GREAT SOUTHERN MINING LIMITED
ABN 37 148 168 825
Annual Report
For the Year Ended 30 June 2023
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TABLE OF CONTENTS
Corporate Directory
Chairman’s Letter
Review of Operations
Directors’ Report
Auditor’s Independence Declaration
Corporate Governance Statement
Statement of Profit or Loss and Other Comprehensive Income
Statement of Financial Position
Statement of Cash Flows
Statement of Changes in Equity
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
ASX Additional Information
3
4
5
18
31
32
33
34
35
36
37
69
70
74
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CORPORATE DIRECTORY
Directors
John Terpu
(Executive Chairman)
Matthew Keane
(Managing Director)
Andrew Caruso
(Independent Non-executive Director)
Matthew Blake
(Independent Non-executive Director)
Company Secretary
Mark Petricevic
Registered Office and Principal Place of Business
Suite 4, 213 Balcatta Road
Balcatta WA 6021
Telephone:
Facsimile:
Email:
Website:
(08) 9240 4111
(08) 9240 4054
admin@gsml.com.au
www.gsml.com.au
Solicitors
Allion Partners Pty Ltd
863 Hay Street
Perth WA 6000
Auditors
HLB Mann Judd (WA Partnership)
Level 4, 130 Stirling Street
Perth WA 6000
Share Register
Computershare Investor Services
Level 17
221 St Georges Terrace
Perth WA 6000
Telephone (within Australia): 1300 850 505
Telephone (outside Australia): +61 3 9415 4000
Email: web.queries@computershare.com.au
Website: www.investorcentre.com.au
Securities Exchange Listing
Great Southern Mining Limited is an Australian Company limited by shares and listed on the Australian
Securities Exchange (ASX: GSN).
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CHAIRMAN’S LETTER
Dear Shareholders
It is my pleasure to present to you the 2023 Annual Report.
Great Southern Mining has continued its efforts in undertaking carefully considered exploration
programs efficiently and effectively during the year, including a successful Air Core program in 2023
discovering new mineralised gold trends at the Duketon Gold Project.
The East Laverton Nickel Project has been progressed with electromagnetic (EM) surveys undertaken
during the year, as well as a small diamond program executed in November 2022 which targeted the
conductors identified through EM surveys.
We also continued to advance the Edinburgh Park Project in Queensland with the Company is now in
the enviable position of having over 29 targets to follow up, providing substantial exploration upside
potential.
What sets GSN apart from the pack is the fact that the Company’s assets are all nearby to producing
mills. We share the underexplored Duketon Greenstone Belt with gold producer Regis Resources
Limited (ASX: RRL), which has been successful in the identification of +8Moz of gold resources. The
advancement of our Golden Boulder Prospect during the year has provided drill ready follow up targets.
The Company has planned aggressive exploration programs at Golden Boulder and Southern Star in
Financial Year 2024 to delineate gold ounces and generate significant news flow.
All exploration programs will be executed in line with funding requirements and appropriate capital
management.
The appointment of Matthew Keane as Managing Director in September 2022 has added commercial
strength and market insights to the Board and I would also like to thank my fellow directors Andrew
Caruso and Matthew Blake for their support and contributions during what has been a very active year
for the Company.
As fellow shareholder of the Company I take this opportunity to thank you for your support and look
forward to an exciting year ahead as we continue to advance the projects.
John Terpu
Executive Chairman
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REVIEW OF OPERATIONS
The Company completed several drill programs at multiple projects in Western Australia throughout
the year ending 30 June 2023 and is well placed to continue to advance its projects along the value
curve. A summary of the Company’s projects and main exploration activities during the period are
provided below:
Duketon Gold Project
Great Southern Mining holds Exploration Licences totalling 269km2 in the Duketon Greenstone Belt
located to the north of the town of Laverton in Western Australia. The Company shares the belt with
gold producer Regis Resources Limited (ASX:RRL), which has been successful in the identification of
+8Moz of gold mineral resources (refer to RRL website). It is interpreted that the three primary
mineralised corridors in the belt continue into GSN’s tenure, incorporating ~8km of the Erlistoun Trend,
~7km of the Garden Well Trend and ~11km of the Rosemont to Ben Hur Trend. The Company is exploring
primarily for gold with three advanced exploration areas including Southern Star, Amy Clarke and Golden
Boulder (Figure 1).
Figure 1 – Map of GSN’s Duketon Gold Project showing existing prospects and known gold occurrences, deposits and mines.
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Southern Star
GSN has defined gold mineralisation over a 700m strike extent at the Southern Star prospect, which is
located just 3km south and along trend from Regis Resources ~390koz Ben Hur gold mine. To date,
Southern Star has only been shallow drilled with most holes ending less than 140m below ground
surface. Better results from previous drill campaigns include1:
• 59m @ 2.1g/t Au from 53m, including 9m @ 4.5g/t Au and 16m @3.2g/t in 21SSRC0009
• 68m @ 1.9g/t Au from 61m, including 4m @ 15.3g/t Au and 5m @ 7.0g/t in 21SSRC036
• 17m @ 7.0g/t Au from 111m, including 2m @ 56.7g/t Au in 21SSRC0039
Southern Star remains open in nearly every direction and the Company’s understanding of the controls
on mineralisation are still in its infancy. Future drilling will test extensions to mineralisation at depth
and along strike to the north and south. GSN has also identified the potential for mineralisation to the
west on a parallel trend, which is interpreted to be on the same trend as RRL’s Ben Hur deposit to the
north (Figure 2).
Figure 2 - Map showing the area covered by the recent geochemical survey to the south along strike from Southern Star.
1 Refer to GSN ASX announcements dated 2 August 2021, 5 October 2021 and 11 October 2021
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Golden Boulder Area
The Golden Boulder area was identified by GSN as a high priority prospect with at least three stacked
mineralised gold trends identified from historic working and limited drilling. Over 50 shallow shafts
have been identified and historic production from the area is reported at 1,915 tonnes at 28.6 g/t Au
for 1,761 ounces of gold (WAMEX report A85278).
Before GSN, drilling in the area was sparse, shallow and untargeted, averaging just 40m below surface.
A 68-hole aircore (AC) drilling program (for 3,445m) was undertaken in 2023 following on from a (20212)
reverse circulation (RC) program. The 2023 drilling targeted two lines of mineralisation, identified as
Golden Boulder Main and Golden Boulder East. Mineralisation along the Main line now extends for
1.6km and remains untested to the south. Mineralisation along the East line follows a prominent
feature identified in a Sub-Audio Magnetic (SAM) geophysical survey. This feature can be traced for
4km on GSN’s tenure and remains undrilled for the majority of its extent.
Standout intersections from drilling at the Golden Boulder prospect include:
Historic
• 17m @ 4.3 g/t Au from 2m, including 6m @ 11.1 g/t Au in 88RC48.3
2021 RC drilling
• 5m @ 3.3 g/t Au from 49m, including 1m @ 12.3 g/t Au and 1m @ 1.2 g/t Au from 73m in
21GBRC0001, and
• 5m @ 1.2 g/t Au from 103m, including 1m @ 4.1 g/t Au in 21GBRC0007.
2023 aircore drilling
• 8m @ 3.9 g/t Au from 44m, including 4m @ 6.8 g/t Au 48m in 23GBAC008
• 12m @ 1.3 g/t Au from 44m, including 4m @ 2.4 g/t Au 48m in 23GBAC022, and
• 4m @ 2.4 g/t Au 44m in 23GBAC059
Further discussion of the results can be found in the ASX announcement dated 16 May 2023.
The next phases of drilling for the Golden Boulder area will test for mineralisation below previous gold
intercepts and along strike to both the north and south. Notably, historic aircore and rotary air blast
(RAB) drilling to the south of GSN’s 2021 and 2023 drilling programs are deemed to be ineffective due
to a ferruginous hardpan, which limited depth penetration. This opens the potential for a continuation
of mineralisation to the south, beyond historic workings and modern drilling.
2 Refer to GSN ASX announcement dated 23 September 2021
3 Refer to GSN ASX announcement dated 8 July 2021
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Figure 3 – Plan view image of the Golden Boulder region showing better drill intercepts from GSN’s 2021 and 2023 drilling
programs. The underlying SAM survey shows a strong conductive unit (magenta) interpreted to be the contact of a shale unit,
with gold anomalism clearly tracing along this unit.
Amy Clarke
The Company has defined gold anomalism over a 5km strike length in shallow AC drilling and surface
geochemical sampling at the Amy Clarke prospect. Of particular interest is a zone of higher-grade gold
anomalism in the south, which is coincident with a porphyritic rock unit. Regis Resources’ Erlistoun pit
(containing ~320Koz gold), which is located directly north of Amy Clarke on the same structural trend,
also shows an association of gold mineralisation with porphyritic rocks. Approximately one kilometre
east of identified surface gold anomalism at Amy Clarke lies the interpreted Garden Well trend (host
to Regis Resources’ +4Moz gold deposit to the north) (see blue dashed line in Figure 4 below). This
trend remains virtually untested on GSN’s tenure.
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Better results from GSN’s 2021 AC drilling program at Amy Clarke include4:
• 8m @ 6.73 g/t Au from 32m, including 4m @ 12.5 g/t Au in 21ACAC147
• 4m @ 2.13 g/t Au from surface in 21ACAC038
GSN is planning follow up RC and AC drilling at the Amy Clarke prospect in the coming year. The aim of
this drilling is to infill around areas with higher grade drill intercepts and stronger soil anomalism and
to extend AC drill lines into the recently defined surface anomalism.
Planned AC
drilling
Planned RC
drilling
Figure 4. Amy Clarke area showing previous aircore drill intercepts, a RC drill target area (dashed blue) and aircore drill target
areas (dashed green).
4 Refer to GSN ASX announcement dated 17 January 2022
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Mon Ami Gold Project
The Mon Ami Project comprises one Mining Lease (M38/1256 granted in 2012 for a term of 21 years)
and one Exploration Licence (E38/2829). The project within the Mt Margaret Mineral Field of the north-
eastern Goldfields of Western Australia (Laverton Greenstone Belt), approximately 14 km east of the
Granny Smith Mill and 12 km southeast of Laverton (see Figure 5). The ground has widespread gold
anomalism, artisanal-scale gold workings. Great Southern Mining has a defined Mineral Resource of
1.56 Mt @ 1.11 g/t Au for 55.5 Koz applying a 0. 5g/t Au cut-off grade (refer to ASX announcement 21
July 2021). Metallurgical testwork notes that a conventional processing flowsheet, under standard
processing conditions, is suitable for treating the Mon Ami mineralisation with recoveries averaging
95% in the oxide and transitional mineralisation.
Great Southern Mining did not conduct significant exploration activities on the Mon Ami Gold Project
in financial year ended June 2023.
East Laverton Nickel Project
The East Laverton Nickel Project comprises four granted exploration licences covering an area of
405km2, located approximately 35km from the town of Laverton (Figure 5). The Diorite Hill layered
magmatic intrusion (Diorite Hill) is a prominent geological feature in the region covering an area of
110km2 and comprising ~7,000m of cumulate mafic and ultramafic intrusive rocks. It is considered
prospective for intrusive style nickel-copper-PGE and lateritic nickel-cobalt mineralisation.
In addition, the Company’s tenure incorporates ~21km of interpreted ultramafic stratigraphy,
incorporating the Granite Well, Rotorua and Curara trends. These trends are considered prospective for
Kambalda style komatiitic nickel mineralisation and nickel-cobalt laterite mineralisation. East Laverton
is also prospective for orogenic gold, with intercepts such as 9m @ 2.4 g/t Au, including 5m @ 4.2 g/t
from 48m reported in historic drilling (hole EIC001, WAMEX A48007).
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Figure 5. East Laverton Nickel Project and Mon Ami Gold project. Laverton, Western Australia.
Exploration activities for the Financial Year ending June 2023 focussed on the Diorite Hill Intrusive
Complex and included a three-hole program designed to test two interpreted bedrock electromagnetic
(EM) conductors. (Figure 6) (refer to GSN ASX announcement dated 15 November 2022). The cost of
these holes was part funded by the Western Australian Government’s Exploration Incentive Scheme
(EIS).
While drilling did not intercept significant quantities of economic sulphides, the Diorite Hill Complex
has been proven to contain prospective mafic-ultramafic geology with no internal graphitic or
sedimentary shale units (being potential sources of false-positive conductors). The deepest of the three
holes, 22ELRCD0001 drilled to 579.6m, was followed up with downhole EM which indicated the
conductor was still present some 100m beyond the end of the hole.
Drillhole 22ELRC003, which intersected olivine cumulate with partly metamorphosed magnetite,
returned an intercept of 44m @ 0.28% nickel and 0.03% cobalt from 4m. This intercept was contained
within both oxide and fresh rock and demonstrates the fertile nature of the Diorite Hill layered
intrusion. Refer to additional commentary in the ASX announcement of 13 December 2022. All three
holes contained widely dispersed trace sulphides also highlighting the fertile nature of the complex.
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A small ground EM program was also conducted over the 4km of the Granite Well ultramafic complex
within GSN’s tenure. No significant conductors were identified.
Proposed work for Financial Year 2024 will include follow up RC drilling of the Diorite Hill Complex,
targeting interpreted basal flow zones prospective for nickel-copper-PGE sulphide mineralisation and
EM surveys of the ~10km Rotorua Complex and portions of the ~7km Curara Complex. The Company is
also assessing the gold potential of the project which may lead to drilling of selected targets.
7km
Curara Complex
Figure 6 - Magnetic image highlighting the Diorite Hill, Rotorua, Curara and Granite Well complexes Along with selected drill
hole intercepts and the location of drilled conductors L076 and L124. Brightstar Resources (BTR) Alpha Gold deposit is located
just south of GSN’s tenure. Refer to BTR (2021 Annual Report).
The Edinburgh Park Project
The Edinburgh Park Project is a province scale opportunity prospective for copper-gold porphyry
systems, structurally hosted orogenic gold and both high and low sulphidation epithermal gold-silver
systems. The project encompasses an area of ~1,750km2 surrounding Navarre Minerals’ (ASX:NML)
high sulphuration epithermal Mt Carlton gold-silver-copper mine. The project is located approximately
100km south-east of Townsville in Queensland (Figure 7).
During the year, The Company completed a detailed targeting exercise defining 29 priority targets with
GSN’s Edinburgh Park tenure. Refinement and ranking of the targets delineates the highest priority
targets at Molongle, Mt Dillion, Leichhardt Creek, Sledgehammer and Edinburgh Castle.
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The Company is currently assessing whether to continue sole funding exploration at Edinburgh Park or
bring in a partner that will allow the Company to focus exploration funding into its WA projects.
Red Rock
Figure 7. Map of the Edinburgh Park Project showing targets defined to date, including five high priority targets where
exploration programs are currently being planned. High priority targets are highlighted with red dots. Target areas shaded in
pink have been delineated in the past 18-months from a study by consultant, Outcrop Exploration Services in conjunction with
hyperspectral surveys.
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CORPORATE MATTERS
Result of Operations
The Company’s net assets increased 33% from the year ended 30 June 2023, predominately due to the
exploration programs undertaken at the Duketon Gold Project and at the East Laverton Nickel Project.
The Company held $1.58 million in cash and cash equivalents at 30 June 2023 (versus $0.92 million at
30 June 2022:).
Operating cash outflows for the period totalled $1.59 million (2022: outflow of $1.73 million) with cash
outflows from investing activities totalling $1.88 million (2022: outflow of $3.16 million).
We note the emphasis of matter paragraph regarding the going concern assumption included in the
Auditor’s Report, refer to Note 1(u) for further disclosure.
The Company has performed in a manner consistent with that of a junior exploration company. The
net loss for the period of $1.94 million (2022: loss of $1.83 million) is reflective of the corporate and
overhead costs incurred in ensuring regulatory compliance is maintained and legal fees incurred in
relation to corporate activities during the year. The 2023 net loss also includes significant non-cash
costs including share-based payments expenditure of $0.47 million (2022: $0.02 million) and a
unrealised loss relating to the fair value reduction in securities held in Revolver Resources Holdings
Limited of $0.36 million, which were received as part of the divestment of the Palmer River tenements
in July 2022. The Company recognised a non-cash gain of $0.77 million and received $0.25 million in
cash relating to this transaction, representing an excellent result for the Company.
Placements and Fundraising
In July 2022, the Company announced a pro-rata non-renounceable entitlement offer of 1 new share
for every nine held. The offer raised $0.85 million with a subsequent shortfall offer, completed in
October 2022, raising $0.82 million (both amounts before costs).
Following completion of the entitlement offer, the loan provided by an entity related to Executive
Chairman, John Terpu, was extinguished upon their full entitlement under the offer being taken up.
In February 2023, the Company completed a placement comprising a total of 71,750,002 new shares
at a price of $0.024 per share to raise $1.77 million (before costs).
In April 2023, the Company completed a share placement to sophisticated and professional investors
raising $0.59 million (before costs). The placement comprised the issue of 29,850,000 fully paid
ordinary shares at a price of $0.02 per share.
In addition to the above, 20,150,000 fully paid ordinary shares were issued to certain GSN Directors,
on the same terms and conditions as the placement, to raise $0.40 million. Shareholder approval was
obtained at the Company’s Extraordinary General Meeting held 12 June 2023. This meeting also sought
approval for the issue of 1,666,667 fully paid ordinary shares to be issued to certain Directors of the
Company who participated in the February 2023 placement.
All listed options on issue ceased trading on the 29 August 2022 and expired on 4 September 2022. No
Listed Options were on issue at the date of this report.
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In August 2022, 25,000,000 unlisted options, exercisable at $0.07 each on or before 21 August 2025,
were issued on the engagement of corporate advisers to the Company. No other unlisted options were
issued during the year.
A number of unlisted securities lapsed/expired during and since the year end including the following:
- On 12 August 2022, 250,000 Unlisted Options exercisable at $0.10 each on or before 29 March
2025, lapsed on resignation of an employee.
- On 4 September 2022, 5,000,000 Unlisted Options exercisable at $0.06 expired.
- On 21 September 2022, 500,000 Unlisted Options exercisable at $0.10 each on or before 5
October 2025 lapsed, on resignation of an employee.
- On 31 December 2022, 600,000 Unlisted Options exercisable at $0.05 expired.
- On 30 June 2023, 1,100,000 Unlisted Options exercisable at $0.05 expired.
- On 14 July 2023, 500,000 Unlisted Options exercisable at $0.10 each on or before 5 October
2026 lapsed, on resignation of an employee.
- On 14 July 2023, 500,000 Unlisted Options exercisable at $0.10 each on or before 5 October
2027 lapsed, on resignation of an employee.
- On 14 July 2023, 500,000 Unlisted Options exercisable at $0.10 each on or before 29 March
2026 lapsed, on resignation of an employee.
- On 14 July 2023, 500,000 Unlisted Options exercisable at $0.10 each on or before 29 March
2027 lapsed, on resignation of an employee.
Divestment of non-core assets
The Income Statement for the year ended 30 June 2023 includes a non cash gain of $0.77 million as a
result of the sale of the Company’s interest in the Palmer River Project in Queensland. In July 2022, the
Company announced that it had entered a transaction with Revolver Resources Holdings Limited (ASX:
RRR) for the sale of its shares held in the Company's subsidiary, Mt Bennett Exploration Pty Ltd, which
held 100% interest in the Palmer River Project. The Company received 2,516,694 RRR shares, subject
to a voluntary escrow period of 12 months (expiring in October 2023) and received cash consideration
of $0.25 million as part of the transaction. At the date of this report, the Company’s shares in RRR had
a fair value of $0.30m.
Safety and Sustainability
The Board of Directors of Great Southern Mining Limited are committed to executing the Company’s
strategy and operations in a safe and responsible manner. Pleasingly, drilling activities were productive
and safe with no reportable safety or environmental incidents during the year.
Future Prospects
As discussed elsewhere in the Review of Operations Report, the Company plans to undertake additional
exploration programs on its Western Australian and Queensland projects.
Further disclosure of information regarding likely developments in the operations of the Company in
future financial years and the expected results of those operations is likely to result in unreasonable
prejudice to the Company. Therefore, this information has not been presented in this report.
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Business Risks
As is common with most mineral exploration companies, Great Southern Mining is subject to a number
of risks that could potentially have an adverse impact on the performance of the Company. The
Company has in place policies and procedures to monitor and manage these risks which can broadly
be catergorised as:
• commodity price volatility risks;
• currency exchange rate risks;
• market risks;
• liquidity risks; and
• credit risks.
The Company, as an exploration company, faces inherent risks in its activities, including tenement and
title, exploration funding, project exploration risk, environmental and social sustainability risks, which
may materially impact operations. The Company has in place procedures for reporting, monitoring and
mitigating such risks, which are continually reviewed and updated.
The Board also believes that it and the management team have a thorough understanding of the
Company’s key risks in these areas, and as such is managing them appropriately.
Additionally, liquidity risk is a constant focus of the Directors’ who are cognisant of the Company’s
ability to raise additional capital to meet expenditure commitments and undertake further exploration
programs. Further disclosure of these financial risks can be found in Note 24 to the Financial
Statements.
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Competent Person and Forward-Looking Statements
Project
Competent
Person
Employer
Professional
Institute
Southern Star, Duketon Gold Project,
East Laverton Nickel Project, Edinburgh
Park Project
Simon
Buswell-Smith
Great Southern Mining
Ltd*
MAIG
* Mr Buswell-Smith was the Competent Person for the financial year ending June 2023, but has ceased
employment with the Company in July 2023. Subsequent to this date, Ms Rachel Backus has been
appointed as the Company’s Competent Person. Ms Backus is an employee and Senior Exploration
Geologists of Resourceful Exploration Services Pty Ltd (ABN 29 661 905 193) and has been engaged by
Great Southern Mining Limited. She has sufficient experience relevant to the assessment and of this
style of mineralisation to qualify as a Competent Person as defined by the “Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves – The JORC Code (2012)”. Ms
Backus consents to the inclusion in this report of the matters based on the information in the form and
context in which they appear.
Competent Person’s Statement
The information in this report that relates to Exploration Results and Mineral Resources is based on the
information of the Competent Persons listed in the table above. Each of the Competent Persons have
sufficient experience relevant to the style of mineralisation, the type of deposit under consideration and
to the activity they are undertaking to qualify as Competent Persons under the JORC Code (2012). For
new information each consent to the inclusion in the report of the matters based on his information in
the form and context in which they occur. Previously announced information is cross referenced to the
original announcements. In these cases, the Company is not aware of any new information or data that
materially affects the information presented and that the technical parameters underpinning the
estimates continue to apply and have not materially changed. The Company confirms that the form and
context in which the Competent Persons findings are presented have not been materially modified from
the original market announcements.
Forward Looking Statements
Forward-looking statements are only predictions and are not guaranteed. They are subject to known
and unknown risks, uncertainties and assumptions, some of which are outside the control of the
Company. Past performance is not necessarily a guide to future performance and no representation or
warranty is made as to the likelihood of achievement or reasonableness of any forward-looking
statements or other forecast. The occurrence of events in the future are subject to risks, uncertainties
and other factors that may cause the Company’s actual results, performance or achievements to differ
from those referred to in this announcement. Given these uncertainties, recipients are cautioned not to
place reliance on forward looking statements. Any forward-looking statements in this announcement
speak only at the date of issue of this announcement. Subject to any continuing obligations under
applicable law and the ASX Listing Rules, the Company, its directors, officers, employees and agents do
not give any assurance or guarantee that the occurrence of the events referred to in this announcement
will occur as contemplated.
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DIRECTORS’ REPORT
Your directors submit the annual financial report of Great Southern Mining Limited, (the Company), for the year
ended 30 June 2023.
Directors and Company Secretary
The names of directors and the secretary who held office during or since the end of the year and until the date
of this report are as follows.
John Terpu – Executive Chairman
(Appointed Non-executive Chairman 12 January 2011, appointed Executive Chairman 1 July 2013)
Mr Terpu has over twenty years of commercial and management expertise gained in a broad range of business
and investment activities. He has been involved in the mining and exploration industry through the acquisition
and investment of a number of strategic exploration and mining projects. Mr Terpu was a founder of Conquest
Mining which discovered the Mt Carlton mine and went on to become gold major Evolution Mining. As Chairman
of Emerchants Ltd, drove that company’s market capitalisation from A$1m to over A$150m. Mr Terpu has had
no other public company directorships in the previous three years.
Mr Matthew Keane B.Sc (Geology)(Hons), Masters of Business and Technology)(Hons) – Managing Director
(Appointed 19 September 2022)
Mr Keane is a geologist with more than twenty years of experience in mining, exploration and financial markets.
He has worked in various technical, operational and corporate roles including exploration and mine geology,
scheduling and design, resource and reserve estimation, production management, and mergers and acquisitions
for companies including BHP, Paladin Energy and Lynas Rare Earths Limited. He also spent eight years in capital
markets working as a metals and mining analyst for Argonaut Securities. Most recently, Mr Keane was the CEO of
S2 Resources Limited, focused on advancing a portfolio of Australian and Finnish exploration assets. No other
public company directorships were held in the previous three years.
Mr Andrew Caruso B.Eng (Mining)(Hons), Grad Dip. Applied Finance & Investment – Non-executive Director
(Appointed 26 April 2018)
Mr Caruso is a mining engineer with over thirty years’ experience in the Australian and international mining
industries with a focus on corporate leadership, business development, strategic planning and mine
management. His experience includes over twelve years as the Chief Executive for a number of iron ore and coal
operations and development companies. No other public company directorships were held in the previous three
years.
Mr Matthew Blake B.Com, Grad Dip. Applied Finance & Investment – Non-executive Director
(Appointed 21 July 2021)
Mr Blake has twenty-seven years experience in the financial services industry and with ASX companies. He joined
DJ Carmichael Pty Limited in 1999 as an Investment Adviser, later becoming an Executive Director of the company
until the sale of the business to Shaw and Partners Limited in 2019. Mr Blake has a Bachelor of Commerce degree
from the University of Western Australia and a Graduate Diploma in Applied Finance and Investment with the
Financial Services Institute of Australasia.
Mr Blake also serves as Executive Director of Javelin Minerals Limited (appointed 30 September 2020) and Non-
executive Director of Unith Limited (appointed 7 April 2021). Both companies are listed on the ASX. No other
public company directorships were held in the previous three years.
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Kathleen Bozanic B.Com, CA, AICD – Non-executive Director
(Appointed 26 April 2018, Resigned 19 September 2022)
Ms Bozanic was a Non-executive Director from the beginning of the period until her resignation in September
2022.
Directors’ Meetings
The number of meetings of the Company’s Board of Directors attended by each Director during the year ended
30 June 2023 was as follows:
Number of Board Meetings Held Whilst in
Office
12
3
12
12
9
J. Terpu
K. Bozanic
A. Caruso
M. Blake
M. Keane
Number of Board Meetings Attended
12
3
12
12
9
Interests in the shares and options of the Company and related bodies corporate
The following relevant interests in shares, options or performance rights of the Company or a related body
corporate were held by the Directors as at the date of this report.
Fully Paid Ordinary Shares (Ordinary Shares)
J. Terpu
M. Blake
M. Keane
A. Caruso
Balance Held
177,244,037
14,708,754
942,767
900,000
No ordinary shares were granted during the period as compensation.
Listed Options
The Listed Options on issue during the period expired on 4 September 2022. No Listed Options were held at the
date of this report and no Listed Options were granted during the period as compensation.
Unlisted Options
No Unlisted Options were held or issued to the Directors during the current or prior period.
Performance Rights
Performance and Loyalty Rights (hereafter referred to as Performance Rights) were issued to Matthew Keane,
appointed Managing Director, on 19 September 2022. The 17,000,000 Performance Rights are convertible into
shares on a one for one basis for no consideration upon exercise by the holder on or before the date, which is two
years and one month after issue.
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Each Performance Right entitles the holder to one Fully Paid Ordinary Share upon achievement of certain
performance milestones. If the performance milestones are not met, the Performance Rights will lapse and the
holder will have no entitlement to any shares. Performance Rights are not listed and carry no dividend or voting
rights. Each Fully Paid Ordinary Share issued on exercise of the Performance Rights will rank pari passu in all
respects with existing Fully Paid Ordinary Shares.
Details of the Tranches of Performance Rights and vesting conditions are contained in the table below:
Item
Loyalty Rights
Tranche 1
Loyalty Rights
Tranche 2
Number of Rights
Exercise price
Grant date
Start of performance period
Vesting date
Performance period (years)
Remaining performance
period (years)
Expiry date
Share price at grant date
Vesting conditions
Risk-free rate
Share price volatility
Market capitalisation target
(calculated on 20day VWAP)
Value per Right
Fair Value at Grant Date
Amount recognised during
the period
1,000,000
Nil
19-09-22
19-09-22
19-09-23
2.08
1.29
19-10-24
$0.0340
Refer Note 1
3.0%
77.4%
n/a
$0.0340
$34,000
$14,969
1.29
1.29
1.29
1.29
Performance
Rights
Tranche 1
5,000,000
Nil
19-09-22
19-09-22
n/a
2.08
Performance
Rights
Tranche 2
5,000,000
Nil
19-09-22
19-09-22
n/a
2.08
Performance
Rights
Tranche 3
5,000,000
Nil
19-09-22
19-09-22
n/a
2.08
19-10-24
$0.0340
19-10-24
$0.0340
Refer Note 3 Refer Note 4
3.0%
77.4%
19-10-24
$0.0340
Refer Note 5
3.0%
77.4%
3.0%
77.4%
$40m
$0.0159
$79,500
$80m
$120m
$0.0081
$40,500
$0.0048
$24,000
$30,929
$15,756
$9,337
1,000,000
Nil
19-09-22
19-09-22
19-09-24
2.08
19-10-24
$0.0340
Refer Note 2
3.0%
77.4%
n/a
$0.0340
$34,000
$13,227
Total amount recognised during the period was $84,219.
Notes:
1. Subject to 12-month duration of service condition.
2. Subject to 24-month duration of service condition.
3. Measured by achieving a market capitalisation of $40 million calculated on a 20-day volume weighted average
price.
4. Measured by achieving a market capitalisation of $80 million calculated on a 20-day volume weighted average
price.
5. Measured by achieving a market capitalisation of $120 million calculated on a 20-day volume weighted
average price.
No Ordinary Shares have been issued as a result of the exercise of any Performance or Loyalty Rights.
20|Page
Details of Unlisted Options issued by the Company to Key Management Personnel and employees during
or since the end of the financial year are:
Opening Balance
Issued during the period
Cancelled / Lapsed during the period
Exercised during the period
Closing Balance
30 June 2023
No.
30 June 2022
No.
16,050,000
-
(1,700,000)
-
14,350,000
10,900,000
19,250,000
(14,100,000)
-
16,050,000
No Ordinary Shares have been issued as a result of the exercise of Unlisted Options during the period.
Following the cessation of employment with the Company in July 2023, and additional 2,000,000 Unlisted Options
issued to an employee, lapsed.
Dividends
No dividends were declared since the start of the financial year and the Directors do not recommend the payment
of a dividend in respect of the financial year.
Principal Activities
The principal activity of the Company during the year was exploration for and evaluation of economic deposits
for gold and other minerals in Western Australia and Queensland. There were no significant changes in these
activities during the financial period.
Review of Operations
During the year, the Company carried out exploration on its tenements with the objective of identifying economic
deposits of gold and other metals. The full review of operations, included within this Annual Report, immediately
precedes this Directors’ Report.
Operating results for the year
The net result of operations for the year was a loss after income tax of $1,943,726 (2022: $1,825,544).
The Operating and Financial Review, included in the full review of operations, can be found immediately
preceding this Directors’ Report.
Significant changes in the state of affairs
Share capital increased by $4.85 million (before issue costs) as a result of the following placements:
-
-
-
In July 2022 the Company announced a pro-rata non-renounceable entitlement offer for 1 New Share
for every nine held. The offer raised $0.84 million with the Shortfall Offer, completed in October 2022,
raising $0.82 million (both amounts before costs).
In February 2023, the Company completed a placement comprising a total of 71,750,002 New Shares at
a price of $0.024 per share to raise $1.77 million (before costs).
In April 2023, the Company completed a share placement to sophisticated and professional investors
raising A$0.59 million (before costs). The Placement comprised the issue of 29,850,000 fully paid
Ordinary shares at a price of $0.02 per share (Placement Shares).
21|Page
Significant changes in the state of affairs (continued)
-
-
20,150,000 fully paid Ordinary shares were issued to certain GSN Directors, on the same terms and
conditions as the Placement, to raise $0.44 million (before costs). Shareholder approval was obtained
at the Company’s Extraordinary General Meeting held 12 June 2023. This meeting also sought approval
for the issue of 1,666,667 fully paid Ordinary shares to be issued to certain Directors of the Company
who participated in the February 2023 placement.
All Listed Options on issue ceased trading on the 29 August 2022 and expired on 4 September 2022. No
Listed Options are on issue at the date of this report.
Divestment of Palmer River assets
Consistent with sensible capital allocation for exploration programs, the Board considered the divestment of the
Palmer River Project in Queensland.
The results for the year ended 30 June 2023 include a non cash gain of $0.77 million as a result of the divestment.
In July 2022, the Company announced it had entered a transaction with Revolver Resources Holdings Limited
(ASX: RRR) for the sale of its shares held in the Company’s dormant subsidiary, Mt Bennett Exploration Pty Ltd,
which held 100% interest in the Palmer River Project.
The Company received 2,516,694 RRR shares, subject to a voluntary escrow period of 12 months (expiring in
October 2023) and received cash consideration of $0.25 million as part of the transaction. At the date of this
report, the shares in RRR have a fair value of $0.30m.
Apart from the above, there have been no significant changes in the state of affairs of the Company and Group
during or since the end of the financial period other than as stated in this report.
Significant events after the reporting date
Following the cessation of employment with the Company in July 2023, 2,000,000 Unlisted Options issued to an
employee lapsed.
Apart from the above, there has not been any other matter or circumstance that has arisen after the reporting
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.
Likely developments and expected results
The Company will continue to undertake drilling and exploration activities on its Western Australian and
Queensland assets.
Environmental legislation
The Company is committed to minimising the environmental impacts of its exploration and operations of each
project with an appropriate focus placed on compliance with environmental regulations. No environmental
breaches have occurred or have been notified by any Government agencies during the year ended 30 June 2023.
22|Page
Indemnification and 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 body corporate) 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, the Company 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. No liability has arisen under the indemnity as at the date of this report.
Voting and comments made at the Company’s 2022 Annual General Meeting
The Company received more than 97.22% of “yes” votes from eligible shareholders on its remuneration report
for 2022. No specific feedback was received at the AGM or throughout the year.
Proceedings on behalf of the Company
No persons have applied for leave pursuant to section 237 of the Corporation Act 2001 to bring, or intervene in,
proceedings on behalf of Great Southern Mining Limited.
Auditor Independence and Non-Audit Services
Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, to provide the Directors of the
Company with an Independence Declaration in relation to the audit of the financial report.
This Independence Declaration is set out on page 31 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.
Remuneration Report (audited)
This report outlines the remuneration arrangements in place for the key management personnel (“KMP”) of the
Company for the financial year ended 30 June 2023. KMP’s are defined as those persons having authority and
responsibility for planning, directing and controlling the major activities of the Company, directly or indirectly,
including any director (whether executive or otherwise). The report also includes remuneration arrangements of
the executives in the Company receiving the higher remuneration. The information provided in this remuneration
report has been audited as required by Section 308(3C) of the Corporations Act 2001.
Key Management Personnel
Directors
J. Terpu (Executive Chairman appointed 1 July 2013; Non-executive Chairman appointed 12 January 2011).
M. Keane (Managing Director appointed 19 September 2022).
K. Bozanic (Non-executive Director appointed 26 April 2018, Resigned 19 September 2022).
A. Caruso (Non-executive Director appointed 26 April 2018).
M. Blake (Non-executive Director appointed 21 July 2021).
23|Page
Remuneration report (continued)
Company Secretary and Chief Financial Officer
M. Petricevic (appointed 30 April 2018).
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 in line with the
Company’s corporate strategy and operationally critical matters.
Remuneration Committee
The Company has not established a Remuneration Committee. The Board of Directors of the Company is
responsible for determining and reviewing compensation arrangements for the Directors and the Executive team.
The Board of Directors assesses the appropriateness of the nature and amount of remuneration of Directors and
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.
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.
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 latest determination was at a General Meeting, prior to the
Company’s listing on ASX, held on 30 March 2011 when shareholders approved an aggregate remuneration of
$300,000 per year.
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 refers to the fees paid to Non-executive Directors
of comparable companies, when undertaking the annual review process. The remuneration provided was
determined to be commensurate with the level of time, effort and considerable contributions made by the Non-
executive Directors throughout the period.
Should the Company establish a Board committee, an additional fee would be paid for each committee on which
a Non-executive Director sits. The payment of additional fees for serving on a committee recognises the additional
time commitment required by Non-executive Directors who serve on one or more sub committees.
During the financial year ended 30 June 2023, no such committees were in place. All Non-executive Directors
were paid Director fees of $50,000 each plus statutory superannuation entitlements.
24|Page
Senior Manager and Executive Remuneration
Remuneration consists of fixed remuneration and variable remuneration (comprising short-term and long-term
incentive schemes).
Fixed Remuneration
Fixed remuneration is reviewed annually by the Board of Directors. The process consists of a review of relevant
comparative remuneration in the market and internally and, where appropriate, external advice on policies and
practices. The Board has access to external, independent advice where necessary.
Variable Remuneration
A long-term incentive (LTI) plan was adopted by shareholders of the Company at the general meeting of members
held 29 June 2018 and updated 3 July 2020. A summary of the terms of the LTI are available on the Company’s
website at https://gsml.com.au/about/governance/ .
As an exploration company, the Board does not consider the profit/(loss) attributable to shareholders as one of
the performance indicators when implementing STI payments. The Board considers exploration success, the
effective management of safety, environmental and operational matters and the acquisition and consolidation
of high quality landholdings, as more appropriate indicators of management performance.
No STI’s are payable to Executives where it is considered that the actual performance has fallen below the
minimum requirement.
No short term incentives (STIs) was paid to any KMP’s during the financial years ended 30 June 2022 and 30 June
2023.
Service Agreements
Remuneration and other terms of employment for the Executive Directors and other Key Management Personnel
are formalised in a Service Agreement. The major provisions of the agreements relating to remuneration are set
out below:
Employee
J. Terpu
M. Petricevic
M. Keane
Base salary ($) inclusive of
superannuation
Term of agreement
Notice period
$222,000
$194,250
$298,350
Until termination
Until termination
Until termination
6 months
Up to 6 months
6 months
25|Page
Remuneration report (continued)
The details of the remuneration of each member of Key Management Personnel is as follows:
Short-term employee benefits
Post-
employment
benefits
Other long
term benefits
Cash Salary
& Fees
Bonuses
$
$
Non-
Monetary
Benefits
$
Annual
Leave**
Superan-
nuation
Long-service
Leave*
$
$
$
Equity
Share
Options
$
Total
Performance
Related
$
%
Directors
J Terpu
Executive Chairman
K. Bozanic
Non-Executive Director
A. Caruso
Non-Executive Director
M. Blake
Non-Executive Director
M. Keane
Managing Director
Total
Other Key Management Personnel
S Gregory
Chief Executive Officer
M Petricevic
Company Secretary/CFO
Total to KMP
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
200,000
200,000
12,500
43,750
50,000
43,750
50,000
41,868
207,692
-
520,193
329,368
-
172,475
175,000
172,691
695,193
674,534
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,471
5,290
-
-
-
-
-
-
-
-
6,471
5,290
-
-
2,891
572
9,361
5,862
(4,615)
7,650
-
-
-
-
-
-
4,554
-
(62)
7,650
-
(12,613)
6,377
(23,179)
6,315
(28,142)
21,000
20,000
1,313
4,375
5,250
4,375
5,250
4,187
21,808
-
54,620
32,937
-
16,160
18,375
17,269
72,995
66,366
3,889
3,668
-
-
-
-
-
-
155
-
4,044
3,668
-
-
-
-
-
-
-
-
84,219
-
84,219
-
-
(371)
4,478
3,525
8,522
6,822
-
(48,790)
45,465
56,290
129,684
7,500
226,744
236,608
13,813
48,125
55,250
48,125
55,250
46,055
318,428
-
669,485
378,913
-
126,862
252,585
227,168
922,070
732,943
-
-
-
-
-
-
-
-
26%
-
26%
-
-
n/a
18%
25%
14%
1%
Ms Bozanic resigned 19 September 2022. Mr Gregory resigned in January 2022. The negative amount represents a reversal of the expense due to the lapsing of the securities
during the period.
** The amounts disclosed in this column represent the movements in the associated provisions. They may be negative where a KMP has taken more leave than accrued, or
had leave paid out, during the period.
26|Page
Remuneration report (continued)
Note the vesting of Unlisted Options and Performance Rights during the period relate to non-performance based
vesting conditions.
Unlisted Options
No Unlisted Options were issued to Key Management Personnel during the period.
In the prior period, the following Unlisted Options were issued to Key Management Personnel:
Issue
Date
Tranche
05/10/21
Vesting
conditions
Exercise period /
Expiry
Expiry Years
(from date of
issue)
Exercise
Price
CEO*
CFO
Fair value
per security
1
2
3
Employed 12
months post issue
Employed 24
months post issue
Employed 36
months post issue
24 months after
vesting or at
cessation of
employment
24 months after
vesting or at
cessation of
employment
24 months after
vesting or at
cessation of
employment
3
4
5
$0.10
3,000,000
1,000,000
$0.019
$0.10
3,000,000
1,000,000
$0.023
$0.10
3,000,000
1,000,000
$0.027
9,000,000
3,000,000
* The Unlisted Options lapsed on the individual’s resignation from the Company in January 2022.
Issue
Date
Tranche
29/03/22
Vesting
conditions
Exercise period /
Expiry
Expiry Years
(from date of
issue)
Exercise
Price
CFO
Fair value
per security
1
2
3
Employed 12
months post issue
Employed 24
months post issue
Employed 36
months post issue
24 months after
vesting or at
cessation of
employment
24 months after
vesting or at
cessation of
employment
24 months after
vesting or at
cessation of
employment
3
4
5
$0.10
500,000
$0.022
$0.10
500,000
$0.027
$0.10
500,000
$0.030
1,500,000
The Unlisted Options do not entitle the holder to participate in any share issue of the Company.
27|Page
Remuneration report (continued)
Performance Rights
Great Southern Mining agreed to issue Performance and Loyalty Rights (hereafter referred to as Performance
Rights) to Matthew Keane, who was appointed Managing Director on 19 September 2022. Performance Rights
are convertible into Shares on a one for one basis for no consideration upon exercise by the holder on or before
the date which is two years and one month after issue.
Each Performance Right will vest as an entitlement to one Fully Paid Ordinary Share upon achievement of certain
performance milestones. If the performance milestones are not met, the performance rights will lapse and the
eligible participant will have no entitlement to any shares. Performance Rights are not listed and carry no dividend
or voting rights. Each Fully Paid Ordinary Share issued on exercise of the Performance Rights will rank pari passu
in all respects with existing Fully Paid Ordinary Shares.
Item
Number of Rights
Exercise price
Grant date
Start of performance
period
Vesting date
Performance period
(years)
Remaining performance
period (years)
Expiry date
Share price at grant date
(cents per share)
Vesting conditions
Risk-free rate
Share price volatility
Market capitalisation
target (calculated on
20day VWAP)
Loyalty
Rights
Tranche 1
1,000,000
Nil
19-09-22
Loyalty
Rights
Tranche 2
1,000,000
Nil
19-09-22
19-09-22
19-09-23
19-09-22
19-09-24
2.08
1.29
2.08
1.29
Performance
Rights
Tranche 1
Performance
Rights
Tranche 2
Performance
Rights
Tranche 3
5,000,000
Nil
19-09-22
19-09-22
n/a
2.08
1.29
5,000,000
Nil
19-09-22
19-09-22
n/a
2.08
1.29
5,000,000
Nil
19-09-22
19-09-22
n/a
2.08
1.29
14-10-24
14-10-24
14-10-24
14-10-24
14-10-24
0.034
0.034
Refer Note 1 Refer Note 2
3.0%
77.4%
3.0%
77.4%
0.034
Refer Note 3
3.0%
77.4%
0.034
Refer Note 4
3.0%
77.4%
0.034
Refer Note 5
3.0%
77.4%
n/a
n/a
$40m
$80m
$120m
Value per Right
$0.0340
$0.0340
$0.0159
$0.0081
$0.0048
Notes:
1. Subject to 12-month duration of service condition.
2. Subject to 24-month duration of service condition.
3. Measured by achieving a market capitalisation of $40 million calculated on a 20-day volume weighted
average price.
4. Measured by achieving a market capitalisation of $80 million calculated on a 20-day volume weighted
average price.
5. Measured by achieving a market capitalisation of $120 million calculated on a 20-day volume weighted
average price.
28|Page
Remuneration report (continued)
Fully paid Ordinary Shares – directly and indirectly held
The table below shows a reconciliation of fully paid Ordinary Shares held by Directors and Key Management
Personnel from the beginning to the end of the period.
Opening Balance
1 July 2022
Bought/issued
Other changes
during the year
Closing Balance
30 June 2023
J. Terpu
A. Caruso
M. Blake
M. Keane
K. Bozanic
M. Petricevic
132,863,514
900,000
7,665,378
-
1,200,000
1,500,000
44,380,523
-
7,043,376
942,767
-
-
-
-
-
-
(1,200,000)*
(400,000)
177,244,037
900,000
14,708,754
942,767
-
1,100,000
* Change is shown as a negative on resignation as a non-executive Director in September 2022.
Unlisted Options - directly and indirectly held
Opening Balance
1 July 2022
Bought/issued
Other changes
during the year
Closing Balance
30 June 2023
J. Terpu
A. Caruso
M. Blake
M. Keane
M. Petricevic
-
-
-
-
5,200,000
-
-
-
-
-
-
-
-
-
(600,000)
-
-
-
-
4,600,000
Performance and Loyalty Rights - directly and indirectly held
Opening Balance
1 July 2022
Bought/issued
Other changes
during the year
Closing Balance
30 June 2023
J. Terpu
A. Caruso
M. Blake
M. Keane
M. Petricevic
-
-
-
-
-
-
-
-
17,000,000
-
-
-
-
-
-
-
-
-
17,000,000
-
No Listed Options, Unlisted Options or Performance and Loyalty Rights were granted to the Directors, officers or
KMP’s of the Company since the end of the financial year.
29|Page
Remuneration report (continued)
Transactions with Key Management Personnel
The following comprises amounts paid or payable and received or receivable applicable to entities in which
KMP have an interest.
Directors and related parties
Paid/payable to:
Rent and service charges paid to Ruby Lane Pty Ltd atf the Terpu Trust
Interest charges on loan provided by Valleyrose Pty Ltd
Amounts owing to related parties at balance date:
Loan provided by Valleyrose Pty Ltd in June 2022
Note
22
2023
$
2022
$
85,775
4,383
77,968
2,055
13
- 500,000
The loan provided by Valleyrose Pty Ltd in June 2022 attracts interest charged on commercial terms. The loan
was repaid through the Director taking up their entitlement in the Rights Issue completed in August 2022.
End of Remuneration Report
Signed in accordance with a resolution of the Directors.
John Terpu
Executive Chairman
Perth WA
18 September 2023
………………………END OF DIRECTORS REPORT……………………….
30|Page
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Great Southern Mining Limited for the year
ended 30 June 2023, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
18 September 2023
M R Ohm
Partner
CORPORATE GOVERNANCE STATEMENT
The Board is committed to achieving and demonstrating the highest standards of corporate governance. As such,
Great Southern Mining Limited (the “Company”) has adopted the fourth edition of the Corporate Governance
Principles and Recommendations which was released by the ASX Corporate Governance Council and became
effective for the financial years beginning on or after 1 January 2020.
The Company’s Corporate Governance Statement for the financial year ended 30 June 2023 was approved by the
Board on 18 September 2023.
The Corporate Governance Statement is available on the Company’s website at www.gsml.com.au .
32|Page
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
INTEREST AND OTHER INCOME
EXPENSES
Administration expenses
Consulting fees
Directors’ benefits
Employee benefits expense
Legal fees
Marketing fees
Finance costs
Rent expense
Depreciation expense
Exploration and evaluation expenditure not capitalised
Fair value movement in financial assets
Share-based payment expense
LOSS BEFORE INCOME TAX EXPENSE
Income tax expense
NET LOSS FOR THE YEAR
OTHER COMPREHENSIVE INCOME, NET OF INCOME TAX
Items that may be reclassified to profit or loss
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
BASIC AND DILUTED LOSS PER SHARE (CENTS PER SHARE)
Note
2
2023
$
774,052
2022
$
59,545
(317,562)
(75,371)
(598,223)
(318,456)
(50,223)
(151,684)
(10,701)
(77,977)
(65,565)
(220,479)
(364,919)
(466,618)
(2,717,778)
(1,943,726)
-
(1,943,726)
(342,460)
(78,344)
(364,613)
(591,371)
(72,840)
(87,855)
(11,508)
(147,527)
(69,999)
(101,540)
-
(17,032)
(1,885,089)
(1,825,544)
(1,825,544)
-
-
(1,943,726)
(0.31)
(1,825,544)
(0.36)
2
2
2
2
8
4
5
The accompanying notes form part of these financial statements.
33|Page
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
CURRENT ASSETS
Cash and cash equivalents
Other assets
Total Current Assets
NON-CURRENT ASSETS
Financial assets
Other receivables
Plant and equipment
Right of use asset
Exploration and evaluation expenditure
Total Non-Current Assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Borrowings
Lease liability
Employee benefits
Total Current Liabilities
NON-CURRENT LIABILITIES
Lease Liability
Employee benefits
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Note
2023
$
2022
$
6
7
8
9
10
12
11
13
14
12
15
12
15
16
17
1,583,488
33,300
1,616,788
276,839
35,667
37,229
59,775
11,229,940
11,639,450
13,256,238
348,444
-
60,540
117,018
526,002
-
16,658
16,658
542,660
12,713,578
917,830
34,831
952,661
-
35,667
100,712
111,088
9,805,909
10,053,376
11,006,037
673,449
555,000
56,676
127,631
1,412,756
58,073
9,566
67,639
1,480,395
9,525,642
39,834,325
1,085,689
(28,206,436)
12,713,578
35,169,281
2,209,186
(27,852,825)
9,525,642
The accompanying notes form part of these financial statements.
34|Page
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Interest received
Interest and payments on motor vehicle leases
Interest paid on related party loan
Net cash (used in) operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for plant and equipment
Payments for exploration and evaluation expenditure
Proceeds from divestment of assets
Payment to vendor
Net cash (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares (net of costs)
Proceeds from Director related entity
Proceeds from exercise of listed options
NET CASH PROVIDED BY FINANCING ACTIVITIES
Net increase/(decrease) in cash held
Cash at beginning of period
Cash at end of period
2023
$
2022
$
(1,538,794)
7,941
(56,947)
(6,576)
(1,594,376)
-
(2,096,628)
211,975
-
(1,884,653)
4,144,687
-
-
4,144,687
665,658
917,830
1,583,488
(1,708,657)
196
(22,899)
-
(1,731,360)
(2,190)
(3,108,425)
55,000
(100,000)
(3,155,615)
3,919,930
500,000
2,000
4,421,930
(465,045)
1,382,875
917,830
The accompanying notes form part of these financial statements.
35|Page
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
Notes
Issued Capital
$
Accumulated Losses
$
Unlisted Option
Reserve
$
Performance Rights
Reserve
$
Listed Option
Reserve
$
Company
Balance at 1 July 2021
Loss for the year
Total Comprehensive Loss
Transaction recorded directly in equity
Issue of Share Capital
Unlisted Options issued during the period
Performance Rights issued during the period
Listed Options issued during the period
Lapse of securities during the period
Capital raising costs
Balance at 30 June 2022
Balance at 1 July 2022
Loss for the year
Total Comprehensive Loss
Transaction recorded directly in equity
Issue of Share Capital
Unlisted Options issued during the period
Performance Rights issued during the period
Listed Options issued during the period
Expiry of Listed Options during the period
Lapse of securities during the period
Capital raising costs
Balance at 30 June 2023
31,291,441
-
-
4,134,000
-
-
-
-
(256,160)
3,877,840
35,169,281
35,169,281
-
-
4,842,396
-
-
-
-
-
(177,353)
4,665,043
39,834,324
(26,027,281)
(1,825,544)
(1,825,544)
-
-
-
-
-
-
-
(27,852,825)
(27,852,825)
(1,943,726)
(1,943,726)
-
-
-
-
1,590,115
-
-
1,590,115
(28,206,436)
538,143
-
-
-
115,541
-
-
(34,612)
-
80,929
619,072
619,072
-
-
-
406,411
-
-
(24,013)
-
382,398
1,001,470
15
18
19
17
15
15
18
19
17
16
15
The accompanying notes form part of these financial statements.
63,896
-
-
-
-
39,748
-
(103,644)
-
(63,896)
-
-
-
-
1,521,916
-
-
-
-
-
68,199
-
-
68,199
1,590,115
1,590,115
-
-
Total
$
7,388,115
(1,825,544)
(1,825,544)
4,134,000
115,541
39,748
68,199
(138,256)
(256,160)
3,963,072
9,525,643
9,525,643
(1,943,726)
(1,943,726)
-
-
84,219
-
-
-
84,219
84,219
-
-
-
-
(1,590,115)
-
-
- (1,590,115)
-
4,842,396
406,411
84,219
-
-
(24,013)
(177,353)
5,131,661
12,713,578
36|Page
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 1: STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES
(a) Reporting Entity
Your Directors present their report on the Company
for the financial year ended 30 June 2023. The
Company is a listed public company registered in
Australia. The principal activities are
the
exploration
for and evaluation of economic
deposits for gold and other minerals in north
Queensland and Western Australia.
The address of the Company’s registered office is
Suite 4, 213 Balcatta Rd, Balcatta WA 6021.
(b) Basis of preparation and statement of
compliance
The general purpose financial statements of the
Company have been prepared in accordance with
the requirements of the Corporations Act 2001,
Australian Accounting Standards and other
authoritative pronouncements of the Australian
Accounting Standards Board (AASB). Compliance
with Australian Accounting Standards results in full
compliance with International Financial Reporting
Standards (IFRS) as issued by the International
Accounting Standards Board (IASB). Great Southern
Mining Limited is a for-profit entity for the purpose
of preparing the financial statements.
The accounting policies detailed below have been
consistently applied to all of the years presented
unless otherwise stated.
financial
The
Australian dollars.
statements are presented
in
The financial statements for the year ended 30 June
2023 were approved and authorised for issue by the
Board of Directors on 18 September 2023.
(c) Critical accounting estimates and judgements
The application of accounting policies requires the
use of judgements, estimates and assumptions
about carrying values of assets and liabilities that
are not readily apparent from other sources. The
estimates and associated assumptions are based on
historical experience and other factors that are
considered to be relevant. Actual results may differ
from these estimates.
The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions are
recognised in the period in which the estimate is
revised if it affects only that period, or in the period
of the revision and future periods if the revision
affects both current and future periods.
Exploration and evaluation expenditure carried
forward
In accordance with accounting policy Note 1 (g),
management determines when an area of interest
should be abandoned. When a decision is made
that an area of interest is not commercially viable,
all costs that have been capitalised in respect of
that area of interest are written off. In determining
this, assumptions including the maintenance of
title, ongoing expenditure and prospectivity are
made. During the year, no amounts were written
off. Refer to Note 11 for disclosure of carrying
values.
Recovery of deferred tax assets
Deferred tax assets are currently not recognised in
the financial statements. The extent to which
deferred tax assets can be recognised is based on
an assessment of the probability of the Company’s
future taxable income against which the deferred
tax assets can be utilised. Given the current stage of
the Company’s exploration and development cycle,
the likelihood and timeline of future taxable income
cannot be reliably estimated. Refer to Note 4.
37|Page
NOTE 1: STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
Share-based payments
The Company measures the cost of equity-settled
transactions with employees by reference to the
fair value of the equity instruments at the date at
which they are granted. For security instruments
issued to parties other than employees and those
providing similar services, consideration of the fair
value of services received (if available) or fair value
of the equity instruments granted as consideration
is used. The fair value is determined by using the
Black-Scholes or Monte-Carlo model taking into
account the terms and conditions upon which the
instruments were granted. The accounting
estimates and assumptions relating to equity-
settled share-based payments would have no
impact on the carrying amounts of assets and
liabilities within the next annual reporting period
but may impact profit or loss and equity.
During the period a number of equity instruments
were issued to key management personnel and
advisers of the Company. The valuation of these
instruments involved a number of estimates and
assumptions.
Inputs to pricing models may require an estimation
of reasonable expectations about achievement of
future vesting conditions. Vesting conditions must
be satisfied for the counterparty to become entitled
to receive cash, other assets or equity instruments
of the entity, under a share-based payment
arrangement.
Vesting conditions
include service conditions,
which require the other party to complete a
specified period of service, and performance
conditions, which require specified performance
targets to be met (such as a specified increase in the
entity's profit over a specified period of time) or
completion of performance hurdles. The Company
recognises an amount for the goods or services
received during the vesting period based on the
best available estimate of the number of equity
instruments expected to vest and shall revise that
estimate, if necessary, if subsequent information
Indicates that the number of equity instruments
expected to vest differs from previous estimates.
On vesting date, the entity shall revise the estimate
to equal the number of equity instruments that
ultimately vested. The achievement of future
vesting conditions is reassessed each reporting
period.
(d) 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 Great Southern Mining Limited. The
Company’s activities included the exploration and
evaluation of projects in North Queensland and
Western Australia.
In addition, corporate assets which are not directly
attributable to the business activities of the
operating segment are not allocated to a segment.
This primarily applies to the Company’s registered
office and administrative duties. There have been
no changes from prior periods in the measurement
methods used to determine reported segment
profit or loss.
(e) Revenue recognition
is measured at
Revenue
fair value of the
consideration received or receivable. Revenue is
recognised to the extent that it is probable that the
economic benefits will flow to the Company and the
revenue can be reliably measured. The following
specific recognition criteria must also be met before
revenue is recognised:
Interest income
revenue
Interest
time
proportionate basis that takes into account the
effective yield on the financial asset.
recognised on a
is
38|Page
NOTE 1: STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
(f)
Income tax
The income tax expense or benefit for the period is
the tax payable on the current period’s taxable
income based on the applicable income tax rate for
each jurisdiction adjusted by changes in deferred
tax assets and liabilities attributable to temporary
differences and to unused tax losses.
The current income tax charge is calculated on the
basis of the tax laws enacted or substantively
enacted at the end of the reporting period in the
countries where the Company operates and
generates taxable income.
Management periodically evaluates positions taken
in tax returns with respect to situations in which
applicable
to
regulation
interpretation. It establishes provisions where
appropriate on the basis of amounts expected to be
paid to the tax authorities.
subject
tax
is
Current tax assets and liabilities for the current and
prior periods are measured at the amount expected
to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to
compute the amount are those that are enacted or
substantively enacted by the reporting date.
Deferred income tax is provided on all temporary
differences at the reporting date between the tax
bases of assets and liabilities and their carrying
amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all
taxable temporary differences except:
• when the deferred income tax liability arises
from the initial recognition of goodwill or of an
asset or liability in a transaction that is not a
business combination and that, at the time of
the transaction, affects neither accounting
profit nor taxable profit or loss; or
• when the taxable temporary difference
is
associated with investments in subsidiaries,
associates or interests in joint ventures, and the
timing of the reversal of the temporary
difference can be controlled and it is probable
that the temporary difference will not reverse in
the foreseeable future.
Deferred income tax assets are recognised for all
deductible temporary differences, carry-forward of
unused tax assets and unused tax losses, to the
extent that it is probable that taxable profit will be
available against which the deductible temporary
differences and the carry-forward of unused tax
credits and unused tax losses can be utilised,
except:
• when the deferred income tax asset relating to
the deductible temporary difference arises from
the initial recognition of an asset or liability in a
transaction that is not a business combination
and, at the time of the transaction, affects
neither the accounting profit nor taxable profit
or loss; or
• when the deductible temporary difference is
associated with investments in associates or
interests in joint ventures, in which case a
deferred tax asset is only recognised to the
extent that it is probable that the temporary
difference will reverse in the foreseeable future
and taxable profit will be available against which
the temporary difference can be utilised.
The carrying amount of deferred income tax assets
is reviewed at each reporting date and reduced to
the extent that it is no longer probable that
sufficient taxable income will be available to allow
all or part of the deferred income tax asset to be
utilised.
income tax assets are
Unrecognised deferred
reassessed at each reporting date and are
recognised to the extent that it has become
probable that future taxable profit will allow the
deferred tax asset to be recovered.
39|Page
NOTE 1: STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
Deferred income tax assets and liabilities are
measured at the tax rates that are expected to
apply to the year when the asset is realised, or the
liability is settled, based on tax rates (and tax laws)
that have been enacted or substantively enacted at
the reporting date. Income taxes relating to items
recognised directly in equity are recognised in
equity and not in profit or loss. Deferred tax assets
and deferred tax liabilities are offset only if a legally
enforceable right exists to set off current tax assets
against current tax liabilities and the deferred tax
assets and liabilities relate to the same taxable
entity and the same taxation authority.
Other taxes
Revenues, expenses and assets are recognised net
of the amount of GST except:
• when the GST incurred on a purchase of goods
is not recoverable from the
and services
taxation authority, in which case the GST is
recognised as part of the cost of acquisition of
the asset or as part of the expense item as
applicable; and
• receivables and payables, which are stated with
the amount of GST included.
The net amount of GST recoverable from, or
payable to, the taxation authority is included as part
of receivables or payables in the statement of
financial position.
Cash flows are included in the statement of cash
flows on a gross basis and the GST component of
cash flows arising from investing and financing
activities, which is recoverable from, or payable to,
the taxation authority are classified as operating
cash flows.
(g)
Impairment of assets
The Company assesses at each reporting date
whether there is an indication that an asset may be
impaired. If any such indication exists, or when
annual impairment testing for an asset is required,
the Company makes an estimate of the asset’s
recoverable amount. An asset’s
recoverable
amount is the higher of its fair value less costs to
sell and its value-in-use and is determined for an
individual asset, unless the asset does not generate
cash inflows that are largely independent of those
from other assets or groups of assets and the
asset's value-in-use cannot be estimated to be close
to its fair value. In such cases the asset is tested for
impairment as part of the cash-generating unit to
which it belongs. When the carrying amount of an
its
asset or
recoverable amount, the asset or cash-generating
unit is considered impaired and is written down to
its recoverable amount.
cash-generating unit exceeds
In assessing value-in-use, the estimated future cash
flows are discounted to their present value using a
pre-tax discount rate that reflects current market
assessments of the time value of money and the
risks specific to the asset.
Impairment losses relating to continuing operations
are recognised
in those expense categories
consistent with the function of the impaired asset
unless the asset is carried at a revalued amount (in
which case the impairment loss is treated as a
revaluation decrease).
An assessment is also made at each reporting date
as to whether there is any indication that previously
recognised impairment losses may no longer exist
or may have decreased. If such indication exists, the
recoverable amount is estimated.
A previously recognised impairment loss is reversed
only if there has been a change in the estimates
used to determine the asset’s recoverable amount
since the last impairment loss was recognised.
Commitments and contingencies are disclosed net
of the amount of GST recoverable from, or payable
to, the taxation authority.
If that is the case, the carrying amount of the asset
is increased to its recoverable amount.
40|Page
NOTE 1: STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
difficulties of the debtor, review of financial
information and significant delinquency in making
contractual payments to the Company.
impairment
That increased amount cannot exceed the carrying
amount that would have been determined, net of
depreciation, had no
loss been
recognised for the asset in prior years. Such reversal
is recognised in profit or loss unless the asset is
carried at a revalued amount, in which case the
reversal is treated as a revaluation increase. After
such a reversal the depreciation charge is adjusted
in future periods to allocate the asset’s revised
carrying amount, less any residual value, on a
systematic basis over its remaining useful life.
(h) Cash and cash equivalents
short
term, highly
Cash comprises cash at bank and in hand. Cash
equivalents are
liquid
investments that are readily convertible to known
amounts of cash and which are subject to an
insignificant risk of changes
Bank
overdrafts are shown within borrowings in current
liabilities in the statement of financial position.
in value.
For the purposes of the statement of cash flows,
cash and cash equivalents consist of cash and cash
equivalents as defined above, net of outstanding
bank overdrafts.
(i) Trade and other receivables
Trade
initial
receivables are measured on
recognition at fair value and are subsequently
measured at amortised cost using the effective
less any allowance for
interest rate method,
impairment for expected credit losses. Trade
receivables are generally due for settlement within
periods ranging from 15 days to 30 days.
Impairment of trade receivables is continually
reviewed and those that are considered to be
uncollectible are written off by reducing the
carrying amount directly. An allowance account is
used when there is objective evidence that the
Company will not be able to collect all amounts due
according to the original contractual terms.
Factors considered by the Company in making this
determination include known significant financial
The impairment allowance is set equal to the
difference between the carrying amount of the
receivable and the present value of estimated
future cash flows, discounted at the original
effective interest rate. Where receivables are short-
term, discounting is not applied in determining the
allowance.
The amount of the impairment loss is recognised in
the statement of comprehensive income within
other expenses. When a trade receivable for which
an impairment allowance had been recognised
becomes uncollectible in a subsequent period, it is
written off against
the allowance account.
Subsequent recoveries of amounts previously
written off are credited against other expenses in
the statement of comprehensive income.
(j) Financial Instruments
Recognition and derecognition
the
financial
Financial assets and
liabilities are
recognised when the Company becomes a party to
financial
the contractual provisions of
instrument. Financial assets are derecognised when
the contractual rights to the cash flows from the
financial asset expire, or when the financial asset
and substantially all the risks and rewards are
transferred. A financial liability is derecognised
when it is extinguished, discharged, cancelled or
expires.
Classification and initial measurement of financial
assets
for transaction costs
All financial assets are initially measured at fair
value adjusted
(where
applicable). Financial assets, other than those
designated and effective as hedging instruments,
are classified into the following categories:
•
fair value through other comprehensive income
(FVOCI).
• amortised cost fair value through profit or loss
(FVTPL).
41|Page
NOTE 1: STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
Financial assets at fair value through profit or loss.
Financial assets other than equity instruments that
do not meet the above amortised cost criteria are
measured at fair value through profit or loss. This
includes financial assets that are held for trading
and investments that the Company manages based
on their fair value
in accordance with the
Company’s documented risk management and/or
investment strategy.
Equity instruments are measured at fair value
through profit or
loss unless the Company
irrevocably elects at initial recognition to present
the changes in fair value in other comprehensive
income as described below.
Upon initial recognition, financial assets measured
at fair value through profit or loss are recognised at
fair value and any transaction costs are recognised
in profit or loss when incurred.
Subsequent measurement of financial assets
Financial assets at fair value through other
comprehensive income (FVOCI).
The Company accounts for financial assets at FVOCI
if the assets meet the following conditions:
•
•
they are held under a business model whose
objective it is “hold to collect” the associated
cash flows and sell; and
the contractual terms of the financial assets give
rise to cash flows that are solely payments of
principal and interest on the principal amount
outstanding.
in other
Any gains or
comprehensive income (OCI) will not be recycled
upon derecognition of the asset.
recognised
losses
Subsequent to initial recognition, financial assets at
fair value through profit or loss are measured at fair
value, and changes therein are recognised in profit
or loss.
Classification and measurement of
liabilities
financial
financial
include
The Company’s
trade and other payables. The
borrowings,
Company does not have any derivative financial
instruments in any period presented.
liabilities
Financial liabilities are initially measured at fair
value, and, where applicable, adjusted
for
transaction costs unless the Company designated a
financial liability at fair value through profit or loss.
at
FVTPL, which
Subsequently, financial liabilities are measured at
amortised cost using the effective interest method
liabilities
except for derivatives and financial
designated
carried
are
subsequently at fair value with gains or losses
recognised in profit or loss (other than derivative
financial
instruments that are designated and
effective as hedging instruments). All interest-
related charges and, if applicable, changes in an
instrument’s fair value that are reported in profit or
loss are included within finance costs or finance
income.
(k) Plant and equipment
Plant and equipment are stated at cost
less
accumulated depreciation and any accumulated
impairment losses. Such cost includes the cost of
replacing parts that are eligible for capitalisation
when the cost of replacing the parts is incurred.
Similarly, when each major inspection is performed,
its cost is recognised in the carrying amount of the
plant and equipment as a replacement only if it is
eligible for capitalisation.
42|Page
NOTE 1: STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
Depreciation is calculated on a straight-line basis
over the estimated useful life of the assets as
follows:
- Plant and equipment – over 3 to 5 years
- Motor Vehicles – over 3 years
lives and
The assets’ residual values, useful
amortisation methods are reviewed, and adjusted
if appropriate, at each financial year end.
(i) Impairment
The carrying values of plant and equipment are
reviewed for impairment at each reporting date,
with recoverable amount being estimated when
events or changes in circumstances indicate that
the carrying value may be impaired.
The recoverable amount of plant and equipment is
the higher of fair value less costs to sell and value in
use. In assessing value in use, the estimated future
cash flows are discounted to their present value
using a pre-tax discount rate that reflects current
market assessments of the time value of money and
the risks specific to the asset.
For an asset that does not generate
largely
independent cash inflows, recoverable amount is
determined for the cash-generating unit to which
the asset belongs, unless the asset's value in use
can be estimated to approximate fair value.
An impairment exists when the carrying value of an
asset or cash-generating units exceeds
its
estimated recoverable amount. The asset or cash-
generating unit
its
recoverable amount.
is then written down to
For plant and equipment, impairment losses are
recognised in the statement of comprehensive
income in a separate line item.
(ii) Derecognition and disposal
An item of plant and equipment is derecognised
upon disposal or when no further future economic
benefits are expected from its use or disposal.
Any gain or loss arising on derecognition of the
asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the
asset) is included in profit or loss in the year the
asset is derecognised.
(l) Trade and other payables
Trade payables and other payables are carried at
amortised cost and represent liabilities for goods
and services provided to the Company prior to the
end of the financial year that are unpaid and arise
when the Company becomes obliged to make
future payments in respect of the purchase of these
goods and services. Trade and other payables are
presented as current liabilities unless payment is
not due within 12 months.
(m) Employee leave benefits
Wages, salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-
monetary benefits, annual leave and accumulating
sick leave expected to be settled within 12 months
of the reporting date are recognised in other
payables or in employee benefits, in respect of
employees’ services up to the reporting date.
They are measured at the amounts expected to be
paid when the liabilities are settled. Liabilities for
non-accumulating sick leave are recognised when
the leave is taken and are measured at the rates
paid or payable.
43|Page
NOTE 1: STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
Other long-term employee benefits
The Company’s liabilities for annual leave and long
service leave are included in other long-term
benefits as they are not expected to be settled
wholly within 12 months after the end of the period
in which the employees render the related service.
They are measured at the present value of the
to be made
expected
to
future payments
future payments
employees. The expected
incorporate anticipated future wage and salary
levels, experience of employee departures and
periods of service, and are discounted at rates
determined by reference to market yields at the
end of the reporting period on high quality
corporate bonds that have maturity dates that
approximate the timing of the estimated future
cash outflows. Any re-measurements arising from
experience
in
assumptions are recognised in profit or loss in the
periods in which the changes occur.
adjustments
changes
and
The Company presents
employee benefit
obligations as current liabilities in the statement of
financial position if the Company does not have an
unconditional right to defer settlement for at least
12 months after the reporting period, irrespective
of when the actual settlement is expected to take
place.
(n) Issued capital
Shares are
Ordinary
classified as equity.
Incremental costs directly attributable to the issue
of new shares or options are shown in equity as a
deduction, net of
the proceeds.
tax,
Incremental costs directly attributable to the issue
of new shares or options for the acquisition of a
new business are not included in the cost of
acquisition as part of the purchase consideration.
from
(o) Earnings per share
Basic earnings per share is calculated as net
profit/loss adjusted to exclude any costs of
than dividends) and
(other
servicing equity
preference share dividends, divided by
the
weighted average number of Ordinary Shares,
adjusted for any bonus element.
Diluted earnings per share is calculated as net
profit/loss adjusted for:
•
•
costs of servicing equity (other than dividends)
and preference share 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.
(p) Exploration and evaluation expenditure
Exploration and evaluation expenditure in relation
to each separate area of interest are recognised as
an exploration and evaluation asset in the year in
incurred where the following
which they are
conditions are satisfied:
(i) the rights to tenure of the area of interest are
current; and
(ii) at least one of the following conditions is also
met:
(a) the exploration and evaluation expenditures
are expected to be recouped through
successful development and exploitation of
the area of interest, or alternatively, by its
sale; or
(b) exploration and evaluation activities in the
area of interest have not at the reporting
date reached a stage which permits a
reasonable assessment of the existence or
otherwise of economically
recoverable
significant
reserves, and active and
operations in, or in relation to, the area of
interest are continuing.
44|Page
NOTE 1: STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
initially
Exploration and evaluation assets are
measured at cost and include acquisition of rights
to explore, studies, exploratory drilling, trenching
and sampling and associated activities and an
in
allocation of depreciation of assets used
exploration and evaluation activities.
General and administrative costs are only included
in the measurement of exploration and evaluation
costs where they are related directly to operational
activities in a particular area of interest.
Exploration and evaluation assets are assessed for
impairment when facts and circumstances suggest
that the carrying amount of an exploration and
its recoverable
evaluation asset may exceed
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.
(q) Share-based payments
The Company operates equity-settled share-based
remuneration plans for its employees. None of the
Company’s plans feature any options for a cash
settlement.
All goods and services received in exchange for the
grant of any share-based payment are measured at
their fair values. Where employees are rewarded
using share-based payments, the fair values of
employees’ services are determined indirectly by
reference to the fair value of the equity instruments
granted. This fair value is appraised at the grant
date.
The Company measures the cost of equity-settled
transactions by reference to the fair value of the
equity instruments at the date at which they are
granted. The fair value is determined using a Black
and Scholes model taking into account the details in
Note 18.
share-based
remuneration
All
is ultimately
recognised as an expense in profit or loss with a
corresponding credit to the share option reserve. If
vesting periods or other vesting conditions apply,
the expense is allocated over the vesting period,
based on the best available estimate of the number
of share options expected to vest.
Non-market vesting conditions are included in
assumptions about the number of options that are
expected to become exercisable. Estimates are
subsequently revised if there is any indication that
the number of share options expected to vest
differs from previous estimates. Any cumulative
adjustment prior to vesting is recognised in the
current period. No adjustment is made to any
expense recognised in prior periods if share options
ultimately exercised are different to that estimated
on vesting.
Inputs to pricing models may require an estimation
of reasonable expectations about achievement of
future vesting conditions. Vesting conditions must
be satisfied for the counterparty to become entitled
to receive cash, other assets or equity instruments
of the entity, under a share-based payment
arrangement.
45|Page
NOTE 1: STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
include service conditions,
Vesting conditions
which require the other party to complete a
specified period of service, and performance
conditions, which require specified performance
targets to be met (such as a specified Increase in the
entity's profit over a specified period of time) or
completion of performance hurdles.
The Company recognises an amount for the goods
or services received during the vesting period based
on the best available estimate of the number of
equity instruments expected to vest and shall revise
subsequent
if necessary,
that estimate,
information indicates that the number of equity
instruments expected to vest differs from previous
estimates. On vesting date, the entity shall revise
the estimate to equal the number of equity
instruments that ultimately vested.
if
The achievement of future vesting conditions is
reassessed each reporting period. Upon exercise of
share options, the proceeds received net of any
directly attributable transaction costs are allocated
to share capital.
(r) Provisions,
contingent
liabilities
and
contingent assets
Provisions are recognised when the Company has a
present legal or constructive obligation as a result
of a past event, it is probable that an outflow of
economic resources will be required from the
Company and amounts can be estimated reliably.
The timing or amount of the outflow may still be
uncertain.
Restructuring provisions are recognised only if a
detailed formal plan for the restructuring has been
developed and implemented, or management has
at least announced the plan’s main features to
those affected by it. Provisions are not recognised
for
losses. Provisions are
measured at the estimated expenditure required to
settle the present obligation, based on the most
reliable evidence available at the reporting date,
including the risks and uncertainties associated
with the present obligation.
future operating
Where there are a number of similar obligations,
the likelihood that an outflow will be required in
settlement is determined by considering the class
of obligations as a whole. Provisions are discounted
to their present values, where the time value of
money is material. Any reimbursement that the
Company can be virtually certain to collect from a
third party with respect to the obligation
is
recognised as a separate asset. However, this asset
may not exceed the amount of the related
provision.
No liability is recognised if an outflow of economic
resources as a result of present obligation is not
situations are disclosed as
probable. Such
the outflow of
contingent
resources is remote in which case no liability is
recognised.
liabilities unless
(s) Subsidiaries
During the year, the Company had three wholly
owned subsidiaries, East Laverton Exploration Pty
Ltd, Mt Bennett Exploration Pty Ltd and Conquest
Exploration Pty Ltd. Mt Bennet Exploration Pty Ltd
was divested as part of the transaction outlined in
Note 9. No transactions have been incurred by
these dormant entities since incorporation and
therefore the dormant entities have not been
consolidated into the results of the Company. The
Statement of Financial Position, Statement of Profit
or Loss and Other Comprehensive
Income,
Statement of Changes in Equity and Statement of
Cashflows for the year then ended as shown in
these financial statements are considered to
constitute those of the Group.
(t) Leases
Right of Use Assets
is recognised at the
A right of use asset
commencement date of a lease. The right of use
asset is measured at cost, which comprises the
initial amount of the lease liability, adjusted for, as
applicable, any lease payments made at or before
the commencement date net of any
lease
incentives received, any initial direct costs incurred,
and, except where
in the cost of
inventories, an estimate of costs expected to be
incurred
the
underlying asset, and restoring the site or asset.
for dismantling and
removing
included
46|Page
NOTE 1: STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
Right of use assets are depreciated on a straight-
line basis over the unexpired period of the lease or
the estimated useful life of the asset, whichever is
the shorter. Where the Company expects to obtain
ownership of the leased asset at the end of the
lease term, the depreciation is over its estimated
useful
life. Right-of-use assets are subject to
impairment or adjusted for any remeasurement of
lease liabilities.
The Company has elected not to recognise a right of
use asset and corresponding lease liability for short-
term leases with terms of 12 months or less and
leases of low-value assets. Lease payments on these
assets are expensed to profit or loss as incurred.
Lease Liabilities
A lease liability is recognised at the commencement
date of a lease. The lease liability is initially
recognised at the present value of the lease
payments to be made over the term of the lease,
discounted using the interest rate implicit in the
lease or, if that rate cannot be readily determined,
the Company’s incremental borrowing rate. Lease
payments comprise of fixed payments less any
lease
lease
receivable,
payments that depend on an index or a rate,
amounts expected to be paid under residual value
guarantees, exercise price of a purchase option
when the exercise of the option is reasonably
certain to occur, and any anticipated termination
penalties. The variable lease payments that do not
depend on an index or a rate are expensed in the
period in which they are incurred.
incentives
variable
Lease liabilities are measured at amortised cost
using the effective interest method. The carrying
amounts are remeasured if there is a change in the
following: future lease payments arising from a
change in an
index or a rate used; residual
guarantee; lease term; certainty of a purchase
option and termination penalties. When a lease
liability is remeasured, an adjustment is made to
the corresponding right-of-use asset, or to profit or
loss if the carrying amount of the right of use asset
is fully written down.
(u) Going Concern
During the year the Company incurred a net loss of
$1,943,726 (2022: loss of $1,825,544). Net cash
outflows from operating and investing activities
during the period were $3,479,029 (2022: cash
outflows of $4,886,975).
Given the potential funding options and cash
management initiatives noted below, the Directors
believe the going concern basis is appropriate:
• The Company will continue
to exercise
appropriate cash management and monitoring
of operating cashflows according to exploration
is
success. Future exploration expenditure
generally
and
exploration activities may be slowed or
suspended as part of the Company’s cash
management strategy.
discretionary
nature
in
capital via equity placements
• The Company has demonstrated its ability to
raise
to
shareholders during the period. Given the
strong support of substantial shareholders and
the prospectivity of the Company’s current
projects the Directors are confident that any
future capital raisings will be successful.
Should the Company be unable to obtain sufficient
future funding, there is a material uncertainty
which may cast significant doubt as to whether the
Company will be able to continue as a going
concern and whether it will realise its assets and
extinguish its liabilities in the normal course of
business and at the amounts stated in the financial
statements.
include any
The financial statements do not
adjustments relating to the recoverability and
classification of recorded asset amounts nor to the
amounts and classification of liabilities that might
be necessary should the Company not continue as
a going concern.
47|Page
NOTE 2: LOSS BEFORE INCOME TAX EXPENSE
Note
2023
$
2022
$
The following revenue and expense items are relevant in explaining the
financial performance for the year.
Interest income – other parties
Gain on motor vehicle insurance payout
Gain on divestment of Palmer River Project
Expense
Included in administration expenses are the following material items:
- Rent and outgoings paid
- Accounting and audit fees
- ASX listing fees
- Subscriptions
- Share registry
- Conferences, travel and accommodation
Fair value movement in Financial Assets
Finance costs
Employee benefits expense
Exploration and evaluation expenditure not capitalised
7,918
-
766,134
774,052
(77,977)
(58,684)
(72,956)
(10,573)
(38,258)
(19,723)
196
59,349
-
59,545
(147,527)
(56,626)
(74,159)
(42,449)
(31,560)
(25,710)
(364,919)
-
(10,701)
(11,508)
(318,456)
(591,371)
(220,479)
(101,540)
(a)
8
(b)
(c)
(d)
a) The Company rents properties in Perth, Laverton and Townsville. Of this balance, $85,775 was paid to
a Director related entity during the year (2022: $77,968).
b) During the period, the Company paid $6,575 to a Director related entity as interest on loan funds
advanced. The loan was repaid through the Director taking up their entitlement in the Rights Issue
completed in August 2022.
c) Of the employee benefits expenses for the year 30 June 2023 above, $63,785 represents amounts
paid in superannuation contributions (2022: $103,860). In addition, the balance includes $81,248
(2022: $84,341) of geologists’ time that was not directly attributable to exploration activities and has
therefore been expensed as incurred.
d) These costs relate to expenditure for tenement applications and other incidental costs that are not
directly attributable to exploration activities and have therefore been expensed as incurred.
48|Page
NOTE 3: AUDITOR’S REMUNERATION
The auditor of Great Southern Mining Limited is HLB Mann Judd.
Amounts paid or due and payable to HLB Mann Judd for:
Audit and review of financial reports
Other non-assurance services
NOTE 4: INCOME TAX EXPENSE
(a) Recognised in the statement of comprehensive income
Current income tax expense on net loss for the year
Deferred tax expense relating to the origination and reversal of temporary
differences
Total income tax benefit
2023
$
2022
$
44,848
34,506
-
-
44,848
34,506
2023
$
2022
$
-
-
-
-
-
-
(b) Reconciliation between income tax expense and pre-tax profit/(loss)
Loss before tax
(1,943,726)
(1,825,544)
Income tax using the domestic small business corporation tax rate of 30% (2021:
30%).
(583,118)
(547,663)
Tax effect of:
Non-deductible expenses
Share based payments
Unused tax losses and temporary differences not recognised as deferred tax assets
Income tax expense on pre-tax loss
(c) Tax expense/(benefit) relating to items of other comprehensive income
Revaluation of available-for-sale investments
Disposal available-for-sale investments
Income tax applicable thereto
(d) Unrecognised deferred tax balances
Deferred tax assets and (liabilities) calculated at 30% (2021: 30%) have not been
recognised in respect of the following:
Income tax losses
Temporary differences
142,696
139,985
300,437
5,746
-
541,917
-
-
-
-
-
-
-
-
5,526,450
4,707,877
(3,021,517)
(2,557,059)
2,504,933
2,150,818
Deductible temporary differences and tax losses do not expire under current tax legislation. Recoverability of tax losses
is subject to satisfying either the Continuity of Ownership Test or the Business Continuity Test in accordance with the
tax legislation requirements.
49|Page
NOTE 5: (LOSS) PER SHARE
2023
$
2022
$
Basic and diluted loss per share (cents per share)
(0.31)
(0.36)
Weighted average number of ordinary shares used in calculation of loss per share
618,653,339
512,453,498
Loss used in calculation of basic and diluted (loss) per share ($)
(1,943,726)
(1,825,544)
NOTE 6: CASH AND CASH EQUIVALENTS
2023
$
2022
$
Cash on hand and at bank
1,583,488
917,830
Cash at bank earns interest at floating rates on daily bank deposit rates.
NOTE 7: OTHER ASSETS
Prepaid expenses
NOTE 8: INVESTMENT IN FINANCIAL ASSETS
2023
$
2022
$
33,300
34,831
2023
$
2022
$
Financial assets at fair value through profit or loss
276,839
-
During the period, the Company received 2,516,694 shares in Revolver Resources Holdings Ltd (ASX: RRR) as consideration
for the sale of shares held in the Company's dormant subsidiary, Mt Bennett Exploration Pty Ltd, which held 100% interest
in the Palmer River Project in Queensland. The Company also received a cash payment of $250,000 during the period. The
fair value of the shares on the date of receipt was $641,757.
The net change in fair value on financial assets at fair value through profit or loss for the year was an unrealized loss of
$364,919. (2022 : $nil).
NOTE 9: OTHER RECEIVABLES
2023
$
2022
$
Exploration tenement guarantees
35,667
35,667
50|Page
NOTE 10: PLANT AND EQUIPMENT
Plant and equipment at cost
Less: Accumulated depreciation
Movement schedule for plant and equipment
Opening written down value
Additions
Disposals
Vehicle deemed a loss during the period
Depreciation
Depreciation allocated to exploration expenditure
Closing written down value
NOTE 11: EXPLORATION AND EVALUATION EXPENDITURE
Cost brought forward in respect of areas of interest in the exploration
and evaluation stage
Expenditure capitalised during the year
Divestment of Palmer River Project
Impairment of exploration expenditure
Cost carried forward
Return of Cox’s Find Gold Project to Vendor
(a)
(b)
(b)
(c)
2023
$
2022
$
319,295
(282,066)
37,229
319,295
(218,583)
100,712
100,712
177,309
-
-
-
(14,252)
(49,231)
37,229
32,360
-
(26,838)
(14,019)
(68,100)
100,712
2023
$
2022
$
9,805,909
7,300,529
1,595,461
3,305,380
(145,392)
(26,038)
-
-
11,229,940
10,605,909
-
(800,000)
11,229,940
9,805,909
(a) During the year, the Company received $92,298 in relation to the West Australian Governments Exploration
Inventive Scheme which provided funding to assist the Company in undertaking its diamond drilling program at
the East Laverton Gold Project.
(b) On 18 October 2022, the Company announced the completion of the sale of its 100% owned dormant subsidiary,
Mt Bennett Exploration Pty Ltd, which held the tenements comprising the Palmer River Project of EPM 27305 and
EPM 27921 in north Queensland, to ASX listed company, Revolver Resources Holdings Limited (ASX:RRR). The
consideration to GSN under the sale and purchase agreement of Mt Bennett Exploration Pty Ltd was as follows:
1. A$100,000 cash option fee payable upon the signing of an option deed in relation to the sale of the Palmer
River Project;
2. A$150,000 cash upon completion in October 2022; and
51|Page
NOTE 11: EXPLORATION AND EVALUATION EXPENDITURE (CONTINUED)
3. 2,516,694 RRR shares received upon completion of the sale and purchase agreement, calculated on a 10-day
Volume Weighted Average Price. GSN has executed a voluntary escrow deed on the RRR shares for 12 months
from the date of issue of the RRR shares.
The expenditure of $145,392 the Company incurred on the tenements to the date of sale was written off during the
period and is included in the Statement of Profit or Loss. An impairment charge of $26,038 was recognised against a
tenement associated with the Palmer River Project that was not part of the transaction. The tenement was
relinquished.
(c) In August 2021, the Company successfully negotiated with the Vendor to return the Cox’s Find Gold Project
(Project) through the payment of a $100,000 cancellation fee. The effect of the transaction was to release the
Company of the obligation to pay Deferred Payment 1 of $800,000, Deferred Payment 2 and the Royalty
Agreement.
The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phases is
dependent on successful development and commercial exploitation or sale of respective areas.
NOTE 12: RIGHT-OF-USE ASSETS
COST
Opening Balance
Additions
Accumulated Depreciation
Opening Balance
Charge for the year
2023
$
2022
$
275,303
275,303
-
-
275,303
275,303
(164,215)
(108,235)
(51,313)
(55,980)
(215,528)
(164,215)
Carrying Amount
59,775
111,088
Amounts recognised in the Profit and Loss
Depreciation expense on right-of-use asset
Interest expense on lease liabilities
Expense relating to short term leases
Total cash outflow for leases
(51,313)
(55,980)
(3,174)
(5,721)
-
(56,215)
(54,487)
(117,916)
The Company leases its registered head office premises with the remaining lease term of 1.0 years (30 June 2022: 2.0
years). In addition to the lease above, the Company also leases a base of operations, including a shed and office, in
Laverton, Western Australia and one in Townsville, Queensland. At balance date, the leases have a term of less than one
year. These leases are either short-term or low-value, so have been expensed as incurred and not capitalised as right-of-
use assets.
52|Page
NOTE 12: LEASE LIABILITIES
LEASE LIABILITIES
Current
Non-current
The Company does not face a significant liquidity risk with regard to its lease liabilities.
NOTE 13: TRADE AND OTHER PAYABLES
Trade creditors
Accruals and other payables
2023
$
2022
$
60,540
-
56,676
58,073
60,540
114,749
2023
$
57,295
291,149
348,444
2022
$
503,003
170,446
673,449
All trade and other payables are non-interest bearing and are normally settled on 30-day terms. All amounts are short-
term. The carrying values of trade payables and other payables are considered to be a reasonable approximation of fair
value.
NOTE 14: BORROWINGS
Current
Director Loan
Financial Liability
2023
$
2022
$
(a)
(b)
-
-
-
500,000
55,000
555,000
a)
b)
On 15 June 2022 an entity associated with director John Terpu provided a $500,000 loan facility to the
Company. The loan was on commercial terms and attracted an interest rate of 10% per annum. Following the
completion of the pro-rata entitlement issue in August 2022, the facility has been extinguished. Interest of
$6,565 paid during the period (included in Note 2).
As at 30 June 2022, the Company had one finance facility in place on a field vehicle. During the year ended 30
June 2023, the balance of the facility was paid out in full.
53|Page
NOTE 15: EMPLOYEE BENEFITS
Current employee entitlements
Annual Leave
Long-Service Leave
Non-current employee entitlements
Annual Leave
Long-Service Leave
Total employee entitlements
Annual Leave
Long-Service Leave
Opening balance
Accrued during the period
Taken during the period
Closing balance
2023
$
2022
$
74,301
42,717
117,018
-
16,658
16,658
74,301
59,375
88,548
39,083
127,631
-
9,566
9,566
88,548
48,649
Annual Leave
$
Long Service Leave
$
88,548
67,533
(81,780)
74,301
39,083
20,292
-
59,375
54|Page
NOTE 16: ISSUED CAPITAL
Note
Issued capital comprises Fully Paid Ordinary Shares
Movement in issued shares for the year
Balance at beginning of the financial year
Issued for cash
Placement of shares
Exercise of listed options
Placement of shares
Placement of shares following rights issue completion
Placement of shortfall shares under rights issue
Shares issued to consultant for services provided
Placement of shares following shareholder approval
Placement of shares
Placement of shares
Placement of shares following shareholder approval
Share issue costs
Balance at the end of the year
(a)
(b)
(c)
(c)
(c)
(d)
(e)
(f)
Date
19-Aug-21
27-Oct-21
22-Dec-21
01-Aug-22
19-Oct-22
04-Nov-22
25-Jan-23
09-Feb-23
28-Apr-23
16-Jun-23
No.
715,173,650
2023
$
No.
2022
$
39,834,325
532,367,086
35,169,281
532,367,086
35,169,281
455,020,420
31,291,441
-
-
-
24,162,161
23,561,166
237,997
11,428,571
71,750,002
29,850,000
21,816,667
-
715,173,650
-
-
-
845,676
824,641
10,080
400,000
1,722,000
597,000
443,000
(177,353)
39,834,325
50,640,000
40,000
26,666,666
-
-
-
-
-
-
-
-
532,367,086
2,532,000
2,000
1,600,000
-
-
-
-
-
-
-
(256,160)
35,169,281
a) 50,640,000 Fully Paid Ordinary Shares placed at $0.05 each raising $2.53 million before costs. The placement involved issuing 12,660,000 free attaching Listed Options
(GSNOA).
b) 26,666,666 Fully Paid Ordinary Shares placed at $0.06 each raising $1.6 million before costs. The placement involved issuing 13,333,333 free attaching Listed Options
(GSNOA).
c) 59,151,898 Fully Paid Ordinary Shares issued under the Rights Issue announced in July 2022. Shares were issued at $0.035 each raising $2.07 million before costs.
d) 71,750,002 Fully Paid Ordinary Shares placed at $0.024 each raising $1.72 million before costs.
e) 29,850,000 Fully Paid Ordinary Shares placed at $0.020 each raising $0.59 million before costs.
f) Shares issued to Directors following shareholder approval to participate in the placements in (d) and (e) above.
55|Page
NOTE 17: RESERVES
18 - Unlisted Option Reserve
19 - Performance Rights Reserve
20 – Listed Option Reserve
2023
$
2022
$
2023
$
2022
$
Balance at beginning of the financial year
Recognised during the period
Forfeited during the period
Expired during the period
619,072
406,410
(24,012)
-
Balance at end of the financial year
1,001,470
538,143
115,541
(34,612)
-
619,072
-
84,219
-
-
84,219
63,896
39,748
(103,644)
-
-
Total Reserve Balance at year end: $1,085,689 (2022: $2,209,186)
2023
$
1,590,115
-
-
(1,590,115)
2022
$
1,521,916
68,199
-
-
-
1,590,115
The change during the period records the fair value of securities issued during the period using valuation models as described in Note 1 and the assumptions in Note 18 to Note
20.
56|Page
NOTE 18: UNLISTED OPTION RESERVE
Opening Balance
Issued during the period
Recognition of prior issued unlisted options
Cancelled / Lapsed During the period
Exercised during the period
Expired during the period
2023
No.
16,050,000
25,000,000
-
(2,750,000)
-
(6,700,000)
31,600,000
$
619,072
311,113
95,297
(24,012)
-
-
2022
No.
10,900,000
19,250,000
-
(14,100,000)
-
-
$
538,143
56,582
66,356
(42,009)
-
-
1,001,470
16,050,000
619,072
Grant
Date
14/05/20
10/07/20
04/09/20
06/10/20
06/10/20
05/10/21
05/10/21
05/10/21
29/03/22
29/03/22
29/03/22
15/06/22
22/08/22
Expiry
Date
Exercise
Price ($)
Balance at start
of reporting
period
Granted
during the
period
Converted
during the
period
Cancelled / Lapsed
during the period
Balance at
period end
Vested at
period end Notes
04/09/22
30/06/23
30/06/23
31/12/22
31/12/23
05/10/24
05/10/25
05/10/26
29/03/25
29/03/26
29/03/27
15/06/25
21/08/25
0.06
0.05
0.10
0.05
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.07
5,000,000
600,000
500,000
600,000
600,000
1,750,000
1,500,000
1,500,000
1,750,000
1,000,000
1,000,000
250,000
-
16,050,000
-
-
-
-
-
-
-
-
-
-
-
-
25,000,000
25,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(5,000,000)
-
(600,000)
-
(500,000)
-
(600,000)
600,000
-
1,500,000
(250,000)
-
(500,000)
-
(500,000)
-
(500,000)
-
(500,000)
-
(500,000)
-
-
- 25,000,000 25,000,000
9,450,000 31,600,000 27,100,000
-
-
-
-
600,000
1,500,000
1,000,000
1,000,000
1,250,000
500,000
500,000
250,000
A
B
C
D
D
E
E
E
F
F
F
G
H
FV at Grant
Date ($ cents
per option)
Amount
recognised
during the
period
0.1235
0.1183
0.0678
0.1013
0.0880
0.0190
0.0232
0.0266
0.0221
0.0267
0.0300
0.0165
0.0124
-
-
-
-
-
7,479
14,599
6,713
22,902
9,665
5,983
3,944
311,113
382,398
57|Page
NOTE 18: UNLISTED OPTION RESERVE (CONTINUED)
Valuation assumptions
A
B
C
D
E
F
G
H
Grant date
Share price at date of grant
($)
0.06
Volatility
84%
14/05/20
10/07/20
04/09/20
06/10/20
05/10/21
29/03/22
15/06/22
22/08/22
0.16
84%
0.12
84%
0.11
106%
0.05
108%
0.05
108%
0.04
98%
0.04
77%
Nil
0.50%
n/a
Nil
0.26%
n/a
Nil
0.26%
n/a
between
31/12/22 and
31/12/23
Nil
0.26%
n/a
24 months after
vesting or at
cessation of
employment
Nil
0.10%
n/a
24 months after
vesting or at
cessation of
employment
Nil
0.10%
n/a
15/06/25
21/08/25
Nil
0.85%
n/a
Nil
1.85%
100.00%
Expiry date
04/09/22
30/06/23
30/06/23
Dividend yield
Risk free investment rate
Vesting probability
Weighted average
remaining contractual life
(yrs)
-
-
-
0.6
0.2
1.00
1.46
2.15
58|Page
NOTE 19: PERFORMANCE RIGHTS
Balance at beginning of the year
Change during the period
Recognition of prior issued rights during the period
Cancelled/lapsed during the period
Balance at end of the year
2023
2022
No
-
17,000,000
-
-
$
No
$
-
84,219
-
-
6,000,000
63,896
-
-
-
39,748
(6,000,000)
(103,644)
17,000,000
84,219
-
-
Following the resignation of the employee in January 2022, all Performance Rights on issue during the prior year lapsed.
The Company agreed to issue Performance and Loyalty Rights (hereafter referred to as Performance Rights) to Matthew Keane, who was appointed Managing Director on 19
September 2022. Performance Rights are convertible into Shares on a one for one basis for no consideration upon exercise by the holder on or before the date which is two years and
one month after issue.
Each Performance Right will vest as an entitlement to one Fully Paid Ordinary Share upon achievement of certain performance milestones. If the performance milestones are not met,
the performance rights will lapse and the eligible participant will have no entitlement to any shares. Performance Rights are not listed and carry no dividend or voting rights. Each
Fully Paid Ordinary Share issued on exercise of the Performance Rights will rank pari passu in all respects with existing Fully Paid Ordinary Shares.
Item
Number of Rights
Exercise price
Grant date
Start of performance period
Vesting date
Performance period (years)
Remaining performance
period (years)
Expiry date
Share price at grant date
Vesting conditions
Risk-free rate
Share price volatility
Loyalty Rights
Tranche 1
Loyalty Rights
Tranche 2
Performance Rights
Tranche 1
Performance Rights
Tranche 2
Performance Rights
Tranche 3
1,000,000
Nil
19-09-22
19-09-22
19-09-23
2.08
1.29
1,000,000
Nil
19-09-22
19-09-22
19-09-24
2.08
1.29
14-10-24
14-10-24
$ 0.0340 $ 0.0340
Refer Note 2
3.0%
77.4%
Refer Note 1
3.0%
77.4%
5,000,000
Nil
19-09-22
19-09-22
n/a
2.08
1.29
14-10-24
$ 0.0340
Refer Note 3
3.0%
77.4%
5,000,000
Nil
19-09-22
19-09-22
n/a
2.08
1.29
14-10-24
$ 0.0340
Refer Note 4
3.0%
77.4%
5,000,000
Nil
19-09-22
19-09-22
n/a
2.08
1.29
14-10-24
$ 0.0340
Refer Note 5
3.0%
77.4%
59|Page
Item
Market capitalisation target (calculated on 20day
VWAP)
Value per Right
Fair Value at Grant Date
Amount Recognised during the period
Loyalty Rights
Tranche 1
Loyalty Rights
Tranche 2
Performance Rights
Tranche 1
Performance Rights
Tranche 2
Performance Rights
Tranche 3
n/a
$0.0340
$34,000
$13,227
n/a
$0.0340
$34,000
$13,227
$40m
$0.0159
$79,500
$30,929
$80m
$0.0081
$40,500
$15,756
$120m
$0.0048
$24,000
$11,080
Notes:
1. Subject to 12-month duration of service condition.
2. Subject to 24-month duration of service condition.
3. Measured by achieving a market capitalisation of $40 million calculated on a 20-day volume weighted average price.
4. Measured by achieving a market capitalisation of $80 million calculated on a 20-day volume weighted average price.
5. Measured by achieving a market capitalisation of $120 million calculated on a 20-day volume weighted average price.
NOTE 20: LISTED OPTION RESERVE
Note
2023
2022
No.
$
No.
$
Issued capital comprises Fully Paid Ordinary Shares
Movement in issued shares for the year
Balance at beginning of the financial year
Lead Manager Options on Placement
Issue of Listed Options following Placement
Issue of Listed options to advisers
Issue of Listed Options following Placement
Issue of Listed options to advisers
Expiration of Listed Options
Balance at the end of the year
Date
29-Sep-21
29-Sep-21
29-Sep-21
22-Dec-21
24-Jun-22
04-Sep-22
195,977,557
No.
195,977,557
0
$
1,590,115
195,977,557
No.
157,484,222
2,500,000
12,660,000
2,000,000
13,333,335
8,000,000
1,590,115
$
1,521,916
35,000
-
25,199
-
8,000
(195,977,557)
(1,590,115)
-
-
195,977,557
1,590,115
All Listed Options issued had an exercise price of $0.05 on or before 4 September 2022. All Listed Options Expired on this date.
60|Page
NOTE 21: RELATED PARTY DISCLOSURES
Transactions with key management personnel
The following comprises amounts paid or payable and received or receivable applicable to entities in which key
management personnel (KMP) have an interest.
Directors and related parties
Paid/payable to:
Rent and service charges paid / payable to Ruby Lane Pty Ltd of the
Terpu Trust
Loan provided by Valleyrose Pty Ltd in June 2022
Interest charges on loan provided by Valleyrose Pty Ltd in June 2022
Note
14
14
Total remuneration paid to KMP of the Company during the year:
Short-term employee benefits
Post-employment benefits
Share based payments
Total KMP compensation
NOTE 22: COMMITMENTS AND CONTINGENT LIABILITIES
(a) Exploration Expenditure Commitments
2023
$
2022
$
85,775
77,968
-
500,000
4,383
2,055
719,391
659,078
72,995
129,684
922,070
66,366
7,500
732,944
The Company has certain obligations to perform exploration work and expend minimum amounts of money on such works
on mineral exploration tenements. These obligations will vary from time to time, subject to statutory approval and capital
management. The terms of the granted licenses and those subject to relinquishment will alter the expenditure
commitments of the Company as will any change to areas subject to licence.
(b) Native Title
Native title claims have been made with respect to areas which include tenements in which the Company has interests.
The Company is unable to determine the prospects for success or otherwise of the claims and, in any event, whether or not
and to what extent the claims may significantly affect the Company or its projects.
(c) Lease Commitments
The Company leases its head office premises. Previously the lease commitments were classified as an operating lease.
Under AASB16, these have been recognised as a right of use asset and a lease liability.
61|Page
NOTE 22: COMMITMENTS AND CONTINGENT LIABILITIES (CONTINUED)
(d) Royalties
As part of the acquisition of the Mon Ami Gold Project during 2018 the Company entered into a Royalty Deed with Valleybrook
Investments Pty Ltd (“Valleybrook”), being a company related to J. Terpu. The royalty entitles Valleybrook to a net smelter
return of 2.75% on revenue produced from sales of ore extracted. The term of the royalty is for the life of the mining lease
on the Mon Ami Gold Project, subject to the availability of ore to be extracted. At the date of this report, the Company is not
in a position to reliably estimate the amount, if any, that would be paid to Valleybrook as a result of successful economic
extraction of ore from the project given its exploration stage and as such this amount has not been recognised in the accounts
of the Company at balance date.
NOTE 23: SEGMENT INFORMATION
The Company undertakes mineral exploration and evaluation work on a number of tenements located in Western Australia
and Queensland. Management currently identifies the Company’s assets in each location as separate operating segments.
The accounting policies adopted for internal reporting are consistent with those adopted for the financial statements.
These operating segments are monitored by the Company’s chief operating decision maker and based on internal reports
that are reviewed and used by the Board of Directors in making strategic decisions on the basis of available cash reserves and
exploration results. The items which are not capitalised to exploration and evaluation expenditure and are included in the
statement of profit or loss and other comprehensive income, relate to the Corporate Segment.
Segment assets and liabilities are disclosed in the table below:
Current Assets
Cash and cash
equivalents
Other current assets
Non-current assets
Exploration and
Evaluation Expenditure
Western Australia
2022
2023
$
$
Queensland
2023
$
2022
$
Corporate
2023
$
2022
$
Total
2023
$
2022
$
-
-
-
-
-
-
-
-
-
- 1,583,488
917,830
1,583,488
917,830
-
33,301
34,831
33,301
34,831
- 1,616,789
952,661
1,616,789
952,661
6,568,317
5,445,100
4,661,623 4,360,809
-
-
11,229,940
9,805,909
Plant and equipment
8,146
40,418
13,107
47,823
15,975
12,471
37,229
100,712
Financial Assets
Other non-current assets
-
-
-
-
-
-
-
-
276,839
-
276,839
-
95,442
146,755
95,442
146,755
6,576,463
5,485,518
4,674,730 4,408,632
388,255
159,226
11,639,448
10,053,376
Total Assets
6,576,463
5,485,518
4,674,730 4,408,632 2,005,044 1,111,887
13,256,238
11,006,037
Liabilities
235,427
476,366
15,142
54,747
292,091
949,282
542,660
1,480,395
62|Page
NOTE 23: SEGMENT NOTE (CONTINUED)
Interest of $7,918 can be attributed to the corporate segment (2022: $196). Other income of $766,134 consists of the gain
recognised on the divestment of the Palmer River tenements. The Company wrote off $145,392 in relation to a capitalised
expenditures on these assets. The Company recognised an impairment of $26,038 on the relinquishment of a tenement in
Queensland during the year.
Other assets include insurance prepayments.
NOTE 24: FINANCIAL RISK MANAGEMENT
Overview
This note presents information about the Company’s exposure to credit, liquidity and market risks, its objectives, policies
and processes for measuring and managing risk, and the management of capital.
The Company does not use any form of derivatives as it is not at a level of exposure that requires the use of derivatives to
hedge its exposure. Exposure limits are reviewed by management on a continuous basis. The Company does not enter into
or trade financial instruments, including derivative financial instruments, for speculative purposes.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework.
Management monitors and manages the financial risks relating to the operations of the Company through regular reviews
of the risks.
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations and arises principally from the Company’s receivables from customers and investment securities.
Given the Company is not generating sales nor has significant receivable balances apart from GST payments to be received
from the ATO, at the reporting date there were no significant concentrations of credit risk.
(i)
Cash and cash equivalents
The Company limits its exposure to credit risk by only investing in liquid securities and only with counterparties that have an
acceptable credit rating. The Company has limited its risk to only holding bank accounts with two Australian financial
institutions.
(ii)
Trade and other receivables
As the Company operates primarily in exploration activities, it does not have trade receivables and therefore is not exposed
to credit risk in relation to trade receivables.
The Company where necessary establishes an allowance for impairment that represents its estimate of expected losses in
respect of other receivables and investments. Management does not expect any counterparty to fail to meet its obligations.
(iii)
Exposure to credit risk
The carrying amount of the Company’s financial assets represents the maximum credit exposure. The Company’s maximum
exposure to credit risk at the reporting date was:
63|Page
NOTE 24: FINANCIAL RISK MANAGEMENT (CONTINUED)
Carrying Amount
Cash and cash equivalents
Other receivables
2023
$
2022
$
1,583,488
33,301
917,830
34,832
(iv)
Impairment Losses
None of the Company’s other receivables are past due (2022: nil).
Liquidity Risk
The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to
meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Company’s reputation.
The Company manages liquidity risk by maintaining adequate cash reserves from funds raised in the market and by
continuously monitoring forecast and actual cash flows. At 30 June 2023, no interest-bearing liabilities were owing. At 30
June 2022, the Company’s interest-bearing liabilities included the motor vehicle finance (Note 14) and a loan from a Director
related entity which was extinguished in August 2022.
The following are the Company’s contractual maturities of financial liabilities, including estimated interest payments and
excluding the impact of netting agreements:
30 June 2022 ($)
Interest Bearing
Non-interest bearing
Carrying amount
Contractual cash
flows
6 mths or
less
6-12
mths
1-2 years
2-5 years
555,000
673,449
1,228,449
555,000
505,000
673,449
1,228,449
673,449
1,178,449
50,000
-
50,000
-
-
-
-
-
-
30 June 2023 ($)
Carrying amount
Contractual cash
flows
6 mths or
less
6-12
mths
1-2 years
2-5 years
Interest Bearing
Non-interest bearing
-
348,445
348,445
-
348,445
348,445
-
348,445
348,445
-
-
-
-
-
-
-
-
-
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 the value of its holdings of financial instruments. The objective of market risk management
is to manage and control market risk exposures within acceptable parameters, while optimising the return. The Company
holds investments in listed securities, refer to Note 8.
64|Page
NOTE 24: FINANCIAL RISK MANAGEMENT (CONTINUED)
Currency Risk
The Company is not exposed to currency risk and at the reporting date the Company holds no financial assets or liabilities
which are exposed to foreign currency risk.
Commodity Price Risk
The Company operates primarily in the exploration and evaluation phase of gold projects and accordingly the Company’s
financial assets and liabilities are subject to minimal commodity price risk.
Interest Rate Risk
The Company is exposed to interest rate risk (primarily on its cash and cash equivalents), which is the risk that a financial
instrument’s value will fluctuate as a result of changes in the market interest rates on interest-bearing financial
instruments. The Company does not use derivatives to mitigate these exposures.
At balance date the Company did not have any cash held in term deposits. During the prior period, excess cash and cash
equivalents were held in short term deposit at interest rates maturing over 90 day rolling periods.
(i)
Fair value sensitivity analysis for fixed rate instruments
The Company does not account for any fixed rate financial assets and liabilities at fair value through profit or loss or
through equity, therefore a change in interest rates at the reporting date would not affect profit or loss or equity.
(ii)
Cash flow sensitivity analysis for variable rate instruments
A change of 500 basis points in interest rates at the reporting date would have increased (decreased) equity and profit or
loss by the amounts shown below. This analysis assumes that all other variables remain constant. The analysis is
performed on the basis of a change of 200 basis points for 2023.
30 June 2023
Variable rate instruments
30 June 2022
Variable rate instruments
Profit or loss
Equity
Increase
Decrease
Increase
Decrease
$
$
$
$
53,047
45,891
-
-
53,047
45,891
-
-
Decrease in rate assumes that the interest rate on the variable rate instruments declines to nil.
65|Page
NOTE 24: FINANCIAL RISK MANAGEMENT (CONTINUED)
Fair Values
Fair values versus carrying amounts
The fair values of financial assets and liabilities, together with the carrying amounts shown in the statement of financial
position are as follows:
30-Jun-23
Carrying amount
Fair value
$
$
Carrying
amount
$
30-Jun-22
Fair value
$
Cash and cash equivalents
1,583,488
1,583,488
917,830
917,830
Other receivables
Financial assets
33,301
33,301
34,832
34,832
276,838
276,838
-
-
Trade and other payables
(348,444)
(348,444)
Loan from director related entity
-
-
(673,449)
(500,000)
(673,449)
(500,000)
Borrowing - Vehicle Finance
-
- (55,000)
(55,000)
Employee benefits
(133,675)
(133,675)
(137,197)
(137,197)
1,411,508
1,411,508
- 412,984
- 412,984
Fair value measurement of financial instruments
Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three
levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the
measurement, as follows:
-
-
-
Level 1: quoted prices (unadjusted) in active markets for identical assets or liability.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly.
Level 3: unobservable inputs for the asset or liability.
Financial liabilities carrying value and fair values are determined using Level 3 inputs.
At 30 June 2023, the fair value of the listed shares held in Revolver Resources Ltd (ASX: RRR) was $276,838.
Capital Management
Capital is defined as the equity of the Company.
The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern,
so as to maintain a strong capital base sufficient to maintain future exploration and development of its projects.
The Company’s focus has been to raise sufficient funds through equity to fund exploration and evaluation activities. The
Company monitors capital requirements regularly and is not subject to externally imposed capital requirements. There
were no changes in the Company’s approach to capital management during the year. The Board considers capital
management at each Board meeting and mitigates risks when identified.
66|Page
NOTE 25: STATEMENT OF CASH FLOWS
2023
$
2022
$
Reconciliation of operating loss after income tax to net cash used in
operating activities
Loss after income tax
Add: Non-cash items
Depreciation
Share based payment expense
Impairment of exploration expenditure
Unrealised loss on financial assets
(Profit) on disposal of Palmer River tenements
Change in assets and liabilities
(Increase)/decrease in other current assets
Increase/(decrease) in operating payables
(1,943,726)
(1,828,544)
65,565
466,618
171,430
364,919
(766,134)
1,530
48,943
69,999
17,031
-
-
-
(9,596)
25,704
Increase/(decrease) in employee entitlements
(3,522)
(8,954)
Net cash used in operating activities
(1,594,376)
(1,731,360)
Non-cash investing and financing activities
There were no non-cash investing and financing activities during the current or prior period.
NOTE 26: EVENTS AFTER REPORTING DATE
Following the cessation of an employee with the Company in July 2023, 2,000,000 Unlisted Options lapsed.
Apart from the above, there has not been any other matter or circumstance that has arisen after the reporting 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.
67|Page
NOTE 28: NEW ACCOUNTING STANDARDS AND INTERPRETATIONS
Some accounting pronouncements which have become effective from 1 July 2022 and have therefore been adopted do
not have a significant impact on the Company’s financial results or position.
At the date of authorisation of these financial statements, several new, but not yet effective, Standards and
amendments to existing Standards, and Interpretations have been published by the AASB. None of these Standards or
amendments to existing Standards have been adopted early by the Company. Management anticipates that all relevant
pronouncements will be adopted for the first period beginning on or after the effective date of the pronouncement.
New Standards, amendments and Interpretations not adopted in the current year have not been disclosed as they are
not expected to have a material impact on the Company’s financial statements.
68|Page
DIRECTORS’ DECLARATION
1.
In the opinion of the Directors of Great Southern Mining Limited (the “Company”):
(a)
the accompanying financial statements and notes comply with the Corporations Act 2001 including:
(i) giving a true and fair view of the Company’s financial position at 30 June 2023 and of its
performance for the year then ended; and
(ii) complying with Australian Accounting Standards, the Corporations Regulations 2001,
professional reporting requirements and other mandatory requirements.
(b)
(c)
2.
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.
John Terpu
Executive Chairman
Perth, Western Australia
18 September 2023
69|Page
INDEPENDENT AUDITOR’S REPORT
To the Members of Great Southern Mining Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Great Southern Mining Limited (“the Company”) which comprises
the statement of financial position as at 30 June 2023, the statement of profit or loss and other
comprehensive income, the statement of changes in equity and the statement of cash flows for the year then
ended, and notes to the financial statements, including a summary of significant accounting policies, and the
directors’ declaration.
In our opinion, the accompanying financial report of the Company is 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 financial
performance for the year then ended; and
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Company in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and
Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (“the Code”) that are
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities
in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 1(u) in the financial report, which indicates that a material uncertainty exists that
may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not
modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have
determined the matter described below to be the key audit matters to be communicated in our report.
Key Audit Matter
How our audit addressed the key audit
matter
Carrying value of exploration and evaluation
expenditure
Refer to Note 11
The Company has capitalised exploration and
evaluation expenditure of $11,229,940 as at 30
June 2023.
Our audit procedures determined that the carrying
value of exploration and evaluation expenditure
was a key audit matter as it was an area which
required
those
charged with governance and was determined to be
of key importance to the users of the financial
statements.
the most communication with
Our procedures included but were not limited
to the following:
- We obtained an understanding of the key
processes
with
management’s review of the carrying
value of exploration and evaluation
expenditure;
associated
- We obtained evidence that the Company
has current rights to tenure of its areas of
interest;
- We substantiated a sample of additions
to exploration expenditure during the
year;
- We considered the potential existence of
indicators of impairment;
- We enquired with management and
reviewed ASX announcements and
minutes of Directors’ meetings to ensure
that the Company had not decided to
discontinue exploration and evaluation at
its areas of interest; and
- We examined the disclosure made in the
financial report.
Information Other than the Financial Report and Auditor’s Report Thereon
The directors are responsible for the other information. The other information comprises the information
included in the Company’s annual report for the year ended 30 June 2023, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Company to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Company or to cease
operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
−
−
−
−
−
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report
to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Company to cease to continue as a going
concern.
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in a
manner that achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats
or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
REPORT ON THE REMUNERATION REPORT
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the Directors’ Report for the year ended 30 June
2023.
In our opinion, the Remuneration Report of Great Southern Mining Limited for the year ended 30 June 2023
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
18 September 2023
M R Ohm
Partner
ASX ADDITIONAL INFORMATION
Additional information as required by the Australian Stock Exchange Limited Listing Rules and not disclosed
elsewhere in this report is set out below.
All information as at 6 September 2023 (Calculation Date) unless noted otherwise.
1.
1.1
Shareholder Information
As at Calculation Date the Company had 1,159 holders of Ordinary Fully Paid Shares.
Voting Rights
Subject to any rights or restrictions for the time being attached to any class or classes (at present there are none)
at general meetings of shareholders or classes of shareholders:
(a) each shareholder entitled to vote, may vote in person or by proxy, attorney or
representative;
(b) on a show of hands, every person present who is a shareholder or a proxy, attorney or
representative of a shareholder has one vote; and
(c) on a poll, every person present who is a shareholder or a proxy, attorney or representative
of a shareholder shall, in respect of each Fully Paid Share held, or in respect of which he/she
has appointed a proxy, attorney or representative, have one vote for the share, but in respect
of partly paid Shares shall have a fraction of a vote equivalent to the proportion which the
amount paid up bears to the total issue price for the Share.
Unlisted Options and Performance Rights do not carry any voting rights.
1.2
Distribution of Securities
Listed Shares
Unlisted Options
Performance Rights
Holding Between
Securities
100,001 and over
5,001 to 10,000
1,001 to 5,000
1 to 1,000
Total
Unmarketable Parcels
714,721,170
386,610
61,692
4,178
715,173,650
4,608,299
No. of
holders
Securities
No. of
holders
46
18
27
1,068 31,600,000
-
-
-
1,159 31,600,000
n/a
336
5
-
-
-
5
n/a
Securities
No. of holders
17,000,000
1
17,000,000
n/a
1
n/a
25,000,000 Unlisted Options with an exercise price of $0.07 each, expiring on or before 22 August 2025 were
issued on 22 August 2022. All remaining Unlisted Options were issued under the Company’s Long Term
Incentive Plan. Refer Note 18 of the Financial Statements.
All Performance Rights were issued to M. Keane. Refer Note 19 of the Financial Statements.
No securities are subject to escrow.
74|Page
ASX ADDITIONAL INFORMATION (CONTINUED)
1.3
Substantial Holders:
The following holders of securities are recorded as substantial holders:
Fully Paid Ordinary Shares
Rank
Name
No. Held
%
1 VALLEYROSE PTY LTD
2 DANNY TAK TIM CHAN
138,536,222
19.37%
50,006,323
6.99%
3 VALLEYBROOK INVESTMENTS PTY LTD
38,707,815
5.41%
4 ADMARK INVESTMENTS PTY LTD
36,473,685
5.10%
Twenty largest quoted security holders
The names of the twenty largest holders of quoted securities are listed below:
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Name
VALLEYROSE PTY LTD
DANNY TAK TIM CHAN
VALLEYBROOK INVESTMENTS PTY LTD
ADMARK INVESTMENTS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MR ROGER BLAKE + MRS ERICA LYNETTE BLAKE
MOUNT STREET INVESTMENTS PTY LTD
BNP PARIBAS NOMS PTY LTD
ANYSHA PTY LTD
MCNEIL NOMINEES PTY LIMITED
GARBUTT INVESTMENT PTY LTD
MR COLIN WEEKES
BUCKINGHAM INVESTMENT FINANCIAL SERVICES PTY LTD
NO BULL HEALTH PTY LTD
MR RUPERT JAMES GRAHAM LOWE
MR ADAM ANDREW MACDOUGALL
MR ADAM ANDREW MACDOUGALL
KESLI CHEMICALS PTY LTD
BNP PARIBAS NOMINEES PTY LTD
MR COLIN WEEKES
Totals: Top 20 holders of FULLY PAID ORDINARY SHARES (Total)
Units
138,536,222
50,006,323
38,707,815
36,473,685
31,765,000
20,000,000
14,708,754
14,559,012
13,889,006
13,523,810
10,000,000
9,746,183
9,500,000
9,000,000
8,667,311
8,615,902
8,600,000
7,600,000
7,596,820
6,190,001
457,685,844
% Units
19.37
6.99
5.41
5.10
4.44
2.80
2.06
2.04
1.94
1.89
1.40
1.36
1.33
1.26
1.21
1.20
1.20
1.06
1.06
0.87
64.00
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ASX ADDITIONAL INFORMATION (CONTINUED)
Unquoted securities on issue at the Calculation Date per expiry date are below:
Unlisted Options
Expiry Date
31/12/23
30/06/24
05/10/24
29/03/25
05/10/25
29/03/26
05/10/26
29/03/27
22/08/25
Performance Rights
Exercise Price ($)
$0.20
$0.10
$0.10
$0.10
$0.10
$0.10
$0.10
$0.10
$0.07
Number on Issue
600,000
250,000
1,500,000
1,250,000
1,000,000
500,000
1,000,000
500,000
25,000,000
31,600,000
17,000,000 Performance Rights are on issue at the Calculation Date. For further details, refer to Note 19 to the
Financial Statements.
1.4
Share Buy-Backs
There is no current on-market buy-back scheme.
1.5
Securities Purchased On-market
There were no securities purchased on-market per ASX Listing Rule 4.10.22 during the reporting period.
2.
Other Information
Great Southern Mining Limited, incorporated and domiciled in Australia, is a public listed Company limited by
Shares.
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3. Tenement Schedule
Tenement
% Interest
Grant date
Expiry date
Tenement Area
km2
Western Australia
M38/1256
E38/2829
G38/38
L38/349
L38/328
E38/3501
M38/1299
E38/3476*
P38/4523*
P38/4524*
P38/4525*
E38/3723
E38/3825*
E38/3826*
E38/3827*
E38/3828*
E38/3518*
E38/3362
E38/3363
E38/3364
E38/3662
E38/3801
P38/4542*
E38/3834*
E09/2900*
E38/3831*
E38/3829*
E09/2912*
E38/3840*
E09/2895*
E38/3837*
E09/2904*
E09/2908*
Queensland
EPM 18986
EPM 25196
EPM 26527
EPM 26810
EPM 27130
EPM 27131
EPM 27506
EPM 27450
EPM 27944
EPM 28571
EPM 28596
EPM 27460
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
03/09/12
23/12/13
01/07/21
19/04/21
18/11/20
17/02/21
11/04/22
10/09/20
04/03/21
23/02/21
04/03/21
17/02/21
28/04/21
03/07/19
28/04/21
12/04/22
13/12/12
03/03/14
23/08/17
17/07/18
24/09/19
24/09/19
30/11/20
03/06/21
06/04/22
0.6
1
0.1
0.2
0.04
210
0.6
1
1
1
1
54
60
135
210
2
150
9
89
185
227
317
233
121
25
02/09/33
22/12/23
08/07/42
18/04/42
17/11/41
16/02/26
10/04/43
09/09/25
03/03/25
22/02/25
03/03/25
Pending grant
Pending grant
Pending grant
Pending grant
Pending grant
16/02/25
28/04/26
02/07/24
28/04/26
11/04/27
Pending grant
Pending grant
Pending grant
Pending grant
Pending grant
Pending grant
Pending grant
Pending grant
Pending grant
Pending grant
Pending grant
Pending grant
11/12/27
01/03/26
21/08/27
15/07/23
22/09/24
22/09/24
28/11/25
01/06/26
05/04/27
Pending grant
Pending grant
28/09/25
30/09/20
* Tenement held by East Laverton Exploration Pty Ltd, a wholly owned subsidiary of Great Southern Mining Ltd.
320
77|Page
Mineral Resource Statement
The 2021 Mineral Resource estimate for the Mon Ami Gold Project is shown below.
Classification
Cut-ff Grade
Tonnage
Indicated
Inferred
Total
g/t Au
0.5
0.5
0.5
Mt
1.41
0.15
1.56
Grade
g/t Au
1.16
0.61
1.11
Metal
Oz Au
52,500
3,000
55,500
In relation to the Mineral Resource Statement, the Company confirms that all material assumptions and
technical parameters that underpin the relevant market announcement continue to apply and have not
materially changed. Refer to Page 15 of the Annual Report for the Competent Persons Statement. Further
information can be found in the ASX announcement of 21 July 2021.
4.
Other Additional Information
Corporate Governance:
The Company’s Corporate Governance Statement for 30 June 2023 as approved by the Board can be viewed at
www.gsml.com.au
Company Secretary:
The name of the Company Secretary is Mark Petricevic.
Address and telephone details of the Company’s Registered Office:
Suite 4, 213 Balcatta Rd
Balcatta WA 6021
T: 08 9240 4111
Share Register:
Computershare Investor Services
Level 17
221 St Georges Terrace
Perth WA 6000
Telephone (within Australia): 1300 850 505
Telephone (outside Australia): +61 3 9415 4000
Email: web.queries@computershare.com.au
Website: www.investorcentre.com.au
Review of Operations:
A review of operations is contained in the Directors Report.
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