KalNorth Gold Mines Limited and Controlled Entities
ACN 100 405 954
Annual Report
For the year ended 30 June 2024
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
CONTENTS
Corporate Directory
1
Directors’ Report
2
Auditor’s Independence Declaration
9
Consolidated Statement of Profit or Loss and Other Comprehensive Income
10
Consolidated Statement of Financial Position
11
Consolidated Statement of Changes in Equity
12
Consolidated Statement of Cash Flows
Consolidated Entity Disclosure Statement
13
14
Notes to the Consolidated Financial Statements
15
Directors’ Declaration
29
Independent Auditor’s Report
30
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
- 1 -
CORPORATE DIRECTORY
Directors
Jiajun Hu (Executive Chairman)
Yuanguang Yang (Non-Executive Director)
Xiaojing Wang (Non-Executive Director)
Company
Secretary
Jiajun Hu
Registered
Office and
Principal Place
of Business
Level 3, Suite 301
401-403 Sussex Street
Sydney, NSW 2000
Share Registry
Automic Group Pty Ltd
Deutche Bank Tower
Level 5 126 Phillip St,
Sydney NSW 2000
Auditor
BDO Audit Pty Ltd
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
Company
Website
www.kalnorthgoldmines.com
KalNorth Gold Mines Limited delisted from the Australian Securities Exchange (ASX) in August 2022
but remains a Disclosing Entity as defined by section 111AC of the Corporations Act 2001. The
Company’s securities do not trade on any stock exchange at present. As a Disclosing Entity, it is
subject to a continuous disclosure regime under section 675 of the Corporations Act.
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
- 2 -
The Directors of KalNorth Gold Mines Limited (“the Company”) present their financial report on the consolidated
entity, being the company and its controlled entities, for the financial year ended 30 June 2024. As at the date of this
report, the Company is a Disclosing Entity (refer to the preceding page for details) but its securities are not listed for
trading on any stock exchange.
Directors
The names of directors in office at any time during or since the end of the financial year are listed hereunder. Directors
have been in office from the start of the financial year to the date of this report unless otherwise stated.
Jiajun Hu
Executive Chairman
Yuanguang Yang
Non-executive Director
Xiaojing Wang
Non-executive Director
Information on Directors
JIAJUN HU
Executive Chairman & Company Secretary
Mr. Jiajun Hu acts as Regional Business Executive of Cross-Strait Common Development Fund Co., Ltd (hereinafter
referred to as “Cross-Strait”). Cross-Strait, with its global headquarters in Hong Kong, is one of the largest shareholders
in the Company.
He is responsible for supervision and administration of Cross-Strait’s investment projects in Oceania and reports
directly to the managing director of Cross-Strait and has gained material experience in international investment,
financial accounting, commercial contract negotiation and contract dispute negotiation through corporate
transactions in North America, Africa, Asia and Oceania.
He has a Bachelor’s Degree in Commerce in 2008 from the Australian National University majoring in finance and
accounting. Mr. Hu has specialised knowledge of the financial transactions market and investment capital market and
is familiar with Chinese business and capital market operation. Mr. Hu is fluent in both English and Chinese.
Mr Hu has held no other directorships of other public companies within the last three years.
Interest in shares and options: Nil
YUANGUANG YANG
Non-Executive Director
Mr. Yang is a non-executive director of a listed company – China Greenland Broad Greenstate Group Company Limited
in Hong Kong. He is also a Hong Kong CPA (practising) and currently operates a CPA firm in Hong Kong with business
focus in markets of Hong Kong, Mainland China, Australia and New Zealand. Mr. Yang is also a Chartered Accountant
in Australia and New Zealand.
He has over 20 years’ experience in audit and assurance, global tax planning, corporate advisory, family business and
M&A business.
Interest in shares and options: 2,375,300 shares
XIAOJING WANG (REBECCA)
Non-Executive Director
Mrs Wang holds a Bachelor of Applied Finance, from Macquarie University, NSW and is currently the Finance Manager
for a Sydney based private company.
Ms Wang has held no other directorships of other public companies within the last three years.
Interest in shares and options: Nil
Principal Activities
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
- 3 -
The consolidated entity’s principal activity during the year consisted of evaluation and exploration of new project
investment opportunities. The consolidated entity will utilise its skills and expertise to seek for more valuable
investment opportunities that can add value to the organisation.
Operating Results and Financial Performance
The operating profit of the consolidated entity for the year ended 30 June 2024 was $680,542($1,090,213 loss in
2023).
As at 30 June 2024 the Company had $11,217,619 ($11,344,492 in 2023) in cash reserves and term deposits at bank
and aggregate liabilities of $143,877 ($97,971 in 2023).
At 30 June 2024, the consolidated entity had net assets of $14,881,149 ($14,249,718 in 2023).
Material Changes in the State of Affairs
KalNorth Gold Mines Limited delisted from the Australian Securities Exchange (ASX) in August 2022 but remains a
Disclosing Entity as defined by section 111AC of the Corporations Act 2001.
On 16 June 2023, Beijing SinoHytec announced the 2022 Profit Distribution and Capital Reserve Capitalization Plan.
The company will issue 4 new shares for every 10 existing shares to shareholders by way of capitalization of capital
reserve. The expected timetable for the despatch of share certificate for the Capitalization H shares and
commencement of dealing in the Capitalization H shares was July 2023. On 7 July 2023, KGM’s shareholding
increased from 342,800 to 479,920 with share price of HKD 39.05 per share.
Loan to SCCC Petroleum Corporation
KGM entered into loan agreements to provide loans of USD100,000 and CAD450,000 available for drawdown to
SCCC Petroleum at the following annual interest rate.
3 July 2023 USD100,000 @12% annual interest rate
9 January 2024 CAD 100,000 @10% annual interest rate
25 March 2024 CAD 350,000 @12% annual interest rate
Note that one of the Directors – Xiaojing Wang is a family member of one of the shareholders of SCCC. Xiaojing
Wang is not a shareholder of SCCC and has no interest or financial benefit from SCCC.
These loans are secured over a floating charge of assets of SCCC including a specific cash deposit lodged with the
Canadian Government of $1,514,640.00 CAD.
Further, the directors expect the loan which has been drawn down to be repaid in full within one year of the date of
this financial report.
Dividends Paid or Recommended
The Directors do not recommend the payment of a dividend, and no dividends have been paid or declared since the
end of the last financial year.
Likely Developments and Expected Results
As noted earlier in this report, the consolidated entity plans to use its exploration expertise and long history and
experience to explore new energy projects, sch as solar power generation and energy storage.
Environmental regulation
The consolidated entity was subject to environmental regulation in respect of its exploration activities, until the
disposal of all its projects during the last financial year.
The directors of the consolidated entity are not aware of any breach of environmental legislation for the year under
review.
Meetings of Directors
During the financial year, six meetings of Directors were held. Attendances by each Director during the year were as
follows:
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
- 4 -
Directors’ Meetings
Number of meetings
eligible to attend
Number attended
Jiajun Hu
6
6
Yuanguang Yang
6
6
Xiaojing Wang
6
6
No Audit or Remuneration Committee meetings were held in the year, with all matters dealt with by the Board as a
whole. In addition, matters of Board business have been resolved by circular resolutions of Directors, which are a
record of decisions made at a number of informal meetings of the Directors held to control, implement and monitor
the Company’s activities throughout the period.
Options
At the date of this report, there were no unissued ordinary shares of KalNorth Gold Mines Limited under option (2023:
Nil).
During the year ended 30 June 2024 and to the date of this report, no shares were issued on the exercise of options
(2023: nil).
Risk Management
The Board is responsible for ensuring that risks and opportunities are identified in a timely manner and that activities
are aligned with the risks and opportunities identified by the Board.
The consolidated entity believes that it is crucial for all Board members to be a part of this process and, as such, the
Board has not established a separate risk management committee but considers these matters at Board meetings.
The Board has a number of mechanisms in place to ensure that management’s objectives and activities are aligned
with the risks identified by the Board. These include Board approval of a strategic plan which encompasses strategy
statements designed to meet stakeholders needs and manage business risk, and implementation of Board approved
operating plans and budgets and the monitoring thereof.
Key Management Personnel Remuneration
This section outlines the remuneration arrangements in place for Directors and executives of the consolidated entity.
The following were Key Management Personnel of the Company during or since the end of the financial year:
Jiajun Hu
Executive Chairman
Yuanguang Yang Non-Executive Director
Xiaojing Wang
Non-Executive Director
Remuneration Policy
The remuneration policy of KalNorth Gold Mines Limited has been designed to align Director and executive objectives
with shareholder and business objectives by providing a fixed remuneration component and offering specific long-
term incentives based on key performance areas affecting the consolidated entity’s ability to attract and retain the
best Directors and executives to run and manage the consolidated entity.
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
- 5 -
Key Management Personal Remuneration(cont’d)
The Board’s policy for determining the nature and amount of remuneration for Board members and senior executives
of the consolidated entity is as follows:
The remuneration policy setting out the terms and conditions for executive directors and other senior executives was
developed by the Board. All executives receive a base salary (which is based on factors such as the length of service
and experience) and superannuation. The Board reviews executive packages annually by reference to the
consolidated entity’s performance, executive performance, and comparable information from industry sectors and
other listed companies in similar industries.
The Board may exercise discretion in relation to approving incentives, bonuses, and options. The policy is designed to
attract the highest calibre of executives and reward them for performance that results in long-term growth in
shareholder wealth.
All remuneration paid to Directors and executives is valued at the cost to the consolidated entity and expensed.
Executives are also entitled to participate in the employee share and option arrangements. Shares given to Directors
and executives are valued as the difference between the market price of those shares and the amount paid by the
Director or executive. Options are valued using the Black-Scholes methodology.
Performance-Based Remuneration
The consolidated entity currently has no compulsory performance-based remuneration component built into Director
and executive remuneration packages. However, performance-based bonuses may be awarded from time to time at
the discretion of the Board, and this will be dependent on individual performance linked to the consolidated entity’s
strategic objectives for that period.
In the current year, no bonuses were paid or declared.
Non-Executive Director Remuneration
The Board seeks to set aggregate remuneration at a level that provides the Company with the ability to attract and
retain Directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
The Board considers the fees paid to non-executive Directors of comparable companies when undertaking the annual
review process. Independent advice is obtained when considered necessary to confirm that remuneration is in line
with market practice. Each Director may receive a fee for being a Director of the Company.
Non-executive Directors may also receive options or performance rights (subject to shareholder approval) as it is
sufficient reward whilst considered an appropriate method of providing maintaining cash reserves.
Relationship between Remuneration Policy and Consolidated Entity Performance
The remuneration policy has been tailored to increase goal congruence between shareholders and Directors and
executives. From time to time, this is facilitated through the issue of options to the majority of directors and
executives to encourage the alignment of personal and shareholder interests. The consolidated entity believes this
policy will be effective in increasing shareholder wealth.
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
- 6 -
Key Management Personnel Remuneration (cont’d)
Key management personnel service agreements
Details of the key conditions of service agreements for key management personnel in place at the date of this report
are as follows:
Commencement
Date
Notice Period Base
Salary
Base Salary
Termination
Payments
Provided
Jiajun Hu – Executive
Chairman
11/01/2017
One month
$70,000
-
There are no other agreements with key management personnel.
Remuneration Details
(a)
Key management personnel compensation:
1 The amounts disclosed in this column represent the increase in the associated provisions.
Share-based payment compensation
To ensure that the consolidated entity has appropriate mechanisms to continue to attract and retain the services of
Directors and Executives of a high calibre, the consolidated entity has a policy of issuing options that are exercisable
in the future at a certain fixed price.
2024
Short-term benefits
Post-employment benefits
Name
Salary and fees
$
Annual Leave
Entitlements1
$
Superannuation
$
Total
$
Directors
Jiajun Hu
70,000
5,923
7,700
83,623
Yuanguang Yang
30,000
-
-
30,000
Xiaojing Wang
30,000
-
3,300
33,300
Total
130,000
5,923
11,000
146,923
2023
Short-term benefits
Post-employment benefits
Name
Salary and fees
$
Annual Leave
Entitlements1
$
Superannuation
$
Total
$
Directors
Jiajun Hu
70,000
5,923
7,350
83,273
Yuanguang Yang
30,000
-
-
30,000
Xiaojing Wang
30,000
-
3,150
33,150
Total
130,000
5,923
10,500
146,423
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
- 7 -
Key Management Personnel Remuneration (cont’d)
No options were granted to Directors or key management personnel during the year ended 30 June 2024(2023: nil).
Key management personnel shareholdings
The number of ordinary shares in KalNorth Gold Mines Limited held by each key management personnel of the
consolidated entity during the financial year is as follows:
2024
Balance
1 July 2023
Granted as
Remuneration
Net Change
Other
Balance
30 June 2024
Directors
Jiajun Hu
-
-
-
-
Yuanguang Yang
2,375,300
-
-
2,375,300
Xiaojing Wang
-
-
-
-
Total
2,375,300
-
-
2,375,300
2023
Balance
1 July 2022
Granted
as
Remuneration
Net Change
Other
Balance
30 June 2023
Directors
Jiajun Hu
-
-
-
-
Yuanguang Yang
2,375,300
-
-
2,375,300
Xiaojing Wang
-
-
-
-
Total
2,375,300
-
-
2,375,300
Key management personnel option holdings
No options were granted or held by key management personnel in the current or prior year.
Loans to key management personnel and their related parties
There were no loans outstanding at the reporting date (30 June 2023: Nil) to key management personnel and their
related parties.
Other transactions with KMPs
There were no other transactions with KMPs for the year ended 30 June 2024.
Use of Remuneration Consultants
The Company did not use any remuneration consultants during the year.
The earnings of the consolidated entity for the five years to 30 June 2024 are summarised below:
2024
2023
2022
2021
2020
$
$
$
$
Sales revenue
-
-
-
-
-
EBITDA
680,542
(1,090,213)
(310,171)
12,410,885
(858,670)
EBIT
680,542
(1,090,213)
(310,171)
12,410,885
(859,137)
Profit / (Loss) after income
tax
631,431
(1,090,213)
(310,171)
12,208,461
(900,355)
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
- 8 -
Key Management Personnel Remuneration (cont’d)
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
2024
2023
2022
2021
Share price at financial year end ($)
-
-
0.0131
0.0131
Total dividends declared (cents per
share)
-
-
-
-
Basic earnings / (loss) per share (cents
per share)
0.07 (0.12)
(0.03)
1.38
1Shares last traded on ASX in August 2020
Indemnification and Insurance of Officers and Auditors
The Company’s Constitution requires it to indemnify Directors and officers of any entity within the consolidated entity
against liabilities incurred to third parties and against costs and expenses incurred in defending civil or criminal
proceedings, except in certain circumstances. An indemnity is also provided to the Company’s auditors under the
terms of their engagement. Directors and officers of the consolidated entity have been insured against all liabilities
and expenses arising as a result of work performed in their respective capacities, to the extent permitted by law. The
insurance premium relates to:
costs and expenses incurred by the relevant officers in defending proceedings, whether civil or criminal and
whatever the outcome.
other liabilities that may arise from their position, with the exception of conduct involving a wilful breach of
duty or improper use of information or position to gain a personal advantage.
Proceedings on Behalf of Company
No person has applied for leave of the Court to bring proceedings on behalf of the Company or intervene in any
proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all
or any part of those proceedings. The Company was not a party to any such proceedings during the year.
Non-Audit Services
There have been no non-audit services provided by the consolidated entity’s auditor during the year.
Auditor’s Independence Declaration
The auditor, BDO Audit Pty Ltd, has provided the Board of Directors with an independence declaration in accordance
with section 307C of the Corporations Act 2001 and this is set out on the following page.
The Report of Directors is signed pursuant to section 298(2) (a) of the Corporations Act 2001 in accordance with a
resolution of the Board of Directors.
Jiajun
Hu
Executive Chairman
Dated: 10 Dec 2024
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an
Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form
part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9
Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY NEIL SMITH TO THE DIRECTORS OF KALNORTH GOLD
MINES LIMITED
As lead auditor of KalNorth Gold Mines Limited for the year ended 30 June 2024, I declare that, to the
best of my knowledge and belief, there have been:
1.
No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2.
No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of KalNorth Gold Mines Limited and the entities it controlled during the
period.
Neil Smith
Director
BDO Audit Pty Ltd
Perth
10 December 2024
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
10
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2024
Notes
30 June 2024
30 June 2023
$
$
Other income
3
1,575,923
363,773
Director and corporate employee costs
(146,923)
(151,084)
Professional fees and consultants
(99,652)
(62,955)
Registry fees
(9,941)
(14,126)
Other expenses
(98,144)
(92,062)
Unrealised Foreign Exchange Gain/(Loss)
12,502
43,373
Unrealised Gain/(Loss) on Investment
(543,241)
(1,177,132)
Realised Gain/(Loss) on Investment
(9,982)
-
(Loss) / Profit before income tax
680,542
(1,090,213)
Income tax expense
4
(49,111)
-
(Loss) / Profit after income tax for the year
631,431
(1,090,213)
Earnings/Loss per share for the year attributable to the members of
KalNorth Gold Mines Limited:
Basic and diluted (loss) / earnings per share (cents)
12
0.07
(0.12)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income Should be read in conjunction with
the accompanying notes.
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
11
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2024
Note
30 June 2024
30 June 2023
$
$
ASSETS
Current Assets
Cash and cash equivalents
14(b)
3,217,619
3,276,634
Other receivables
5
124,248
137,894
Loan Receivable
5
432,769
-
Other assets
6
9,390,402
8,078,184
Total Current Assets
13,165,038
11,492,712
Non-Current Assets
Financial Asset
7
1,859,988
2,741,687
Loan Receivable
5
-
113,290
Total Non-Current Assets
1,859,988
2,854,977
TOTAL ASSETS
15,025,026
14,347,689
LIABILITIES
Current Liabilities
Trade and other payables
8
143,877
97,971
Total Current Liabilities
143,877
97,971
TOTAL LIABILITIES
143,877
97,971
NET ASSETS
14,881,149
14,249,718
EQUITY
Issued capital
9
92,438,807
92,438,807
Accumulated losses
10
(77,557,658)
(78,189,089)
TOTAL EQUITY
14,881,149
14,249,718
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income Should be read in conjunction with the accompanying
notes.
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
12
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2024
Issued
Capital
Accumulated
Losses
Total
Equity
$
$
$
2024
As at 1 July 2023
92,438,807
(78,189,089)
14,249,718
Profit after income tax for the year
-
631,431
631,431
Total comprehensive profit for the year, net of tax
-
631,431
631,431
As at 30 June 2024
92,438,807
(77,557,658)
14,881,149
Issued
Capital
Accumulated
Losses
Total
Equity
$
$
$
2023
As at 1 July 2022
92,438,807
(77,098,876)
15,339,931
Loss after income tax for the year
-
(1,090,213)
(1,090,213)
Total comprehensive loss for the year, net of tax
-
(1,090,213)
(1,090,213)
As at 30 June 2023
92,438,807
(78,189,089)
14,249,718
The accompanying notes form an integral part of these financial statements.
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
13
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2024
Note
30 June 2024
30 June 2023
$
$
Cash flows from operating activities
Payments to suppliers and employees (inclusive of GST)
(357,632)
(320,453)
Interest received
508,646
234,898
Net cash (used in)/operating activities
14(a)
151,014
(85,555)
Cash flows from investing activities
Term Deposit matured
Net funds placed on term deposit
-
118,395
3,000,000
(8,067,858)
Net funds for investment
(318,989)
(3,918,819)
Net cash (used in) / from investing activities
(200,594)
(8,986,677)
Cash flows from financing activities
Proceeds from borrowings
(9,435)
(107,677)
Net cash from financing activities
(9,435)
(107,677)
Net (decrease) / increase in cash held
(59,015)
(9,179,909)
Cash and cash equivalents at the beginning of the financial year
3,276,634
12,418,782
Foreign Exchange movements
-
37,761
Cash and cash equivalents at the end of the financial year
14(b)
3,217,619
3,276,634
The accompanying notes form an integral part of these financial statements.
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
14
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
30 June 2024
Entity Name
Entity Type
Joint venture
interest
Place of
formed/Country of
incorporation
%
Tax residency
KalNorth Gold Mines
Limited
Company
N/A
Australia
100%
Australia
Shannon Resources
Pty Ltd
Company
N/A
Australia
100%
Australia
Lusitan
Prospecting
Pty Ltd
Company
N/A
Australia
100%
Australia
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.
Determination of tax residency
Section 295(3A) of the Corporations ACT 2001 defines tax residency as having the meaning in the income tax
assessment act 1997.The determination of tax residency involves as there are currently several different
interpretations that could be adopted, and which could give rise to a different conclusion on residency.
In determining tax residency, the consolidated entity has applied the following interpretations:
(a) Australian tax residency: the consolidated entity has applied current legislation and judicial precedent,
including having regard to the tax Commissioner’s public guidance Tax Ruling TR201/5.
(b) Foreign tax residency: where necessary, the consolidated entity has used independent tax advisers in foreign
jurisdictions to assist in determining tax residency and ensure compliance with applicable foreign tax
legislation.
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
Notes to the Consolidated Entity Disclosure Statement
15
Notes to the Consolidated Financial Statements
Note 1: Statement of Material Accounting Policies
The financial statements cover KalNorth Gold Mines Limited (“KalNorth”, “Company”) as a consolidated entity
consisting of KalNorth Gold Mines Limited and the entities it controlled at the end of, or during, the year. The financial
statements are presented in Australian dollars, which is KalNorth's functional and presentation currency.
The financial report was authorised for issue on (drafted) 10 Dec 2024 by the Board of Directors.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards
and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as
appropriate for-profit oriented entities. These financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of available-for-sale financial assets, financial assets and liabilities at fair value through profit or loss,
investment properties, certain classes of property, plant and equipment and derivative financial instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The
areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are material
to the financial statements are disclosed in note 2.
New and amended standards issued but not yet mandatory
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the Company for the annual reporting period ended 30 June 2024. The
Company has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.
New or amended standards adopted by the Company
The Company has not adopted any new or amended standards during the year ended 30 June 2024.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity
only. Supplementary information about the parent entity is disclosed in Note 24.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of KalNorth Gold Mines
Limited ('company' or 'parent entity') as at 30 June 2024 and the results of all subsidiaries for the year then ended.
KalNorth Gold Mines Limited and its subsidiaries together are referred to in these financial statements as the
'consolidated entity'.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an
entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries
are fully consolidated from the date on which control is transferred to the consolidated entity. They are de-
consolidated from the date that control ceases.
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
Notes to the Consolidated Entity Disclosure Statement
16
Note 1: Statement of Material Accounting Policies (cont’d)
Principles of consolidation (cont’d)
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity
are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of
the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency
with the policies adopted by the consolidated entity.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership
interest, without the loss of control, is accounted for as an equity transaction, where the difference between the
consideration transferred and the book value of the share of the non-controlling interest acquired is recognised
directly in equity attributable to the parent.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities
and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in
equity. The consolidated entity recognises the fair value of the consideration received and the fair value of any
investment retained together with any gain or loss in profit or loss.
Operating Segments
Operating segments are presented using the 'management approach', where the information presented is on the
same basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible
for the allocation of resources to operating segments and assessing their performance.
Income tax
The income tax expense (income) for the year comprises current income tax expense (income) and deferred tax expense
(income).
Current income tax expense charged to the profit of loss is the tax payable on taxable income calculated using applicable
income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities (assets) are therefore
measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year
as well as unused tax losses.
Current and deferred income tax expense (income) is charged or credited directly to equity instead of profit or loss when
the tax related to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts
have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the
initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or
taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the
asset is realised or the liability is settled, based on tax rates enacted or substantially enacted at reporting date. Their
measurement also reflects the manner in which management expects to recover or settle the carrying amount of the
related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it
is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be
utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures,
deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can
be controlled and it is not probable that the reversal will occur in the foreseeable future.
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
Notes to the Consolidated Entity Disclosure Statement
17
Note 1: Statement of Material Accounting Policies (cont’d)
Income tax (cont’d)
Current tax assets and liabilities are offset where a largely enforceable right of set-off exists and it is intended that net
settlement or simultaneous realisation and settlement of the respective asset and liability will occur.
Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets
and liabilities related to income taxes levied by the same taxation authority on either the same taxable entity or
different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the
respective asset and liability will occur in future periods in which material amounts of deferred tax assets or liabilities
are expected to be recovered or settled.
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
settled within 12 months of the reporting date are recognised in current liabilities in respect of employees' services
up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
Property, plant and equipment
Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated
depreciation and impairment losses.
Property
Freehold land and buildings are measured on the cost basis less depreciation and impairment losses.
Plant and equipment
Plant and equipment are measured on the cost basis less depreciation and impairment losses.
The carrying amount of property, plant and equipment is reviewed annually by directors to ensure it is not in excess
of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net
cash flows that will be received from the assets employment and subsequent disposal. The expected net cash flows
have been discounted to their present values in determining recoverable amounts.
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 statement of comprehensive
income during the financial period in which they are incurred.
Depreciation
The depreciable amount of all fixed assets including building and capitalised lease assets, but excluding freehold land,
is depreciated on a straight-line basis over the useful lives to the consolidated entity commencing from the time the
asset is held ready for use.
The depreciation rates used for each class of depreciable assets are:
Class of fixed asset
Depreciation rate
Plant and equipment
10-33%
Motor vehicles
25%
IT assets
33%
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
Notes to the Consolidated Entity Disclosure Statement
18
Note 1: Statement of Material Accounting Policies (cont’d)
Property, plant and equipment (cont’d)
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date. An asset's
carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than
its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and
losses are included in the statement of comprehensive income or loss. When revalued assets are sold, amounts
included in the revaluation reserve relating to that asset are transferred to retained earnings.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current
classification.
An asset is current when: it is expected to be realised or intended to be sold or consumed in normal operating cycle;
it is held primarily for the purpose of trading; it is expected to be realised within twelve months after the reporting
period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for
at least twelve months after the reporting period. All other assets are classified as non-current.
A liability is current when: it is expected to be settled in normal operating cycle; it is held primarily for the purpose of
trading; it is due to be settled within twelve months after the reporting period; or there is no unconditional right to
defer the settlement of the liability for at least twelve months after the reporting period. All other liabilities are
classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Impairment of non-financial assets
At each reporting date, the group reviews the carrying values of its tangible and intangible assets to determine
whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable
amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the
asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the
comprehensive statement of income.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows
have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the
asset is reduced to its recoverable amount. An impairment loss is recognised in profit or loss immediately, unless the
relevant asset is carried at fair value, in which case the impairment loss is treated as a revaluation decrease. Where
an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its
recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount
that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of
an impairment loss is recognised in profit or loss immediately, unless the relevant asset is carried at fair value, in which
case the reversal of the impairment loss is treated as a revaluation increase.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, and other short-term highly liquid
investments with original maturities of three months or less, and bank overdrafts.
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
Notes to the Consolidated Entity Disclosure Statement
19
Note 1: Statement of Material Accounting Policies (cont’d)
Trade and Other Receivables
Trade and other receivables include amounts due from customers for goods sold and services performed in the
ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting period
are classified as current assets. All other receivables are classified as non-current assets.
Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost using
the effective interest method, less any provision for impairment.
Trade and Other Payables
Trade and other payables represent the liabilities for goods and services received by the entity that remain unpaid at
the end of the reporting period. The balance is recognised as a current liability with the amounts normally paid within
30 days of recognition of the liability.
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the
initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently
measured at either amortised cost or fair value depending on their classification. Classification is determined based on
both the business model within which such assets are held and the contractual cash flow characteristics of the
financial asset unless an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the
consolidated entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable
expectation of recovering part or all of a financial asset, it's carrying value is written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as
financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading,
where they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a
derivative; or (ii) designated as such upon initial recognition where permitted. Fair value movements are recognised in
profit or loss.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of the loss
allowance depends upon the consolidated entity's assessment at the end of each reporting period as to whether the
financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and
supportable information that is available, without undue cost or effort to obtain.
Where there has not been a material increase in exposure to credit risk since initial recognition, a 12-month expected
credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is
attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit
impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the
asset's lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the
probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the
original effective interest rate.
Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs.
They are subsequently measured at amortised cost using the effective interest method. Where there is an unconditional
right to defer settlement of the liability for at least 12 months after the reporting date, the loans or borrowings are
classified as non-current.
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
Notes to the Consolidated Entity Disclosure Statement
20
Note 1: Statement of Material Accounting Policies (cont’d)
Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is
not recoverable from the Australian Tax Office. In these circumstances, the GST is recognised as part of the cost of
acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial
position are shown inclusive of GST. Cash flows are presented in the cash flow statement on a gross basis, except for
the GST component of investing and financing activities, which are disclosed as operating cash flows.
Revenue Recognition
Interest income
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial
assets.
Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue
of new shares or options for the acquisition of a business are not included in the cost of the acquisition as part of the
purchase consideration.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the consolidated entity,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares
outstanding during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and
the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential
ordinary shares.
Comparative figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation
for the current financial year.
Finance costs
Finance costs are expensed in the period in which they are incurred.
Note 2: Critical accounting estimates and judgments
The Directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge
and best available current information. Estimates assume a reasonable expectation of future events and are based on
current trends and economic data, obtained both externally and within the group.
As a result of the disposal of all mineral assets and other non-current assets during the reporting period and the prior
period, there are no aspects of the Company’s assets, liabilities and activities during the period that require critical
accounting estimates and judgments.
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
Notes to the Consolidated Entity Disclosure Statement
21
Note 2: Critical accounting estimates and judgments(cont’d)
The loan is secured over a floating charge of assets of SCCC including a specific cash deposit lodged with the
Canadian Government of $1,514,640.00 CAD.
Further, the directors expect the loan which has been drawn down to be repaid in full within one year of the date of
this financial report.
Note 3: Other income
2024
2023
$
$
Interest
Dividend received
545,537
1,030,386
363,773
-
1,575,923
363,773
Note 4: Income tax
(a)
Numerical reconciliation between income tax expense and the profit / (loss) before income tax
2024
2023
$
$
Profit/(Loss) before income tax per statement of profit or loss
680,542
-
Add back unrealized loss on investment
543,241
-
Profit/(Loss) before income tax
1,223,783
(1,090,213)
Income tax expense / (benefit) calculated at 30% (2023: 30%)
367,135
(327,064)
Tax effect of temporary differences
Tax effect of temporary differences not recognised
Tax effect of deduction for tax losses not previously recognised
-
(293,346)
(24,677)
-
303,593
-
Other deferred tax assets not recognised
-
23,471
Income tax expense reported in the statement of
Profit or loss
49,111
-
(b)
Unrecognised deferred tax balances
Losses available for offset against future taxable income-
Revenue
64,506,214
64,502,191
Potential tax benefit at 30% (2023 :30%)
19,351,864
19,350,657
The ability to utilise carry forward tax losses is dependent on the group satisfying applicable tax legislation requirements
at the time of proposed recoupment of these tax losses.
For the purposes of taxation, KalNorth Gold Mines Limited and its 100% owned Australian subsidiaries are a tax
consolidated group. The head entity of the tax consolidated group is KalNorth Gold Mines Limited. The group has not
entered into a tax sharing agreement.
Note 5: Other receivables
2024
2023
$
$
Current
Interest receivable from term deposit
124,248
137,894
Loan Receivable
432,769
-
557,017
137,894
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
Notes to the Consolidated Entity Disclosure Statement
22
Note 5: Other receivables(cont’d)
KGM has entered into loan agreements during 2022-2023 to provide SCCC Petroleum Corporation with CAD100,000
at annual interest rate of 8%. This loan facility has been fully drawn down to SCCC on 19 January 2023. The
arrangement matures on 31 January 2025.
KGM also entered into loan agreements during 2023-2024 to provide SCCC Petroleum Corporation with USD100,000
and CAD450,000 which are available for drawing down at the following annual interest rate:
3 July 2023 USD100,000 @12% annual interest rate. This loan has been drawn down of USD60,000 and USD30,000
to SCCC on 07 July 2023 and 26 March 2024 respectively. The arrangement matures on 31 January 2025.
9 January 2024 CAD 100,000 @10% annual interest rate. This loan has been drawn down of CAD70,000 on 21 Feb
2024. The arrangement matures on 31 January 2025.
25 March 2024 CAD 350,000 @12% annual interest rate. This loan has been drawn down of CAD100,000 on 26 Mar
2024.The arrangement matures on 25 March 2026.
The loan receivable amount is equivalent to AUD 432,768 as of 30 June 2024 and AUD 113,290 as of 30 June 2023.
The loan is secured by the assets of SCCC and specifically, a cash deposit held by SCCC.
*Mintu holds the shares that Kalnorth owns in Note 7. Receivable relates to the shares disposed of during the year.
Note 7: Financial Asset
2024
2023
$
$
Non-Current
Investment*
1,859,988
2,741,687
1,859,988
2,741,687
*Shares in listed company in Hong Kong at Fair value through profit or loss.
Reconciliation of balance:
Opening balance as of 1 July 2023
Shares acquired through dividend received (Note 3)
Shares disposed during the year
2,741,687
1,030,386
(1,368,844)
Fair value movement
(543,241)
Closing balance as of 30 June 2024
1,859,988
Note 8: Trade and other payables
2024
2023
$
$
Current
Trade payables (i)
26,954
48,113
GST and other taxes payable
50,354
4,531
Sundry payables and accrued expenses
22,332
7,014
2024
2023
$
$
Non-current
Loan Receivable
-
113,290
Total
-
113,290
Note 6: Other assets
2024
2023
$
$
Current
Credit card facility - security deposit
7,500
7,500
GST Refundable
2,593
2,826
Term deposit at bank
8,000,000
8,067,858
Mintu Infrastructure*
1,380,309
-
9,390,402
8,078,184
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
Notes to the Consolidated Entity Disclosure Statement
23
Provision for annual leave
44,237
38,313
143,877
97,971
(i) There are no amounts included within these balances that are not expected to be settled within the next 12
months. The average credit terms for services received by the Group are 30 days from invoice date and are non-
interest bearing
Note 9: Contributed equity
2024
2023
$
$
894,240,060 fully paid ordinary shares (2023: 894,240,060)
92,438,807
92,438,807
Movements in ordinary shares on issue for the year:
No. of shares
Paid up capital
$
Opening Balance of the year
894,240,060
92,438,807
Closing Balance of the year
894,240,060
92,438,807
Ordinary shares
Ordinary shares have the right to receive dividends as declared and, in the event of winding up of the consolidated
entity, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts
paid up on shares held.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll
each share shall have one vote.
Capital risk management
The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern,
so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum
capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends paid
to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The consolidated entity would look to raise capital when an opportunity to invest in a business or company was
seen as value adding relative to the current company's share price at the time of the investment. The consolidated
entity is not actively pursuing additional investments in the short term as it continues to integrate and grow its
existing businesses in order to maximise synergies.
Note 10: Accumulated Losses
2024
2023
$
$
Accumulated losses at the beginning of the year
(78,189,089)
(77,098,876)
The comprehensive income for the year
631,431
(1,090,213)
Accumulated losses at the end of the year
(77,557,658)
(78,189,089)
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
Notes to the Consolidated Entity Disclosure Statement
24
Note 11: Key management personnel compensation
Refer to the Key Management Personnel Remuneration section contained in the Directors’ Report for details of the
remuneration paid to each member of the consolidated entity’s key management personnel for the year ended 30 June
2024.
Note 11: Key management personnel compensation(cont’d)
The totals of remuneration paid to key management personnel of the consolidated entity during the year are as follows:
2024
2023
$
$
Short-term employee benefits
135,923
135,923
Post-employment benefits
11,000
10,500
146,923
146,423
Note 12: (Loss) / Profit per share
2024
2023
$
$
a) Basic (loss) / profit per share
(Loss) / Profit after income tax
631,431
(1,090,213)
Weighted average number of ordinary shares on issue during the year used as the
denominator in calculating basic loss per share
894,240,060
894,240,060
Basic and diluted loss per share (cents)
0.07
(0.12)
Diluted loss per share is the same as basic loss per share as there are no securities to be classified as dilutive potential
ordinary shares on issue.
Note 13: Auditors’ remuneration
2024
2023
$
$
Remuneration of the auditor for:
- audit and review of financial reports - BDO Audit Pty Ltd
48,950
42,558
48,950
42,558
Note 14: Cash flow information
2024
2023
$
$
a) Reconciliation of the net profit / (loss) after income tax to the net cash flows
from operating activities:
Net (loss) / profit for the year
680,542
(1,090,213)
Non-cash items included in net profit / (loss):
Others
(376,048)
1,133,759
Changes in assets and liabilities:
(Increase) / decrease in trade and other receivables
(135,276)
(125,758)
Increase in trade and other creditors
(18,204)
(3,343)
Net cash used in operating activities
151,014
(85,555)
b) Reconciliation of cash
Cash balance comprises:
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
Notes to the Consolidated Entity Disclosure Statement
25
- Cash at bank and on hand
3,217,619
3,276,634
c) Non-Cash Financing and Investing Activities
There were no non-cash financing and investing activities for the year ended 30 June 2023 and 2024
Note 15: Commitments
The consolidated entity has no commitments as a result of the disposal of all its mineral exploration assets during the
year.
Note 16: Controlled entities
Country of
Incorporation
Percentage Owned (%)
2024
2023
Subsidiaries of KalNorth Gold Mines Limited:
Shannon Resources Pty Ltd
Australia
100
100
Lusitan Prospecting Pty Ltd
Australia
100
100
There was no income earned and no expenses incurred by these entities for the year end 30 June 2024 (2023: nil).
Note 17: Segment information
Identification of reportable operating segments
The consolidated entity is organized into two operating segments: Investment in SinoHytec and Admin.
30 June 2024
Investment in
SinoHytec
Admin
Total
consolidated
group
Revenue
$
$
$
Other income
1,030,386
545,537
1,575,923
Total income
1,030,386
545,537
1,575,923
EBITDA
-
680,542
680,542
Profit / (Loss) before income tax
-
680,542
680,542
Income tax
-
(49,111)
(49,111)
Profit / (Loss) for the year
-
631,431
631,431
Assets
Unallocated assets:
Cash and cash equivalents
-
3,217,619
3,217,619
Other receivables
-
124,248
124,248
Other current assets
-
9,823,171
9,823,171
Other non-current assets
1,859,988
-
1,859,988
Total assets
13,165,038
15,025,026
Liabilities
Segment liabilities
Trade and other payables
-
143,877
143,877
Total liabilities
-
143,877
143,877
Note 18: Financial risk management objectives and policies
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
Notes to the Consolidated Entity Disclosure Statement
26
The consolidated entity’s principal financial instruments comprise cash and short-term deposits.
The main purpose of these financial instruments is to finance the consolidated entity’s operations. The Consolidated
entity has various other financial assets and liabilities such as receivables and payables, which arise directly from its
operations.
The main risks arising from the consolidated entity’s financial instruments are interest rate risks, commodity price risks,
and, indirectly, foreign exchange risk. Other minor risks have been summarised below. The Board reviews and agrees on
policies for managing each of these risks.
(a)
Interest rate risk
The consolidated entity’s exposure to market interest rate relates primarily to the consolidated entity’s cash and short-
term deposits. All other financial assets in the form of receivables and payables are non-interest bearing. The
consolidated entity does not engage in any hedging or derivative transactions to manage interest rate risk.
(b) Credit risk
The maximum exposure to credit risk at reporting date on financial assets of the consolidated entity is the carrying
amount, net of any provisions for doubtful debts, as disclosed in the statement of financial position and notes to the
financial statements.
(c)
Liquidity risk
The consolidated entity manages liquidity risk by monitoring forecast and actual cash flows and ensuring that
adequate reserves and borrowing facilities are available to meet its financial obligations as they fall due.
The table below details the Group’s expected maturity for its financial liabilities. These have been drawn based on
undiscounted contractual maturities of the financial liabilities based on the earliest date on which the Group can be
required to pay.
Less than 12 months
$
12 months
or more
$
Total
$
30 June 2024
Financial liabilities due
for payment
Trade and other payables
(143,877)
-
(143,877)
(143,877)
-
(143,877)
Less than 12 months
$
12 months
or more
$
Total
$
30 June 2023
Financial liabilities due
for payment
Trade and other payables
(97,971)
-
(97,971)
(97,971)
-
(97,971)
(d) Foreign exchange risk
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
Notes to the Consolidated Entity Disclosure Statement
27
The Company is exposed to fluctuations in foreign currencies arising from financial asset denominated in a currency
other than the functional currency of the Group.
The main currency exposure is to the United States dollars through maintaining a cash balance in United States dollars.
The Company’s exposure to foreign currency risk at the end of the reporting period, expressed in Australian dollars
was as follows:
2024
2023
$
$
Cash and cash equivalents
6,341
142,081
(d)
Net fair value of financial assets and liabilities
The carrying amounts of financial instruments included in the statement of financial position approximate their fair values
due to their short terms of maturity, except other receivables (Note 5) which has been discounted to net present value.
Note 19: Contingent liabilities and contingent assets
There are no contingent liabilities or assets at the reporting date or arising since.
Note 20: Parent Information
As referred to in Note 16, the consolidated entity comprises KalNorth Gold Mines Limited, the parent entity and two
wholly-owned subsidiaries. The Parent entity disclosures are not materially different to the consolidated entity’s
disclosures in the Statement of Financial Position and the Statement of Profit or Loss and Other Comprehensive Income.
In addition, there are:
a) no guarantees entered into by the parent entity in relation to the debts of its subsidiaries.
b) no contingent liabilities of the parent entity as at the reporting date.
c) no contractual commitments by the parent entity for the acquisition of property, plant and equipment as at
the reporting date.
Note 21: Events Subsequent to reporting date
Lusitan Prospecting Pty Ltd has been deregistered on 19 September 2024.
Note 22: Related party transactions.
Parent entity
KalNorth Gold Mines Limited
Subsidiaries
Interests in subsidiaries are set out in note 16.
Key management personnel
Disclosures relating to Key management personnel are set out in note 11.
Transactions with related parties
There are loan agreements with related parties during the current year. During the current and previous financial years,
KalNorth Gold Mines Limited and SCCC Petroleum Corporation (an entity associated with director Xiaojing Wang) entered
into loan agreements. For more details refer to note 5.
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
Notes to the Consolidated Entity Disclosure Statement
28
Receivable from and payable to related parties
Consolidated
30 June 2024
30 June 2023
$
$
Receivable from SCCC Petroleum Corporation (related party of Xiaojing Wang)
432,769
113,290
432,769
113,290
Loans to /from related parties
There are loans to related parties at the current and previous reporting period as disclosed above.
KalNorth Gold Mines Limited and Controlled Entities
For the year ended 30 June 2024
29
DIRECTORS’ DECLARATION
In the opinion of the Directors of KalNorth Gold Mines Limited (the ‘Company’):
a.
the accompanying financial statements and notes are in accordance with the Corporations Act 2001 including:
i.
giving a true and fair view of the Consolidated Entity’s financial position as at 30 June 2024 and of its
performance for the year then ended; and
ii.
complying with Australian Accounting Standards, the Corporations Regulations 2001, professional
reporting requirements and other mandatory requirements;
b.
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable; and
c.
the financial statements and notes thereto are in accordance with International Financial Reporting Standards
issued by the International Accounting Standards Board.
d. the information disclosed in the consolidated entity disclosure statement on page 14 is true and correct.
This declaration is signed in accordance with a resolution of the Board of Directors.
On behalf of the Directors:
Jiajun Hu
Executive Chairman
Date: 10 Dec 2024
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an
Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form
part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9
Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of KalNorth Gold Mines Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of KalNorth Gold Mines Limited (the Company) and its subsidiaries
(the Group), which comprises the consolidated statement of financial position as at 30 June 2024, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including material accounting policy information, the consolidated entity
disclosure statement and the directors’ declaration.
In our opinion the accompanying financial report of the Group, is 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
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance
with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Other information
The directors are responsible for the other information. The other information obtained at the date of
the auditor’s report is information included in the Director’s Report, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of:
a) the financial report that gives a true and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001 and
b) the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i)
the financial report that gives a true and fair view and is free from material misstatement,
whether due to fraud or error; and
ii)
the consolidated entity disclosure statement that is true and correct and is free of
misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
BDO Audit Pty Ltd
Neil Smith
Director
Perth, 10 December 2024