KAISER REEF LIMITED
Annual Report
For the year ended 30 June 2024
ASX: KAU
ASX: KAU
ASX:KAU I Kaiser Reef Ltd
ABN 38 635 910 271
Level 2, 36 Rowland St,
Subiaco WA 6008
kaiserreef.com.au
T: 08 9481 0389
E: admin@kaiserreef.com.au
Contents
PAGE
Managing Director’s address to shareholder
3
Directors’ report
4
Remuneration report
11
Auditor’s independence declaration
17
Consolidated statement of profit or loss and other comprehensive income
19
Consolidated statement of financial position
20
Consolidated statement of changes in equity
21
Consolidated statement of cash flows
22
Notes to the consolidated financial statements
22
Consolidated entity disclosure statement
42
Directors’ declaration
43
Independent auditor’s report
44
Corporate directory
47
Additional information for public listed companies
48
ASX: KAU
ASX:KAU I Kaiser Reef Ltd
ABN 38 635 910 271
Level 2, 36 Rowland St,
Subiaco WA 6008
kaiserreef.com.au
T: 08 9481 0389
E: admin@kaiserreef.com.au
MANAGING DIRECTOR’S ADDRESS TO SHAREHOLDERS
Dear Fellow Shareholders,
On behalf of the Board of Directors, it is my pleasure to present the Kaiser Reef Limited (Kaiser) Annual Report
for the financial year ended 30 June 2024 (FY24). I would like to take this opportunity to reflect on our progress,
address the challenges we faced, and outline our plans for the year ahead.
Kaiser made strong progress during the year as we continued to improve our operations while executing
significant exploration and development drilling. In FY24, our gold mining operations produced 7,608 ounces
(2023: 11,350 ounces) and sold 7,582 ounces (2023: 11,349 ounces) of gold at an average realised price of
AU$3,126 (2023: AU$2,705).
The year-on-year decrease in production reflects short term mining challenges that we faced in the December
quarter and resolved in the March quarter. More significantly, the results reflect Kaiser's focus on decline and
lateral development for future mining as opposed to remnant mining. This is a key part of our strategy to deliver
long-term growth by grasping what we view as a game-changing opportunity as we reach the Nova lodes at our
flagship A1 Gold Mine in Victoria, Australia.
Late in FY24 we developed the A1 Mine decline to close to level 23, which is the end of the high-grade historical
workings and mining area. This continuing development has opened multiple new ore headings allowing greater
volumes of high gold grade airleg ore. Mineralisation is proven to continue, with numerous high grade and
unmined reef systems identified from drilling. From here at the A1 Mine we have identified a low CAPEX pathway
towards significant growth in production rates.
Late in FY24, we signed a strategic investment agreement with Ragnar Metals Limited (ASX: RAG), under which
Ragnar agreed to a $5 million strategic placement of Kaiser shares at $0.15 per share. As part of this agreement,
we welcomed the Ragnar Chairman, Steve Formica, as Kaiser's new Non-Executive Chairman.
Capital from the placement financed our final push towards accessing the Nova levels of the A1 Mine. Having
focused earlier in the year on key infrastructure upgrades at the A1 Mine to increase production and profitability,
we are now well-funded and strongly positioned to accelerate our development and production growth at this
consistent high-grade producing asset.
During the year, we delivered extensive site improvements and upgrades at our Maldon processing plant. We also
developed plans to explore and evaluate Maldon to eventually look towards opening up a second mining
operation. In this way we plan to deliver diversified long-term growth in production and cashflow, focused on
Victorian gold assets following the late FY24 divestment of our NSW exploration assets for total consideration of
up to $3.625 million.
The high Australian gold price, which has increased in AU dollar terms by nearly 30% in the past year, continues
to support unhedged Australian gold producers such as Kaiser. The company remains unhedged, debt free and
poised to increase production and profitability in FY25.
I am proud of how our team addressed its challenges in the past year. I would like to thank our personnel for their
dedicated efforts and my fellow Board members for their counsel.
I would also like to express my gratitude to our investors for their continued support and belief in our vision. We
are committed to delivering results that will reward your faith in Kaiser Reef. As our business continues to gain
scale, we look forward to sharing this journey with you.
Jonathan Downes
Managing Director
Kaiser Reef Limited (ASX:KAU)
KAISER REEF LIMITED 2024
Directors’ Report
4
Directors’ Report
Directors
The Directors present their report on “Kaiser” or “the Group”,
consisting of Kaiser Reef Limited and the entities it controlled at
the end of, or during, the financial year ended 30 June 2024.
The following persons were Directors of Kaiser Reef Limited at any
time during the year and up to the date of this report:
•
Adrian Byass
Non-Executive Chairman (resigned 8 May 2024)
•
Steven Formica
Non-Executive Chairman (appointed 22 May 2024)
•
Jonathan Downes
Managing Director
•
Stewart Howe
Executive Director
•
Bradley Valiukas (appointed 18 December 2023)
Executive Director
The qualifications, experience and special responsibilities of the
Directors are presented on page 9.
Principal activities
During the year, the principal activities of the Group were mining,
production and the sale of gold as well as mineral exploration and
development.
Dividend paid or recommended
No dividend has been paid and the Directors do not recommend
the payment of a dividend for the year ended 30 June 2024 (30
June 2023: nil).
Corporate information
Kaiser Reef Limited is limited by shares and is incorporated and
domiciled in Australia. The Group’s corporate structure is as
follows:
KAISER REEF LIMITED 2024
Directors’ Report
5
Overview of the Group’s activities
The Group continued its growth trajectory with a number of
milestone achievements during the 2024 financial year. The key
results for the year were:
•
Development of decline to close to level 23 which is the end of
historical workings and mining completely unmined areas.
•
Continued modernisation of the Maldon process plant to gain
efficiency and increase through put.
The Directors’ Report covers the year ended 30 June 2024. During
the 2024 financial year the Group recorded a statutory loss of
$5,534,228 (2023: statutory profit of $1,171,617) and net cash
inflows from operating activities of $467,757 (2023: inflows of
$5,581,144) and a closing cash balance of $1,112,332 (2023:
closing cash balance of $3,225,145).
The focus of FY24 was the future mine development and further
exploration at Maldon to ensure an expanded and profitable
future mine plan.
The consolidated results for the year are summarised as follows:
2024
$
2023
$
EBITDA(3)(6)
(1,759,949)
4,906,015
Depreciation and amortisation
(3,723,566)
(3,727,698)
EBIT(2)(6)
(5,483,505)
1,168,317
Finance cost and interest
(50,723)
3,300
(Loss)/profit before tax(4)
(5,534,228)
1,171,617
Statutory (loss)/profit (1) after
tax
(5,534,228)
1,171,617
(1) Statutory (loss)/profit is net (loss)/profit after tax attributable to
owners of the parent.
(2) EBIT is earnings before interest expense, finance costs and income tax
expense.
(3) EBITDA is EBIT before depreciation and amortisation.
(4) EBIT, EBITDA and underlying net loss after tax are non-IFRS financial
measures, which have not been subject to review or audit by the
Group’s external auditors. These measures are presented to enable
understanding of the underlying performance of the Group by users.
KAISER REEF LIMITED 2024
Directors’ Report
6
Review of operations
A1 Mine Operations
Safety is a key focus for the Group. Management continues to
initiate reviews and improvements to safety processes as part of
continuous operational improvements.
The A1 Mine continued to ramp up plan prepared by the Group
that is designed to access increased production sources from airleg
and mechanised mining methods.
During the year, the company mined the Queens Lode in the last
quarter and pushed decline extension and lateral development
past towards level 23 which is the last of the historical workings
and mining area. This continuing development has opened
multiple new ore headings allowing greater volumes of high gold
grade airleg ore and mechanised stoping.
In 2024, the A1 Mine produced 7,608 ounces (2023: 11,350
ounces) and sold 7,582 ounces (2023: 11,349 ounces) of gold at an
average realised price of $3,126 Australian Dollars (2023: $2,705).
The Group’s tonnage production increased by 6%, offset by a lower
grade which has reduced overall ounces for the year. This is a
reflection of focusing on decline and lateral development for
future mining and discontinuation of remnant mining.
The A1 mine commenced its Nova Gold Project in the last quarter.
The Nova Gold Project hoists high grade gold mineralisation at
unmined levels of the A1 mine. The 23 Level of the A1 Mine is the
extent of historical workings. The new mine development will
surpass the 23 Level and is expected to contribute to the increased
high grade gold production, marking a milestone as production
transitions from the current remnant gold mine operation.
Highlights of the drilling results announced 30 October 2023:
•
A1UDH-545: 0.9m @ 50.7g/t gold from 51.2m
•
A1UDH-539: 0.64m @ 8.0 g/t gold from 10.8m; and 0.2
@395.3 g/t gold from 20.4m
•
A1UDH-541: 0.28m @ 159.6 g/t gold from 24.9m
•
A1UDH-531: 2.4m @ 24.0 g/t gold
•
A1UDH-528: 4.4m @ 117.8 g/t gold; and from 0.3m
@40.7g/t gold
•
A1UDH-533: 2.3m @ 28.4 g/t gold
•
A1UDH-537: 5.4m @ 42.4 g/t gold
Maldon Processing Plant
There were no reportable safety or environmental incidents
recorded at the Maldon processing facilities in 2024. The plant
processed 34,458 tonnes of ore at an average recovery of 94.0% in
2024 (2023: 32,540 tonnes of ore at an average recovery of 96.1%).
Mill tailings continue to be discharged into Tailings Storage Facility
(TSF) No 5. Construction of the next lift of the TSF facility (TSF Lift
5D) is planned in November 2024.
The Group continued to drill out Nuggety. The drilling faced
challenges, including deviations from the planned trajectory due
to natural rock formation variations and encountering unreported
historic underground workings. The Group remains encouraged by
the results obtained from the program. Significant quartz reefs and
promising gold grades, such as 0.46m @ 205 g/t gold and 2.2m @
10.3 g/t gold, are recorded on the same target areas.
The best drill intercept was returned of (announced 30 April 2024):
•
NG_SDH_005: 0.3m @ 22.77 g/t gold from 258.9m
•
0.38m @ 4.04 g/t gold from 305.3m
Looking ahead, the Group intends to direct its efforts towards
further exploration down plunge from the Nuggetty mine
workings, focusing on areas with a high level of confidence in
mineralisation based on historic drilling data. The company
emphasises the continued exploration potential and prospectivity
of the Maldon Goldfield, underscoring its commitment to
advancing the project.
During the year, the processing plant continued major
refurbishments and upgrade projects to increase efficiency and
longevity of the plant.
The Mill upgrade works delivered a 10% increase in throughput
capacity. Reduction in unit cost through lower power consumption
and efficient automated operation are expected, which will reduce
operating costs and support any future expanded mining activities.
Post balance date the process plant installed a gravity unit to
capture course gold to increase gold recovery.
Th Group continued a number of community projects to further
improve engagement in the Maldon region. These projects
included continuous noise monitoring, agricultural irrigation water
supply and community visits to the facilities.
KAISER REEF LIMITED 2024
Directors’ Report
7
Future Development, prospect and business strategies
Kaiser Reef’s strategic focus is to deliver long term value from it's
key assets, the A1 mine and Union Hill mine. The focus follows the
proposed sale of its New South Wales projects in FY25.
The strategic focus areas for A1 mine:
•
The Nova project to push development below the 23 level
past historical workings and unmined areas
•
Further exploration drilling below the 23 level
The strategic focus areas for Union Hill:
•
Additional resources drilling to increase the existing JORC
mineral resources of 186,656 ounces
•
Mine plan to bring the Union Hill mine back in production
Material business risks
Kaiser prepares its business plan using estimates of production and
financial performance based on a business planning system and a
range of assumptions and expectations. The Group’s business,
operating and financial results and performance are subject to risks
and uncertainties, some of which are beyond the Group’s
reasonable control. The uncertainties arise from a range of factors,
including the Group’s operating scope, nature of the mining
industry and changing economic factors. The business risks
assessed as having the potential to have a material impact on the
business, operating and/or financial results and performance by
the Group include:
Resource and reserve estimates
Resource and reserve estimates are inherently prone to variability.
They involve expressions of judgement with regard to the presence
and quality of mineralisation and the ability to extract and process
the mineralisation economically. Estimates which were valid when
originally calculated may alter significantly when new information
or techniques become available. This may result in alterations to
development and mining plans which may, in turn, adversely affect
the Group’s operations and reduce the estimated amount of
mineral resources and ore reserves available for production and
expansion plans. The Group manages the risk associated with
resource and reserve estimates by engaging suitably experienced
and qualified contractors and operators and ensuring that the
Competent Person meets the requirements of the JORC Code
2012.
Actual mineralisation of ore bodies may be different from those
predicted, and any material variation in the estimated Ore
Reserves, including metallurgy, grade, dilution, ore loss, or
stripping ratio at the Group's properties may affect the economic
viability of its properties, and this may have material adverse
impact on the Group's results of operations, financial condition
and prospects. There is also a risk that depletion of resource and
reserves will not be offset by discoveries or acquisitions, or that
divestitures of assets will lead to a lower resource and reserve
base. The resource and reserve base of the Group may decline if
reserves are mined without adequate replacement and the Group
may not be able to sustain production beyond current mine lives,
based on current production rates.
Commodity prices
Commodity prices fluctuate and are affected by numerous factors
beyond the control of the Group. These factors include worldwide
and regional supply and demand for commodities, general world
economic conditions and the outlook for interest rates, inflation
and other economic or political factors on both a regional and
global basis. These factors may have a negative effect on the
Group's exploration, project development and production plans
and activities, together with its ability to fund those plans and
activities.
Operating risks
The operations of the Group may be affected by various factors,
including operational and technical difficulties encountered in
mining; difficulties in commissioning and operating plant and
equipment; mechanical failure or plant breakdown; unanticipated
metallurgical problems which may affect extraction costs; natural
disasters; industrial and environmental accidents; industrial
disputes; and unexpected shortages or increases in the costs of
consumables, spare parts, plant and equipment. Such changes may
have an adverse effect on the operations and production ability of
the Group by increasing costs or delaying activities. The
Group manages operating risks through a variety of means
including selecting suitably experienced and qualified contractors
and operators; regular monitoring of the performance of
contractors and operators; the recruitment and retention of
appropriately qualified employees and contractors; and the regular
review by the Board of the Group's key risks.
Environmental and approval risks
The ability of Group to operate, develop and explore projects may
be delayed and limited by environmental and approval
considerations and significant costs may result from complying
with
Group's
environmental
and
approval
obligations.
The Group recognises management’s best estimate for assets’
retirement obligations and site rehabilitations in the period in
which they are incurred. Actual costs incurred in future periods
could differ materially from the estimates. Additionally, future
changes to environmental laws and regulations, life of mine
estimates and discount rates could affect the carrying amount of
this provision.
Reliance on transportation facilities and infrastructure:
The Group depends on the availability and affordability of reliable
transportation facilities and infrastructure (e.g. roads, bridges,
airports, air transport, power sources and water supply) to deliver
consumables to site, and final product to market. Interruption in
the provision of such infrastructure (e.g. due to adverse weather,
pandemic, community or government interference) could
adversely affect the Group’s operations, financial condition and
results of operations. The Group’s operating procedures include
business continuity plans which can be enacted in the event any
particular infrastructure is temporarily unavailable.
Other natural disasters
Seismic activity is of particular concern to mining operations. The
A1 mine in Victoria is in an area known to be seismically active and
is subject to risks of earthquakes. The A1 mine is located in the
Victoria (Australia) high country forest area which is in the high risk
area for bush fire.
KAISER REEF LIMITED 2024
Directors’ Report
8
Production, cost inputs and capital estimates:
The Group prepares estimates of future production, operating
costs and capital expenditure relating to production at its
operations. The ability of the Group to achieve production targets
or meet operating and capital expenditure estimates on a timely
basis cannot be assured. The assets of the Group are subject to
uncertainty with regards to ore tonnes, grade, metallurgical
recovery, ground conditions, operational environment, funding for
development, regulatory changes, accidents and other unforeseen
circumstances such as unplanned mechanical failure of plant and
equipment.
Failure to achieve production, cost or capital estimates, or material
increases to costs, could have an adverse impact on the Group’s
future cash flows, profitability and financial condition. The
development of estimates is managed by the Group using a
rigorous budgeting and forecasting process. Actual results are
compared with budgets and forecasts on a regular basis to identify
drivers behind discrepancies that may result in updates to future
estimates.
Mining operations and facilities are intensive users of electricity,
gas and carbon-based fuels. Energy prices can be affected by
numerous factors beyond the Group's control, including global and
regional supply and demand, carbon taxes, inflation, political and
economic conditions, and applicable regulatory regimes. The
prices of various sources of energy may increase significantly from
current levels.
The Group's production costs are also affected by the prices of
commodities it consumes or uses in its operations, such as diesel,
lime, sodium cyanide and explosives, and increases in labour rates.
The prices of such commodities are influenced by supply and
demand trends affecting the mining industry in general and other
factors outside the Group's control. Increases in the price for
materials consumed in Kaiser Reef’s mining and production
activities could materially adversely affect its results of operations
and financial condition.
Labour costs are impacted by the overall supply of skilled labour to
the mining industry, where a lack of labour will increase
competition and therefore cost. A lack of skilled labour may also
impact the Group’s ability to effectively and efficiently execute
operational plans.
The Group manages risks associated with input costs through a
centralised procurement function which analyses market trends,
supply environment, and operational demand planning, to
establish appropriate sourcing strategies for spend categories.
Risk management
The Group manages the risks listed above, and other day-to-day
risks through an established enterprise-wide risk management
framework, which conforms to Australian and international
standards and guidance. The Group’s risk reporting and control
mechanisms are designed to ensure strategic, safety, environment,
operational, legal, financial, tax, reputational and other risks are
identified, assessed and appropriately managed by key qualified
personnel and/or consultants. The financial reporting and control
mechanisms are reviewed during the year by management the
board, the internal audit function and the external auditor. Senior
management and the Board regularly review the risk of the
business and the effectiveness of the Group’s management of
those risks.
Environmental management
The Kaiser Reef Group regards compliance with environmental
legislation, regulations and regulatory instruments as the
minimum performance standard for its operations. The Group’s
operations in New South Wales (NSW) and Victoria are subject to
environmental regulation under both Commonwealth and State
legislation. The Group has environmental bonds lodged with both
the NSW and Victorian government.
There were no externally reportable or outstanding environmental
incidents during the year ended 30 June 2024 at any of the Group’s
operating sites which has not been immediately rectified.
KAISER REEF LIMITED 2024
Directors’ Report
9
Information on Directors
Adrian Byass
B.Sc (Geo) Hons, B.Eco, FSEG and MAIG
Non-Executive Chairman
Appointed as Chairman 2 September 2019
Resigned as Chairman 8 May 2024
Mr Byass has more than 20 years’ experience in the mining
industry with extensive experience as a Board member of ASX,
TSXV and AIM listed companies. This experience has principally
been gained from both listed and unlisted entities around the
world through the operation of as well as the evaluation and
development of mining products for a range of base, precious and
specialty metals and bulk commodities.
Other current listed company directorships:
-
Galena Mining Limited
o Non-Executive Chairman
-
Infinity Lithium Corporation Limited
o Non-Executive Chairman
-
Sarama Resources Limited
o Non-Executive Director
Former listed company directorships in last three years:
-
Kingwest Resources Limited (resigned 23 May 2022)
o Non-Executive Director
Interest in Securities:
• 3,205,000 fully paid ordinary shares
• 4,000,000 unlisted options exercisable at $0.25 on 27 Nov 2026
Steve Formica
Non-Executive Chairman
Appointed as Chairman 22 May 2024
Mr Formica has been a successful businessman and operations
manager for over 35 years in several privately held business
ventures across multiple industry sectors. He brings to the
Company practical management and business development
experience.
Mr Formica is chairman and non-executive director for multiple
listed companies and a successful investor in a number of ASX
listed entities.
Other current listed company directorships:
-
Ragnar Metals Limited
o
Non-Executive Chairman
-
Albion Resources Limited
o
Non-Executive Chairman
-
EcholQ Limited
o
Non-Executive Director
-
Bindi Metals Limited
o
Non-Executive Director
-
Great Northern Minerals Limited
o
Non-Executive Director
Former listed company directorships in last three years:
-
Jade Gas Holdings Limited (23 September 2021)
o Non-Executive Director
Interest in Securities:
• 5,305,250 fully paid ordinary shares
• 400,000 unlisted options exercisable at $0.30 on 30 Sep 2024
• 2,000,000 unlisted options exercisable at $0.25 on 12 Jul 2028
Jonathan Downes
B.Sc (Geo) and MAIG
Managing Director
Appointed as Director 2 September 2019
Mr Downes has more than 25 years’ experience in the mining
industry and has worked in various geological and corporate
capacities. Jonathan has experience with nickel, gold and base
metals and has also been involved with numerous private and
public capital raisings. Mr Downes is currently on the boards of
Brightstar Resources Limited and Nickel X Limited
Other current listed company directorships:
-
Brightstar Resources Limited (Kingwest Resources Limited
merged with Brightstar Resources Limited effective 26 May
2023)
-
Nickel X Limited
o
Non-Executive Director
-
Cazaly Resources Limited
o
Non-Executive Director
Former listed company directorships in last three years:
-
Galena Mining Limited (resigned 29 October 2021)
o
Non-Executive Director
-
Corazon Mining Limited (resigned 1 September 2022)
o
Non-Executive Director
Interest in Securities:
• 3,835,625 fully paid ordinary shares
• 4,000,000 unlisted options exercisable at $0.25 on 27 Nov 2026
Stewart Howe
BE (Chem), ME (Mining), MAppFin, FAICD and FAusIMM
Executive Director
Appointed as Director 10 February 2021
Mr Howe has +40 years’ experience in the global resources
industry including the last 18 years in mining. Stewart spent 6 years
as Chief Development Officer of Zinifex Limited, where he directed
the spin-off of Zinifex’s smelters to create Nyrstar N.V. and
restarted development of Dugald River Mine now owned by MMG.
During the past 14 years Mr Howe has provided advisory roles to
boards, private equity and financiers related to restructuring and
acquisition of mining assets in base metals and bulk commodities.
Mr Howe is an experienced director, chairing the board of Whittle
Consulting Group and serving on the boards of a government
owned water authority and not-for-profit organisations.
Other current listed company directorships:
-
Galena Mining Limited
o
Non-Executive Director
Interest in Securities:
• 312,500 fully paid ordinary shares
• 3,000,000 unlisted options exercisable at $0.25 on 27 Nov 2026
KAISER REEF LIMITED 2024
Directors’ Report
10
Information on Directors (continued)
Bradley Valiukas
B.Eng (Mining)
Executive Director
Appointed as Director 18 December 2023
Mr Valiukas is a highly experienced mining engineer with 25 years
of operations, management and executive experience, covering
underground and open pit operation across multiple commodities
around Australia and internationally. He has held corporate and
management roles at Northern Star Resources Limited, Focus
Minerals Ltd and Mincor Resources NL. He has extensive
underground experience including narrow vein gold and airleg
operations, with multiple mine start-ups and rectifications
completed.
Other current listed company directorships:
-
Auramin Limited
o
Managing Director
Interest in Securities:
• 2,000,000 unlisted options exercisable at $0.25 on 18 Dec 2026
• 2,000,000 performance rights
Information on Company Secretaries
Aida Tabakovic
BBus and GradDipBus (Law)
Joint Company Secretary
Appointed as Joint Company Secretary 5 July 2021
Miss Tabakovic has over 11 years’ experience in the accounting
profession. Her experience includes financial accounting reporting,
company secretarial services, ASX and ASIC compliance
requirements. Miss Tabakovic has been involved in listing a
number of junior exploration companies on the ASX and is
currently Company Secretary for numerous ASX listed companies.
Stephen Brockhurst
BCom
Joint Company Secretary
Appointed as Joint Company Secretary 5 July 2021
Mr Brockhurst has over 20 years’ experience in the finance and
corporate advisory industry and has been responsible for the
preparation of the due diligence process and prospectuses on a
number of initial public offers. His experience includes corporate
and capital structuring, corporate advisory and company
secretarial services, capital raising, ASX and ASIC compliance
requirements. Mr Brockhurst has served on the board and acted
as Company Secretary for numerous ASX listed companies. He is
currently a Director of Locksley Resources Limited (ASX: LKY) and
Company Secretary Kingfisher Mining Ltd, Heavy Minerals Limited
and Estrella Resources Limited.
KAISER REEF LIMITED 2024
Directors’ Report
11
Remuneration Report (Audited)
The remuneration report, which forms part of the Directors’
Report, outlines the remuneration arrangements in place for key
management personnel (KMP) who are defined as the persons
having the authority and responsibility for planning and directing
the major activities of the Group.
Remuneration philosophy
The performance of the Group depends on the quality of the
Company Directors and executives and employees and therefore
the Group must attract, motivate and retain appropriately
qualified industry personnel. During the financial year ended 30
June 2024, Kaiser Reef Limited did not seek the advice of
remuneration consultants.
Remuneration policy
Remuneration levels of the executives are competitively set to
attract the most qualified and experienced candidates, taking into
account prevailing market conditions and the individuals
experience and qualifications. During the year, the Group did not
have separately established remuneration committees, The Board
is responsible for determining and reviewing remuneration
arrangements for the executives and non-executive Directors.
Director
Appointed
Length of
service
A Byass1
2 Sep 2019
4 years
Non-Executive
Chairman
S Formica2
22 May 2024
0.1 Year
Non-Executive
Chairman
J Downes
2 Sep 2019
4 years
Managing
Director
S Howe
10 Feb 2021
3 years
Executive Director
B Valiukas3
18 Dec 2023
0.5 Year
Executive Director
2023
2024
A Byass1
$
139,000
139,000
S Formica2
$
-
90,000
J Downes4
$
280,000
332,000
S Howe
$
133,333
133,333
B Valiukas
$
-
133,000
Annual aggregate fees
$
552,333
775,333
no. of non-executive directors
1
1
Shareholder approved annual
aggregate Non-Executive Director
fees
$
300,000
300,000
Consolidated entity performance and link to remuneration
Remuneration for certain individuals is directly linked to the
performance of the consolidated entity. Performance rights
1
Mr Byass resigned as Non-Executive Director and Chairman 8 May
2024
2
Mr Formica was appointed as Non-Executive Director and Chairman
22 May 2024
granted to certain KMP are deemed to be performance based
remuneration. Refer to the ‘Performance Rights’ section below for
details of the terms and conditions of the performance rights
granted to certain KMP during the year.
Related party transactions
Transactions between related parties were on commercial terms
and conditions, no more favourable than those available from
external parties, unless otherwise stated.
Brightstar Resources Limited – related party to and J Downes
shared office facility arrangement during the year.
Total for the current year: $30,407 was charged by Brightstar
Resources Limited with an outstanding amount of $2,983 (2023: nil)
payable at 30 June 2024.
Loans to Directors and their related parties
No loans have been made to any Directors or any of their related
parties during the current year. There were no further transactions
with Directors including their related parties other than those
disclosed above.
Contractual arrangements with executive KMPS
Component
J Downes
Managing Director
Fixed remuneration
332,000
Contract duration
Ongoing contract
Notice by the individual
/ Company
6 months / 1 Month
Termination of
employment (without
cause)
Unvested LTI will remain subject to the
achievement of the performance
targets set at the original date.
The Board has discretion to award a
greater or lower amount
Termination of
employment (without
cause) or by individual
All unvested LTI will lapse
Component
S Howe
Executive Director
Fixed remuneration
133,333
Contract duration
Ongoing contract
Notice by the individual
/ Company
6 months / 1 Month
Termination of
employment (without
cause)
Unvested LTI will remain subject to the
achievement of the performance
targets set at the original date.
The Board has discretion to award a
greater or lower amount
Termination of
employment (without
cause) or by individual
All unvested LTI will lapse
3
Mr Valiukas was appointed as Executive Director 18 December 2023
4
Mr Downes was approved a pay increase effective 1 January 2024
KAISER REEF LIMITED 2024
Directors’ Report
12
Component
B Valiukas
Executive Director
Fixed remuneration
133,000
Contract duration
Ongoing contract
Notice by the individual
/ Company
6 months / 1 Month
Termination of
employment (without
cause)
Unvested LTI will remain subject to the
achievement of the performance
targets set at the original date.
The Board has discretion to award a
greater or lower amount
Termination of
employment (without
cause) or by individual
All unvested LTI will lapse
Component
A Tran
Executive KMP
Fixed remuneration
262,500
Contract duration
Ongoing contract
Notice by the individual
/ Company
12 weeks plus 3 weeks for every year
after the second year
Termination of
employment (without
cause)
Unvested LTI will remain subject to the
achievement of the performance
targets set at the original date.
The Board has discretion to award a
greater or lower amount
Termination of
employment (with
cause) or by individual
All unvested LTI will lapse
KAISER REEF LIMITED 2024
Directors’ Report
13
Remuneration Report (Audited) continued
Details of Remuneration
Details of the nature of and amount of each element of the emoluments of each of the Directors and Key Management Personnel (KMP) of the Group for the year ended 30 June 2024
2024
Short-term benefits
Post-
employment benefits
Long-term benefits
Name
Cash
salary & fees
STI
payment
Non-monetary
benefits5
Leave6
Super-
annuation
Share-based
payments - Rights7
Share-based
payments - Options
Total
Proportion of total
performance
$
$
$
$
$
$
$
$
related8
Directors
Adrian Byass9
104,104
-
6,372
-
11,451
169,001
-
290,928
-
Steven Formica10
10,000
-
-
-
1,100
129,073
140,173
-
Jonathan Downes
306,000
-
6,204
35,073
27,399
225,335
-
600,011
-
Stewart Howe
133,333
-
-
14,074
14,667
169,347
-
331,421
-
Bradley Valiukas11
72,042
-
5,937
7,925
139,076
224,980
12%
Total Directors
625,479
-
12,576
55,084
62,542
831,832
-
1,587,513
Executives
Andy Tran
275,00012
-
848
24,621
27,399
1,207
-
329,075
-
Total Executives
275,000
-
848
24,621
27,399
1,207
-
329,075
Total 2024 KMP Remuneration
900,479
-
13,424
79,705
89,941
833,039
-
1,916,588
-
2023
Directors
Adrian Byass
115,395
-
4,229
-
12,117
-
-
131,741
n/a
Jonathan Downes
280,000
-
4,229
21,136
25,292
-
-
330,657
n/a
Stewart Howe
133,333
-
-
11,379
14,000
5,162
-
163,874
3%
Total Directors
528,728
-
8,458
32,515
51,409
5,162
-
626,272
Executives
Andy Tran
250,000
-
-
7,423
25,292
12,075
-
294,790
4%
Total Executives
250,000
-
-
7,423
25,292
12,075
-
294,790
-
Total 2023 KMP Remuneration
778,728
-
8,458
39,938
76,701
17,237
-
921,062
-
5
Non-monetary benefits for Executives comprise car parking and professional memberships including associated fringe benefits tax.
6
Leave consists of long service leave and annual leave entitlements.
7
The value of performance rights disclosed as remuneration is the portion of the fair value of the performance rights recognised in the reporting period in accordance with the Corporations Act 2001 and relevant Australian Accounting Standards. This
value may not always reflect what an executive has received in the reporting period.
8
Calculated as ‘STI payment’ plus ‘Share-based payments - Rights’ divided by ‘Total’ remuneration.
9
Mr Abyass resigned as Non-Executive Director and Chairman on 8 May 2024.
10
Mr Formica was appointed as Non-Executive Director and Chairman on 22 May 2024.
11
Mr Valiukas was appointed Executive Director on 18 December 2023.
12
Shares issued to Mr Tran were relating to FY24 salary taken as shares on issued 1 August 2023. Number of share issued was 62,500 shares at $0.20, totalling $12,500 in value.
KAISER REEF LIMITED 2024
Directors’ Report
14
Remuneration Report (Audited) continued
KMP Shareholdings
The number of ordinary shares in Kaiser Reef Limited held by each KMP for the year ended 30 June 2024 are as tabled below:
2024
Balance at the
beginning of year
Granted as
remuneration
during the year
Issued on exercise
of the rights
during the year
Other changes
during the year
Balance at end of
the year
Directors
Adrian Byass13
3,205,000
-
-
(3,205,000)
-
Steven Formica14
-
-
-
5,306,250
5,306,250
Jonathan Downes
3,735,625
-
-
100,00015
3,835,625
Stewart Howe
312,500
-
-
-
312,500
Bradley Valiukas
-
-
-
-
-
Total Directors
7,253,125
-
-
2,201,250
9,454,375
Executives
Andy Tran
872,433
-
-
62,50016
934,933
Total Executives
872,433
-
-
62,500
934,933
KMP Options Holdings
The number of options over ordinary shares in Kaiser Reef Limited held by each KMP for the year ended 30 June 2024 are as tabled below:
2024
Balance at the
beginning of year
Granted as
remuneration
during the year
Reduction on
lapse of the
options during
the year
Reduction of
options during
the year
Balance at end of
the year
Vested and
exercisable at 30
June 2024
Directors
Adrian Byass13
2,000,000
3,000,00017
(2,000,000) 18
(3,000,000)
-
-
Steven Formica
400,00019
2,000,00020
-
-
2,400,000
2,400,000
Jonathan Downes
2,000,000
4,000,00021
(2,000,000) 22
-
4,000,000
4,000,000
Stewart Howe
400,000
3,000,00023
-
-
3,400,000
3,400,000
Bradley Valiukas
-
2,000,00024
-
-
2,000,000
2,000,000
Total Directors
4,800,000
14,000,000
(4,000,000)
(3,000,000)
11,800,000
11,800,000
Executives
Andy Tran
500,000
-
(500,000)
-
-
-
Total Executives
500,000
-
(500,000)
-
-
-
KMP Performance rights
The number of rights over ordinary shares in Kaiser Reef Limited held by each KMP for the year ended 30 June 2024 are as tabled below:
2024
Opening rights
held
Granted as
remuneration
during the year
Vested during
the year
Forfeited
during the
year
Balance at end
of the year
Directors
Adrian Byass13
-
-
-
-
-
Steven Formica14
-
-
-
-
-
Jonathan Downes
800,000
-
-
(320,000)
480,000
Stewart Howe
600,000
-
-
(340,000)
260,000
Bradley Valiukas
-
2,000,000
2,000,000
Total Directors
1,400,000
2,000,000
-
(660,000)
2,740,000
Executives
Andy Tran
200,000
-
-
(200,000)
-
Total Executives
200,000
-
-
(200,000)
-
13 Mr Abyass resigned as Non-Executive Director and Chairman on 8 May 2024.
14 Mr Formica was appointed 22 May 2024 Non-Executive Director and Chairman and shares were on market purchases prior to appointment.
15 Mr Downes shares increases were on market purchases.
16 Shares issued to Mr Tran were relating to FY24 salary taken as shares on issued 1 August 2023. Number of shared issue was 62,500 shares at $0.20, totalling $12,500 in value.
17 Options issued to Mr Byass to provide performance linked incentive approved at AGM 23 November 2023.
18 Free attaching options issued to Mr Byass on initial ASX company listing on the 26 February 2020.
19 Pre-existing options Mr Formica had allocated as part of the Westar Capital limited in 6 September 2021 and expiring 30 September 2024.
20 Options issued to Mr Formica to provide performance linked incentive, approved at EGM 10 July 2024.
21 Options issued to Mr Downes to provide performance linked incentive approved at AGM 23 November 2023.
22 Free attaching options issued to Mr Downes on initial ASX company listing on the 26 February 2020.
23 Options issued to Mr Howe to provide performance linked incentive approved at AGM 23 November 2023.
24 Options issued to Mr Valiukas to provide performance linked incentive approved at EGM 10 July 2024.
KAISER REEF LIMITED 2024
Directors’ Report
15
Remuneration Report (Audited) continued
Valuation of Rights Granted
During the 2024 year the Group granted the following rights to KMP, which were valued at grant date as follows:
Bradley Valiukas
Tranche
Value per
right
Number of rights
granted
Total value*
Valuation methodology
A
$0.165
2,000,00025
$330,000
Share price at grant date
Total
2,000,000
$330,000
*The holder must be an employee of the Company in order for the rights to vest on achievement of the relevant performance hurdles. Accordingly, the total
value of rights at grant date has been vested over the relevant performance period. The rights value are at the grant date share price with nil discount, nil
dividend expected and no market conditions.
Performance rights conditions
The performance rights granted to Mr Valiukas include vesting
conditions being satisfaction of the following conditions:
By the 18th of December 2025:
LTIP 2,000,000
• A1 Mine operations reaches and maintains a production
profile of 6,000 oz/quarter for at least two (2) consecutive
quarter or more than a combine 18,000 ounces overs three
(3) quarters and an AISC below AUD$2,000/oz.
.
Valuation of Options Granted
During the year the Group granted the following options, Mr Valiukas and M Formica’s options are still subject to shareholders approval as at
30 June 2024.
Description
A Byass
J Downes
S Howe
B Valiukas
S Formica
Number of options
3,000,000
4,000,000
3,000,000
2,000,000
2,000,000
Grant date
22/11/2023
22/11/2023
22/11/2023
18/12/2023
22/5/2024
Grant date share price ($)
0.17
0.17
0.17
0.165
0.145
Exercise price ($)
0.25
0.25
0.25
0.25
0.25
Volatility (%)
65
65
65
65
73
Risk free rate (%)
3.8
3.8
3.8
3.8
4.4
Term (in years)
3.00
3.00
3.00
3.00
3.98
Fair value per option ($)
0.056
0.056
0.056
0.056
0.065
Total value of options granted
$169,001
$225,335
$169,001
$112,667
$129,073
Relationship between Group performance and remuneration – past five years
Earnings26
2024
2023
2022
2021
2020
Sales revenue ($)
23,702,742
30,692,226
22,785,222
5,085,396
-
EBITDA ($)
(1,759,949)
4,906,015
4,541,592
(10,472,589)
(310,863)
Statutory net profit/(loss) after tax ($)
(5,534,228)
1,171,617
(2,262,838)
(11,806,825)
(318,999)
Underlying net profit/(loss) after tax
($)
(5,534,228)
1,171,617
(2,262,838)
(3,956,058)
(318,999)
Total shareholder returns
Share price at financial year end ($)
0.17
0.20
0.15
0.26
0.29
Total dividends declared ($)
-
-
-
-
-
Basic earnings per shares ($)
(3.45)
0.82
(1.70)
(19.66)
(2.73)
Voting and comments made at the Company’s 2023 Annual General Meeting (‘AGM’)
At the 2023 AGM, 94.8% of the votes received supported the adoption of the remuneration report for the year ended 30 June 2023. The
company did not receive any specific feedback at the AGM regarding its remuneration practices.
END OF REMUNERATION REPORT (AUDITED)
25 The probability of achievement has been applied at 30 June 2024 is 30%.
26 No performance is measured on TSR
KAISER REEF LIMITED 2024
Directors’ Report
16
Meeting of Directors
During the year Directors’ meeting were held. Attendance by each
Director during the year were as follows:
Number of
eligible to
attend
Attended
A Byass
2
2
S Formica
-
-
J Downes
2
2
S Howe
2
2
B Valiukas
1
1
Shares under options
There were 30,650,000 (30 September 2023: 18,494,800) unissued
ordinary shares under option at the date of this report.
Shares issued on the exercise of options
There were no Kaiser Reef Limited ordinary shares issued on the
exercise of options during the year ended 30 June 2024 (30 June
2023: nil). Refer to note 15 for further information on shares
issued.
Indemnification and insurance of officers
The Company’s Constitution provides that, to the extent permitted
by law, the Company must indemnify any person who is, or has
been, an officer of the Company against any liability incurred by
that person including any liability incurred as an officer of the
Company or a subsidiary of the Company and legal costs incurred
by that person in defending an action.
During the year the Company paid an insurance premium for
Directors’ and Officers’ Liability and Statutory Liability policies. The
contract of insurance prohibits disclosure of the amount of the
premium and the nature of the liabilities insured under the policy.
The Company has agreed to indemnify their external auditors, BDO
Audit Pty Ltd, to the extent permitted by law, against any claim by
a third party arising from the Company’s breach of their
agreement. The indemnity stipulates that the Company will meet
the full amount of any such liabilities including a reasonable
amount of legal costs.
Non-audit services
The Group may decide to employ the Auditor on assignments
additional to their statutory audit duties where the Auditor’s
expertise and experience with the Company and/or Group are
important.
The Board of Directors has considered the position and, is satisfied
that the provision of non-audit services during the year as set out
in Note 16 did not compromise the auditor independence
requirements of the Corporations Act 2001 for the following
reasons:
•
All non-audit services were reviewed by the Board to ensure
they do not impact the impartiality and objectivity of the
auditor; and
•
The Executives annually informs the Board of the detail, nature
and amount of any non-audit services rendered by BDO during
the financial year, giving an explanation of why the provision
of these services is compatible with auditor independence. If
applicable, the Board take appropriate action to satisfy itself
of the independence of BDO.
Auditor independence
A copy of the Auditor’s Independence Declaration required under
section 307C of the Corporations Act 2001 is set out on page 17
and forms part of this Directors’ Report.
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.
No proceedings have been brought or intervened in on behalf of
the Company with leave of the Court under section 237 of the
Corporations Act 2001.
Events occurring after the end of the financial year
The Directors are not aware of any matter or circumstance that
has arisen since the end of the financial year that, in their opinion,
has significantly affected or may significantly affect in future years
the Company’s or the Group’s operations, the results of those
operations or the state of affairs.
Announced on 22 May 2024, the Group announced the terms of
Ragnar Metals Limited strategic investment of:
$5,010,000 placement in Kaiser at 15 cents per share (no discount)
consisting of:
•
tranche 1 of $930,000 (6,200,000 shares and 3,100,000
unlisted options); and
•
tranche 2 of $4,080,000 (27,200,000 shares and 13,600,000
unlisted options) to be issued subject to shareholder
approval at a general meeting.
1 option for every 2 shares, with a $0.22 exercise price and expiry
of 31 July 2028.
Ragnar will receive a 1.5% net smelter return on gold produced
from the A1 Gold Mine for a period of 5 years commencing from
the 1 July 2025.
Shareholders approved a two tranche placement at the company’s
general meeting of shareholders held on 10 July 2024 and the
funds were received the 16 July 2025. The investment represents
a 16% holding of Kaiser Reef Limited.
Rounding of amounts
Kaiser Reef Limited is a Company of the kind referred to in ASIC
Corporations (Rounding in Financial/Directors’ Report) Instrument
2016/191 issued by the Australian Securities and Investment
Commission (ASIC). As a result, amounts in this Directors’ Report
and the accompanying Financial Report have been rounded to the
nearest dollars, except where otherwise indicated.
This report is made in accordance with a resolution of Directors.
For and on behalf of the Board
Dated at Perth this 25th day of September 2024
Jonathan Downes
Managing Director
KAISER REEF LIMITED 2024
Directors’ Report
Page | 17
Auditors’ independence – blank page
KAISER REEF LIMITED 2024
Page | 18
Financial Report
Contents
Consolidated Financial Statements
Page
About this report
18
Consolidated statement of profit or loss and other
comprehensive income
19
Consolidated statement of financial position
20
Consolidated statement of changes in equity
21
Consolidated statement of cash flows
22
Notes to the consolidated financial statements
A. Key results
1 Revenue and expenses
23
2 Tax
24
3 Earnings per share
26
4 Property, plant and equipment
27
5 Mine properties
29
6 Exploration and evaluation
30
7 Rehabilitation provision
31
8 Working capital
32
9 Financial risk management
33
10 Net debt
35
11 Parent entity disclosures
36
12 Controlled entities
36
13 Employee benefit expenses and provisions
37
14 Share-based payments
38
15 Contributed equities
40
16 Remuneration of auditors
40
17 Events occurring after the balance sheet date
40
18 Related party transactions
40
19 Contingencies
40
20 Basis of preparation
41
Accounting standards
42
Signed reports
Directors’ declaration
43
Independent auditor’s report
44
ASX information
Corporate directory
47
Additional information for public listed companies
48
About this report
Kaiser Reef Limited (the “Company” or “Parent Entity”) is a
company limited by shares incorporated in Australia whose shares
are publicly traded on the Australian Stock Exchange (ASX). The
consolidated financial statements of the Company as at and for the
year ended 30 June 2024 comprise the Company and its
subsidiaries (together referred to as the “Group”). The Group is a
for-profit entity primarily involved in mining and sale of gold,
mineral exploration and development.
The financial report is a general-purpose financial report, which
has been prepared in accordance with Australian Accounting
Standards (AASBs) (including Australian Interpretations) adopted
by the Australian Accounting Standards Board (AASB) and the
Corporations Act 2001. Where required by accounting standards
comparative figures have been adjusted to conform to changes in
presentation in the current year. The consolidated financial report
of the Group complies with International Financial Reporting
Standards (IFRSs) and interpretations issued by the International
Accounting Standards Board.
What’s in this report
Kaiser Reef’s Directors have included information in this report
that they deem to be material and relevant to the understanding
of the financial statements and the Group.
A disclosure has been considered material and relevant where:
• the dollar amount is significant in size (quantitative);
• the dollar amount is significant in nature (qualitative);
• the Group’s result cannot be understood without the specific
disclosure; and
• it relates to an aspect of the Group’s operations that is
important to its future performance.
Material accounting policies and critical accounting judgements
and estimates applied to the preparation of the consolidated
financial statements are presented where the related accounting
balance or consolidated financial statement matter is discussed.
To assist in identifying critical accounting judgements and
estimates, we have highlighted them in the following manner:
Accounting judgements and estimates
KAISER REEF LIMITED 2024
Financial Report
Page | 19
Consolidated statement of profit or loss and other comprehensive income
for the year ended 30 June 2024
Consolidated
Consolidated
2024
2023
Notes
$
$
Operations
Revenue
1
23,702,742
30,692,226
Mine operating costs
1
(25,864,875)
(27,329,939)
Gross (loss)/profit
(2,162,133)
3,362,287
Other income
1
163,151
120,834
Exploration expensed
(1,066)
(893)
Corporate costs
1
(3,463,911)
(2,286,055)
Operational (loss)/profit
(5,463,959)
1,196,173
Finance costs
10
(70,269)
(24,556)
(Loss)/profit before income tax
(5,534,228)
1,171,617
Income tax expense
2
-
-
Net (loss)/profit after tax
(5,534,228)
1,171,617
Other comprehensive income
-
-
Total comprehensive (loss)/income attributable to equity holders of the
Company
(5,534,228)
1,171,617
Earnings per share
Basic (losses)/earnings per share (cents per share)
3
(3.45)
0.82
Diluted (losses)/earnings per share (cents per share)
3
(3.45)
0.76
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the notes to the consolidated financial
statements.
KAISER REEF LIMITED 2024
Financial Report
Page | 20
Consolidated statement of financial position
as at 30 June 2024
Consolidated
Consolidated
2024
2023
Notes
$
$
Assets
Current assets
Cash and cash equivalents
10
1,112,332
3,225,145
Trade and other receivables
8
652,351
1,746,094
Inventories
8
1,924,189
2,384,484
Assets held for sale
6
1,445,297
-
Total current assets
5,134,169
7,355,723
Non-current assets
Trade and other receivables
8
847,000
847,000
Property, plant and equipment
4
7,168,219
8,635,407
Mine properties
5
13,091,107
8,225,026
Exploration and evaluation
6
3,995,687
7,232,475
Total non-current assets
25,102,013
24,939,908
Total assets
30,236,182
32,295,631
Liabilities
Current liabilities
Trade and other payables
8
3,042,730
4,333,054
Provisions
13
919,756
635,695
Interest bearing liabilities
10
413,415
330,059
Total current liabilities
4,375,901
5,298,808
Non-current liabilities
Rehabilitation provision
7
1,285,031
1,251,616
Provisions
13
292,883
312,578
Interest bearing liabilities
10
186,401
213,307
Total non-current liabilities
1,764,315
1,777,501
Total liabilities
6,140,216
7,076,309
Net assets
24,095,966
25,219,322
Equity
Contributed equity
15
39,611,166
36,340,521
Share based payment reserve
14
2,484,605
1,738,050
Accumulated losses
(17,999,805)
(12,859,249)
Total equity
24,095,966
25,219,322
The above consolidated statement of financial position should be read in conjunction with the notes to the consolidated financial statements.
KAISER REEF LIMITED 2024
Financial Report
Page | 21
Consolidated statement of changes in equity
for the year ended 30 June 2024
The above consolidated statement of changes in equity should be read in conjunction with the notes to the consolidated financial statements.
Consolidated
Note
Contributed
Equity
$
Share based
payment
reserve
$
Accumulated
Losses
$
Total
$
Balance at 30 June 2023
36,340,521
1,738,050
(12,859,249)
25,219,322
Total comprehensive income for the year
Loss attributable to equity holders of the Company
-
-
(5,534,228)
(5,534,228)
Transactions with owners of the Company recognised directly
in equity:
Share-based payments
-
759,922
351,679
1,111,601
Performance rights movement
-
(13,367)
41,993
28,626
Employee incentives issued as shares
35,909
-
-
35,909
Ordinary shares issued for strategic placement
3,475,000
-
-
3,475,000
Cost of equity issued
(240,264)
-
-
(240,264)
Balance at 30 June 2024
15
39,611,166
2,484,605
(17,999,805)
24,095,966
Consolidated
Note
Contributed
Equity
$
Share based
payment
reserve
$
Accumulated
Losses
$
Total
$
Balance at 30 June 2022
35,431,839
1,447,649
(14,069,663)
22,809,825
Total comprehensive income for the year
Profit attributable to equity holders of the Company
-
-
1,171,617
1,171,617
Transactions with owners of the Company recognised directly
in equity:
Share-based payments
-
346,801
-
346,801
Performance rights movement
-
(18,400)
38,797
20,397
Employee incentives issued as shares
31,384
-
-
31,384
Ordinary shares issued for strategic placement
900,000
-
-
900,000
Cost of equity issued
(60,702)
-
-
(60,702)
Ordinary shares issued to Director provisionally granted in
prior year
38,000
(38,000)
-
-
Balance at 30 June 2023
15
36,340,521
1,738,050
(12,859,249)
25,219,322
KAISER REEF LIMITED 2024
Financial Report
Page | 22
Consolidated statement of cash flows
for the year ended 30 June 2024
Consolidated
Consolidated
2024
2023
Notes
$
$
Cash Flows From Operating Activities:
Receipts from customers (inclusive of GST)
23,840,197
30,785,204
Payments to suppliers and employees (inclusive of GST)
(23,357,813)
(25,207,360)
Interest received
19,546
27,856
Interest paid
(34,173)
(24,556)
Net cash inflow from operating activities
10
467,757
5,581,144
Cash Flows From Investing Activities:
Payments for property, plant and equipment
4
(1,018,921)
(4,176,350)
Payments for development of mining properties
5
(3,073,928)
(3,152,517)
Payments for exploration and evaluation
6
(1,238,564)
(2,056,441)
Proceeds from sales of fixed assets
3,470
-
Net cash outflow from investing activities
(5,327,943)
(9,385,308)
Cash Flows From Financing Activities:
Proceeds from issue of ordinary shares
15
3,475,000
900,000
Payment for cost of shares issued
15
(240,264)
(60,702)
Insurance premium funding principal repayments
(333,715)
(328,536)
Lease principal repayments
(153,648)
(63,372)
Net cash inflow from financing activities
2,747,373
447,390
Net decrease in cash and cash equivalents
(2,112,813)
(3,356,774)
Cash and cash equivalents at the beginning of the year
3,225,145
6,581,919
Cash and cash equivalents at the end of the year
10
1,112,332
3,225,145
Cash flows are included in the consolidated statement of cash flows on a gross basis. The GST component of cash flows arising from investing or financing
activities, which are recoverable from, or payable to, the taxation authority are classified as part of operating cash flows.
The above consolidated statement of cash flows should be read in conjunction with the notes to the consolidated financial statements.
KAISER REEF LIMITED 2024
Notes to the Financial Report
Page | 23
1
Revenue, Income, mine operating costs and
corporate costs
Consolidated Consolidated
2024
$
2023
$
Revenue
Gold sales
23,702,742
30,692,226
Other income
Silver sales
33,672
14,589
Interest revenue
19,546
27,856
Other
93,207
75,000
Scrap metal sales
16,726
3,389
Total other income
163,151
120,834
Total revenue and income
23,865,893
30,813,060
Mine operating costs
Gold operation expenditure
(11,167,879)
(11,942,000)
Employee expense
(10,973,440)
(11,650,241)
Depreciation & Amortisation
(3,723,556)
(3,737,698)
Total operating cost
(25,864,875)
(27,329,939)
Corporate costs
Administrative cost
(2,325,045)
(1,912,614)
Share based payments(1)
(1,140,227)
(367,198)
Foreign exchange movements
1,361
(6,243)
Total corporate costs
(3,463,911)
(2,286,055)
(1) Refer to note 14 on share based payments.
Sales revenue
Revenue from the sale of gold and silver in the course of ordinary
activities is measured at the fair value of the consideration received
or receivable. The Group recognises revenue at a point in time when
control (physical or contractual) is transferred to the buyer, the
amount of revenue can be reliably measured and the associated
costs can be estimated reliably, and it is probable that future
economic benefits will flow to the Group.
The Group only sells its products to licenced refineries within
Australia. During the period, the Group sold $15,172,497 of gold to
ABC Refinery (Australia) Pty Ltd (2023: $30,692,226) and changed to
Gold Corporation (Western Australian Mint) being its sole customer
and sold $8,530,245 of gold bullion (2023: $nil). The company
currently only sell its products to the Gold Corporation.
Segment reporting
The consolidated entity has considered the requirements of AASB 8
– Operating Segments and has identified its operating segments
based on the internal reports that are reviewed and used by the
board of Directors (chief operating decision makers) in assessing
performance and determining the allocation of resources. The
consolidated entity operates predominantly in one business
segment and in one geographical location. The operations of the
consolidated entity consist of mineral production and exploration,
within Australia.
KAISER REEF LIMITED 2024
Notes to the Financial Report
Page | 24
2
Income tax
Income tax expense
Consolidated
Consolidated
2024
$
2023
$
Current tax expense
-
-
Under provision in respect of
the prior year
-
-
Movement in deferred tax
-
-
Total income tax expense
-
-
Numerical reconciliation of income tax expense to prima facie tax
payable
Consolidated
2024
$
Consolidated
2023
$
(Loss)/profit before income tax
(5,534,228)
1,171,617
Tax at the Australian tax rate of
25%
(1,383,557)
292,904
Tax effect of amounts not
deductible/ (taxable) in
calculating taxable income:
Entertainment
2,319
1,605
Share based payments
285,056
91,800
FBT expense
2,223
2,073
Other permanent differences
-
-
Deferred tax assets
(recognised)/not brought to
account
(445,459)
(1,153,474)
Tax losses not brought to
account
1,539,418
765,092
Income tax expense
-
-
Income tax
Income tax expense comprises current and deferred tax. Current tax
and deferred tax are recognised in the consolidated profit and loss,
except to the extent that it relates to a business combination, or
items recognised directly in equity or in other comprehensive
income.
Current tax is the expected tax payable or receivable on the taxable
income for the year, using tax rates enacted or substantively enacted
at the reporting date, and any adjustment to tax payable in respect
of previous years.
Tax exposure
In determining the amount of current and deferred tax the Group
takes into account the impact of uncertain tax positions and whether
additional taxes and interest may be due. This assessment relies on
estimates and assumptions and may involve a series of judgements
about future events. New information may become available that
causes the Group to change its judgement regarding the adequacy
of existing tax liabilities; such changes to tax liabilities may impact
tax expense in the period that such a determination is made.
Tax consolidation
Entities in the Australian tax consolidated group at 30 June 2024
included: Golden River Resources Pty Ltd (head entity), Kaiser
Mining Pty Ltd and Kaiser Operations Pty Ltd. Current and deferred
tax amounts are allocated using the “separate taxpayer within
group” method.
A tax sharing and funding agreement has been established between
the entities in the tax consolidated group. The Company recognises
deferred tax assets arising from the unused tax losses of the tax
consolidated group to the extent that it is probable that future
taxable profits of the tax consolidated group will be available against
which the asset can be utilised.
Current tax liability
As at 30 June 2024, the Company had a nil current tax liability.
Accounting judgements and estimates
Deferred tax assets relating to the acquiree which have been
brought to account to the extent of offsetting deferred tax liabilities
relating to the acquisition of Kaiser Mining Pty Ltd are expected to
be available for use by the Group in accordance with AASB 112 and
IFRIC 23.
At 30 June 2024, tax losses relating to entities associated of
$1,691,391 (tax effected) were not booked (2023: $765,092).
KAISER REEF LIMITED 2024
Notes to the Financial Report
Page | 25
2
Income tax (continued)
Deferred tax balances
Consolidated
Consolidated
2024
$
2023
$
Deferred tax liabilities
Property, plant and equipment
(715,721)
(890,798)
Mine properties
(3,662,351)
(2,694,380)
Exploration and evaluation
assets
(997,516)
(1,440,007)
Other temporary differences
(98,706)
(83,714)
Total
(5,474,294)
(5,108,899)
Offset by deferred tax assets
5,474,294
5,108,899
Net deferred tax liability
recognised
-
-
Deferred tax assets
Trade and other payables
101,513
88,397
Provisions – current
246,718
169,470
Rehabilitation provision – non-
current
320,425
312,904
Provisions – non-current
59,982
71,139
Other tax deductible amounts
3,975,474
4,081,397
Tax losses
3,566,661
2,030,905
Total
8,270,773
6,754,212
Offset against deferred tax
liabilities
(5,474,294)
(5,108,899)
Net deferred tax assets not
brought to account
2,796,479
1,645,313
Deferred tax
Deferred tax is recognised in respect of temporary differences
between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for:
•
Temporary differences on the initial recognition of assets or
liabilities in a transaction that is not a business combination and
that affects neither accounting nor taxable profit or loss;
•
Temporary differences related to investments in subsidiaries
and jointly controlled entities to the extent that it is probable
that they will not reverse in the foreseeable future; and
•
Taxable temporary differences arising on the initial recognition
of goodwill.
Deferred tax is measured at the tax rates that are expected to be
applied to temporary differences when they reverse, based on the
laws that have been enacted or substantively enacted by the
reporting date.
A deferred tax asset is recognised for unused tax losses, tax credits
and deductible temporary differences, to the extent that it is
probable that future taxable profits will be available against which
they can be utilised. Deferred tax assets are reviewed at each
reporting date and are reduced to the extent that it is no longer
probable that the related tax benefit will be realised.
Tax benefits acquired as part of a business combination, but not
satisfying the criteria for separate recognition at that date, are
recognised subsequently if new information about facts and
circumstances change.
Deferred tax assets and liabilities are offset if there is a legally
enforceable right to offset current tax liabilities and assets, and they
relate to income taxes levied by the same tax authority on the same
taxable entity, or on different tax entities, but they intend to settle
current tax liabilities and assets on a net basis or their tax assets and
liabilities will be realised simultaneously.
Accounting judgements and estimates
At each reporting date, the Group performs a review of the probable
future taxable profit in each jurisdiction. The assessments are based
on the latest life of mine plans relevant to each jurisdiction and the
application of appropriate economic assumptions such as gold price
and operating costs. Any resulting recognition of deferred tax assets
is categorised by type (e.g. tax losses or temporary differences) and
recognised based on which would be utilised first according to that
particular jurisdiction’s legislation.
KAISER REEF LIMITED 2024
Notes to the Financial Report
Page | 26
3
Earnings per share
Consolidated
Consolidated
2024
2023
Cents
Cents
Basic (losses)/earnings per share
(3.45)
0.82
Diluted (losses)/earnings per
share
(3.45)
0.76
Reconciliation of earnings/(losses) used in calculating
earnings/(losses) per share
Consolidated
Consolidated
2024
$
2023
$
Basic and diluted
(losses)/earnings per share:
(Loss)/profit after tax for the
year
(5,534,228)
1,171,617
Weighted average number of shares
Consolidated
Consolidated
2024
2023
Number(1)
Number
Weighted average number of
ordinary shares used in
calculating basic earnings per
share
171,043,894
142,651,075
Weighted average number of
ordinary shares and potential
ordinary shares used in
calculating diluted earnings per
share
171,043,894
154,039,943
(1) Weighted average adjustment had an anti-dilutive impact on loss per
share.
Basic earnings/(losses) per share
Basic earnings/(losses) per share is calculated by dividing the profit
or loss attributable to equity holders of the Company, excluding any
costs of servicing equity other than ordinary shares, by the weighted
average number of ordinary shares outstanding during the reporting
year.
Diluted earnings/(losses) per share
Diluted earnings/(losses) per share adjusts the figures used in the
determination of basic earnings/(losses) 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.
Basic loss per share is not diluted.
Performance rights and options
Performance rights and options granted to employees under the
Kaiser Performance Rights Plan are considered to be potential
ordinary shares and are included in the determination of diluted
earnings per share to the extent to which they are dilutive. The
rights and options are not included in the determination of basic
earnings per share until the performance conditions are met.
Weighted average of number of shares
The calculation of the weighted average number of shares is based
on the number of ordinary shares and performance rights during the
year.
KAISER REEF LIMITED 2024
Notes to the Financial Report
Page | 27
4
Property, plant and equipment
Consolidated
Consolidated
Non-current
2024
$
2023
$
Land and buildings
At the beginning of the year
386,400
44,436
Additions
-
413,336
Depreciation (range 3-15 years)
(143,867)
(71,372)
Disposals
-
-
At the end of the year(1)
242,533
386,400
Plant and equipment
At the beginning of the year
8,249,007
5,889,238
Additions
721,140
2,559,977
Assets under construction
297,781
1,616,373
Disposals
(455)
(44,557)
Depreciation (range 3-15 years)
(2,341,787)
(1,772,024)
At the end of the year
6,925,686
8,249,007
Total
7,168,219
8,635,407
Reconciliation of depreciation and amortisation to the
consolidated income statement
Consolidated
Consolidated
2024
$
2023
$
Depreciation
Land and buildings
(143,867)
(71,372)
Plant and equipment
(2,341,787)
(1,772,024)
Amortisation
Mine properties
(1,237,902)
(1,894,302)
Total
(3,723,556)
(3,737,698)
(1) Right of use assets totaling $203,807 have been included within balance.
Buildings, plant and equipment are stated at historical cost less
accumulated depreciation. Historical cost includes expenditure that
is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or
recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will
flow to the Group and the cost of the item can be measured reliably.
All other repairs and maintenance are charged to the consolidated
income statement during the financial period in which they are
incurred.
Depreciation of assets is calculated using the straight line method to
allocate the cost or revalued amounts, net of residual values, over
their estimated useful lives. Where the carrying value of an asset is
less than its estimated residual value, no depreciation is charged.
Residual values and useful lives are reviewed, and adjusted if
appropriate, at each balance date.
An asset’s carrying amount is written down immediately to its
recoverable amount, if the asset’s carrying amount is greater than
its estimated recoverable amount.
Gains and losses on disposal are determined by comparing proceeds
with the carrying amount. These gains and losses are included in the
consolidated income statement when realised.
Accounting judgements and estimates
Estimation of useful lives of assets
The consolidated entity determines the estimated useful lives and
related depreciation charges for its property, plant and equipment.
The useful lives could change significantly as a result of technical
innovations or some other event. The depreciation charge will
increase where the useful lives are less than previously estimated
lives, or technically obsolete or non-strategic assets that have been
abandoned or sold will be written off or written down.
Impairment of non-financial assets other than goodwill and other
indefinite life intangible assets
The consolidated entity assesses impairment of non-financial assets
other than goodwill and other indefinite life intangible assets at each
reporting date by evaluating conditions specific to the consolidated
entity and to the particular asset that may lead to impairment. If an
impairment trigger exists, the recoverable amount of the asset is
determined. This involves determining fair value less costs of
disposal or value-in-use calculations, which incorporate a number of
key estimates and assumptions.
KAISER REEF LIMITED 2024
Notes to the Financial Report
Page | 28
4
Property, plant and equipment (continued)
Right‐of‐use assets (leases)
This note provides information for right‐of‐use of asset where the
group is a lessee.
Consolidated
Consolidated
Right-of-use assets
2024
$
2023
$
Land and buildings
At the beginning of the year
344,819
-
Additions
-
413,336
Depreciation (range 2-3 years)
(141,012)
(68,517)
Disposals
-
-
At the end of the year
203,807
344,819
Consolidated
Consolidated
Right -of-use lease liabilities
2024
$
2023
$
Current
140,275
136,657
Non-Current
73,029
213,307
Total interest bearing liabilities
213,304
349,964
The Group’s leasing activities
The Group leases rental accommodation for the A1 Mine. Contracts
are typically made for fixed periods of 1 months to 2 years but may
have extension options as described below.
Contracts may contain both lease and non-lease components. The
group allocates the consideration in the contract to the lease and
non-lease components based on their relative stand-alone value. As
a Lessee the Group individually accesses single lease components.
Lease terms are negotiated on individual operational requirements
and contain a wide range of different terms and conditions. The
lease agreements do not impose any covenants other than the
security interests in the leased assets that are held by the lessor.
Leased assets are not used as security for borrowing purposes.
Accounting judgements and estimates
Assets and liabilities arising from a lease are initially measured on a
present value basis. Lease liabilities include the net present value of
the following lease payments:
-
fixed payments, less any lease incentives receivable
-
the exercise price of a purchase option if the Group is
reasonably certain to exercise that option, and
-
payments of penalties for terminating the lease, if the lease
term reflects the Group exercising that option.
Lease payments to be made under reasonably certain extension
options under management’s assessment are also included in the
measurement of the liability.
The lease payments are discounted using the interest rate implicit in
the lease. If that rate cannot be readily determined, the lessee’s
incremental borrowing rate is used, being the rate that the individual
lessee would have to pay to borrow the funds necessary to obtain
the asset.
Lease payments are allocated between principal and finance cost.
The finance cost is charged to profit or loss over the lease period so
as to produce a constant periodic rate of interest on the remaining
balance of the liability for each period.
Management has applied judgement in determining whether assets
used by a supplier in providing services to the Group qualify as right-
of-use assets.
Right-of-use assets are depreciated over the shorter of the asset’s
useful life or the lease term on a straight-line basis. If the group is
reasonably certain to exercise a purchase option, the right-of-use
asset is depreciated over the underlying asset’s useful life. The
Group has chosen not to do so for the right-of-use assets held by the
Group.
Payments associated with short-term leases of equipment and
vehicles and all leases of low-value assets are recognised on a
straight-line basis as an expense in profit or loss.
Short-term leases are leases with a lease term of 12 months or less
without a purchase option.
The lease term is reassessed if an option is actually exercised (or not
exercised) or the Group becomes obliged to exercise (or not exercise)
it. The assessment of reasonable certainty is only revised if a
significant event or a significant change in circumstances occurs,
which affects this assessment, and that is within the control of the
lessee. The financial effect of measuring lease terms to reflect the
effect of exercising extension and termination options was an
increase in recognised lease liabilities and right-of-use assets of
$144,456 (2023: 144,456).
KAISER REEF LIMITED 2024
Notes to the Financial Report
Page | 29
5
Mine properties
Non-current
Consolidated
Consolidated
Mine properties
2024
$
2023
$
At beginning of the year
8,225,026
7,403,195
Additions
3,073,928
3,152,517
Transfer from exploration
3,030,055
-
Rehabilitation movement(1)
32,646
(436,384)
Amortisation for the year
(1,270,548)
(1,894,302)
At end of the year
13,091,107
8,225,026
(1) Rehabilitation movement generated as a result of the change in
discount rate applied to the rehabilitation provision and the unwinding
of the discount (refer Note 7).
Mine properties
Mine development expenditure represents the acquisition cost
and/or accumulated exploration, evaluation and development
expenditure in respect of areas of interest in which mining has
commenced.
When further development expenditure is incurred in respect of a
mine, after the commencement of production, such expenditure is
carried forward as part of the mine development only when
substantial future economic benefits are established, otherwise such
expenditure is classified as part of production and expensed as
incurred.
Mine development costs are deferred until commercial production
commences, at which time they are amortised on a unit-of-
production basis over mineable resources. The calculation of
amortisation takes into account future costs which will be incurred
to develop all the mineable resources. Changes to mineable
resources are applied from the beginning of the reporting period and
the amortisation charge is adjusted prospectively from the
beginning of the period.
Accounting judgements and estimates
The Group applies the units of production method for amortisation
of its life of mine specific assets, which results in an amortisation
charge proportional to the depletion of the anticipated remaining
life of mine production. Amortisation has been based on indicated
and inferred resource estimates. These calculations require the use
of estimates and assumptions in relation to resources, metallurgy
and the complexity of future capital development requirements;
changes to these estimates and assumptions will impact the
amortisation charge in the consolidated statement of profit or loss
and asset carrying values.
During the year, the Group increased the A1 Mine’s life of mine plan
as a result of strong positive drilling result analysis, historical mining
data and mineral resources. This resulted in the reduction of
amortisation charges of the mine properties.
Impairment of assets
All asset values are reviewed at each reporting date to determine
whether there is objective evidence that there have been events or
changes in circumstances that indicate that the carrying value may
not be recoverable. Where an indicator of impairment exists, a
formal estimate of the recoverable amount is made. An impairment
loss is recognised for the amount by which the carrying amount of
an asset or a cash generating unit (‘CGU’) exceeds the recoverable
amount. Impairment losses are recognised in the consolidated
statement of profit or loss.
The Group assesses impairment of all assets at each reporting date
by evaluating conditions specific to the Group and to the particular
assets that may lead to impairment.
The identified CGU of the Group is: Kaiser Mining. The carrying
value of all CGUs are assessed when an indicator of impairment is
identified using fair value less costs of disposal (‘Fair Value’) to
calculate the recoverable amount.
When required by an indicator of impairment, fair value is
determined as the net present value of the estimated future cash
flows. Future cash flows are based on life-of-mine plans using
market based commodity price quantities of ore reserves and/or
mineral resources inventories, operating costs and future capital
expenditure. Costs to dispose have been estimated by management.
Accounting judgements and estimates –- Impairment
Significant judgements and assumptions are required in making
estimates of Fair Value. The CGU valuations are subject to variability
in key assumptions including, but not limited to: long-term gold
prices, currency exchange rates, discount rates, production,
operating costs, future capital expenditure and permitting of new
mines. An adverse change in one or more of the assumptions used
to estimate Fair Value could result in a reduction in a CGU’s
recoverable value. This could lead to the recognition of impairment
losses in the future.
At 30 June 2024, the Group determined that there were no
indicators of impairment for the Kaiser Mining cash generating unit
due to the strong gold forecast prices at 30 June 2024, existing long
life mining at A1 Mine, ongoing development of resources, together
with the relatively low carrying value to recover. A formal estimation
of impairment of the recoverable value of the Maldon development
was made and no impairment was noted for low carrying value.
Mineral Resources
The Group determines and reports mineral resources under the
2012 edition of the Australian Code for Reporting of Mineral
Resources and Ore Reserves, known as the JORC Code. The JORC
Code requires the use of reasonable investment assumptions to
calculate resources. Due to the fact that economic assumptions used
to estimate resources change from period to period, and geological
data is generated during the course of operations, estimates of
resources may change from period to period.
Accounting judgements and estimates– Ore Resource
Resources are estimates of the amount of gold product that can be
economically extracted from the Group’s properties. In order to
calculate resources, estimates and assumptions are required about
a range of geological, technical and economic factors, including
quantities,
grades,
production
techniques,
recovery
rates,
production costs, future capital requirements, short and long term
commodity prices and exchange rates.
Estimating the quantity and/or grade of resources requires the size,
shape and depth of ore bodies to be determined by analysing
geological data. This process may require complex and difficult
geological judgements and calculations to interpret the data.
Changes in reported resources may affect the Group’s financial
results and financial position in a number of ways, including:
•
Asset carrying values may be impacted due to changes in
estimated future cash flows.
•
The recognition of deferred tax assets.
•
Depreciation and amortisation charged in the consolidated
statement of profit or loss may change where such charges are
calculated using the units of production basis.
•
Capital development deferred in the statement of financial
position or charged in the consolidated statement of profit and
loss may change due to a revision in the development
amortisation rates.
•
Decommissioning, site restoration and environmental provisions
may change where changes in estimated resources affect
expectations about the timing or cost of these activities.
KAISER REEF LIMITED 2024
Notes to the Financial Report
Page | 30
6
Exploration and evaluation
Consolidated Consolidated
Non-current
2024
$
2023
$
At beginning of the year
7,232,475
5,176,034
Additions
1,238,564
2,056,441
Transfer to mine properties
(3,030,055)
-
Transfer to available for sale
assets
(1,445,297)
-
At end of the year
3,995,687
7,232,475
Commitments for exploration
2024
$
2023
$
In order to maintain rights of
tenure to mining tenements for
the next financial year, the Group
is committed to tenement rentals
and
minimum
exploration
expenditure in terms of the
requirements of the relevant
government mining departments
in Australia. This requirement will
continue for future years with the
amount
dependent
upon
tenement holdings.
743,690
856,190
Exploration and evaluation expenditure incurred is accumulated in
respect of each identifiable area of interest. These costs are only
carried forward to the extent that the Group holds current rights to
tenure and the costs are expected to be recouped through the
successful development of the area or where activities in the area
have not yet reached a stage that permits reasonable assessment of
the existence of economically recoverable resources.
Exploration and evaluation expenditure consists of an accumulation
of acquisition costs and direct exploration and evaluation costs
incurred, together with an allocation of directly related overhead
expenditure.
A regular review is undertaken of each area of interest to determine
the appropriateness of continuing to carry forward cost in relation
to that area of interest.
When an area of interest is abandoned, or the Directors determine
it is not commercially viable to pursue, accumulated costs in respect
of that area are written off in the period the decision is made.
On the 25 June 2024, the Company announced a binding terms for
divestment of the NSW exploration assets to HearMeOut Limited
(HMO). Subject to satisfaction, including due diligence, ASX
Approvals, HMO completing a capital raising and various regulatory
approvals. The terms of the divestment are as follows:
•
$25,000 Exclusivity Fee;
•
$1,100,000 in Script in HMO;
•
$500,000 reimbursement for past exploration;
•
Up to $2,000,000 in performance rights in HMO based upon
success hurdles that include resource definition and decisions
to mine: and,
•
Kaiser Reef Limited to retain 20% free carried interest in the
projects until a decision to mine is reached
HearMeOut Limited is an unlisted public company proposed to be
renamed Resolves Exploration Ltd upon listing. The transaction is
expected to be complete with FY25 financial year.
Accounting judgements and estimates
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 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.
KAISER REEF LIMITED 2024
Notes to the Financial Report
Page | 31
7
Rehabilitation provision
Consolidated Consolidated
2024
$
2023
$
Non-current
Provision for rehabilitation
1,285,031
1,251,616
1,285,031
1,251,616
Movements in Provisions
Rehabilitation
Balance at start of year
1,251,616
1,698,000
Additions
-
-
Provision used during the year
-
(10,000)
Change in discount rate(1)
3,330
(436,384)
Unwinding of discount
30,085
-
Balance at end of year
1,285,031
1,251,616
(1) Represents a change in real discount rate to 2.44% applied to the
rehabilitation provision at all operations (June 2023: 2.59%). This increase is
reflective of the increase in long term government bond rates.
Provisions, including those for legal claims and rehabilitation and
restoration costs, are recognised when the Group has a present legal
or constructive obligation as a result of past events, it is more likely
than not that an outflow of resources will be required to settle the
obligation, and the amount has been reliably estimated. Provisions
are not recognised for future operating losses.
The Group has obligations to dismantle, remove, restore and
rehabilitate certain items of property, plant and equipment and
areas of disturbance during mining operations.
A provision is made for the estimated cost of rehabilitation and
restoration of areas disturbed during mining operations up to
reporting date but not yet rehabilitated. The provision also includes
estimated costs of dismantling and removing the assets and
restoring the site on which they are located. The provision is based
on current estimates of costs to rehabilitate such areas, discounted
to their present value based on expected future cash flows. The
estimated cost of rehabilitation includes the current cost of
contouring, topsoiling and revegetation to meet legislative
requirements. Changes in estimates are dealt with on a prospective
basis as they arise.
There is some uncertainty as to the extent of rehabilitation
obligations that will be incurred due to the impact of potential
changes in environmental legislation and many other factors
(including future developments, changes in technology and price
increases). The rehabilitation liability is remeasured at each
reporting date in line with changes in the timing and /or amounts of
the costs to be incurred and discount rates. The liability is adjusted
for changes in estimates. Adjustments to the estimated amount and
timing of future rehabilitation and restoration cash flows are a
normal occurrence in light of the significant judgments and
estimates involved.
As the value of the provision represents the discounted value of the
present obligation to restore, dismantle and rehabilitate, the
increase in the provision due to the passage of time is recognised as
a borrowing cost. A large proportion of the outflows are expected
to occur at the time the respective mines are closed.
Accounting judgements and estimates
Mine rehabilitation provision requires significant estimates and
assumptions as there are many transactions and other factors that
will ultimately affect the liability to rehabilitate the mine sites.
Factors that will affect this liability include changes in regulations,
prices fluctuations, changes in technology, changes in timing of cash
flows which are based on life of mine plans and changes to discount
rates. When these factors change or are known in the future, such
differences will impact the mine rehabilitation provision in the
period in which it becomes known.
KAISER REEF LIMITED 2024
Notes to the Financial Report
Page | 32
8
Working capital
Trade and other receivables
Consolidated
Consolidated
2024
$
2023
$
Current
Trade receivables
-
-
Other receivables(1)
614,690
1,726,650
Prepayments
37,661
19,444
652,351
1,746,094
Non-current
Rehabilitation bond
847,000
847,000
Total
1,499,351
2,593,094
(1) Other trade receivable mainly consists of GST which is refundable to the
Group at the end of every quarter.
Inventories
Trade and other payables
Consolidated
Consolidated
2024
$
2023
$
Current
Trade payables
2,308,346
2,744,480
Other payables
734,384
1,588,574
Total
3,042,730
4,333,054
Trade receivables are recognised initially at fair value and
subsequently measured at amortised cost, less provision for
doubtful debts. Trade receivables are usually due for settlement no
more than 30 days from the date of recognition. Cash placed on
deposit with a financial institution to secure bank guarantee facilities
and restricted from use (‘restricted cash’) within the business is
disclosed as part of trade and other receivables.
Collectability of trade receivables is reviewed on an ongoing basis.
Debts which are known to be uncollectible are written off. The
amount of the provision for doubtful receivables is the difference
between the asset’s carrying amount and the present value of
estimated future cash flows, discounted at the effective interest rate.
The Group does not have material trade receivables for which there
is an expected credit loss though the consolidated profit and loss. It
only sells to licenced refineries, refer to note 1 for sole customers.
Other receivables are recognised at amortised cost, less any
allowance for expected credit losses.
Consumables, ore stockpiles, gold-in-circuit and bullion on hand are
valued at the lower of cost and net realisable value.
Cost comprises direct materials, direct labour and an appropriate
proportion of variable and fixed overhead expenditure relating to
mining activities, the latter being allocated on the basis of normal
operating capacity. Costs are assigned to individual items of
inventory on the basis of weighted average costs. 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.
Accounting judgements and estimates
The calculation of net realisable value (NRV) for ore stockpiles, gold
in circuit and bullion on hand involves significant judgement and
estimation in relation to timing and cost of processing, future gold
prices, exchange rates and processing recoveries. A change in any of
these assumptions will alter the estimated NRV and may therefore
impact the carrying value of inventories.
These amounts represent liabilities for goods and services provided
to the Group prior to the end of the financial year, which remain
unpaid as at reporting date. The amounts are unsecured and are
usually paid within 30 days from the end of the month of recognition.
Consolidated
Consolidated
2024
$
2023
$
Current
Consumables
889,213
693,155
Ore stockpiles
532,366
295,855
Gold in circuit
442,258
1,395,474
Bullion on hand
60,352
-
Total
1,924,189
2,384,484
KAISER REEF LIMITED 2024
Notes to the Financial Report
Page | 33
9
Financial risk management
Financial risk management
The Group’s management of financial risk is aimed at ensuring net
cash flows are sufficient to withstand significant changes in cash flow
under certain risk scenarios and still meet all financial commitments
as and when they fall due. The Group continually monitors and tests
its forecast financial position and has a detailed planning process
that forms the basis of all cash flow forecasting.
The Group's normal business activities expose it to a variety of
financial risk, being: market risk (especially gold price and foreign
currency risk), credit risk and liquidity risk. The Group may use
derivative instruments as appropriate to manage certain risk
exposures.
Risk management in relation to financial risk is carried out by a
centralised executive function in accordance with Board approved
directives that underpin policies and processes. The Executive
Leadership Team (and when required external consultants) assist
the Board in discharging their responsibilities in relation to
forecasted risk profiles, risk issues, risk mitigation strategies and
compliance with company policy. The executive team regularly
reports the findings to the Board.
(a) Market risk
Market risk is the risk that changes in market prices, such as
commodity prices, foreign exchange rates, interest rates and equity
prices will affect the Group’s income or the value of its holdings of
financial instruments, cash flows and financial position. The Group
may enter into derivatives, and also incur financial liabilities, in order
to manage market risks. All such transactions are carried out within
directives and policies approved by the Board.
(b)
Currency risk
The currencies in which transactions primarily are denominated are
Australian Dollars. The Group is exposed to currency risk only to the
extent of currency fluctuation effects on gold sales and purchases of
import inventories.
(c)
Interest rate exposures
The Board manages the interest rate exposures. Any decision to
hedge interest rate risk is assessed in relation to the overall Group
exposure, the prevailing interest rate market, and any funding
counterparty requirements.
(d)
Capital management
The Group’s total capital is defined as total shareholders’ funds plus
net debt. The Group aims to maintain an optimal capital structure
to reduce the cost of capital and maximise shareholder returns. The
Group has a capital management plan that is reviewed by the Board
on a regular basis.
The Group is not subject to externally imposed capital requirements
other than normal banking requirements.
(e)
Credit risk
Credit risk is the risk that a counter party does not meet its
obligations under a financial instrument or customer contract, with
a maximum exposure equal to the carrying amount of the financial
assets as recorded in the consolidated financial statements. The
Group is exposed to credit risk from its operating activities (primarily
customer receivables) and from its financing activities, including
deposits with banks and financial institutions.
Credit risks related to receivables
Based on historic rates of default, the Group believes that no
impairment has occurred with respect to trade receivables, and
none of the trade receivables at 30 June 2024 were past due.
(f)
Fair value estimation
The fair value of cash and cash equivalents and non-interest bearing
monetary financial assets and financial liabilities of the Group
approximates carrying value. The fair value of other monetary
financial assets and financial liabilities is based upon market prices.
The fair value of financial assets and financial liabilities must be
estimated for recognition and measurement, or for disclosure
purposes.
The fair value of financial instruments traded in active markets (such
as publicly traded derivatives, and trading and securities) is based on
quoted market prices at the balance sheet date. The quoted market
price used for financial assets held by the Group is the current bid
price; the appropriate quoted market price for financial liabilities is
the current ask price.
The fair value of financial instruments that are not traded in an active
market (for example, over the counter derivatives) is determined
using generally accepted valuation techniques. The Group uses a
variety of methods and makes assumptions that are based on
market conditions existing at each balance date.
The nominal value less estimated credit adjustments of trade
receivables and payables are assumed to approximate their fair
values. The fair value of financial liabilities for disclosure purposes is
estimated by discounting the future contractual cash flows at the
current market interest rate that is available to the Group for similar
financial instruments.
KAISER REEF LIMITED 2024
Notes to the Financial Report
Page | 34
9 Financial risk management (continued)
(h)
Liquidity risk
Prudent liquidity risk management requires maintaining sufficient cash and marketable securities, the availability of funding through an adequate
amount of committed credit facilities and the ability to close out market positions.
The Group manages liquidity risk by continuously monitoring forecast and actual cash flows, and matching maturity profiles of financial assets
and liabilities. The Group undertakes sensitivity analysis to stress test the operational cash flows, which are matched with capital commitments
to assess liquidity requirements. The capital management plan provides the analysis and actions required in detail for the next twelve months
and longer term.
Fixed interest maturing in 2024
Floating
interest rate
1 year or less
$
Over 1 to 2
years
$
Over 2 to 5
years
$
Total
$
Financial assets
Cash and cash equivalents
-
1,112,332
-
-
1,112,332
Receivables
-
652,351
-
-
652,351
Non-current bonds
4.8%
-
-
847,000
847,000
-
1,764,683
-
847,000
2,611,683
Financial liabilities
Trade and other payables
-
3,042,730
-
-
3,042,730
Insurance premium funding
3.8%
218,220
-
-
218,220
Leases liability
6.3%
195,195
186,401
-
381,596
-
3,456,145
186,401
-
3,642,546
Net financial (liabilities)/assets
-
(1,691,462)
(186,401)
847,000
(1,030,863)
Fixed interest maturing in 2023
Financial assets
Cash and cash equivalents
-
3,225,145
-
-
3,225,145
Receivables
-
1,746,094
-
-
1,746,094
Non-current bonds
0.3%
-
-
847,000
847,000
-
4,971,239
-
847,000
5,818,239
Financial liabilities
Trade and other payables
-
4,333,054
-
-
4,333,054
Insurance premium funding
5.1%
193,402
-
-
193,402
Leases liability
6.3%
136,657
213,307
-
349,964
-
4,663,113
213,307
-
4,876,420
Net financial assets
-
308,126
(213,307)
847,000
941,819
KAISER REEF LIMITED 2024
Notes to the Financial Report
Page | 35
10 Net debt
Cash and cash equivalents
Consolidated
Consolidated
2024
$
2023
$
Cash at bank and on hand
1,112,332
3,225,145
1,112,332
3,225,145
Reconciliation of (loss)/profit from ordinary activities after
income tax to net cash flows from operating activities
Consolidated
Consolidated
2024
$
2023
$
(Loss)/profit after tax for the year
(5,534,228)
1,171,617
Depreciation and amortisation
3,723,556
3,737,698
Equity settled share-based
payments
1,140,227
367,198
Change in operating assets and
liabilities
Receivables and prepayments
1,093,743
(306,517)
Inventories
460,295
(204,036)
Other assets
66,308
12,569
Trade creditors and payables
(746,510)
685,607
Provisions and other liabilities
264,366
117,008
Net cash inflows from operating
activities
467,757
5,581,144
Interest bearing liabilities
Consolidated
Consolidated
2024
$
2023
$
Current
Lease liabilities (AASB16)
140,275
136,657
Insurance premium funding
218,220
193,402
Equipment lease
54,920
-
Total current
413,415
330,059
Non-Current
Lease liabilities (AASB16)
73,029
213,307
Equipment lease
113,372
-
Total non-current
186,401
213,307
Total interest bearing liabilities
599,816
543,366
Profit/(loss) before income tax includes the following specific
expenses:
Consolidated
Consolidated
2024
$
2023
$
Finance costs
Interest paid/payable
36,854
24,556
Rehab discounts unwind
33,415
-
70,269
24,556
Cash and cash equivalents includes cash on hand, deposits and cash
at call held at financial institutions, other short term, highly liquid
investments that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value.
Borrowings are initially recognised at fair value, net of transaction
costs incurred. Borrowings are subsequently measured at amortised
cost. Any difference between the proceeds (net of transaction costs)
and the redemption amount is recognised in the consolidated profit
or loss over the period of the borrowings using the effective interest
method. Fees paid on the establishment of loan facilities, which are
not incremental costs relating to the actual draw down of the facility,
are recognised as prepayments and amortised on a straight line basis
over the term of the facility.
Loans to Directors and their related parties
No loans have been made to any Directors or any of their related
parties during this year. There were no further transaction with
Directors including their related parties other than those disclosed
in note 18.
KAISER REEF LIMITED 2024
Notes to the Financial Report
Page | 36
11 Parent entity disclosures
As at, and throughout, the financial year ended 30 June 2024, the
parent company of the Group was Kaiser Reef Limited.
Financial statements
Parent Entity
1 Jul 23 to
30 Jun 24
$
1 Jul 22 to
30 Jun 23
$
Result of the parent entity
Loss after tax for the year
(3,479,746)
(2,258,140)
Total comprehensive loss
for the year
(3,479,746)
(2,258,140)
Financial position of the
parent entity
30 June
2024
30 June
2023
Current assets
532,099
2,615,786
Total assets
23,666,367
22,400,303
Current liabilities
(692,901)
(407,713)
Total liabilities
(963,095)
(628,155)
Total equity of the parent
entity comprising:
Share capital
39,611,166
36,340,521
Share based payment
reserve
2,484,605
1,738,050
Accumulated losses
(19,392,499)
(16,306,423)
Total equity
22,703,272
21,772,148
Transactions with entities in the wholly-owned group
Kaiser Reef Limited is the parent entity in the wholly-owned group
comprising the Company and its wholly-owned subsidiaries. It is the
Group’s policy that transactions are at arm’s length.
Net loans payable to the Company amount to a net payable of
$13,290,051 (2023: $9,936,453).
Balances and transactions between the Company and its
subsidiaries, which are related parties of the Company, have been
eliminated on consolidation.
12 Controlled entities
The consolidated financial statements incorporate the assets,
liabilities and results of the following subsidiaries in accordance with
the accounting policy on consolidation.
All subsidiaries are 100% owned at 30 June 2023 and 30 June 2024.
Country of
Incorporation
Parent entity
Kaiser Reef Limited
Australia
Subsidiaries of Kaiser Reef Limited
Golden River Resources Pty Ltd
Australia
Chase Metals Pty Ltd
Australia
Subsidiaries of Golden River Resources Pty Ltd
Kaiser Mining Pty Ltd
Australia
Subsidiaries of Kaiser Mining Pty Ltd
Kaiser Operations Pty Ltd
Australia
KAISER REEF LIMITED 2024
Notes to the Financial Report
Page | 37
13 Employee benefit expenses and other
provisions
Expenses
Consolidated
Consolidated
2024
$
2023
$
Employee related expenses
Wages and salaries
11,013,212
11,431,617
Superannuation contributions
1,163,479
1,191,487
Equity settled share-based
payments
23,409
18,397
12,200,100
12,641,501
Key management personnel
Consolidated
Consolidated
2024
$
2023
$
Short term employee benefits
901,403
787,187
Post-employment benefits
89,941
76,701
Leave
79,705
39,938
Share-based payments
845,539
17,237
1,916,588
921,063
Other provisions
Consolidated
Consolidated
2024
$
2023
$
Current
Employee benefits – annual leave
809,755
551,367
Employee benefits – long service
leave
110,001
84,328
919,756
635,695
Non-current
Employee benefits–- long service
leave
292,883
312,578
292,883
312,578
Wages and salaries, and annual leave
Liabilities for wages and salaries, including non-monetary benefits
and annual leave expected to be paid within 12 months of the
reporting date, are recognised in other payables in respect of
employees’ services up to the reporting date and are measured at
the amounts expected to be paid, including expected on-costs, when
the liabilities are settled.
Superannuation contribution expense
Contributions to defined contribution funds are recognised as an
expense as they are due and become payable. The Group has no
obligations in respect of defined benefit funds.
Equity settled share-based payments
Performance rights issued to employees are recognised as an
expense by reference to the fair value of the equity instruments at
the date at which they are granted. Refer to Note 14 for further
information.
Executive incentives
Senior executives may be eligible for short term incentive payments
(“STI”) subject to achievement of key performance indicators,
approved by the Board of Directors. The Group recognises a liability
and an expense for STIs in the reporting period during which the
service is provided by the employee. Refer to note 14.
Disclosures relating to Directors and key management personnel are
included within the Remuneration Report, with the exception of the
table opposite.
Employee related and other provisions are recognised when the
Group has a present legal or constructive obligation as a result of
past events, it is more likely than not that an outflow of resources
will be required to settle the obligation, and the amount has been
reliably estimated.
Where there are a number of similar obligations, the likelihood that
an outflow will be required in settlement is determined by
considering the class of obligations as a whole. A provision is
recognised even if the likelihood of an outflow with respect to any
one item included in the same class of obligations may be small.
Long service leave
The liability for long service leave is recognised in the provision for
employee benefits and measured as the present value of expected
future payments to be made, plus expected on-costs, in respect of
services provided by employees up to the reporting date.
Consideration is given to the expected future wage and salary levels,
experience of employee departures and periods of service. Expected
future payments are discounted with reference to market yields on
corporate bonds with terms to maturity and currency that match, as
closely as possible, the estimated future cash outflows.
KAISER REEF LIMITED 2024
Notes to the Financial Report
Page | 38
14 Share-based payments reserve
Details
Consolidated
2024
$
Consolidated
2023
$
Opening balance
1,738,050
1,447,649
Value of options and rights granted/(vested)/(expired) during the year
746,555
290,401
Closing balance
2,484,605
1,738,050
Performance rights
The Group provides benefits to employees of the Group in the form of share-based payments, whereby employees render services in exchange
for shares or rights over shares (equity-settled transactions). The cost of these equity-settled transactions with employees is measured by
reference to the fair value of the equity instruments at the date at which they are granted. Accounting standards preclude the reversal through
the consolidated profit or loss of amounts which have been booked in the share-based payments reserve for performance rights, and which
satisfy service conditions but do not vest due to market conditions.
Set out below are summaries of rights granted to employees in the current year under the Kaiser Reef Limited Performance Rights Plan to be
approved by shareholders:
Consolidated 2024
Grant date
Expiry date
Fair value
Balance at
start of the
year
(Number)
Granted
during the
year
(Number)
Vested during
the year
(Number)
Expired
during the
year
(Number)
Balance at
end of the
year
(Number)
Exercisable
at end of the
year
(Number)
12 Dec 2022
12 Dec 2023
$0.16
320,000
-
-
(320,000)
-
-
12 Dec 2022
12 Dec 2024
$0.16
480,000
-
-
-
480,000
-
12 Dec 2022
12 Dec 2023
$0.16
140,000
-
-
(140,000)
-
-
12 Dec 2022
12 Dec 2024
$0.16
260,000
-
-
-
260,000
-
01 Feb 2022
01 Feb 2024
$0.205
80,000
-
-
(80,000)
-
-
01 Feb 2022
01 Feb 2024
$0.079
80,000
-
-
(80,000)
-
-
17 Nov 2021
10 Aug 2023(1)
$0.079&$0.21
200,000
-
-
(200,000)
-
-
08 Feb 2021
08 Sep 2024
$0.29&$0.42
200,000
-
-
-
200,000
-
18 Dec 2023
18 Dec 2025(2)
$0.165
-
2,000,000
-
-
2,000,000
-
Total
1,760,000
2,000,000
-
(820,000)
2,940,000
-
Consolidated 2023
Grant date
Expiry date
Fair value
Balance at
start of the
year
(Number)
Granted
during the
year
(Number)
Vested during
the year
(Number)
Expired
during the
year
(Number)
Balance at
end of the
year
(Number)
Exercisable
at end of
the year
(Number)
12 Dec 2022
12 Dec 2023
$0.16
-
320,000
-
-
320,000
-
12 Dec 2022
12 Dec 2024
$0.16
-
480,000
-
-
480,000
-
12 Dec 2022
12 Dec 2023
$0.16
-
140,000
-
-
140,000
-
12 Dec 2022
12 Dec 2024
$0.16
-
260,000
-
-
260,000
-
07 Oct 2021
07 Oct 2022
$0.235
150,000
-
-
(150,000)
-
-
07 Oct 2021
07 Oct 2023
$0.235
100,000
-
-
(100,000)
-
-
07 Oct 2021
07 Oct 2023
$0.079
100,000
-
-
(100,000)
-
-
01 Feb 2022
01 Feb 2022
$0.205
120,000
-
-
(120,000)
-
-
01 Feb 2022
01 Feb 2024
$0.205
80,000
-
-
-
80,000
-
01 Feb 2022
01 Feb 2024
$0.079
80,000
-
-
-
80,000
-
08 Feb 2021
01 Feb 2023
$0.42
100,000
-
-
(100,000)
-
-
17 Nov 2021(1) 10 Aug 2023
$0.079&$0.21
200,000
-
-
-
200,000
-
08 Feb 2021
08 Sep 2024
$0.29&$0.42
200,000
-
-
-
200,000
-
Total
1,130,000
1,200,000
-
(570,000)
1,760,000
-
(1) Mr Howe’s rights were approved by shareholders at the AGM on the 17 November 2021.
(2) Mr Valiukas’ rights were approved by shareholders at the EGM post balance date on the 10 Jul 2024.
KAISER REEF LIMITED 2024
Notes to the Financial Report
Page | 39
14 Share-based payments reserve (continued)
Movement in unlisted options on issue
2024
2023
Weighted average
exercise price per
option (cents)
Number of
options
Weighted average
exercise price per
option (cents)
Number of
options
Outstanding at the beginning of the year
35.15
18,494,800
34.59
20,744,800
Issued during the year
25.00
18,500,000
30.00
3,750,000
Expired or lapsed during the year
43.38
(6,344,800)
30.00
(6,000,000)
Exercised during the year
-
-
Outstanding at the end of the year
27.32
30,650,000
35.15
18,494,800
Exercisable at the end of the respective year
27.32
30,650,000
35.15
18,494,800
For the 18,500,000 options granted during the current financial year, the valuation model inputs used to determine the fair value at the
grant date, are as follows:
Options Volume
Grant date
Expiry date
Share price at
grant date $
Exercise price $
Expected
Volatility
Risk-free rate
Fair value per
option $
4,500,000
18 Dec 2023
30 Nov 2027
0.165
0.25
65%
3.8%
0.068
10,000,000
22 Dec 2023
21 Nov 2026
0.17
0.25
65%
4.4%
0.056
2,000,000
18 Dec 2023
17 Dec 2026
0.165
0.25
65%
4.4%
0.056
2,000,000
22 May 2024
12 May 2028
0.165
0.25
73%
4.4
0.065
The weighted average remaining contractual life of performance
rights and options outstanding at the end of the year was 2.16 years
(2023: 1.58 year).
Equity-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. Share-based compensation with non
market conditions are value at grant date share price in
consideration of discount and dividend payments.
The cost of equity-settled transactions are measured at fair value on
grant date. Fair value is 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.
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.
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.
Accounting judgements and estimates
Share-based payment transactions
The consolidated entity measures the cost of equity-settled
transactions with employees by reference to the fair value of the
equity instruments at the date at which they are granted. The fair
value is determined by using either a Black-Scholes model or
Binomial Pricing 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.
Where performance rights are subject to vesting conditions,
Management has formed judgments around the likelihood of vesting
conditions being met.
KAISER REEF LIMITED 2024
Notes to the Financial Report
Page | 40
15 Contributed equity
Details
Number of
shares
$
Opening balance 30 June 2023
147,697,682
36,340,521
Share placement
23,166,667
3,475,000
Share issue fees
-
(240,264)
Shares issued to employees as
remuneration for services performed
179,545
35,909
Closing balance 30 June 2024
171,043,894
39,611,166
Contributed equity
Ordinary shares are classified as equity. Incremental costs directly
attributable to the issue of ordinary shares and performance rights
are recognised as a deduction from equity, net of any tax effects.
On 18 December 2023, the Group announced a strategic investor
share placement raise approximately $3.5 million (before costs) with
Taurus Capital Group Pty Ltd. The new shares were issued under the
placement at a price of $0.15 per share, representing a 12% and 14%
discount to the volume weighted average share price over the prior
5 and 10 trading days respectively, prior to the Company’s trading
halt. On 27 December 2023, the Group issued 23,166,667 shares for
the placement.
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the
proceeds on winding up of the Company in proportion to the
number of and amounts paid on the shares held. On a show of hands
every holder of ordinary shares present at a meeting in person or by
proxy, is entitled to one vote, and upon a poll each share is entitled
to one vote.
16 Remuneration of auditors
During the year the following fees were paid or payable for services
provided by BDO Audit Pty Ltd, the auditor of the parent entity, and
its related practices:
Consolidated
Consolidated
2024
$
2023
$
BDO Audit Pty Ltd – Audit and
Review of the Consolidated
Financial Report
166,501
109,763
Non-audit services
BDO Corporate Tax (WA)
Pty
Ltd
–
Taxation
consulting services
15,035
15,450
Total remuneration for audit
and non-assurance related
services
181,536
125,213
17 Events occurring after the balance sheet date
The Directors are not aware of any matter or circumstance that has
arisen since the end of the financial year that, in their opinion, has
significantly affected or may significantly affect in future years the
Company’s or the Group’s operations, the results of those
operations or the state of affairs, except as described in this note.
On 22 May 2024, the Group announced the terms of Ragnar Metals
Limited strategic investment of:
$5,010,000 placement in Kaiser at 15 cents per share (no discount)
consisting of:
•
tranche 1 of $930,000 (6,200,000 shares and 3,100,000
unlisted options); and
•
tranche 2 of $4,080,000 (27,200,000 shares and 13,600,000
unlisted options) to be issued subject to shareholder
approval at a general meeting.
1 option for every 2 shares, with a $0.22 exercise price and expiry of
31 July 2028.
Ragnar will receive a 1.5% net smelter return on gold produced from
the A1 Gold Mine for a period of 5 years commencing from the 1st of
July 2025.
Shareholders approved a two tranche placement at the Company’s
general meeting of shareholders held on 10 July 2024 with the funds
received on 16 July 2024. The investment representing a 16%
holding of Kaiser Reef Limited.
18 Related party transactions
Transaction between related parties are on commercial terms and
conditions, no more favourable than those available to otherwise
stated.
The below information stated covers the full financial year ended 30
June 2024.
Brightstar Resources Limited – related party to and J Downes shared
office facility arrangement during the year.
Total for the current year: $30,407 was charged by Brightstar
Resources Limited with an outstanding amount of $2,983 (2023: nil)
payable at 30 June 2024.
Refer to Note 13 for details of KMP remuneration.
Refer to Note 14 for details of share based payments granted in the
current year to KMP.
19 Contingencies
The Directors are not aware of any contingencies for the year ended
30 June 2024.
KAISER REEF LIMITED 2024
Notes to the Financial Report
Page | 41
20 Basis of preparation
Basis of measurement
The consolidated financial statements have been prepared on the
historical cost basis, except for the following material items:
• Share based payment arrangements are measured at fair value.
Principles of consolidation – Subsidiaries
The consolidated financial statements incorporate the assets and
liabilities of all subsidiaries of Kaiser Reef Limited as at 30 June 2024
and the results for the year ended on that date (comparatives: 30
June 2023).
Subsidiaries are all those entities (including special purpose entities)
over which the Group has the power to govern the financial and
operating policies, and as a result has an exposure or rights to
variable returns, generally accompanying a shareholding of more
than one-half of the voting rights. The existence and effect of
potential voting rights that are currently exercisable or convertible
are considered when assessing whether the Group controls another
entity. Subsidiaries are consolidated from the date on which control
commences until the date control ceases.
Intercompany transactions, balances and unrealised gains on
transactions between Group companies 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 Group.
Critical accounting judgement and estimates
The preparation of consolidated financial statements in conformity
with AASB and IFRS requires management to make judgements,
estimates and assumptions that affect the application of accounting
policies and the reported amount of assets, liabilities, income and
expenses. Actual results may differ from these estimates. The
estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the period
in which the estimate is revised and in any future periods affected.
Going Concern
As disclosed in the consolidated financial statements, the Group
recorded a net loss after tax of $5,534,228 (2023: profit after tax
$1,171,617) and generated net cash outflows from operating and
investing activities of $5,860,186 (2023: $3,804,164) for the year
ended 30 June 2024.
These above factors indicate a material uncertainty that may cast
significant doubt as to whether the Group will continue as a going
concern and therefore whether it will realise its assets and
extinguish its liabilities in the normal course of business and at the
amounts stated in the financial report.
The Directors believe that there are reasonable grounds to believe
that the Group will be able to continue as a going concern, after
consideration of the following factors:
• On 25 June 2024, the Group signed a binding agreement to
dispose of its New South Wales Exploration Tenement assets to
focus on its core operations and reduce its non-essential
exploration expenditure. $1.6M is expected to be received in
cash and script for this transaction (Refer to note 6).
• If necessary, new capital raisings will be initiated. The company
has been successful with multiple past capital raisings and with
most recent in December 2023 with $3.5M.
• Post balance date (10 July 2024) shareholders approved a
strategic investment of $5M from Ragnar Metals Limited into
Kaiser Reef Limited.
Accordingly, the consolidated financial statements for the year
ended 30 June 2024 have been prepared on a going concern basis
as, in the opinion of the Directors, the Group will be in a position to
continue to meet its operating costs and exploration expenditure
commitments and pay its debts as and when they fall due for at least
twelve months from the date of this report.
Should the Group be unable to continue as a going concern, it may
be required to realise its assets and extinguish its liabilities other
than in the ordinary course of the business, and at amounts that
differ from those stated in the consolidated financial statements.
The consolidated financial statements do not include any
adjustments relating to the recoverability and classification of
recorded asset amounts or to the amounts and classification of
liabilities that might be necessarily incurred should the Group not
continue as a going concern.
21 Accounting standards
New Standards adopted
The accounting policies applied by the Group in this 30 June 2024
consolidated financial report are consistent with Australian
Accounting Standards. All new and amended Australian Accounting
Standards and interpretations mandatory as at 1 July 2023 to the
group have been adopted and have not had a material impact upon
recognition.
The consolidated financial statements incorporate the assets and
liabilities of all subsidiaries of Kaiser Reef Limited as at 30 June 2024
(comparatives: 30 June 2023).
New Accounting Standards and Interpretations not yet mandatory
or early adopted
Australian Accounting Standards and Interpretations that have
recently been issued or amended but are not yet mandatory, have
not been early adopted by the consolidated entity for the annual
reporting period ended 30 June 2024. The consolidated entity has
not yet assessed the impact of these new or amended Accounting
Standards and Interpretations.
Critical accounting judgement and estimates
The preparation of consolidated financial statements requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expenses. Actual
results may differ from these estimates.
KAISER REEF LIMITED 2024
Financial Report
Page | 42
Consolidated entity disclosure statement
for the year ended 30 June 2024
Entity name
Entity type
Country of
incorporation
Ownership
interest %
Tax residency
Kaiser Reef Limited
Body Corporation
Australia
100%
Australia*
Golden River Resources Pty Ltd
Body Corporation
Australia
100%
Australia*
Chase Metals Pty Ltd
Body Corporation
Australia
100%
Australia*
Kaiser Mining Pty Ltd
Body Corporation
Australia
100%
Australia*
Kaiser Operations Pty Ltd
Body Corporation
Australia
100%
Australia*
*Kaiser Reef Limited (the head entity/ultimate parent) and its wholly owned Australian subsidiaries are in an income tax consolidated
group under the Australian tax consolidated regime
Basis of Preparation
This Consolidated Entity Disclosure Statement (CEDS) has been prepared in accordance with the Corporations Act 2001. It includes certain
information for each entity that was part of the consolidated entity at the end of the financial year.
KAISER REEF LIMITED 2024
Financial Report
Page | 43
Directors’ declaration
1
In the opinion of the directors of Kaiser Reef Limited (the Company):
(a)
the consolidated financial statements and notes that are contained in pages 19 to 42 and the remuneration report in the
Directors’ report, set out on pages 11 to 15, are in accordance with the Corporations Act 2001, including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its performance for the financial
year ended on that date; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(iii)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due
and payable.
2
The directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the Managing Director and
chief financial officer for the financial year ended 30 June 2024.
3
The directors draw attention to page 16 of the consolidated financial statements, which includes a statement of compliance with
International Financial Reporting Standards.
4
The information disclosed in the attached consolidated entity disclosure statement is true and correct.
Signed in accordance with a resolution of the Directors:
Jonathan Downes
Managing Director
Perth
25 September 2024
KAISER REEF LIMITED 2024
Financial Report
Page | 44
Auditor opinion
KAISER REEF LIMITED 2024
Financial Report
Page | 45
KAISER REEF LIMITED 2024
Financial Report
Page | 46
KAISER REEF LIMITED 2024
Financial Report
Page | 47
Corporate Directory
BOARD OF DIRECTORS
S Formica
Non-Executive Chairman
J Downes
Managing Director
S Howe
Executive Director
D Valiukas Executive Director
SHARE REGISTRY
Automic Registry Pty Ltd
Level 5, 191 St Georges Terraces
Perth WA 6000
JOINT COMPANY SECRETARIES
A Tabakovic
S Brockhurst
AUDITOR
BDO Audit Pty Ltd
Tower 4, Level 18,
727 Collins Street
Melbourne VIC 3008, AUSTRALIA
PRINCIPAL PLACE OF BUSINESS
Level 2, 36 Rowland Street
Subiaco WA 6008
Telephone: +61 8 9481 0389
Email: admin@kaiserreef.com.au
Website: www.kaiserreef.com.au
REGISTERED OFFICE
Level 8, 216 St Georges Terrace
Perth WA 6000
STOCK EXCHANGE LISTING
Shares in Kaiser Reef Limited are quoted on the Australian
Securities Exchange
Ticker Symbol: KAU
KAISER REEF LIMITED 2024
Financial Report
Page | 48
Additional information for public listed companies
Schedule of Tenement
Project
Tenement Number
Location of Tenement
Status
Beneficial
Interest
Stuart Town
EL8491
New South Wales
Granted
100%
EL8592
New South Wales
Granted
100%
EL9203
New South Wales
Granted
100%
EL9198
New South Wales
Granted
100%
EL9199
New South Wales
Granted
100%
Macquarie North
EL9623
New South Wales
Granted
100%
EL9623
New South Wales
Granted
100%
A1
MIN5294
Victoria
Granted
100%
Maldon
MIN5146
Victoria
Granted
100%
EL8215
Victoria
Pending approval
100%
MIN5528
Victoria
Granted
100%
EL7029
Victoria
Granted
100%
ASX Share Information
The following additional information is required by the Australian Securities Exchange Ltd in respect of listed public companies only. The
information is current as at 20 September 2024.
1.
Shareholding
a.
Distribution of Shareholders
(i)
Ordinary share capital
- 204,443,894 fully paid shares held by 1,114 shareholders. All issued ordinary share carry one vote per share and carry the rights to
dividends.
Class of Equity Security
Category (size of holding)
Number of Holders
Fully Paid Ordinary Shares
1 - 1,000
38
6,672
1,001 – 5,000
195
582,423
5,001 – 10,000
170
1,345,108
10,001 – 100,000
457
18,533,270
100,001 – and over
254
183,976,421
1,114
204,443,894
b.
The number of shareholdings held in less than marketable parcels is 163.
c.
The Company had the following substantial shareholders at the date of this report.
Fully Paid Ordinary Shares
Holder
Number
%
Ragnar Metals Limited
33,400,000
16.34
Timothy Neesham
11,932,000
5.84
KAISER REEF LIMITED 2024
Financial Report
Page | 49
d.
Voting Rights
The voting rights attached to each class of equity security are as follows:
Ordinary shares
–
Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting or by proxy has
one vote on a show of hands.
e.
20 Largest holders of quoted equity securities (fully paid ordinary shares)
Name
Number Held
Percentage %
1.
RAGNAR METALS LIMITED
33,400,000
16.34
2.
TIMOTHY NEESHAM GROUP HOLDINGS
11,932,000
5.84
3.
JACK YETIV
10,000,000
4.89
4.
HUNT PROSPERITY PTY LTD
9,000,000
4.40
5.
DC & PC HOLDINGS PTY LTD
5,550,000
2.71
6.
STEVEN FORMICA GROUP HOLDINGS
5,306,250
2.60
7.
BNP PARIBAS NOMINEES PTY LTD
3,651,819
1.79
8.
PELOTON CAPITAL PTY LTD
3,586,993
1.75
9.
KIANDRA NOMINEES PTY LTD
3,200,000
1.57
10.
NEWTON6 PTY LIMITED
2,700,000
1.32
11.
VALIANT EQUITY MANAGEMENT PTY LTD
2,405,000
1.18
12.
THE SUN W INVESTMENT PTY LTD
2,266,667
1.11
13.
CITICORP NOMINEES PTY LIMITED
2,243,215
1.10
14.
MAJI MAZURI PTY LTD & MAWINGO PTY LTD
2,219,256
1.09
15.
BROOKAVA PTY LTD
2,055,740
1.01
16.
BROWN BRICKS PTY LTD
1,937,500
0.95
17.
MRS ELIZABETH ANNE MACRAE
1,903,750
0.93
18.
BFB HOLDINGS PTY LTD
1,687,500
0.83
19.
NEWMEK INVESTMENTS PTY LTD
1,600,380
0.78
20.
ALL CRUSH (WA) PTY LTD
1,483,020
0.73
Total
108,129,090
52.89
Total issued capital - selected security class(es)
204,443,894
100.00
2.
Stock Exchange Listing
Quotation has been granted for all the ordinary shares of the company on the Australian Securities Exchange Limited.
3.
Restricted Securities
The Company does not have any restricted securities on issue as at the date of this report.
4.
Unquoted Securities
The Company has the following unquoted securities on issue as at the date of this report:
- 8,000,000 options exercisable at $0.30 on or before 30 September 2024
- 200,000 options exercisable at $0.52 on or before 16 December 2024
- 200,000 options exercisable at $0.60 on or before 16 December 2024
- 750,000 options exercisable at $0.30 on or before 5 September 2025
- 2,000,000 options exercisable at $0.25 on or before 18 December 2026
- 10,000,000 options exercisable at $0.25 on or before 22 December 2026
- 3,000,000 options exercisable at $0.30 on or before 30 November 2027
- 4,500,000 options exercisable at $0.25 on or before 30 November 2027
- 2,000,000 options exercisable at $0.25 on or before 12 July 2028
- 16,700,000 options exercisable at $0.22 on or before 31 July 2028