widths and grades.
GMN ceased field operations at Wabag in July 2022 during the election period and for the wet season and recommenced in February 2023
(ASX announcement 22 February 2023) with additional trenching planned at Mt Wipi on the Pully and Kandum prospects.
Initial trenching on these prospects had a best intersection in trench MWTR008 of 0.32% copper and a high-grade zone of 17 metres of 0.53%
copper (ASX announcement June 14 2022).
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
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Figure 17. Gold Mountain’s Wabag Project (tenements and emerging targets within a +17km long structural corridor (white dashed line).
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
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A
compilation
of
all
soil,
rock
chip
and
trenching
work
on Mt Wipi
is
shown
in
figure
18.
Figure 18. Compiled soil, rock chip and trench data at the Mt Wipi Project.
Thirteen new or extensions to existing trenches were excavated (ASX release 28 April 2023), with results soon.
Figure 19. Map of Pully prospect at Mt Wipi showing copper in soil and trenches anomalies on total magnetic intensity image.
Trenches are used to be able to obtain continuous samples of bedrock to give good geochemical data which can be used to focus on a porphyry
or skarn type target. Assessment of the rock chip and trench data now show that an area of over 1 square km of elevated pyrite is present, a
common halo mineral around a porphyry copper system.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
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Figure 20. A trench exposure at Mt Wipi showing variable alteration, weathering and iron staining.
A major review of the Wabag Project was undertaken by well-known porphyry expert, Steve Garwin, which commenced in May 2023. Steve
Garwin is one of the leading authorities on porphyry, epithermal and Carlin-style mineralization in the circum-Pacific region. That review was to
look at all existing digitised data on the Wabag project and assess the current targets and make recommendations for future work. The existing
data was upgraded into a relational database to allow the review to take place.
Expert Review of Wabag Project
An expert review of the Wabag Project was undertaken by Dr Steve Garwin, with emphasis on the Mt Wipi area. Soil, trench channel sample,
rock and stream sediment sample data, including historical data, was interpreted and vectors toward porphyry centres interpreted.
Main findings of the expert review were that:
Regional geology and structure is suggestive of a favourable porphyry environment being present.
Trench geochemical sampling and soil geochemistry at Mt Wipi suggest porphyry style mineral zonation is present indicating a focus
of attention should be in the area of the trenches
Sampling gaps exist that need to be infilled prior to drilling being finalised.
Additional favourable geochemical signatures exist that have not been adequately followed up between the Monoyal and Crown
ridge target areas, These areas have favourable low zinc over copper ratios in anomalous total copper anomalies. Lack of arsenic
and lithium indicates a hotter part of the system, an area that could host a porphyry copper deposit.
Additional untested targets also exist within the tenements held by GMN at Wabag which warrant follow up.
The review resulted in an intensely practical guide to where additional work is warranted, found data gaps and pointed a forwards path for
exploration, including identifying My Wiopi as the principal target present based on current results.
Green River Project
The Green River Project was applied for to cover a grossly underexplored part of the Papuan Mobile belt that had some previous exploration
carried out on it by the Geological Survey and by mineral exploration companies.
There is widespread alluvial gold with artisanal mining and porphyry style mineralisation was recorded by the Geological Survey at two locations
in the 1980’s.
A geochemical dataset covers part of the tenement area and was previously interpreted to define a series of copper and lead-zinc anomalies.
Rock float samples with copper lead and zinc in the percentage range had been recorded in a series of locations in the Company EL application
area. The samples were collected during a regional geochemical survey carried out in 1997.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
31
Long strike length magnetically destructive zones were interpreted to be present associated with arc parallel faults and an arc normal transfer
structure has been interpreted to be present. The Company is obtaining the magnetic survey data for reprocessing and further interpretation,
which is expected to be completed in the September Quarter 2023.
Figure 21 shows the initially proposed EL boundary in relation to compiled geochemical and alluvial gold anomalies.
Figure 21. Compiled mapping, geochemical and geophysical data over the Green River EL application area.
References
The information in this report that relates to Exploration Results that have been previously reported in ASX announcements are listed below.
The Group is not aware of any new information or data that materially affects the information previously announced.
Further details can be found in the following ASX announcements:
12 August 2022: PNG Project Update & New Opportunities
26 October 2022: Potential Lithium Bearing Pegmatites Uncovered in Brazil
6 January 2023: Further encouraging lithium rock chip results from Brazil JV
10 January 2023: Sampling at Custodia confirms LCT Pegmatite Prospectivity
22 February 2023: Exploration to Recommence at Mt Wipi CuAu Project PNG
29 May 2023: PNG Update - Wabag and Green River Copper Project
14 June 2023: Market Update
12 July 2023: PNG Exploration Update
14 July 2023: Brazil lithium exploration update
1 August 2023: Market Update - PNG Exploration Report
22 August 2023: Brazil Market Update
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
32
New Project Opportunities
Consistent with Gold Mountain’s ongoing strategy of continually reviewing new minerals project opportunities across lithium, copper, gold and
other battery minerals, the Company has been undertaking advanced due diligence on several prospective projects.
The Company believes that diversifying its commodity focus and/or jurisdictions will provide greater return to shareholders, including providing the
Company with exposure to the growth in demand for minerals in the battery minerals and EV sectors.
Risk management
Details of the Company’s Risk Management policies are contained within the Corporate Governance Statement.
Corporate Governance
A statement disclosing the extent to which the Company has followed the best practice recommendations set by the ASX Corporate Governance
Council during the period is displayed on the Company’s website.
Subsequent events after balance date
On 21 July 2023, the Company advised that there had been a successful placement of ordinary shares raising $2,250,000 before costs at an
issue price of $0.075 to $0.078.
There has not been any other matter or circumstance that has arisen after balance date that has significantly affected, or may significantly affect,
the operations of the Company, the results of those operations, or the state of affairs of the Company in future financial periods.
Environmental legislation
The Company is subject to significant environmental and monitoring requirements in respect of its natural resource exploration activities. The
Directors are not aware of any significant breaches of these requirements during the period.
Identification of Insurance of Directors and Officers
The Company has agreed to indemnify all the Directors of the Company for any liabilities to another person (other than the Company or related
entity) that may arise from their position as Directors of the Company, except where the liability arises out of conduct involving a lack of good
faith.
During the financial year, GMN paid a premium in respect of a contract insuring the Directors and officers of the Company against any liability
incurred in the course of their duties 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.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
33
Remuneration Report (Audited)
The Board, in consultation with the Remuneration Committee, is responsible for determining and reviewing compensation arrangements for the
directors and executive management. The Board assesses the appropriateness of the nature and amount of remuneration of key personnel on
an annual basis. In determining the amount and nature of officers’ packages, the Board takes into consideration the Company’s financial and
operational performance along with industry and market conditions.
The Committee has the authority to retain any outside advisor at the expense of the Company, without the Board’s approval, at any time and
has the authority to determine any such advisor’s fees and other retention terms.
In setting corporate goals and objectives relevant to Senior Executives’ compensation, the Committee considers both short-term and long-term
compensation goals and the setting of criteria around this. In relation to setting Directors’ remuneration the Committee looks at and considers
comparative data from similar companies.
This report outlines the remuneration arrangements in place for Directors and Key Management Personnel of Gold Mountain Limited (the
“Company”) for the financial year ended 30 June 2023.
The following persons acted as Directors during or since the end of the financial year:
Aharon Zaetz (appointed 16 March 2023)
David Evans (appointed 16 March 2023)
Pay Chuan “Paul” Lim (resigned 21 April 2023)
Steven John Larkins (resigned 14 March 2023)
Syed Hizam Alsagoff
Tim Cameron (resigned 16 March 2023)
The term ‘Key Management Personnel’ is used in this remuneration report also refers to the following persons. Except as noted, the named
persons held their current position for the whole of the financial year and since the end of the financial year:
Daniel Smith (resigned 30 June 2023)
Rhys Davies (appointed 15 June 2023)
Remuneration Philosophy
The performance of the Company depends upon the quality of the Directors and executives. The philosophy of the Company in determining
remuneration levels is to:
set competitive remuneration packages to attract and retain high calibre employees;
link executive rewards to shareholder value creation; and
establish appropriate, demanding performance hurdles for variable executive remuneration
Remuneration Committee
The Remuneration Committee of the Board of Directors of the Company is responsible for determining and reviewing compensation
arrangements for the Directors and the Senior Management team.
The Remuneration Committee assesses the appropriateness of the nature and amount of remuneration of Directors and senior executives on
a periodic basis by reference to relevant employment market conditions with an overall objective of ensuring maximum stakeholder benefit from
the retention of a high quality Board and executive team.
Remuneration Structure
In accordance with best practice Corporate Governance, the structure of Non-Executive Director and executive remuneration is separate and
distinct.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
34
Non-Executive Director Remuneration
The Board seeks to set aggregate remuneration at a level that provides the Company with the ability to attract and retain Directors of the highest
calibre, whilst incurring a cost that is acceptable to shareholders.
Each Director is entitled to such remuneration from the Company as the Directors decide, but the total amount provided to all non-executive
directors must not exceed in aggregate the amount fixed by the Company in a general meeting. The aggregate remuneration for all non-executive
directors has been set at an amount of $300,000 per annum.
The ASX Listing Rules specify that the aggregate remuneration of Non-Executive Directors shall be determined from time to time by a general
meeting.
The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned amongst Directors is
reviewed annually. The Board considers advice from external shareholders as well as the fees paid to Non-Executive Directors of comparable
companies when undertaking the annual review process.
Each Director is entitled to receive a fee for being a Director of the Company.
The remuneration of Non-Executive Directors for the year ended 30 June 2023 is detailed in the Remuneration of Directors and named executives
section of this report on the following pages of this report.
Senior Manager and Executive Director Remuneration
Remuneration consists of fixed remuneration and Company options (as determined from time to time). In addition to the Company employees
and Directors, the Company has contracted key consultants on a contractual basis. These contracts stipulate the remuneration to be paid to the
consultants.
Fixed Remuneration
Fixed remuneration is reviewed annually by the Independent Directors’ Committee (which assumes the role of the Remuneration Committee).
The process consists of a review of relevant comparative remuneration in the market and internally and, where appropriate, external advice on
policies and practices. The Committee has access to external, independent advice where necessary.
Fixed remuneration is paid in the form of cash payments.
The fixed remuneration component of the five most highly remunerated Company executives is detailed in Table 1.1 & 1.2.
Employment Contracts
During the year and to the date of this report there was one new employment contract in relation to making Mr David Evans an executive Director.
The terms changed post year end and as of the date of this report are $240,000 per annum on a 2 year contract to 30 June 2025. Three months
termination notice is required from either party.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
35
Remuneration of Directors and Named Executives
Table 1.1: Directors’ and named executives remuneration for the year ended 30 June 2023
Short-term employee benefits
Post-employment benefits
Equity
Other
Total
%
Salary, Fees
and
Consulting
Tim Cameron 1
284,666
Syed Hizam Alsagoff
Pay Chuan “Paul” Lim
Steven Larkins
Aharon Zaetz4
David Evans
Daniel Smith3
Rhys Davies 5
Total
24,250
15,250
9,000
45,750
48,500
121,200
-
548,616
Bonuses
Non- Monetary
Benefits
Super-
annuation
Prescribed
Benefits
Options
Shares
Deferred
Benefits
Performance
Related
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11,908
-
-
-
-
-
-
-
11,908
-
-
-
-
-
-
-
-
-
60,687
-
-
-
-
-
-
-
60,687
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
357,261
24,250
15,250
9,000
45,750
48,500
121,200
-
621,211
0%
0%
0%
0%
0%
0%
0%
0%
-
Table 1.2: Directors’ and named executives remuneration for the year ended 30 June 2022
Short-term employee benefits
Post-employment benefits
Equity
Other
Total
%
Salary, Fees
and
Consultancy
252,638
12,000
12,000
12,000
88,000
Tim Cameron 1
Syed Hizam Alsagoff
Pay Chuan “Paul” Lim
Steven Larkins
Eric Kam 2
Bonuses
Non- Monetary
Benefits
Super-
annuation
Prescribed
Benefits
Options
Shares
Deferred
Benefits
Performance
Related
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
252,638
12,000
12,000
12,000
88,000
0%
0%
0%
0%
0%
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
36
Daniel Smith 3
Total
51,942
428,580
-
-
-
-
-
-
-
-
-
-
-
-
-
-
51,942
428,580
0%
-
Notes:
1.
Paid to Esplanade Consultancy ATF The Ryki Trust for executive services of which Tim Cameron is related to the discretionary services management trust,
and R&E Solutions Pty Ltd, an entity associated with Tim Cameron.
Paid to Useful Ways Pty Ltd for corporate advisory services of which Eric Kam is a director and shareholder and Ekam Commercial of which Mr Kam is principal.
Paid to Minerva Corporate Pty Ltd for corporate advisory services of which Daniel Smith is a director and shareholder.
Paid to Consult4nts Pty Ltd for corporate advisory services and directors fees for which Aharon Zaetz is a director.
2.
3.
4.
5. No fees have been paid to Rhys Davies as at 30 June 2023. In the future fees will be paid to Erasmus Consulting Pty Ltd to whom Mr Davies is a consultant.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
37
Other Key Management Personnel Transactions
The Company has established the Gold Mountain Limited Employee Share Option Plan (ESOP) and a summary of the terms and conditions of the
Plan are set out below:
i.
ii.
iii.
iv.
v.
vi.
All employees (full time and part time) will be eligible to participate in the Plan.
Options are granted under the Plan at the discretion of the board and if permitted by the board, may be issued to an employee’s
nominee.
Each option is to subscribe for one ordinary share in the Company and will expire 5 years from its date of issue. An option is
exercisable at any time from its date of issue provided all relevant vesting conditions, if applicable, have been met. Options will
be issued free. The exercise price of options will be determined by the board. The total number of shares the subject of options
issued under the Plan, when aggregated with issues during the previous 5 years pursuant to the Plan and any other employee
share plan, must not exceed 5% of the Company’s issued share capital.
If, prior to the expiry date of options, a person ceases to be an employee of the Company for any reason other than retirement
at age 60 or more (or such earlier age as the board permits), permanent disability, redundancy or death, the options
held by that person (or that person’s nominee) automatically lapse on the first to occur of a) the expiry of the period of
30 days from the date of such occurrence, and b) the expiry date. If a person dies, the options held by that person will be
exercisable by that person’s legal personal representative.
Options cannot be transferred other than to the legal personal representative of a deceased option holder.
The Company will not apply for official quotation of any options.
vii.
Shares issued because of the exercise of options will rank equally with the Company’s previously issued shares.
viii.
Option holders may only participate in new issues of securities by first exercising their options.
ix.
x.
xi.
Options are granted under the plan for no consideration.
Each share option converts into one ordinary share of Gold Mountain Limited.
20,000,000 performance options under the Company’s Employee Share Option Plan granted to certain directors of exercise price
$0.15 expiring 31 December 2025 is subject to the vesting condition that the total granted options shall be vested over 3 periods
of 12 months per period. The unlisted options were issued on 31 December 2020 in which the original exercise price is subject
to a reduction following the pro-rata entitlement rights issue by $0.0015, amending the new exercise price to $0.146.
The Board may amend the terms and conditions of the plan subject to the requirements of the Listing Rules.
There have been no other transactions involving equity instruments other than those described in the tables above. For details of other transactions
with Key Management Personnel, refer to Note 18: Related Party Disclosures.
(End of Remuneration Report)
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
38
Directors’ Meetings
The number of meetings of Directors (including meetings of committees of Directors) held during the year and the number of meetings attended
by each Director was as follows:
Director
Tim Cameron
Syed Hizam Alsagoff
Pay Chuan “Paul” Lim
Steven Larkins
Aharon Zaetz
David Evans
Board Meetings
Attended
Eligible to Attend
3
4
4
1
3
3
3
4
4
1
3
3
In addition, 10 circular resolutions were signed by the Board during the period.
Auditor Independence
Section 307C of the Corporations Act 2001 requires our auditors to provide the Directors of the Company with an Independence Declaration in
relation to the audit of the annual report. This Independence Declaration is set out on page 42, and forms part of this Directors’ report for the
year ended 30 June 2023.
Non-Audit Services
No amounts were paid or payable to the auditor for non-audit services provided during the year by the auditor are outlined in Note 19 to the
financial statements. The Directors are satisfied that the provision of non-audit services is compatible with the general standard of independence
for auditors imposed by the Corporations Act 2001.
The Directors are of the opinion that the services do not compromise the auditor’s independence as all non-audit services have been reviewed
to ensure that they do not impact the integrity and objectivity of the auditor and none of the services undermine the general principles relating to
auditor independence.
Signed in accordance with a resolution of the Directors.
David Evans
Executive Director
Dated this 19th day of September 2023
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
39
SCHEDULE OF TENEMENTS
Wabag Project and Green River Project Tenements – Papua New Guinea
Licence
Licence
Name
Licence Holder
GMN
Interest
Status
Area
Granted
Expiry
EL1966
Sak Creek
Viva No.20 Limited
70%
Active - Renewal
Pending
sub-
30
blocks
27/06/2013
26/06/2023
EL1968
Crown
Ridge
Viva No.20 Limited
70%
Active - Renewal
Pending
sub-
30
blocks
28/11/2013
27/11/21 Renewal
Pending
EL2306
/
Alukula
Kompiam
Station
Khor ENG Hock & Sons
(PNG)
/
Valley
Abundance
(PNG) Limited
Limited
70%
Active - Renewal
Pending
sub-
48
blocks
14/02/2015
13/12/21 Renewal
Pending
EL2563
Kompiam
Abundance
(PNG) Limited
Valley
100%
Active - Renewal
Pending
sub-
48
blocks
23/01/2020
22/1/22 Renewal
Pending
EL2565
Londol
Viva Gold (PNG) Limited
100%
Active
EL2632
Mt. Wipi
GMN
Limited
6768
(PNG)
100%
Active
ELA2786 Green
River
Viva Gold (PNG) Limited
100%
-
Application
Warden Hearing
to be scheduled
27/05/2019
26/05/2023
14/08/2020
13/8/22 Renewal
Submitted
sub-
74
blocks
sub-
74
blocks
144 sub-
blocks
Brazilian Project Tenements
EL ID
Project Name
831703/2022 Água Boa
831704/2022 Almenara
831700/2022 Bananal Valley
831702/2022 Bananal Valley
831697/2022 Salinas
831696/2022 Salinas
831698/2022 Salinas
870217/2022
Jacurici
870216/2022
Jacurici
870541/2022
Juremal
870207/2022
Juremal
870208/2022
Juremal
870542/2022
Juremal
870543/2022
Juremal
840195/2018 Custódia
840029/2022 Custódia
840030/2022 Custódia
840031/2022 Custódia
840027/2022 Custódia
GMN
ownership
(%)
Status
Area
(ha)
Commodity State
75
75
75
75
75
75
75
75
75
75
75
75
75
75
75
75
75
75
75
GRANTED EL
1898.71
Lithium
Minas Gerais
GRANTED EL
1980.08
Lithium
Minas Gerais
GRANTED EL
540.56
Lithium
Minas Gerais
GRANTED EL
1623.69
Lithium
Minas Gerais
GRANTED EL
GRANTED EL
618.53
979.15
Lithium
Minas Gerais
Lithium
Minas Gerais
GRANTED EL
1455.51
Lithium
Minas Gerais
GRANTED EL
1947.17
Lithium
GRANTED EL
1994.75
Lithium
GRANTED EL
1969.35
Lithium
GRANTED EL
1990.23
Lithium
GRANTED EL
262.39
Lithium
GRANTED EL
1999.75
Lithium
GRANTED EL
1988.98
Lithium
Bahia
Bahia
Bahia
Bahia
Bahia
Bahia
Bahia
GRANTED EL
1599.49
Lithium
Pernambuco
GRANTED EL
1957.62
Lithium
Pernambuco
APPLICATION EL
1959.05
Lithium
Pernambuco
APPLICATION EL
1953.17
Lithium
Pernambuco
GRANTED EL
1955.24
Lithium
Pernambuco
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
40
840028/2022 Custódia
848131/2022 Cerro Corá
848132/2022 Cerro Corá
848134/2022 Porta D'Água
872267/2021 Salitre South
831195/2023 Chapada do Norte
831196/2023 Chapada do Norte
831200/2023 Chapada do Norte
831198/2023 Chapada do Norte
831215/2023 Franciscópolis
831216/2023 Franciscópolis
831217/2023 Franciscópolis
831219/2023 Franciscópolis
831218/2023 Franciscópolis
831203/2023 Coroaci South
831204/2023 Coroaci South
75
75
75
75
75
100
100
100
100
100
100
100
100
100
100
100
GRANTED EL
1988.74
Lithium
Pernambuco
GRANTED EL
1980.72
Lithium
Pernambuco
GRANTED EL
1885.99
Lithium
Pernambuco
GRANTED EL
1104.27
Lithium
Pernambuco
GRANTED EL
1958.72
Phosphate
Bahia
APPLICATION EL
1987.79
Lithium
Minas Gerais
APPLICATION EL
1986.32
Lithium
Minas Gerais
APPLICATION EL
1983.93
Lithium
Minas Gerais
APPLICATION EL
1979.32
Lithium
Minas Gerais
APPLICATION EL
1987.55
Lithium
Minas Gerais
APPLICATION EL
1988.18
Lithium
Minas Gerais
APPLICATION EL
1986.33
Lithium
Minas Gerais
APPLICATION EL
1984.8
Lithium
Minas Gerais
APPLICATION EL
1985.63
Lithium
Minas Gerais
APPLICATION EL
1985.42
Lithium
Minas Gerais
APPLICATION EL
1980.59
Lithium
Minas Gerais
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
41
STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME (for the year
ended 30 June 2023)
Other income
Administration costs
Depreciation and amortisation expense
Employment costs
Exploration expense
Impairments expense
Investor and public relations expense
Legal and professional costs
Other expenses
Loss before income tax expense
Note
3
2023
$
2022
$
16,734
16,734
(340,556)
(57,989)
-
-
152,383
152,383
(549,671)
(140,195)
-
-
(8,988,069)
(16,877,900)
(78,009)
(235,859)
(525,799)
(204,955)
(192,492)
(259,298)
(10,209,547)
(18,072,128)
Income tax expense
Net loss for the period
Attributable to the owners of Gold Mountain Limited
5
-
-
(10,209,547)
(18,072,128)
Other comprehensive income
Foreign currency translation
Total other comprehensive income for the year, net of tax
Total comprehensive loss for the period attributable to:
Owners of Gold Mountain Limited
Non-Controlling Interests
Loss per share
Basic loss per share (cents)
Diluted loss per share (cents)
-
-
-
-
(10,209,933)
(18,072,128)
386
(0.62)
N/A
(1.70)
N/A
20
The statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
43
STATEMENT OF FINANCIAL POSITION (as at 30 June 2023)
Note
2023
$
2022
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Plant and equipment
Deferred exploration and evaluation expenditure
Intangibles
Investments
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
Total equity attributable to equity holders of the Company
Non-controlling interest
TOTAL EQUITY
6
7
8
9
10
11
12
13
14
1,302,567
199,290
1,501,857
61,791
9,767,008
-
50,555
660,525
113,472
773,997
64,118
9,132,679
6,002,538
50,555
9,879,354
15,249,890
11,381,211
16,023,887
263,893
263,893
325,426
325,426
263,893
325,426
11,117,318
15,698,461
51,662,667
47,104,019
1,103,860
38,000
(41,653,596)
(31,443,663)
11,112,932
15,698,356
4,387
105
11,117,318
15,698,461
The statement of financial position should be read in conjunction with the accompanying notes.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
44
STATEMENT OF CHANGES IN EQUITY (for the year ended
30 June 2023)
Issued Capital
Reserves
Accumulated
Losses
Non
Controlling
Interest
Total
$
$
$
$
$
Balance at 1 July 2021
40,955,834
155,928
(13,371,536)
95
27,740,321
Comprehensive Income
Net loss for the period
Other comprehensive income
Total comprehensive income
for the year
Transactions with owners in
their capacity as owners
Issue of share capital
Share issue costs
Options expense
Total transactions with owners
in their capacity as owners
-
-
-
-
6,630,000
(481,815)
-
-
-
-
-
-
-
(117,928)
6,148,185
(117,928)
-
(18,072,128)
-
(18,072,128)
-
-
-
Balance at 30 June 2022
47,104,019
38,000
(31,443,663)
Balance at 1 July 2022
Comprehensive Income
Net loss for the period
Other comprehensive income
Total comprehensive income
for the year
Transactions with owners in
their capacity as owners
Issue of share capital
Share issue costs
Options expense
Foreign currency reserve
movement
Non-Controlling interests on
acquisition
Transactions with owners in
their capacity as owners
47,104,019
38,000
(31,443,663)
-
-
-
-
5,314,671
(756,023)
-
-
-
-
-
-
-
-
-
1,067,243
(1,383)
-
4,558,648
1,065,860
-
(10,209,933)
-
(10,209,933)
-
-
-
-
-
-
Balance at 30 June 2023
51,662,667
1,103,860
(41,653,596)
-
-
-
-
-
-
-
10
105
105
-
386
-
386
-
-
-
-
3,896
3,896
4,387
-
(18,072,128)
-
(18,072,128)
6,630,000
(481,815)
(117,928)
6,030,268
15,698,461
15,698,461
-
(10,209,547)
-
(10,209,547)
5,314,671
(756,023)
1,067,243
(1,383)
3,896
5,628,404
11,117,318
The statement of changes in equity should be read in conjunction with the accompanying notes.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
45
STATEMENT OF CASHFLOWS
(for the year ended 30 June 2023)
Cash flows from operating activities
Interest received
Payments to suppliers and employees
Other receipts
Note
2023
$
2022
$
12,374
779
(1,097,373)
(2,232,321)
-
23,676
Net cash (used in) provided by operating activities
24
(1,084,999)
(2,207,866)
Cash flows from investing activities
Payments for plant and equipment
Refund of security deposits
Payments for exploration and evaluation
Net cash (used in) provided by investing activities
Cash flows from financing activities
Proceeds from issue of shares
Payments for share issue costs
Proceeds from borrowings
Repayment of borrowings
Net cash provided by (used in) financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of financial year
-
-
-
35,545
(1,980,414)
(4,118,430)
(1,980,414)
(4,082,885)
3,928,792
6,630,000
(209,900)
(481,815)
22,736
(34,173)
45,615
(22,807)
3,707,455
6,170,993
642,042
660,525
(119,728)
780,283
660,525
Cash and cash equivalents at end of financial year
6
1,302,567
The statement of cashflows should be read in conjunction with the accompanying notes.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
46
NOTES TO THE FINANCIAL STATEMENTS
(for the year ended 30 June 2023)
This financial report includes the financial statements and notes of Gold Mountain Limited.
Number
Notes to the Financial Statements
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Summary of significant accounting policies
Operating segments
Revenue & other income
Loss for the year
Income tax expense
Current assets - Cash and cash equivalents
Current assets - Trade and other receivables
Non-current assets – Plant and equipment
Non-current assets – Deferred exploration and evaluation expenditure
Non-current assets – Intangible assets
Non-current assets – Investments
Current liabilities – Trade and other payables
Contributed equity
Reserves
Share based payments
Related party disclosures and Key Management Personnel compensation
Loss per share
Financial Risk Management
Auditor’s remuneration
Parent Entity Information
Dividends
Events subsequent to reporting date
Controlled entities
Cash flow information
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
47
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES
a.
Basis of Preparation
The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting
Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board
(AASB) and the Corporations Act 2001.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing
relevant and reliable information about transactions, events, and conditions. Compliance with Australian Accounting Standards ensures
that the financial statements and notes also comply with International Financial Reporting Standards as issued by the IASB. Material
accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied
unless otherwise stated.
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 selected non-current assets, financial assets, and financial liabilities
b.
Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current
financial year.
When the Company applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies items in its financial
statements, financial statements as at the beginning of the earliest comparative period will be disclosed.
c.
Principles of consolidation
Business combinations
For every business combination, the Company identifies the acquirer, which is the combining entity that obtains control over the other
combining entities. An investor controls an investee when it is exposed to, 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. In assessing control, the Company takes into
consideration potential voting rights that are currently exercisable. The acquisition date is the date on which control is transferred from
the acquirer.
Interests in equity-accounted investees
The Company’s interests in equity-accounted investees comprise the interest in a joint venture. A joint venture is a joint arrangement,
whereby the Group and other parties have joint control and have rights to the net assets of the arrangement. The interest in the joint
venture is accounted for using the equity method. It is recognised initially at cost, which includes transaction costs. Subsequent to initial
recognition, the consolidated financial statements include the Company’s share of the profit or loss and other comprehensive income of
equity-accounted investees, until the date on which significant influence or joint control ceases.
Joint arrangements
Under AASB 11, the Company has classified its interests in joint arrangements as either joint operations (if the Group has rights to the
assets, and obligations for the liabilities, relating to an arrangement) or joint ventures (if the Group has rights only to the net assets of an
arrangement).
When making this assessment, the Company considered the structure of the arrangements, the legal form of any separate vehicles, the
contractual terms of the arrangements and other facts and circumstances.
The Company did not have any joint arrangements at the start of the financial year.
d.
Impairment of Assets
At the end of each reporting period, the Company assesses whether there is any indication that an asset may be impaired. The
assessment will include the consideration of external and internal sources of information. If such an indication exists, an impairment test
is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell
and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised
immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (e.g. in accordance
with the revaluation model in AASB 116). Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance
with that Standard.
Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the
cash-generating unit to which the asset belongs.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
48
e.
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits available on demand with banks and other short-term highly liquid investments
with original maturities of three months or less.
f.
Provisions
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.
Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period.
g.
Trade and other payables
Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the
Company during the reporting period which remain unpaid. The balance is recognised as a current liability with the amounts normally paid
within 30 days of recognition of the liability.
h.
Income Tax
The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax expense (income).
Current income tax expense charged to profit or loss is the tax payable on taxable income. Current tax liabilities (assets) are measured
at the amounts expected to be paid to (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well unused
tax losses.
Current and deferred income tax expense (income) is charged or credited outside profit or loss when the tax relates to items that are
recognised outside profit or loss.
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 and their measurement also reflects the manner in which management expects to recover or settle the carrying amount
of the related asset or liability.
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.
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) a legally enforceable right of set-off exists; and (b) 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.
i.
Exploration and Development Expenditure
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an exploration and evaluation
asset in the year in which they are incurred where the following conditions are satisfied:
(i)
(ii)
The rights to tenure of the area of interest are current; and
at least one of the following conditions is also met:
(a)
(b)
the exploration and evaluation expenditures are expected to be recouped through successful development and
exploration of the area of interest, or alternatively, by its sale; or
exploration and evaluation activities in the area of interest have not at the reporting date reached a stage which permits
a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant
operations in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies, exploratory drilling,
trenching, and sampling and associated activities and an allocation of depreciation and amortised of assets used in exploration and
evaluation activities. General and administrative costs are only included in the measurement of exploration and evaluation costs where
they are related directly to operational activities in a particular area of interest.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
49
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an
exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the exploration and evaluation asset
(for the cash generating unit(s) to which it has been allocated being no larger than the relevant area of interest) is estimated to determine
the extent of the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased
to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment loss been recognised for the asset in previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest, the relevant exploration and
evaluation asset is tested for impairment and the balance is then reclassified to development.
Costs of site restoration are provided over the life of the project from when exploration commences and are included in the costs of that
stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal, and
rehabilitation of the site in accordance with local laws and regulations and clauses of the permits. Such costs have been determined using
estimates of future costs, current legal requirements, and technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site restoration, there is
uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly, the costs
have been determined on the basis that the restoration will be completed within one year of abandoning the site.
j.
Revenue and Other Income
Revenue is measured at the fair value of the consideration received or receivable. When the inflow of consideration is deferred, it is treated
as the provision of financing and is discounted at a rate of interest that is generally accepted in the market for similar arrangements. The
difference between the amount initially recognised and the amount ultimately received is interest revenue.
All revenue is stated net of the amount of goods and services tax (GST).
k.
Earnings (Loss) per share
Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to exclude any costs of servicing equity
(other than dividends) divided by the weighted average number of ordinary shares, adjusted for any bonus element.
Diluted earnings per share is calculated as net profit attributable to members, adjusted for:
(i)
(ii)
(iii)
costs of servicing equity (other than dividends);
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as
expenses; and
other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary
shares; divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus
element.
l.
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 Taxation Office (ATO).
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or
payable to, the ATO is included with other receivables or payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are
recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to
suppliers.
m.
Plant and Equipment
Each class of plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and
impairment losses.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
50
Plant and equipment
Plant and equipment are measured on the cost basis and therefore carried at cost less accumulated depreciation and any accumulated
impairment. In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying
amount is written down immediately to the estimated recoverable amount and impairment losses are recognised either in profit or loss or
as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when
impairment indicators are present.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from
these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset’s
employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining
recoverable amounts.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other
repairs and maintenance are charged to the statement of profit or loss and other comprehensive income during the financial period in
which they are incurred.
Depreciation
The depreciable amount of all fixed assets is depreciated on a straight-line basis over the asset’s useful life to the Company commencing
from the time the asset is held ready for use.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Plant and equipment
Depreciation Rate
20%-32%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in
the statement of profit or loss and other comprehensive income. When revalued assets are sold, amounts included in the revaluation
surplus relating to that asset are transferred to retained earnings.
Leases (the Group as lessee)
At inception of a contract, the Group assesses if the contract contains or is a lease. If there is a lease present, a right-of-use asset and a
corresponding lease liability is recognised by the Group where the Group is a lessee. However, all contracts that are classified as short-
term leases (lease with remaining lease term of 12 months or less) and leases of low-value assets are recognised as an operating expense
on a straight-line basis over the term of the lease.
Initially, the lease liability is measured at the present value of the lease payments still to be paid at the commencement date. The lease
payments are discounted at the interest rate implicit in the lease. If this rate cannot be readily determined, the Group uses the incremental
borrowing rate.
Lease payments included in the measurement of the lease liability are as follows:
–
–
–
–
–
–
fixed lease payments less any lease incentives;
variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement
date;
the amount expected to be payable by the lessee under residual value guarantees;
the exercise price of purchase options, if the lessee is reasonably certain to exercise the options;
lease payments under extension options if lessee is reasonably certain to exercise the options; and
payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
51
Subsequently, the lease liability is measured by a reduction to the carrying amount of any payments made and an increase to reflect any
interest on the lease liability.
The right-of-use assets is an initial measurement of the corresponding lease liability less any incentives and initial direct costs.
Subsequently, the measurement is the cost less accumulated depreciation (and impairment if applicable).
Right-of-use assets are depreciated over the lease term or useful life of the underlying asset whichever is the shortest.
Where a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group anticipates to exercise
a purchase option, the specific asset is depreciated over the useful life of the underlying asset.
n.
Financial Instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions to the instrument.
For financial assets, this is the date that the Group commits itself to either the purchase or sale of the asset (i.e. trade date accounting is
adopted).
Financial instruments (except for trade receivables) are initially measured at fair value plus transaction 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. Where available,
quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.
Trade receivables are initially measured at the transaction price if the trade receivables do not contain a significant financing component
or if the practical expedient was applied as specified in AASB 15.63.
Classification and subsequent measurement
Financial liabilities
Financial liabilities are subsequently measured at:
–
–
amortised cost; or
fair value through profit or loss.
A financial liability is measured at fair value through profit or loss if the financial liability is:
–
–
–
a contingent consideration of an acquirer in a business combination to which AASB 3: Business Combinations applies;
held for trading; or
initially designated as at fair value through profit or loss.
All other financial liabilities are subsequently measured at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest expense in
profit or loss over the relevant period.
The effective interest rate is the internal rate of return of the financial asset or liability, that is, it is the rate that exactly discounts the
estimated future cash flows through the expected life of the instrument to the net carrying amount at initial recognition.
A financial liability is held for trading if it is:
–
–
–
incurred for the purpose of repurchasing or repaying in the near term;
part of a portfolio where there is an actual pattern of short-term profit taking; or
a derivative financial instrument (except for a derivative that is in a financial guarantee contract or a derivative that is in an
effective hedging relationship).
Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated
hedging relationship.
The change in fair value of the financial liability attributable to changes in the issuer's credit risk is taken to other comprehensive income
and is not subsequently reclassified to profit or loss. Instead, it is transferred to retained earnings upon derecognition of the financial
liability.
If taking the change in credit risk in other comprehensive income enlarges or creates an accounting mismatch, then these gains or
losses should be taken to profit or loss rather than other comprehensive income.
A financial liability cannot be reclassified.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
52
Financial guarantee contracts
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it
incurs because a specified debtor fails to make payment when due in accordance with the terms of a debt instrument.
Financial guarantee contracts are initially measured at fair value (and if not designated as at fair value through profit or loss and do not
arise from a transfer of a financial asset) and subsequently measured at the higher of:
–
–
the amount of loss allowance determined in accordance to AASB 9.3.25.3; and
the amount initially recognised less accumulative amount of income recognised in accordance with the revenue recognition
policies.
Financial asset
Financial assets are subsequently measured at:
–
–
–
amortised cost;
fair value through other comprehensive income; or
fair value through profit or loss
on the basis of the two primary criteria:
–
–
the contractual cash flow characteristics of the financial asset; and
the business model for managing the financial assets.
A financial asset is subsequently measured at amortised cost if it meets the following conditions:
–
–
the financial asset is managed solely to collect contractual cash flows; and
the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the
principal amount outstanding on specified dates.
A financial asset is subsequently measured at fair value through other comprehensive income if it meets the following conditions:
–
–
the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the
principal amount outstanding on specified dates; and
the business model for managing the financial asset comprises both contractual cash flows collection and the selling of the
financial asset.
By default, all other financial assets that do not meet the conditions of amortised cost and the fair value through other comprehensive
income's measurement condition are subsequently measured at fair value through profit or loss.
The Group initially designates a financial instrument as measured at fair value through profit or loss if:
–
–
–
it eliminates or significantly reduces a measurement or recognition inconsistency (often referred to as “accounting mismatch”)
that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on them on different bases;
it is in accordance to the documented risk management or investment strategy and information about the groupings was
documented appropriately, so as the performance of the financial liability that was part of a group of financial liabilities or
financial assets can be managed and evaluated consistently on a fair value basis; and
it is a hybrid contract that contains an embedded derivative that significantly modifies the cash flows otherwise required by the
contract.
The initial designation of the financial instruments to measure at fair value through profit or loss is a one-time option on initial
classification and is irrevocable until the financial asset is derecognised.
Equity instruments
At initial recognition, as long as the equity instrument is not held for trading or is not a contingent consideration recognised by an
acquirer in a business combination to which AASB 3 applies, the Group made an irrevocable election to measure any subsequent
changes in fair value of the equity instruments in other comprehensive income, while the dividend revenue received on underlying
equity instruments investments will still be recognised in profit or loss.
Regular way purchases and sales of financial assets are recognised and derecognised at settlement date in accordance with the
Group's accounting policy.
Derecognition
Derecognition refers to the removal of a previously recognised financial asset or financial liability from the statement of financial position.
Derecognition of financial liabilities
A liability is derecognised when it is extinguished (i.e. when the obligation in the contract is discharged, cancelled, or expires). An
exchange of an existing financial liability for a new one with substantially modified terms, or a substantial modification to the terms of a
financial liability, is treated as an extinguishment of the existing liability and recognition of a new financial liability.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
53
The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable, including
any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.
Derecognition of financial assets
A financial asset is derecognised when the holder's contractual rights to its cash flows expires, or the asset is transferred in such a way
that all the risks and rewards of ownership are substantially transferred.
All the following criteria need to be satisfied for the derecognition of a financial asset:
–
–
–
the right to receive cash flows from the asset has expired or been transferred;
all risk and rewards of ownership of the asset have been substantially transferred; and
the Group no longer controls the asset (i.e. it has no practical ability to make unilateral decisions to sell the asset to a third
party).
On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying amount and the sum of
the consideration received and receivable is recognised in profit or loss.
On derecognition of a debt instrument classified as fair value through other comprehensive income, the cumulative gain or loss
previously accumulated in the investment revaluation reserve is reclassified to profit or loss.
On derecognition of an investment in equity which was elected to be classified under fair value through other comprehensive income,
the cumulative gain or loss previously accumulated in the investments revaluation reserve is not reclassified to profit or loss, but is
transferred to retained earnings.
Impairment
The Group recognises a loss allowance for expected credit losses on:
–
–
–
–
–
financial assets that are measured at amortised cost or fair value through other comprehensive income;
lease receivables;
contract assets (e.g. amount due from customers under contracts);
loan commitments that are not measured at fair value through profit or loss; and
financial guarantee contracts that are not measured at fair value through profit or loss.
Loss allowance is not recognised for:
–
–
financial assets measured at fair value through profit or loss; or
equity instruments measured at fair value through other comprehensive income.
Expected credit losses are the probability-weighted estimate of credit losses over the expected life of a financial instrument. A credit
loss is the difference between all contractual cash flows that are due and all cash flows expected to be received, all discounted at the
original effective interest rate of the financial instrument.
The Group use the following approaches to impairment, as applicable under AASB 9:
–
–
–
–
the general approach;
the simplified approach;
the purchased or originated credit impaired approach; and
low credit risk operational simplification.
General approach
Under the general approach, at each reporting period, the Group assessed whether the financial instruments are credit impaired, and
if:
–
–
the credit risk of the financial instrument increased significantly since initial recognition, the Group measured the loss allowance
of the financial instruments at an amount equal to the lifetime expected credit losses; and
there was no significant increase in credit risk since initial recognition, the Group measured the loss allowance for that financial
instrument at an amount equal to 12-month expected credit losses.
Simplified approach
The simplified approach does not require tracking of changes in credit risk at every reporting period, but instead requires the recognition
of lifetime expected credit loss at all times.
This approach is applicable to:
–
–
trade receivables or contract assets that results from transactions that are within the scope of AASB 15: Revenue from Contracts
with Customers, that contain a significant financing component; and
lease receivables.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
54
In measuring the expected credit loss, a provision matrix for trade receivables was used taking into consideration various data to get to
an expected credit loss (i.e. diversity of its customer base, appropriate groupings of its historical loss experience, etc).
Purchased or originated credit impaired approach
For a financial asset that is considered to be credit impaired (not on acquisition or originations), the Group measured any change in its
lifetime expected credit loss as the difference between the asset’s gross carrying amount and the present value of estimated future
cash flows discounted at the financial asset’s original effective interest rate. Any adjustment is recognised in profit or loss as an
impairment gain or loss.
Evidence of credit impairment includes:
–
–
–
–
–
significant financial difficulty of the issuer or borrower;
a breach of contract (e.g. default or past due event);
where a lender has granted to the borrower a concession, due to the borrower's financial difficulty, that the lender would not
otherwise consider;
it is probable the borrower will enter bankruptcy or other financial reorganisation; and
the disappearance of an active market for the financial asset because of financial difficulties.
Low credit risk operational simplification approach
If a financial asset is determined to have low credit risk at the initial reporting date, the Group assumed that the credit risk has not
increased significantly since initial recognition and, accordingly, can continue to recognise a loss allowance of 12-month expected credit
loss.
In order to make such determination that the financial asset has low credit risk, the Group applied its internal credit risk ratings or other
methodologies using a globally comparable definition of low credit risk.
A financial asset is considered to have low credit risk if:
–
–
–
there is a low risk of default by the borrower;
the borrower has strong capacity to meet its contractual cash flow obligations in the near term; and
adverse changes in economic and business conditions in the longer term, may, but not necessarily, reduce the ability of the
borrower to fulfil its contractual cash flow obligations.
A financial asset is not considered to carry low credit risk merely due to existence of collateral, or because a borrower has a lower risk
of default than the risk inherent in the financial assets, or lower than the credit risk of the jurisdiction in which it operates.
Recognition of expected credit losses in financial statements
At each reporting date, the Group recognised the movement in the loss allowance as an impairment gain or loss in the statement of
profit or loss and other comprehensive income.
The carrying amount of financial assets measured at amortised cost includes the loss allowance relating to that asset.
Assets measured at fair value through other comprehensive income are recognised at fair value with changes in fair value recognised
in other comprehensive income. The amount in relation to change in credit risk is transferred from other comprehensive income to profit
or loss at every reporting period.
For financial assets that are unrecognised (e.g. loan commitments yet to be drawn, financial guarantees), a provision for loss allowance
is created in the statement of financial position to recognise the loss allowance.
Impairment of Assets
At the end of each reporting period, the Group assesses whether there is any indication that an asset may be impaired. The
assessment will include considering external sources of information and internal sources of information, including dividends received
from subsidiaries, associates or joint ventures deemed to be out of pre-acquisition profits. If such an indication exists, an impairment
test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair value less costs
of disposal and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount
is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (e.g.
in accordance with the revaluation model in AASB 116: Property, Plant and Equipment). Any impairment loss of a revalued asset is
treated as a revaluation decrease in accordance with that other Standard.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of
the cash-generating unit to which the asset belongs.
Impairment testing is performed annually for goodwill, intangible assets with indefinite lives and intangible assets not yet available for
use.
When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the
revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
55
of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which
case the reversal of the impairment loss is treated as a revaluation increase.
o.
Employee Benefits
Provision is made for the Company’s liability for employee benefits arising from services rendered by employees to the end of the reporting
period. Employee benefits that are expected to be settled within one (1) year have been measured at the amounts expected to be paid
when the liability is settled. Employee benefits payable later than one (1) year have been measured at the present value of the estimated
future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wages increases and
the probability that the employee may satisfy vesting requirements. Those cash flows are discounted using market yields on national
government bonds with terms to maturity that match the expected timing of cash flows.
p.
Rounding of Amounts
The parent entity has applied the relief available to it under ASIC Class Order 98/100 and accordingly, amounts in the financial statements
and directors’ report have been rounded off to the nearest one dollar ($1).
q.
Critical Accounting Estimates and Judgments
The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best
available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic
data, obtained both externally and within the Company.
Key estimates
(i)
Impairment
The Company assesses impairment at the end of each reporting period by evaluating conditions and events specific to the Company
that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use
calculations which incorporate various key assumptions.
Key judgments
(i)
Exploration and evaluation expenditure
The Company capitalises expenditure relating to exploration and evaluation where it is considered likely to be recoverable or where
the activities have not reached a stage that permits a reasonable assessment of the existence of reserves. While there are certain
areas of interest from which no reserves have been extracted, the directors are of the continued belief that such expenditure should
not be written off since feasibility studies in such areas have not yet concluded.
r.
Going concern
The financial statements have been prepared on the going concern basis, the validity of which depends upon the positive cash position. The
Company’s existing projections show that further funds will be required to be generated, either by capital raisings, sales of assets or other
initiatives, to enable the Company to fund its currently planned activities for at least the next twelve months from the date of signing these
financial statements. Should new opportunities present that require additional funds the Directors will take action to reprioritise activities,
dispose of assets and or raise further funds.
Notwithstanding this issue, accordingly the Directors have prepared the financial statements of the Company on a going concern basis. In
arriving at this position, the Directors have considered the following pertinent matter:
-
Australian Accounting Standard, AASB 101 “Accounting Policies”, states that an entity shall prepare financial statements on a going
concern basis unless management either intends to liquidate the entity or to cease trading, or has no realistic alternative but to do
so.
In the Directors’ opinion, at the date of signing the financial report, there are reasonable grounds to believe that the matters set out above
will be achieved and therefore the financial statements have been prepared on a going concern basis.
s.
Issued capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as
a deduction from the proceeds.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
56
t.
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief
operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been
identified as the Board of Directors of Gold Mountain Limited.
u.
Associates
Associates are entities over which the Company has significant influence but not control or joint control. Investments in associates are
accounted for using the equity method. Under the equity method, the share of the profits or losses of the associate is recognised in profit or
loss and the share of the movements in equity is recognised in other comprehensive income. Investments in associates are carried in the
statement of financial position at cost plus post-acquisition changes in the Company’s share of net assets of the associates. Dividends
received or receivable from associates reduce the carrying amount of the investment.
When the Company’s share of losses in an associate equals or exceeds its interest in the associate, including any unsecured long-term
receivables, the consolidated entity does not recognise further losses, unless it has incurred obligations or made payments on behalf of the
associate.
v.
Joint Ventures
A joint venture is a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control. The
Company’s interest in joint venture entities are accounted for using the proportionate consolidation method of accounting. The Company
recognises its interest in the assets that it controls and the liabilities that it incurs and the expenses that it incurs and its share of the income
that it earns from the sale of goods or services by the joint venture, classified according to the nature of the assets, liabilities, income or
expense.
Profits or losses on transactions establishing the joint venture entities and transactions with the joint venture are eliminated to the extent of
the Company’s ownership interest until such time as they are realised by the joint venture entity on consumption or sale, unless they relate
to an unrealised loss that provides evidence of the impairment of an asset transferred.
The Company discontinues the use of proportionate consolidation from the date on which it ceases to have joint control over a jointly
controlled entity.
w.
Fair Value of Assets and Liabilities
Equity Instruments
The fair value of available-for-sale financial assets is determined by reference to their quoted closing bid price at the reporting date.
Trade and Other Receivables
The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the market rate of interest
at the reporting date. This fair value is determined for disclosure purposes. Due to the short-term nature of other receivables, their carrying
value is assumed to approximate their fair value.
Non-Derivative Financial Liabilities
Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows,
discounted at the market rate of interest at the reporting date.
x.
New Accounting Standards and Interpretations adopted by the group
The group has applied the following standards and amendments for the first time for their annual reporting period commencing 1 July 2022:
• AASB 2020-3 Amendments to Australian Accounting Standards – Annual Improvements 20182020 and Other Amendments [AASB 1,
AASB 3, AASB 9, AASB 116, AASB 137 & AASB 141].
The group also elected to adopt the following amendments early:
• AASB 2021-5 Amendments to Australian Accounting Standards – Deferred Tax related to Assets and Liabilities arising from a Single
Transaction [AASB 112].
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
57
The amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly
affect the current or future periods.
y.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been
early adopted by the Company for the annual reporting period ended 30 June 2023. The Company’s assessment of the impact of these
new or amended Accounting Standards and Interpretations are that they will have no material effect.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
58
NOTE 2: OPERATING SEGMENTS
Segment Information
Identification of reportable segments
During the year, the Company operated principally in one business segment being mineral exploration and in three geographical segments
being Australia, Brazil and Papua New Guinea.
The Company’s revenues and assets and liabilities according to geographical segments are shown below.
June 2023
June 2022
Total
$
Australia
Brazil
$
$
PNG
$
Total
$
Australia
$
PNG
$
16,734
16,734
16,734
16,734
-
-
-
152,383
152,383
152,383
152,383
-
-
REVENUE
Revenue
Total segment revenue
RESULTS
Net loss before income tax
(10,209,547)
(1,219,935)
(1,543)
(8,988,069)
(18,072,128)
(1,194,228)
(16,877,900)
Income tax
Net loss
-
-
-
-
-
-
(10,209,547)
(1,219,935)
(1,543)
(8,988,069)
(18,072,128)
(1,194,228)
(16,877,900)
ASSETS AND LIABILITIES
Assets
Liabilities
11,381,211
382,798 2,986,864
8,011,549
16,023,887
6,891,208
9,132,679
263,892
263,272
620
-
325,426
325,426
-
NOTE 3: REVENUE AND OTHER INCOME
a.
Revenue
Other income
Other
Interest received 1
Rental income
Foreign exchange gains
Government grants and cash boost
Total other income
Total revenue
1 Interest received from:
Bank
Other
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
2023
$
2022
$
-
127,928
12,374
-
779
5,000
4,360
18,676
-
-
16,734
152,383
16,751
152,383
11,585
789
12,374
756
23
946
59
NOTE 4: LOSS FOR THE YEAR
Loss before income tax includes the following specific expenses:
—
—
—
Consultants fees
Legal costs
Rental expense on operating leases
a. Significant expenses
The following significant expense items are relevant in explaining the financial performance:
—
—
Exploration expense
Impairments Write Off expense
NOTE 5: INCOME TAX EXPENSE
The prima facie tax on the loss before income tax is reconciled to income tax as follows:
Loss before income tax expense
Prima facie tax benefit on the loss before income tax at 25%
(2022: 25%)
Add:
Tax effect of:
Other non-allowable items
Less:
Tax effect of:
Other deductible expenses
Future tax benefits not brought to account
Income tax attributable to the Company
2023
$
68,140
71,544
-
-
2022
$
248,000
50,787
(23,989)
-
8,988,069
16,877,900
2023
$
2022
$
(10,209,547)
(18,072,128)
(2,552,387)
(4,518,032)
2,247,017
4,221,975
2,247,017
4,221,975
(908,582)
(1,070,035)
1,213,952
1,366,092
-
-
The Company has tax losses arising in Australia of $19,394,480 (2022: $18,180,528) that are available indefinitely to offset against future taxable
profits.
Deferred tax assets not brought to account, the benefits of which will only be realised if the conditions for deductibility set out in Note 1(h) occur.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
60
NOTE 6: CASH AND CASH EQUIVALENTS
Cash at bank
Short-term bank deposits
2023
$
2022
$
35,099
62,367
1,267,468
598,158
1,302,567
660,525
Reconciliation of cash
Cash at the end of the financial year as shown in the statement of cash flows is reconciled to
items in the statement of financial position as follows:
Cash and cash equivalents
1,302,567
660,525
Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between one
day and three months, depending on the immediate cash requirements of the Company, and earn interest at the respective short-term deposit
rates.
NOTE 7: TRADE AND OTHER RECEIVABLES
Current
PNG Project Advance
Other receivables
2023
$
75,000
124,290
2022
$
75,000
38,472
Total current trade and other receivables
199,290
113,472
NOTE 8: PLANT AND EQUIPMENT
Plant and equipment – at cost
Accumulated depreciation
Reconciliation of the carrying amount of plant and equipment at the beginning and end of the
current and previous financial year:
Carrying amount at beginning of the year
Additions
Depreciation expense
Carrying amount at end of the year
2023
$
2022
$
667,187
609,604
(605,396)
(545,487)
61,791
64,118
64,118
57,582
162,377
-
(59,909)
(98,259)
61,791
64,118
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
61
NOTE 9: DEFERRED EXPLORATION AND EVALUATION EXPENDITURE
Assets in Development
Balance at the beginning of the year
Expenditure incurred
Impairment loss on existing tenements
Net carrying value
2023
$
2022
$
9,132,679
21,868,365
3,634,329
4,142,214
(3,000,000)
(16,877,900)
9,767,008
9,132,679
Recoverability of the carrying amount of deferred exploration and evaluation expenditure is dependent on the successful development and
commercial exploitation or sale of the areas of interest. Management reassess the carrying value of the Company’s tenements at each half year,
or at a period other than that should there be an indication of impairment.
NOTE 10: INTANGIBLE ASSETS
Intangible assets
Goodwill on acquisition
Total intangible assets
2023
$
-
-
2022
$
6,002,538
6,002,538
Movements in Carrying Amounts
Movement in the carrying amounts for intangible assets between the beginning and the end of the current financial year:
Carrying amount at beginning of year
Additions
Disposals
Impairment
Movement in foreign exchange
Carrying amount at end of year
Goodwill on acquisition
2023
$
2022
$
6,002,538
6,026,310
-
-
(5,997,669)
(4,869)
-
-
-
-
(23,772)
6,002,538
On 16 August 2016, the Company completed the acquisition of an additional 50% of the issued capital of Viva through the issue of 60,000,000
shares at $0.08 each to the Vendors. Simultaneously, the Vendors issued 125 ordinary shares to GMN comprising 50% of the entire issued capital
of Viva held by the Vendors. On completion of this acquisition, the Company now holds a controlling interest of 70% in Viva.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
62
NOTE 11: INVESTMENTS
Non-Current
Gold nuggets
NOTE 12: TRADE AND OTHER PAYABLES
Current
Unsecured liabilities:
Trade payables and accrued expenses
Amounts payable to Director and related entities
NOTE 13: CONTRIBUTED EQUITY
(a) Ordinary shares
Ordinary Shares, issued
Share issue costs
Total issued capital
2023
$
50,555
50,555
2022
$
50,555
50,555
2023
$
2022
$
243,443
297,426
20,450
28,000
263,893
325,426
2023
Number of
shares
2023
$
2022
Number of
shares
2022
$
1,969,932,614
56,208,730
1,193,149,170
50,894,059
(4,546,063)
51,662,667
(3,790,040)
47,104,019
Ordinary shares carry one vote per share and carry the rights to dividends.
Ordinary shares participate in dividends and the proceeds on winding-up of the parent entity in proportion to the number of shares held.
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.
(b) Movements in ordinary shares on issue
Number of
shares
Issue Price
$
Date
Particulars
At 30 June 2021
18-08-21
18-08-21
23-03-21
30-06-22
Ordinary shares issued
Ordinary shares issued
Ordinary shares issued
Share Issue Costs
At 30 June 2022
19-09-22
30-09-22
21-11-22
03-01-23
19-01-23
Ordinary shares issued
Ordinary shares issued
Ordinary shares issued
Ordinary shares issued
Ordinary shares issued
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
767,724,924
32,424,242
270,000,004
123,000,000
1,193,149,170
30,000,000
260,000,000
95,000,000
266,666,667
16,666
-
$0.020
$0.010
$0.0060
$0.0060
$0.0060
$0.0075
$0.0400
40,955,834
-
5,400,000
1,230,000
(481,815)
47,104,019
180,000
1,560,000
570,000
2,000,000
667
63
13-02-23
30-06-23
Ordinary shares issued
Share Issue Costs
At 30 June 2023
125,000,000
$0.0080
1,000,000
1,969,932,614
(756,023)
51,662,667
Information on options is included in Note 15: Share Based Payments.
(d) Capital Management
The Directors’ objectives when managing capital are to safeguard the Company’s ability to continue as a going concern, so that they may
continue to provide returns for shareholders and benefits for other stakeholders. The Group’s overall strategy remains unchanged from the
2023 financial year.
The focus of the Company’s capital risk management is the current working capital position against the requirements of the Company to meet
exploration programs and corporate overheads. The Company’s strategy is to ensure appropriate liquidity is maintained to meet anticipated
operating requirements, with a view to initiating appropriate capital raisings as required.
The Company’s debt and capital includes ordinary share capital and financial liabilities, supported by financial assets.
There are no externally imposed capital requirements.
Management effectively manages the Company’s capital by assessing the Company’s financial risks and adjusting its capital structure in
response to changes in these risks and in the market. These responses include the management of debt levels, budgeting and share issues.
There have been no changes in the strategy adopted by management to control the capital of the Company since the prior year.
NOTE 14: RESERVES
Reserves
Foreign currency translation reserve
Share based payments reserve
Movements in the Foreign Currency Translation Reserve
At 1 July
Foreign Currency Translation
At 30 June
Movements in options over ordinary shares on issue
At 1 July
Options expense amortised
At 30 June
NOTE 15: SHARE BASED PAYMENTS
(a) Share-based payments
Expense arising from the grant of options
Total Share Based Payments
2023
$
(1,383)
1,105,243
1,103,860
-
(1,401)
(1,401)
38,000
1,067,243
1,105,243
2022
$
-
38,000
38,000
-
-
-
155,928
(117,928)
38,000
2023
$
2022
$
(1,067,243
(129,475)
(117,928)
(117,928)
(b) Movements in unlisted options
The following table details the number, weighted average exercise prices (WAEP) and movements in share options issued as capital raising
purposes, employment incentives or as payments to third parties for services during the year.
Outstanding at the beginning of the year
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
2023
Number
156,128,978
2023
WAEP
$0.112
2022
2022
Number
WAEP
206,788,723
$0.133
64
NOTE 15: SHARE BASED PAYMENTS
Options granted during the year
Options lapsed during the year
Options exercised during the year
Outstanding at the end of the year
(c) Options exercisable at reporting date
Unlisted options expiring 03 July 2022
Unlisted options expiring 08 October 2022
Unlisted options expiring 31 December 2022
GMNAT ESOP options Expiring 31 December 2025
GMNAU Unlisted options Expiring 26 October 2026
GMNAU Unlisted options Expiring 21 December 2026
Listed options expiring 16 February 2023
GMNOB Listed options Expiring 25 March 2024(1)
GMNAV Unlisted options Expiring 21 November 2023(2)
GMNAW Unlisted options Expiring 23 November 2024(3)
GMNAX Unlisted options Expiring 23 November 2025(4)
GMNAY Unlisted options Expiring 23 November 2026(5)
GMNO Listed options expiring 07 March 2026(6)
155,000,000
(83,411,924)
30,000,000
(80,659,745)
-
-
-
-
227,717,054
156,128,978
2022
Exercise
2022
Exercise
Number
Price
Number
Price
23,411,924
39,000,000
11,000,000
20,000,000
$0.150
$0.150
$0.146
$0.146
10,000,000
$0.120
20,000,000
$0.120
111,599,898
$0.040
66,419,986
$0.020
20,000,000
10,000,000
20,000,000
115,864,430
125,000,000
10,000,000
10,000,000
10,000,000
611,661,063
$0.1475
$0.120
$0.120
$0.020
$0.012
$0.030
$0.035
$0.040
$0.010
Exercisable at reporting date
922,525,493
301,431,8808
(d) Options issued during the year
(1) 49,444,444 listed options granted on 21 November 2022 to a broker have an exercise price of $0.02, expire together of the same class
options on 25 March 2024.
(2) 125,000,000 unlisted options granted on 21 November 2022 to Mars Mines Limited for the acquisition of a 20% interest in lithium projects
held by Mars Mines Limited, have an exercise price of $0.012, expire in 12 months from the grant date and are subject to vesting conditions
that the total options granted shall be vested over 1 period of 12 months per period.
(3) 10,000,000 unlisted options granted on 23 November 2022 to Executive Director/CEO Tim Cameron have an exercise price of $0.03,
expire in 24 months from the grant date and are subject to vesting conditions that the total options granted shall be vested over 2 periods of
12 months per period.
(4) 10,000,000 unlisted options granted on 23 November 2022 to Executive Director/CEO Tim Cameron have an exercise price of $0.035,
expire in 36 months from the grant date and are subject to vesting conditions that the total options granted shall be vested over 3 periods of
12 months per period.
(5) 10,000,000 unlisted options granted on 23 November 2022 to Executive Director/CEO Tim Cameron have an exercise price of $0.04,
expire in 48 months from the grant date and are subject to vesting conditions that the total options granted shall be vested over 4 periods of
12 months per period.
(6) 611,661,063 listed options granted at various dates in the year under the rights issue prospectus have an exercise price of $0.01, they
expire on 7 March 2026.
The options must be exercised on or before the expiry date in cash.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
65
NOTE 15: SHARE BASED PAYMENTS
(e) Fair value of unlisted options
The fair value of the options granted is estimated as at the date of grant using a Black-Scholes model taking into
account the terms and conditions upon which the options were granted. The following tables list the inputs to the
model used for the year ended 30 June 2023.
Unlisted
options
expiring
21/11/2023
25/03/2024
23/11/2024
23/11/2025
23/11/2026
Fair value at
grant date
Share price
at grant date
Exercise
price
Expected
volatility
Expected
life
Expected
dividends
Risk-free
interest rate
$247,569
$94,635
$23,095
$32,236
$39,831
$0.01
$0.008
$0.009
$0.009
$0.009
$0.02
$0.02
$0.03
$0.035
$0.04
100%
100%
100%
100%
100%
24 months
18 months
12 months
36 months
48 months
Nil
Nil
Nil
Nil
Nil
3.25%
3.25%
3.25%
3.25%
3.25%
Number of
options
issued
125,000,000
49,444,444
10,000,000
10,000,000
10,000,000
NOTE 16: RELATED PARTY DISCLOSURES AND KEY MANAGEMENT PERSONNEL COMPENSATION
Related Parties
a.
The Company’s main related parties are as follows:
i.
Key management personnel:
Any person(s) having authority and responsibility for planning, directing and controlling the activities of the Company, directly or
indirectly, including any director (whether executive or otherwise), are considered key management personnel.
The directors in office during the year were as follows:
Aharon Zaetz (appointed 16 March 2023)
David Evans (appointed 16 March 2023)
Pay Chuan “Paul” Lim (resigned 21 April 2023)
Steven John Larkins (resigned 14 March 2023)
Syed Hizam Alsagoff
Tim Cameron (resigned 16 March 2023)
i.
Other related parties
Mars Mines Limited
Key Management Personnel compensation
Salary & Fees
Post employment benefits
Termination benefits
Share based payments
2023
$
2022
$
As restated
497,707
428,580
11,908
50,909
60,687
-
-
621,211
428,580
For details of disclosures relating to key management personnel, refer to Key Management Personnel disclosures Directors and Remuneration
Report.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
66
NOTE 16: RELATED PARTY DISCLOSURES AND KEY MANAGEMENT PERSONNEL COMPENSATION
b.
Transactions with other related parties:
Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other
parties unless otherwise stated.
On 21 November 2022, the Company advised it had issued 95,000,000 ordinary shares to Mars Mines Limited (or their nominees) in
relation to the acquisition of an initial 20% interest in the Brazilian lithium projects. 125,000,000 unlisted options granted on 21
November 2022 to Mars Mines Limited for the acquisition of a 20% interest in lithium projects held by Mars Mines Limited, have an
exercise price of $0.012, expire in 12 months from the grant date and are subject to vesting conditions that the total options granted
shall be vested over 1 period of 12 months per period. At this point Mars Mines Limited and any associates were deemed to be related
parties.
On 13 February 2023, the Company announced the issue of 125,000,000 ordinary shares at an issue price of $0.008 in consideration
of 75% acquisition of the Salinas Lithium Project.
During the year payments were paid to Mars Mines Limited totalling $105,000 (2022: Nil) to ensure tenements were held in good
standing prior to Mars GMN Brazil Ltda being incorporated.
c.
Amounts payable from related parties:
Trade and other receivables:
Mars Mines Brazil Limited
Total trade and other payable related party amounts
d.
Amounts payable to related parties:
Trade and other payables:
Amounts payable to Directors and related entities, as follows:
Directors fees
Corporate advisory services and other consultancy services
Total trade and other payable related party amounts
NOTE 17: LOSS PER SHARE
Basic Loss per share
Basic Loss (cents per share)
Net loss used to calculate basic loss per share
a.
I
ii.
iii.
2023
$
2022
$
47
47
47
-
-
-
2023
$
2022
$
20,450
28,000
9,450
28,000
11,000
20,450
-
28,000
2023
$
2023
$
(0.62)
(1.70)
(10,209,547)
(18,072,128)
No.
No.
Weighted average number of ordinary shares outstanding during the year used in calculating basic
loss per share
1,646,613,731
1,064,076,940
b.
Diluted loss per share
The Company’s potential ordinary shares, being its options granted, are not considered dilutive as
the conversion of these options would result in a decrease in the net loss per share.
Not applicable
Not applicable
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
67
NOTE 18: FINANCIAL RISK MANAGEMENT
The Company’s financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts
receivable and payable, loans to and from related parties, bills and leases. The following table details the expected maturities for the Company’s
non-derivative financial assets. These have been drawn up based on undiscounted contractual maturities of the financial assets including interest
that will be earned on those assets except where the Company anticipates that the cash flow will occur in a different period.
Financial Risk Management Policies
The Board has overall responsibility for the establishment and oversight of the risk management framework. The Board reviews and agrees policies
for managing each of these risks as summarised below. The Audit and Risk Committee (ARC) has been delegated responsibility by the Board of
Directors for, among other issues, monitoring and managing financial risk exposures of the Company. The ARC monitors the Company’s financial
risk management policies and exposures and approves financial transactions within the scope of its authority. It also reviews the effectiveness of
internal controls relating to commodity price risk, counterparty credit risk, currency risk, financing risk and interest rate risk.
The ARC’s overall risk management strategy seeks to assist the Company in meeting its financial targets, while minimising potential adverse
effects on financial performance. Its functions include the review of the use of hedging derivative instruments, credit risk policies and future cash
flow requirements.
Specific Financial Risk Exposures and Management
The main risks the Company is exposed to through its financial instruments are credit risk, liquidity risk and market risk consisting of interest rate
risk. This note presents the information about the Company’s exposure to each of the above risks, their objectives, policies and processes for
measuring and managing risk, and the management of capital.
a.
Credit risk
Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that
could lead to a financial loss to the Company.
Credit risk is managed through the maintenance of procedures (such procedures include the utilisation of systems for the approval,
granting and renewal of credit limits, regular monitoring of exposures against such limits and monitoring of the financial stability of
significant customers and counterparties), ensuring to the extent possible, that customers and counterparties to transactions are of sound
credit worthiness. Such monitoring is used in assessing receivables for impairment. Depending on the division within the Company, credit
terms are generally 14 to 30 days from the invoice date.
Risk is also minimised through investing surplus funds in financial institutions that maintain a high credit rating, or in entities that the
FRMC has otherwise cleared as being financially sound. Where the Company is unable to ascertain a satisfactory credit risk profile in
relation to a customer or counterparty, the risk may be further managed through title retention clauses over goods or obtaining security
by way of personal or commercial guarantees over assets of sufficient value which can be claimed against in the event of any default.
Credit risk exposures
The maximum exposure to credit risk by class of recognised financial assets at the end of the reporting period excluding the value of any
collateral or other security held, is equivalent to the carrying value and classification of those financial assets (net of any provisions) as
presented in the statement of financial position.
The Company has no significant concentrations of credit risk with any single counterparty or company of counterparties. Details with
respect to credit risk of trade and other receivables are provided in Note 7.
Trade and other receivables that are neither past due nor impaired are considered to be of high credit quality.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
68
NOTE 18: FINANCIAL RISK MANAGEMENT
b.
Liquidity risk
Liquidity risk arises from the possibility that the Company might encounter difficulty in settling its debts or otherwise meeting its obligations
related to financial liabilities. The Company manages this risk through the following mechanisms:
preparing forward-looking cash flow analysis in relation to its operational, investing and financing activities;
using derivatives that are only traded in highly liquid markets;
-
-
-
-
-
monitoring undrawn credit facilities;
obtaining funding from a variety of sources;
maintaining a reputable credit profile;
managing credit risk related to financial assets;
only investing surplus cash with major financial institutions; and
comparing the maturity profile of financial liabilities with the realisation profile of financial assets.
Cash flows realised from financial assets reflect management’s expectation as to the timing of realisation. Actual timing may therefore
differ from that disclosed. The timing of cash flows presented in the table to settle financial liabilities reflects the earliest contractual
settlement dates and does not reflect management’s expectations that banking facilities will be rolled forward.
c.
Market risk
Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the
Company’s income or value of the holdings of financial instruments. The Company is exposed to movements in market interest rates on
short term deposit. The policy is to monitor the interest rate yield curve out to 120 days to ensure a balance is maintained between the
liquidity of cash assets and the interest rate return. The Company does not have short or long term debt, and therefore this risk is minimal.
The Company limits its exposure to credit risk by only investing in liquid securities and only with counterparties that have acceptable credit
ratings.
d.
Interest rate risk
Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting period whereby a future
change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments. The Company is also exposed to
earnings volatility on floating rate instruments. The Company is exposed to interest rate risk as the Company deposits the bulk of its cash
reserves in Term Deposits. The risk is managed by the Company by maintaining an appropriate mix between short term and medium-term
deposits. The Company’s exposures to interest rate on financial assets and financial liabilities are detailed in the liquidity risk management
section of this note.
Interest rate sensitivity
At 30 June 2023, the effect on loss and equity as a result of changes in the interest rate, with all other variable remaining constant would
be as follows:
Increase in interest rate by 1%
Decrease in interest rate by 1%
Interest rate risk is not material to the Company.
2023
$
13,026
2022
$
6,605
(13,026)
(6,605)
The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these
financial statements, are as follows:
Note
Floating
Interest
Rate
Non-interest
bearing
2023
Fixed
Interest
Rate
Total
2022
Floating
Interest
Rate
Non-interest
bearing
2022
Fixed
Interest
Rate
Total
2021
Financial Assets
Cash and cash equivalents
Trade and other receivables
6
7
1,302,567
-
- 1,302,567
660,525
-
-
304,290
-
304,290
-
113,472
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
-
-
660,525
113,472
69
NOTE 18: FINANCIAL RISK MANAGEMENT
Other financial assets
12
-
-
-
-
-
-
Total financial assets
1,302,567
304,290
- 1,606,857
660,525
113,472
Financial liabilities at amortised cost:
Financial Liabilities
- Trade and other payables
- Other financial liabilities
13
14
Total financial liabilities
-
-
-
263,893
-
263,893
-
-
-
263,893
-
325,426
-
-
-
325,426
-
325,426
Net Financial Assets
1,302,567
40,397
- 1,342,964
660,525
(211,954)
-
-
-
-
-
-
-
779,997
325,426
-
325,426
448,571
NOTE 19: AUDITOR'S REMUNERATION
Remuneration of the auditor of the Company for:
Auditing and reviewing the financial statements
NOTE 20: PARENT ENTITY INFORMATION
2023
$
44,300
44,300
2022
$
39,020
39,020
The following information relates to the parent entity, Gold Mountain Limited. The information presented has been prepared using accounting policies
that are consistent with those presented in Note 1.
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
FINANCIAL PERFORMANCE
Profit (loss) for the year
Other comprehensive income/(loss) for the year
Total comprehensive profit/(loss)
2023
$
2022
$
1,615,294
773,997
9,751,518
15,249,890
11,366,812
16,023,887
263,272
325,426
-
-
263,272
325,426
11,103,540
15,698,461
51,590,354
47,104,019
1,177,556
38,000
(41,664,370)
(31,443,558)
11,103,540
15,698,461
(10,220,812)
(18,072,128)
-
-
(10,220,812)
(18,072,128)
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
70
NOTE 20: PARENT ENTITY INFORMATION
Remuneration Commitments
There are no remuneration commitments apart from ongoing director and management fees incurred on a monthly basis.
Guarantees
Gold Mountain Limited did not commit to nor make guarantees of any form as at 30 June 2023.
Contingent liabilities
There are no contingent liabilities as at 30 June 2023.
Exploration licence expenditure requirements
The Company holds eight (8) exploration licences covering a total area of 413 sub-blocks in the Enga province, Papua New Guinea (collectively
the Wabag Project) and is required to incur expenditures in total of $777,500 (PGK 2.13 million) with minimum spent of $234,000 (PGK 640,800)
over the period Year 2022-2023.
Five (5) of the Company’s exploration licenses are pending renewal.
It is likely that the granting of the renewal application or any change in the licence areas at renewal or expiry will change the expenditure commitment
obligations from time to time.
The Company currently holds 35 licences in Brazil. There is no formal expenditure requirement per tenement however a budgeted expenditure is
provided as part of the application process. It is anticipated that expenditure of $3,500,000 (BRL 11,900,000) will be incurred over the next 3 years
NOTE 21: DIVIDENDS
The Directors of the Company have not declared any dividends for the year ended 30 June 2023.
NOTE 22: EVENTS SUBSEQUENT TO REPORTING DATE
On the 21 July 2023, the Company announced a successful placement of ordinary shares had raised $2.25m before costs.
There has not been any other matter or circumstance that has arisen after balance date that has significantly affected, or may significantly affect, the
operations of the Company, the results of those operations, or the state of affairs of the Company in future financial periods.
NOTE 23: CONTROLLED ENTITIES
Controlled Entities Consolidated
Country of Incorporation
Percentage Owned (%)
Subsidiaries of Gold Mountain Limited:
Viva No. 20 Limited
GMN 6768 (PNG) Limited
Viva Gold (PNG) Limited
Abundance Valley (PNG) Limited
Mars GMN Brazil Ltda
Papua New Guinea
Papua New Guinea
Papua New Guinea
Papua New Guinea
Brazil
70%
100%
100%
100%
75%
Unless otherwise stated, the subsidiary listed above has share capital consisting solely of ordinary shares, which are held directly by the group,
and the proportion of ownership interests held equals to the voting rights held by the group. The country of incorporation or registration is also
their principal place of business.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
71
NOTE 24: CASH FLOW INFORMATION
Reconciliation of Net Cash (used in) provided by operating activities with Loss after Income
Tax
Loss
Non-cash flows in profit:
Options expense
Impairments expense
Unrealised Foreign Exchange Loss
Depreciation expense
Non-Cash movement on Non-Controlling Interests
Changes in assets and liabilities
(Increase)/decrease in trade and other receivables
Increase/(decrease) in trade payables and other payables
2023
$
2022
$
(10,209,547)
(18,072,128)
95,000
(117,928)
8,988,069
16,877,900
-
57,989
3,889
-
140,195
-
(300)
20,362
(20,099)
(1,056,267)
Net Cash (used in) provided by operating activities
(1,084,999)
(1,391,059)
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
72
DIRECTORS’ DECLARATION
In the opinion of the Directors of Gold Mountain Limited (the Company):
1.
The financial statements and notes thereto, as set out on pages 43 to 72 are in accordance with the Corporations Act 2001 including:
a.
giving a true and fair view of the Company’s financial position as at 30 June 2023 and of its performance for the year
then ended; and
b.
complying with Accounting Standards and Corporations Regulations 2001; and
2.
3.
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
The financial statements and notes thereto are in accordance with International Financial Reporting Standards issued by the
International Accounting Standards Board.
This declaration has been made after receiving the declarations required to be made to the Directors in accordance with Section 295A of the
Corporations Act 2001 for the financial year ended 30 June 2023.
This declaration is signed in accordance with a resolution of the Board of Directors.
David Evans
Executive Director
Dated this 19th day of September 2023
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
73
ADDITIONAL SHAREHOLDER INFORMATION (as at 14
September 2023)
A.
Corporate Governance
A statement disclosing the extent to which the Company has followed the best practice recommendations set by the ASX Corporate
Governance Council during the period is contained within the Directors’ Report.
B.
Shareholding
1. Substantial holdings
Shareholders
Mars Mines Limited
Citicorp Nominees Pty Limited
Ms Chunyan Niu
1
2
3
Substantial Holding
% of Issued
Capital
182,102,741
125,541,193
120,412,664
8.025
5.533
5.307
2. Number of holders in each class of equity securities and the voting rights attached (as at 14 September 2023)
Ordinary Shares
In accordance with the Company’s Constitution, on a show of hands every number present in person or by proxy or attorney or duly
authorised representative has one vote. On a poll every member present in person or by proxy or attorney or duly authorised
representative has one vote for every fully paid ordinary share held.
Options
There were nine (9) classes of options with 310 holders of listed options (GMNO), 193 holders of listed options (GMNOB) and 10
holders of unquoted options at 14 September 2023.
Option Code
Exercise Price
Holders
Units
GMNAT ESOP options Expiring 31 December 2025
GMNAU Unlisted options Expiring 26 October 2026
GMNAU Unlisted options Expiring 21 December 2026
GMNOB Listed options Expiring 25 March 2024
GMNAV Unlisted options Expiring 21 November 2023
GMNAW Unlisted options Expiring 23 November 2024
GMNAX Unlisted options Expiring 23 November 2025
GMNAY Unlisted options Expiring 23 November 2026
GMNO Listed options expiring 07 March 2026
$0.1475
$0.120
$0.120
$0.020
$0.012
$0.030
$0.035
$0.040
$0.010
Total on Register
+ Original exercise price of $0.1475 reduced by $0.0015 after Rights Issue
3
1
1
193
2
1
1
1
310
513
20,000,000
10,000,000
20,000,000
115,864,430
125,000,000
10,000,000
10,000,000
10,000,000
611,661,063
932,525,493
3. Distribution schedule of the number of holders in each class of equity security as at close of business
on 14 September 2023.
Ordinary Shares
Spread of Holdings
Holders
Units
% of Issued Capital
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001+
Total on Register
51
24
118
617
1,038
1,848
4,693
86482
1,093,271
33,063,828
2,234,830,313
2,269,078,587
< 0.01
<0.01
0.05
1.46
98.49
100%
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
78
Listed Options (GMNO)
Spread of Holdings
Holders
Units
% of Issued GMNOA
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001+
Total on Register
Listed Options (GMNOB)
5
17
15
75
198
310
1,584
52,210
117,180
3,897,788
607,592,301
611,661,063
0.000
0.010
0.020
0.640
99.330
100%
Spread of Holdings
Holders
Units
% of Issued GMNOB
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001+
Total on Register
8
40
17
67
61
193
5,198
109,188
148,525
2,643,422
112,958,097
115,864,430
0.000
0.090
0.130
2.280
97.490
100%
Marketable Parcel
There are 2,893 non-marketable parcels at 14 September 2023, representing 2,269,078,587 shares.
4.
Twenty largest holders of each class of quoted equity security
The names of the twenty largest holders of each class of quoted security, the number of equity security each holds
and the percentage of capital each holds (as at 14 September 2023) is as follows:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Ordinary Shares Top 20 holders and percentage held
Shareholder
MARS MINES LIMITED
CITICORP NOMINEES PTY LIMITED
MS CHUNYAN NIU
MR CHIPS SUPER PTY LTD
PAY CHUAN LIM
BNP PARIBAS NOMS PTY LTD UOBKH A/C R'MIERS
DIMENSIONAL HOLDINGS PTY LTD
RAM SYSTEMS PTY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
THE SUMMIT HOTEL BONDI BEACH PTY LTD
HELEN MIANG KIENG TAN
MR BIN LIU
BNP PARIBAS NOMINEES PTY LTD
MR LIANG JIANG
MR MATTHEW JON LIDDY
TINKY INVESTMENTS PTY LTD
MR SUWEI CHEN
BNP PARIBAS NOMS PTY LTD
MR GAK SAN SEAH
10 BOLIVIANOS PTY LTD
TOP 20 TOTAL
Other shareholders
TOTAL ISSUED CAPITAL
Holding
182,102,741
125,541,193
120,412,664
88,397,272
59,220,000
47,688,666
45,888,578
40,000,000
33,086,368
28,130,715
25,929,086
22,897,125
22,630,623
21,119,881
19,183,332
19,098,246
18,896,363
17,593,469
17,450,770
17,161,798
% of Issued
Capital
8.025%
5.533%
5.307%
3.896%
2.610%
2.102%
2.022%
1.763%
1.458%
1.240%
1.143%
1.009%
0.997%
0.931%
0.845%
0.842%
0.833%
0.775%
0.769%
0.756%
972,428,890
42.856%
1,296,649,697
57.144%
2,269,078,587
100.00%
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
79
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Listed Options (GMNO) Top 20 holders and percentage held
Optionholder
MS CHUNYAN NIU
MRS BELINDA POZNIK
DIMENSIONAL HOLDINGS PTY LTD
MR SHERMAN ALVO FRANCIS PICARDO
DIMENSIONAL HOLDINGS PTY LTD
MR VINCENZO BRIZZI & MRS RITA LUCIA BRIZZI
CAP HOLDINGS PTY LTD
SUPERHERO SECURITIES LIMITED
LEHAV PTY LTD
TRAYBURN PTY LTD
EMERGING EQUITIES PTY LTD
PAC PARTNERS SECURITIES PTY LTD
TORO OSO PTY LTD
MR EDWARD LEWIS KUSWANTO
RAM SYSTEMS PTY LIMITED
AUSTRALASIAN MICROBIAL SUPPLIES PTY LTD
MR NING XIE
MRS JIEYA ZHU
DEALACCESS PTY LTD
MR JOHN RICHARD TURNER
TOP 20 TOTAL
Other optionholders (GMNO)
TOTAL ISSUED LISTED OPTIONS
Holding
80,840,918
53,431,189
34,574,893
21,000,000
20,000,000
18,000,000
15,000,000
14,129,300
13,151,001
13,000,000
11,769,456
11,244,492
10,000,000
10,000,000
10,000,000
10,000,000
9,200,000
9,000,000
8,436,123
8,000,000
% of Issued
Listed
Options
13.217%
8.735%
5.653%
3.433%
3.270%
2.943%
2.452%
2.310%
2.150%
2.125%
1.924%
1.838%
1.635%
1.635%
1.635%
1.635%
1.504%
1.471%
1.379%
1.308%
380,777,372
62.253%
230,883,691
33.747%
611,661,063
100%
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
80
Holding
10,833,333
10,833,333
8,905,834
5,970,456
5,500,000
5,000,000
5,000,000
4,935,000
4,000,000
4,000,000
3,883,374
2,990,282
2,625,000
2,500,000
2,250,000
2,113,333
2,000,000
2,000,000
1,976,500
1,950,000
% of Issued
Listed
Options
9.350%
9.350%
7.686%
5.153%
4.747%
4.315%
4.315%
4.259%
3.452%
3.452%
3.352%
2.581%
2.266%
2.158%
1.942%
1.824%
1.726%
1.726%
1.706%
1.683%
89,266,445
26,597,985
115,864,430
77.044%
22.956%
100%
Listed Options (GMNOB) Top 20 holders and percentage held
Optionholder
PAC PARTNERS SECURITIES PTY LTD
EMERGING EQUITIES PTY LTD
MARS MINES LIMITED
MISS SIHONG ZENG
MR MING SHING LOO
ZERO NOMINEES PTY LTD
JL AND RA ROBERTS PTY LTD
PAY CHUAN LIM
SUPER MSJ PTY LTD
1
2
3
4
5
6
7
8
9
10
SHALULAH FAMILY INVESTMENTS PTY LTD
11 MR MARTIN MUSIC
12
13
CITICORP NOMINEES PTY LIMITED
3M HOLDINGS PTY LIMITED <3M INVESTMENT A/C>
14 MR PAUL ROBERT GOUGH
15 MR STEVEN FOGGIATO
16
PRARITZ INVESTMENTS PTY LTD
17 MR ROHAN SCOTT BARTLETT
18 MS MARIE ANTOINETTE AGGABAO ABRERA
19 MS WAN MAN WU
20 MR MICHAEL ERIN HARKHAM
TOP 20 TOTAL
Other optionholders (GMNOB)
TOTAL ISSUED LISTED OPTIONS
5.
Company Secretary
The name of the Company Secretary is Rhys Davies.
Address and telephone details of the Company’s registered administrative:
24/589 Stirling Highway
Cottesloe, WA 6011
Telephone: +61 497 846 996
info@goldmountainltd.com.au
www.goldmountainltd.com.au
Address and telephone details of the Company’s principal place of business:
24/589 Stirling Highway
Cottesloe, WA 6011
Telephone: +61 497 846 996
Address and telephone details of the office at which a registry of securities is kept:
Boardroom Pty Limited
Grosvenor Place, Level 12, 225 George Street, SYDNEY NSW 2000
GPO Box 3993, SYDNEY NSW 2001
Telephone: 1300 737 760 (In Australia)
+61 2 9290 9600 (International)
Facsimile: 1300 653 459
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
81
Stock exchange on which the Company’s securities are quoted:
The Company’s listed equity securities are quoted on the Australian Securities Exchange
Ordinary Shares – ASX Code: GMN
Listed Options (exercise price $0.01 expiring 7 March 2026) – ASX Code: GMNO
Quoted Options (exercise price $0.02 expiring 25 March 2024) – ASX Code: GMNOB
Restricted Securities
There are no restricted ordinary shares.
Options
Code
Number
Strike
Expiry
Restriction
GMNAT
GMNAU
GMNAU
GMNOB
GMNAV
GMNAW
GMNAX
GMNAY
GMNO
20,000,000
$0.1475
31 December 2025
10,000,000
$0.120
26 October 2026
20,000,000
$0.120
21 December 2026
115,864,430
$0.020
25 March 2024
125,000,000
$0.012
2 November 2023
10,000,000
$0.030
23 November 2024
10,000,000
$0.035
23 November 2025
10,000,000
$0.040
23 November 2026
611,661,063
$0.010
7 March 2026
ESOP Vesting over 3 periods of 12
months per period
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Review of Operations
A review of operations is contained in the Directors’ Report on page 12 of this Annual Report.
Schedule of Tenements
The Company’s Schedule of Tenements is on page 40 of this Annual Report.
GOLD MOUNTAIN LIMITED ANNUAL REPORT 2023
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