ANNUAL REPORT
2023
CONTENTS
CORPORATE PARTICULARS ....................................................................................................................................... 1
CHAIRMAN AND MANAGING DIRECTOR’S REVIEW .............................................................................................. 2
OPERATIONS REPORT ................................................................................................................................................ 3
DIRECTORS' REPORT ................................................................................................................................................. 20
AUDITOR’S INDEPENDENCE DECLARATION ......................................................................................................... 32
DIRECTORS’ DECLARATION ..................................................................................................................................... 33
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ...................... 34
CONSOLIDATED STATEMENT OF FINANCIAL POSITION .................................................................................... 35
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ..................................................................................... 36
CONSOLIDATED STATEMENT OF CASH FLOWS ................................................................................................... 37
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS ................................... 38
INDEPENDENT AUDIT REPORT TO THE MEMBERS OF HORIZON MINERALS LIMITED ................................... 73
SHAREHOLDER INFORMATION ............................................................................................................................... 78
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
Non-Executive Director (ceased as Managing Director 30 June 2023)
CHIEF EXECUTIVE OFFICER
Grant Haywood
Chief Executive Officer (appointed 1 July 2023)
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
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 3
P a g e 1
CHAIRMAN AND CEO’S REVIEW
Dear Shareholder
The 2023 financial year has been a year of substantial progress for the company despite the challenging conditions for
the junior resources sector, with poor sentiment for gold despite strong gold prices in Australian dollar terms.
Capital markets were quite volatile, particularly for junior explorers and emerging developers, but the gold price has
remained strong ranging from A$2,470-$3,063 finishing the year at A$2,858.40/oz (Source: Perth Mint).
There are continuing concerns in the 2023 financial year in the global economy with high inflation leading to most central
banks tightening monetary policy reducing liquidity and therefore available funding. The focus of the industry is on
conserving or growing cash reserves with conservatism in these volatile markets, reducing cost structures and production
costs, focussing on organic growth, and looking for opportunities with M&A at asset and corporate level to strengthen the
project resource base and/or the balance sheet. Further consolidation is anticipated in the year to come.
Locally, Western Australia and the goldfields region has managed well in this difficult environment despite severe labour
shortages and escalating costs. Access to suitably skilled workers in record low unemployment conditions presents
challenges now but also into the future as the number of tertiary and TAFE graduates continues to decline against
demand. Positively, drill rig availability has eased markedly, as has laboratory turnaround times for assays.
The Company progressed on a number of fronts during the year with exploration programs continuing in new discovery
and resource growth areas, acquisitions and divestments, underground mine studies and the successful demerger of the
25% interest in the Richmond vanadium project, including the completion of the internal restructure of the IPO vehicle
Richmond Vanadium Technology (ASX:RVT) which holds 100% of the project, which was successfully listed on the ASX
in December 2022 despite the volatile capital markets. The company retains 9% of RVT and also provided an in-specie
distribution back to shareholders and a priority offering in the IPO. A dedicated RVT Board is now in place, it is well
funded and has received significant interest in this emerging new green energy critical mineral for use in the grid scale
renewable energy storage market as RVT moves towards successful completion of the DFS in late 2024.
A range of air core, reverse circulation and diamond drilling was completed during the year with excellent results received
across the portfolio delivering resource growth and confirmation of new discoveries, some including new Nickel deposits
such as Blair North and Euston in addition to the company’s core gold business. Maiden gold resources were announced
for Coote, Baden Powell and Capricorn. Exploration work also continued at Yarmany, Lakewood and the Greater
Boorara-Cannon projects, with successful programs conducted at Golden Ridge, Pinner and Monument. Further drilling
also occurred late in the year at Penny’s Find to test additional mineralisation at depth and to the north with the aim of
increasing the underground resource.
The acquisition of the remaining 50% of the high-grade Penny’s Find underground project was also completed during
the year. This acquisition is in-line with our strategy of developing high grade – low tonnage underground and open pit
projects under the contract mining – toll milling / JV model for cash generation. The Cannon mine, the first to be
developed, has been fully permitted and funded during the year, with a sequence of underground developments proposed
to follow Cannon 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 project development. These divestments will continue in the FY2024
enabling focus on core exploration areas and to assist in funding the proposed underground developments whilst also
reducing holding costs. Further M&A shall also be explored at both corporate and asset level.
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.
Ashok Parekh
Chairman
Perth, WA
18 September 2023
Grant Haywood
Chief Executive Officer
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 3
P a g e 2
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 Company engaged BDO in 2022 to assist in developing our ESG operational plan and roadmap and our
first internal Sustainability Report. The Company will look to update is operation plan and roadmap, along with the ESG
framework and strategy during the 2023/24 financial year.
ISSUED CAPITAL
At 30 June 2023, Horizon Minerals Limited had 696,983,676 fully paid ordinary shares on issue.
COMPANY INVESTMENTS
At 30 June 2023 Horizon held the following listed investments:
Company
Securities
Greenstone Resources Ltd
Ordinary Shares
Richmond Vanadium Technology
Ltd
Ordinary Shares
ASX
GSR
RVT
Number
Spot Value at
30 June 2023
2,300,287
$39,105
19,833,363
$8,131,679
TOTAL
$8,170,784
The Company also has 8,223,684 Brightstar Resources unlisted options, exercisable at $0.057 and expiring on 30
December 2023.
As at 30 June 2023, the Company had cash on hand of approximately $5.62 million.
CORPORATE ACTIVIES
On 24 June 2022, the Company announced an equity placement of $4 million which completed and a Share Purchase
(SPP) Plan for $2 million. The equity placement was completed on 30 June 2022 with funds received from institutional
investors. The SPP was extended to 27 July 2022 and closed with funds received from existing shareholders of $539.6k.
On 30 August 2022, the Company announced the completion of acquisition of the remaining 50% interest in the Pennys
Find Project.
During the 2022 year the Company commenced work on the restructure of its 25% in the Richmond Vanadium Project
followed by the IPO of Richmond Vanadium Technology Ltd on the ASX, which was successfully completed in December
2022.
On 19 January 2023, the Company sold 37,088,333 Kingswest Resources Ltd shares for a consideration of
approximately $1.3 million.
On 28 April 2023 the Company announced the resignation of the Managing Director Mr Jon Price and his period of notice
that would complete on 30 June 2023. At the same time the Company announced that Grant Haywood the current Chief
Operating Officer was appointed as the Chief Executive Officer with a commencement date of 1 July 2023.
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.
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 3
P a g e 3
OPERATIONS REPORT
CORPORATE
DIVESTMENT OF ROYALTIES (CONTINUED)
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.
Upon receipt of the 30 June 2023 quarterly production results on the Janet Ivy Production Royalty, the deferred payment
of $3 million from Vox has been triggered and will become due and payable within 10 days of the September 2023 quarter
end. Vox, however, has an election to pay the $3 million in cash or shares, and if paid in shares are subject to a 4-month
escrow.
DIVESTMENT OF GUNGA WEST
On 17 June 2022, the Company reached agreement with FMR Investments 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 was expected to be in the H2 2022 however, a delay occurred in completing this transaction due to
obtaining third party consents.
SUBSEQUENT EVENTS
On 5 July 2023, the Company announced it had entered into a binding option and sale deed (“Option”) with Metal Hawk
Limited (ASX: MHK) to purchase an interest in seven tenements within the Company’s Yarmany project area
(“Tenements”). The Option provides that Metal Hawk pay Horizon a $400,000 non-refundable option fee within five days
of signing the Option, comprising $200,00 in cash and $200,000 in MHK shares, with the number of shares determined
by the 20-Day VWAP prior to execution. On 17 July 2023, the Company announced receipt of $200,000 in cash, and
$200,000 in MHK shares, with the number of shares determined by the 20-Day VWAP in relation to the executed Option
and Sale Deed. The MHK shares are subject to escrow for 6 months.
On 17 July 2023, the Company announced that all conditions to the divestment of the Gunga West tenements to FMR
Investments Pty Ltd have been completed.
On 30 August 2023, the Company announced it had entered into a binding option and sale deed (“Option”) with Dundas
Minerals Limited (ASX: DUN) to purchase an interest in 19 tenements within the Company’s Baden Powell and Windanya
project areas (“Tenements”). The Option relates to all mineral rights over 16 Prospecting Licences, two Mining Leases
and one Mining Lease Application. The Option provides that Dundas pay Horizon a $500,000 non-refundable option fee
which consists of $375,000 within 5 days of signing the Option, comprising $125,000 in cash and $250,000 in DUN
shares, with the number of shares determined by the 5-Day VWAP prior to execution. The final $125,000 is payable in
cash on the first 12-month anniversary of the execution 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 3
P a g e 4
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 for gold, and to leverage off its substantial landholding into other commodities, including Ni-
Co, Ag-Zn, Cu and PGE’s. In addition, the Company along with joint venture partners Richmond Vanadium Technology
(ASX:RVT) successfully transitioned the JV to a publicly listed company through a successful IPO and listed RVT on the
ASX in December 2022, with Horizon shareholders receiving shares in RVT via an in-specie distribution, and Horizon
maintaining a 9% shareholding in RVT. The Company also acquired the remaining 50% interest in the Penny’s Find gold
project from JV partner Labyrinth Resources Limited (ASX:LRL) and now owns the project 100%. The Company also
divested its Kangaroo Hills and Phoenix tenements to Greenstone Resources Limited (ASX:GSR) for $300,000 in cash
and shares. Horizon also advanced its Cannon project by securing a US$5m loan from Nebari Partners to pay the
deferred consideration for the project and to fund its development, with all necessary statutory approvals also secured
for the project.
The locations of all WA projects are shown in Figure 1.
Figure 1
Horizon Minerals Ltd WA Projects
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 3
P a g e 5
OPERATIONS REPORT
EXPLORATION AND EVALUATION
OVERVIEW (CONTINUED)
Figure 2
Horizon Minerals Ltd Kalgoorlie Area Gold Projects Location Map
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). The Company is aiming to monetise low tonnage, high grade assets via underground mining and toll
milling via a contract / JV model. The Cannon underground gold project shall be the first mine to be developed in the
coming FY2024 year. The Cannon feasibility study was released in 2022 showing good economics, with this project
being the first in a series of underground operations to be progressed, followed by Penny’s Find and Rose Hill via further
study work to bring these Mineral Resources into Ore Reserves.
UNDERGROUND GOLD PROJECTS
Horizon Minerals is focussed on bringing the Cannon and Pennys Find underground mines into production in 2024. The
high-grade ore will likely be treated at the FMR owned Greenfields plant at Coolgardie. The first planned underground
mining operation is the Cannon Gold Project which was acquired by the company in October 2021. A Feasibility Study
was competed in the March 2022 quarter.
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 3
P a g e 6
OPERATIONS REPORT
EXPLORATION AND EVALUATION
UNDERGROUND GOLD PROJECTS (CONTINUED)
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 2022.
Table 1: Summary of Cannon Underground Ore Reserves by Classification
Classification
Tonnes
g/t Au
Ounces
Proven
Probable
Total
-
135,000
135,000
-
4.1
4.1
-
17,680
17,680
The Ore Reserve reflects the mining of the Cannon Mineral Resource via underground mining methods below the existing
open pit. There is approximately 4 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 or JV partner with technical and managerial oversight
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) and loose fill. 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.
It is anticipated that the 100% owned 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 following acquiring the
remaining 50% of the project during the year and stands at:
Table 2: 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
203,000
67,000
270,000
5.45
3.60
4.99
35,000
8,000
43,000
The 100% Rose Hill gold project is the next project planned to be brought into production following Penny’s Find. The
Rose Hill resource stands at:
Table 3: Rose Hill Open Pit Mineral Resource Estimate at a 0.5g/t au cut-off grade
Classification
Tonnes (M)
g/t Au
Ounces
Measured
Indicated
Total
0.19
0.09
0.29
2.0
2.0
2.0
12,300
6,100
18,400
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 3
P a g e 7
OPERATIONS REPORT
EXPLORATION AND EVALUATION
UNDERGROUND GOLD PROJECTS (CONTINUED)
Table 4: Rose Hill Underground Mineral Resource Estimate at a 2.0g/t au cut-off grade
Classification
Tonnes (M)
g/t Au
Ounces
Indicated
Inferred
Total
0.3
0.2
0.51
4.5
4.8
4.6
47,100
27,800
74,900
EXPLORATION CANNON, MONUMENT AND PINNER
In addition to the Cannon underground operation, there is potential for two nearby small open cut operations at Monument
and Pinner to supplement the high-grade Cannon ore. The two prospects have been tested by historical drilling which
demonstrated that both had patchy mineralisation. Horizon drilled 58 infill RC holes for 2695m to help better define the
mineralisation. Significant new high-grade mineralisation intercepted at Pinner included (Figure 3, 4) 1:
o 6m @ 6.94g/t Au from 35m inc. 1m @ 35.39g/t Au from 36m (CARC22055)
o 5m @ 2.80g/t Au from 20m (CARC22053)
o 1m @ 12.03g/t Au from 17m (CARC22042)
o 9m @ 1.86g/t Au from 12m (CARC22054)
o 2m @ 4.88g/t Au from 38m (CARC22036)
o 8m @ 1.8g/t Au from 28m (CARC22046)
Significant new high-grade mineralisation intercepted at Monument (Figures 3, 5) included 1:
o 4m @ 4.63g/t Au from 68m and 4m @ 7.76g/t Au from 80m (CARC22024) 2
o 7m @ 2.40g/t Au from 59m (CARC22004)
o 5m @ 4.09g/t Au from 99m inc. 1m @ 16.13g/t Au from 99m (CARC22022)
o 4m @ 3.78g/t Au from 44m (CARC22005) 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 3
P a g e 8
OPERATIONS REPORT
EXPLORATION AND EVALUATION
EXPLORATION CANNON MONUMENT AND PINNER (CONTINUED)
The drilling confirmed that the mineralisation was variable, but that also demonstrated that there was some continuity
between sections and potential JORC resources could be established. Further drilling and maiden resources are planned
in FY2024.
Figure 3: Cannon Project area showing surrounding prospects
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 3
P a g e 9
OPERATIONS REPORT
EXPLORATION AND EVALUATION
EXPLORATION CANNON MONUMENT AND PINNER (CONTINUED)
Figure 4: Pinner drill highlights
Figure 5: Monument and Homerton drill highlights
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 3
P a g e 1 0
OPERATIONS REPORT
EXPLORATION AND EVALUATION
EXPLORATION PENNY’S FIND
After mining ceases at Cannon, it is anticipated that the 100% Horizon owned Penny’s Find gold mine shall be developed
next in the underground development project pipeline, followed by the Rose Hill project.
The high-grade gold mineralisation at Penny’s Find is hosted in narrow quartz veins at the contact between footwall
sediments including black shale and siltstone and a hanging wall basalt. The quartz veins dip about 60° to the northeast
and collectively average 1m to 5m true width. Only minor sulphides are present.
Open cut mining to 85m (242m RL) was completed by Empire Resources in 2018 with toll treatment processing at
Lakewood (Kalgoorlie) and Burbanks (Coolgardie). Production from the open pit totalled 18,300oz at 4.47g/t Au (as
announced to the ASX by Empire (ASX: ERL) on 25 July 2018).
Metallurgical test work and toll milling data from open pit ore processing has shown fresh mineralisation to be free milling
with a high gravity recoverable gold component and a total gold recovery which exceeded 90%.
During the financial 2023 year, Horizon Minerals completed 1,926m of RC and 626.4m of diamond tails. The drilling
aimed to test potential high grade depth extensions, especially to the north where drilling in 2021 identified a new high
grade lode (P1_10 5m @ 5.27 g/t Au) along the northern plunge.
Significant results are shown below and in Figures 6, 7.
o 1.45m @ 2.61g/t Au from 314.75m and 3.2m @ 4.19g/t Au from 318.3m (PFRCD23003)
o 1.05m @ 6.36g/t Au from 355.5m (PFRCD23001)
o 1.00m @ 7.49g/t Au from 363.9m (PFRCD23002)
o 2.90m @ 1.73g/t Au from 292.0m (PFRCD23007)
o 0.78m @ 12.85g/t Au from 331.48m (PFRCD23006)
Quartz reef was intersected in every hole with high grade mineralisation stretching at least 250m. Although the grade
was consistent, the ore thickness was generally thin other than in PFRCD23003. PFRCD23003 contained thicker quartz
vein (3m) and returned encouraging results of 1.45m @ 2.61g/t Au from 314.75m and 3.2m @ 4.19g/t Au from 318.3m.
Visible gold was noted in the PFRCD23003 core. Follow up drilling is planned in FY2024.
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 3
P a g e 1 1
OPERATIONS REPORT
EXPLORATION AND EVALUATION
EXPLORATION PENNY’S FIND (CONTINUED)
Figure 6: Penny’s Find 2023 Drilling Location Plan
Figure 7: Penny’s Find Long Section showing the resource and FY 2023 drilling
The third production site planned is at the Rose Hill mine in Coolgardie. Two miscellaneous licenses supporting a future
operation lodged in 2021 are still active and expected to go before a mining warden in 2024. No field activities were
completed at Rose Hill.
No other drilling or major field activities were conducted on Horizons remaining tenure and projects.
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 3
P a g e 1 2
OPERATIONS REPORT
EXPLORATION AND EVALUATION
RICHMOND VANADIUM HORIZON 9% EQUITY – BANKABLE FEASIBILITY STUDY
The Richmond Vanadium Project is located 650km west of Townsville and 250km east of Mt Isa in northwest Queensland
(Figure 8) and is owned 100% by RVT with Horizon owning 9% of RVT. The project tenements cover 1,420km2 of
Cretaceous Toolebuc Formation and the advanced Lilyvale deposit north of Richmond (Figures 9 and 10).
Figure 8
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 9 on page 14) is shown in the Table on page 18:
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 3
P a g e 1 3
OPERATIONS REPORT
EXPLORATION AND EVALUATION
RICHMOND VANADIUM HORIZON 9% EQUITY – BANKABLE FEASBILITY STUDY (CONTINUED)
RVT completed a 7,817m drilling program during 2020 at the Lilyvale vanadium deposit (Figure 99) 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 9
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 100) with progressive rehabilitation
producing a 1.6% - 1.8% vanadium pentoxide (V2O5) concentrate on site
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 3
P a g e 1 4
OPERATIONS REPORT
EXPLORATION AND EVALUATION
RICHMOND VANADIUM HORIZON 9% 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 10
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.
RVT now owns 100% of the Project and has completed the IPO process in December 2022 which included an in-specie
distribution of RVT shares back to Horizon shareholders and consequently Horizon reducing its holding from 25% to 9%.
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;
• Recently appointed RVT Managing Director Jon Price who graduated as metallurgist and holds a Masters in
Mineral Economics from the Western Australian School of Mines;
• Critical minerals specialist Dr Shaun Ren as a Non-Executive Director.
Work continues on 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 1 and 2) 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 18).
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.
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 3
P a g e 1 5
OPERATIONS REPORT
EXPLORATION AND EVALUATION
NIMBUS SILVER-ZINC PROJECT– EXPLORATION AND EVALUATION (CONTINUED)
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 initial discussions with potential equity and JV partners that have shown significant
interest in the project.
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 attending to some clean up, however, has been delayed due to access to contractors and sample validation
and final regulatory approvals for the site to make application for return of environmental bonds held by The Department
of Industry, Tourism and Trade in respect of the White Range tenements.
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 3
P a g e 1 6
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
1.0
0.5
2.0
1.5
0.6
1.0
Project
Boorara OP
Kalpini
Jacques - Peyes
Teal
Crake
Coote
Capricorn
Baden Powell
Cannon UG
Rose Hill OP
Rose Hill UG
Pennys Find
Gunga West
Golden Ridge
TOTAL
* at 30 June 2023
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
1.40
2.43 108,000
0.47
2.04
31,000
1.87
2.33
0.97
2.59
81,000
0.77
1.98
49,000
1.74
2.32
1.01
1.96
63,680
0.80
2.50
64,460
1.81
2.20
1.33
1.47
63,150
0.08
1.27
3,300
1.42
1.46
0.42
1.54
21,000
0.42
1.54
0.70
1.20
25,500
0.70
1.20
0.60
1.20
23,000
0.60
1.20
0.18
0.09
0.33
5.1
28,580
0.05
2.30
3,750
0.23
4.40
2
6,100
0.29
2.00
4.5
47,100
0.18
4.80
27,800
0.51
4.60
0.20
5.45
35,000
0.10
3.60
8,000
0.27
4.99
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
0.19
2.00
12300
Oz
448,240
139,000
130,000
128,140
66,450
21,000
25,500
23,000
32,330
18,400
74,900
43,000
59,870
30,720
1.47
1.33 62,930
13.89
1.77 791,150
7.32
1.64 386,210 22.60 1.71
1,240,290
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” (ASX:IRC) dated 12
March 2019, “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, “Kalpini Gold Project Mineral Resource Update”
dated 28 September 2021, “Gold resources increase to 1.24moz” dated 28 September 2022, “High Grade Drill results
and Resource Update for Rose Hill”, dated 4 February, 2020, Westgold (ASX:WGX )“2017 Annual Update of Mineral
Resources & Ore Reserves 26% Increase in Ore Reserve to 3.38 Million Ounces”, dated 4 September 2017, and
“Intermin’s Mineral Resources Grow 30% to over 560,000 Ounces”, (ASX:IRC) dated 19 September , 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 Golden Ridge and Gunga West Mineral Resources is based on information
compiled by Mr 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 Teal Deposit
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.
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 3
P a g e 1 7
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 Cannon and
Kalpini Deposits is based on information compiled by Messrs David O’Farrell and Stephen Godfrey. Mr O’Farrell is a
member of the Australasian Institute of Mining and Metallurgy. Mr Godfrey is a Fellow of the Australasian Institute of
Mining and Metallurgy and a member of the Australian Institute of Geoscientists. Messrs O’Farrell and Godfrey are full
time employees of Horizon Minerals Ltd. The information was prepared under the JORC Code 2012. Messrs O’Farrell
and Godfrey 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
Godfrey consent 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 Boorara and
Jacques-Peyes Deposits 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 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 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. 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.
The information in this table that relates to the Estimation and Reporting of Gold Mineral Resources at the Crake Deposit
is based on information compiled by Mr Stephen Godfrey and Ms Jill Irvin. Mr Godfrey is a Fellow of the Australasian
Institute of Mining and Metallurgy and a member of the Australian Institute of Geoscientists. Ms Irvin is a Member of the
Australian Institute of Geoscientists. Mr Godfrey are full time employee of Horizon Minerals Ltd. Ms Irvin is Principal
Geologist with Entech Ltd. The information was prepared under the JORC Code 2012. Mr Godfrey and Ms Irvin 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’. Mr Godfrey and Ms Irvin consent 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 Coote,
Capricorn and Baden Powell Deposits is based on information compiled by Mr Stephen Godfrey. Mr Godfrey is a Fellow
of the Australasian Institute of Mining and Metallurgy and a member of the Australian Institute of Geoscientists. Mr
Godfrey are full time employee of Horizon Minerals Ltd. The information was prepared under the JORC Code 2012. Mr
Godfrey has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and
to the activity 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 Godfrey consents to the inclusion
in this report of the matters based on their information in the form and context in which they appear.
Horizon Minerals Limited – Summary of Vanadium / Molybdenum Mineral Resources
Project
Cut-off
grade
(%)
Tonnage
(Mt)
Rothbury (Inferred)
0.30
1,202
Lilyvale (Indicated)
0.30
Lilyvale (Inferred)
Manfred (Inferred)
0.30
0.30
TOTAL
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
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 3
P a g e 1 8
OPERATIONS REPORT
EXPLORATION AND EVALUATION
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
Ag (g/t)
Au (g/t)
Zn (%)
Ag (Moz)
Au
('000oz)
Zn ('000t)
3.62
3.18
5.28
12.08
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
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 3
P a g e 1 9
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 2023 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*
*Mr Price stepped down as Managing Director effective 30 June 2023 and moved into the role of Non-Executive Director
from 1 July 2023. Former Chief Operating Officer Grant Haywood was appointed Chief Executive Officer effective 1 July
2023.
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:
- Kingwest Resources Limited (ASX: KWR) (Appointed 2 May 2022)
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, Resigned 18 November 2021)
-
- Adriatic Metals PLC (ASX: ADT) (Appointed 16 February 2018)
Jonathan Price, Non-Executive 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.
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 3
P a g e 2 0
DIRECTORS' REPORT
Jonathan Price, Non-Executive Director (Continued)
Directorships held in other listed companies in the past 3 years:
- Kingwest Resources Limited (ASX: KWR) (Appointed 18 September 2019, Resigned 2 May 2022)
- Richmond Vanadium Technology Limited (ASX: RVT) (Appointed 14 June 2022)
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 2023, after providing for income tax, amounted to $1,009,710
(2022: Loss $28,029,383).
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 27 July 2022, the Group announced that through a Share Purchase Plan Offer, 5,995,459 Shares of 9 cents
per Share with free attaching Options with an exercise price of 11 cents and expiry date 30 June 2025 totalling
$539,591 was raised with a further $128,800 (1,431,111 Shares + $1,431,111 Listed Options) of Shortfall which
closed in October 2022. 50,439,904 free attached Listed Options were issued which included Placement
participants.
On 11 August 2022, the Group divested its Phoenix and Kangaroo Hill gold projects near Coolgardie to
Greenstone Resources Ltd (ASX: GSR). The divestment of 100% interest in the projects to Greenstone
Resources Ltd was completed in October 2022 on the following terms:
• $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 pf 6 months.
•
On 30 August 2022, the Group completed the acquisition of the remaining 50% interest of the Penny’s Find gold
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 3
P a g e 2 1
DIRECTORS' REPORT
SIGNIFICANT CHANGES IN STATE OF AFFAIRS (continued)
•
•
•
•
•
On 19 October 2022, the Group executed a binding term sheet with Nebari Partners LLC for a US$5 million senior
secured credit facility. The credit facility is comprised of a two tranche Convertible Loan facility with US$2 million
in Tranche 1 and US$3 million in Tranche 2. In November 2022, the Group executed a detailed Loan Agreement
and General Security Deed wit Nebari Partners LLC for the secured credit facility and shareholder approval was
granted on 25 November 2022. Tranche 1 of US$2 million was received on 30 November 2022.
On 13 December 2022, Richmond Vanadium Technology (ASX: RVT) listed on the Australian Stock Exchange.
The Group’s shareholders received by way of capital reduction and in-specie distribution of approximately
20,000,000 RVT shares previously held by the Group to Eligible Group shareholders.
On 19 January 2023, the Group divested 37,088,333 Kingwest Resources Ltd (ASX: KWR) Fully Paid Ordinary
Shares at a price of 3.5 cents per share totalling $1.3 million.
On 30 March 2023, the Group received firm bids to place approximately 74.1 million shares at $0.045 per share
to raise approximately $3.34 million. The Placement successfully completed on 4 April 2023.
On 28 April 2023, the Group announced upcoming Board and Management changes. Mr Jon Price has resigned
as Managing Director effective 30 June 2023 and moved into the role of Non-Executive Director on 1 July 2023.
Mr Grant Haywood is promoted to Chief Executive Office effective 1 July 2023.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
On 5 July 2023, the Company announced it had entered into a binding option and sale deed (“Option”) with Metal Hawk
Limited (ASX: MHK) to purchase an interest in seven tenements within the Company’s Yarmany project area
(“Tenements”). The Option provides that Metal Hawk pay Horizon a $400,000 non-refundable option fee within five days
of signing the Option, comprising $200,00 in cash and $200,000 in MHK shares, with the number of shares determined
by the 20-Day VWAP prior to execution. On 17 July 2023, the Company announced receipt of $200,000 in cash, and
$200,000 in MHK shares, with the number of shares determined by the 20-Day VWAP in relation to the executed Option
and Sale Deed. The MHK shares are subject to escrow for 6 months.
On 17 July 2023, the Company received $300,000 cash as final consideration for the 100% divestment of its interest in
the Gunga West gold project to FMR Investments Pty Ltd (ASX: FMR).
On 30 August 2023, the Company announced it had entered into a binding option and sale deed (“Option”) with Dundas
Minerals Limited (ASX: DUN) to purchase an interest in 19 tenements within the Company’s Baden Powell and Windanya
project areas (“Tenements”). The Option relates to all mineral rights over 16 Prospecting Licences, two Mining Leases
and one Mining Lease Application. The Option provides that Dundas pay Horizon a $500,000 non-refundable option fee
which consists of $375,000 within 5 days of signing the Option, comprising $125,000 in cash and $250,000 in DUN
shares, with the number of shares determined by the 5-Day VWAP prior to execution. The final $125,000 is payable in
cash on the first 12-month anniversary of the execution date.
There are no other matters or circumstances that have arisen since 30 June 2023 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 2023.
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 3
P a g e 2 2
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:
Directors
Direct Interest
Indirect Interest
Shares
Ordinary Shares
Total Holdings
Ashok Parekh
Peter Bilbe
Jonathan Price
SHARES UNDER OPTION
-
-
5,200,000
24,084,407
2,480,000
-
24,084,407
2,480,000
5,200,000
Unissued ordinary shares of Horizon Minerals Limited under option as at the date of this report are as follows:
Nature
Expiry Date
Exercise Price of
Options
HRZOB: Listed Options
30 June 2025
$0.097
Number under
Option
51,871,015
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.
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 3
P a g e 2 3
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 (appointed Chief Executive Officer 1 July 2023)
Short Term Benefits
Long Term Benefits
Salary &
Wages
$
Directors’
Fee
$
Share
based
payments
$
Superannuation
$
Total
$
Performance
Related
%
Name
Ashok Parekh
Year
2023
(Non-Executive Chairman)
2022
Peter Bilbe
(Non-Executive Director)
Jonathan Price
(Managing Director)
Other KMP
2023
2022
2023
2022
-
-
-
-
572,006
502,246
Julian Tambyrajah
2023
335,500
(Chief Financial Officer &
Company Secretary)
Grant Haywood
(Chief Operating Officer)
2022
335,500
2023
2022
342,485
342,485
72,000
19,535
7,560
99,095
72,000
27,998
7,200
107,198
54,000
11,163
54,000
15,999
-
-
-
-
-
-
55,815
79,993
24,085
32,927
24,085
32,927
5,670
5,400
70,833
75,399
27,500
655,321
27,500
609,739
27,500
387,085
27,500
395,927
27,500
394,070
27,500
402,912
19.71
26.12
15.76
21.22
8.52
13.12
6.22
8.32
6.11
8.17
Total
Total
2023
1,249,991
126,000
134,683
95,730
1,606,404
2022
1,180,231
126,000
189,844
95,100
1,591,175
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 3
P a g e 2 4
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)
2023
80%
2022
74%
2023
0%
Peter Bilbe
84%
79%
0%
(Non-Executive Director)
Jonathan Price
91%
87%
0%
2022
0%
0%
0%
2023
20%
2022
26%
16%
21%
9%
13%
(Managing Director)
Other KMP
Julian Tambyrajah
94%
92%
0%
0%
6%
(Chief Financial Officer &
Company Secretary)
Grant Haywood
94%
92%
0%
0%
6%
(Chief Operating Officer)
8%
8%
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 2023, 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.
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 3
P a g e 2 5
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 (appointed Non-Executive Director 1 July 2023)
Agreement Commenced
1 January 2016 (ceased as Managing Director 30 June 2023)
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.
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 3
P a g e 2 6
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
Name
Title
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 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.
Grant Haywood
Chief Operating Officer (appointed Chief Executive Officer 1 July
2023)
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 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.
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 3
P a g e 2 7
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:
2023
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
9,928,927
8,908,873
Peter Bilbe
1,980,000
500,000
Jonathan Price
4,500,000
700,000
Other KMP
Julian
Tambyrajah
-
-
Grant Haywood
2,350,000
55,600
TOTAL
31,894,353
2,220,054
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Balance at the
end of the
year
24,084,407
2,480,000
5,200,000
-
2,405,600
31,764,407
Balance at the
end of the
year
23,064,353
1,980,000
4,500,000
-
2,350,000
31,894,353
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 3
P a g e 2 8
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 2023
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.
Ashok Parekh
700,000
19,535
Peter Bilbe
400,000
11,163
Jonathan Price
2,000,000
55,815
Other KMP
Julian Tambyrajah
1,000,000
24,085
Grant Haywood
1,000,000
24,085
TOTAL
5,100,000
134,683
-
-
-
-
-
-
-
-
-
-
-
-
(700,000)
(400,000)
(2,000,000)
(1,000,000)
(1,000,000)
(5,100,000)
Value
expensed
in
2022/23^
$
19,535
11,163
55,815
24,085
24,085
134,683
-
-
-
-
-
-
Value to be
expensed*
$
-
-
-
-
-
-
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
(500,000)
1,000,000
32,927
(500,000)
1,000,000
32,927
19,535
11,163
55,815
24,085
24,085
(2,550,000)
5,100,000
189,844
134,683
* Maximum value to be expensed in future periods if all vesting conditions are met.
^ All performance rights have lapsed or been forfeited; therefore, these amounts represent no value to the individual at year end.
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 I
Cancelled
Class J
No.
No.
Total
No.
Ashok Parekh
350,000
350,000
700,000
Peter Bilbe
200,000
200,000
400,000
Jonathan Price
1,000,000
1,000,000
2,000,000
Other KMP
Julian Tambyrajah
500,000
500,000
1,000,000
Grant Haywood
500,000
500,000
1,000,000
TOTAL
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 3
P a g e 2 9
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 $179,132 is included in
the Statement of Financial Performance and Statement of Changes in Equity for the year ended 30 June 2023 (2022 -
$296,135), of which $134,683 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 2023, 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 3
P a g e 3 0
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 2023. 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 33 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 2023, 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 2022 to 30 June
2023 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:
Ashok Parekh
Director
Perth, WA
18 September 2023
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 3
P a g e 3 1
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 2023, 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
SENIOR PARTNER
18 SEPTEMBER 2023
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
Page 32
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.
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 34 to 72 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 2023 and of the performance for the year
ended on that date of the Group; and
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 Chief Executive Officer 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.
2.
3.
4.
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:
Ashok Parekh
Director
Perth, WA
18 September 2023
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 3
P a g e 3 3
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
Continuing Operations
Gold sales
Interest income
Initial recognition of investment in association
Gain on demerger
Other income
Total revenue from Continuing Operations
Cost of sales
Exploration and evaluation expenditure
Depreciation expenses
Note
2023
$
2022
$
3
31
32
4
81,882
3,321,121
20,105
8,954
-
6,328,245
8,663,873
-
338,850
3,367,952
9,104,710
13,026,272
5
(627)
(2,062,288)
(2,946,794)
(1,776,781)
(77,175)
(331,347)
Net change in fair value of financial assets at fair value through profit or
loss
10
(535,889)
(1,846,000)
Employee benefits expense
Share based payments
Building and occupancy costs
Consultancy and professional fees
Impairment provision
Interest expenses and finance charges
Impairment of Receivables
24
5
(2,123,402)
(2,043,609)
(179,132)
(296,135)
(101,513)
(93,011)
(631,138)
(508,039)
13a
(3,003,901)
(31,017,868)
(689,861)
(44,176)
(11,598)
-
Share of losses of associates accounted for using the equity method
31
-
(116,897)
Other expenses
(652,199)
(919,504)
Fair value (loss)/gain on derivative liability
29d
838,809
-
Profit/(Loss) from continuing operations before income tax
(1,009,710)
(28,029,383)
Income tax (expense)/benefit
Profit/(Loss) for the year
Other comprehensive income
7
-
-
(1,009,710)
(28,029,383)
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
-
-
-
-
(1,009,710)
(28,029,383)
Basic earnings/(loss) per share
Diluted earnings/(loss) per share
2023
2022
20
20
(0.16) dollars
(4.93) dollars
(0.16) dollars
(4.93) dollars
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 3
P a g e 3 4
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
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
Note
2023
$
2022
$
8
9
10
11
12
5,623,808
5,406,635
533,485
1,264,542
6,157,293
6,671,177
8,170,784
2,328,475
257,927
257,927
384,410
427,808
Exploration and evaluation expenditure
13a/b
29,733,516
29,377,548
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
Convertible note liability and derivative
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
14
31
15
14
16
14
17
31,610
79,024
-
7,336,127
38,578,247
39,806,909
44,735,540
46,478,086
378,706
4,466,961
35,516
50,686
6,929,786
-
316,057
346,173
7,660,065
4,863,820
-
35,516
1,601,117
1,454,400
182,750
124,350
1,783,867
1,614,266
9,443,932
6,478,086
35,291,608
40,000,000
18a
19a
66,211,489
70,089,303
-
835,750
19b
(30,919,881)
(30,925,053)
35,291,608
40,000,000
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 3
P a g e 3 5
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
Group
Contributed
Equity
Asset
Revaluation
Reserve
Share based
payment
Reserve
Accumulated
Losses
Total Equity
$
$
$
$
$
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
Balance at 1 July 2022
Shares issued during the year
Share issue costs
Performance rights vesting
In-species return of capital
70,089,303
4,227,779
(105,593)
-
(8,000,000)
Share based payments reclassified to
accumulated losses
Options expired reclassified to accumulated losses
Total comprehensive profit/(loss) for the year
-
-
-
Balance at 30 June 2023
66,211,489
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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
835,750
(30,925,053) 40,000,000
-
-
179,132
-
-
-
-
-
4,227,779
(105,593)
179,132
(8,000,000)
(433,005)
433,005
(581,877)
581,877
-
-
-
(1,009,710)
(1,009,710)
- (30,919,881) 35,291,608
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 3
P a g e 3 6
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
Cash flows from operating activities
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
2023
$
2022
$
255,595
269,955
(2,737,714)
(2,152,809)
20,036
8,942
(4,430,268)
(1,776,781)
(627)
(2,062,288)
81,882
3,321,121
-
-
Net cash inflow/(outflow) from operating activities
23a
(6,811,096)
(2,391,860)
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
(36,500)
(282,528)
36,182
5,000
(3,226,800)
(2,500,000)
475,000
475,000
Payments for capitalised exploration and evaluation expenditure
(2,962,447)
(7,549,115)
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
Proceeds from issue of convertible notes
Proceeds from issues of shares
Share issue costs
Interest paid
Borrowing costs
Payments for lease liability
Net cash (outflow)/inflow from financing activities
Net increase/(decrease) in cash and cash equivalents
-
-
-
(754,065)
1,758,071
3,473,075
(3,956,494)
(7,132,633)
7,254,309
-
4,004,579
4,000,000
(105,593)
(337,096)
(6,715)
(111,131)
-
-
(50,686)
(47,741)
10,984,763
3,615,163
217,173
(5,909,330)
Cash and cash equivalents at the beginning of the financial year
5,406,635
11,315,965
Cash and cash equivalents at the end of the financial year
8
5,623,808
5,406,635
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 3
P a g e 3 7
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 2023 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 18 September 2023.
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 2023, 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 2022.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are
not yet mandatory, have not been early adopted by the company for the annual reporting period ended 30
June 2023.
The Company has also reviewed all new Standards and Interpretations that have been issued but are not
yet effective for the year ended 30 June 2023. 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 $1,009,710 (30 June
2022: loss of $28,029,383) and had cash outflows from operating activities of $6,811,096 for the year
ended 30 June 2023 (30 June 2022: outflows of $2,391,860). As at that date, the Company had net current
liabilities of $1,502,772 (30 June 2022: net current assets of $1,807,357) and continues to incur
expenditure on its exploration tenements drawing on its cash balances. As at 30 June 2023 the Group had
$5,623,808 (30 June 2022: $5,406,635) 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 3
P a g e 3 8
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 2023, 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.
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 3
P a g e 3 9
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 3
P a g e 4 0
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 2023, 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 3
P a g e 4 1
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 3
P a g e 4 2
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 2023.
(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 2023.
(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.
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 3
P a g e 4 3
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1o
Financial Liabilities
Financial liabilities are initially measured at fair value.
Financial liabilities including trade and other payables, loans and borrowings, deferred contingent
considerations and the debt component of convertible notes are measured subsequently at amortised cost.
The effective interest method is a method of calculating the amortised cost of a financial liability and of
allocating interest expense over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash payments (including all fees paid or received that form an integral part of
the effective interest rate, transaction costs and other premiums or discounts) through the expected life of
the financial liability, or (where appropriate) a shorter period, to the amortised cost of a financial liability.
Financial liabilities at FVTPL, including those warrants issued which meet the definitions of a financial
liability in accordance with the substance of the contractual arrangements, are initially measured at fair
value and subsequently measured at fair value at each reporting date. Any gains and losses arising on
changes in fair value are recognised in profit or loss to the extent that they are not part of a designated
hedging relationship.
(i)
Classification of Debt and Equity Instruments
Convertible loan notes issued by the Group are classified as either financial liabilities or equity in
accordance with the substance of the contractual arrangements and the definitions of a financial
liability and an equity instrument.
A conversion option that will be settled by the exchange of a fixed amount of cash for a variable
number of the Company’s own equity instruments is considered a financial liability. The conversion
features that fail the equity classification are accounted for as derivative financial liabilities and are
accounted for separately from their host debt component. Derivative financial liabilities are
recognised initially at fair value at the date a derivative contract is entered into and are subsequently
remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in
profit or loss immediately.
A conversion option that will be settled by the exchange of a fixed amount of cash for a fixed number
of the Company’s own equity instruments is considered an equity component. The conversion
feature classified as equity is not required to be revalued at each reporting date.
The option derivatives embedded in the convertible notes are assessed to determine whether it is
to be separated from its debt host contract on the basis of the stated terms of the option feature.
The debt component of convertible notes is subsequently measured at amortised cost as described
above. The effective interest charged on the debt host contract is reported in interest expenses
and finance charges.
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.
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 3
P a g e 4 4
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1q
Fair value measurement
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.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that
reflects the significance of the inputs used in making the measurements. Classifications are reviewed at
each reporting date and transfers between levels are determined based on a reassessment of the lowest
level of input that is significant to the fair value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal
expertise is either not available or when the valuation is deemed to be significant. External valuers are
selected based on market knowledge and reputation. Where there is a significant change in fair value of
an asset or liability from one period to another, an analysis is undertaken, which includes a verification of
the major inputs applied in the latest valuation and a comparison, where applicable, with external sources
of data.
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 3
P a g e 4 5
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 3
P a g e 4 6
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
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.
2b
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 3
P a g e 4 7
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
2
CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS (CONTINUED)
2c
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.
2d
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.
2e
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.
2f
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 3
P a g e 4 8
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
3 INTEREST INCOME
Interest income
4
OTHER INCOME
Profit/(loss) on sale of investments
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
2023
$
2022
$
20,105
8,954
(13,731) 1,112,284
100,000
100,000
209,197
164,945
-
28,557
43,384
1,962,166
338,850
3,367,952
627
2,062,288
627
2,062,288
26,268
3,793
47,414
24,038
101,513
1,252
6,738
47,414
37,607
93,011
132,386
126,436
132,386
126,436
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 3
P a g e 4 9
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.
2023
Revenue
Profit/(loss) before income tax
Vanadium/
Molybdenum
$
-
-
Gold
$
81,882
(493,926)
Total
$
81,882
(493,926)
Total segment assets
241,920
30,699,029
30,940,949
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
6a
Segment revenue
Segment revenue reconciles to revenue from continuing operations as follows:
Segment revenue
Interest revenue
Other revenue
Revenue from continuing operations
2023
$
2022
$
81,882
3,321,121
20,105
8,954
62,309
3,367,952
164,296
6,698,027
6b
Segment profit/(loss)
Segment profit/(loss) reconciles to total comprehensive income as follows:
Segment profit/(loss) before income tax
Interest revenue
(493,926)
(26,075,440)
20,105
8,954
Net change in value of financial assets at fair value through profit & loss
(535,889)
(1,846,000)
Items that may be reclassified subsequently to profit or loss
-
-
Profit/(Loss) before income tax
(1,009,710)
(27,912,486)
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 3
P a g e 5 0
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
2023
$
2022
$
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:
30,940,949
38,742,976
13,794,591
7,735,110
44,735,540
46,478,086
Profit/(Loss) from continuing operations after income tax expense
(1,009,710) (28,029,383)
Income tax expense/(benefit) calculated at 25% (2022: 25%)
(252,428)
(7,007,346)
Capital raising cost allowable
(95,078)
(92,817)
(347,506)
(7,100,163)
Movements in unrecognised timing differences
(2,481,881)
749,865
Expenses that are not deductible in determining taxable profit
130,166
154,608
Movement in share revaluations
133,972
461,500
Assessable gain on transfer of interest in Richmond Vanadium Project
Benefit of tax losses utilised not previously brought to account
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 (2023: 25%, 2022: 25%) have not been
brought to Account:
-
-
-
4,987,500
(1,422,002)
2,168,692
2,565,249
-
-
-
-
-
Unrecognised deferred tax asset – tax losses
Unrecognised deferred tax asset – capital losses
22,553,987 19,738,176
1,552,105
-
Unrecognised deferred tax liability – capitalised exploration expenses
(6,557,310)
(6,347,859)
Unrecognised deferred tax asset/(liability) – share investments
334,880
908,753
Unrecognised deferred tax asset – other temporary differences
415,037
389,972
Equity accounted investments
-
(3,153,468)
Net deferred tax assets/(liability) not brought to account
18,298,699 17,842,510
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 3
P a g e 5 1
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
2023
$
2022
$
7
INCOME TAX (CONTINUED)
7c
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
5,623,808
5,406,635
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
5,623,808
5,406,635
5,623,808
5,406,635
367,306
93,222
-
Other receivables – sale of tenement – deferred payment (i)
-
800,000
Prepayment and other receivables
Accrued interest
Term deposit – bonds & credit card security deposit
149,000
354,209
79
11
17,100
17,100
533,485
1,264,542
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 3
P a g e 5 2
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
9
TRADE AND OTHER RECEIVABLES (CONTINUED)
(i) During the period to 30 June 2023, the Company received $300,000 being the second of three deferred payments for
the 100% divestment of its interest in the Nanadie Well Copper project to Cyprium Metals Limited (ASX: CYM) in
September 2020. The payment was made in cash in lieu of shares. The final tranche of $200,000 was derecognised as
a receivable during the period.
In June 2023, the Company transferred $300,000 from ‘Other receivables’ to ‘Trade receivables’ when it invoiced FMR
Investments Pty Ltd (ASX: FMR) as final consideration for the 100% divestment of its interest in the Gunga West gold
project.
2023
$
2022
$
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 and options in listed companies at market value
8,170,784
2,328,475
8,170,784
2,328,475
Included is $39,105 of shares held in Greenstone Resources Limited (2022:
$nil) and $8,131,679 of shares held in Richmond Vanadium Technology
Limited (2022: $Nil).
The net change in fair value on financial assets at fair value through profit or
loss for the year was a loss of $535,889.
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 fair value measurement.
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 3
P a g e 5 3
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
2023
$
2022
$
4,861,502
4,877,228
(4,634,412)
(4,618,715)
227,090
258,513
322,571
322,571
(176,697)
(169,658)
145,874
152,886
214,643
250,361
(203,197)
(233,952)
11,446
16,409
384,410
427,808
258,513
185,230
-
109,716
36,500
282,529
(1,083)
(937)
(66,840)
(318,025)
-
-
227,090
258,513
152,886
270,823
-
(109,716)
(7,012)
(8,221)
145,874
152,886
16,409
22,330
-
-
(1,638)
(3,325)
(816)
(5,105)
11,446
16,409
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 3
P a g e 5 4
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
2023
$
2022
$
29,377,548
48,931,342
2,545,842
7,613,852
-
(1,124,778)
950,000
5,000,000
(135,973)
(25,000)
(3,003,901)
(31,017,868)
29,733,516
29,377,548
-
-
-
-
-
-
-
-
-
-
29,733,516
29,377,657
-
-
-
-
-
-
-
-
-
-
13
EXPLORATION, EVALUATION, DEVELOPMENT AND PRODUCTION
EXPENDITURE
During the year ended 30 June 2023, 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 2023, impairment to mining tenements was
recorded as $3,003,901. Management considered recent ASIC guidance and other
relevant factors and has determined that the Kalpini project has little potential of
being mined and have therefore impaired the carrying amount of Exploration and
Evaluation related to the Kalpini deposit.
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 3
P a g e 5 5
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
Amortisation
Closing balance
Lease liability
Opening balance
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
2023
$
2022
$
79,024
126,438
(47,414)
(47,414)
31,610
79,024
86,202
133,943
(54,479)
(54,479)
3,793
35,516
35,516
-
35,516
6,738
86,202
50,686
35,516
86,202
47,414
47,414
47,414
47,414
The total cash outflow for the lease in the twelve months to 30 June 2023 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 which was executed.
15
TRADE AND OTHER PAYABLES
Trade payables
Accrued expenses
2023
$
2022
$
319,674
4,361,473
59,032
105,488
378,706
4,466,961
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 3
P a g e 5 6
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
16
CONVERTIBLE NOTE LIABILITY AND DERIVATIVE
Convertible note liability
Convertible note derivative
2023
$
2022
$
5,752,850
1,176,936
6,929,786
-
-
-
On 23 November 2022 the Company entered into an agreement with Nebari
Gold Fund 1, LP pursuant to which it issued convertible notes with an
aggregate principal value of USD$5,102,040 in two tranches. The first
tranche of USD$2,040,816 was received on 29 November 2022 equivalent
to a drawdown amount of AUD$2,828,878 and the second tranche of
USD$3,061,224 was received on 13 June 2023 equivalent to a drawdown
amount of AUD$4,425,431. The convertible note has a 30-month maturity
term.
The convertible note can be converted into shares in the Company at the
option of the Lender, in multiple parts, and at any time prior to the 29 May
2025 or to the principal amount being repaid, whichever is realised first.
If the notes are converted, the conversion price will be an amount equal to a
25% premium to the 15-day VWAP of the Company’s share price at the
lowest of:
a) 29 September 2022;
b)
the completion date of the loan agreement between the Company and
Nebari Gold Fund 1, LP, executed on 23 November 2002; and
c) 19 October 2022.
The conversion feature of the notes has been recognised at fair value as a
convertible note derivative. The reconciliation for the movements in the
convertible note features is shown in Note 29d Fair Value Measurement.
17
PROVISIONS
Rehabilitation of mine site
1,601,117
1,454,400
1,601,117
1,454,400
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 3
P a g e 5 7
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
18
CONTRIBUTED EQUITY
18a Share capital
At the beginning of the year
612,419,645
567,975,200 70,089,303
66,426,399
2023
No.
2022
No.
2023
$
2022
$
Placement
Share Purchase Plan
Labyrinth Resources Limited – Acquisition*
In-species return of capital - RVTRVT
Capital raising costs
74,137,461
44,444,445
3,336,186
4,000,000
7,426,570
3,000,000
-
-
- 668,393393
223,200
(8,000,000)
-
-
-
(105,593)
(337,096)
-
-
-
Total Contributed Equity
696,983,676
612,419,645
66,211,489
70,089,303
*Escrowed to 30 August 2023
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.
18c Options
Exercise Price
Expiry date
Unlisted
Options No.
Unlisted
Options No.
Listed
Options No.
Total
No.
$0.12
$0.16
$0.11
30 Sept 2022
30 Sept 2022
30 June 2025
Balance at 1 July 2022
12,000,000
12,000,000
-
24,000,000
Issued during the year
Expired during the year
-
-
51,871,015
51,871,015
(12,000,000)
(12,000,000)
-
(24,000,000)
Balance at 30 June 2023
-
-
51,871,015
51,871,015
Exercise Price
Expiry date
Unlisted
Options No.
Unlisted
Options No.
Total
No.
$0.12
$0.16
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
-
-
-
-
-
-
Balance at 30 June 2022
12,000,000
12,000,000
24,000,000
18d Performance Rights
As at 30 June 2023, there were nil performance rights on issue. 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 3
P a g e 5 8
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 reclassified to profit or loss
Share based payments reclassified to profit or loss
Reclassified subsequently to profit or loss
Closing Balance
Total Reserves
19b Accumulated losses
Opening balance
Reserves reclassified to accumulated losses
2023
$
2022
$
-
-
-
-
-
-
835,750
747,003
179,132
296,135
(581,877)
-
(433,005)
(207,388)
-
-
-
-
835,750
835,750
(30,925,053)
(3,103,058)
1,014,882
207,388
Reserves reclassified subsequently to accumulated losses
-
-
Profit/(loss) for the year
Closing balance
(1,009,710)
(28,029,383)
(30,919,881)
(30,925,053)
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.
(1,009,710)
(28,029,383)
(0.16) dollars
(4.93) dollars
(0.16) dollars
(4.93) dollars
Number
Number
638,834,076
567,975,200
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 3
P a g e 5 9
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
In-species return of capital – RVT
Share based payment
Unwind expired share-based payments
Net change in fair values of financial assets at fair value through profit or
loss
Loss/(profit) on sale of investments
Profit on sale of tenements and non-current assets
Impairment loss on tenements
Interest and borrowing costs
Movement in assets and liabilities relating to operating activities:
Provisions
Receivables
Prepayments
Lease liabilities
Trade creditors and accruals
Net cash inflow/(outflow) from operating activities
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 3
P a g e 6 0
2023
$
2022
$
131,515
131,515
87,190
87,190
2023
$
2022
$
1,375,991
1,306,231
95,730
95,100
134,683
189,844
1,606,404
1,591,175
(1,009,710)
(28,029,383)
124,590
378,761
-
116,897
(8,066,667)
-
179,132
296,135
(433,005)
(207,388)
535,889
1,846,000
13,731
(2,657,284)
(15,288)
(403,245)
3,003,901
24,689,623
689,861
-
28,284
97,170
(55,777)
(197,747)
(13,166)
(11,267)
-
-
(1,792,871)
1,689,868
(6,811,096)
(2,391,860)
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
24
SHARE BASED PAYMENTS
24a Year ended 30 June 2023
During the year ended 30 June 2023, 7,066,667 of Class I and J performance rights were cancelled.
The performance rights were granted at nil consideration and did not have an exercise price.
The Performance Rights were 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.
The Performance Conditions relating to Performance Rights were as follows:
Class of Performance Rights
Service Condition
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 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 2023, $179,132 was expensed as a share based payment in the respect of Class I and J
performance rights, with the fair value being recognised over the vesting period. As of 30 June 2023, there were
no performance rights on issue.
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 3
P a g e 6 1
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
24
SHARE BASED PAYMENTS (CONTINUED)
24a Year ended 30 June 2023 (continued)
Set out below is a summary of the performance rights previously granted:
Number granted
Grant date
Expired
Class I.1
Cancelled
Class J.1
Total
1,550,000
1,550,000
3,100,000
26-Nov-20
26-Nov-20
Expiry date of milestone achievements
31-Dec-22
31-Dec-23
Share price hurdle
Fair value per right*
25 cents
30 cents
0.0741
0.0782
Total fair value that would be recognised over the
vesting period if rights are vested
114,855
121,210
236,065
Number granted
Grant date
Class I.2
Class J.2
Total
1,500,000
1,500,000
3,000,000
26-Nov-20
26-Nov-20
Expiry date of milestone achievements
31-Dec-22
31-Dec-23
Share price hurdle
Fair value per right*
25 cents
30 cents
0.0627
0.0675
Total fair value that would be recognised over the
vesting period if rights are vested
94,050
101,250
195,300
Number granted
Grant date
Class I.3
Class J.3
Total
333,333
333,334
666,667
26-Nov-20
26-Nov-20
Expiry date of milestone achievements
31-Dec-22
31-Dec-23
Share price hurdle
Fair value per right*
25 cents
30 cents
0.0663
0.0714
Total fair value that would be recognised over the
vesting period if rights are vested
22,100
23,800
45,900
Number granted
Grant date
Class I.4
Class J.4
Total
505,000
505,000
1,010,000
30-Aug-21
30-Aug-21
Expiry date of milestone achievements
31-Dec-22
31-Dec-23
Share price hurdle
Fair value per right*
25 cents
30 cents
0.0436
0.0554
Total fair value that would be recognised over the
vesting period if rights are vested
2,180
2,770
4,950
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 3
P a g e 6 2
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
24
SHARE BASED PAYMENTS (CONTINUED)
24a Year ended 30 June 2023 (continued)
Number granted
Grant date
Class I.5
Class J.5
Total
100,000
100,000
200,000
08-Oct-21
08-Oct-21
Expiry date of milestone achievements
31-Dec-22
31-Dec-23
Share price hurdle
Fair value per right*
25 cents
30 cents
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 2023
(3,533,333)
(3,533,334)
(7,066,667)
Number remaining at 30 June 2023
-
-
-
Amount expensed in 2023
58,897
120,235
179,132
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 3
P a g e 6 3
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
24
SHARE BASED PAYMENTS (CONTINUED)
24a Year ended 30 June 2023 (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
Class I.1
Class I.2
$0.110
$0.25
Nil
$0.100
$0.25
Nil
Rights
Class I.3
$0.105
$0.25
Nil
Class I.4
Class I.5
$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
On 30 September 2022, the expiry of 24,000,000 options originally issued as an addition to external financing
obtained during the year ending 30 June 2020 resulted in a reclassification of $581,877 to reserves.
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 3
P a g e 6 4
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
2023
$
2022
$
3,209,180
3,322,300
2,746,020
3,012,140
1,071,100
1,089,100
7,026,300
7,423,540
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):
Equity Holding
Country of
Incorporation
Class of
Shares
2023
%
2022
%
Australia
Ordinary
Australia
Ordinary
100
100
100
100
100
100
100
100
100
100
100
100
Name of Entity
Direct Subsidiaries
Black Mountain Gold Ltd
MacPhersons Resources Limited
Gordon Sirdar Gold Mine Pty Ltd (previously known as CGP Minerals Pty Ltd)
Australia
Ordinary
Mill and Mining Services Pty Ltd (previously known as CGP Assets Pty Ltd)
Australia
Ordinary
Indirect Subsidiaries
Kalgoorlie Ore Treatment Company Pty Ltd
Polymetals (WA) Pty Ltd
Australia
Ordinary
Australia
Ordinary
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 3
P a g e 6 5
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 $8,170,784 (2022:
$2,328,475).
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 2023 would have been ± $5,719,549 (2022: ± $1,629,932).
Fair value interest rate risk
Refer to (29d) below.
29b Credit risk
Credit risk is the risk of financial loss to the Group iff 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 3
P a g e 6 6
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
2023
$
2022
$
5,623,808
5,406,635
533,485
1,264,542
6,157,293
6,671,177
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 2023
Group
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.)
Non-derivatives
$
$
$
$
$
$
$
Non-interest bearing
payables
378,706
351,573
Fixed rate borrowings
-
-
Total non-derivatives
378,706
351,573
-
-
-
-
-
-
-
-
-
-
-
-
730,279
-
730,279
-
-
30 June 2022
Group
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.)
Non-derivatives
$
$
$
$
$
$
$
Non-interest bearing
payables
4,762,134
Fixed rate borrowings
-
Total non-derivatives
4,762,134
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,762,134
-
4,762,134
-
-
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 3
P a g e 6 7
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
29
FINANCIAL RISK MANAGEMENT (CONTINUED)
29d 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)
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
(c)
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
2023 and 30 June 2022:
At 30 June 2023
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 2022
Assets
Financial assets at fair value through profit or loss
- Trading Securities
Other financial assets
- Security deposits
Total assets
At 30 June 2023
Liabilities
8,170,784
257,927
8,428,711
-
-
-
-
-
-
8,170,784
257,927
8,428,711
Level 1
Level 2
Level 3
Total
2,328,475
257,927
2,586,402
-
-
-
-
-
-
2,328,475
257,927
2,586,402
Level 1
Level 2
Level 3
Total
Financial liabilities at fair value through profit or loss
- Convertible Note Liability
- Convertible Note Derivative
Total liabilities
-
-
-
-
-
-
5,752,850
5,752,850
1,176,936
1,176,936
6,929,786
6,929,786
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 convertible notes. The Black Scholes option pricing model has been used to determine the
fair value of the embedded derivative component of the convertible note.
Movements in level 3 assets and liabilities during the current financial year are set out below:
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 3
P a g e 6 8
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
29
FINANCIAL RISK MANAGEMENT (CONTINUED)
29d Fair value measurements (continued)
Balance at 1 July 2022
Additions
Gain recognised in profit or loss
Interest recognised in profit or loss
Foreign exchange
Balance at 30 June 2023
Convertible Note
Liability
Derivative
Total
$
$
$
-
-
-
5,238,564
2,015,745
7,254,309
-
(838,809)
(838,809)
237,745
276,541
-
-
237,745
276,541
5,752,850
1,176,936
6,929,786
The level 3 assets and liabilities unobservable inputs and sensitivity are as follows:
Description
Unobservable inputs Measure Sensitivity
Convertible note
derivative
Volatility
Interest rate
70%
4.18%
1% change would increase/decrease fair value by
$2,000
0.25% change would increase/decrease fair value by
$3,000
29e Cash flow 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.
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 3
P a g e 6 9
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
31
INVESTMENT IN ASSOCIATES
2023
$
2022
$
17,156,988
11,820,374
10,005,435
10,808,486
27,162,423
22,628,860
7,667,699
4,715,623
913,917
888,563
8,581,616
5,604,186
18,580,807
17,024,673
66,211,489
70,089,303
-
835,750
(47,630,682)
(53,900,380)
18,580,807
17,024,673
(23,199,320)
(57,009,198)
As outlined in Note 32, during the year the consolidated entity reduced its holding in Richmond Vanadium
Technology (RVT), thereby losing significant influence. The Groups remaining interest in RVT as at 30 June 2023
is disclosed in Note 10. Information relating to investments in associates as at 30 June 2022 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 3
P a g e 7 0
Non-controlling
interest
Ownership interest
20222
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.
On 13 December 2022, Richmond Vanadium Technology (ASX: RVT) listed on the Australian Stock Exchange.
The Group’s shareholders received by way of capital reduction and in-specie distribution of approximately
20,000,000 RVT shares previously held by the Group to Eligible Group shareholders (note 32).
32
GAIN ON DEMERGER OF ASSOCIATE
On 5 December 2022, Richmond Vanadium Technology Pty Ltd (RVT) was demerged from the Horizon Minerals
Limited Consolidated Group (Horizon), following approval by Horizon Shareholders at the Annual General Meeting
held on 17 November 2022. Existing Horizon shareholders received shares in RVT on a 1 RVT share for every
31.1391 Horizon shares held (in-specie distribution) resulting in an associated reduction in share capital of
$8,000,000. The number of shares issued with the in-specie distribution was 20,000,000 at the determined share
price of $0.40 per share (same as at initial public offering of RVT). The share price at demerger of RVT was
determined to be $0.40 per share (same as at initial public offering of RVT) resulting in a realised gain of $8,663,873.
Carrying value of net assets of demerged entity
Assets
Cash and cash equivalents
Trade and other receivables
Other assets
Property, plant and equipment
Exploration and evaluation expenditure
Liabilities
Trade and other payables
Other liabilities
Net assets
5 December 2022
23,365,839
112,031
30,001
97,083
26,219,055
49,824,009
(1,248,176)
(155,396)
(1,403,572)
48,420,437
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 3
P a g e 7 1
INDEPENDENT AUDIT REPORT TO THE MEMBERS OF
HORIZON MINERALS LIMITED
33 EVENTS OCCURRING AFTER REPORTING DATE
On 5 July 2023, the Company announced it had entered into a binding option and sale deed (“Option”) with Metal
Hawk Limited (ASX: MHK) to purchase an interest in seven tenements within the Company’s Yarmany project
area (“Tenements”). The Option provides that Metal Hawk pay Horizon a $400,000 non-refundable option fee
within five days of signing the Option, comprising $200,00 in cash and $200,000 in MHK shares, with the number
of shares determined by the 20-Day VWAP prior to execution. On 17 July 2023, the Company announced receipt
of $200,000 in cash, and $200,000 in MHK shares, with the number of shares determined by the 20-Day VWAP
in relation to the executed Option and Sale Deed. The MHK shares are subject to escrow for 6 months.
On 17 July 2023, the Company announced that all conditions to the divestment of the Gunga West tenements to
FMR Investments Pty Ltd have been completed.
On 30 August 2023, the Company announced it had entered into a binding option and sale deed (“Option”) with
Dundas Minerals Limited (ASX: DUN) to purchase an interest in 19 tenements within the Company’s Baden Powell
and Windanya project areas (“Tenements”). The Option relates to all mineral rights over 16 Prospecting Licences,
two Mining Leases and one Mining Lease Application. The Option provides that Dundas pay Horizon a $500,000
non-refundable option fee which consists of $375,000 within 5 days of signing the Option, comprising $125,000
in cash and $250,000 in DUN shares, with the number of shares determined by the 5-Day VWAP prior to
execution. The final $125,000 is payable in cash on the first 12-month anniversary of the execution date.
There are no other matters or circumstances that have arisen since 30 June 2023 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 3
P a g e 7 2
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 2023,
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 2023 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 $1,009,710 (2022: $28,029,383) and operating cash outflows of $6,811,096
(2022: $2,391,860) for the year ended 30 June 2023. 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
Page 73
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.
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
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report for the current year. These matters were addressed in the context of our audit of the financial
report, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition
to the matter described in the Material Uncertainty Related to Going Concern section, we have determined the
matters described below to be the key audit matters to be communicated in our report.
Carrying value of capitalised exploration expenditure
Why significant
How our audit addressed the key audit matter
As at 30 June 2023 the carrying value of
exploration
assets was
$29,733,516 (2022: $29,377,548), 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(e).
Significant judgement is required:
•
•
facts
whether
determining
In
and
circumstances indicate that the exploration and
evaluation expenditure should be tested for
in accordance with Australian
impairment
Accounting Standard AASB 6 Exploration for
and Evaluation of Mineral Resources (AASB 6)
and;
In determining the treatment of exploration and
evaluation expenditure in accordance with
AASB 6, and
the consolidated entity’s
accounting policy. In particular:
o whether the areas of interest meet the
recognition conditions for an asset; and
o which elements of exploration and
for
expenditures
evaluation
capitalisation for each area of interest.
qualify
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(e) and Note 13.
Page 74
Accounting for Convertible Loan Notes
Why significant
How our audit addressed the key audit matter
On 23 November 2022 the Company entered into
an agreement with Nebari Gold Fund 1, LP
pursuant to which it issued convertible notes with
an aggregate principal value of USD$5,102,040 in
two tranches. The first tranche of USD$2,040,816
was received on 29 November 2022 and the
second tranche of USD$3,061,224 was received
on 13 June 2023. The convertible notes have a 30-
month maturity term.
The convertible notes can be converted into shares
in the Company at the option of the lender, in
multiple parts, and at any time prior to the 29 May
2025.
Accounting for convertible loan notes has been
considered a key audit matter, due
the
complexity of the accounting treatment required,
under Australian Accounting Standards.
to
Our audit procedures included:
- Reviewing the convertible note agreements, to
evaluate their terms;
- Evaluating the accounting treatment proposed to
determine whether it is in compliance with Australian
Accounting Standards;
- Confirming that the instrument is a hybrid instrument,
consisting of a host liability and an embedded
derivative, and therefore classified as a financial
liability;
- Assessing an expert’s valuation of the fair value of
its
the embedded derivative at
subsequent measurement as at balance date;
inception, and
- Evaluating the reasonableness of key inputs to the
valuation model; and
- Assessing the appropriateness of the disclosures in
respect of the convertible notes.
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 2023, but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon, 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.
Page 75
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.
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.
Page 76
• 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.
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 2023.
In our opinion, the Remuneration Report of Horizon Minerals Limited for the year ended 30 June 2023, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
PKF PERTH
SIMON FERMANIS
SENIOR PARTNER
18 SEPTEMBER 2023
WEST PERTH,
WESTERN AUSTRALIA
Page 77
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 14 September 2023 were:
QUOTED SECURITES OPTIONHOLDINGS
Nature
Expiry Date
Exercise Price of
Options
Number under
Option
Number of Holders
Listed options
30 June 2025
9.77 cents
5151,871,015
129
CLASS OF SHARES AND VOTING RIGHTS
As at 14 September 2023 there were 4,067 holders of the ordinary shares, 129 holders of the listed 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 14 September 2023)
Category
Number of Shareholders
1
1,001
5,001
10,001
100,001
–
–
–
–
–
1,000
5,000
10,000
100,000
over
TOTAL HOLDERS
167
662
803
1,926
609
4,067
The number of shareholders holding less than a marketable parcel as at 14 September 2023 was 1,786.
DISTRIBUTION OF OPTION HOLDERS (as at 14 September 2023)
Category
Number of Shareholders
1
1,001
5,001
10,001
100,001
–
–
–
–
–
1,000
5,000
10,000
100,000
over
TOTAL HOLDERS
-
-
-
69
60
129
The number of option holders holding less than a marketable parcel as at 14 September 2023 was 73.
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 3
P a g e 7 8
SHAREHOLDER INFORMATION
TWENTY LARGEST SHAREHOLDERS (as at 14 September 2023)
Rank
Name
SPARTA AG
No of Shares
% of
holding
42,200,000
6.05
1
2
3
4
5
6
7
8
9
SHIPBARK PTY LIMITED
41,453,662
5.95
BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD
23,669,677
3.40
BILL BROOKS PTY LTD
23,076,026
3.31
BNP PARIBAS NOMS PTY LTD
22,952,396
3.29
DELPHI UNTERNEHMENSBERATUNG AKTIENGESELLSCHAFT
21,150,000
3.03
BNP PARIBAS NOMINEES PTY LTD
18,948,769
2.72
SPARTA AG
15,090,397
2.17
GOLDFIELDS HOTELS PTY LTD
13,936,696
2.00
10
YARRAWAH PTY LTD
12,500,000
1.79
11
MR WILLEM RAVESTEYN + MRS ROSEMARY ANNE RAVESTEYN
11,240,000
1.61
12
AUSTRALIAN EXECUTOR TRUSTEES LIMITED
10,000,000
1.43
12
SHARON MAE TAYLOR
10,000,000
1.43
14
CARAGOYA PTY LTD
9,450,000
1.36
15
ROMAN DENTAL PTY LTD
8,730,846
1.25
16 WGS PTY LTD
7,888,888
1.13
17
BOND STREET CUSTODIANS LIMITED
7,702,285
1.11
18
J&D BANKS PTY LTD
7,383,381
1.06
19 MR WILLEM RAVESTEYN + MRS ROSEMARY ANNE RAVESTEYN
5,820,000
0.84
20
BANKS PTY LTD
5,586,850
0.80
Top 20 holders of FULLY PAID ORDINARY SHARES (Total)
318,779,873
45.74
Total Remaining Holders Balance
378,203,803
54.86
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 3
P a g e 7 9
SHAREHOLDER INFORMATION
TWENTY LARGEST OPTIONHOLDERS (as at 14 September 2023)
Rank
Name
No of Shares
% of
holding
1
2
3
4
5
6
7
8
9
BNP PARIBAS NOMS PTY LTD
5,222,222
10.07
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED
5,000,000
9.64
SHIPBARK PTY LTD
4,333,334
8.35
MR SEONG TAE KIM
SPARTA AG
4,001,765
7.71
3,333,333
6.43
BILL BROOKS PTY LTD
2,777,778
5.36
GAZUMP RESOURCES PTY LTD
MR GRAHAM ROBERT FOREMAN
1,813,555
3.50
1,800,000
3.47
SHIPBARK PTY LIMITED
1,785,286
3.44
10 MR JOHN HENRY MATTERSON
1,222,222
2.36
11
KALAM PROPERTY PTY LTD
1,200,000
2.31
12
GOFFACAN PTY LTD
13
MR CHRISTOPHER WILLIAM CHALWELL + MR IAN WAYNE WILSON
14 MRS JASPREET KAUR
1,177,778
2.27
1,000,000
1.93
727,778
1.40
15
ABN AMRO CLEARING SYDNEY NOMINEES PTY LTD
699,157
1.35
16 MR JACK KEITH PENFOLD
17 MR GODFREY WENNESS
629,555
1.21
555,556
1.07
18
GABADY PTY LTD
505,522
0.97
19 MR ANDREW COEN
20
ERIC GOLF PTY LTD
500,000
0.96
473,251
0.91
Top 20 holders of LISTED OPTIONS EXP 30/06/2025 @ $0.097 (Total)
38,758,092
74.72
Total Remaining Holders Balance
13,112,923
26.28
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 3
P a g e 8 0
TENEMENT SCHEDULE
AS AT 30 JUNE 2023
Project
Tenement
Registered Holders
Equity
Notes
BINDULI
L26/261
M26/346
M26/499
M26/549
M26/621
P26/4056
P26/4256
P26/4331
P26/4579
P26/4580
MLA26/855
PLA26/4318
BLACK FLAG
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
PLA24/5637
PLA24/5638
PLA24/5639
PLA24/5640
ELA26/220
BROAD ARROW
P24/5348
CANNON
GOLD MINE
E25/349
E25/564
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
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%
New app 24/2/23
New app 24/2/23
New app 24/2/23
New app 24/2/23
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 3
P a g e 8 1
TENEMENT SCHEDULE
AS AT 30 JUNE 2023 (CONTINUED)
Project
Tenement
Registered Holders
Equity
Notes
CANNON
M25/329
GOLD MINE
M25/330
M25/333
M25/357
P25/2365
P25/2449
P25/2633
P25/2670
PLA25/2761
P25/2733
P16/3121
CHADWIN
COOLGARDIE
E16/589
E16/590
E16/591
E16/592
LA15/429
LA15/430
E25/543
M26/41
M26/433
M26/534
L27/88
M27/485
GOLDEN
RIDGE
(NIMBUS)
KALPINI
KANOWNA
P26/4064
BELLE
(NIMBUS)
P26/4065
P26/4156
P27/2379
P27/2380
P27/2381
P27/2382
P26/4535
LAKEWOOD
E26/209
P26/4316
P26/4317
PLA26/4318
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
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%
New App 13/4/23
Granted 19/4/23
Granted 17/4/23
Granted 17/4/23
Granted 17/4/23
Granted 17/4/23
New app pending
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 3
P a g e 8 2
TENEMENT SCHEDULE
AS AT 30 JUNE 2023 (CONTINUED)
Project
Tenement
Registered Holders
Equity
Notes
LAKEWOOD
P26/4327
P26/4328
P26/4329
P26/4330
P26/4331
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
ROSEHILL
M15/652
M15/1204
P15/6380
WHITE FLAG
E26/168
M26/616
P26/4078
P26/4079
P26/4080
WINDANYA
M24/919
M24/959
P24/4817
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
HRZ
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
Grant 5/10/2021
2
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 3
P a g e 8 3
TENEMENT SCHEDULE
AS AT JUNE 2023 (CONTINUED)
Project
WINDANYA
YARMANY
NIMBUS/
BOORARA
Tenement
Registered Holders
Equity
Notes
P24/5057
P24/5058
P24/5059
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
E16/591
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
P25/2393
P25/2394
P25/2403
P25/2404
P25/2405
P25/2450
P25/2467
P25/2468
Option to MHK
Option to MHK
Option to MHK
Option to MHK
Option to MHK
Option to MHK
Option to MHK
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
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 3
P a g e 8 4
TENEMENT SCHEDULE
AS AT 30 JUNE 2023 (CONTINUED)
Project
Tenement
Registered Holders
Equity
Notes
NIMBUS/
P25/2469
BOORARA
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
P25/2732
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
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%
0%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Expired 27/5/23
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 3
P a g e 8 5
TENEMENT SCHEDULE
AS AT 30 JUNE 2023 (CONTINUED)
Project
Tenement
Registered Holders
Equity
Notes
NIMBUS/
BOORARA
P26/4384
P26/4385
P26/4386
P26/4405
P26/4431
P26/4432
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
Grant 1/6/23
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 3
P a g e 8 6
TENEMENT SCHEDULE
AS AT 30 JUNE 2023 (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
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
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%
1
1
1
1
1
1
1
1
1
PENNY’S FIND
P27/2480
Transferred to ERL 21/7/22
Granted 13/5/22
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 3
P a g e 8 7
TENEMENT SCHEDULE
AS AT 30 JUNE 2023 (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
Richmond JV
EPM25163
EPM25164
EPM25258
EPM26425
EPM26426
Abbreviations
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
HRZ/RVT
HRZ/RVT
HRZ/RVT
HRZ/RVT
HRZ/RVT
100%
100%
BMG 100%
BMG 100%
BMG 100%
BMG 100%
BMG 100%
BMG 100%
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 which was completed on 30 August 2022.
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 where RVT became 100% owned of the project and
was listed on the ASX (see HRZ release dated 15 June 2022 and crossed RVT announcement 13 December 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 3
P a g e 8 8
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
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 1 6
P a g e 8 9