T (08) 6369 1195 E info@hammermetals.com.au
ASX:HMX
ABN 87 095 092 158 P Unit 1, 28-30 Mayfair Street, West Perth, WA 6005 hammermetals.com.au
30 October 2024
2024 Annual Report
Hammer Metals Limited (ASX:HMX) (“Hammer” or “the Company”) is pleased to attach its Annual Report
for the year ended 30 June 2024.
For further information, please contact:
Daniel Thomas
Managing Director
T +61 8 6369 1195
E info@hammermetals.com.au
This announcement was authorised for issue by Mark Pitts, Company Secretary, Hammer Metals Limited.
Hammer Metals
Annual Report20
ABN
87 095 092 158
ASX
HMX
BOARD OF DIRECTORS
Russell Davis
Non-Executive Chairman
Daniel Thomas
Managing Director
David Church
Non-Executive Director
James Croser
Non-Executive Director
COMPANY SECRETARY
Mark Pitts
PRINCIPAL &
REGISTERED OFFICE
Unit 1, 28-30 Mayfair Street,
West Perth, WA 6005
Telephone: +61 8 6369 1195
info@hammermetals.com.au
www.hammermetals.com.au
Postal Address
Unit 1, 28-30 Mayfair Street,
West Perth, WA 6005
AUDITORS
PFK
Level 5,
35 Havelock Street
Perth West
WA, 6005
Telephone: +61 8 9426 8999
info@pkfperth.com.au
SHARE REGISTRY
Automic Pty Ltd
Level 5, 191 St Georges Terrace
Perth WA 6000
Australia
Telephone: 1300 288 664
STOCK EXCHANGE
ASX Limited
Level 40, Central Park,
152-158 St Georges Terrace
Perth WA 6000
CORPORATE
GOVERNANCE
The Company’s corporate
governance statement
can be found at the following
URL: hammermetals.com.au/
about/corporate-governance/
02
camera Cover Photo by Nichole Carmichael
Annual Report 2024
HAMMER METALS LIMITED
02
INTRODUCTION
Chairman’s Letter
04
Corporate Strategy
06
Operational Highlights
07
Corporate Activity
08
OPERATIONS
Operational Summary
09
STATEMENTS & REPORTS
Competent Person’s Statements
28
Annual Mineral Resource Statement
30
Tenement Interests
37
Directors Report
40
FINANCIALS
Auditor’s Independence Declaration
59
Consolidated Statement Of Financial Position
60
Consolidated Statement Of Profit Or Loss And Other
Comprehensive Income
61
Consolidated Statement Of Changes In Equity
62
Consolidated Statement Of Cash Flows
63
Notes To The Consolidated Financial Statement
64
Consolidated Entity Disclosure Statement
93
Director’s Declaration
94
Independent Auditor’s Report
95
ASX Additional Information
100
Contents
Contents
Annual Report 2024
HAMMER METALS LIMITED
03
Introduction
Chairman's
Letter
On behalf of Hammer’s Board of Directors I am pleased to
present our 2024 Annual Report.
Dear Fellow Shareholders,
Your Company is positioned in what I believe are the right “future
facing” commodities and in the right jurisdictions – the Mount Isa
Project with its copper, molybdenum, REE’s and gold potential,
and the Yandal Project in WA with its gold and lithium potential.
Both projects with JORC Mineral Resources and fabulous
exploration upside.
Hammer, through a series of low-cost acquisitions and tenement
applications made patiently over the past decade has assembled
one of the largest coherent ground positions in the Mount Isa
mining province and has built up a significant resource inventory
through acquisition and discovery totalling 530,000 tonnes of CuEq
metal comprising an estimated 321,000 tonnes of copper, 38,000
tonnes of molybdenum, (now classified as a critical mineral),
343,000 ounces of gold and 84,100 kilograms of rhenium in six
deposits. All Hammer’s resources are held 100% by Hammer with
the exclusion of the smaller Jubilee deposit with 51%.
Hammer’s core strategy is to discover or acquire sufficient
additional metal in or adjacent to our project area that will justify the
development of a robust and volumetrically significant base metal
operation. We believe that we are close to achieving this goal.
The Hammer team has been very active on the exploration and
corporate fronts over the past year, and I thank the Board, our
Managing Director Dan Thomas and the executive, field teams
and consultants for the exemplary effort put in dealing with the
range of issues that have arisen.
Annual Report 2024
HAMMER METALS LIMITED
04
Pleasingly in April Hammer’s funding requirements were resolved
in a non-dilutive manner with the sale to Carnaby Resources
Limited of up to a 70% interest in 9km2 surrounding their Mount
Hope deposit. The first tranche of $4 million in cash and 9 million
Carnaby shares have been received and further payments up to
a total value of $20 million are possible if various benchmarks
are met. Hammer is currently the largest shareholder in Carnaby
and wish them every success with their project development
plans. The transaction also saw Hammer book its first profit of
$6.2 million for the financial year.
On the exploration front significant high grade copper drilling hits
were made at Mt Mascotte and South Hope (up to a 70% interest
now sold to Carnaby). At Hardway drilling continued to outline a
broad zone of shallow oxide copper - REE mineralisation which
with some additional infill drilling has excellent potential to add
to the resource inventory.
Target generation was re-energised with accelerated geophysical
and geochemical sampling programs over favourable stratigraphy
and structures, geophysical anomalies and deposit extensions.
This work is generating immediate results, with new undrilled
copper-gold anomalies found close to the Kalman deposit and
along the Pilgrim Fault as well as a very exciting new gold-copper
soil anomaly and gossan at Tourist Zone which will be drilled
before the end of the year.
To bolster our exploration team and deliver on our exploration
strategy we welcome explorationist Greg Amalric, Hammer’s
new Manager - Exploration and Discovery. Greg has significant
previous experience in the NW Queensland mineral province with
Teck and Fortescue and we look forward to his contribution to
our exploration approach.
Approximately 30% of Hammer’s Mount Isa region tenure (in
area) is now being explored in joint venture with major base metal
miners Sumitomo Metal Mining Oceana, Glencore and South 32
(as well as Carnaby Resources) who are funding the exploration.
Doing JV’s like this helps Hammer to spread the risk, and results
in more targets being drill tested than we could otherwise fund
ourselves. Hammer field crews led by Mark Whittle currently
undertake the bulk of the exploration on behalf of our JV partners
which reflects positively on the expertise of Hammer’s personnel
and management, as well as the quality of the targets.
The Joint Ventures brought in $1.75m of exploration funding
last financial year with three new JV’s signed in recent months
(including the Carnaby deal). Successful CEI and R&D funding
applications brought in a further $1.5 million.
Although most of our activity was in NW Queensland, at our
Yandal Belt project in WA Hammer completed an infill drilling
program on its Target 1 deposit, subsequently announcing a
maiden shallow gold resource containing an estimated 54,000
ounces of gold. The deposit lies close to existing mining
operations and transport infrastructure. With our current focus
in NW Queensland the Board is keen to assess ways to monetise
this resource and the Yandal project.
I am fortunate to have such a great team. The Board brings
their collective experience covering exploration, development,
mining, business development, capital markets, M&A and joint
ventures and are focussed on delivering a positive result for
shareholders. The exploration team, now bolstered with Greg’s
appointment is experienced and keen, with a strong pipeline of
targets for the remainder of 2024 and 2025 already emerging
in our 100% owned tenure and with our JV partners. Whilst
exploration success is our primary goal the Board is open to
exploring other corporate opportunities and acquisitions that we
consider will add value to Hammer.
I thank shareholders for their continued support and look forward
to the coming year.
Sincerely,
Russell Davis
Chairman
Annual Report 2024
HAMMER METALS LIMITED
05
Corporate
Strategy
→
Position the company for discovery, through innovative
and focused exploration for large copper-gold and gold
deposits in two of the world’s great metal provinces.
→
Grow the Company’s defined JORC resources to
progress to a viable mining development scenario in
Mount Isa.
→
Work to consolidate and improve the quality of the
Company’s tenement positions.
→
Operate safely and effectively.
→
Deliver positive financial returns to shareholders.
Corporate Strategy
Annual Report 2024
HAMMER METALS LIMITED
06
Operational
Highlights
→
Completion of initial sale of a 51% interest in three Mount
Hope Sub-blocks to Carnaby Resources for $4m in cash
and $5m in Carnaby shares.
o Carnaby Resources can earn up to a 70% interest
in the sub-blocks, with a further consideration
of up to an additional $11 million.
o Hammer will retain a residual 30 % interest in
the project and will be free-carried by Carnaby
to production from the three Sub-Blocks.
→
A new exploration Joint Venture with Sumitomo Metal
Mining Oceania executed over the Bullrush area. The JV
will see a minimum commitment of 2000m of drilling in the
first year of the program.
→
An agreement was executed with South32 Group
Operations Pty Ltd, providing South32 with an option to
earn an 80% interest in the Isa Valley Project in North-West
Queensland (Project) and form a joint venture. The project
is located over sections of the Mount Isa Fault comprising
an area of ~320km2 and is considered highly prospective
for Mount Isa-style sediment-hosted lead-zinc-copper
mineralisation.
→
A maiden gold resource of 54.5koz of gold defined in a
new JORC Resource at Orelia North at the Yandal Project
in WA.
→
Broad, shallow intercepts of copper & rare earth element
(REE) mineralisation in all eight follow-up drill holes at
Hardway over a 600m strike length confirmed Hardway as
a significant shallow copper discovery.
→
Completed over 18km of drilling across twenty different
targets.
→
Completion of broad scale geophysical programs
including ground, downhole and airborne EM surveys, IP
surveys, detailed gravity surveys and aerial and ground
magnetic surveys generating sizeable highly prospective
copper/gold targets.
Annual Report 2024
HAMMER METALS LIMITED
07
Corporate
Activity
The Company’s corporate activities are focussed on
enhancing the capacity of our exploration team to make
discoveries through adequate funding, as well as securing
tenements or projects that improve the quality and potential
of the Company’s exploration portfolio.
On the funding front, the Company did not raise capital in
the FY24 period, although funding announced in FY23 was
completed with Hammer’s directors receiving approval to invest
$200,000 at an issue price of $0.06 per share. The transaction
with Carnaby Resources has provided Hammer with the requisite
funding for the programs completed in the second half of FY24
and our planned activities in the coming year.
Aiding funding during the year, a Research and Development tax
refund of $1.2 million was received in April with the Company also
being the recipient of a Queensland Government Collaborative
Exploration Incentive grant of $300,000.
Through historical transactions, the company holds investments
in three junior exploration companies with a current valuation
of ~A$4.5 million.
Corporate Activity
Annual Report 2024
HAMMER METALS LIMITED
08
OPERATIONS
SUMMARY
Annual Report 2024
HAMMER METALS LIMITED
09
Operations Summary
Mt Isa Project
(QLD)
The Company is an active mineral explorer in the Mount Isa
region, focused on discovering large copper-gold deposits
of the Ernest Henry and Mount Isa styles and has a range of
prospective targets at various stages of testing.
Through its wholly owned subsidiaries, the Company holds a
strategic tenement position covering ~3,000km2 with 100%
interests in the Kalman (Cu-Au-Mo-Re) deposit, the Overlander
North and Overlander South (Cu-Co) deposits, the Elaine-Dorothy
(Cu-Au) deposit, the Lakeview (Cu-Au) deposit and a 51% interest
in the Jubilee (Cu-Au) deposit.
The ground position is focused on major regional-scale structural
zones and extends for over 100km from Dugald River in the north
to the Tick Hill gold area in the south.
The highlight of the FY24 year was the significant transaction with
Carnaby Resources whereby Hammer sold up to a 70% interest
in the three Mount Hope Sub-blocks for a consideration of up to
$20million. The first tranche of this transaction completed with
the exchange of a 51% interest in these sub-blocks with Hammer
receiving $4million in cash and $5million in Carnaby shares.
Over the year the company progressively tested many highly
prospective targets defined through geophysical and geochemical
programs. A number of these targets generated significant
copper intercepts from the drilling programs completed during
the year. These targets at Hardway, Mount Mascotte, Tourist
Zone and Overlander will provide for follow up drilling targets
and potentially new JORC resources for Hammer’s Mount Isa
mineral inventory.
Continuation of extensive soil geochemical surveys has
delineated new targets in and around Hammer’s high priority
JORC compliant resource at Kalman and along other highly
prospective trends. New Joint Ventures at Bullrush with Sumitomo
Metal Mining and in the Isa Valley with South32 increase the list
of targets likely to be drilled in FY25, improving the chances of
a significant base metal discovery.
Annual Report 2024
HAMMER METALS LIMITED
10
Mount Isa Project Locations
Annual Report 2024
HAMMER METALS LIMITED
11
Mount Isa
Copper Gold Projects
ܟKalman
Kalman is one of Australia’s largest and highest-grade deposits
of molybdenum and rhenium, containing 38k t of molybdenum,
84,100 kg of rhenium 208k t of copper, 343k oz of gold and
1.9m oz of silver (See ASX Announcement 8 May 2023).
The 100%-owned Kalman deposit, located 50km south-east of
Mt Isa and 25km south of the Barkly Highway, is one of the
few polymetallic deposits in Queensland to contain significant
molybdenum and rhenium in addition to copper and gold. With
open pit and underground mining potential, the deposit remains
open at depth and along strike.
In December, the Australian Government released an updated list
of “critical minerals” deemed essential to the Australia’s energy
and security requirements. The updated list of “critical minerals”
contains both molybdenum and rhenium.
Hammer will continue to advance its Kalman project in FY25,
with a view to updating several key study components of the
project including mining and metallurgical studies. As one of
the world’s highest grade undeveloped molybdenum projects,
Kalman stands ready to benefit from an increasingly strategic
metal with a wide range of applications in the world’s move to
cleaner and greener sources of energy.
Spot prices for molybdenum remain strong with molybdenum
prices averaging approximately US$50,000/tonne during the
financial year.
Kalman Oblique View Looking Northwest showing Copper Equivalent % Blocks
(See ASX Announcement 8 May 2023)
Operations Summary
Annual Report 2024
HAMMER METALS LIMITED
12
ܟKalman Exploration
Two holes (204m) were drilled at Kalman North to test surface
rock chip anomalism and a FLEM conductor plate. The last
sample in K-158 also intersected a significant gold interval of
4m at 1.14g/t Au from 128m.
Initial soil sampling delineated a 600m long copper anomaly (at greater than 200ppm) at Kalman East. This area is coincident with
a +10ppm molybdenum-in-soil anomaly (see ASX Announcement 12 June 2023). This anomaly is of a similar scale to the Kalman
system. Extensional and in-fill soil sampling has been conducted to the east along the Pilgrim Fault to the south of Kalman.
Copper (left) and Molybdenum (right) soil responses from the Kalman East anomaly
(See ASX Announcement 12 June 2023)
Annual Report 2024
HAMMER METALS LIMITED
13
ܟHardway
The Hardway prospect was identified as a highly prospective
target to be pursued during 2024.
Follow-up RC drilling at Hardway in FY24 was designed to
further evaluate zones of higher-grade mineralisation intersected
in previous programs. The program completed comprised a
further eight holes (952m) and focused on in-filling zones of
mineralisation over approximately 600m of strike.
The RC drilling intersected consistent zones of copper oxide
mineralisation, confirming historical intersections and increasing
confidence in the nature of the mineralisation. Significant
intersections from drilling included (see ASX Announcement 31
October 2023):
→
47m at 1% Cu from 14m in HMHWRC017
→
43m at 0.9% Cu from 16m within 88m at 0.62% Cu from
surface in HMHWRC014
→
52m at 0.71% Cu from 78m in HMHWRC019, and
→
35m at 0.84% Cu from 46m in HMHWRC015
A diamond drilling program was also completed at Hardway, partly
funded by a $300,000 Queensland Government Collaborative
Exploration Initiative (CEI) grant. The drilling program was designed
to delineate mineralisation below the deeply weathered oxide zone
and provide good sections through the target zone to facilitate
alteration studies (refer to ASX announcement dated 3 April 2024).
Figure 2. Long Section at Hardway with target zones
(refer ASX announcements 12 June 2023, 24 May 2023 and 31 October 2023)
Operations Summary
Annual Report 2024
HAMMER METALS LIMITED
14
ܟTourist Zone
Tourist Zone is located approximately 15km north of the Mount
Hope Mining lease and located between the regionally significant
Fountain Range Fault and the Overlander Granite intrusion. The
prospect was first examined by Summit Gold between 1993 and
1997. Hammer’s program in Q4 of 2023 drilled two holes at Tourist
Zone (342m), which returned significant intersections of (see ASX
Announcement 30 November 2023):
→
15m at 1.13% Cu and 0.24g/t Au from 121m in
HMTZRC001 within 30m at 0.8% Cu; and
→
2m at 3.02% Cu and 0.53g/t Au from 107m in
HMTZRC002 within 12m at 1.14% Cu and 0.18g/t Au.
Follow up soil sampling to the south of historical exploration has
identified a high-priority copper-gold soil anomaly at Tourist Zone
South, with peak soil results of 0.49g/t Au and 0.74% Cu. The soils
reported higher grades of anomalism than the previously drilled
anomaly, with the anomalous zone now stretching for up to 3km
with width of up to 150m.
Field mapping and geological reconnaissance has defined a
prospective trend for an upcoming Reverse Circulation drilling
program. Rock chip samples collected from the zone returned
results of up to 3.96g/t Au and 14.3% Cu.
Tourist Zone – New copper-in soil anomaly
(see ASX Announcement 30 November 2023)
ܟOverlander
Drilling at Overlander focused on soil anomalism on the western
side of the Overlander shear at Overlander Central. Overlander
Central consists of a thick zone of rhyolite which has been subject
to silica alteration and crackle brecciation. Previous intersections
at the prospect include 104m at 0.25% Cu from 30m in OVRC032.
Two holes were drilled for a total of 414m. The drilling returned
two broad zones of copper mineralisation including (see ASX
Announcement 30 November 2023):
→
113m at 0.21% Cu from 45m in OVRC037; and
→
90m 0.23% Cu from 4m in OVRC038
The broad zones of mineralisation delineated during this drilling
along with many other similar intersections confirm the extent of
the copper mineralising event at Overlander. Hammer will focus
on exploring for zones of higher-grade mineralisation within this
extensive mineralised system.
Annual Report 2024
HAMMER METALS LIMITED
15
ܟMount Mascotte and Mascotte Junction
Mt Mascotte consists of a north-striking, vertically-dipping
gossan zone which was historically mined by a small open
cut and two shafts (now collapsed) in the early 1900’s.
Hammer’s early-stage drilling at the Mount Mascotte prospect has
delivered good intervals of copper mineralisation including (see
ASX announcement 19 December 2022 and 27 October 2023):
→
53m at 1.55% Cu and 0.52g/t Au from 77m in
HMMARC008 including:
→
12m at 2.48% Cu and 0.71g/t Au from 77m; and
→
9m at 2.33%Cu and 0.68g/t Au from 95m; and
→
6m at 3.73% Cu and 1.47g/t Au (from 50m) and 1m at
1.97% Cu and 0.23g/t Au (from 63m) in HMMARC002
Chalcocite and malachite mineralisation
– Sample FHB079 – Laboratory assays
of 24% Cu and 0.14g/ Au.
1True widths are yet to be established.
The Mt Mascotte intersection has potential along strike to the south
with follow-up drilling to be considered in the coming programs.
At Mascotte West, follow up of a fixed-loop EM plate delineated
a conductive plate extending for approximately 700m of strike
extent. This EM conductor was coincident with outcropping gossans
however drilling has downgraded this prospect test with the best
drilling results recording a moderate intercept of 12m at 0.2% Cu
from 88m in HMMARC011.
Mascotte West Prospect with Mount
Hope in the background.
Operations Summary
Annual Report 2024
HAMMER METALS LIMITED
16
Mount Isa East Joint Ventures
And Earn-ins
(Cu/Au/Pb/Zn), QLD
During the year, Hammer entered three new Joint Venture
agreements increasing the number of JV’s to six, covering
937km2 out of its ~3,000km2 position in the Mount Isa region.
Hammer has retained a 100% interest in ~1,900km2 of tenure
and a 100% interest in its JORC compliant Mineral Resources
at Kalman, Overlander, Elaine and Lakeview.
Summary of Hammer Joint Ventures within the Mount Isa Project
Joint Venture
Partner
HMX
Interest
Blocks
Area (km2)
Proportion of
Tenure
Mount Isa East JV
SMMO
~40%
104
334
12%
Mt Frosty JV
Glencore
51%
9
29
1%
Dronfield JV
Kabiri
80%
49
157
6%
Mt Hope JV (new)
Carnaby
49%
3
10
0%
Isa Valley JV (new)
South32
100%
100
321
11%
Bullrush (new)
SMMO
100%
27
87
3%
HMX 100%(new)
100%
583
1,871
67%
Total
875
2,808
100%
During the year, new agreements were executed with Sumitomo Metal Mining Oceania (Bullrush JV), South32 (Isa Valley JV) and
Carnaby Resources (Mount Hope JV).
Annual Report 2024
HAMMER METALS LIMITED
17
Mount Hope JV with Carnaby
Resources
(HMX 49%) Cu-Au
Hammer Metals executed a binding agreement to divest
equity in three Sub-Blocks at Hammer’s Mount Hope
South tenements in the Mt Isa region of Queensland to
Carnaby Resources Limited (“Carnaby”) (ASX: CNB) for total
consideration of up to $20 million.
Mount Hope Region
Operations Summary
Annual Report 2024
HAMMER METALS LIMITED
18
Hammer remains a substantial holder of tenure in and around the
Mount Hope project with leading prospects at Mascotte, Revenue
and Smith’s Store all set to benefit from additional exploration
in the coming year.
Carnaby acquired an initial 51% interest in the Sub-Blocks for
consideration comprising $4 million in cash and $5 million in
Carnaby shares, with the Carnaby shares to be escrowed for 12
months. Hammer is currently Carnaby’s largest shareholder with
a shareholding of ~ 5.3%.
Upon a decision to mine at either of Carnaby’s Mount Hope
Central or Mount Hope North open pits, Carnaby will pay an
additional $5 million in cash to Hammer and Carnaby’s interest
in the Sub-Blocks will increase to 70%.
Profit generated from any ore mined within the Mount Hope
Central or Mount Hope North open pits that is derived from within
the Sub-Blocks will be shared based on the 70%/30% ownership
interests of the parties in the Sub-Blocks pursuant to a standard
profit-sharing agreement.
Upon a positive Final Investment Decision in respect of a
separate new open pit or underground development to mine ore
within the Sub-Blocks (Sub-Block FID), Carnaby will pay Hammer
an additional $6 million in cash. Carnaby’s interest in the Sub-
Blocks will remain at 70%. Carnaby will free-carry Hammer
through to production from any new Sub-Block development
(see ASX Announcement 2 April 2024).
ܟSouth Hope (49% HMX)
The main prospect within the JV area is the South Hope
prospect with Hammer completing programs during the year.
Copper and gold mineralisation at South Hope consists of a
steeply west-dipping and south-plunging quartz breccia pipe with
chalcopyrite as the main copper-bearing sulphide. The country
rock is composed of metasediments and amphibolite.
Drill-hole HMHSRC007 was designed to intercept the shoot
at a higher elevation than HMHSRC001. Significant intercepts
included (see ASX Announcement: 4 July 2023):
→
15m at 3.47% Cu within a broader mineralised zone of 56m
at 1.12% Cu.
Additional drilling to test beneath existing high-grade intercepts
and also test the down-plunge continuation of the South Hope
shoot. With results including: (see ASX Announcement 5
December 2023):
→
14m at 3.34% Cu and 0.72g/t Au from 113m within a
broader envelope of: .
o 34m at 2.5% Cu and 0.49g/t Au in HMSHRC010;
Preliminary interpretation of down-hole EM conducted on
HMHSRC011 indicates continuation of a steeply south-plunging
conductor at the prospect.
Annual Report 2024
HAMMER METALS LIMITED
19
Hope South Long Section looking west and showing the continuation of the conductive zone
(see ASX Announcement 5 December 2023)
Operations Summary
Annual Report 2024
HAMMER METALS LIMITED
20
Bullrush JV with Sumitomo
Metal Mining Oceania
(SMMO Option to earn up to 60-80%) Cu-Au
Agreement was executed with Sumitomo Metal Mining
Oceania Pty Ltd (SMMO), providing SMMO with the
opportunity to earn up to an 80% interest in Hammer’s
Bullrush Project.
The Joint Exploration Agreement covers 27 sub-blocks within
EPM25866, located 90km south-east of Mount Isa (See ASX
Announcement 27 June 2024). The Bullrush Project’s tenure
is located over covered portions of the Wimberu Granite with
magnetically active margins of the multi-phase “Williams-age”
intrusive complex. The JV is targeting IOCG deposits within
the granite.
During the earn-in period, SMMO can achieve up to an 80%
interest in the Project Area by free-carrying Hammer to the
completion of a Pre-Feasibility Study. The earn-in period is
staged as follows:
→
Farm-in Fee: SMMO paid Hammer $100,000, representing
a proportion of historical expenditure on this project.
→
Minimum Commitment: SMMO must fund an initial 2,000m
drilling program, within 12 months.
→
First Farm-in Period: At SMMO’s election, it can earn a 51%
interest by expending $4.5 million within a 4-year period.
→
Second Farm-in Period: At SMMO’s election, SMMO may fund
a further $2,000,000 of exploration expenditure over a one-
year period to increase its ownership in the Project to 60%.
→
Third Farm-in Period: Upon completion of the Second Farm-
in period, Hammer may elect to contribute its pro-rata share
of exploration expenditure to maintain a 40% interest in the
project. Should Hammer elect to not contribute, SMMO
may earn an additional 20% interest by sole funding a Pre-
Feasibility Study.
Bullrush Joint Venture area showing the initial target areas
(See ASX Announcement 19 September 2022)
Annual Report 2024
HAMMER METALS LIMITED
21
Isa Valley Earn-in Agreement
with South-32
(S32 Option to Earn Up To 70-80%) Cu-Au-Pb-Zn
Agreement was executed with South32 Group Operations
Pty Ltd providing South32 with an option to earn an 80%
interest in Hammer’s EPM28189.
Hammer’s Isa Valley Project is located in an analogous
geological setting to the Mt Isa Deposit. The Mount Isa and
George Fischer-Hilton lead-zinc deposits (124Mt @ 7% Zn, 6%
Pb and 255Mt at 3.3% Cu and 228Mt @5.5% Pb, 10.6%Zn and
97g/t Ag respectively) have been mined continuously since 1931.
EPM28189 covers a proportion of the strike length of the
Mount Isa Fault. Exploration has been sporadic along this zone
since the 1960’s with limited recent work being completed on
this tenure. The prospective zones have seen limited deeper
drilling, and no modern, deep-sensing geochemical sampling
has been conducted within the Joint Venture area. (See ASX
Announcement 27 May 2024).
During the earn-in period, South32 can achieve up to an 80%
interest in the Project Area by free-carrying Hammer to the
completion of a Pre-Feasibility Study. The earn-in period is
staged as follows, noting that South32 earns its interest after
the completion of the third stage of the earn-in period:
o Stage 1: South32 has completed an initial screening with ionic
leach soil sampling and field assessment of the tenement.
o Stage 2: At South32’s election, South32 will fund expenditure
for a drilling program approved by a Technical Committee,
comprising 900 metres of drilling, subject to an expenditure
cap of A$150,000, to be completed within 12 months of
commencing Stage 2.
o Stage 3: At South32’s election, South32 must fund
A$3,000,000 of exploration expenditure over a three-year
period. South32 may extend the Stage 3 earn-in period, by
a further 12 months whereupon expenditure commitment
during this period shall be increased from A$3,000,000 to
A$4,000,000. Upon the completion of Stage 3, South32 will
have earned a 70% interest in the project and a joint venture
will be formed.
→
Upon completion of the Stage 3, South32 may earn an
additional 10% interest in the Joint Venture by sole funding
a Pre-Feasibility Study (as defined in the JORC Code 2012
Edition).
→
Upon completion of the earn-in, at either the conclusion of
Stage 3 or the completion of a Pre-Feasibility Study, each
party can elect to contribute to exploration expenditure on
a pro-rata basis in accordance with its interest.
Any party that elects to not contribute to the Joint Venture will
be diluted via a standard dilution mechanism with any party
diluting to less than a 10% interest, having their ongoing interest
in the project convert to a 1% Net Smelter Return royalty.
Hammer’s EPM28189 and various base
metal prospects within the tenure
Operations Summary
Annual Report 2024
HAMMER METALS LIMITED
22
Mount Isa East Joint Venture
(MIEJV) with SSMO
(HMX ~40%) Cu-Au
The Joint Venture area covers sections of the Even Steven,
Mount Philp, Dronfield West and Malbon target areas
covering ~ 330km2 of the Mount Isa Project.
The areas are considered highly prospective for the discovery of
Iron Oxide Copper Gold Deposits (“IOCG”). The Joint Venture
is now in its fifth year of operation with the exploration activities
heavily focussed on several highly prospective areas of interest.
During the year, SMMO reached a milestone $6 million of
exploration expenditure under the JV and has now elected to
continue funding the joint venture. For now, Hammer has chosen
to dilute its interest in the Joint Venture, preserving capital to
focus on its 100%-owned prospects.
Activities during the year included over 3000m of drilling at Prince
of Wales, Thunderer, Toby, Secret and Shadow South targets. The
programs were designed to test a combined magnetic, gravity,
induced polarisation and geochemical anomalies.
Extensional soil sampling, geological reconnaissance and rock chip
sampling was conducted over the Jimmy Creek, Malbon and Even
Steven prospects. Induced polarisation surveys were conducted
at Shadow, Secret, Even Steven and Jimmy Creek with a number
of promising anomalies observed. In addition a VTEM survey was
conducted over the Dronfield and Malbon Areas of Interest.
Oblique view of the Jimmy Creek trend and the southern portion of the 4km long Even Steven trend showing
IP chargeability response (see ASX Announcement 28 November 2023)
Annual Report 2024
HAMMER METALS LIMITED
23
Yandal Projects (WA)
Hammer holds a 100% interest in ~ 290km2 of tenements,
located within the Yandal greenstone belt in Western Australia.
The maiden mineral resource at North Orelia was the highlight for the Yandal project in FY24. The North Orelia gold resource remains
open at depth and offers excellent exploration prospects across the 2km strike length of gold anomalism. Additional drilling completed
during the year focussed on anomalous lithium geochemistry at North Orelia in addition to air core drilling at Sword and Harrier.
Hammer Metals Yandal Project tenements
Operations Summary
Annual Report 2024
HAMMER METALS LIMITED
24
Yandal Gold Projects
(100% Hammer), WA
ܟOrelia North Gold Deposit
Hammer released a maiden Mineral Resource Estimate
(MRE) for the Orelia North gold deposit.
14 holes for 1,610m were drilled on the Orelia North Target 1 gold
prospect. This infill drilling was designed to provide sufficient
drilling data to enable Hammer to prepare a maiden Mineral
Resource Estimate (see ASX Announcement 24 July 2024).
An infill drilling program was completed during the year with
intercept highlights of:
→
1m at 14.44g/t Au from 83m within an envelope of 15m at
1.44g/t Au from 82m in BWSRC059;
→
5m at 2.01g/t Au from 51m with an envelope of 37m at
0.44g/t Au from 36m in BWSRC063; and
→
2m at 9.18g/t Au from 45m within an envelope of 14m at
2.10g/t Au from 40m in BWSRC069.
The Orelia North project was estimated to contain 1.48Mt grading
1.15g/t Au for 54.5koz of contained gold (0.5g/t Au cut-off).
The Orelia North deposit is located approximately 9.5km to the
north of the Orelia gold operation operated by Northern Star
Resources Limited (ASX: NST) and ~12.5km north-west of NST’s
Bronzewing Gold Operations.
Oblique view looking northwest showing drilling and block model with optimised pit
Annual Report 2024
HAMMER METALS LIMITED
25
Orelia North Deposit - Inferred Mineral Resource Estimate by weathering domain (Au 0.5g/t cutt-off) - July 2024
Domain
Mt
Au (g/t)
Au (koz)
Oxide
0.03
0.80
0.7
Transition
1.35
1.11
48.3
Fresh
0.10
1.74
5.5
Total
1.48
1.15
54.5
→
Note rounding of total tonnage and metal content
The Orelia North Target 1 Resources are located within the Orelia shear zone, which extends for approximately 15km along strike to
the north of the Lotus and Cockburn pits and adjacent to the 1Moz Orelia gold deposit held by Northern Star Limited.
Section 1 showing interpreted geology, significant intercepts (reported), block model with optimised pit.
Operations Summary
Annual Report 2024
HAMMER METALS LIMITED
26
Additional Yandal Targets
(ܟSword, Harrier and Lithium)
Two other drilling programs were completed during the
financial year with an air core program targeting gold at
Sword and Harrier, whilst a Reverse Circulation (RC) drilling
program targeting Lithium mineralisation at North Orelia.
Four holes (808m) targeted the Orelia Target 1 Pegmatite system
down-dip and along strike to the east. Previous multi-element
analyses had confirmed that the pegmatites had the potential to
host lithium mineralisation, however the maximum lithium assay
from this drilling was 647ppm Li in BWSRC057 between 128m
and 129m. (See ASX Announcement 29 April 2024).
An initial review of multi-element assays within and on the
margins of pegmatites indicates that there is a geochemical
gradation down-dip and along strike to the east showing:
→
Increasing Li and Cs;
→
Decreasing Ti/Zr and Nb/Ta ratios.
This gradation is consistent with a possible lithium-bearing zone
located to the east and at depth from the area currently drill tested.
The Tapenade Prospect was tested by three holes (216m). The
target was to intersect lithium-bearing micaceous zones at depth.
The drilling failed to repeat the surface assays and as a result
the prospect has been downgraded.
An Air Core drilling program has been completed at Hammer’s
Sword and Harrier prospects. The Sword Prospect is located
on the eastern side of the Overlord Thrust in an analogous
geological setting to the Julius Gold Deposit (owned by Northern
Star Resources), located 6km to the north. Sword has been
drilled previously by Newmont Gold Corporation and Echo
Resources Limited. The previous drilling consisted of vertical
wide-spaced holes.
Historical shallow air core drilling at Sword encountered
intercepts of 4m @ 2.53g/t Au from 92m in ERB0200 and 23m
@ 0.47% Ni from 28m in ERB0220 . Hammer will drill test the
area through multiple fences of angled holes.
The Harrier Prospect is located 3km to the south-east of the
Bronzewing Gold Deposit. The tenement is located on the
eastern limb of the Bronzewing anticline and given the tenements
proximity to the former mine, it remains lightly explored.
Annual Report 2024
HAMMER METALS LIMITED
27
COMPETENT
PERSON’S
STATEMENTS
Annual Report 2024
HAMMER METALS LIMITED
28
Competent Person’s Statements
ܟExploration Results
The information in this report as it relates to exploration results and geology is based on, and fairly represents, information and
supporting documentation that was compiled by Mr. Mark Whittle, who is a Fellow of the AusIMM and an employee of the Company.
Mr. Whittle, who is a shareholder and option-holder, has sufficient experience which is relevant to the styles of mineralisation and
types of deposit under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in
the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Whittle
consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
ܟMineral Resource Estimates
Where the company refers to Mineral Resource Estimates it confirms that it is not aware of any new information or data that materially
affects the information included in those announcements and all material assumptions and technical parameters underpinning the
resource estimates continue to apply and have not materially changed.
Annual Report 2024
HAMMER METALS LIMITED
29
ܟAnnual Mineral Resource Statement
(As of 30 June 2024)
The Company’s Mineral Resource Statement has been compiled in accordance with the Australian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (The JORC Code 2012 and 2004 Editions) and Chapter 5 of the ASX Listing Rules
and ASX Guidance Note 31. The Company has no Ore Reserve estimates.
The Company governs its activities in accordance with industry best-practice. The reported estimates for all mineral resource estimates
were generated by reputable, independent consulting firms. The resource reports and supporting data were subjected to internal
analysis and peer-review before release.
In 2016, Hammer Metals Limited commissioned Haren Consulting Pty Ltd to update the Kalman Resource based on new drilling
and geological interpretation. The resource was issued on the 27th of September 2016. After the completion of additional drilling
2021/2022, Hammer commissioned Haren Consulting Pty Ltd to update the Kalman Resource based on new drilling and geological
interpretation. The resource was issued on the 8th of May 2023.
In November 2018, H&S Consultants Pty Ltd was commissioned to undertake a resource estimate on the Jubilee Cu-Au Deposit. The
MRE has been estimated in accordance with the 2012 edition of the JORC Code and was issued on 12 December 2018.
In December 2022, Geowiz consulting was commissioned by Hammer Metals Limited to undertake the Mineral Resource Estimate
(MRE) for the Lakeview copper-gold deposit. The MRE has been estimated in accordance with the 2012 edition of the JORC Code.
In July 2024, Geowiz consulting was commissioned by Hammer Metals Limited to undertake the Mineral Resource Estimate (MRE)
for the Orelia North gold deposit. The MRE has been estimated in accordance with the 2012 edition of the JORC Code.
Cerro Resources Limited, the previous tenure holder over the Mt. Philp Hematite Deposit reported the Resource Estimate to the ASX
on the 12 March 2012. The Mt Philp Resource Estimate adhered to the JORC Code 2004 edition.
In relation to the Overlander, Mt Philp and Jubilee Resources, there have been no material changes to the Resource Estimates during
the reporting period.
There have been no material changes to any MRE’s during the reporting period, however the MRE for the North Orelia gold deposit,
reported on 24 July 2024, has been shown in this annual Mineral Resource Statement.
Resource Project
Mineral Resource
Competent Person
Organization
ASX Reporting Date
Orelia North
Mr. R. Corben
Geowiz Consulting
24 July, 2024
Lakeview
Mr. R. Corben
Geowiz Consulting
21 December, 2022
Jubilee
Mr. L. Burlet
H&S Consultants Pty Ltd
12 December, 2018
Kalman
Ms. E. Haren
Haren Consulting
8 May, 2023
Overlander
Ms. E. Haren
Haren Consulting
26 August, 2015
Mt. Philp
Mr. T. Leahey
Cerro Resource NL
28 September, 2012
Annual Mineral Resource Statement
Annual Report 2024
HAMMER METALS LIMITED
30
ܟKalman Deposit JORC 2012 Mineral Resource Estimate
(8 May, 2023)
(Reported at a 0.4% CuEq and 1% CuEq cut-off for open pittable and underground
resources respectively)
Classification
Mining
Method
CuEq
Cut-off
Tonnes
Kt(1)
CuEq
Cont.
% (3)
CuEq
Rec.
%(2,3,4)
Cu
%
Au
g/t
Ag
g/t
Mo
%
Re
g/t
Contained
Cu Eq Metal
(Kt) (1)
Recovered
Cu Eq
Metal (Kt)(1)
Indicated
Open Pit
0.4%
17,120
1.04
0.87
0.43 0.22
1.2
0.08
1.7
180
150
Inferred
Open Pit
0.4%
10,540
1.11
0.93
0.40 0.21
1.3
0.10
2.2
120
100
Inferred
Underground
1.0%
11,530
1.78
1.48
0.80 0.41
2.2
0.12
2.7
200
170
Total
39,190
1.27
1.07
0.53 0.27
1.5
0.10
2.1
500
420
→
Note: (1) The recovered copper equivalent equation is: CuEq Recovered = 0.86*Cu + (0.74*0.771051*Au) +
(0.74*0.008336*Ag) + (0.86*4.857143*Mo) + (0.77*0.023334*Re)
→
Note: (2) Copper Equivalent Price assumptions are: Cu: US$7,714/t (US$3.50/lb); Au: US$1,850/oz; Ag: US$20/oz; Mo:
US$37,468/t (or US$17/lb); and Re: US$1,800/kg
→
Note: (3) Recovery assumptions are: Cu 86%; Au 74%; Ag 74%; Mo 86%; and Re 77%.
→
Note: (4) Transition from Open to Underground Mining based on prior optimisation studies set at 75mRL. Surface RL is
approximately 425mRL.
The Kalman Molybdenum-Rhenium-Copper-Gold-Silver (Mo-Re-Cu-Au-Ag) deposit is situated 60 kilometres southeast of Mt Isa within
the Mt Isa Inlier, and forms part of the company’s Kalman Project.
Drilling extends to a maximum down hole depth of 998.3 metres and the mineralisation was modelled from surface to a depth of
approximately 800 metres below surface. The estimate is based on good quality RC and diamond core drilling data. The drill hole
spacing is approximately 100 metres along strike with some 50 metre-spaced infill drilling.
In May 2023, Haren Consulting was contracted by Hammer Metals Limited to complete an update of the Mineral Resource estimate
for the deposit. The estimate was reported to comply with the 2012 Edition of the ‘Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves’ by the Joint Ore Reserves Committee (JORC).
The Kalman Mineral Resource has been reported at two cut-off grades to reflect both open pit and underground mining scenarios.
The Kalman Mineral Resource estimate comprises a combined 39 million tonnes at 1.1% recovered copper equivalent (CuEq)
at 0.53% copper, 0.27 g/t gold, 0.10% molybdenum and 2.1 g/t rhenium in the Indicated and Inferred categories at revised cut-off
grades. (Refer to the ASX release dated 23 May 2023).
The Kalman Mineral Resource Estimate disclosed as part of the 2016 review was last updated in March 2016 in accordance with
the JORC Code (2012 Edition). The Resource estimate comprised a combined 20 million tonnes at 1.8% copper equivalent (CuEq)
at 0.53% Cu, 0.27g/t Au, 0.14% Mo and 3.7 g/t Re in the Inferred category. (Refer to the ASX Release dated 27 September 2016
for full details of the Resource Estimate.)
The reasons for the MRE update were:
→
17 holes (K140-K156) drilled by Hammer in 2021/22 were incorporated into the resource model. The drill holes intersected
multiple, relatively shallow high-grade molybdenum and copper intersections which were considered to have the potential to
enhance the existing mineral resource model.
→
The deposit was re-interpreted to improve mineralisation constraints.
The 2016 resource update differed from the 2014 update in that the resulting total resource tonnage was increased from 20,000kt
to 39,120kt and average metal grades decreased, primarily due to the use of lower cut-off grades.
Annual Report 2024
HAMMER METALS LIMITED
31
ܟOverlander North And South Deposits JORC 2012 Mineral Resource
Estimate (26 August, 2015)
(Reported at 0.7% Cu cut-off)
OVERLANDER NORTH MINERAL RESOURCE
Classification
Tonnes
Cu
%
Co
ppm
Cu
Tonnes
Co
Tonnes
Indicated
253,000
1.4
254
3,414
64
Inferred
870,000
1.3
456
11,350
396
Total
1,123,000
1.3
410
14,764
461
→
Note: (1) Numbers rounded to two significant figures to reflect appropriate levels of confidence
→
Note: (2) Totals may differ due to rounding
OVERLANDER SOUTH MINERAL RESOURCE
Classification
Tonnes
Cu
%
Co
ppm
Cu
Tonnes
Co
Tonnes
Indicated
-
-
-
-
-
Inferred
649,000
1.0
500
6,352
327
Total
649,000
1.0
500
6,352
327
→
Note: (1) Numbers rounded to two significant figures to reflect appropriate levels of confidence
→
Note: (2) Totals may differ due to rounding
OVERLANDER NORTH AND SOUTH COMBINED MINERAL RESOURCE
Classification
Tonnes
Cu
%
Co
ppm
Cu
Tonnes
Co
Tonnes
Indicated
253,000
1.4
254
3,414
64
Inferred
1,518,000
1.2
476
17,700
723
Total
1,772,000
1.2
445
21,112
788
→
Note: (1) Numbers rounded to two significant figures to reflect appropriate levels of confidence
→
Note: (2) Totals may differ due to rounding
The 100%-owned Overlander Project is situated 60 kilometres to the southeast of the mining centre of Mount Isa in Northwest
Queensland and 6 kilometres to the west of Hammer’s Kalman copper-gold-molybdenum-rhenium deposit. It is a high-priority target
area for both shear-hosted copper and IOCG copper mineralisation. The Overlander North and South Copper Deposits are situated
approximately one kilometre apart within a common shear zone.
Annual Mineral Resource Statement
Annual Report 2024
HAMMER METALS LIMITED
32
Drilling in the Overlander North deposit extends to a vertical depth of approximately 430m and the mineralisation was modelled from
surface to a depth of approximately 420 metres below surface. Drilling in the Overlander South deposit extends to a vertical depth
of approximately 215 metres and the mineralisation was modelled from surface to a depth of approximately 180m below surface.
The resource estimates are based on good quality RC and diamond drilling data. Drill hole spacing is predominantly on a 40 metre
by 20 metre spacing with additional drill holes between sections targeted at the higher-grade cores of the deposits.
Following additional drilling in 2014 and 2015, the Mineral Resource Estimates for the Overlander North and South shear-hosted
copper Deposits were revised by Haren Consulting Pty Ltd and reported in accordance with the guidelines of the JORC Code (2012
Edition). They contain combined resources of 1,772,000 tonnes at 1.2% copper in the indicated and inferred categories (Refer to the
ASX release dated 26 August 2015). There has been no material change to the Overlander resource base during the financial year.
ܟLakeview Deposit JORC 2012 Mineral Resources Estimate
(21 December, 2022)
(Reported at 0.3% Cu cut-off)
LAKEVIEW MINERAL RESOURCE
Classification
Tonnes
Mt
Cu
%
Au
g/t
Cu
Tonnes
Au
Ounces
Inferred
0.59
1.02
0.30
6,049
5,706
In December 2022, Geowiz consulting was commissioned by Hammer Metals Limited to undertake the Mineral Resource Estimate
(MRE) for the Lakeview copper-gold deposit. The MRE has been estimated in accordance with the 2012 edition of the JORC Code.
The 100%-owned Lakeview Deposit is located approximately 60 kilometres east of Mt Isa in northwest Queensland. A total of 13
Reverse Circulation (RC) drillholes define the deposit for 1,380 m of drilling. The deposit was sampled by drilling at nominal 40 m
spacing on 40m north-south oriented sections. Holes were generally angled at -60° towards the south with dip angles set to optimally
intersect the mineralised horizons, which dip at approximately 65°-70° to the north.
Mineralised intersections for the two main lodes were manually coded in each drill hole using a nominal 0.3% Cu cut-off. The coded
mineralised intersections were loaded into Leapfrog software and vein geological models were generated from the coded intervals for
the three interpreted lodes. Domain wireframes were extracted from the Leapfrog model and exported into Surpac™ V6.6 software
where they were used as a guide to generate final wireframes used to constrain the resource modelling.
A block model was set up with a parent cell size10m (E) x 4m (N) x 5m (RL) with standard sub-celling to 5m (E) x 2.0m (N) x 2.5m (RL)
to maintain the resolution of the mineralised domains. The 4m Northing dimension was used to reflect the geometry and orientation of
the domain wireframes. Samples composited to 1m length were used to interpolate Cu and Au into the block model using ordinary
kriging interpolation method. All block modelling was completed using Surpac™ v6.6 software.
Density was assigned to the block model based on 18 density measurements taken inside the interpreted lodes.
A Lerchs-Grossman pit optimisation was run using a Cu price of AUD$5.30 per pound and Au price of AUD$2,500 per ounce. The
block model was reported inside the pit shell to determine that blocks >0.3% Cu have reasonable prospects of future economic
extraction by surface mining.
Although the RC drilling has defined 3 continuous mineralised lodes, exploration of the Lakeview deposit is in the early stages and
more drilling is required to better define the extent of the deposit. Due to the limited amount of drilling, the MRE has been classified
as Inferred only based on the guidelines specified in the JORC Code.
The deposit appears to be of sufficient grade, quantity, and coherence to have reasonable prospects for eventual economic extraction.
Annual Report 2024
HAMMER METALS LIMITED
33
ܟJubilee Deposit JORC 2012 Mineral Resource Estimate (12 December, 2018)
(Reported at 0.5% Cu cut-off)
Classification
Weathering Domain
Tonnes
Cu
%
Au (Cut)
g/t
Cu
Tonnes
Au (Cut)
Ounces
Inferred
Mod-Slightly Weathered
1.51
0.55
1,000
1,200
Inferred
Fresh
1.41
0.63
19,000
27,100
Total
1.41
0.62
20,000
28,300
→
Note: (1) Numbers rounded to two significant figures to reflect appropriate levels of confidence
→
Note: (2) Totals may differ due to rounding
The 51%-owned Jubilee Deposit is situated 50 kilometres west of Mount Isa in Northwest Queensland.
In November 2018, H&S Consultants Pty ltd was commissioned to undertake a resource estimate on the Jubilee Cu-Au Deposit. The
resource was issued on 12 December 2018.
The estimate is based on good quality RC and Diamond drilling data. The estimate was based on a 42 reverse circulation holes for
5475m and 3 diamond holes for 261m. Of these holes 26 were drilled by Hammer Metals Ltd and the remaining 19 drilled by the
previous operator. Drilling extends to a maximum depth of 325m below surface. The drill hole spacing is approximately 50m along strike.
There has been no material change to the Jubilee Resource estimate since its initial release to the ASX dated 20 December 2018.
Refer to the ASX release dated 20 December 2018. The company is not aware of any new information or data that materially affects
the information in the HMX ASX announcement. All material assumptions and technical parameters underpinning the mineral resource
estimate continue to apply and have not materially changed.
ܟMt. Philp Deposit JORC 2004 Mineral Resource Estimate
(28 March, 2012)
Classification
Tonnes
Fe %
P %
SiO2 %
Al2O3 %
TiO2 %
LOI %
Indicated
19,110,000
41
0.02
38
1.3
0.38
0.29
Inferred
11,400,000
34
0.02
48
2.0
0.46
0.31
Total
30,510,000
39
0.02
42
1.6
0.41
0.30
→
Note: (1) Numbers rounded to two significant figures to reflect appropriate levels of confidence
→
Note: (2) Totals may differ due to rounding
The Mount Philp Iron Ore deposit is located in north-western Queensland, 1,500 kilometres northwest of Brisbane. The Mineral
Resource Estimate is based on 48 diamond and reverse circulation (RC) drillholes completed in 2011 for a total of 3,801 metres.
Drilling comprises fans located on a nominal 100 metre pattern along the strike length of the ironstone. The Mineral Resource was
estimated and reported in-house by Cerro Resource NL.
The current resource totals 19.1 million tonnes grading 41.4% iron and 37.9% silica in the Indicated category and 11.4 million tonnes
grading 33.8% iron and 47.4% silica in the Inferred category. This resource is open at depth.
A resource estimate was first completed and reported to ASX by previous owners on 28 September 2012 and there has been no
material change to the resource base during the financial year. A review of the resource estimate was completed for the purpose of
compiling this statement and the principles and methodology of the resource estimation procedure and the resource classification
procedure have been reconciled with the CIM Resource Reserve definitions and found to comply.
Annual Mineral Resource Statement
Annual Report 2024
HAMMER METALS LIMITED
34
ܟOrelia North JORC 2012 Mineral Resource Estimate (24 July 2024)
(Reported at 0.5g/t Au cut-off)
OVERLANDER NORTH MINERAL RESOURCE
Classification
Tonnes
Mt
Au
g/t
Au
kOz
Inferred
1.48
1.15
54.5
→
Note: (1) Numbers rounded to two significant figures to reflect appropriate levels of confidence
→
Note: (2) Totals may differ due to rounding
In July 2024, Geowiz consulting was commissioned by Hammer Metals Limited to undertake the Mineral Resource Estimate (MRE)
for the Orelia North gold deposit. The MRE has been estimated in accordance with the 2012 edition of the JORC Code.
The Orelia North deposit is located approximately 9.5km to the north of the Orelia gold operation operated by Northern Star Resources
Limited (ASX: NST) and ~12.5km northwest of NST’s Bronzewing Gold Operations in the Yandal Greenstone belt in Western Australia.
The Mineral Resource Estimate was based on 338 drillholes for a total of 18.44km and 7,314 laboratory analyses. These holes were
drilled in 2019 and 2024 and consisted of 43 Reverse Circulation holes (4.65km) and 295 Air Core holes (13.78km). The drill hole
spacing throughout the project is approximately 50 to 100m along strike. Drill spacing down dip is typically 20 to 40m.
Drill holes are orientated predominantly to an azimuth of approximately 77° and drilled at an angle of -60° to the east which is
approximately perpendicular to the orientation of the mineralised trends.
The Orelia North Mineral Resource envelopes extend over a strike length of 2,100m and from surface to approximately 140m below
surface. Multiple parallel hypogene mineralisation envelopes occur across strike. A total of eleven hypogene envelopes embrace the
mineralisation. Envelopes vary from 1m to 15m in true thickness, covering a total width of 150m.
Three flat-lying supergene envelopes are superimposed on the hypogene envelopes. These extend from surface to a maximum depth
of 100m. Average maximum depth is approximately 40m.
A block model was set up with a parent cell size 5m (E) x 20m (N) x 4m (RL) with standard sub-celling to 1.25m (E) x 5.0m( N) x
1.0m (RL) to maintain the resolution of the mineralised domains. The 5m Easting dimension was used to reflect the geometry and
orientation of the domain wireframes.
Samples composited to 2m length were used to interpolate Au into the block model using ordinary kriging for the hypogene domains
after applying top-cuts to reduce the influence of outlier grades. Samples composited to 1m length were used to interpolate Cu and Au
into the block model using ordinary kriging interpolation method. All block modelling was completed using Surpac™ v6.6 software.
Density was assigned to the block model based on Gas Pycnometric analysis, and 34 analyses were undertaken. 23 samples fall
within the interpreted hypogene lode wireframes. The remaining 11 analyses were classified as waste.
A Lerchs-Grossman pit optimisation was run using a Au price of AUD$3,500 per ounce. The block model was reported inside the
pit shell to determine that blocks >0.5 ppm Au have reasonable prospects of future economic extraction by surface mining.
The deposit has been tested with high quality drilling, sampling and assaying. Geological logging has defined structural and
lithological controls that provide confidence in the interpretation of mineralisation boundaries.
Geowiz considers that geological and mineralisation continuity has been demonstrated with sufficient confidence to allow the Orelia
North deposit to be classified as Inferred Mineral Resources. The deposit appears to be of sufficient grade, quantity, and coherence
to have reasonable prospects for eventual economic extraction.
Annual Report 2024
HAMMER METALS LIMITED
35
ܟGovernance And Internal Controls – Resource Calculations
The Company ensures good governance in relation to resource estimation through the use of third-party resource consultants and
internal review in accordance with industry best practice. All reported resource estimates were generated by reputable, independent
consulting firms. The resource reports and supporting data were subjected to internal analysis and peer review before release. The
Company is not aware of any additional information, other than that reported, which would have a material effect on the estimates
as reported.
Due to the nature, stage and size of the Company’s existing operations, the Board believes there would be no efficiencies gained by
establishing a separate mineral reserves and resources committee responsible for reviewing and monitoring the Company’s processes
for calculating mineral reserves and resources estimates and for ensuring that the appropriate controls are applied to such calculations.
The Company will report any future mineral reserves and resources estimates in accordance with the 2012 JORC Code.
ܟResource By Commodity
The Company ensures good governance in relation to resource estimation through the use of third-party resource consultants and
internal
Deposit
Tonnes
Contained
CuEq
Recovered
CuEq
Cu
Au
Co
Mo
Re
Fe
Kalman
(Updated)
39.2
1.27
1.07
0.53
0.27
-
0.10
2.1
-
Jubilee
(51% HMX)
1.4
-
-
1.41
0.62
-
-
-
-
Overlander
1.8
-
-
1.20
-
0.05
-
-
-
Lakeview
0.6
-
-
1.03
0.30
Orelia North
1.48
1.15
Mount Philp
30.5
-
-
-
-
-
-
-
39.00
Annual Mineral Resource Statement
Annual Report 2024
HAMMER METALS LIMITED
36
Competent Person’s Statements
The information in this Annual Mineral Resources Statement is based on, and fairly represents, information and supporting
documentation that was compiled by Mr. Mark Whittle, who is a Fellow of the AusIMM and an employee of the Company. Mr. Whittle,
who is a shareholder and option-holder, has sufficient experience which is relevant to the styles of mineralisation and types of deposit
under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of
the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2004 JORC Code) and the 2012
Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2012 JORC Code).
Mr. Whittle consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
TENEMENT INTERESTS AT END OF SEPTEMBER 2023
ܟMt Isa (Queensland)
Mt. Dockerell Mining Pty Ltd
Lease
Lease Name
Lease Status
Interest
EPM 11919
Cameron River
Granted
100%
EPM 13870
Pelican
Granted
100%
EPM 18084
Dronfield
Granted
80%
EPM 25165
Cameron River 4
Granted
100%
EPM 26474
Enterprise
Granted
100%
EPM 26511
Sling Shot
Granted
100%
EPM 26628
Argylla
Granted
100%
EPM 26694
Mt Philp
Granted
40%
EPM 26775
Pilgrim North
Granted
100%
EPM 26776
Pilgrim Central
Granted
100%
EPM 26777
Pilgrim South
Granted
100%
EPM 26902
Marriage
Granted
40%
EPM 26904
Jady Jenny
Granted
100%
EPM 27018
Dingo Creek
Granted
100%
EPM 27469
Mount Moran
Granted
100%
EPM 27470
China Wall
Granted
100%
EPM 27806
Roos
Granted
40%
EPM 27815
Lady Vampire
Granted
100%
EPM 27861
Saint Mungo
Granted
100%
EPM 28285
The Plus
Granted
100%
EPM 28903
Pandora
Granted
100%
Tenement Interests
Annual Report 2024
HAMMER METALS LIMITED
37
Mulga Minerals Pty Ltd
Lease
Lease Name
Lease Status
Interest
EPM 12205
Cloncurry
Granted
100%
EPM 14019
South Mary K
Granted
100%
EPM 14022
North Mary K
Granted
100%
EPM 14467
Mt Frosty
Granted
51%
EPM 25145
Green Creek
Granted
100%
EPM 25866
Malbon
Granted
100%
EPM 25867
Mt Jasper
Granted
100%
EPM 26126
Cathay
Granted
100%
EPM 26127
Resolve
Granted
100%
EPM 26130
El Questro
Granted
100%
EPM 26512
Black Angel
Granted
100%
EPM 27355
Pioneer
Granted
100%
EPM 29066
Dipvale
Application
100%
Hammer Bulk Commodities Pty Ltd
Lease
Lease Name
Lease Status
Interest
EPM 28189
Resolve Extended
Granted
100%
EPM 28921
Ashover
Application
100%
ܟYilgarn (Western Australia)
Carnegie Exploration Pty Ltd
Lease
Lease Name
Lease Status
Interest
E36/854
Granted
100%
E36/868
Kens Bore
Granted
100%
E36/869
Granted
100%
E36/870
Granted
100%
E36/916
Granted
100%
E36/996
Granted
100%
Annual Report 2024
HAMMER METALS LIMITED
38
Lease
Lease Name
Lease Status
Interest
E36/1006
Application
100%
E36/1108
Application
100%
E53/1989
Granted
100%
E53/1996
Granted
100%
E53/2030
Granted
100%
E53/2085
Granted
100%
E53/2112
Granted
100%
E53/2113
Granted
100%
E53/2114
Granted
100%
E53/2115
Granted
100%
E53/2116
Granted
100%
E53/2117
Granted
100%
E53/2118
Granted
100%
E53/2127
Granted
100%
E53/2128
Granted
100%
E53/2359
Application
100%
P36/1857
Granted
100%
P36/1858
Granted
100%
P53/1682
Granted
100%
P53/1683
Granted
100%
P53/1684
Granted
100%
P53/1685
Granted
100%
P53/1686
Granted
100%
P53/1687
Granted
100%
P53/1688
Granted
100%
P53/1689
Granted
100%
P53/1690
Granted
100%
P53/1691
Granted
100%
P53/1692
Granted
100%
P53/1693
Granted
100%
P53/1694
Granted
100%
P53/1695
Granted
100%
P53/1696
Granted
100%
P53/1697
Granted
100%
Annual Report 2024
HAMMER METALS LIMITED
39
DIRECTORS
REPORT
The Directors present their
report together with the financial
report of Hammer Metals Limited
(“the Company” or “Hammer”)
and of the Group, comprising
the Company and its subsidiaries,
for the year ended 30 June 2024
and the auditor’s report thereon.
Annual Report 2024
HAMMER METALS LIMITED
40
ܟ1. Directors
The names and details of the
Company’s directors in office during
the financial year or since the end of
the financial year are set out below:
RUSSELL DAVIS Non-Executive Chairman
BSc (Honours) MBA MAusIMM
Russell Davis is a Geologist with over 40 years’ experience
in the mineral resources business. He has worked on the
exploration and development of a range of commodities for a
number of international and Australian companies, holding senior
technical and corporate positions including Chief Mine Geologist,
Exploration Manager and Managing Director. Mr Davis was a
founding Director of Gold Road Resources Limited in 2005 and
continued as an Executive then Non-executive Director until June
2016. Mr Davis was also founding Director of Syndicated Metals
Limited in 2007 and Managing Director up to March 2012. Mr
Davis has been a Director of Hammer Metals (Australia) Pty Ltd
since its inception in 2012.
DANIEL THOMAS Managing Director
BSc (Applied Chemistry), MBA
Daniel Thomas has over 20 years’ experience in operations,
corporate development, project management and project finance
having completed undergraduate studies in Chemistry and
Geology as well as attaining an MBA from the Melbourne Business
School. During his career, Mr Thomas has worked across Australia,
North America, Asia and Africa, in a wide range of commodities,
including base and precious metals. Mr Thomas’ most recent
role before joining the Company was as Business Development
Manager at Sandfire Resources (ASX:SFR), where he was
instrumental in utilising cash-flows generated by the DeGrussa
Copper-Gold Mine to grow the Company both organically through
exploration and through business development initiatives, including
several acquisitions, investments and joint ventures. Prior to his
time at Sandfire Resources Limited, Mr Thomas held roles with
Wesfarmers, PTT Asia Pacific Mining and Mitsui E&P Australia.
DAVID CHURCH Non-Executive Director
LLB, BEc
David Church is currently a Partner in the national legal firm
Thompson Geer and the Non-Executive Chairman of Caprice
Resources Limited. Mr Church is a qualified solicitor and has
previously practiced in England and Wales and Hong Kong
with Linklaters. Mr Church was also the head of mergers and
acquisitions for Regent Pacific Group Limited, a Hong Kong listed
investment company, for over 13 years.
JAMES CROSER
Non-Executive Director (appointed 8 September 2023)
BEng (Mining Engineering)
James Croser has over 25 years of experience in operational and
executive roles with a strong track record in guiding junior ASX
companies through periods of significant growth. Most recently,
Mr Croser was a founding Director in the establishment of Red Dirt
Metals (now Delta Lithium – ASX:DLI) and the discovery of the Mt
Ida lithium deposit in WA.
ZBIGNIEW LUBIENIECKI
Non-Executive Director (resigned 7 September 2023)
BSc (Applied Geology), MAIG
Zbigniew (“Ziggy”) Lubieniecki holds a Bachelor of Science (Applied
Geology) and is an experienced exploration geologist with more
than 30 years’ experience in exploration, mining, management,
property acquisition and company listings. Mr Lubieniecki has
held senior positions including Chief Mine Geologist for Plutonic
Resources Limited, Exploration Manager for Australian Platinum
Mines and Executive Director of Gold Road Resources Limited. Mr
Lubieniecki has had a successful exploration career including the
discovery of the 6.2-million-ounce Gruyere gold deposit.
Annual Report 2024
HAMMER METALS LIMITED
41
ܟ2. Directorships Of Other Listed Companies
Directorships of other ASX listed companies held by Directors in the 3 years
immediately before the end of the financial year are as follows:
Name
Company
Period of Directorship
Russell Davis
M3 Mining Limited
July 2022 - current1
Daniel Thomas
None
-
David Church
Caprice Resources Limited
October 2019 - February 2024
James Croser2
Delta Lithium Limited
Greenstone Resources Limited
December 2021 - current
November 2023 - June 2024
Zbigniew Lubieniecki3
Cosmo Metals Limited
August 2022 - July 2024
1 – Mr Davis was a director of M3 Mining Limited prior to its listing on the Australian Securities Exchange in July 2022
2 – Mr Croser was appointed to the board on 8 September 2023
3 – Mr Lubieniecki resigned from the board on 7 September 2023
ܟ3. Company Secretary
MARK PITTS Company Secretary
B.Bus, FCA, GAICD
Mr Pitts is a Chartered Accountant with over 35 years’ experience in statutory reporting and business administration. He has been
directly involved with, and consulted to, a number of public companies holding senior financial management positions.
ܟ4. Directors’ Meetings
The number of Directors’ meetings held, and the number of meetings attended by
each of the Directors of the Company during their term in office in the financial year
is as follows:
Director
Meetings held while in office
Meetings attended
Mr R Davis
6
6
Mr D Thomas
6
6
Mr D Church
6
6
Mr J Croser
5
5
Mr Z Lubieniecki
1
1
The Company does not have any committees. Matters usually considered by an audit, remuneration or nomination committee were
dealt with by the whole Board during regular Board meetings.
Directors Report
Annual Report 2024
HAMMER METALS LIMITED
42
ܟ5. Principal Activity
The principal activity of the Group during the course of the financial year was mineral exploration in Australia.
ܟ6. Operating And Financial Review
The Group incurred an after-tax profit for the year of $6,270,584 (2023: loss of $1,285,536).
CORPORATE:
The following issues of ordinary shares were completed during
the year:
→
6 July 2023 a total of 3,000,000 options exercisable at
$0.035 on or before 30 June 2024 were validly exercised
and 3,000,000 new ordinary shares were issued upon
their conversion. The funds for the exercise were received
during the previous financial year; and
→
On 2 August 2023, the Company issued 3,666,667
ordinary shares to Directors of the Company at an issue
price of $0.06 per share. These shares were issued in
conjunction with the Share Placement completed on 5
June 2024, and the issue was approved by shareholders
at the General Meeting held on 13 July 2023.
During the financial year 7,000,000 options lapsed unexercised
and 9,500,000 new options were issued.
Since the end of the financial year, 2,600,000 options have
expired. No further options or rights have been granted or
expired.
During the financial year, 9,000,000 performance rights were
granted and 5,000,000 expired. Since the end of the financial
year, no further performance rights have been issued or have
expired.
EXPLORATION ACTIVITIES:
Hammer is currently exploring in two world-class minerals
provinces, focused on the discovery of copper and gold deposits.
In the Mount Isa region, the Group continued an aggressive
exploration program unearthing a number of encouraging
copper/gold exploration targets. Hammer continues to advance
its exploration activities in the Yandal Belt in WA, testing new
lithium targets emerging in addition to several prospective gold
targets near the former Bronzewing gold mine.
QUEENSLAND - MOUNT ISA REGION PROJECTS
In the Mount Isa base metals district, Hammer has five projects
with established copper-gold-molybdenum JORC resources. The
Group is committed to growing its metal inventory near these
existing resources, in addition to exploring the district for large
iron oxide copper-gold (IOCG) deposits of the Ernest Henry style
(approximately 220 million tonnes at 1.1% Cu and 0.5g/t Au). The
Group holds approximately 3,000 km2 of tenure in the Mt. Isa
region. A systematic IOCG targeting exercise within the Mount Isa
region is ongoing through the Mount Isa East JV with Sumitomo
Metal Mining Oceania (“SMMO”) and 100% funded activities.
In FY24, Hammer Metals reshaped its Mount Isa portfolio,
entering three new Joint Ventures across a small portion of its
exploration tenure. Through a landmark agreement with Carnaby
Resources (“Carnaby”) (ASX:CNB), Hammer agreed to sell up
to a 70% interest in its three sub blocks surrounding the Mount
Hope project for a consideration of up to $20million. Upfront
consideration for an initial sale of a 51% interest in the project was
$4 million in cash and $5million in Carnaby Resources shares.
Future payments of up to $11 million become due as the project
progress through to development.
New Joint Ventures over highly prospective terrain have been
established with SMMO and South32. These projects have
been established with the aim of defining a large Tier 1 mineral
systems such as Ernest Henry and the Mount Isa Copper/Lead/
Zinc systems.
Mt. Isa project – wholly-owned projects
Hammer’s activities during the year focussed on the exploration of
promising copper gold systems that were first identified in FY23
at Hardway, South Hope and Mascotte. Hammer continued to
drill test over 14 new and exciting targets during the year, many
of which had never been previously drilled. Key results achieved
during the year include:
Annual Report 2024
HAMMER METALS LIMITED
43
→
South Hope
o 15m at 3.47% Cu and 0.7g/t Au from 44m in
HMSHRC007;
→
Mascotte
o 53m at 1.55% Cu and 0.52g/t Au from 77m in
HMMARC008
→
Hardway
o 41m at 1% Cu from 14m in HWRC017;
o 43m at 0.9% in HMHWRC019; and
o 43m at 0.9% in HMHWRC019; and
(Refer ASX Announcements – 3 July 2023, 27 July 2023 and 31 October 2023)
In December 2023, the Australian government added
molybdenum to the critical minerals list. Hammer’s Kalman
project is one of Australia’s largest known deposits of
contained molybdenum and rhenium. Having completed a
JORC resource update for the Kalman project during the
year, Kalman could be the key deposit to underpin a future
critical minerals development in the Mount Isa region.
The updated Mineral Resource Estimate (MRE) completed
for the 100%-owned Kalman copper-gold-silver-molybdenum-
rhenium deposit contains 39.2Mt at 1.07% Recovered Copper
Equivalent (“CuEq Rec”) at 0.53% Cu, 0.27g/t Au, 0.10%
Mo, 1.5g/t Ag and 2.1g/t Re. This equates to ~500,000t of
contained copper equivalent metal and represents a ~39%
increase in the contained metal within the deposit. Drilling at
Kalman delivered an additional 10Mt of material to the Indicated
categorisation within the MRE (a 141% increase on the 2016
MRE). The Kalman MRE contains 208,400t of copper, 343,200
oz of gold, 38,000t of molybdenum, 1.92m oz of silver and
84,100 kg of rhenium (refer ASX Announcement 8 May 2023).
Kalman Deposit - JORC 2012 Mineral Resouce Estimate (May 2023)
Classification
Mining
Method
CuEq
Cut-off
Tonnes
Kt(1)
CuEq
Cont.
% (3)
CuEq
Rec.
%(2,3,4)
Cu
%
Au
g/t
Ag
g/t
Mo
%
Re
g/t
Contained
Cu Eq Metal
(Kt) (1)
Recovered
Cu Eq
Metal (Kt)(1)
Indicated
Open Pit
0.4%
17,120
1.04
0.87
0.43 0.22
1.2
0.08
1.7
180
150
Inferred
Open Pit
0.4%
10,540
1.11
0.93
0.40 0.21
1.3
0.10
2.2
120
100
Inferred
Underground
1.0%
11,530
1.78
1.48
0.80 0.41
2.2
0.12
2.7
200
170
Total
39,190
1.27
1.07
0.53 0.27
1.5
0.10
2.1
500
420
→
Note: (1) Rounded to nearest 10kt
→
Note: (2) The recovered copper equivalent equation is: CuEq Recovered = 0.86*Cu + (0.74*0.771051*Au)
+ (0.74*0.008336*Ag) + (0.86*4.857143*Mo) + (0.77*0.023334*Re)
→
Note: (3) Copper Equivalent Price assumptions are: Cu: US$7,714/t (US$3.50/lb); Au: US$1,850/oz; Ag: US$20/oz;
Mo: US$37,468/t (or US$17/lb); and Re: US$1,800/kg
→
Note: (4) Recovery assumptions are: Cu 86%; Au 74%; Ag 74%; Mo 86%; and Re 77%
→
Note: (5) Transition from Open to Underground Mining based on prior optimisation studies set at 75mRL.
Surface RL is approx 425mRL
EXPLORATION ACTIVITIES:
Mount Hope JV (Carnaby Resources earning up to
70% Interest)
Consideration from the initial tranche of payments was received
during the year, comprising $4 million in cash and 9,090,909
shares in Carnaby Resources Limited (ASX: CNB) (escrowed for
12 months). In return, a 51% interest in the three Mount Hope sub-
blocks has been granted to Carnaby. Hammer will retain a 30%
equity interest and will be free-carried by Carnaby to production
from the three Sub-Blocks.
Bullrush JV (SMMO earning up to a 60-80% interest)
Joint Exploration Agreement executed with SMMO, providing
SMMO with the opportunity to earn up to an 80% interest in
Hammer Metals’ Bullrush Project in NorthWest Queensland
(Project). The Bullrush Project has geophysical signatures that
are suggestive of IOCG mineralisation beneath cover varying
between 80m to 250m in thickness. Hammer will operate the
Joint Exploration Program until the completion of the first Earn-
in Period.
Directors Report
Annual Report 2024
HAMMER METALS LIMITED
44
Mt Isa East Joint Venture (“MIEJV”) (Hammer’s
Current Ownership ~40%)
Work on the MIEJV continued throughout the year, including
drill testing of high priority targets at Shadow South, Secret
and Prince of Wales. Additional targets at Jimmy Creek, Even
Steven and Malbon were also investigated during geochemical
and geophysical programs including a sizeable VTEM program.
Isa Valley JV (South32 Option to Earn up to an 80%
interest)
South32 has an option to earn an 80% interest in the Isa
Valley Project in North-West Queensland (Project) and form
a joint venture. The Project covers sections of the Mount Isa
Fault comprising an area of ~320km2 and is considered highly
prospective for Mount Isa-style sediment hosted lead-zinc-copper
mineralisation similar in style to the Mount Isa and George Fisher-
Hilton deposits (124Mt @ 7% Zn, 6% Pb and 255Mt at 3.3% Cu
and 228Mt @5.5% Pb, 10.6% Zn and 97g/t Ag respectively).
South32 will manage and operate the exploration program.
WESTERN AUSTRALIA - BRONZEWING
SOUTH PROJECT
Hammer’s tenements cover prospective structural trends in the
core of the Yandal Greenstone Belt. This region has reported
greater than 24Moz of current and historical gold production
from deposits such as Bronzewing, Jundee, Mt McClure, Darlot
and Thunderbox.
During the year the company completed a reverse circulation
drilling program at the Orelia North gold prospect which has
subsequently allowed the Company to release a maiden JORC
Mineral resource Estimate for the prospect. The Orelia North
deposit extends from surface and remains open at depth with
excellent potential to expand the resource.
The company also completed a first pass test of a prospective
lithium target along the Orelia North trend. Drilling was unable
to explain the widespread lithium geochemical anomaly that is
observed at the prospect.
RISK MANAGEMENT:
The Company takes a proactive approach to risk management.
The Board is responsible for ensuring that risks, including
emerging risks, and also opportunities, are identified on a timely
basis and the Company’s objectives and activities are aligned
with the risks and opportunities identified by the Board.
Given the size of the Company and its stage of development
all Board members are involved and have responsibility for
management of risk. Day to day management of risks are
delegated to the Managing Director.
Material business risks
There are inherent risks associated with the exploration
for minerals. The Group faces the usual risks encountered
by companies engaged in the exploration, evaluation and
development of minerals. The material business risks for the
Group include:
→
External Risks
Environmental risks
The Company’s operations and projects are subject to the
laws and regulations of the jurisdictions in which it has
interests and carries on business (Queensland and Western
Australia) regarding environmental compliance and relevant
hazards. There is also a risk that the environmental laws
and regulations may become more onerous, making the
Group’s operations more expensive which may adversely
affect the financial position and /or performance of the
Group. The Directors are not aware of any environmental
law that is not being complied with.
The Company may be impacted by climate related risks
including reduced water availability, extreme weather events
and changes to legislation and regulation in relation to
climate.
Government regulations and claims risks
Changes in law and regulations or government policy
may adversely affect the Group’s operations. There is
no guarantee that current or future exploration claim
applications or existing claim renewals will be granted,
that they will be granted without undue delay, or that the
Company can economically comply with any conditions
imposed on any granted exploration claims. Loss of
claims may adversely affect the financial position and /or
performance of the Group. Management maintains close
contact with relevant Departments and industry bodies to
monitor changes and proposed changes in regulation and
policy.
Cyber risk
The Group uses various IT systems and cloud based
software. Should a cyber event occur, there is a risk of
business disruption or data breach that may adversely
affect the financial position and/or performance of the
Group.
Annual Report 2024
HAMMER METALS LIMITED
45
→
Operating Risks
Exploration and development risk
The exploration for and development of mineral deposits
involves significant risks that even a combination of careful
evaluation, experience and knowledge may not eliminate.
While the discovery of an ore body may result in substantial
rewards, not all exploration activity will lead to the discovery
of economic deposits. Major expenditure may be required
to locate and establish Ore Reserves, to establish rights to
mine the ground, to receive all necessary operating permits,
to develop metallurgical processes and to construct mining
and processing facilities at a particular site.
Mineral Resources
The Group’s estimates of Mineral Resources are based
on different levels of geological confidence and different
degrees of technical and economic evaluation, and no
assurance can be given that anticipated tonnages and
grades will be achieved or could be mined or processed
profitably.
In addition to the risks described above, the Group’s ability
to successfully develop projects is contingent on the Group’s
ability to fund those projects through debt or equity raisings.
ܟ7. Dividends
No dividends were paid or declared by the Company during the financial year.
ܟ8. Events Subsequent To Balance Date
Subsequent to year end the following events have occurred:
→
On 3 July 2024, 2,600,000 unlisted options exercisable at $0.05 each expired, having lapsed unexercised on 30 June
2024. The value of these options has been recognised against accumulated losses during the current financial year.
Other than the above, there has not been any other matter or circumstance that has arisen after balance date that has significantly
affected, or may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group
in future financial periods.
ܟ9. Likely Developments
The Company will continue planning and executing exploration and development work on its existing projects in Australia as well as
projects under review in Australia to complement and expand on existing tenement holdings.
ܟ10. Directors’ Interests
The relevant interest of each Director in the shares and options of the Company as
notified by the Directors to the Australian Securities Exchange in accordance with
S205G(1) of the Corporations Act 2001, at the date of this report is as follows:
Director
Ordinary shares
Unlisted options
Performance Rights
Mr R Davis
43,744,013
3,500,000
-
Mr D Thomas
4,833,334
4,000,000
12,000,000
Mr D Church
1,052,631
4,000,000
-
Mr J Croser
-
4,000,000
-
The above table includes indirect shareholdings held by related parties to the directors.
Directors Report
Annual Report 2024
HAMMER METALS LIMITED
46
ܟ11. Environmental Regulations
In the course of its normal mining and exploration activities Hammer adheres to environmental regulations imposed on it by the
various regulatory authorities, particularly those regulations relating to ground disturbance and the protection of rare and endangered
flora and fauna.
Hammer has complied with all material environmental requirements up to the date of this report. The Board believes that Hammer
has adequate systems in place for the management of its environmental requirements and is not aware of any breach of these
environmental requirements as they apply to it.
ܟ12. Remuneration Report – Audited
12.1 PRINCIPLES OF COMPENSATION
Remuneration levels for key management personnel and other staff of Hammer are competitively set to attract and retain appropriately
qualified and experienced personnel and therefore includes a combination of cash paid and the issuance of options and rights. Key
management personnel comprise the directors of the Company and senior executives for Hammer. Staff remuneration is reviewed
annually.
Consequences of performance on shareholder wealth
In establishing performance measures and benchmarks to ensure incentive plans are appropriately structured to align corporate
behaviour with the long-term creation of shareholder wealth, the Board has regard for the stage of development of the Company’s
business, share price, operational and business development achievements (including results of exploration activities) that are of
future benefit to the Company.
Annual Report 2024
HAMMER METALS LIMITED
47
In considering Hammer’s performance and benefits for shareholder wealth, the
Board have regarded the following indices in respect to the current and previous four
financial years:
2024
2023
2022
2021
2019
Loss per share (cents)
0.71
(0.16)
(0.08)
(0.08)
(0.40)
Net loss ($)
6,270,584
(1,285,536)
(645,270)
(611,525)
(1,978,610)
Share price at 30 June
$0.037
$0.061
$0.045
$0.092
$0.043
Service contracts
Daniel Thomas – Managing Director
The Company entered into an Executive Service agreement with
Mr Thomas on 1 August 2022, which was revised on 1 July 2024.
An Executive service fee of $300,000 (plus superannuation) per
annum is payable with an indefinite term. Either Party can terminate
the agreement subject to a three-month notice period. Mr Thomas
is not entitled to any termination payments other than for services
rendered at time of termination.
Mark Pitts – Company Secretary
Mr Pitts is a Principal in the Company Secretarial and CFO
advisory divisions of the Automic Group providing secretarial
support and corporate and compliance advice, pursuant to a
contract with the Company. The contract has no fixed term with
the option of termination by either party with two months’ written
notice. Mr Pitts is not entitled to any termination payments other
than for services rendered at time of termination.
Non-executive directors
AEffective from 1 July 2024, all non-executive Directors receive a
fixed annual Directors’ fee of $50,000 (plus superannuation benefits
as required under the applicable legislation). The Chair receives
a fixed annual fee of $75,000 (plus superannuation benefits as
required under the applicable legislation). During the financial
year ended 30 June 2024, non-executive Directors’ received a
fixed annual fee of $50,000 inclusive of superannuation benefits
and the Chair received a fixed annual fee of $75,000 inclusive of
superannuation benefits.
The maximum aggregate amount of non-executive Directors’ fees
payable by the Company as approved by the shareholders at the
2011 annual general meeting is $300,000 per annum.
Share trading policy
In December 2010, Hammer introduced a share trading policy
which sets out the circumstances in which directors, executives,
employees and other designated persons may deal with securities
held by them in the Company. This includes any shares or any
other securities issued by the Company such as options. The
policy includes restriction on key management personnel and other
employees from entering into arrangements that limit their exposure
to losses that would result from share price decreases. Entering into
such arrangements has been prohibited by law since 1 July 2011.
Directors Report
Annual Report 2024
HAMMER METALS LIMITED
48
ܟ12.2 Directors’ and senior executives’ remuneration
Details of the nature and amount of each major element of the remuneration of each director
of the Company and other key management personnel of the Group are:
Year Ended 30 June 2024
Short Term
Long Term
Proportion of
remuneration
performance
related %
Value of options
and rights as
proportion of
remuneration %
Directors
Salary &
fees $
Consulting
fees $
Movement in
leave accruals1 $
Superannuation
benefits $
Options and
Rights $
Total $
Executive
Mr D Thomas
277,851
-
9,260
28,711
218,004
533,826
33.4%
40.8%
Non-executive
Mr R Davis
67,568
-
-
7,432
-
75,000
-
-
Mr D Church
45,045
-
-
4,955
29,850
79,850
-
37.4%
Mr J Croser2
36,787
-
-
4,047
103,200
144,034
-
71.6%
Mr Z Lubieniecki
8,383
3,000
-
922
-
12,305
-
-
Total - Directors
435,634
3,000
9,260
46,067
351,054
845,015
21.1%
41.5%
Other Key Management Personnel Executives
Mr M Pitts
(Company Secretary)
69,975
-
-
-
-
69,975
-
-
Total – all key
management personnel
505,609
3,000
9,260
46,067
351,054
914,990
19.5%
38.4%
1 – Represents the accounting value of the movement in accrued leave liabilities, and not amounts paid to the member of Key Management Personnel.
2 – Appointed 8 September 2023.
3 – Resigned 7 September 2023.
Annual Report 2024
HAMMER METALS LIMITED
49
ܟ12.2 Directors’ and senior executives’ remuneration
Details of the nature and amount of each major element of the remuneration of each director
of the Company and other key management personnel of the Group are:
Year Ended 30 June 2023
Short Term
Long Term
Proportion of
remuneration
performance
related %
Value of options
and rights as
proportion of
remuneration %
Directors
Salary &
fees $
Consulting
fees $
Movement in
leave accruals1 $
Superannuation
benefits $
Options and
Rights $
Total $
Executive
Mr D Thomas
278,583
-
3,863
25,292
22,1612
329,899
6.7%
6.7%
Non-executive
Mr R Davis
67,873
7,299
-
7,127
64,950
147,249
-
44.1%
Mr Z Lubieniecki
45,249
39,313
-
4,751
64,950
154,263
-
42.1%
Mr D Church
45,249
-
-
4,751
64,950
114,950
-
56.5%
Total - Directors
436,954
46,612
3,863
41,921
217,011
746,361
3.0%
29.1%
Other Key Management Personnel Executives
Mr M Pitts
(Company Secretary)
60,000
-
-
-
-
60,000
-
-
Total – all key
management personnel
496,954
46,612
3,863
41,921
217,011
806,361
2.7%
26.9%
1 – Represents the accounting value of the movement in accrued leave liabilities, and not amounts paid to the member of Key Management Personnel.
2 – Represents the vesting expense of options and rights issued during a previous period.
Directors Report
Annual Report 2024
HAMMER METALS LIMITED
50
ܟ12.3 Value of options to key management personnel
The value of options will only be realised if and when the market price of the Company shares, as quoted on the Australian Securities
Exchange, rises above the Exercise Price of the options. Further details of the options are contained below.
ܟ12.4 Options and rights over equity instruments granted as compensation
5,500,000 options were granted to Non-Executive Directors and 4,000,000 options and 9,000,000 performance rights were granted
to the Managing Director, during the current year. The terms of these options and rights are noted in the table below.
ܟ12.5 Analysis of options and rights over equity instruments granted as compensation
Granted during the current financial year
No options were granted as remuneration to key management personnel during the year.
Key Management Personnel
Number of
options granted
Date granted
% Vested
% Forfeited
/ Lapsed
Financial year
in which grant
vested / will vest
Daniel Thomas –
Management Options
Tranche 1
2,000,000
17 November 2023
100%
-
-
Daniel Thomas –
Management Options
Tranche 2
2,000,000
17 November 2023
-
-
30 June 2025
David Church
1,500,000
17 November 2023
100%
-
-
James Croser
4,000,000
7 September 2023
100%
-
-
The fair value of the options issued during the year to Key Management Personnel was determined by reference to the Black-Scholes
option pricing model. The key inputs and valuations are summarised as follows:
Management
– T1
Management
– T2
D Church
J Croser
Underlying security spot price on grant date
$0.05
$0.05
$0.05
$0.055
Exercise price
$0.08
$0.08
$0.08
$0.08
Grant date
17 Nov 2023
17 Nov 2023
17 Nov 2023
7 Sept 2023
Expiration date
30 Nov 2026
30 Nov 2026
30 Nov 2026
30 Nov 2026
Vesting date
Immediate
15 Dec 2024
Immediate
Immediate
Life (years)
3
3
3
3.25
Volatility
75%
75%
75%
75%
Risk free rate
4.172%
4.172%
4.172%
3.841%
Dividend Yield
-
-
-
-
Number of options
2,000,000
2,000,000
1,500,000
4,000,000
Valuation per option
$0.0199
$0.0199
$0.0199
$0.0258
Annual Report 2024
HAMMER METALS LIMITED
51
Management
– T1
Management
– T2
D Church
J Croser
Remaining life (years)
2.4
2.4
2.4
2.4
Total value
$39,200
$39,200
$29,850
$103,200
Value recognised to date
$39,200
$22,829
$29,850
$103,200
Value still to be recognised
-
16,371
-
-
The following performance rights, which all expire on 15 December 2027, were issued to the Company’s Managing Director during
the year:
→
500,000 Tranche 1A Management Performance Rights,
vesting upon the continuous service for a period of 12
months from the date of issue;
→
500,000 Tranche 1B Management Performance Rights,
vesting upon the continuous service for a period of 12
months from the date of issue and the share price of the
Company’s shares listed on the ASX achieving a premium
of 50% over the 15-day VWAP prior to the issue date, or
$0.078;
→
500,000 Tranche 2A Management Performance Rights,
vesting upon the continuous service for a period of 24
months from the date of issue;
→
500,000 Tranche 2B Management Performance Rights,
vesting upon the continuous service for a period of 24
months from the date of issue and the share price of the
Company’s shares listed on the ASX achieving a premium
of 100% over the 15-day VWAP prior to the issue date, or
$0.104; and
→
7,000,000 Tranche 3 Management Performance Rights,
vesting upon the completion (to the Board’s satisfaction)
of a material transaction to the value of a minimum of
30% of the Company’s market capitalisation, determined
based on the 30-day VWAP immediately prior to the
completion or announcement of the transaction.
The fair value of the Management Performance Rights issued during the year to Key Management Personnel was determined by reference
to the underlying security on the date of issue. With respect to Tranches 1A, 2A and 3, these fair values have not been adjusted as
there exist no market-based performance conditions attached to the rights. The key inputs and valuations are summarised as follows:
Management
Performance
Rights -
Tranche 1A
Management
Performance
Rights –
Tranche 2A
Management
Performance
Rights -
Tranche 3
Underlying security spot price on grant date
$0.052
$0.052
$0.052
Grant date
17 Nov 2023
17 Nov 2023
17 Nov 2023
Expiration date
15 Dec 2027
15 Dec 2027
15 Dec 2027
Vesting date (estimated)
15 Dec 2024
15 Dec 2025
15 Dec 2027
Life (years)
4.1
4.1
4.1
Discount applied {a}
-
-
-
Number of rights
500,000
500,000
7,000,000
Value per right
$0.05
$0.05
$0.05
Remaining life (years) {b}
3.5
3.5
3.5
Total value
$26,000
$26,000
$364,000
Value recognised to date (as at 30 June 2024)
$14,914
$7,742
$55,248
Value still to be recognised (as at 30 June 2024)
$11,086
$18,258
$308,752
→
{a} – all the above three tranches of Management Performance Rights issued during the year contain no market-based
vesting conditions and therefore no discount has been applied.
→
{b} – the remaining life represents the time, in years, left until the expiry of the right.
Directors Report
Annual Report 2024
HAMMER METALS LIMITED
52
With respect to Tranches 1B and 2B, the fair values of these rights have been adjusted to recognise the existence of market-based
performance conditions attached to the rights. This valuation has been determined by reference to a Monte Carlo Simulation model.
The key inputs and valuations are summarised as follows:
Management
Performance
Rights - Tranche
1B
Management
Performance
Rights – Tranche
2B
Underlying security spot price on grant date
$0.052
$0.052
Grant date
17 Nov 2023
17 Nov 2023
Expiration date
15 Dec 2027
15 Dec 2027
Vesting date (estimated)
15 Dec 2024
15 Dec 2025
Life (years)
4.1
4.1
Share price barrier
$0.0708
$0.104
Expected volatility
103%
103%
Risk-free rate
4.098%
4.098%
Expected dividend yield
-
-
Number of rights
500,000
500,000
Fair value per right
$0.0502
$0.049
Remaining life (years) {a}
3.5
3.5
Total value
$25,100
24,500
Value recognised to date (as at 30 June 2024)
$14,397
$7,295
Value still to be recognised (as at 30 June 2024)
$10,703
$17,205
→
{a} – the remaining life represents the time, in years, left until the expiry of the right.
Granted during the current financial year
The following options were granted as remuneration to key management personnel during the prior year.
Key Management Personnel
Number of
options granted
Date granted
% Vested
% Forfeited
/ Lapsed
Financial year
in which grant
vested / will vest
Russell Davis
1,500,000
23 November 2022
100%
-
-
Zbigniew Lubieniecki
1,500,000
23 November 2022
100%
-
-
David Church
1,500,000
23 November 2022
100%
-
-
The fair value of the options issued during the year to Key Management Personnel was determined by reference to the Black-Scholes
option pricing model. option pricing model. The key inputs and valuations are summarised as follows:
Annual Report 2024
HAMMER METALS LIMITED
53
Directors
Underlying security spot price on grant date
$0.063
Exercise price
$0.07
Grant date
23 November 2022
Expiration date
30 November 2026
Vesting date
Immediate
Life (years)
4
Volatility
100%
Risk free rate
3.17%
Dividend Yield
-
Number of options
4,500,000
Valuation per option
$0.0433
Remaining life (years)
2.4
Total value
$194,850
Value recognised to date
$194,850
Value still to be recognised
-
The following performance rights, which all expire on 21 December 2024, were issued to the Company’s Managing Director during
the previous financial year:
→
1,000,000 Tranche 6 performance rights, vesting upon the Company announcing a new JORC 2012 compliant mineral
resource estimate of 50,000 tonnes Cu or equivalent KPI at the sole discretion of the Board;
→
1,000,000 Tranche 7 performance rights, vesting upon the Company announcing a new JORC 2012 compliant mineral
resource estimate of 100,000 tonnes Cu or equivalent KPI at the sole discretion of the Board; and
→
1,000,000 Tranche 8 performance rights, vesting upon the Company announcing a new JORC 2012 compliant mineral
resource estimate of 200,000 tonnes Cu or equivalent KPI at the sole discretion of the Board
The fair value of the performance rights issued during the previous year to Key Management Personnel was determined by reference
to the underlying security on the date of issue. These fair values have not been adjusted as there exist no market-based performance
conditions attached to the rights. The key inputs and valuations are summarised as follows:
Mr D Thomas –
Tranche 6
Mr D Thomas –
Tranche 7
Mr D Thomas –
Tranche 8
Underlying security spot price on grant date
$0.044
$0.044
$0.044
Grant date
29 Nov 2022
29 Nov 2022
29 Nov 2022
Expiration date
21 Dec 2024
21 Dec 2024
21 Dec 2024
Vesting date
-
-
-
Life (years)
3
3
3
Discount applied {a}
-
-
-
Number of rights
1,000,000
1,000,000
1,000,000
Value per right
$0.044
$0.044
$0.044
Remaining life (years) {b}
1.4
1.4
1.4
Total value
$44,000
$44,000
$44,000
Value recognised to date (as at 30 June 2023)
$23,204
$23,204
$23,204
Value still to be recognised (as at 30 June 2023)
$20,796
$20,796
$20,796
→
{a} – all three tranches of performance rights issued during the previous year contain no market-based vesting conditions
and therefore no discount has been applied.
→
{b} – the remaining life represents the time, in years, left until the expiry of the right.
Directors Report
Annual Report 2024
HAMMER METALS LIMITED
54
Options or rights expired or exercised during the year
→
7,000,000 options held by Mr Daniel Thomas (or their
nominee) expired unexercised during the year.
→
5,000,000 performance rights held by Mr Daniel Thomas
(or their nominee) expired unexercised during the year.
ܟ12.6 Option holdings
The movement during the reporting period in the number of options over ordinary
shares in Hammer Metals Limited held, directly, indirectly or beneficially, by each key
management person, including their personally-related entities, is as follows:
Key Management
Personnel
Held at
beginning of
period/on
appointment
Granted
Purchased
Exercised
Lapsed or
Expired
Held at
end of
period / on
resignation
Vested and
exercisable
at end of
period
Mr R Davis
3,500,000
-
-
-
-
3,500,000
3,500,000
Mr D Thomas
7,000,000 4,000,000
-
- (7,000,000)
4,000,000
2,000,000
Mr D Church
2,500,000 1,500,000
-
-
-
4,000,000
4,000,000
Mr J Croser {a}
4,000,000
-
-
-
-
4,000,000
4,000,000
Mr Z Lubieniecki {b}
3,000,000
-
-
-
-
3,000,000
3,000,000
Mr M Pitts
500,000
-
-
-
-
500,000
500,000
→
{a} – Options granted to Mr Croser during the year were granted prior to him being appointed as a Non-Executive Director
of the Company. Mr Croser was appointed on 8 September 2023.
→
{b} – Mr Lubieniecki resigned on 7 September 2023
ܟ12.7 Equity holdings and transactions
The movement during the reporting period in the number of ordinary shares
in Hammer Metals Limited held directly, indirectly or beneficially, by each key
management person, including their personally related entities, is as follows:
Held at
beginning of
period/on
appointment
Purchases
Sales
Granted in lieu
of fees
Exercise of
Options and
Performance
Rights
Held at end
of period/on
resignation
Mr R Davis
41,244,013
2,500,000
-
-
-
43,744,013
Mr D Thomas
4,000,000
833,334
-
-
-
4,833,334
Mr D Church
1,052,631
-
-
-
-
1,052,631
Mr J Croser {a}
-
-
-
-
-
-
Mr Z Lubieniecki {b}
64,493,551
333,333
-
-
-
64,826,884
Mr M Pitts
1,729,459
-
-
-
-
1,729,459
→
{a} – Mr Croser was appointed on 8 September 2023.
→
{b} – Mr Lubieniecki resigned on 7 September 2023.
Annual Report 2024
HAMMER METALS LIMITED
55
ܟ12.8 Performance right holdings
The movement during the reporting period in the number of performance rights over
ordinary shares in Hammer Metals Limited held, directly, indirectly or beneficially,
by each key management person, including their personally-related entities, is as
follows:
Held at
beginning of
period/on
appointment
Granted
Exercised
Other
movements
Held at
end of
period / on
resignation
Vested and
exercisable
at end of
period
Mr R Davis
-
-
-
-
-
-
Mr D Thomas
8,000,000
9,000,000
-
(5,000,000)
12,000,000
-
Mr D Church
-
-
-
-
-
-
Mr J Croser {a}
-
-
-
-
-
-
Mr Z Lubieniecki {b}
-
-
-
-
-
-
Mr M Pitts
-
-
-
-
-
-
→
{a} – Mr Croser was appointed on 8 September 2023.
→
{b} – Mr Lubieniecki resigned on 7 September 2023.
ܟ12.9 Key management personnel transactions
The following table provides the total amount of transactions which have been
entered into with related parties for the relevant financial year exclusive of GST:
Transaction value year ended
Balance outstanding as at
Key management
Personnel
Transaction
30 June 2023
$
30 June 2022
$
30 June 2023
$
30 June 2022
$
Mr Z Lubieniecki
Consulting Fees
3,000
39,919
-
-
Mr R Davis
Consulting Fees
-
7,299
-
-
Mr M Pitts
Accounting services
43,700
45,200
3,900
4,100
The Company paid fees to Zbigniew Lubieniecki and Russell Davis, as consulting fees for geological services provided.
The Company paid fees to Endeavour Corporate, a company associated with Mark Pitts, for accounting and financial reporting
services provided to the Group.
Mr Lubieniecki resigned on 7 September 2023.
END OF REMUNERATION REPORT
Annual Report 2024
HAMMER METALS LIMITED
56
ܟ13. Share Options
Unissued shares under option
At the date of this report unissued ordinary shares of the Company under option
are:
Expiry Date
Exercise price
Number of options
Director Options
30 November 2024
$0.05
4,500,000
Corporate Advisor Options – Tranche 3
13 May 2025
$0.04
2,000,000
Non-Executive Director Options
30 November 2026
$0.07
4,500,000
Non-Executive Director Options
30 November 2026
$0.08
5,500,000
Management Options – Tranche 1
30 November 2026
$0.08
2,000,000
Management Options – Tranche 1
30 November 2026
$0.08
2,000,000
20,500,000
These options do not entitle the holder to participate in any share issue of the Company or any other body corporate.
Shares issued on exercise of options
On 6 July 2023, a total of 3,000,000 options exercisable at 3.5 cents each ($0.035) were exercised. The funds for these were received
prior to 30 June 2023 and therefore the increase in share capital was recognised during the previous financial year..
ܟ14. Performance Rights
Unissued shares under performance rights
At the date of this report unissued ordinary shares of the Company under
performance rights are:
Expiry Date
Number of rights
Managing Director Rights – Tranche 6
21 December 2024
1,000,000
Managing Director Rights – Tranche 7
21 December 2024
1,000,000
Managing Director Rights – Tranche 8
21 December 2024
1,000,000
Management Performance Rights – 1A
15 December 2027
500,000
Management Performance Rights – 1B
15 December 2027
500,000
Management Performance Rights – 2A
15 December 2027
500,000
Management Performance Rights – 2B
15 December 2027
500,000
Management Performance Rights – 3
15 December 2027
7,000,000
12,000,000
The terms of these rights are summarised in section 12.5 above.
Shares issued on exercise of performance rights
During the year, no performance rights were exercised.
Annual Report 2024
HAMMER METALS LIMITED
57
ܟ15. Corporate Governance
In recognising the need for the highest standards of corporate behaviours and accountability, the Directors support and have adhered to
the principles of sound corporate governance. The Board recognises the recommendations of the ASX Corporate Governance Council
and considers the Company is in compliance with those guidelines which are of importance to the operations of the Company. Where
a recommendation has not been followed, that fact has been disclosed together with the reasons for the departure.
The Company’s Corporate Governance Statement and disclosures available on the Company’s website at www.hammermetals.com.au.
ܟ16. Indemnification Of Officers And Auditors
The Company has entered into Deeds of Access and Indemnity (Deed) with each Director and the Company Secretary (officers).
Under the Deed, the Company indemnifies the officers to the maximum extent permitted by law and the Constitution against legal
proceedings, damage, loss, liability, cost, charge, expense, outgoing or payment (including legal expenses on a solicitor/client basis)
suffered, paid or incurred by the officers in connection with the officers being an officer of the Company, the employment of the officer
with the Company or a breach by the Company of its obligations under the Deed.
Also pursuant to the Deed, the Company must insure the officers against liability and provide access to all board papers relevant to
defending any claim brought against them in their capacity as officers of the Company.
The Company has paid insurance premiums during the year in respect of liability for any past, present or future Directors, secretary,
officers and employees of the Company or related body corporate. The insurance policy does not contain details of the premium
paid in respect of individual officers of the Company. Disclosure of the nature of the liability cover and the amount of the premium is
subject to a confidentiality clause under the insurance policy.
The Company has not provided any insurance or indemnification for the Auditor of the Company.
ܟ17. Non-Audit Services
During the year PKF Perth, the Company’s auditor, provided no non-audit services to the Company.
ܟ18. Lead Auditor’s Independence Declaration Under
Section 307c Of The Corporations Act 2001
The lead auditor’s independence declaration is set out on page 59 and forms part of the Directors’ report for the financial year ended
30 June 2024.
ܟ19. Significant Changes In State Of Affairs
In the opinion of Directors, other than that disclosed elsewhere in this report, there were no other significant changes in the state
of affairs of the Group that occurred during the financial year under review. This report is made with a resolution of the Directors:
R Davis
Chairman
Perth
19 September 2024
Annual Report 2024
HAMMER METALS LIMITED
58
Auditor’s Independence Declaration
AUDITOR’S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF HAMMER METALS LIMITED
In relation to our audit of the financial report of Hammer Metals Limited for the year ended 30 June 2024, to the best
of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the
Corporations Act 2001 or any applicable code of professional conduct.
PKF PERTH
ALEXANDRA CARVALHO
PARTNER
19 September 2024
PERTH, WESTERN AUSTRALIA
Annual Report 2024
HAMMER METALS LIMITED
59
HAMMER METALS LIMITED
and its Controlled Entities
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
Note
30 June 2024
30 June 2023
$
$
Current assets
Cash and cash equivalents
10
5,228,612
4,357,140
Trade and other receivables
11
172,227
252,649
Total current assets
5,400,839
4,609,789
Non-current assets
Other financial assets
12
4,615,933
227,529
Plant and equipment
3,006
3,981
Right-of-use assets
13
177,663
162,012
Exploration and evaluation expenditure
14
26,540,119
24,678,290
Total non-current assets
31,336,721
25,071,812
Total assets
36,737,560
29,681,601
Current liabilities
Trade and other payables
15
660,677
443,893
Lease liabilities
16
108,892
68,892
Total current liabilities
769,569
512,785
Non-current liabilities
Lease liabilities
16
68,696
95,701
Total non-current liabilities
68,696
95,701
Total liabilities
838,265
608,486
Net assets
35,899,295
29,073,115
Equity
Share capital
17
66,810,197
66,593,958
Reserves
18
787,618
1,382,293
Accumulated losses
(31,698,520)
(38,903,136)
Total equity
35,899,295
29,073,115
The consolidated statement of financial position is to be read in conjunction with the accompanying notes.
Consolidated Statement Of Financial Position
Annual Report 2024
HAMMER METALS LIMITED
60
HAMMER METALS LIMITED
and its Controlled Entities
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
Note
30 June 2024
30 June 2023
$
$
Other income
4
177,062
190,974
Sale of tenement
4
9,000,000
-
Marketing expenses
(81,454)
(163,931)
Administrative expenses
(969,253)
(608,390)
Employee benefits expense
5
(249,704)
(265,893)
Share based payments
5
(339,357)
(171,229)
Occupancy expenses
(43,636)
(40,314)
Depreciation and amortisation
5
(97,929)
(100,585)
Exploration written off
14
(599,610)
-
Fair value adjustment on financial assets
(611,596)
(143,166)
Other expenses
(1,025)
-
Profit / (Loss) from operating activities
6,183,497
(1,302,534)
Finance income
99,097
24,367
Finance expenses
(12,010)
(7,369)
Net finance income / (expense)
6
87,087
16,998
Profit/(loss) before income tax
6,270,584
(1,285,536)
Income tax benefit
8
-
-
Net profit/(loss) for the year from continuing operations
6,270,584
(1,285,536)
Other comprehensive income
-
-
Other comprehensive loss for the year, net of income tax
-
-
Total Comprehensive profit/(loss) for the year
6,270,584
(1,285,536)
Loss per share:
Basic gain/(loss) per share (cents per share)
9(a)
0.71
(0.16)
Diluted gain/(loss) per share (cents per share)
9(a)
0.71
(0.16)
The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the
accompanying notes.
Consolidated Statement Of Profit Or Loss And Other
Comprehensive Income
Annual Report 2024
HAMMER METALS LIMITED
61
HAMMER METALS LIMITED
and its Controlled Entities
- 21 -
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
Share capital
Share based
payment reserve
Accumulated
losses
Total
Balance at 1 July 2022
62,965,503
1,399,364
(37,617,600)
26,747,267
Loss for the year
-
-
(1,285,536)
(1,285,536)
Other comprehensive income / loss
-
-
-
-
Total comprehensive loss for the period
-
-
(1,285,536)
(1,285,536)
Exercise of options for cash
46,000
(11,000)
-
35,000
Exercise of options – cashless exercise
100,200
(100,200)
-
-
Exercise of options – unissued shares
182,100
(77,100)
-
105,000
Shares issued for cash
3,500,000
-
-
3,500,000
Share based payments
-
264,531
-
264,531
Derecognition of share based payments previously expensed
-
(93,302)
-
(93,302)
Share issue costs
(199,845)
-
-
(199,845)
Balance at 30 June 2023
66,593,958
1,382,293
(38,903,136)
29,073,115
Balance at 1 July 2023
66,593,958
1,382,293
(38,903,136)
29,073,115
Loss for the year
-
-
6,270,584
6,270,584
Other comprehensive income / loss
-
-
-
-
Total comprehensive loss for the period
-
-
6,270,584
6,270,584
Shares issued for cash
220,000
-
-
220,000
Share based payments
-
339,357
-
339,357
Derecognition of share based payments previously expensed
-
(934,032)
934,032
-
Share issue costs
(3,761)
-
-
(3,761)
Balance at 30 June 2024
66,810,197
787,618
(31,698,520)
35,899,295
The consolidated statement of changes in equity is to be read in conjunction with the accompanying notes.
Consolidated Statement Of Changes In Equity
Annual Report 2024
HAMMER METALS LIMITED
62
HAMMER METALS LIMITED
and its Controlled Entities
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
Note
30 June 2024
30 June 2023
$
$
Cash flows from operating activities
Interest received
99,097
24,367
Fuel rebate received
9,194
4,021
Payments to suppliers and employees
(1,614,991)
(1,011,169)
Net cash used in operating activities
23
(1,506,700)
(982,781)
Cash flows from investing activities
Payments for exploration expenditure
(3,157,246)
(4,897,616)
Purchase of property, plant & equipment
-
(3,981)
Proceeds from partial sale of tenements
4,000,000
-
Management fees received from farm-in and joint
arrangement partners
173,676
186,919
Exploration incurred on behalf of farm-in partner
(1,430,271)
(1,232,231)
Reimbursement of exploration on behalf of farm-in
partner received
1,531,461
1,476,361
Receipt of research and development grant
1,257,932
1,104,678
Security bonds
(102,000)
-
Government exploration grants received
-
148,676
Net cash provided by / (used in) investing activities
2,273,552
(3,217,194)
Cash flows from financing activities
Proceeds from issue of share capital
220,000
3,500,000
Share funds received in advance
-
105,000
Proceeds from issue of options
-
35,000
Transaction costs from issue of shares and options
(3,761)
(199,845)
Lease payments made
(111,619)
(76,713)
Net cash from financing activities
104,620
3,363,442
Net increase / (decrease) in cash and cash equivalents
871,472
(836,533)
Cash and cash equivalents at beginning of year
4,357,140
5,193,673
Cash and cash equivalents at end of year
10
5,228,612
4,357,140
The consolidated statement of cash flows is to be read in conjunction with the accompanying notes.
Consolidated Statement Of Cash Flows
Annual Report 2024
HAMMER METALS LIMITED
63
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. REPORTING ENTITY
Hammer Metals Limited (the “Company”) is a company domiciled in Australia. The Company’s registered office is Unit
1, 28-30 Mayfair Street, West Perth, Western Australia. The consolidated financial statements of the Company for the
financial year ended 30 June 2024 comprises the Company and its subsidiaries (together referred to as the “Group”).
The Group is a for profit entity and is primarily involved in the exploration and extraction of mineral resources.
2. BASIS OF PREPARATION
(a) Statement of compliance
The consolidated financial statements are general purpose financial statements which have been prepared in
accordance with Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Board
(AASB) and the Corporations Act 2001. The consolidated financial statements also comply with International Financial
Reporting Standards (IFRS’s) adopted by the International Accounting Standards Board (IASB).
The consolidated financial report was authorised for issue by the Directors on 19 September 2024.
(b) Basis of measurement
The financial report is prepared on the historical cost basis except for share based payments and other financial assets
which are measured at their fair value.
(c) Functional and presentation currency
The financial report is presented in Australian dollars which is the functional and presentation currency of the
Company and its subsidiaries.
(d) Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity
only. Supplementary information about the parent entity is disclosed in note 26.
(e) Use of estimates and judgements
Set out below is information about:
•
critical judgements in applying accounting policies that have the most significant effect on the amounts
recognised in the financial statements; and
•
assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment
within the next financial year.
Critical judgements
i.
Going concern
A key assumption underlying the preparation of the financial statements is that the Group will continue as a
going concern. An entity is a going concern when it is considered to be able to pay its debts as and when they
are due, and to continue in operation without any intention or necessity to liquidate or otherwise wind up its
operations.
Notes To The Consolidated Financial Statements
Annual Report 2024
HAMMER METALS LIMITED
64
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2.
BASIS OF PREPARATION (continued)
(e) Use of estimates and judgements (continued)
Estimates and assumptions
ii.
Ore Reserves and Mineral Resources
Economically recoverable reserves represent the estimated quantity of product in an area of interest that can
be expected to be profitably extracted, processed and sold under current and foreseeable economic
conditions. The Group determines and reports ore reserves and mineral resources under the standards
incorporated in the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves,
2012 edition (the JORC Code). The determination of ore reserves or mineral resources includes estimates and
assumptions about a range of geological, technical and economic factors, including: quantities, grades,
production techniques, recovery rates, production costs, transport costs, commodity demand, commodity
prices and exchange rates. Changes in ore reserves and mineral resources impact the assessment of
recoverability of exploration and evaluation assets, provisions for site restoration and the recognition of
deferred tax assets, including tax losses.
iii.
Exploration and evaluation assets
Determining the recoverability of exploration and evaluation expenditure capitalised in accordance with the
Group’s accounting policy (refer note 3(l)), requires estimates and assumptions as to future events and
circumstances, in particular, whether successful development and commercial exploitation, or alternatively
sale, of the respective areas of interest will be achieved. Critical to this assessment is estimates and
assumptions as to ore reserves (refer note 2(e)(ii)), the timing of expected cash flows, exchange rates,
commodity prices and future capital requirements. Changes in these estimates and assumptions as new
information about the presence or recoverability of an ore reserve becomes available, may impact the
assessment of the recoverable amount of exploration and evaluation assets. If, after having capitalised the
expenditure under accounting policy 3(l), a judgement is made that recovery of the expenditure is unlikely,
an impairment loss is recorded in the statement of profit and loss and other comprehensive income in
accordance with accounting policy 3(e). The carrying amounts of exploration and evaluation assets are set
out in note 14.
iv.
Share based payments
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of
the equity instruments at the date at which they are granted. The fair value is determined by using either the
Binomial or Black-Scholes model considering the terms and conditions upon which the instruments were
granted. The accounting estimates and assumptions relating to equity-settled share-based payments would
have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but
may impact profit or loss and equity. Refer to note 20 for further information.
(f) Adoption of new and revised standards
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
Notes To The Consolidated Financial Statements
Annual Report 2024
HAMMER METALS LIMITED
65
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3. STATEMENT OF MATERIAL ACCOUNTING POLICIES
The Group has consistently applied the accounting policies set out in note 3 to all periods presented in these
consolidated financial statements.
(a) Basis of consolidation
i.
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has
rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power over the entity. The financial statements of subsidiaries are included in the consolidated
financial statements from the date on which control commences until the date on which control ceases.
ii.
Investments in associates
Associates are those entities in which the Group has significant influence, but not control or joint control,
over the financial and operating policies. Significant influence is presumed to exist when the Group holds
between 20 percent and 50 percent of the voting power of another entity.
Investments in associates are accounted for using the equity method and are recognised initially at cost. The
cost of the investments includes transaction costs. The consolidated financial statements include the Group’s
share of the profit or loss and other comprehensive income of equity accounted investees, after adjustments
to align the accounting policies with those of the Group, from the date that significant influence commences
until the date that significant influence ceases.
When the Group’s share of losses exceeds its interest in an equity accounted investee, the carrying amount
of the investment, including any long-term interest that form part thereof, is reduced to zero, and the
recognition of further losses is discontinued except to the extent that the Group has an obligation or has
made payments on behalf of the investee.
iii.
Joint arrangements
The Group classifies its interests in joint arrangements as either joint operations or joint ventures depending
on the Group’s rights to the assets and obligation for the liabilities of the arrangements. When making this
assessment, the Group considers the structure of the arrangements, the legal form of any separate vehicles,
the contractual terms of the arrangements and other facts and circumstances.
iv.
Transactions eliminated on consolidation
Intragroup balances, and any unrealised gains and losses or income and expenses arising from intragroup
transactions, are eliminated in preparing the consolidated financial statements.
(b) Plant and equipment
Items of plant and equipment are stated at cost less accumulated depreciation (see below) and impairment losses
(see accounting policy 3(f)). Depreciation is charged to the statement of profit and loss and other comprehensive
income on a straight-line basis over their estimated useful lives. The estimated useful lives in the current and
comparative periods are as follows:
•
Office equipment
3 to 4 years
•
Plant and equipment
3 to 5 years
The residual value, if significant, is reassessed annually.
Annual Report 2024
HAMMER METALS LIMITED
66
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3.
STATEMENT OF MATERIAL ACCOUNTING POLICIES (continued)
(c) Financial instruments
Recognition and derecognition
Financial assets and financial liabilities are recognised when the Group 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
Except for those trade receivables that do not contain a significant financing component and are measured at the
transaction price in accordance with AASB 15, all financial assets are initially measured at fair value adjusted for
transaction costs (where applicable).
For the purpose of subsequent measurement, financial assets, are classified into the following categories:
•
amortised cost
•
fair value through profit or loss (FVTPL)
The classification is determined by both:
•
the entity’s business model for managing the financial asset
•
the contractual cash flow characteristics of the financial asset.
All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance
costs, finance income or other financial items, except for impairment of trade receivables which is presented within
other expenses.
Subsequent measurement of financial assets
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated
as FVTPL):
•
they are held within a business model whose objective is to hold the financial assets to
collect its contractual cash flows
•
the contractual terms of the financial assets give rise to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method.
Financial assets at fair value through profit or loss (FVTPL)
Financial assets that are held within a different business model other than ‘hold to collect’ or ‘hold to collect and sell’
are categorised at fair value through profit and loss. Further, irrespective of business model financial assets whose
contractual cash flows are not solely payments of principal and interest are accounted for at FVTPL.
The category also contains an equity investment. The Group accounts for the investment at FVTPL and did not make
the irrevocable election to account for the investment in unlisted and listed equity securities at fair value through
other comprehensive income (FVOCI). The fair value was determined in line with the requirements of AASB 9, which
does not allow for measurement at cost. Assets in this category are measured at fair value with gains or losses
recognised in profit or loss. The fair values of financial assets in this category are determined by reference to active
market transactions or using a valuation technique where no active market exists.
Notes To The Consolidated Financial Statements
Annual Report 2024
HAMMER METALS LIMITED
67
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3.
STATEMENT OF MATERIAL ACCOUNTING POLICIES (continued)
(c)
Financial instruments (continued)
Trade and other receivables and contract assets
The Group makes use of a simplified approach in accounting for trade and other receivables as well as contract assets
and records the loss allowance as lifetime expected credit losses. These are the expected shortfalls in contractual cash
flows, considering the potential for default at any point during the life of the financial instrument. In calculating, the
Group uses its historical experience, external indicators and forward-looking information to calculate the expected
credit losses using a provision matrix.
The Group assess impairment of trade receivables on a collective basis as they possess shared credit risk characteristics
they have been grouped based on the days past due.
Classification and measurement of financial liabilities
The Group’s financial liabilities include borrowings, trade and other payables and derivative financial instruments.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless the
Group 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.
(d) Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three months or less.
Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included
as a component of cash and cash equivalents for the purpose of the statement of cash flows.
(e) Impairment
The Group assesses at each balance date whether a financial asset or group of financial assets is impaired.
Financial assets at amortised cost
Trade receivables are initially recognised at their transaction price and other receivables at fair value. Receivables that
are held to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of
principal and interest are classified and subsequently measured at amortised cost. Receivables that do not meet the
criteria for amortised cost are measured at fair value through profit or loss.
The group assesses on a forward-looking basis, the expected credit losses associated with its debt instruments carried
at amortised cost. The amount of expected credit losses is updated at each reporting date to reflect changes in credit
risk since initial recognition of the respective financial instrument. The Group always recognises the lifetime expected
credit loss for trade receivables carried at amortised cost.
The expected credit losses on these financial assets are estimated based on the Group's historic credit loss experience,
adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the
current as well as forecast conditions at the reporting date.
Annual Report 2024
HAMMER METALS LIMITED
68
HAMMER METALS LIMITED
and its Controlled Entities
28
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3.
STATEMENT OF MATERIAL ACCOUNTING POLICIES (continued)
(e)
Impairment (continued)
For all other receivables measured at amortised cost, the Group recognises lifetime expected credit losses when there
has been a significant increase in credit risk since initial recognition. If the credit risk on the financial instrument has
not increased significantly since initial recognition, the Group measures the loss allowance for that financial
instrument at an amount equal to expected credit losses within the next 12 months.
The Group considers an event of default has occurred when a financial asset is more than 90 days past due or external
sources indicate that the debtor is unlikely to pay its creditors, including the Group. A financial asset is credit impaired
when there is evidence that the counterparty is in significant financial difficulty or a breach of contract, such as a
default or past due event has occurred. The Group writes off a financial asset when there is information indicating the
counterparty is in severe financial difficulty and there is no realistic prospect of recovery.
Non-financial assets
The carrying amounts of the Company’s non-financial assets, other than deferred tax assets (see accounting policy
3(k)) are reviewed at each reporting date to determine whether there is any indication of impairment. If any such
indication exists, then the asset’s recoverable amount is estimated. For goodwill and intangible assets that have
indefinite lives or that are not yet available for use, the recoverable amount is estimated each year at the same time.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs
to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates
cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets
(the “cash-generating unit”). The goodwill acquired in a business combination, for the purpose of impairment testing,
is allocated to cash-generating units that are expected to benefit from the synergies of the combination.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable
amount. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of cash-generating
units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the
carrying amount of the other assets in the unit (group of units) on a pro rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in
prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists.
An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying
amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been
recognised.
(f) Share capital
Ordinary shares
Transaction costs of an equity transaction are accounted for as a deduction from equity, net of any related income tax
benefit.
(g) Interest bearing borrowings
Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to
initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between cost and
redemption value being recognised in the statement of profit and loss and other comprehensive income over the
period of the borrowings on an effective interest basis.
Notes To The Consolidated Financial Statements
Annual Report 2024
HAMMER METALS LIMITED
69
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3.
STATEMENT OF MATERIAL ACCOUNTING POLICIES (continued)
(h) Employee benefits
Defined contribution plans
Obligations for contributions to defined contribution pension plans are recognised as an expense in the statement of
profit and loss and other comprehensive income as incurred.
Share based payment transactions
The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally
recognised as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount
recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market
performance conditions are expected to be met, such that the amount ultimately recognised is based on the number
of awards that meet the related service and non-market performance conditions at the vesting date. For share-based
payment awards with non-vesting conditions, the grant-date fair value of the share-based payment is measured to
reflect such conditions and there is no true-up for differences between expected and actual outcome.
Wages, salaries, annual leave, sick leave and non-monetary benefits
Liabilities for employee benefits for wages, salaries, annual leave and sick leave represent present obligations resulting
from employees' services provided to reporting date, calculated at undiscounted amounts based on remuneration
wage and salary rates that the Group expects to pay as at reporting date including related on-costs, such as, workers
compensation insurance and payroll tax.
(i) Finance income and expenses
Net finance income
Net finance income comprises interest payable on borrowings calculated using the effective interest method, interest
receivable on funds invested and realised foreign exchange gains and losses. Interest income is recognised in the
statement of profit and loss and other comprehensive income as it accrues, using the effective interest method.
(j) Income tax
Income tax on the statement of profit and loss and other comprehensive income for the periods presented comprises
current and deferred tax. Income tax is recognised in the statement of profit and loss and other comprehensive income
except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially
enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
The following temporary differences are not provided for: the initial recognition of assets or liabilities in a transaction
that is not a business combination and that affects neither accounting nor taxable profit or loss and differences relating
to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount
of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets
and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available
against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that
the related tax benefit will be realised.
The Company and its Australian resident wholly owned subsidiaries adopted the tax consolidation legislation with
effect from 1 July 2014 and are therefore taxed as a single entity from that date. Hammer Metals Ltd is the head entity
within the tax-consolidated group. Any current tax liabilities (or assets) and deferred tax assets arising from unused
tax losses of the subsidiaries are assumed by the head entity in the tax-consolidated group.
Annual Report 2024
HAMMER METALS LIMITED
70
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3.
STATEMENT OF MATERIAL ACCOUNTING POLICIES (continued)
(k) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Board of Directors of the Company.
(l) Exploration and evaluation expenditure
Exploration for and evaluation of mineral resources is the search for mineral resources after the Group has obtained
legal rights to explore in a specific area, as well as the determination of the technical feasibility and commercial
viability of extracting the mineral resources. Accordingly, exploration and evaluation expenditures are those
expenditures incurred by the Group in connection with the exploration for and evaluation of minerals resources before
the technical feasibility and commercial viability of extracting mineral resources are demonstrable.
Accounting for exploration and evaluation expenditure is assessed separately for each area of interest. An area of
interest is an individual geological area which is considered to constitute a favourable environment for the presence
of a mineral deposit or has been proved to contain such a deposit.
Expenditure incurred on activities that precede exploration and evaluation of mineral resources, including all
expenditure incurred prior to securing legal rights to explore an area, is expensed as incurred.
For each area of interest, the expenditure is recognised as an exploration and evaluation asset where the following
conditions are satisfied:
a) The rights to tenure of the area of interest are current; and
b) At least one of the following conditions is also met:
i.
The expenditure is expected to be recouped through successful development and commercial
exploitation of an area of interest, or alternatively by its sale; and
ii.
Exploration and evaluation activities in the area of interest have not, at reporting date, reached
a stage which permits a reasonable assessment of the existence or otherwise ‘economically
recoverable reserves’ and active and significant operations in, or in relation to, the area of
interest are continuing. Economically recoverable reserves are the estimated quantity of product
in an area of interest that can be expected to be profitably extracted, processed and sold under
current and foreseeable conditions.
Exploration and evaluation assets include
•
Acquisition of rights to explore;
•
Topographical, geological, geochemical and geophysical studies;
•
Exploratory drilling, trenching, and sampling and
•
Activities in relation to evaluating the technical feasibility and commercial viability of
extracting the mineral resource.
General and administrative costs are allocated to, and included in, the cost of exploration and evaluation assets only
to the extent that those costs can be related directly to the operational activities in the area of interest to which the
exploration and evaluation assets relate. In all other instances, these costs are expensed as incurred.
Exploration and evaluation assets are transferred to Development Assets once technical feasibility and commercial
viability of an area of interest is demonstrable. Exploration and evaluation assets are assessed for impairment, and
any impairment loss is recognised prior to being reclassified.
The carrying amount of the exploration and evaluation assets is dependent on successful development and
commercial exploitation, or alternatively, sale of the respective area of interest.
Notes To The Consolidated Financial Statements
Annual Report 2024
HAMMER METALS LIMITED
71
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3.
STATEMENT OF MATERIAL ACCOUNTING POLICIES (continued)
(l)
Exploration and evaluation expenditure (continued)
Impairment testing of exploration and evaluation assets
Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility
and commercial viability or facts and circumstances suggest that the carrying amount exceeds the recoverable
amount.
Exploration and evaluation assets are tested for impairment when any of the following facts and circumstances exist:
•
The term of exploration licence in the specific area of interest has expired during the
reporting period or will expire in the near future, and is not expected to be renewed;
•
Substantive expenditure on further exploitation for and evaluation of mineral resources
in the specific area are not budgeted or planned;
•
Exploration for and evaluation of mineral resources in the specific area have not led to
the discovery of commercially viable quantities of mineral resources and the decision was
made to discontinue such activities in the specified are; or
•
Sufficient data exists to indicate that, although a development in the specific area is likely
to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be
recovered in full from successful development of by sale.
Where a potential impairment is indicated, an assessment is performed for each cash generating unit which is no
larger than the area of interest. The Group performs impairment testing in accordance with accounting policy 3(e).
Farm-in arrangements (in the exploration and evaluation phase)
For exploration and evaluation asset acquisitions (farm-in arrangements) in which the Group has made arrangements
to fund a portion of the selling partner's (farmor's) exploration and/or future development expenditures (carried
interests), these expenditures are reflected in the financial statements as and when the exploration work progresses.
Farm-out arrangements (in the exploration and evaluation phase)
The Group does not record any expenditure made by the farmee on its account. It also does not recognise any gain or
loss on its exploration and evaluation farm-out arrangements but redesignates any costs previously capitalised in
relation to the whole interest as relating to the partial interest retained.
Monies received pursuant to farm-in agreements are treated as a liability (advanced cash call) on receipt and until
such time as the relevant expenditure is incurred.
Annual Report 2024
HAMMER METALS LIMITED
72
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2024
30 June 2023
4.
OTHER INCOME
$
$
Management fee from farm-in partners
166,843
170,990
Other income
10,219
19,984
Total other income
177,062
190,974
Partial sale of tenement to Carnaby Resources Limited (ASX:CNB)
Proceeds received – cash
4,000,000
-
Proceeds received – shares (9,090,090 ordinary shares in CNB)
5,000,000
-
Total income from sale of tenement
9,000,000
-
Total income
9,177,062
190,974
30 June 2024
30 June 2023
5.
RESULT FROM OPERATING ACTIVITIES
$
$
Net loss for the year before tax has been arrived at after the charging
the following expenses:
Depreciation of plant and equipment
976
-
Amortisation of right-of-use assets
96,953
100,585
Total depreciation and amortisation
97,929
100,585
Salary and wages
227,420
239,876
Superannuation expense
22,134
24,567
Share based payments
339,357
171,229
Other employee expenses
150
1,450
Total employee costs
589,061
437,122
30 June 2024
30 June 2023
6.
FINANCE INCOME AND FINANCE COSTS
$
$
Recognised in loss for the year:
Interest income
99,097
24,367
Finance costs / lease interest expense
(12,010)
(7,369)
Net finance income
87,087
16,998
30 June 2024
30 June 2023
7.
AUDITORS’ REMUNERATION
$
$
Auditors of the Company – PKF
Audit services:
Audit and review of financial reports
37,500
25,450
37,500
25,450
Notes To The Consolidated Financial Statements
Annual Report 2024
HAMMER METALS LIMITED
73
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2024
30 June 2023
8.
INCOME TAX
$
$
(a) Income tax benefit
Current tax
-
-
Deferred tax
-
-
Total income tax benefit
-
-
Numerical reconciliation of income tax benefit to pre-tax accounting
profit / (loss):
Profit / (loss) before income tax
6,270,584
(1,285,536)
Income tax expenses / (benefit) using the Company’s domestic tax rate
of 25% (2023: 25%)
1,567,646
(321,384)
Adjusted for:
(Non-deductible expenses) / Non-Assessable Income
(85,891)
(44,059)
Temporary differences and tax losses not recognised
(1,481,755)
365,443
Income tax benefit
-
-
(b) Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the
following items:
Temporary timing differences related to:
Property, plant and equipment
1,269
1,025
Investments
346,010
316,884
Accrued expenses and provisions
29,834
28,530
Capital raising costs
46,670
85,234
Income tax losses
10,626,252
12,020,777
11,050,035
12,452,450
(c) Recognised deferred tax assets & liabilities
Temporary timing differences related to:
Exploration and evaluation expenditure
(6,635,030)
(6,169,573)
Investments
(1,138,106)
-
Income tax losses
7,773,136
6,169,573
-
-
The deductible temporary differences and tax losses do not expire under current tax legislation. Deferred tax assets
have not been recognised in respect of these items because it is not probable that future taxable profit will be available
against which the Group can utilise the benefits from.
(d) Movement of temporary differences recognised during the year ended 30 June 2024:
Balance 1 July
2023
Profit or Loss
Other
comprehensive
income
Equity
Balance 30
June 2024
Exploration and evaluation
expenditure
(6,169,573)
(465,457)
-
-
(6,635,030)
Investments
-
(1,138,106)
-
-
(1,138,106)
Carried-forward tax losses
6,169,573
1,603,563
-
-
7,773,136
-
-
-
-
-
Annual Report 2024
HAMMER METALS LIMITED
74
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
8.
INCOME TAX (CONTINUED)
(e) Movement of temporary differences recognised during the year ended 30 June 2023:
Balance 1 July
2022
Profit or Loss
Other
comprehensive
income
Equity
Balance 30
June 2023
Exploration and evaluation
expenditure
(5,334,495)
(835,078)
-
-
(6,169,573)
Carried-forward tax losses
5,334,495
835,078
-
-
6,169,573
-
-
-
-
-
30 June 2024
30 June 2023
9.
GAIN/(LOSS) PER SHARE
(a) Basic gain / (loss) per share calculated using the weighted average
number of fully paid ordinary shares on issue at the reporting date.
0.71 cents
(0.16) cents
Dilutive gain / (loss) per share calculated using the weighted average
number of fully paid ordinary shares on issue at the reporting date.
0.71 cents
(0.16) cents
(b) Weighted average number of shares used in calculation of basic
earnings per share
886,037,586
824,347,048
(b) Weighted average number of shares used in calculation of dilutive
earnings per share
888,037,586
824,347,048
30 June 2024
30 June 2023
10. CASH AND CASH EQUIVALENTS
$
$
Cash at bank and on hand
5,228,612
4,357,140
The Group’s exposure to interest rate risk and sensitivity analysis for financial assets and financial liabilities are
disclosed in Note 25.
30 June 2024
30 June 2023
11. TRADE AND OTHER RECEIVABLES
$
$
Current
GST receivable
35,421
31,007
Security deposit
119,392
80,887
Other receivables
17,414
140,755
172,227
252,649
Trade and other receivables are non-interest bearing.
30 June 2024
30 June 2023
12.
OTHER FINANCIAL ASSETS
$
$
Non - Current
Investments in other entities
Listed shares in TSXV and ASX-listed companies - at fair value
4,615,933
227,529
Movements in other financial assets for the period:
Opening balance at the beginning of the period
227,529
370,695
Additions – CNB shares received as part consideration for sale of
tenement
5,000,000
-
Fair value adjustment on financial assets
(611,596)
(143,166)
Closing balance at the end of the period
4,615,933
227,529
The Group’s exposure to equity price risk and sensitivity analysis in disclosed in Note 25. Listed shares recognised
as non-current assets have been recognised at fair value through profit or loss (“FVTPL”)
Notes To The Consolidated Financial Statements
Annual Report 2024
HAMMER METALS LIMITED
75
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2024
30 June 2023
13.
RIGHT-OF-USE ASSETS
$
$
Right-of-use assets
443,238
330,634
Less: accumulated depreciation
(265,575)
(168,622)
Total right-of-use assets
177,663
162,012
Movements in right-of-use assets for the period:
Opening balance at the beginning of the period
162,012
268,662
Additions for the period
112,604
6,372
Depreciation
(96,953)
(113,022)
Disposals
-
-
Closing balance at the end of the period
177,663
162,012
30 June 2024
30 June 2023
14.
EXPLORATION AND EVALUATION EXPENDITURE
$
$
Balance at 1 July
24,678,290
21,337,979
Exploration and evaluation expenditure incurred
3,719,371
4,593,665
Exploration grants received
-
(148,676)
Exploration written-off
(599,610)
-
Research and development grant received
(1,257,932)
(1,104,678)
Balance at 30 June
26,540,119
24,678,290
During the year, the Group has written off exploration expenditure relating to its Mt. Frosty joint venture, as a
result of the Group no longer meeting the requirements for carrying the expenditure forward. The Group
maintains that this project retains significant value, however the Group has adopted a conservative approach in
accordance with the accounting standards in this instance.
The ultimate recovery of costs carried forward for exploration and evaluation phases is dependent on the
successful development and commercial exploitation or sale of the respective areas of interest at an amount
greater than or equal to carrying value. Refer note 3 (n).
Expenses capitalised to Exploration and Evaluation Expenditure assets for the year include direct exploration
costs (drilling, rock chip programs and surveys including magnetic and SAM), laboratory costs (assaying, analysis
and review), geological and geochemical consultants as well as allocated administration costs (including salary
and wages) where those costs can be directly attributed to the exploration or evaluation activities upon a given
area of interest.
Annual Report 2024
HAMMER METALS LIMITED
76
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2024
30 June 2023
15.
TRADE AND OTHER PAYABLES
$
$
Trade payables and accruals
556,245
364,179
Employee leave accruals
104,432
79,714
660,677
443,893
All trade and other payables are non-interest bearing and payable on normal commercial terms.
The Group’s exposure to currency and liquidity risk related to trade and other payables is disclosed in Note 25.
30 June 2024
30 June 2023
16.
LEASE LIABILITIES
$
$
Current lease liabilities
108,892
68,892
Non-current lease liabilities
68,696
95,701
177,588
164,593
The nature of the Group’s leasing activities includes office leases and the lease of motor vehicles.
30 June 2024
30 June 2023
30 June 2024
30 June 2023
17.
ISSUED CAPITAL
No.
No.
$
$
(a)
Share capital
Ordinary shares
On issue at 1 July
879,740,682
815,394,623
66,593,958
62,965,503
Exercise of unlisted options – cash
-
1,000,000
-
46,000
Exercise of unlisted options – cashless1
-
5,012,726
-
100,200
Shares issued for cash at $0.06 per share
3,666,667
58,333,333
220,000
3,500,000
Funds for unlisted options – unexercised2
3,000,000
-
-
182,100
Share issue costs
-
-
(3,761)
(199,845)
On issue at 30 June – fully paid
886,407,349
879,740,682
66,810,197
66,593,958
1 – During the year ended 30 June 2023 a total of 8,350,000 unquoted options were exercised using a cashless
exercise facility, resulting in a total of 5,012,726 ordinary shares being issued in full settlement of the exercise.
2 – During the year ended 30 June 2023 the Company received a valid exercise notice for 3,000,000 unquoted
options exercisable at $0.035 each on or before 30 June 2024, however the exercise of these options and the
issue of shares was only completed on 6 July 2023, and therefore the issue of shares and receipt of funds were
recorded across the two financial years.
Terms and conditions
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to
one vote per share at shareholders’ meetings.
The company does not have authorised capital or par value in respect of its issued shares.
In the event of winding up of the Company, ordinary shareholders rank after all other shareholders and creditors
and are fully entitled to any proceeds of liquidation.
Dividends
No dividends were paid or declared for the year (2023: Nil).
Notes To The Consolidated Financial Statements
Annual Report 2024
HAMMER METALS LIMITED
77
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
17.
ISSUED CAPITAL (CONTINUED)
30 June 2024
30 June 2023
(b)
Options outstanding over ordinary shares
No.
No.
Unlisted options (Share-based payment reserve)
Unlisted options exercisable at $0.035 expiring 30 Jun 2023
-
3,000,000
Unlisted options exercisable at $0.05 expiring 21 Oct 2023
-
3,000,000
Unlisted options exercisable at $0.06 expiring 21 Oct 2023
-
4,000,000
Unlisted options exercisable at $0.05 expiring 30 Jun 2024
2,600,000
2,600,000
Unlisted options exercisable at $0.05 expiring 30 Nov 2024
4,500,000
4,500,000
Unlisted options exercisable at $0.04 expiring 13 May 2025
2,000,000
2,000,000
Unlisted options exercisable at $0.07 expiring 30 Nov 2026
4,500,000
4,500,000
Unlisted options exercisable at $0.08 expiring 30 Nov 2026
5,500,000
-
Unlisted options exercisable at $0.08 expiring 30 Nov 2026 –
Management Tranche 1
2,000,000
-
Unlisted options exercisable at $0.08 expiring 30 Nov 2026 –
Management Tranche 2
2,000,000
-
23,100,000
23,600,000
9,500,000 unlisted options were granted to directors, executives, and employees during the year (2023:
4,500,000). Refer to Note 20.
3,000,000 unlisted options were exercised during the year (2023: 9,350,000).
No unlisted options were granted to consultants during the year (2023: Nil)
7,000,000 fully vested unlisted options expired unexercised during the period (2023: Nil).
Options carry no voting rights until converted to fully paid ordinary shares. All unlisted options were granted
for no cash consideration.
30 June 2024
30 June 2023
No.
No.
(c)
Performance rights outstanding
Performance rights (Share-based payment reserve)
Managing Director Performance Rights – Tranche 5
-
5,000,000
Managing Director Performance Rights – Tranche 6
1,000,000
1,000,000
Managing Director Performance Rights – Tranche 7
1,000,000
1,000,000
Managing Director Performance Rights – Tranche 8
1,000,000
1,000,000
Management Performance Rights – 1A
500,000
-
Management Performance Rights – 1B
500,000
-
Management Performance Rights – 2A
500,000
-
Management Performance Rights – 2B
500,000
-
Management Performance Rights – 3
7,000,000
-
12,000,000
8,000,000
The following performance rights were granted during the current financial year (refer note 20):
Number of
options
Vesting Date
Vesting Condition
Expiry Date
Management Performance Rights
-
Tranche 1A
500,000
15/12/2024
Refer below
15/12/2027
-
Tranche 1B
500,000
15/12/2024
Refer below
15/12/2027
-
Tranche 2A
500,000
15/12/2025
Refer below
15/12/2027
-
Tranche 2B
500,000
15/12/2025
Refer below
15/12/2027
-
Tranche 3
7,000,000
N/A
Refer below
15/12/2027
Annual Report 2024
HAMMER METALS LIMITED
78
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
17.
ISSUED CAPITAL (CONTINUED)
All performance rights require the recipient to remain employed until vesting date. The tranches outstanding at
balance date contain the following vesting conditions:
•
Tranche 1A Management Performance Rights vest upon the continuous service for a period of 12 months
from the date of issue;
•
Tranche 1B Management Performance Rights vest upon the continuous service for a period of 12 months
from the date of issue and the share price of the Company’s shares listed on the ASX achieving a premium of
50% over the 15-day VWAP prior to the issue date, or $0.078;
•
Tranche 2A Management Performance Rights vest upon the continuous service for a period of 24 months
from the date of issue;
•
Tranche 2B Management Performance Rights vest upon the continuous service for a period of 24 months
from the date of issue and the share price of the Company’s shares listed on the ASX achieving a premium of
100% over the 15-day VWAP prior to the issue date, or $0.104; and
•
Tranche 3 Management Performance Rights vest upon the completion (to the Board’s satisfaction) of a
material transaction to the value of a minimum of 30% of the Company’s market capitalisation, determined
based on the 30-day VWAP immediately prior to the completion or announcement of the transaction.
The following performance rights were granted during the previous financial year (refer note 20):
Number of
options
Vesting Date
Vesting Condition
Expiry Date
Managing Director Performance Rights
-
Tranche 6
1,000,000
N/A
Refer below
13/12/2024
-
Tranche 7
1,000,000
N/A
Refer below
13/12/2024
-
Tranche 8
1,000,000
N/A
Refer below
13/12/2024
All performance rights require the recipient to remain employed until vesting date. The tranches outstanding at balance
date contain the following vesting conditions:
•
Tranche 6 performance rights vest upon the Company announcing a new JORC 2012 compliant mineral
resource estimate of 50,000 tonnes Cu or equivalent KPI at the sole discretion of the Board;
•
Tranche 7 performance rights vest upon the Company announcing a new JORC 2012 compliant mineral
resource estimate of 100,000 tonnes Cu or equivalent KPI at the sole discretion of the Board; and
•
Tranche 8 performance rights vest upon the Company announcing a new JORC 2012 compliant mineral
resource estimate of 200,000 tonnes Cu or equivalent KPI at the sole discretion of the Board.
30 June 2024
30 June 2023
18.
RESERVES
$
$
Share-based payment reserve (1)
Balance at beginning of period
1,382,293
1,399,364
Options issued to Directors and executives
195,680
194,850
Performance rights issued to Managing Director
99,596
-
Options exercised during the period
-
(188,300)
Reversal of previously recognised value relating to Tranche 5
Performance Rights (Note 17(c)) (2)
-
(93,302)
Expiry of options
(75,440)
Reversal of previously recognised value relating to historic options
which expired in previous financial periods
(858,592)
Further vesting expense of options and rights issued in previous
periods
44,081
69,681
787,618
1,382,293
(1) The share-based payment reserve is used to record the fair value of options and rights issued to Directors
and employees and consultants under various share-based payment schemes and options issued for the
acquisition of assets.
(2) These rights expire on 21 October 2024, and therefore as they are currently unlikely to vest, the amount
recognised as an expense to-date has been reversed.
Notes To The Consolidated Financial Statements
Annual Report 2024
HAMMER METALS LIMITED
79
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
19.
COMMITMENTS
a)
Exploration Expenditure Commitments
In order to maintain current rights of tenure to exploration tenements the Company is required to perform
minimum exploration work to meet the minimum expenditure requirements specified by various State
Governments within Australia. These obligations may be reset when application for a mining lease is made
and at other times. As a result, exploration expenditure commitments beyond twelve months cannot be
reliably determined.
The Group has a minimum expenditure commitment on tenure under its control.
The Group can apply for exemption from compliance with the minimum exploration expenditure
requirements.
These obligations are not provided for in the financial report and are payable:
Consolidated
Company
30 June 2024
30 June 2023
30 June 2024
30 June 2023
$
$
$
$
Annual minimum exploration expenditure
4,197,111
3,785,310
-
-
The annual minimum exploration expenditure disclosed above includes $2,099,530 which falls under
tenements related to the joint arrangements as set out in note 22. Of this amount, $172,000 is related to the
tenement held within the Mt Frosty Joint Venture, under which the Group is responsible for 51% of
expenditures on the joint arrangement, $1,773,930 relates to twelve tenements that are held by the Group
and fall under, either partially or in full, the Mt Isa East Joint Venture. This is a joint arrangement between the
Group and Sumitomo Metal Mining Oceania Pty Ltd (“SMMO”), the full details of which are disclosed in note
22. A further $101,800 and $51,800 relates to the Isa Valley JV and Bullrush JV’s, respectively.
20.
SHARE BASED PAYMENTS
Employee Incentive Plan
The Hammer Metals Employee Incentive Plan was approved by shareholders on 17 November 2023. The key
features of this plan are:
(a) The plan will be available to directors, employees and other permitted persons of the Company and its
subsidiaries.
(b) Performance Rights or Options are granted for no consideration.
(c) Where options are issued an exercise price will be determined by the Board from time to time.
(d) The number of shares the subject of Performance Rights or Options issued under this plan and other
similar plans will not exceed 5% of the Company’s issued capital from time to time.
(e) If a holder ceases to be an eligible participant of the plan during the exercise period of a vested
Performance Right or Option, the holder may exercise the options within 30 days of ceasing to be an
eligible participant and thereafter the options will lapse.
(f) The Performance Rights or Options issued under this plan shall not be quoted on ASX.
(g) The Performance Rights or Options’ terms are at the discretion of the Directors.
Options
The number and weighted average exercise price of unlisted share options on issue is as follows:
30 June 2024
30 June 2023
No of unlisted
options
Weighted
average
exercise price
No of unlisted
options
Weighted
average
exercise price
Outstanding at 1 July
23,600,000
$0.053
28,450,000
$0.043
Granted during the period
9,500,000
$0.08
4,500,000
$0.07
Exercised during the period
(3,000,000)
$0.035
(9,350,000)
$0.032
Expired / lapsed during the period
(7,000,000)
$0.056
-
-
Outstanding at 30 June
23,100,000
$0.065
23,600,000
$0.053
Exercisable at 30 June
23,100,000
23,600,000
The options outstanding at year end have exercise prices ranging from $0.04 to $0.08 and a weighted average
remaining contractual life of 2.63 years.
Annual Report 2024
HAMMER METALS LIMITED
80
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
20.
SHARE BASED PAYMENTS (CONTINUED)
Options granted during current financial year
The following options were granted during the year.
Number of
options
granted
Date granted
% Vested
% Forfeited
/ Lapsed
Financial year in
which grant
vested / will vest
Key Management Personnel
Daniel
Thomas
–
Management
Options
Tranche 1
2,000,000
17 November 2023
100%
-
-
Daniel
Thomas
–
Management
Options
Tranche 2
2,000,000
17 November 2023
-
-
30 June 2025
David Church
1,500,000
17 November 2023
100%
-
-
James Croser
4,000,000
7 September 2023
100%
-
-
The fair value of the options issued during the year to Key Management Personnel was determined by reference to
the Black-Scholes option pricing model. The key inputs and valuations are summarised as follows:
Management – T1
Management – T2
D Church
J Croser
Underlying
security
spot price on grant
date
$0.05
$0.05
$0.05
$0.055
Exercise price
$0.08
$0.08
$0.08
$0.08
Grant date
17 November 2023
17 November 2023
17 November 2023
7 September 2023
Expiration date
30 November 2026
30 November 2026
30 November 2026
30 November 2026
Vesting date
Immediate
15 December 2024
Immediate
Immediate
Life (years)
3
3
3
3.25
Volatility
75%
75%
75%
75%
Risk free rate
4.172%
4.172%
4.172%
3.841%
Dividend Yield
-
-
-
-
Number of options
2,000,000
2,000,000
1,500,000
4,000,000
Valuation per option
$0.0199
$0.0199
$0.0199
$0.0258
Remaining life (years)
2.4
2.4
2.4
2.4
Total value
$39,200
$39,200
$29,850
$103,200
Value recognised to
date
$39,200
$22,829
$29,850
$103,200
Value
still
to
be
recognised
-
13,971
-
-
Options granted during previous financial year
The following options were granted during the prior year.
Number of
options
granted
Date granted
% Vested
% Forfeited
/ Lapsed
Financial year in
which grant
vested / will vest
Director Options
4,500,000
23 Nov 2023
100%
-
-
The fair value of the options issued during the year to Directors was determined by reference to the Black-Scholes
option pricing model. The key inputs and valuations are summarised as follows:
Notes To The Consolidated Financial Statements
Annual Report 2024
HAMMER METALS LIMITED
81
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
20.
SHARE BASED PAYMENTS (CONTINUED)
Directors
Underlying security spot price on grant date
$0.063
Exercise price
$0.07
Grant date
23 Nov 2023
Expiration date
30 Nov 2026
Vesting date
Immediate
Life (years)
4
Volatility
100%
Risk free rate
3.17%
Dividend Yield
-
Number of options
4,500,000
Valuation per option
$0.0433
Remaining life (years)
3.42
Performance Rights
The number of performance rights on issue is as follows:
30 June 2024
30 June 2023
No.
No.
Outstanding at 1 July
8,000,000
8,000,000
Granted during the period
9,000,000
-
Exercised during the period
-
-
Expired / lapsed during the period
(5,000,000)
-
Outstanding at 30 June
12,000,000
8,000,000
Vested and exercisable at 30 June
-
-
Performance Rights granted during current financial year
The fair value of the Management Performance Rights issued during the year to Key Management Personnel was
determined by reference to the underlying security on the date of issue. With respect to Tranches 1A, 2A and 3, these
fair values have not been adjusted as there exist no market-based performance conditions attached to the rights. The
key inputs and valuations are summarised as follows:
Management
Performance
Rights - Tranche
1A
Management
Performance
Rights – Tranche
2A
Management
Performance
Rights - Tranche 3
Underlying security spot price on grant date
$0.052
$0.052
$0.052
Grant date
17 Nov 2023
17 Nov 2023
17 Nov 2023
Expiration date
15 Dec 2027
15 Dec 2027
15 Dec 2027
Vesting date (estimated)
15 Dec 2024
15 Dec 2025
15 Dec 2027
Life (years)
4.1
4.1
4.1
Discount applied {a}
-
-
-
Number of rights
500,000
500,000
7,000,000
Value per right
$0.05
$0.05
$0.05
Remaining life (years) {b}
3.5
3.5
3.5
Total value
$26,000
$26,000
$364,000
Value recognised to date (as at 30 June 2024)
$14,914
$7,742
$55,248
Value still to be recognised (as at 30 June 2024)
$11,086
$18,258
$308,752
{a} – all the above three tranches of Management Performance Rights issued during the year contain no market-based
vesting conditions and therefore no discount has been applied.
{b} – the remaining life represents the time, in years, left until the expiry of the right.
Annual Report 2024
HAMMER METALS LIMITED
82
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
20.
SHARE BASED PAYMENTS (CONTINUED)
With respect to Tranches 1B and 2B, the fair values of these rights have been adjusted to recognise the existence of
market-based performance conditions attached to the rights. This valuation has been determined by reference to a
Monte Carlo Simulation model. The key inputs and valuations are summarised as follows:
Management
Performance
Rights - Tranche
1B
Management
Performance
Rights – Tranche
2B
Underlying security spot price on grant date
$0.052
$0.052
Grant date
17 Nov 2023
17 Nov 2023
Expiration date
15 Dec 2027
15 Dec 2027
Vesting date (estimated)
15 Dec 2024
15 Dec 2025
Life (years)
4.1
4.1
Share price barrier
$0.0708
$0.104
Expected volatility
103%
103%
Risk-free rate
4.098%
4.098%
Expected dividend yield
-
-
Number of rights
500,000
500,000
Fair value per right
$0.0502
$0.049
Remaining life (years) {a}
3.5
3.5
Total value
$25,100
24,500
Value recognised to date (as at 30 June 2024)
$14,397
$7,295
Value still to be recognised (as at 30 June 2024)
$10,703
$17,205
{a} – the remaining life represents the time, in years, left until the expiry of the right.
Performance Rights granted during previous financial year
The following performance rights, which all expire on 21 December 2024, were issued to the Company’s Managing
Director during the previous financial year:
•
1,000,000 Tranche 6 performance rights, vesting upon the Company announcing a new JORC 2012 compliant
mineral resource estimate of 50,000 tonnes Cu or equivalent KPI at the sole discretion of the Board;
•
1,000,000 Tranche 7 performance rights, vesting upon the Company announcing a new JORC 2012 compliant
mineral resource estimate of 100,000 tonnes Cu or equivalent KPI at the sole discretion of the Board; and
•
1,000,000 Tranche 8 performance rights, vesting upon the Company announcing a new JORC 2012 compliant
mineral resource estimate of 200,000 tonnes Cu or equivalent KPI at the sole discretion of the Board.
The fair value of the performance rights issued during the previous year to Key Management Personnel was
determined by reference to the underlying security on the date of issue. These fair values have not been adjusted as
there exist no market-based performance conditions attached to the rights. The key inputs and valuations are
summarised as follows:
Mr D Thomas –
Tranche 6
Mr D Thomas –
Tranche 7
Mr D Thomas –
Tranche 8
Underlying security spot price on grant date
$0.044
$0.044
$0.044
Grant date
29 Nov 2022
29 Nov 2022
29 Nov 2022
Expiration date
21 Dec 2024
21 Dec 2024
21 Dec 2024
Vesting date
-
-
-
Life (years)
3
3
3
Discount applied {a}
-
-
-
Number of rights
1,000,000
1,000,000
1,000,000
Value per right
$0.044
$0.044
$0.044
Remaining life (years) {b}
1.4
1.4
1.4
Total value
$44,000
$44,000
$44,000
Value recognised to date (as at 30 June 2024)
$23,204
$23,204
$23,204
Value still to be recognised (as at 30 June 2024)
$20,796
$20,796
$20,796
Notes To The Consolidated Financial Statements
Annual Report 2024
HAMMER METALS LIMITED
83
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
20.
SHARE BASED PAYMENTS (CONTINUED)
{a} – all three tranches of performance rights issued during the previous year contain no market-based vesting
conditions and therefore no discount has been applied.
{b} – the remaining life represents the time, in years, left until the expiry of the right.
The fair value of the performance rights issued during the previous year to Key Management Personnel was
determined by reference to the underlying security on the date of issue, adjusted as necessary for any market-based
performance conditions. The key inputs and valuations are summarised as follows:
Mr D Thomas –
Tranche 6
Mr D Thomas –
Tranche 7
Mr D Thomas –
Tranche 8
Underlying security spot price on grant date
$0.044
$0.044
$0.044
Grant date
29 Nov 2022
29 Nov 2022
29 Nov 2022
Expiration date
21 Dec 2024
21 Dec 2024
21 Dec 2024
Vesting date
-
-
-
Life (years)
3
3
3
Discount applied (Note 1)
-
-
-
Number of rights
1,000,000
1,000,000
1,000,000
Value per right
$0.044
$0.044
$0.044
Remaining life (years) (Note 2)
2.4
2.4
2.4
Total value
$44,000
$44,000
$44,000
Value recognised to date
$8,551
$8,551
$8,551
Value still to be recognised
$35,449
$35,449
$35,449
Note 1 – all three tranches of performance rights issued during the previous year contain no market-based vesting
conditions and therefore no discount has been applied.
Note 2 – the remaining life represents the time, in years, left until the expiry of the right.
All performance rights require the managing director to remain employed until vesting date. The vesting conditions
attached to each tranche issued during the year are as follows:
•
Tranche 6 performance rights vest upon the Company announcing a new JORC 2012 compliant mineral
resource estimate of 50,000 tonnes Cu or equivalent KPI at the sole discretion of the Board;
•
Tranche 7 performance rights vest upon the Company announcing a new JORC 2012 compliant mineral
resource estimate of 100,000 tonnes Cu or equivalent KPI at the sole discretion of the Board; and
•
Tranche 8 performance rights vest upon the Company announcing a new JORC 2012 compliant mineral
resource estimate of 200,000 tonnes Cu or equivalent KPI at the sole discretion of the Board.
21.
RELATED PARTIES
Key Management Personnel Compensation:
The following were key management personnel of the Group at any time during the reporting period and
unless otherwise indicated were key management personnel for the entire period:
Executive Directors
Mr D Thomas
Non-executive Directors
Mr R Davis
Mr D Church
Mr J Croser (appointed 8 September 2023)
Mr Z Lubieniecki (resigned 7 September 2023)
Executives
Mr M Pitts (Company Secretary)
30 June 2024
30 June 2023
The key management personnel compensation comprised:
$
$
Short-term employee benefits
517,869
547,429
Post-employment benefits
46,067
41,921
Share-based payments
351,054
217,011
914,990
806,361
Annual Report 2024
HAMMER METALS LIMITED
84
HAMMER METALS LIMITED
and its Controlled Entities
44
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
21.
RELATED PARTIES (CONTINUED)
Remuneration levels are competitively set to attract and retain appropriately qualified and experienced
Directors and executives. Remuneration packages include a mix of fixed remuneration and equity-based
remuneration.
Information regarding individual Directors and executive’s compensation and some equity instruments
disclosures as permitted by Corporations Regulations 2M.3.03 and 2M.6.04 is provided in the remuneration
report section of the Directors’ report.
Certain key management personnel, or their related parties, hold positions in other entities that result in them
having control or significant influence over the financial or operating policies of those entities. Some of these
entities (as detailed below) transacted with the Group during the reporting period.
The aggregate value of transactions and outstanding balances relating to this entity were as follows:
Transaction value year ended
Balance outstanding as at
Transaction
30 June 2024
$
30 June 2023
$
30 June 2024
$
30 June 2023
$
Mr Z Lubieniecki
Consulting
Fees
3,000
39,313
-
-
Mr R Davis
Consulting
Fees
-
7,299
-
-
Mr M Pitts
Accounting
services
43,700
45,200
3,900
4,100
The Company paid fees to Endeavour Corporate, a company associated with Mark Pitts, for accounting and
financial reporting services provided to the company. The Company also paid fees to Zbigniew Lubieniecki,
who resigned on 7 September 2023, and Russell Davis as consulting fees for geological services provided.
22.
INTEREST IN OTHER ENTITIES
Name
Country of
Incorporation
Percentage held
2024
Percentage held
2023
Parent and ultimate controlling entity
Hammer Metals Limited
Subsidiaries
Hammer Metals Australia Pty Ltd
Australia
100%
100%
Mt. Dockerell Mining Pty Ltd
Australia
100%
100%
Mulga Minerals Pty Ltd
Australia
100%
100%
Carnegie Exploration Pty Ltd
Australia
100%
100%
Hammer Bulk Commodities Pty Ltd
Australia
100%
100%
Midas Metals Asia Pty Ltd (i)
Australia
85%
85%
(i) This subsidiary is dormant and has not traded during the year.
The investments held in controlled entities are included in the financial statements of the parent at cost.
Notes To The Consolidated Financial Statements
Annual Report 2024
HAMMER METALS LIMITED
85
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
22.
INTEREST IN OTHER ENTITIES (CONTINUED)
Joint arrangements
The Group has the following farm-in / farm-out arrangements:
Mt Frosty – Mt Isa Mines (Glencore)
During a previous financial year the Group (through its wholly owned subsidiary Mulga Minerals Pty Ltd
(‘Mulga’)) completed the acquisition of a 51% interest in the Mt. Frosty prospect and agreed terms for a new
joint venture agreement with Mount Isa Mines Limited (‘MIM’) (a 100% owned subsidiary of Glenore PLC).
Each party to the joint arrangement contributes exploration expenditure according to their participating
interest (Hammer – 51% and MIM – 49%). Dilution provisions apply if a party elects not to contribute to a
programme. If a party’s participating interest falls below 10% their interest will convert to a 3% Net Profits
Royalty. Mulga acts as the initial manager of the joint arrangement.
During the year, the Group has written off exploration expenditure relating to its Mt. Frosty joint venture,
as a result of the Group no longer meeting the requirements for carrying the expenditure forward. The Group
maintains that this project retains significant value, however the Group has adopted a conservative
approach in accordance with the accounting standards in this instance.
Mt Isa East JV – JOGMEC/SMMO
The Agreement with Japan Oil, Gas and Metals National Corporation (“JOGMEC“) was signed in November
2019 and covers sections of the Even Steven, Mount Philp, Dronfield West and Malbon targets for a total
area of approximately 290km2 of the 2,200km2 Mount Isa Project. The arrangement is referred to as the
Mount Isa East Joint Venture, however in accordance with the Australian Accounting Standards is a joint
arrangement by nature.
During the financial year ended 30 June 2022, JOGMEC and Sumitomo Metal Mining Oceania Pty Ltd.
(“SMMO”) signed an agreement whereby JOGMEC would transfer its position within the Mt Isa East JV to
SMMO. The terms of the agreement remain unchanged.
The agreement allowed for SMMO to achieve a 60% interest in the project areas by expending $6,000,000
by 31 March 2024 through five stages (Farm-In Periods). During the current year, SMMO completed its fifth
stage of the Farm-In, and therefore earned the 60% interest. The Agreement also allows for, subsequent to
the completion of the Fifth Farm-in Period, each company to elect to contribute its pro-rata share of future
funding. If either party does not contribute and is diluted to an ownership of less than 10% of the Mt Isa East
JV, the Group’s equitable interest will convert to a 2% Net Smelter Return Royalty. At any time, the Net
Smelter Royalty Return Rate can be reduced to 1% via the payment of A$2,000,000.
The areas of interest subject to the Agreement are held by the Company’s subsidiaries Mt Dockerell Mining
Pty Ltd and Mulga Minerals Pty Ltd.
Isa Valley Project – South32 Limited
On 27 May 2024, the Group announced a farm-in arrangement with South32 Limited (“South32”), whereby
South32 can earn an 80% interest in the Isa Valley Project as follows:
•
An initial commitment to earn 70% through the completion of a 900m drilling campaign within 18
months of entering into the agreement (for an estimated cost of $150,000), and the expenditure
of an additional $3 million within 3 years. South32 can extend this earn-in period by up to 1 year
by spending an additional $1 million (therefore, $4 million over 4 years).
•
Once South32 has earned the 70% interest, this can be increased to an 80% interest through the
agreement to free-carry the Group’s interest in the project through to a Pre-Feasibility Study.
South32 is responsible for managing and operating the exploration program.
Bullrush Project – Sumitomo Metal Mining Oceania Pty Ltd (“SMMO”)
On 27 June 2024, the Group announced a farm-in arrangement with SMMO whereby SMMO can earn an
80% interest in the Bullrush Project as follows:
•
An initial commitment to earn 51% through the completion of a 2,000m drilling campaign within
12 months of entering into the agreement, and the expenditure of an additional $4.5 million within
4 years.
•
An additional 9% interest (to 60% total) through the expenditure of $2 million in a further 2-year
period.
Annual Report 2024
HAMMER METALS LIMITED
86
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
22.
INTEREST IN OTHER ENTITIES (continued)
Bullrush Project – Sumitomo Metal Mining Oceania Pty Ltd (“SMMO”) – continued
Subsequently, the Group can maintain its 40% interest in the project by contributing its pro-rata share of
exploration expenditure. Should the Group elect to not contribute its share, SMMO can increase its interest
from 60% to 80% by electing to free-carry the Group’s interest in the project through to a Pre-Feasibility
Study.
The Group will act as the manager an operator of the project until at least the end of the first earn-in period.
30 June 2024
30 June 2023
23.
RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES
$
$
Profit / (loss) for the year
6,270,584
(1,285,536)
Adjustments for:
Depreciation and amortisation
97,929
100,585
Share based payments
339,357
171,229
Fair value adjustment on financial assets
611,596
143,166
Partial sale of tenements
(9,000,000)
-
Interest expense
12,010
7,369
Management fee from farm-in partners
(161,199)
(178,147)
Exploration expenditure written-off
599,610
-
Movements attributable to operating activities:
Decrease / (increase) in trade and other receivables
68,755
77,351
Increase / (decrease) in trade and other payables
(345,342)
(18,798)
Net cash used in operating activities
(1,506,700)
(982,781)
24.
SEGMENT INFORMATION
The Group has three reportable segments, being mineral exploration in Queensland and Western Australia,
and corporate activities. The Group’s operating segments have been determined with reference to the monthly
management accounts, program budgets and cash flow forecasts used by the chief operating decision maker
to make decisions regarding the Group’s operations and allocation of working capital.
Segment information
The following tables represent revenue and profit information and certain asset and liability information
regarding geographical segments for the year ended 30 June 2024.
Queensland
Exploration
Western Australia
Exploration
Corporate
Total
$
$
$
$
30 June 2024
Segment income
-
-
177,062
177,062
Segment profit / (loss)
before income tax expense
(2,911)
(310)
6,273,805
6,270,584
Segment assets
19,333,058
7,207,061
10,197,441
36,737,560
Segment liabilities
(2,545)
(8,153)
(827,567)
(838,265)
30 June 2023
Segment income
-
-
190,974
190,974
Segment
loss
before
income tax expense
(3,819)
(360)
(1,281,357)
(1,285,536)
Segment assets
18,522,627
6,155,663
5,003,311
29,681,601
Segment liabilities
(23,090)
(4,875)
(580,521)
(608,486)
Notes To The Consolidated Financial Statements
Annual Report 2024
HAMMER METALS LIMITED
87
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
25.
FINANCIAL INSTRUMENTS DISCLOSURES
Overview
The Group has exposure to the following risks from their use of financial instruments:
Credit risk
Liquidity risk
Market risk
This note presents information about the Group’s exposure to each of the above risks, their objectives,
policies and processes for measuring and managing risk, and the management of capital.
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 Group
through regular reviews of the risks.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its contractual obligations and arises principally from the Group’s receivables from customers
and investment securities.
Trade and other receivables
As the Company operates in the mining exploration sector it does not have significant trade receivables and
is therefore not exposed to credit risk in relation to trade receivables. The Group receives advanced cash
calls from its farm-in / joint arrangement partner which are classified as liabilities. The cash call amounts are
reduced as and when expenditure in terms of the farm-in/ joint arrangement agreement is incurred.
Presently, the Group undertakes exploration and evaluation activities in Australia. At the balance sheet date
there were no significant concentrations of credit risk.
Exposure to credit risk
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s
maximum exposure to credit risk at the reporting date was:
Carrying amount
Note
30 June 2024
30 June 2023
$
$
Cash and cash equivalents
10
5,228,612
4,357,140
Trade and other receivables
11
172,227
252,649
Impairment losses
None of the Group’s trade and other receivables are past due and impaired (2023: Nil).
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due (refer
Note 2(g)). The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Group’s reputation.
The Group manages liquidity risk by maintaining adequate reserves by continuously monitoring forecast and
actual cash flows. Typically, the Group ensures it has sufficient cash on demand to meet expected operational
expenses for a period of 90 days, this excludes the potential impact of extreme circumstances that cannot
reasonably be predicted, such as natural disasters.
Annual Report 2024
HAMMER METALS LIMITED
88
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
25.
FINANCIAL INSTRUMENTS DISCLOSURES (CONTINUED)
The expected settlement of the Group’s financial liabilities is as follows:
Consolidated
Carrying
Amount
Contractual
Cash-Flows
< 6 months
6-12
months
1-2 years
2-5 years
30 June 2024
Trade and Other Payables
660,677
660,677
660,677
-
-
-
Lease liabilities
177,588
177,989
54,444
47,274
72,938
3,333
838,265
838,666
715,121
47,274
72,938
3,333
30 June 2023
Trade and Other Payables
443,893
443,893
443,893
-
-
-
Lease liabilities
164,593
172,343
36,183
36,183
72,400
27,577
608,486
616,236
480,076
36,183
72,400
27,577
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices
will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while optimising the
return.
Currency risk
The Group has no exposure to currency risk on investments and transactions that are denominated in a currency
other than the respective functional currencies of Group entities. The Group has not entered into any derivative
financial instruments to hedge such transactions and anticipated future receipts or payments that are denominated
in a foreign currency.
Interest rate risk
The Group is not exposed to interest rate risk on borrowings as it has no borrowings subject to variable interest. The
Group is exposed to interest rate risk on its cash balances.
Profile
At the reporting date the interest rate profile of the Company’s and the Group’s interest-bearing financial instruments
was:
Carrying amount
30 June 2024
30 June 2023
$
$
Fixed rate instruments
Cash and cash equivalents
23,264
22,367
Weighted average interest rates
4.70%
4.00%
Variable rate instruments
Cash and cash equivalents
5,205,348
4,334,773
Weighted average interest rates
3.78%
1.32%
Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss.
Therefore, a change in interest rates at the reporting date would not affect profit or loss or equity (2023: Nil)
Cash flow sensitivity analysis for variable rate instruments
A sensitivity of 50 basis points has been used and considered reasonable given current interest rates. A 0.5%
movement in interest rates at the reporting date would have increased equity and profit or loss by the amounts shown
below. This analysis assumes that all other variables remain constant. The analysis for 2023 was performed on the
same basis.
Notes To The Consolidated Financial Statements
Annual Report 2024
HAMMER METALS LIMITED
89
HAMMER METALS LIMITED
and its Controlled Entities
49
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
25.
FINANCIAL INSTRUMENTS DISCLOSURES (CONTINUED)
Consolidated
Loss
Equity
50bp
50bp
50bp
50bp
increase
decrease
increase
decrease
30 June 2024
Variable rate instruments
$26,143
($26,143)
$26,143
($26,143)
30 June 2023
Variable rate instruments
$21,786
($21,786)
$21,786
($21,786)
Carrying amounts versus fair values
The fair values of financial assets and liabilities materially equates to the carrying amounts shown in the statement of
financial position.
30 June 2024
$
30 June 2023
$
Financial assets carried at fair value through profit or loss
Equity securities – listed on ASX and TSXV at quoted prices
4,615,933
227,529
Financial assets carried at amortised costs
Cash and cash equivalents
5,228,612
4,357,140
Trade and other receivables
172,227
252,649
Financial liabilities carried at amortised costs
Trade and other payables
(660,677)
(443,893)
Lease liabilities
(177,588)
(164,593)
There are no off-balance sheet financial asset and liabilities at year-end.
All financial assets and liabilities were denominated in Australian dollars during the years ended 30 June 2024 and
2023.
Fair value risk
The group uses three different methods in estimating the fair value of a financial investment. The methods comprise:
•
Level 1 – the fair value is calculated using quoted prices in active markets; and
•
Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable
for the asset or liability, either directly (as prices) or indirectly (derived from prices)
•
Level 3 – the fair value is estimated using inputs other than quoted prices.
Quoted market price represents the fair value determined based on quoted prices on active markets as at the
reporting date without any deduction for transaction costs.
The fair value of derivatives that do not have an active market are based on valuation techniques. Level 2 derivatives
include market observable inputs whilst level 3 derivatives do not include market observable inputs.
Transfer between categories
There were no transfers between levels during the year.
The fair value of financial instruments as well as the methods used to estimate the fair value are summarised in the
table below.
Annual Report 2024
HAMMER METALS LIMITED
90
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
25.
FINANCIAL INSTRUMENTS DISCLOSURES (CONTINUED)
Consolidated
Quoted Market
Price
Level 1
Valuation
Technique:
Market
Observable
Inputs
Level 2
Valuation
Technique:
Non-market
Observable
Inputs
Level 3
Total
$
$
$
$
30 June 2024
Equity securities – listed on ASX and
TSXV at quoted prices
4,615,933
-
-
4,615,933
4,615,933
-
-
4,615,933
30 June 2023
Equity securities – listed on ASX and
TSXV at quoted prices
227,529
-
-
227,529
227,529
-
-
227,529
Other Market Price Risk
Other Equity price risk is the risk that the value of the instrument will fluctuate as a result of changes in market prices
(other than those arising from interest rate risk or currency risk), whether caused by factors specific to an individual
investment, its issuer or all factors affecting all instruments traded in the market. Investments are managed on an
individual basis and material buy and sell decisions are approved by the Board of Directors. The primary goal of the
Group’s investment strategy is to maximise investment returns.
Fair value sensitivity analysis for equity securities (listed investments)
A sensitivity of 10% has been used and considered reasonable given current market rates. A 10% movement in market
prices at the reporting date would have increased equity and profit or loss by the amounts shown below. This analysis
assumes that all other variables remain constant. The analysis for 2023 was performed on the same basis.
Consolidated
Loss
Equity
10%
10%
10%
10%
30 June 2024
increase
decrease
increase
decrease
Equity securities – listed on TSXV
$461,593
($461,593)
$461,593
($461,593)
30 June 2023
Equity securities – listed on TSXV
$22,753
($22,753)
$22,753
($22,753)
Commodity Price Risk
The Group operates primarily in the exploration and evaluation phase and accordingly the Group’s financial assets and
liabilities are subject to minimal commodity price risk at this stage.
Capital Management
The Group’s objectives when managing capital are to safeguard the Group’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. In order
to maintain or adjust the capital structure, the Group may return capital to shareholders, issue new shares or sell
assets to reduce debt. The Group’s focus has been to raise sufficient funds through equity to fund exploration and
evaluation activities.
There were no changes in the Group’s approach to capital management during the year. Risk management policies
and procedures are established with regular monitoring and reporting.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
Notes To The Consolidated Financial Statements
Annual Report 2024
HAMMER METALS LIMITED
91
HAMMER METALS LIMITED
and its Controlled Entities
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
26.
PARENT ENTITY DISCLOSURES
Company
Financial Position
30 June 2024
$
30 June 2023
$
Assets
Current assets
25,935,376
23,208,159
Non-current assets
10,713,566
6,465,856
Total assets
36,648,942
29,674,015
Liabilities
Current liabilities
718,691
463,173
Non-current liabilities
30,956
137,727
Total liabilities
749,647
600,900
Net assets
35,899,295
29,073,115
Equity
Issued capital
66,810,197
66,593,958
Accumulated losses
(31,698,520)
(38,903,136)
Reserves
787,618
1,382,293
Total equity
35,899,295
29,073,115
Company
Financial Performance
30 June 2024
$
30 June 2023
$
Loss for the year
7,204,616
(1,285,536)
Other comprehensive income
-
-
Total comprehensive income
7,204,616
(1,285,536)
There were no contingent liabilities of the parent entity at 30 June 2024 (2023: None), nor where there any
commitments of the parent entity (2023: None).
27.
CONTINGENCIES
The Group has no contingencies as at 30 June 2024 (2023: nil).
28.
EVENTS SUBSEQUENT TO BALANCE DATE
Subsequent to year end the following events have occurred:
•
On 3 July 2024, 2,600,000 unlisted options exercisable at $0.05 each expired, having lapsed unexercised on
30 June 2024.
Other than the above, there has not been any other matter or circumstance that has arisen after balance date that
has significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or
the state of affairs of the Group in future financial periods.
Annual Report 2024
HAMMER METALS LIMITED
92
HAMMER METALS LIMITED
and its Controlled Entities
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
AS AT 30 JUNE 2024
Body Corporates
Tax Residency
Entity Name
Entity Type
Place of
Incorporation
% Share
Capital Held
Australian or
Foreign
Foreign
Jurisdiction
Hammer
Metals
Limited
Body
Corporate
Australia
N/a
Australian
N/a
Hammer
Metals
Australia Pty Ltd
Body
Corporate
Australia
100%
Australian
N/a
Mt.
Dockerell
Mining Pty Ltd
Body
Corporate
Australia
100%
Australian
N/a
Mulga Minerals Pty
Ltd
Body
Corporate
Australia
100%
Australian
N/a
Carnegie
Exploration Pty Ltd
Body
Corporate
Australia
100%
Australian
N/a
Hammer
Bulk
Commodities
Pty
Ltd
Body
Corporate
Australia
100%
Australian
N/a
Midas Metals Asia
Pty Ltd
Body
Corporate
Australia
85%
Australian
N/a
All entities except for Midas Metals Asia Pty Ltd are members of the Hammer Metals Limited consolidated tax group.
None of the abovementioned entities acts as a trustee of a trust within the Group, nor is a partner in partnership with
the Group, nor is a participant in a joint venture within the Group.
Basis of preparation
The consolidated entity disclosure statement (CEDS) has been prepared in accordance with subsection Section 295
(3A) of the Corporations Act 2001. The entities listed in the statement are Hammer Metals Limited and all the entities
it controls in accordance with AASB 10 Consolidated Financial Statements.
Key assumptions and judgements
Determination of tax residency
Section 295 (3A) Corporations Act requires that the tax residency of each entity which is included in the Consolidated
Entity Disclosure Statement (CEDS) be disclosed. In the context of an entity which was an Australian resident,
"Australian resident" has the meaning provided in the Income Tax Assessment Act 1997 (Cth). The determination of
tax residency involves judgment as the determination of tax residency is highly fact dependent and there are currently
several different interpretations that could be adopted, and which could give rise to a different conclusion on
residency.
In determining tax residency, the Group has applied the following interpretations:
Australian tax residency
The Group has applied current legislation and judicial precedent, including having regard to the Commissioner of
Taxation's public guidance in Tax Ruling TR 2018/5.
Foreign tax residency
The Group has applied current legislation and where available judicial precedent in the determination of foreign tax
residency.
Consolidated Entity Disclosure Statement
Annual Report 2024
HAMMER METALS LIMITED
93
HAMMER METALS LIMITED
and its Controlled Entities
DIRECTORS’ DECLARATION
1.
In the opinion of the Directors of Hammer Metals Limited (“the Company”):
(a) the consolidated financial statements and notes and the remuneration report in the Directors’ report, are in
accordance with the Corporations Act 2001, including:
i.
giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its performance for
the financial year ended on that date; and
ii.
complying with Australian Accounting Standards and the Corporations Regulations 2001;
(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
2.
The Directors have been given the declarations by the managing director and company secretary for the
financial year ended 30 June 2024 pursuant to Section 295A of the Corporation Act 2001.
3.
The Directors draw attention to Note 2(a) to the consolidated financial statements, which includes a statement
of compliance with International Financial Reporting Standards.
4.
The Consolidated Entity Disclosure Statement as set out on page 93 is true and correct.
Signed in accordance with a resolution of the Directors:
R Davis
Chairman
Perth
Dated 19 September 2024
Directors’ Declaration
Annual Report 2024
HAMMER METALS LIMITED
94
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF HAMMER METALS LIMITED
Report on the Financial Report
Opinion
We have audited the financial report of Hammer Metals Limited (the “Company”), 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, and notes to the financial statements, including material accounting policy information, the consolidated entity
disclosure statement, and the directors’ declaration of the Company and the consolidated entity comprising the Company
and the entities it controlled at the year’s end or from time to time during the financial year.
In our opinion the accompanying financial report of Hammer Metals Limited is in accordance with the Corporations Act
2001, including:
i)
Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2024 and of its performance for
the year ended on that date; and
ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
The financial report of the consolidated entity does not include any adjustments in relation to the recoverability and
classification of recorded asset amounts or to the amounts and classification of liabilities that might be necessary should
the consolidated entity not continue as a going concern.
Independence
We are independent of the consolidated entity in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110
Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit
of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
Independent Auditor’s Report
Annual Report 2024
HAMMER METALS LIMITED
95
Key Audit Matters
A key audit matter is a matter that, in our professional judgement, was of most significance in our audit of the financial
report of the current year. This matter was 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 this matter. For the matter below, our
description of how our audit addressed the matter is provided in that context
Carrying value of capitalised exploration expenditure
Why significant
How our audit addressed the key audit matter
As at 30 June 2024 the carrying value of exploration
and evaluation assets was $26,540,119 (2023:
$24,678,290), as disclosed in note 14. Exploration
and Evaluation assets written off during the year
amounted to $599,610.
The consolidated entity’s accounting policy in
respect of exploration and evaluation expenditure
is outlined in notes 2(e) iii and 3(l).
Significant judgement is required:
•
in
determining
whether
facts
and
circumstances indicate that the exploration
and evaluation assets should be tested for
impairment in accordance with Australian
Accounting Standard AASB 6 - Exploration for
and Evaluation of Mineral Resources (“AASB
6”); and
•
in determining the treatment of exploration
and evaluation expenditure in accordance
with AASB 6, and the consolidated entity’s
accounting policy. In particular:
o
whether the particular areas of interest
meet the recognition conditions for an
asset; and
o
which elements of exploration and
evaluation
expenditures
qualify
for
capitalisation for each area of interest.
Our work included, but was not limited to, the
following procedures:
• Conducting a detailed review of management’s
assessment of impairment trigger events prepared
in accordance with AASB 6 including:
o
assessing whether the rights to tenure of the
areas of interest remained current at
reporting date as well as confirming that
rights to tenure are expected to be renewed
for permits that will expire in the near
future;
o
holding discussions with the Directors and
management as to the status of ongoing
exploration programmes for the areas of
interest, as well as assessing if there was
evidence that a decision had been made to
discontinue activities in any specific areas of
interest; and
o
obtaining and assessing evidence of the
consolidated entity’s future intention for the
areas of interest, including reviewing future
budgeted expenditure and related work
programmes.
• considering whether exploration activities for the
areas of interest had reached a stage where a
reasonable
assessment
of
economically
recoverable reserves existed;
• testing, on a sample basis, exploration and
evaluation expenditure incurred during the year for
compliance with AASB 6 and the consolidated
entity’s accounting policy; and
• assessing the appropriateness of the related
disclosures in notes 2(e) iii, 3(l) and 14.
Annual Report 2024
HAMMER METALS LIMITED
96
Other Information
Those charged with governance are responsible for the other information. The other information comprises the information
included in the consolidated entity’s annual report for the year ended 30 June 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, with the exception of the Remuneration Report.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in
the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.
Responsibilities of Directors’ for the Financial Report
The Directors of the Company are responsible for the preparation of:-
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 Act2001;
and
for such internal control as the Directors determine is necessary to enable the preparation of:-
i)
the financial report (other than the consolidated entity disclosure statements) that gives a true and fair view and is
free from material misstatement, whether due to fraud or error; and
ii)
the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to
fraud or error.
In preparing the financial report, the Directors are responsible for assessing the consolidated entity’s ability to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless the Directors either intend to liquidate the consolidated entity or to cease operations, or have no realistic alternative
but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
Independent Auditor’s Report
Annual Report 2024
HAMMER METALS LIMITED
97
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
consolidated entity’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the Directors.
• Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the consolidated entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause the consolidated entity to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether
the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the consolidated entity to express an opinion on the group financial report. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear
on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the Directors, we determine those matters that were of most significance in the
audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in
our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Annual Report 2024
HAMMER METALS LIMITED
98
Report on the Remuneration Report
Opinion
We have audited the Remuneration Report included in the Directors’ Report for the year ended 30 June 2024.
In our opinion, the Remuneration Report of Hammer Metals 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.
PKF PERTH
ALEXANDRA CARVALHO
PARTNER
19 September 2024
PERTH, WESTERN AUSTRALIA
Independent Auditor’s Report
Annual Report 2024
HAMMER METALS LIMITED
99
ASX Additional Information
Additional information required by the Australian Stock Exchange Listing Rules and not disclosed elsewhere in this report is set out
below. Information regarding share and option holdings is current as at 4 October 2024.
(ܟa) Ordinary Shareholders
Twenty largest holders of ordinary shares
Number
of shares
%
Held
CENTRAL MUTUAL (INVESTMENTS) PTY LTD
87,591,074
9.88
MR ZBIGNIEW WALDEMAR LUBIENIECKI
64,402,901
7.27
ZENITH PACIFIC LIMITED
55,000,000
6.20
BNP PARIBAS NOMS PTY LTD
45,147,642
5.09
DAVIS FAMILY CAPITAL PTY LTD
41,244,013
4.65
BNP PARIBAS NOMINEES PTY LTD
30,983,382
3.50
LUNDIE INVESTMENTS PTY LTD
29,656,350
3.35
SAMLISA NOMINEES PTY LTD
20,000,000
2.26
J P MORGAN NOMINEES AUSTRALIA
10,500,000
1.18
B & C WATSON HOLDINGS PTY LTD
8,888,888
1.00
MR SHANE RONALD BRITTEN
6,890,842
0.78
MR PHILIP JOSEPH PARKINS
6,744,086
0.76
CITICORP NOMINEES PTY LIMITED
6,546,695
0.74
ANGIP NOMINEES PTY LTD
6,500,000
0.73
HSBC CUSTODY NOMINEES
6,301,706
0.71
SACCHETTA GROUP HOLDINGS PTY LTD
6,236,409
0.70
MR ROBERT SPOONER
5,500,000
0.62
HINTON FAMILY HOLDINGS PTY LTD
4,666,125
0.53
MR BRYCE ROY SYMONS
4,400,000
0.50
MR PAUL CHRISTOPHER CLARKE
4,300,616
0.49
451,500,729
50.94
Significant shareholders
Number
of shares
Held
%
CENTRAL MUTUAL (INVESTMENTS) PTY LTD
87,591,074
9.88
MR ZBIGNIEW WALDEMAR LUBIENIECKI
64,402,901
7.27
ZENITH PACIFIC LIMITED
55,000,000
6.20
BNP PARIBAS NOMS PTY LTD
45,147,642
5.09
Each fully paid ordinary share entitles the holder to one vote at general meetings
of shareholders and is entitled to dividends when declared.
The total number of shares on issue is 886,407,349
The number of shareholders holding less than a marketable parcel is 902.
There is no current on market buy back.
The Company has no ordinary shares which are subject to voluntary escrow.
Annual Report 2024
HAMMER METALS LIMITED
100
ASX Additional Information
(ܟa) Ordinary Shareholders
Distribution of ordinary shareholders
Category of shareholding
Number of
shareholders
Number
of shares
Held
%
1 – 1,000
170
31,576
0.00%
1,001 – 5,000
118
428,339
0.05%
5,001 – 10,000
454
3,651,256
0.41%
10,001 – 100,000
1,568
65,860,356
7.43%
100,001 and over
764
816,435,822
92.11%
Total
3,074
886,407,349
100.00%
Annual Report 2024
HAMMER METALS LIMITED
101
(ܟb) Unquoted Securities
The Company has the following unquoted securities on issue.
Category of security
Number
Number of
holders
Unlisted Options exercisable at $0.05 on or before 30 November 2024
4,500,000
3
Unlisted Options exercisable at $0.04 on or before 13 May 2025
2,000,000
1
Unlisted Options exercisable at $0.07 on or before 30 November 2026
4,500,000
3
Unlisted Options exercisable at $0.08 on or before 30 November 2026
5,500,000
2
Unlisted Management Tranche 1 Options exercisable at $0.08 on or before 30
November 2026
2,000,000
2
Unlisted Management Tranche 2 Options exercisable at $0.08 on or before 30
November 2026
2,000,000
2
Performance rights, expiring 21 December 2024, vesting upon the Company
announcing a new JORC 2012 compliant mineral resource estimate of 50,000
tonnes Cu or equivalent KPI at the sole discretion of the Board
1,000,000
1
Performance rights, expiring 21 December 2024, vesting upon the Company
announcing a new JORC 2012 compliant mineral resource estimate of
100,000 tonnes Cu or equivalent KPI at the sole discretion of the Board
1,000,000
1
Performance rights, expiring 21 December 2024, vesting upon the Company
announcing a new JORC 2012 compliant mineral resource estimate of
200,000 tonnes Cu or equivalent KPI at the sole discretion of the Board
1,000,000
1
Tranche 1A Management Performance Rights, vesting upon the continuous
service for a period of 12 months from the date of issue
500,000
2
Tranche 1B Management Performance Rights, vesting upon the continuous
service for a period of 12 months from the date of issue and the share price of
the Company’s shares listed on the ASX achieving a premium of 50% over the
15-day VWAP prior to the issue date, or $0.078
500,000
2
Tranche 2A Management Performance Rights, vesting upon the continuous
service for a period of 24 months from the date of issue
500,000
2
Tranche 2B Management Performance Rights, vesting upon the continuous
service for a period of 24 months from the date of issue and the share price
of the Company’s shares listed on the ASX achieving a premium of 100% over
the 15-day VWAP prior to the issue date, or $0.104
500,000
2
Tranche 3 Management Performance Rights, vesting upon the completion (to
the Board’s satisfaction) of a material transaction to the value of a minimum of
30% of the Company’s market capitalisation, determined based on the 30-day
VWAP immediately prior to the completion or announcement of the transaction
7,000,000
2
Annual Report 2024
HAMMER METALS LIMITED
102
20
Annual Report 2024
HAMMER METALS LIMITED
103
Unit 1, 28-30
Mayfair Street
West Perth WA 6005
+61 8 6369 1195
info@hammermetals.com.au
www.hammermetals.com.au
camera Photo by Tony Bromham