More annual reports from Legacy Minerals Holdings Limited:
2023 ReportLegacy Minerals
Holdings Limited
ABN 43 650 398 897
Annual Report for the
year ended 30 June 2023
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 1
Corporate Directory
Directors
Website
Dr David Carland – Non-Executive Chairman
www.legacyminerals.com.au
Christopher Byrne – CEO & Managing Director
Securities Exchange
Thomas Wall – Executive Director
Australian Securities Exchange (ASX)
Matthew Wall – Non-Executive Director
ASX Code: LGM
Securities Registry
Automic Pty Ltd
Level 5, 126 Phillip Street
Sydney NSW 2000
Telephone
(within Australia): 1 300 288 664
(outside Australia): +61 2 9698 5414
Auditor
Nexia Sydney Audit Pty Ltd
Level 22, 2 Market Street
Sydney, NSW 2000
Douglas Menzies - Non-Executive Director
Company Secretary and Chief Financial
Officer
Ian Morgan
Registered Office
C/- Benbow & Pike
Chartered Accountants
401/ 54 Miller Street
North Sydney NSW 2060
Telephone
+61 02 9959 3520
Site Office
3/203 Russell Street
Bathurst NSW 2795
Email
info@legacyminerals.com.au
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 2
Table of Contents
Corporate Directory ........................................................................................................................................... 2
Table of Contents .............................................................................................................................................. 3
Chairman’s Letter .............................................................................................................................................. 4
Directors’ Report ............................................................................................................................................... 6
Consolidated Statement of Profit or Loss and Other Comprehensive Income ............................................... 42
Consolidated Statement of Financial Position................................................................................................. 43
Consolidated Statement of Changes in Equity ................................................................................................ 44
Consolidated Statement of Cash Flows ........................................................................................................... 45
Notes to the Financial Statements .................................................................................................................. 46
Directors’ Declaration ...................................................................................................................................... 71
Auditor’s Independence Declaration............................................................................................................... 72
Independent Auditor’s Report ........................................................................................................................ 73
Additional Shareholder Information ............................................................................................................... 77
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 3
Chairman’s Letter
Dear Fellow Shareholder,
I am pleased to introduce the third Annual Report of Legacy Minerals Holdings Limited’s (ASX: LGM, Legacy
Minerals or the Company) to shareholders following a period of strong progress at our portfolio of projects
in the world-class, Lachlan Fold Belt in New South Wales.
The 2023 financial year was highlighted by significant exploration progress at our tenements and the
discovery of a large-scale epithermal system at the Bauloora Project. Legacy Minerals has also identified
and acquired further major projects that fit its discovery strategy, which the Company is confident will
deliver significant upside for shareholders.
Within our portfolio, the Bauloora Epithermal Gold Project has emerged as a standout example of the
application of our discovery model. We have identified the Project’s considerable potential to become the
type of large-scale, low-sulphidation, epithermal project that may deliver a world-class mine.
Through the systematic work completed at Bauloora by our exploration team, the potential of the Project
was increasingly realised. In April, we announced a farm-in and joint venture (JV) agreement with Newmont
Exploration, a subsidiary of Newmont Corporation.
The $15 million discovery-focused JV was a strategic decision to partner with a large mining company and is
now allowing Legacy Minerals to leverage Newmont’s global epithermal expertise towards a major
discovery and will sustain the funding required to advance exploration. Large scale exploration programs
are underway at Bauloora under the JV agreement, and we look forward to reporting on the continued
aggressive exploration here.
In addition, Legacy Minerals continued its strategy of building a portfolio of projects that show
characteristics of a mineralised scale that can potentially host world-class deposits. In April, Legacy
Minerals acquired the Black Range Gold Project (Black Range). Black Range, located 65km from Bauloora, is
another large, under-explored, epithermal system which complements our exploration strategy.
Prior to Legacy Minerals commencing work on Black Range, the 905km2 licence had not had any major
exploration conducted on it since 1992, when Newcrest Mining held it in their NSW portfolio. Black Range
creates another significant discovery opportunity for the Company in the Lachlan Fold Belt.
Further, the acquisition of the Drake Copper-Gold Project exploration licence in July increased Legacy
Minerals’ low-sulphidation, epithermal focused tenure to over 1,500km2, when combined with the
Company’s position at Bauloora and Black Range.
Our pipeline of high-quality projects in the Lachlan Fold Belt also includes the Cobar and Rockley Projects,
as well as the Fontenoy Project which is part of a strategic alliance with artificial intelligence exploration
company, Earth AI. Exploration activities are either already underway or proposed at these Projects in the
2024 financial year.
The markets have remained strong for gold and copper, the commodities on which Legacy Minerals is
focussed. While there has been much ownership consolidation in these sectors, they have done little to
relieve the widening copper supply shortfall in the medium term to support the transition to a low-carbon
future.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 4
On behalf of the Board, we are sincerely grateful to our small but experienced and highly skilled exploration
and management team who have done outstanding work to deliver our significant progress for Legacy
Minerals over the year.
Finally, I would like to thank our shareholders for the loyalty and confidence you continue to place in us.
We particularly thank those who participated in our $1 million placement in December 2022. We remain
committed to maximising the value of our precious cash resources in achieving our objectives.
With the progress at Bauloora setting a strong foundation, Legacy Minerals’ confidence in its discovery
model and its portfolio of projects has grown significantly over the year in review. We are committed to
building on this in the current year and we look forward to reporting on the next phase of Legacy Minerals’
journey.
Yours sincerely,
David J Carland
Non-Executive Chairman
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 5
Directors’ Report
The directors of Legacy Minerals Holdings Limited (ASX: LGM, Company or Legacy Minerals) and its
subsidiaries Legacy Minerals Pty Ltd (LMPL) and Greenpath Minerals Pty Ltd (together referred to as the
Group) present their report, together with the financial statements for the year ended 30 June 2023.
Directors
The Directors of the Company at any time during or since the end of the financial year are:
Dr David Carland (Non-Executive Chairman) PhD (Econometrics), MEc, BEc (Hons), MAICD
Appointed 21 June 2021
David has over 40 years of investment banking and commercial experience in both the private sector and
government. He is the Executive Director of Australian Resources Development Pty Ltd, a company focused
on the provision of specialised advice and assistance on the structuring, financing, and developing of energy
and resource projects. He is the former chairman of Rex Minerals Limited (ASX: RXM), and former non-
executive director of Indophil Resources NL (ASX: IRN) and Polymetals Mining Limited (ASX: PLY). David holds
a PhD (Econometrics), MEc, BEc (Hons1) and is a member of the Australian Institute of Company Directors.
In the last three years, Dr Carland has been a director of Rex Minerals Limited (ASX: RXM), appointed on 12
December 2013 and retired on 31 May 2021; and Aguia Resources Limited (ASX: AGR) appointed on 4
December 2020 and resigned on 15 July 2022.
Christopher Byrne (CEO & Managing Director) BsC, BEngs (Hons), M.PM, MAusIMM, MAICD
Appointed 21 May 2021
Chris has a number of years of experience as an engineer and manager in the mining, infrastructure, and
logistics sectors in NSW and QLD. In the mining and exploration space he has worked in greenfield and
brownfield environments, from early exploration projects through to mine establishment and operations.
Chris’s experience has been focused on large and complex project delivery, project management,
maintenance and operational support. Outside the mining sector, Chris has lead infrastructure teams in the
public sector in the provisioning and delivery of large capital projects. Chris is a Member of AusIMM and the
Australian Institute of Company Directors.
Matthew Wall (Non-Executive Director) CTE, MCILT, MAICD
Appointed 21 May 2021
Matthew is a metals and mining specialist with over 35 years of experience in sales, marketing,
shipping/logistics, trading, capital raising and risk management. He has held senior management roles with
Rio Tinto, EDF Trading and Wood Mackenzie. Matthew has advised a number of small private and junior listed
mining companies in Australia and overseas on capital raisings and market development. Matthew is a
Member of the Australian Institute of Company Directors and the Chartered Institute of Logistics & Transport
(CILT).
In the last three years, Mr Matthew Wall was a director of Allegiance Coal Limited (ASX: AHQ). He was
appointed on 23 February 2022. AHQ was delisted on 28 August 2023.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 6
Directors’ Report (continued)
Thomas Wall (Executive Director and Exploration Manager) BsC (Hons), MPhil (Geology), MAIG
Appointed 21 May 2021
Thomas is a geologist with wide-ranging experience within the resource sector in NSW and WA having
previously held senior roles at Peak Gold Mines, New South Resources and Omya Australia. He has
demonstrated mining and exploration success across a variety of commodities and deposit styles with
particular focus within the Lachlan Fold Belt of NSW. Thomas is a Member of the Australian Institute of
Geoscientists (AIG).
Douglas Menzies (Non-Executive Director) DipBA, GradCertIT, BsC (Hons)
Appointed 21 May 2021
Douglas has over 28 years of experience in the mineral exploration and GIS industries including as a
consultant. Douglas has experience exploring for porphyry gold-copper and epithermal gold mineralisation
in Australia, PNG, Indonesia, Fiji, Laos, Chile, Argentina and Mexico. Douglas is a Member of the Australian
Institute of Geoscientists (AIG). In the last three years, Mr Menzies was a director of Godolphin Resources
Limited (ASX: GRL). He was appointed on 1 May 2020 and resigned on 9 January 2023.
Company Secretary and Chief Financial Officer
Ian Morgan B Bus, M Com Law, Grad Dip App Fin, CA, AGIA, MAICD, F Fin
Appointed 21 May 2021
Ian is a member of Chartered Accountants Australia and New Zealand and the Governance Institute of
Australia, with over 35 years of experience. Ian provides secretarial and advisory services to a range of
companies, including holding the position of Company Secretary and CFO for other listed public companies.
Nature of Operations and Principal Activities
Legacy Minerals is involved in the acquisition and exploration of gold and copper projects in the prospective
Lachlan Fold Belt (LFB) and New England Fold Belt (NEFB) of New South Wales (NSW). The Group wholly owns
2,690km2 of granted and pending exploration licence applications spanning eight projects. The LFB, also
known as the Lachlan Orogen, hosts world-class copper-gold orebodies including the Cadia-Ridgeway,
Northparkes and Cowal Mines.
Legacy Minerals has a straightforward exploration strategy: to systematically define and drill a pipeline of
prospective targets for gold and copper mineralisation. The work conducted on Legacy Minerals’ tenements
has defined a number of compelling drill ready prospects.
Legacy Minerals’ projects contain numerous untested geochemical, geophysical and geological targets. These
afford the Company multiple opportunities for gold and copper discoveries; commodities which the Company
considers having long term favourable fundamentals. Highlights of the projects include:
• drill-ready targets that provide immediate opportunities for gold and copper discoveries;
• projects with a prime position in the LFB targeting porphyry-related Cu-Au, Cobar-type, and low
sulphidation epithermal-style systems; and
• high grade and shallow exploration targets in underexplored or overlooked projects that present an
opportunity for aggressive resource definition.
There were no significant changes in the nature of the activities of the Company during the financial year.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 7
Directors’ Report (continued)
Dividends
There were no dividends paid or declared by the Company to members during or since the end of the financial
year.
Review of Operations and Outlook1
Across eight wholly-owned projects in New South Wales, Legacy Minerals targets numerous styles of
mineralisation however the Company is focused primarily on those that are Cu-Au porphyry related,
epithermal and Cobar-type deposits. The portfolio of projects provides the Company with significant
exposure in the Lachlan Fold Belt, a mineral province that hosts several world-class, tier-one ore bodies, and
the New England Fold Belt, which hosts several major gold, silver and base metal deposits.
BAULOORA PROJECT (EL8994 and EL9464)
The Bauloora Project exhibits one of the largest zones of low-sulphidation, epithermal-style alteration and
mineralisation in NSW. The project hosts numerous targets with shallow, high-grade Au-Ag occurrences
which includes the Mee Mar Prospect with veins out-cropping over 2km and rock samples up to 55.5g/t Au
and 933g/t Ag.
Legacy Minerals has progressively developed the Bauloora Project through systematic exploration work
including geological mapping, rock chip sampling, gradient array IP surveying, detailed ground magnetic
surveying, ASTER data acquisition and interpretation, and widespread soil sampling. The results from this
work strongly support the assessment that there is significant potential for a major, low-sulphidation,
epithermal-style gold-silver discovery at the Bauloora Project.
The Bauloora Project, in the Central Lachlan Fold Belt NSW, is in a zone which is bounded to the west by the
Gilmore Fault Zone and to the east by the Cootamundra Fault. Bauloora contains structural remnants of
Early Silurian dominantly dacitic volcanic rocks and related granites, Siluro-Devonian sediments and felsic
volcanic rocks deposited on a basement of Late Ordovician turbidites, Late Ordovician to Early Silurian
intermediate volcanic rocks and related intrusions and sedimentary rocks.
1 The information in the Directors’ Report that references previously reported exploration results is extracted from
Legacy Minerals Holdings Limited’s ASX Announcements released on the date noted in the body of the text where that
reference appears.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 8
Directors’ Report (continued)
FIGURE 1: REGIONAL SETTING OF THE BAULOORA PROJECT.2
Diamond Drilling Program3
During the reporting period, Legacy Mineral’s exploration activity at Bauloora was highlighted by high-
grade mineralisation assay results from a 10-hole diamond drilling program testing the 2km long gold-silver
bearing low-sulphidation epithermal, Mee Mar Vein. Drilling focused on the Mee Mar prospect, where
outcropping veins have been mapped and high-grade gold and silver rock samples have been collected.
Geological observations indicated all drill holes intersected host rocks that are dominantly variably altered
quartz-eye and feldspar-phyric dacitic crystal lithic tuffs. Sericite and hematite alteration are commonly
observed in the periphery to the main vein trend with sericite increasing in intensity proximal to more
abundantly veined zones. The Mee Mar vein trend is dominated by crustiform-colloform quartz-adularia-
chalcedony veins and breccia (+/- hematite, galena, low-Fe sphalerite and chalcopyrite). Common minor
quartz-carbonate +/- chalcopyrite, galena, low-Fe sphalerite and chlorite veins are also observed proximal
to the main Mee Mar vein trend.
Textural observations and interpretations of the chalcedony-quartz-sulphide veins and breccia intersected
to date indicated that drill holes have tested the lower chalcedonic superzone to upper crustiform-
colloform superzone. This interpretation is based on the observation of abundant chalcedony dominant
over crystalline quartz in association locally with amethyst and floating clast breccia. This is further
2 A supporting list of mineral resource estimates for Major Mineral Resources of NSW is included in Additional
Shareholder Information, on page 81 of the Annual Report for the year ended 30 June 2023.
3 ASX LGM 15 February 2023 Significant new discovery at the Bauloora Epithermal Project.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 9
Directors’ Report (continued)
supported by the widespread elevated levels of Hg (up to 125ppm) and Sb (up to 216ppm) in drill assay
results for most drill holes.
The implication of the high levels of Hg, Sb and Au, when combined with the widths of mineralisation, is
that a potentially wide, high-grade gold bearing boiling zone remains at depth. With increasing depth
towards the crystalline crustiform-colloform superzone, there is also the potential for gold grades to greatly
increase. As such, with these high-grade results returning from the interpreted higher-level zones of the
system, there is great encouragement for further testing at depth targeting the interpreted boiling zone.
The low-sulphidation epithermal veins and breccias of the Mee Mar vein trend are open to the north and
south along strike, down dip and to surface. Structural observations from these holes show veins strike
north to north-north-east and have steeply west dipping (80°-85°) orientations for veins and breccias and,
though true widths are not yet confirmed, they are estimated to be 70% to 100% of the down hole interval.
The best assay intercept was for hole MM008 which returned 6 metres at 3.56g/t Au, 10.95g/t Ag, 0.22%
Cu, 1.89% Pb and 4.58% Zn from 57 metres depth. Textural vein observations to date are interpreted to
indicate drilling has only intercepted a high level in the system above the boiling zone and so it is expected
that the system will develop at depth.
FIGURE 2: MEE MAR PROSPECT SHOWING THE LOCATION OF COMPLETED DIAMOND-CORED DRILL HOLES,
OVER ANTIMONY SOIL SAMPLE RESULTS, WHICH TESTED LOW-SULFIDATION EPITHERMAL AU-
AG BEARING VEINS WITH ANOMALOUS PATHFINDER ELEMENTS.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 10
Directors’ Report (continued)
Surface Geochemistry4
Legacy Minerals announced results from rock samples and soil samples collected across the known
epithermal vein field. 2,714 soil samples were collected across newly defined vein trends and the wider
known epithermal vein field. The soil sampling program was completed across 13km2 of the project on a
50m x 100m grid with localised areas infilled to 25 x 50 metres. These, along with over 1,000 rock samples
were taken at the end of last year as part of the follow up work to the Gradient Array Induced Polarisation
(GA-IP) survey that identified numerous areas of interest and to ground truth historic geological mapping of
quartz veins. The rock sampling results define a ~15km2 footprint of gold mineralisation in rock chips
assaying >0.2g/t Au. Highlights include sample number 5540 grading 55.5g/t Au & 444g/t Ag and sample
number 5547 grading 0.41g/t Au & 904g/t Ag, both located at the Waratah Prospect. The soil sampling
results have delineated extensive anomalies in Au and Ag as well as other pathfinder elements including Sb,
As, Pb, Zn, Cu, Mo and Bi with peak soil results of 668ppb Au, 11.2ppm Ag, 409ppm As, 299ppm Cu,
9.47ppm Mo, 1450ppm Pb, 75.2ppm Sb, 15.4ppm W and 945ppm Zn.
The widespread abundance of adularia within the veins, and the forms of silica vein material and their
textures, all indicate that the veins on the Bauloora Project extend from the paleo-water table to the
boiling level, and through the Crustiform-Colloform Superzone to the lower levels of the Chalcedonic
Superzone (i.e., Buchanan’s Precious Metals Interval). As well as vertical and horizontal zonation of these
textural and depositional types, there has likely been a telescoping of various types of mineralisation at
some locations as seen in the localised higher base metal contents to some portions of the veins. The
implication is that the veins on the Bauloora Project present an excellent opportunity for the discovery of
shallow gold mineralisation.
Recent petrography has confirmed sinter related lithology extends across the anomalous gold area. This
observation, along with elevated levels of Hg, Sb and As, indicate a preserved epithermal system and the
potential for high-grade gold at depth (boiling zone).
Petrography5
Petrographic analysis (the study of the mineral content and the textural relationships within rocks) supports
geological mapping of widespread sinter related lithology over the 27km2 low-sulphidation epithermal vein
field. The presence of widespread sinter over 5.6km strongly supports Legacy Mineral’s interpretation that
the footprint of a large epithermal gold system is preserved at depth at the Bauloora Project. Previous
geochemistry samples from the Breccia Sinter Prospect have returned some of the highest gold results
across the Bauloora Project to date: sample number 2966 returned grades of 32.2g/t Au, 196g/t Ag and
120ppm Sb.
4 ASX LGM 5 December 2022 Bauloora soil results define multiple gold drill targets
5 ASX LGM 8 November 2022 Widespread sinter recognition underpins Bauloora potential
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 11
Directors’ Report (continued)
FIGURE 3: SINTER OUTCROP AT THE BRECCIA SINTER PROSPECT, AND INSERTS SHOWING SINTER RELATED
LITHOLOGY SAMPLE 4241 OF THE BRECCIA SINTER PROSPECT AND SAMPLE 4242 FROM THE
QUARRY PROSPECT. SAMPLES SHOW DOMINANT LIGHT AND DARK GREY CHALCEDONIC-QUARTZ
BANDING WITH YELLOW TO LIGHT BROWN OXIDES AFTER POSSIBLE IRON-CARBONATE.
FIGURE 4: MODEL FOR THE MEE MAR PROSPECT WITH INTERPRETED ZONES OF PRESERVATION BENEATH
SINTER HORIZONS (MODIFIED AFTER BUCHANAN, 1981 AND DONG AND MORRISON, 1995).
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 12
Directors’ Report (continued)
Geophysics6
Analysis of satellite hyperspectral data ASTER (Advanced Spaceborne Thermal Emission and Reflection)
defined a potential district scale hydrothermal alteration footprint across an area of 150km2 with nine high
priority zones typical of that associated with low-sulphidation epithermal mineralisation.
A large, Audio-Magnetotellurics (AMT) geophysical survey comprising 83 line-km has commenced covering
over 10km2 of the Primary Vein Field with the goal of defining resistive ‘feeder structures’ that may host
high-grades of gold and silver. AMT is a geophysical survey technique that has been successful in targeting
low-sulphidation, epithermal Au-Ag deposits around the world and will provide visibility to more than 1km
depth.
Newmont Farm-in and Joint Venture Agreement7
Legacy Minerals entered into a A$15 million farm-in and joint venture agreement with Newmont
Exploration, a subsidiary of the Newmont Corporation, at its Bauloora Project.
Farm-in and Joint Venture Summary
Minimum Commitment
• Drill testing at the Breccia Sinter Prospect by end of 2023.
• Undertake a regional aerial magnetic survey of the tenements by end of 2023.
• A$2 million spend within 24 months.
Phase 1 - $5M earn-in for 51%
• Subject to satisfying the minimum commitments, Newmont may acquire a 51% farm-in interest in the
Bauloora tenements by spending a total of A$5 million within 48 months.
• Undertaking 4,000m of drilling within 48 months.
•
Legacy Minerals will act as operator during the initial earn in period.
Phase 2 - $10M earn-in for 75%
• Subject to completion of Phase 1, Newmont may earn a further 24% farm-in interest in the tenements
by spending an additional A$10 million.
• Undertaking a further 8,000m of drilling within 48 months.
Newmont financing facility and Mining Joint Venture
• A Mining Joint Venture may be formed between the companies upon the decision to mine.
• At the discretion of Legacy Minerals, LGM may enter an agreement to a loan carried through to
production through a Newmont financing facility, allowing Newmont to earn-in up to 80%.
• The loan would be re-paid from Legacy Minerals’ share of any future mining proceeds.
BLACK RANGE PROJECT (EL9466 and EL9589) 8
Following its success at Bauloora, Legacy Minerals commenced a search of NSW for low-sulphidation
systems that presented similar opportunities. From that review, the Black Range Project in the Central
Lachlan Fold Belt, NSW was identified as an underexplored and highly prospective epithermal region that
6 ASX LGM 1 November 2022 Geophysics expands potential size of Bauloora Gold System
7 ASX LGM 5 April 2023 Newmont Farm-in at Bauloora Project
8 ASX LGM 27 April 2023 Exploration underway at new low-sulphidation epithermal, NSW
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 13
Directors’ Report (continued)
has many geological similarities to the Bauloora Project. It is Legacy Mineral’s belief that the Black Range
Project has historically been insufficiently tested for epithermal systems. The Project presents a large
unexplored area hosting low to intermediate sulfidation mineralisation in association with large scale silica-
sericite-pyrite alteration zones (up to 2.5km2).
The Black Range Project covers 905km2 of volcanics prospective for low-sulphidation epithermal
mineralisation. The project is within a late Devonian, early Silurian volcanic system dominated by acid
volcanics. Rhyolite to dacitic volcanism with lavas, breccias and tuffs are widely distributed and associated
with epithermal mineralisation. A 5.2km2 zone of silica-sericite-pyrite alteration has been mapped with low-
sulphidation gold mineralisation intercepted in historical shallow percussion and diamond drilling. The
interpreted low temperature quartz and low-iron sphalerite that is associated with gold mineralisation
indicates the Project may host a large, preserved epithermal environment.
FIGURE 5: BLACK RANGE PROJECT OVERVIEW SHOWING GEOLOGY AND EXPLORATION LICENCES.
Limited Exploration History
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 14
Directors’ Report (continued)
Historical maps detail large extents (4.3km x 1.2km) of mapped “silicification/chert” which remains
unsampled and requires petrography to assess potential for paleo-water table lithology or sinter. In 1992
Newcrest identified Bauloora as the closet known mineralisation signature in the Lachlan Fold Belt from
isotope ratios (ages and origins of rocks) in samples from Sugarbag Hill.
Newcrest Mining conducted the last on-ground exploration in 1992 at the Sugarbag Hill Prospect and, since
then, no further on ground exploration has been conducted at this prospect. Limited drill testing has
occurred across the remainder of the tenement.
District Scale Control
With the inclusion of Black Range into its portfolio, Legacy Minerals has control of 100% of the known
epithermal style mineralisation within the Mountain Creek Volcanics covered by a 905km2 licence and
licence application. This area contains over 30km of underexplored strike between known epithermal
occurrences including the high priority targets of Sugarbag Hill Prospect and Mylora Prospect.
High-Grade Rock Chips and Encouraging Intercepts
Results from the historical drilling at the Sugarbag Hill demonstrates need for deeper testing with historical
results:
FRC-1: 30m at 0.3g/t Au from surface
FRC-21: 7m at 0.39g/t Au, 97.1ppm Mo and 18.1ppm Bi from 20m
FRC-24: 4m at 0.77g/t Au from 90m
Regional historical rock chip results returned up to 2.8g/t Au (Mt Mylora Mine) and 3.6g/t Au (Winooka Reef).
Results from historical soil geochemical sampling at the Sugarbag Hill Prospect have defined a ~2.5km2
footprint of Au, As, Pb and Zn anomalism (soil samples assaying >25ppb Au and as high as 550ppb Au).
Planned Exploration
Legacy Minerals plans to progressively develop the Black Range Project through systematic exploration
work including data compilation and reprocessing, geological mapping, rock chip sampling and petrography
before assessing the benefits of conducting further geophysical or geochemical surveys including drill
campaigns.
The initial assessment from the literature review and data compilation from this work, supports the
assessment that there is significant potential for a major low sulfidation epithermal-style gold deposit at
the Black Range Project.
Results from historical soil geochemical sampling at the Sugarbag Hill Prospect have defined a 2.5 km2
footprint of Au, As, Pb and Zn anomalism (soil samples assaying >25ppb Au and as high as 550ppb Au).
These results, in conjunction with geological observations of widespread silicification and chert, and
interpreted shallow level mineralisation, suggest we are at high levels in this low-sulfidation epithermal
gold system. These systems are typically shallowly emplaced, and this preservation factor is critical when
considering the opportunity for a district scale, preserved, gold bearing low-sulfidation epithermal-style
system.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 15
Directors’ Report (continued)
FIGURE 6: AERIAL VIEW LOOKING EAST ACROSS THE SUGARBAG HILL PROSPECT HOSTED WITHIN THE MOUNTAIN
CREEK VOLCANICS, BLACK RANGE PROJECT.
FONTENOY PROJECT (EL8995) 9
Legacy Minerals announced the commencement of field work by its Alliance Partner, Earth AI, at Fontenoy
in search of critical and battery metals including Copper-Nickel-Cobalt-Platinum-Gold. Fontenoy has a
known mineralised strike of at least 8km with historical drilling having intercepted widespread
disseminated and veined copper-gold mineralisation from surface.
The southern 3.5km extent of this zone is covered by shallow quaternary cover which had limited drill
testing that resulted in encouraging Au-Cu intercepts. Significant drill intersects included: 79m at 0.27% Cu
from 1.5m, 22m at 0.34% Cu and 0.67g/t Au, and 58m at 0.2% Cu from 2m.
Preliminary work includes the identification of oxide copper mineralisation interpreted as malachite and
chalcocite from undrilled historical workings. Upon completion of the reconnaissance field work, a revised
targeting assessment will be conducted prior to final field checking and drilling.
9 ASX LGM 13 December 2022 Earth AI fieldwork underway at Fontenoy Copper-Gold Project
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 16
Directors’ Report (continued)
FIGURE 7: FONTENOY PROJECT EXPLORATION AREAS AND HIGHLIGHT DRILL INTERSECTIONS.
Earth AI Strategic Alliance
In May 2022, Legacy Minerals signed an Exploration Alliance Agreement (Agreement) and a Minerals
Royalty Deed with Earth AI covering its Fontenoy (EL8995) and Mulholland tenements (EL9330) (Strategic
Alliance). The Strategic Alliance allows for a co-funding model, whereby Earth AI will contribute up to
$4.5M AUD of total exploration costs across the tenements over a two-year period, with an option to
extend for a further year. Subject to a qualifying drilling intersection (as defined within the Alliance
Agreement) being subsequently identified on any tenement, Earth AI Pty Ltd is entitled to a net smelter
return royalty (Royalty) up to 3% in connection with a to be agreed upon area surrounding the discovery
(Area of Interest).
Legacy Minerals is under no obligation to explore, develop or mine any of the Tenements during the period
of the Strategic Alliance. However, if after the second anniversary of the Royalty Trigger Date, no mineral
resource has been defined and the combined annual exploration development and mining expenditure in
the Area of Interest falls below $250,000 USD, Earth AI will have the option to assume operational control
and buy all the Royalty Tenements that overlap the single Area of Interest under the Minerals Royalty
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 17
Directors’ Report (continued)
Deed, for a cash purchase price equal to $1,000,000 USD plus a 2% net smelter royalty granted to Legacy
Minerals.
Legacy Minerals will retain 100% ownership over the tenements covered under the Agreement.
Earth AI Exploration Strategy
Earth AI is a vertically integrated metals exploration company based in San Francisco, USA. The Company’s
NSW based operations are at Young, 15km from Legacy Minerals’ Fontenoy tenement. Earth AI plans to
implement its artificial intelligence deposit targeting system to generate drill targets across the Company’s
tenements. Once identified, Earth AI will follow up with on ground geophysical and geochemical work
before drill testing.
FIGURE 8: EARTH AI EXPLORATION MODEL AND DRILLING CONFIGURATION.
Surface Geochemical Program
Preliminary results delivered from field work being carried out at Fontenoy by Earth AI have confirmed
Nickel-Iron Sulphide and PGE mineralisation through petrography and scanning electron microscopy (SEM)
in fresh rock (Sample EFO2212043R):
12ppb Pt, 11ppb Pd, 286ppm Cu and 662ppm Ni
This sample contained anomalous PGEs supporting a magmatic origin for the mineralisation.
Other highlight reconnaissance rock chip assay results have returned up to:
0.80% Nickel (Laterite), 8.30% Copper, 585ppm Cobalt, 0.21g/t Platinum, 0.34g/t Palladium and 0.28g/t Gold.
Ni-laterites have been previously identified at Fontenoy and were the focus of previous nickel-cobalt
exploration drilling. These residual deposits were thought to have been formed as a results of serpentinite
weathering solely and as such the exploration for nickel-iron sulphides did not occur. The recognition of Ni-
sulphides in association with copper and PGEs however highlights the prospectivity of the Fontenoy Project
for Ni-Fe sulphide deposits and presents an opportunity for the Company to be the first to apply
exploration methods and systems thinking for this style of mineralisation.
Further to this encouraging observation, the field team is also recognising complexities and zonation
patterns within the mafic intrusive units that have previously been unrecognised in the mapped Ordovician
Moonbilleen gabbro, around which Ni-sulphides have been observed. Understanding the zonation within
these mafic intrusive complexes is a key factor in focusing drill targeting for nickel sulphides and other
battery metal elements such as scandium and cobalt as seen at the nearby Sunrise Project (ASX: SRL).
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 18
Directors’ Report (continued)
FIGURE 9: EARTH AI FIELD TEAM CONDUCTING SOIL SAMPLING AT FONTENOY (LEFT), AND ROCK SAMPLE 5996 (TOP
RIGHT), AND NICKEL SULPHIDES (PN - PENTLANDITE), COPPER SULPHIDES (CPY - CHALCOPYRITE) CONFIRMED
IN SERPENTINITE/GABBRO THROUGH SEM AND PETROGRAPHIC ANALYSIS (BOTTOM RIGHT).
About Fontenoy
The Fontenoy Project contains several prospective units within the Project area which include the Yandilla
Volcanics, Warrenoy Diorite and ultramafic rocks of the Wambidgee Serpentinite for copper-nickel and
cobalt. Stratabound manganese mineralisation occurs in the Cambro-Ordovician Jindalee Group while the
Wambidgee Serpentinite contains several chromite deposits, and this differentiated ultramafic sequence is
prospective for both chromite and platinum group element (PGE) mineralisation.
The Project has a significant amount of surface geochemical work completed with extensive soil sampling
focused on the Yandilla Volcanics and a bulk cyanide leach stream sediment survey conducted across the
tenement. Rock chip sampling has also been conducted across the tenement for Mn and Talc assessment
and for Au-Cu mineralisation in the Yandilla Volcanics and Warrego Diorite. This work defined an 8km long
Cu and Au soil anomaly centred over the Yandilla Volcanics with rock chips grading up to 0.73g/t Au and
0.47% Cu.
A dipole-dipole induced polarisation survey has been completed at 200m and 800m line spacing along the
length of the Yandilla Volcanics. Further to this, ground electromagnetic (EM) survey traverses and airborne
EM at 150m line spacing has also been completed by earlier explorers. Induced polarisation (IP) surveying
highlighted several known zones of Cu and Au mineralisation, with several anomalies yet to be drilled.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 19
Directors’ Report (continued)
A total of 16 diamond core holes for 4,014 metres and an additional 28 reverse circulation percussion (RC)
drill holes for 1,667 metres were historically completed. Drilling has confirmed soil anomalism is associated
with broad Au-Cu mineralisation intersected along the entire 8km strike and provides encouragement for
several drill ready target zones.
Historical Drill intercepts at the Project include:
1-2-10D:
79m at 0.27% Cu
from 1.5m
WRC9:
22m at 0.67g/t Au and 0.34% Cu
from 20m
WRC21:
24m at 0.17g/t Au and 0.24% Cu
from surface
WRC3:
26m at 0.44g/t Au and 0.11% Cu
from surface
1-2-15D:
14m at 0.72g/t Au and 0.37% Cu
from 108m
The large amount of historical data has provided Earth AI with significant base of information to utilise in
their artificial intelligence and machine learning software for the delivery of compelling drill targets in a
data rich environment.
COBAR PROJECT (EL9511) 10
The Cobar Project covers 232km2 in a world-class exploration and mining jurisdiction. The project has all the
right ingredients for Cobar-Type mineralisation: structural complexity, geochemical anomalies and
geophysical anomalies with very limited historical drilling. The project contains undrilled targets
surrounded by operating and historical Au and Cu mines with proximity to infrastructure and skilled mining
workforce. Numerous geophysical anomalies, including late time AEM conductors and magnetic targets
coincident with anomalous geochemistry, remain untested. Elevated gold has been reported in regionally
significant surface lag sample results up to 1.5g/t Au and 0.43g/t Au.
Geochemistry and Geophysics
Work across the Cobar tenement continued with understanding the modelled the results of completed
geophysical programs including the AEM and ground magnetics at the Woggle anomaly and the preliminary
pXRF test results of widespread soil sampling on the project. The completion of the soil programs which are
nearing completion across the Woggle, Kidman, Yarrawonga and Hillview Prospect areas were delayed
while the Company focused its effort on realising value in the Bauloora tenement.
10 ASX LGM 18 November 2021 Cobar magnetic survey highlights priority targets
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 20
Directors’ Report (continued)
FIGURE 10: COBAR SOIL SAMPLING GEOCHEMISTRY AND GEOPHYSICS CAMPAIGNS.
ROCKLEY PROJECT (EL8296) 11
The Rockley Project is situated within the highly prospective Ordovician Macquarie Arc, which hosts the
Cadia Valley, Northparkes and Cowal orebodies and is coincident within the Lachlan Transverse Zone.
Assessment by the Geological Survey of NSW found that the Rockley Project covers some of the most
prospective ground for porphyry-related Cu-Au mineralisation in the Rockley-Gulgong volcanics.
11 ASX LGM 27 July 2022 Geophysics Defines Porphyry Copper-Gold Targets at Rockley
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 21
Directors’ Report (continued)
The Company has commenced a soil sampling program in the northern tenement area that will provide
systematic geochemical sampling analysis over regions of interest (ROI 1 to 4) recognised by GeoDiscovery
in the detailed magnetic and radiometric survey flown last year.
FIGURE 11: ROCKLEY GEOPHYSICS SHOWING NORTHERN TENEMENT AREA AND REGIONS OF INTEREST.
Historical workings and geochemistry were overlain with identified zones of interesting magnetic and
radiometric signatures, remanent magnetised features and discrete (circular) magnetic features. The
identified areas of interest include:
ROI 1: region of elevated Potassium (with respect to Thorium) located along a NW magnetic trend.
Interestingly, the magnetic signature appears depressed (possible sign of alteration).
ROI 2: diffuse magnetic response located along NW structure. Some regions of elevated topography.
ROI 3: area of remanence located on NW trend (weak magnetic response) associated with elevated
topography.
ROI 4: modelling indicates a zone of highest magnetic susceptibilities at around 50m below surface. Some
small regions of elevated topography within zone.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 22
Directors’ Report (continued)
HARDEN PROJECT (EL8809 and EL9257) 12
The Harden Project encompasses several historical high-grade gold mines that were the largest hard-rock
mines in a mineral district that produced >460,000oz Au from alluvial and hard rock mining. The mines
produced a combined total of ~75,000oz Au at an average grade of 28.6g/t Au – all before 1919. There are
two main strikes of mine in the tenement area: the historical Harden Gold Mine corridor and McMahons
Reef Gold Mine corridor.
FIGURE 12: OVERVIEW OF THE HARDEN EXPLORATION LICENCES.
Exploration activities were focused on the interpretation of the diamond and RC drilling results received in
the previous year and the interpretation of geophysics, in particular the DD-IP survey completed by the
Company. An assessment of follow up work both near the known prospects and regionally remains
ongoing. The outcomes of this assessment will feed directly into the proposed future work program on the
tenement including but not limited to, drilling, geophysics and surface geochemistry.
12 ASX LGM 3 November 2021 Assays returned for Maiden drill campaign at Harden
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 23
Directors’ Report (continued)
MULHOLLAND PROJECT13
In December 2021, Legacy Minerals was granted the 194km2 Mulholland tenement for a period of three
years. Mulholland is 35km south-east of Bourke, NSW, on the boundary of the Lachlan and Thompson
Orogens, in a terrain which has demonstrable prospectivity for large and high-grade skarn mineralisation
including tin, copper, tungsten, nickel, gold and zinc.
Mulholland includes known skarns and untested magnetic and geochemical anomalies suspected of being
related to Sn-Cu-W skarn and Ni bearing serpentinites. The Project covers several significant drill ready Ni
and Sn-W prospects, in a prospective land position 500m south-east of Sky Metal’s (ASX: SKY) emerging Sn-
Cu 3KEL prospect and less than 3km from the Sn-Cu Doradilla Prospect.
Legacy Minerals advised on 14 June 2023 of the successful sale of its non-core asset, the Mulholland
Tenement (EL9330) to Karawara Minerals Limited. The divestment of Mulholland allows Legacy Minerals to
tighten its focus on its other gold and copper projects, most notably the Black Range and Bauloora
Epithermal Projects.
The total sale consideration is $305,000 representing:
• $105,000 in cash
o $30,000 will be paid upon the completion date; and
o $75,000 upon the successful admission by the Australian Securities Exchange (“ASX”) of
Karawara Minerals Limited (“Karawara”); and
• $200,000 for A$ 0.10 per ordinary fully paid share (“Share”) of Karawara’s Shares to be issued within
seven days of the completion date.
The Company’s $305,000 sale consideration took into account an independent consultant’s evaluation of
the Mulholland Tenement’s value, the alignment of the Mulholland Tenement within the Legacy Minerals
portfolio, and Karawara’s minimum expenditure commitments required to keep the Mulholland Tenement
in good standing.
If Karawara’s ASX admission does not occur within two years of the completion date, Legacy Minerals has
an option to acquire the Mulholland Tenement from Karawara, at market value.
The completion date would occur within five business days after satisfaction or waiver of certain conditions
precedent which are normal for this type of transaction (including receipt of regulatory approval to transfer
the Tenement and Karawara shareholder approval to issue the Shares, if required). At the date of this
report, completion has not occurred.
13 ASX LGM 14 June 2023 Sale of non-core Mulholland Project to Karawara Minerals
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 24
Directors’ Report (continued)
FIGURE 13: MULHOLLAND PROJECT OVERVIEW.
KEY BUSINESS RISKS
Dependence on key contractors
Legacy Minerals may outsource parts of the exploration and development of its projects to third party
contractors. Such contractors may not be available to perform services for Legacy Minerals, when required,
or may only be willing to do so on terms that are not acceptable to Legacy Minerals. Further, performance
may be constrained or hampered by capacity constraints, mobilisation issues, plant, equipment and staff
shortages, labour disputes, managerial failure and default or insolvency or other matters. Contractors may
not comply with provisions in respect of quality, safety, environmental compliance and timeliness, which
may be difficult to control. In the event that a contractor underperforms, or a contract is terminated, Legacy
Minerals may not be able to find a suitable replacement on satisfactory terms within an appropriate time or
at all. These circumstances could have a material adverse effect on Legacy Minerals’ operations.
Health and safety
All industries, including minerals exploration, face health and safety risks from operational activities which
include, personal injury, damage to property and equipment and other losses. The occurrence of any of
these risks could result in legal proceedings against the Company and/or key personnel and substantial
losses to the Company due to injury or loss of life, damage or destruction of property, regulatory
investigation, and penalties or suspension of operations.
Environmental
Legacy Minerals’ projects are subject to NSW and Australian Commonwealth laws and regulations regarding
the protection of the environment. These laws and regulations set various standards regulating aspects of
health and environmental quality and provide for penalties and other liabilities for the violation of such
standards and establish, in certain circumstances, obligations to remediate current and former facilities and
locations where operations are or were conducted. Significant liability could be imposed on the Company for
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 25
Directors’ Report (continued)
damages, clean-up costs, or penalties and the Company’s social licence may be questioned in the event of
certain discharges into the environment, environmental damage caused by previous owners or non-
compliance with environmental laws or regulations.
The occurrence of any one or more of these events could have a material adverse effect on the Company’s
operations and consequently financial performance.
Climate change
Climate change is a risk to the mining industry and Legacy Minerals’ focus of operations are in rural NSW, a
region potentially significant adversely impacted by climate change.
There are a number of climate-related factors that may affect the operations and proposed activities of the
Company. These include:
•
•
the emergence of new or expanded regulations associated with transitioning to a lower carbon economy
and market changes related to climate change mitigation. The Company may be impacted by changes to local
and international compliance regulations relating to climate change mitigation efforts; and
climate change may cause certain physical and environmental risks that cannot be predicted by the Company,
including events such as increased severity of weather patterns and incidents of extreme weather events.
The occurrence of any one or more of these events may have a material adverse effect on the Company’s
operations and/or cause disruption to field work and exploration activities, specifically causing restrictions
to or loss or access to the tenements and/or necessary infrastructure or restrictions to or delays in access
to the tenements. This could result in increased costs and/or reduced revenues which could have a material
adverse impact on the Company’s financial performance and position.
Operating risk
Legacy Minerals’ operational and development activities will be subject to numerous operational risks,
many of which are beyond Legacy Minerals’ control. Legacy Minerals’ operations may be curtailed, delayed
or cancelled as a result of factors such as adverse weather conditions, mechanical difficulties, shortages in
or increases in the costs of labour, consumables, spare parts, plant and equipment, external services failure
(including energy and water supply), industrial disputes and action, international trade disputes, difficulties
in commissioning, ramp up and operating plant and equipment, IT systems failures, mechanical failure or
plant breakdown, and compliance with governmental requirements.
Legacy Minerals’ business operations are subject to risks and hazards inherent in the exploration and
mining industry that may result in damage to its property, delays in its business and possible legal liability.
These risks and hazards include but are not limited to: environmental hazards and weather conditions;
industrial incidents, including such that result in discharge of pollutants or hazardous chemicals, serious
injury or fatality; failure of mechanical equipment and other performance problems; labour force
disruptions; site access disruptions; the unavailability of materials and equipment; unanticipated
transportation costs or disruption; unanticipated variations in grade and other geological problems, water
conditions, surface or subsurface conditions; unanticipated changes in metallurgical performance of the ore
or other processing problems; encountering unanticipated ground or water conditions and unexpected or
unusual rock formations; dam breach, flooding, rock bursts and fire; periodic interruptions due to
inclement or hazardous weather conditions; and force majeure factors, epidemic, pandemic, acts of God or
unfavourable operating conditions.
Any of these risks or hazards could materially and adversely affect, among other things, the development of
properties, and costs and expenditures. Such risks could also result in damage to, or destruction of, mineral
properties or other property, personal injury or death, loss of key employees, environmental damage,
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 26
Directors’ Report (continued)
delays in mining, monetary losses and possible legal liability. Satisfying such liabilities may be very costly
and could have a material adverse effect on Legacy Minerals’ future cash flows, results of operations and
financial condition.
No history of earnings and no production revenues
Legacy Minerals has no recent history of earnings and has not commenced commercial production on any
of its properties. There can be no assurance that Legacy Minerals will be profitable in the future. Legacy
Minerals’ operating and capital expenditures are likely to increase in line with the requirement for
consultants, personnel and equipment associated with construction, commissioning, ramp up and
commercial production of its operations. The amounts and timing of expenditures will depend on the
progress of construction activities and production ramp up.
Competition risk
The industry in which the Company operates is subject to domestic and international competition,
including large mineral exploration and production companies. Although the Company will take all
reasonable due diligence in its business decisions and operations, the Company will have no influence and
control over the activities or actions of its competitors, which activities or actions may, positively or
adversely, affect the operating and financial performance of the Company.
Some of the Company’s competitors have significantly greater financial and other resources than the
Company and, as a result, may be in a better position to compete in future projects. There can be no
assurance that the Company can compete effectively with these competitors.
Commodity and foreign exchange risk
The Company’s ability to proceed with the development of its tenements and benefit from any future
mining operations will depend on market factors, some of which may be beyond its control. It is anticipated
that any revenues derived from mining will be derived primarily from the sale of gold. Consequently, any
future earnings are likely to be closely related to the price of gold. The world market for gold is subject to
many variables and may fluctuate significantly. These variables include global demand for gold, and
precious metals that may be mined commercially in the future from the Company’s project areas. Gold
prices are also affected by macro-economic factors such as general global economic conditions and
expectations regarding inflation and interest rates. These factors may have an adverse effect on the
Company’s exploration, development and production activities, as well as on its ability to fund those
activities.
Gold is principally sold throughout the world in United States dollars, while the Company’s operations are
conducted by reference to Australian dollars. As a result, any significant fluctuations in the exchange rate
between the Australian dollar and the US dollar could have a material adverse effect on the Company’s
operations, financial position and performance.
General risk factors
General equity market risks
There can be no certainty of an active market in the Company’s shares. In addition, the Company’s shares
may trade on the ASX at a discount or premium to their purchase or issue price. The price at which Shares
trade on the ASX may be affected by a number of factors, including the financial and operating
performance of Legacy Minerals and external factors over which Legacy Minerals and its Directors have no
control.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 27
Directors’ Report (continued)
These external factors include actual, expected and perceived general economic conditions, changes in
government policy or regulation, significant events such as natural disasters or acts of terrorism, investor
attitudes, changes in taxation, movements in interest rates, movements in stock markets, and general
conditions in the markets in which Legacy Minerals will operate.
In addition, investors should consider the historical volatility of Australian and overseas share markets.
Economic conditions
The performance of Legacy Minerals is likely to be affected by changes in economic conditions. Profitability
of the business may be affected by some of the matters listed below. The Directors make no forecast in
regard to:
(i)
(ii)
(iii)
(iv)
(v)
general financial issues which may affect policies, exchange rates, inflation and interest rates;
deterioration in economic conditions, possibly leading to reductions in business spending and other
potential revenues which could be expected to have a corresponding adverse impact on Legacy
Minerals’ operating and financial performance;
the strength of the equity and share markets in Australia and throughout the world;
financial failure or default by any entity with which a member of Legacy Minerals is or may become
involved in a contractual relationship; and
industrial disputes in Australia and overseas.
Geo-political factors
Legacy Minerals may be affected by the impact that geo-political factors have on the world, the Australian
economy or on financial markets and investments generally or specifically. This may include international
wars, terrorist type activities and governmental responses to such activities.
Government policies and legislation
Legacy Minerals may be affected by changes to government policies and legislation, including those relating
to domestic and international taxation regimes, grants for research and development, regulation and
licensing, technology companies and international incentive programs.
Litigation and insurance
At present, Legacy Minerals is not involved in any litigation and is not aware of any basis on which any
litigation against Legacy Minerals may arise. However, there is always the risk that litigation may occur as a
result of future actions or omissions or differing interpretations of obligations or outcomes.
The Company maintains insurance that it believes to be consistent with industry practice, having regard to
the nature of the activities conducted by Legacy Minerals. However, no assurance can be given that Legacy
Minerals will be able to obtain any insurance coverage at all or at reasonable rates or that any coverage will
be adequate and available to cover any particular claims.
Liquidity
There can be no guarantee that there will remain an active market for the Company’s Shares or that the
price will increase. If illiquidity arises, there is a risk that Shareholders will be unable to realise their
investment in the Company.
Dividends
The Company does not intend to declare or pay any dividends in the immediate future.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 28
Directors’ Report (continued)
Any future determination as to the payment of dividends by the Company will be at the sole discretion of
the Directors and will depend on the availability of distributable earnings and operating results and
financial condition of the Company, future capital requirements and general business and other factors
considered relevant by the Directors. No assurance in relation to the payment of dividends or franking
credits attaching to dividends can be given by the Company.
Accounting standards
Changes to any applicable accounting standards or to any assumptions, estimates or judgments applied by
management in connection with complex accounting matters may adversely impact Legacy Minerals’
financial statements, results or condition.
CORPORATE
Financial
The Group incurred an operating loss after tax for the year ended 30 June 2023 of $946,712 (2022:
$2,072,546). The Group retained a cash balance of $1,624,431 (2022: $2,765,670) at 30 June 2023.
Capital Raisings
On 23 December 2022, the Company completed a successful cash placement with the issue of 8,036,667
ordinary fully paid shares for $0.15 each, raising $1,205,500.
Further details of capital raisings are set out in Note A6.
Joint Venture with Newmont
On or about 4 April 2023, the Company entered a A$15 million farm-in and joint venture agreement (Joint
Venture or JV) with Newmont Exploration, a subsidiary of Newmont Corporation (“Newmont”, NYSE: NEM,
TSX: NGT) at its Bauloora Project located in New South Wales, Australia.
Further details of the Joint Venture are set out in Note D1.
Events Subsequent to the Reporting Date
No matters or circumstances have arisen since the end of the year which significantly affected, or may
significantly affect, the operations of the Group, the results of these operations or the Group’s state of
affairs in future financial years.
Environmental Regulation
The Board believes that the Group has adequate systems in place for the management of its environmental
requirements.
Based on results of enquiries made, the Directors are not aware of any significant breaches during the year
covered by this report.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 29
Directors’ Report (continued)
Directors’ Meetings
The numbers of Directors' meetings (including meetings of committees of Directors) where Directors were
eligible to attend and attended in person or by alternate during the financial year by each of the Directors
of the Company were:
Director
David Carland
Christopher Byrne
Matthew Wall
Thomas Wall
Douglas Menzies
Directors’ Interests
Board
Number of Meetings
Attended
2
2
2
2
2
Eligible to Attend
2
2
2
2
2
The relevant interest of each director in the Company’s shares and options over shares issued by the
Company, at the date of this report is as follows:
Ordinary Fully Paid Shares
2022
Balance at 1 July 2021
Shares issued during the period
On-market purchases during
the period
Balance at the date of the
Directors’ Report
2023
Balance at 1 July 2022
Shares issued during the period
On-market purchases during
the period
Balance at the date of the
Directors’ Report
Unquoted Options
2022
Balance at 1 July 2021
Options granted during the
period
Balance at the date of the
Directors’ Report
2023
Balance at 1 July 2022
Options granted during the
period
Balance at the date of the
Directors’ Report
David
Carland
Number
Christopher
Byrne
Number
Thomas
Wall
Number
Matthew
Wall
Number
Douglas
Menzies
Number
-
750,000
11,000,001
150,000
12,607,501
150,000
12,607,501
150,000
670,000
-
-
116,984
45,500
45,500
-
750,000
11,266,985
12,803,001
12,803,001
670,000
750,000
-
11,266,985
-
12,803,001
-
12,803,001
-
670,000
-
-
93,677
5,000
5,000
-
750,000
11,360,662 12,808,001 12,808,001
670,000
-
-
-
-
-
500,000
1,000,000
1,500,000
1,500,000
500,000
500,000
1,000,000
1,500,000
1,500,000
500,000
500,000
1,000,000
1,500,000
1,500,000
500,000
-
-
-
-
-
500,000
1,000,000
1,500,000
1,500,000
500,000
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 30
Directors’ Report (continued)
The terms and conditions of the options granted are outlined in Note A6 to the accounts.
Messrs Matthew Wall and Thomas Wall are respectively father and son. In addition to shares and options
each holds directly, by virtue of their relationship, each has an indirect interest in shares and options held
by entities related to each other. The number of shares and options held at the date of this report by Messrs
Matthew Wall and Thomas Wall are combined. Refer to the Remuneration Report (Audited) on page 31 for
more details.
Remuneration Report (Audited)
This report outlines the remuneration arrangements in place for key management personnel of the Group.
Remuneration is referred to as compensation throughout this report.
Remuneration Policy
Directors and key management personnel have authority and responsibility for planning, directing and
controlling the activities of the Group.
Compensation levels for key management personnel of the Group will be competitively set to attract and
retain appropriately qualified and experienced Directors, executives and future executives. Current
remuneration levels are driven largely by the requirement to conserve cash within the Group. There were no
remuneration consultants used to set the remuneration of key management personnel.
The compensation structures explained below are designed to attract suitably qualified candidates, reward
the achievement of strategic objectives, and achieve the broader outcome of creation of value for
shareholders. The compensation structures take into account:
•
•
•
the capability and experience of the key management personnel
the key management personnel’s ability to control the Group’s performance
the Group’s performance including:
-
-
-
the Group’s earnings;
the growth in the Company’s share price and delivering constant returns on shareholder wealth;
and
the amount of incentives within each key management person’s compensation.
Compensation packages will include a mix of fixed and variable compensation, and short-term and long-term
performance-based incentives.
In addition to their salaries, the Group also provides non-cash benefits to its key management personnel, and
where applicable, contributes to the individual’s elected post-employment superannuation plan on their
behalf.
Contract Terms and Conditions
The determination of Directors' remuneration is made by the Board having regard to the current position of
the Group, in that it is as yet not in production and continues to preserve cash as much as possible.
Executive services agreement – Christopher Byrne
The Company has entered into an executive services agreement with Christopher Byrne in respect of his
appointment as Chief Executive Officer and Managing Director of the Company (CEO Agreement). The key
terms of the CEO Agreement are as follows:
Base Salary
$185,000 per annum
Superannuation
$18,500 per annum, being the minimum statutory
superannuation employer contribution, 10% for the year
ended 30 June 2023
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 31
Directors’ Report (continued)
Total Fixed Remuneration (TFR)
(see Note 1 below)
Notice Period by the
Company
Notice Period by
Executive
Frequency of payment of TFR
Equity Incentives granted under
the Company’s Performance
Rights and Options Plan
Short Term (STIP) and Long-Term
Incentive (LTIP)
$203,500 per annum (made up of $185,000 per annum
Base Salary plus $18,500 Superannuation)
3 months (can be paid out in lieu of Notice)
3 months (or such shorter period agreed by the parties)
Monthly - on or about the 15th of each month
1,000,000 unlisted options with an exercise price of $0.30
and expiring 22 June 2026
No STIP and LTIP currently in place. The Company’s
current incentives are as described above and vesting is
subject to specific milestone.
The CEO Agreement contains additional provisions considered standard for agreements of this nature.
Executive services agreement – Thomas Wall
The Company has entered into an executive services agreement with Thomas Wall in respect of his
appointment as Exploration Manager and Executive Director of the Company (Exploration Manager
Agreement).
The key terms of the Exploration Manager Agreement are identical to the key terms of the CEO Agreement
summarised above.
The Exploration Manager Agreement contains additional provisions considered standard for agreements of
this nature.
Non-Executive Director appointment letters
The Company has entered into non-executive director appointment letters with each of Matthew Wall,
Douglas Menzies and David Carland on the following key terms:
(i) Matthew Wall and Douglas Menzies each receive a Non-Executive Director’s fee of $45,000 per annum
(including statutory superannuation);
(ii) David Carland receives a Chairman’s fee of $60,000 per annum (including statutory superannuation);
(iii) During the year ended 30 June 2022, Matthew Wall, Douglas Menzies and David Carland were each
issued 500,000 unlisted options, each providing the holder with the right to be issued one ordinary fully
paid share by the Company for a strike price of $0.30 each. The options vested on issue and expire on 22
June 2026.
(iv) their respective appointments shall cease if Matthew Wall, Douglas Menzies or David Carland:
(A) resigns by notice in writing;
(B) is disqualified under the Corporations Act, or the Company’s constitution, from being a company
director; or
(C) is removed as a Director in accordance with the Corporations Act or the Company’s constitution; and
(v) Matthew Wall, Douglas Menzies and David Carland may only use confidential information about the
Company and its affairs in the proper performance of their duties or as required by law.
The non-executive director appointment letters contain additional provisions considered standard for
agreements of this nature.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 32
Directors’ Report (continued)
IHM consultancy agreement
The Company entered into a consultancy agreement with IHM Corporate Services Pty Ltd (IHM), under which
Ian Morgan provides key corporate services to the Company, including in his role as Chief Financial Officer
and Company Secretary (IHM Consultancy Agreement).
The IHM Consultancy Agreement commenced on 21 May 2021 and may be terminated earlier by the
Company or IHM giving three months’ notice. The Company may also terminate the IHM Consultancy
Agreement immediately by providing a payment of three months’ fees in lieu of notice and otherwise if it
has cause in accordance with the IHM Consultancy Agreement.
Under the IHM Consultancy Agreement, IHM’s professional fees are $6,240 per month excluding GST, and
the rate is $260 per hour excluding GST, with any extra hours per month being invoiced at that rate (subject
to agreement from the Company).
The IHM Consultancy Agreement otherwise contains provisions considered standard for an agreement of its
nature.
GeoInsite consultancy agreement
The Group entered into a consultancy agreement with GeoInsite Pty Ltd (GeoInsite), a company controlled
by Director Douglas Menzies, under which GeoInsite provides geologist services to the Group (GeoInsite
Consultancy Agreement).
Under the GeoInsite Consultancy Agreement, GeoInsite’s professional fees are $1,300 per day (net of local
taxes or plus GST) or $140/hour (plus GST). The GeoInsite Consultancy Agreement does not identify a term.
The GeoInsite Consultancy Agreement otherwise contains provisions considered standard for an agreement
of its nature.
Options Issued
During the year ended 30 June 2023 no options were granted in accordance with the Company’s employee
share and option plan.
During the year ended 30 June 2022, 3,750,000 unquoted options were granted, in accordance with the
Company’s employee share and option plan, by the Company and expire on 22 June 2026. 3,500,000 options
were ASX escrowed to 13 September 2023, and 250,000 options were ASX escrowed to 7 July 2022. Each
option is exercisable into one Company ordinary fully paid share for an exercise price of $0.30.
Other than as disclosed in this report, there are no entitlements for the Company’s option holders to
participate in new issues of capital which may be offered to the Company’s existing ordinary shareholders.
The Company prohibits those that are granted share-based payments as part of their remuneration from
entering other arrangements that limit their exposure to losses that would result from share price decreases.
Entering such arrangement is prohibited by law.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 33
Directors’ Report (continued)
Equity instruments
The movement during the year in the number of securities of the Company held, directly, indirectly or beneficially, by each specified Director and Officer,
including their personally related entities, is as follows:
Ordinary Fully Paid Shares
2022
Balance at 1 July 2021
Shares issued during the year
On-market purchases during the year
Balance at 30 June 2022
2023
Balance at 1 July 2022
Shares issued during the year
On-market purchases during the year
Balance at 30 June 2023
Directors
David
Carland
Number
Christopher
Byrne
Number
Thomas
Wall14
Number
Matthew
Wall14
Number
Douglas
Menzies
Number
Company
Secretary/CFO
Ian Morgan
Number
-
750,000
-
750,000
11,000,001
150,000
116,984
11,266,985
12,607,501
150,000
45,500
12,803,001
12,607,501
150,000
45,500
12,803,001
750,000
-
-
750,000
11,266,985
-
93,677
11,360,662
12,803,001
-
5,000
12,808,001
12,803,001
-
5,000
12,808,001
670,000
-
-
670,000
670,000
-
-
670,000
-
100,000
-
100,000
100,000
-
-
100,000
14 The combined number of shares held at 30 June 2023 by Messrs Thomas Wall and Matthew Wall total 12,808,001 (2022: 12,803,001).
Messrs Matthew Wall and Thomas Wall are respectively father and son. In addition to shares and options each holds directly, by virtue of their relationship, each has an
indirect interest in shares and options held by entities related to each other. The number of shares and options held at each balance date by Messrs Matthew Wall and
Thomas Wall are combined.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 34
Directors’ Report (continued)
Unquoted Options
2022
Balance at 1 July 2021
Options granted during the year16
Balance at 30 June 2022
2023
Balance at 1 July 2022
Options granted during the year
Balance at 30 June 2023
Directors
David
Carland
Number
Christopher
Byrne
Number
Thomas
Wall15
Number
Matthew
Wall15
Number
Company
Secretary/CFO
Ian Morgan
Douglas
Menzies
Number
Number
-
500,000
500,000
500,000
-
500,000
-
1,000,000
1,000,000
-
1,500,000
1,500,000
-
1,500,000
1,500,000
1,000,000
-
1,000,000
1,500,000
-
1,500,000
1,500,000
-
1,500,000
-
500,000
500,000
500,000
-
500,000
-
250,000
250,000
250,000
-
250,000
The terms and conditions of the options granted are outlined in Note A6 to the accounts.
15 The combined number of options held at 30 June 2023 by Messrs Thomas Wall and Matthew Wall total 1,500,000 (2022: 1,500,000).
Messrs Matthew Wall and Thomas Wall are respectively father and son. In addition to shares and options each holds directly, by virtue of their relationship, each has an
indirect interest in shares and options held by entities related to each other. The number of shares and options held at 30 June 2023 by Messrs Matthew Wall and Thomas
Wall are combined.
16 Unquoted options granted, in accordance with the Company’s employee share and option plan, by the Company expiring on 22 June 2026. The Directors’ options were ASX
escrowed from 7 July 2021 to 13 September 2023. The Company Secretary’s options were ASX escrowed from 7 July 2021 to 7 July 2022. Each option is exercisable into one
Company ordinary fully paid share for an exercise price of $0.30.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 35
Directors’ Report (continued)
Options Issued to Directors or Executives
Options were previously granted to Directors, or their nominees, in lieu of market related cash remuneration. The options were granted at no cost to the recipient.
There are no entitlements for the Company’s option holders to participate in new issues of capital, which may be offered to the Company’s existing ordinary
shareholders. No options were exercised by Directors during the financial year ended 30 June 2023 (2022: Nil).
The Company prohibits those that are granted unvested or restricted share-based payments, as part of their remuneration, from entering into other
arrangements that limit their exposure to losses that would result from share price decreases. Entering into such arrangement has been prohibited by law since
1 July 2011.
Details of vesting profiles of the options granted as remuneration to each key management person of the Group and each of the named key management persons
are detailed below:
Director
Issuer
Grant and
Vesting Date
Expiry date
Exercise
Price per
Share
Fair Value of
Option at Grant
Date
Number
Vested at the end
of the reporting
period
2023
%
2022
%
Lapsed during the
reporting period
2023
%
2022
%
David Carland
Christopher
Byrne
Thomas Wall
Matthew Wall
Douglas
Menzies
Ian Morgan
Company
7 July 2021 22 June 2026
Company
7 July 2021 22 June 2026
Company
Company
7 July 2021 22 June 2026
7 July 2021 22 June 2026
Company
7 July 2021 22 June 2026
Company
7 July 2021 22 June 2026
$0.30
$0.30
$0.30
$0.30
$0.30
$0.30
$0.13495
500,000
$0.13495
1,000,000
$0.13495 1,000,00017
500,00017
$0.13495
$0.13495
500,000
$0.13495
250,000
100
100
100
100
100
100
100
100
100
100
100
100
-
-
-
-
-
-
-
-
-
-
-
-
17 Messrs Matthew Wall and Thomas Wall are respectively father and son. By virtual of their relationship, they each have an indirect interest in the same options. Refer to
Directors’ Interests on page 30 for more information.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 36
Directors’ Report (continued)
Key Financial Statistics
When considering the Group's performance and benefits for shareholder wealth, the Board has regard to
these indices in respect of the current financial year and the previous financial year:
Loss for the financial year attributable to owners of the Group
Working capital at 30 June
Net assets at 30 June
Number of Shares on issue at 30 June
Share price at 30 June
Market capitalisation at 30 June
Less Cash at 30 June
Enterprise value at 30 June
Options benefits of key management persons
Other compensation of key management persons
Total compensation of key management persons for the financial
year
2023
$946,712
2022
$2,072,546
$1,036,067
$2,673,761
$5,027,780
$4,860,496
83,212,169
$0.13
75,175,502
$0.14
$10,817,582
$1,624,431
$9,193,151
$10,524,570
$2,765,670
$7,758,900
-
$641,256
$506,063
$642,712
$641,256
$1,148,775
During the financial year ended 30 June 2023, the Group focused on raising capital for exploring and
developing its tenement holdings within the LFB. Further details are included in the Review of Operations
and Outlook on page 8.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 37
Directors’ Report (continued)
Directors’ Remuneration for the year ended 30 June 2023
Details of the nature and amount of each major element of remuneration of each Director of the Group and other key management personnel of the Group are:
Short-term
Post-employment Other
long
term
Director
David Carland
Christopher Byrne
Thomas Wall
Douglas Menzies
Matthew Wall
Management
Ian Morgan
(Company Secretary
and CFO)
Total compensation
Salary &
fees
$
-
-
185,000
176,923
185,000
176,923
-
-
-
-
-
-
Consulting
fees
$
60,000
60,000
-
-
-
-
52,526
45,002
45,000
45,000
74,880
103,480
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
370,000
232,406
2022
353,846
253,482
Cash
bonus
$
-
-
-
-
-
-
Non-
monetary
benefits
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
$
60,000
60,000
185,000
176,923
185,000
176,923
52,526
45,002
45,000
45,000
74,880
103,480
602,406
Superannuation
benefits
$
-
-
19,425
17,692
19,425
17,692
-
-
-
-
-
-
38,850
607,328
35,384
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Termination
benefits
Share-
based
payments
Total
Proportion of
remuneration
performance
related
Value of
options as
proportion of
remuneration
Options18
$
-
67,475
-
134,950
-
134,950
-
67,475
-
67,475
$
60,000
127,475
204,425
329,565
204,425
329,565
52,526
112,477
45,000
112,475
NA
52.9%
NA
40.9%
NA
40.9%
NA
60.0%
NA
60.0%
NA
52.9%
NA
40.9%
NA
40.9%
NA
60.0%
NA
60.0%
-
74,880
NA
NA
33,738
137,218
-
641,256
24.6%
NA
24.6%
NA
506,063
1,148,775
44.1%
44.1%
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18 The fair value of the options is calculated at the date of grant using the Black Scholes option pricing model and allocated to each reporting period evenly over the period from grant date to vesting
date. The value disclosed is the portion of the fair value of the options recognised as an expense in each reporting period.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 38
Directors’ Report (continued)
Details of options over ordinary shares in the Company that were granted as compensation, for no cash
consideration, to each key management person during the reporting period and details that vested during
the reporting period are as follows:
Unquoted Options
Key Management
Person
Year ended 30 June
2023
David Carland
Christopher Byrne
Thomas Wall
Douglas Menzies
Matthew Wall
Ian Morgan
Year ended 30 June
2022
David Carland
Christopher Byrne
Thomas Wall
Douglas Menzies
Matthew Wall
Ian Morgan
Balance of options
at 1 July
Number
Unlisted options
issued in lieu of cash
for services
Number
Balance of options at 30 June
Number
500,000
1,000,000
1,000,000
500,000
500,000
250,000
-
-
-
-
-
-
-
-
-
-
-
-
500,000
1,000,000
1,000,000
500,000
500,000
250,000
500,000
1,000,000
1,000,000
500,000
500,000
250,000
500,000
1,000,000
1,000,000
500,000
500,000
250,000
End of Remuneration Report (Audited)
Shares Under Option
Each option offers the holder the right to be issued one ordinary fully paid Company share, as applicable,
upon payment of the exercise price to Company.
Unquoted Options
Expiry dates
Exercise
Price
Options
outstanding
at 1 July
Options
granted
during the
period since
1 July
Options
exercised
during the
period since 1
July
Options
outstanding
at the date of
this report
Number
Number
Number
Number
30 June 2023
7 September 2024
23 December 2025
22 June 2026
30 June 2022
7 September 2024
22 June 2026
$0.30
$0.225
$0.30
$0.30
$0.30
1,100,000
-
3,750,000
4,850,000
-
401,833
-
401,833
-
-
-
1,100,000
3,750,000
4,850,000
-
-
-
-
-
-
-
1,100,000
401,833
3,750,000
5,251,833
1,100,000
3,750,000
4,850,000
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 39
Directors’ Report (continued)
Indemnification and Insurance of Officers and Auditor
Indemnification and Insurance
The Group indemnifies current and former Directors and Officers for any loss arising from any claim by reason
of any specified act committed by them in their capacity as a Director or Officer (subject to certain exclusions
as required by law).
The Group has paid insurance premiums in respect of directors’ and officers’ liability. Insurance cover relates
to liabilities that may arise from their position (subject to certain exclusions as required by law).
Details of the nature of the liabilities covered or the amount of the premium paid in respect of the Directors’
and Officers’ liability insurance are not disclosed. Such disclosure is prohibited under the terms of the policy.
The Group has not otherwise, during or since the end of the financial year, except to the extent permitted by
law, indemnified or agreed to indemnify an officer or auditor of the Group or of any related body corporate
against a liability incurred as such by an officer or auditor.
Audit Services
During the year ended 30 June 2023, the Group expensed an amount of $70,963 (2022: $81,614) payable to
its auditor, Nexia Sydney Audit Pty Ltd (2022: BDO Audit Pty Ltd), for audit services provided to the Group.
Non-Audit Services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial
year by the auditor are outlined in Note D9 to the financial statements.
The board has considered the non-audit services provided during the year by the auditor and is satisfied that
the provision of those non-audit services during the year by the auditor is compatible with, and did not
compromise, the auditor independence requirements of the Corporations Act 2001 (Cth) for the following
reasons:
(a) All non-audit services were subject to the corporate governance procedures adopted by the Group and
have been reviewed by the Company’s directors to ensure they do not impact the integrity and objectivity
of the auditor; and
(b) The non-audit services provided do not undermine the general principles relating to auditor
independence set out in APES 110 Code of Ethics for Professional Accountants, as they did not involve
reviewing or auditing the auditor’s own work, acting in a management or decision-making capacity for
the Group, acting as an advocate for the Group or jointly sharing risks and rewards.
Rounding Off
The Group is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument
2016/191 dated 24 March 2016. Amounts in the Financial Report and Directors’ Report have been reported
to the nearest dollar, unless otherwise stated.
Lead Auditor’s Independence Declaration
The lead auditor’s independence declaration made under Section 307C of the Corporations Act 2001 (Cth) is
set out on page 72.
Previously Reported Information
The information in the Directors’ Report that references previously reported exploration results is extracted
from Legacy Minerals Holdings Limited’s ASX Announcements.
The ASX Announcements are also available to view on Legacy Minerals Holdings Limited's website or on the
ASX website (www.asx.com.au).
The Company confirms that it is not aware of any new information or data that materially affects the
information included in the original market announcements. The Company confirms that the form and
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 40
Directors’ Report (continued)
context in which the Competent Person’s findings are presented have not been materially modified from the
original market announcements.
Signed in accordance with a resolution of the Board of Directors.
Dr David Carland
Chairman
Sydney
29 September 2023
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 41
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
Year Ended 30 June 2023
Income
Other income
Expenses
Employee expenses
Share based payments (non-cash)
Administration expenses
Depreciation –Plant and Equipment
Total Expenses
Loss before income tax
Income tax benefit
Net loss attributable to members of the
Company
Other comprehensive income, net of income
tax
Total comprehensive loss
Loss per share – basic
Loss per share – diluted
Note
D3
D4
A13
D5
D6
D6
2023
$
62,340
184,753
-
781,883
42,416
1,009,052
946,712
-
2022
$
-
306,554
506,063
1,229,488
30,441
2,072,546
2,072,546
-
946,712
2,072,546
-
946,712
Cents
1.19
1.19
-
2,072,546
Cents
2.95
2.95
The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with
the accompanying Notes.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 42
Consolidated Statement of Financial Position
As at 30 June 2023
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Exploration and evaluation asset held for sale
Other current assets
Total current assets
Non-current assets
Plant and equipment
Exploration and evaluation assets
Tenement deposits
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Employee benefits
Total current liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Share based payment reserve
Accumulated Losses
Equity
Note
30 June 2023
$
30 June 2022
$
A12
A8
A9
A13
A14
A10
A11
A6
A6
1,624,431
62,234
42,010
20,000
1,748,675
141,630
3,704,083
146,000
3,991,713
5,740,388
666,582
46,026
712,608
-
712,608
5,027,780
2,765,670
142,615
-
20,000
2,928,285
118,319
1,970,416
98,000
2,186,735
5,115,020
230,081
24,443
254,524
-
254,524
4,860,496
8,273,095
658,386
(3,903,701)
5,027,780
7,200,380
617,105
(2,956,989)
4,860,496
The above Statement of Financial Position should be read in conjunction with the accompanying Notes.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 43
Consolidated Statement of Changes in Equity
Year Ended 30 June 2023
Note
Ordinary
fully paid
shares
$
Share based
payment
reserve
$
Balance at 1 July 2021
Net loss attributable to members
of the Company
Other comprehensive income for
the year, net of tax
Total comprehensive income for
the year
Contributions of equity, net of
transaction costs
Equity settled share-based
payments for the year
Balance at 30 June 2022
Balance at 1 July 2022
Net loss attributable to members
of the Company
Other comprehensive income for
the year, net of tax
Total comprehensive income for
the year
Contributions of equity, net of
transaction costs
Equity settled share-based
payments for the year
Balance at 30 June 2023
1,694,902
-
-
-
5,505,478
-
7,200,380
7,200,380
A6
-
-
-
1,072,715
-
8,273,095
A6
Accumulated
losses
$
Total Equity
$
(884,443)
810,459
(2,072,546)
(2,072,546)
-
-
(2,072,546)
(2,072,546)
-
5,505,478
-
-
-
-
-
617,105
617,105
617,105
-
(2,956,989)
(2,956,989)
617,105
4,860,496
4,860,496
-
-
-
-
(946,712)
(946,712)
-
-
(946,712)
(946,712)
-
1,072,715
41,281
658,386
-
(3,903,701)
41,281
5,027,780
The above Statement of Changes in Equity should be read in conjunction with the accompanying Notes.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 44
Consolidated Statement of Cash Flows
Year Ended 30 June 2023
Note
2023
$
2022
$
Cash flows used in operating activities
Receipts from customers
Payments to suppliers and employees
Net cash used in operating activities
A7
Cash flows used in investing activities
Payments for plant and equipment
Payments for exploration and evaluation costs
Payment for term deposits
Payments for mining tenement deposits
Net cash used in investing activities
Cash flows from financing activities
Proceeds from capital raisings
Payments for capital raising costs
Newmont Joint Venture Funding
A6
Net cash generated from financing activities
Net (decrease) / increase in cash and cash equivalents
Opening Cash and cash equivalents
Closing Cash and cash equivalents at 30 June
A12
-
(844,511)
(844,511)
-
(1,717,304)
(1,717,304)
(65,727)
(2,005,625)
-
(48,000)
(2,119,352)
1,205,500
(5,775)
622,899
1,822,624
(1,141,239)
2,765,670
1,624,431
(63,281)
(1,655,693)
(20,000)
(28,000)
(1,766,974)
5,801,500
(304,369)
-
5,497,131
2,012,853
752,817
2,765,670
The above Statement of Cash Flows should be read in conjunction with the accompanying Notes.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 45
Notes to the Financial Statements
Year Ended 30 June 2023
General Information
The financial statements of Legacy Minerals Holdings Limited (Company or Legacy Minerals) and its
subsidiary Legacy Minerals Pty Ltd (LMPL) (together referred to as the Group) are presented in Australian
dollars, which is the Group’s functional and presentation currency.
The financial statements were authorised for issue, in accordance with a resolution of Directors, on 29
September 2023.
The Notes to the financial statement are set out in the following main sections:
General Information
Section A – Key Financial Information and Preparation Basis. Refer page 47.
Section B – Risk and Judgement Refer page 57.
Section C – Key Management Personnel and Related Party Disclosures Refer page 61.
Section D – Other Disclosures Refer page 62.
Legacy Minerals Pty Limited Annual Report 30 June 2023
Page 46
Notes to the Financial Statements (continued)
Section A – Key Financial Information and Preparation Basis
A. This section sets out the basis upon which the Group’s financial statements have been prepared as a
whole and explains the results and performance of the Group that the Directors consider most relevant
in the context of the operations of the entity.
Statement of Compliance
The Group’s financial statements are general purpose financial statements which have been prepared in
accordance with Australian Accounting Standards (AASBs) adopted by the Australian Accounting
Standards Board (AASB) and the Corporations Act 2001 (Cth). The Group’s financial statements comply
with International Financial Reporting Standards (IFRS) adopted by the International Accounting
Standards Board (IASB).
Basis of Preparation
The financial report is prepared on the historical cost basis other than share-based transactions that are
assessed at fair value.
Group Restructure
For the purpose of the Initial Public Offering of the Company’s shares on the Australian Securities
Exchange, the Company undertook a group restructure whereby LMPL’s ownership was transferred to
the Company on 5 July 2021 through the Company’s acquisition of all the issued shares of LMPL by the
issue of one (1) ordinary fully paid share for one (1) LMPL ordinary fully paid share.
As the business was controlled by the same party both before and after, in the opinion of the directors
the restructuring represents a business combination of entities under common control and therefore the
requirements of AASB 3 Business Combinations do not apply.
The consolidated financial report of the Group for the year ended 30 June 2023 has been presented as a
continuation of the business of LMPL.
Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually
evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and
expenses. Management bases its judgements, estimates and assumptions on historical experience and
on other various factors, including expectations of future events, management believes to be reasonable
under the circumstances. The resulting accounting judgements and estimates will seldom equal the
related actual results. The judgements, estimates and assumptions that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes)
within the financial year are discussed below.
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value
of the equity instruments at the date at which they are granted. The fair value is determined by using
Black-Scholes model taking into account the terms and conditions upon which the instruments were
granted. The accounting estimates and assumptions relating to equity-settled share-based payments
would have no impact on the carrying amounts of assets and liabilities within the annual reporting period
but may impact profit or loss and equity. Refer to Note A6 for further information.
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the Group will commence
commercial production in the future, from which time the costs will be amortised in proportion to the
depletion of the mineral resources. Key judgements are applied in considering costs to be capitalised
which includes determining expenditures directly related to these activities and allocating overheads
between those that are expensed and capitalised. In addition, costs are only capitalised that are expected
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 47
Notes to the Financial Statements (continued)
to be recovered either through successful development or sale of the relevant mining interest. Factors
that could impact the future commercial production at the mine include the level of reserves and
resources, future technology changes, which could impact the cost of mining, future legal changes and
changes in commodity prices. To the extent that capitalised costs are determined not to be recoverable
in the future, they will be written off in the period in which this determination is made.
Going Concern
The financial statements have been prepared on the going concern basis, which contemplates continuity
of normal business activities and the realisation of assets and settlement of liabilities in the normal course
of business.
As disclosed in the financial statements, the Group has incurred a loss after tax of $946,712 (2022:
$2,072,546) and incurred net operating cash outflows for the year of $844,511 (2022: $1,717,304). These
matters give rise to a material uncertainty that may cast significant doubt on the Group’s ability to
continue as a going concern.
Following a successful capital raising in December 2022 of $1,205,500 (before costs), and funding from
Newmont amounting to $622,899, the Group had cash and cash equivalents of $1,624,431 as at 30 June
2023 (30 June 2022: $2,765,670). As the Group is still in the exploration stage, the ability of the Group to
continue as a going concern is dependent on a number of factors, including:
• Anticipated further capital raising within the next twelve months.
•
If necessary, scale back of planned activities to preserve the cash balance.
• Continued funding from farm-in and joint venture agreements.
After carefully assessing the Group’s forecasts and its ability to effectively manage expectations and cash
flows from operations, the directors believe that the Group’s existing cash reserves, along with its
expected capital raising and other funding activities, are adequate to pay its liabilities in the ordinary
course of business for at least twelve months from the date of this report and that there is a reasonable
basis to prepare the financial statements on a going concern basis. In the event that the above plans are
not achieved, the Group may be unable to continue as a going concern, in which case it may be required
to realise its assets and extinguish its liabilities other than in the ordinary course of business, and at
amounts that differ from those stated in the financial statements.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 48
1,874,902
5,701,500
100,000
5,801,500
7,676,402
(476,022)
7,200,380
Notes to the Financial Statements (continued)
Capital and Reserves
Share capital
Ordinary shares issued and fully
paid
Date
Number of
shares
Issue Price
per share
$
Balance
Issue of Shares for cash
1 July 2021
44,368,002
1,694,902
5 July 2021
1,800,000
$0.10
180,000
Issue of Shares for cash (IPO)
Issue of Shares for cash (IPO)
31 August 2021
28,507,500
1 September 2021
500,000
$0.20
$0.20
46,168,002
29,007,500
75,175,502
-
30 June 2022
75,175,502
Less costs relating to share
issues
Balance
Balance
1 July 2022
75,175,502
7,200,380
Issue of Shares for cash
23 December 2022
8,036,667
$0.15
1,205,500
Less costs relating to share issue
83,212,169
-
Balance
30 June 2023
83,212,169
8,405,880
(132,785)
8,273,095
Holders of ordinary shares are entitled to dividends as declared from time to time and are entitled to
one vote per share at general meetings of the Company.
Ordinary shares have no par value.
No dividends have been declared or paid by the Company during or since the end of the financial year.
The Company’s Board may resolve that the whole or any portion of profits, reserve or other account
which is available for distribution, be distributed to shareholder in the same proportions in which they
would be entitled to receive it if distributed by way of dividend, or in accordance with relevant terms
of issue of any shares or securities.
If the Company is wound up, whether voluntarily or otherwise, the liquidator may divide among all or
any of the contributories, as the liquidator thinks fit, in specie or in kind, any part of the assets of the
Company, and may vest any part of the assets of the Company in trustees for the benefit of all or any
of the contributories as the liquidator thinks fit.
In the event of winding up of the Company, ordinary shareholders rank after creditors and are entitled
to any proceeds of liquidation.
Options
Each option provides the right for the option holder to be issued one fully paid share by the Company,
upon payment of the exercise price of each option. The options do not entitle the holder to participate
in any share issue of the Company or any other body corporate.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 49
Notes to the Financial Statements (continued)
During the year ended 30 June 2023 there were no shares issued on the exercise of unquoted options
(2022: Nil). 401,833 unquoted options were granted during the year ended 30 June 2023 (2022:
4,850,000).
Details of options over ordinary shares in the Company that were granted, exercised, vested and
expired during the financial year are as follows:
Unquoted Options
Expiry dates
Exercise
Price
Options outstanding
at beginning of the
year
Options
granted during
the year
Options
outstanding at end
of the year
Number
Number
Number
30 June 2023
7 September 2024
23 December 2025
22 June 2026
30 June 2022
7 September 2024
22 June 2026
$0.30
$0.225
$0.30
$0.30
$0.30
1,100,000
-
3,750,000
4,850,000
-
401,833
-
401,833
-
-
-
1,100,000
3,750,000
4,850,000
1,100,000
401,833
3,750,000
5,251,833
1,100,000
3,750,000
4,850,000
Share based payments expense for the year ended 30 June 2023 totalled $41,281 (2022: $506,063).
Share-based payments included within transaction costs of issued capital for the year ended 30 June
2023 totalled $41,281 (2022: $111,042).
Share based payments expense
Equity settled share-based payments included within
transaction costs of issued capital
Share Based Payment Reserve
Balance at 1 July 2021
Equity settled share-based payments included within share-
based payment expenses
Equity settled share-based payments included within
transaction costs of issued capital
Balance at 30 June 2022
Balance at 1 July 2022
Equity settled share-based payments included within share-
based payment expenses
Equity settled share-based payments included within
transaction costs of issued capital
Balance at 30 June 2023
2023
$
-
41,281
41,281
Number of Options
Granted
-
2022
$
506,063
111,042
617,105
$
-
3,750,000
506,063
1,100,000
111,042
4,850,000
617,105
4,850,000
617,105
-
-
401,833
41,281
5,251,833
658,386
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 50
Notes to the Financial Statements (continued)
Unlisted Options
The fair value of the unlisted options was calculated at the date of grant using the Black Scholes option
pricing model and allocated to each reporting period evenly over the period from grant date to vesting
date. The value disclosed is the portion of the fair value of the options recognised as an expense or as an
equity raising cost in each reporting period.
Expiry date
Year ended 30 June 2023
23 December 2025
Year ended 30 June 2022
7 September 2024
22 June 2026
Fair value at grant date
Share price at grant date
Exercise price per option
Expected volatility (weighted
average)
Risk free interest rate (based
on government bonds)
Dividend yield
Number of unlisted options
Total fair value at grant date
Remuneration:
Directors
Management and
contractors
Joint Lead Managers
$0.102732
$0.165
$0.225
$0.100948
$0.20
$0.30
$0.134950
$0.20
$0.30
110%
3.33%
0.00%
401,833
$41,281
$
-
-
41,281
41,281
95%
99%
0.11%
0.00%
1,100,000
$111,042
$
0.11%
0.00%
3,750,000
$506,063
$
-
472,325
-
111,042
111,042
33,738
-
506,063
The Group’s accounting policy for the treatment of equity-settled share-based payment
arrangements granted to employees
The grant-date fair value of equity-settled share-based payment arrangements granted to employees
and consultants is generally recognised as an expense, with a corresponding increase in equity, over the
vesting period of the awards. The amount recognised as an expense is adjusted to reflect the number of
awards for which the related service and non-market performance conditions are expected to be met,
such that the amount ultimately recognised is based on the number of awards that meet the related
service and non-market performance conditions at the vesting date. For share-based payment awards
with non-vesting conditions, the grant-date fair value of the share-based payment is measured to reflect
such conditions and there is no true-up for differences between expected and actual outcomes.
Cash Flow Reconciliation
Cash flows from operating activities
Net loss attributable to members of the Company
Plus / (Less):
Non-cash expenditure:
Depreciation
Options expensed
Changes in working capital:
Decrease in prepayments and other receivables
2023
$
2022
$
946,712
2,072,546
(42,416)
-
904,296
(77,622)
(30,441)
(506,063)
1,536,042
(42,120)
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 51
Notes to the Financial Statements (continued)
(Increase) / Decrease in accounts payable and
accruals
Increase in provision
Movement in Working Capital Relating to
Investment Cash Flows:
Decrease / (Increase) in accounts payable and
accruals
Movement in Working Capital Relating to
Financing Cash Flows:
Decrease in accounts payable and accruals
Net cash used in operating activities
Prepayments and Other Receivables
(436,501)
(21,583)
242,705
(19,073)
475,921
(79,433)
-
844,511
79,183
1,717,304
Other receivables are recognised initially at fair value plus any directly attributable transaction costs.
Subsequent to initial recognition they are stated at amortised cost less impairment losses (see Note
B3).
Prepayments are recognised at cost.
Current
GST receivable
Other receivable
Prepayments
2023
$
-
2,760
2,760
59,474
62,234
2022
$
61,269
-
61,269
81,346
142,615
Current Receivable: Exploration and evaluation asset held for sale
The exploration and evaluation asset held for sale is stated at the lower of its carrying amount (cost)
and fair value less costs to sell.
Cost
Balance 1 July
Add Mulholland Tenement costs reclassified
exploration and evaluation asset held for sale
Balance at 30 June
Note
A14
2023
$
-
42,010
42,010
2022
$
-
-
-
On 14 June 2023, the Company agreed to the sale of its non-core asset, the Mulholland Tenement
(EL9330) to Karawara Minerals Limited.
The total sale consideration is $305,000 representing:
• $105,000 in cash
o $30,000 will be paid upon the completion date; and
o $75,000 upon the successful admission by the Australian Securities Exchange (“ASX”) of
Karawara Minerals Limited (“Karawara”); and
• $200,000 for A$ 0.10 per ordinary fully paid share (“Share”) of Karawara’s Shares to be issued
within seven days of the completion date.
The Company’s $305,000 sale consideration took into account an independent consultant’s evaluation
of the Mulholland Tenement’s value, the alignment of the Mulholland Tenement within the Legacy
Minerals portfolio, and Karawara’s minimum expenditure commitments required to keep the
Mulholland Tenement in good standing.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 52
Notes to the Financial Statements (continued)
If Karawara’s ASX admission does not occur within two years of the completion date, Legacy Minerals
has an option to acquire the Mulholland Tenement from Karawara, at market value.
The completion date would occur within five business days after satisfaction or waiver of certain
conditions precedent which are normal for this type of transaction (including receipt of regulatory
approval to transfer the Tenement and Karawara shareholder approval to issue the Shares, if
required). At 30 June 2023, completion had not occurred.
Trade and Other Payables
Trade and other payables are recognised initially at fair value plus directly attributable transaction
costs. Subsequent to initial recognition, these transactions are measured at amortised cost.
Current
Trade payables
GST Payable
Payable to Newmont Exploration
Other payables
Note
D1
Accruals
Employee Benefits
2023
$
111,845
20,758
336,692
67,982
537,277
129,305
666,582
2022
$
130,256
-
-
54,655
184,911
45,170
230,081
A provision is recognised in the statement of financial position when the Group has a present legal or
constructive obligation as a result of a past event, and it is probable that an outflow of economic
benefits will be required to settle the obligation. If the effect is material, provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects current market assessments
of the time value of money and, when appropriate, the risks specific to the liability.
Employee Entitlements
Current
Annual Leave Provision
2023
$
46,026
2022
$
24,443
The Group’s accounting policy for the treatment of employee entitlements:
(a) Short-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is
recognised for the amount expected to be paid if the Group has a present legal or constructive
obligation to pay this amount as a result of past service provided by the employee and the
obligation can be estimated reliably.
(b) Other long-term employee benefits
The Group's net obligation in respect of long-term employee benefits is the amount of future
benefit that employees have earned in return for their service in the current and prior periods.
That benefit is discounted to determine its present value. Remeasurements are recognised in
profit or loss in the period in which they arise.
(c) Termination benefits
Termination benefits are expensed at the earlier of when the Group can no longer withdraw the
offer of those benefits and when the Group recognises costs for a restructuring. If benefits are not
expected to be settled wholly within 12 months of the reporting date, then they are discounted.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 53
Notes to the Financial Statements (continued)
Cash and Cash Equivalents
Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three
months or less.
Bank balances
Cash and cash equivalents in the statements of cash flows
Plant and Equipment
Owned assets
2023
$
1,624,431
1,624,431
2023
$
2,765,670
2,765,670
Items of property, plant and equipment are stated at cost less accumulated depreciation and
impairment losses (see Note B3).
Where parts of an item of property, plant and equipment have different useful lives, they are
accounted for as separate items of property, plant and equipment.
Subsequent costs
The Group recognises in the carrying amount of an item of property, plant and equipment the cost of
replacing part of such an item when that cost is incurred if it is probable that the future economic
benefits embodied within the item will flow to the Group and the cost of the item can be measured
reliably. All other costs are recognised in the statement of profit or loss and other comprehensive
income as an expense as incurred.
Depreciation
Depreciation is charged to the statement of profit or loss and other comprehensive income on a
straight-line or diminishing value basis over the estimated useful lives of each part of an item of
property, plant and equipment and buildings. Land is not depreciated. The estimated useful lives in
the current financial year are as follows:
▪
Plant and equipment
Plant and Equipment consist of:
Cost
Balance 1 July
Additions
Balance at 30 June
Accumulated Depreciation
Balance 1 July
Depreciation expense
Balance at 30 June
Carrying amounts
At 1 July
At 30 June
Exploration and Evaluation Costs
1 to 5 years
2023
$
152,482
65,727
218,209
(34,163)
(42,416)
(76,579)
2022
$
89,201
63,281
152,482
(3,722)
(30,441)
(34,163)
118,319
85,479
141,630
118,319
Exploration and evaluation costs are stated at cost less accumulated amortisation and impairment
losses (see Note B3).
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 54
Notes to the Financial Statements (continued)
Cost
Balance 1 July
Additions
Less Mulholland Tenement costs reclassified as
exploration and evaluation asset held for sale
Balance at 30 June
Less Accumulated Impairment
Carrying amounts
At 1 July
At 30 June
Note
A9
2023
$
2022
$
1,970,416
1,775,677
175,585
1,794,831
(42,010)
3,704,083
-
1,970,416
-
-
1,970,416
175,585
3,704,083
1,970,416
The Group’s accounting policy for the treatment of its exploration and evaluation costs is in accordance
with the following requirements.
Exploration and evaluation assets are measured at cost.
Exploration and evaluation costs, including the costs of acquiring licences, are capitalised as
exploration and evaluation assets on an area of interest basis. Costs incurred before the entity has
obtained the legal rights to explore an area are recognised in profit or loss. When a licence is
relinquished or a project abandoned, the related costs are recognised in the statement of
comprehensive income.
An exploration and evaluation asset is only recognised in relation to an area of interest if the following
conditions are satisfied:
(a)
(b)
the rights to tenure of the area of interest are current; and
at least one of the following conditions is also met:
(i)
the exploration and evaluation expenditures are expected to be recouped through
successful development and exploitation of the area of interest, or alternatively, by its sale;
and
(ii) exploration and evaluation activities in the area of interest have not at the end of the
reporting period reached a stage which permits a reasonable assessment of the existence
or otherwise of economically recoverable reserves, and active and significant operations in,
or in relation to, the area of interest are continuing.
Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine
technical feasibility and commercial viability and facts and circumstances suggest that the carrying
amount exceeds the recoverable amount. For the purpose of impairment testing, exploration and
evaluation assets are allocated to cash-generating units to which the exploration activity relates. The
cash generating unit shall not be larger than the area of interest.
Once the technical feasibility and commercial viability of the extraction of mineral resources in an area
of interest are demonstrable, exploration and evaluation assets attributable to that area of interest
are first tested for impairment and then reclassified from exploration and revaluation expenditure to
mining property and development assets within property, plant and equipment.
Commitments
Exploration expenditure commitments
In order to maintain current rights of tenure to exploration tenements, the Group is required to perform
minimum exploration work to meet the minimum expenditure requirements specified by the New South
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 55
Notes to the Financial Statements (continued)
Wales Government. These obligations are subject to renegotiation when application for a mining lease
is made and at other times.
As at 30 June 2023, these obligations are not provided for in the financial report and are payable as
follows:
Within one year
One year or later and not later than five years
Later than five years
Segment Reporting
Exploration expenditure
commitments
2023
$
558,056
2,248,472
66,667
2,873,195
2022
$
583,333
1,578,472
-
2,161,805
An operating segment is a component of the Group that engages in business activities whose operating
results are reviewed regularly by the Company’s Board and for which discrete financial information is
available.
The Group is involved solely in mineral exploration within its 100% controlled Australian-based projects
in the Lachlan Fold Belt (LFB) NSW and thus has a single operating segment.
Business and geographical segments
The results and financial position of the Group’s single operating segment are prepared on a basis
consistent with Australian Accounting Standards and thus no additional disclosures in relation to the
revenues, profit or loss, assets and liabilities and other material items have been made. Entity-wide
disclosures in relation to the Group’s product and services and geographical areas are detailed below.
Products and services
The Group is involved solely in mineral exploration within its 100% controlled Australian-based projects
in the Lachlan Fold Belt (LFB) NSW and, as such, currently provides no products for sale.
Geographical areas
The Group’s exploration activities are located solely in Australia.
Contingencies
There are no contingent liabilities at 30 June 2023 (2022: $Nil)
Subsequent Events
No matters or circumstances have arisen since the end of the year which significantly affected, or may
significantly affect, the operations of the Group, the results of these operations or the Group’s state of
affairs in future financial years.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 56
Notes to the Financial Statements (continued)
Section B – Risk and Judgement
B. This section outlines the key judgements, estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year. This section also outlines the significant financial risk the Group is exposed to, to which the Directors
would like to draw the attention of the readers.
Financial Risk Management
Overview
This Note presents information about the Group’s exposure to credit, liquidity and market risks, their
objectives, policies and processes for measuring and managing risk, and the management of capital.
The Board of Directors has overall responsibility for the establishment and oversight of the risk
management framework. Management monitors and manages the financial risks relating to the
operations of the Group through regular reviews of the risks.
Credit Risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial
instrument fails to meet its contractual obligations.
Presently, the Group is in exploration phase, therefore does not earn revenue from sales and therefore
has no accounts receivable. At the reporting date, there were no significant credit risks in relation to
trade receivables.
Cash and cash equivalents
The Group limits its exposure to credit risk by only investing in liquid securities and only with
counterparties that have an acceptable credit rating.
Exposure to credit risk
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The
Group’s maximum exposure to credit risk at the reporting date was:
Current
Cash and cash equivalents
GST receivable
Other current assets
Note
A12
A8
Carrying Amount
2023
$
2022
$
1,624,431
-
20,000
1,644,431
2,765,670
61,269
20,000
2,846,939
Impairment losses
Neither past due nor impaired
Past due 1 – 30 days
Past due 31 – 90 days
Past due 91 + days
2022
$
-
-
-
-
-
Based on historic default rates, the Group believes that no impairment allowance is necessary in
respect of trade receivables not past due or past due by up to 30 days.
2023
$
-
-
-
-
-
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 57
Notes to the Financial Statements (continued)
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.
The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Group’s reputation.
The Group manages liquidity risk by maintaining adequate cash reserves from funds raised in the
market and by continuously monitoring forecast and actual cash flows.
The decision on how the Group will raise future capital will depend on market conditions existing at
that time.
The following are the contractual maturities of financial liabilities, including estimated interest
payments and excluding the impact of netting agreements:
Note
Carrying
amount
$
Contractual
cash flows
$
6 months
or less
$
A10
666,582
666,582
666,582
A10
230,081
230,081
230,081
30 June 2023
Trade and other payables
30 June 2022
Trade and other payables
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and
equity prices will affect the Group’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within
acceptable parameters, while optimising the return.
Currency risk
The Group is not exposed to currency risk and at the reporting date the Group holds no financial assets
or liabilities which are exposed to foreign currency risk.
Interest rate risk
The Group is exposed to interest rate risk (primarily on its cash and cash equivalents), which is the risk
that a financial instrument’s value will fluctuate as a result of changes in the market interest rates on
interest-bearing financial instruments. The Group does not use derivatives to mitigate these
exposures.
Profile
At the reporting date the interest rate profile of the Group’s and the Group’s interest-bearing financial
instruments was:
Interest rate Carrying amount
2023
$
2023
Interest rate
2022
Carrying amount
2022
$
Variable rate
instruments
Financial assets
Financial liabilities
-
-
-
1,644,431
(666,582)
977,849
-
-
-
2,928,285
(230,081)
2,698,204
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 58
Notes to the Financial Statements (continued)
Fair value sensitivity analysis for fixed rate instruments
The Group does not have, and therefore does not account for any financial assets and liabilities at fair
value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect
profit or loss.
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the end of the reporting period would have
increased/(decreased) equity and profit or loss by the amounts shown below. This analysis assumes
that all other variables, in particular foreign currency rates, remain constant.
Profit or loss
100bp increase
100bp decrease
Capital and Reserves Management
Variable rate instruments
2022
$
-
-
2023
$
-
-
The Group’s objectives when managing capital and reserves are to safeguard the Group’s ability to
continue as a going concern, so as to maintain a strong capital base sufficient to maintain future
exploration and development of its projects. In order to maintain or adjust the capital and reserve
structure, the Company may return capital to shareholders, issue new shares or sell assets to reduce
debt. The Group’s focus has been to raise sufficient funds through equity to fund exploration and
evaluation activities.
There were no changes in the Group’s approach to capital management during the period. Risk
management policies and procedures are established with regular monitoring and reporting.
The Group is not subject to externally imposed capital requirements.
Fair value versus carrying amounts
The fair values of financial assets and liabilities, together with the carrying amounts shown in the
statement of financial position are as follows:
Note
2023
2022
Carrying
amount
Fair value
Carrying
amount
Fair value
$
$
$
$
A8
A12
62,234
20,000
1,624,431
1,706,665
62,234
20,000
1,624,431
1,706,665
61,269
20,000
2,765,670
2,846,939
61,269
20,000
2,765,670
2,846,939
A10
666,582
666,582
230,081
230,081
Assets carried at amortised
costs
Other receivables
Other current assets
Cash and cash equivalents
Liabilities carried at
amortised cost
Trade and other payables
Impairment
The carrying amounts of the Group’s assets other than deferred tax assets (see Note D5), are reviewed
at each reporting date to determine whether there is any indication of impairment. If any such
indication exists, the asset’s recoverable amount is estimated (see below).
An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable
amount. Impairment losses are recognised in the statement of profit or loss and other comprehensive
income unless the asset has been re-valued previously in which case the impairment loss is recognised
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 59
Notes to the Financial Statements (continued)
as a reversal to the extent of the previous revaluation with any excess recognised through the
statement of profit or loss and other comprehensive income.
Impairment losses recognised in respect of cash generating units are allocated first to reduce the
carrying amount of any goodwill allocated to the cash generating unit (group of units) and then, to
reduce the carrying amount of the other assets in the unit (group of units) on a pro rata basis.
Calculation of recoverable amount
The recoverable amount of other assets is the greater of their 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,
the recoverable amount is determined for the cash generating unit to which the asset belongs.
Reversals of impairment
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or amortisation, if no
impairment loss had been recognised.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 60
Notes to the Financial Statements (continued)
Section C – Key Management Personnel and Related Party Disclosures
C. This section includes information about key management personnel’s remunerations, related parties
information and any transactions key management personnel or related parties may have had with the
Group during the period.
Key Management Personnel Expenses
Short-time employee benefits
Share based payments
Post-employment benefits
2023
$
602,406
-
38,850
641,256
2022
$
607,328
506,063
35,384
1,148,775
The Group entered into a consultancy agreement with GeoInsite Pty Ltd (GeoInsite), a company
controlled by Director Douglas Menzies, under which GeoInsite provides geologist services to the Group
(GeoInsite Consultancy Agreement).
Under the GeoInsite Consultancy Agreement, GeoInsite’s professional fees are $1,300 per day (net of
local taxes or plus GST) or $140/hour (plus GST). The GeoInsite Consultancy Agreement does not identify
a term.
The GeoInsite Consultancy Agreement otherwise contains provisions considered standard for an
agreement of its nature.
During the year ended 30 June 2023 there were no fees paid under the GeoInsite Consultancy
Agreement (2022: $Nil). At 30 June 2023 there were no fees payable under the GeoInsite Consultancy
Agreement (2022: $Nil)
Apart from the details disclosed in this Note, no Director has entered into a material contract with the
Group during the financial year and there were no material contracts involving Directors’ interests
existing at period-end.
Directors’ transactions with the Company or its controlled entities
Aggregate amounts payable to Directors and their Director related entities for unpaid Directors’ fees,
statutory superannuation owed to each Director’s superannuation fund, and consulting fees at the
reporting date were as follows:
Accounts Payable - current
Directors’ fees payable
2023
$
2022
$
$12,375
-
The terms and conditions of the transactions with Directors or their Director related entities, outlined
above, were no more favourable than those available, or which might reasonably be expected to be
available, on similar transactions to non-Director-related entities on an arm’s length basis.
Related Party Disclosures
There were no related party transactions during the year other than transactions with key management
personnel as part of their remuneration.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 61
Notes to the Financial Statements (continued)
Section D – Other Disclosures
D. This section includes information that the Directors do not consider to be significant in understanding
the financial performance and position of the Group but must be disclosed to comply with the Accounting
Standards, the Corporations Act 2001 (Cth) or the Corporations Regulations, or the Directors otherwise
consider the disclosure to be appropriate for giving a true and fair view of the Company's financial
performance and position.
Newmont Exploration
During the financial year ended 30 June 2023, the Company entered into a farm-in and joint venture
(JV) agreement with Newmont Exploration, a subsidiary of Newmont Corporation. The Company
considered the application of AASB 11 “Joint Arrangements” to the Company’s financial statements for
the year ended 30 June 2023.
A joint arrangement is an arrangement of which two or more parties have joint control. The Company
and Newmont Exploration are bound by contractual arrangement but there was not joint control of
the Bauloora Project exploration activity at the reporting date, so AASB11 does not apply. Key terms
and conditions of this contractual arrangement are:
Phase 1 - $5M earn-in for 51%
• Subject to satisfying the minimum commitments, Newmont may acquire a 51% farm-in interest in
the Bauloora tenements by spending a total of A$5 million within 48 months.
• Undertaking 4,000m of drilling within 48 months.
• Legacy Minerals will act as operator during the initial earn in period.
Phase 2 - $10M earn-in for 75%
• Subject to completion of Phase 1, Newmont may earn a further 24% farm-in interest in the
tenements by spending an additional A$10 million.
• Undertaking a further 8,000m of drilling within 48 months.
Newmont financing facility and Mining Joint Venture
• A Mining Joint Venture may be formed between the companies upon the decision to mine.
• At the discretion of Legacy Minerals, LGM may enter an agreement to a loan carried through to
production through a Newmont financing facility, allowing Newmont to earn-in up to 80%.
• The loan would be re-paid from Legacy Minerals’ share of any future mining proceeds.
During the year ended 30 June 2023, Newmont Exploration funded all the Company’s outsourced
expenditure on the Bauloora Project. At 30 June 2023, $336,692 (2022: $Nil) of unspent funds
remaining was recorded as an amount payable to Newmont out of an original initial funding amount of
$622,899 (2022: $Nil) received by the Company for Newmont’s minimum expenditure commitments
on the Bauloora Project. See Note A10.
Earth AI
During the financial year ended 30 June 2023, Legacy Minerals signed an Exploration Alliance
Agreement (Agreement) and a Minerals Royalty Deed with Earth AI covering its Fontenoy (EL8995) and
Mulholland tenements (EL9330) (Strategic Alliance). The Strategic Alliance allows for a co-funding
model, whereby Earth AI will contribute up to $4.5M AUD of total exploration costs across the
tenements over a two-year period, with an option to extend for a further year. Subject to a qualifying
drilling intersection (as defined within the Alliance Agreement) being subsequently identified on any
tenement, Earth AI Pty Ltd is entitled to a net smelter return royalty (Royalty) up to 3% in connection
with a to be agreed upon area surrounding the discovery (Area of Interest).
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 62
Notes to the Financial Statements (continued)
Legacy Minerals is under no obligation to explore, develop or mine any of the Tenements during the
period of the Strategic Alliance. However, if after the second anniversary of the Royalty Trigger Date,
no mineral resource has been defined and the combined annual exploration development and mining
expenditure in the Area of Interest falls below $250,000 USD, Earth AI will have the option to assume
operational control and buy all the Royalty Tenements that overlap the single Area of Interest under
the Minerals Royalty Deed, for a cash purchase price equal to $1,000,000 USD plus a 2% net smelter
royalty granted to Legacy Minerals.
At 30 June 2023, Legacy Minerals retained 100% ownership over the tenements covered under the
Agreement.
The Company and Earth AI are bound by contractual arrangement but there was not joint control of
the Fontenoy (EL8995) and Mulholland tenements (EL9330) exploration activity at the reporting date,
so AASB11 “Joint Arrangements” does not apply.
Other Income
Newmont Management Fee
Interest Income
Administration Expenses
Audit Fees
Corporate Advisory
Directors’ Fees
Legal Expenses
Listing Fees
Other
Professional Fees
Subscriptions & Memberships
Training & Conferences
Income Tax
2023
$
62,290
50
62,340
2023
$
70,963
30,000
232,406
5,280
52,242
305,431
-
52,639
32,922
781,883
2022
$
-
-
-
2022
$
81,614
299,862
253,483
82,126
109,794
329,790
7,924
41,990
22,905
1,229,488
Income tax is recognised in the statement of profit or loss and other comprehensive income except to
the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the period, using tax rates enacted or
substantially enacted at the reporting date, and any adjustment to tax payable in respect of previous
periods.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following
temporary differences are not provided for: goodwill, the initial recognition of assets and liabilities that
affect neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the
extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided
is based on the expected manner of realisation or settlement of the carrying amount of assets and
liabilities, using tax rates enacted or substantively enacted at the reporting date.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 63
Notes to the Financial Statements (continued)
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be
available against which the asset can be utilised. Deferred tax assets recorded at each reporting date are
reduced to the extent that it is no longer probable that the related tax benefit will be realised.
Current tax expense/ income, deferred tax liabilities and deferred tax assets arising from temporary
differences are recognised in the financial statements of the Group.
The Group recognises deferred tax assets arising from unused tax losses to the extent that it is probable
that future taxable profits of the Group will be available against which the asset can be utilised.
Any subsequent period adjustments to deferred tax assets arising from unused tax losses as a result of
revised assessments of the probability of recoverability is recognised by the Group.
Numerical reconciliation between tax benefit and pre-tax net loss
Loss before income tax
Prima facie Income tax benefit at a tax rate of 25.0% (2022 25.0%)
Permanent difference options expense
Temporary differences not brought to account
Decrease in income tax benefit due to:
Income tax losses not recognised
Income tax benefit on pre-tax net loss
Temporary differences not brought to account
Deferred Tax Liability
Deferred Tax Asset
Unrecognised deferred tax assets
Revenue tax losses (not tax effected)
2023
$
946,712
236,678
-
341,279
(577,957)
-
412,371
(71,092)
341,279
2022
$
2,072,546
518,137
(126,516)
391,162
(782,783)
-
387,293
3,869
391,162
6,101,064
3,789,237
The tax losses do not expire under current legislation though these losses are subject to testing under
loss recoupment rules in order for them to be utilised. Deferred tax assets have not been recognised in
respect of this item because, at this time, it is not probable that future taxable profit will be available
against which the benefits can be offset.
At 30 June 2023, the Group had no franking credits available for use in subsequent reporting periods
(2022: Nil).
Loss Per Share
Basic earnings per share (EPS) is calculated by dividing the net profit or loss attributable to members of
the Company for the financial year, after excluding any costs of servicing equity (other than ordinary
shares and converting preference shares classified as ordinary shares for EPS calculation purposes), by
the weighted average number of ordinary shares of the Company, adjusted for any bonus issue. Diluted
EPS is calculated by dividing the basic EPS earnings, adjusted by the after-tax effect of financial costs
associated with dilutive ordinary shares and the effect on revenues and expenses of conversion to
ordinary shares associated with dilutive potential ordinary shares, by the weighted average number of
ordinary and dilutive potential ordinary shares adjusted for any bonus issue.
The calculation of basic and diluted losses per share for the year ended 30 June 2023 was based on the
net loss attributable to ordinary shareholders of $946,712 (2022: $2,072,546) and a weighted average
number of ordinary shares outstanding during the year ended 30 June 2023 of 79,336,954 (2022:
70,222,173), calculated as follows:
Net loss attributable to members of the Company
2023
$
2022
$
946,712
2,072,546
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 64
Notes to the Financial Statements (continued)
Weighted average number of ordinary shares
Undiluted Number of Shares
Issued ordinary shares at 1 July
Cash placement - 5 July 2021
Cash placement (IPO) - 31 August 2021
Cash placement (IPO) - 1 September 2021
Cash placement – 23 December 2022
Weighted average number of ordinary shares used in
calculating basic and diluted loss per share
Loss per share – basic
Loss per share – diluted
Number
75,175,502
-
-
-
4,161,452
Number
44,368,002
1,775,342
23,665,130
413,699
-
79,336,954
70,222,173
Cents
1.19
1.19
Cents
2.95
2.95
5,251,833 (2022: 4,850,000) potential shares were excluded from the calculation of diluted earnings per
share because they are antidilutive for the year ended 30 June 2023 as the Group is in a loss position.
Consolidated Entities
Parent entity
Legacy Minerals Holdings Limited
Subsidiaries
Legacy Minerals Pty Ltd
GreenPath Minerals Pty Ltd
Country of
incorporation
Australia
Australia
Australia
Ownership
interest
2023
%
Ownership
interest
2022
%
-
100
100
-
100
-
In the financial statements of the Company, investments in controlled entities and associates are
measured at cost and included with other financial assets.
Parent Entity Disclosures
The Group has applied amendments to the Corporations Act 2001 (Cth) that remove the requirements
for the Group to lodge parent entity financial statements. Parent entity financial statements have been
replaced by the following specific parent entity disclosure.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 65
Notes to the Financial Statements (continued)
As at, and throughout, the financial year ended 30 June 2023 the parent company of the Group was
Legacy Minerals Holdings Limited.
Results of the parent entity
Net loss attributable to members of the parent
Other comprehensive income, net of income tax
Total comprehensive income
Financial position of parent entity at period end
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net Assets
Total equity of the parent entity comprising of:
Share capital
Reserve
Accumulated Losses
Total Equity
Parent entity capital commitments
2023
$
946,712
-
946,712
2022
$
2,072,546
-
2,072,546
30 June 2023
30 June 2022
1,706,665
4,033,723
5,740,388
712,607
-
2,928,285
2,186,735
5,115,020
254,524
-
712,607
254,524
5,027,781
4,860,496
8,273,095
658,386
(3,903,700)
5,027,781
7,200,380
617,105
(2,956,989)
4,860,496
The parent entity has no commitments at 30 June 2023 (2022: Nil).
Contingencies
The parent entity has no contingencies at 30 June 2023 (2022: Nil).
Auditor’s Remuneration
Auditor of the Group - Nexia Sydney Audit Pty Ltd
Audit of Legacy Minerals Holdings Limited for the year ended 30
June 2023
Review of Legacy Minerals Holdings Limited for the half year 31
December 2022
Auditor of the Group - BDO Audit Pty Ltd
Audit of Legacy Minerals Holdings Limited for the year ended 30
June 2022
Review of Legacy Minerals Holdings Limited for the half year 31
December 2021
2023
$
2022
$
40,000
28,000
-
-
2,963
44,038
-
70,963
37,576
81,614
Financing Income and Expenses
Interest income is recognised as it accrues taking into account the effective yield on the financial asset.
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 66
Notes to the Financial Statements (continued)
Finance expenses comprise interest expense on borrowings. Borrowing costs that are not directly
attributable to the acquisition, construction or production of a qualifying asset are recognised in profit
or loss using the effective interest method.
GST
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except
where the amount of GST incurred is not recoverable from the taxation authority. In these
circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the
expense.
Receivables and payables are stated with the amount of GST included. The net amount of GST
recoverable from, or payable to, the ATO is included as a current asset or liability in the statement of
financial position.
Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash
flows arising from investing and financing activities which are recoverable from, or payable to, the ATO
are classified as operating cash flows.
New Accounting Standards
Applying for year ended 30 June 2023
The following amendments to standards are effective for annual periods beginning after 1 January
2022. These amended standards have been applied in preparing these financial statements and none of
them have had a significant effect on the financial statements of the Group.
Application
date of the
standard
1 January
2022
Applies
to
financial
year
ended
30 June
2023
Reference
Summary of Change
AASB 2020-3
Annual Improvements to IFRS Standards 2018–2020
and Other Amendments
This Standard amends:
(a) the application of AASB 1 by a subsidiary that
becomes a first-time adopter after its parent in
relation to the measurement of cumulative
translation differences;
(b) AASB 3 to update references to the Conceptual
Framework for Financial Reporting;
(c) AASB 9 to clarify when the terms of a new or
modified financial liability are substantially
different from the terms of the original financial
liability;
(d) AASB 116 to require an entity to recognise the
sales proceeds from selling items produced while
preparing property, plant and equipment for its
intended use and the related cost in profit or loss,
instead of deducting the amounts received from
the cost of the asset;
(e) AASB 137 to specify the costs that an entity
includes when assessing whether a contract will
be loss-making; and
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 67
Notes to the Financial Statements (continued)
Reference
Summary of Change
Application
date of the
standard
Applies
to
financial
year
ended
(f) the fair value measurement requirements in AASB
141 to align with those in other Australian
Accounting Standards.
Issued but applying in future years
The table below summarises the amended reporting requirements that are not yet effective for
financial years ending 30 June 2023. The Group is still assessing but does not currently expect these
new Standards to have a material financial impact on its financial statements:
Reference
Summary of Change
AASB 2021-2
AASB 2021-5
Amendments to Australian Accounting Standards –
Disclosure of Accounting Policies and Definition of
Accounting Estimates
This Standard amends:
(a) AASB 7, to clarify that information about
measurement bases for financial instruments is
expected to be material to an entity’s financial
statements;
(b) AASB 101, to require entities to disclose their
material accounting policy information rather
than their significant accounting policies;
(c) AASB 108, to clarify how entities should
distinguish changes in accounting policies and
changes in accounting estimates;
(d) AASB 134, to identify material accounting policy
information as a component of a complete set of
financial statements; and
(e) AASB Practice Statement 2, to provide guidance
on how to apply the concept of materiality to
accounting policy disclosures.
Additional conforming amendments to AASB 1049,
AASB 1054, and AASB 1060 were made by AASB
2021-6.
Amendments to Australian Accounting Standards -
Deferred Tax related to Assets and Liabilities arising
from a Single Transaction
The amendment narrowed the scope of the
recognition exemption in paragraphs 15 and 24 of
AASB 112 (recognition exemption) so that it no longer
applies to transactions that, on initial recognition, give
rise to equal taxable and deductible temporary
differences. The amendment applies to transactions
Application
date of the
standard
1 January
2023
Applies
to
financial
year
ended
30 June
2024
1 January
2023
30 June
2024
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 68
Notes to the Financial Statements (continued)
Reference
Summary of Change
AASB 2020-1 /
AASB 2020-6 /
AASB 2022-6
AASB 2020-
1 and
AASB 2022-
6
AASB 2022-5
that occur on or after the beginning of the earliest
comparative period presented.
AASB 2020-1 Amendments to Australian Accounting
Standards – Classification of Liabilities as Current or
Non-current, AASB 2020-6 Amendments to Australian
Accounting Standards –– Classification of Liabilities
as Current or Non-current – Deferral of Effective Date
and AASB 2022-6 Amendments to Australian
Accounting Standards ––Non-current Liabilities and
Covenants19
The amendments, as issued in 2020, aim to clarify the
requirements on determining whether a liability is
current or non-current, and apply for annual reporting
periods beginning on or after 1 January 2023.
However, the IASB has subsequently proposed further
amendments to IAS 1 and the deferral of the effective
date of the 2020 amendments to no earlier than 1
January 2024.
Due to these ongoing developments, the Group is
unable to determine the impact of these amendments
on the financial statements of the Group in the period
of initial application. The Group is monitoring the
developments.
Amendments to Australian Accounting Standards -
Non-current Liabilities with Covenants
The amendments to AASB 101 specify that
conditions (covenants) to be complied with after the
reporting date do not affect the classification of
debt as current or non-current at the reporting date.
Instead, an entity discloses information about these
conditions in the notes to the financial statements.
Where AASB 2022-6 is adopted before its
mandatory application date, AASB 2020-1 must also
be applied at the same date.
Amendments to Australian Accounting Standards –
Lease Liability in a Sale and Leaseback
The Standard amends AASB 16 Leases to add
subsequent measurement requirements for sale and
leaseback transactions that satisfy the requirements in
Application
date of the
standard
Applies
to
financial
year
ended
1 January
2024
30 June
2024
1 January
2024
30 June
2025
1 January
2024
30 June
2025
19 AASB 2020-6, although itself effective for annual reporting periods beginning on or after 1 January 2022 (the original effective
date of AASB 2020-1), defers the effective date of AASB 2020-1 to annual reporting periods beginning on or after 1 January 2023.
AASB 2022-6 however, subsequently defers the effective date of AASB 2020-1 to annual reporting periods beginning on or after 1
January 2024 and defers the effective date of AASB 2022 - 6 (i.e. paragraph 139U of a AASB 101) with immediate effect on issue
of AASB 2O22 - 6 in December 2022 (in other words, to require the amendments to a AASB 2020 - 1 and AASB 2022 - 6 to be
applied at the same time and to give effect to the deferral of the effective date of all amendments to annual reporting periods
beginning on or after 1 January 2024).
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 69
Notes to the Financial Statements (continued)
Application
date of the
standard
Applies
to
financial
year
ended
1 January
2025
30 June
2026
Reference
Summary of Change
AASB 2014-10
AASB 15 Revenue from Contracts with Customers to be
accounted for as a sale.
AASB 16 already requires a seller-lessee to recognise
only the amount of any gain or loss that relates to the
rights transferred to the buyer-lessor. The
amendments ensure that a similar approach is applied
by also requiring a seller-lessee to subsequently
measure lease liabilities arising from a leaseback in a
way that does not recognise any amount of the gain
or loss related to the right of use it retains.
Sale or Contribution of Assets between an Investor
and its Associate or Joint Venture (Amendments to
AASB 10 and AASB 128)
Amends AASB 10 and AASB 128 to remove the
inconsistency in dealing with the sale or contribution
of assets between an investor and its associate or
joint venture. A full gain or loss is recognised when a
transaction involves a business (whether it is housed
in a subsidiary or not). A partial gain or loss is
recognised when a transaction involves assets that do
not constitute a business, even if these assets are
housed in a subsidiary.
The mandatory application date of AASB 2014-10
has been amended and deferred to annual reporting
periods beginning on or after 1 January 2025 by
AASB 2021-7.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-
current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or
consumed in the Group's normal operating cycle; it is held primarily for the purpose of trading; it is
expected to be realised within 12 months after the reporting period; or the asset is cash or cash
equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after
the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the Group's normal operating
cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the
reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12
months after the reporting period. All other liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
End of Notes (Audited)
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 70
Directors’ Declaration
1.
In the opinion of the Directors of Legacy Minerals Holdings Limited (“the Company”):
(a)
the Company’s financial statements and notes that are set out on pages 42 to 70 and the
Remuneration Report on pages 31 to 39 in the Directors’ Report, are in accordance with the
Corporations Act 2001 (Cth), including:
(i) giving a true and fair view of the Company’s financial position as at 30 June 2023 and of its
performance for the financial year ended on that date; and
(ii) complying with Australian Accounting Standards, the Corporations Regulations 2001 and
other mandatory professional reporting requirements; and
(b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable.
2.
The Directors have been given the declarations required by Section 295A of the Corporations Act 2001
(Cth).
Signed in accordance with a resolution of the Directors made pursuant to section 295(5)(a) of the
Corporations Act 2001.
David Carland
Chairman
Sydney
29 September 2023
Legacy Minerals Holdings Limited Annual Report 30 June 2023
Page 71
To the Board of Directors of Legacy Minerals Holdings Limited
Auditor’s Independence Declaration under section 307C of the Corporations Act
2001
As lead auditor for the audit of the financial statements of Legacy Minerals Holdings Limited for the financial
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.
Yours sincerely
Yours sincerely
Nexia Sydney Audit Pty Ltd
Stephen Fisher
Director
Date: 29 September 2023
72
Independent Auditor’s Report to the Members of Legacy Minerals Holdings
Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Legacy Minerals Holdings Limited (the Company and its subsidiaries
(the Group)), which comprises the consolidated statement of financial position as at 30 June 2023, the
consolidated statement of profit or loss and other comprehensive income, consolidated statement of
changes in equity and consolidated statement of cash flows for the year then ended, and notes to the
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:
i) 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
ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the ‘auditor’s responsibilities for the audit of the financial report’ section
of our report. We are independent of the Group in accordance with the Corporations Act 2001 and the
ethical requirements of the Accounting Professional & 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 confirm that the independence declaration required by the Corporations Act 2001, which has been given
to the directors of the Company, would be in the same terms if given to the directors as at the time of this
auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material uncertainty related to going concern
We draw attention to Note A5 in the financial report, which indicates that the Company incurred a net loss
of $946,712 during the year ended 30 June 2023 and had net operating cash outflows for the year of
$844,511. These events or conditions, along with other matters as set forth in the note, indicate that a
material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going
concern. Our opinion is not modified in respect of this matter.
73
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our
audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Key audit matter
How our audit addressed the key audit matter
Exploration and Evaluation
assets
Refer to note A14 (Exploration
and Evaluation Costs)
At 30 June 2023, the Group has
capitalised exploration assets of
$3.7m. The Group’s accounting
policy in respect of exploration
and evaluation costs is outlined in
Notes A4 and A14.
Exploration and Evaluation assets
is a key audit matter due to:
The significance of the exploration
and evaluation activities to the
Group’s business and the carrying
value of these assets which are
the largest asset on the balance
sheet.
The significant judgement applied
by management in its estimates
and assumptions in determining
whether an indicator of
impairment exists in relation to
capitalised exploration and
evaluation assets in accordance
with Australian Accounting
Standard AASB 6 Exploration for
and Evaluation of Mineral
Resources.
Our procedures included, amongst others:
▪ We evaluated the Group’s accounting policy to recognise
exploration and evaluation assets using the criteria set out in
AASB 6.
▪ We confirmed the existence and tenure of the exploration
assets in the tenements in which the Group has a sole
ownership interest by obtaining confirmation of titles.
▪ We performed substantive procedures including:
i)
ii)
testing a sample of additions of capitalised
exploration expenditure to supporting documentation
to ensure their accuracy; and
ensuring that those amounts met the recognition
criteria under AASB 6.
▪ We reviewed the exploration agreements with Earth AI and
Newmont, and checked that the Group’s accounting
treatment of exploration costs incurred under the
agreements is appropriate, such that the Group has not
recognised the exploration costs funded by the other parties;
▪
In assessing whether an indicator of impairment exists in
relation to the Group’s exploration assets in accordance with
AASB 6, we:
i)
ii)
iii)
reviewed the minutes of the Group’s board meetings
and market announcements;
tested the significant inputs in the Group’s cash flow
forecasts for consistency with their future planned
activity regarding the exploration assets; and
discussed with management the Group’s ability and
intention to undertake further exploration and
evaluation activities.
▪ We assessed the adequacy of the company’s disclosures in
Notes A4 and A14 in respect of exploration and evaluation
costs in the financial report.
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Other information
The directors are responsible for the other information. The other information comprises the information
in Legacy Minerals Holdings Limited’s annual report for the year ended 30 June 2023, but does not include
the financial report and the auditor’s report thereon. Our opinion on the financial report does not cover
the other information and we do not express any form of assurance conclusion thereon. In connection
with our audit of the financial report, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of the other
information we are required to report that fact. We have nothing to report in this regard.
Directors’ responsibility for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or
error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibility for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at The Australian
Auditing and Assurance Standards Board website at:
www.auasb.gov.au/admin/file/content102/c3/ar2_2020.pdf. This description forms part of our auditor’s
report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 31 to 39 of the directors’ Report for the year
ended 30 June 2023.
In our opinion, the Remuneration Report of Legacy Minerals Holdings Limited for the year ended 30 June
2023, complies with section 300A of the Corporations Act 2001.
75
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.
Nexia Sydney Audit Pty Ltd
Stephen Fisher
Director
Dated: 29 September 2023
Sydney
76
Additional Shareholder Information
Additional Shareholder Information
Shares
Subject to the Company’s constitution, the of the Corporations Act 2001 (Cth) (Act) and the ASX Listing Rules, and to
any rights or restrictions attaching to any class of securities, at a meeting of the Company’s members:
(a) on a show of hands, each member has one vote;
(b) on a poll, each member has:
(i) for each fully paid share held by the member as at the time referred to section 250L(4) of the Act, one vote;
and
(ii) for each partly-paid Share held by the Member as at the time referred to section 250L(4) of the Act, a
fraction of a vote equivalent to the proportion which the amount paid (not credited nor paid in advance of a
Call) is of the total amounts paid and payable (excluding amounts credited) for the Share.
At 15 September 2023, issued capital was 83,212,169 ordinary fully paid shares held by 776 holders. No shares were
subject to escrow.20 Largest Holders by Name of Ordinary Shares and their Share Holdings at 15 September 2023:
Rank Name
1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
16
17
18
19
20
C & A BYRNE PTY LIMITED
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