Kin Mining NL
ABN 30 150 597 541
Annual Report
30 June 2023
CONTENTS
Corporate Information
Chairman’s Letter
Directors’ Report
Corporate Governance Statement
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional Securities Exchange Information
Tenement Table
Page
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83
2
CORPORATE INFORMATION
ABN 30 150 597 541
Directors
Robert Rowan Johnston
Giuseppe (Joe) Paolo Graziano
Hansjoerg Plaggemars
Nicholas Anderson
Company Secretary
Stephen Jones
Registered office
First Floor
342 Scarborough Beach Road
OSBORNE PARK WA 6017
Principal place of business
First Floor
342 Scarborough Beach Road
OSBORNE PARK WA 6017
Tel: (08) 9242 2227
Share register
Advanced Share Registry Services
PO Box 1156
NEDLANDS WA 6909
Tel: (08) 9389 8033
Solicitors
Dominion Legal
104 Edward Street
PERTH WA 6000
Auditors
HLB Mann Judd (WA Partnership)
Level 4, 130 Stirling Street
Perth WA 6000
Securities Exchange Listing
Kin Mining NL shares are listed on the Australian Securities
Exchange (ASX: KIN)
3
CHAIRMAN’S LETTER
Dear Shareholder,
On behalf of my fellow Directors, I am pleased to present Kin Mining’s 2023 Annual Report.
Since taking the role of Executive Chairman in July, I have had the opportunity to familiarise
myself more closely with our assets and team, reflect on the achievements of the past year
and review our strategy.
The consolidation in the Leonora gold district in Western Australia has continued this year,
albeit in a challenging environment for investment in the gold sector. Whilst keeping an eye on
consolidation and Kin’s possible place in it, Kin has continued to apply an exploration-driven
strategy across our Leonora-based operations, resulting in further new discoveries and the
addition of more tonnes and ounces to the Mineral Resource inventory.
Ultimately, these activities have added further significant value to our flagship Cardinia Gold
Project (CGP). While this value has not yet been reflected in our share price, we remain
confident that Kin is well positioned to participate in the consolidation of assets in the Leonora
district and ultimately to unlock the value of these assets for our shareholders.
The Company’s systematic and focused exploration philosophy continued in 2023, with a total
of 33,326m of drilling completed across a range of targets at various stages of definition. This
drilling has both identified new targets and supported MRE upgrades.
On 21 September 2022, we announced an increase of 132,000oz (or 10.2%) to our CGP
Mineral Resource Estimate to 1.407Moz and followed that up with a second update on 3 July
2023 with a further increase of 134,000oz or 9.5% to 1.541Moz (37.7 Mt at 1.27 g/t Au).
The majority of the September 2022 MRE increase came from the Rangoon discovery within
the Eastern Corridor, while the June 2023 MRE increase included the maiden 70,000oz MRE
for the recently discovered Helens East deposit and a new estimate that joins the previously
discrete Rangoon and Helens deposits. This is an exciting area for further extensions and
discoveries.
The maiden MRE for the Helens East deposit also reflects our view that the Eastern Corridor
represents a significant untapped opportunity for further resource growth within the CGP. The
Company has a strong pipeline of exploration targets that are yet to be estimated at the Mineral
Resource level, including extensions of existing deposits in the Eastern Corridor and newly
identified prospects at other project areas.
The details of our exploration programs during the past year – and the strong drilling results
we were able to consistently generate – are included in the Operations Review in the body of
this Annual Report.
We remain of the view that our high-quality inventory, located in the heart of the Tier-1 Leonora-
Laverton region – together with the untapped exploration upside within our large 777 square
kilometre strategically located ground-holding – will ultimately be the key drivers of value for
our shareholders.
4
CHAIRMAN’S LETTER
We continue to monitor the developments in the Leonora/Laverton region and position
ourselves to be a part of the future in this region. Our development activities include continuing
to prepare and permit existing Mineral Resources and Ore Reserves for mining and
processing. To that end, Kin has lodged Mining Proposal approvals over Cardina and
Mertondale (the majority of our MRE) with both proposals advancing well through the approvals
process.
In closing, I believe that the continued levels of corporate activity in the junior gold sector –
particularly in and around Leonora – along with new near-mine discoveries at the CGP and
further Mineral Resource updates and potential development proposals in the future will set
the Company up for success in the near future. The Board remains focused on achieving the
best commercial outcome for our shareholders in a reasonable timeframe.
None of our achievements during the year would have been possible without the input from
our small but hard-working team, led during the year by Managing Director, Andrew Munckton.
I would like to sincerely thank our entire team of staff and contractors, as well as my fellow
Board members, for their efforts and commitment over the past year. Andrew resigned in July
to pursue another opportunity in the resource sector, and the Board and staff wish him well in
his new position and take this opportunity to thank him for his five years of diligent and highly
professional leadership.
On behalf of the Board, I would also like to thank you, our shareholders, for your strong ongoing
support. We look forward to the year ahead with great anticipation.
Yours sincerely,
Rowan Johnston
Chairman
5
DIRECTORS’ REPORT
The Directors of Kin Mining NL (“Kin” or “the Company”) submit herewith the consolidated annual
financial report consisting of the Company and its wholly owned subsidiaries (together “the Group”) for
the financial year ended 30 June 2023. In compliance with the provisions of the Corporations Act 2001,
the Directors report as follows:
Directors
The names of the directors in office during or since the end of the year are as follows. Directors were
in office for the entire period unless otherwise stated.
Robert Rowan Johnston (appointed 15 July 2022)
Giuseppe (Joe) Paolo Graziano
Hansjoerg Plaggemars
Nicholas Anderson
Andrew Munckton (resigned 18 August 2023)
Brian Dawes (resigned 24 November 2022)
Mr Robert Rowan Johnston, Executive Chairman (appointed 15 July 2022)
Mr Johnston commenced the role of Executive Chairman on 1 August 2023.
Mr Johnston is a mining engineer with over 40 years’ resources industry experience, including significant
experience as a company director through executive and non-executive directorship roles. Mr Johnston
has held various senior executive roles in Australia and internationally, primarily in the gold sector, and
has experience in feasibility studies, company formations, construction, expansions and mergers.
Previous roles held by Mr Johnston include Acting Chief Executive Officer and Executive Director of
Operations for Mutiny Gold Limited, prior to its takeover by Doray Minerals Limited, and Executive
Director of Integra Mining Limited prior to its merger with Silver Lake Resources Limited.
Special Responsibilities:
‐ Member of the Audit Committee
‐ Member of the Remuneration and Nomination Committee
Directorships held in other Australian listed companies:
‐ Spartan Resources Limited – Chairman (ASX:SPR) since August 2021
‐ Wiluna Mining Corporation Limited – Chairman (ASX:WMC) since December 2021
‐ PNX Metals Limited – Non Executive Director (ASX:PNX) since April 2023
Directorships held in other Australian listed companies in the past 3 years:
‐ Bardoc Gold Limited – Non Executive Director, commenced December 2019 and resigned 22 April
2022
6
DIRECTORS’ REPORT
Mr Giuseppe (Joe) Paolo Graziano, Non-Executive Director
Mr Graziano was Chairman until 1 August 2023 when he stepped aside to allow Mr Johnston to take
the role of Executive Chairman.
Up to 2014 Mr Graziano worked as a Chartered Accountant with corporate and company secretarial
experience. Mr Graziano has over 30 years’ experience providing a wide range of business, financial
and strategic advice to small cap unlisted and listed public companies and privately owned businesses
in Western Australia’s resource-driven industries. Since 2014 he has been focused on corporate
advisory, company secretarial and strategic planning with listed corporations including Mergers &
Acquisitions, Capital Raisings, Corporate Governance, ASX compliance and structuring.
Mr Graziano is currently a director of Pathways Corporate Pty Ltd a specialised Corporate Advisory
business and holds the following Directorships in other Australian listed companies:
‐ Tyranna Resources Limited – Non-Executive Chairman (ASX:TYX)
‐ Protean Energy Ltd – Non-Executive Director (ASX:POW) since October 2020
‐ Syntonic Ltd – Non-Executive Director (ASX:SYT) since October 2020
‐ Ozz Resources Limited – Non-Executive Director (ASX:OZZ) since May 2022
Special Responsibilities:
‐ Member of the Audit Committee
‐ Member of the Remuneration and Nomination Committee
Directorships held in other Australian listed companies in the past 3 years:
‐ Athena Resources Limited – Non Executive Directors from May 2022 to August 2022
‐ Thred Ltd – Non-Executive Director Ceased 1 February 2021
‐ Migme Ltd – Non-Executive Director Ceased and now delisted
Mr Hansjoerg Plaggemars, Non-Executive Director
Mr Plaggemars is an experienced company director with a deep background in corporate finance,
corporate strategy and governance. He has served on the Board of Directors of many listed and unlisted
companies in a variety of industries including mining, agriculture, shipping, construction and
investments. This includes the Board of Delphi Unternehmensberatung AG.
Mr Plaggemars has qualifications in Business Administration and is fluent in English and German.
Special Responsibilities:
‐ Member of the Audit Committee
‐ Member of the Remuneration and Nomination Committee
Directorships held in other Australian listed companies:
‐ Azure Minerals Limited – Non Executive Director (ASX:AZS) since November 2019
‐ Altech Chemicals Limited – Non Executive Director (ASX:ATC) since August 2020
‐ PNX Metals Limited – Non Executive Director (ASX:PNX) since November 2020
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DIRECTORS’ REPORT
‐ Spartan Resources Limited – Non Executive Director (ASX:SPR) since July 2021
‐ Wiluna Mining Corporation Limited, Non-Executive Director (ASX:WMC) since July 2021
‐ Geopacific Resources Limited, Non-Executive Director (ASX:GPR) since July 2022
Directorships held in other Australian listed companies in the past 3 years:
‐ South Harz Potash Ltd – Non Executive Director (ASX:SHP) from October 2019 to 31 December
2022
Mr Nicholas Anderson, Non-Executive Director
Mr Anderson is a finance executive with extensive experience in the resource sector. As a trained
chemical engineer with combined knowledge of bulk commodities and strong financial acumen he
provides financial and corporate advisory services to several mining companies. He has a successful
track record in capital raisings, restructures and executing highly complex transactions across private
and public markets.
Mr Anderson is currently Chief Financial Officer of Rivet Group which provides transport, logistics,
equipment hire and maintenance services to a number of industries, predominately mining. Mr Anderson
is a graduate of the Australian Institute of Company Directors.
Special Responsibilities:
‐ Member of the Audit Committee
‐ Member of the Remuneration and Nomination Committee
‐ Executive Director, Business Development for Kin Mining NL
Directorships held in other Australian listed companies in the past 3 years:
‐ Nil
Mr Andrew Munckton, Managing Director (resigned on 31 July 2023)
Mr Munckton is an experienced geologist who has held senior management roles in both ASX-listed
companies and gold operations in a career spanning more than 30 years.
Mr Munckton has previously held the roles of Managing Director of Syndicated Metals Limited and
Avalon Minerals, General Manager – Operations for Gindalbie Metals, General Manager Strategic
Development of Placer Dome Asia Pacific and General Manager Operations of the Kanowna Belle,
Paddington and Kundana gold mines over a period of 10 years.
He holds a Bachelor of Science (Geology) from the University of Western Australia and is currently a
Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and the Australian Institute of
Company Directors.
Special Responsibilities:
‐ Member of the Audit Committee
‐ Member of the Remuneration and Nomination Committee
Directorships held in other Australian listed companies in the past 3 years:
8
DIRECTORS’ REPORT
‐ Nil
Stephen Jones, Company Secretary and Chief Financial Officer
Mr Jones is a Chartered Accountant with more than 25 years’ experience leading corporate finance and
governance teams in Australia and overseas. With the last 20+ years in the Western Australian mining
industry Mr Jones has a demonstrated history in Mineral Exploration, Investor Relations, Analytical
Skills, Feasibility Studies, and Environmental Awareness previously holding senior Finance positions at
Portman Mining, Aviva, Southern Cross Goldfields and Middle Island Resources.
Interests in the shares and options of the Company
The following relevant interests in shares and options of the Company were held by the directors as at
the date of this report:
Directors
R Johnston
G Graziano
H Plaggemars
N Anderson
Fully paid ordinary shares
Number
284,000
11,203,925
1,265,671
2,208,536
Share options
Number
-
500,000
500,000
500,000
Shares under option
Date Options
Granted
Number of shares
under option
Exercise Price
Expiry date of option
3 December 2020
2,000,000
$0.2433
2 December 2023
Unissued Shares
There were no unissued shares as at 30 June 2023 (2022: Nil).
Principal Activities
The principal activities of the Group during the year were gold and base metals exploration.
9
DIRECTORS’ REPORT
OPERATIONS REPORT
The Company’s exploration and development assets are located approximately 30km north-
east of Leonora and approximately 250km north-northwest of Kalgoorlie in Western Australia,
in the heart of the well-endowed Leonora mining district.
Centred around the 100%-owned 1.54Moz Cardinia Gold Project (“CGP” or “the Project”), Kin
has 777km2 of tenure in an active gold mining district that hosts several multi-million-ounce
operating gold mines including Sons of Gwalia (Genesis Minerals, GMD), Tower Hill (GMD),
Mt Morgans (80% GMD 10% KIN) and King of the Hills (RED 5) (Figure 1).
The district is well serviced by infrastructure including a network of high-quality roads, gas
pipelines, railway, communication infrastructure, airstrips with regular services to Perth and
close proximity to an established mining workforce and supply network.
There are three gold processing plants within 60km of the CGP with a combined processing
capacity greater than 9.0Mtpa (Gwalia, KOTH and Mt Morgans). Kin seeks to explore its
ground to discover deposits to process through either its own (yet to be built) processing plant
or through processing agreements with one of these established milling facilities.
The Leonora district has been the centre of considerable attention in the last 12 months, with
Genesis Minerals Limited (ASX:GMD) conducting an off market takeover of Dacian Gold
Limited (ASX:DCN) and an asset acquisition of St Barbara’s (ASX:SBM) Leonora Assets
including the Gwalia mine and mill.
Kin continues to apply advanced exploration techniques and technology to evaluate
opportunities across its tenement package, in conjunction with other consolidation, growth and
strategic options within the broader region.
Kin’s activities include exploring for new, higher-grade deposits within the CGP, building its
Mineral Resources (currently 1.54Moz) and evaluating opportunities to develop established
deposits through value-adding gold processing opportunities.
The CGP area encompasses a +45km strike of the Minerie Greenstone Belt which contains
large alteration systems associated with several significant gold deposits.
In addition, the Company has Joint Venture arrangements covering 120km2 with Golden Mile
Resources (G88), where Kin is earning an initial 60% over 3 years by sole funding $750,000
of exploration, which commenced in January 2022.
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DIRECTORS’ REPORT
Figure 1: Location of Kin Mining’s 777km2 tenement package and JV earn-in Projects located in the heart
of the Leonora gold district including major mineral deposits in the region. (Stated size of deposits
includes historical production and current mineral resources.)
11
DIRECTORS’ REPORT
MINERAL RESOURCE ESTIMATE UPGRADE
On 3 July 2023, Kin announced a significant increase in the Mineral Resource Estimate (MRE)
for the Cardinia Gold Project to over 1.5 million ounces (37.7 Mt at 1.27 g/t Au), reflecting the
success of the drilling programs undertaken by the Company over the past financial year. Of
significance is the growth in the higher-grade Mineral Resources at the under explored eastern
part of the Cardinia project which now total 10.4 Mt at 1.42 g/t for 475koz.
The increase of 134koz announced in July 2023 follows on from the increase of 132koz
announced in September 2022 for total additional Mineral Resource added in 2022/23 of
266koz.
It was pleasing to see the maiden Mineral Resource estimate for the recently discovered
Rangoon and Helens East deposits and also to commence the reporting of an underground
component within the MRE reflecting the deeper drilling targets assessed in the last 12 months.
The continued strong growth in the Company’s resource base at Cardinia reflects the success
of its exploration approach, improving geological knowledge and the potential of the new
Eastern Corridor area to deliver higher grade ores within expanded and optimised pit shells.
Table 1: Summary of the June 2023 Mineral Resource Estimate by Project area. Gold price of $2,600/oz
used for all OP optimisation on Measured, Indicated and Inferred material. Cut-off grade of 2.0 g/t used for
UG material below the pits. See Table 2 for details of individual deposit Mineral Resource estimates.
Full details of the Mineral Resource Estimate are provided in the Company’s ASX
announcement dated 3 July 2023.
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DIRECTORS’ REPORT
Table 2: Cardinia Gold Project - Open Pit Mineral Resource estimate. Mineral Resources estimated by
Jamie Logan and reported in accordance with JORC 2012 using a 0.4 g/t Au cut-off within AUD2,600
optimisation shells. Underground Resources are reported using a 2.0 g/t cut-ff grade outside AUD2,600
optimisation shells. Note *Cardinia Hill, Hobby and Bruno-Lewis Mineral Resource Estimates completed
by Cube Consulting, and also reported in accordance with JORC 2012 using a 0.4 g/t Au cut-off within
AUD2,600 optimisation shells.
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DIRECTORS’ REPORT
EXPLORATION AND DEVELOPMENT STRATEGY
The current year saw Kin continue its two-pronged approach to unlocking the value of the
CGP, comprising a wide-ranging, multi-discipline exploration effort in parallel with a near-term
mining options study. On ground evaluation of exploration opportunities across its tenement
package continued in conjunction with other consolidation, growth and strategic options within
the region.
Kin has a large 777km2 land-holding which it owns 100% across the under-explored Minerie
Greenstone Belt, part of a region which has yielded multiple gold deposits in recent decades
(Figure 1).
On ground programs between September 2022 and June 2023 included:
23,043m of Air-core (AC) drilling,
7,046m of Reverse Circulation (RC) drilling, and
2,850m of Diamond (DD) drilling.
Cardinia Gold Project (Cardinia, Mertondale and Raeside)
At the CGP, exploration activities and results have focused on key prospects within the
Eastern Corridor testing for high-grade, quartz sulphide mineralisation within defined
mineralised structures and new geological targets.
Drilling along the Eastern Corridor included target identification AC drilling and resource
definition RC and Diamond drilling.
Eastern Corridor
The Eastern Corridor has been a major focus for Kin’s exploration activities over the past 12-
18 months given its demonstrated potential to host higher-grade mineralisation. The Eastern
Corridor includes five deposits with Mineral Resources of 451koz along a number of local shear
structures. This year Kin focused its exploration efforts on the Helens-Rangoon Fault and the
Helens East Fault (see Figure 2).
Eastern Corridor programs included Diamond, Reverse Circulation and Air Core drilling.
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DIRECTORS’ REPORT
Figure 2. Plan view of Western and Eastern Corridor deposits and geology showing the mineralised
structures and associated deposits
15
DIRECTORS’ REPORT
Diamond Drilling
Kin completed a 5-hole diamond drilling program to evaluate a number of Induced Polarisation
(IP) geophysical anomalies located below the Helens, Helens East, Cardinia Hill and Rangoon
deposits within the Eastern Corridor. The purpose of the program was to test the effectiveness
of IP geophysics to identify high-grade gold mineralisation associated with elevated sulphide
grade (mostly pyrite) which has been logged at the Eastern Corridor deposits in previous
drilling.
The first hole in this program, drill-hole IP22DD001, intersected two zones of laminated quartz
veining, alteration and fine disseminated sulphides within mafic and felsic host rock associated
with the Helens-Rangoon Fault position.
IP22DD002 intersected a zone of mafic and felsic brecciated rock between 103m and 202m
down-hole interpreted to be the margin of a felsic intrusion. Minor laminated quartz veins sit
above (to the east) and below (to the west) of the brecciated zone. The laminated veins contain
narrow zones of higher-grade gold mineralisation such as 0.25m at 11.64g/t from 38.9m.
At 336m and 352m depth, the hole intersected thin (0.5m to 1.5m in-hole) sulphidic sediments,
shale and chert within strongly altered mafic rock, which is interpreted to be the source of the
deeper conductive anomaly.
The confirmation of high-grade gold mineralisation within these drill holes supports the use of
IP geophysical surveys, coupled with detailed surface geological mapping, to accurately map
the position of sulphide-rich gold mineralisation within the Eastern Corridor at Cardinia.
Mineralised intersections – particularly that returned from IP22DD001 at 269.5m downhole
which saw a strong sulphide intersection coincident with a moderate IP anomaly – demonstrate
the success of IP to detect this style of mineralisation.
The diamond drilling program assisted the Company in placing extensional RC drilling at the
southern end of the Rangoon deposit at depths of up to 200m vertical to follow up previous
significant intersections of 32m at 2.98g/t Au from 129m in RN22RC161 and 15m at 3.03g/t
Au from 162m in RN22RC162 from previous RC drilling at Rangoon (See ASX Announcement
on 27 June 2022.)
Reverse Circulation Drilling
The Company completed 2,333m of RC drilling in 2022 and 4,713m of RC drilling in 2023 on
the Eastern Corridor.
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DIRECTORS’ REPORT
Significant new results along the Helens-Rangoon Fault included:
Helens-Rangoon Fault results included:
o 10m at 2.00g/t Au from 58m in RN23RC196
o 5m at 3.84g/t Au from 54m in RN23RC202
o 5m at 3.34g/t Au from 4m in RN23RC198
o 4.63m at 1.60 g/t Au from 215m in RN22CD169
o 4.77m at 1.75g/t Au from 214.5m in RN22CD168
Helens East Fault results included:
o 4m at 5.69g/t Au from 101m in HE22RC053 incl 1m at 18.16 g/t Au from
103m
o 3m at 6.06g/t Au from 127m in HE22RC049
o 5m at 3.23g/t Au from 126m in HE22RC047
o 2m at 4.17g/t Au from 34m in HE22RC050
o 1m at 7.13g/t Au from 100m in HE22RC052
o 21m at 1.90/t Au from 103m in HE23RC055 including 2m at 5.98g/t from
122m
o 5m at 2.60 g/t from 111m in HE23RC059
o 1m at 15.2g/t Au from 63m in HE23RC056
o 4m at 2.71g/t Au from 82m in HE23RC054
o 2m at 3.83g/t Au from 21m in HE23RC057
Collectively these results led to a reinterpretation of the Helens-Rangoon Fault corridor. It was
evident from this reinterpretation that the Helens and Rangoon Faults were part of the same
structure which has at least two mineralised positions containing high-grade shoots of
mineralisation (Figure ). Overall, geological continuity has also been confirmed along the >3km
strike extent of the Helens-Rangoon Fault.
The implications of these results are that the “gap” between the Helens and Rangoon optimised
pits (Figure 4) contains at least two mineralised structures that have been only partially tested
and the area remains a growth opportunity for the Company. These mineralised structures
were included in the recent June 2023 MRE which resulted in growth in both size and grade
of the Helens MRE (121koz at 1.41g/t Au) and Rangoon MRE (121Koz at 1.32g/t Au).
17
DIRECTORS’ REPORT
Figure 3 – Geological Plan of the Helens-Rangoon RC holes, showing collar positions relative to the +5.0
and +10.0g/t Au down-hole intersections for previous drilling, overlain on the mapped geology and
structure.
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DIRECTORS’ REPORT
Figure 4 – Helens-Rangoon Long Section B-B’ looking west.
Figure 5 – Schematic Cross-Section through A-A’ (Figure 3) looking north on 6815600N showing recent
drilling with reported intercepts. Interpreted mineralised structures shown in pink. True width is
approximately 70% of down-hole width.
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DIRECTORS’ REPORT
Figure 6 – Schematic Cross-Section through C-C’ (Figure 3) looking north on 6816100N showing two
mineralised structures at the southern end of Rangoon, interpreted to be part of the larger Helens-
Rangoon shear. True width is approximately 70% of down-hole width.
20
DIRECTORS’ REPORT
Helens East Fault
RC drilling provided evidence for a re-interpretation of the Helens East and Fiona deposits,
resulting in the addition of flatter, west-dipping mineralised structures into the geological model.
These “linking” structures are believed to extend down-dip to the Helens deposit at depth and
sit between the steep west-dipping Faults at both Helens East and Helens.
Figure 7 -Schematic cross-section looking north on 6814600N showing recent drilling with reported
intercepts. Interpreted mineralised structures shown in pink. True width is approximately 90% of down-
hole width.
The results received to date have confirmed the extension of mineralisation below and to the
south of the Fiona deposit and the discovery of new, shallow west-dipping lodes of quartz
sulphide mineralisation that link between the Helens East Fault and the Helens Fault
structures.
21
DIRECTORS’ REPORT
The strike length of the mineralised structure intersected to date at Helens East – inclusive of
the near-surface Fiona deposit – is approximately 1km and remains open in all directions.
Importantly, the Helens East Fault has been mapped at surface for a strike length of
approximately 2km, extending both north and south of the recent drilling.
The Company’s geological interpretation is that the Helens East Fault mineralisation is sourced
from the east-dipping Helens-Rangoon Fault at depth, adding to the attraction of the depth
extensions of both Helens and Helens East.
The Company believes that there are significant growth opportunities along the Helens/Helens
East Corridor, including both for future drilling and to underpin an update to the mineralisation
model reflecting recent changes in the understanding of the mineralisation.
The Helens East Fault appears to be a continuous mineralised position extending over a strike
length of at least 1km and containing a number of high-grade shoots of mineralisation. It
appears to be related to the 3.0km long Helens-Rangoon Fault which, at surface, lies
approximately 200m to the west and is intersected at depth.
Air-core Drilling
The Eastern Corridor, in which 5 deposits have been defined to-date, still contains significant
underexplored areas along strike. To identify possible targets in these areas Kin commenced
a 14,690m AC drilling program across the Eastern Corridor in April 2023.
The drilling, designed to assess the extent of gold mineralisation in the shallow regolith profile
within the previously untested parts of the Eastern Corridor provided coverage, generally at
200m line spacing, over the entirety of the anomalous gold and pathfinder geochemistry within
the corridor. Anomalous gold-in-soil geochemistry is usually associated with a host of
anomalous pathfinder minerals also present in the soils above significant gold mineralisation
and deposits.
Assay results for the AC drilling (reported to the ASX on 1 June 2023, 13 June 2023 and 6 July
2023) supported the following conclusions:
the Helens-Rangoon mineralised corridor extends a further 2km to the north (Figure 8),
up to the Collymore prospect. The results include several significant intercepts which
have defined two parallel mineralised trends at the Collymore-Rangoon corridor,
extending over a strike length of more than 2km.
o The eastern side of the Rangoon-Collymore Trend includes intercepts such as
8m @ 1.68g/t from 48m (CM20AC057), 4m @ 1.31g/t from 56m (CM20AC035),
20m at 1.36g/t from 20m (EL20AC041) and 4m at 3.14g/t from 16m
(CM20AC008). New intercepts reported from the recent drilling included 4m @
2.08g/t from 20m (CR23AC019).
o The western side of the Rangoon-Collymore Trend features further significant
intersections including 4m at 1.55g/t from 24m (EL20AC045), 4m at 1.92g/t
from 24m (EL20AC031) and 3m at 3.40g/t from 84m to EOH (CM20AC005).
New intercepts reported included 9m at 2.10g/t from 36m to EOH (CR23AC053)
and 8m @ 1.84g/t from 0m (CR23AC093).
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DIRECTORS’ REPORT
the presence of a potential “linking structure” between the Rangoon deposit and the
Cardinia Hill deposit (see Figures 8 and 9).
o Flat east-dipping linking structures are believed to be an important feature of
the Eastern Corridor mineralisation and host significant Mineral Resources at
Rangoon (121koz at 1.32g/t).
Felsic volcanic geological units are marked by a significant gravity-low lineament. This
association, coupled with the geological features logged in the AC drill chips, provides
strong evidence that similar mapped felsic rock units with coincident gravity features
across the greater Cardinia area may host mineralised structures and deposits similar
to those identified within the emerging Eastern Corridor area.
Steep-dipping structures are an important feature of the Eastern Corridor mineralisation
and host significant Mineral Resources at Helens (121koz at 1.41g/t), Helens East
(70koz at 1.57g/t) and Cardinia Hill (97koz at 1.38g/t).
Figure 8 – Overview of the 2023 Eastern Corridor AC program at Cardinia. Black solid lines indicate
confirmed mineralised trends, Red dashed lines indicate the interpreted mineralised trends within the
Eastern Corridor, which remains open to the north, south and down-dip. Optimised pit designs from
Announcement 3 July 2023. Note the location of the Collymore, Rangoon, Helens, East Lynne and
Cardinia Hill deposits within the strongly mineralised Eastern Corridor.
23
DIRECTORS’ REPORT
Figure 9 – Location of assays results from recent AC drilling. Black solid lines indicate confirmed
mineralised trends, Red dashed lines indicate the interpreted mineralised trends within the Eastern
Corridor, which remains open to the north, south and down-dip.
24
DIRECTORS’ REPORT
The results in the corridor between Cardinia Hill and Collymore indicate the presence of a
series of mineralised structures which cross-cut the NNW stratigraphy and now span the entire
5km by 2km area of the Eastern Corridor. Mineralised structures are both steep dipping and
flat east dipping “linking structures” between steeply dipping mineralised positions.
Kin believes that there are multiple growth opportunities along the Eastern Corridor area at
Cardinia, including both for future drilling and to underpin further increases to the mineralisation
model reflecting recent changes in the understanding of the mineralisation.
REGIONAL PROPERTIES
Kin owns six separate projects located east and west of the CGP (Figure 10) which the
Company has been advancing over the last five years.
The purpose of the regional exploration program across the gold-based projects is to provide
an initial assessment of the mineralisation style and gold grade and determine which project(s)
have the potential to be a viable stand-alone project or would more naturally provide satellite
feed to nearby mining and processing operations.
The key parameters governing these potential developments is the distance from Cardinia and
other alternative treatment options, project size and mineralisation grade. Other projects in the
portfolio of tenements also offer nickel and base metal sulphide exploration potential and these
are being assessed in parallel with the gold project evaluation.
In the 2022/23 year, follow up ground work has been conducted on Iron King and Murrin Murrin.
Figure 10: Kin Mining’s regional project areas close to Leonora, Western Australia.
25
DIRECTORS’ REPORT
Iron King Project
The Iron King project (100% Kin) is located approximately 45km north-west of Leonora near
Red 5’s King of the Hills 4.1Moz gold mine. Iron King has a similar geological setting to King
of the Hills with gold mineralisation being associated with a significant granodiorite intrusion.
The RC drilling, designed to follow up previous aircore drilling, was conducted predominantly
to the west of the historical Iron King open pit, which produced approximately 20,000 tonnes
at 9.0g/t Au for 5,600oz of gold mined in the 1980’s.
The Company completed nine holes for a total of 822m of RC drilling targeting the Iron King
structure which strikes east-west as it wraps around the Tarmoola anticline. Significant results
include 8m at 1.79g/t Au from 13m in IK22RC005, 2m at 2.74 g/t Au from 54m in IK22RC006
and 2m at 2.86g/t Au from 60m in IK22RC010.The RC drilling results confirmed the presence
of primary gold mineralisation located beneath previous encouraging air-core drilling.
Mineralisation is associated with abundant quartz veining (up to 50%), containing up to 10%
pyrite and surrounding rocks displaying weak to moderate foliation and shear textures,
indicating a structurally-controlled system located between basalt and dolerite units adjacent
to a significant granodiorite intrusion intersected in aircore drilling along strike (refer Figures
11 and 12).
The presence of structurally controlled mineralised positions around the Iron King open pit
containing occasional high gold grades, quartz veining, pyrite and alteration zones in close
proximity to granodiorite intrusions is significant. The similarity to the nearby King of the Hills
style of mineralisation is notable.
Figure 11. RC drill hole locations Iron King target area over mapped geology and aerial photo. Results
greater than 1g/t highlighted. Cross section A-A’
26
DIRECTORS’ REPORT
Figure 12. Cross-section through A-A’ showing the significant broad (red dash) mineralisation down-hole.
The Axford target is located in the north-eastern sector of the Iron King Project, approximately
1km north of the historically mined Iron King open pit.
Previous drilling results at Axford were derived from AC drilling completed in August 2020 (see
ASX announcement 14 January 2021) and October 2021 (see ASX announcement 8 October
2021) and highlighted mineralisation such as 6m at 1.91g/t Au from 40m in AX20AC116 and
4m at 2.08g/t Au from 44m in AX20AC117 targeting extensions to historical workings
previously referred to as the Crystal Ridge prospect.
The Company completed nine holes for an advance of 1,031m of RC drilling (Figure 13).
Significant results included 2m at 1.88g/t Au from 94m in AX22RC004 and 1m at 6.30g/t Au
from 54m in AX22RC007.
Mineralisation at Axford consisted of pyrite and silica altered felsic volcanic rocks, within a
larger interval of black shale. Mineralisation is associated with areas of strong quartz veining
and up to 2% pyrite. Geological logging indicates alteration containing pyrite up to 70% in some
cases. Previous mapping by Hallberg (1999) interpreted a thick Granodiorite unit central to the
prospect. RC drilling has indicated that significant zones of black shale are present and
mapped as the Crystal Ridge Shear Zone on either side of the Granodiorite unit.
27
DIRECTORS’ REPORT
Figure 13. RC drill-hole locations Axford target area over mapped geology and aerial photo. Results
greater than 1g/t highlighted.
Murrin Project
The Murrin Project (100% Kin) is located 45km east of Leonora.
A total of 12 air-core (AC) lines totalling 8,740m was completed in the year.
The program tested soil anomalies identified in the 2021 soil sampling program at a 400m line
spacing as well as testing for strike extensions of areas where previous RC drilling adjacent to
historical surface workings returned significant results. In this area, three mineralised trends
have been identified (Figure 14) which appear to be structural splays off the main N-S trending
shear zone, identified from the regional magnetics.
The air-core program returned significant assay results including:
4m at 0.95g/t Au from 20m (MM22AC037)
4m at 1.52g/t Au from 12m (MM22AC039)
16m at 0.63g/t Au from 32m (MM22AC088)
The drilling provided an initial test (400m line spacing) of auger anomalies delineated in 2021.
Mineralisation was detected up to 800m along strike from historical Reverse Circulation holes
which returned previous significant results, including:
24m at 2.26g/t Au from 64m (MM13RC013)
32m at 1.29g/t Au from 4m (MM13RC017)
7m at 1.42g/t Au from 13m (MM13RC006)
16m at 0.95g/t Au from 0m (MM13RC010)
28
DIRECTORS’ REPORT
Figure 14 – Map of western anomaly showing significant intercepts from the 2022 AC program at Murrin
with historic RC results and interpreted mineralised trends. Italicised captions signify previously
announced results.
29
DIRECTORS’ REPORT
Desdemona Project
Kin’s Desdemona Project has been the subject of two joint ventures during 2022/23 as follows.
Desdemona South Joint Venture
Genesis Minerals (ASX: GMD) provided notification to Kin that it has withdrawn from the
Desdemona South Joint Venture. Under the terms of the JV, Genesis had the right to earn an
initial 60% interest and move to 80% under certain conditions (see ASX announcement, 10
December 2019).
Genesis met the minimum expenditure requirement of $250,000 of exploration prior to
withdrawal.
The Desdemona South project tenements and all exploration information have been returned
and remain 100% owned by Kin.
Desdemona North Joint Venture
Subsequent to 30 June 2023 Kin received a withdrawal notice from Yilgarn Exploration
Ventures Pty Ltd (YEV or Yilgarn, Yilgarn Exploration Ventures is owned 100% by Sensore
Ltd) advising that Yilgarn does not wish to proceed further with the earn-in to the Desdemona
North JV, 40km south west from the CGP.
Under the terms of the JV, Yilgarn had the right to earn an initial 75% interest (see ASX
announcement, 20 December 2019).
Yilgarn met the minimum expenditure requirement of $250,000 of exploration prior to
withdrawal.
The Desdemona North JV tenure sat immediately to the south and west of Kin’s Raeside
project and along strike from Genesis Minerals Gwalia mine. It now returns to 100% ownership
by Kin.
30
DIRECTORS’ REPORT
CORPORATE
Capital Raising
Kin completed two capital raisings during the year raising a total of $20.8 million.
In August 2022, the Company placed 129,900,000 new shares at $0.075 to raise $9.742
million. Kin followed that placement up in September 2022 with a rights issue which raised
$3.937 million from the issue of 52,487,569 new shares.
On 18 January 2023, the Company announced a further rights issue at an issue price of
$0.055. On 14 February, the Company announced it had closed the rights issue having raised
$7.130 million from the issue of 129,629,032 new shares to shareholders.
In January 2023 the Company issued a short-term bond to its major shareholder, Delphi AG
for $3 million to underpin the drilling activities along the Eastern Corridor. The short-term facility
comprised a single ‘bearer bond’ with a face value of A$3 million. The facility had a term of
three months, an interest rate of 8%pa. and was repaid from the proceeds of the rights issue
that closed on 14 February 2023.
Changes to the Board of Directors and Management
In July 2022 Kin appointed experienced gold industry executive and company Director Mr
Rowan Johnston to its Board as a non-executive Director. Mr Johnston was nominated to the
Board by a significant shareholder. Mr Johnston is a Mining Engineer with over 30 years of
experience in the mining and processing industries and is an experienced Company executive
and Director.
Non-Executive Director, Mr Brian Dawes, stepped down from the Board on 24 November 2022.
On 10 July 2023, Kin announced the appointment of Mr Rowan Johnston as Executive
Chairman. This role was created following the resignation of Managing Director Andrew
Munckton. The change became effective on 1 August 2023, with Andrew staying with the
company until 18 August 2023 to ensure an orderly leadership transition.
Mr Joe Graziano stepped aside as Chairman and remains as a Non-Executive Director.
Kin appointed Mr Nicholas Anderson as Executive Director – Business Development to focus
on identifying opportunities for Kin to build additional value for shareholders in the highly
prospective Leonora gold district.
In September 2022 Kin appointed experienced geologist Leah Moore as the Company’s
Exploration Manager. Ms Moore is a geologist with extensive exploration experience in the WA
Goldfields. Her career has included senior roles with some of Australia’s premier gold mining
companies and gold mining districts including Bellevue Gold, CSA Global, Gold Fields and
Barrick Gold, primarily in the Leonora and Laverton districts.
31
DIRECTORS’ REPORT
Investment in Dacian Gold
Kin has acquired 89.275M shares or 7.34% of Dacian’s issued capital. Kin’s major shareholder,
Delphi Group, holds an additional 3.22% of Dacian. These purchases were made on-market.
The Kin Board considers that accumulating an interest in one of the region’s gold producers
and participants in the consolidation of the Leonora mining district is a sensible strategic move
and that the acquisition price of Dacian shares represents good value.
Dacian was the subject of an off-market takeover bid by Genesis Minerals Limited (ASX: GMD)
which was announced on 5 July 2022 and closed on 30 January 2023 with GMD having
acquired ~80% of DCN.
Cash Position
At 30 June 2023, Kin had $4.468 million cash on hand.
Subsequent Events
On 10 July 2023 the Company announced that the Managing Director, Mr Andrew Munckton,
had advised of his resignation which took effect from 31 July 2023. The Company also advised
that it had appointed Mr Rowan Johnston as Executive Chairman from 1 August 2023 and that
Mr Joe Graziano would step aside as Chairman but would remain as a Non-Executive Director.
In July 2023 the Company determined to rationalise its business operations. Along with this
rationalisation came the redundancy of 5 Company staff. Three staff had 1 month notice
periods and two staff have 3 months notice periods. In addition to the payment of wages and
salaries during those notice periods and the settlement of any annual and other leave owing
on termination, the Company will pay a total of $274,274 for severance payments related to
these redundancies.
There have been no other matters or circumstances that have arisen after balance date that
have significantly affected, or may significantly affect, the operations of the Group, the results
of those operations, or the state of affairs of the Group in future financial periods.
Likely developments and expected results
Disclosure of information regarding likely developments in the operations of the Group in future
financial years and the expected results of those operations is likely to result in unreasonable
prejudice to the Group. Therefore, this information has not been presented in this report.
Environmental legislation
The Group is subject to the environmental legislation of the State of Western Australia. The
Group is in compliance with all its environmental obligations at the date of this report.
32
DIRECTORS’ REPORT
Significant changes in state of affairs
There have been no significant changes in the state of affairs of the Group during the financial
year not otherwise disclosed in this report.
Dividends
No dividends have been paid or declared since the start of the financial year and the directors
do not recommend the payment of a dividend in respect of the financial year.
Indemnification and insurance of Directors and Officers
The Company has agreed to indemnify all the directors of the Company for any liabilities to
another person (other than the Company or related body corporate) that may arise from their
position as directors of the Company and its controlled entities, except where the liability arises
out of conduct involving a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract insuring the
directors and officers of the Company and its controlled entities against any liability incurred in
the course of their duties to the extent permitted by the Corporations Act 2001. The contract of
insurance prohibits disclosure of the nature of the liability and the amount of the premium.
33
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
This report, which forms part of the directors’ report, outlines the remuneration arrangements
in place for the key management personnel (“KMP”) of Kin Mining NL for the financial year
ended 30 June 2023. The information provided in this remuneration report has been audited
as required by Section 308(3C) of the Corporations Act 2001.
The remuneration report details the remuneration arrangements for KMP who are defined as
those persons having authority and responsibility for planning, directing and controlling the
major activities of the Company, directly or indirectly, including any director (whether executive
or otherwise) of the Company.
Key Management Personnel
The Directors and other KMP of the Group during or since the end of the financial year were
as follows:
Directors:
R Johnston
G Graziano
A Munckton
H Plaggemars
N Anderson
B Dawes
Executive Chairman (appointed 15 July 2022)
Non-executive Director
Managing Director (resigned 31 July 2023)
Non-executive Director
Non-executive Director
Non-executive Director (resigned 24 November 2022)
Other Key Management:
S Jones
C Moloney
L Moore
G Grayson
Chief Financial Officer and Company Secretary
Mining Manager
Exploration Manager (appointed 19 September 2022)
Exploration Manager (resigned 30 September 2022)
Except as noted, the named persons held their current positions for the whole of the financial
year.
Remuneration philosophy
The performance of the Group depends upon the quality of the directors and executives. The
philosophy of the Group in determining remuneration levels is to:
set competitive remuneration packages to attract and retain high calibre employees;
link executive rewards to shareholder value creation; and
establish appropriate, demanding performance hurdles
for variable executive
remuneration.
In considering the Group’s performance and returns on shareholder wealth, the Board has
regard to the following indicators of performance in respect of the current financial year and
the previous four financial years:
34
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Revenue
2023
146,268
2022
7,714
2021
2020
2019
23,190
15,670
49,133
Net (loss) after tax
(8,710,454)
(11,347,986)
(15,407,840)
(7,242,452)
(14,555,272)
Loss per share
Share price at year-end
(0.82)
0.028
(1.35)
0.067
(2.11)
0.115
(1.30)
0.115
(3.70)
0.052
Remuneration governance
The Company has a remuneration committee. The remuneration committee is made up of all
Directors and operates in accordance with the Nomination and Remuneration Committee
charter.
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 amount of aggregate remuneration sought to be approved by shareholders and the
manner in which it is apportioned amongst directors is reviewed annually. The Board considers
advice from external shareholders as well as the fees paid to non-executive directors of
comparable companies when undertaking the annual review process.
Each director receives a fee for being a director of the Company. As all directors serve on all
committees there is no additional fee for each Board committee on which a director sits.
Executive directors and key management personnel remuneration
The Board is responsible for determining the remuneration policies for the Executive Directors
and other key management personnel. The Board may seek external advice to assist in its
decision making. The Company’s remuneration policy for Executive Directors and key
management personnel is designed to motivate Executive Directors and senior executives to
pursue long term growth and success of the Company within an appropriate control framework
promote superior performance and long term commitment to the Company. The main
principles of the policy when considering remuneration are as follows:
Executive Directors and key management personnel are motivated to pursue long term
growth and success of the Company within an appropriate control framework;
interests of key leadership are aligned with the long-term interests of the Company’s
shareholders; and
there is a clear correlation between performance and remuneration.
The remuneration policy for Executive Directors and other key management personnel has
three main components, fixed remuneration, short term incentives and longer term incentives.
35
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Fixed remuneration
Fixed remuneration is reviewed annually by the Board. The process consists of a review of
relevant comparative remuneration in the market and internally and, where appropriate,
external advice on policies and practices. The Committee has access to external, independent
advice where necessary.
Group’s Financial Performance and Link to Remuneration
The Key Management Personnel’s remuneration has a variable component for short term
incentives and long term incentives to link the achievement of the Company’s operational
targets with the remuneration received by Executive Directors and other key management
charged with meeting those targets.
Variable remuneration - Short-term incentives
The objective of short term incentives is to link the achievement of the Company’s operational
targets with the remuneration received by Executive Directors and other key management
charged with meeting those targets. The total potential short term incentive available is set at
a level so as to provide sufficient incentive to the Executive Directors and other key
management to achieve the operational targets and such that the cost to the Company is
reasonable in the circumstances.
Actual payments granted to Executive Directors and other key management depends on the
extent to which specific operating targets set by the Board are met.
At this time short term incentives in the form of cash bonuses have been included in some key
management personnel contracts as disclosed in this Remuneration Report.
The aggregate of annual payments available to Executive Directors and other key
management of the Company is subject to the approval of the Board.
Variable remuneration - Long-term incentives
The Company has an approved Performance Rights Plan designed to facilitate long term
incentive payments to employees in a manner that aligns this element of remuneration with
the creation of shareholder wealth.
At this time long term incentives in the form of Performance Rights have been included in some
key management personnel contracts as disclosed in this Remuneration Report.
The aggregate of annual payments available to Executive Directors and other key
management of the Company is subject to the approval of the Board.
At the 21 November 2019 Annual General Meeting of the Company the shareholders approved
the issue of up to 4,000,000 Performance Rights to be issued in line with the Performance
Rights Plan as Long Term Incentives for the Managing Director.
36
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
On 17 July 2020, the Company issued of 264,443 new shares to Mr Andrew Munckton
pursuant to the satisfaction of Performance Rights vesting conditions related to the
employment contract as approved by the shareholders at the Company’s AGM on 21
November 2019.
At the 25 November 2020 Annual General Meeting of the Company the shareholders approved
the issue of up to 1,000,000 Performance Rights to be issued in line with the Performance
Rights Plan as Long Term Incentives for the Managing Director.
On 6 August 2021, the Company issued 443,404 new shares to executives pursuant to the
satisfaction of Performance Rights vesting conditions related to their employment contracts
and approved as required by the shareholders at the Company’s AGM on 25 November 2020.
At the 25 November 2021 Annual General Meeting of the Company the shareholders approved
the issue of up to 1,000,000 Performance Rights to be issued in line with the Performance
Rights Plan as Long Term Incentives for the Managing Director.
At the 24 November 2022 Annual General Meeting of the Company the shareholders approved
the issue of up to 2,000,000 Performance Rights to be issued in line with the Performance
Rights Plan as Long Term Incentives for the Managing Director.
No other new shares pursuant to the satisfaction of Performance Rights have been issued to
executives.
The Company has not utilised a remuneration consultant in the current year.
Employment Contracts
Details of employment contracts currently in place with respect to directors and key
management personnel of the Company are as follows:
Rowan Johnston, Executive Chairman
Chairman’s fee of $66,830 per annum.
Executive functions are covered under a services agreement at a rate of $2,000 per day
as required.
Giuseppe (Joe) Paolo Graziano, Non-Executive Director
Director’s fee of $50,123 per annum.
Long term incentives as granted by the Board as part of a grant of benefits to Directors
and subject to shareholder approval.
37
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Hansjoerg Plaggemars, Non-Executive Director
Director’s fee of $50,123 per annum.
Long term incentives as granted by the Board as part of a grant of benefits to Directors
and subject to shareholder approval.
Nicholas Anderson, Executive Director, Business Development
Director’s fee of $50,123 per annum.
Executive functions are covered under a services agreement at a rate of $2,000 per day
as required.
Long term incentives as granted by the Board as part of a grant of benefits to Directors
and subject to shareholder approval.
Leah Moore, Exploration Manager (appointed 19 September 2022)
Base annual remuneration of $225,750 inclusive of statutory superannuation contributions
(Total Fixed Remuneration or TFR).
Annual Short Term Incentives (STI) in the form of a cash payment up to 25% of the TFR.
Annual Long Term Incentives (STI) in the form of equity up to 20% of the TFR.
The appointment will be on an ongoing basis with termination provisions summarised
below:
- The employment agreement may be terminated by either party with three months’
notice.
- The employment agreement may be terminated by Kin Mining without notice for
serious misconduct or other circumstances justifying summary dismissal. In this
case only accrued legal entitlements will be paid.
- If the employee is made redundant the employer will pay an amount of 3 months
on termination.
Stephen Jones, Chief Financial Officer & Company Secretary
Base annual remuneration of $308,494 inclusive of statutory superannuation contributions
(Total Fixed Remuneration or TFR).
On 12 July 2023 the Company advised Mr Jones that the position of full time CFO and
Company Secretary was being made redundant. The termination provisions of the
employment agreement require the Company to provide three months’ notice.
- At the end of the notice period the employer will pay an amount of 6 months
severance.
Chad Moloney, Mining Manager
Base annual remuneration of $308,494 inclusive of statutory superannuation contributions
(Total Fixed Remuneration or TFR).
On 12 July 2023 the Company advised Mr Moloney that the position of Mining Manager
was being made redundant. The termination provisions of the employment agreement
require the Company to provide three months’ notice.
- At the end of the notice period the employer will pay an amount of 3 months
severance.
38
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Remuneration of Key Management Personnel
Short-term employee benefits
Post-employment
benefits
Share-based
payments
Performan
ce Related
3
30 June 2023
Salary & fees
Other 1
Superannuation
Performance
Rights
Total
%
Directors
G Graziano
A Munckton
N Anderson2
H Plaggemars
R Johnston
B Dawes
Other KMP
S Jones
L Moore
C Moloney
G Grayson
$
63,648
327,052
57,736
47,736
41,400
18,000
264,381
151,064
265,908
70,656
$
-
114,512
-
-
-
-
47,743
27,259
47,320
-
$
$
-
25,292
-
-
4,347
1,890
25,292
15,862
25,292
8,380
1,307,581
236,834
106,355
$
63,648
466,856
57,736
47,736
45,747
19,890
337,416
194,185
338,520
79,036
1,650,770
-
-
-
-
-
-
-
-
-
-
-
-
25%
-
-
-
-
14%
-
14%
-
14%
1 Other benefits were paid in accordance with short term incentives in executive employment contracts, approved and paid in
July 2023.
Salary and fees include $10,000 for services as Executive Director Business Development
Percentage of total remuneration.
2
3
Short-term employee benefits
Post-employment
benefits
30 June 2022
Salary & fees
Other1
Superannuation
Directors
G Graziano
B Dawes
A Munckton
N Anderson
H Plaggemars
Other KMP
S Jones
G Grayson
C Moloney
$
61,200
41,727
315,225
45,900
45,900
258,936
228,457
256,432
$
$
-
-
61,622
-
-
25,692
22,854
25,464
-
4,173
23,568
-
-
23,568
22,846
23,568
Share-based
payments
Performance
Rights
$
-
-
-
-
-
-
-
-
Performance
Related
Total
$
61,200
45,900
%2
-
-
400,415
15%
45,900
45,900
308,196
274,157
305,464
-
-
8%
8%
8%
1 Other benefits were paid in accordance with short term incentives in executive employment contracts, approved and paid in
1,253,777
135,632
97,723
- 1,487,132
9%
July 2022.
Percentage of total remuneration.
2
39
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Shareholdings of key management personnel
2023
Balance at
01/07/22
No.
Shares
Purchased
No.
Shares
Disposed of
No.
Shares
Issued
No.
Shares on
Resignation
No.
Balance at
30/06/23
No.
11,600,000
-
(396,075)
-
284,000
2,321,873
1,530,500
1,252,476
641,253
493,374
-
-
181,041
-
-
300,000
373,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
539,862
656,060
251,418
70,482
-
-
-
-
-
11,203,925
284,000
(2,321,873)
-
-
-
-
-
-
-
(181,041)
2,070,362
2,208,536
1,265,671
563,856
-
-
-
18,020,517
957,000
(396,075)
1,517,822
(2,502,914)
17,596,350
Shares
Purchased
No.
Shares
Disposed of
No.
Shares
Issued
No.
Shares on
Resignation
No.
Balance at
30/06/22
No.
Directors
G Graziano
R Johnston
B Dawes
A Munckton
N Anderson
H Plaggemars
Other KMP
S Jones
C Moloney
L Moore
G Grayson
2022
Directors
G Graziano
B Dawes
A Munckton
N Anderson
H Plaggemars
Other KMP
S Jones
G Grayson
C Moloney
Balance at
01/07/21
No.
10,742,463
2,012,289
1,008,441
1,085,478
455,752
361,219
107,000
-
857,537
309,584
204,067
166,998
185,501
65,784
15,000
-
15,772,642
1,804,471
-
-
-
-
-
-
-
-
-
-
-
317,992
-
-
66,371
59,041
-
443,404
-
-
-
-
-
-
-
-
-
11,600,000
2,321,873
1,530,500
1,252,476
641,253
493,374
181,041
-
18,020,517
40
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Option holdings of key management personnel
2023
Directors
G Graziano
B Dawes
A Munckton
N Anderson
H Plaggemars
KMP
S Jones
C Moloney
L Moore
G Grayson
Balance
at 01/07/22
No.
1,500,000
500,000
-
500,000
500,000
-
-
-
-
-
3,000,000
Options
Purchased
No.
Options
Expired
No.
Options
Issued
No.
Options on
Resignation
No.
Balance
at 30/06/23
No.
-
-
-
-
-
-
-
-
-
-
(1,000,000)
-
-
-
-
-
-
-
-
(1,000,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
500,000
500,000
-
500,000
500,000
-
-
-
-
2,000,000
Value of options expired during the year
The value of options expired unexercised during the year was $Nil.
2022
Directors
G Graziano
B Dawes
A Munckton
N Andersen
H Plaggemars
KMP
S Jones
G Grayson
C Moloney
Balance
at 01/07/21
No.
3,500,000
500,000
-
500,000
500,000
-
-
-
5,000,000
Options
Purchased
No.
Options
Expired
No.
Options
Issued
No.
Options on
Resignation
No.
Balance
at 30/06/22
No.
-
-
-
-
-
-
-
-
-
(2,000,000)
-
-
-
-
-
-
-
(2,000,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,500,000
500,000
-
500,000
500,000
-
-
-
3,000,000
Value of options expired during the year
The value of options expired unexercised during the year was $Nil.
41
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Share-based remuneration granted as compensation
No share based remuneration was granted in the current year.
Performance Rights holdings of key management personnel
Four executives have performance rights included in their remuneration structures as
disclosed below.
Mr Andrew Munckton, Mr Stephen Jones, Mrs Leah Moore and Mr Chad Moloney have Annual
Long Term Incentives (LTI) included in their employment contracts.
In November 2020 the shareholders agreed to grant June 2021 LTI’s in the form of
performance rights to Mr Andrew Munckton in three tranches over three years as follows:
Tranche
Tranche 1
Tranche 2
Tranche 3
Performance Period
Maximum allocation of long term incentives
1 July 2020 – 30 June 2021
1 July 2021 – 30 June 2022
1 July 2022 – 30 June 2023
$33,215
$33,215
$33,215
The June 2021 LTI’s have all expired following the passage of 3 years since they were granted.
In November 2021 the shareholders agreed to grant June 2022 LTI’s in the form of
performance rights to Mr Andrew Munckton in three tranches over three years as follows:
Tranche
Tranche 1
Tranche 2
Tranche 3
Performance Period
Maximum allocation of long term incentives
1 July 2021 – 30 June 2022
1 July 2022 – 30 June 2023
1 July 2023 – 30 June 2024
$33,879
$33,879
$33,879
No June 2022 LTI’s have been awarded.
In November 2022 the shareholders agreed to grant June 2023 LTI’s in the form of
performance rights to Mr Andrew Munckton in three tranches over three years as follows:
Tranche
Tranche 1
Tranche 2
Tranche 3
Performance Period
Maximum allocation of long term incentives
1 July 2021 – 30 June 2022
1 July 2022 – 30 June 2023
1 July 2023 – 30 June 2024
$35,234
$35,234
$35,234
No June 2023 LTI’s have been awarded.
Mr Stephen Jones, Mrs Leah Moore and Mr Chad Moloney have Long Term Incentives (LTI)
included in their employment contracts at 20% of their TFR.
42
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
General Details of the Performance Rights
The Performance Rights will, subject to meeting the Performance Measures, vest into shares
in the Company in accordance with the following formula.
$ value of the Performance Rights
Number of shares =
Volume Weighted Average Price (VWAP) of the Company’s shares over the 10 days
on which trading in the Employer’s shares occurred leading up to and including the
day prior to the vesting date
The Performance Rights will vest on satisfaction of the following performance conditions.
The Board will have the unfettered and absolute right to determine and confirm whether vesting
conditions have been met in respect of each and all tranches. In making its determination the
Board will recognise the relevant tranche objective at the end of the applicable vesting period
and have regard to implementation of the Business Plan, as well as other proposals endorsed
by the Board as part of its ongoing review of strategy.
Vesting conditions will be a shareholder aligned measure (Total Shareholder Return – TSR).
Vesting of each Tranche will be measured in absolute terms and relative terms against a
defined peer group approved by the Board which is reflective of companies in the same
industry with similar issues in respect of organisational size, market capitalisation, geography,
life cycle and project complexity as shown in the table below.
Tranche1
Vesting conditions (Tranche Objective)
Weighting
Tranche 1
Tranche 2
Tranche 3
Company’s Absolute TSR
Company’s TSR relative to Peers
Company’s Absolute TSR
Company’s TSR relative to Peers
Company’s Absolute TSR
Company’s TSR relative to Peers
50%
50%
50%
50%
50%
50%
1) The number of Performance Rights to be granted is calculated by dividing each tranche by the VWAP of
the Company’s Shares over the 10 days on which trading in the Company’s Shares occurred leading up
to and including the day prior to the vesting date.
Vesting of Performance Rights
After the end of the current financial year (year to 30 June 2023) the Board determined that
none of the vesting conditions for Tranche 1 of the June 2023 LTI’s, Tranche 2 of the June
2022 LTI’s and Tranche 3 of the June 2021 LTI’s, had been met for the current year. No shares
will be issued for this period.
There were no options exercised during the year.
43
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Share options
At the Annual General Meeting of shareholders on 25 November 2020 the shareholders
approved the issue of up to 1,000,000 performance rights to the Managing Director Mr Andrew
Munckton in settlement of Long Term Incentives in line with the Executive Employment
Agreement for the year ended 30 June 2021. For the year ended 30 June 2021 the Board of
Directors determined that Mr Munckton had met 50% of the performance criteria set for the
first tranche of these performance rights had been met. As a result, the Company issued
119,393 shares to Mr Munckton on 6 August 2021 after Mr Munckton exercised the
performance rights that had vested. After the year end the Board of Directors determined that
Mr Munckton had met none of the performance criteria set for the third tranche of these
performance rights to vest. As a result no further performance rights will vest in relation to
these Long Term Incentives.
At the Annual General Meeting of shareholders on 25 November 2021 the shareholders
approved the issue of up to 1,000,000 performance rights to the Managing Director Mr Andrew
Munckton in settlement of Long Term Incentives in line with the Executive Employment
Agreement for the year ended 30 June 2022. After the year end the Board of Directors
determined that Mr Munckton had met none of the performance criteria set for the second
tranche of these performance rights to vest.
At the Annual General Meeting of shareholders on 24 November 2022 the shareholders
approved the issue of up to 2,000,000 performance rights to the Managing Director Mr Andrew
Munckton in settlement of Long Term Incentives in line with the Executive Employment
Agreement for the year ended 30 June 2022. After the year end the Board of Directors
determined that Mr Munckton had met none of the performance criteria set for the first tranche
of these performance rights to vest. After the year end the Board of Directors determined that
Mr Munckton had met none of the performance criteria set for the first tranche of these
performance rights to vest.
Other executives have Long Term Incentives as part of their remuneration included in their
Executive Employment Agreements for the year ended 30 June 2023. After the year end the
Board of Directors determined that none of the performance criteria set for the first tranche of
these performance rights has been met.
Other transactions with Key Management Personnel (included in remuneration table)
Pathways Corporate Pty Ltd, a company of which Mr. Graziano is a Director, charged the
Group director fees of $63,648 (2022: $61,200), excluding GST, none of which was
outstanding at 30 June 2023 (2022: Nil). No interest was payable or accrued.
44
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Burra Woolshed Investments Pty Ltd, a company of which Mr. Anderson is a Director, charged
the Group director fees of $47,736 (2022: $45,900), excluding GST, none of which was
outstanding at 30 June 2023 (2022: Nil) and provided executive service fees of $10,000 (2022:
Nil), excluding GST, none of which was outstanding at 30 June 2023 (2022: Nil). No interest
was payable or accrued.
Value Consult, a company of which Mr. Plaggemars is a Director, charged the Group director
fees of $47,736 (2022: $45,900), excluding GST, none of which was outstanding at 30 June
2023 (2022: Nil). No interest was payable or accrued.
Shares under option or issued on exercise of options
At the date of this report unissued ordinary shares or interests of the Company under option
are:
Date options granted
Number of shares under
option
Exercise price of options
Expiry date of options
2 December 2020
2,000,000
$0.2433
2 December 2023
There were no ordinary shares issued by the Company during or since the end of the financial
year as a result of the exercise of any options.
END OF REMUNERATION REPORT
45
DIRECTORS’ REPORT
Directors’ Meetings
The number of meetings of directors (including meetings of committees of directors) held
during the year and the number of meetings attended by each director were as follows:
Directors’ meetings
Meetings of Audit
Committee
Meetings of Remuneration
and Nomination Committee
Number of meetings held:
Number of meetings attended:
G Graziano
B Dawes (b)
A Munckton
N Anderson
H Plaggemars
R Johnston (a)
22
22
14
22
21
22
20
2
2
1
2
1
2
2
1
1
1
1
-
1
1
(a) Appointed after the year began on 15 July 2022
(b) Resigned on 24 November 2022 (attended all meetings while a Director)
Proceedings on behalf of the Company
No person has applied for leave of 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.
Non-Audit Services
Details of amounts paid or payable to the auditor for all services provided during the year by
the auditor are outlined in Note 21 to the financial statements. No non-audit services were
provided during the year ended 30 June 2023 (2022: $Nil).
Auditor Independence and Non-Audit Services
Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, to provide
the directors of the Company with an Independence Declaration in relation to the audit of the
financial report. This Independence Declaration is set out on page 49 and forms part of this
directors’ report for the year ended 30 June 2023.
Signed in accordance with a resolution of the directors.
Rowan Johnston
Executive Chairman
Perth, Western Australia
Dated this 21st day of September 2023
46
DIRECTORS’ REPORT
Competent Persons Statement
Mineral Resource Estimation
The information contained in this report relating to Mineral Resource Estimation results for the Cardinia Hill, Bruno
Lewis and Hobby deposit relates to information compiled by Cube consulting (Mr Mike Millad). Mr Millad is a Member
of the Australian Institute of Geoscientists (#5799) and a full time employee of Cube Consulting. Mr Millad has
sufficient experience of relevance to the styles of mineralisation and the types of deposit under consideration, and
to the activities undertaken to qualify as a Competent Person as defined in the 2012 edition of the JORC
“Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves".
The information contained in this report relating to Mineral Resource Estimation results for the remainder of the
deposits including Kyte, Helens, Fiona, Rangoon, Mertons Reward, Mertondale 3-4, Tonto, Mertondale 5, Eclipse,
Quicksilver, Michaelangelo, Leonardo, Forgotten Four and Krang relates to information compiled by Mr Jamie
Logan. Mr Logan is a full-time employee of Palaris Australia Pty Ltd consultants, and a member of the Australian
Institute of Geoscientists. Mr Logan has sufficient experience of relevance to the styles of mineralisation and the
types of deposit under consideration, and to the activities undertaken to qualify as a Competent Person as defined
in the 2012 edition of the JORC “Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves".
Exploration Results
The information contained in this report relating to exploration results relates to information compiled or reviewed by
Leah Moore. Ms Moore is a member of the Australian Institute of Geoscientists and is a full time employee of the
company. Ms Moore has sufficient experience of relevance to the styles of mineralisation and the types of deposit
under consideration, and to the activities undertaken to qualify as a Competent Person as defined in the 2012 edition
of the JORC “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves".
Mr Millad, Mr Logan and Ms Moore consent to the inclusion in this report of the matters based on information in the
form and context in which it appears.
Forward Looking Statements
This report contains “forward-looking information” that is based on the Company’s expectations, estimates and
projections as of the date on which the statements were made. This forward-looking information includes, among
other things, statements with respect to the feasibility and definitive feasibility studies, the Company’s’ business
strategy, plan, development, objectives, performance, outlook, growth, cash flow, projections, targets and
expectations, mineral reserves and resources, results of exploration and operational expenses. Generally, this
forward-looking information can be identified by the use of forward-looking terminology such as ‘outlook’,
‘anticipate’, ‘project’, ‘target’, ‘likely’, ‘believe’, ’estimate’, ‘expect’, ’intend’, ’may’, ’would’, ’could’, ’should’,
’scheduled’, ’will’, ’plan’, ’forecast’, ’evolve’ and similar expressions. Forward- looking information is subject to
known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of
activity, performance or achievements to be materially different from those expressed or implied by such forward-
looking information. Forward-looking information is developed based on assumptions about such risks,
uncertainties and other factors set out herein.
This list is not exhausted of the factors that may affect our forward-looking information. These and other factors
should be considered carefully and readers should not place undue reliance on such forward-looking information.
The Company disclaims any intent or obligations to or revise any forward-looking statements whether as a result of
new information, estimates, or options, future events or results or otherwise, unless required to do so by law.
Statements regarding plans with respect to the Company’s mineral properties may contain forward-looking
statements in relation to future matters that can be only made where the Company has a reasonable basis for
making those statements. This announcement has been prepared in compliance with the JORC Code 2012 Edition
and the current ASX Listing Rules. The Company believes that it has a reasonable basis for making the forward-
looking statements in this announcement, including with respect to any mining of mineralised material, modifying
factors and production targets and financial forecasts.
47
CORPORATE GOVERANCE STATEMENT
The Board is committed to achieving and demonstrating the highest standards of corporate
governance. As such, Kin Mining NL and its controlled entities have adopted the fourth edition
of the Corporate Governance Principles and Recommendations which was released by the
ASX Corporate Governance Council in February 2019 and became effective for financial years
beginning on or after 1 January 2020.
The Group’s Corporate Governance Statement for the financial year ending 30 June 2023 is
dated as at 30 June 2023 and was approved by the Board on 21 September 2023. The
Corporate Governance Statement
is available on Kin Mining NL’s website at
https://www.kinmining.com.au/about/governance/.
48
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of Kin Mining NL for the year ended
30 June 2023, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
21 September 2023
L Di Giallonardo
Partner
49
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
Continuing operations
Revenue:
Interest income
Other income
Gain on sale of assets
Depreciation and amortisation expense
Administration expenses
Consultant expenses
Employee expenses
Finance Costs
Occupancy expenses
Travel expenses
Provision for rehabilitation
Exploration and evaluation costs
Loss before income tax
Income tax benefit
Net loss for the year
Notes
2023
$
2022
$
81,226
65,042
-
(137,335)
(842,942)
(119,490)
(967,286)
(17,162)
(62,086)
(14,948)
-
(6,932,308)
(8,947,287)
-
(8,947,288)
7,714
-
450
(182,400)
(556,507)
(125,200)
(804,063)
-
(67,557)
(12,493)
(1,400,000)
(8,207,930)
(11,347,986)
-
(11,347,986)
11
2
14
12
3
Other comprehensive income, net of income tax
Other comprehensive loss
Other comprehensive loss for the period, net of income
tax
10
(3,568,397)
(3,568,397)
-
-
Total comprehensive loss for the year
(12,515,685)
(11,347,986)
Basic and diluted loss per share (cents per share)
5
(0.84)
(1.35)
The accompanying notes form part of these consolidated financial statements.
50
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
AS AT 30 JUNE 2023
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Total current assets
Non-current assets
Financial assets
Property, plant and equipment
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Total current liabilities
Non-current liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Notes
2023
$
2022
$
7
8
9
10
11
13
14
15
4,468,196
29,904
72,657
4,570,757
7,142,038
10,049,528
17,191,566
21,762,323
3,646,298
67,586
49,882
3,763,766
-
10,170,624
10,170,624
13,934,390
603,071
603,071
596,590
596,590
2,900,000
2,900,000
3,503,071
18,259,252
2,900,000
2,900,000
3,496,590
10,437,800
116,031,688
(1,537,826)
(96,234,610)
18,259,252
95,694,551
2,030,571
(87,287,322)
10,437,800
The accompanying notes form part of these consolidated financial statements.
51
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
Issued capital
$
Accumulated
losses
$
Share based
payments
reserve
$
Financial
asset fair
value
movement
reserve
Balance as at 1 July 2021
Loss for the year
Other comprehensive income:
88,755,629
-
-
(75,939,336)
(11,347,986)
-
2,030,571
-
-
Total comprehensive loss
for the year
Shares issued during the year
Share issue costs
-
6,982,311
(43,389)
(11,347,986)
-
-
-
-
-
Balance as at 30 June 2022
95,694,551
(87,287,322)
2,030,571
Total equity
$
14,846,864
(11,347,986)
-
(11,347,986)
6,982,311
(43,389)
10,437,800
10,437,800
(8,947,288)
-
-
-
-
-
-
-
-
-
Balance as at 1 July 2022
Loss for the year
Other comprehensive loss:
Fair value loss on financial
assets
Total comprehensive loss
for the year
Shares issued during the year
Share issue costs
95,694,551
-
(87,287,322)
(8,947,288)
2,030,571
-
-
-
-
(3,568,397)
(3,568,397)
20,808,665
(471,528)
(8,947,288)
-
-
(3,568,397)
-
-
(12,515,685)
20,808,665
(471,528)
-
-
Balance as at 30 June 2023
116,031,688
(96,234,610)
2,030,571
(3,568,397)
18,259,252
The accompanying notes form part of these consolidated financial statements.
52
CONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
Cash flows from operating activities
Payments to suppliers and employees
Finance costs
Interest received
Net cash (outflow) from operating activities
Cash flows from investing activities
Proceeds from sale of plant and equipment
Payments for property, plant and equipment
Payments for financial assets
Net cash (outflow) from investing activities
Cash flows from financing activities
Proceeds from issue of shares
Payments for share issue costs
Proceeds from borrowings
Repayment of borrowings
Net cash inflow from financing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Notes
2023
$
2022
$
(8,852,629)
(17,162)
81,226
(8,788,565)
(10,712,143)
-
7,715
(10,704,428)
-
(16,239)
(10,710,435)
(10,726,674)
450
(31,943)
-
(31,493)
20,808,665
(471,528)
3,000,000
(3,000,000)
20,337,137
6,982,311
(43,389)
-
-
6,938,922
821,898
3,646,298
4,468,196
(3,796,999)
7,443,297
3,646,298
7
7
7
7
The accompanying notes form part of these consolidated financial statements.
53
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
(a)
These financial statements are general purpose financial statements, which have been prepared in accordance with
the requirements of the Corporations Act 2001, Accounting Standards and Interpretations and comply with other
requirements of the law.
The financial statements comprise the consolidated financial statements for the Group. For the purposes of preparing
the consolidated financial statements, the Company is a for-profit entity.
The accounting policies detailed below have been consistently applied to all of the years presented unless otherwise
stated. The financial statements are for the Group consisting of Kin Mining NL and its subsidiaries.
The financial statements have been prepared on a historical cost basis. Historical cost is based on the fair values
of the consideration given in exchange for goods and services.
The financial statements are presented in Australian dollars.
The Company is a listed public company, incorporated in Australia and operating in Australia. The Group’s principal
activities are gold and base metals exploration.
Adoption of new and revised standards
(b)
Standards and Interpretations applicable to 30 June 2023
In the year ended 30 June 2023, the Directors have reviewed all of the new and revised Standards and
Interpretations issued by the AASB that are relevant to the Group and effective for the current reporting period. As
a result of this review, the Directors have determined that there is no material impact of the new and revised
Standards and Interpretations on the Group and, therefore, no change is necessary to Group accounting policies.
Standards and Interpretations in issue not yet adopted
The Directors have also reviewed all of the new and revised Standards and Interpretations in issue not yet adopted
for the year ended 30 June 2023. As a result of this review the Directors have determined that there is no material
impact of the Standards and Interpretations in issue not yet adopted on the Group and, therefore, no change is
necessary to Group accounting policies.
Statement of compliance
(c)
The financial report was authorised for issue on 21 September 2023.
The financial report complies with Australian Accounting Standards, which include Australian equivalents to
International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report,
comprising the financial statements and notes thereto, complies with International Financial Reporting Standards
(IFRS).
Significant accounting estimates and judgements
(d)
The application of accounting policies requires the use of judgements, estimates and assumptions about carrying
values of assets and liabilities that are not readily apparent from other sources. The estimates and associated
assumptions are based on historical experience and other factors that are considered to be relevant. Actual results
may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are recognised in the
period in which the estimate is revised if it affects only that period, or in the period of the revision and future periods
if the revision affects both current and future periods.
54
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Mine development expenditure carried forward (included in assets in construction in Note 11)
The recoverability of the carrying amount of mine development expenditure carried forward has been reviewed by
the Directors. In conducting the review, the recoverable amount has been assessed by reference to the higher of
“fair value less costs to sell” and “value in use”. In determining value in use, future cash flows are based on:
Estimates of ore reserves and mineral resources for which there is a high degree of confidence of economic
extraction;
Estimated production and sales levels;
Estimate future commodity prices;
Future costs of production;
Future capital expenditure; and/or
Future exchange rates
Variations to expected future cash flows, and timing thereof, could result in significant changes to the impairment
test results, which in turn could impact future financial results.
Mine rehabilitation provision
The Group’s mining and exploration activities are subject to various laws and regulations governing the protection
of the environment. The Group recognises management’s best estimate for asset retirement obligations in the
period in which they are incurred. Actual costs incurred in the future periods could differ materially from the
estimates. Additionally, future changes to environmental laws and regulations, life of mine estimates and discount
rates could affect the carrying amount of this provision.
Share-based payment transactions
The Group measures the cost of equity-settled transactions by reference to the fair value of the equity instruments
at the date at which they are granted. The fair value is determined using a Black and Scholes model, using the
assumptions detailed in Note 16.
(e)
Going concern
Notwithstanding the fact that the Group incurred an operating loss of $8,710,454 for the year ended 30 June 2023,
had net cash outflow from operating activities of $8,788,565 and investing activities of $10,726,674, the directors
are of the opinion that the Group is a going concern for the following reasons.
The Directors anticipate that further equity raisings will be required in the forthcoming year to meet ongoing working
capital and expenditure commitments and are confident of their ability to raise the required funds when required.
Should the equity raisings not be completed, there is a material uncertainty that may cast significant doubt as to
whether the Group will be able to continue as a going concern and that it will be able to realise its assets and
extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.
Basis of consolidation
(f)
The consolidated financial statements incorporate the financial statements of the Company and entities controlled
by the Company and its subsidiaries. Control is achieved when the Company:
has power over the investee;
is exposed, or has rights, to variable returns from its involvement in with the investee; and
has the ability to its power to affect its returns.
The Company reassess whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements listed above.
55
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
When the Company has less than a majority of the voting rights in an investee, it has the power over the investee
when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee
unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company’s
voting rights are sufficient to give it power, including:
the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other
vote holders;
potential voting rights held by the Company, other vote holders or other parties; rights arising from other
contractual arrangements; and
any additional facts and circumstances that indicate that the Company has, or does not have, the current
ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at
previous shareholder meetings.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the
Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of
during the year are included in the consolidated statement of comprehensive income from the date the Company
gains control until the date when the Company ceases to control the subsidiary.
Changes in the Group’s ownership interest in existing subsidiaries
Changes in the Group’s ownership interest in subsidiaries that do not result in the Group losing control over the
subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-
controlling interests are adjusted to reflect the changes in their relative interests in subsidiaries. Any difference
between the amount paid by which the non-controlling interests are adjusted and the fair value of the consideration
paid or received is recognised directly in equity and attributed to the owners of the Company.
When the Group loses control of a subsidiary, a gain or loss is recognised in profit or loss and is calculated as the
difference between:
The aggregate of the fair value of the consideration received and the fair value of any retained interest; and
The previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-
controlling interests.
All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for
as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit and
loss or transferred to another category of equity as specified/permitted by the applicable AASBs). The fair value of
any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on
initial recognition for subsequent accounting under AASB 9, when applicable, the cost on initial recognition of an
investment in an associate or a joint venture.
Revenue recognition
(g)
Revenue is recognised to the extent that control of the good or service has passed and it is probable that the
economic benefits will flow to the Group and the revenue is capable of being reliably measured. The following
specific recognition criteria must also be met before revenue is recognised.
Interest income
Revenue is recognised as the interest accrues (using the effective interest method, which is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial instrument) to the net carrying
amount of the financial asset.
56
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Income tax
(h)
Deferred income tax is provided for on all temporary differences at balance date between the tax base of assets and
liabilities and their carrying amounts for financial reporting purposes.
No deferred income tax will be recognised from the initial recognition of goodwill or of an asset or liability, excluding
a business combination, where there is no effect on accounting or taxable profit or loss. No deferred income tax will
be recognised in respect of temporary differences associated with investments in subsidiaries if the timing of the
reversal of the temporary difference can be controlled and it is probable that the temporary differences will not
reverse in the near future.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or
liability is settled. Deferred tax is credited in the statement of comprehensive income except where it relates to items
that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.
Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax
assets and unused tax losses to the extent that it is probable that future tax profits will be available against which
deductible temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on tax rates (and tax
laws) that have been enacted or substantially enacted at the balance date and the anticipation that the Group will
derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of
deductibility imposed by the law. The carrying amount of deferred tax assets is reviewed at each balance date and
only recognised to the extent that sufficient future assessable income is expected to be obtained. Income taxes
relating to items recognised directly in equity are recognised in equity and not in the statement of comprehensive
income.
Tax consolidation legislation
Kin Mining NL and its 100% owned Australian resident subsidiaries have implemented the tax consolidation
legislation. Current and deferred tax amounts are accounted for in each individual entity as if each entity continued
to act as a taxpayer on its own.
Kin Mining NL recognises its own current and deferred tax amounts and those current tax liabilities, current tax
assets and deferred tax assets arising from unused tax credits and unused tax losses which it has assumed from its
controlled entities within the tax consolidated Group.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as
amounts payable or receivable from or payable to other entities in the Group. Any difference between the amounts
receivable or payable under the tax funding agreement are recognised as a contribution to (or distribution from)
controlled entities in the tax consolidated Group.
Other taxes
(i)
Revenues, expenses and assets are recognised net of the amount of GST except:
when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority,
in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense
item as applicable; and
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or
payables in the statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows
arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority are
classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
taxation authority.
57
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Impairment of non-financial assets
(j)
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any
such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of
the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and
its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are
largely independent of those from other assets of the Group. In such cases the asset is tested for impairment as
part of the cash generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit
exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its
recoverable amount.
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.
Impairment losses relating to continuing operations are recognised in those expense categories consistent with the
function of the impaired asset unless the asset is carried at revalued amount (in which case the impairment loss is
treated as a revaluation decrease).
An assessment is also made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is
estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates
used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case
the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the
carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for
the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at revalued amount,
in which case the reversal is treated as a revaluation increase.
After such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying
amount, less any residual value, on a systematic basis over its remaining useful life.
Cash and cash equivalents
(k)
Cash comprises cash at bank and in hand. Cash equivalents are 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. Bank
overdrafts are shown within borrowings in current liabilities in the statement of financial position.
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents
as defined above, net of outstanding bank overdrafts.
Property, plant and equipment
(l)
Property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment
losses. Such cost includes the cost of replacing parts that are eligible for capitalisation when the cost of replacing
the parts is incurred. Similarly, when each major inspection is performed, its cost is recognised in the carrying amount
of the plant and equipment as a replacement only if it is eligible for capitalisation.
Land and buildings are measured at cost less accumulated depreciation on buildings and less any impairment losses
recognised after the date of the revaluation.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Buildings
Plant and equipment
Motor Vehicles
Computer equipment
Mine Properties (assets in construction)
5 to 25 years
5 to 20 years
5 years
2 to 3 years
amortised over units of
production
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each
financial year end.
58
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Impairment
The carrying values of property, plant and equipment are reviewed for impairment at each balance date, with
recoverable amount being estimated when events or changes in circumstances indicate that the carrying value may
be impaired.
The recoverable amount of property, plant and equipment 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 an asset that does not generate largely independent cash inflows, recoverable amount is determined for the
cash-generating unit to which the asset belongs, unless the asset's value in use can be estimated to approximate
fair value.
An impairment exists when the carrying value of an asset or cash-generating unit exceeds its estimated recoverable
amount. The asset or cash-generating unit is then written down to its recoverable amount.
Impairment losses are recognised in the statement of comprehensive income as a separate line item.
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits
are expected from its use or disposal.
Derecognition and disposal
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is derecognised.
Trade and other receivables
(m)
Trade and other receivables are measured on initial recognition at fair value and are subsequently measured at
amortised cost using the effective interest rate method, less any allowance for impairment. Trade receivables are
generally due for settlement within periods ranging from 15 days to 30 days.
The Group measures the loss allowance for trade and other receivables at an amount equal to lifetime expected
credit loss. The expected credit losses on trade and other receivables are estimated with reference to past default
experience of the debtor and an analysis of the debtor’s current financial position, adjusted for factors that are
specific to the debtor, general economic conditions of the industry in which the debtor operates and an assessment
of both the current and the forecast direction of conditions at the reporting date.
The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial
difficulty and there is no realistic prospect of recovery; for example, when the debtor has been placed under
liquidation or has entered into bankruptcy proceedings, or when the trade receivables are over two years past due,
whichever occurs earlier. The impairment allowance is set equal to the difference between the carrying amount of
the receivable and the present value of estimated future cash flows, discounted at the original effective interest rate.
Where receivables are short-term discounting is not applied in determining the allowance.
The amount of the impairment loss is recognised in the profit or loss with other expenses when a trade receivable
for which an impairment allowance had been recognised becomes uncollectible in subsequent period, it is written
off against the allowance account. Subsequent recoveries of amounts previous written off are credited against other
expenses in the profit or loss.
Trade and other payables
(n)
Trade payables and other payables are carried at amortised cost and represent liabilities for goods and services
provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes
obliged to make future payments in respect of the purchase of these goods and services. Trade and other payables
are presented as current liabilities unless payment is not due within 12 months.
59
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Provisions
(o)
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and
a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating
losses.
When the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the
reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense
relating to any provision is presented in the profit or loss net of any reimbursement. Provisions are measured at the
present value or management’s best estimate of the expenditure required to settle the present obligation at the end
of the reporting period.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects
the risks specific to the liability.
When discounting is used, the increase in the provision due to the passage of time is recognised as an interest
expense.
Restoration and rehabilitation
A provision for restoration and rehabilitation is recognised when there is a present obligation as a result of
development activities undertaken, it is probable that an outflow of economic benefits will be required to settle the
obligation, and the amount of the provision can be measured reliably. The estimated future obligations include the
costs of abandoning sites, removing facilities and restoring the affected areas.
The provision for future restoration costs is the best estimate of the present value of the expenditure required to
settle the restoration obligation at the balance date. Future restoration costs are reviewed annually and any changes
in the estimate are reflected in the present value of the restoration provision at each balance date.
The initial estimate of the restoration and rehabilitation provision is expensed or capitalised if asset recognition
criteria are met. Changes in the estimate of the provision for restoration and rehabilitation are treated in the same
manner. The unwinding of the effect of discounting on the provision is recognised as a finance cost.
(p)
Employee leave benefits
Wages, salaries, annual leave and sick leave
Liabilities accruing to employees in respect of wages and salaries, annual leave, long service leave and sick leave
expected to be settled within 12 months of the balance date are recognised in other payables in respect of
employees’ services up to the balance date. They are measured at the amounts expected to be paid when the
liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and are
measured at the rates paid or payable.
Liabilities accruing to employees in respect of wages and salaries, annual leave, long service leave and sick leave
not expected to be settled within 12 months of the balance date are recognised in non-current other payables in
respect of employees’ services up to the balance date. They are measured as the present value of the estimated
future outflows to be made by the Group.
Long service leave
The liability for long service leave is recognised in the provision for employee benefits and measured as the present
value of expected future payments to be made in respect of services provided by employees up to the balance date.
Consideration is given to expected future wage and salary levels, experience of employee departures, and period
of service. Expected future payments are discounted using market yields at the balance date on national government
bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows.
Issued capital
(q)
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 new business are not included in the cost of acquisition as part of
the purchase consideration.
60
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Earnings/ loss per share
(r)
Basic earnings/loss per share is calculated as net profit/loss attributable to members of the parent, adjusted to
exclude any costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted
average number of ordinary shares, adjusted for any bonus element.
Diluted earnings/loss per share is calculated as net profit/loss attributable to members of the parent, adjusted for:
costs of servicing equity (other than dividends) and preference share dividends;
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been
recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result from the dilution
of potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential
ordinary shares, adjusted for any bonus element.
Exploration and evaluation
(s)
Exploration and evaluation expenditure is expensed to the profit or loss as incurred except in the following
circumstance in which case the expenditure may be capitalised:
The existence of mineral deposit has been established however additional expenditure is required to
determine the technical feasibility and commercial viability of extraction and it is anticipated that future
economic benefits are more likely than not to be generated as a result of the expenditure.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry
forward costs in relation to that area of interest. An impairment exists when the carrying value of expenditure exceeds
its estimated recoverable amount. The area of interest is then written down to its recoverable amount and the
impairment losses are recognised in the statement of comprehensive income.
The directors believe that this policy results in more relevant and reliable information in the financial report.
Exploration and evaluation assets are inherently uncertain and expensing as incurred results in a more transparent
statement of financial position and statement of profit or loss and comprehensive income. All exploration and
evaluation expenditure in the current period has been expensed to the profit or loss.
Parent entity financial information
(t)
The financial information for the parent entity, Kin Mining NL, disclosed in Note 20 has been prepared on the same
basis as the consolidated financial statements, except as set out below.
Investments in subsidiaries, associates and joint venture entities
Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the parent entity’s
financial statements.
Share-based payments
The grant by the Company of options over its equity instruments to the employees of subsidiary undertakings in the
Group is treated as a capital contribution to that subsidiary undertaking. The fair value of employee services
received, measured by reference to the grant date fair value, is recognised over the vesting period as an increase
to investment in subsidiary undertakings, with a corresponding credit to equity.
(u)
Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant
will be received and the Group will comply with all attached conditions.
Government grants relating to costs are deferred and recognised in the statement of profit or loss and other
comprehensive income over the period necessary to match them with the costs that they are intended to
compensate.
Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities
as deferred income and are credited to statement of profit or loss and other comprehensive income on a straight-
line basis over the expected lives of the related assets. Government grants are presented as other income in the
statement of profit or loss and other comprehensive income.
61
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(v)
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost,
which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or
before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except
where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing
the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated
useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset
at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to
impairment or adjusted for any remeasurement of lease liabilities.
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases
with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to
profit or loss as incurred.
(w)
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the
present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit
in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Lease payments
comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index
or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when
the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable
lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are
remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate
used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability
is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying
amount of the right-of-use asset is fully written down.
(x)
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, performance rights or options over shares, that are provided to
employees in exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange
of services, where the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently
determined using either the Binomial or Black-Scholes option pricing model that takes into account the exercise
price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the
underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with
non-vesting conditions that do not determine whether the Group 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 the statement of profit or loss and other comprehensive income for the period is the
cumulative amount calculated at each reporting date less amounts already recognised in previous periods.
62
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying
either the Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on
which the award was granted. The cumulative charge to profit or loss until settlement of the liability is calculated as
follows:
during the vesting period, the liability at each reporting date is the fair value of the award at that date
multiplied by the expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the
liability at the reporting date.
All changes in the liability are recognised in the statement of profit or loss and other comprehensive income. The
ultimate cost of cash-settled transactions is the cash paid to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market
conditions are considered to vest irrespective of whether or not that market condition has been met, provided all
other conditions are satisfied.
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 Group or employee, the failure to satisfy the condition is treated
as a cancellation. If the condition is not within the control of the Group 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.
(y)
Financial assets at fair value through other comprehensive income
Financial assets are recognised when the Group becomes a party to the contractual provisions of the financial
instrument. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset
expire, or when the financial asset and substantially all the risks and rewards are transferred.
The fair value was determined in line with the requirements of AASB 9, which does not allow for measurement at
cost. The fair values of financial assets in this category are determined by reference to active market transactions
or using a valuation technique where no active market exists.
Investments in equity instruments that are not held for trading are eligible for an irrevocable election at inception to
be measured at fair value through other comprehensive income (FVOCI). The Group made the irrevocable election
to account for the investment in unlisted and listed equity securities at fair value through other comprehensive income
(FVOCI).
Under FVOCI, the subsequent movements in fair value are recognised in other comprehensive income and are
never reclassified to profit or loss. Dividends from these investments continue to be recorded as other income within
the profit or loss unless the dividend clearly represents return of capital. Any gains or losses recognised in other
comprehensive income (OCI) are not recycled upon derecognition of the asset.
63
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 2: EXPENSES
Included in the loss for the year are the following items of expense:
Short term rentals
2023
$
2022
$
62,086
67,557
NOTE 3: INCOME TAX
The prima facie income tax expense on pre-tax accounting loss from operations reconciles to the income tax
expense in the financial statements as follows:
Loss before income tax
Income tax expense calculated at 30% (2022: 30%)
Tax effect of amounts which are not deductible/(taxable) in
calculating taxable loss:
Effect of expenses that are not deductible in
determining taxable loss
Effect of unused tax losses and tax offsets not
recognised as deferred tax assets
Income tax benefit reported in the consolidated statement of
profit or loss and other comprehensive income
2023
$
2022
$
(8,947,288)
(11,347,986)
(2,684,186)
(3,404,396)
122,150
43,093
2,562,036
3,361,303
-
-
The tax rate used in the above reconciliation is the corporate tax rate of 30% payable by Australian corporate entities
on taxable profits under Australian tax law. There has been no change in this tax rate since the previous reporting
period.
The Company and its subsidiaries are part of an income tax consolidated group. The tax effect of the Company’s
unused tax losses arising in Australia including the current year losses are $26,375,095 (2022: $23,813,059). These
tax losses are available indefinitely for offset against future taxable profits, subject to the Company passing the
regulatory tests for continued use of the tax losses.
NOTE 4: SEGMENT REPORTING
Operating segments are identified on the basis of internal reports about components of the Group that are reviewed
by the chief operating decision maker (deemed to be the Board of Directors) in order to allocate resources to the
segment and assess its performance. During the period, the Group operated predominantly in one business and
geographical segment being mineral exploration in Australia. Accordingly, under the “management approach”
outlined, only one operating segment has been identified and no further disclosure is required in the notes.
NOTE 5: LOSS PER SHARE
Basic/diluted loss per share
2023
Cents per
share
(0.84)
2022
Cents per
share
(1.35)
The loss and weighted average number of ordinary shares used in the calculation of basic/diluted loss per share is
as follows:
Loss for the year
Weighted average number of ordinary shares for the
purpose of basic/dilutive earnings per share
$
(8,947,288)
$
(11,347,986)
1,065,607,719 841,493,774
The potential ordinary shares that could be dilutive in the future are the options discussed at Note 16.
64
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 6: DIVIDENDS
No dividends have been paid or declared since the start of the financial year and the directors do not recommend
the payment of a dividend in respect of the financial year.
NOTE 7: CASH AND CASH EQUIVALENTS
Cash and cash equivalents as shown in the statement of cash flows is reconciled to the related items in the statement
of financial position as follows:
Cash at bank and on hand
Short-term deposits
2023
$
2022
$
968,196
3,500,000
4,468,196
3,646,298
-
3,646,298
Cash at bank earns interest at floating rates based on daily bank deposit rates.
Short-term deposits are made for varying periods of between one day and 3 months, depending on the immediate
cash requirements of the Group, and earn interest at the respective short-term deposit rates.
Reconciliation of net loss for the year to net cash flows from operating activities
Net loss for the year
Restoration and rehabilitation provision
Depreciation and amortisation of non-current assets
Gain on sale of plant and equipment
(Increase)/decrease in assets:
Trade and other receivables and prepayments
Increase/(decrease) in liabilities:
Trade and other payables
Net cash outflow from operating activities
2023
$
(8,710,454)
-
137,335
-
2022
$
(11,347,986)
1,400,000
182,400
(450)
14,906
85,006
(230,352)
(8,788,565)
(1,023,398)
(10,704,428)
Reconciliation of financing cashflows to financial liabilities.
On 24 January 2023 the Company issued a Bearer Bond to major shareholder, Delphi AG, for $3 million. $2.910M
was received from the issuance of the bond. The Bond carried an interest rate of 8%pa.
Opening balance
Proceeds from borrowings
Repayment of borrowings
Closing balance
2023
$
2022
$
-
3,000,000
(3,000,000)
-
-
-
-
-
On 24 January 2023 the Company issued a Bearer Bond to major shareholder, Delphi AG, for $3 million. $2.910M
was received from the issuance of the bond. The Bond carried an interest rate of 8%pa.
NOTE 8: TRADE AND OTHER RECEIVABLES
Other debtors (GST)
Other debtors
There are no past due amounts at the reporting date.
2023
$
2022
$
29,904
-
29,904
64,758
2,828
67,586
65
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 9: OTHER ASSETS
Current
Prepayment – others
NOTE 10: FINANCIAL ASSETS
Non-Current
Financial assets measured at fair value through other
comprehensive income
2023
$
2022
$
72,657
72,657
49,882
49,882
2023
2022
$
$
7,142,038
7,142,038
-
-
Financial assets are investments in shares in public listed companies and were purchased with cash of
$10,710,435. At 30 June 2023 the investments were marked to market resulting in a fair value loss recognised in
other comprehensive income of $3,568,397.
The fair value of the financial assets is a level 1 input, derived from quoted prices (unadjusted) in active markets for
identical assets.
NOTE 11: PROPERTY, PLANT AND EQUIPMENT
Balance at 1 July 2021
Additions
Disposal
Depreciation charge for the year
Balance at 30 June 2022
Additions
Disposal
Depreciation charge for the year
Balance at 30 June 2023
Cost
Accumulated Depreciation
Balance at 30 June 2023
Freehold
land and
buildings
$
2,899,726
-
-
(44,775)
2,854,951
-
-
(35,950)
2,819,001
3,038,615
219,614
2,819,001
Assets in
construction
Plant and
equipment
Motor Vehicles
Total
$
6,892,144
-
-
-
6,892,144
-
-
-
6,892,144
6,892,144
-
6,892,144
$
313,332
23,914
-
(92,843)
244,403
16,239
-
(65,560)
195,082
782,058
586,976
195,082
$
223,908
-
-
(44,782)
179,126
$
10,329,110
23,914
-
(182,400)
10,170,624
-
-
(35,825)
143,301
16,239
-
(137,335)
10,049,528
400,691
257,390
11,113,508
1,063,980
143,301
10,049,528
The useful life of the assets was estimated as follows for both 2023 and 2022:
Buildings
Plant and equipment
Motor vehicles
Computer equipment
Mine properties (Assets in construction)
5 to 25 years
5 to 20 years
5 years
2 to 3 years
Amortised over units of production
The Cardinia Gold Project (CGP) includes the freehold land and buildings and assets in construction. Assets in
construction comprise early works on the CGP gold processing plant in 2018 and will be depreciated over the life
of the plant once production commences.
66
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 12: EXPLORATION AND EVALUATION EXPENDITURE
Exploration and evaluation phase – at cost
Cumulative exploration and evaluation at beginning of year
Expenditure incurred - cash
Cumulative exploration and evaluation expenditure at the
end of the year
Exploration and evaluation expenditure expensed to the
statement of profit or loss and other comprehensive income
in the current period
Exploration and evaluation expenditure carried forward on
the statement of financial position
NOTE 13: TRADE AND OTHER PAYABLES
Current
Trade payables (i)
Other payables and accrued expenses
Annual leave
2023
2022
$
$
59,021,192
6,932,308
50,813,262
8,207,930
65,953,500
59,021,192
(6,932,308)
(8,207,930)
-
-
2023
$
2022
$
134,302
322,436
146,333
603,071
265,942
211,002
119,646
596,590
(i)
Trade payables are non-interest bearing and are normally settled on 30-day terms.
NOTE 14: PROVISIONS
Non-Current
Restoration and rehabilitation provision
Opening balance
Change in estimate
Closing balance
2023
$
2022
$
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
-
2,900,000
1,500,000
1,400,000
2,900,000
Kin has an obligation for certain rehabilitation activities from historical exploration and mining activities. A closure
cost estimate for these activities has been prepared based on the following:
All historical areas of disturbance have been incorporated in this calculation.
Each historical disturbance has been planned for the type of activities to complete the rehabilitation of that
disturbance.
The unit rates used to estimate the cost of rehabilitation for each type of rehabilitation activity has not changed
from the prior years’ estimate.
The unit rates assume local Leonora operators conduct the activities.
The provision though relating to historical activities is not current as it is anticipated that the rehabilitation will
not occur until throughout and at the end of the proposed mine life. The available resources support a possible
8-year life of mine.
The provision is adequately and appropriately estimated at $2.9M.
Current exploration areas are rehabilitated at the end of the exploration program (within 6 months in accordance
with POW conditions).
The closure costs have been discounted using a 4% (2022:2.5%) discount rate.
67
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 15: ISSUED CAPITAL
2023
$
2022
$
Ordinary shares issued and fully paid
116,031,688
95,694,551
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.
Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.
Movement in ordinary shares on issue
2023
2022
No.
$
No.
$
Movements in ordinary shares
Balance at beginning of year
Rights issues / SPP
Placement of shares
Shares issued on vesting of performance rights
Shares issued to Directors as remuneration
Share issue costs
Balance at end of year
866,133,947
95,694,551 799,192,341 88,755,629
182,116,601
11,066,165
66,498,202
6,982,311
129,900,000
9,742,500
-
-
-
-
-
(471,528)
-
443,404
-
-
-
-
-
(43,389)
1,178,150,548
116,031,688 866,133,947 95,694,551
NOTE 16: OPTIONS AND PERFORMANCE RIGHTS
Movement in options on issue
2023
2022
No.
Weighted
average exercise
price
$
No.
Weighted
average exercise
price
$
Balance at the beginning of the year
Options issued
Options cancelled on expiry (i)
Balance at the end of the year (iv)
6,000,000
0.914
12,000,000
(4,000,000)
2,000,000
1.250
0.243
(6,000,000)
6,000,000
0.957
1.000
0.914
i.
2023 - 4,000,000 Unlisted options with an exercise price of $1.25 expired unexercised on 15 September
2022.
ii. The share options outstanding at the end of the year had an exercise price of $0.2433 and a weighted
average remaining contractual life of 155 days.
68
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 16: OPTIONS AND PERFORMANCE RIGHTS (cont)
Movement in performance rights on issue
Granted performance rights
Mr Andrew Munckton, Mr Stephen Jones, Mrs Leah Moore and Mr Chad Moloney have Annual Long Term
Incentives (LTI) included in their employment contracts. The following performance rights have been granted.
In November 2020 the shareholders agreed to grant June 2021 LTI’s in the form of performance rights to Mr Andrew
Munckton in three tranches over three years as follows:
Tranche
Tranche 1
Tranche 2
Tranche 3
Performance Period
Maximum allocation of long term incentives
1 July 2020 – 30 June 2021
1 July 2021 – 30 June 2022
1 July 2022 – 30 June 2023
$33,215
$33,215
$33,215
In November 2021 the shareholders agreed to grant June 2022 LTI’s in the form of performance rights to Mr Andrew
Munckton in three tranches over three years as follows:
Tranche
Tranche 1
Tranche 2
Tranche 3
Performance Period
Maximum allocation of long term incentives
1 July 2021 – 30 June 2022
1 July 2022 – 30 June 2023
1 July 2023 – 30 June 2024
$33,879
$33,879
$33,879
In November 2022 the shareholders agreed to grant June 2023 LTI’s in the form of performance rights to Mr Andrew
Munckton in three tranches over three years as follows:
Tranche
Tranche 1
Tranche 2
Tranche 3
Performance Period
Maximum allocation of long term incentives
1 July 2022 – 30 June 2023
1 July 2023 – 30 June 2024
1 July 2024 – 30 June 2025
$35,234
$35,234
$35,234
Mr Stephen Jones, Mrs Leah Moore and Mr Chad Moloney have Annual Long Term Incentives (LTI) included in
their employment contracts at 20% of their TFR.
Vested performance rights
The granted Performance Rights will, subject to meeting the Performance Measures, vest into shares in the
Company in accordance with the following formula.
Number of shares =
Volume Weighted Average Price (VWAP) of the Company’s shares over the 10 days
on which trading in the Employer’s shares occurred leading up to and including the
day prior to the vesting date
$ value of the Performance Rights
The Performance Rights will vest on satisfaction of the following performance conditions.
69
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 16: OPTIONS AND PERFORMANCE RIGHTS (cont)
The Board will have the unfettered and absolute right to determine and confirm whether vesting conditions have
been met in respect of each and all tranches. In making its determination the Board will recognise the relevant
tranche objective at the end of the applicable vesting period and have regard to implementation of the Business
Plan, as well as other proposals endorsed by the Board as part of its ongoing review of strategy.
Vesting conditions will be a shareholder aligned measure (Total Shareholder Return – TSR).
Vesting of each Tranche will be measured in absolute terms and relative terms against a defined peer group
approved by the Board which is reflective of companies in the same industry with similar issues in respect of
organisational size, market capitalisation, geography, life cycle and project complexity as shown in the table below.
Tranche1
Vesting conditions (Tranche Objective)
Weighting
Tranche 1
Tranche 2
Tranche 3
Company’s Absolute TSR
Company’s TSR relative to Peers
Company’s Absolute TSR
Company’s TSR relative to Peers
Company’s Absolute TSR
Company’s TSR relative to Peers
50%
50%
50%
50%
50%
50%
1) The number of Performance Rights to be granted is calculated by dividing each tranche by the VWAP of
the Company’s Shares over the 10 days on which trading in the Company’s Shares occurred leading up
to and including the day prior to the vesting date.
2023 Vesting
After the end of the current financial year (year to 30 June 2023) the Board determined that none of the vesting
conditions for any of the outstanding Tranches for LTI’s had been met for the current year and no shares were
issued.
2022 Vesting
After the end of the previous financial year (year to 30 June 2022) the Board determined that none of the vesting
conditions for any of the outstanding Tranches for LTI’s had been met for the previous year and no shares were
issued.
The value of performance rights issued during the relevant periods is determined based on the share price at grant
date times the number of shares that were ultimately issued when the performance rights vested.
2023
2022
No.
Value of
performance
rights
$
No.
Value of
performance
rights
$
Issued to Director
Issued to employees
-
-
-
-
-
-
-
-
70
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 17: FINANCIAL INSTRUMENTS
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while
maximising the return to stakeholders through the optimisation of the debt and equity balance.
The Group’s overall strategy remains unchanged from 2021. The capital structure of the Group consists of debt,
cash and cash equivalents and equity attributable to equity holders of the parent, comprising issued capital, reserves
and retained earnings.
None of the Group’s entities are subject to externally imposed capital requirements.
Operating cash flows are used to maintain and expand operations, as well as to make routine expenditures such as
tax, dividends and general administrative outgoings.
Gearing levels are reviewed by the Board on a regular basis in line with its target gearing ratio, the cost of capital
and the risks associated with each class of capital.
Categories of financial instruments
Financial assets
Cash and cash equivalents
Investment in public listed company
Financial liabilities
Trade and other payables
2023
$
2022
$
4,468,196
7,142,038
11,610,234
3,646,298
-
3,646,298
366,237
366,237
596,590
596,590
The fair values of the Company’s financial assets and liabilities approximate their carrying values.
Financial risk management objectives
The Group is exposed to market risk (including currency risk, fair value interest rate risk and price risk), credit risk,
liquidity risk and cash flow interest rate risk.
The Group seeks to minimise the effect of these risks, where the risk is significant to the performance of the Group,
by using derivative financial instruments to hedge these risk exposures. The use of financial derivatives is governed
by the Group’s policies approved by the board of directors, which provide written principles on foreign exchange
risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the
investment of excess liquidity. Compliance with policies and exposure limits is reviewed by management on a
continuous basis. The Group does not enter into or trade financial instruments, including derivative financial
instruments, for speculative purposes.
Market risk
The Company is not materially impacted by market risk other than share price risk related to future capital raisings.
There has been no other change to the Company’s exposure to market risks or the manner in which it manages and
measures the risk from the previous period.
Interest rate risk management
The Company and the Group are exposed to interest rate risk as entities in the Group borrow funds at both fixed
and floating interest rates. The Group does not consider floating rate borrowings to be material.
Equity price risk
The Company is not exposed to any equity price risk as it has no investments in such assets.
71
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 17: FINANCIAL INSTRUMENTS (continued)
Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to
the Group. The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient
collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group only
transacts with entities that are rated the equivalent of investment grade and above. This information is supplied by
independent rating agencies where available and, if not available, the Group uses publicly available financial
information and its own trading record to rate its major customers. The Group’s exposure and the credit ratings of
its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst
approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by
the risk management committee annually.
The Group does not have any significant credit risk exposure to any single counterparty or any Group of
counterparties having similar characteristics. The credit risk on liquid funds and derivative financial instruments is
limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.
The carrying amount of financial assets recorded in the financial statements, net of any allowance for losses,
represents the Group’s maximum exposure to credit risk without taking account of the value of any collateral
obtained.
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors, who have built an appropriate
liquidity risk management framework for the management of the Group’s short, medium and long-term funding and
liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves, banking
facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching
the maturity profiles of financial assets and liabilities.
Fair value measurement
Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into
three levels of a fair value hierarchy.
Valuation techniques are selected based on the characteristics of each instrument, with the overall objective of
maximising the use of market-based information. The finance team reports directly with the Board. Valuation
processes and fair value changes are discussed among the Board at least every year, in line with the Group’s
reporting dates.
The investment in public listed companies (Note 10) is a Level 1 investment in the fair value hierarchy, as the fair
value is based on quoted prices in an active market.
The following table details the Company’s and the Group’s expected contractual maturity for its non-derivative
financial liabilities. These have been drawn up based on undiscounted contractual maturities of the financial liabilities
based on the earliest date the Group can be required to repay. The tables include both interest and principal cash
flows.
30 June 2023
Trade and other payables
30 June 2022
Trade and other payables
Weighted
average
interest
rate
%
-
-
Less than
1 month
$
603,071
603,071
-
-
596,590
596,590
1 – 3
months
$
3 months
– 1 year
$
1 – 5
years
$
5+ years
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
72
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 18: COMMITMENTS AND CONTINGENCIES
Exploration expenditure commitments
The Group has certain commitments to meet minimum expenditure requirements on the mineral exploration assets
it has an interest in. Outstanding exploration commitments are as follows:
Within one year
After one year but not more than five years
More than five years
2023
$
2022
$
3,424,720
-
-
3,424,720
3,329,660
-
-
3,329,660
Contingencies
The Company has entered into various agreements that include royalty obligations in the event that certain
parameters are achieved. These parameters are production based such that the royalty is only paid when
production is made.
Other than as discussed above the Company has no further contingent liabilities or assets for the years ended 30
June 2023 or 30 June 2022.
NOTE 19: RELATED PARTY DISCLOSURE
The consolidated financial statements include the financial statements of Kin Mining NL and the subsidiaries listed
in the following table.
% Equity interest
Parent Investment
Navigator Mining Pty Ltd
Leonora Gold Plant Holdings Pty
Ltd
Leonora Gold Plant Pty Ltd
Kin East Pty Ltd
Kin West WA Pty Ltd
Kin Tenement Holdings Pty Ltd
Country of
incorporation
Australia
Australia
Australia
Australia
Australia
Australia
2023
%
100
100
100
100
100
100
2022
%
100
100
100
100
100
100
2023
$
55,145,517
2022
$
49,337,469
1,703
11,103,684
5,516,626
7,147,401
1,449
1,137
11,103,394
4,905,181
6,614,377
1,159
Kin Mining NL is the ultimate Australian parent entity and ultimate parent of the Group.
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company,
have been eliminated on consolidation and not disclosed in this note. Details of transactions between the Group and
other related entities are disclosed below.
Other transactions with related parties
Pathways Corporate Pty Ltd, a company of which Mr. Graziano is a Director, charged the Group director fees of
$63,648 (2022: $61,200), excluding GST, none of which was outstanding at 30 June 2023 (2022: Nil). No interest
was payable or accrued.
Burra Woolshed Investments Pty Ltd , a company of which Mr. Anderson is a Director, charged the Group director
and executive fees of $57,736 (2022: $45,900), excluding GST, none of which was outstanding at 30 June 2023
(2022: Nil). No interest was payable or accrued.
Value Consult, a company of which Mr. Plaggemars is a Director, charged the Group director fees of $47,736 (2022:
$45,900), excluding GST, none of which was outstanding at 30 June 2023 (2022: Nil). No interest was payable or
accrued.
73
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 20: PARENT ENTITY DISCLOSURES
Financial position
Assets
Current assets
Financial assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Financial performance
Loss for the year
Other comprehensive loss
Total comprehensive loss
2023
$
2022
$
4,570,757
7,142,038
21,986
11,734,781
3,763,766
-
43,300
3,807,066
603,071
-
603,071
596,589
-
596,589
116,031,688
(1,537,826)
(103,632,152)
11,131,710
95,694,551
2,030,571
(94,514,645)
3,210,477
2023
$
(8,847,507)
(3,568,397)
(12,415,904)
2022
$
(10,184,676)
-
(10,184,676)
The Parent Entity (Kin Mining NL) has no commitments or contingencies other than as disclosed in these Notes to
the Consolidated Financial Statements.
NOTE 21: AUDITOR’S REMUNERATION
The auditor of Kin Mining NL is HLB Mann Judd.
Auditor of the parent entity
Audit or review services
2023
$
2022
$
59,956
59,956
40,068
40,068
NOTE 22: KEY MANAGEMENT PERSONNEL
The aggregate compensation made to key management personnel of the Group is set out below:
Short-term employee benefits
Post-employment benefits
Share based payments
2023
2022
$
1,544,415
106,355
-
1,650,770
$
1,389,409
97,723
-
1,487,132
74
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
NOTE 23: SUBSEQUENT EVENTS
On 10 July 2023 the Company announced that the Managing Director, Mr Andrew Munckton, had advised of his
resignation which took effect from 31 July 2023. The Company also advised that it had appointed Mr Rowan
Johnston as Executive Chairman from 1 August 2023 and that Mr Joe Graziano would step aside as Chairman but
would remain as a Non-Executive Director.
In July 2023 the Company determined to rationalise its business operations. Along with this rationalisation came
the redundancy of 5 Company staff. Three staff had 1 month notice periods and two staff have 3 months notice
periods. In addition to the payment of wages and salaries during those notice periods and the settlement of any
annual and other leave owing on termination, the Company will pay a total of $274,274 for severance payments
related to these redundancies.
There have been no additional matters or circumstances that have arisen after balance date that have significantly
affected, or may significantly affect, the operations of the Group, the results of those operations, or the state of
affairs of the Group in future financial periods.
75
DIRECTORS’ DECLARATION
1.
In the opinion of the directors of Kin Mining NL (the ‘Company’):
a.
the accompanying financial statements and notes are in accordance with the Corporations Act 2001
including:
i.
ii.
giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its
performance for the year then ended; and
complying with Australian Accounting Standards, the Corporations Regulations 2001,
professional reporting requirements and other mandatory requirements.
there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
the financial statements and notes thereto are in accordance with International Financial Reporting
Standards issued by the International Accounting Standards Board.
b.
c.
2.
This declaration has been made after receiving the declarations required to be made to the directors in
accordance with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2023.
This declaration is signed in accordance with a resolution of the board of directors.
Executive Chairman
Dated this 21st day of September 2023
76
INDEPENDENT AUDITOR’S REPORT
To the Members of Kin Mining NL
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Kin Mining NL (“the Company”) and its controlled entities (“the
Group”), which comprises the consolidated statement of financial position as at 30 June 2023, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
(a) giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its financial
performance for the year then ended; and
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (“the Code”) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 1(e) in the financial report, which indicates that a material uncertainty exists that
may cast significant doubt on the Group’s ability to continue as a going concern. Our opinion is not modified
in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have
determined the matters described below to be the key audit matters to be communicated in our report.
77
Key Audit Matter
How our audit addressed the key audit matter
Carrying Value of the Cardinia Gold Project (“CGP”)
Refer to Note 11
The CGP asset includes freehold land and
buildings and assets in construction with a
carrying value of $9.71 million and represents a
significant asset to the Group.
We considered it necessary to assess whether
facts and circumstances existed to suggest that
the carrying amount of the CGP asset may
exceed its recoverable amount.
Our procedures included but were not limited to
the following:
- We obtained an understanding of the key
processes associated with management’s
review of the carrying value of the CGP asset;
- We considered the Directors’ assessment of
potential indicators of impairment;
- We conducted our own assessment of
potential indicators of impairment;
- We enquired with management, reviewed
ASX announcements and reviewed minutes
of Directors’ meetings; and
- We assessed the appropriateness of the
disclosures included in the financial report.
Information Other than the Financial Report and Auditor’s Report Thereon
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2023, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly 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 the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the 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 have no realistic alternative but to do so.
78
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
−
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
− Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
−
− Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the financial report or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that
achieves fair presentation.
−
We communicate with the directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats
or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
79
REPORT ON THE REMUNERATION REPORT
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the directors’ report for the year ended 30 June
2023.
In our opinion, the Remuneration Report of Kin Mining NL for the year ended 30 June 2023 complies with
Section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
21 September 2023
L Di Giallonardo
Partner
80
ADDITIONAL SECURITIES EXCHANGE INFORMATION
1. Shareholding
(a) Distribution schedule and number of holders of equity securities at
1 -1,000
1,001 -
5,000
5,001 –
10,000
10,001 –
100,000
100,001
and over
Fully Paid Ordinary Shares (KIN)
184
165
240
880
Unlisted Options – $0.2433 2/12/23
487
4
Total
1,936
4
The number of holders holding less than a marketable parcel of fully paid ordinary shares at 19 September 2022
is 662.
(b) 20 largest holders of quoted equity securities as at
The names of the twenty largest holders of fully paid ordinary shares (ASX Code: KIN) as at 1 September 2023.
Rank Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Delphi Unternehmensberatung Aktiengesellschaft
St Barbara Limited
2invest Ag
Deutsche Balaton Aktiengesellschaft
Buttonwood Nominees Pty Ltd
BNP Paribas Nominees Pty Ltd
Sparta Ag
Macs Australia Group Pty Ltd
IParks Property Group Pty Ltd
Delphi Unternehmensberatung Aktiengesellschaft
UBS Nominees Pty Ltd
Mostia Dion Nominees Pty Ltd
Giuseppe Paolo Graziano
Palm Beach Nominees Pty Limited
Donnybrook Holdings Pty Ltd
Capricorn Mining Pty Ltd
Mr Luigi Antonio D'adamo + Mr Domenic Leo D'adamo
Mitchell Family Investments (Qld) Pty Ltd
Mr Antonius De Grauw
Curious Commodities Pty Ltd
Number
Percentage
258,845,026
158,125,983
21.97
13.42
99,459,364
78,730,114
43,846,153
33,813,674
32,678,255
29,059,890
17,481,661
16,064,830
14,894,603
9,540,309
8,000,000
7,140,998
6,824,762
6,740,622
6,356,000
6,262,840
5,739,694
5,606,388
8.44
6.68
3.72
2.87
2.77
2.47
1.48
1.36
1.26
0.81
0.68
0.61
0.58
0.57
0.54
0.53
0.49
0.48
Total
845,211,166
71.74
81
ADDITIONAL SECURITIES EXCHANGE INFORMATION
(c) Substantial Shareholders
Holder
1 Delphi Unterehmensberatung Aktiengesellschaft
2 St Barbara Limited
Shares
Percent
485,777,589
41.23%
158,125,983
13.42%
(d) Unquoted Securities
The number of unquoted securities on issue at 4 September 2023:
Unquoted Securities
Number on Issue
Exercise Price
Expiry Date
Unquoted Options
2,000,000
$0.2433
2/12/23
(e) Voting Rights
Each fully paid ordinary share carries the rights of one vote per share.
(f) Restricted Securities
There are no restricted securities under ASX imposed escrow.
(g) On-Market Buy-Back
There is currently no on-market buy-back in place.
82
TENEMENT TABLE
TENEMENT INFORMATION AS REQUIRED BY LISTING RULE 5.3.3
MURRIN MURRIN
50 kms East of Leonora
Ownership
at end of Quarter
66.66%
100%
0%
0%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Tenement ID
M39/279
M39/1121
M39/1136
M39/1141
P39/5112
P39/5113
P39/5176
P39/5177
P39/5178
P39/5179
P39/5180
P39/5861
P39/5862
P39/5863
P39/5864
RANDWICK
45 kms North East of Leonora
Change
During Quarter
Change
During Quarter
Tenement ID
M37/1316
M37/1343
P37/8965
P37/8966
P37/8967
P37/8968
P37/8969
P37/8970
P37/8971
P37/8972
P37/8973
P37/9320
P37/9321
P37/9322
P37/9323
P37/9324
P37/9325
Ownership
at end of Quarter
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
MT FLORA
50 kms East North East of Leonora
Tenement ID
M39/1118
P39/5859
P39/5860
Ownership
at end of Quarter
100%
100%
100%
Change
During Quarter
83
TENEMENT TABLE
DESDEMONA
20 kms South of Leonora Townsite
PIG WELL
25 kms East of Leonora Townsite
Tenement ID
E37/1152
E37/1156
E37/1201
E37/1203
E37/1315
E37/1326
E40/283
E40/323
E40/366
E40/369
M37/1380
M40/330
M40/346
P37/8500
P37/8504
P37/9657
P37/9658
P40/1464
P40/1525
P40/1526
P40/1527
P40/1540
Ownership
at end of Quarter
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
0%
100%
100%
100%
100%
0%
0%
100%
100%
100%
100%
0%
Change
During Quarter
Tenement ID
P37/8948
P37/8949
P37/8950
P37/8951
P37/8952
P37/8953
P37/8954
P37/8955
P37/8956
P37/8957
P37/8958
P37/8959
P37/8960
P37/8961
P37/8962
P37/8963
P37/8964
P37/8974
P37/8975
P37/8976
P37/8977
P37/8978
Change
During Quarter
Ownership
at end of Quarter
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
IRON KING / MT FOURACRE
45 kms North North West of Leonora
Change
During Quarter
Tenement ID
E37/1134
M37/1327
M37/1364
P37/8359
P37/9612
Ownership
at end of Quarter
100%
100%
0%
100%
100%
84
TENEMENT TABLE
Tenement ID
L37/106
L37/127
L37/128
L37/195
L37/196
L37/226
L37/232
L37/241
L37/242
L37/243
L37/244
M37/81
M37/82
M37/86
M37/88
M37/223
M37/227
M37/231
M37/232
M37/233
M37/277
M37/299
M37/300
M37/316
M37/317
M37/422
M37/428
M37/487
M37/594
M37/646
M37/720
M37/1284
M37/1303
M37/1304
M37/1315
M37/1318
M37/1319
M37/1323
M37/1325
M37/1328
M37/1329
M37/1330
M37/1331
M37/1332
M37/1333
M37/1340
M37/1342
M37/1345
M37/1358
P37/8223
P37/8536
P37/8537
P37/8538
P37/8539
P37/8540
P37/8541
P37/8542
P37/8543
Ownership
at end of Quarter
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
0%
0%
100%
100%
100%
100%
100%
100%
0%
100%
100%
100%
100%
100%
100%
100%
100%
100%
CARDINIA / MERTONDALE
35 kms East & North East of Leonora Townsite
Change
During Quarter
Tenement ID
P37/8945
P37/8946
P37/8947
P37/8988
P37/8989
P37/8990
P37/8991
P37/8992
P37/8993
P37/8994
P37/8995
P37/8996
P37/8997
P37/8998
P37/8999
P37/9000
P37/9001
P37/9002
P37/9003
P37/9004
P37/9008
P37/9009
P37/9010
P37/9122
P37/9123
P37/9124
P37/9125
P37/9126
P37/9127
P37/9128
P37/9129
P37/9130
P37/9131
P37/9132
P37/9133
P37/9134
P37/9135
P37/9136
P37/9137
P37/9158
P37/9166
P37/9170
P37/9171
P37/9172
P37/9173
P37/9221
P37/9222
P37/9223
P37/9224
P37/9225
P37/9226
P37/9227
P37/9228
P37/9229
P37/9230
P37/9231
P37/9232
P37/9326
Change
During Quarter
Ownership
at end of Quarter
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
85
TENEMENT TABLE
Tenement ID
Ownership
at end of Quarter
Change
During Quarter
Tenement ID
Ownership
at end of Quarter
Change
During Quarter
CARDINIA / MERTONDALE (Contiued)
35 kms East & North East of Leonora Townsite
P37/8737
P37/8738
P37/8739
P37/8740
P37/8741
P37/8742
P37/8743
P37/8744
P37/8795
P37/8938
P37/8939
P37/8940
P37/8941
P37/8942
P37/8943
P37/8944
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
P37/9327
P37/9328
P37/9411
P37/9509
P37/9510
P37/9511
P37/9541
100%
100%
100%
100%
100%
100%
100%
RAESIDE
8 kms East of Leonora Townsite
Tenement ID
L37/77
L37/125
M37/1298
E37/1402
Ownership
at end of Quarter
100%
100%
100%
100%
Change
During Quarter
86