ABN 30 637 512 415
2024
A N N U A L R E P O R T
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CONTENTS
Review of Operations
Corporate Governance Statement
Directors’ Report
Lead Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Consolidated Entity Disclosure Statements
Directors’ Declaration
Independent Auditor’s Report
Additional Stock Exchange Information
CORPORATE DIRECTORY
Directors
Andrew Van Heyst
Executive Chairman
Edward Leschke
Managing Director
Jason Beckton
Executive Director
Keith Mayes
Non-Executive Director
Company Secretary
Marcelo Mora
Principal Place of
Level 5, 1 Margaret Street
Business and
Sydney NSW 2000
Registered Office
Australia
Telephone:
(61 2) 9008 1381
(61 2) 9199 8017
Web site:
www.loderesources.com
Share Registry
Automic Pty Ltd
Level 5, 126 Phillip Street
Sydney NSW 2000
Telephone:
1300 288 664 (within Australia)
(61 2) 9698 5414 (outside Australia)
Auditors
PKF (NS) Audit and
Assurance Limited
Partnership
Level 8
1 O’Connell Street
Sydney NSW 2000
Solicitors
Thomson Geer
Level 14
60 Martin Place
Sydney NSW 2000
Stock Exchange
Australian Securities Exchange
(Code – LDR)
Listings
REVIEW OF OPERATIONS
THE DIRECTORS OF LODE RESOURCES LTD (ASX: LDR OR ‘LODE’ OR ‘THE COMPANY’)
ARE PLEASED REPORT THAT THE GROUP HAS ACHIEVED SIGNIFICANT EXPLORATION
MILESTONES DURING THE YEAR-ENDED 30 JUNE 2024.
Lode’s exploration focus is on the highly prospective but under-explored New England Fold Belt in north eastern New
South Wales. The Company has assembled a portfolio of brownfield precious and base metal assets characterised by:
•
100% ownership;
•
Significant historical geochemistry and/or geophysics;
•
Under drilled and/or open-ended mineralisation; and
•
Demonstrated high-grade mineralisation and/or potential for large mineral occurrences.
This has resulted in a portfolio of assets with diverse mineralisation styles:
1. Webbs Consol Silver & Base Metal – Located 16km west-southwest of Emmaville, this historical silver mining centre
is known for high grade silver-base metal bearing lodes;
2. Uralla Gold – Located 8km west of the Uralla township, this goldfield was one of the earlier goldfields discovered
in NSW and a significant gold producer in the 1850’s. Despite this long history, the mineralisation style has only
recently been recognised as being an Intrusive Related Gold System (IRGS) and this has strong implications for this
project’s discovery potential;
3. Fender Copper (Trough Gully) – Located 30km southeast of Tamworth this project hosts significant copper in
drainage anomalies and several known historical workings of VMS style mineralisation providing some very attractive
exploration targets;
4. Sandon Base Metals and Antimony – The Bundarra Copper and Abington Base Metal Projects host VMS style
mineralisation and have both undergone preliminary exploration. They are located 45km and 60km respectively
west of Guyra. This exploration licences also hosts a number antimony prospects;
5. Thor – Located 35km northwest of Manila this project hosts a large gold anomaly potentially associated with high
level intrusions or major regional fault structures;
6. Tea Tree – Located 24km north of Manila this project comprises an underexplored goldfield.
7. New England Antimony – Located 40km northeast of Armidale, this project hosts several antimony prospects
including the historic but undrilled Magwood Antimony Mine, a former significant producer of antimony.
As of 30 June 2024, the Company had been granted seven exploration licences as follows:
Project
Licence
Grant Date
Expiry Date
Commodity
Units
Status
Webbs Consol
EL8933 16 January 2020
16 January 2029
Group 1 (Metallic minerals)
16
Granted
Webbs Consol Exp.
EL9454 7 September 2022 7 September 2025
Group 1 (Metallic minerals)
53
Granted
Uralla
EL8980 14 May 2020
14 May 2027
Group 1 (Metallic minerals)
80
Granted
Uralla West
EL9087 12 March 2021
12 March 2027
Group 1 (Metallic minerals)
22
Granted
Fender
EL9003 12 October 2020
12 October 2029
Group 1 (Metallic minerals)
76
Granted
Sandon
EL9319 29 October 2021
29 October 2024
Group 1 (Metallic minerals)
273
Granted
Tea Tree
EL9084 11 March 2021
12 March 2027
Group 1 (Metallic minerals)
24
Granted
Thor
EL9085 11 March 2021
11 March 2027
Group 1 (Metallic minerals)
78
Granted
New England Antimony
EL9662 11 June 2024
11 June 2027
Group 1 (Metallic minerals)
399
Granted
Since the successful completion of the A$5.1M IPO, admission to the Official List of ASX Limited (‘ASX’) on Wednesday, 30
June 2021 and the commenced trading on Friday, 2 July 2021, successful drill campaigns have been carried out at three of
seven projects 100% owned by Lode with the Webbs Consol Silver-Base Metals Project producing exceptional drill results.
LODE RESOURCES 2024 ANNUAL REPORT 1
A total of 1,666 metres of diamond and RC drilling in 17 drill holes was carried out during the year of which all were
drilled at the Webbs Consol Silver-Base Metal Project. In addition, 1,192 auger holes were drilled at the Uralla Gold
Project. All of Lode’s projects are located in the highly prospective but under-explored New England Fold Belt in north-
eastern NSW.
Figure 1: Lode’s Project Locations (blue polygons)
Lode’s strategy is to:
•
Systematically explore and develop the Company’s Tenements in the New England Fold Belt;
•
Target large-scale silver, gold, copper and antimony metal systems;
•
Use modern exploration methods and best practices in cost effective programs; and
•
Advance discoveries through to the development stage.
REVIEW OF OPERATIONS
2 LODE RESOURCES 2024 ANNUAL REPORT
During FY24 Lode Resources primarily focused its exploration activities on the Company’s 100% owned Webbs Consol
Silver Project (“Webbs Consol”) and 100% owned Uralla Gold Project (“Uralla”), both located in the New England Fold
Belt in north-eastern New South Wales.
Webbs Consol Silver Project
Drilling at the Webbs Consol Silver Project tested the lateral extent of the Tangoa West Lode at depth and returned
significant intercepts which confirmed continuity of high-grade mineralisation throughout the lode which remains open
below 300m.
> Drill hole WCS064 returned:
•
27.7m @ 663 g/t AgEq1 from 203.3m including:
10.0m @ 918 g/t AgEq1 from 219.0m including:
3.3m @ 1,890 g/t AgEq1 from 225.7m
> Drill hole WCS065 returned:
•
33.2m @ 569 g/t AgEq1 from 270.0m including:
18.5m @ 992 g/t AgEq1 from 279.9m including:
14.4m @ 1,172 g/t AgEq1 from 282.0m
These two drill intercepts of the Tangoa West Lode demonstrate:
> Continuity and orientation of high-grade silver-base metal mineralisation;
> Mineralisation extending to a vertical depth of 300m and remains open;
> The dominance of silver and zinc mineralisation at depth;
> Multiphase mineralisation emplacement.
Early in the year a new substantial drill ready geochemical anomaly, called the Webbs Consol North Prospect, was
defined. This anomaly footprint is the largest surface occurrence at Webbs Consol and is one order of magnitude greater
than the surface expression of Tangoa West, the largest mineralised lode drilled to date at Webbs Consol. The Webbs
Consol North Prospect surface anomaly is defined by high silver (Ag), lead (Pb), and zinc (Zn) assay values returned over
a 300 meter strike length.
> Assays of soil samples returned:
•
17 samples >1 g/t Ag with a maximum of 6.5 g/t Ag
•
20 samples >500 ppm Pb with a maximum of 3,410 ppm Pb
•
21 samples >250 ppm Zn with a maximum of 1,090 ppm Zn
> Assay of subcrop chip samples returned:
•
13 samples >10 g/t Ag with a maximum of 252 g/t Ag
•
12 samples >5,000 ppm Pb with a maximum of 12.95% Pb
•
9 samples >1,000 ppm Zn with a maximum of 0.84% Zn
A decision was then made to drill the Webbs Consol North Prospect given its strong prospectivity as described above.
This first pass drill testing of Webbs Consol North prospect discovered significant silver and zinc mineralisation over
extensive area, potentially representing multiple lodes or a larger mineralised body.
> Drill hole WCS070 returned:
•
21.0m @ 122 g/t AgEq or 3.76% ZnEq from 2.0m including:
7.0m @ 317 g/t AgEq or 9.82% ZnEq from 6.0m
> Drill hole WCS071 returned:
•
13.0m @ 193 g/t AgEq or 5.97% ZnEq from 10.0m including:
4.0m @ 573 g/t AgEq or 17.74% ZnEq from 11.0m
> Drill hole WCS072 returned:
•
34.0m @ 82 g/t AgEq or 2.54% ZnEq from 18.0m including:
7.0m @ 304 g/t AgEq or 9.42% ZnEq from 24.0m
REVIEW OF OPERATIONS
LODE RESOURCES 2024 ANNUAL REPORT 3
Figure 2. Lode’s Webbs Consol Silver Project (EL8933) - Location of main lodes, significant drill hole intercepts to
date and grab samples at the Canoon prospect.
REVIEW OF OPERATIONS
4 LODE RESOURCES 2024 ANNUAL REPORT
Table 1. Lode’s Webbs Consol Silver Project (EL8933) - Significant drill intercepts to date.
Hole
From
(m)
To
(m)
Interval
(m)
AgEq1
(g/t)
ZnEq1
(%)
Ag
(g/t)
Pb
(%)
Zn
(%)
Cu
(%)
Prospect
WCS045
90.9
207.0
116.1
721
22.33
254
6.35
8.35
0.24
Tangoa West
WCS052A
98.0
247.2
149.2
455
14.09
183
3.13
5.19
0.19
Tangoa West
WCS050
104.4
170.2
65.8
755
23.37
266
13.56
12.38
0.42
Tangoa West
WCS047
144.7
169.2
24.5
971
30.06
389
1.56
16.00
0.24
Tangoa West
WCS052B
279.0
319.2
40.2
466
14.41
189
6.10
11.56
0.04
Tangoa West
WCS065
270.0
303.2
33.2
332
10.29
64
0.14
8.13
0.01
Tangoa West
WCS064
203.3
231.0
27.7
407
12.60
64
0.35
7.69
0.03
Tangoa West
WCS044
48.3
102.3
54.0
245
7.57
84
3.69
1.22
0.21
Tangoa West
WCS023
17.0
67.0
50.0
244
7.56
94
2.93
1.81
0.08
Castlereagh
WCS006
104.6
132.1
27.5
357
11.03
118
0.77
6.52
0.07
Main Shaft
WCS049
81.8
126.0
44.2
221
6.85
68
3.46
1.27
0.20
Main Shaft
WCS051
79.9
110.6
30.7
231
7.15
70
1.54
1.81
0.21
Tangoa West
WCS019
30.1
56.8
26.7
351
10.86
115
6.43
1.07
0.25
Tangoa West
WCS007
122.9
147.1
24.2
273
8.46
63
0.49
5.96
0.04
Main Shaft
WCS020
30.6
61.6
31.0
192
5.95
55
3.37
0.98
0.12
Tangoa West
WCS031
66.5
113.9
47.4
112
3.47
46
0.79
1.22
0.04
Castlereagh
WCS034
16.0
36.5
20.5
210
6.51
77
1.10
2.87
0.10
Copycat
WCS028
138.4
182.0
43.6
83
2.58
12
0.28
1.91
0.02
Main Shaft
WCS012
48.0
60.1
12.1
282
8.73
108
5.49
3.06
0.10
Mt Galena
WCS035
23.3
37.0
13.7
214
6.62
87
0.71
2.61
0.26
Copycat
WCS070
2.0
23.0
21.0
122
3.76
97
0.33
0.35
0.01
WC North
WCS018
18.0
52.0
34.0
82
2.54
25
0.63
1.19
0.01
WC North
WCS071
10.0
23.0
13.0
193
5.97
23
0.63
3.03
0.01
WC North
WCS026
28.7
63.0
34.3
46
1.43
23
0.13
0.26
0.06
Luck Lucy N
WCS074
75.0
88.0
13.0
83
2.57
49
0.19
1.45
0.01
WC North
WCS008
24.0
45.2
21.2
44
1.36
17
0.09
0.14
0.01
Luck Lucy N
WCS009
70.0
80.0
10.0
77
2.39
49
0.09
0.17
0.23
Luck Lucy N
WCS029
36.3
42.1
5.8
41
1.26
10
0.43
0.55
0.01
Luck Lucy N
1 Metal equivalent figures are a simple way to demonstrate overall grade with a single figure thus making comparisons easier for investors.
Since the commencement of drilling at Webbs Consol Silver Project it was deemed that silver was the appropriate metal for equivalent
calculations as silver is the most common metal to all mineralisation zones. This is still the case however zinc is becoming increasing
dominant with depth and therefore LDR has decided to calculated both silver and zinc equivalent grades to demonstrate overall grades.
Webbs Consol silver and zinc equivalent grades are based on assumptions: AgEq(g/t)=Ag(g/t)+32.3*Zn(%)+27.5*Pb(%)+107*Cu(%)+87.1*Au(g
/t) & ZnEq(g/t)=0.031*Ag(g/t)+Zn(%)+0.850*Pb(%)+0.2.694*Cu(%)+2.57*Au(g/t) calculated from 12 February 2024 (previously 29 August 2022)
spot metal prices of US$22.7/oz silver, US$2325/t zinc, US$2060/t lead, US$8100/t copper, US$2020/oz gold and metallurgical recoveries
of 97.3% silver, 98.7%, zinc, 94.7% lead, 76.3% copper and 90.8% gold which is the 4th stage rougher cumulative recoveries in test work
commissioned by Lode and reported in LDR announcement 14 December 2021 titled “High Metal Recoveries in Preliminary Flotation
Test work on Webbs Consol Mineralisation”. It is Lode’s opinion that all the elements included in the metal equivalents calculation have a
reasonable potential to be recovered and sold.
REVIEW OF OPERATIONS
LODE RESOURCES 2024 ANNUAL REPORT 5
A follow up drill program at the Webbs Consol Silver Project commenced subsequent to the end of FY24. This program
had 2 objectives: i) testing for extensions at discovered lodes with multiple high-grade silver intercepts & ii) drilling
untested surface silver occurrences.
Initially this 17-hole 2,200 metre programme is targeting the Webbs Consol North discovery as described above. To
date the majority of extension drilling has been at Tangoa West, in the southern end of the Project, where 12 drill holes
intercepted exceptionally high-grade silver mineralisation down to a vertical depth of 300m.
Another key discovery to be tested is Castlereagh with previous intercepts of 50.0m @ 224 g/t AgEq1 from 17.0m and
47.4m @ 112 g/t AgEq1 from 66.5m, including high-grade zones such as 801 g/t AgEq1 over 4.1m and 720 g/t AgEq1
over 2.0m.
In addition untested surface silver occurrences to be drilled includes the Canoon prospect where a pseudo-gossan with
~ 100m of strike has been delineated and selective grab samples have returned up to 126.0 g/t Ag (It should be noted
that grab samples are qualitative in nature and are not necessarily representative of underlying mineralisation which may
be lower or higher in grade and the dimensions are unknown).
During FY24, Australia’s national science agency, the CSIRO, completed a research study at Lode Resources’ Webbs
Consol Silver Project. In summary findings included:
•
Structural analysis and 3D modelling of Tangoa West, Main Shaft and other prospects identifying potential for lateral
extensions to mineralisation.
•
Relative depth of differing styles of alteration appears constant at all prospects.
•
Comprehensive understanding of mineral deposit genesis enabling comparison with other similar deposits.
•
3D models and the use of innovative geochemical indicators, validated by mineralogical and mineral‐chemical
analyses, suggests distinct mineralisation styles and ore zones.
Figure 3: Centurion Drilling rig on site at the Webbs Consol North Discovery.
REVIEW OF OPERATIONS
6 LODE RESOURCES 2024 ANNUAL REPORT
Figure 4. 3D model of Tangoa West prospect showing drill hole AgEq assays and interpreted lode (blue shell)
as well as both modelled 5.0% Zn anisotropic iso-surfaces from Figures 6. Modelled anisotropic iso-surfaces
based on drill assays, alteration vectors and dominant controlling structural (Orange shell: 85° towards 105° –
3:3:1 & right diagram: 85° towards 60° – 3:3:1). Please note this modelling is conceptual.
REVIEW OF OPERATIONS
LODE RESOURCES 2024 ANNUAL REPORT 7
Uralla Gold Project
During FY24 1,159 auger drill holes were completed across approximately 1.6km2 of the Hudson’s group of prospects
at Lode’s Uralla Gold Project. Multiple drill targets were defined with gold and pathfinder metals gridded, imaged and
contoured showing:
•
Delineation of numerous gold anomaly highs, with assays up to 1,300 ppb Au, each representing a prospective drill
target.
•
~50% of the defined gold anomalies have no hard rock outcrop, potentially indicating blind gold mineralisation, whilst
other gold anomalies have enhanced previous surface work.
•
Dyke/Gracie Lode area gold anomalies appear to form a circular feature potentially representing an intrusive pluton
and large mineralisation system at depth.
•
Pathfinder elements anomalies also potentially represent mineralised lodes which are not obvious near surface.
Future drilling is planned at Uralla designed to test for the presence of an Intrusive Related Gold System (IRGS).
Figure 5. Gold assay gridded image and contouring in the Dyke/Gracie Lode area located within the Hudson’s
group of prospects, Uralla Gold Project.
REVIEW OF OPERATIONS
8 LODE RESOURCES 2024 ANNUAL REPORT
Figure 6. Gold assay grided image and contouring of 1,159 auger drill holes covering the Hudson’s group of pros-
pects, Uralla Gold Project. Higher gold value colours stretched to highlight the strongest anomalies.
Au High
1030ppb
High : 1300
Low : 1
Gumtree Prospect
KTN007: 14.0m @ 1.24 g/t Au from 68m
KTN005: 10.0m @ 1.32g/t Au from 9m
KTN006: 16.0m @ 0.79g/t Au from 10m
Dyke/Gracie Prospects
KTN010: 15.0m @ 2.09g/t Au from 12m
KTN011: 5.0m @ 1.04 g/t Au from 16m
KTN012: 6.0m @ 0.75g/t Au from 39m
Anomalies with
preliminary drill
intercepts
Auger Drill
Assay Image
Au (ppb)
Untested anomalies
Circular feature potentially
representing an intrusive
stock at depth
Martins Shaft Prospect (intercepts > 24 g.m)
SGRDD002: 26.0m @ 2.80 g/t Au from 15.0m
SGRDD004: 18.0m @ 3.51 g/t Au from 52.0m
SGRDD014: 20.0m @ 2.33 g/t Au from 16.0m
SGRDD008: 24.0m @ 1.88 g/t Au from 73.0m
SGRDD010: 35.0m @ 1.10 g/t Au from 78.0m
SGRRC004: 24.0m @ 1.60 g/t Au from 4.0m
SGRRC017: 26.0m @ 1.20 g/t Au from 76.0m
SGRRC003: 29.0m @ 1.21 g/t Au from 25.0m
SGRRC003: 33.0m @ 0.91 g/t Au from 29.0m
SGRRC001: 27.1m @ 1.06 g/t Au from 0.0m
SGRRC006: 17.0m @ 1.61 g/t Au from 35.0m
SGRRC035: 22.0m @ 1.15 g/t Au from 90.0m
SGRRC005: 15.0m @ 1.60 g/t Au from 23.0m
Au High
98ppb
Au High
1300ppb
Au High
99ppb
Au High
998ppb
Au High
333ppb
Au High
107ppb
Au High
90ppb
Au High
86ppb
Au High
741ppb
Au High
57ppb
REVIEW OF OPERATIONS
LODE RESOURCES 2024 ANNUAL REPORT 9
New England Antimony Project
Subsequent to FY24 end Lode Resources announced that exploration activity on the Company’s highly prospective
antimony portfolio was to commence. With the grant of EL9662, Lode has secured additional antimony prospects
including the historic Magwood Antimony Mine, a former significant producer of antimony.
19 antimony prospects have been identified within Lode’s EL9662 and EL9319 which, with a combined area of 1,914
km2, forms a strategic antimony exploration portfolio in an area of significant historical antimony production. The
Magwood mine was in production mainly between 1941 and 1970 with recorded yearly production grades ranging from
4% to 62% Sb and was Australia’s primary antimony producer at the time.
Despite decades of production Magwood has never been drilled and there is almost no historical drilling within Lode’s
wider antimony project area despite the geology being considered highly prospective for orogenic structurally-controlled
antimony mineralisation. Detailed surface work here is almost non-existent.
Lode has now commenced field activities which is expected to ramp up into the December 2024 Quarter and beyond.
Antimony is considered by most western nations to be one of the world’s most critical metals, especially with China
announcing the limitation of antimony exports from 15 September, 2024 due national security concerns. The main uses
of Antimony are in fire-retardants, photovoltaic solar cells and military equipment - the last two being of high strategic
importance.
Figure 7: Location of Lode’s EL9662 With Multiple Antimony Prosects
REVIEW OF OPERATIONS
10 LODE RESOURCES 2024 ANNUAL REPORT
Competent Person’s Statement
The information in this Report that relates to Exploration Results is based on information compiled by Mr Jason Beckton,
who is a Member of the Australian Institute of Geoscientists. Mr Beckton, who is Executive Director – Resource
Development at Lode Resources Ltd, has sufficient experience which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in
the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr
Beckton has a beneficial interest as a shareholder and option holder of Lode Resources Ltd and consents to the inclusion
in this Report of the matters based on the information in the form and context in which it appears.
No material changes
Lode Resources Ltd confirms that it is not aware of any new information or data that would materially affect the
information included in the quarterly activities report dated 31 July 2024 and market announcements dated 22 July
2024,26 August 2024 and 11 September 2024 and that all material assumptions and technical parameters in the market
announcements continue to apply and have not materially changed.
Governance Arrangements
Lode Resources management and Board of Directors include individuals with many years’ work experience in the
mineral exploration and mining industry who monitor all exploration programs and oversee the preparation of reports on
behalf of the Company by independent consultants. The exploration data is produced by or under the direct supervision
of qualified geoscientists. In the case of drill hole data half core samples are preserved for future studies and quality
assurance and quality control. The Company uses only accredited laboratories for analysis of samples and records the
information in electronic databases that are automatically backed up for storage and retrieval purposes.
REVIEW OF OPERATIONS
LODE RESOURCES 2024 ANNUAL REPORT 11
CORPORATE GOVERNANCE STATEMENT
The Board is committed to maintaining the highest standards of Corporate Governance. Corporate Governance is about
having a set of core values and behaviours that underpin the Group’s activities and ensure transparency, fair dealing
and protection of the interests of stakeholders. The Group has reviewed its corporate governance practices against
the Corporate Governance Principles and Recommendations (4th edition) published by the ASX Corporate Governance
Council.
The 2024 corporate governance statement is dated 25 September 2024 and reflects the corporate governance
practices throughout the 2024 financial year. The board approved the 2024 corporate governance on 25 September
2024. A description of the Group’s current corporate governance practices is set out in the Company’s corporate
governance statement, which can be viewed at https://loderesources.com/corporate-governance.
12 LODE RESOURCES 2024 ANNUAL REPORT
DIRECTORS’ REPORT
THE DIRECTORS OF LODE RESOURCES LTD (‘LODE’ OR THE ‘COMPANY’) PRESENT THEIR
REPORT, TOGETHER WITH THE CONSOLIDATED FINANCIAL STATEMENTS OF THE GROUP
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024.
DIRECTORS
The names and details of the Directors in office during or since the end of the previous financial year are as follows.
Directors were in office for the entire year unless otherwise stated.
INFORMATION ON DIRECTORS
Andrew Van Heyst
Chairman
Experience
With more than 30 years’ experience in Industrial Equities and Advisory. Has worked
at Merrill Lynch in New York as Head of Australian Sales and for ABN AMRO as Head
of Australian Sales and Head of Americas Client Account Management for Global
Equity Product. In 2005 Andrew moved back to Australia joining Shaw and Partners
as a Corporate Advisor focussing on Small Cap resources and prior to Lode listing
was Executive Director at Bridge Street Capital Partners.
Interest in Shares and Options
18,392,858 ordinary shares and 71,429 unlisted options
Director since
18 November 2019
Ted Leschke
Managing Director
Experience
With more than 30 years’ experience in the resources industry including Managing
Director of ASX listed resource companies from start up project development
covering areas such as project identification, acquisition and generation, geological
mapping, exploration drilling, local community and government liaison, financial
management, strategy, fund raisings, ASX listing and statutory reporting. Previously
worked as a resource analyst in stockbroking and funds management as well as a
geologist in the mining industry.
Interest in Shares and Options
17,892,858 ordinary shares and 71,429 unlisted options
Director since
18 November 2019
Directorships held in other listed
entities during the last three years
Equus Mining Limited.
Keith Mayes
NonExecutive Director
Experience
With more than 30 years’ experience in the resource sector in exploration, business
development, operational and financial roles with major mining companies including
North Ltd, Newmont, Rio Tinto and Oxiana in Australia, Europe, Middle East and
Africa. Keith is currently Partner at Global Resource Industry Personnel and formerly
GM of Australian Garnet a subsidiary of ASX listed Resource Development Group and
COO at ASX listed KGL Resources that is undertaking exploration and development
of the large Jervois copper/silver/gold project in central Australia and COO at Altura
Mining Ltd where he discovered the world class Pilgangoora lithium deposit.
Interest in Shares and options
371,429 ordinary shares and 535,714 unlisted options
Director since
10 March 2020
Jason Beckton
Executive Director (Resources Development)
Qualifications
Holds BSc (Hons) Melbourne and a Masters of Economic Geology from the University
of Tasmania.
Experience
With more than 25 years of geological corporate experience in Australia, North and
South America and China. Was Project Manager for Bolnisi Gold NL’s Palmerejo silver/
gold project in Mexico where he managed a program defining 3.1moz AuEq. Managed
the discovery of Exeter Resource Corp’s 30 moz AuEq Caspiche Porphyry prospect
in the Maricunga Gold Copper Belt of Chile. Previously MD of ASX listed Chinalco
Yunnan Copper Resources exploring the Mt Isa, Lao and Chilean copper districts.
Interest in Shares and Options
200,000 ordinary shares and 500,000 unlisted options
Director since
29 September 2020
Directorships held in other listed
entities during the last three years
Managing Director of ASX listed Prospech Ltd.
LODE RESOURCES 2024 ANNUAL REPORT 13
DIRECTORS’ REPORT
COMPANY SECRETARY
Marcelo Mora
Company Secretary since 15 September 2020.
Marcelo Mora holds a Bachelor of Business degree and Graduate Diploma of Applied Corporate Governance. Mr Mora
has been an accountant for more than 35 years and has experience in resources and mining companies both in Australia
and internationally, providing financial reporting and company secretarial services to a range of publicly listed companies.
MEETINGS OF DIRECTORS
During the financial year, 2 meeting of directors was held. Attendances by each director during the year were as follows:
DIRECTORS’ MEETINGS
Number eligible to attend
Number attended
Andrew Van Heyst
2
2
Edward Leschke
2
2
Keith Mayes
2
2
Jason Beckton
2
2
DIRECTORS’ INTERESTS
At the date of this report, the beneficial interests of each director of the Company in the issued share capital of the
Company and options, each exercisable to acquire one fully paid ordinary share of the Company are:
Director
Fully Paid
Ordinary Shares
Options over
ordinary shares
Option Terms
(Exercise Price and Term)
Andrew Van Heyst
18,392,858
71,429
$0.24 at any time up to 2 December 2024
Edward Leschke
17,892,858
71,429
$0.24 at any time up to 2 December 2024
Keith Mayes
371,429
250,000
$0.24 at any time up to 2 December 2024
-
35,714
$0.24 at any time up to 2 December 2024
-
(1)250,000
$0.24 at any time up to 6 December 2025
Jason Beckton
200,000
250,000
$0.24 at any time up to 2 December 2024
Jason Beckton
-
(1)250,000
$0.24 at any time up to 6 December 2025
(1) During the year ended 30 June 2024, 500,000 unlisted options were granted as compensation to directors of the
Company (2023: 500,000 unlisted options)
There were no options over unissued ordinary shares granted as compensation to directors or executives of the
Company during or since the end of the financial year.
OPTION HOLDINGS
Unissued Shares under options
Grant Date
Expiry Date
Vesting
Options
Exercise Price
25 August 2022
25 August 2024
Immediately
8,330,500
$0.24
2 December 2022
2 December 2024
Immediately
1,428,572
$0.24
14 February 2023
14 February 2025
Immediately
2,500,000
$0.40
14 February 2023
25 August 2024
Immediately
4,933,333
$0.24
6 December 2023
6 December 2025
Immediately
1,000,000
$0.24
Option holders do not have any rights to participate in any issues of shares or other interests in the Company.
14 LODE RESOURCES 2024 ANNUAL REPORT
DIRECTORS’ REPORT
SHARES ISSUED ON EXERCISE OF OPTIONS
During the financial year ended 30 June 2024, the Company has not issued ordinary shares as a result of the exercise
of options (2023: nil). Since the end of the financial year, the Company has not issued ordinary shares as a result of the
exercise of options.
Principal activities
The principal activities of the Group during the financial year were ongoing drilling campaigns and scientific studies by
CSIRO at its Webbs Consol tenements, auger drilling at Uralla Gold Project and the acquisition of the exploration licence
New England Antimony through Exploration Licence Application and the subsequent granting of the Exploration Licence.
Operating results
The loss of the Group amounted to $1,167,379 (2023: $1,115,531), after providing for income tax.
Review of operations
A review of the Group’s operations for the year ended 30 June 2024 is set out on pages 1 to 11 of this Annual Report.
Dividends paid or recommended
No dividends were paid or declared during the period.
Changes in state of affairs
In the opinion of the Directors, significant changes in the state of affairs of the Group that occurred during the year ended
30 June 2024 were as follows:
•
On 6 December 2023, following shareholders’ approval at the Company’s Annual General Meeting. The Company
issued 500,000 unlisted options to the Non-executive Directors and 500,000 unlisted options to the Exploration
Manager the options have an exercise price of $0.24 and expiring on 6 December 2025 and vesting immediately.
•
On 27 March 2024, Lode Resources Ltd incorporated Lode Metals Pty Ltd.
•
On 11 June 2024, The Group was granted by the NSW government Exploration Licence EL 9662 New England
Antimony. EL 9662 is a new and extensive exploration license that covers an area of 399 units or approximately
1,105 square kilometres and is prospective for orogenic structurally-controlled antimony mineralisation.
Events after the reporting date
Subsequent to year end, on 9 July 2024, the Company announced the appointment of Mr Jason Beckton as Lode’s
Executive Director – Resource Development. Until 8 July 2024, Mr Beckton held the role of Non-Executive Director of
Lode Resources Ltd.
No other matters or circumstances have arisen since the end of the financial year which significantly affected or could
significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in
future financial years.
Future developments and results
During the course of the 2025 financial year, the Company will focus principally on advancing its brownfields and
greenfields exploration of its exploration licenses in the New England Fold Belt in northeastern NSW.
Further information as to the likely developments in the operations of the Company and the expected results of those
operations in future financial years have not been included in this report as the inclusion of such information is likely to
result in unreasonable prejudice to the Company.
Environmental issues
The operations and proposed activities of the Group are subject to State and Federal laws and regulations concerning
the environment. As with most exploration projects and mining operations, the Group’s activities are expected to have an
impact on the environment, particularly if advanced exploration or field development proceeds. It is the Group’s intention
to conduct its activities to the highest standard of environmental obligation, including compliance with all applicable
environmental laws.
LODE RESOURCES 2024 ANNUAL REPORT 15
DIRECTORS’ REPORT
INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS
During or since the end of the financial year, the Group has not indemnified or made a relevant agreement to indemnify
an officer or auditor of the Company against a liability incurred as such by an officer or auditor. The Group has not paid or
agreed to pay, a premium in respect of a contract insuring against a liability incurred by an officer or auditor.
REMUNERATION REPORT - AUDITED
Principals of compensation
Key management personnel have authority and responsibility for planning, directing, and controlling the activities of the
Company. Key management personnel comprises the directors of the Company. No other employees have been deemed
to be key management personnel.
The remuneration policy of Directors is to ensure the remuneration package properly reflects the persons’ duties and
responsibilities, and that remuneration is competitive in attracting, retaining, and motivating people of the highest quality.
The Board is responsible for reviewing its own performance. The evaluation process is designed to assess the Group’s
business performance, whether long-term strategic objectives are being achieved, and the achievement of individual
performance objectives.
The Constitution and ASX Listing Rules specify that the aggregate remuneration of Non-Executive Directors shall be
determined from time to time by a general meeting.
Remuneration generally comprises of salary and superannuation. Long-term incentives are able to be provided through
the Company’s share option program at the discretion of directors, which acts, to align the Director’s and senior
executive’s actions with the interests of the shareholders.
The remuneration disclosed below represents the cost to the Company for services provided under these arrangements.
Andrew Van Heyst and Edward Leschke are paid through the Company’s payroll. All other Director’s services are paid by
way of an arrangement with the director or with related parties.
There were no remuneration consultants used by the Company during the year ended 30 June 2024 or in the prior year.
Consequences of performance on shareholders’ wealth
In considering the Company’s performance and benefits for shareholders’ wealth, the Board has regard to the following
indices in respect of the current financial year and the previous financial year.
2024
$
2023
$
2022
$
2021
$
Net loss attributable to equity holders of the parent
1,167,379
1,115,531
970,510
574,934
Dividends paid
-
-
-
-
Change in share price
(0.08)
0.005
(0.02)
-
The overall level of key management personnel’s compensation has been determined based on market conditions, the
advancement of the Company’s projects, and the financial performance of the Company.
Remuneration Structure
In accordance with better practice corporate governance, the structure of Executive Director and Non-Executive Director
remuneration is separate and distinct.
16 LODE RESOURCES 2024 ANNUAL REPORT
DIRECTORS’ REPORT
Service contracts
In accordance with better practice corporate governance, the company provided each key management personnel with
a letter detailing the terms of appointment, including their remuneration. Key management personnel may at any time
resign by written notice.
Details of the nature and amount of each major element of the remuneration of each Director of the Company and other
key management personnel of the Company and Group are:
Year
Primary
Salary / Fees
$
Super-
annuation
$
Share-based
Payment
$
Short Term
Benefit
$
Total
$
Executive Directors
Andrew Van Heyst
2024
220,000
24,200
-
6,769
250,969
2023
181,250
19,031
-
4,885
205,166
Edward Leschke
2024
247,500
27,225
-
7,616
282,341
2023
218,750
22,969
-
25,752
267,471
Non-Executive Directors
Jason Beckton
2024
50,000
-
13,750
-
63,750
2023
50,000
-
13,500
-
63,500
Keith Mayes
2024
50,000
-
13,750
-
63,750
2023
50,000
-
13,500
-
63,500
Total all directors
2024
567,500
51,425
27,500
14,385
660,810
2023
500,000
42,000
27,000
30,637
599,637
Executive Directors
During the financial year ended 30 June 2024, Andrew Van Heyst and Edward Leschke were considered Executive
Directors. Their remuneration for the year ended 30 June 2024 comprised of fixed remuneration, free of performance
conditions, plus 11% statutory superannuation paid through the Company’s payroll.
Options granted as compensation
No bonuses were paid during the financial year. During the year ended 30 June 2024, 500,000 unlisted options were
issued to directors of the Company or Key Management personnel (2023: 500,000). Refer below for the options granted
during the financial year ended 30 June 2024 to Jason Beckton and Keith Mayes. The Company employed no other key
management personnel.
The options granted to non-executive directors were not subject to any performance or service conditions and vested
immediately on the issue of the options.
Director
Grant Date
Number
of Options
Granted
Fair value
per option
at grant date
Fair Value at
Grant Date
Option Terms
(Exercise Price and Term)
Jason Beckton
24 October 2023
(1)250,000
$0.055
$13,750
$0.24 at any time to 6 December 2025
21 October 2022
(2)250,000
$0.054
$13,500
$0.24 at any time to 2 December 2024
Keith Mayes
24 October 2023
(1)250,000
$0.055
$13,750
$0.24 at any time to 6 December 2025
21 October 2022
(2)250,000
$0.054
$13,500
$0.24 at any time to 2 December 2024
(1) The fair value of the 500,000 options at the grant date was determined based on a Black- Scholes formula. The
model inputs of the options issued were the share price of $0.098, a volatility factor of 140.20%, a risk-free rate of
4.22% based on the 2-year government bond rate, and no dividends paid.
(2) The fair value of the 500,000 options at the grant date was determined based on a Black- Scholes formula. The
model inputs of the options issued were the share price of $0.125, a volatility factor of 106.15%, a risk-free rate of
3.62% based on the 2-year government bond rate, and no dividends paid.
During the year 1,000,000 options lapsed unexercised (2023: nil) and no options held by key management personnel
were exercised during the 2024 or 2023 financial years.
LODE RESOURCES 2024 ANNUAL REPORT 17
DIRECTORS’ REPORT
Modification of terms of equity-settled share-based payment transactions
No terms of equity-settled share-based payment transactions (including options granted as compensation to a key
management person) have been altered or modified by the issuing entity during the 2024 and 2023 financial years.
Exercise of options granted as compensation
There were no shares issued to Directors on the exercise of options previously granted as compensation during the
2024 and 2023 financial years.
Analysis of options and rights over equity instruments granted as compensation
All options refer to options over ordinary shares of Lode Resources Ltd, which are exercisable on a one-for-one basis.
Director
Options granted
% vested at
year end
Expired during
the year
Balance at
year end
Financial year in
which grant vests
Number
Date
Jason Beckton
500,000
31 March 2021
100%
500,000
-
30 June 2021
250,000
21 October 2022
100%
-
250,000
30 June 2023
250,000
24 October 2023
100%
-
250,000
30 June 2024
Keith Mayes
500,000
31 March 2021
100%
500,000
-
30 June 2021
250,000
21 October 2022
100%
-
250,000
30 June 2023
250,000
24 October 2023
100%
-
250,000
30 June 2024
The number of options that had vested at 30 June 2024 is 500,000 (2023 – 500,000). 500,000 options were granted as
remuneration during the year (2023: 500,000). No options were granted as compensation subsequent to year-end.
Analysis of movements in options granted as compensation
No options were granted or exercised during the year.
Options and rights over equity instruments
The movement during the reporting period in the number of options over ordinary shares in the Company held directly,
indirectly or beneficially, by each key management person, including their personally related entities, is as follows:
Option holdings 2024
Directors
Held at
1 July 2023
Granted/
Purchased
Exercised /
Sold
Expired
Held at
30 June 2024
Vested and exercisable
at 30 June 2024
Andrew Van Heyst
71,429
-
-
-
71,429
71,429
Edward Leschke
71,429
-
-
-
71,429
71,429
Jason Beckton
750,000
250,000
-
(500,000)
500,000
500,000
Keith Mayes
785,714
250,000
-
(500,000)
535,714
535,714
18 LODE RESOURCES 2024 ANNUAL REPORT
DIRECTORS’ REPORT
Loans to key management personnel and their related parties
There were no loans made to key management personnel or their related parties during the 2024 and 2023 financial
years and no amounts were outstanding at 30 June 2024 (2023 - $nil).
Other transactions with key management personnel
There were no other transactions with key management personnel or their related parties during 2024.
At 30 June 2024, the amount outstanding for salaries, superannuation and directors’ fees were $nil (2023: $nil).
Movements in shares
The movement during the reporting period in the number of ordinary shares in the Company held directly, indirectly or
beneficially by each key management personnel, including their related parties, is as follows:
Fully paid ordinary shareholdings and transactions - 2024
Key management personnel
Held at 30 June 2023
Purchases
Sales
Other
Held at 30 June 2024
Andrew Van Heyst
21,392,858
-
(3,000,000)
-
18,392,858
Edward Leschke
20,892,858
-
(3,000,000)
-
17,892,858
Jason Beckton
200,000
-
-
-
200,000
Keith Mayes
371,429
-
-
-
371,429
Non-Executive Directors
During the financial year ended 30 June 2024, the following Directors were considered Non-Executive Directors:
•
Jason Beckton;
•
Keith Mayes.
The salary component of Non-Executive Directors was made up of:
•
fixed fees paid by way of arrangements with related parties; and
•
entitlement to receive options when invited by the Board and subject to shareholders’ approval.
End of remuneration report.
LODE RESOURCES 2024 ANNUAL REPORT 19
DIRECTORS’ REPORT
NON-AUDIT SERVICES
During the years ended 30 June 2024 and 30 June 2023, PKF, the Company’s auditor, did not perform other services in
addition to the audit and review of the financial statements.
Lead Auditor’s Independence Declaration
The Lead Auditor’s Independence Declaration is set out on page 21 and forms part of the Directors’ Report for the
financial year ended 30 June 2024.
Signed at Sydney this 25th day of September 2024 in accordance with a resolution of the Board of Directors:
Andrew M. Van Heyst
Edward J. Leschke
Executive Chairman
Managing Director
20 LODE RESOURCES 2024 ANNUAL REPORT
AUDITOR’S INDEPENDENCE DECLARATION
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PKF(NS) Audit & Assurance Limited Partnership is a member of PKF Global, the network of member firms of PKF
International Limited, each of which is a separately owned legal entity and does not accept any responsibility or
liability for the actions or inactions of any individual member or correspondent firm(s). Liability limited by a
scheme approved under Professional Standards Legislation.
PKF(NS) Audit & Assurance Limited Partnership
ABN 91 850 861 839
755 Hunter Street, Newcastle West NSW 2302
Level 8, 1 O’Connell Street, Sydney NSW 2000
Newcastle T: +61 2 4962 2688 F: +61 2 4962 3245
Sydney T: +61 2 8346 6000 F: +61 2 8346 6099
info@pkf.com.au
www.pkf.com.au
LODE RESOURCES 2024 ANNUAL REPORT 21
CONSOLIDATED STATEMENT OF PROFIT OR
LOSS AND OTHER COMPREHENSIVE INCOME
For the Year Ended 30 June 2024
Notes
30 June 2024
$
30 June 2023
$
CONTINUING OPERATIONS
Other income
-
-
Expenses
Administration and consultants’ expenses
(195,289)
(201,441)
Employee, directors and consultants costs
(707,391)
(616,436)
Impairment of exploration and evaluation assets
(21,556)
-
Amortisation and depreciation
(32,529)
(31,228)
Travel expenses
(77,856)
(39,976)
Legal and professional expenses
(2,255)
(17,874)
Other expenses
5
(270,750)
(284,844)
Operating loss before financing income and expense
(1,307,626)
(1,191,799)
Interest income
6
145,823
77,345
Interest expense
6
(5,576)
(1,077)
Net finance income
140,247
76,268
Loss before income tax
(1,167,379)
(1,115,531)
Income tax benefit/(expense)
4
-
-
Loss for the period
(1,167,379)
(1,115,531)
Other comprehensive income for the period
-
-
Total comprehensive loss for the period
(1,167,379)
(1,115,531)
Earnings per share
Basic and diluted loss per share
16
(0.0109)
(0.0116)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income
should be read in conjunction with the accompanying notes.
22 LODE RESOURCES 2024 ANNUAL REPORT
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
For the Year Ended 30 June 2024
Notes
30 June 2024
$
30 June 2023
$
Current assets
Cash and cash equivalents
7
2,277,317
4,845,931
Trade and other receivables
8
19,075
93,126
Other assets
-
3,899
Total current assets
2,296,392
4,942,956
Non-current assets
Other financial assets
9
465,638
395,563
Property, plant and equipment
10
35,368
2,602
Exploration and evaluation assets
11
5,167,025
4,172,070
Total non-current assets
5,668,031
4,570,235
Total assets
7,964,423
9,513,191
Current liabilities
Trade and other payables
12
77,174
571,214
Employee entitlements
12
65,242
42,876
Lease liability
13
35,097
2,299
Total current liabilities
177,513
616,389
Non–current liabilities
Lease liability
13
2,487
-
Total non-current liabilities
2,487
-
Total liabilities
180,000
616,389
Net assets
7,784,423
8,896,802
Equity
Issued capital
14
9,113,475
9,113,475
Reserves
15
2,386,633
2,466,633
Accumulated losses
(3,715,685)
(2,683,306)
Total equity
7,784,423
8,896,802
The above Consolidated Statement of Financial Position
should be read in conjunction with the accompanying notes.
LODE RESOURCES 2024 ANNUAL REPORT 23
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Year Ended 30 June 2024
Issued
capital
$
Option premium
reserve
$
Accumulated
losses
$
Total
$
Balance at 1 July 2022
5,611,514
135,000
(1,567,775)
4,178,739
Loss for the year
-
-
(1,115,531)
(1,115,531)
Total other comprehensive income
-
-
-
-
Total comprehensive loss for the year
-
-
(1,115,531)
(1,115,531)
Transactions with owners recorded directly in equity
Ordinary shares issued
4,688,657
1,433,883
-
6,122,540
Transaction costs on issue of shares
(1,186,696)
-
-
(1,186,696)
Share base payments
-
897,750
-
897,750
Balance at 30 June 2023
9,113,475
2,466,633
(2,683,306)
8,896,802
Balance at 1 July 2023
9,113,475
2,466,633
(2,683,306)
8,896,802
Loss for the year
-
-
(1,167,379)
(1,167,379)
Total other comprehensive income
-
-
-
-
Total comprehensive loss for the year
-
-
(1,167,379)
(1,167,379)
Transactions with owners recorded directly in equity
Ordinary shares issued
-
-
-
-
Transfer of expired options
-
(135,000)
135,000
-
Share base payments
-
55,000
-
55,000
Balance at 30 June 2024
9,113,475
2,386,633
(3,715,685)
7,784,423
The above Consolidated Statement of Changes in Equity
should be read in conjunction with the accompanying notes.
24 LODE RESOURCES 2024 ANNUAL REPORT
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended 30 June 2024
Notes
30 June 2024
$
30 June 2023
$
Cash flows from operating activities
Cash payments in the course of operations
(1,204,564)
(1,043,718)
Interest received
145,823
77,345
Net cash used in operating activities
17
(1,058,741)
(966,373)
Cash flows from investing activities
Payments for exploration and evaluation expenditure
(1,404,212)
(1,873,629)
Payments for security deposits
(80,075)
(229,535)
Refund for security deposits
10,000
-
Net cash used in investing activities
(1,474,287)
(2,103,164)
Cash flows from financing activities
Proceeds from share issues
-
6,122,541
Transaction costs on share issue
-
(354,196)
Lease payments
(35,586)
(33,887)
Net cash provided / (used in) by financing activities
(35,586)
5,734,458
Net increase / (decrease) in cash held
(2,568,614)
2,664,921
Cash at the beginning of the reporting period
4,845,931
2,181,010
Cash and cash equivalents at 30 June
7
2,277,317
4,845,931
The above Consolidated Statement of Cash Flows
should be read in conjunction with the accompanying notes.
LODE RESOURCES 2024 ANNUAL REPORT 25
1.
REPORTING ENTITY
Lode Resources Ltd (the ‘Company’) is a company domiciled in Australia as an individual entity. The address
of the Company’s registered office is Level 5, 1 Margaret Street, Sydney, NSW, 2000. The consolidated
financial statements, of the Company as at and for the year ended 30 June 2024 comprise the Company and
its subsidiary (together referred to as the “Group’). The Group is a for-profit entity and is primarily engaged in
identifying and evaluating gold, copper, and silver resource opportunities in New England Fold Belt of New
South Wales.
2.
BASIS OF PREPARATION
(a) Statement of compliance
The consolidated 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. The consolidated financial statements comply with International
Financial Reporting Standards (‘IFRSs’) and interpretations adopted by the International Accounting Standards
Board (‘IASB’).
The consolidated financial statements were authorised for issue by the Directors on 25 September 2024.
(b) Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis except for certain
financial assets which are measured at fair value.
(c) Functional and presentation currency
These consolidated financial statements are presented in Australian dollars, which is the Company’s functional
currency.
(d) Use of estimates and judgement
The preparation of the consolidated financial statements are in conformity with AASBs and requires
management to make judgments, estimates, and assumptions that affect the application of accounting policies
and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these
estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in any future periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgments in applying
accounting policies that have the most significant effect on the amount recognised in the financial statements
are described in the following notes:
•
Note 11 – Exploration and evaluation expenditure.
•
Note 14 – Valuation of share based payments.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2024
26 LODE RESOURCES 2024 ANNUAL REPORT
3.
MATERIAL ACCOUNTING POLICIES
(a) Exploration and evaluation expenditure
Exploration and evaluation expenditure, including the costs of acquiring licences, are capitalised as intangible
exploration and evaluation assets on an area of interest basis, less any impairment losses. Costs incurred before
the Company has obtained the legal rights to explore an area are recognised in profit or loss.
Exploration and evaluation assets are only recognised if the rights of the area of interest are current and either:
•
the expenditures are expected to be recouped through successful development and exploitation of the area
of interest; or
•
activities in the area of interest have not at the reporting date, 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 purposes 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 to developing mine properties.
(b) Segment reporting
Determination and presentation of operating segments
The Company determines and presents operating segments based on the information that is provided internally
to the Executive Directors, who are the Company’s chief operating decision maker.
An operating segment is a component of the Company that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of
the Company’s other components. All operating segments’ operating results are regularly reviewed by the
Company’s Executive Directors to make decisions about resources to be allocated to the segment and assess its
performance, and for which discrete financial information is available.
Segment results that are reported to the Executive Directors include items directly attributable to a segment as
well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets
(primarily the Company’s headquarters), head office expenses, and income tax assets and liabilities.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and
equipment, and intangible assets other than goodwill.
(c) Comparative information
Certain comparative amounts, which are not deemed to be material, have been disclosed or reclassified where
necessary to provide consistency with current period disclosures.
(d) New and revised accounting standards and interpretations
The Company has adopted all standards which became effective for the first time in the year ended 30 June
2024.
The AASB has issued new and amended accounting standards and interpretations that have mandatory
application dates in future reporting periods. The Company has decided not to early adopt these and has
assessed their impact as being immaterial.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2024
LODE RESOURCES 2024 ANNUAL REPORT 27
4.
INCOME TAX EXPENSE
2024
$
2023
$
(a) Reconciliation of income tax accounting profit:
Prima Facie tax payable on profit from ordinary activities before
income tax at 25% (2023: 25%)
(291,844)
(278,883)
Add tax effect off:
- origination and reversal of temporary differences
7,409
2,739
- non-deductible expenses
5,307
21,144
- deferred tax assets not recognised
279,128
255,000
Income tax expense
-
-
At 30 June 2024, the Company had unrecognised unused tax losses of $9,176,978 (2023: $6,894,872).
5.
LOSS FROM OPERATING ACTIVITIES
The following items are relevant in explaining the financial performance for the year ended 30 June 2024
Other Expenses
Accounting and audit fees
95,109
81,820
Marketing
68,227
73,509
IT expenses
5,600
12,180
Insurance
40,179
37,539
Listing and compliance expenses
61,635
79,796
Total
270,750
284,844
6.
FINANCE INCOME AND FINANCE COSTS
Recognised in profit and loss
Interest income on cash deposits
145,823
77,345
Finance costs
(5,576)
(1,077)
Net finance income/(costs) recognised in profit and loss
140,247
76,268
7.
CASH AND CASH EQUIVALENTS
Cash at bank
519,802
790,407
Deposit at call
1,757,515
4,055,524
2,277,317
4,845,931
8.
TRADE AND OTHER RECEIVABLES
Current
GST receivable
19,075
93,126
19,075
93,126
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2024
28 LODE RESOURCES 2024 ANNUAL REPORT
9.
OTHER FINANCIAL ASSETS
2024
$
2023
$
Non-current
Security deposits
315,603
245,528
Net smelter royalty EL5674
150,035
150,035
465,638
395,563
10.
PROPERTY PLANT AND EQUIPMENT
Right of use assets – leased property – at cost
65,295
62,455
Accumulated depreciation
(29,927)
(59,853)
Total right of use assets – leased property
35,368
2,602
Total property plant and equipment
35,368
2,602
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and
the end of the current financial year:
Right of use assets
Balance at 1 July
2,602
33,830
Additions new lease
65,295
-
Depreciation
(32,529)
(31,228)
Total carrying amount at the end of the financial year
35,368
2,602
11.
EXPLORATION AND EVALUATION EXPENDITURE
EL 8933 Webbs Consol
3,664,104
2,942,350
EL 8980 Uralla
1,008,005
824,424
EL 9003 Fender
314,086
281,857
EL 9004 Elsinore
-
21,556
EL 9084 Tea Tree
21,738
16,303
EL 9085 Thor Gold
44,855
32,113
EL 9319 Sandon
64,204
36,419
EL 9087 Uralla West
22,713
17,048
EL 9454 Webbs Extension
3,280
-
EL 9662 New England Antimony
24,040
-
Net book value
5,167,025
4,172,070
Balance at 1 July
4,172,070
2,159,105
Expenditure incurred
1,016,511
2,012,965
Impairment
(21,556)
-
Net book value
5,167,025
4,172,070
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on the
successful development and commercial exploitation, or alternatively, sale of the respective areas of interest.
The recoverable amount of development expenditure is determined as the higher of its fair value less costs to
sell and its value in use.
During the year ended 30 June 2024, Lode was granted Exploration Licence EL 9662 New England Antimony.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2024
LODE RESOURCES 2024 ANNUAL REPORT 29
12.
TRADE AND OTHER PAYABLES
2024
$
2023
$
CURRENT
Trade payables
29,209
447,326
Sundry payables and accrued expenses
18,086
52,832
Related party payables
-
7,713
Other payables
29,879
63,343
77,174
571,214
CURRENT
Employee benefits
65,242
42,876
65,242
42,876
13.
LEASE LIABILITY
Current
Lease liability
35,097
2,299
Non-current
Lease liability
2,487
-
37,584
2,299
14.
ISSUED CAPITAL
(a) Issued and paid-up share capital
30 June 2024
30 June 2023
Number
$
Number
$
Ordinary shares, fully paid at 1 July
106,784,145
9,113,475
79,966,002
5,611,514
Movement in Ordinary Shares:
Issued ordinary shares 17 August 2022 for $0.14(1)
-
-
11,661,000
1,419,657
Issued ordinary shares 2 December 2022 for $0.14
-
-
357,143
50,000
Issued ordinary shares 14 February 2023 for $0.30(2)
-
-
14,800,000
3,219,000
Less cost of issue
-
-
-
(1,186,696)
106,784,145
9,113,475
106,784,145
9,113,475
(1) In August 2022, the Company issued 11,661,000 ordinary shares and 5,830,500 listed options for cash
totalling $1,632,540 under a share placement and 2,500,000 listed options to the lead manager of the
placement. The listed options are each exercisable at $0.24 to acquire one fully paid ordinary share
exercisable at any time up to 25 August 2024.
(2) In February 2023, the Company issued 14,800,000 ordinary shares and 4,933,333 listed options for cash
totalling $4,440,000 under a share placement. The listed options are each exercisable at $0.24 to acquire
one fully paid ordinary share exercisable at any time up to 25 August 2024.
Terms and conditions - Shares
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled
to one vote per share at the shareholder’s meetings. In the event of winding up of the Company, ordinary
shareholders rank after creditors and are fully entitled to any proceeds of liquidation.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2024
30 LODE RESOURCES 2024 ANNUAL REPORT
14.
ISSUED CAPITAL (CONT.)
(b) Share based payment
The following unlisted options were on issue at 30 June 2024:
On 8 December 2022, the Company granted 500,000 unlisted options to the Exploration Manager and 250,000
unlisted options to the Company Secretary. The options have an exercise price of $0.24, vest immediately,
expire on 2 December 2024 and the fair value of the options was $38,250. The Black-Scholes formula model
inputs were the Company’s share price of $0.13 at the grant date, a volatility factor of 102.17% based on
historical share price performance, and a risk-free interest rate of 2.99% based on the 2-year government bond
rate.
On 2 February 2023, the Company granted 2,500,000 unlisted options to the Lead Manager of the Share
Placement announced on 6 February 2023. The options have an exercise price of $0.40, vest immediately,
expire on 14 February 2025 and the fair value of the options was $570,000. The Black-Scholes formula model
inputs were the Company’s share price of $0.335 at the grant date, a volatility factor of 144.64% based on
historical share price performance, and a risk-free interest rate of 3.13% based on the 3-year government bond
rate.
On 24 October 2023, the Company granted 500,000 unlisted options to the Exploration Manager. The options
have an exercise price of $0.24, vest immediately, expire on 6 December 2025 and the fair value of the options
was $27,500. The Black-Scholes formula model inputs were the Company’s share price of $0.098 at the grant
date, a volatility factor of 140.20% based on historical share price performance, and a risk-free interest rate of
4.22% based on the 2-year government bond rate.
The following unlisted options were on issue as at 30 June 2024.
Opening Balance
1 July 2023
Number
Exercise
price
$
Granted during
the year
Number
Expired during
the year
Number
Exercised during
the year
Number
Closing Balance
30 June 2024
Number
500,000
0.30
-
(500,000)
-
-
750,000
0.24
-
-
-
750,000
2,500,000
0.40
-
-
-
2,500,000
-
0.24
500,000
-
-
500,000
The following unlisted options held by Key management personnel were on issue at 30 June 2024.
On 21 October 2022, the Company granted 500,000 unlisted options to Keith Mayes and Jason Beckton
Non-Executive Directors. The options have an exercise price of $0.24, vest immediately, expire on 2 December
2024 and the fair value of the options was $27,000. The Black-Scholes formula model inputs were the
Company’s share price of $0.125 at the grant date, a volatility factor of 106.15% based on historical share price
performance, and a risk-free interest rate of 3.62% based on the 2-year government bond rate.
On 24 October 2023, the Company granted 500,000 unlisted options to Non-executive Directors. The options
have an exercise price of $0.24, vest immediately, expire on 6 December 2025 and the fair value of the options
was $27,500. The Black-Scholes formula model inputs were the Company’s share price of $0.098 at the grant
date, a volatility factor of 140.20% based on historical share price performance, and a risk-free interest rate of
4.22% based on the 2-year government bond rate
The terms and conditions of the unlisted options held by key management personnel during the year ended 30
June 2024 are as follows:
Opening Balance
1 July 2023
Number
Exercise
price
$
Granted during
the year
Number
Expired during
the year
Number
Exercised during
the year
Number
Closing Balance
30 June 2024
Number
1,000,000
0.30
-
(1,000,000)
-
-
500,000
0.24
-
-
-
500,000
-
0.24
500,000
-
-
500,000
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2024
LODE RESOURCES 2024 ANNUAL REPORT 31
14.
ISSUED CAPITAL (CONT.)
The following unlisted options were on issue as at 30 June 2024:
Opening Balance
1 July 2023
Number
Exercise
Price
$
Granted during
the year
Number
Expired during
the year
Number
Exercised during
the year
Number
Closing Balance
30 June 2024
Number
1,000,000
0.30
-
(1,000,000)
-
-
500,000
0.30
-
(500,000)
-
-
750,000
0.24
-
-
-
750,000
2,500,000
0.40
-
-
-
2,500,000
500,000
0.24
-
-
-
500,000
0.24
1,000,000
-
-
1,000,000
The following unlisted options were on issue as at 30 June 2023:
Opening Balance
1 July 2022
Number
Exercise
Price
$
Granted during
the year
Number
Expired during
the year
Number
Exercised during
the year
Number
Closing Balance
30 June 2023
Number
1,000,000
0.30
-
-
-
1,000,000
500,000
0.30
-
-
-
500,000
-
0.24
750,000
-
-
750,000
-
0.40
2,500,000
-
-
2,500,000
-
0.24
500,000
-
-
500,000
15.
RESERVES
2024
$
2023
$
Equity based compensation reserve
952,750
1,032,750
Option premium reserve
1,433,883
1,433,883
2,386,633
2,466,633
Movement during the period
Equity based compensation reserve
Balance at the beginning of the year
1,032,750
135,000
Options expired during the period transferred to retained earnings
(135,000)
-
Share based payment – vested share options
55,000
897,750
Balance at the end of year
952,750
1,032,750
Option premium reserve
Balance at the beginning of the year
1,433,883
-
Issue of options
-
1,433,883
Balance at the end of year
1,433,883
1,433,883
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2024
32 LODE RESOURCES 2024 ANNUAL REPORT
16.
LOSS PER SHARE
2024
$
2023
$
Basic and diluted loss per share has been calculated using:
Net loss for the year attributable to equity holders of the company
(1,167,379)
(1,115,531)
Weighted average number of ordinary shares (basic and diluted)
Issued ordinary shares at beginning of year
106,784,145
79,966,002
Effect of shares issued (Note 14)
-
15,891,035
Weighted average ordinary shares at the end of the year
106,784,145
95,857,037
As the Company is loss making, none of the potentially dilutive securities are currently dilutive in the calculation
of total earnings per share.
17.
RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES
Cash flows from operating activities
Loss for the year
(1,167,379)
(1,115,531)
Non-cash items
Depreciation / amortisation
32,529
31,228
Share based payments
55,000
65,250
Employee entitlements
22,366
9,186
Impairment exploration and evaluation
21,556
-
Other expenses
-
29,007
Changes in assets and liabilities
Decrease/(increase) in receivables
35,280
13,934
Decrease/(increase) in other assets
3,899
(13,415)
(Decrease)/Increase in payables
(61,992)
13,968
Net cash used in operating activities
(1,058,741)
(966,373)
18.
CONTINGENCIES
In the opinion of the Directors, the Company did not have any contingencies at 30 June 2024 (2023: none).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2024
LODE RESOURCES 2024 ANNUAL REPORT 33
19.
CAPITAL AND LEASING COMMITMENTS
The NSW Division of Resource and Geoscience requires a commitment to a work program rather than an
expenditure commitment. Work programs can be varied annually. The Company has budgeted minimum work
programs for each year as shown below. However, it is anticipated that early exploration success in any project
will result in higher expenditures for that project.
Project Name
License
Expiry date
2025
$
2026
$
2027
$
2028
$
2029
$
Webbs Consol
EL8933
16 January 2029
102,000
102,000
102,000
102,000
102,000
Uralla
EL8980
14 May 2027
155,000
155,000
155,000
-
-
Fender
EL9003
12 October 2023
55,000
55,000
55,000
55,000
55,000
Tea Tree
EL9084
11 March 2024
35,000
35,000
35,000
-
-
Thor
EL9085
11 March 2024
38,000
38,000
38,000
-
-
Uralla West
EL9087
12 March 2024
51,000
51,000
51,000
-
-
Sandon
EL9319
29 October 2024
-
-
-
-
-
Webbs Consol Expanded
EL9454
7 September 2025
28,000
28,000
-
-
-
New England Antimony
EL9662
11 June 2027
171,000
171,000
171,000
-
-
Total
635,000
635,000
607,000
157,000
157,000
20.
RELATED PARTIES
The Company’s main related parties are:
Key management personnel who comprise the Board of Directors.
Other related parties include close family members of key management personnel and entities that are
controlled or significantly influenced by those key management personnel or their close family members.
Transactions between related parties are on normal commercial terms and conditions no more favourable than
those available to other parties unless otherwise stated.
No directors have entered into a material contract with the Company and there were no material contracts
involving directors’ interests existing at 30 June 2024.
Key management personnel and director transactions
During the years ended 30 June 2024 and 2023, no key management persons, or their related parties, held
positions in other entities that provide material professional services resulting in them having control or joint
control over the financial or operating policies of those entities.
Information regarding individual key management personnel’s compensation and some equity instruments
disclosures as permitted by Corporations Act and Corporations Regulations 2M.3.03 are provided in the
Remuneration Report section of the Director’s Report.
2024
$
2023
$
Key management personnel compensation
Primary fees/salary
567,500
500,000
Superannuation
51,425
42,000
Share based payment
27,500
27,000
Short term benefits
14,385
30,637
660,810
599,637
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2024
34 LODE RESOURCES 2024 ANNUAL REPORT
21.
SHARE-BASED PAYMENTS
At 30 June 2024 Lode Resources Ltd has the following sharebased payment schemes:
During the year the Company has granted 500,000 unlisted options to key management personnel to acquire
options over unissued ordinary shares in the Company (2023 – 500,000). The options have no voting or
dividend rights. The options vested immediately on Grant Date and there are no vesting conditions attached to
the options issued. Any options not exercised by the expiry date will lapse automatically.
The terms and conditions of the options held by key management personnel during the year ended 30 June
2024 are as follows:
Grant date
Expiry date
Exercise
price
Start of
the year
Granted
during
the year
Exercised
during
the year
Forfeited
during the
year
Balance
at the
end of
the year
Vested and
exercisable
at the end
of the year
31 March 2021
2 July 2023
$0.30
1,000,000
-
-
(1,000,000)
-
-
21 October 2022 2 December 2024
$0.24
500,000
-
-
- 500,000
500,000
24 October 2024 6 December 2025
$0.24
- 500,000
-
- 500,000
500,000
The weighted average remaining contractual life of options outstanding at year end was 0.093 years (2023:
0.48). The weighted average exercise price of outstanding shares at the end of the reporting period was $0.28.
The equity-based compensation reserve is used to record the options issued to directors and executives of the
Company as compensation. Options are valued using the Black-Scholes option pricing model.
22.
FINANCIAL RISK MANAGEMENT
The Company is exposed to a variety of financial risks through its use of financial instruments.
The Company‘s overall risk management plan seeks to minimise potential adverse effects due to the
unpredictability of financial markets.
Financial instruments used
The principal financial instruments used by the Company are summarised as follows:
2024
$
2023
$
Financial assets
Held at amortised cost
Cash and cash equivalents
2,277,317
4,845,931
Security deposits
315,603
245,528
Total financial assets
2,592,920
5,091,459
Financial liabilities
Financial liabilities at amortised cost
150,121
553,046
Total financial liabilities
150,121
553,046
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2024
LODE RESOURCES 2024 ANNUAL REPORT 35
22.
FINANCIAL RISK MANAGEMENT (CONT.)
Objectives, policies and processes
The Board of Directors have overall responsibility for the establishment of Lode Resource’s financial risk
management framework. This includes the development of policies covering specific areas such as foreign
exchange risk, interest rate risk, liquidity risk, credit risk and the use of derivatives.
Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the
Company’s activities.
Mitigation strategies for specific risks faced are described below:
Liquidity risk
Liquidity risk arises from the Company’s management of working capital. It is the risk that the Company will
encounter difficulty in meeting its financial obligations as they fall due. The Company’s policy is to ensure that it
will always have sufficient cash to allow it to meet its liabilities as and when they fall due.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial
loss to the Company.
Credit risk arises from cash and cash equivalents and deposits held.
The credit risk for liquid funds and other short-term financial assets is considered negligible since the
counterparties are reputable banks and governmental bodies with high-quality external credit ratings.
Interest rate risk
The Company’s income statement is affected by changes in interest rates due to the impact of such changes on
the interest income from cash and cash equivalents and interest-bearing security deposits.
23.
OPERATING SEGMENTS
The Company’s chief operating decision maker has considered the requirements of AASB 8, Operating
Segments, and has concluded that, for the year ended 30 June 2024, the Company operated in the mineral
exploration within the geographical segments of Australia with no separate reportable segment.
24.
SUPERANNUATION EXPENSE
Employee benefit expense includes defined contribution expense of $52,525 (2023: $42,000).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2024
36 LODE RESOURCES 2024 ANNUAL REPORT
25.
REMUNERATION OF AUDITORS
During the financial year, the following fees were paid or were payable for services provided by the auditor, PKF,
of the Company:
2024
$
2023
$
Audit services
47,381
41,803
47,381
41,803
26.
IMPUTATION CREDITS
Imputation credits of $nil were available for distribution at 30 June 2024 (2023: $nil).
27.
CONTROLLED ENTITIES
Parent entity
Lode Resources Ltd is an Australian incorporated company listed on the Australian Securities Exchange.
Ownership Interest
Wholly owned controlled entities
Country of incorporation
2024
%
2023
%
Lode Metals Pty Ltd
Australia
100%
-
28.
SUBSEQUENT EVENTS
Subsequent to year end, on 9 July 2024, the Company announced the appointment of Mr Jason Beckton as
Lode’s Executive Director – Resource Development until now Mr Beckton was a Non-Executive Director of Lode
Resources Ltd.
No other matters or circumstances have arisen since the end of the financial year which significantly affected or
could significantly affect the operations of the Company, the results of those operations or the state of affairs of
the Company in future financial years.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2024
LODE RESOURCES 2024 ANNUAL REPORT 37
29.
PARENT ENTITY DISCLOSURE
For the financial year ended 30 June 2024, the parent entity of the Group was Lode Resources Ltd.
Company
2024
$
Results of the parent entity
Net loss
(1,166,804)
Other comprehensive income
-
Total comprehensive loss
(1,166,804)
Financial position of the parent entity at year end
Current assets
2,296,393
Non-current assets
5,668,606
Total assets
7,964,999
Current liabilities
180,000
Non-current liabilities
-
Total liabilities
180,000
Net assets
7,784,999
Equity
Share capital
9,113,475
Accumulated losses
(3,715,109)
Reserves
2,386,633
Total Equity
7,784,999
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2024
38 LODE RESOURCES 2024 ANNUAL REPORT
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
Consolidated entity disclosure statement
For the year ended 30 June 2024
Entity Name
Body corporate,
partnership or
trust
Place of
incorporation /
formed
% of share capital held directly
or indirectly by the Company
in the body corporate
Australian
or Foreign
tax resident
Lode Resources Ltd
Body Corporate
Australia
N/A
Australian
Lode Metals Pty Ltd
Body Corporate
Australia
100%
Australian
Determination of Tax Residency
Section 295 (3A) of the Corporations Act 2001 requires that the tax residency of each entity which is included in the
Consolidated Entity Disclosure Statement (CEDS) be disclosed. In the context of an entity which was an “Australian
resident” has the meaning provided in the Income Tax Assessment Act 1997. The determination of tax residency
involves judgement as the determination of tax residency is highly fact dependent and there are currently several
different interpretations that could be adopted, and which could give rise to a different conclusion on residency.
In determining tax residency – The consolidated entity has applied the following interpretations:
•
Australian tax residency – The consolidated entity has applied current legislation and judicial precedent, including
having regard to the Commissioner of Taxation’s public guidance in Tax Ruling TR 2018/5.
•
Foreign tax residency – The consolidated entity has applied current legislation and where available judicial
precedent in the determination of foreign tax residency. Where necessary, the consolidated entity has used
independent tax advisers in foreign jurisdictions to assist in its determination of tax residency to ensure applicable
foreign tax legislation has been complied with.
LODE RESOURCES 2024 ANNUAL REPORT 39
DIRECTORS’ DECLARATION
30 June 2024
In the opinion of the directors of Lode Resources Ltd (the ‘Company’):
(a) The consolidated financial statements and notes set out on pages 22 to 38, and the Remuneration Report as set out
on pages 16 to 19 of the Directors’ Report are in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its performance for the year
ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; 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.
The Directors have been given the declarations required under section 295A of the Corporations Act 2001 for the
financial year ended 30 June 2024.
The Director’s draw attention to Note 2(a) to the consolidated financial statements, which includes a statement of
compliance with International Financial Reporting Standards.
The consolidated entity disclosure statement presented on page 39 is in accordance with the Corporations Act 2001
and is true and correct as of 30 June 2024.
Signed at Sydney this 25th day of September 2024 in accordance with a resolution of the Board of Directors:
Andrew Van Heyst
Edward Leschke
Executive Chairman
Managing Director
40 LODE RESOURCES 2024 ANNUAL REPORT
INDEPENDENT AUDITOR’S REPORT
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PKF(NS) Audit & Assurance Limited Partnership is a member of PKF Global, the network of member firms of PKF
International Limited, each of which is a separately owned legal entity and does not accept any responsibility or
liability for the actions or inactions of any individual member or correspondent firm(s). Liability limited by a
scheme approved under Professional Standards Legislation.
PKF(NS) Audit & Assurance Limited Partnership
ABN 91 850 861 839
755 Hunter Street, Newcastle West NSW 2302
Level 8, 1 O’Connell Street, Sydney NSW 2000
Newcastle T: +61 2 4962 2688 F: +61 2 4962 3245
Sydney T: +61 2 8346 6000 F: +61 2 8346 6099
info@pkf.com.au
www.pkf.com.au
LODE RESOURCES 2024 ANNUAL REPORT 41
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LODE RESOURCES 2024 ANNUAL REPORT 45
ADDITIONAL STOCK EXCHANGE INFORMATION
Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this report is set out
below. The information is effective as at 31 August 2024.
SECURITIES EXCHANGE
The Company is listed on the Australian Securities Exchange. The Home Exchange is Sydney.
SUBSTANTIAL SHAREHOLDERS
The number of substantial shareholders and their associates are set out below:
Shareholder
Number of Shares
Andrew Van Heyst
18,392,858
Edward Leschke
17,892,858
Michael Ruane
7,050,000
THE NUMBER OF HOLDERS IN EACH CLASS OF SECURITIES
The total distribution of fully paid shareholders and optionholders as at 31 August 2024 was as follows:
Type of security
Number of holders
Number of securities
Ordinary shares
824
106,784,145
Options
14
4,928,572
CLASS AND VOTING RIGHTS
The voting rights attached to ordinary shares, as set out in the Company’s Constitution, are that every member in person
or by proxy, attorney or representative, shall have one vote on a show of hands and one vote for each share held on a
poll.
A member holding partly paid shares is entitled to a fraction of a vote equivalent to the proportion which the amount paid
up bears to the issue price for the shares.
Options don’t carry voting rights.
DISTRIBUTION OF SHAREHOLDERS AND OPTIONHOLDERS
The total distribution of fully paid shareholders and unlisted option holders was as follows:
Range
Total Shareholders
Total Optionholders
1 - 1,000
32
-
1,001 - 5,000
119
-
5,001 - 10,000
180
-
10,001 - 100,000
360
2
100,001 and over
133
12
Total
824
14
ON MARKET BUY BACK
There is no on market buy-back.
ESCROWED SECURITIES
As at 31 August 2024, there were escrowed securities.
46 LODE RESOURCES 2024 ANNUAL REPORT
ADDITIONAL STOCK EXCHANGE INFORMATION
LESS THAN MARKETABLE PARCELS
On 31 August 2024, there are 131 holders of less than a marketable of 4,952 ordinary shares.
TWENTY LARGEST SHAREHOLDERS
As at 31 August 2024, the twenty largest quoted shareholders held 59.93% of the fully paid ordinary shares as follows:
Nº Name
Ordinary Shares
Quantity
%
1 A M Van Heyst Superannuation
18,392,858
17.22
2 Augusta Enterprises Pty Ltd
17,750,001
16.62
3 One Management Investment Funds Limited
3,450,570
3.23
4 Ashabia Pty Ltd
2,784,240
2.61
5 Kenneth William Gibson & Janice Elizabeth Gibson
2,500,000
2.34
6 BNP Paribas Nominees Pty Ltd
1,923,597
1.80
7 Tyson Resources Pty Ltd
1,600,000
1.50
8 Kesli Chemicals Pty Ltd
1,593,567
1.49
9 Spiceme Capital Pty Ltd
1,500,000
1.40
10 El Aliya Pty Ltd
1,490,000
1.40
11 Xianlong Yang
1,410,000
1.32
12 MCJP Darling Enterprise Pty Ltd
1,336,432
1.25
13 Williams Northwood Pty Ltd
1,250,000
1.17
14 Peter Declan Vujanovic
1,071,304
1.00
15 One Management Investment Funds Limited
1,000,000
0.94
16 Pasagean Pty Limited
1,000,000
0.94
17 Karthikeyan Kumaran Vadivelu
1,000,000
0.94
18 Dowmardella Pty Ltd
1,000,000
0.94
19 Lonway Pty Limited
1,000,000
0.94
20 Edna Securities Pty Ltd C/- Praemium-1927-390908
940,000
0.88
TWENTY LARGEST OPTIONOLDERS
As at 31 August 2024, there are no optionholder that held 20% or more of the options on issued.
TENEMENTS SCHEDULE
Project
Location
Licence Number
Holder
Interest
%
Type of Tenement
Uralla
NSW
EL8980
Lode Resources Ltd
100
Exploration
Uralla West
NSW
EL9087
Lode Resources Ltd
100
Exploration
Webbs Consol
NSW
EL8933
Lode Resources Ltd
100
Exploration
Webbs Consol Expanded
NSW
EL9454
Lode Resources Ltd
100
Exploration
Fender
NSW
EL9003
Lode Resources Ltd
100
Exploration
Tea Tree
NSW
EL9084
Lode Resources Ltd
100
Exploration
Thor
NSW
EL9085
Lode Resources Ltd
100
Exploration
Sandon
NSW
EL9319
Lode Resources Ltd
100
Exploration
New England Antimony
NSW
EL9662
Lode Metals Pty Ltd
100
Exploration
LODE RESOURCES 2024 ANNUAL REPORT 47
www.loderesources.com
A.B.N. 30 637 512 415
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the Annual General Meeting of Members of Lode Resources Ltd will be held on Tuesday
26 November 2024 at 12 pm Australian Eastern Daylight Time (AEDT) at Level 2, Suite 201, 350 George Street Sydney
NSW 2000.
AGENDA
ORDINARY BUSINESS
Financial Reports for the Year Ended 30 June 2024
To receive and consider the Company's Annual Financial Reports, the Directors' Report and the Auditor's
Report for the year ended 30 June 2024.
To consider and, if thought fit, pass the following resolutions as ordinary resolutions, unless otherwise specified, with
or without amendment:
Resolution 1
Adoption of the Remuneration Report
'That the Remuneration Report for the year ended 30 June 2024 be and is hereby adopted.'
The vote on this resolution is advisory only and does not bind the Directors.
Resolution 2
Re-election of a Director
'That Jason Beckton having retired in accordance with the Company’s Constitution and the ASX Listing Rules, and
being eligible, offers himself for re-election, be re-elected as a Director of the Company with immediate effect.'
Resolution 3
Approval to issue Unlisted Options to Jason Beckton
“That, for the purposes of ASX Listing Rule 10.11 and for all other purposes, approval is given for the Company to
issue 1,000,000 options to Jason Beckton or his nominee on the terms and conditions set out in the Explanatory
Memorandum accompanying this Notice of Meeting.”
Resolution 4
Additional capacity to issue securities
'That, for the purposes of ASX Listing Rule 7.1A and for all other purposes, approval is given for the Company to
issue equity securities of up to 10% of the issued capital of the Company at the time of issue on the terms and
conditions set out in the Explanatory Memorandum accompanying this Notice of Meeting.'
This is a special resolution requiring the approval of 75% or more of all votes cast by shareholders present and
eligible to vote.
To transact any other business that may be brought forward in accordance with the Company's Constitution.
By order of the Board
Marcelo Mora
Company Secretary
18 October 2024
A.B.N. 30 637 512 415
EXPLANATORY MEMORANDUM
TO THE NOTICE OF ANNUAL GENERAL MEETING
This Explanatory Memorandum has been prepared to assist members to understand the business to be put to members
at the Annual General Meeting of Members of Lode Resources Ltd that will be held on Tuesday, 26 November 2024 at
12 pm Australian Eastern Daylight Time (AEDT) at Level 2, Suite 201, 350 George Street Sydney NSW 2000.
Financial Report
The Financial Report, Directors' Report and Auditor's Report (i.e. Annual Financial Reports or Annual Report) for the
Company for the year ended 30 June 2024 will be laid before the meeting. There is no requirement for shareholders to
approve these reports, however, the Chairman of the meeting will allow a reasonable opportunity to ask questions
including questions directed to the auditor about the conduct of the audit and the content of the Auditor's Report.
The Company will not provide a hard copy of the Company’s annual financial report to shareholders unless specifically
requested to do so. The Company’s annual financial report to shareholders is available on its website
https://loderesources.com/reports. The Company's annual financial reports were also announced on 25 September 2024
and can be access by visting the ASX's announcement platform www.asx.com.au (ASX:LDR).
Resolution 1
Adoption of Remuneration Report
The Remuneration Report, which can be found as part of the Directors’ Report in the Company's 2023 Annual Report,
contains certain prescribed details, sets out the policy adopted by the Board of Directors and discloses the payments to
key management personnel, Directors and senior executives for the year ended 30 June 2024.
In accordance with section 250R of the Corporations Act, a resolution that the Remuneration Report be adopted must
be put to a vote by the shareholders. This resolution is advisory only and does not bind the Directors or the Company.
Shareholders will be given a reasonable opportunity at the meeting to comment on and ask questions about the
Company’s Remuneration Report.
Under the Corporations Act, a company is required to put to its shareholders a resolution proposing the calling of
another meeting of shareholders to consider the appointment of directors of the company (Spill Resolution) if, at
consecutive annual general meetings, at least 25% of the votes cast on a remuneration report resolution is voted against
the adoption of the remuneration report and at the first of those annual general meetings a Spill Resolution was not put
to vote. If required, the Spill Resolution must be put to vote at the second of those annual general meetings.
At the Company’s previous annual general meeting the votes cast against the 2023 remuneration report considered at
that annual general meeting were less than 25%. Accordingly, the Spill Resolution is not relevant for this Annual General
Meeting. However, in the event that 25% or more of votes that are cast are against adoption of the 2024 Remuneration
Report at the meeting, shareholders should be aware that if there is a ‘no’ vote of 25% or more for the same resolution
at the 2025 annual general meeting, the consequence is that it may result in the re-election of the Board.
The Chairman intends to exercise all undirected proxies in favour of Resolution 1. If the Chairman of the Meeting is
appointed as your proxy and you have not specified the way the Chairman is to vote on Resolution 1, by signing and
returning the Proxy Form, you are considered to have provided the Chairman with an express authorisation for the
Chairman to vote the proxy in accordance with the Chairman's intention.
Voting Exclusion Statement
The Company will disregard any votes cast on Resolution 1 by any of the following persons:
Key Management Personnel (KMP) named in the Remuneration Report and Closely Related Parties of Key Management
Personnel. Key Management Personnel has the same meaning as in the accounting standards issued by the Australian
Accounting Standards Board and means those persons having authority and responsibility for planning, directing and
controlling the activities of the Company, directly or indirectly, including any Director (whether executive or otherwise.
Closely Related Party of a Key Management Personnel means a spouse or child of the personnel; a child of the personnel's
spouse; a dependent of the personnel or the personnel's spouse; anyone else who is one of the personnel's family and
may be expected to influence the personnel, or be influenced by the personnel, in the personel's dealing with the entity;
a company the personnel controls or a person prescribed by the Corporations Regulations 2001 (Cth).
However, the Company need not disregard a vote if it is:
•
Cast by a person as a proxy or attorney for a person who is entitled to vote on the resolution, in accordance
with the directions of the proxy form that specifies how the proxy is to vote on Resolution 1; or
•
Cast by the chair of the Meeting as proxy or attorney appointed in accordance with the directions of the proxy
form for a person who is entitled to vote, and such appointment on the proxy form expressly authorises the
chair to exercise the proxy even if the resolution is connected directly with the remuneration report.
The Directors recommend that you vote IN FAVOUR of advisory Resolution 1.
The Chairman of the Meeting intends to vote undirected proxies IN FAVOUR of Resolution 1.
Resolution 2
Re-election of Mr Jason Beckton
Mr Beckton is a professional geologist with over 30 years’ experience in exploration, project development, production
and management in Australia and internationally. He has been a Non-Executive Director of the Company since
September 2020.
Mr Beckton commenced his career with Pancontinental and Goldfields Ltd throughout Australia in the early 1990s
before moving to a senior role with Gympie Gold in 2001. Subsequently, he was Bolnisi Gold NL’s Project Manager for
the Palmarejo silver-gold project in northern Mexico in 2004. The Palmarejo Mine, acquired by Coeur d’Alene Mines
Corp in 2007 via its acquisition of Bolnisi in a transaction valued at US$1.1bn, had forecast annual production of 12moz
Ag and 110koz Au beginning in 2009. As of 2023, the Palmarejo complex represents 64% of Coeur's silver production and
32% of its gold production.
Mr Beckton also led the team at Exeter Resources Ltd in 2007 responsible for the commercial copper/gold discovery of
the Caspiche Porphyry in the Maricunga Gold Copper Belt of Chile where an initial Inferred Mineral Resource was
declared in September 2009 of over 1.1bn tons @ 0.94g/t AuEq, containing 33.7moz AuEq. He is currently Managing
Director at ASX-listed Prospech Limited and led the Company through its IPO in 2020 to fund exploration of that
Company’s gold and silver licenses in Slovakia and most recently its purchase of exploration projects in Finland.
Clause 41.3 of the Company's Constitution and ASX Listing Rule 14.5 states that an entity must hold an election of
directors at each annual general meeting. Andrew volunteers himself for retirement and re-election pursuant to the
Company's Constitution and ASX Listing Rule 14.5.
The Directors recommend that you vote IN FAVOUR of Resolution 2.
The Chairman of the Meeting intends to vote undirected proxies IN FAVOUR of Resolution 2.
Resolutions 3
Issue of unlisted options to Mr Jason Beckton
For the purposes of Chapter 2E of the Corporations Act, Mr Beckton, being a Director of the Company is a related party
of the Company. Resolution 3 relates to a proposed issued of options to Mr Beckton (or entities related to him or in
which he has an indirect interest), which is a financial benefit that requires shareholder approval for the purposes of
section 208 of the Corporations Act 2001.
The Company has agreed, subject to obtaining shareholder approval to issue 1,000,000 options to Mr Beckton or his
nominees. The Board considers that it is reasonable for the remuneration of Directors to have a cash component and an
equity component to further align directors’ interests with those of shareholders. The Board believes that the issue of
the options to Directors provides a reasonable, appropriate and cost-effective method of remunerating Directors by
providing an equity-based incentive for their ongoing commitment and contribution to the Company in their roles as
Directors and when required as members of a Committee.
ASX Listing Rule 10.11 provides that unless one of the exceptions in ASX Listing Rule 10.12 applies, the Company must
not issue or agree to issue equity securities to:
•
a related party (ASX Listing Rule 10.11.1);
•
a person who is, or was at any time in the 6 months before the issue or agreement, a substantial (30%+) holder
in the Company (ASX Listing Rule 10.11.2);
•
a person who is, or was at any time in the 6 months before the issue or agreement, a substantial (10%+) holder
in the Company and who has nominated a Director to the Board pursuant to a relevant agreement which gives
them a right or expectation to do so (ASX Listing Rule 10.11.3);
•
an associate of a person referred to in Listing Rules 10.11.1 to 10.11.3 (ASX Listing Rule 10.11.4); or
•
a person whose relationship with the Company or a person referred to in ASX Listing Rules 10.11.1 to 10.11.4 is
such that, in ASX’s opinion, the issue or agreement should be approved by shareholders (ASX Listing Rule
10.11.5),
unless it obtains the approval of its shareholders.
The proposed issue of options under Resolution 3 will be to a party who falls within ASX Listing Rule 10.11.1 and no
exception in ASX Listing Rule 10.12. It, therefore, requires the approval of shareholders under ASX Listing Rule 10.11.
If Resolution 3 is passed, the Company will be able to proceed with the issue of the options to the Director. If all of the
options to the Director are exercised the Company will receive $150,000 in exercise monies.
If Resolution 3 is not passed, the Company will not be able to proceed with the issue of the options to the Director or
his nominee and the Company will not compensate Mr Beckton in another manner or form.
Details of the issue, as required by ASX Listing Rule 10.13 are as follows:
Names of the allottees:
Resolution 3 the options are to be issued to Jason Beckton or his nominee.
The category under ASX Listing
Rule 10.11:
Jason Beckton is a Director of the Company and therefore falls under ASX Listing
Rule 10.11.1
Remuneration package
Mr Beckton receives director's fees of $75,000 per annum and no other form of
remuneration. The options the subject of this resolution will provide an
incentive to further align the Director's interests with those of shareholders.
The number and class of
securities to be issued:
The options to be issued to Jason Beckton or his nominee are 1,000,000 options.
Terms:
The full terms and conditions of the Options to be issued under Resolution 3 are
set out in Annexure “A”.
Each option entitles the holder to subscribe for and be allotted one fully paid
ordinary share. The options vest on the Issue Date and are exercisable at any time
before the Expiry Date.
Issue Date:
The options will be issued no later than 1 month after the date of this Annual
General Meeting and it is intended that issue will occur on the same date.
Issue price:
Nil, as the options are being issued as equity remuneration to the director.
Exercise price:
$0.15 per share.
Vesting dates:
Immediately following shareholder approval to issue the options.
Expiry date:
36 months from the Issue Date.
Use of the funds:
No funds will be raised from the issue of the options. The options are issued to
remunerate the director and any funds raised on exercise will be applied towards
insuring Lode is well funded to continue the drilling and exploration programs
at New England Fold Belt in NSW or any other projects it may be undertaking at
the time and for general corporate and working capital purposes.
If approval is given for the issue of the options under ASX Listing Rule 10.11, approval is not required under Listing Rule
7.1 in accordance with ASX Listing Rule 7.2 Exception 14
Voting Exclusion Statement
The Company will disregard any votes cast in favour on Resolution 3 by or on behalf of
•
Jason Beckton or an associate of Jason Beckton or any other person who is to receive the securities and any
other person who will obtain a material benefit as a result of the issue of the securities (except a benefit solely
by reason of being a holder of ordinary securities in the Company).
However, this does not apply to a vote cast in favour of Resolution 3 by:
•
a person as proxy or attorney for a person who is entitled to vote on the resolution, in accordance with
directions given to the proxy or attorney to vote on the resolution in that way; or
•
the chair of the meeting as proxy or attorney for a person who is entitled to vote on the resolution, in
accordance with a direction given to the chair to vote on the resolution as the chair decides; or
•
a holder acting solely in a nominee, trustee, custodial or other fiduciary capacity on behalf of a beneficiary
provided the following conditions are met:
•
the beneficiary provides written confirmation to the holder that the beneficiary is not excluded from
voting, and is not an associate of a person excluded from voting, on the resolution; and
•
the holder votes on the resolution in accordance with directions given by the beneficiary to the holder to
vote in that way.
The Directors recommend that you vote IN FAVOUR of Resolution 3.
The Chair of the Meeting intends to vote undirected proxies IN FAVOUR of Resolution 3.
Resolution 4
Approval of additional capacity to issue securities
ASX Listing Rule 7.1A enables the Company to issue equity securities up to 10% of its issued share capital through
placements over a 12 month period after the AGM ('10% Placement Facility'). The 10% Placement Facility is in addition
to the Company's 15% placement capacity under ASX Listing Rule 7.1. Listed entities that are not included in the
S&P/ASX 300 index and with a market cap of $300 million or less are eligible to seek shareholder approval under Listing
Rule 7.1A. The Company’s approximate market cap at the time of this Notice of Meeting is $10.6 million.
If Resolution 4 is not passed, the Company would not be able to issue securities and it will not be able to raise funds
under this 10% placement facility.
If Resolution 4 is passed, The Company will be able to raise funds to the maximum of 10% of the placement facility in
accordance with Listing Rule 7.1A.
Resolution 4, which is a Special Resolution requiring 75% of votes cast to be in favour of the resolution, seeks shareholder
approval for the Company to have the ability to issue equity securities under the 10% Placement Facility on the following
terms:
(a) Placement Period
Shareholder approval of the 10% Placement Facility is valid from the date of the AGM and expires on the earlier of:
(i) the date that is 12 months after the date of the AGM;
(ii) the time and date of the Company's next AGM; or
(iii) the time and date of the approval by shareholders of a transaction under ASX Listing Rules 11.1.2 (a
significant change to the nature or scale of activities) or 11.2 (disposal of main undertaking).
(b) Equity Securities
Any equity securities issued under the 10% Placement Facility must be in the same class as an existing quoted class of
equity securities of the Company which, in the Company's case, are fully paid ordinary shares.
(c) Formula for calculating 10% Placement Facility.
The maximum number of shares that can be issued under the 10% Placement Facility is calculated as follows:
(A x D) – E
Where:
A is the number of fully paid ordinary shares on issue 12 months before the date of issue or agreement:
(i)
plus the number of fully paid ordinary shares issued in the 12 months under an exception in ASX Listing
Rule 7.2 other than exception 9, 16 or 17;
(ii)
plus the number of fully paid ordinary shares issued in the 12 months on the conversion of convertible
securities within ASX Listing Rule 7.2 exception 9 where:
a.
the convertible securities were issued or agreed to be issued before the commencement of the 12
month perod; or
b.
the issue of, or agreement to issue, the convertible securities was approved or taken under the ASX
Listing Rules to have been approved under ASX Liting Rule 7.1 or ASX Listing Rule 7.4;
(iii)
plus the number of fully paid ordinary shares issued in the relevant period under an agreement to issue
securities within ASX Listing Rule 7.2 exception 16 where:
a.
the agreement was entered into before the commencement of the 12 month period; or
b.
the agreement or issue was approved or taken under the ASX Listing Rules to have been approved
under ASX Listing Rule 7.1 or ASX Listing Rule 7.4;
(iv)
plus the number of partly paid ordinary shares that became fully paid in the 12 months;
(v)
plus the number of fully paid shares issued in the 12 months with approval of holders of shares under
ASX Listing Rule 7.1 and 7.4;
(vi)
less the number of fully paid shares cancelled in the 12 months.
D is 10%.
E is the number of fully paid ordinary shares issued or agreed to be issued under ASX Listing Rule 7.1A.2 in the
12 months before the date of the issue or agreement to issue that are not issued with the approval of shareholders
under ASX Listing Rules 7.1 or 7.4.
(d) Minimum Issue Price
The minimum issue price of equity securities issued for the purpose of ASX Listing Rule 7.1.A.3 must be not less than
75% of the volume weighted average price of equity securities in the same class calculated over the 15 trading days on
which trades were recorded immediately before:
(i)
the date on which the price at which the equity securities are to be issued is agreed by the Company and
the recipient of the equity securities; or
(ii) if the equity securities are not issued within 10 trading days of the date in paragraph (i) above, the date on
which the equity securities are issued.
(e) Purposes for which the funds raised by an issue of equity securities may be used
The Company may issue equity securities under the 10% Placement Capacity for cash consideration only, and the
Company intends to use any funds raised under such an issue for continued exploration and evaluation of the Company’s
exploration projects and for general working capital.
(f)
Risk of Economic and Voting Dilution
If Resolution 4 is approved by shareholders and the Company issues equity securities under the 10% Placement Facility,
the existing shareholders' voting power in the Company will be diluted as shown in the table below. Further, there is a
risk that:
(i)
the market price for the Company's equity securities may be significantly lower on the date of the issue of
the equity securities than on the date of the AGM; and
(ii) the equity securities may be issued at a price that is at a discount to the market price for the Company's
equity securities on the issue date.
If this Resolution 4 is not approved by shareholders then the Company will not have the flexibility of an available
additional 10% capacity to issue shares under the 10% Placement Facility described in this Explanatory Memorandum.
The Company not having the 10% Placement Facility will have no effect on the Company's existing ASX Listing Rule 7.1,
15% capacity.
Because variable A in the formula for calculating 10% Placement Facility, and consequently the number of shares that
can be issued under the 10% Placement Facility, can change during the Placement Period, the table below shows a matrix
of scenarios of the potential dilution of existing shareholders as at the date of the AGM on the basis of:
(i)
the issue price of equity securities being the current approximate market price of fully paid ordinary
shares, plus 50% and minus 50%; and
(ii) the maximum number of shares that can be issued under the 10% Placement Facility in accordance with
the definition of variable A in the formula for calculating 10% Placement Facility increasing by 50% and
100%.
Variable A in
10% Placement Facility
under ASX Listing Rule
7.1A.
Voting Dilution
and Placement
Facility Capacity
Issue Price and
Funds Raised
50% Decrease in
Current
Approximate
Market Price
$0.050
Current
Approximate
Market Price
$0.099*
50% Increase in
Current
Approximate
Market Price
$0.149
Current Variable A
106,784,145 shares
10%
10,678,145
Shares
$528,582
$1,057,163
$1,585,745
50% increase in current
Variable A
160,176,218 shares
10%
16,017,622
Shares
$792,872
$1,585,745
$2,378,617
100% increase in current
Variable A
213,568,290 shares
10%
21,356,829
shares
$1,057,163
$2,114,326
$3,171,489
*The current approximate market price of $0.099 was the closing price as at 24 September 2024.
The above table is based on the following assumptions:
(i)
There are currently 106,784,145 shares on issue and all figures in the table are calculated on an undiluted
basis.
(ii)
The Company issues the maximum possible number of equity securities under the 10% Placement Capacity.
(iii)
The issue of equity securities under the 10% Placement Capacity consists only of shares. If the issue of equity
securities includes quoted options, it is assumed that those quoted options are exercised into shares for the
purpose of calculating the voting dilution effect on existing shareholders.
(iv)
The calculations above do not show the dilution that any one particular shareholder will be subject to. All
shareholders should consider the dilution caused to their own shareholding depending on their specific
circumstances.
(v)
This table does not set out any dilution pursuant to approvals under ASX Listing Rule 7.1.
(vi)
The 10% voting dilution reflects the aggregate percentage dilution against the issued share capital at the
time of issue. This is why the voting dilution is shown in each example as 10%.
(g) Allocation policy
The Company’s allocation policy is dependent on the prevailing market conditions at the time of any proposed issue
pursuant to the 10% Placement Facility. As there is no issue currently proposed, the identity of the allottees is not
currently known and will be determined on a case-by-case basis at the time of allotment, having regard to factors
including, but not limited to, the following:
(i) the methods of raising funds that are available to the Company, including but not limited to, rights issues
or other issues in which existing security holders can participate;
(ii) the effect of the issue of the equity securities on the control of the Company;
(iii) the financial situation and solvency of the Company; and
(iv) advice from corporate, financial and broking advisers (if applicable).
The allottees under the 10% Placement Facility have not currently been determined but may include existing substantial
shareholders and/or new shareholders who are not related parties or associates of a related party of the Company.
(h) Prior approval
The Company obtained shareholder approval under ASX Listing Rule 7.1A at its 2023 Annual General Meeting.
The Company has not issued any securities during the last months 12 months preceding the date of this Notice of Annual
General Meeting.
Voting Exclusion:
The Company will disregard any votes cast on Resolution 4 by any person who is expected to participate in, or who will
obtain a material benefit as a result of, the proposed issue (except a benefit solely by reason of being a holder of ordinary
securities in the entity).
However, this does not apply to a vote cast in favour of the resolution by:
•
a person as proxy or attorney for a person who is entitled to vote on the resolution, in accordance with
directions given to the proxy or attorney to vote on the resolution in that way; or
•
the chair of the meeting as proxy or attorney for a person who is entitled to vote on the resolution, in
accordance with a direction given to the chair to vote on the resolution as the chair decides; or
•
a holder acting solely in a nominee, trustee, custodial or other fiduciary capacity on behalf of a beneficiary
provided the following conditions are met:
•
the beneficiary provides written confirmation to the holder that the beneficiary is not excluded from
voting, and is not an associate of a person excluded from voting, on the resolution; and
•
the holder votes on the resolution in accordance with directions given by the beneficiary to the holder
to vote in that way.
The Directors recommend that you vote IN FAVOUR of Resolution 4.
The Chairman of the Meeting intends to vote undirected proxies IN FAVOUR of Resolution 4.
Annexure “A”
Term and Conditions of Unlisted Options
1. Entitlement and Exercise Price
The Options entitle Option Holders to subscribe for 1 fully paid ordinary share in the Company for each option
exercised at an exercise price of $0.15 per share.
2.
Vesting and Expiry Date of the options
The Options vest immediately on issue and will expire 36 months from the issue date.
3.
Exercise Period
The Options not exercised on or before the Expiry Date will automatically lapse. If the Option Holder has acted
fraudulently, dishonestly or in breach of its obligations to the Company (as determined by the Board, acting
reasonably), then the Options shall lapse upon written notification to the Option Holder.
4.
Notice of Exercise
The Options may be exercised at any time prior to the Expiry Date wholly or in part by delivering a duly completed
form of notice of exercise together with payment of the Exercise Price for each Option being exercised to the
Company.
5.
Exercise Date
A Notice of Exercise is only effective on and from the later of the date of receipt of the Notice of Exercise and the
date of receipt of the payment of the Exercise Price for each Option being exercised in cleared funds.
6.
Shares issued on exercise
All Shares allotted on the exercise of Options will rank equally in all respects with the Company’s then existing
ordinary fully paid ordinary shares.
7.
Quotation of Options
The Options will be issued unlisted and the Company will not seek ASX official quotation of these options.
8.
Participation in new issue
The Option Holders may only participate in new issues of securities to holders of ordinary shares in the Company
if their Options have been exercised and Shares allotted in respect of the Options before the record date for
determining entitlements to the issue.
9.
Change in Exercise Price
There will be no change to the Exercise Price of the Options or the number of Shares over which an Option is
exercisable in the event of the Company making a pro-rata issue of shares or other securities to the holders of
ordinary shares in the Company.
10. Timing of issue of shares on exercise
Within 15 Business Days after the Exercise Date, if the Company’s ordinary shares are quoted by ASX, the Company
must:
a.
on the date that the shares are allotted pursuant to the exercise of Options, apply for quotation of all shares
allotted; and
b. perform such other acts or take such other actions to ensure the shares that are allotted pursuant to the
exercise of the Options are quoted by the ASX and freely tradeable.
11. Reconstruction of Capital
If prior to the Expiry Date there is a reorganisation of the issued capital of the Company, the rights of a holder of
Options will be changed to the extent necessary to comply with the applicable ASX Listing Rules in force at the
time of the reorganisation.
12. Transferability
Unless quoted, the Options are transferable to sophisticated investors as that term is defined under the
Corporations Act 2001 (Cth).
Proxy Voting Form
If you are attending the Meeting in
person, please bring this with you for
Securityholder registration.
LODE RESOURCES LTD | ABN 30 637 512 415
Your proxy voting instruction must be received by 12.00 pm (AEDT) on Sunday, 24 November 2024, being not later than 48 hours before the
commencement of the Meeting. Any Proxy Voting instructions received after that time will not be valid for the scheduled Meeting.
.
Complete the form overleaf in accordance with the instructions set out below.
YOUR NAME AND ADDRESS
The name and address shown above is as it appears on the Company’s share register. If this information is
incorrect, and you have an Issuer Sponsored holding, you can update your address through the investor
portal: https://investor.automic.com.au/#/home Shareholders sponsored by a broker should advise their
broker of any changes.
STEP 1 – APPOINT A PROXY
If you wish to appoint someone other than the Chair of the Meeting as your proxy, please write the name
of that Individual or body corporate. A proxy need not be a Shareholder of the Company. Otherwise if you
leave this box blank, the Chair of the Meeting will be appointed as your proxy by default.
DEFAULT TO THE CHAIR OF THE MEETING
Any directed proxies that are not voted on a poll at the Meeting will default to the Chair of the Meeting,
who is required to vote these proxies as directed. Any undirected proxies that default to the Chair of the
Meeting will be voted according to the instructions set out in this Proxy Voting Form, including where the
Resolutions are connected directly or indirectly with the remuneration of Key Management Personnel.
STEP 2 - VOTES ON ITEMS OF BUSINESS
You may direct your proxy how to vote by marking one of the boxes opposite each item of business. All your
shares will be voted in accordance with such a direction unless you indicate only a portion of voting rights
are to be voted on any item by inserting the percentage or number of shares you wish to vote in the
appropriate box or boxes. If you do not mark any of the boxes on the items of business, your proxy may vote
as he or she chooses. If you mark more than one box on an item your vote on that item will be invalid.
APPOINTMENT OF SECOND PROXY
You may appoint up to two proxies. If you appoint two proxies, you should complete two separate Proxy
Voting Forms and specify the percentage or number each proxy may exercise. If you do not specify a
percentage or number, each proxy may exercise half the votes. You must return both Proxy Voting Forms
together. If you require an additional Proxy Voting Form, contact Automic Registry Services.
SIGNING INSTRUCTIONS
Individual: Where the holding is in one name, the Shareholder must sign.
Joint holding: Where the holding is in more than one name, all Shareholders should sign.
Power of attorney: If you have not already lodged the power of attorney with the registry, please attach a
certified photocopy of the power of attorney to this Proxy Voting Form when you return it.
Companies: To be signed in accordance with your Constitution. Please sign in the appropriate box which
indicates the office held by you.
Email Address: Please provide your email address in the space provided.
By providing your email address, you elect to receive all communications despatched by the Company
electronically (where legally permissible) such as a Notice of Meeting, Proxy Voting Form and Annual
Report via email.
CORPORATE REPRESENTATIVES
If a representative of the corporation is to attend the Meeting the appropriate ‘Appointment of Corporate
Representative’ should be produced prior to admission. A form may be obtained from the Company’s share
registry online at https://automic.com.au.
Lodging your Proxy Voting Form:
Online
Use your computer or smartphone to
appoint a proxy at
https://investor.automic.com.au/#/loginsah
or
scan the QR code below using your
smartphone
Login & Click on ‘Meetings’. Use the
Holder Number as shown at the top of this
Proxy Voting Form.
BY MAIL:
Automic
GPO Box 5193 Sydney
NSW 2001
IN PERSON:
Automic
Level 5, 126 Phillip Street
Sydney NSW 2000
BY EMAIL:
meetings@automicgroup.com.au
BY FACSIMILE:
+61 2 8583 3040
All enquiries to Automic: WEBSITE:
https://automicgroup.com.au/
PHONE:
1300 288 664 (Within Australia)
+61 2 9698 5414 (Overseas)
SUBMIT YOUR PROXY
LDR
STEP 1 - How to vote
APPOINT A PROXY:
I/We being a Shareholder entitled to attend and vote at the Annual General Meeting of LODE RESOURCES LTD, to be held at 12.00 pm (AEDT) on Tuesday, 26
November 2024 at Level 2, Suite 201, 350 George Street Sydney NSW 2000 hereby:
Appoint the Chair of the Meeting (Chair) OR if you are not appointing the Chair of the Meeting as your proxy, please write in the box provided below the name of
the person or body corporate you are appointing as your proxy or failing the person so named or, if no person is named, the Chair, or the Chair’s nominee, to vote in
accordance with the following directions, or, if no directions have been given, and subject to the relevant laws as the proxy sees fit and at any adjournment thereof.
The Chair intends to vote undirected proxies in favour of all Resolutions in which the Chair is entitled to vote.
Unless indicated otherwise by ticking the “for”, “against” or “abstain” box you will be authorising the Chair to vote in accordance with the Chair’s voting intention.
AUTHORITY FOR CHAIR TO VOTE UNDIRECTED PROXIES ON REMUNERATION RELATED RESOLUTIONS
Where I/we have appointed the Chair as my/our proxy (or where the Chair becomes my/our proxy by default), I/we expressly authorise the Chair to exercise my/our
proxy on Resolution 1 (except where I/we have indicated a different voting intention below) even though Resolution 1 is connected directly or indirectly with the
remuneration of a member of the Key Management Personnel, which includes the Chair.
STEP 2 - Your voting direction
Resolutions
For
Against
Abstain
1 Adoption of the Remuneration Report
2 Re-election of a Director
3 Approval to issue Unlisted Options to Jason Beckton
4 Additional capacity to issue securities
Please note: If you mark the abstain box for a particular Resolution, you are directing your proxy not to vote on that Resolution on a show of hands or on a poll and
your votes will not be counted in computing the required majority on a poll.
STEP 3 – Signatures and contact details
Individual or Securityholder 1
Securityholder 2
Securityholder 3
Sole Director and Sole Company Secretary
Director
Director / Company Secretary
Contact Name:
Email Address:
Contact Daytime Telephone
Date (DD/MM/YY)
By providing your email address, you elect to receive all communications despatched by the Company electronically (where legally permissible).