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GREAT SOUTHERN MINING LIMITED
ABN 37 148 168 825
Annual Report
For the Year Ended 30 June 2024
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TABLE OF CONTENTS
Corporate Directory
2
Chairman’s Letter
3
Review of Operations
4
Directors’ Report
15
Auditor’s Independence Declaration
28
Corporate Governance Statement
29
Consolidated Statement of Profit or Loss and Other Comprehensive Income
30
Consolidated Statement of Financial Position
31
Consolidated Statement of Cash Flows
32
Consolidated Statement of Changes in Equity
33
Notes to the Consolidated Financial Statements
34
Consolidated Entity Disclosure Statement
61
Directors’ Declaration
62
Independent Auditor’s Report
63
ASX Additional Information
67
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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:
(08) 9240 4111
Facsimile:
(08) 9240 4054
Email:
admin@gsml.com.au
Website:
www.gsml.com.au
Solicitors
Allion Partners Pty Ltd
863 Hay Street
Perth WA 6000
Auditors
HLB Mann Judd
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,
On behalf of the Great Southern Mining (“GSN” or the “Company”) and its Board of Directors it is my
pleasure to present to you the 2024 Annual Report.
Firstly, I would like to highlight some of GSN’s achievements from the second half of 2023. Clearly, last
year was a challenging year for the ASX junior gold exploration sector. Hence, GSN made a pointed
decision to conserve capital and limit exploration activities to targeted, low meterage, but value accretive
drilling programs at the 100% owned Duketon Gold Project. Significant outcomes included:
Southern Star gold mineralisation extended down dip by more than 65m, with an intercept of
13m at 2.52 g/t Au from 144m in hole 23SSRC0041
New gold mineralisation intercepted up to 1.2km north of Southern Star, with an intercept of 13m
at 2.16 g/t Au from 57m in hole 23SSRC010
Golden Boulder prospect main zone mineralised trend extended to a 1.6km strike, including an
intercept of 12m at 1.3 g/t Au from 48m in hole 23GBAC0222
Golden Boulder east zone mineralisation now defined over 1km, including an intercept of 8m at
3.9 g/t Au from 44m in hole 23GBAC008
Another key highlight for 2023, was the signing of an earn-in agreement with global gold major, Gold
Fields Ltd, on the Company’s 1,750km2 Edinburgh Park Project in Queensland. Gold Fields Ltd have the
option to spend up to A$15 million over six years to earn a 75% interest in the project, with a minimum
expenditure commitment of A$2.5 million in the first two years. In addition, Gold Fields Ltd subscribed
for $1 million of GSN shares at A$0.026/share representing an 11% premium to the previous closing
price3.
In 2024, we have commenced the transition from the discovery phase to the resource definition stage at
the Duketon Gold Project. We have three advanced prospects; all located on endowed gold hosting
structures, all with +4km mineralised gold anomalies and all with high grade intercepts (Namely,
Southern Star, Golden Boulder and Amy Clarke). We are undertaking a targeted drill program at Golden
Boulder throughout August 2024 and continue to advance other target areas for future drilling programs.
Exploration of the Edinburgh Park Project is being managed and led by the highly skilled and well-
credentialled team at Gold Fields Ltd. Both companies see the potential for major gold-copper-silver
discoveries on this significantly under-explored tenure which, upon commencement of this Joint Venture,
it will receive worthy exploration investment for the first time.
In addition, the Company will continue to explore new strategic opportunities, including asset acquisitions
and divestments and value accretive partnerships.
Finally, can I please encourage shareholders and interested investors to use our InvestorHub platform
to post questions on our website, which will be answered personally by either myself or our Managing
Director, Matthew Keane (please use the following InvestorHub link: https://investorhub.gsml.com.au/).
Your Sincerely,
John Terpu
Executive Chairman
1 See GSN’s ASX announcement dated 31 January 2024
2 See GSN’s ASX announcement dated 16 May 2024
3 See GSN’s ASX announcement dated 9 October 2023
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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 2024 and is well placed to continue to advance its projects along the value curve.
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 environmentally and socially responsible manner. No
environmental incidents were recorded during the Financial Year.
A summary of the Company’s projects and main exploration activities during the period are provided
below.
Duketon Gold Project, Western Australia (100% GSN)
Great Southern Mining holds Exploration Licences totalling 388km2 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 circa
10Moz 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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The 2024 Financial Year marked an intensive phase of target generation and ground truthing involving
both incumbent GSN geologists and consultant geologists with a vast knowledge of gold mineralisation
styles in the Duketon Belt (refer to GSN ASX announcements dated 5 May 2024 and 18 January 2023).
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 mine (Figure 1). To
date, Southern Star has only been shallow drilled with most holes ending less than 160m below ground
surface. Better results from previous drill campaigns include4:
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
A 3,155 metre (21 hole) RC drilling program was completed in December 2023, aimed at testing depth
extensions to the main zone of mineralisation at Southern Star, and to test new targets identified from
geochemical anomalies and geophysical, structural interpretation. These included zones to the north,
along an interpreted offset of the Southern Star main zone host stratigraphy, and to the west, along the
interpreted stratigraphic trend that hosts Regis Resources’ Ben Hur deposit (located approximately three
kilometres north of Southern Star).
Southern Star Depth Extensions
A limited number of holes were drilled below known mineralisation to test for depth extensions to the
main zone of mineralisation at Southern Star. Hole 23SSRC002 successfully pulled down the known
mineralisation envelope by 65 metres, with the mineralised shear still visible in step-back hole
23SSRC003, a further 35 metres down plunge.
Hole 23SSRC004 extended the mineralisation 40 metres down plunge and remains open at depth.
Intercepts from holes 23SSRC002 and 23SSRC004 included:
2m at 2.74g/t Au from 126m and 13m at 2.52 g/t Au from 144m, including 4m at 6.91 g/t Au
in hole 23SSRC004 (refer Figure 3), and
3m at 1.93 g/t Au from 76m and 9m at 3.66 g/t Au from 159m, including 6m at 4.63 g/t Au in
hole 23SSRC002.
Northern Extension
Broad spaced drilling to the north of Southern Star returned two promising high-grade gold intercepts
located 1.2 kilometres and 0.8 kilometres (Figure 2) respectively from the Southern Star main zone. Best
results included:
13m at 2.16 g/t Au from 57m, including 3m at 4.39 g/t Au in hole 23SSRC010, and
3m at 4.33 g/t Au from 127m, including 1m at 9.94 g/t Au in hole 23SSRC008.
4 Refer to GSN ASX announcements dated 2 August 2021, 5 October 2021 and 11 October 2021
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Holes 23SSRC008 and 23SSRC010 are located some 440 metres apart with only one line of shallow
(<63 metres depth) aircore drilling in-between. There is limited historical drilling along the favourable
magnetic high trend from hole 23SSRC008 to the Southern Star main zone, with only one hole drilled
below 100 metres depth. This provides an exciting follow-up target zone for future drill programs.
Figure 2 – 2023 RC drill hole locations at the Southern Star prospect showing better intercepts and relative distances
between know mineralisation and emerging zones of mineralisation. (NSR denotes no significant results from drilled
hole).
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Figure 3 – Cross section across of the main zone of mineralisation at Southern star on Northing 6,880,600 showing
drillhole 23SSRC004
Golden Boulder prospect
Drilling at the Duketon Project recommenced in August 2024 starting at the Golden Boulder prospect
(Figure 4). Golden Boulder sits on a prominent north-south structural trend that is host to multiple gold
deposits including Rosemont (>2Moz), Baneygo (~380koz) and Ben Hur (~390koz). The Golden Boulder
area has over 50 historical working over a three-kilometre stretch, with historical production recorded at
1,915 tonnes at 28.6 g/t Au for 1,761 ounces of gold (see WAMEX report A85278).
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Historic drilling at Golden Boulder is sparse and shallow, with very few holes penetrating beyond 40m
depth. Prior to GSN’s 2021 RC (2,777m) and 2023 air core (3,068m) programs, virtually no drilling has
been conducted at this prospect since 1995.
Mineralisation has been delineated along three parallel trends, denoted as the Main line, East line and
Ogilvies.
Figure 4 - Three identified gold trends at Golden Boulder with limited drilling to date, showing that prospective trends
continue to the south and are untested due to the presence of ferruginous hard cap.
Amy Clarke prospect
The Amy Clarke area is interpreted to host approximately 12 kilometres of the Erlistoun and Garden Well
structural trends. GSN previously defined up to five kilometres of gold and indicator element surface
anomalism just ~3.5 kilometres south of Regis Resources’ Erlistoun open pit (320koz at 1.8 g/t Au).
Broad spaced reconnaissance air core drilling of this zone in 2021 returned several >1 g/t gold intercepts,
including a high-grade intercept of 8m @ 6.7g/t Au, including 4m @ 12.5 g/t Au from 32m in hole
21ACAC0147. A 2024 soil geochemical survey has expanded the prospectivity of the Amy Clarke area
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with at least three new gold-in-soil anomalies identified along the Garden Well Trend. Mapping has
commenced over the anomalous areas and geology noted to-date along this trend is analogous with
known styles of gold mineralisation, with NW–SE fault structures intersecting the main regional
structures. Chert breccias and boudinaged cherts are developed along sheared ultramafic–sedimentary
lithological boundaries – a favourable environment for gold precipitation.
Figure 5 - Gold-in-soil geochemical heat map of the Amy Clarke area showing the previously defined 5-kilometre-
long gold anomaly (refer to ASX GSN announcement dated 8 November 2022) along the interpreted Erlistoun trend
and newly defined geochemical anomalies over the interpreted Garden Well trend.
New target areas
Several new target areas were the subject to soil geochemistry surveys where new gold anomalies were
defined in the northeast of the Amy Clarke prospect along the interpreted Garden Well mineralised trend
(host to Regis Resources’ ~5Moz Garden Well deposit). Additionally, the prospectivity of the new
Boundary prospect was enhanced with surface sampling recording gold anomalism up to 10 times
greater than other prospects located on GSN’s tenure. Boundary is located south of Amy Clarke, also
along the Garden Well trend.
Boundary Prospect
GSN commenced work on the Boundary prospect in 2024 after it was favoured as a high-ranking target
by both incumbent and consultant geologists. Key attributes of the Boundary area include historical gold
intercepts (including 2m @ 1.4 g/t from 14m) from sparse shallow drilling, as well as observed and
interpreted cross-cutting structures on the main Garden Well structure. Field mapping highlighted several
gossans and ironstones overlying sheared ultramafic olivine cumulate rocks with asymmetrical quartz
boudins. Soil geochemical surveys completed in 2024 defined surface gold anomalism over key areas
of geological interest, including major structures mapped at surface.
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Edinburgh Park Project, North Queensland (100% GSN, Gold Fields option to earn 75%)
The Edinburgh Park Project is a province scale opportunity prospective for gold-copper porphyry
systems, both high and low epithermal gold systems and intrusive related gold systems. The project is
located approximately 100km south-east of Townsville in Queensland and encompasses an area of
~1,750km2 surrounding the high sulphuration epithermal Mt Carlton gold-silver-copper mine (Figure 6).
In October 2023, the Company entered into a binding Option and Joint Venture Agreement with G Ex
Australia Pty Ltd, a wholly owned subsidiary of Gold Fields Ltd (Gold Fields), on the Edinburgh Park
Project. Under the agreement, Gold Fields can sole fund up to A$15 million exploration expenditure over
a six-year period to earn a 75% interest in the project5.
In conjunction with the earn-in agreement, Gold Fields, through its wholly owned subsidiary G Ex
Australia Pty Ltd, subscribed for 38.5 million Ordinary Shares in GSN, valued at A$1 million.
After formalising the earn-in agreement, Gold Fields commenced geophysical surveys over key target
areas, including ground Induced Polarisation (IP) and ground Gravity surveys. Drilling is expected to
commence in Financial Year 2025.
In FY24, two abutting licence applications were granted, EPM 28571 and EPM 28596. These tenements
are also prospective for epithermal gold-silver-copper and porphyry gold-copper deposits.
Figure 6 - Map of the Edinburgh Park Project showing targets defined to date and the location of the newly granted
Mt Abbott license.
5 Refer to GSN ASX announcement dated 9 October 2023
Newly Granted
Licenses
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East Laverton Nickel Project, Western Australia (100% GSN)
The East Laverton Nickel Project comprises four granted exploration licences covering an area of
405km2, located approximately 35km from the town of Laverton (Figure 7). 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 mineralisation and lateritic nickel mineralisation.
In addition, the Company’s tenure incorporates over 20 kilometres of interpreted ultramafic stratigraphy
within the Granite Well, Rotorua and Curara trends. These trends are considered prospective for
Kambalda style komatiitic nickel 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 from historic drilling (hole
EIC001, WAMEX A48007).
Figure 7 – East Laverton Nickel Project incorporating the Diorite Hill intrusive complex, the Granite Well Ultramafic
Trend and the Rotorua Ultramafic Trend. Historic drill results from previous tenement holders highlight areas of
nickel anomalism both within the Diorite Hill Complex and adjacent to the Rotorua Trend. Green stars represent
electromagnetic targets drilled in early 2022.
Next Steps
It is envisaged that the next phase of work for the East Laverton Project will comprise ground
electromagnetic (EM) surveys over the Rotorua Complex. Historically, this trend has had very little nickel
exploration, however bottom of hole assays, recorded in limited shallow drilling to the west by gold
explorer Newmont Corp, have shown elevated nickel grading 0.2% to 0.4% on each drill line leading up
to the ultramafic stratigraphy (see Figure 7 above).
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Mon Ami Gold Project, Western Australia (100% GSN)
The advanced Mon Ami Gold Project incorporates five licences centred by a permitted Mining Licence
containing a JORC (2012) Mineral Resource of 1.56Mt at 1.11 g/t Au for 55.5 koz contained gold.
Aboriginal heritage and flora and fauna surveys have been completed over the Mining Licence. The
project is strategically positioned in the centre of at least three gold processing facilities in the Laverton
region.
The 2021 Mineral Resource estimate for the Mon Ami Gold Project is shown below.
Classification
Cut-ff Grade
Tonnage
Grade
Metal
g/t Au
Mt
g/t Au
Oz Au
Indicated
0.5
1.41
1.16
52,500
Inferred
0.5
0.15
0.61
3,000
Total
0.5
1.56
1.11
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. Further information can be found in the ASX announcement of 21 July 2021.
During the current financial year, a soil program was conducted at the Mon Ami Project to test for a
potential eastern offset to the main Mon Ami deposit. No significant anomalies were detected from this
program. Additional geochemistry programs are in-process over target areas defined by structural
interpretation.
CORPORATE MATTERS
Result of Operations
The Company’s net assets increased 4.3% from the year ended 30 June 2023, predominately due to the
value accretive exploration programs undertaken at the Duketon Gold Project. The Company held $1.11
million in cash and cash equivalents at 30 June 2024 (versus $1.58 million at 30 June 2023).
Operating cash outflows for the period totalled $1.30 million (2023: outflow of $1.59 million) with cash
outflows from investing activities totalling $1.41 million (2023: outflow of $1.88 million).
We note the emphasis of matter paragraph regarding the going concern assumption included in the
Auditor’s Report, refer to Note 1(r) 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 $1.99 million (2023: loss of $1.94 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 2024 net loss also includes significant non-cash costs including
share-based payments expenditure of $0.26 million (2023: $0.47 million) and an unrealised loss relating
to the fair value reduction in securities held in Revolver Resources Holdings Limited of $0.13 million
(2023: $0.36 million).
Placements and Fundraising
In October 2023, in conjunction with the earn-in agreement (mentioned previously in this report), Gold
Fields Ltd, through its wholly owned subsidiary G Ex Australia Pty Ltd, subscribed for 38.5 million shares
in GSN at $0.026 each, raising $1.00 million.
In April 2024, the Company announced a share placement of shares to sophisticated and professional
investors to raising $1.24 million (before costs). In addition, at a general meeting held in June 2024,
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certain Directors of the Company received approval to participate in the April placement on the same
terms and conditions, raising $0.56 million with $0.50 million of this amount received on 3 July 2024.
Divestment of non-core assets
During the year the company did not divest any non-core assets. The prior periods result include the
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. The balance of the Revolver Resources Holdings Limited (ASX: RRR) shares
received as part of the transaction have a fair value of $0.085 million at the date of this report.
Future Prospects
As discussed elsewhere in the Review of Operations Report, the Company plans to undertake additional
exploration programs on its Western Australian projects and Queensland project, with the Company
having entered an Option and Joint Venture Agreement with Gold Fields Ltd on The Edinburgh Park
Project. 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.
Business Risks
As is common with most mineral exploration companies, Great Southern Mining Limited is subject to
several 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
categorised as:
• commodity price volatility risks;
• currency exchange rate risks;
• market risks;
• liquidity risks;
• credit risks; and
• material changes to state and federal legislation, pertaining to exploration activities.
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 22 to the Financial Statements.
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Competent Person and Forward-Looking Statements
Project
Competent Person
Professional
Institute
Southern Star, Duketon Gold Project, East Laverton
Nickel Project
Rachel Backus
MAIG
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 2024.
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. On 26 March 2024, Mr Keane was appointed a
non-executive director of Global Uranium and Enrichment Limited (ASX: GUE). 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 around fifteen 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 over twenty five 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 resigned as Executive Director of Javelin Minerals Limited on 29 February 2024 and as Non-
executive Director of Unith Limited on 27 March 2024. Both companies are listed on the ASX. No other
public company directorships were held in the previous three years.
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Mark Petricevic B.Com, CA, AGIA, GAICD - Company Secretary
(Appointed 30 April 2018)
Mark is a Chartered Accountant with over twenty years’ experience in accounting, financial reporting,
governance, risk management, audit and corporate advisory services including four years as an Audit
and Assurance Partner.
Directors’ Meetings
The number of meetings of the Company’s Board of Directors attended by each Director during the year
ended 30 June 2024 was as follows:
Number of Board
Meetings Held Whilst
in Office
Number of Board
Meetings Attended
J. Terpu
13
13
A. Caruso
13
13
M. Blake
13
13
M. Keane
13
13
Interests in the shares, options and performance rights 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)
Balance Held
J. Terpu
210,032,852
M. Blake
15,500,000
M. Keane
4,542,767
A. Caruso
900,000
No ordinary shares were granted during the period as compensation.
Listed Options
No Listed Options were held at the date of this report and no Listed Options were granted during the
period as compensation.
Unlisted Options
The following Unlisted Options were issued on 4 July 2024 following approval at the general meeting
held 21 June 2024.
Balance Held
J. Terpu
15,000,000
M. Blake
5,000,000
A. Caruso
5,000,000
The Unlisted Options have an exercise price of $0.05 each and have an expiration date of 21 June 2027.
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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.
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
Performance
Rights
Tranche 1
Performance
Rights
Tranche 2
Performance
Rights
Tranche 3
Number of Rights
1,000,000
1,000,000
5,000,000
5,000,000
5,000,000
Exercise price
Nil
Nil
Nil
Nil
Nil
Grant date
19-09-22
19-09-22
19-09-22
19-09-22
19-09-22
Start of performance
period
19-09-22
19-09-22
19-09-22
19-09-22
19-09-22
Vesting date
19-09-23
19-09-24
n/a
n/a
n/a
Performance period
(years)
2.08
2.08
2.08
2.08
2.08
Remaining performance
period (years)
0.21
0.21
0.21
0.21
0.21
Expiry date
14-10-24
14-10-24
14-10-24
14-10-24
14-10-24
Share price at grant date
$0.0340
$0.0340
$0.0340
$0.0340
$0.0340
Vesting conditions
Refer Note 1
Refer Note 2
Refer Note 3
Refer Note 4
Refer Note 5
Risk-free rate
3.0%
3.0%
3.0%
3.0%
3.0%
Share price volatility
77.4%
77.4%
77.4%
77.4%
77.4%
Market capitalisation
target (calculated on
20day VWAP)
n/a
n/a
$40m
$80m
$120m
Value per Right
$0.0340
$0.0340
$0.0159
$0.0081
$0.0048
Fair Value at Grant Date
$34,000
$34,000
$79,500
$40,500
$24,000
Amount recognised
during the period
$6,351
$17,000
$39,750
$20,250
$12,000
Total amount recognised during the period was $95,351.
Notes:
1. Vested and exercised during the year.
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.
In September 2023, 1,000,000 Ordinary Shares were issued on the exercise of Tranche 1 of the Loyalty
Rights above. The balance of Performance Rights on issue is 16,000,000.
18|Page
Details of Unlisted Options issued by the Company to other Key Management Personnel and
employees during or since the end of the financial year are:
30 June 2024
30 June 2023
No.
No.
Opening Balance
14,350,000
16,050,000
Issued during the period
3,000,000
-
Cancelled / Lapsed during the period
(850,000)
(1,700,000)
Exercised during the period
-
-
Closing Balance
16,500,000
14,350,000
No Ordinary Shares have been issued as a result of the exercise of Unlisted Options during the period.
In May 2024, 3,000,000 Unlisted Options were issued under the Company’s Long-Term Incentive Plan
to employees and contractors. The Unlisted Options have an exercise price of $0.028 each and have an
expiration date of 25 May 2026.
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.
In October 2023, the Company entered into a binding Option and Joint Venture Agreement with G Ex
Australia Pty Ltd, a wholly owned subsidiary of Gold Fields Ltd (Gold Fields), on the Edinburgh Park
Project. Under the agreement, Gold Fields can sole fund up to A$15 million exploration expenditure over
a six-year period to earn a 75% interest in the project6. In conjunction with the earn-in agreement, Gold
Fields, through its wholly owned subsidiary G Ex Australia Pty Ltd, subscribed for 38.5 million Ordinary
Shares in GSN, valued at A$1 million. The subscription price was $0.026 per share.
There were no other 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 $1,991,711 (2023: $1,943,726).
The Operating and Financial Review, included in the full review of operations, can be found immediately
preceding this Directors’ Report.
6 Refer to GSN ASX announcement dated 09/10/2023
19|Page
Significant changes in the state of affairs
Share capital increased by $2.2 million (before issue costs) as a result of the following placements:
-
In October 2023, 38.5 million shares were issued as part of the Option and Joint Venture
Agreement with a wholly owned subsidiary of Gold Fields Ltd, raising $1.0 million.
-
In April 2024, the Company completed a share placement to sophisticated and professional
investors raising A$1.24 million (before costs). The Placement comprised the issue of 69.1
million fully paid Ordinary shares at a price of $0.02 per share (Placement Shares).
-
Further to the Share Placement in April 2024, certain Directors of the Company participated in
the Placement following shareholder approval at a general meeting held 21 June 2024. On 3
July 2024, $0.56 million was raised through the Director share allotment of 28.1 million shares
at $0.02 per share.
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
On 4 July 2024, the Company issued the Shares and Unlisted Options to certain Directors of the
Company following approval at the Company’s general meeting held 21 June 2024.
At the Extraordinary General Meeting of the Company, held 21 June 2024, shareholders approved the
issue of the following Fully Paid Ordinary Shares (the ‘Securities’) to the following Directors of the
Company:
Directors
Shares Issued
Matthew Keane
2,600,000
Matthew Blake
500,000
John Terpu
25,000,000
Total
28,100,000
The shares were issued on 4 July 2024 with $0.5 million received after 30 June 2024.
In addition to the above, following approval at the same general meeting held 21 June 2024, the
Company issued the following Unlisted Options:
Number issued
Expiry
Years
(from date of
issue)
Exercise Price
Fair value per
security
J. Terpu
15,000,000
3
$0.05
$0.0048
M. Blake
5,000,000
3
$0.05
$0.0048
A. Caruso
5,000,000
3
$0.05
$0.0048
The Unlisted Options have an exercise price of $0.05 each and have an expiration date of 21 June 2027.
On 18 July 2024, the Company announced that it was successful in its application for participation in
the Australian Federal Government’s Junior Minerals Exploration Incentive (“JMEI”) scheme for the
2024/2025 financial year with up to $1.48 million JMEI credits able to be issued.
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.
20|Page
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 2024.
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 2023 Annual General Meeting
The Company received more than 98.8% of “yes” votes from eligible shareholders on its remuneration
report for 2023. 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 28 and forms part of this directors’ report for the year
ended 30 June 2024.
Non-Audit Services
No amounts were paid or payable to the auditor for non-audit services provided during the year.
21|Page
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 2024. 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).
A. Caruso (Non-executive Director appointed 26 April 2018).
M. Blake (Non-executive Director appointed 21 July 2021).
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.
22|Page
Remuneration report (continued)
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 2024, no such committees were in place. All Non-executive
Directors were paid Director fees of $50,000 each plus statutory superannuation entitlements.
Senior Manager and Executive Remuneration
Remuneration consists of fixed remuneration and variable remuneration (comprising short-term and
long-term incentive schemes).
Fixed Remuneration
Fixed remuneration is reviewed annually by the Board of Directors. The process consists of a review of
relevant comparative remuneration in the market and internally and, where appropriate, external advice
on policies and practices. The Board has access to external, independent advice where necessary.
Variable Remuneration
A long-term incentive (LTI) plan was adopted by shareholders of the Company at the general meeting
of members held 22 November 2023. A summary of the terms of the LTI are available on the Company’s
website at https://gsml.com.au/about/governance/ .
As an exploration company, the Board does not consider the profit/(loss) attributable to shareholders as
one of the performance indicators when implementing STI payments. The Board considers exploration
success, the effective management of safety, environmental and operational matters and the acquisition
and consolidation of high-quality landholdings, as more appropriate indicators of management
performance.
No STI’s are payable to Executives where it is considered that the actual performance has fallen below
the minimum requirement.
No short-term incentives (STIs) were paid to any KMP’s during the financial years ended 30 June 2023
and 30 June 2024.
Service Agreements
Remuneration and other terms of employment for the Executive Directors and other Key Management
Personnel are formalised in a Service Agreement. The major provisions of the agreements relating to
remuneration are set out below:
Employee
Base salary ($)
inclusive of
superannuation
Term of agreement
Notice period
J. Terpu
$222,000
Until termination
6 months
M. Petricevic
$194,250
Until termination
Up to 6 months
M. Keane
$298,175
Until termination
6 months
23|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
2024
200,000
-
7,815
6,154
22,000
9,284
72,450
317,703
-
2023
200,000
-
6,470
-
(4,615)
21,000
3,889
-
226,744
-
K. Bozanic*
Non-Executive
Director
2024
-
-
-
-
-
-
-
-
-
2023
12,500
-
-
-
1,313
-
-
13,813
-
A. Caruso
Non-Executive
Director
2024
50,000
-
-
-
5,500
-
24,150
79,650
-
2023
50,000
-
-
-
5,250
-
-
55,250
-
M. Blake
Non-Executive
Director
2024
50,000
-
-
-
5,500
-
24,150
79,650
-
2023
50,000
-
-
-
5,250
-
-
55,250
-
M. Keane
Managing
Director
2024
268,475***
-
982
4,673
29,700
1,449
92,447
397,726
23%
2023
207,692
-
-
4,554
21,808
155
84,219
318,428
26%
Total
2024
568,475
-
8,797
10,827
62,700
10,733
213,197
874,729
23%
2023
520,192
-
6,470
-
61
54,621
4,044
84,219
669,485
26%
Other Key Management Personnel
M Petricevic
Company
Secretary/CFO
2024
175,000
-
3,665
5,792
19,250
7,548
24,794
236,049
11%
2023
175,000
-
2,890
6,377
18,375
4,478
45,465
252,585
18%
Total to KMP
2024
743,475
-
12,462
16,619
81,950
18,281
237,991
1,110,778
22%
2023
695,192
-
9,360
6,316
72,996
8,522
129,684
922,070
14%
* K Bozanic resigned 19 September 2022.
** 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.
*** Amount includes salary sacrifice arrangements for a novated lease agreement entered with a third party on a personal motor vehicle.
24|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
The following Unlisted Options were issued to Key Management Personnel during the period:
Issue
Date
24/5/24
Tranche
Vesting
conditions
Exercise period /
Expiry
Expiry Years
(from date of
issue)
Exercise
Price
CFO
Fair value
per security
1
Employed 12
months post issue
24 months after
vesting or at
cessation of
employment
2
$0.028
1,500,000
$0.01
In addition, the following Unlisted Options were issued to the Directors below following approval at the Company’s
general meeting held 21 June 2024.
Number issued
Expiry Years
(from date of
issue)
Exercise Price
Fair value per
security
J. Terpu
15,000,000
3
$0.05
$0.0048
M. Blake
5,000,000
3
$0.05
$0.0048
A. Caruso
5,000,000
3
$0.05
$0.0048
The Unlisted Options have an exercise price of $0.05 each and have an expiration date of 21 June 2027.
The following Unlisted Options were issued to Key Management Personnel during the prior period:
Issue
Date
29/03/22
Tranche
Vesting
conditions
Exercise
period / Expiry
Expiry
Years (from
date of
issue)
Exercise
Price
CFO
Fair value
per
security
1
Employed 12
months post
issue
24 months after
vesting or at
cessation of
employment
3
$0.10
500,000
$0.022
2
Employed 24
months post
issue
24 months after
vesting or at
cessation of
employment
4
$0.10
500,000
$0.027
3
Employed 36
months post
issue
24 months after
vesting or at
cessation of
employment
5
$0.10
500,000
$0.030
1,500,000
All Unlisted Options on issue do not entitle the holder to participate in any share issue of the Company.
25|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
Loyalty
Rights
Tranche 1
Loyalty
Rights
Tranche 2
Performance
Rights
Tranche 1
Performance
Rights
Tranche 2
Performance
Rights
Tranche 3
Number of Rights
1,000,000
1,000,000
5,000,000
5,000,000
5,000,000
Exercise price
Nil
Nil
Nil
Nil
Nil
Grant date
19-09-22
19-09-22
19-09-22
19-09-22
19-09-22
Start of performance
period
19-09-22
19-09-22
19-09-22
19-09-22
19-09-22
Vesting date
19-09-23
19-09-24
n/a
n/a
n/a
Performance period
(years)
2.08
2.08
2.08
2.08
2.08
Remaining
performance
period (years)
n/a
0.21
0.21
0.21
0.21
Expiry date
14-10-24
14-10-24
14-10-24
14-10-24
14-10-24
Share price at grant
date (cents per share)
0.034
0.034
0.034
0.034
0.034
Vesting conditions
Refer Note
1
Refer Note
2
Refer Note 3
Refer Note 4
Refer Note 5
Risk-free rate
3.0%
3.0%
3.0%
3.0%
3.0%
Share price volatility
77.4%
77.4%
77.4%
77.4%
77.4%
Market capitalisation
target (calculated on
20day VWAP)
n/a
n/a
$40m
$80m
$120m
Value per Right
$0.0340
$0.0340
$0.0159
$0.0081
$0.0048
Notes:
1. Vested and exercised during the year.
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.
26|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
2023
Bought/issued
Other changes
during the year
Closing Balance
30 June 2024
J. Terpu
177,244,037
7,788,815
-
185,032,852
A. Caruso
900,000
-
-
900,000
M. Blake
14,708,754
291,246
-
15,000,000
M. Keane
942,767
1,000,000
-
1,942,767
M. Petricevic
1,100,000
225,000
-
1,325,000
Unlisted Options - directly and indirectly held
Opening
Balance 1 July
2023
Bought/issued
Closing
Balance 30
June 2024
Other changes
during the year
J. Terpu
-
-
-
-
A. Caruso
-
-
-
-
M. Blake
-
-
-
-
M. Keane
-
-
-
-
M. Petricevic
4,600,000
1,500,000
(100,000)
6,000,000
Performance and Loyalty Rights - directly and indirectly held
Opening
Balance
1 July 2023
Bought/issued
Closing Balance
30 June 2023
Other changes
during the year
J. Terpu
-
-
-
-
A. Caruso
-
-
-
-
M. Blake
-
-
-
-
M. Keane
17,000,000
-
(1,000,000)
16,000,000
M. Petricevic
-
-
-
-
1,000,000 Performance Rights vested in September 2023 and were exercised and converted into fully paid
ordinary shares.
No other Unlisted Options, Performance or Loyalty Rights were granted to the Directors, officers or KMP’s of the
Company since the end of the financial year.
27|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.
2024
2023
Directors and related parties
Note
$
$
Paid/payable to:
Rent and service charges paid to Ruby Lane Pty Ltd atf the Terpu Trust
19
92,572
85,775
Interest charges on loan provided by Valleyrose Pty Ltd
-
4,383
Amounts owing to related parties at balance date:
Relating to rent and services charges to Ruby Lane Pty Ltd atf the Terpu Trust
13
6,971
-
End of Remuneration Report
Signed in accordance with a resolution of the Directors.
John Terpu
Executive Chairman
Perth WA
4 September 2024
………………………END OF DIRECTORS REPORT……………………….
28|Page
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of Great Southern Mining Limited
for the year ended 30 June 2024, 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
4 September 2024
D B Healy
Partner
29|Page
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 2024 was approved by
the Board on 4 September 2024.
The Corporate Governance Statement is available on the Company’s website at www.gsml.com.au .
30|Page
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
2024
2023
Note
$
$
INTEREST AND OTHER INCOME
2
13,143
774,052
EXPENSES
Administration expenses
(311,363)
(317,562)
Consulting fees
(12,814)
(75,371)
Directors’ benefits
(519,534)
(598,223)
Employee benefits expense
2
(265,115)
(318,456)
Legal fees
(71,411)
(50,223)
Marketing fees
(120,491)
(151,684)
Finance costs
2
(7,570)
(10,701)
Rent expense
2
(113,707)
(77,977)
Depreciation expense
(14,495)
(65,565)
Exploration and evaluation expenditure not capitalised
2
(174,571)
(220,479)
Fair value movement in financial assets
2
(136,927)
(364,919)
Share based payment expense
16
(256,856)
(466,618)
(2,004,854)
(2,717,778)
LOSS BEFORE INCOME TAX EXPENSE
(1,991,711)
(1,943,726)
Income tax expense
-
-
NET LOSS FOR THE YEAR
(1,991,711)
(1,943,726)
OTHER COMPREHENSIVE INCOME, NET OF INCOME TAX
Items that may be reclassified to profit or loss
Income tax expense
-
-
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
(1,991,711)
(1,943,726)
BASIC AND DILUTED LOSS PER SHARE (CENTS PER
SHARE)
5
(0.26)
(0.31)
The accompanying notes form part of these financial statements.
31|Page
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
2024
2023
Note
$
$
CURRENT ASSETS
Cash and cash equivalents
6
1,110,589
1,583,488
Other assets
8
47,262
33,300
Total Current Assets
1,157,851
1,616,788
NON-CURRENT ASSETS
Financial assets
7
97,813
276,839
Other receivables
9
35,667
35,667
Plant and equipment
10
15,444
37,229
Right of use asset
12
155,038
59,775
Exploration and evaluation expenditure
11
12,258,502
11,229,940
Total Non-Current Assets
12,562,464
11,639,450
TOTAL ASSETS
13,720,315
13,256,238
CURRENT LIABILITIES
Trade and other payables
13
167,844
348,444
Lease liability
12
76,050
60,540
Employee benefits
14
144,191
117,018
Total Current Liabilities
388,085
526,002
NON-CURRENT LIABILITIES
Lease liability
12
78,988
-
Employee benefits
14
2,019
16,658
Total Non-Current Liabilities
81,007
16,658
TOTAL LIABILITIES
469,092
542,660
NET ASSETS
13,251,223
12,713,578
EQUITY
Issued capital
15
42,106,825
39,834,325
Reserves
16
1,342,545
1,085,689
Accumulated losses
(30,198,147)
(28,206,436)
TOTAL EQUITY
13,251,223
12,713,578
The accompanying notes form part of these financial statements.
32|Page
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
2024
2023
Note
$
$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
(1,316,476)
(1,538,794)
Interest received
12,742
7,941
Interest on motor vehicle leases
-
(56,947)
Interest paid on related party loan
-
(6,576)
Net cash (used in) operating activities
(1,303,734)
(1,594,376)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration and evaluation expenditure
(1,463,868)
(2,096,628)
Proceeds from divestment of financial assets
45,765
211,975
Net cash (used in) investing activities
(1,418,103)
(1,884,653)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares (net of costs)
2,248,938
4,144,687
Net cash provided by financing activities
2,248,938
4,144,687
Net increase/(decrease) in cash held
(472,899)
665,658
Cash at beginning of period
1,583,488
917,830
CASH AT END OF THE YEAR
6
1,110,589
1,583,488
The accompanying notes form part of these financial statements.
33|Page
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2024
Issued Capital
Accumulated
Losses
Unlisted
Option
Reserve
Performance
Rights
Reserve
Listed
Option
Reserve
Total
Notes
$
$
$
$
$
$
Consolidated
Balance at 1 July 2022
35,169,281
(27,852,825)
619,072
-
1,590,115
9,525,643
Loss for the year
-
(1,943,726)
-
-
-
(1,943,726)
Total Comprehensive Loss
-
(1,943,726)
-
-
-
(1,943,726)
Transaction recorded directly in equity
Issue of Share Capital
15
4,842,396
-
-
-
-
4,842,396
Unlisted Options issued during the period
17
-
-
406,411
-
-
406,411
Performance Rights issued during the period
18
-
-
-
84,219
-
84,219
Expiry of Listed Options during the period
-
1,590,115
-
-
(1,590,115)
-
Lapse of securities during the period
17
-
-
(24,013)
-
-
(24,013)
Capital raising costs
15
(177,353)
-
-
-
-
(177,353)
4,665,043
1,590,115
382,398
84,219
(1,590,115)
5,131,660
Balance at 30 June 2023
39,834,325
(28,206,436)
1,001,470
84,219
-
12,713,578
Consolidated
Balance at 1 July 2023
39,834,325
(28,206,436)
1,001,470
84,219
-
12,713,578
Loss for the year
-
(1,991,711)
-
-
-
(1,991,711)
Total Comprehensive Loss
-
(1,991,711)
-
-
-
(1,991,711)
Transaction recorded directly in equity
Issue of Share Capital
15
2,320,000
-
-
-
-
2,320,000
Unlisted Options issued during the period
17
-
-
161,505
-
-
161,505
Performance Rights issued during the period
18
-
-
-
95,351
-
95,351
Capital raising costs
15
(47,500)
-
-
-
-
(47,500)
2,272,500
-
161,505
95,351
-
2,529,356
Balance at 30 June 2024
42,106,825
(30,198,147)
1,162,975
179,570
-
13,251,223
The accompanying notes form part of these financial statement.
34|Page
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 1: STATEMENT OF MATERIAL
ACCOUNTING POLICIES
(a) Reporting Entity
Your Directors present their report on the
Company for the financial year ended 30 June
2024. 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.
The financial statements are presented in
Australian dollars.
The financial statements for the year ended 30
June 2024 were approved and authorised for
issue by the Board of Directors on 4 September
2024.
(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.
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.
35|Page
NOTE 1: STATEMENT OF MATERIAL
ACCOUNTING POLICIES (CONTINUED)
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
Interest income
Interest revenue is recognised on a time
proportionate basis that takes into account the
effective yield on the financial asset.
(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 tax regulation is subject to
interpretation. It establishes provisions where
appropriate on the basis of amounts expected
to be paid to the tax authorities.
36|Page
NOTE 1: STATEMENT OF MATERIAL
ACCOUNTING POLICIES (CONTINUED)
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.
Unrecognised deferred income tax assets are
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.
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.
(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
37|Page
NOTE 1: STATEMENT OF MATERIAL
ACCOUNTING POLICIES (CONTINUED)
cannot be estimated to be close to its fair value.
In such cases the asset is tested for impairment
as part of the cash-generating unit to which it
belongs. When the carrying amount of an asset
or cash-generating unit exceeds its recoverable
amount, the asset or cash-generating unit is
considered impaired and is written down to its
recoverable amount.
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.
If that is the case, the carrying amount of the
asset is increased to its recoverable amount.
That increased amount cannot exceed the
carrying amount that would have been
determined, net of depreciation, had no
impairment loss been recognised for the asset
in prior years. Such reversal is recognised in
profit or loss unless the asset is carried at 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
Cash comprises cash at bank and in hand.
Cash equivalents are short term, highly liquid
investments that are readily convertible to
known amounts of cash and which are subject
to an insignificant risk of changes in value.
Bank overdrafts are shown within borrowings in
current liabilities in the statement of financial
position.
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)
Financial Instruments
Recognition and derecognition
Financial assets and financial liabilities are
recognised when the Company becomes a
party to the contractual provisions of the
financial 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
All financial assets are initially measured at fair
value adjusted for transaction costs (where
applicable). Financial assets are classified into
the following categories:
fair value through other comprehensive
income (FVOCI).
amortised cost fair value through profit or
loss (FVTPL).
38|Page
NOTE 1: STATEMENT OF MATERIAL
ACCOUNTING POLICIES (CONTINUED)
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 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 financial
liabilities
The Company’s financial liabilities include
borrowings, trade and other payables. The
Company does not have any derivative
financial instruments in any period presented.
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.
Subsequently, financial liabilities are measured
at amortised cost using the effective interest
method except for derivatives and financial
liabilities designated at FVTPL, which are
carried 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.
(j)
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.
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
The assets’ residual values, useful lives and
amortisation methods are reviewed, and
adjusted if appropriate, at each financial year
end.
(i) Impairment
The carrying values of 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.
(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.
39|Page
NOTE 1: STATEMENT OF MATERIAL
ACCOUNTING POLICIES (CONTINUED)
(k) 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.
(l)
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.
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 expected future payments
to be made to employees. The expected future
payments 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
adjustments and changes in assumptions are
recognised in profit or loss in the periods in
which the changes occur.
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.
(m) Issued capital
Ordinary Shares are classified as equity.
Incremental costs directly attributable to the
issue of new shares or options are shown in
equity as a deduction, net of tax, from the
proceeds.
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.
(n) Earnings per share
Basic earnings per share is calculated as net
profit/loss adjusted to exclude any costs of
servicing equity (other than dividends) and
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.
40|Page
NOTE 1: STATEMENT OF MATERIAL
ACCOUNTING POLICIES (CONTINUED)
(o) 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 which they are incurred
where the following conditions are satisfied:
(i) the rights to tenure of the area of interest are
current; and
(ii) at least one of the following conditions is
also met:
(a) the
exploration
and
evaluation
expenditures
are
expected
to
be
recouped
through
successful
development and exploitation of the area
of interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in
the area of interest have not at the
reporting date reached a stage which
permits a reasonable assessment of the
existence or otherwise of economically
recoverable reserves, and active and
significant operations in, or in relation to,
the area of interest are continuing.
Exploration and evaluation assets are initially
measured at cost and include acquisition of
rights to explore, studies, exploratory drilling,
trenching
and
sampling
and
associated
activities and an allocation of depreciation of
assets used in exploration and evaluation
activities.
General and administrative costs are only
included in the measurement of exploration and
evaluation costs where they are related directly
to operational activities in a particular area of
interest.
Exploration
and
evaluation
assets
are
assessed for impairment when facts and
circumstances suggest
that the carrying
amount of an exploration and evaluation asset
may exceed its recoverable amount.
The recoverable amount of the exploration and
evaluation asset (for the cash generating unit(s)
to which it has been allocated being no larger
than the relevant area of interest) is estimated
to determine the extent of the impairment loss
(if any).
Where an impairment loss subsequently
reverses, the carrying amount of the asset is
increased to the revised estimate of its
recoverable amount, but only to the extent that
the increased carrying amount does not exceed
the carrying amount that would have been
determined had no impairment loss been
recognised for the asset in previous years.
Where a decision has been made to proceed
with development in respect of a particular area
of interest, the relevant exploration and
evaluation asset is tested for impairment and
the balance is then reclassified to development.
(p) 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 17.
41|Page
NOTE 1: STATEMENT OF MATERIAL
ACCOUNTING POLICIES (CONTINUED)
All share-based remuneration 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.
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. Upon
exercise of share options, the proceeds
received net of any directly attributable
transaction costs are allocated to share capital.
(q) Leases
Right of Use Assets
A right of use asset is recognised at the
commencement date of a lease. The right of
use asset is measured at cost, which comprises
the initial amount of the lease liability, adjusted
for, as applicable, any lease payments made at
or before the commencement date net of any
lease incentives received, any initial direct
costs incurred, and, except where included in
the cost of inventories, an estimate of costs
expected to be incurred for dismantling and
removing the underlying asset, and restoring
the site or asset.
Right of use assets are depreciated on a
straight-line basis over the unexpired period of
the lease or the estimated useful life of the
asset, whichever is the shorter. Where the
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.
42|Page
NOTE 1: STATEMENT OF MATERIAL
ACCOUNTING POLICIES (CONTINUED)
Lease payments comprise of fixed payments
less any lease incentives receivable, variable
lease payments that depend on an index or a
rate, amounts expected to be paid under
residual value guarantees, exercise price of a
purchase option when the exercise of the option
is reasonably certain to occur, and any
anticipated termination penalties. The variable
lease payments that do not depend on an index
or a rate are expensed in the period in which
they are incurred.
Lease liabilities are measured at amortised cost
using the effective interest method. The
carrying amounts are remeasured if there is a
change in the following: future lease payments
arising from a change in an index or a rate used;
residual guarantee; lease term; certainty of a
purchase option and termination penalties.
When a lease liability is remeasured, an
adjustment is made to the corresponding right-
of-use asset, or to profit or loss if the carrying
amount of the right of use asset is fully written
down.
(r) Going Concern
During the year the Company incurred a net
loss of $1,991,711 (2023: loss of $1,943,726).
Net cash outflows from operating and investing
activities during the period were $2,721,837
(2023: cash outflows of $3,479,029).
Given the potential funding options and cash
management initiatives noted below, the
Directors believe the going concern basis is
appropriate:
$500,000 received in July 2024 following
approval at the general meeting held 21
June 2024.
The Company will continue to exercise
appropriate
cash
management
and
monitoring of operating cashflows according
to exploration success. Future exploration
expenditure is generally discretionary in
nature and exploration activities may be
slowed or suspended as part of the
Company’s cash management strategy.
The Company has demonstrated its ability to
raise capital via equity placements 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.
The financial statements do not include any
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.
43|Page
NOTE 2: LOSS BEFORE INCOME TAX EXPENSE
2024
2023
Note
$
$
The following revenue and expense items are relevant in explaining the financial
performance for the year.
Interest income – other parties
13,143
7,918
Gain on divestment of Palmer River Project
-
766,134
13,143
774,052
Expense
Included in administration expenses are the following material
items:
- Rent and outgoings paid
(a)
(113,707)
(77,977)
- Accounting and audit fees
(80,949)
(58,684)
- ASX listing fees
(47,238)
(72,956)
- Subscriptions
(15,803)
(10,573)
- Share registry
(15,496)
(38,258)
- Conferences, travel and accommodation
(28,678)
(19,723)
Fair value movement in Financial Assets
7
(136,927)
(364,919)
Finance costs
(b)
(7,570)
(10,701)
Employee benefits expense
(c)
(265,115)
(318,456)
Exploration and evaluation expenditure not capitalised
(d)
(174,571)
(220,479)
a) The Company rents properties in Perth, Laverton and Townsville. Of this balance, $92,572 was
paid to a Director related entity during the year (2023: $85,775).
b) During the prior 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 2024 above, $35,765 represents amounts
paid in superannuation contributions (2023: $63,785). In addition, the balance includes $45,755
(2023: $81,248) 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.
44|Page
NOTE 3: AUDITOR’S REMUNERATION
2024
2023
$
$
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
48,924
44,848
Other non-assurance services
-
-
48,924
44,848
NOTE 4: INCOME TAX EXPENSE
2024
2023
$
$
(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
-
-
(b) Reconciliation between income tax expense and pre-tax profit/(loss)
Loss before tax
(1,991,711)
(1,943,726)
Income tax using the domestic small business corporation tax rate of 30%
(2023: 30%).
(597,513)
(583,118)
Tax effect of:
Non-deductible expenses
36,221
142,696
Share based payments
77,057
139,985
Unused tax losses and temporary differences not recognised as deferred tax
assets
484,235
300,437
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% (2023: 30%) have not
been recognised in respect of the following:
Income tax losses
6,537,239
5,526,450
Temporary differences
(3,394,082)
(3,021,517)
3,143,157
2,504,933
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.
45|Page
NOTE 5: (LOSS) PER SHARE
2024
2023
$
$
Basic and diluted loss per share (cents per share)
(0.26)
(0.31)
Weighted average number of ordinary shares used in calculation of loss
per share
754,639,792
618,653,339
Loss used in calculation of basic and diluted (loss) per share ($)
(1,991,741)
(1,943,726)
NOTE 6: CASH AND CASH EQUIVALENTS
2024
2023
$
$
Cash on hand and at bank
1,110,589
1,583,488
Cash at bank earns interest at floating rates on daily bank deposit rates.
NOTE 7: INVESTMENT IN FINANCIAL ASSETS
2024
2023
$
$
Financial assets at fair value through profit or loss
97,813
276,839
At year end, the Company holds 1,746,668 shares in Revolver Resources Holdings Ltd (ASX: RRR).
During the year, the Company sold 770,026 shares on market, netting the Company $45,765 cash.
The net change in fair value on financial assets at fair value through profit or loss for the year was an unrealised
loss of $136,927 (2023: $364,919).
The fair value of the shares held using the closing market price on the day prior to the date of this report is
$85,586.
NOTE 8: OTHER CURRENT ASSETS
2024
2023
$
$
Security guarantee
19,013
-
Prepaid expenses
28,249
33,300
47,262
33,300
NOTE 9: OTHER RECEIVABLES
2024
2023
$
$
Exploration tenement guarantees
35,667
35,667
46|Page
NOTE 10: PLANT AND EQUIPMENT
2024
2023
$
$
Plant and equipment at cost
319,295
319,295
Less: Accumulated depreciation
(303,851)
(282,066)
15,444
37,229
Movement schedule for plant and equipment
Opening written down value
37,229
100,712
Depreciation
(14,495)
(14,252)
Depreciation allocated to exploration expenditure
(7,290)
(49,231)
Closing written down value
15,444
37,229
NOTE 11: EXPLORATION AND EVALUATION EXPENDITURE
2024
2023
$
$
Cost brought forward in respect of areas of interest in the
exploration and evaluation stage
11,229,940
9,805,909
Expenditure capitalised during the year
(a)
1,033,061
1,595,461
Divestment of Palmer River Project
(b)
-
(145,392)
Impairment of exploration expenditure
(b)
-
(26,038)
Write off of exploration expenditure
(4,499)
-
Cost carried forward
12,258,502
11,229,940
(a) During the year to 30 June 2023, 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. In December 2023, the Company received
the final payment of $24,125. This amount has been offset against expenditure capitalised.
(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
3. 2,516,694 RRR shares received upon completion of the sale and purchase agreement, calculated
on a 10-day Volume Weighted Average Price (VWAP). GSN executed a voluntary escrow deed on
the RRR shares which has now ceased.
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.
47|Page
NOTE 12: RIGHT-OF-USE ASSETS
2024
2023
$
$
COST
Opening Balance
275,303
275,303
Additions
155,038
-
430,341
275,303
Accumulated Depreciation
Opening Balance
(215,528)
(164,215)
Charge for the year
(59,775)
(51,313)
(275,303)
(215,528)
Carrying Amount
155,038
59,775
Amounts recognised in the Profit and Loss
Depreciation expense on right-of-use asset
(59,775)
(51,313)
Interest expense on lease liabilities
(5,856)
(3,174)
Expense relating to short term leases
(25,287)
-
Total cash outflow for leases
(90,918)
(54,487)
In 2024, the Company leased its registered head office premises with the lease term concluding in June 2024. In
June 2024, the Company negotiated the lease terms on the premises with the new lease being renewed for a
period of 2.0 years. (30 June 2023: remaining life of 1.0 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. The Townsville lease ceased in May 2024. At
balance date, the remaining lease has a term of less than one year. This lease is either short-term or low-value, so
have been expensed as incurred and not capitalised as a right-of-use asset.
NOTE 12: LEASE LIABILITIES
2024
2023
$
$
LEASE LIABILITIES
Current
76,050
60,540
Non-current
78,988
-
155,038
60,540
The Company does not face a significant liquidity risk with regard to its lease liabilities.
48|Page
NOTE 13: TRADE AND OTHER PAYABLES
2024
2023
$
$
Trade creditors
73,317
57,295
Accruals and other payables
94,527
291,149
167,844
348,444
Included in Trade Creditors is an amount payable to a Director related entity of $6,971 relating to rent and outgoings.
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: EMPLOYEE BENEFITS
2024
2023
$
$
Current employee entitlements
Annual Leave
80,133
74,301
Long-Service Leave
64,058
42,717
144,191
117,018
Non-current employee entitlements
Annual Leave
-
-
Long-Service Leave
2,019
16,658
2,019
16,658
Total employee entitlements
Annual Leave
80,133
74,301
Long-Service Leave
66,077
59,375
Annual Leave
Long Service Leave
$
$
Opening balance
74,301
59,375
Accrued during the period
60,031
20,191
Taken during the period
(54,199)
(13,489)
Closing balance
80,133
66,077
49|Page
NOTE 15: ISSUED CAPITAL
2024
$
2023
$
No.
$
No.
$
Issued capital comprises Fully Paid
Ordinary Shares
817,483,698
42,106,825
715,173,650
39,834,325
Movement in issued shares for the
year
Balance at beginning of the year
715,173,650
39,834,325
532,367,086
35,169,281
Issued for cash
Date
Placement of shares following
rights issue completion (a)
01-Aug-22
-
-
24,162,161
845,676
Placement of shortfall shares under
rights issue (a)
19-Oct-22
-
-
23,561,166
824,641
Shares issued to consultant for
services provided (a)
04-Nov-22
-
-
237,997
10,080
Placement of shares following
shareholder approval (d)
25-Jan-23
-
-
11,428,571
400,000
Placement of shares (b)
09-Feb-23
-
-
71,750,002
1,722,000
Placement of shares (c)
28-Apr-23
-
-
29,850,000
597,000
Placement of shares following
shareholder approval (d)
16-Jun-23
-
-
21,816,667
443,000
Shares issued upon exercise of
Performance Rights (e)
27-Sep-23
1,000,000
-
-
-
Placement of shares on entering
farm in arrangement (f)
18-Oct-23
38,461,539
1,000,000
-
-
Placement of shares (g)
22-Apr-24
61,900,000
1,238,000
-
-
Shares issued to consultant for
services provided (h)
22-Apr-24
948,509
20,000
-
-
Placement of shares following
shareholder approval (i)
-
62,000
Share issue costs
-
(47,500)
-
(177,353)
Balance at the end of the year
817,483,698
42,106,825
715,173,650
39,834,325
a) 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.
b) 71,750,002 Fully Paid Ordinary Shares placed at $0.024 each raising $1.72 million before costs.
c) 29,850,000 Fully Paid Ordinary Shares placed at $0.020 each raising $0.59 million before costs.
d) Shares issued to Directors following shareholder approval to participate in the placements in (b) and (c)
above.
e) Exercise of Performance Rights upon vesting in September 2023.
f)
On 9 October 2023, the Company announced the earn-in agreement with Gold Fields. As part of this
transaction, 38,461,539 Ordinary Shares were issued under the Company’s LR7.1 capacity. The subscription
price was $0.026 per share.
g) 61,900,000 Fully Paid Ordinary shares placed at $0.02 each raising $1.24 million before costs.
h) 948,509 Fully Paid Ordinary shares issued as consideration for contractor services provided.
i)
Shareholder approval obtained at general meeting held 21 June 2024. Funds of $0.062 million were received
prior to 30 June 2024. $0.50 million was received on 3 July 2024. 28,100,000 shares were issued on 4 July
2024. Refer to note 24 for further details.
50|Page
NOTE 16: RESERVES
17 - Unlisted Option
Reserve
18 - Performance
Rights Reserve
19 – Listed Option
Reserve
2024
2023
2024
2023
2024
2023
$
$
$
$
$
$
Balance at beginning of the financial year
1,001,470
619,072
84,219
-
-
1,590,115
Recognised during the period
161,505
406,410
95,351
84,219
-
-
Forfeited during the period
-
(24,012)
-
-
-
-
Expired during the period
-
-
-
-
-
(1,590,115)
Balance at end of the period
1,162,975
1,001,470
179,570
84,219
-
-
Total Reserve Balance at year end: $1,342,545 (2023: $1,085,689).
NOTE 17: UNLISTED OPTION RESERVE
2024
2023
No.
$
No.
$
Opening Balance
31,600,000
1,001,470
16,050,000
619,072
Issued during the period
28,000,000
137,628
25,000,000
311,113
Recognition of prior issued unlisted options
-
23,877
-
95,297
Cancelled / Lapsed During the period
-
-
(2,750,000)
(24,012)
Expired during the period
(850,000)
-
(6,700,000)
-
Exercised during the period
-
-
-
-
58,750,000
1,162,975
31,600,000
1,001,470
51|Page
NOTE 17: UNLISTED OPTION RESERVE (CONTINUED)
Grant Date
Expiry Date
Exercise
Price ($)
Balance at
start of
reporting
period
Granted
during the
period
Converted
during the
period
Cancelled /
Lapsed
during the
period
Balance at
period end
Vested at
period end
Note
FV at Grant
Date ($
cents per
option)
Amount
recognised
during the
period
06/10/20
31/12/23
0.100
600,000
-
-
(600,000)
-
-
A
0.089
-
05/10/21
05/10/24
0.100
1,500,000
-
-
-
1,500,000
1,500,000
B
0.019
-
05/10/21
05/10/25
0.100
1,000,000
-
-
-
1,000,000
1,000,000
B
0.023
4,987
05/10/21
05/10/26
0.100
1,000,000
-
-
-
1,000,000
-
B
0.027
8,867
29/03/22
29/03/25
0.100
1,250,000
-
-
-
1,250,000
1,250,000
C
0.022
-
29/03/22
29/03/26
0.100
500,000
-
-
-
500,000
500,000
C
0.027
4,974
29/03/22
29/03/27
0.100
500,000
-
-
-
500,000
-
C
0.030
5,050
15/06/22
15/06/24
0.100
250,000
-
-
(250,000)
-
-
D
0.017
-
22/08/22
21/08/25
0.070
25,000,000
-
-
-
25,000,000
25,000,000
E
0.012
-
24/05/24
03/06/26
0.028
-
3,000,000
-
-
3,000,000
-
F
0.083
2,534
21/06/24
21/06/27
0.050
-
25,000,000
-
-
25,000,000
25,000,000
G
0.005
120,715
Total
31,600,000
28,000,000
-
(850,000)
58,750,000
54,250,000
147,127
Valuation assumptions
A
B
C
D
E
F
G
Grant date
06/10/20
05/10/21
29/03/22
15/06/22
22/08/22
24/5/24
21/6/24
Share price at date of grant ($)
0.11
0.05
0.05
0.04
0.04
0.02
0.015
Volatility
106%
108%
108%
98%
77%
91%
89%
Expiry date
between 31/12/22 and
31/12/23)
24 months after vesting
or at cessation of
employment
24 months after vesting or
at cessation of employment
15/06/25
21/08/25
03/06/26
21/6/27
Dividend yield
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Risk free investment rate
0.26%
0.10%
0.10%
0.85%
1.85%
4.35%
4.35%
Vesting probability
n/a
n/a
n/a
n/a
100.00%
100.00%
n/a
Weighted average remaining
contractual life (yrs)
-
1.76
1.74
0.96
1.65
1.95
3.0
52|Page
NOTE 18: PERFORMANCE RIGHTS
2024
2023
No
$
No
$
Balance at beginning of the year
17,000,000
84,219
-
-
Issued during the period
-
-
17,000,000
84,219
Recognition of prior issued rights during the period
-
95,351
-
-
Exercised during the period
(1,000,000)
-
-
-
Cancelled/lapsed during the period
-
-
-
-
Balance at end of the year
16,000,000
179,570
17,000,000
84,219
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
Loyalty
Rights
Tranche 1
Loyalty
Rights
Tranche 2
Performance
Rights
Tranche 1
Performance
Rights
Tranche 2
Performance
Rights
Tranche 3
Number of Rights
1,000,000
1,000,000
5,000,000
5,000,000
5,000,000
Exercise price
Nil
Nil
Nil
Nil
Nil
Grant date
19-09-22
19-09-22
19-09-22
19-09-22
19-09-22
Start of performance period
19-09-22
19-09-22
19-09-22
19-09-22
19-09-22
Vesting date
13-09-23
13-09-24
n/a
n/a
n/a
Performance period (years)
1
2.08
2.08
2.08
2.08
Remaining performance
period (years)
-
0.21
0.21
0.21
0.21
Expiry date
14-10-24
14-10-24
14-10-24
14-10-24
14-10-24
Share price at grant date
$0.034
$0.034
$0.034
$0.034
$0.034
Vesting conditions
Refer Note 1
Refer Note 2
Refer Note 3
Refer Note 4
Refer Note 5
Risk-free rate
3.0%
3.0%
3.0%
3.0%
3.0%
Share price volatility
77.4%
77.4%
77.4%
77.4%
77.4%
Market capitalisation target
(calculated on 20day VWAP)
n/a
n/a
$40m
$80m
$120m
Value per Right
$0.034
$0.034
$0.016
$0.008
$0.005
Fair Value at Grant Date
$34,000
$34,000
$79,500
$40,500
$24,000
Amount Recognised during the period
$3,446
$17,000
$39,750
$20,250
$12,000
Notes:
1. Vested and exercised during the year.
2. Subject to 24-month duration of service condition.
3. Measured by achieving a market capitalisation of $40 million calculated on a 20-day VWAP.
4. Measured by achieving a market capitalisation of $80 million calculated on a 20-day VWAP.
5. Measured by achieving a market capitalisation of $120 million calculated on a 20-day VWAP.
53|Page
NOTE 19: 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
2024
2023
Note
$
$
Paid/payable to:
Rent and service charges paid / payable to Ruby Lane Pty Ltd of
the Terpu Trust
92,572
85,775
Interest charges on loan provided by Valleyrose Pty Ltd in June
2022
-
4,383
Total remuneration paid to KMP of the Company during the
year:
Short-term employee benefits
790,837
719,391
Post-employment benefits
81,950
72,995
Share based payments
237,991
129,684
Total KMP compensation
1,110,778
922,070
NOTE 20: COMMITMENTS AND CONTINGENT LIABILITIES
(a) Exploration Expenditure Commitments
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.
(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.
The Company has no contingent liabilities.
54|Page
NOTE 21: 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:
Western Australia
Queensland
Corporate
Total
2024
2023
2024
2023
2024
2023
2024
2023
$
$
$
$
$
$
$
$
Current Assets
Cash and cash
equivalents
-
-
-
-
1,110,589
1,583,488
1,110,589
1,583,488
Other current
assets
-
-
-
-
47,262
33,301
47,262
33,301
-
-
-
-
1,157,851
1,616,789
1,157,851
1,616,789
Non-current
assets
Exploration and
Evaluation
Expenditure
7,426,552
6,568,317
4,831,950
4,661,623
-
-
12,258,502
11,229,940
Plant and
equipment
-
8,146
-
13,107
15,444
15,975
15,444
37,229
Financial Assets
-
-
-
-
97,813
276,839
97,813
276,839
Other non-
current assets
-
-
-
-
190,704
95,442
190,704
95,442
7,426,552
6,576,463
4,831,950
4,674,730
303,961
388,255
12,562,464
11,639,448
Total Assets
7,426,552
6,576,463
4,831,950
4,674,730
1,461,812
2,005,044
13,720,315
13,256,238
Liabilities
48,519
235,427
2,317
15,142
418,256
292,091
469,092
542,660
Interest of $13,143 can be attributed to the corporate segment (2023: $7,941). Other income in 2023 of $766,134
consists of the gain recognised on the divestment of the Palmer River tenements. In 2023, 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.
In 2024, $4,499 was written off in relation to Western Australian tenements.
Other assets include insurance prepayments.
55|Page
NOTE 22: 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:
56|Page
NOTE 22: FINANCIAL RISK MANAGEMENT (CONTINUED)
Carrying Amount
2024
2023
$
$
Cash and cash equivalents
1,110,589
1,583,488
Other assets
47,262
33,300
(iv)
Impairment Losses
None of the Company’s other receivables are past due (2023: 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 2024, no interest-bearing liabilities
were owing.
The following are the Company’s contractual maturities of financial liabilities, including estimated interest
payments and excluding the impact of netting agreements:
Carrying
amount
Contractual
cash flows
6 mths
or less
6-12
mths
1-2
years
2-5
years
30 June 2024 ($)
Interest Bearing
155,038
155,038
38,025
38,025
78,988
-
Non-interest bearing
167,844
167,844
167,844
-
-
-
322,882
322,882
205,869
38,025
79,988
-
Carrying
amount
Contractual
cash flows
6 mths
or less
6-12
mths
1-2
years
2-5
years
30 June 2023 ($)
Interest Bearing
60,540
60,540
30,272
30,273
-
-
Non-interest bearing
348,445
348,445
348,445
-
-
-
408,985
408,985
378,717
30,273
-
-
57|Page
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 7.
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 2024.
Profit or loss
Equity
Increase
Decrease
Increase
Decrease
$
$
$
$
30 June 2024
Variable rate
instruments
22,101
-
22,101
-
30 June 2023
Variable rate
instruments
53,047
-
53,047
-
Decrease in rate assumes that the interest rate on the variable rate instruments declines to nil.
NOTE 22: FINANCIAL RISK MANAGEMENT (CONTINUED)
58|Page
NOTE 22: 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:
2024
2023
Carrying
amount
Fair value
Carrying
amount
Fair value
$
$
$
$
Cash and cash equivalents
1,110,589
1,110,589
1,583,488
1,583,488
Other receivables
47,262
47,262
33,301
33,301
Financial assets
97,813
97,813
276,838
276,838
Trade and other payables
(167,844)
(167,844)
(348,444)
(348,444)
Employee benefits
(144,191)
(144,191)
(133,675)
(133,675)
Lease Liabilities
(155,038)
(155,038)
(60,540)
(60,540)
788,591
788,591
1,350,968
1,350,968
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 2024, the fair value (Level 1) of the listed shares held in Revolver Resources Ltd (ASX: RRR) was
$97,813.
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.
59|Page
NOTE 23: STATEMENT OF CASH FLOWS
2024
2023
$
$
Reconciliation of operating loss after income tax to net cash
used in operating activities
Loss after income tax
(1,991,711)
(1,943,726)
Adjustments for:
Depreciation
21,785
65,565
Share based payment expense
256,855
466,618
Impairment of exploration expenditure
4,499
171,430
Unrealised loss on financial assets
136,927
364,919
Share based payment expense allocated to consulting fees
20,000
-
(Profit) on disposal of Palmer River tenements
-
(766,134)
Exploration and evaluation expenditure not capitalised
174,571
220,479
Amortisation of right of use assets
59,775
51,313
Change in assets and liabilities
(Increase)/decrease in other current assets
(13,962)
1,530
Increase/(decrease) in operating payables
14,993
(222,848)
Increase/(decrease) in employee entitlements
12,534
(3,522)
Net cash used in operating activities
(1,303,734)
(1,594,376)
Non-cash investing and financing activities
Apart from the acquisition of right-of-use assets during the period (being the lease on head office premises),
there were no non-cash investing and financing activities during the current or prior period.
NOTE 24: EVENTS AFTER REPORTING DATE
At the Extraordinary General Meeting of the Company, held 21 June 2024, shareholders approved the issue of
the following Fully Paid Ordinary Shares (the ‘Securities’) to the following Directors of the Company:
Directors
Shares Issued
Matthew Keane
2,600,000
Matthew Blake
500,000
John Terpu
25,000,000
Total
28,100,000
The shares were issued on 4 July 2024. As per note 15, $0.062 million was received prior to 30 June 2024. $0.5
million was received after 30 June 2024.
In addition to the above, following approval at the same general meeting held 21 June 2024, the Company
issued the following Unlisted Options:
Number issued
Expiry
Years
(from date of
issue)
Exercise Price
Fair value per
security
J. Terpu
15,000,000
3
$0.05
$0.0048
M. Blake
5,000,000
3
$0.05
$0.0048
A. Caruso
5,000,000
3
$0.05
$0.0048
60|Page
The Unlisted Options have an exercise price of $0.05 each and have an expiration date of 21 June 2027.
On 18 July 2024, the Company announced that it was successful in its application for participation in the
Australian Federal Government’s Junior Minerals Exploration Incentive (“JMEI”) scheme for the 2024/2025
financial year with up to $1.48 million JMEI credits able to be issued.
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.
NOTE 25: NEW ACCOUNTING STANDARDS AND INTERPRETATIONS
Some accounting pronouncements which have become effective from 1 July 2023 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.
NOTE 26: LIST OF SUBSIDIARIES
Entity Name
Body Corporate,
partnership or
trust
Place
Incorporated/
formed
% of share capital
held directly by the
Company in the body
corporate
East Laverton Exploration Pty Ltd
Body Corporate
Australia
100%
Conquest Exploration Pty Ltd
Body Corporate
Australia
100%
Duketon Gold Project Pty Ltd
Body Corporate
Australia
100%
Palmer River Copper Pty Ltd
Body Corporate
Australia
100%
During the year, the Company had four wholly owned subsidiaries noted above. No transactions have been
incurred by these dormant entities since incorporation and therefore the Consolidated Statement of Financial
Position, Consolidated Statement of Profit or Loss and Other Comprehensive Income, Consolidated Statement
of Changes in Equity and Consolidated Statement of Cashflows for the year, as shown in these financial
statements, are considered to constitute those of the Group and the Parent Company and as a result a
separate Parent Company note has not been presented.
61|Page
CONSOLIDATED ENTITY DISCLOSURE STATEMENT AS AT 30 JUNE 2024
Basis of preparation
The consolidated entity disclosure statement has been prepared in accordance with the s295(3A)(a) of the
Corporations Act 2001 and includes the required information for Great Southern Mining Limited and the
entities it controls in accordance with AASB 10 Consolidated Financial Statements.
Tax Residency
S295(3A)(vi) of the Corporations Act 2001 defines tax residency as having the meaning in the Income Tax
Assessment Act 1997. The determination of tax residency may involve judgement as there are different
interpretations that could be adopted and which could give rise to different conclusions regarding residency.
In determining tax residency, the Group has applied the following interpretations:
Australian Tax Residency
Current legislation and judicial precent has been applied, including having regard to the Tax Commissioner’s
public guidance.
Foreign tax residency
Where appropriate, independent tax advisers have been engaged to assist in the determination of tax
residence to ensure applicable foreign tax legislation has been complied with.
Entity Name
Body
Corporate,
partnership or
trust
Place
Incorporated/
formed
% of share
capital held
directly by the
Company in the
body corporate
Australian
or Foreign
tax
resident
Jurisdiction
for foreign
tax resident
Great Southern Mining Ltd
Body Corporate
Australia
Australian
n/a
East Laverton Exploration Pty Ltd
Body Corporate
Australia
100%
Australian
n/a
Conquest Exploration Pty Ltd
Body Corporate
Australia
100%
Australian
n/a
Duketon Gold Project Pty Ltd
Body Corporate
Australia
100%
Australian
n/a
Palmer River Copper Pty Ltd
Body Corporate
Australia
100%
Australian
n/a
62|Page
DIRECTORS’ DECLARATION
1.
In the opinion of the Directors of Great Southern Mining Limited:
(a)
the accompanying financial statements and notes comply with the Corporations Act 2001
including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2024 and
of its performance for the financial year then ended; and
(ii) complying with Accounting Standards and the Corporations Regulations 2001.
(b)
the consolidated entity disclosure statement as at 30 June 2024 included in the financial
statements is true and correct.
(c)
there are reasonable grounds to believe that the Company and Group will be able to pay
its debts as and when they become due and payable.
(d)
the financial statements and notes thereto are in accordance with International Financial
Reporting Standards issued by the International Accounting Standards Board.
2.
This declaration has been made after receiving the declarations required to be made to the
Directors in accordance with Section 295A of the Corporations Act 2001 for the financial year
ended 30 June 2024.
This declaration is signed in accordance with a resolution of the Board of Directors.
John Terpu
Executive Chairman
Perth WA
4 September 2024
63|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”) and its controlled
entities (“the Group”), which comprises the consolidated statement of financial position as at 30 June 2024,
the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, notes to the financial
statements, including material accounting policy information, the consolidated entity disclosure statement
and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
(a) giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial
performance for the year then ended; and
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (“the Code”) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
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(r) in the financial report, which indicates that a material uncertainty exists that
may cast significant doubt on the Group’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.
64|Page
In addition to the matter described in the Material Uncertainty Related to Going Concern Opinion section,
we have determined the matters 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 Group has capitalised exploration and
evaluation expenditure of $12,258,502 as at
30 June 2024.
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
the
most
communication with those charged with
governance and was determined to be of key
importance to the users of the financial
statements.
Our procedures included but were not limited to the
following:
-
We obtained an understanding of the key
processes associated with management’s
review of the carrying value of exploration and
evaluation expenditure;
-
We obtained evidence that the Group 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 Group had not
decided
to
discontinue
exploration
and
evaluation at its areas of interest; and
-
We examined the disclosures made in the
financial report.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2024, 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 Group are responsible for the preparation of:
65|Page
(a) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001; and
(b) the consolidated entity disclosure statement that is true and correct in accordance with the Corporations
Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
(a)
the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view and is free from material misstatement, whether due to fraud or error; and
(b)
the consolidated entity disclosure statement that is true and correct 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 Group’s internal control.
−
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
−
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report
to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
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report. However, future events or conditions may cause the Group to cease to continue as a going
concern.
−
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in a
manner that achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, 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
2024.
In our opinion, the Remuneration Report of Great Southern Mining Limited for the year ended 30 June 2024
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
D B Healy
Chartered Accountants
Partner
Perth, Western Australia
4 September 2024
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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 3 September 2024 (Calculation Date) unless noted otherwise.
1.
Shareholder Information
1.1
As at Calculation Date the Company had 1,093 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
No. of
holders
Securities
No. of
holders
Securities
No. of
holders
100,001 and over
819,680,678
378
58,750,000
7
16,000,000
1
10,001 to 100,000
25,507,042
628
5,001 to 10,000
328,873
39
-
-
0
0
1,001 to 5,000
62,607
17
-
-
0
0
1 to 1,000
4,498
31
-
-
0
0
Total
845,583,698
1,093
58,750,000
7
16,000,000
1
Unmarketable Parcels
4,441,606
320
n/a
n/a
n/a
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 17 of the Financial Statements.
All Performance Rights were issued to M. Keane. Refer Note 18 of the Financial Statements.
No securities are subject to escrow.
68|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
Units
% Units
1
VALLEYROSE PTY LTD
171,325,037
20.26
2
DANNY TAK TIM CHAN
50,006,323
5.91
3
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
47,447,738
5.5
4
VALLEYBROOK INVESTMENTS PTY LTD
38,707,815
4.58
Twenty largest quoted security holders
The names of the twenty largest holders of quoted securities are listed below:
Rank
Name
Units
% Units
1
VALLEYROSE PTY LTD
171,325,037
20.26
2
DANNY TAK TIM CHAN
50,006,323
5.91
3
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
46,539,185
5.5
4
VALLEYBROOK INVESTMENTS PTY LTD
38,707,815
4.58
5
G EX AUSTRALIA PTY LTD
38,461,539
4.55
6
ADMARK INVESTMENTS PTY LTD
34,150,000
4.04
7
MR ROGER BLAKE + MRS ERICA LYNETTE BLAKE
20,000,000
2.37
8
MR ADAM ANDREW MACDOUGALL
17,215,902
2.04
9
MCNEIL NOMINEES PTY LIMITED
16,523,810
1.95
10
BNP PARIBAS NOMINEES PTY LTD
16,291,430
1.93
11
MOUNT STREET INVESTMENTS PTY LTD
15,000,000
1.77
12
BNP PARIBAS NOMS PTY LTD
14,664,012
1.73
13
ANYSHA PTY LTD
13,889,006
1.64
14
BUCKINGHAM INVESTMENT FINANCIAL SERVICES PTY
LTD
13,000,000
1.54
15
MR COLIN WEEKES
12,546,183
1.48
16
GARBUTT INVESTMENT PTY LTD
11,000,000
1.3
17
MR PAUL TSANG CHUNG SHING
9,500,000
1.12
18
MR COLIN WEEKES
9,490,001
1.12
19
NO BULL HEALTH PTY LTD
9,000,000
1.06
20
MR RUPERT JAMES GRAHAM LOWE
8,222,811
0.97
Totals: Top 20 holders of FULLY PAID ORDINARY SHARES (Total)
565,533,054
67.14
Total Remaining Holders Balance
280,050,644
32.86
69|Page
ASX ADDITIONAL INFORMATION (CONTINUED)
Unquoted securities on issue at the Calculation Date per expiry date are below:
Unlisted Options
Expiry Date
Exercise Price
($)
Number on
Issue
05/10/24
$0.10
1,500,000
29/03/25
$0.10
1,250,000
05/10/25
$0.10
1,000,000
29/03/26
$0.10
500,000
05/10/26
$0.10
1,000,000
29/03/27
$0.10
500,000
22/08/25
$0.07
25,000,000
03/06/25
$0.03
3,000,000
21/06/27
$0.05
25,000,000
58,750,000
Performance Rights
16,000,000 Performance Rights are on issue at the Calculation Date. For further details, refer to Note 18
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.
3. Tenement Schedule
Project
Tenement
% Interest
Grant date
Expiry date
Tenement Area
km2
WESTERN AUSTRALIA
Mon Ami
M38/1256
100%
03/09/12
02/09/33
0.6
E38/2829
100%
23/12/13
21/12/25
1
G38/38
100%
01/07/21
08/07/42
0.1
L38/349
100%
19/04/21
18/04/42
0.2
L38/328
100%
18/11/20
17/11/41
0.04
Southern Star
E38/3501
100%
17/02/21
16/02/26
210
M38/1299
100%
11/04/22
10/04/43
0.6
Duketon Project
E38/3476*
100%
10/09/20
09/09/25
1
P38/4523*
100%
04/03/21
03/03/25
1
P38/4524*
100%
23/02/21
22/02/25
1
P38/4525*
100%
04/03/21
03/03/25
1
E38/3723
100%
Pending grant
P38/4542*
100%
Pending grant
E38/3825*
100%
04/10/23
03/10/28
24
E38/3826*
100%
04/10/23
03/10/28
96
E38/3827*
100%
Pending grant
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Project
Tenement
% Interest
Grant date
Expiry date
Tenement Area
km2
E38/3940***
100%
Pending grant
E38/3958***
100%
Pending grant
E38/3939***
100%
Pending grant
E38/3518*
100%
17/02/21
16/02/26
54
East Laverton
E38/3362
100%
28/04/21
28/04/26
60
E38/3363
100%
03/07/19
02/07/24
135
E38/3364
100%
28/04/21
28/04/26
210
E38/3662
100%
12/04/22
11/04/27
2
E38/3801
100%
Pending grant
E38/3926
100%
Pending grant
E09/2900*
100%
Pending grant
E09/2912*
100%
Pending grant
E38/3840*
100%
Pending grant
E09/2895*
100%
Pending grant
E38/3837*
100%
Pending grant
E09/2904*
100%
Pending grant
E09/2908*
100%
Pending grant
QUEENSLAND
Tenement
% Interest
Grant date
Expiry date
Tenement Area
km2
Edinburgh Park Project
Johnnycake
EPM 18986**
100%
13/12/12
11/12/27
150
Mc Area
EPM 25196**
100%
03/03/14
01/03/26
9
Johnnycake North
EPM 26527**
100%
23/08/17
21/08/27
89
Beaks Mountain
EPM 26810**
100%
17/07/18
15/07/23
185
Reedy Range
EPM 27130**
100%
24/09/19
22/09/24
227
Stretchable
EPM 27131**
100%
24/09/19
22/09/24
317
King Creek
EPM 27506**
100%
30/11/20
28/11/25
233
Bogie Range
EPM 27450**
100%
03/06/21
01/06/26
121
Strathalbyn South
EPM 27944**
100%
06/04/22
05/04/27
25
Mt Abbot
EPM 28571
100%
27/11/23
27/11/28
282
Abbott Creek
EPM 28596
100%
22/04/24
21/04/29
108
Tablelands Project
Driscolls Hill
EPM 27460**
100%
30/09/20
28/09/25
320
* Granted tenement/tenement application in the name of East Laverton Exploration Pty Ltd.
** Granted tenement/tenement application in the name of Conquest Exploration Pty Ltd.
*** Granted tenement/tenement application in the name of Duketon Gold Project Pty Ltd.
All of which are 100% wholly owned subsidiaries of Great Southern Mining Limited.
71|Page
Mineral Resource Statement
The 2021 Mineral Resource estimate for the Mon Ami Gold Project is shown below.
Classification
Cut-ff Grade
Tonnage
Grade
Metal
g/t Au
Mt
g/t Au
Oz Au
Indicated
0.5
1.41
1.16
52,500
Inferred
0.5
0.15
0.61
3,000
Total
0.5
1.56
1.11
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 2024 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.
72|Page