ANNUAL REPORT
2022
CONTENTS
CORPORATE PARTICULARS ...................................................................................................................................... 1
CHAIRMAN AND MANAGING DIRECTOR’S REVIEW ................................................................................................. 2
OPERATIONS REPORT ................................................................................................................................................ 3
DIRECTORS' REPORT ............................................................................................................................................... 25
AUDITOR’S INDEPENDENCE DECLARATION .......................................................................................................... 37
DIRECTORS’ DECLARATION ..................................................................................................................................... 38
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ........................ 39
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ....................................................................................... 40
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ....................................................................................... 41
CONSOLIDATED STATEMENT OF CASH FLOWS .................................................................................................... 42
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS ...................................... 43
INDEPENDENT AUDIT REPORT TO THE MEMBERS OF HORIZON MINERALS LIMITED ..................................... 76
SHAREHOLDER INFORMATION ................................................................................................................................ 81
About Horizon Minerals Limited
Horizon Minerals Limited (Horizon and the Company) is an emerging mid-tier gold producer with high quality projects
located in the heart of the West Australian goldfields. The Company is led by a Board and Management team with deep
experience developing and operating successful gold mines within the Kalgoorlie region.
Horizon has a large tenement holding which hosts over a million ounces of gold in Resources and has significant open
cut and underground growth potential.
Corporate Governance
The Company has adopted the 4th Edition of the ASX Corporate Governance Recommendations. A summary statement
which has been approved by the Board together with current policies and charters is available on the Company website
at the following address www.horizonminerals.com.au.
CORPORATE PARTICULARS
DIRECTORS
Ashok Parekh
Non-Executive Chairman
Peter Bilbe
Non-Executive Director
Jonathan Price
Managing Director
COMPANY SECRETARY
Julian Tambyrajah
Chief Financial Officer & Company Secretary
REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS
163-167 Stirling Highway
NEDLANDS WA 6009
Telephone +61 8 9386 9534
Email
info@horizonminerals.com.au
POSTAL ADDRESS
PO Box 1104
NEDLANDS WA 6909
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Level 11
172 St Georges Terrace
PERTH WA 6000
Telephone 1300 787 272
AUDITORS
PKF Perth
Level 5
35 Havelock Street
WEST PERTH WA 6005
Telephone +61 8 9426 8999
STOCK EXCHANGE LISTING
Australian Securities Exchange
Home Exchange: Perth
Code: HRZ
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CHAIRMAN AND MANAGING DIRECTOR’S REVIEW
Dear Shareholder
The 2022 financial year has been a challenging one for the resources sector as a whole. The Company responded to
the COVID-19 pandemic putting in prudent measures to ensure business continuity and minimising risk to employees
and the communities in which we operate. The impact initially restricted progress but quickly returned to business as
usual despite some delays.
With continuing concerns around the global economy, COVID-19, trade wars and increased geopolitical tension, the safe
haven of gold has seen the US$ gold price maintained around the US$1,700 per ounce mark. With the Australian dollar
gold price holding between A$2,400-A$2,600 and the industry’s focus on organic growth, M&A and reducing costs of
production, Australia is now globally competitive and attracting investment both domestically and internationally.
Locally, Western Australia and the goldfields region has managed well in this difficult environment despite severe labour
shortages and escalating costs. The merger between Northern Star and Saracen has changed the landscape in the local
region and put further consolidation at asset and corporate level clearly in the frame.
The 2022 financial year saw volatile capital markets for junior explorers and emerging developers. The first half saw a
significant increase in exploration activity across the region and presented challenges with sourcing drill rigs, staff and
marked delays in assay turnaround times. The second half saw a reduction in exploration expenditure in the junior end
as capital reduced. The COVID-19 pandemic has also been a major contributor to this, and future labour shortages and
equipment availability will continue to be challenging in the years ahead.
The Company progressed on a number of fronts during the year with the large scale exploration program, acquisitions
and divestments, resource growth, underground mine studies and the demerger of the 25% interest in the Richmond
vanadium project. The Company decided to place the Feasibility Study on hold during a period of severe cost escalation
and construction risk and adopted a contract mining – toll milling model as we have successfully utilised in the past.
Over 40,900m of drilling was completed during the year with excellent results received across the portfolio delivering
resource growth and a number of new discoveries. Exploration drilling at Yarmany, Lakewood and the Greater Boorara-
Cannon projects intercepted high grade gold mineralisation and nickel sulphide and PGM mineralisation. Given this
success, the focus for the FY2023 program will on increased drilling for multiple commodities across these three core
areas.
A number of strategic acquisitions were announced during the year including the Cannon – Glandore – Cowarna deal
and the acquisition of the remaining 50% of the high-grade Penny’s Find underground project. These acquisitions are in-
line with our strategy of developing high grade – low tonnage underground and open pit projects under the contract
mining – toll milling model for cash generation. The Cannon Feasibility Study was released, and a sequence of
underground developments proposed including Penny’s Find and Rose Hill.
During the year, the Company announced a number of divestments including non-core assets and the sale of listed
investments to contribute to exploration funding and asset purchases. These divestments will continue in the FY2023
enabling focus on the three core exploration areas and to assist in funding the proposed underground developments.
The Company also announced its intention to demerge and progress an IPO for the Richmond vanadium project including
an in-specie distribution back to shareholders and a priority offering in the IPO. The internal restructure of the IPO vehicle
Richmond Vanadium Technology was completed and now holds 100% of the project and is progressing the IPO process
for a proposed listing in 2022. A new dedicated Board is now in place and the Company has received significant interest
in this emerging new green energy critical mineral for use in the grid scale renewable energy storage market.
We’d like to take the opportunity to thank all our Board members, staff, operational and drilling contractors, external
consultants and you, our shareholders, for your support during the year. The Horizon team look forward to keeping you
fully informed as the business grows in what will be another very exciting year ahead.
Jon Price
Managing Director
Perth, WA
28 September 2022
Ashok Parekh
Chairman
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OPERATIONS REPORT
CORPORATE
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
The Company recognises the importance of Environmental, Social and Governance (ESG) factors and is committed to
continuous improvement in this regard. During the year, a review commenced of all internal policies, procedures,
governance principles to identify improvements and opportunities to ensure we meet or exceed our social license to
operate. The next step is to engage an external independent expert to complete an audit and gap analysis.
ISSUED CAPITAL
At 30 June 2022, Horizon Minerals Limited had 612,419,645 fully paid ordinary shares on issue.
COMPANY INVESTMENTS
At 30 June 2022 Horizon held the following listed investments:
Company
Securities
Kingwest Resources Ltd
Ordinary Shares
Cyprium Metals Ltd
Metal Hawk Ltd
TOTAL
Ordinary Shares
Ordinary Shares
ASX
KWR
CYM
MHK
Number
Spot Value at
30 June 2022
37,083,333
$1,854,167
84,617
$9,308
3,000,000
$465,000
$2,328,475
At 30 June 2022, the Company had cash on hand of approximately $5.4 million.
DIVESTMENT OF ROYALTIES
In 2018, Horizon divested its interest in the Lehmans Gold joint venture to Saracen Mineral Holdings (now Northern Star
Resources) for A$2.5 million in cash. As part of the divestment, a 2.5% Net Smelter Royalty is payable once production
reaches 42,000 ounces from the Otto Bore tenements and ends on production of 100,000 ounces.
On 29 March 2021, Horizon announced a Royalty Sale Agreement to Vox Royalty Corp. (TSX: VOX) (Vox) which included
the Janet Ivy Production Royalty and the Otto Bore (Saracen Mineral Holdings now Northern Star Resources) Production
Royalty. Vox paid A$4 million in cash at Completion and a further A$3 million in cash or Vox shares at Vox’s election
(priced on a 30-day VWAP basis) upon Vox receiving cumulative payments of A$750,000 from the transaction royalties.
On 28 July 2021, the Company executed a binding term sheet with Metal Hawk Ltd (ASX: MHK) to divest the nickel rights
on 12 tenements adjacent to their Blair North and Clinker Hill nickel sulphide projects (renamed the Berehaven nickel
project). Consideration for the exclusive option over the tenements comprise 1.5 million shares in MHK on execution of
a formal Rights Agreement and a further 3 million shares in MHK on their election to exercise the option within 18 months,
this was completed during the year.
DIVESTMENT OF MENZIES AND GOONGARRIE GOLD PROJECTS
As announced to the ASX on 9 July 2019, the Company agreed to divest its 100% interest in the Menzies and Goongarrie
gold projects to Kingwest Resources Ltd (ASX: KWR, Kingwest) for a total consideration of A$8 million on the following
terms:
• An initial deposit of $750,000.
• On settlement:
o A further $1 million in cash; and
o
Issuing 20M ordinary shares in Kingwest to Horizon at a deemed issue price of $0.15 per share subject
to voluntary escrow from date of issue of (a) 18 months following settlement and (b) 3 months following
the payment of the deferred consideration.
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OPERATIONS REPORT
CORPORATE
DIVESTMENT OF MENZIES AND GOONGARRIE GOLD PROJECTS (CONTINUED)
• A deferred payment no later than 18 months after settlement of:
o A further $1.625 million in cash; and
o
$1.625 million in value of shares in Kingwest at a deemed price being the lower of $0.15 per share and
the 30 day VWAP (subject to shareholder approval and Horizon not exceeding 19.9% ownership in
Kingwest).
The Company has received the deferred $1.625 million cash payment and 10.83 million shares in Kingwest.
In August 2021, the Company participated in Kingwest’s Placement committing $500,000 for 6,250,000 Shares at $0.08
per share with 1 new unlisted option for every 2 shares exercisable at $0.15 and expiring on 30 December 2023. The
Company’s total shareholding increased to 37.83 million shares representing 15.26% of the issued capital.
Horizon is a substantial shareholder in Kingwest with Board representation and a right to process or purchase any ore
from the sale tenements under standard commercial terms. For further details on the divestment, please see the
announcement of 9 July and 18 September 2019.
DIVESTMENT OF GUNGA WEST
On 17 June 2022, the Company reached agreement with FMR Investment Pty Ltd (FMR) to divest its Gunga West gold
project near Coolgardie in the Western Australian goldfields for cash and a toll milling allocation into FMR’s 1Mtpa
Greenfields mill.
Horizon acquired Gunga West as part of a larger asset swap of projects with Northern Star Resources Limited as
announced to the ASX on 12 September 2019 and included the core Rose Hill, Brilliant North and Golden Ridge tenure.
The divestment comprises seven mining leases, one prospecting licence and one miscellaneous license making up the
Gunga West project. Under the Agreement, FMR will pay $400,000 in cash on the following terms:
• Deposit of $100,000 in cash
•
$300,000 in cash on completion
• Access to FMR’s Greenfields toll mill in Coolgardie on commercial terms for ore treatment of 200,000 tonnes
commencing in 2023
Completion is expected to be in the September 2022 Quarter and subject to standard conditions precedent for a
transaction of this nature including due diligence, Ministerial consent, any third party assignments and provision of mining
information.
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OPERATIONS REPORT
EXPLORATION AND EVALUATION
OVERVIEW
The Company continued to advance and build up its core gold project portfolio in Western Australia through extensional
and new discovery drilling, and to leverage off its substantial landholding into other commodities, including Ni-Co, Ag-
Zn, Cu and PGE’s. In addition, the Company’s joint venture partners were active through earn in projects including the
exciting Richmond vanadium project in Queensland. The Company also entered into an option agreement with Metal
Hawk Limited (MHK) for MHK to acquire nickel rights on 12 of the Company’s tenements for consideration of 1,500,000
MHK shares, with the option exercised during the year for an additional 3,000,000 MHK shares.
The locations of all WA projects are shown in Figure 1.
Figure 1
Horizon Minerals Ltd WA Projects
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OPERATIONS REPORT
EXPLORATION AND EVALUATION
OVERVIEW (CONTINUED)
The Company operates 100% owned gold projects in the Kalgoorlie and Coolgardie Regions and has an earn-in Joint
Venture (JV) at the Richmond vanadium project located in Queensland. Over 53,372m of drilling was completed during
the 2022 financial year.
Key activities conducted during the year are outlined below.
Figure 2
Horizon Minerals Ltd Kalgoorlie Area Gold Projects Location Map
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OPERATIONS REPORT
EXPLORATION AND EVALUATION
BOORARA-CANNON GOLD PROJECT AREA
The Boorara-Cannon Gold Project (BGP) area comprises the 100% owned 448,000oz Boorara gold mine, the Golden
Ridge project to the south, Cannon project 10km to the east and the Kanowna South and Balagundi prospects to the
north (Figure 2). During the year, activities focussed on de-risking the larger scale development at Boorara as part of the
consolidated feasibility study, which included stage 1 trial mining to increase confidence in the Mineral Resource Estimate
(MRE). Stage 1 low grade ore reconciling at 98,121 dry tonnes at a grade of 0.93g/t was treated through the Lakewood
Toll Milling plant through a JV with Golden Mile Milling netting the company A$1.35m. The consolidated Feasibility Study
was placed on hold due to significant short-term volatility in capital and operating costs due to labour shortages, materials
cost inflation and supply shortages, with the company aiming to monetise low tonnage, high grade assets via
underground mining and toll milling. The Cannon feasibility study was released during the year showing good economics,
with this project being the first in a series of underground operations to be progressed, with approvals and mining to be
progressed in the year to come.
UNDERGROUND GOLD PROJECTS
The Cannon Gold Project was acquired by the company in October 2021, the Mineral Resource Estimate (MRE) updated
the following month, and the Feasibility Study competed in the March quarter, with the key metrics shown below:
Table 1: Summary of PFS key outcomes for Cannon Underground
Measure
PFS Outcome
Lateral Development (m)
Vertical Development (m)
Development Ore (kt)
Stoping Ore (kt)
Total Mined Ore (kt)
Gold grade (g/t)
Stope Mining Recovery
Milling Recovery (%)
Recovered Gold (oz)
Capital Costs (incl development) (A$m)
C1 Costs (A$/oz)
All in Sustaining Costs (A$/oz)
Free Cashflow at A$2,600/oz Au Price (A$m)
1,264
131
15.0
120
135
4.1
95%
90%
15,910
4.3
1,644
1,873
10.1
The estimated Ore Reserve, which constitutes 100% of the production target, has been prepared by competent persons
in accordance with JORC Code 2012. The Ore Reserve is shown in the table below:
Table 2: Summary of Cannon Underground Ore Reserves by Classification
Classification
Tonnes
g/t Au
Ounces
Proven
Probable
Total
0
135,000
135,000
0
4.1
4.1
0
17,680
17,680
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OPERATIONS REPORT
EXPLORATION AND EVALUATION
UNDERGROUND GOLD PROJECTS (CONTINUED)
The Ore Reserve reflects the mining of the Cannon Mineral Resource via underground mining methods below the existing
open pit. There is approximately three months of preproduction works including pit dewatering, mobilisation, and site
establishment, followed by sixteen months of mining.
Operational activities shall be undertaken by a mining contractor with technical and managerial oversight provided by
Horizon. Mining will be underground with access via a portal within the pit to develop the decline to the base of the mine,
with lateral ore drives developed from the decline. The mining method will be a bottom-up method using longhole stoping
with Cemented Rockfill (CRF). Ore and waste shall be loaded out by conventional diesel-powered Load-Haul-Dump
(LHD) loaders and low profile trucks. Development undertaken with Jumbo Drills and stoping with Longhole drills.
Following pre-production activities, development occurs over a period of seven months, with stoping and backfilling
operations commencing in month seven. Sufficient ore stockpiles for milling shall be built-up to enable processing to
occur over months seven to seventeen with processing completed one month after mining is completed.
It is anticipated that the Penny’s Find gold mine shall be developed next in the underground development project pipeline,
followed by the Rose Hill project. The Penny’s Find resource was updated during the year and stands at:
Table 3: Penny’s Find Underground (<260m RL) Mineral Resource Estimate at a 1.5g/t au cut-off grade
Classification
Tonnes
g/t Au
Ounces
Indicated
Inferred
Total
188,000
62,000
250,000
5.71
3.74
5.22
35,000
7,000
42,000
Horizon currently holds 50% of the Penny’s Find project with Labyrinth Resources Limited (LRL) with LRL agreeing to
sell the remaining 50% interest in the project during the year. Completion is expected early in the new reporting year.
BOORARA GOLD PROJECT AREA – EXPLORATION
The current Boorara resource comprises 1.8km of strike and sits with in the greater Boorara area covering over 25km of
strike length from Golden Ridge in the south to Kanowna and Balagundi to the north. During the reporting period, the
Company commenced the 13,000m regional drilling program within the greater Boorara project area exploring for
Boorara style mineralisation and new discoveries (both precious and base metals) along the 25km of strike along the
Boorara shear zone.
In total 67 RC holes for 8,141m to a maximum depth of 234m tested several near mine and regional base load targets
between the 448koz Boorara deposit and the 31koz Golden Ridge deposit 4km to the south.
At Golden Ridge, the drilling results confirmed that the porphyry host rock contains multiple, narrow flat lodes of quartz
veining (Figure 3). The unusual thickness (up to 26m) of the intercepts in GRRC21010 and GRRC21011 was of particular
interest. A field crew from ABIMS downhole surveys was later mobilised to complete downhole ATV/OTV imagery to get
a better understanding of the Golden Ridge North structure. Better results at Golden Ridge North include1:
o 3m @ 1.08g/t Au from 94m and 26m @ 1.12g/t Au from 130m (GRRC21010)
o 3m @ 1.41g/t Au from 100m and 12m @ 1.11g/t Au from 128m (GRRC21011)
o 3m @ 1.67g/t Au from 47m, 1m @ 1.73g/t Au from 63m, 4m @ 2.01g/t Au from 66m, 2m @ 1.68g/t Au from 73m,
1m @ 1.01g/t Au from 79m, 1m @ 1.01g/t Au from 81m, 2m @ 1.17g/t Au from 90m and 5m @ 3.15g/t Au from
142m (GRRC21001)
1m @ 3.07g/t Au from 18m, 5m @ 1.17g/t Au from 24m, 1m @ 1.92g/t Au from 34m and 3m @ 2.49g/t Au from
42m (GRRC21005)
2m @ 20.77g/t Au from 80m (GRRC21026)
2m @ 26.11g/t Au from 69m (GRRC21018)
o
o
o
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OPERATIONS REPORT
EXPLORATION AND EVALUATION
BOORARA-CANNON GOLD PROJECT AREA – EXPLORATION (CONTINUED)
Figure 3
Golden Ridge drilling highlights
About 2.5km south of Golden Ridge, the Company commenced testing a large surface gold anomaly with an Air Core
rig. In total, 35 holes for 2,654m were drilled along old grid lines (refer to ASX announcement dated 20 October 2021).
Results are still pending for 18 holes with results received to date including 1:
o
o
3m @ 5.01g/t Au from 52m including 1m @ 10.30g/t Au from 54m (GRAC21007)
4m @ 1.86g/t Au from 40m* (GRAC21021)
Recent mapping has now confirmed this area as being the extension of the Golden Ridge stratigraphy. As mentioned,
two of the drillholes returned significant mineralisation and follow up drilling will be completed in 2022.
The mapping has also identified highly magnetic olivine bearing magnesium (Mg) ultramafics (e.g. serpentinised
komatiite) to the west of Golden Ridge. Komatiites can be fertile hosts for nickel sulphide mineralisation in this region.
Very little nickel sulphide focussed drilling has been undertaken at Golden Ridge.
During 2022, 7 RC holes were drilled into the ultramafics at Golden Ridge area with a view to casing 3 of the holes for a
geophysical down hole electrical survey “DHMEM”, this work is ongoing and will be reported in the 2022 December
quarter.
At the Beehive prospect (Figure 4), 500m northwest of the Regal trial pit, historic mineralisation was confirmed. Further
step back drilling is now planned. Significant results included1:
o 1m @ 1.28g/t Au from 49m, 1m @ 1.23g/t Au from 53m, 1m @ 1.03g/t Au from 57m and 1m @ 2.06g/t Au from 70m
(BORC21006)
o 1m @ 1.46g/t Au from 38m, 3m @ 1.98g/t Au from 46m, 1m @ 1.13g/t Au from 61m and 2m @ 1.26g/t Au from 89m
(BORC21005)
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OPERATIONS REPORT
EXPLORATION AND EVALUATION
BOORARA-CANNON GOLD PROJECT AREA – EXPLORATION (CONTINUED)
New mineralisation was also confirmed 300m west of Regal including1:
2m @ 1.25g/t Au from 83m, 2m @ 1.18g/t Au from 99m and 2m @ 2.40g/t Au from 118m (BORC21002)
o
Follow up drilling is also planned. Together with the Beehive prospect and historical results, this 2.5km long newly
identified corridor west of the Regal and Royal pits has surprisingly received little modern exploration and now firms up
as another new priority area2.
Further south at the Chapple Bore prospect, 1,200m from the Royal trial pit, strong Au mineralisation was observed in
BORC21010 (2m @ 1.35g/t Au from 53m and 8m @ 1.30g/t Au from 64m). This area is accessible only to the north
where there has been very little historical drilling.
One RC hole was also located midway between Golden Ridge and Boorara (Figure 4). It confirmed the open-ended
historical mineralisation in RRC1 (Wamex A57937 3m @ 5.37g/t Au from 42m and 1m @ 2.79g/t Au from 48m) with
another encouraging scissor hole returning:
8m @ 1.30g/t Au from 53m and 1m @ 1.31g/t Au from 70m (BORC21015)
o
Horizon Minerals also completed 4,645m of regional Air Core drilling to the north of Boorara testing multiple targets for
gold toward Kanowna Belle and silver-zinc, nickel, copper and Platinum Group Elements (PGEs) within the Nimbus
stratigraphy (Figure 3). No significant results were returned.
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OPERATIONS REPORT
EXPLORATION AND EVALUATION
BOORARA-CANNON GOLD PROJECT AREA – EXPLORATION (CONTINUED)
Figure 4
Boorara - Golden Ridge highlights and regional geology
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OPERATIONS REPORT
EXPLORATION AND EVALUATION
BINDULI GOLD PROJECT AREA – EXPLORATION
The Binduli project is located 9km west of Kalgoorlie – Boulder. The geology at Binduli is dominated by the Black Flag
Group – a sequence of intermediate and felsic volcanics, sedimentary rocks and porphyry intrusives. Typically, the area
is covered by major North North-West (NNW) shear zones cutting across the historic Binduli goldfield. Close to West
Kalgoorlie are the Crake and Coote deposits which are similar to the nearby 390,000oz Janet Ivy open pit, located 1,500m
south, where the gold is hosted in a structurally controlled pink feldspar porphyry.
About 5km north of Coote/Crake are the new Kestrel discovery and emerging Honeyeater prospects The Kestrel
mineralisation coincides with a variable thickness of quartz-sulphide veining tentatively on a porphyry/volcanic contact.
Assay results from an initial 4,372m RC program returned:
o 23m @ 5.84g/t Au from 84m (KRC21007)
o 4m @ 24.27g/t Au from 92m (KRC21044)
o 5m @ 13.22g/t Au from 101m including 1m @ 42.27g/t Au from 101m and 1m @ 1.15g/t Au from 109m (KRC21020)
o 8m @ 4.80g/t Au from 64m including 1m @ 29.95g/t Au from 64m (KRC21022)
o 2m @ 3.09g/t Au from 56m and 3m @ 10.52g/t Au from 80m including 1m @ 25.57g/t Au from 80m (KRC21010)
o 2m @ 34.84/t Au from 74m including 1m @ 68.04g/t Au from 74m (HRC22006)
o 1m @ 9.98g/t Au from 28m, 1m @ 1.21g/t Au from 38m and 1m @ 6.18g/t Au from 44m (HRC22008)
The results have demonstrated significant high-grade widths along a potential 650m strike length below the depleted
cover which remains open along strike and at depth (Figures 5-6).
Figure 5
Kestrel Drilling Plan Location
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OPERATIONS REPORT
EXPLORATION AND EVALUATION
Figure 6
Kestrel Cross Section
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OPERATIONS REPORT
EXPLORATION AND EVALUATION
New discovery drilling
During the Quarter, first pass green fields exploration commenced at the Yarmany project following a comprehensive
targeting study, geochemical / geophysical review and field reconnaissance work. RC and Air Core drilling has been
utilised to ensure sufficient depths are achieved along the Mt Ida fault and the Reptile shear zone with multiple targets
selected for gold, nickel sulphide and mineral bearing pegmatites. The Yarmany project area is located 25km northwest
of Coolgardie and 65km west of Kalgoorlie – Boulder in Western Australia (Figure 1).
The geology at the Yarmany Project area is dominated by tholeiitic and high MgO basalts, felsic and pelitic schists after
felsic volcanic rocks and/or sediments with less common lithologies including komatiitic ultramafics and granitoid
intrusives, including pegmatites. The largest of these granitoids, which occur in the southern parts of Yarmany is the Silt
Dam Monzogranite, interpreted to be a post-regional folding granitoid. The region has variable metamorphic grade, but
generally varies between low to high amphibolite facies typical for this western part of the Kalgoorlie Terrane.
The western margin of the Yarmany project is bounded by the 500km long, northerly trending Ida Fault, a crustal scale,
east dipping, listric fault extending to greater than 15 km below surface.
The Yarmany drilling campaign was the Company’s first program at this underexplored project. The drilling was
completed in two phases, namely reverse circulation (RC) and Air Core drilling. Air Core drilling is typically used as a
lower cost alternative to RC drilling, especially during the early exploration stage while covering a larger testing area. It
is, however, often limited to drilling within the softer, more weathered rocks. A total of 47 RC holes for 4,413m and 72 Air
Core holes for 2,617m were completed (Figure 7).
Two small historic prospects along the Reptile shear, that had reported high grade gold mineralisation (up to 14.5g/t Au),
were tested by six RC holes with no significant results. Better results were achieved in areas where there was only
minimal historic RAB drilling.
The best Reptile shear results obtained to date was in a quartz stockwork zone where 19 scout RC holes discovered at
least two new gold systems (Figure 9). Significant results included 1:
o 2m @ 4.95g/t Au from 86m (YMRC21044)
o 2m @ 3.58g/t Au from 66m and 2m @ 1.25g/t Au from 78m (YMRC21040)
o 1m @ 1.27g/t Au from 54m and 2m @ 1.41g/t Au from 59m (YMRC21043)
o 2m @ 1.33g/t Au from 63m (YMRC21041)
o 1m @ 1.81g/t Au from 111m (YMRC21015)
• A further 1km to the south-east, another emerging prospect at Wotan included:
o 1m @ 1.61g/t Au from 48m (YMRC21009)
o 1m @ 1.81g/t Au from 111m (YMRC21015, note bottom of hole terminated at 114m assayed 0.34g/t Au)
Typically, the oxide weathering profile around the Reptile shear has a variable depth but extended to over 100m in depth
in some areas.
Further encouraging gold mineralisation was observed at the Big Red prospect where historic auger sampling had
outlined a 3.5km x 2km soil anomaly with a peak value of 75ppb Au with 6,500m of RAB drilling delineated six anomalous
areas that recorded bottom of the hole results >1.0g/t Au. Four diamond drillholes that followed up the better prospects
returned modest levels of gold (best result 12BRDDH004 1.1m @ 2.56g/t Au from 56.9m).
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OPERATIONS REPORT
EXPLORATION AND EVALUATION
Regional Magnetic Image with the 2021 Yarmany Exploration Highlights
Figure 7
Horizon drilled five RC holes into the Big Red prospect (Figure 8) where old drill spoils showed strong alteration and
pyrite mineralisation. Better results included 1:
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OPERATIONS REPORT
EXPLORATION AND EVALUATION
o 1m @ 2.91g/t Au from 39m, 2m @ 2.94g/t Au from 82m and 2m @ 2.37g/t Au from 86m (YMRC21019)
o 6m @ 1.14g/t Au from 66m (YMRC21021, note bottom of hole assay was 1.69g/t Au from 71m-72m).
In addition, an Air Core program comprising 72 shallow holes and were drilled to test some magnetic highs for nickel and
follow up on the pegmatite outcrops observed in October 2021. Drilling across the many magnetic highs (mapped by the
GSWA as being an ultramafic rock) outlined a regolith with anomalous Ni-Cr-Co, geochemistry consistent with nickel
laterite mineralisation that typically occur over ultramafic rocks in Western Australia. Bulked results from the Air Core
drilling include:
o 27m @ 0.42% Ni and 299ppm Co from 4m including 4m @ 0.71% Ni and 767ppm Co from 20m and 3m @
0.58% Ni and 412ppm Co from 28m (YMAC21007)
o 16m @ 0.33% Ni and 344ppm Co from 4m (YMAC21011)
o 30m @ 0.26% Ni and 130ppm Co from surface including 2m @ 0.67% Ni and 136ppm Co from 28m
(YMAC21006)
The results confirm the nickel prospectivity of this 1.6km long magnetic ultramafic unit (talc-chlorite schist). Although
there are low grade laterites and clays in the Yarmany regolith, Horizon is focussed on locating nickel sulphides that
could be located beneath this laterite mineralisation. Horizon notes there is very little historic, or recent drilling, targeting
nickel sulphides along this or any of the other mapped ultramafics of magnetic highs within the 50km long tenure.
The bulk of the Air Core drilling was directed to locating and testing pegmatites, in particular lithium rich pegmatites.
Lithium pegmatites have been well documented in this region with several nearby companies progressing their projects
(refer to Red Dirt Metal Limited). Access around Yarmany was hampered by POW approval delays and lack of any
access tracks. The pegmatite outcrop discovered in October gave Horizon a starting point as very few pegmatites had
been documented at Yarmany.
Drilling along two cross lines at 50m spacings confirmed the presence of multiple pegmatite dykes in a quartz-biotite
schist, however most lithium results were <50ppm. Some elevated results up to 128 ppm lithium were noted and warrant
further investigation. Rare, greenish crystals (2-4mm) of spodumene or beryl were also observed in the drill cuttings
The Lakewood project is located 20km southeast of Kalgoorlie - Boulder (Figure 1) and is extensively covered by Playa
Lake sediments, aeolian deposits derived from desiccated playas and other transported Cainozoic material. Only a small
portion of the Project area is covered by in-situ soils, and there is virtually no outcrop. Lakewood typically comprises a
thin veneer of soils overlying plastic clays that vary in thickness from 2m - 40m. Below this are unconsolidated clays and
sands and then bedrock. Sandy grey clay filled paleochannels exist within the central Project area, some of which host
small amounts of alluvial gold. There has been no mining activity on the tenure.
The interpreted geology of the Lakewood Project is a late-stage sedimentary basin dominated by metamorphosed
sedimentary rocks and felsic volcanic/intrusive rocks of the Black Flag Formation, together with a sequence of sediments,
basalts, mafic and ultramafic intrusives on the eastern edge.
Recent interpretative gravity work in 2021 by an external consultant has shown that this linear zone of mafic/ultramafic
intrusives is located on a regional scale (~10mGal), deep seated (+1,600m) NNW trending, vertical dipping litho-
boundary. This could be a potentially key driver as many of the Ni and PGM occurrences in the Eastern Goldfields are
sited close to deep crustal structures.
During 2021, the Company completed a first pass reconnaissance program comprising 59 air core holes for 3,002m
testing four priority targets for nickel-cobalt and platinum group metals over a mafic/ultramafic intrusives and sediments.
Significant composite results received to date from the key targets include (Figure 8):
o 8m @ 206ppb Pt & 35ppb Pd from surface (PGM 2E 0.24g/t), 4m @ 67ppb Pt and 39ppb Pd from 8m and
4m @ 124ppb Pt and 24ppb Pd from 24m (PGM 2E 0.14g/t) (LKAC21025)
o 4m @ 133ppb Pt & 37ppb Pd from 20m (PGM 2E 0.17g/t), and 4m @ 90ppb Pt, 34ppb Pd and 503ppm
Ni from 24m (LKAC21014)
o 8m @ 131ppb Pt, 14 ppb Pd (PGM 2E 0.14g/t), 726ppm Ni, 119ppm Co from 20m and 4m @ 102ppm Cd
from 64m, 4m @ 921ppm Cu from 68m (to end of hole) (LKAC21023)
The Company sees significant opportunity for the discovery of new deposits within the three core project generation
areas at Greater Boorara, Yarmany and Lakewood and will be a key focus for the Company in 2022.
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OPERATIONS REPORT
EXPLORATION AND EVALUATION
Figure 8
Lakewood drilling highlights
RICHMOND VANADIUM HORIZON 25% EQUITY – BANKABLE FEASIBILITY STUDY
The Richmond Vanadium Project is located 650km west of Townsville and 250km east of Mt Isa in northwest Queensland
(Figure 9) and is owned 100% by RVT with Horizon owning 25% of RVT. The project tenements cover 1,420km2 of
Cretaceous Toolebuc Formation and the advanced Lilyvale deposit north of Richmond (Figures 9 and 10).
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OPERATIONS REPORT
EXPLORATION AND EVALUATION
Figure 9
Richmond Vanadium Project location and surrounding infrastructure
The project is located within marine sediments of the early Cretaceous Toolebuc Formation which is a stratigraphic unit
that occurs throughout the Eromanga Basin in northwest Queensland. The Toolebuc sediments consist predominantly
of black carbonaceous and bituminous shale and minor siltstone, with limestone lenses and coquinites (mixed limestone
and clays). It is composed of two distinct units representing two different facies: an upper coarse limestone-rich-clay-oil
shale unit (coquina) and a lower fine-grained carbonate-clay-oil shale unit.
The global MRE for the Richmond Vanadium Project area (Figure 10) is shown in the Table on page 20:
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OPERATIONS REPORT
EXPLORATION AND EVALUATION
RICHMOND VANADIUM HORIZON 25% EQUITY – BANKABLE FEASBILITY STUDY (CONTINUED)
During FY20, RVT completed a 7,817m drilling program at the Lilyvale vanadium deposit (Figure 10) to infill previous
drilling enabling an updated Mineral Resource Estimate to be compiled at an improved JORC Category for reserve
generation studies to be completed.
Figure 10
Lilyvale Vanadium project location and Richmond Lease areas
Lilyvale project
The advanced Lilyvale deposit is located 45km northwest of the Richmond Township and in close proximity to the Flinders
Highway and Great Northern Railway line (Figures 9 and 10). The shallow supergene deposit is 5m to 15m thick, up to
4km wide, over 50km long and is open along strike. Lilyvale has been the focus for initial development studies and
extensive metallurgical test work and flowsheet design given the grade, shallow depth, absence of oil shale and continuity
of the deposit that can provide globally significant supply to the steel and emerging energy storage markets for over 100
years.
Lilyvale Pre-Feasibility Study results
As announced to the ASX on 22 March 2022, a positive PFS was released focussed on the development of the Lilyvale
vanadium deposit.
•
•
•
The Study delivered a maiden Ore Reserve for Lilyvale of:
459.2Mt grading 0.49% V2O5 for 2.25Mt of contained V2O5 product
The PFS was based on a long mine life at Lilyvale demonstrating a financially strong project with the following
attributes:
o
Low impact open pit mining from surface to 25m depth (Figure 11) with progressive rehabilitation
producing a 1.6% - 1.8% vanadium pentoxide (V2O5) concentrate on site
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OPERATIONS REPORT
EXPLORATION AND EVALUATION
RICHMOND VANADIUM HORIZON 25% EQUITY – BANKABLE FEASBILITY STUDY (CONTINUED)
o Extensive metallurgical test work at leading research institutes in China demonstrating successful
concentration or run of mine ore and downstream processing to produce a 98% V2O5 flake product at
laboratory and semi-industrial scale
o Modest up-front capital costs and highly competitive operating cash costs
o Strong economics at current vanadium prices with continuing demand in the steel industry and future
demand from the emerging utility scale grid storage markets
Figure 11
Lilyvale cross section showing V2O5% depth, thickness and grade
Figure 13: Lilyvale cross section showing V2O5% depth, thickness and grade
•
For more information on the Lilyvale PFS, we refer you to the ASX announcement entitled “Richmond
Vanadium Project and IPO Update”, dated 22 March 2022 on the Company’s website.
As announced to the ASX on 24 November 2021, Horizon executed a Process Deed with its joint venture partner RVT
under which both companies agreed to work together to progress a transaction anticipated to include:
•
The restructuring of the respective project ownership interests into a dedicated incorporated vehicle holding
100% of the project (“IPO Vehicle”) with shares initially held by Horizon (25%) and the existing shareholders of
RVT (75%);
• Establishment of a high-quality Board and executive team for the IPO Vehicle;
• An in-specie distribution of a portion of Horizon’s shares in the IPO Vehicle to Horizon shareholders; and
• Application to list on the ASX through an IPO of new shares in the IPO Vehicle with a priority entitlement to
existing Horizon shareholders
As announced to the ASX on the 3 May 2022, the Company and RVT executed a Sale and Purchase Agreement and
agreed that RVT would be the dedicated IPO Vehicle. All conditions precedent has now been satisfied and the
Shareholders Agreement to govern the operation of RVT until the planned IPO has been executed.
RVT now owns 100% of the Project with shares held by Horizon (25%) and existing shareholders of RVT (75%) and has
commenced the IPO process with Joint Lead Managers Bell Potter Securities Ltd and Euroz Hartleys Ltd.
The new Board of RVT is now in place and comprises:
•
Former Western Australian MP, senior WA cabinet minister and corporate strategist Mr Brendon Grylls as
Independent Non-Executive Chair;
• Current RVT CEO and critical minerals specialist Dr Shaun Ren as Managing Director; and
• Metallurgist, mineral economist and Horizon Managing Director Mr Jon Price as Non-Executive Director.
The Company will provide further updates as appropriate in accordance with its continuous disclosure obligations
including the amount of funds to be raised under the proposed IPO, the use of funds and the record date for the in-specie
distribution for eligible Horizon shareholders.
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OPERATIONS REPORT
EXPLORATION AND EVALUATION
•
In parallel with the demerger and IPO process, work will continue progressing the Lilyvale project to Bankable
Feasibility Study (BFS) level inclusive of detailed engineering on the defined process flowsheet design, optimal
power supply, site selection options for the downstream processing plant, environmental and statutory approvals
and further discussion with potential offtake partners.
For more information on Richmond Vanadium Technology and the project, we refer you to their website at
www.richmondvanadium.com.au
NIMBUS SILVER-ZINC PROJECT– EXPLORATION AND EVALUATION
The Nimbus project lies immediately adjacent to the Boorara gold mine (Figures 2 and 5) and was placed on care and
maintenance in 2007 after producing 3.6Moz from 318kt processed at a grade of 353g/t Ag. The old milling circuit has
since been removed and the area rehabilitated.
The Project hosts a high-grade silver zinc Resource of 256kt @ 773g/t Ag and 13% Zn that has been estimated from the
global Nimbus Resource of 12.1Mt @ 52g/t Ag, 0.9% Zn and 0.2g/t Au for a total of 20Moz Ag and 104kt Zn and 78koz
Au (JORC 2012) (see Tables and Competent Persons Statement on Page 22).
Nimbus is a shallow-water and low-temperature VHMS deposit with epithermal characteristics (i.e. a hybrid bimodal felsic
deposit), which is consistent with its position near the margin of the Kalgoorlie Terrane. The current Discovery and East
pits have been subject to extensive drilling highlighting significant potential to extend mineralisation along strike and at
depth below 400m. Regional exploration has been limited to the north and south and considered highly prospective for
further precious and base metal deposits.
Extensive metallurgical test work has been completed on Nimbus ore with the Feasibility Study put on hold in 2014 due
to depressed silver prices. In light of increasing silver and zinc prices and as announced to the ASX on 11 February
2021, the Company will retain the project and engage an independent technical team to complete the DFS in 2021.
During the year, activities focussed on the technical aspects of the geology, mineralogy and concentrate options for the
deposits with the aim of generating separate silver, zinc and potentially gold concentrates for direct sale. Initial
discussions with potential offtake partners have shown significant interest in these concentrates enabling a simplified
process flow sheet to be evaluated at significantly reduced capital and operating costs.
WHITE RANGE GOLD PROJECT (DIVESTED)
The Company divested its White Range Gold Project in the Northern Territory to Red Dingo Corporation Pty Ltd. The
Company is currently attending to some clean up issues at the site prior to making application for return of environmental
bonds held by The Department of Industry, Tourism and Trade in respect of the White Range tenements.
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OPERATIONS REPORT
EXPLORATION AND EVALUATION
Horizon Minerals Limited – Summary of Gold Mineral Resources
Cut-off
grade
(g/t)
0.5
0.8
0.8
1.0
0.8
1.0
0.5
2.0
1.5
0.6
1.0
Project
Boorara OP
Kalpini
Jacques - Peyes
Teal
Crake
Cannon UG
Rose Hill OP
Rose Hill UG
Pennys Find (50%)
Gunga West
Golden Ridge
TOTAL
CONFIRMATION
Measured
Indicated
Inferred
Total Resource
Mt
1.28
Oz
Au
(g/t)
1.23 50,630
Mt
7.19
Oz
Au
(g/t)
1.27 294,140
Mt
2.56
Oz
Au
Au
(g/t)
(g/t)
1.26 103,470 11.03 1.26
Mt
Oz
448,240
1.40
2.43 108,000
0.47
2.04
31,000
1.87
2.33
139,000
0.97
2.59
81,000
0.77
1.98
49,000
1.74
2.32
130,000
1.01
1.96
63,680
0.80
2.50
64,460
1.81
2.20
128,140
1.33
1.47
63,150
0.08
1.27
3,300
1.42
1.46
0.19
4.8
28,620
0.05
2.30
3,450
0.23
4.29
66,450
32,070
0.19
2.00 12,300
0.09
2
6,100
0.29
2.00
18,400
0.33
4.5
47,100
0.18
4.80
27,800
0.51
4.60
0.09
5.71
17,500
0.03
3.74
3,500
0.13
5.22
0.71
1.6
36,440
0.48
1.50
23,430
1.19
1.56
0.47
1.83
27,920
0.05
1.71
2,800
0.52
1.82
74,900
21,000
59,870
30,720
1.47
1.33 62,930
13.78
1.75 773,650
5.48
1.77 312,210 20.73 1.72 1,148,790
The information in this report that relates to Horizon’s Mineral Resources estimates is extracted from and was originally
reported in Horizon’s ASX announcements “Intermin’s Resources Grow to over 667,000 Ounces” dated 20 March 2018,
“Rose Hill firms as quality high grade open pit and underground gold project” dated 8 December 2020, “Updated Boorara
Mineral Resource Delivers a 34% Increase In Gold Grade” dated 27 April 2021, “Penny’s Find JV Resource Update”
dated 14 July 2021, “Updated Crake Resource improves in quality” dated 7 September 2021, “Jacques Find- Peyes Farm
Mineral Resource update” dated 15 September 2021 and “Kalpini Gold Project Mineral Resource Update” dated 28
September 2021, each of which is available at www.asx.com.au. The Company confirms that it is not aware of any new
information or data that materially affects the information included in the original market announcements and that all
material assumptions and technical parameters underpinning the estimates in those announcements continue to apply
and have not materially changed. The Company confirms that the form and context of the Competent Person’s findings
in relation to those Mineral Resources estimates or Ore Reserves estimates have not been materially modified from the
original market announcements.
COMPETENT PERSONS STATEMENT
The information in this table that relates to the Penny’s Find, Golden Ridge and Gunga West Mineral Resources(1) is
based on information compiled by Messrs David O’Farrell. Mr O’Farrell is a Member of the Australasian Institute of Mining
and Metallurgy. Mr O’Farrell is a full time employee of Horizon Minerals Ltd. The information was prepared under the
JORC Code 2012. Mr O’Farrell has sufficient experience that is relevant to the style of mineralisation, type of deposit
under consideration and to the activity that they are 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 O’Farrell
consents to the inclusion in this report of the matters based on their information in the form and context in which they
appear.
The information in this table that relates to the Estimation and Reporting of Gold Mineral Resources at the Crake, Teal,
Jacques Find and Peyes Farm Deposits(2) is based on information compiled by Messrs David O’Farrell and Andrew
Hawker. Both are Members of the Australasian Institute of Mining and Metallurgy, Mr O’Farrell is a full time employee of
Horizon Minerals Ltd and Mr Hawker is an independent consultant. The information was prepared under the JORC Code
2012. Messrs O’Farrell and Hawker have sufficient experience that is relevant to the style of mineralisation, type of
deposit under consideration and to the activity that they are 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’.
Messrs O’Farrell and Hawker consent to the inclusion in this report of the matters based on their information in the form
and context in which they appear.
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OPERATIONS REPORT
EXPLORATION AND EVALUATION
COMPETENT PERSONS STATEMENT (CONTINUED)
The information in this table that relates to the Estimation and Reporting of Gold Mineral Resources at the Boorara
Deposit(3) is based upon information compiled by Mr Mark Drabble B.App.Sci.(Geology), a Competent Person who is a
current Member of the Australian Institute of Mining and Metallurgy (MAusIMM) and a Member of the Australian Institute
of Geoscientists (MAIG). Mr Drabble is a Principal Geological Consultant at Optiro Pty Ltd. and an independent consultant
to Horizon Minerals Ltd. Mr Drabble has sufficient experience relevant to the style of mineralisation and deposit type
under consideration and to the activities being undertaken 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 Drabble
consents to the inclusion in the report of matters based on his information in the form and context in which it appears.
The information in this table that relates to the Estimation and Reporting of Gold Mineral Resources at the Rose Hill
Deposit(4) is based upon information compiled by Ms Christine Shore BSc., a Competent Person who is a current Fellow
of the Australian Institute of Mining and Metallurgy (FAusIMM). Ms Shore was a Principal Geological Consultant at Entech
Pty Ltd. and an independent consultant to Horizon Minerals Ltd. Ms Shore has sufficient experience relevant to the style
of mineralisation and deposit type under consideration and to the activities being undertaken 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’. Ms Shore consents to the inclusion in the report of matters based on her information in the form and
context in which it appears. Open pit resource is defined as surface (~412m RL) to 367.5m RL, UG resource defined by
<367.5m RL.
Horizon Minerals Limited – Summary of Vanadium / Molybdenum Mineral Resources
Project
Cut-off
grade
(%)
Tonnage
(Mt)
Rothbury (Inferred)
Lilyvale (Indicated)
Lilyvale (Inferred)
Manfred (Inferred)
TOTAL
0.30
0.30
0.30
0.30
1,202
430
130
76
1,838
Grade
Metal content (Mt)
V2O5 (%) Mo (ppm) Ni (ppm)
V2O5
0.31
0.50
0.41
0.35
0.36
259
240
213
369
256
151
291
231
249
193
3.75
2.15
0.53
0.26
6.65
Mo
0.31
0.10
0.03
0.03
0.46
Ni
0.18
0.10
0.03
0.02
0.36
Horizon Minerals Limited – Summary of Silver / Zinc Mineral Resources
Nimbus All Lodes (bottom cuts 12g/t Ag, 0.5% Zn, 0.3g/t Au)
Category
Tonnes
Grade
Grade
Grade
Ounces
Ounces
Tonnes
Measured Resource
Indicated Resource
Inferred Resource
Total Resource
Mt
3.62
3.18
5.28
12.08
Ag (g/t)
Au (g/t)
Zn (%)
Ag (Moz)
Au
('000oz)
Zn ('000t)
102
48
20
52
0.09
0.21
0.27
0.20
1.2
1.0
0.5
0.9
11.9
4.9
3.4
20.2
10
21
46
77
45
30
29
104
Nimbus high grade silver zinc resource (500g/t Ag bottom cut and 2,800g/t Ag top cut)
Category
Tonnes
Grade
Grade
Ounces
Tonnes
Measured Resource
Indicated Resource
Inferred Resource
Total Resource
Mt
0
0.17
0.09
0.26
Ag (g/t)
Zn (%)
Ag (Moz)
Zn (‘000t)
0
762
797
774
0
12.8
13.0
12.8
0
4.2
2.2
6.4
0
22
11
33
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OPERATIONS REPORT
EXPLORATION AND EVALUATION
CONFIRMATION
The information is this report that relates to Horizon’s Mineral Resources estimates on the Richmond Julia Creek
vanadium project and Nimbus Silver Zinc Project is extracted from and was originally reported in Intermin’s and
MacPhersons’ ASX Announcement “Intermin and MacPhersons Agree to Merge – Creation of a New Gold Company
Horizon Minerals Ltd” dated 11 December 2018 and in MacPhersons’ ASX announcements “Quarterly Activities Report”
dated 25 October 2018, “Richmond – Julia Creek Vanadium Project Resource Update” dated 16 June 2020, “New High
Grade Nimbus Silver Core Averaging 968 g/t Ag” dated 10 May 2016, “Boorara Trial Open Pit Produced 1550 Ounces”
dated 14 November 2016 and “Nimbus Increases Resources” dated 30 April 2015, each of which is available at
www.asx.com.au. The Company confirms that it is not aware of any new information or data that materially affects the
information included in the original market announcements and that all material assumptions and technical parameters
underpinning the estimates in those announcements continue to apply and have not materially changed. The Company
confirms that the form and context of the Competent Person’s findings in relation to those Mineral Resources estimates
have not been materially modified from the original market announcements.
COMPETENT PERSONS STATEMENT
The Information in this report that relates to Vanadium Mineral Resources is based on and fairly represents information
and supporting documentation prepared by Mr Warwick Nordin, who is a Competent Person and a member of the
Australasian Institute of Geoscientists (AIG). Mr Nordin is a full-time employee of Richmond Vanadium Technology Pty
Ltd. Mr Nordin has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activities being undertaken 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 Nordin consents
to the inclusion in the report of the matters based on his information in the form and context in which it appears.
FORWARD LOOKING AND CAUTIONARY STATEMENTS
Some statements in this report regarding estimates or future events are forward looking statements. They include
indications of, and guidance on, future earnings, cash flow, costs and financial performance. Forward looking statements
include, but are not limited to, statements preceded by words such as “planned”, “expected”, “projected”, “estimated”,
“may”, “scheduled”, “intends”, “anticipates”, “believes”, “potential”, “could”, “nominal”, “conceptual” and similar
expressions. Forward looking statements, opinions and estimates included in this announcement are based on
assumptions and contingencies which are subject to change without notice, as are statements about market and industry
trends, which are based on interpretations of current market conditions. Forward looking statements are provided as a
general guide only and should not be relied on as a guarantee of future performance. Forward looking statements may
be affected by a range of variables that could cause actual results to differ from estimated results and may cause the
Company’s actual performance and financial results in future periods to materially differ from any projections of future
performance or results expressed or implied by such forward looking statements. These risks and uncertainties include
but are not limited to liabilities inherent in mine development and production, geological, mining and processing technical
problems, the inability to obtain any additional mine licenses, permits and other regulatory approvals required in
connection with mining and third party processing operations, competition for among other things, capital, acquisition of
reserves, undeveloped lands and skilled personnel, incorrect assessments of the value of acquisitions, changes in
commodity prices and exchange rate, currency and interest fluctuations, various events which could disrupt operations
and/or the transportation of mineral products, including labour stoppages and severe weather conditions, the demand for
and availability of transportation services, the ability to secure adequate financing and management’s ability to anticipate
and manage the foregoing factors and risks. There can be no assurance that forward looking statements will prove to be
correct.
Statements regarding plans with respect to the Company’s mineral properties may contain forward looking statements
in relation to future matters that can only be made where the Company has a reasonable basis for making those
statements.
This announcement has been prepared in compliance with the JORC Code (2012) and the current ASX Listing Rules.
The Company believes that it has a reasonable basis for making the forward-looking statements in the announcement,
including with respect to any production targets and financial estimates, based on the information contained in this report
and previous ASX announcements.
CORPORATE GOVERNANCE - RESERVES AND RESOURCES CALCULATIONS
Due to the nature, stage and size of the Company’s existing operations, Horizon is of the opinion 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 and for ensuring that the
appropriate internal controls are applied to such calculations. However, the Company ensures that all Mineral Reserve
and Resource calculations are prepared by competent, appropriately experienced geologists and are reviewed and
verified independently by a qualified person.
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DIRECTORS' REPORT
The Directors present their report together with the financial statements of the Group (hereafter referred to as the Group)
for the financial year ended 30 June 2022 and the auditor’s report thereon.
DIRECTORS
The following persons held office as Directors of Horizon Minerals Limited during the financial year and up to the date of
this report:
•
•
•
Ashok Parekh
Peter Bilbe
Jonathan Price
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
INFORMATION ON DIRECTORS
Ashok Parekh, Non-Executive Chairman
Appointed 14 June 2019, appointed Chairman 1 July 2020
B.Bus, AIMM, CTA, FNTAA, FTIA, FCA
Mr Ashok Parekh is a chartered accountant, of over 40 years’ experience, who owns a large accounting practice in
Kalgoorlie, which he has operated for 35 years. He was awarded the Centenary Medal in 2003 by the Governor General
of Australia and was recently awarded the Meritorious Service Award by the Institute of Chartered Accountants, the
highest award granted by the institute in Australia.
Mr Parekh has over 35 years’ experience in providing advice to mining companies and service providers to the mining
industry. He has spent many years negotiating with public listed companies and prospectors on mining deals which have
resulted in new IPOs and the commencement of new gold mining operations. He has also been involved in the
management of gold mining and milling companies in the Kalgoorlie region and has been the Managing Director of some
of these companies. He is well known in the West Australian mining industry and has a very successful background in
the ownership of numerous businesses in the Goldfields.
Directorships held in other listed companies in the past 3 years:
- MacPhersons Resources Limited (Appointed 9 September 2009 – 13 June 2019 upon delisting)
Peter Bilbe, Independent Non-Executive Director
Appointed 1 July 2016, appointed Chairman 21 November 2016, resigned Chairman 1 July 2020
B.Eng. Mining Hons, MAusIMM
Mr Bilbe is a Mining Engineer with over 40 years’ experience in the Australian and International mining industry at the
operating, corporate and business level. He has comprehensive experience in all facets of open pit and underground
mining and processing operations including exploration, feasibility studies, construction and provision of mining contract
services.
Directorships held in other listed companies in the past 3 years:
Independence Group NL (ASX: IGO) (Appointed 6 April 2009)
-
- Adriatic Metals PLC (ASX: ADT) (Appointed 16 February 2018)
Jonathan Price, Managing Director
Appointed 1 January 2016
BSc (Env Science), Grad Dip (Extractive Metallurgy), MSc (Mineral Economics), MAusIMM, MAICD
Mr Price has over 25 years’ experience in Australia and overseas across all aspects of the industry including exploration,
development, construction and mining operations in the gold and advanced minerals sectors. Jon graduated as a
metallurgist and holds a Masters in Mineral Economics from the Western Australian School of Mines. He then worked in
various gold and advanced mineral operations including general manager of the Paddington gold and St Ives gold
operations in the Western Australian goldfields.
More recently, Jon was the founding Managing Director of Phoenix Gold Ltd, acquired by Evolution Mining Ltd. During
his tenure, Jon oversaw the reconsolidation of underexplored tenure in the Western Australian goldfields and realised
significant exploration success.
Directorships held in other listed companies in the past 3 years:
- Kingwest Resources Limited (ASX: KWR) (Appointed 18 September 2019)
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DIRECTORS' REPORT
COMPANY SECRETARY
Julian Tambyrajah, Chief Financial Officer & Company Secretary
Appointed Company Secretary 3 December 2020
B.Com. (Accounting), CPA, ACIS/AGIA, MAICD
Mr Tambyrajah is a global mining finance executive, a qualified Accountant (CPA) and Chartered Company Secretary
(ACIS/AGIA) with over 25 years’ experience including 18 years at the CFO & Company Secretary level. Mr Tambyrajah
has significant experience that covers financial and techno-commercial areas such as treasury, financing, accounting,
systems, supply and logistics, business development M&A, investor relations, project evaluation, feasibility studies,
construction, and operations management for start-ups and global multi-billion-dollar organisations.
Mr Tambyrajah has held the position of Chief Financial Officer, Director and Company Secretary of several listed
(AIM/ASX/TSX) public and private equity companies, including Central Petroleum Limited (CTP), Crescent Gold Limited
(CRE), Rusina Mining NL (RML), DRD Gold Limited (DRD), Dome Resources NL (Gold producers) and held management
and accounting roles for Hills Industries, Brown & Root, Woodside and Normandy Mining. Mr Tambyrajah has extensive
experience in raising equity and debt from national and international financial markets, some of which includes raising
US$49M whilst at BMC UK, A$122m whilst at Crescent Gold and A$105m whilst at Central Petroleum.
CORPORATE INFORMATION
Horizon Minerals Limited is a company limited by shares that is incorporated and domiciled in Australia.
PRINCIPAL ACTIVITIES
The principal continuing activities during the year of the Group, constituted by Horizon Minerals Limited and the entities
it controlled during the year, consisted of exploration for and mining of gold and other mineral resources.
OPERATING RESULTS
The net loss of the Group for the year ended 30 June 2022, after providing for income tax, amounted to $28,029,383
(2021: Profit $2,447,426).
REVIEW OF OPERATIONS
Exploration Activity
Please refer to the Operations Report for detailed information on the Group’s exploration activities over the past year.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
•
On 29 July 2021, the Group agreed to grant Metal Hawk Limited (ASX: MHK) an option to acquire the nickel rights
relating to the 12 tenements adjacent to the Group’s Cannon gold project area. The option granted under the formal
agreement subsequently executed in October 2021 relates to the nickel rights over 12 prospecting and exploration
licences covering an area of approximately 61km2 and provides the following::
•
•
The issue of 1,500,000 shares in MHK to the Group on the grant of the option and a further 3,000,000 shares
in MHK on exercise of the option within the 18 month option period
If MHK exercises the option then the 3,000,000 MHK shares to be issued to the Group will be subject to
escrow for 180 days
• MHK to have a licence to explore for nickel minerals on the Tenements during the option period and must
meet annual expenditure commitments and assay all drill samples for gold
•
If MHK exercises the option it will have the exclusive right to explore for, mine, process and sell nickel and
associated minerals within a nickel sulphide system, with gold and all other mineral rights retained by the
Group
• On 19 October 2021, the Group announced the completion of the acquisition of 100% interest in the Cannon,
Glandore and Cowarna gold projects. The Group acquired the projects from Aurenne Group Holdings Pty Ltd for a
total consideration of $5 million in cash comprising of $2.5 million at settlement and $2.5 million on the earlier of 12
months from settlement or first gold production from the Cannon underground gold mine.
• On 24 November 2021, the Group announced its intention to demerge and progress an IPO for the Richmond-Julia
Creek oxide vanadium project. The Group executed a Process Deed with the joint venture partner Richmond
Vanadium Technology Pty Ltd (RVT) where both companies have agreed to work to progress a transaction to include:
•
The restructuring of the respective project ownership interests into a dedicated incorporated vehicle holding
100% of the project (IPO Vehicle) with shares initially held by the Group (25%) and the existing shareholders
of RVT (75%)
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DIRECTORS' REPORT
SIGNIFICANT CHANGES IN STATE OF AFFAIRS (continued)
• Establishment of a high-quality Board and executive team for the IPO Vehicle
• An in-specie distribution of a portion of the Group’s shares in the IPO Vehicle to the Group’s shareholders
• An IPO of new shares in the IPO Vehicle and application to list on the ASX with priority to invest in the IPO
given existing Group shareholders
• On 20 December 2021, the Company announced that it had reached agreement with Labyrinth Resources Limited
(ASX: LRL, formerly Orminex Ltd) to acquire the remaining 50% of the high-grade Penny’s Find gold project located
50km northeast of Kalgoorlie for consideration package of $500,000 in cash, $250,000 in fully paid shares in the
Company at settlement at a deemed price based on the 10-day VWAP and escrowed for 6 months as well as a net
smelter royalty of 5%, payable on the first 50,000 ounces produced from M27/156 and thereafter a 2.5% net smelter
royalty. The Company is to assume further deferred payment obligations including:
• Mining start payment of $200,000
•
First gold payment of $200,000
• Contingent non-commencement of mining payment of $100,000
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has been financially positive for the Group
up to 30 June 2022, it is not practicable to estimate the potential impact, positive or negative, after the reporting date.
The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other
countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus
that may be provided.
The health and wellbeing of all Horizon employees remain a key focus in response to the ongoing COVID-19 pandemic.
The work practices and measures implemented to mitigate COVID-19 related risks have so far proven successful with
no known COVID-19 cases across our workforce and minimal disruption to our operations to date.
On 1 July 2022, the Company announced a prospectus offer of Share Purchase Plan (SPP) shares and options to eligible
shareholders (SPP Offer) as well as an offer of placement options to placement subscribers (Placement Options Offer).
The SPP to raise $2,000,000 follows the Company’s institutional placement announced on 24 June 2022 which raised
$4,000,000 before costs by issuing placement shares at 9 cents per share. For every one share subscribed for at 9
cents per share by an eligible participant (SPP Share) as part of a share purchase plan offer under the SPP, the eligible
participant will be entitled to one free SPP option under the Prospectus. For every one share subscribed for at 9 cents
per share by a subscriber (Placement Share) in the placement announced 24 June 2022 (Placement), the subscriber will
be entitled to one free Placement option under the Prospectus with an exercise price of 11 cents and expiry dated of 30
June 2025. The Company raised $539,591 from a total of 82 applications. Pursuant to the Prospectus disclosure
announced on 1 July 2022, the Company has reserved the right to issue the SPP shortfall to non-related parties at the
Directors’ discretion and within the next 3 months.
On 9 August 2022, the Company announced that, in relation to its 25% equity interest in Richmond Vanadium Technology
Pty Ltd (RVT), a strategic partnership has been established via a Binding Term Sheet signed with Ultra Power Systems
Pty Ltd a local Australian manufacturer of Vanadium Redox Flow Batteries.
On 11 August 2022, the Company advised it had reached agreement with Greenstone Resources Ltd (ASX: GSR) to
divest the Phoenix and Kangaroo Hill gold projects near Coolgardie in the Western Australian goldfields. The divestment
comprises two mining leases and two prospecting licences making up the projects. Under the Agreement, GSR will pay
$300,000 in cash and shares; $150,000 in cash on completion and $150,000 in GSR shares at an issue price equivalent
to the VWAP calculated over the 15 trading days prior to the Completion Date and subject to a voluntary escrow period
of 6 months. Completion is expected in the September quarter 2022.
On 30 August 2022, the Company announced that the acquisition of the remaining 50% interest in the Penny’s Find gold
project which was announced on 20 December 2021 had been completed following resolution of legacy access and
compensation agreements needing to be brought up to date. All conditions precent have now been completed, including
payment to the Company of cash consideration of $527k and 3M fully paid ordinary shares (subject to 6 months escrow).
There are no other matters or circumstances that have arisen since 30 June 2022 that have or may significantly affect
the operations, results, or state of affairs of the Group in future financial periods.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
In the opinion of the Directors, it would prejudice the interests of the Group to provide additional information, beyond that
reported in this Annual Report, relating to likely developments in the operations of the Group and the expected results of
those operations in financial years subsequent to 30 June 2022.
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DIRECTORS' REPORT
DIVIDENDS PAID OR RECOMMENDED
Since the end of the previous financial year, no amount has been paid or declared by way of dividend. The Directors do
not recommend that any dividend be paid.
MEETINGS OF DIRECTORS
The number of directors’ meetings (including meetings of committees of Directors) held and attended by each of the
Directors of the Group during the year were:
Full Meetings of Directors
Remuneration Committee
Directors
Eligible To
Participate
Number
Attended
Eligible To
Participate
Number
Attended
Ashok Parekh
Peter Bilbe
Jonathan Price
DIRECTORS INTERESTS
5
5
5
5
5
5
1
1
1
0
0
0
As at the date of this report interests of the Directors in the shares of the Company were:
Ordinary Shares
Total Holdings
Directors
Direct Interest
Indirect Interest
Shares
Unlisted Options
Ashok Parekh
Peter Bilbe
Jonathan Price
8,908,873
-
4,800,000
14,155,480
1,980,000
-
23,064,353
1,980,000
4,800,000
-
-
-
SHARES UNDER OPTION
Unissued ordinary shares of Horizon Minerals Limited under option as at the date of this report are as follows:
Nature
Expiry Date
Unlisted Options
30 September 2022
Unlisted Options
30 September 2022
Exercise Price of
Options
12 cents
16 cents
Number under
Option
12,000,000
12,000,000
Option holders do not have any rights to participate in any issues of shares or other interests in the Company or any
other entity.
There have been no unissued shares or interests under option of any controlled entity within the Group during or since
the end of the reporting period.
No person entitled to exercise the option had or has any right by virtue of the option to participate in any share issue of
any other body corporate.
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DIRECTORS' REPORT
AUDITED REMUNERATION REPORT
The information provided in this remuneration report has been audited as required by section 308(3C) of the Corporations
Act 2001.
REMUNERATION GOVERNANCE
The role of the Remuneration Committee has been assumed by the full Board. The Board’s policy for determining the
nature and amount of remuneration for board members and senior Executives of the Company is as follows:
The objective of the Company’s policy is to provide remuneration that is competitive and appropriate. The Board ensures
that executive reward satisfies the following key criteria for good reward governance practices:
(i)
(ii)
(iii)
(iv)
competitiveness and reasonableness;
acceptability to shareholders;
transparency; and
capital management.
(a) Details of Remuneration
The remuneration of the key management personnel of the Group are set out in the following tables:
The key management personnel of the Consolidated Entity consisted of the following directors of Horizon Minerals
Limited:
• Ashok Parekh – Non-Executive Chairman
• Peter Bilbe – Non-Executive Director
•
Jonathan Price – Managing Director
And the following persons:
Julian Tambyrajah – Chief Financial Officer & Company Secretary
•
• Grant Haywood – Chief Operating Officer
Short Term Benefits
Long Term Benefits
Salary &
Wages
$
Directors’
Fee
$
Share
based
payments
$
Superannuation
$
Total
$
Performance
Related
%
-
-
-
-
72,000
27,998
78,375
29,537
54,000
15,999
62,500
16,878
502,246
423,758
-
-
-
-
-
-
79,993
84,392
32,927
35,538
32,927
35,538
7,200
7,446
5,400
5,938
27,500
21,200
27,500
14,583
27,500
21,734
107,198
115,358
75,399
85,316
609,739
529,350
395,927
227,163
402,912
398,226
26.12
25.60
21.22
19.78
13.12
15.94
8.32
15.64
8.17
8.92
Name
Ashok Parekh
Year
2022
(Non-Executive Chairman)
2021
Peter Bilbe
(Non-Executive Director)
Jonathan Price
(Managing Director)
Other KMP
2022
2021
2022
2021
Julian Tambyrajah
2022
335,500
(Chief Financial Officer &
Company Secretary)
Grant Haywood
(Chief Operating Officer)
2021
177,042
2022
2021
342,485
340,954
Total
Total
2022
1,180,231
126,000
189,844
95,100
1,591,175
2021
941,754
140,875
201,883
70,901
1,355,413
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DIRECTORS' REPORT
(a)
Details of Remuneration (continued)
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Fixed Remuneration
At risk - STI
At risk – LTI
Name
Ashok Parekh
(Non-Executive Chairman)
2022
74%
2021
74%
Peter Bilbe
79%
80%
(Non-Executive Director)
Jonathan Price
87%
84%
2022
0%
0%
0%
(Managing Director)
Other KMP
Julian Tambyrajah
92%
84%
0%
(Chief Financial Officer &
Company Secretary)
Grant Haywood
92%
91%
0%
(Chief Operating Officer)
2021
0%
0%
0%
0%
0%
2022
26%
2021
26%
21%
20%
13%
16%
8%
8%
16%
9%
The Company has no formal policy regarding bonus remuneration. The Directors may reward executives with bonuses
at their discretion.
The Company has no formal policy regarding the provision of Directors’ remuneration. Directors’ fees in total are
determined by the shareholders in a general meeting.
Shareholders have approved Directors’ Fees in total up to $250,000 per annum.
Directors that are not on a salary may be paid consulting fees for specialist services beyond normal duties at commercial
rates calculated according to the amount of time spent on Company business. In the year ended 30 June 2022, the
directors have received share-based compensation for services as directors of the Company. Full details are included
below.
The share price of the Company has fluctuated with the markets and has also been influenced by the Company‘s
investments in other ASX listed companies. Over the past five years the directors’ fees have relatively remained static
and have not been influenced by the fluctuating share price.
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DIRECTORS' REPORT
(a)
Details of Remuneration (continued)
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements.
Details of these agreements are as follows:
Details
Name
Title
Service Terms
Ashok Parekh
Non-Executive Chairman
Agreement Commenced
14 June 2019
Terms of Agreement
No formal contract
Details
Name
Title
Mr Parekh was engaged as a Non-Executive Director by resolution of
the board and was later re-elected at the annual general meeting. Mr
Parekh is remunerated with Directors Fees of $72,000 per annum plus
superannuation.
Peter Bilbe
Independent Non-Executive Director
Agreement Commenced
1 July 2016
Terms of Agreement
Continues subject to re-election at AGM
Details
Name
Title
Mr Bilbe was engaged as a Non-Executive Director by resolution of the
board and was later re-elected at the annual general meeting. Mr Bilbe
is remunerated with Directors Fees of $54,000 per annum plus
superannuation.
Jonathan Price
Managing Director
Agreement Commenced
1 January 2016
Term of Agreement
Continuous
Details
Mr Price is on a base salary of $395,480 plus superannuation, the
excess superannuation over the cap was added back to the base. Mr
Price is also entitled to a fully maintained vehicle for business use
which is on a novated lease is valued at $67,520 per annum.
Mr Price may terminate the contract by giving three (3) months’ notice
or at the Company’s discretion salary payment in lieu of notice.
Mr Price is entitled to six (6) months termination/break fee payment if
the Company terminates for any other reason than serious misconduct.
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DIRECTORS' REPORT
a) Details of Remuneration (continued)
Service agreements (continued)
Name
Title
Julian Tambyrajah
Chief Financial Officer & Company Secretary
Agreement Commenced
1 December 2020
Term of Agreement
Continuous
Details
Mr Tambyrajah is on a base salary of $303,500 plus superannuation,
the excess superannuation over the cap was added back to the base.
Mr Tambyrajah has 1,000,000 Performance Rights issued with various
share price hurdles and expiry dates (see the Remuneration Report
section titled Interest in Shares of the Company).
Mr Tambyrajah may terminate the contract by giving three (3) months’
notice or at the Company’s discretion salary payment in lieu of notice.
Mr Tambyrajah is entitled to six (6) months termination/break fee
payment if the Company terminates for any other reason than serious
misconduct.
Name
Title
Grant Haywood
Chief Operating Officer
Agreement Commenced
1 October 2016
Term of Agreement
Continuous
Details
Mr Haywood is on a base salary of $336,350 plus superannuation, the
excess superannuation over the cap was added back to the base.
Mr Haywood has 1,000,000 Performance Rights issued with various
share price hurdles and expiry dates (see the Remuneration Report
section titled Interest in Shares of the Company).
Mr Haywood may terminate the contract by giving three (3) months’
notice or at the Company’s discretion salary payment in lieu of notice.
Mr Haywood is entitled to six (6) months termination/break fee payment
if the Company terminates for any other reason than serious
misconduct.
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DIRECTORS' REPORT
(b)
Interests in the Shares of the Company
Shares
The number of shares in the Company held during the financial year by key management personnel of Horizon Minerals
Limited, including their personally related parties, is set out below:
2022
Balance at the
start of the
year
Shares
purchased
Shares sold
Performance
Rights
Vested
Exercise of
Options
Balance held at
resignation
Ashok Parekh
23,064,353
Peter Bilbe
1,980,000
Jonathan Price
4,500,000
Other KMP
Julian
Tambyrajah
-
Grant Haywood
2,350,000
TOTAL
31,894,353
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2021
Balance at the
start of the
year
Shares
purchased
Shares sold
Performance
Rights
Vested
Exercise of
Options
Balance held at
resignation
Ashok Parekh
23,064,353
Peter Bilbe
1,980,000
Jonathan Price
4,500,000
Other KMP
Julian
Tambyrajah
-
Grant Haywood
1,312,500
1,037,500
TOTAL
30,856,853
1,037,500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Balance at the
end of the
year
23,064,353
1,980,000
4,500,000
-
2,350,000
31,894,353
Balance at the
end of the
year
23,064,353
1,980,000
4,500,000
-
2,350,000
31,894,353
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DIRECTORS' REPORT
(c)
Share-Based Compensation
(i)
Performance Rights Issued November 2017
In the year ended 30 June 2018, the Company provided benefits to employees (including directors) of the Company in
the form of share-based payment transactions, whereby performance rights convertible to ordinary shares were granted
at nil consideration as an incentive to improve Director and shareholder goal congruence. See Note 24 for details.
Details of performance rights over ordinary shares in the Company provided as remuneration to the Directors’ of Horizon
Minerals Limited are set out below. When vesting conditions are met, each right is convertible into one ordinary share of
Horizon Minerals Limited.
Year ended 30 June 2022
Balance at beginning of
year unvested
Granted
Lapsed/
cancelled
Balance at end of year unvested
Directors
Value to be
expensed*
$
No.
Value to be
expensed*
$
No.
No.
No.
Value
expensed
in 2021/22
$
Value to be
expensed*
$
Ashok Parekh
1,050,000
47,533
Peter Bilbe
600,000
27,162
Jonathan Price
3,000,000
135,808
Other KMP
Julian Tambyrajah
1,500,000
57,012
Grant Haywood
1,500,000
57,012
TOTAL
7,650,000
324,527
-
-
-
-
-
-
-
-
-
-
-
-
(350,000)
700,000
27,998
(200,000)
400,000
15,999
(1,000,000)
2,000,000
79,993
19,535
11,163
55,815
(500,000)
1,000,000
32,927
24,085
(500,000)
1,000,000
32,927
,24,085
(2,550,000)
5,100,000
189,844
134,683
Year ended 30 June 2021
Balance at beginning of
year unvested
Granted
Lapsed/
cancelled
Balance at end of year unvested
Directors
Value to be
expensed*
$
No.
No.
Value to be
expensed*
$
No.
No.
Value
expensed
in 2020/21
$
Value to be
expensed*
$
Ashok Parekh
1,050,000
77,070
-
1,050,000
29,537
47,533
Peter Bilbe
400,000
4,179
600,000
44,040
400,000
600,000
16,878
27,162
Jonathan Price
1,000,000
10,446
3,000,000
220,200
1,000,000
3,000,000
84,392
135,808
Other KMP
Julian Tambyrajah
-
-
1,500,000
92,550
-
1,500,000
35,538
Grant Haywood
500,000
5,224
1,500,000
92,550
500,000
1,500,000
35,538
57,012
57,012
TOTAL
1,900,000
19,849
7,650,000
526,410
1,900,000
7,650,000
201,883
324,527
* Maximum value to be expensed in future periods if all vesting conditions are met.
The performance rights were issued in classes with varying performance and vesting conditions (refer Note 24). Details
of the number of rights issued per class are as follows:
Directors
Expired
Class H
Class I
Class J
Total
No.
No.
No.
No.
Ashok Parekh
Peter Bilbe
Jonathan Price
Other KMP
Julian Tambyrajah
Grant Haywood
TOTAL
-
-
-
-
-
-
350,000
350,000
700,000
200,000
200,000
400,000
1,000,000
1,000,000
2,000,000
500,000
500,000
1,000,000
500,000
500,000
1,000,000
2,550,000
2,550,000
5,100,000
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 3 4
DIRECTORS' REPORT
Performance Rights
Further details on the performance and valuations attaching to the performance rights are included in Note 24a to the
Financial Statements.
The fair value of the rights was determined using a Hoadley’s Barrier 1 model. A total amount of $296,135 is included in
the Statement of Financial Performance and Statement of Changes in Equity for the year ended 30 June 2022 (2021 -
$219,216), of which $189,844 (2021 - $201,883) is attributable to KMP.
The assessed fair value at grant date of performance rights granted to the individuals is allocated equally over the period
from grant date to vesting date, and the amount is included in the remuneration tables above. Fair values at grant date
are independently determined using a Hoadley’s Barrier 1 model that takes into account the vesting condition of the
rights, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the
expected dividend yield and the risk-free interest rate for the term of the rights.
(ii)
Options
During the year ended 30 June 2022, there were no options exercised by directors.
(e)
Other Transactions with Key Management Personnel
There were no other transactions with Key Management Personnel during the year.
This is the end of the Audited Remuneration Report.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 3 5
DIRECTORS' REPORT
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
During the financial year, the Group maintained an insurance policy which indemnifies the Directors and Officers of
Horizon Minerals Limited in respect of any liability incurred in connection with the performance of their duties as Directors
or Officers of the Group. The Group's insurers have prohibited disclosure of the amount of the premium payable and the
level of indemnification under the insurance contract.
NON-AUDIT SERVICES
The Directors are satisfied that the provision of non-audit services, during the year, by the auditor or a related practice of
the auditor is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001.
No non-audit services have been provided by the Company’s auditors in year ended 30 June 2022. Remuneration paid
to the Company’s auditors is detailed in Note 21 of this report.
AUDITOR’S INDEPENDENCE DECLARATION
In accordance with section 307C of the Corporations Act 2001, the Directors have obtained a Declaration of
Independence from PKF Perth, the Group’s auditor, as presented on page 35 of this Annual Report.
ENVIRONMENTAL REGULATION
The Group’s exploration and mining operations are subject to environment regulation under the laws of the
Commonwealth and the States. The Company holds exploration/mining tenements in Western Australia, Northern
Territory and Queensland and thus is subject to the Mining Acts of these states, each with specific conditions relating to
environmental management. In some instances, bonds are held by the Company’s bank in favour of the Minister for
Mines to be released to the Company when the Minister is satisfied that conditions imposed on tenement licences have
been met. In some jurisdictions Cash Bonds must be lodged with the relevant Department until conditions are fulfilled.
Bonds currently in place in respect of the Company’s tenement holdings are tabulated below.
Tenement Number
Tenement Name
MLs150, 151
White Range
Bond Held $
257,927*
*Pursuant to the White Range Mining Tenement Sale Agreement dated 18 January 2013 the Purchaser Red Dingo
Corporation Pty Ltd is required to replace the Security Bond allowing refund of the current $257,927 to Horizon Minerals
Limited.
The Directors advise that during the year ended 30 June 2022, no claim has been made by any competent authority that
any environmental issues, no condition of license or notice of intent has been breached, and no claim has been made
for increase of bond.
The Directors have considered compliance with the National Greenhouse and Energy Reporting Act 2007 which requires
entities to report annual greenhouse gas emissions and energy use. For the measurement period 1 July 2021 to 30 June
2022 the directors have assessed that there are no current reporting requirements, but may be required to do so in the
future.
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of Court to bring proceedings on behalf of the Group or intervene in any proceedings to
which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those
proceedings.
The Group was not a party to any such proceedings during the year.
This report is made in accordance with a resolution of directors, and signed for on behalf of the board by:
Jon Price
Managing Director
Perth, WA
28 September 2022
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 3 6
PKF Perth
AUDITOR’S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF HORIZON MINERALS LIMITED
In relation to our audit of the financial report of Horizon Minerals Limited for the year ended 30 June 2022, 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
SIMON FERMANIS
PARTNER
28 SEPTEMBER 2022
WEST PERTH,
WESTERN AUSTRALIA
Level 4, 35 Havelock Street, West Perth, WA 6005
PO Box 609, West Perth, WA 6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or
inactions of any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
3 7
DIRECTORS’ DECLARATION
The Directors of the Company declare that, in the opinion of the Directors:
1.
The financial statements, comprising the consolidated statement of comprehensive income, consolidated
statement of financial position, consolidated statement of changes in equity, consolidated statement of cash flows
and accompanying notes, set out on pages 41 to 70 are in accordance with the Corporations Act 2001 including:
(a)
(b)
complying with Accounting Standards and the Corporations Regulations 2001 and other mandatory
professional reporting requirements;
giving a true and fair view of the financial position as at 30 June 2022 and of the performance for the year
ended on that date of the Group; and
2.
3.
4.
The Company has included in the notes to the financial statements an explicit and unreserved Statement of
Compliance with International Financial Reporting Standards.
The Directors have been given the declaration by the Managing Director and the Chief Financial Officer required
by Section 295A.
In the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts
as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the
Directors by:
Jon Price
Managing Director
Perth, WA
28 September 2022
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 3 8
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
Continuing Operations
Gold sales
Gold royalty
Interest income
Initial recognition of investment in association
Other income
Total revenue from Continuing Operations
Cost of sales
Exploration and evaluation expenditure
Depreciation expenses
Net change in fair value of financial assets at fair value through profit or
loss
Employee benefits expense
Share based payments
Building and occupancy costs
Loss on sale of property, plant & equipment
Consultancy and professional fees
Impairment provision
Interest expenses and finance charges
Impairment of receivables
Note
2022
$
2021
$
3,321,121
16,756,817
-
179,250
8,954
50,964
6,328,245
-
3,367,952
6,317,815
13,026,272
23,304,846
3
31
4
5
(2,062,288)
(12,901,401)
(1,776,781)
(313,470)
(331,347)
(169,257)
10
(1,846,000)
(2,255,142)
(2,043,609)
(1,107,774)
24
5
(296,135)
(219,126)
(93,011)
(112,927)
-
(38,735)
(508,039)
(337,930)
13a
(31,017,868)
(1,898,283)
(44,176)
(363,836)
-
(882)
Share of losses of associates accounted for using the equity method
31
(116,897)
Other expenses
(919,504)
(1,089,698)
Profit/(Loss) from continuing operations before income tax
(28,029,383)
2,496,384
Income tax (expense)/benefit
Profit/(Loss) for the year
Other comprehensive income
7
-
(48,956)
(28,029,383)
2,447,429
Revaluation reserves reclassified to the profit & loss
19b
Other comprehensive income for the year, net of tax
Profit/(Loss) for the year and total comprehensive income
attributable to owners of Horizon Minerals Limited
-
-
198,976
198,976
(28,029,383)
2,646,405
Basic earnings/(loss) per share
Diluted earnings/(loss) per share
2022
2021
20
20
(4.93) dollars
0.45 cents
(4.93) dollars
0.45 cents
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction
with the accompanying notes.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 3 9
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
Current assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-current assets
Financial assets at fair value through profit or loss
Other assets
Property, plant and equipment
Exploration and evaluation expenditure
Right of use assets
Investments accounted for using the equity method
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Lease liability
Employee entitlements
Total current liabilities
Non-current liabilities
Lease liability
Rehabilitation provisions
Employee entitlements
Total non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Accumulated Losses
Total equity
Note
2022
$
2021
$
8
9
5,406,635
11,315,965
1,264,542
1,105,529
6,671,177
12,421,494
10
11
12
2,328,475
4,236,200
257,927
257,927
427,808
478,383
13a/b
29,377,548
48,931,342
14
31
79,024
126,438
7,336,127
-
39,806,909
54,030,290
46,478,086
66,451,784
15
14
14
17
4,466,961
482,630
50,686
47,741
346,173
375,203
4,863,820
905,574
35,516
86,202
1,454,400
1,389,664
124,350
-
1,614,266
1,475,866
6,478,086
2,381,440
40,000,000
64,070,344
18a
19a
70,089,303
66,426,399
835,750
747,003
19b
(30,925,053)
(3,103,058)
40,000,000
64,070,344
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 4 0
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
Group
Contributed
Equity
Asset
Revaluation
Reserve
Share based
payment
Reserve
Accumulated
Losses
Total Equity
$
$
$
$
$
Balance at 1 July 2020
51,439,580
144,976
1,672,354
(6,839,940) 46,416,970
Shares issued during the year
16,100,000
Performance rights vesting
Share based payments reclassified to
accumulated losses
-
-
Shares issue costs
(1,113,181)
Options issued during the year
Other comprehensive income
Total comprehensive profit/(loss) for the year
-
-
-
Balance at 30 June 2021
66,426,399
Balance at 1 July 2021
Shares issued during the year
Performance rights vesting
Share based payments reclassified to
accumulated losses
66,426,399
4,000,000
-
-
Shares issue costs
(337,096)
Options issued during the year
Total comprehensive profit/(loss) for the year
-
-
Balance at 30 June 2022
70,089,303
-
-
-
-
-
-
219,126
-
-
16,100,000
219,126
(1,090,477)
1,090,477
-
-
-
-
-
(1,113,181)
-
-
(144,976)
(54,000)
198,976
-
-
-
-
-
-
-
-
-
-
-
2,447,429
2,447,429
747,003
(3,103,058) 64,070,344
747,003
(3,103,058) 64,070,344
-
296,135
-
-
4,000,000
296,135
(207,388)
207,388
-
-
-
-
-
-
(337,096)
-
(28,029,383) (28,029,383)
835,750 (30,925,053) 40,000,000
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 4 1
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
Cash flows from operating activities
ATO cash flow boost
Receipts from customers
Payments to suppliers and employees
Interest received
Payments for exploration and evaluation expenditure
Payments for trial mine production costs
Proceeds for trial mine production sales
Income tax expense
Note
2022
$
2021
$
-
103,435
269,955
21,197,876
(2,152,809) (14,936,774)
8,942
50,987
(1,776,781)
(313,470)
(2,062,288)
3,321,121
-
-
-
(48,956)
Net cash inflow/(outflow) from operating activities
23a
(2,391,860)
6,053,098
Cash flows from investing activities
Payments for property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for purchase of tenements
Proceeds from sale of tenements
(282,528)
(7,260)
5,000
-
(2,500,000)
(4,574,365)
475,000
3,520,000
Payments for capitalised exploration and evaluation expenditure
(7,549,115)
(8,562,234)
Payments for mine production costs
Payments for purchase of investments
Proceeds from sale of investments
Net cash inflow/(outflow) from investing activities
Cash flows from financing activities
Repayment of borrowings
Proceeds from issues of shares
Share issue costs
Payments for lease liability
Net cash (outflow)/inflow from financing activities
Net increase/(decrease) in cash and cash equivalents
-
288,896
(754,065)
(1,625,000)
3,473,075
-
(7,132,633) (10,959,963)
-
(4,609,315)
4,000,000
16,100,000
(337,096)
(1,113,181)
(47,741)
(50,209)
3,615,163
10,327,295
(5,909,330)
5,420,430
Cash and cash equivalents at the beginning of the financial year
11,315,965
5,895,535
Cash and cash equivalents at the end of the financial year
8
5,406,635
11,315,965
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 4 2
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
This financial report of Horizon Minerals Limited (‘the Company’) for the year ended 30 June 2022 comprises the
Company and its subsidiaries (collectively referred to as ‘the Consolidated Entity or the Group’). Horizon Minerals
Limited is a company limited by shares incorporated in Australia whose shares are publicly traded on the
Australian Securities Exchange. The financial report was authorised for issue in accordance with a resolution of
Directors dated 28 September 2022.
The following is a summary of the material accounting policies adopted by the Group in the preparation of the
financial report.
1a
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Australian
Accounting Interpretations and the Corporations Act 2001. The functional and presentation currency of
Horizon Minerals Limited is in Australian Dollars.
Compliance with IFRSs
The financial statements of Horizon Minerals Limited also comply with International Financial Reporting
Standards (IFRSs) as issued by the International Accounting Standards Board (IASB).
New Accounting Standards and Interpretations
In the year ended 30 June 2022, the Company has reviewed and adopted all of the new and revised
Standards and Interpretations issued by the AASB that are relevant to its operations and effective for
annual reporting periods beginning on or after 1 July 2021.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are
not yet mandatory, have not been early adopted by the company for the annual reporting period ended 30
June 2022.
The Company has also reviewed all new Standards and Interpretations that have been issued but are not
yet effective for the year ended 30 June 2022. As a result of this review the Directors have determined that
there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its
business and, therefore, no change is necessary to Company accounting policies.
Historical Cost Convention
These financial statements have been prepared under the historical cost convention, as modified by the
revaluation of available-for-sale financial assets.
Critical Accounting Estimates
The preparation of financial statements requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying the Group’s accounting policies.
The areas involving a higher degree of judgement or complexity, or areas where assumptions and
estimates are significant to the financial statements are disclosed in Note 2.
Going concern
The financial statements have been prepared on the basis of going concern which contemplates continuity
of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course
of business. As disclosed in the financial statements, the Company incurred a loss of $28,029,383 (30
June 2021: profit of $ 2,447,429) and had cash outflows from operating activities of 2,391,860 for the year
ended 30 June 2022 (30 June 2021: inflows of $ 6,053,098). As at that date, the Company had net current
assets of $ 1,807,357 (30 June 2020: net current assets of $11,515,920) and continues to incur
expenditure on its exploration tenements drawing on its cash balances. As at 30 June 2022 the Group had
$5,406,635 (30 June 2021: $11,315,965) in cash and cash equivalents.
The ability of the Company and the Group to continue to pay its debts as and when they fall due is
dependent upon the Company successfully raising additional share capital and ultimately developing its
mineral properties.
The accounts have been prepared on the basis that the Company can meet its commitments as and when
they fall due and can therefore continue normal business activities, and the realisation of assets and
liabilities in the ordinary course of business. The Directors believe that they will continue to be successful
in securing additional funds through equity issues as and when the need to raise working capital arises.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 4 3
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1b
Principles of consolidation
(i)
Subsidiaries
The consolidated financial statements comprise the financial statements of Horizon Minerals
Limited and its controlled entities, Black Mountain Gold Ltd and MacPhersons Resources Limited.
MacPhersons Resources Limited was acquired on 14 June 2019 pursuant to a Scheme of
Arrangement including its subsidiaries (refer Note 27). As at 30 June 2022, Horizon Minerals
Limited and its subsidiaries together are referred to in this financial report as the Consolidated Entity
or the Group.
Control exists where the Company has the capacity to dominate the decision-making in relation to
the financial and operating policies of another entity so that the other entity operates with the
Company to achieve the objectives of the Company. All inter-company balances and transactions
between entities in the Group, including any unrealised profits and losses have been eliminated on
consolidation.
Where control of an entity is obtained during a financial year, its results are included in the
consolidated statement of comprehensive income from the date on which control commences. They
are de-consolidated from the date that control ceases.
The acquisition of subsidiaries is accounted for using the equity method of accounting. A change
in ownership interest, without the loss of control, is accounted for as an equity transaction, where
the difference between the consideration transferred and the book value of the share of the non-
controlling interest acquired is recognised directly in equity attributable to the parent. Details of the
non-controlling interests are set out in Note 31.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the
consolidated statement of comprehensive income, consolidated statement of financial position and
statement of changes in equity. Losses incurred by the consolidated entity are attributed to the
non-controlling interest in full, even if that results in a deficit balance.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including
goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative
translation differences recognised in equity. The consolidated entity recognises the fair value of
the consideration received and the fair value of any investment retained together with any gain or
loss in profit or loss.
(ii)
Joint ventures
Joint ventures entered into are not separate legal entities but rather are contractual arrangements
between the participants for the sharing of costs and output and do not in themselves generate
revenue and profit.
1c
Income tax
The income tax expense or revenue for the period is the tax payable on the current period’s taxable income
based on the national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences between the tax bases of assets and liabilities and their
carrying amounts in the financial statements, and to unused tax losses.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to
apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted
or substantively enacted for each jurisdiction. The relevant tax rates are applied to the cumulative amounts
of deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception
is made for certain temporary differences arising from the initial recognition of an asset or a liability. No
deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a
transaction, other than a business combination, that at the time of the transaction did not affect either
accounting profit or taxable profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 4 4
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1c
Income tax
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying
amount and tax bases of investments in controlled entities where the parent is able to control the timing of
the reversal of the temporary differences and it is probable that the differences will not reverse in the
foreseeable future.
Current and deferred tax balances attributable to amounts recognised directly in other comprehensive
income/equity are also recognised directly in other comprehensive income/equity.
The charge for current income tax expense is based on the profit for the year adjusted for any non-
assessable or disallowed items. It is calculated using the tax rates that have been enacted or are
substantially enacted by the reporting date.
The amount of benefits brought to account or which may be realised in the future is based on the
assumption that no adverse change will occur in income taxation legislation and the anticipation that the
economic entity will derive sufficient future assessable income to enable the benefit to be realised and
comply with the conditions of deductibility imposed by the law.
The Group is consolidated for income tax purposes effective 1 July 2016.
1d
Revenue recognition
The Group recognises revenue as follows:
(i)
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity
is expected to be entitled in exchange for transferring goods or services to a customer. For each
contract with a customer, the consolidated entity: identifies the contract with a customer; identifies
the performance obligations in the contract; determines the transaction price which takes into
account estimates of variable consideration and the time value of money; allocates the transaction
price to the separate performance obligations on the basis of the relative stand-alone selling price
of each distinct good or service to be delivered; and recognises revenue when or as each
performance obligation is satisfied in a manner that depicts the transfer to the customer of the
goods or services promised
(ii)
Sale of gold
Revenue from the sale of goods is measured at the fair value of the consideration received or
receivable. Revenue is recognised at the point in time when the customer obtains control of the
goods, which is generally at the time of delivery.
Interest income
(ii)
Interest revenue is recognised on a proportional basis taking into account the interest rates
applicable to the financial assets.
(iii) Other services
Other debtors are recognised at the amount receivable and are due for settlement within 30 days
from the end of the month in which services were provided.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 4 5
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1e
Mineral prospects and exploration expenditure thereon
The Group’s policy with respect to exploration expenditure is to write off all costs unless the directors and
management are of the view that there is a reasonable prospect that the costs may be recovered in future
income years. Costs that may reasonably be expected to be recovered are capitalised to the statement of
financial position as a non-current asset and accumulated separately for each area of interest. Such
expenditure comprises net direct cash and where applicable, an apportionment of related overhead
expenditure.
Each area of interest is limited to a size related to a known or probably mineral resource capable of
supporting a mining operation. Expenditure is not carried forward in respect of any area of interest unless
the Group’s right to tenure to that area of interest is current.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to
carry forward costs in relation to that area of interest. At 30 June 2022, the Directors considered that the
carrying value of the mineral tenement interests of the Group was as shown in the accounts and did not
need adjusting.
Exploration and evaluation assets are transferred to Development Phase assets once technical feasibility
and commercial viability of an area of interest is demonstrable. Exploration and evaluation assets are
tested for impairment, and any impairment loss is recognised, prior to being reclassified.
1f
Mine properties and mining assets
Mine properties represents the acquisition cost and/or accumulated exploration, evaluation and
development expenditure in respect of areas of interest in which mining has commenced.
Mine development costs are deferred until commercial production commences. When commercial
production is achieved mine development is transferred to mine properties, at which time it is amortised
on a unit of production basis based on ounces mined over the total estimated resources related to this
area of interest.
Significant factors considered in determining the technical feasibility and commercial viability of the project
are the completion of a feasibility study, the existence of sufficient resources to proceed with development
and approval by the board of Directors to proceed with development of the project.
1g
Deferred stripping costs
Stripping is the process of removing overburden and waste materials from surface mining operations to
access the ore. Stripping costs are capitalised during the development of a mine and are subsequently
amortised over the life of mine on a units of production basis, where the unit of account is ounces of gold
sold.
1h
Financial assets at fair value through profit or loss
Financial assets other than equity instruments that do not meet the above amortised cost criteria are
measured at fair value through profit or loss. This includes financial assets that are held for trading and
investments that the Group manages based on their fair value in accordance with the Group’s documented
risk management and/or investment strategy.
Equity instruments are measured at fair value through profit or loss unless the Group irrevocably elects at
initial recognition to present the changes in fair value in other comprehensive income as described below.
Upon initial recognition, financial assets measured at fair value through profit or loss are recognised at fair
value and any transaction costs are recognised in profit or loss when incurred. Subsequent to initial
recognition, financial assets at fair value through profit or loss are measured at fair value, and changes
therein are recognised in profit or loss.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 4 6
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1i
Impairment of assets
Mining tenements assets and other intangible assets that have an indefinite useful life are not subject to
amortisation and are tested annually for impairment, or more frequently if events or changes in
circumstances indicate that they might be impaired. Other assets are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount may not be recoverable. An
impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash inflows which are largely independent of the cash flows from other assets or
groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered impairment
are reviewed for possible reversal of the impairment at each reporting date.
1j
Plant and equipment
Plant and equipment is stated at historical cost less depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged
to profit and loss during the financial period in which they are incurred.
Depreciation is calculated on a diminishing value basis to write off the net cost of each item of plant and
equipment over its expected useful life to the Group. The expected useful lives are as follows:
Plant and equipment 5 - 10 years.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting
date. An asset's carrying amount is written down immediately to its recoverable amount if the asset's
carrying amount is greater than its estimated recoverable amount (Note 1h).
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are
included in the profit and loss.
1k
Trade receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using
the effective interest method, less any allowance for expected credit losses. Trade receivables are
generally due for settlement within 30 days.
The consolidated entity has applied the simplified approach to measuring expected credit losses, which
uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have
been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 4 7
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1l
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the
financial year and which are unpaid, together with assets ordered before the end of the financial year. The
amounts are unsecured and are usually paid within 30 days of recognition.
1m
Employee benefits
(i)
Wages and salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to
be settled within 12 months of the reporting date are recognised in other payables in respect of
employees’ services up to the reporting date and are measured at the amounts expected to be paid
when the liabilities are settled.
Annual leave has been accrued as at 30 June 2022.
(ii)
Long service leave
The liability for long service leave is recognised in the provision for employee benefits and
measured as the present value of expected future payments to be made in respect of services
provided by employees up to the reporting date using the projected unit credit method.
Consideration is given to expected future wage and salary levels, experiences of employee
departures and periods of service. Expected future payments are discounted using market yields
at the reporting date on national government bonds with terms to maturity and currency that match,
as closely as possible, the estimated future cash outflows.
Long service leave has been accrued as at 30 June 2022.
(iii)
Share-based payments
Share-based compensation benefits are provided to directors through the granting of options and
performance rights.
The fair value of options and performance rights granted by the Group are recognised as an
employee benefits expense with a corresponding increase in equity. The total amount to be
expensed is determined by reference to the fair value of the options and performance rights
granted, which includes any market performance conditions but excludes the impact of any service
and non-market performance vesting conditions and the impact of any non-vesting conditions.
Non-market vesting conditions are included in assumptions about the number of options and
performance rights that are expected to vest. The total expense is recognised over the vesting
period, which is the period over which all of the specified vesting conditions are to be satisfied. At
the end of each period, the entity revises its estimates of the number of options that are expected
to vest based on the non-marketing vesting conditions. It recognises the impact of the revision to
original estimates, if any, in profit or loss, with a corresponding adjustment to equity.
1n
Cash and cash equivalents
For statement of cashflows presentation purposes, cash and cash equivalents includes cash on hand,
deposits held at call with financial institutions, other short-term, highly liquid instruments with original
maturities of three months or less that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities on the statement of financial position.
1o
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs)
and the redemption amount is recognised in the profit and loss over the period of the borrowings using the
effective interest method. Fees paid on the establishment of loan facilities, which are not incremental costs
relating to the actual draw-down of the facility, are recognised as prepayments and amortised on a straight-
line basis over the term of the facility.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer
settlement of the liability for at least 12 months after the reporting date.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 4 8
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1p
Right-of-use assets
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at
or before the commencement date net of any lease incentives received, any initial direct costs incurred,
and, except where included in the cost of inventories, an estimate of costs expected to be incurred for
dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain
ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful
life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability
for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on
these assets are expensed to profit or loss as incurred.
1q
Fair value estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and
measurement or for disclosure purposes.
The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and
trading and available-for-sale securities) is based on quoted market prices at the reporting date. The
quoted market price used for financial assets held by the Company is the current bid price: the appropriate
quoted market price for financial liabilities is the current ask price.
The nominal value less estimated credit adjustments of trade receivables and payables are assumed to
approximate their fair values.
1r
Goods and services tax
Revenues, expenses and assets are recognised net of the amount of associated goods and services tax
(GST), unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised
as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net
amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or
payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or
financing activities which are recoverable from, or payable to, the taxation authority, are presented as
operating cash flows.
1s
Contributed equity
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction from the proceeds. Incremental costs directly attributable to the issue of new shares or options
for the acquisition of a business are not included in the cost of acquisition as part of the purchase
consideration.
If the entity reacquires its own equity instruments, e.g. as the result of a share buy-back, those instruments
are deducted from equity and the associated shares are cancelled. No gain or loss is recognised in the
profit or loss and the consideration paid including any directly attributable incremental costs (net of income
taxes) is recognised directly in equity.
1t
Provisions
Provisions for legal claims recognised when the Group has a present legal obligation as a result of past
events, it is probable that an outflow of resources will be required to settle the obligation, and the amount
has been reliably estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement
is determined by considering the class of obligations as a whole. A provision is recognised even if the
likelihood of an outflow with respect to any one item included in the same class of obligations may be
small.
Provisions are measured at the present value of management's best estimate of the expenditure required
to settle the present obligation at the reporting date. The discount rate used to determine the present value
reflects current market assessments of the time value of money and the risks specific to the liability.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 4 9
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1u
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 has been identified as the steering
committee that makes strategic decisions.
1v
Borrowing costs
Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period of
time that is required to complete and prepare the assets for its intended use or sale. Other borrowing costs
are expensed.
1w
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised
at the present value of the lease payments to be made over the term of the lease, discounted using the
interest rate implicit in the lease or, if that rate cannot be readily determined, the consolidated entity's
incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives
receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under
residual value guarantees, exercise price of a purchase option when the exercise of the option is
reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that
do not depend on an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts
are remeasured if there is a change in the following: future lease payments arising from a change in an
index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination
penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use
asset, or to profit or loss if the carrying amount of the right-of-use
asset is fully written down.
1x
Earnings per share
(i)
(ii)
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the
Company by the weighted average number of ordinary shares outstanding during the financial year,
adjusted for bonus elements in ordinary shares issued during the year.
Diluted earnings per share
Diluted earnings per share adjusted the figures used in the determination of basic earnings per
share to take into account the after income tax effect of interest and other financing costs associated
with dilutive potential ordinary shares and the weighted average number of shares assumed to have
been issued for no consideration in relation to dilutive potential ordinary shares.
1y
Rehabilitation costs
The Group’s mining, extraction and processing activities give rise to obligations for site rehabilitation.
Rehabilitation obligations can include facility decommissioning and dismantling; removal or treatment of
waste materials; land rehabilitation; and site restoration. The extent of work required and the associated
costs are estimated based on feasibility estimates using current restoration standards and techniques.
Provisions for the cost of each rehabilitation program are recognised at the time that environmental
disturbance occurs.
Rehabilitation provisions are initially measured at the expected value of future cash flows required to
rehabilitate the relevant site.
At each reporting date the rehabilitation liability is re-measured to account for any new disturbance,
updated cost estimates, changes to the estimated lives of operations and new regulatory requirements.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 5 0
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1z
Associates
Associates are entities over which the consolidated entity has significant influence but not control or joint
control. Investments in associates are accounted for using the equity method. Under the equity method,
the share of the profits or losses of the associate is recognised in profit or loss and the share of the
movements in equity is recognised in other comprehensive income. Investments in associates are carried
in the statement of financial position at cost plus post-acquisition changes in the consolidated entity's share
of net assets of the associate. Goodwill relating to the associate is included in the carrying amount of the
investment and is neither amortised nor individually tested for impairment. Dividends received or receivable
from associates reduce the carrying amount of the investment.
When the consolidated entity's share of losses in an associate equal or exceeds its interest in the
associate, including any unsecured long-term receivables, the consolidated entity does not recognise
further losses, unless it has incurred obligations or made payments on behalf of the associate.
The consolidated entity discontinues the use of the equity method upon the loss of significant influence
over the associate and recognises any retained investment at its fair value. Any difference between the
associate's carrying amount, fair value of the retained investment and proceeds from disposal is
recognised in profit or loss.
2
CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually
evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and
expenses. Management bases its judgements, estimates and assumptions on historical experience and
on other various factors, including expectations of future events, management believes to be reasonable
under the circumstances. The resulting accounting judgements and estimates will seldom equal the related
actual results. The judgements, estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within
the next financial year are discussed below.
2a
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has
had, or may have, on the consolidated entity based on known information. This consideration extends to
the nature of the products and services offered, customers, supply chain, staffing and geographic regions
in which the consolidated entity operates. Other than as addressed in specific notes, there does not
currently appear to be either any significant impact upon the financial statements or any significant
uncertainties with respect to events or conditions which may impact the consolidated entity unfavourably
as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
2b
Share-based payment transactions
The consolidated entity 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 taking into account the terms and conditions upon
which the instruments were granted. The accounting estimates and assumptions relating to equity-settled
share-based payments would have no impact on the carrying amounts of assets and liabilities within the
next annual reporting period but may impact profit or loss and equity. Refer to note 24 for further
information.
2c
Impairment of non-financial assets other than goodwill and other indefinite life intangible assets
The consolidated entity assesses impairment of non-financial assets other than goodwill and other
indefinite life intangible assets at each reporting date by evaluating conditions specific to the consolidated
entity and to the particular asset that may lead to impairment. If an impairment trigger exists, the
recoverable amount of the asset is determined. This involves fair value less costs of disposal or value-in-
use calculations, which incorporate a number of key estimates and assumptions.It is reasonably possible
that the underlying metal price assumption may change which may then impact the estimated life of mine
determinant and may then require a material adjustment to the carrying value of mining plant and
equipment, mining infrastructure and mining development assets. Furthermore, the expected future cash
flows used to determine the value-in-use of these assets are inherently uncertain and could materially
change over time. They are significantly affected by a number of factors including reserves and production
estimates, together with economic factors such as metal spot prices, discount rates, estimates of costs to
produce reserves and future capital expenditure.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 5 1
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
2
CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS (CONTINUED)
2d
Income tax
The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant
judgement is required in determining the provision for income tax. There are many transactions and
calculations undertaken during the ordinary course of business for which the ultimate tax determination is
uncertain. The consolidated entity recognises liabilities for anticipated tax audit issues based on the
consolidated entity's current understanding of the tax law. Where the final tax outcome of these matters is
different from the carrying amounts, such differences will impact the current and deferred tax provisions in
the period in which such determination is made.
2e
Rehabilitation provision
A provision has been made for the present value of anticipated costs for future rehabilitation of land
explored or mined. The consolidated entity's mining and exploration activities are subject to various laws
and regulations governing the protection of the environment. The consolidated entity recognises
management's best estimate for assets retirement obligations and site rehabilitations in the period in which
they are incurred. Actual costs incurred in the future periods could differ materially from the estimates.
Additionally, future changes to environmental laws and regulations, life of mine estimates and discount
rates could affect the carrying amount of this provision.
2f
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will
commence commercial production in the future, from which time the costs will be amortised in proportion
to the depletion of the mineral resources. Key judgements are applied in considering costs to be capitalised
which includes determining expenditures directly related to these activities and allocating overheads
between those that are expensed and capitalised.
In addition, costs are only capitalised that are expected to be recovered either through successful
development or sale of the relevant mining interest. Factors that could impact the future commercial
production at the mine include the level of reserves and resources, future technology changes, which could
impact the cost of mining, future legal changes and changes in commodity prices. To the extent that
capitalised costs are determined not to be recoverable in the future, they will be written off in the period in
which this determination is made.
2g
Associates accounted for using the equity method
Judgement is exercised in determining cost of the associate, and the significant influence but without
control or joint control. The consolidated entity discontinues the use of the equity method upon the loss of
significant influence over the associate and recognises any retained investment at its fair value. Where the
consolidated entity controls an entity when the consolidated entity 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 to
direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is
transferred to the consolidated entity. They are de-consolidated from the date that control ceases
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 5 2
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
3 INTEREST INCOME
Interest income
4
OTHER INCOME
Profit on sale of investments
Proceeds from royalty divestments
Profit on sale of tenement interest
Recovery of administration costs
Diesel fuel rebate
Other income
5
EXPENSES
Profit/(loss) before income tax includes the following specific expenses:
Cost of sales
Trial mine processing costs
Cost of sales
Building and occupancy costs
Rental expense - right of use asset
Interest expense – right of use asset (refer Note 14)
Amortisation – right of use asset (refer Note 14)
Other
Building and occupancy costs
Superannuation expenses
Defined contribution superannuation expense
Superannuation expenses
2022
$
2021
$
8,954
50,964
1,112,284
-
-
4,000,000
100,000
916,259
164,945
145,240
28,557
-
1,962,166
1,256,316
3,367,952
6,317,815
2,062,288
12,901,401
2,062,288
12,901,401
1,252
6,738
47,414
37,607
159
9,223
50,498
53,047
93,011
112,927
126,436
126,436
93,482
93,482
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 5 3
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
6
SEGMENT INFORMATION
Management has determined the operating segments based on the reports
reviewed by the Board that are used to make strategic decisions.
The Board considers that the reportable segments are defined by the nature
of the exploration activities. As such there are two reportable segments
being Vanadium/Molybdenum tenements and Gold tenements.
2022
Revenue
Vanadium/
Molybdenum
$
Gold
$
Total
$
-
3,321,121
3,321,121
Profit/(loss) before income tax
(116,897)
(26,075,440)
(26,192,337)
Total segment assets
1,249,802
37,493,174
38,742,976
2021
Revenue
Profit/(loss) before income tax
Vanadium/
Molybdenum
$
Gold
$
Total
$
-
-
21,852,326
21,852,326
4,700,561
4,700,561
Total segment assets
756,401
50,143,218
50,899,619
6a
Segment revenue
Segment revenue reconciles to revenue from continuing operations as follows:
Segment revenue
Interest revenue
Other revenue
Revenue from continuing operations
2022
$
2021
$
3,321,121
21,852,326
8,954
50,964
3,367,952
1,401,556
6,698,027
23,304,846
6b
Segment profit/(loss)
Segment profit/(loss) reconciles to total comprehensive income as follows:
Segment profit/(loss) before income tax
Interest revenue
(26,075,440)
4,700,561
8,954
50,964
Net change in value of financial assets at fair value through profit & loss
(1,846,000)
(2,255,142)
Items that may be reclassified subsequently to profit or loss
-
198,976
Profit/(Loss) before income tax
(27,912,486)
2,695,359
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 5 4
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
2022
$
2021
$
6
6c
SEGMENT INFORMATION (CONTINUED)
Segment assets
Segment assets reconcile to total assets as follows:
Segment assets
Unallocated assets
Total assets
6d
Segment liabilities
The Group’s liabilities are not reported to management on an individual
segment basis, but rather reported on a consolidated basis.
7
7a
INCOME TAX
The prima facie income tax expense on pre-tax accounting loss
reconciles to the income tax expense in the financial statements as
follows:
38,742,976
50,899,619
7,735,110
15,552,165
46,478,086
66,451,784
Profit/(Loss) from continuing operations after income tax expense
(28,029,383)
2,447,429
Income tax expense/(benefit) calculated at 25% (2021: 30%)
(7,007,346)
734,228
Capital raising cost allowable
(92,817)
(122,372)
(7,100,163)
611,856
Movements in unrecognised timing differences
749,865
(1,675,106)
Expenses that are not deductible in determining taxable profit
154,608
77,061
Movement in share revaluations
461,500
676,543
Assessable gain on transfer of interest in Richmond Vanadium Project
4,987,500
Benefit of tax losses utilised not previously brought to account
(1,422,002)
-
-
Under provision for income tax of prior years
Impact of change in corporate tax rate
Tax losses not recognised
Unused tax losses not recognised as a deferred tax asset
Income tax expense reported in the Statement of Profit or Loss and Other
Comprehensive Income
7b
Unrecognised deferred tax balances:
The following deferred tax assets (2022: 25%, 2021: 30%) have not been
brought to Account:
-
48,956
2,168,692
-
-
-
-
309,645
-
48,956
Unrecognised deferred tax asset – tax losses
19,738,176 23,406,268
Unrecognised deferred tax asset – capital losses
-
16,978
Unrecognised deferred tax liability – capitalised exploration expenses
(6.347,859)
(11,706,998)
Unrecognised deferred tax asset/(liability) – share investments
908,753
734,312
Unrecognised deferred tax asset – other temporary differences
389,972
561,592
Equity accounted investments
(3,153,468)
-
Net deferred tax assets/(liability) not brought to account
17,842,510 13,012,152
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 5 5
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
2022
$
2021
$
7
7c
INCOME TAX (CONTINUED)
The taxation benefits of tax losses and timing not brought to account will only
be obtained if:
assessable income is derived of a nature and of amount sufficient to
enable the benefit from the deductions to be realised;
conditions for deductibility imposed by the law are complied with; and
no changes in tax legislation adversely affect the realisation of the benefit
from the deductions.
7d
Tax consolidation
Horizon Minerals and its wholly owned Australian subsidiaries are part of an
income tax consolidated group and have entered into tax sharing and tax
funding agreements. Under the terms of these agreements, the subsidiaries
will reimburse Horizon Minerals for any current income tax payable by Horizon
Minerals arising in respect of their activities. The reimbursements are payable
at the same time as the associated income tax liability falls due and will
therefore be recognised as a current tax-related receivable by Horizon
Minerals when they arise. In the opinion of the Directors, the tax sharing
agreement is also a valid agreement under the tax consolidation legislation
and limits the joint and several liability of the subsidiaries in the event of a
default by Horizon Minerals.
7e
Change in corporate tax rate
Due to changes in operational circumstances, Horizon Minerals and its
subsidiaries should be considered a ‘base rate entity’ for income tax purposes
and therefore eligible for the reduced corporate tax rate. The impact of this
change in the corporate tax rate has been reflected in the unrecognised
deferred tax positions and the prima face income tax reconciliation above.
8
CASH AND CASH EQUIVALENTS
Cash at bank and on hand
5,406,635
11,315,965
Reconciliation to cash at the end of the year
The above figures are reconciled to cash at the end of the financial year as
shown in the cash flow statement as follows:
Balances as above
Balances per statement of cash flows
9
TRADE AND OTHER RECEIVABLES
Trade receivables
Other receivables – ATO receivables
5,406,635
11,315,965
5,406,635
11,315,965
93,222
64,858
-
991
Other receivables – sale of tenement – deferred payment (i)
800,000
850,000
Prepayment and other receivables
Accrued interest
Term deposit – bonds & credit card security deposit
354,209
172,577
11
3
17,100
17,100
1,264,542
1,105,529
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 5 6
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
9
TRADE AND OTHER RECEIVABLES (CONTINUED)
(i) During the period to 30 June 2022, the Company received $350,000 being the first of three deferred payments totalling
$850,000 for the 100% divestment of its interest in the Nanadie Well Copper project to Cypirum Metals Limited (ASX:
CYM) in September 2020. The payment was made in cash and the final two tranches will be paid in Cyprium shares,
$300,000 in 24 months and $200,00 on a decision to mine from the tenure. The shares are based on a 20 days VWAP.
In June 2022, the Company received a cash deposit of $100,000 and recognised a $300,000 receivable as final
consideration for the 100% divestment of its interest in the Gunga West gold project to FMR Investments Pty Ltd (ASX:
FMR).
2022
$
2021
$
Effective interest rates and credit risk
Information concerning the effective interest rate and credit risk of both current
and non-current receivables is set out below.
Interest rate risk
All receivable balances are non-interest bearing.
Credit rate risk
There is no concentration of credit risk with respect to current and non-current
receivables. Refer to Note 29 for further information on the Group’s risk
management policies. Due to short term nature, fair value approximates
carrying value.
10
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Shares in listed companies at market value
2,328,475
4,236,200
2,328,475
4,236,200
Included is $1,854,167 of shares held in Kingwest Resources Limited (2021:
$2,435,833), $9,308 of shares held in Cyprium Metals Limited (2021: $627,438)
and $465,000 shares held in Metal Hawk Limited.
The net change in fair value on financial assets at fair value through profit or
loss for the year was a loss of $1,846,000 (2021 Loss: $2,255,142).
All financial assets at fair value through profit or loss are denominated in
Australian currency. Refer to Note 29 for further information concerning the
price and foreign currency risk.
11
OTHER ASSETS
Security deposits
257,927
257,927
257,927
257,927
The security deposits arise from monies held in trust accounts or lodged with
appropriate authorities in relation to mining tenements held. The Group has
restricted access to these funds, but they are expected to be reimbursed in the
future.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 5 7
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
12
PROPERTY, PLANT & EQUIPMENT
Plant and equipment at cost
Accumulated depreciation and impairment
Total plant and equipment
Property at cost
Accumulated depreciation and impairment
Total property
Motor vehicles – at cost
Accumulated depreciation
Total motor vehicles
RECONCILIATIONS
12a Plant and equipment
Carrying amount at beginning of the year
Reclassification of carrying amount
Additions
Disposals
Depreciation
Loss on impairment
Carrying amount at end of year
12b Property
Carrying amount at beginning of the year
Reclassification of carrying amount
Depreciation
Carrying amount at end of year
12c Motor Vehicle
Carrying amount at beginning of year
Additions
Disposals
Depreciation
Carrying amount at end of year
2022
$
2021
$
4,877,228
4,405,401
(4,618,715)
(4,220,171)
258,513
185,230
322,571
519,323
(169,658)
(248,500)
152,886
270,823
250,361
272,011
(233,952)
(249,681)
16,409
22,330
427,808
478,383
185,230
2,253,031
109,716
282,529
-
80,485
(937)
(108,159)
(318,025)
(141,844)
-
(1,898,283)
258,513
185,230
270,823
290,254
(109,716)
-
(8,221)
(19,431)
152,886
270,823
22,330
34,113
-
475
(816)
(5,105)
(4,276)
(7,982)
16,409
22,330
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 5 8
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
2022
$
2021
$
48,931,342
35,755,748
7,613,852
9,404,971
(1,124,778)
-
5,000,000
4,574,365
(25,000)
(803,742)
(31,017,868)
-
29,377,548
48,931,342
-
-
-
-
-
-
-
-
-
-
29,377,657
48,931,342
-
-
-
-
2,504,762
(2,504,762)
-
-
13
EXPLORATION, EVALUATION, DEVELOPMENT AND PRODUCTION
EXPENDITURE
During the year ended 30 June 2022, the Group incurred and capitalised the
following exploration, evaluation, development and production expenditure:
13a Exploration and evaluation phase
Carrying amount at beginning of the year
Capitalised during the year
Transfer to equity investment
Purchases of tenements
Sale of tenements
Impairment*
Carrying amount at end of year
13b Mine properties
Carrying amount at beginning of the year
Reclassification of mine properties**
Capitalised during the year
Amortised during the year
Carrying amount at end of year
Total exploration and mine properties
13c Mining production expenditure
Carrying amount at beginning of the year
Capitalised during the year
Mine production costs expensed***
Carrying amount at end of year
Total mining production
* Impairment of mining tenements
During the year ended 30 June 2022, impairment to mining tenements was
recorded as $31,017,868. A resulting market capitalisation has dropped to ~$40m.
The Net Assets of the group as at 30 June 2022 needed to represent this.
Management considered the market capitalisation and other relevant factors and
has determined therefore to impair the carrying amount of Exploration and
Evaluation based on market capitalisation.
The ultimate recoupment of expenditure above relating to the exploration and
evaluation phase is dependent upon the successful development and commercial
exploitation, or alternatively, sale of the respective areas of interest.
** Reclassification of mine properties
The Group has reclassified prior allocated mine development expenditure as
exploration expenditure.
*** Mine production expenditure
Costs relate to Boorara Gold Project, of which mining commenced in May 2020.
These costs will be expensed in line with revenue recognised from this project.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 5 9
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
14
RIGHT-OF-USE ASSET AND LEASE LIABILITY
Amounts recognised in the consolidated statement of financial position
Right-of-use asset
Property – head office lease
Opening balance
Initial recognition adjustment
Amortisation
Closing balance
Lease liability
Opening balance
Initial recognition adjustment
Lease payments
Interest expense
Closing balance
Current lease liability
Non-current lease liability
Total lease liability
Amounts recognised in the consolidated statement of profit or loss
Amortisation of right-of-use asset
Property – office lease amortisation
2022
$
2021
$
126,438
162,544
-
14,392
(47,414)
(50,498)
79,024
126,438
133,943
169,761
-
14,392
(54,479)
(59,433)
6,738
9,223
86,202
133,943
50,686
35,516
86,202
47,741
86,202
133,943
47,414
47,414
50,498
50,498
The total cash outflow for the lease in the twelve months to 30 June 2022 was $54,479.
On 1 July 2019, the Company held one lease for the head office based in Nedlands. The lease was renewed on 22
February 2020 for a further two year period with an option to extend for another two years thereafter.
15
TRADE AND OTHER PAYABLES
Trade payables
Accrued expenses
2022
$
2021
$
4,361,473
105,488
375,525
107,105
4,466,961
482,630
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 6 0
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
16
BORROWINGS
Opening balance
Loan funds borrowed
Repayment of loan
Accrued interest
Interest payments made
2022
$
2021
$
-
-
-
-
-
-
4,245,479
-
(4,609,315)
-
363,836
-
During the year ended 30 June 2021, the Group repaid external financing
earlier than anticipated. As at the date of repayment, $363,836 of interest
was incurred.
The loan was secured over mining tenements M26/29 and M26/318, being
the Boorara Gold Project for a period of 12 months, carrying an interest rate
of 20% p.a.
17
PROVISIONS
Rehabilitation of mine site
18
CONTRIBUTED EQUITY
18a Share capital
1,454,400
1,389,664
1,454,400
1,389,664
2022
No.
2021
No.
2022
$
2021
$
At the beginning of the year
567,975,200
452,975,200 66,426,399
51,439,580
Placement
Placement Tranche 1
Placement Tranche 2
Exercise of options
Capital raising costs
44,444,445
-
4,000,000
-
-
-
-
-
57,500,000
57,500,000
-
-
-
-
-
8,050,000
8,050,000
-
(337,096)
(1,113,181)
Total Contributed Equity
612,419,645
567,975,200
70,089,303
66,426,399
18b Terms and conditions of contributed equity
Ordinary shares
Ordinary shares have no par value. Ordinary shares have the right to receive dividends as declared and, in the
event of winding up the Company, to participate in the proceeds from the sale of all surplus assets in proportion
to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in
person or by proxy, at a meeting of the Company.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 6 1
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
18
CONTRIBUTED EQUITY (CONTINUED)
18c Options
Unlisted
Options No.
Unlisted
Options No.
Total
No.
Exercise Price
$0.12
$0.16
Expiry date
30 Sept 2022
30 Sept 2022
Balance at 1 July 2021
12,000,000
12,000,000
24,000,000
Issued during the year
Expired during the year
Exercised during the year
-
-
-
-
-
-
-
-
-
Balance at 30 June 2022
12,000,000
12,000,000
24,000,000
Unlisted
Options No.
Unlisted
Options No.
Total
No.
Exercise Price
$0.12
$0.16
Expiry date
30 Sept 2022
30 Sept 2022
Balance at 1 July 2020
12,000,000
12,000,000
24,000,000
Issued during the year
Expired during the year
Exercised during the year
-
-
-
-
-
-
-
-
-
Balance at 30 June 2021
12,000,000
12,000,000
24,000,000
18d Performance Rights
As at 30 June 2022, there were 7,066,667 performance rights on issue that, if the vesting conditions are met,
could result in the issue of 7,066,667 ordinary shares in the Company. Further details are contained in Note 24.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 6 2
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
19
RESERVES AND ACCUMULATED LOSSES
19a
(i) Asset revaluation reserve
Opening balance
Reclassified subsequently to profit or loss
Closing Balance
(ii) Share based payments reserve
Opening balance
Performance rights issued during the year
Options issued under borrowings agreement
2022
$
2021
$
-
-
-
144,976
(144,976)
-
747,003
1,672,354
296,135
219,126
-
-
Share based payments reclassified to profit or loss
(207,388)
(1,090,477)
Reclassified subsequently to profit or loss
Closing Balance
Total Reserves
19b Accumulated losses
Opening balance
Revaluation reserves reclassified to profit or loss
-
(54,000)
835,750
747,003
835,750
747,003
(3,103,058)
(6,839,940)
207,388
1,090,477
Revaluation reserves reclassified subsequently to profit or loss
-
198,976
Profit/(loss) for the year
Closing balance
(28,029,383)
2,447,429
(30,925,053)
(3,103,058)
Asset Revaluation Reserve
The Asset Revaluation Reserve is used to record increments and
decrements on the revaluation of non-current assets.
Share Based Payments Reserve
The Share Based Payments Reserve is used to recognise the fair value
of shares, options and performance rights granted as remuneration.
20
EARNINGS PER SHARE
Operating profit/(loss) after tax attributable to members of Horizon
Minerals Limited
Basic earnings (loss) per share
Diluted earnings (loss) per share
Weighted average number of ordinary shares outstanding during the
year used in the calculation of basic earnings per share.
(28,029,383)
2,447,428
(4.93) dollars
0.45 cents
(4.93) dollars
0.45 cents
Number
Number
567,975,200
544,502,597
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 6 3
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
21
REMUNERATION OF AUDITORS
Remuneration for audit services and review of the financial reports of
the parent entity or any entity in the Group to PKF Perth. No other fees
were paid or payable for services provided by the auditor of the parent,
related practices or non-related audit firms.
PKF Perth
22
KEY MANAGEMENT PERSONNEL DISCLOSURES
22a Details of remuneration
Short-term benefits
Post-employment benefits
Share based payments
23 STATEMENT OF CASH FLOWS
23a Reconciliation of net cash from operating activities to Profit/(Loss)
after income tax
Operating Profit/(Loss) after income tax
Depreciation and amortisation
Share of loss – joint ventures
Impairment loss on non-current assets
Net change in fair values of financial assets at fair value through profit or
loss
Profit on sale of investments
Profit on sale of tenements and non-current assets
Impairment loss on tenements
Share based payment
Unwind expired share-based payments
Movement in assets and liabilities:
Provisions
Receivables
Prepayments
Lease liabilities
Trade creditors and accruals
Net cash inflow/(outflow) from operating activities
2022
$
2021
$
87,190
87,190
55,000
55,000
2022
$
2021
$
1,306,231
1,082,629
95,100
70,901
189,844
201,883
1,591,175
1,355,413
(28,029,383)
2,447,428
378,761
169,257
116,897
-
-
1,898,283
1,846,000
2,255,142
(2,657,284)
-
(403,245)
(916,259)
24,689,623
-
296,135
219,126
(207,388)
97,170
-
-
(197,747)
276,682
(11,267)
(10,325)
-
(577)
1,689,868
(285,659)
(2,391,860)
6,053,098
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 6 4
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
24
SHARE BASED PAYMENTS
24a Year ended 30 June 2022
In August and October 2021, employees were granted 500,000 performance rights.
As at 30 June 2022, 3,583,333 of Class H, I and J performance rights were cancelled.
The performance rights were granted at nil consideration, do not have an exercise price and will lapse if the
vesting conditions are not met.
The Performance Rights are issued under the Company’s Employee Incentive Scheme (EIS) approved by
shareholders at the General Meeting held on 29 November 2019. The issue to Directors was approved at the
Annual General Meeting on 26 November 2020.
Each Performance Right will, at the election of the holder, vest and convert to one fully paid ordinary share, subject
to the satisfaction of certain Performance Conditions.
The Performance Conditions relating to Performance Rights will be as follows:
Class of Performance Rights
Service Condition
Class H Performance Rights
The holder or the holder's
representative remains engaged as
an employee or Director until the
performance condition is satisfied.
Class I Performance Rights
The holder or the holder's
representative remains engaged as
an employee or Director until the
performance condition is satisfied.
Class J Performance Rights
The holder or the holder's
representative remains engaged as
an employee or Director until the
performance condition is satisfied.
Performance condition
(a) Prior to 31 December 2021 the
volume weighted average
price of the Company's Shares
over 20 consecutive Trading
Days on which the Shares
trade is 20 cents or more;
or
(b) Prior to 31 December 2021 a
Takeover Event occurs.
(a) Prior to 31 December 2022 the
volume weighted average
price of the Company's Shares
over 20 consecutive Trading
Days on which the Shares
trade is 25 cents or more;
or
(b) Prior to 31 December 2022 a
Takeover Event occurs.
(a) Prior to 31 December 2023
volume weighted average
price of the Company's Shares
over 20 consecutive Trading
Days on which the Shares
trade is 30 cents or more;
or
(b) Prior to 31 December 2023 a
Takeover Event occurs.
During the year ended 30 June 2022, $296,135 was expensed as a share based payment in respect of Class H,
I and J performance rights, with the fair value being recognised over the vesting period. As at 30 June 2022, a
total of 7,066,667 performance rights remain unvested.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 6 5
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
24
SHARE BASED PAYMENTS (CONTINUED)
24a Year ended 30 June 2022 (continued)
Set out below is a summary of the performance rights granted:
Number granted
Grant date
Expired
Class H.1
Class I.1
Class J.1
Total
1,550,000
1,550,000
1,550,000
4,650,000
26-Nov-20
26-Nov-20
26-Nov-20
Expiry date of milestone achievements
31-Dec-21
31-Dec-22
31-Dec-23
Share price hurdle
Fair value per right*
20 cents
25 cents
30 cents
0.0679
0.0741
0.0782
Total fair value that would be recognised over the
vesting period if rights are vested
105,245
114,855
121,210
341,310
Number granted
Grant date
Expired
Class H.2
Class I.2
Class J.2
Total
1,500,000
1,500,000
1,500,000
4,500,000
26-Nov-20
26-Nov-20
26-Nov-20
Expiry date of milestone achievements
31-Dec-21
31-Dec-22
31-Dec-23
Share price hurdle
Fair value per right*
20 cents
25 cents
30 cents
0.0549
0.0627
0.0675
Total fair value that would be recognised over the
vesting period if rights are vested
82,350
94,050
101,250
277,650
Number granted
Grant date
Expired
Class H.3
Class I.3
Class J.3
Total
333,333
333,333
333,334
1,000,000
26-Nov-20
26-Nov-20
26-Nov-20
Expiry date of milestone achievements
31-Dec-21
31-Dec-22
31-Dec-23
Share price hurdle
Fair value per right*
20 cents
25 cents
30 cents
0.0574
0.0663
0.0714
Total fair value that would be recognised over the
vesting period if rights are vested
19,133
22,100
23,800
65,033
Number granted
Grant date
Expired
Class H.4
Class I.4
Class J.4
Total
100,000
100,000
100,000
300,000
30-Aug-21
30-Aug-21
30-Aug-21
Expiry date of milestone achievements
31-Dec-21
31-Dec-22
31-Dec-23
Share price hurdle
Fair value per right*
20 cents
25 cents
30 cents
0.0132
0.0436
0.0554
Total fair value that would be recognised over the
vesting period if rights are vested
660
2,180
2,770
5,610
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 6 6
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
24
SHARE BASED PAYMENTS (CONTINUED)
24a Year ended 30 June 2022 (continued)
Number granted
Grant date
Expired
Class H.5
Class I.5
Class J.5
Total
-
100,000
100,000
200,000
08-Oct-21
08-Oct-21
08-Oct-21
Expiry date of milestone achievements
31-Dec-21
31-Dec-22
31-Dec-23
Share price hurdle
Fair value per right*
20 cents
25 cents
30 cents
0.0132
0.0479
0.0611
Total fair value that would be recognised over the
vesting period if rights are vested
-
4,790
6,110
10,900
Number expired/cancelled at 30 June 2022
(3,483,333)
(50,000)
(50,000)
(3,583,333)
Number remaining at 30 June 2022
-
3,533,333
3,533,334
7,066,667
Amount expensed in 2022
97,589
115,496
83,050
296,135
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 6 7
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
24
SHARE BASED PAYMENTS (CONTINUED)
24a Year ended 30 June 2022 (continued)
The fair value of the rights was determined using Hoadley’s Barrier 1 model that takes into account the vesting
condition of the rights, and was based on the following inputs:
Assumptions
Spot price
Vesting hurdle
Exercise price
Rights
Class H.1
Class H.2
Class H.3
Class H.4
Class H.5
$0.110
$0.20
Nil
$0.100
$0.20
Nil
$0.105
$0.20
Nil
$0.1075
$0.1075
$0.20
Nil
$0.20
Nil
Expiry period (years)
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
Expected future
volatility
Risk free rate
Dividend yield
Assumptions
Spot price
Vesting hurdle
Exercise price
80%
0.09%
Nil
80%
0.10%
Nil
80%
0.08%
Nil
Rights
75%
0.01%
Nil
75%
0.01%
Nil
Class I.1
Class I.2
Class I.3
Class I.4
Class I.5
$0.110
$0.25
Nil
$0.100
$0.25
Nil
$0.105
$0.25
Nil
$0.1075
$0.1150
$0.25
Nil
$0.25
Nil
Expiry period (years)
31-Dec-22
31-Dec-22
31-Dec-22
31-Dec-22
31-Dec-22
Expected future
volatility
Risk free rate
Dividend yield
Assumptions
Spot price
Vesting hurdle
Exercise price
80%
0.09%
Nil
80%
0.10%
Nil
80%
0.08%
Nil
Rights
75%
0.01%
Nil
75%
0.09%
Nil
Class J.1
Class J.2
Class J.3
Class J.4
Class J.5
$0.110
$0.30
Nil
$0.100
$0.30
Nil
$0.105
$0.30
Nil
$0.1075
$0.1150
$0.30
Nil
$0.30
Nil
Expiry period (years)
31-Dec-23
31-Dec-23
31-Dec-23
31-Dec-23
31-Dec-23
Expected future
volatility
Risk free rate
Dividend yield
24b Option issue
80%
0.11%
Nil
80%
0.12%
Nil
80%
0.10%
Nil
75%
0.15%
Nil
75%
0.39%
Nil
During April 2020, 24,000,000 unlisted options were issued pursuant to the Group’s loan agreement with a third
party.
The fair value of these options granted was calculated using the Black-Scholes option valuation methodology and
applying the following inputs:
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 6 8
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
12,000,000
0.16
2.208
0.065
100%
0.92%
15 April 2020
30 September 2022
$0.022
$265,722
2022
$
2021
$
3,322,300
2,730,000
3,012,140
8,612,420
1,089,100
803,200
7,423,540 12,145,620
24
SHARE BASED PAYMENTS (CONTINUED)
24b Option issue (continued)
Weighted average exercise price (cents)
Weighted average life of the options (years)
Weighted average underlying share price (cents)
Expected share price volatility
Risk-free interest rate
Grant date
Expiry date
Value per option
Total value granted
12,000,000
0.12
2.208
0.065
100%
0.92%
15 April 2020
30 September 2022
$0.026
$316,155
25
CAPITAL AND OTHER COMMITMENTS
25a Exploration expenditure commitments
Commitments for minimum expenditure requirements on the mineral
exploration assets it has an interest in are payable as follows:
Within one year
Later than one year but not later than five years
Later than five years
26
RELATED PARTY TRANSACTIONS
26a Directors / Key Management Personnel
Other transactions with Director related entities
Transactions with related parties are on normal commercial terms and
conditions no more favourable than those available to other parties unless
otherwise stated. Disclosures relating to Key Management Personnel are set
out in Note 22 and the Remuneration Report.
26b Subsidiaries
See Note 27 for further details regarding subsidiaries.
27
INVESTMENT IN CONTROLLED ENTITIES
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in Note 1(b):
Name of Entity
Direct Subsidiaries
Black Mountain Gold Ltd
MacPhersons Resources Limited
CGP Minerals Pty Ltd
CGP Assets Pty Ltd
Indirect Subsidiaries
Kalgoorlie Ore Treatment Company Pty Ltd
Polymetals (WA) Pty Ltd
Country of
Incorporation
Class of
Shares
Australia
Australia
Australia
Australia
Australia
Australia
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Equity Holding
2022 %
2021 %
100
100
100
100
100
100
100
100
100
100
100
100
The indirect subsidiaries are direct subsidiaries of MacPhersons Resources Limited.
Horizon Minerals Limited, incorporated in Australia, is the ultimate parent entity of the Group.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 6 9
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
28
CONTINGENT ASSETS AND LIABILITIES
28a Security bonds are held with respect to tenements held in Northern Territory. Bonds are set by the Department of
Primary Industry and Resources, however there is no certainty that such bonds will be adequate to cover any
environmental damage. Horizon Minerals Limited and its controlled entities are not able to determine the nature
or extent of any further liability in view of changing environmental requirements.
28b Horizon Minerals Limited has been advised of a potential liability arising as a result of the storage of laboratory
waste material at the White Range project site and is currently awaiting approval from the NT Environmental
Protection Authority to bury the material at White Range. As at the date of this report, the potential liability for the
rectification remains unquantifiable.
28c On 29 March 2021, the Group announced the divestment of two royalties covering the Janet Ivy and Otto Bore
gold projects in the Western Australian goldfield for a consideration of $7 million consisting of $4 million in cash
on settlement and $3 million in cash or shares in Vox Royalty Corp. (Vox, TSX: VOX) at Vox’s election and on the
achievement of cumulative royalty payments to Vox of $750,000.
29
FINANCIAL RISK MANAGEMENT
The Group's activities expose it to a variety of financial risks; market risk (including fair value interest rate risk
foreign currency risk and price risk), credit risk, liquidity risk and cash flow interest rate risk. The Group's overall
risk management program focuses on the unpredictability of financial markets and seeks to minimise potential
adverse effects on the financial performance of the Group.
Risk management is carried out by the Board of Directors, who identify, evaluate and manage financial risks as
they consider appropriate.
29a Market risk
Price risk
The Group is exposed to equity securities price risk. This arises from investments held by the Group and classified
on the statement of financial position as financial assets at fair value through profit and loss of $2,328,475 (2021:
$4,236,200).
The investments assets are classified as financial asset at fair value through profit and loss and any changes to
their value is recognised in profit and loss when incurred. The group have used an equity price change of 70%
upper and lower representing a reasonable possible change based upon the weighted average historic share
price volatility over the last 12 months on the investment portfolio held. If the value of the investments held had
moved in accordance with the volatility, and all other factors kept constant, the impact on the profit and loss for
the year ended 30 June 2022 would have been ± $1,629,932 (2021: ± $2,965,340).
Fair value interest rate risk
Refer to (e) below.
29b Credit risk
Credit risk is the risk of financial loss to the Group is a customer or counterparty to a financial instrument fails to
meet its contractual obligations and arises principally from the Group’s receivables from customers.
Presently, the Group undertakes mining, exploration and evaluation activities exclusively in Australia. At the
balance sheet date there were no significant concentrations of credit risk.
(i) Cash and cash equivalents
The Group limits its exposure to credit risk by only investing in liquid securities and only with major Australian
financial institutions.
(ii) Trade and other receivables
The Group’s trade and other receivables relate to gold sales, GST refunds and other income.
The Group has determined that its credit risk exposure on all other trade receivables is low, as customers
are considered to be reliable and have short contractual payment terms. Management does not expect any
of these counterparties to fail to meet their obligations.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 7 0
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
29
FINANCIAL RISK MANAGEMENT (CONTINUED)
29b Credit risk (continued)
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:
Cash and cash equivalents
Trade and other receivables
Total
Carrying Amount
2022
$
2021
$
5,406,635
11,315,965
1,264,542
1,105,529
6,671,177
12,421,494
29c Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability
of funding through the ability to raise further funds on the market and the ability to close-out market positions. Due
to the dynamic nature of the underlying businesses, the Board aims at maintaining flexibility in funding through
management of its cash resources.
Maturities of financial liabilities.
30 June 2022
Group
Non-derivatives
Non-interest bearing
payables
4,762,134
Fixed rate borrowings
-
Total non-derivatives
4,762,134
30 June 2021
Group
Non-derivatives
Non-interest bearing
payables
857,833
Fixed rate borrowings
-
Total non-derivatives
857,833
Less
than 6
months
6 – 12
months
Between
1 and 2
years
Between
2 and 5
years
Over
5
years
Total
contractual
cash flows
Carrying
Amount
(assets)/
liabilities
Interest
Rate
(% p.a.)
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,762,134
-
4,762,134
-
-
Less
than 6
months
6 – 12
months
Between
1 and 2
years
Between
2 and 5
years
Over
5
years
Total
contractual
cash flows
Carrying
Amount
(assets)/
liabilities
Interest
Rate
(% p.a.)
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
857,833
-
857,833
-
-
29d Cash flow and fair value interest rate risk
As the Group has no significant variable interest-bearing assets, the Group's income and operating cash flows
are not exposed to changes in market interest rates.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 7 1
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
29
FINANCIAL RISK MANAGEMENT (CONTINUED)
29e Fair value measurements
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or
for disclosure purposes.
AASB 7 Financial Instruments: Disclosures requires disclosure of fair value measurements by level of the following
fair value measurement hierarchy:
(a) quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1),
(b)
(c)
inputs other than quoted prices included within level 1 that are observable for the asset or liability, either
directly (as prices) or indirectly (derived from prices) (level 2), and
inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3).
The following table presents the group’s assets and liabilities measured and recognised at fair value at 30 June
2022 and 30 June 2021:
At 30 June 2022
Assets
Financial assets at fair value through profit or loss
Level 1
Level 2
Level 3
Total
- Trading Securities
Other financial assets
- Security deposits
Total assets
At 30 June 2021
Assets
2,328,475
257,927
2,586,402
-
-
-
-
-
-
2,328,475
257,927
2,586,402
Level 1
Level 2
Level 3
Total
Financial assets at fair value through profit or loss
- Trading Securities
Other financial assets
- Security deposits
Total assets
4,236,200
257,927
4,494,127
-
-
-
-
-
-
4,236,200
257,927
4,494,127
The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading
and available-for-sale securities) is based on quoted market prices at the end of the reporting period. The quoted
market price used for financial assets held by the group is the current bid price. These instruments are included
in level 1.
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter
derivatives) is determined using valuation techniques. These valuation techniques maximise the use of
observable market data where it is available and rely as little as possible on entity specific estimates. If all
significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
If one or more of the significant inputs is not based on observable market data, the instrument is included in level
3. This is the case for unlisted equity securities.
Specific valuation techniques used to value financial instruments include:
•
The use of quoted market prices or dealer quotes for similar instruments.
29f Capital risk management
In employing its capital (or equity as it is referred to on the statement of financial position) the Group seeks to
ensure that it will be able to continue as a going concern and provide value to shareholders by way of increased
market capitalisation. The Group has invested its available capital in intangible assets such as acquiring and
exploring mining tenements and in investments. As is appropriate at this stage, the Group is funded predominantly
by equity.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 7 2
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
30
PARENT ENTITY FINANCIAL INFORMATION
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Accumulated profits/(losses)
Total equity
Profit/(Loss) for the year
2022
$
2021
$
11,820,374
14,852,905
10,808,486
56,459,695
22,628,860
71,312,600
4,715,623
888,563
844,178
186,202
5,604,186
1,030,380
17,024,673
70,282,220
70,089,303
66,426,399
835,750
747,003
(53,900,380)
3,108,818
17,024,673
70,282,220
(57,009,198)
10,815,525
31
INVESTMENT IN NON-CONTROLLED ENTITIES
The consolidated entity uses the equity method of accounting for non-controlling interests in subsidiaries.
Information relating to subsidiaries with non-controlling interests that are material to the consolidated entity are
set out below:
Name
Principal place of
business
Principal activities
Richmond Vanadium
Australia
Vanadium Exploration
Summarised statement of financial position
Cash and cash equivalents
Other current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Summarised statement of profit or loss and other comprehensive income
Other revenue
Interest revenue
Depreciation and amortisation expense
Other expenses
Loss before income tax
Income tax expense
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 7 3
Non-controlling
interest
Ownership interest
2022
25%
2022
$
1,051,358
629,588
26,166,120
27,847,066
1,503,532
22,671
1,526,203
26,320,863
406,318
114
(5,070)
(868,945)
(467,583)
-
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
31
INTERESTS IN SUBSIDIARIES (CONTINUED)
Loss after income tax
Other comprehensive income
Total comprehensive income
Reconciliation of consolidated entity’s carrying amount
Opening carrying amount
Transferred exploration costs
Initial recognition of equity investment at cost
Share of loss after income tax
Closing carrying amount
2022
$
(467,583)
-
(467,583)
-
1,124,779
6,328,245
(116,897)
7,336,127
In March 2017, the Company finalised a strategic development JV with Richmond Vanadium Technology Pty Ltd
(“RVT”) (formerly AXF Vanadium Pty Ltd), a wholly owned subsidiary of the AXF Group. The JV covers Horizon’s
100% interest in the Richmond vanadium project in North West Queensland which include metal rights at the
nearby Julia Creek project which is owned by Global Oil Shale Plc. The project tenements cover 1,520km2 of
Cretaceous Toolebuc Formation.
In November 2021 the Company entered into a Process Deed (as amended by a Letter Deed dated 22 February
2022) with RVT in relation to a restructure and RVT’s subsequent IPO and listing. As contemplated by the Process
Deed, the Company and RVT entered into the SPA on 2 May 2022 to formally document the transfer of the
Company’s 25% beneficial interest in the tenements comprising the Richmond Joint Venture. Completion of the
SPA occurred in June 2022, whereby RVT became the holder of 100% of the beneficial interest in the tenements
comprising the Richmond Vanadium Project, in consideration for the Company being issued an amount equal to
25% of the issued share capital of RVT on a diluted basis. Horizon’s interest in the new company was 25% and
considered significant influence by management.
32 EVENTS OCCURRING AFTER REPORTING DATE
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has been financially positive for the
Group up to 30 June 2022, it is not practicable to estimate the potential impact, positive or negative, after the
reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian
Government and other countries, such as maintaining social distancing requirements, quarantine, travel
restrictions and any economic stimulus that may be provided.
The health and wellbeing of all Horizon employees remain a key focus in response to the ongoing COVID-19
pandemic. The work practices and measures implemented to mitigate COVID-19 related risks have so far proven
successful with no known COVID-19 cases across our workforce and minimal disruption to our operations to date.
On 1 July 2022, the Company announced a prospectus offer of Share Purchase Plan (SPP) shares and options
to eligible shareholders (SPP Offer) as well as an offer of placement options to placement subscribers (Placement
Options Offer). The SPP to raise $2,000,000 follows the Company’s institutional placement announced on 24
June 2022 which raised $4,000,000 before costs by issuing placement shares at 9 cents per share. For every
one share subscribed for at 9 cents per share by an eligible participant (SPP Share) as part of a share purchase
plan offer under the SPP, the eligible participant will be entitled to one free SPP option under the Prospectus. For
every one share subscribed for at 9 cents per share by a subscriber (Placement Share) in the placement
announced 24 June 2022 (Placement), the subscriber will be entitled to one free Placement option under the
Prospectus with an exercise price of 11 cents and expiry dated of 30 June 2025. The Company raised $539,591
from a total of 82 applications. Pursuant to the Prospectus disclosure announced on 1 July 2022, the Company
has reserved the right to issue the SPP shortfall to non-related parties at the Directors’ discretion and within the
next 3 months.
On 9 August 2022, the Company announced that, in relation to its 25% equity interest in Richmond Vanadium
Technology Pty Ltd (RVT), a strategic partnership has been established via a Binding Term Sheet signed with
Ultra Power Systems Pty Ltd a local Australian manufacturer of Vanadium Redox Flow Batteries.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 7 4
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
32
EVENTS OCCURRING AFTER REPORTING DATE (CONTINUED)
On the 11 August 2022, the Company advised it has reached agreement with Greenstone Resources Ltd (ASX:
GSR) to divest the Phoenix and Kangaroo Hill gold projects near Coolgardie in the Western Australian goldfields.
The divestment comprises two mining leases and two prospecting licences making up the projects. Under the
Agreement, GSR will pay $300,000 in cash and shares; $150,000 in cash on completion and $150,000 in GSR
shares at an issue price equivalent to the VWAP calculated over the 15 trading days prior to the Completion Date
and subject to a voluntary escrow period of 6 months. Completion is expected in the September quarter 2022.
On 30 August 2022, the Company announced that the acquisition of the remaining 50% interest in the Penny’s
Find gold project which was announced on the 21 December 2021 has been completed following resolution of
legacy access and compensation agreements needing to be brought up to date. All conditions precent have now
been completed, including payment to the Company of cash consideration of $527k and 3M fully paid ordinary
shares (subject to 6 months escrow).
There are no other matters or circumstances that have arisen since 30 June 2022 that have or may significantly
affect the operations, results, or state of affairs of the Group in future financial periods.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 7 5
PKF Perth
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
HORIZON MINERALS LIMITED
Report on the Financial Report
Opinion
We have audited the accompanying financial report of Horizon Minerals Limited (the “Company”) and controlled
entities (consolidated entity), which comprises the consolidated statement of financial position as at 30 June 2022,
the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, notes comprising a
summary of significant accounting policies and other explanatory information, and the Directors’ Declaration of
the Company and the consolidated entity comprising the Company and the entities it controlled at the year’s end
or from time to time during the financial year.
In our opinion the accompanying financial report of Horizon Minerals 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 2022 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.
Material Uncertainty Related to Going Concern
Without modifying our opinion, we draw attention to the financial report which indicates the consolidated entity
has incurred an operating loss of $(28,029,383) (2021: $2,447,429) and operating cash outflows of $(2,391,860)
(2021: $6,053,098) for the year ended 30 June 2022. These conditions along with other matters in note 1, indicate
the existence of a material uncertainty that may cast significant doubt about the consolidated entity’s ability to
continue as a going concern and therefore, the consolidated entity may be unable to realise its assets and
discharge its liabilities in the normal course of business.
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.
Level 4, 35 Havelock Street, West Perth, WA 6005
PO Box 609, West Perth, WA 6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions
or inactions of any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
76
PKF Perth
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) 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.
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 for the current year. The matters 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
matters below, our description of how our audit addressed the matter is provided in that context.
Carrying value of capitalised exploration expenditure
•
•
Why significant
As at 30 June 2022 the carrying value of
exploration
assets was
$29,377,548 (2021: $48,931,344), as disclosed in
Note 13.
evaluation
and
The consolidated entity’s accounting policy in
respect of exploration and evaluation expenditure
is outlined in Note 1 (e). Estimates and judgments
in relation to capitalised exploration and evaluation
expenditure is detailed at Note 2(f).
Significant judgement is required:
facts
whether
determining
In
and
circumstances indicate that the exploration and
evaluation expenditure should be tested for
impairment
in accordance with Australian
Accounting Standard AASB 6 Exploration for
and Evaluation of Mineral Resources (AASB 6)
and;
How our audit addressed the key audit matter
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 tenements
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 evidence of the consolidated entity’s
planned
future
expenditure and related work programmes.
reviewing
intention,
assessment
• considering whether exploration activities for the
areas of interest had reached a stage where a
reasonable
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
of
•
• assessing the appropriateness of the related
disclosures in Note 1 (e), Note 2(f) and Note 13.
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 areas of interest meet the
recognition conditions for an asset; and
o which elements of exploration and
evaluation
for
expenditures
capitalisation for each area of interest.
qualify
77
PKF Perth
Investment in associates
Why significant
How our audit addressed the key audit matter
The Group owns 25% of the shares in Richmond
Vanadium Technologies Pty Ltd (RVT). This
investment is accounted for under the equity
method in accordance with AASB 128 Investments
in Associates and Joint Ventures.
This is considered a key audit matter due to
proportion of the Group’s net assets it represents,
the judgment involved in determining the correct
accounting treatment, and the consideration of the
existence of any impairment indicators.
Our audit procedures in relation to the acquisition of
Richmond Vanadium Technologies Pty Ltd included:
• Obtaining
the Agreement, and other related
documents and ensuring that the transaction met
the definition of an associate under AASB 128
Investments in Associates and Joint Ventures.
• Reviewing the accounting entries in relation to the
acquisition and determining whether they were in
accordance with the Share Sale Agreement.
• Discussing the valuation methodology used by
management to determine the original purchase
price and evaluated whether there were any
potential impairment indicators.
• Obtaining other financial information specific to
RVT.
• Reviewing
the disclosures
to assess compliance with
financial
statements,
the
disclosure requirements of AASB 128 in Note 1 (z)
Note 2(g) & Note 31.
the
in
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 2022, but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon, with the exception of the Remuneration Report.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Directors’ for the Financial Report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the Directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
78
PKF Perth
In preparing the financial report, the Directors are responsible for assessing the consolidated entity’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Directors either intend to liquidate the consolidated entity or to cease
operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
consolidated entity’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the Directors.
• 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 financial report. We are responsible for
the direction, supervision and performance of the 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.
79
PKF Perth
We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the Directors, we determine those matters that were of most significance in
the audit of the financial report of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on the Remuneration Report
Opinion
We have audited the Remuneration Report included in the Directors’ Report for the year ended 30 June 2022.
In our opinion, the Remuneration Report of Horizon Minerals Limited for the year ended 30 June 2022, 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
SIMON FERMANIS
SENIOR PARTNER
28 SEPTEMBER 2022
WEST PERTH,
WESTERN AUSTRALIA
80
SHAREHOLDER INFORMATION
Additional information required by the Australian Stock Exchange Limited Listing Rules, and not disclosed elsewhere in
this report.
SHAREHOLDINGS
The numbers of ordinary shares held by the substantial shareholders as at 12 September 2022 were:
Sparta AG and Delphi Unternehmensberatung Aktiengesellschaft
61,658,490
9.92%
QUOTED SECURITES OPTIONHOLDINGS
Nature
Expiry Date
Exercise Price of
Options
Number under
Option
Number of Holders
Listed options
30 June 2025
11 cents
50,439,904
129
UNQUOTED SECURITIES OPTIONHOLDINGS
Nature
Expiry Date
Exercise Price of
Options
Number under
Option
Number of Holders
Unlisted options
30 September 2022
12 cents
12,000,000
Unlisted options
30 September 2022
16 cents
12,000,000
1
1
The holder of the above unlisted options is Sparta AG, an unrelated party.
CLASS OF SHARES AND VOTING RIGHTS
As at 12 September 2022 there were 4,322 holders of the ordinary shares, 129 holders of the listed options and 1 holder
of unlisted options of the Company. The voting rights attached to the shares are:
•
•
at a meeting of members or classes of members each member entitled to vote may vote in person or by proxy or
by attorney; and
on a show of hands every person present who is a member has one vote, and on a poll every person present in
person or by proxy or attorney has one vote for each ordinary share held.
DISTRIBUTION OF SHAREHOLDERS (as at 12 September 2022)
Category
Number of Shareholders
1
1,001
5,001
10,001
100,001
–
–
–
–
–
1,000
5,000
10,000
100,000
over
TOTAL HOLDERS
170
637
894
2,027
594
4,322
The number of shareholders holding less than a marketable parcel as at 12 September 2022 was 1,028.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 8 1
SHAREHOLDER INFORMATION
TWENTY LARGEST SHAREHOLDERS (as at 12 September 2022)
Rank
Name
SPARTA AG
No of Shares
% of
holding
31,083,333
5.00
1
2
3
4
5
6
7
8
9
10
11
12
13
14
BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD
24,480,957
3.94
BILL BROOKS PTY LTD
23,076,026
3.71
SHIPBARK PTY LIMITED
22,111,111
3.56
BNP PARIBAS NOMINEES PTY LTD
20,103,878
3.24
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
19,409,041
3.12
BNP PARIBAS NOMS PTY LTD
18,591,415
2.99
SPARTA AG
15,090,397
2.43
DELPHI UNTERNEHMENSBERATUNG AKTIENGESELLSCHAFT
14,484,760
2.33
GOLDFIELDS HOTELS PTY LTD
13,259,653
2.13
AUSTRALIAN EXECUTOR TRUSTEES LIMITED
9,656,989
1.55
MR WILLEM RAVESTEYN + MRS ROSEMARY ANNE RAVESTEYN
9,240,000
1.49
BOND STREET CUSTODIANS LIMITED
7,702,285
1.24
J&D BANKS PTY LTD
7,383,381
1.19
15 WGS PTY LTD
6,688,888
1.08
16
SHIPBARK PTY LTD
5,883,334
0.95
17 MR WILLEM RAVESTEYN + MRS ROSEMARY ANNE RAVESTEYN
5,820,000
0.94
18
BANKS PTY LTD
19 MR GODFREY WENNESS
20
CITICORP NOMINEES PTY LIMITED
5,586,850
0.90
5,355,556
0.86
5,074,987
0.82
Top 20 holders of FULLY PAID ORDINARY SHARES (Total)
270,082,841
43.46
Total Remaining Holders Balance
351,332,263
56.54
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 8 2
SHAREHOLDER INFORMATION
TWENTY LARGEST OPTIONHOLDERS (as at 12 September 2022)
Rank
Name
No of Shares
% of
holding
1
2
3
4
5
6
7
8
9
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED
6,902,577
13.68
BNP PARIBAS NOMS PTY LTD
5,222,222
10.35
SHIPBARK PTY LTD
4,333,334
8.59
SPARTA AG
3,333,333
6.61
BILL BROOKS PTY LTD
2,777,778
5.51
MR ROBERT DOBSON
2,435,951
4.83
MATTHEW BURFORD SUPER FUND PTY LTD
1,500,000
2.97
MR JOHN HENRY MATTERSON
1,222,222
2.42
SHIPBARK PTY LIMITED
1,111,111
2.20
10
CITYWEST CORP PTY LTD COPULOS SUNSHINE UNIT A/C>
1,100,000
2.18
11
EYEON NO 2 PTY LTD
12
13
MR CHRISTOPHER WILLIAM CHALWELL + MR IAN WAYNE WILSON
ABN AMRO CLEARING SYDNEY NOMINEES PTY LTD
984,156
1.95
1,100,000
2.18
1,000,000
1.98
14
GAZUMP RESOURCES PTY LTD
15
DR DAVID HARRISON
16
SPACETIME PTY LTD
17 MR GODFREY WENNESS
18
ERIC GOLF PTY LTD
19
FACILITATE CORPORATION PTY LTD
20
KHE SANH PTY LTD
950,000
1.88
777,778
1.54
577,778
1.15
555,556
1.10
473,251
0.94
450,000
0.89
450,000
0.89
Top 20 holders of LISTED OPTIONS EXP 30/06/2025 @ $0.11 (Total)
37,257,047
73.86
Total Remaining Holders Balance
13,182,857
26.14
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 8 3
TENEMENT SCHEDULE
AS AT 30 JUNE 2022
Project
Tenement
Registered Holders
Equity
Notes
BINDULI
BLACK FLAG
L26/261
M26/346
M26/499
M26/549
M26/621
P26/4056
P26/4256
P26/4331
P26/4579
P26/4580
MLA26/855
PLA26/4318
P24/5143
P24/5144
P24/5145
P24/5146
P24/5147
P24/5148
P24/5149
P24/5150
P24/5151
P24/5152
P24/5153
P24/5154
P24/5155
P24/5156
P24/5157
P24/5158
P24/5159
P24/5160
P24/5415
ELA26/220
BROAD ARROW
P24/5348
BROAD DAM
BURBANKS
CANNON
GOLD MINE
P16/2820
P16/2821
M15/731
E25/349
E25/474
E25/497
E25/551
E25/564
E25/566
E25/590
L25/43
L25/48
L25/50
L25/51
M25/182
M25/327
HRZ
BMG
HRZ
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 8 4
TENEMENT SCHEDULE
AS AT 30 JUNE 2022 (CONTINUED)
Tenement
Registered Holders
Equity
Notes
Project
CANNON
GOLD MINE
CHADWIN
M25/329
M25/330
M25/333
M25/357
P25/2365
P25/2390
P25/2449
P25/2633
P25/2668
P25/2669
P25/2670
PLA25/2733
P16/3121
P16/3156
P16/3157
COOLGARDIE
M15/119
P15/6381
P15/6382
ELA16/589
ELA16/590
ELA16/591
ELA16/592
LA15/429
LA15/430
E25/543
M26/41
M26/433
M26/534
L27/88
M27/485
P26/4064
P26/4065
P26/4156
P27/2379
P27/2380
P27/2381
P27/2382
P26/4535
GOLDEN
RIDGE
(NIMBUS)
KALPINI
KANOWNA
BELLE
(NIMBUS)
LAKEWOOD
E26/209
P26/4316
P26/4317
P26/4319
P26/4320
P26/4321
P26/4322
P26/4323
P26/4324
P26/4325
P26/4326
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 8 5
TENEMENT SCHEDULE
AS AT 30 JUNE 2022 (CONTINUED)
Project
Tenement
Registered Holders
Equity
Notes
LAKEWOOD
P26/4327
P26/4328
P26/4329
P26/4330
P26/4332
P26/4333
P26/4334
P26/4335
P26/4336
P26/4337
P26/4338
P26/4339
P26/4340
P26/4341
P26/4342
P26/4343
P26/4344
P26/4345
P26/4350
P26/4127
P26/4129
P26/4132
M15/652
M15/1204
P15/6380
PENFOLDS
ROSEHILL
WHITE FLAG
E26/168
WINDANYA
M26/616
P26/3988
P26/3989
P26/3990
P26/4078
P26/4079
P26/4080
M24/919
M24/959
P24/4817
P24/4897
P24/5046
P24/5047
P24/5048
P24/5049
P24/5050
P24/5051
P24/5052
P24/5055
P24/5056
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
HRZ
HRZ
HRZ
HRZ
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
2
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 8 6
TENEMENT SCHEDULE
AS AT JUNE 2022 (CONTINUED)
Project
WINDANYA
YARMANY
NIMBUS/
BOORARA
Tenement
Registered Holders
Equity
Notes
P24/5057
P24/5058
P24/5059
P24/5106
P24/5464
P24/5507
E15/1655
E15/1723
E16/470
E16/471
E16/493
E16/494
E16/497
E16/503
E16/506
E16/507
E16/510
E16/519
E16/521
E16/525
E16/526
P16/3212
P16/3213
E25/511
L25/32
L25/35
L25/36
L26/240
L26/252
L26/266
L26/270
L26/274
L26/275
M25/355
M26/29
M26/161
M26/277
M26/318
M26/490
M26/598
P25/2292
P25/2322
P25/2393
P25/2394
P25/2403
P25/2404
P25/2405
P25/2450
P25/2467
P25/2468
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
KOTC
KOTC
KOTC
KOTC
POLY
KOTC
POLY
POLY
POLY
KOTC
KOTC
POLY
POLY
POLY
POLY
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 8 7
TENEMENT SCHEDULE
AS AT 30 JUNE 2022 (CONTINUED)
Project
NIMBUS/
BOORARA
Tenement
Registered Holders
Equity
Notes
P25/2469
P25/2470
P25/2471
P25/2472
P25/2473
P25/2474
P25/2475
P25/2526
P25/2545
P25/2546
P25/2547
P25/2548
P25/2549
P25/2550
P25/2551
P25/2552
P25/2643
P25/2644
P25/2645
P25/2646
P25/2647
P26/4020
P26/4035
P26/4036
P26/4053
P26/4054
P26/4055
P26/4199
P26/4200
P26/4201
P26/4202
P26/4203
P26/4204
P26/4205
P26/4206
P26/4207
P26/4208
P26/4297
P26/4298
P26/4299
P26/4300
P26/4301
P26/4302
P26/4381
P26/4382
P26/4383
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
POLY
POLY
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 8 8
TENEMENT SCHEDULE
AS AT 30 JUNE 2022 (CONTINUED)
Project
Tenement
Registered Holders
Equity
Notes
NIMBUS/
BOORARA
P26/4384
P26/4385
P26/4386
P26/4405
P26/4431
PLA26/4432
P26/4467
P26/4468
P26/4478
P26/4479
P26/4505
P26/4509
P26/4510
P26/4511
P26/4512
P26/4513
P26/4514
P26/4515
P26/4516
P26/4517
P26/4518
P26/4582
P27/2265
P27/2266
P27/2267
P27/2268
P27/2269
P27/2270
P27/2271
P27/2772
P27/2273
P27/2274
P27/2275
P27/2276
P27/2387
P27/2388
P27/2389
P27/2408
P27/2429
P27/2431
P27/2432
P27/2433
P27/2434
P27/2435
P27/2436
P27/2437
P27/2438
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 2
P a g e 8 9
TENEMENT SCHEDULE
AS AT JUNE 2022 (CONTINUED)
Project
Tenement
Registered Holders
Equity
Notes
NIMBUS/
BOORARA
COOLGARDIE
P27/2446
P27/2447
P27/2448
P27/2449
P27/2466
P27/2467
P27/2474
P27/2475
P27/2476
P27/2477
P27/2478
L15/356
M15/26
M15/518
M15/637
M15/1272
M15/1361
M15/1833
M15/1834
P15/5910
PENNY’S FIND
PLA27/2480
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
1
1
1
1
1
1
1
1
1
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TENEMENT SCHEDULE
AS AT 30 JUNE 2022 (CONTINUED)
Project
Tenement
Registered Holders
Equity
Notes
Joint Ventures
Yarmany JV
Gold Tiger
E16/492
E16/499
Penny’s Find JV
M27/156
L27/90
L27/91
L27/92
L27/93
G27/1
EPM25163
EPM25164
EPM25258
EPM26425
EPM26426
Richmond JV
Abbreviations
BMG
BMG
BMG/ORM
BMG/ORM
BMG/ORM
BMG/ORM
BMG/ORM
BMG/ORM
HRZ/RVT
HRZ/RVT
HRZ/RVT
HRZ/RVT
HRZ/RVT
100%
100%
BMG 50% / ORM 50%
BMG 50% / ORM 50%
BMG 50% / ORM 50%
BMG 50% / ORM 50%
BMG 50% / ORM 50%
BMG 50% / ORM 50%
HRZ 75% / RVT 25%
HRZ 75% / RVT 25%
HRZ 75% / RVT 25%
HRZ 75% / RVT 25%
HRZ 75% / RVT 25%
3
3
4
4
4
4
4
4
5
5
5
5
5
BMG
Black Mountain Gold Ltd
ORM
Orminex Ltd
HRZ
Horizon Minerals Limited
POLY
Polymetals (WA) Pty Ltd
KOTC
Kalgoorlie Ore Treatment Company Pty Ltd
RVT
Richmond Vanadium Technology Pty Ltd (formerly AXF
Vanadium Pty Ltd)
Notes
(1)
(2)
(3)
(4)
(5)
Subject to completion of the divestment of the Gunga West gold project to FMR Investments Pty Ltd (see release dated 20 June
2022)
Royalty of A$1 per tonne of ore mined and treated from M26/616 is payable to Pamela Jean Buchhorn.
An earn-in JV whereby Gold Tiger Resources (Australia) Limited can earn 90% over 4 stages (4 years) by spending A$300,000
and paying Horizon A$120,000 non-refundable cash amounts.
A development JV whereby Horizon Minerals purchased 50% interest from Orminex Ltd, Horizon to fund first A$1M in pre-
development expenditure with the joint venture partners funding the project on a 50:50 basis thereafter. On 20 December 2021,
it was announced that Horizon reached agreement with Labyrinth Resources Ltd (ASX: LRL, formerly Orminex Ltd) to acquire
the remaining 50% of the Penny’s Find gold project.
An earn-in JV whereby Richmond Vanadium Technology (RVT) can earn 25% of the project area by spending A$1M within a
1-year period and maintaining the project in good standing – completed February 2018. RVT to solely contribute to further
expenditure of A$5m on the projects to earn a further 50% over a 3-year period – completed July 2021. Restructure and
demerger of Horizon’s 25% interest in the Richmond Vanadium Project was completed (see released dated 15 June 2022).
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163-167 Stirling Highway Nedlands WA 6009
PO Box 1104 Nedlands WA 6909
ACN 007 761 186 ABN 88 007 761 186
T 08 9386 9534
E info@horizonminerals.com.au
W horizonminerals.com.au
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