Investigator Resources Limited
ABN 90 115 338 979
Annual Report - 30 June 2023
Investigator Resources Limited
Contents
30 June 2023
Corporate directory
Chair and Managing Director's Letter
Review of operations
Directors' report
Auditor's independence declaration
Statement of profit or loss and other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors' declaration
Independent auditor's report to the members of Investigator Resources Limited
Shareholder information
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3
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20
31
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64
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Investigator Resources Limited
Corporate directory
30 June 2023
Directors
Richard Hillis - Non-Executive Chair
Andrew McIlwain - Managing Director
Andrew Shearer - Non-Executive Director
Company Secretary
Ms Anita Addorisio
Registered office
47-49 King Street, Norwood SA 5067
Principal place of business
47-49 King Street
Norwood SA 5067
Share register
Auditor
Solicitors
Computershare Limited
Level 5, 115 Grenfell Street
Adelaide SA 5000
Grant Thornton Audit Pty Ltd
Level 3, 170 Frome Street
Adelaide SA 5000
Baker & McKenzie
L19, CBW, 181 William Street
Melbourne VIC 3000
Stock exchange listing
Investigator Resources Limited shares and options are listed on the Australian
Securities Exchange (ASX code: IVR and IVRO)
Website
www.investres.com.au
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Investigator Resources Limited
Chair and Managing Director's Letter
30 June 2023
Dear Fellow Shareholder,
Our primary focus continues to be on advancing our exciting Paris Silver Project. Thus, it is pleasing to report that the
packages of work required to complete the Project’s Definitive Feasibility Study (DFS) are well underway. These include
investigating the recovery of lead from Paris ore, proving up the water supply for the process plant, environmental surveys,
and additional drilling during FY22-23 in order to update the resource estimate at Paris. In addition, exploration activities
focussed on the Apollo prospect, proximal to Paris, and at the Uno Morgans tenement package, some 80km to the east,
where a successful drilling program delivered a significant high-grade intersection at the 12 Mile prospect.
The 100%-owned Paris Silver Project, located in South Australia’s Eyre Peninsula, was a greenfields discovery made by
Investigator. FY22-23 saw additional drilling at Paris following negotiations with the Gawler Ranges Aboriginal Corporation
(GRAC, the Traditional Owners of the land on which Paris is located), who approved access to an area at the south end
of the Paris resource, where drilling had previously been restricted. Drilling also took place to better constrain the deposit
in areas where previous drilling was limited. The additional drilling enabled an updated JORC (2012) compliant Mineral
Resource Estimate of 57Moz of silver and 99kt of lead to be announced shortly after FY22-23 end. Importantly, our
confidence level in the sub-surface distribution of mineralisation has increased with 72% of the deposit now classified as
‘Indicated’. The updated Mineral Resource Estimate will form the basis for the revised mine plan and schedule in the DFS.
As previously advised, one of Investigator’s objectives has been to seek value-accretive opportunities, while not
diminishing our focus on progressing the Paris Project. During FY22-23, the Company entered into an agreement to earn-
in to the Molyhil Tungsten Project in the Northern Territory, which we discuss further below.
Commitment to the health and safety of our workforce is at Investigator’s core and one of our key objectives is to ensure
everyone returns home from work safely. It is a credit to all involved that there were no Lost Time, Medically Treated or
Restrictive injuries reported during FY22-23, a year in which we undertook significant field work in multiple remote
locations. Investigator’s strategy for health and safety is built on leadership, engaged employees and contractors, and
robust risk and safety management systems that make working safely a priority. Reporting and tracking the Company’s
safety performance, and a process of reviewing incidents to continuously improve safety performance and minimise risk
to employees and contractors, is integral to providing a safe working environment. Safety reporting is conducted at all
levels within the Company and reported through the management team to the Board.
Investigator continues to work with the Traditional Owners of the lands on which we operate and endeavours to understand
and support Aboriginal people and their connection to country, the foundation to which is to build and maintain honest,
open and respectful relationships. We are grateful to the Gawler Ranges Aboriginal Corporation who have worked
cooperatively with Investigator to enable drilling at the previously restricted southern end of the Paris deposit. This
outcome bodes well for the establishment of the production-related Native Title Mining Agreement (NTMA) as we progress
towards a development decision on Paris. Investigator is also aware that a variety of stakeholder groups, including
landowners and local communities, have an interest in the locations in which we work. We seek to engage, build
relationships, and produce positive outcomes for all who have an interest in the locations where we work.
Two key objectives of the Paris Pre-Feasibility Study (PFS) released to the market in 2021 were to demonstrate the
technical feasibility and financial viability of the project. Significantly, the robust financial metrics reported in the PFS were
based on the recovery of only silver. Whilst silver provides the main value contained in the resource, the updated Mineral
Resource Estimate includes 99kt of lead (representing around 12% of the total contained metal value). A major component
of the current DFS work is metallurgical testing to determine a viable processing route to recover this lead content, in
addition to further enhancements to silver recovery.
Other DFS tasks include hydrological studies to confirm an adequate source of water for processing, and the behaviour
of the water table around Paris as the open pit is excavated and the area drained. By the end of FY22-23, the drilling and
commissioning of production and monitoring bores, and pump draw down testing at Hector (the previously identified water
source) had been completed. The hydrological information collected at Paris is being incorporated into the geotechnical
assessment that will determine the optimal pit wall slopes for safe and efficient mining.
Post the year end, the scope of work for final engineering design was issued and engineering consultancy Mincore has
been engaged to complete this work. Additionally, environmental consulting group JBS&G has been appointed to
undertake field environmental survey work and assist with project planning and approvals. MinAssist, the mineral
consulting group who led the PFS are continuing to provide important supervision, particularly of the metallurgical test
work and engineering design activities. It is anticipated that the DFS will be finalised early in 2024.
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Investigator Resources Limited
Chair and Managing Director's Letter
30 June 2023
Investigator built on previous work completed on prospects proximal to Paris, and in the Uno Morgans tenement package
(approximately 80km east of Paris), during FY22-23. Early in the reporting period, the final results from drilling undertaken
across the Uno Range and Morgans tenements were announced. Results from the program were impressive with 24 of
the 28 holes intersecting anomalous mineralisation. At the Twelve Mile prospect, intersections included 12m @ 240g/t
silver (including 6m @ 383g/t silver), with extensive zinc intersections such as 123m @ 0.48% zinc (including 24m @
1.52% zinc) at Uno North. These prospects provide further opportunities to add resources in support of an operation at
Paris.
Follow-up drilling was completed at the Apollo prospect (4km north of Paris) in early 2023. Whilst we did not replicate the
high-grade silver intersection previously reported (8m @ 1,262g/t silver), results continue to support the prospectivity of
the region, with petrological analysis suggesting that the hydrothermal fluids responsible for mineralisation at Apollo are
geochemically closely related to those associated with formation of the Paris deposit.
Further afield, following last year’s intensive soil sampling program and heritage clearance work, we continued with further
exploration targeting over our Curnamona tenements, located close to the New South Wales border. Spearheading this
effort was an intensive drone-supported aeromagnetic survey completed at the end of the reporting period. Results from
this survey, coupled with further planned field work, will be used to identify prospects for drill testing.
Gold Road Resources (ASX:GRO), who acquired DGO Gold in August 2022, completed their Stage 2 earn-in obligations
over Investigator’s Stuart Shelf tenements and in March 2023 notified Investigator that, having spent the minimum $2M,
they intended to exercise their right to acquire the 51% interest and form the Joint Venture. GRO have continued to fund
all expenditure focussed on their sedimentary-hosted copper and Iron Oxide Copper Gold (IOCG) exploration models in
the tenements whilst the Joint Venture documentation is being finalised.
Osmond Resources (ASX:OSM) continue to advance negotiations with the Traditional Owners in the Fowler Domain, near
the West Australian border, with a view to undertaking a significant geophysics program. Osmond has committed to spend
$2.75M over 6 years, to earn up to an 80% interest in our Fowler Domain tenements, which are prospective for copper
and nickel sulphides. Investigator hold 1.1 million Osmond shares and a free carry on ongoing exploration costs during
the earn-in period.
We have made a concerted effort to increase the information flow and market awareness of our advancement of the Paris
Project, with presentations at a number of investor and industry conferences as well as regular market and shareholder
updates. As one of the only pure silver plays in the Australian market, it is essential that we maintain open and timely
communication. Shareholders can use the “Subscribe to News” function on our website. We also encourage shareholders
to learn more about our work at Paris, and on other projects, on the refreshed Investigator website.
Investigator entered into an earn-in to joint venture with Thor Energy Plc (ASX:THR) over the Molyhil Tungsten Project in
the Northern Territory in late 2022. For an initial expenditure commitment of $1M by May 2024, Investigator can earn 25%
of the Project (and acquire THR’s 40% of the adjacent Bonya tenement). Investigator considers that there is scope to
revalidate the existing tungsten and molybdenum resource, and the previously completed DFS, in an improved tungsten
and molybdenum price environment. As at 30 June 2023, Stage 1 expenditure was approximately $380,000. Resource
drilling and a regional gravity survey (co-funded by the NT Government) will be completed in the second half of 2023.
As reported in the June 2023 Quarterly, Investigator held $4.5M cash on hand at the end of FY22-23. A successful capital
raising was undertaken in December 2022, raising $4.2M at an issue price of $0.042/share. As a junior explorer,
Investigator is critically aware of ensuring vale is created for shareholders and that the company’s capital is managed
appropriately. Importantly, the three times that the Company has raised capital since mid-2019 have been at successively
higher placement prices of 2.4c, 3.0c and in December 2022 at 4.2c. The Board recognises the challenging current
prevailing market conditions and monitors operating expenditures and available funds on a regular basis.
In closing, it is pleasing to report that during what has been a varied and active year for the Investigator team, our field
crew and contractors have been focussed on delivering shareholder value and have done so whilst maintaining a focus
on risk assessments, on-the-job safety and minimising environmental impact. We take this opportunity to recognise their
efforts and congratulate them on another successful year.
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Investigator Resources Limited
Chair and Managing Director's Letter
30 June 2023
We also acknowledge the continued support of the communities in which we work and the Traditional Owners of the lands
on which we operate.
We thank you sincerely for your interest and continued support of Investigator and look forward to enjoying future success
with you and where possible, look forward meeting shareholders at this year’s AGM in Adelaide on Thursday 23rd
November.
Richard Hillis
Chair
Andrew McIlwain
Managing Director & CEO
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Investigator Resources Limited
Review of operations
30 June 2023
Paris Silver Project
The Company’s 100% owned Paris Silver Project is located approximately 70km north of the rural township of Kimba on
South Australia’s Eyre Peninsula. Access to the project site is predominantly via highways and sealed roads and is
approximately 7 hours by road from Adelaide, as can be seen below.
Figure 1: Locality map showing Investigator’s SA tenements and Paris Silver Project – approximately 535km by road,
NW of Adelaide.
One of the highest grade undeveloped primary silver projects in Australia, the Paris Silver Project hosts a JORC 2012
Mineral Resource Estimate of 24Mt @ 73g/t silver and 0.41% lead for 57Mozs silver and 99kt lead at a cut-off of 25g/t
silver1. The Paris resource is a shallow, high-grade silver deposit amenable to simple open pit mining.
1 - As announced to the ASX on 5 July 2023
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Investigator Resources Limited
Review of operations
30 June 2023
Paris South - Resource Extension
In October 2022, following extensive consultation and review by the Gawler Ranges Aboriginal Corporation RNTBC
(GRAC), the Traditional Owners of the land on which Paris is located, access to the previously restricted and undrilled
area at the southern end of the Paris deposit was granted. This opened a significant area for the potential extension of
the Paris resource to the south, and adding dimension to the current resource.
A Reverse Circulation (RC) drill program of approximately 4,800m commenced in late November 2022, targeting a
potential 200m strike extension. With initial success in the furthermost line of holes, the program was expanded to 7,150m
in 37 holes, including an additional line of holes 50m further south, extending potential for resource estimation over an
additional 250m beyond the 2020 Paris resource definition drilling. Drilling was suspended over the Christmas/New Year
period, and the drill program was completed in February of 2023.
Figure 2: Plan shows the previously drilled lines at the Paris Deposit overlying the 2021 estimated resource classification block model, with the
2022/23 drill holes shown at Paris South (yellow collars).
Results from this exploration program were considered positive and the encouraging results provided the potential for
further extension of the resource in future programs to the south. Section A-A’ across Line -3.0, the southern-most line
drilled in this program, intersected 34m @ 48g/t silver from 61m, including 11m @ 90g/t silver from 78m (PPRC881)
highlighting the potential for further extension of silver mineralisation south.
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Investigator Resources Limited
Review of operations
30 June 2023
Figure 3: Drill section A – A’ showing cross section of holes on Line -3.0 (refer Figure 3 for section location). Hole traces display geology with
red bars identifying silver intersections above 10g/t and black bars identifying lead intersections above 0.1%.
Significant results from this program include:
Hole PPRC856 (Line -1.0)
o 17m @ 130g/t Silver from 175m; including
o 13m @ 166g/t Silver from 175m;
o
including 1m @ 1,030g/t Silver from 178m
Hole PPRC855 (Line -1.0)
o 35m @ 74g/t Silver from 128m; including
o 25m @ 94g/t Silver from 136m; including
o 8m @ 183g/t Silver from 145m
Hole PPRC860 (Line -1.0)
o 29m @ 69g/t Silver from 118m; including
o 20m @ 86g/t Silver from 127m; including
o
5m @ 213g/t Silver from 127m
Hole PPRC860 (Line -1.0)
o 62m @ 1.27% Lead from 85m; including
o
17m @ 2.27% Lead from 126m
Hole PPRC882 (Line -0.75)
o 25m @ 207g/t Silver from 73m; including 8m @ 615g/t Silver from 78m; including 1m @ 2,410g/t Silver
from 80m –
o 39m @ 80g/t Silver from 111m; including 14m @ 177g/t Silver from 116m
o 100m @ 1.17% Lead from 59m; including 16m @ 4.03% Lead from 116m
Hole PPRC881 (Line -3.0)
o
34m @ 48g/t Silver from 61m; including 11m @ 90g/t Silver from 78m.
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Investigator Resources Limited
Review of operations
30 June 2023
This program informed the updated Mineral Resource Estimate for the Paris silver project that was released to the market
following the end of the financial year (5 July 2023). Matrix resource consultants was contracted to prepare the updated
resource with Multiple Indicator Kriging (MIK) again utilised as the method of estimation. The 2023 updated Mineral
Resource Estimate represents an approximate 7% increase in total silver ounces when compared with the 2021 estimate.
The 2023 Mineral Resource Estimate is shown in the table below:
Indicated
Inferred
Total
Tonnes
(million)
1.7
7.2
24
Ag
g/t
75
67
73
Pb
%
0.5
0.2
0.41
Ag
moz
41
16
57
Pb
kt
85
14
99
Table 1: 2023 Paris Silver Project Mineral Resource Estimates
Note:
Silver Project Mineral Resource, since its release in July 2023.
Based on 25g/t silver cut-off grade.
Values may not sum due to rounding.
Density: Indicated - 2.25t/m3, Inferred - 2.39t/m3 and Average - 2.30t/m3
The Company confirms that it is not aware of any new information or data that materially affects the Paris
Comparison between the 2021 and 2023 Mineral Resource Estimates are shown below with the 73 additional holes that
were utilised in the 2023 resource estimates shown in yellow.
Figure 4: Collar plan showing location of the 76 new holes (yellow dots) over the 2021 resource classification block model, Indicated (red) and
Inferred (blue).
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Investigator Resources Limited
Review of operations
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Figure 5: Collar plan showing location of the 76 new holes (yellow dots) over the 2023 resource classification block model, Indicated (red)
and Inferred (blue).
Following drilling both across the Paris resource and the extended area to the south of Paris that was commenced
in November 2022 and completed in early 2023, a revised Mineral Resource Estimate was finalised and reported to
the ASX on July 5 2023. The previously reported Paris Silver Project’s Pre-Feasibility Study (PFS)2, based on the
2021 Mineral Resource Estimate is being advanced to completion of a Definitive Feasibility Study (DFS),
underpinned by the new and larger resource.
Paris Silver Project Definitive Feasibility Study
The 2021 Pre-Feasibility Study highlighted the low-risk nature of the high-grade, near surface, open pit project with
the Base Case Scenario (“Whole of Ore Leach”) assuming a simple processing circuit with robust silver recoveries.
Importantly, this Base Case contemplated only recovery of silver with no revenue contribution from the substantial
lead contained in the resource included.
Hydrology Drilling
During the period in support of the completion of the Paris Definitive feasibility Study (DFS), Investigator undertook
the drilling and establishment of permanent bores for hydrological testing and groundwater modelling within and
surrounding the Paris deposit footprint.
Additionally, pumping and observation bores for hydrological testing and groundwater modelling at the Hector
paleochannel (the planned source of process water for the Paris plant) with pump drawdown and recharge testing
completed. Modelling to confirm the suitability of Hector as the source of process water will be completed before year
end.
Comprising approximately 1,035m of drilling, 10 test bores and 3 monitoring bores were been established. These
will be used to assess the production capacity of the ground water resources to support the Paris operations as well
as predict the effect on the surrounding water table - a critical element in the advancement of the Paris Silver Project.
2 - As announced to the ASX on 30 November 2021
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Investigator Resources Limited
Review of operations
30 June 2023
Figure 6: Plan showing the location of the production/dewatering bores at both Paris and Hector (Pink triangles). The monitoring bores
are located adjacent to the production bores and not shown separately.
Identifying the location and extent, as well as understanding the behaviour of the water table (flow, drainage and the
like) around the pit are vital inputs to the final geotechnical assessment and pit design parameters.
The 4-week pump drawdown and recharge testing program at Hector will enable final assessment of its suitability as
a reliable supply of process water and support DFS engineering studies.
Packages of work to complete the DFS have been commenced. These include:
Data from the Paris pit hydrology testwork that will enable final geotechnical assessment of the planned open
pit to be undertaken, including the potential extension of the resource to the south on completion of pit
optimisation studies, developed using the updated Mineral Resource Estimate for Paris.
Metallurgical testwork that is focussed on lead recovery and final process plant design, with selection of samples
for dispatch to consulting metallurgical laboratory undertaken in the quarter. Additional variability analysis of
mineralisation and gangue was completed and will be used to inform targeted testwork to enhance metallurgical
knowledge within the deposit.
Engagement with the SA Department for Energy and Mining (DEM), designed to facilitate final project approvals
leading to Mining Lease establishment.
Completion of comprehensive environmental studies covering the project area.
Selection and engagement of engineering consultants to undertake final process plant and infrastructure design
and capital and operating cost estimates.
Financial modelling of the Project’s economics.
Advancement of Native Title approvals, continuing the well-established relationship with GRAC, the Traditional
Owners of the land on which Paris sits, with a view to finalising a mining NTMA enabling development of, and
production from, the Paris Silver Project.
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Investigator Resources Limited
Review of operations
30 June 2023
Figures 7 & 8: Images showing conceptual Paris open pit, process plant and infrastructure.
Engagement with local and broader communities, as well as with the associated regulatory bodies also forms a vital
element of the DFS. Investigator recognises that best practice environmental management and strong support from
the community are critical to the Project’s success. During the DFS, particular attention will be given to water, waste
and emissions management, and to employment opportunities for local people.
Dialogue with GRAC continue with the objective of negotiating the Native Title Mining Agreement necessary for the
production phase of the Paris Project. GRAC are key stakeholders in the advancement of Paris, and it is intended
that they will also be beneficiaries of the Project’s successful development.
It is anticipated that the Paris Silver Project’s Definitive Feasibility Study will be completed and announced to the
ASX in early 2024.
Regional Exploration on Peterlumbo tenement
Following the comprehensive Reverse Circulation (RC) drill program of 7,634m in 54 holes completed across the 5
targets as shown below. Considerable desktop review as undertaken to consolidate assay data and interpret
structural data received from the diamond twin hole of the anomalous high grade silver intersection in PPRC826.
Information gathered by investigator geologists following this review provided a basis for the interpretation of multiple
structural corridors in the Apollo area that may provide further mineralisation at the tenor encountered in the previous
program.
Following the Paris South – Resource extension drilling a further 12 holes were drilled at the Apollo prospect targeting
hypothesised extensions and orientations of structures interpreted from the diamond twin hole. Results from this
drilling included - moderate level silver mineralisation encountered within two holes.
Results included:
Hole PPRC892
3m @ 34g/t silver from 189m
Hole PPRC896
Intersection of 3m @ 10g/t, 9m @ 0.34% lead and 12m @ 0.29% Zinc.
Petrological examination of chips collected from this drilling confirmed shallow epithermal type environment
conducive with multi-phase metal bearing fluids and mineralisation. Whilst the tenor of mineralisation intersected was
not as expected this program provided significant understanding and knowledge of local stratigraphy and
encouraging potential structural orientations for further targeting.
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Investigator Resources Limited
Review of operations
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Figure 9: Plan showing location of the Apollo 2022 drilling proximal to the Paris Silver Deposit.
During the year, on multiple occasions Investigator geologists visited the Yardea tenement (EL6725 – 278km2),
abutting and immediately to the northwest of the Peterlumbo tenement (EL6347) interpreting geology and
ascertaining the prospectivity of areas and suitableness of the regolith to soil sampling. Further work is planned to
advance the understanding of the geology that lies to the north of the Uno Fault.
Other Tenements – South Australia
East Eyre
The Uno Range, Morgans and Harris Bluff tenements, located approximately 80km to the east of, and in a similar
geological setting to Paris, saw renewed focus with a moderate soil sampling and mapping program undertaken
across the tenements.
The aim of the soil sampling program was infill of previous sampling undertaken in 2021 via the Ultra Fine Method
created by LabWest. The program also presented further opportunities to test soil anomalies observed in previous
TL8 sampling and determining whether anomalous zones can be enhanced and replicated via the ultrafine method.
In early 2022, the first round of drilling across the tenements generated silver intersections included 12m @ 240g/t
silver (including 6m @ 383g/t silver) at Twelve Mile. A portion of the programme was aimed at determining whether
anomalous silver in soils highlights the theoretical structure targeted in the 2022 drilling. Laboratory results of soil
samples highlighted the targeted structure as well as its possible extension further southwest through anomalous
silver zones.
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Investigator Resources Limited
Review of operations
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Figure 10: Plan showing 2022 exploration drilling across the uno morgans tenements.
Anomalous low-level gold observed in the 2021 soil program surrounding the Babylon prospect drilled in 2022 was
also replicated across a large area previously historically drilled for anomalous calcrete gold anomalies in the same
area. The source and understanding of the anomalous signal in the area is poorly understood and is a focus of
current investigative work by the Investigator team.
With the success of this soil program in highlighting possible extension of 12 Mile silver mineralisation, follow-up
drilling based on these exciting results is planned to commence in early 2024. These prospects provide further
opportunities to add resources in support of an operation at Paris.
A Native Title Mining Agreement to allow advanced exploration activities on the Uno Range tenement (EL5913), in
addition to a number of tenements within the Gawler Ranges Aboriginal Corporation determination area was
executed during the year. The NTMA was subsequently registered in December 2022.
During the previous year, Investigator was successful in being granted the Corunna tenement (EL6724 – 121km2),
immediately to the southeast of the Uno tenement and the Nonning South tenement (EL6753 – 14km2) to the north.
Desktop review of previous exploration and geology was undertaken throughout the year with a field visit by
Investigator geologists to determine the suitability for a grid style soil sampling program across the tenement. The
acquisition of these tenements logically complements our successful exploration in the nearby Uno Range and
Morgans tenements and further builds Investigator’s substantial ground position in this area of demonstrated
prospectivity that is core to Investigator’s strategy.
Stuart Shelf
In late 2020 Investigator, through its 100% owned subsidiary Gawler Resources Ltd, entered into a 3 Stage earn-in
to Joint Venture Heads of Agreement with DGO Gold. The earn-in is now managed by Gold Road Resources
(ASX:GOR) following their acquisition of DGO Gold. In March 2023 GRO notified Investigator that, having met the
minimum $2M expenditure of Stage 2, intend to exercise their right to acquire the 51% interest and form the Joint
Venture. Whilst this documentation is being finalised, GRO have continued to fund all expenditure focussed on their
sedimentary-hosted copper and Iron Oxide Copper Gold (IOGC) exploration models. Additional targets with Iron
Oxide Copper Gold potential have been identified within the tenement package.
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Stage 3 of the earn-in requires GRO to spend a further $4M over 2 years for an additional 29% interest (total 80%
GRO and 20% IVR).
Outside of the GRO Joint Venture interest tenements, Investigator hold a number of other Stuart Shelf tenements
that are considered prospective for copper, gold and base metals. These include: Uneroo (EL6754 – 492km2) which
borders Investigator’s Whittata (Maslins) tenement (EL6642), two tenements where Investigator was successful in
competitive tender applications - Lake MacFarlane (EL6853 - 982km2) and Wartarka (EL6858 - 557km2) and Uneroo
(EL6754 - 332km2). Early-stage investigation and targeting is in progress with a view to undertaking on ground
exploration in the next 12 months.
Curnamona
Early-stage exploration activities, limited to non-ground disturbing work, such as field mapping and soil sampling was
undertaken late in the 2022. With encouraging results in several prospect areas, further activities including
completion of drone supported aeromagnetic geophysics survey which highlighted multiple anomalous areas for
further exploration. Consolidation of the current understanding of geological and mineralising controls of the areas is
being undertaken in preparation for a maiden drill program anticipated to commence in early 2024.
After protracted negotiations and continued engagement with the Wilyakali Native Title Group – the Traditional
Owners of these tenement areas - a Native Title Mining Agreement was finalised and signed in December 2022, The
NTMA agreement covers the following tenements within the Curnamona province: EL5938 (Wiaweira), EL6253
(Olary) and EL(6345 (Treloars). With this agreement in place advanced exploration activities such as drilling of targets
delineated by preliminary soil sampling and geophysical work can now proceed.
Northern Territory – Molyhil W-Mo Project
On the 23 November 2022 Investigator announced that it had entered into a 3 stage Earn-In to Joint Venture
agreement between Investigator’s 100% owned Fram Resources and Thor Energy PLC. The agreement provides
for a minimum $1M expenditure by Investigator by May 2024 to earn a 25% Joint Venture interest in Molyhil and
acquire Thor’s 40% interest in the adjacent Bonya tenement. Stage 2 and 3 expenditures require a further spend of
$7 million over 5 years to earn up to 80% of the project.
The Molyhil W-Mo project has a JORC (2012) compliant Mineral Resource Estimate of 4.3Mt @ 0.27% WO3, 0.1%
Mo, 17.75% Fe (as reported by Thor Energy PLC, 08 April 2021). In July 2020, the Northern Territory government
granted the Molyhil Project Major Project status that will facilitate future regulatory approvals.
Category
‘000
Tonnes
WO3
Grade %
Tonnes
Mo
Grade %
Tonnes
Cu
Grade %
Tonnes
Fe Grade
%
Measured
464
Indicated
2,932
Inferred
990
0.28
0.27
0.26
1,300
7,920
2,580
0.13
0.09
0.12
600
2,630
1,170
Total
4,386
0.27
11,800
0.1
4,400
0.06
0.05
0.03
0.05
280
19.12
1,470
18.48
300
14.93
2,190
17.75
Table 2: Molyhil Mineral Resource Estimate JORC (2012) classification as reported by Thor Energy to the ASX on 8 April 2021. Reported at a cut-off
grade of 0.07% WO3 Tungsten.
An extensive literature and data review was undertaken by Investigator geologists across all aspects of the Molyhil
project, including previous exploration and resources, as well as through multiple bulk sampling programmes and
geological interpretation of the area. Following this review, the Investigator team deemed the project had viable
upside to an increased resource, amenable to a longer term mine plan.
In March of 2023, the Investigator team undertook a field investigation of the Molyhil and Bonya tenements in addition
to a visit of historical diamond drill core from the Molyhil deposit located in the Northern Territory Geological Society
(NTGS) core storage. Additionally, available core stored in Alice Springs was reviewed. During this visit the core was
inspected thoroughly in conjunction with historical assays in addition to abundant Specific Gravity measurements on
a frequent interval basis in all accessible historic holes. A total of 1,300 density readings were taken to provide
supporting data for the planned Mineral Resource Estimate update.
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Review of operations
30 June 2023
Investigator Resources was successful in receiving cofounding from the Northern Territory government in support of
an extensive gravity program over the Molyhil project with up to half of the proposed program to be refunded through
the initiative on completion.
A Mining Management plan (MMP) was submitted to the Northern Territory government to support an initial 1,700m
Diamond Drill and 3,000m Reverse Circulation (RC) resource drilling program for the Molyhil deposit. The aim of the
programme is to refine and upgrade the current 2021 resource to improve the economics and long-term viability of a
mining plan.
Drilling is expected to be underway late in 2023.
Fowler Domain
Investigator’s Fowler Domain tenements, totalling an area of 1,878km2 within the Western Gawler area in South
Australia are subject to an earn-in to Joint Venture through its 100% owned subsidiary Kimba Minerals Pty Ltd with
Osmond Resources Ltd (ASX:OSM). Osmond have committed to spend $2.75M in 3 stages over a 6-year period to
earn the right to form a 80:20 joint venture.
Previous exploration in the Fowler Domain by others had identified significant nickel and copper sulphide
mineralisation immediately adjacent to these tenements (Western Areas - ASX:WSA – 23 June 2020). Investigator
believe that in addition to the nickel and copper potential, there is additional potential for gold mineralisation.
As part of the negotiated agreement, Osmond issued Investigator with 1.1M OSM shares.
Osmond have informed the Company that, subject to finalisation of an NTMA with the Traditional Owners of the area,
they are preparing to undertake regional geophysical exploration across the tenements.
Tasmania – White Spur – EL2/2020
Investigator holds the White Spur exploration licence (EL2/2020) in the highly mineral endowed Mount Read Volcanic
belt of North-West Tasmania.
Identified through a “machine learning” or “neural analysis” exercise in targeting mineralisation similar to that at the
significant Rosebery Mine (which has operated continuously from 1936, producing zinc, copper, lead and gold) and
Henty Mine (produced approximately 1.3Moz since its commissioning in 1996), the 84km2 White Spur tenement lies
immediately to the south of the Rosebery and historic Hercules zinc mines and west of, and adjacent to the Henty
Mine.
No significant exploration has been undertaken on the tenement since 2013 when the presence of thallium, a known
vector to massive sulphide mineralisation, was reported.
During the year, under a negotiated access agreement that protects Investigator’s interests, MMG’s Renison
operations conducted geotechnical investigations for the suitability of the northern area of the tenement for future
tailings disposal.
Other tenements
During the period, following critical review, Investigator elected not to renew the Algebuckina (EL6187) tenement.
Business Risks
Investigator’s operating and financial results and performance are subject to various risks and uncertainties, some
of which are beyond Investigator’s reasonable control. Set out below are matters which the Group has assessed as
having the potential to have a material impact on its operating and/or financial results and performance:
(i) Fluctuations in external economic drivers including macroeconomics and metal prices: The consolidated
entity’s primary focus is the advancement of its Paris Silver Project. Fluctuations in the silver price can result from
various aspects beyond Investigator’s control, including macroeconomic and geopolitical. Sustained lower silver
prices would adversely impact the viability of the Project.
(ii) Capital and Liquidity: The consolidated entity will incur expenditures over the next several years in connection
with its exploration objectives and development of new projects and relies on its ability to raise capital as its primary
source of funding. The company is exposed to the risk that unfavorable macroeconomic and market conditions
would preclude it from raising sufficient capital.
16
Investigator Resources Limited
Review of operations
30 June 2023
(iii) Failure to discover mineral resources and convert to ore reserves: Exploration activities are speculative in
nature and often require substantial expenditure on exploration surveys, drilling and sampling as a basis on which
to establish the presence, extent and estimated grade (metal content) of mineralised material. Even if significant
mineralisation is discovered, it may take additional time and further financial investment to determine whether a
mineral resource has attributes that are adequate enough to support the technical and economic viability of mining
projects and enable a financial investment and development decision to be made. During that time the economic
viability of the project may change due to fluctuations in factors that affect both revenue and costs, including metal
prices, foreign exchange rates, the required return on capital, regulatory requirements, tax regimes and future cost
of development and mining operations.
(iv) Renewal of tenements: The consolidated entity has been granted tenements by the South Australian Department
for Energy and Mining (‘the Department’) on the terms and conditions set out in the related lease agreements. At
the expiry of the lease term, the decision of renewal application to assign tenements to the consolidated entity
remains with the Department. A non-renewal of a tenement would adversely affect the operational results and
fulfilment of the aspirations of the consolidated entity.
(v) Failure to attract and retain key employees: The consolidated entity is heavily dependent for its continued
operational success on its ability to attract and retain high caliber personnel to fill roles including Directors,
Managing Director, Exploration Manager and geologists. A loss of key personnel or a failure to attract appropriately
skilled and experienced personnel could affect its operations and performance.
Corporate
Business development
Investigator continue to review opportunities for the acquisition of prospects with the potential to generate significant
accretive value. Whilst the Company’s principal focus remains the advancement of the Paris Silver Project and
continued regional exploration, the aim of creating some diversification in Investigator’s portfolio continues. Focus
has been maintained on domestic opportunities, conscious that the tightening equity market may present some
possibilities.
The earn-in agreement to the Molhil Tungsten-Molybdenum Project detailed above is a product of this continued
active monitoring of opportunities.
Impairment
As per AASB 6 – Exploration and Evaluation of Mineral Resources, Management have undertaken an impairment
review and assessed the carrying value of the Company’s exploration and evaluation assets. A review of the
consolidated entity's exploration licenses was undertaken as at 30 June 2023.
Due to Management's assessment that exploration costs incurred on all exploration tenements/assets with the
exception of the Paris Silver Project (on the Peterlumbo Tenement) and Molyhil project may not be recoverable, and
specifically if the tenements that have not yet yielded a JORC compliant resource, the related exploration and
evaluation assets are to be written off as a part of the impairment charge.
Following their review of the accounts for the 2023 Financial Year, the Directors resolved to impair approximately
$0.6million of the total Exploration and Evaluation value carried forward as at 30 June 2023.
The remaining balance of approximately $26.6 million of Exploration and Evaluation is entirely attributable to the
Company’s 100% owned Paris Silver Project.
The Directors consider that this approach is both a prudent and conservative approach to managing the Company’s
balance sheet.
Cash
The Company had $4.5 million cash at bank as at 30 June 2023.
17
Investigator Resources Limited
Review of operations
30 June 2023
JMEI credits
During the financial year, the Company received notification from the Australian Taxation Office of its successful
application to participate in the Junior Minerals Exploration Incentive (JMEI) to a total of $312,500.
The JMEI scheme enables eligible exploration companies to create refundable tax credits to distribute to eligible
shareholders by forgoing a portion of their carried forward tax losses that have arisen from allowable expenditure on
"greenfield" exploration. It will apply to shareholders who acquire new shares if the Company undertake a share
placement during the year. Australian resident shareholders that are issued with JMEI credits will generally be entitled
to refundable tax offsets (for individual shareholders or superannuation funds) or franking credits (for companies).
Other
Subsequent to the end of the financial year on 30 July 2023, no matter or circumstance, other than the announcement
of the updated Mineral Resource Estimate for the Paris Silver Project on 5 July (detailed above). has arisen that has
significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations,
or the consolidated entity's state of affairs in future financial years.
Competent Person Statement
The information in this Annual Report that relates to exploration results is based on information compiled by Mr.
Jason Murray who is a full-time employee of the company. Mr. Murray is a member of the Australasian Institute of
Mining and Metallurgy. Mr. Murray has sufficient experience of relevance to the styles of mineralisation and the
types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined
in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves. Mr. Murray consents to the inclusion in this report of the matters
based on information in the form and context in which it appears.
Forward Looking Statements
This Financial Report includes certain forward-looking statements that have been based on current expectations
about future acts, events and circumstances. These forward-looking statements are, however, subject to risks,
uncertainties and assumptions that could cause those acts, events and circumstances to differ materially from the
expectations described in such forward-looking statements.
These factors include, among other things, commercial and other risks associated with the meeting of objectives and
other investment considerations, as well as other matters not yet known to the Company or not currently considered
material by the Company.
18
Investigator Resources Limited
Review of operations
30 June 2023
Corporate disclosure and reporting
The status of Investigator’s tenements at 30 June 2023 are detailed in the table below.
19
Investigator Resources Limited
Directors' report
30 June 2023
The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'consolidated entity') consisting of Investigator Resources Limited (referred to hereafter as the 'company' or 'parent entity')
and the entities it controlled at the end of, or during, the year ended 30 June 2023.
Directors
The following persons were Directors of Investigator Resources Limited during the whole of the financial year and up to the
date of this report, unless otherwise stated:
Richard Hillis - Non-Executive Chair
Andrew McIlwain - Managing Director
Andrew Shearer - Non-Executive Director
Principal activities
The principal activity of the Company during the year was mineral exploration.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The loss for the consolidated entity after providing for income tax amounted to $2,640,976 (30 June 2022: $4,133,905).
The net result for the year includes an impairment charge of $646,106 associated with exploration and evaluation assets.
During the year, the Company incurred $4,130,001 expenditure on exploration activities across the Company’s tenements,
compared with $4,872,931 for the prior year.
At 30 June 2023, the Company had a cash position of $4,497,080 (2022: $ 6,221,599).
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the consolidated entity during the financial year.
Matters subsequent to the end of the financial year
No matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
Likely developments and expected results of operations
During the next financial year, the Company will pursue the strategy set out in the Review of Operations above.
Environmental regulation
The Company's operations are subject to significant environmental regulation under Commonwealth, State and Territory
legislation in relation to the discharge of hazardous waste and minerals arising from exploration activities conducted by the
Company in any of its tenements. At the date of this report there have been no known breaches of any environmental
obligation.
20
Investigator Resources Limited
Directors' report
30 June 2023
Information on Directors
Name:
Title:
Qualifications:
Experience and expertise:
Richard Hillis
Non-Executive Chair
BSc(Hons) Geology, PhD University of Edinburgh
Dr Hillis is a highly regarded geoscientist having graduated from Imperial College
(London) in 1985 with a BSc (Hons) in Geology and a PhD from the University of
Edinburgh in 1989.
Richard's career spans appointments at the University of Adelaide where he was
Mawson Professor of Geology, Statement of South Australia Chair of Petroleum
Geology, Head of the Australian School of Petroleum, and more recently Pro Vice-
Chanceller (Research Performance).
A founding director for the IPO of ASX listed Petratherm, Richard was also a founding
director of KCL Resources that ultimately backdoor listed on the ASX via Highfield
Resources which now has a market capitalisation of ~$275M. From 2010 to 2018
Richard was CEO of the Deep Exploration Technologies Cooperative Research Centre
(DET CRC) which developed transformative technologies for mineral exploration.
Richard was awarded South Australian Scientist of the Year in 2018.
Other current directorships:
None
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
Nil
4,000,000 (unlisted)
Name:
Title:
Qualifications:
Experience and expertise:
Andrew McIlwain
Managing Director
BE (Mining) Melb, MAusIMM, MAICD
Andrew has over 30 years’ experience in the mining industry. He is a qualified mining
engineer and has held operational, technical, senior management and executive roles
within Mount Isa Mines Limited, Central Norseman Gold Corp, WMC Resources,
Lafayette Mining and Unity Mining. More recently, he has been an independent
consultant for a number of Australian resource companies focusing on corporate
transactions and has acted as an independent Non-Executive Director of numerous
resource companies including Kidman Resources and Tusker Gold.
Andrew brings operational and corporate experience in a variety of fields including
establishment of operational sustainability, project development and both equity and
conventional debt financing. Andrew was previously the Chief Operating Officer of
Laguna Gold and is Non-Executive Chair of Emmerson Resources Ltd (ASX: ERM).
Emmerson Resources Ltd (ASX: ERM).
Other current directorships:
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
10,467,050
10,000,000 (unlisted) and 2,093,410 (listed options)
21
Investigator Resources Limited
Directors' report
30 June 2023
Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
Andrew Shearer
Non-Executive Director
BSc and MBA
Andrew holds a BSc (Hons) degree from Adelaide University and an MBA from the
University of South Australia and has been involved in the mining and finance industries
for more than 25 years. Most recently, Andrew held the position of Senior Resource
Analyst with PAC Partners Pty Ltd and previously with Phillip Capital, and Austock.
Establishing his career in the industry, Andrew held technical and senior management
roles with Mount Isa Mines Limited, Glengarry Resources Limited and the South
Australian Government. As an analyst, Andrew covered small to mid-cap resource
stocks across a broad suite of commodities and brings a breadth of experience in equity
research, investor relations, valuations, supply and demand analysis and capital
markets.
Executive director for Osmond Resources Ltd (ASX: OSM), Resolution Minerals
(ASX:RML).
Former directorships (last 3 years): Okapi Resources Limited (ASX:OKR), Andromeda Metals (ASX:ADN)
Interests in shares:
Interests in options:
2,000,000
2,000,000 (unlisted)
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes
directorships of all other types of entities, unless otherwise stated.
Company Secretary
Anita Addorisio
Ms Addorisio is an experienced finance professional with over 20 years’ senior finance experience and more than 7 years
ASX listed company secretary experience across several industry sectors including resources. She has extensive experience
in relation to public company responsibilities, including ASX and ASIC compliance. Anita is a Fellow of CPA and the
Governance Institute, and holds a Masters in Accounting.
Meetings of Directors
The number of meetings of the company's Board of Directors (the Board) held during the year ended 30 June 2023, and the
number of meetings attended by each Director were:
R. Hillis
A. McIlwain
A. Shearer
Full Board
Attended
Held*
8
8
8
8
8
8
*
Held: represents the number of meetings held during the time the director held office.
Due to its size and activities the Company does not have separate Board committees.
Remuneration report (audited)
The remuneration report details the Key Management Personnel remuneration arrangements for the consolidated entity, in
accordance with the requirements of the Corporations Act 2001 and its Regulations.
Key Management Personnel (KMP) are those persons having authority and responsibility for planning, directing and
controlling the activities of the entity, directly or indirectly, including all Directors.
22
Investigator Resources Limited
Directors' report
30 June 2023
The remuneration report is set out under the following main headings:
● Principles used to determine the nature and amount of remuneration
● Details of remuneration
● Service agreements
● Share-based compensation
● Additional disclosures relating to Key Management Personnel
Principles used to determine the nature and amount of remuneration
The objective of the consolidated entity's executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives
and the creation of value for shareholders, and it is considered to conform to the market best practice for the delivery of
reward. The Board of Directors (the Board) ensures that executive reward satisfies the following key criteria for good reward
governance practices:
●
●
●
●
competitiveness and reasonableness
acceptability to shareholders
performance linkage / alignment of executive compensation
transparency
The Board is responsible for determining and reviewing remuneration arrangements for its directors and executives. The
performance of the consolidated entity depends on the quality of its directors and executives. The remuneration philosophy
is to attract, motivate and retain high performance and high quality personnel.
The Board has structured an executive remuneration framework that is market competitive and complementary to the reward
strategy of the consolidated entity.
The reward framework is designed to align executive reward to shareholders' interests. The Board have considered that it
should seek to enhance shareholders' interests by:
●
focusing on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering
constant or increasing return on assets as well as focusing the executive on key non-financial drivers of value
attracting and retaining high calibre executives
●
Additionally, the reward framework should seek to enhance executives' interests by:
●
●
●
rewarding capability and experience
reflecting competitive reward for contribution to growth in shareholder wealth
providing a clear structure for earning rewards
In accordance with best practice corporate governance, the structure of non-executive Director and executive Director
remuneration is separate.
Non-Executive Directors remuneration
Fees and payments to Non-Executive directors reflect the demands and responsibilities of their role. Non-Executive directors'
fees and payments are reviewed periodically by the Board. The Board may, from time to time, receive advice from
independent remuneration consultants to ensure non-executive directors' fees and payments are appropriate and in line with
the market. The Chair's fees are determined independently to the fees of other non-executive directors based on comparative
roles in the external market. The Chair is not present at any discussions relating to the determination of his own remuneration.
ASX listing rules require the aggregate non-executive directors' remuneration be determined periodically by a general
meeting. The last determination was at the Annual General Meeting held on 18 November 2013, where the shareholders
approved a maximum annual aggregate remuneration of $500,000.
Fees paid to the Chair during FY23 was $75,000 per annum (including superannuation). Fees paid to the other Non-Executive
Directors were $50,000 per annum (including superannuation).
Managing Director
Base salary of $350,000 per annum plus statutory superannuation and annual short-term incentives of up to 30% of Annual
Salary structured with the quantum to be assessed in accordance with KPI’s to be agreed by the Board and the Managing
Director. In addition, the Company has awarded long term incentives of 15 million Performance Rights in 3 tranches to vest
against service, performance and share price conditions over 3 years.
23
Investigator Resources Limited
Directors' report
30 June 2023
Executive remuneration
The consolidated entity aims to reward executives based on their position and responsibility, with a level and mix of
remuneration which has both fixed and variable components.
The executive remuneration and reward framework has four components:
●
●
●
●
base pay and non-monetary benefits
short-term performance incentives
share-based payments
other remuneration such as superannuation and long service leave
The combination of these comprises the executive's total remuneration.
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the
Board based on individual and business unit performance, the overall performance of the consolidated entity and comparable
market remunerations.
Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle
benefits) where it does not create any additional costs to the consolidated entity and provides additional value to the
executive.
The short-term incentives (STI) are payable to Executives based upon the attainment of agreed corporate and individual
milestones and are reviewed and approved by the Board of Directors. During the year, $96,156 STI was paid to Mr Andrew
McIlwain on achievement of annual short-term incentive KPI's.
The long-term incentives (LTI) include long service leave and share-based payments. Executives are issued with equity
instruments as LTIs in a manner that aligns this element of remuneration with the creation of shareholder wealth. LTI grants
are made to Executives who are able to influence the generation of shareholder wealth and thus have a direct impact on the
creation of shareholder wealth. During the year, 20,000,000 options were issued to the Executives as LTI.
Consolidated entity performance and link to remuneration
With the exception of long-term incentives, the remuneration of the executives is not linked to the financial performance
measure of the Company.
Long term incentives granted to executives are linked to the improvement in the Company's share price.
Share prices at the end of the current financial year and the previous four financial years were:
2023
2022
2021
2020
2019
Share price (cents per share)
4.5
3.7
8.1
1.7
1.1
Share prices are subject to market sentiment and the international metal prices which may move independently of the
performance of the Key Management Personnel
Use of remuneration consultants
Remuneration consultants are engaged from time to time to provide independent information and guidance on remuneration
for Directors and the Executive Team. The independent consultants facilitate discussion, conduct external benchmarking,
and provide commentary on a number of remuneration issues and structures. Any advice provided by independent
consultants is used as a guide and is not a substitute for the considerations and procedures of the Board.
During the financial year ending 30 June 2023, the consolidated entity has not engaged any remuneration consultants.
Voting and comments made at the company's 30 November 2022 Annual General Meeting ('AGM')
At the 30 November 2022 AGM, 97.20% of the votes received supported the adoption of the remuneration report for the year
ended 30 June 2022. The company did not receive any specific feedback at the AGM regarding its remuneration practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of KMP of the consolidated entity are set out in the following tables.
24
Investigator Resources Limited
Directors' report
30 June 2023
Short-term benefits
Post-
employment
benefits
Long-term
benefits
^Share-
based
payments
Cash
salary
and fees
$
Cash
bonus
$
Termination
payment
$
Super-
Annuation
$
Long
service
leave
$
Equity-
settled
$
Total
$
67,873
45,249
-
-
350,000
96,156
207,658
670,780
32,948
129,104
-
-
-
-
-
7,127
4,751
36,750
24,150
72,778
-
-
-
-
-
54,600
54,600
129,600
104,600
189,675
672,581
145,200
444,075
409,956
1,316,737
30 June 2023
Non-Executive Directors:
R. Hillis
A. Shearer
Executive Directors:
A. McIlwain*
Other Key Management
Personnel:
J. Murray**
*
Cash bonus paid to A McIlwain on achievement of annual short-term incentive KPI’s.
Included in $189,675 were 5,000,000 performance rights which were cancelled under the performance rights plan
in January 2023 prior to vesting. $77,998 fair value attributed to those 5,000,000 performance rights has been
recognised as an expense within the remuneration report.
** The bonus of $32,948 to J Murray is payable as at 30 June 2023 upon the achievement of annual short-term incentive
KPI's.
^ Equity-settled share-based payments in the table above represents the valuation of the options and/or performance rights
granted to the relevant KMP, as required by Accounting Standard AASB 2- Share-based Payment to be accounted as the
cost to the company. The amount disclosed for equity-settled share-based payments represents the accounting valuation
recognised as cost to the company during the year as disclosed in Note 36 and does not represent cash remuneration to
the KMP. The Options on issue to KMP are out of the money as at the date of the report.
Short-term benefits
Post-
employment
benefits
Long-term
benefits
^Share-
based
payments
Cash
bonus
$
Termination
payment
$
Super-
Annuation
$
Long
service
leave
$
Equity-
settled
$
Total
$
30 June 2022
Non-Executive Directors:
R. Hillis*
A. Shearer
K. Wilson**
Executive Directors:
A. McIlwain***
Other Key Management
Personnel:
J. Murray****
Cash
salary
and fees
$
31,818
40,909
29,545
-
-
-
293,750
84,563
230,000
626,022
27,255
111,818
-
-
-
-
-
-
3,182
4,091
2,955
29,375
-
-
-
-
70,540
-
-
105,540
45,000
32,500
68,508
476,196
23,000
62,603
8,669
8,669
-
139,048
288,924
948,160
R. Hillis was appointed as Non-Executive Chair on 1 January 2022.
*
** K. Wilson resigned as Non-Executive Chair on 1 January 2022.
*** Cash bonus paid to A McIlwain on achievement of annual short-term incentive KPI’s.
**** J. Murray was identified as KMP on his appointment as the Exploration Manager effective 1 August 2020.
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Investigator Resources Limited
Directors' report
30 June 2023
^ Equity-settled share-based payments in the table above represents the valuation of the options and/or performance rights
granted to the relevant KMP, as required by Accounting Standard AASB 2- Share-based Payment to be accounted as the
cost to the company. The amount disclosed for equity-settled share-based payments represents the accounting valuation
recognised as cost to the company during the year as disclosed in Note 36 and does not represent cash remuneration to
the KMP. The Options on issue to KMP are out of the money as at the date of the report.
Service agreements
Remuneration and other terms of employment for Key Management Personnel are formalised in service agreements. Details
of these agreements are as follows:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Andrew McIlwain
Managing Director
1 October 2019
Notice period of 3 months (both parties)
Base salary of $350,000 per annum plus statutory superannuation and annual short-
term incentives of up to 30% of Annual Salary structured with the quantum to be
assessed in accordance with KPI’s to be agreed by the Board and the Managing
Director.
Jason Murray
Exploration Manager
1 August 2020
Notice period of 1 Month (both parties).
Base salary of $230,000 per annum plus statutory superannuation and annual short-
term incentives of up to 15% of annual salary upon the successful achievement of KPI’s
to be approved by the Managing Director and Board.
KMP have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
Options
The terms and conditions of each grant of options over ordinary shares affecting remuneration of Directors and other Key
Management Personnel in this financial year or future reporting years are as follows:
Name
A. McIlwain *
A. McIlwain
A. McIlwain
A. McIlwain
R. Hillis
J. Murray *
J. Murray
A. Shearer *
A. Shearer
Number of
options
granted
10,000,000
3,333,334
3,333,333
3,333,333
2,000,000
6,000,000
6,000,000
2,000,000
2,000,000
Vesting date and
Grant date exercisable date
Expiry date
Exercise
price
Fair value
per option
at grant date
20/11/2019
30/11/2022
30/11/2022
30/11/2022
30/11/2022
20/11/2019
19/12/2022
13/08/2020
30/11/2022
1/01/2023
1/01/2024
1/01/2025
30/11/2022
20/11/2019
19/12/2022
13/08/2020
30/11/2022
20/11/2022
19/12/2025
19/12/2025
19/12/2025
19/12/2025
20/11/2022
19/12/2025
20/11/2022
19/12/2025
$0.035
$0.076
$0.076
$0.076
$0.076
$0.035
$0.076
$0.035
$0.076
$0.008
$0.027
$0.027
$0.027
$0.027
$0.007
$0.024
$0.035
$0.027
*
10,000,000 options granted to A. Mcllwain has expired during the year.
Out of 2,000,000 options granted to J. Murray, 850,000 has been exercised and the balance 5,150,000 has expired
during the year.
2,000,000 options granted to A. Shearer has been exercised during the year.
All options were granted over unissued fully paid ordinary shares in the company. Employee Option Plan is part of the
Company's reward strategy, which seeks to reward performance in support of the achievement of business objectives and
share in the growth in value of the Company. The company issued the above options to the KMP on the following basis:
26
Investigator Resources Limited
Directors' report
30 June 2023
(i)
(ii)
10,000,000 options as approved by the shareholders on 30 November 2022 were granted to Mr McIlwain to be
vested in 3 tranches subject to service conditions.
6,000,000 options were issued to Mr Murray as part of company's remuneration policy to retain high calibre
executives and towards his performance in aligning with shareholders' interest. These options vested immediately at
the date of grant.
(iii) Mr Shearer and Dr Hillis were each issued 2,000,000 options as approved by shareholders on 30 November 2022.
These options vested immediately at the date of grant.
Listed Options:
As on 30 June 2023, A. Mcllwain holds 2,093,410 listed options.
Options granted carry no dividend or voting rights.
Performance rights
In December 2019, the Company issued 15,000,000 performance rights to Andrew McIlwain (Managing Director) vesting
upon meeting performance conditions.
During the year ended 30 June 2021, 5,000,000 performance rights vested upon meeting performance conditions. The
company issued 5,000,000 shares on the exercise of these performance rights at nil exercise price.
During the year ended 30 June 2022, 4,367,050 performance rights vested upon meeting performance conditions, the
company issued 4,367,050 shares on the exercise of these performance rights at nil exercise price. 632,950 performance
rights expired and were not converted to Fully Paid Ordinary Shares.
A review of remuneration across the company, the Board considered that the issuance of Performance Rights was no longer
an appropriate mechanism for Executive incentivisation and the Board resolved to cancel the Performance Rights Plan and
consequently the remaining 5,000,000 unvested Performance Rights on issue have been cancelled on 27 January 2023.
Additional disclosures relating to Key Management Personnel
Shareholding
The number of shares in the company held during the financial year by each Director and other members of Key Management
Personnel of the consolidated entity, including their personally related parties, is set out below:
Ordinary shares
A. McIlwain
A. Shearer
J. Murray
Balance at
the start of
the year
Received
as part of
remuneration
Additions
Other/
Disposal
Balance at
the end of
the year
10,467,050
-
312,500
10,779,550
-
-
-
-
-
2,000,000
850,000
2,850,000
-
-
(850,000)
(850,000)
10,467,050
2,000,000
312,500
12,779,550
Option holding
The number of options over ordinary shares in the company held during the financial year by each Director and other
members of Key Management Personnel of the consolidated entity, including their personally related parties, is set out below:
Balance at
the start of
the year
10,000,000
2,000,000
6,000,000
2,000,000
20,000,000
Granted
Exercised
Expired
Balance at
the end of
the year
Vested
and
Exercisable
10,000,000
2,000,000
6,000,000
2,000,000
20,000,000
-
(2,000,000)
(850,000)
-
(2,850,000)
(10,000,000)
-
(5,150,000)
-
(15,150,000)
10,000,000
2,000,000
6,000,000
4,000,000
22,000,000
3,333,334
2,000,000
6,000,000
4,000,000
15,333,334
Options over ordinary shares
A. McIlwain
A. Shearer
J. Murray
R. Hillis
Transactions with related parties
27
Investigator Resources Limited
Directors' report
30 June 2023
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties the current and previous reporting date.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
This concludes the remuneration report, which has been audited.
Shares under option
Unlisted Options
Unissued ordinary shares of Investigator Resources Limited under option at the date of this report are as follows:
Grant date
1 January 2022
30 November 2022
19 December 2022
Expiry date
31 December 2024
19 December 2025
19 December 2025
Exercise
price
Number
under option
$0.097
$0.076
$0.076
2,000,000
14,000,000
12,500,000
28,500,000
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the
company or of any other body corporate.
Listed Options
During the year under audit, 75,000,011 listed options were issued on 8 March 2023 comprising the Placement and Broker
Options component included under the Prospectus Offer. The Options were issued with an exercise price of $0.063 (6.3
cents) per share, expiring on 8 March 2025.
Outstanding at 30 June 2022
Granted
Options exercised
Options expired
Outstanding at 30 June 2023
KMP
No. of
Options
-
2,093,410
-
-
2,093,410
KMP
Weighted
average
exercise
price
Others
No. of
Options
Others
Weighted
average
exercise
price
-
0.001
-
-
0.001
-
230,021,035
(6,360)
-
230,014,675
-
0.001
0.001
-
0.001
28
Investigator Resources Limited
Directors' report
30 June 2023
Shares issued on the exercise of unlisted options
The following ordinary shares of Investigator Resources Limited were issued during the year ended 30 June 2023 and up to
the date of this report on the exercise of unlisted options granted:
Date options granted
20 November 2019
21 December 2022
Exercise
Price
Number of
shares
issued
$0.035
$0.035
2,850,000
2,000,000
4,850,000
Indemnity and insurance of officers
The company has indemnified the Directors and executives of the company for costs incurred, in their capacity as a Director
or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the company paid a premium in respect of a contract to insure the Directors and executives of the
company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company
or any related entity.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the company, or to 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 part of those proceedings.
Non-audit services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor
are outlined in Note 26 to the financial statements.
The Directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001.
The Directors are of the opinion that the services as disclosed in Note 26 to the financial statements do not compromise the
external auditor's independence requirements of the Corporations Act 2001 for the following reasons:
●
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity
of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code
of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including
reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the company,
acting as advocate for the company or jointly sharing economic risks and rewards.
●
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this Directors' report.
Auditor
Grant Thornton Audit Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.
29
Investigator Resources Limited
Directors' report
30 June 2023
This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the Directors
___________________________
Richard Hillis
Chair
15 September 2023
30
Grant Thornton Audit Pty Ltd
Grant Thornton House
Level 3
170 Frome Street
Adelaide SA 5000
GPO Box 1270
Adelaide SA 5001
T +61 8 8372 6666
Auditor’s Independence Declaration
To the Directors of Investigator Resources Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit
of Investigator Resources Limited for the year ended 30 June 2023, I declare that, to the best of my knowledge
and belief, there have been:
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the
audit; and
b no contraventions of any applicable code of professional conduct in relation to the audit.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
I S Kemp
Partner – Audit & Assurance
Adelaide, 15 September 2023
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one
another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
31
#10442425v2w
Investigator Resources Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2023
Other income
Interest income
Expenses
Employee benefit expenses
Administrative expenses
Exploration and evaluation expenses written off
Loss before income tax expense
Income tax expense
Loss after income tax expense for the year attributable to the owners of
Investigator Resources Limited
Other comprehensive income/(loss)
Items that will not be reclassified subsequently to profit or loss
Gain/ (Loss) on the revaluation of financial assets at fair value through other
comprehensive income, net of tax
Other comprehensive income/(loss) for the year, net of tax
Total comprehensive loss for the year attributable to the owners of
Investigator Resources Limited
Basic loss per share
Diluted earnings per loss
Consolidated
Note 30 June 2023 30 June 2022
$
$
5
6
7
8
14,593
113,121
234,279
41,208
(1,304,592)
(817,992)
(646,106)
(608,352)
(830,975)
(2,970,065)
(2,640,976)
(4,133,905)
-
-
(2,640,976)
(4,133,905)
22,000
(44,500)
22,000
(44,500)
(2,618,976)
(4,178,405)
Cents
Cents
35
35
(0.19)
(0.19)
(0.31)
(0.31)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
32
Investigator Resources Limited
Statement of financial position
As at 30 June 2023
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Prepayments
Total current assets
Non-current assets
Financial asset at fair value through other comprehensive income
Property, plant and equipment
Right-of-use assets
Exploration and evaluation
Other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Lease liabilities
Provisions
Joint operation contribution received in advance
Total current liabilities
Non-current liabilities
Lease liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Consolidated
Note 30 June 2023 30 June 2022
$
$
9
10
11
12
13
14
15
16
17
18
19
18
4,497,080
105,545
12,060
53,365
4,668,050
6,221,599
100,881
27,387
11,420
6,361,287
209,000
79,592
83,382
26,601,007
116,760
27,089,741
187,000
15,136
139,847
23,117,112
116,760
23,575,855
31,757,791
29,937,142
475,481
64,208
452,737
10
992,436
999,340
61,146
372,296
-
1,432,782
28,230
27,487
55,717
80,786
12,000
92,786
1,048,153
1,525,568
30,709,638
28,411,574
20
21
74,734,441
1,031,735
(45,056,538)
70,736,800
312,382
(42,637,608)
30,709,638
28,411,574
The above statement of financial position should be read in conjunction with the accompanying notes
33
Investigator Resources Limited
Statement of changes in equity
For the year ended 30 June 2023
Consolidated
Issued
capital
$
Share option
Reserves
$
Financial
asset
Reserve
$
Accumulated
losses
$
Total equity
$
Balance at 1 July 2021
70,350,184
421,737
Loss after income tax expense for the year
Other comprehensive loss for the year, net of
tax
Total comprehensive loss for the year
Shares issued
Options issued to Key Management Personnel
and employees
Share based expense related to performance
rights
Exercise of options
Exercise of performance rights
Lapse of performance rights
-
-
-
192,000
-
-
-
-
-
97,182
-
130,520
64,096
-
41,867
(130,520)
(64,096)
(9,288)
-
-
(38,512,991)
32,258,930
(4,133,905)
(4,133,905)
(44,500)
-
(44,500)
(44,500)
(4,133,905)
(4,178,405)
-
-
-
-
-
-
-
-
-
-
-
9,288
192,000
97,182
41,867
-
-
-
Balance at 30 June 2022
70,736,800
356,882
(44,500)
(42,637,608)
28,411,574
Consolidated
Issued
capital
$
Share option
Reserves
$
Financial
asset
Reserve
$
Accumulated
losses
$
Total equity
$
Balance at 1 July 2022
70,736,800
356,882
(44,500)
(42,637,608)
28,411,574
Loss after income tax expense for the year
Other comprehensive income for the year, net
of tax
Total comprehensive income/(loss) for the year
-
-
-
-
-
-
-
(2,640,976)
(2,640,976)
22,000
-
22,000
22,000
(2,640,976)
(2,618,976)
Shares issued
Share issue cost
Expiry of options
Exercise of options
Cancellation of options
Listed options issued
Share based expense
4,370,152
(461,599)
-
89,090
-
-
-
-
250,000
(144,049)
(89,090)
(77,998)
157,116
601,373
-
-
-
-
-
-
-
-
-
144,049
-
77,996
-
-
4,370,152
(211,599)
-
-
(2)
157,116
601,373
Balance at 30 June 2023
74,734,443
1,054,234
(22,500)
(45,056,539)
30,709,638
The above statement of changes in equity should be read in conjunction with the accompanying notes
34
Investigator Resources Limited
Statement of cash flows
For the year ended 30 June 2023
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Other income
Consolidated
Note 30 June 2023 30 June 2022
$
$
(1,514,468)
95,921
14,593
(1,099,291)
38,019
2,779
Net cash used in operating activities
34
(1,403,954)
(1,058,493)
Cash flows from investing activities
Exploration expenditure
Payments for property, plant and equipment
Payments for bank guarantee
Payment of joint operation contribution received in advance
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Proceeds from exercising options
Proceeds from issue of listed options
Cost of raising capital
Net cash from financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
20
(4,500,819)
(85,999)
(49,416)
-
(4,249,178)
(12,200)
-
(237,455)
(4,636,234)
(4,498,833)
4,200,402
169,750
157,116
(211,599)
192,000
-
-
-
4,315,669
192,000
(1,724,519)
6,221,599
(5,365,326)
11,586,925
Cash and cash equivalents at the end of the financial year
9
4,497,080
6,221,599
The above statement of cash flows should be read in conjunction with the accompanying notes
35
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 1. General information
The financial statements cover Investigator Resources Limited as a consolidated entity consisting of Investigator
Resources Limited and the entities it controlled at the end of, or during, the year. The financial statements are presented in
Australian dollars, which is Investigator Resources Limited's functional and presentation currency.
Investigator Resources Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its
registered office and principal place of business are:
Registered office
Principal place of business
47-49 King Street, Norwood SA 5067
47-49 King Street, Norwood SA 5067
A description of the nature of the consolidated entity's operations and its principal activities are included in the Directors'
report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of Directors, on 15 September 2023. The
Directors have the power to amend and reissue the financial statements.
Note 2. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out either in the respective
notes or below. These policies have been consistently applied to all the years presented, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board (AASB) that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001, as appropriate
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board (IASB).
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of financial assets at fair value through other comprehensive income.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity'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 3.
Going Concern
These financial statements have been prepared on a going concern basis which contemplates the continuity of normal
business activities and the realisation of assets and discharge of liabilities in the normal course of business. This includes
the realisation of capitalised exploration expenditure of $26,601,007 (30 June 2022: $23,117,112).
The consolidated group has incurred a net loss after tax for the year ended 30 June 2023 of $2,640,976 (30 June 2022:
$4,133,905) and operations were funded by a net cash outflow, from operating and investing activities of $6,040,188 (30
June 2022: net cash outflow of $5,557,326). At 30 June 2023, the consolidated group had net current assets of $3,675,614
(June 2022: net current assets of $4,928,505).
36
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 2. Significant accounting policies (continued)
The consolidated group’s ability to continue as a going concern is contingent on raising additional capital and/or the
successful exploration and subsequent exploitation of its areas of interest through sale or development. Should the
consolidated entity not achieve the matters set out above, there would then be significant uncertainty over the ability of the
consolidated entity to continue as a going concern, and, therefore, it may have to realise its assets and extinguish its liabilities,
other than in the ordinary course of business and at amounts different from those stated in the 2023 annual financial report.
The 2023 annual financial report does not include any adjustments that may be necessary if the consolidated group is unable
to continue as a going concern.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only.
Supplementary information about the parent entity is disclosed in Note 29.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Investigator Resources
Limited (company or parent entity) as at 30 June 2023 and the results of all subsidiaries for the year then ended. Investigator
Resources Limited and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.
Subsidiaries are all those entities over which the consolidated entity has control. 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.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the consolidated entity.
The acquisition of subsidiaries is accounted for using the acquisition 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.
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.
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial
measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at
either amortised cost or fair value depending on their classification. Classification is determined based on both the business
model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an
accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the
consolidated entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable
expectation of recovering part or all of a financial asset, it's carrying value is written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as
financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading, where
they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or (ii)
designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the consolidated entity
intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition.
37
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 2. Significant accounting policies (continued)
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable
income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary
differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the
assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:
● When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor
taxable profits; or
● When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the
timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.
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.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax
assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the
carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable
that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against
current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on
either the same taxable entity or different taxable entities which intend to settle simultaneously.
Government Grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be
received and the Company will comply with all attached conditions.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within
12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used
to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle;
it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the
assets, and obligations for the liabilities, relating to the arrangement. The consolidated entity has recognised its share of
jointly held assets, liabilities, revenues and expenses of joint operations. These have been incorporated in the financial
statements under the appropriate classifications.
Impairment of non-financial assets
Non-financial 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.
38
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 2. Significant accounting policies (continued)
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the
present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or
cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to
form a cash-generating unit.
Farm-out arrangements
A farm-out arrangement involves the consolidated entity agreeing to provide a working interest in its tenements to a third
party (the farmee), provided that the farmee incurs certain expenditures on those tenements to earn that interest. The
consolidated entity uses the carrying amount of the tenements before the farm-out as the carrying amount for the portion of
the interest retained. The consolidated entity credits any cash consideration received against the carrying amount, with any
excess included as a gain in profit or loss. The consolidated entity does not record exploration expenditures on the tenements
made by the farmee.
Goods and Services Tax (GST) and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the 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 tax authority is included in other receivables or other 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 tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
Note 3. 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.
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 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.
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.
Employee benefits provision
The liability for employee benefits expected to be settled more than 12 months from the reporting date are recognised and
measured at the present value of the estimated future cash flows to be made in respect of all employees at the reporting
date. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion and
inflation have been taken into account.
39
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 3. Critical accounting judgements, estimates and assumptions (continued)
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.
Note 4. Operating segments
Identification of reportable operating segments
The Board has considered the requirements of AASB 8 Operating Segments and the internal reports that are reviewed by
the Board in allocating resources and has concluded at this time that there are no separately identifiable segments.
Note 5. Other income
Other income
Note 6. Employee benefit expenses
Benefits provided to employees
Share based employee expenses
Less charged to exploration and evaluation assets
Consolidated
30 June 2023 30 June 2022
$
$
14,593
234,279
Consolidated
30 June 2023 30 June 2022
1,531,699
601,373
2,133,072
1,297,424
139,048
1,436,472
(828,480)
(828,120)
1,304,592
608,352
40
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 7. Administrative expenses
Audit fees
Other professional services paid to related entities of the auditor
Accounting and company secretarial fees
Depreciation
Directors' fees
Insurance and legal
Minimum lease rental payment
Shareholders communications
Office expenses
Other expenses
Note 8. Income tax expense
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
Tax at the statutory tax rate of 25%
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Adjustment for non-deductible expenses
Effects due to distribution of JMEI credits
Deductible capital raising costs
Allowable exploration and evaluation expenditure
Prior period exploration and evaluation expenses written off
Net non-allowable expenses
Reduction of losses in prior periods
Effects due to change in company tax rate
Application of AASB 16 Lease standard
Tax effect of temporary differences not brought to account
Income tax expense
Tax losses not recognised
Unused tax losses for which no deferred tax asset has been recognised
Potential tax benefit @ 25%
Consolidated
30 June 2023 30 June 2022
$
$
61,141
8,241
136,020
17,442
125,000
73,533
3,940
235,822
111,928
44,925
51,525
10,300
123,011
11,966
111,363
135,382
1,569
111,494
242,036
32,329
817,992
830,975
Consolidated
30 June 2023 30 June 2022
$
$
(2,640,976)
(4,133,905)
(660,244)
(1,033,476)
176,339
20,215
(483,905)
-
(43,348)
(1,044,803)
161,527
48,627
(17,976)
-
-
1,379,878
(1,013,261)
256,462
(62,786)
(1,228,177)
742,516
95,200
-
543,392
983
665,671
-
-
Consolidated
30 June 2023 30 June 2022
$
$
(69,085,953)
(63,638,343)
(17,271,488)
(15,909,586)
The above potential tax benefit for tax losses has not been recognised in the statement of financial position. These tax losses
can only be utilised in the future if the continuity of ownership test is passed, or failing that, the same business test is passed.
Franking credits
As at the reporting date, the company has NIL franking credits (June 2022: NIL).
41
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 9. Current assets - cash and cash equivalents
Cash at bank
Cash on deposit
Consolidated
30 June 2023 30 June 2022
$
$
747,080
3,750,000
2,221,599
4,000,000
4,497,080
6,221,599
At balance date, the Company has a business credit card facility with a limit of $50,000. Credit card transactions are
reconciled monthly and credit card balances payable are included in trade and other payables.
Accounting policy for cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments 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.
Note 10. Current assets - trade and other receivables
GST receivable
Other receivables
Consolidated
30 June 2023 30 June 2022
$
$
33,464
72,081
95,420
5,461
105,545
100,881
Accounting policy for trade and other receivables
Trade, GST and other receivables are recognised initially at fair value and subsequently measured at amortised cost using
effective interest method less any allowance for expected credit losses. These are generally due for settlement within 30
days. Other receivables represents the interest income receivable on the term deposits.
Note 11. Current assets - inventories
Diesel fuel
Accounting policy for inventories
Inventories is stated at the lower of cost and net realisable value.
Consolidated
30 June 2023 30 June 2022
$
$
12,060
27,387
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion
and the estimated costs necessary to make the sale.
42
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 12. Non-current assets - Financial asset at fair value through other comprehensive income
Ordinary shares in Osmond Resources Ltd
Reconciliation
Reconciliation of the carrying amounts at the beginning and end of the current and previous
financial year are set out below:
Opening fair value
Additions
Revaluation increments/(decrements)
Closing fair value
Consolidated
30 June 2023 30 June 2022
$
$
209,000
187,000
187,000
-
22,000
-
231,500
(44,500)
209,000
187,000
On 18 October 2021, Kimba Minerals Pty Ltd, a wholly-owned subsidiary of the Company entered into a binding Terms Sheet
with Osmond Resources Ltd exploration on Fowler Domain tenements held by Kimba Minerals Pty Ltd. Upon signing the
Term Sheet, the Company were issued 200,000 shares (@ a issue price of $0.1 per share). On 13 April 2022, further 900,000
(@ a IPO price of $0.2 per share) shares were issued to the Company upon listing of Osmond Resources Limited. These
investment in shares is classified as level 1 in fair value measurement hierarchy as Osmond Resources Limited is listed on
Australian Securities Exchange (ASX: OSM). As at 30 June 2023, the investment in shares is fair value based on the quoted
market price of $0.19 per share at $209k. As the time of initial recognition, the company has made an irrevocable election
for these investments to present subsequent changes in fair value in other comprehensive income.
Refer to note 31 for further information on interests in earn-in arrangements.
Note 13. Non-current assets - right-of-use assets
Office premises - right-of-use
Consolidated
30 June 2023 30 June 2022
$
$
83,382
139,847
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2021
Additions
Depreciation expense
Balance at 30 June 2022
Additions
Depreciation expense
Balance at 30 June 2023
43
Office
premises
right-of-use
$
116,299
86,290
(62,742)
139,847
11,776
(68,241)
Total
$
116,299
86,290
(62,742)
139,847
11,776
(68,241)
83,382
83,382
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 13. Non-current assets - right-of-use assets (continued)
Accounting policy for right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the
cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and
restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful
life of the asset, whichever is the shorter. Where the 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.
Note 14. Non-current assets - exploration and evaluation
Exploration and evaluation Asset - at carrying value
Opening balance - at carrying value
Capitalised exploration expenditure
Impairment
Consolidated
30 June 2023 30 June 2022
$
$
26,601,007
23,117,112
$
$
23,117,112
4,130,001
(646,106)
21,214,246
4,872,931
(2,970,065)
26,601,007
23,117,112
A review of the consolidated entity's exploration licenses was undertaken as at 30 June 2023 and management's assessment
was that exploration costs incurred on all exploration tenements/assets with the exception of the Paris Silver Project (on the
Peterlumbo Tenement) and Molyhil project will be impaired due to not being recoverable from development or sale. The
related exploration and evaluation assets have been written off which resulted in an impairment charge of $646,106.
Accounting policy for exploration and evaluation assets
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried
forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through
the successful development and exploitation of an area of interest, or by its sale, or exploration activities are continuing in
an area and activities have not reached a stage which permits a reasonable estimate of the existence or otherwise of
economically recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure incurred
thereon is written off in the year in which the decision is made.
Note 15. Non-current assets - other assets
Consolidated
30 June 2023 30 June 2022
$
$
116,760
116,760
Security deposits
Security deposits are held towards tenement applications and rental bond.
44
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 16. Current liabilities - trade and other payables
Trade payables
Sundry payables
Consolidated
30 June 2023 30 June 2022
$
$
440,601
34,880
951,282
48,058
475,481
999,340
Refer to Note 23 for further information on financial instruments.
Accounting policy for trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial
year and which are unpaid. Due to their short-term nature they are measured at face value as they are less than 12-months
maturity. The amounts are unsecured and are usually paid within 30 days of recognition.
Note 17. Current liabilities - lease liabilities
Consolidated
30 June 2023 30 June 2022
$
$
64,208
61,146
Consolidated
30 June 2023 30 June 2022
$
$
259,299
193,438
208,669
163,627
452,737
372,296
Consolidated
30 June 2023 30 June 2022
$
$
27,487
12,000
27,487
12,000
Lease liability
Refer to Note 23 for further information on financial instruments.
Note 18. Provisions - Current liabilities
Annual leave
Long service leave
Provisions – Non-Current liabilities
Long service leave
45
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 18. Current liabilities - provisions (continued)
Accounting policy for employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities
are settled.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are
measured at 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,
experience of employee departures and periods of service. Expected future payments are discounted using market yields at
the reporting date on high quality corporate bonds with terms to maturity and currency that match, as closely as possible, the
estimated future cash outflows.
Note 19. Non-current liabilities - lease liabilities
Lease liability
Refer to Note 23 for further information on financial instruments.
Consolidated
30 June 2023 30 June 2022
$
$
28,230
80,786
Accounting policy for 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.
Note 20. Equity - issued capital
Consolidated
30 June 2023
Shares
30 June 2022 30 June 2023 30 June 2022
$
Shares
$
Ordinary shares - fully paid
1,437,170,029
1,332,313,657
74,734,441
70,736,800
46
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 20. Equity - issued capital (continued)
Movements in ordinary share capital
Details
Balance 01 July 2021
Exercise of unlisted options
Vesting of performance rights
Balance 30 June 2022
Exercise of unlisted options
Exercise of unlisted options
Placement of shares
IVRO Options
Cost of capital
Balance as at 30 June 2023
Shares
1,323,946,607
4,000,000
4,367,050
1,332,313,657
2,850,000
2,000,000
100,000,000
6,372
-
1,437,170,029
$0.050
$0.000
$0.042
$0.070
$0.043
$0.060
$0.000
$
70,350,184
322,520
64,096
70,736,800
119,700
139,140
4,200,000
400
(461,599)
74,734,441
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion
to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company
does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
Share buy-back
There is no current on-market share buy-back.
Capital risk management
The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that
it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to
reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated
as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The consolidated entity would look to raise capital when the Directors consider that, from a capital management perspective,
funding is required to support the Investigator’s exploration and development strategies, or when an opportunity to invest in
a business or company was seen as value adding relative to the current company's share price at the time of the investment.
The consolidated entity has regularly informed the market that it will pursue additional investments that are value accretive.
The capital risk management policy remains unchanged from the 2022 Annual Report.
Accounting policy for issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
47
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 21. Equity - reserves
Financial asset reserve
Share options reserve
Consolidated
30 June 2023 30 June 2022
$
$
(22,500)
1,054,235
(44,500)
356,882
1,031,735
312,382
Financial assets reserve
The reserve is used to recognise increments and decrements in the fair value of financial assets at fair value through other
comprehensive income.
Share options reserve
The share options reserve records items recognised as expenses on valuation of options. Refer to Note 36 for share based
payments made during the year ended 30 June 2023 and 30 June 2022.
Note 22. Equity - dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 23. Financial instruments
Financial risk management objectives
The consolidated entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price
risk and interest rate risk), credit risk and liquidity risk. The consolidated entity uses different methods to measure different
types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate and ageing analysis
for credit risk.
Risk management is carried out by senior finance executives (Finance) under policies approved by the Board of Directors
(the Board). These policies include identification and analysis of the risk exposure of the consolidated entity and appropriate
procedures, controls and risk limits. Finance identifies, evaluates and hedges financial risks within the consolidated entity's
operating units. Finance reports to the Board on a monthly basis.
The consolidated entity’s financial instruments consist mainly of deposits with banks, listed investments, accounts receivable,
accounts payable and loans to related parties.
Market risk
Foreign currency risk
The consolidated entity is not exposed to foreign currency risk through foreign exchange rate fluctuations.
Price risk
The consolidated entity is exposed to material share price movements for the listed investments held.
Interest rate risk
The consolidated entity's main interest rate risk arises interest income it can potentially earn on surplus cash deposits. The
Company has no interest bearing borrowings from long-term borrowings and hence not exposed to any interest rate risk from
related variable rates.
The consolidated entity has cash and cash equivalents totalling $4,497,080 (2022: $6,221,599). An official increase/decrease
in interest rates of 0.1% (2022: 0.1%) basis points would have an adverse/favourable effect on profit before tax of $4,546
(2022: $6,222) per annum.
Credit risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised
financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance
sheet and notes to the financial statements.
48
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 23. Financial instruments (continued)
The credit risk for cash and cash equivalents is considered negligible as the consolidated entity invests its surplus funds with
reputable Australian banks with high quality external credit ratings. The consolidated entity does not have any other material
credit risk exposure to any single material credit risk exposure to any single receivable or group of receivables under financial
instruments entered into by the consolidated entity.
Liquidity risk
Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
The consolidated entity manages liquidity risk by maintaining adequate cash reserves and forecast cash flows and matching
the maturity profiles of financial assets and liabilities.
Remaining contractual maturities
The following tables detail the consolidated entity's remaining contractual maturity for its financial instrument liabilities. The
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining
contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.
Consolidated - 30 June 2023
Non-derivatives
Non-interest bearing
Trade and other payables
Interest-bearing
Lease liability
Total non-derivatives
Consolidated - 30 June 2022
Non-derivatives
Non-interest bearing
Trade and other payables
Interest-bearing
Lease liability
Total non-derivatives
Weighted
average
interest rate
%
1 year or
less
$
Between 1
and 2 years
$
Between 2
and 5 years Over 5 years
$
$
Remaining
contractual
maturities
$
-
475,481
-
7.50%
69,714
545,195
28,917
28,917
-
-
-
-
-
-
475,481
98,631
574,112
Weighted
average
interest rate
%
1 year or
less
$
Between 1
and 2 years
$
Between 2
and 5 years Over 5 years
$
$
Remaining
contractual
maturities
$
-
972,085
-
-
7.50%
70,400
1,042,485
60,775
60,775
23,925
23,925
-
-
-
972,085
155,100
1,127,185
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
49
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 24. Fair value measurement
Fair value hierarchy
The following tables detail the consolidated entity's assets and liabilities, measured or disclosed at fair value, using a three
level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or
indirectly.
Level 3: Unobservable inputs for the asset or liability.
Consolidated - 30 June 2023
Assets
Investment in Osmond Resources shares
Total assets
Consolidated - 30 June 2022
Assets
Investment in Osmond Resources shares
Total assets
Level 1
$
Level 2
$
Level 3
$
Total
$
209,000
209,000
Level 1
$
Level 2
$
187,000
187,000
-
-
-
-
Level 3
$
-
-
-
-
209,000
209,000
Total
$
187,000
187,000
There were no transfers between levels during the financial year.
Accounting policy for fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair
value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date; and assumes that the transaction will take place either: in the principal
market; or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming
they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and
best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable
inputs.
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.
Note 25. Key Management Personnel disclosures
Directors
The following persons were Directors of Investigator Resources Limited during the financial year:
A. McIlwain - Managing Director
A. Shearer - Non-Executive Director
R. Hillis - Non-Executive Chair
50
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 25. Key Management Personnel disclosures (continued)
Other Key Management Personnel
The following person also had the authority and responsibility for planning, directing and controlling the major activities of the
consolidated entity, directly or indirectly, during the financial year:
J. Murray - Exploration Manager
Compensation
The aggregate compensation made to Directors and other members of Key Management Personnel of the consolidated
entity is set out below:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Share-based payments
Note 26. Remuneration of auditors
Consolidated
30 June 2023 30 June 2022
$
$
799,884
72,778
-
444,075
737,840
62,603
8,669
139,048
1,316,737
948,160
During the financial year the following fees were paid or payable for services provided by, the auditor of the company:
Audit services -
Audit or review of the financial statements
Other services -
Tax compliance and advisory services
Note 27. Commitments
Consolidated
30 June 2023 30 June 2022
$
$
61,141
51,525
8,241
10,300
69,382
61,825
The consolidated entity has certain obligations to perform exploration work and expend minimum amounts of money on such
works on mineral exploration tenements.
These obligations will vary from time to time, subject to statutory approval. The terms of current and future joint ventures, the
grant or relinquishment of licences and changes to licence areas at renewal or expiry, will alter the expenditure commitments
of the consolidated entity. To keep tenements in good standing, work programs should meet certain minimum expenditure
requirements. If the minimum expenditure requirements are not met, the Company has the option to negotiate new terms or
relinquish the tenements. The Company also has the ability to meet expenditure requirements by joint venture or farm-in
agreements.
51
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 27. Commitments (continued)
Total expenditure commitments at balance date in respect of minimum expenditure requirements not provided for in the
financial statements are approximately:
Consolidated
30 June 2023 30 June 2022
$
$
1,452,727
1,443,241
229,614
1,340,603
2,895,968
1,570,217
Exploration Expenditure Commitments
Committed at the reporting date but not recognised as liabilities, payable:
Not later than one year
Later than one year but not later than two years
Note 28. Related party transactions
Parent entity
Investigator Resources Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in Note 30.
Farm-out Arrangements
Interests in Farm-out Arrangements are set out in Note 32
Key Management Personnel
Disclosures relating to Key Management Personnel are set out in Note 25 and the remuneration report included in the
Directors' report.
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Note 29. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Loss after income tax
Comprehensive loss
Parent
30 June 2023 30 June 2022
$
$
(2,640,976)
(4,133,905)
(2,618,976)
(4,178,405)
52
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 29. Parent entity information (continued)
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Financial asset reserve
Share options reserve
Accumulated losses
Total equity
Parent
30 June 2023 30 June 2022
$
$
4,668,050
6,361,287
31,757,791
29,937,142
992,436
1,432,782
1,048,154
1,525,568
74,734,441
(22,500)
1,054,235
(45,056,538)
70,736,800
(44,500)
356,882
(42,637,608)
30,709,638
28,411,574
Commitments for the parent entity are the same as those for the consolidated entity.
The parent entity has not entered into a deed of cross guarantee nor are there any contingent liabilities at year end.
Note 30. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in Note 2:
Name
Sunthe Uranium Pty Ltd
Gilles Resources Pty Ltd
Silver Eyre Pty Ltd
Kimba Minerals Pty Ltd
Goyder Resources Pty Ltd
Gawler Resources Pty Ltd
Fram Resources Pty Ltd
Principal place of business /
Country of incorporation
Ownership interest
30 June 2023 30 June 2022
%
%
Australia
Australia
Australia
Australia
Australia
Australia
Australia
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Fram Resources Pty Ltd was incorporated on 2 December 2021 as a separate entity to hold exploration licences if required.
53
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 31. Interests in Earn-In Arrangements
Molyhil Mining Pty Ltd
On 21 November 2022, Fram Resources Pty Ltd (Fram), a wholly-owned subsidiary of Investigator Resources Limited
entered in a Heads of Agreement (HoA) with Molyhil Mining Pty Ltd (Molyhil), a wholly own subsidiary of Thor Mining PLC
(ASX:THR) for exploration on the Molyhil and Bonya tenements (Tenements) by Fram. Upon the execution of HoA, Fram
paid a $100,000 execution fee to Molyhil under the terms of the agreement.
Under the Stage 1 Program, Fram may earn a 25% interest in the Molyhil tenements and 40% interest in Bonya tenement
(EL29107) subject to its spending of $1 million on agreed exploration activities within 18 months from the Stage 1
commencement date. This includes the above Execution fee paid.
Upon the transfer to the interest in the tenements above, Fram and Moyhil will proceed for a Joint Operation agreement
with initial joint operation interest of 25% for Fram and 75% for Molyhil tenements. On formalisation of Fram’s 25% joint
operation interest, Investigator to issue Molyhil $250,000 of IVR shares as the joint operation consideration.
Upon commencement of joint operation, under the Stage 2 program, Fram to spend a further $2 million on the exploration
activities on or before sixth anniversary of the Joint Operation commencement date to earn-in further 26% interest in the
Molyhil tenements.
Under stage 3 Program, Fram will spend a further $5 million on the exploration activities on or before sixth anniversary of
the Joint Operation commencement date to earn-in further 29% interest in the Molyhil tenements. This will bring Fram’s
Joint Operation interest in Molyhil tenement to 80%.
On formalisation of Fram’s 80% Joint Operation interest, Investigator will issue $250,000 of IVR shares to Molyhil.
54
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 32. Interests in Farm-out Arrangements
(i) Osmond Resources Ltd
On 18 October 2021, Kimba Minerals Pty Ltd, a wholly-owned subsidiary of Investigator Resources Limited entered into
a binding Terms Sheet with unlisted Osmond Resources Ltd for exploration on Fowler Domain tenements held by Kimba
Minerals Pty Ltd. Under this agreement, Osmond will fund up to $2.75 million in a two-stage Earn-In exploration program
to explore Investigator's Fowler Domain tenement package over 6 years. Acknowledging the pre-listing status of
Osmond, there were several considerations and conditions precedent, including the listing of Osmond on ASX by 29
March 2022. Osmond listed on the ASX 22 March 2022.
Under the Stage 1 Program, Osmond may earn a 51% as an interest in the Fowler Domain tenements subject to its
spending of $750,000 on exploration expenditure over 3 years. Osmond can further elect to proceed with the Stage-2
Earn-In by spending up to an additional $2 million of exploration expenditure over a further 3 years for a further 29%
interest in the Fowler Domain tenements.
Post satisfactory completion of Stage 2, and with Osmond Fowler Domain having earned an 80% Joint Venture interest,
Investigator's 20% interest will be free carried through to completion of a Pre-Feasibility Study. Once completed,
Investigator may elect to either fund further exploration and development costs on a pro-rata basis, or dilute. If
Investigator's Joint Venture dilutes to 5%, the interest will convert to a 1% net smelter return royalty.
Osmond have informed the Company that, subject to finalisation of an NTMA with the Traditional Owners of the area,
they are preparing to undertake regional geophysical exploration across the tenements.
At the date of this report Osmond Resources is yet to commence fieldwork on the Fowler Domain project and holds a
0% interest under the terms of the agreement.
(ii) DGO Gold Ltd
At the date of this report, the Company is under a Heads of Agreement with Yandan Gold Mines, a wholly-owned
subsidiary of DGO Gold Ltd for exploration on tenements EL6643, EL6642, EL6641, EL6640 and EL6402 held by
Gawler Resources Pty Ltd. DGO Gold Ltd was acquired by Gold Road Resources Ltd (ASX:GOR) in July 2022.
On 18 September 2020, Gawler Resources Pty Ltd, a wholly owned subsidiary of Investigator Resources Limited
entered into a Heads of Agreement with Yandan Gold Mines Pty Ltd (Yandan), a wholly owned subsidiary of DGO Gold
Ltd for exploration on tenements EL5704, EL5705, EL5706, EL5738 and EL6402 (Tenements) held by Gawler
Resources Pty Ltd. Under this agreement, Yandan have satisfactorily completed the expenditure of the minimum
$350,000 on exploration activities under Stage 1 Commitment.
Following the satisfactory completion of the Stage 1 Commitment, Yandan indicated its intention to progress to a 51%
joint venture by funding a further $2 million under the Stage 2 Commitment within 24 months of the completion of Stage
1 Commitment. As of 30 June 2023, Yandan has completed Stage 1 Commitment and has funded approximately $1.5
million out of the $2 million funding under Stage 2 Commitment. The funding under stage 2 is still in progress.
Upon meeting the Stage 2 Commitment, Yandan will be entitled to a 51% interest in the Tenements upon which a Joint
operation agreement will be executed.
Upon commencement of Joint Venture, Yandan can elect to earn-in a further 29% interest in the Tenements through
completing the Stage 3 Commitment, under which Yandan must spend a further $4 million on exploration on or before
the second anniversary of the Joint Venture Commencement Date. Upon meeting the Stage 3 Commitment, an
additional 29% interest in the tenements will be transferred to Yandan for a total Joint Venture interest of 80%.
Note 33. Events after the reporting period
No matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
55
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 34. Cash flow information
Reconciliation of loss after income tax to net cash used in operating activities
Loss after income tax expense for the year
Adjustments for:
Depreciation and amortisation
Investment
Employee options expense
Exploration expenditure written off
AASB 16 adjustment
Change in operating assets and liabilities:
(Increase)/Decrease in trade and other receivables
(Increase)/Decrease in other assets
(Decrease)/Increase in provisions – current
(Decrease)/Increase in creditors and accruals
Consolidated
30 June 2023 30 June 2022
$
$
(2,640,976)
(4,133,905)
10,116
-
601,373
646,106
-
(17,203)
(12,538)
-
9,168
5,023
(231,500)
139,048
2,970,065
379
(3,189)
29,797
148,226
17,563
Net cash used in operating activities
(1,403,954)
(1,058,493)
Note 35. Earnings per share
Consolidated
30 June 2023 30 June 2022
$
$
Loss after income tax attributable to the owners of Investigator Resources Limited
(2,640,976)
(4,133,905)
Weighted average number of ordinary shares used in calculating basic earnings per share 1,387,427,829 1,328,055,625
Weighted average number of ordinary shares used in calculating diluted earnings per
share
1,387,427,829 1,328,055,625
Number
Number
Basic loss per share
Diluted earnings per loss
Accounting policy for earnings per share
Cents
Cents
(0.19)
(0.19)
(0.31)
(0.31)
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Investigator Resources Limited,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares
outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts 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.
56
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 36. Share-based payments
Share based payments expense during the period is $601,373 (30 June 2022: $139,048) which relates to performance rights
and options issued to KMP and other employees of the Company.
Unlisted Options
On 30 November 2022, 14,000,000 unlisted options (exercisable at $0.076, expiring 19 December 2025) were issued to the
Directors of the company, of which 3,333,334 options is vested on 01 January 2023. The fair value of the options was
determined as of $382,200 using the Black Scholes option pricing model. Out of the 14,000,000 options, 7,333,334 stands
vested as at 30 June 2023, 3,333,333 options vests on 01/01/2024 and the balance 3,333,333 options will vest on 01/01/2025
subject to the continued service of the Director.
On 19 December 2022, 6,000,000 unlisted fully vested options (exercisable at $0.076, expiring 19 December 2025) were
issued to Jason Murray, being a KMP. The fair value of the options was determined as of $145,200 using the Black Scholes
option pricing model.
On 19 December 2022, 6,500,000 unlisted fully vested options (exercisable at $0.076, expiring 19 December 2025) were
issued to the employees. The fair value of the options was determined as of $157,300 using the Black Scholes option pricing
model.
The above options were fair valued using the Black Scholes option pricing model using the following inputs:
Numbers of options granted
Grant date
Expiry date
Weighted average share price at date of grant ($)
Weighted average exercise price ($)
Weighted average volatility %
Weighted average risk free rate %
Days to expiry
Fair value of option $
Options to
Directors
14,000,000
30/11/2022
19/12/2025
0.049
0.076
101%
3.17%
1,115
382,200
Options to
KMP
6,000,000
19/12/2022
19/12/2025
0.045
0.076
102%
3.19%
1,096
145,200
Options to
employees
6,500,000
19/12/2022
19/12/2025
0.045
0.076
102%
3.19%
1,096
157,300
Details of unlisted share options on issue to Key Management Personnel (KMP) and other employees and weighted
average exercise prices were as follows:
Outstanding at 30 June 2021
Granted
Reclassification of KMP
Outstanding at 30 June 2022
Options expired
Options exercised
Granted
Outstanding at 30 June 2023
KMP
No. of
Options
20,000,000
2,000,000
(2,000,000)
20,000,000
(15,150,000)
(2,850,000)
20,000,000
22,000,000
KMP
Weighted
average
exercise
price
0.035
0.097
0.035
0.041
0.035
0.035
0.076
0.078
Employees/
Others
No. of
Options
4,000,000
-
2,000,000
6,000,000
(4,000,000)
(2,000,000)
16,500,000
6,500,000
Employees/
Others
Weighted
average
exercise
price
0.035
-
0.035
0.035
0.035
0.035
0.076
0.076
57
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 36. Share-based payments (continued)
Listed Options
During the year under audit, 75,000,011 listed options were issued on 8 March 2023 comprising the Placement and Broker
Options component included under the Prospectus Offer. The Options were issued with an exercise price of $0.063 (6.3
cents) per share, expiring on 8 March 2025.
Outstanding at 30 June 2022
Granted / Issued
Options exercised
Options expired
Outstanding at 30 June 2023
KMP
No. of
Options
-
2,093,410
-
-
2,093,410
KMP
Weighted
average
exercise
price
-
Others
No. of
Options
Others
Weighted
average
exercise
price
-
0.001
-
-
0.001
-
230,021,035
(6,360)
-
230,014,675
-
0.001
0.001
-
0.001
Accounting policy for share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the
rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash
is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using
either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the option,
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 option, together with non-vesting conditions that do not determine
whether the consolidated entity receives the services that entitle the employees to receive payment. No account is taken of
any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting
period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate
of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit
or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either the
Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award was
granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:
●
during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the
expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the
reporting date.
●
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to
settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market conditions
are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are
satisfied.
58
Investigator Resources Limited
Notes to the financial statements
30 June 2023
Note 36. Share-based payments (continued)
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value
of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition is
treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not satisfied
during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the
award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense
is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award
is treated as if they were a modification.
59
Investigator Resources Limited
Directors' declaration
30 June 2023
In the Directors' opinion:
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in Note 2 to the financial statements;
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at
30 June 2023 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due
and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the Directors
___________________________
Richard Hillis
Chair
15 September 2023
60
Grant Thornton Audit Pty Ltd
Grant Thornton House
Level 3
170 Frome Street
Adelaide SA 5000
GPO Box 1270
Adelaide SA 5001
T +61 8 8372 6666
Independent Auditor’s Report
To the Members of Investigator Resources Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Investigator Resources Limited (the Company) and its subsidiaries
(the Group), which comprises the consolidated statement of financial position as at 30 June 2023, the
consolidated statement of profit or loss and other comprehensive income, consolidated statement of
changes in equity and consolidated statement of cash flows for the year then ended, and notes to the
consolidated financial statements, including a summary of significant accounting policies, and the Directors’
declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
a giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its performance for
the year ended on that date; and
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
www.grantthornton.com.au
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‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
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61
#10442442v2w
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
Key audit matter
How our audit addressed the key audit matter
Exploration and evaluation assets – Note 14
At 30 June 2023, the carrying value of exploration and
evaluation assets was $26,601,007.
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources, the Group is required
to assess at each reporting date if there are any
triggers for impairment that may suggest the carrying
value is in excess of the recoverable value.
The process undertaken by management to assess
whether there are any impairment triggers in each area
of interest involves an element of management
judgement.
This area is a key audit matter due to the significant
judgement involved in determining the existence of
impairment triggers.
Our procedures included, amongst others:
• Reviewing management’s area of interest
considerations against AASB 6;
• Conducting a detailed review of management’s
assessment of trigger events prepared in
accordance with AASB 6, including;
− Tracing projects to exploration licenses and
statutory registers to determine whether a right
of tenure existed;
− Enquiring management regarding their intentions
to carry out exploration and evaluation activity in
the relevant exploration area, including reviewing
management’s budgeted expenditure;
− Understanding whether any data exists to
suggest that the carrying value of these
exploration and evaluation assets are unlikely to
be recovered through development or sale;
• Assessing the accuracy of any impairment recorded
for the year as it pertained to exploration interests;
• Evaluating the competence, capabilities and
objectivity of management’s experts in the
evaluation of potential impairment triggers; and
• Reviewing the appropriateness of the related
financial statement disclosures.
Information other than the financial report and auditor’s report thereon
The Directors are responsible for the other information. The other information comprises the information included
in the Group’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 we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
62
Grant Thornton Audit Pty Ltd
Responsibilities of the Directors for the financial report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the Directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Group’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 Group 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 the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.pdf.This
description forms part of our auditor’s report.
Report on the remuneration report
Opinion on the remuneration report
We have audited the Remuneration Report included in of the Directors’ report for the year ended 30 June
2023.
In our opinion, the Remuneration Report of Investigator Resources 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.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
I S Kemp
Partner – Audit & Assurance
Adelaide, 15 September 2023
63
Grant Thornton Audit Pty Ltd
Investigator Resources Limited
Shareholder information
30 June 2023
The shareholder information is set out below was applicable as at 24 August 2023.
DISTRIBUTION OF EQUITABLE SECURITIES ‘
Analysis of number of equitable security holders by size of holding for holders of ordinary shares:
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
Holdings less than Marketable parcel
Total Holder
Units
% Units
251
344
630
2,788
1,501
5,514
1,255
22,538
1,181,928
5,165,247
118,519,908
1,312,280,396
1,437,170,017
0.00
0.08
0.36
8.25
91.31
100.00
EQUITY SECURITY HOLDERS
The names of the twenty largest security holders of listed equity securities are listed below:
Twenty Largest Shareholders
Rank
Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
CITICORP NOMINEES PTY LIMITED
HSBC CUSTODY NOMINEES
MR PHILLIP JOHN DOYLE + MRS CARLA DOYLE
SHIPSTERS INVESTMENTS PTY LTD
MR PETER DANIEL WILLSON
GREGMAL PROPERTY GROUP PTY LTD
RADELL PTY LTD
MR KOUSTUBH YAMI
MRS LESLEY LORD
MAPT PTY LIMITED
MACFAC PTY LTD
BNP PARIBAS NOMINEES PTY LTD
CLANROBBO GROUP PTY LTD
JRMA GROUP PTY LTD
BERKELEY DOWNS INVESTMENTS PTY LTD
WILLOW GLENN PTY LIMITED
MR DIMITRI EMIL LAJOVIC
MS DENISE JOSEPHINE MOSS
COVISORY (NZ) TRUST LIMITED
J KING SUPER PTY LTD
Units
% Units
227,866,446
15.86
25,050,159
18,000,000
16,245,000
14,710,177
12,710,633
12,449,951
11,057,260
11,000,000
10,726,125
10,467,050
10,356,888
10,125,000
9,954,327
9,000,000
8,906,069
8,893,625
8,085,000
7,970,151
7,812,286
1.74
1.25
1.13
1.02
0.88
0.87
0.77
0.77
0.75
0.73
0.72
0.70
0.69
0.63
0.62
0.62
0.56
0.55
0.54
Totals: Top 20 Shareholders
451,386,147
31.41
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Investigator Resources Limited
Shareholder information
30 June 2023
Twenty Largest Option Holders
Rank
Name
1
2
3
3
5
6
6
8
9
10
11
12
13
14
15
16
17
18
19
20
CITICORP NOMINEES PTY LIMITED
PAC PARTNERS PTY LTD
DAVID MILLER SMSF PTY LTD
MR PHILLIP JOHN DOYLE + MRS CARLA DOYLE
MRS LESLEY LORD
O'SHEA & BROWN PTY LTD
TOFF ONE PTY LTD
EMERGING EQUITIES PTY LTD
THESEUS SERVICES PTY LTD
THESEUS SERVICES PTY LTD
PAC PARTNERS SECURITIES PTY LTD
MR CRAIG RUSSELL STRANGER
MR PETER DANIEL WILLSON
MORGAN STANLEY AUSTRALIA SECURITIES (NOMINEE) PTY LIMITED
RADELL PTY LTD
MAPT PTY LIMITED
MACFAC PTY LTD
CLANROBBO GROUP PTY LTD
BERKELEY DOWNS INVESTMENTS PTY LTD
WILLOW GLENN PTY LIMITED
Units
% Units
49,394,820
21.28
6,250,000
6,000,000
6,000,000
5,147,691
5,000,000
5,000,000
4,692,775
4,166,668
3,934,527
3,850,000
3,715,000
2,942,036
2,678,572
2,489,991
2,145,225
2,093,410
2,025,000
1,800,000
1,781,214
2.69
2.59
2.59
2.22
2.15
2.15
2.02
1.80
1.70
1.66
1.60
1.27
1.15
1.07
0.92
0.90
0.87
0.78
0.77
Totals: Top 20 holders of Listed Options (Total)
121,106,929
52.18
Unquoted equity securities
Options over ordinary shares issued
SUBSTANTIAL SHAREHOLDER
Details of substantial shareholders are set out below:
Number on
issue
28,500,000
Number of
holders
9
Name
No. of shares
% Units
1
MERIAN GLOBAL INVESTORS (UK LIMITED)
194,185,810
13.51
VOTING RIGHTS
The voting rights attached to ordinary shares are set out below:
At meeting of members or classes of members:
(a) each member entitled to vote may vote in person or by proxy, attorney or respective;
(b) on a show of hands, every person present who is a member or a proxy, attorney or representative of a member has one
vote; and
(c) on a poll, every person present who is a member or a proxy, attorney or representative of a member has:
(i) for each fully paid share held by person, or in respect of which he/she is appointed a proxy, attorney or representative,
one vote for the share;
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Investigator Resources Limited
Shareholder information
30 June 2023
(ii) for each partly paid share, only the fraction of one vote which the amount paid (not credited) on the share bears to the
total amounts paid and payable on the share (excluding amounts credited).
Subject to any rights or restrictions attached to any shares or class of shares.
CORPORATE GOVERNANCE STATEMENT
The Company’s 2023 Corporate Governance Statement has been released to ASX on this day and is available on the
Company’s website at: Corporate Governance - Investigator Resources (investres.com.au)
ANNUAL GENERAL MEETING AND DIRECTOR NOMINATIONS CLOSING DATE
Investigator Resources Limited advises that its Annual General Meeting will be held on Thursday, 23 November 2023. The
details relating to the meeting will be advised in the Notice of Meeting to be sent to all Shareholders and released to ASX
immediately upon dispatch.
The Closing date for receipt of nomination for the position of Director is Thursday,12 October 2023. Any nominations must
be received in writing no later than 5.00pm (Melbourne time) on Thursday, 12 October 2023 at the Company’s Registered
Office.
The Company notes that the deadline for nominations for the position of Director is separate to voting on Director elections.
Details of the Director’s to be elected will be provided in the Company’s Notice of Annual General Meeting in due course.
66