Annual Report
FINANCIAL YEAR
ENDED 30 JUNE 2022
Magnetic Resources NL
1st Floor, 44A Kings Park Road, West Perth, WA
6005 Tel (08) 9226 1777
ABN 34 121 370 232
Corporate Directory
Review of Operations
Director’s Report
Auditor’s Independence Declaration
Table of Contents
1
2
14
25
Corporate Governance Statement
26
Statement of Profit or Loss and Other Comprehensive income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Other Information
37
38
39
40
41
63
64
68
Pg. 1
Corporate Directory
Corporate Directory
DIRECTORS
ERIC LIM (B.Comm)
Non-Executive Chairman
GEORGE SAKALIDIS (B.SC (Hons))
Managing Director
BEN DONOVAN (B.Com (Hons),ACG(CS))
Non-Executive Director
HIAN SIANG CHAN
Non-Executive Director
COMPANY SECRETARY
BEN DONOVAN (B.Com (Hons),ACG(CS))
REGISTERED OFFICE
1st Floor
44A Kings Park Road
West Perth WA 6005
Telephone (08) 9226 1777
WEBSITE
www.magres.com.au
FOR INFORMATION ON THE COMPANY CONTACT
PRINCIPAL & REGISTERED OFFICE
1st Floor
44A Kings Park Road
West Perth WA 6005
Telephone (08) 9226 1777
BANKERS
Bank of Western Australia Ltd
Hay Street, West Perth WA 6005
AUDITORS
Elderton Audit Pty Ltd
Chartered Accountants
Level 2, 267 St Georges Tce, Perth WA 6000
STOCK EXCHANGE
Australian Securities Exchange (ASX)
COMPANY CODE (quoted)
MAU (Fully paid shares)
MAUCA (Partly paid shares)
ISSUED CAPITAL (as at September 2022)
228,467,497 fully paid ordinary shares.
FOR SHAREHOLDER INFORMATION CONTACT
20,418,862 partly paid shares ($0.20 unpaid).
SHARE REGISTRY
Automic Pty Ltd
Level 5, 126 Phillip Street
Sydney NSW 2000
4,900,000 options to acquire fully paid shares
exercisable at $1.515 on or by 31 December 2024
Pg. 2
Financial Statements
Review of Operations
Projects Summary: Gold
Laverton Area
Magnetic Resources NL has 261km2 in the Laverton region comprising E38/3127 Hawks Nest,
E37/3100 Mt Jumbo, E38/3205 Hawks Nest East, E38/3209 Mt Ajax, P38/4317–24 Mt Jumbo East,
E39/2125, P39/6134-44 Little Well and P38/4346, P38/4379-84 Lady Julie (Figure 1). Table 1 shows
the exploration completed to date and recent/proposed exploration.
Table 1. Laverton region drilling summary.
Project/Tenements
Hawks Nest
E38/3127,
M38/1041
E38/3127,
M38/1041
Lady Julie
P38/4346,
P38/4379-84,
E38/3127
Mt Jumbo
E38/3100,
E38/3127
Mt Jumbo East
P38/4317–24
Kowtah P39/5594–
97, 5617
Surface
sampling
completed
119 rock
chips
5405 soils
11 rock
chips
7 rock
chips
67 lags
19 rock
chips
131 lags
484 soils
1 rock chip
Drilling &
ground
magnetics
completed
1035 RC for
64,354m
164 RAB
holes for
1,814m
4 Diamond
holes for
431m
2 AC holes
for 66m
507km
ground
magnetics
290 RC for
20,176m
291 shallow
RAB for
1,697m
3 RC holes
for 563m
2 DDH for
457m
143km
ground
magnetics
22 RC holes
for 1,646m
229km
ground
magnetics
186km
ground
magnetics
Proposed exploration
4m composite Assays pending
for 13 RC holes 1,470m
79 RC holes for 6.605m at HN5,
HN5 West, HN6 and HN9
Assays pending for 4 Diamond
holes 431m
4m composite assays pending
for 27 RC holes 1,810m
45 RC holes for 4,462m
13 RC holes for 755m
102 RAB holes
Pg. 3
Financial Statements
Figure 1. Hawks Nest, Hawks Nest East, Lady Julie, Little Well, Mt Ajax, Mt Jumbo, Mt Jumbo East and Kowtah projects,
showing tenements, major shear zones, targets and gold deposits and historic workings.
HN5, HN6, HN9 (E38/3127 & M38/1041) and Lady Julie (P38/4346, P38/4379–4384)
The best-looking targets so far besides the 3km-long HN9 mineralisation, are Lady Julie North (4.6km
long) and Lady Julie Central (1.5m long). At Lady Julie North 1 there are many mineralised
intersections including a recent outstanding intersection of 38m at 3.6g/t Au from 32m including
16m at 5.6g/t from 54m in MLJRC162 and 13m at 1.37g/t Au from 3m in AJC01.
The amplitude of the soil anomaly contained the 38m at 3.6g/t is 50ppb. There are numerous other
similar anomalies that have not been drilled tested adequately, within the 2km NS Lady Julie North1
Target shown in Figure 2 that contains the intersection of 38m at 3.6g/t that are very prospective for
shallow gold mineralisation. In addition, a detailed soil sampling programme is being carried out directly
north of the Lady Julie 1 area over a NS distance of 1.9km covering a 1.2 sq. km area shown in Figure
2 looking to define similar targets for drilling follow up. This zone between the two thrusts is very
prospective and there are numerous untested NS workings within Lady Julie North 2 which have now
been drilled with results awaited (Figure 2).
At HN5 West a 250m long soil gold anomaly with a maximum of 229ppb was tested for the first time
and hole MHNRC1015 intersected an impressive 4m at 62.5g/t gold from 52m. This intersection is
being followed up down dip and along strike with detailed drilling to attempt to extend this very high-
grade intersection in an area previously undrilled.
At Lady Julie Central there are several high-grade intersections including 4m at 16.66g/t Au from 32m
in MLJRC214, 8m at 9.23g/t Au from 24m in RFB226 and 4m at 8.36g/t Au from 18m in RFB206
(Figure 2). The Lady Julie Central gold target is now interpreted to trend to the NNE rather than NS.
Areas that were not previously tested have come up with new significant intersections at HN9 Thrust 3
and HN6 Thrust 2, with further drilling planned test these areas. There are 13 RC holes planned at
HN9 Thrust 3 following up an intersection of 1m at 58.5g/t from 91m in MHNR61010 and 2 holes are
planned at HN6 Thrust 2.
Other previously drilled areas include HN9 Thrust 2, which is positioned on Thrust 2. Interestingly, both
the mineralised targets at HN9 and Lady Julie North appear to straddle two thrusts, with HN9 being a
major 3km-long mineralised zone.
The eight thrust zones that come to surface continue to the north and south over an extensive 6km
length and shallow RAB (shown in red outlines in Figure 2) and or soil geochemistry is being planned
Pg. 4
Financial Statements
(shown in yellow outlines in Figure 2) to help outline any further anomalous gold areas worthy of follow
up drilling.
Within the HN5, HN6, HN9 and Lady Julie areas there are many new shallow intersections (Fig
3 and Table 2) with a total of 1113 intersections (ranging from 1 to 19m) greater than 0.5g/t Au,
which includes 471 greater than 1g/t Au, 170 greater than 2g/t Au, 88 greater than 3g/t Au and
57 greater than 4g/t Au.
A further 40 RC holes for 4,264m have assays pending. A new rig has already started with a
programme of 110 RC holes for 10,310m (shown in yellow in Figure 2) following up the new assays
reported on Lady Julie North 1, HN5 West and extending and infilling the HN9 mineralisation, which is
designed to test and extend all ten targets shown in this release with the aim of ultimately converting
to an Indicated Resource.
Pg. 5
Financial Statements
Figure 2. Gold intersection overview covering the HN5, HN6, HN9 and adjacent Lady Julie Projects showing ten additional gold
targets shown in purple outlines covering 15.7km with highlighted intersections (yellow label) and two purchased tenements
P38/4170 and P38/4126 (pink shade). Significant historical and Magnetic intercepts (max Au projected to surface) and 40 RC and
4 Diamond holes for 4,264m with assays pending in blue and planned 110 RC holes for 10,310m in yellow. Thrust soil sampling
areas in yellow outlines and RAB shallow geochemical sampling red outlines.
Pg. 6
Financial Statements
Figure 3. Location Map showing Hawks Nest and Lady Julie Projects near major gold mines
At Hawks Nest 5, 6, 9 and Lady Julie extensive drilling programmes have been completed, including
1,261 RC holes totaling 79,747m (average 63m depth) and 4 Diamond holes totaling 431m, 19141 2–
5m composites and 9,476 1m splits. This release is mainly reporting on 2165 composite assays (2-5m)
from
(MHNRC878,880,881,928,932-947,951,952,962,867,968,971-978,984-
1009,1011,1014-1016, 1018-1028 and MLJRC135,162,209-211,216,217,226-293) totaling 8,598m,
including deepening hole MLJRC162 from 50m to 80m and 315 1m splits. A further 40 RC and 4
Diamond holes for 4,264m have assays pending.
93 RC
holes
There are now at least four discernible mineralised lodes recognised that mostly dip shallowly around
20–30° to the east and plunge shallowly to the northeast within the Central Thickened zone. There are
at least four stacked thickened lodes with some very thick gold intersections including 104m at 0.82g/t
from 8m in MHNRC582 including 20m at 2.23g/t from 95m and 70m at 0.49g/t from 13m in MHNRC541.
These multi-stacked thickened lodes show similarities with the adjacent Wallaby, Sunrise Dam and
Jupiter major gold deposits. More results are pending for this area. is still open to the NE and more
holes are planned heading towards the NE where a seismic thickened target is 1km away.
This Central Thickened Zone crosscuts the NNW-trending near-surface flat-dipping mineralisation and
may represent a blowout zone at the intersection of the NNW shear zone with NE-trending porphyries
and dolerites, where four separate shallow-dipping porphyry zones coalesce and thicken. The
thickened central zone within HN9.
Lady Julie North Target expanded to 4.6km with addition of P38/4170.
After our high-grade results at Lady Julie North with the best and most consistent shallow intersection
to date at Lady Julie, with 38m at 3.6g/t gold from 32m including 16m at 5.6g/t from 54m in MLJRC162,
a 100% interest in P38/4170 was purchased from Mining Equities (shown in pink in Figure 2) for
$67,500 in cash.
P38/4170 (80 hectares) has numerous significant gold intersections within a 700m length including,
13m at 2.08g/t from 66m in RFRC014, 11m at 1.05g/t from 48m in RFAC109, 11m at 1.64g/t from 97m
Pg. 7
Financial Statements
in RFRC015, 3m at 6.25g/t from 51m in RFAC307 (Figure 3). Two NS thrust zones also pass through
the western edge of this tenement and are the same ones that contain our 36m at 3.6g/t from 32m in
Hole 162 in Lady Julie North 1, 2km to the south. This addition expands the prospective target length
of the Lady Julie North targets to 4.6km in length.
The acquisition of P38/4170 provides good upside to the extensive 4.6km long Lady Julie North Target
with many significant intersections present including 13m at 2.1g/t from 66m in RFRC014 and 11m at
1.6g/t from 97m, and the adjoining two NS thrusts which contain the intersection of 38m at 3.6g/t from
32m in MLJRC162. In addition, the acquisition of P38/4126 provides a near surface thrust zone that
contains numerous workings and has a significant 1m at 58.5g/t intersection down dip.
Nickel-Cu-PGE Projects
Four separate projects totaling 322sq.km including Benjabbering E70/5537, Trayning E70/5534,
Goddard E70/5538 and Korrelocking ELA70/5771 (Figure 4) are held 100% by Magnetic Resources
starting from 90km out to 150km northeast of Chalice Gold Mines Limited’s Julimar Ni-Pd Discovery.
These projects were selected based on aeromagnetic interpretation after noting the structural setting
of the Julimar complex and the Gonneville mineralised discrete magnetic mineralised Ni-Cu-PGE rich
intrusion. The Julimar discovery in March 2020 has led to a massive pegging rush covering 30,000
sq. km. The Julimar Intrusive Complex flags the existence of a new and unexplored West Yilgarn Ni-
Cu-PGE Province along the western margin of the Archean Yilgarn Craton.
Figure 4. Coverage of Magnetics four projects NE of Julimar overlayed on the regional aeromagnetics
Pg. 8
Benjabbering E70/5537
Financial Statements
The 111sq. km Benjabbering Project has a large 25km long sinuous aeromagnetic pattern that trends
in a NE and N direction and is very similar to the Julimar trends and structures as shown in Figure 5.
Several thickened zones have been Identified (shown as circles in Figure 6), which represent possible
feeder areas for potential Ni-Cu-PGE mineralisation.
Figure 5. Regional Aeromagnetics comparing the Julimar intrusion held by Chalice and Magnetic’s Benjabbering area.
The length of the magnetic trends is around 25km in both areas.
`
These target areas will be followed up in the field with initial roadside drilling and subsequent more
detailed AC drilling after access agreements with landowners are finalized.
The geology at Julimar comprises a 26km-long layered mafic-ultramafic sill which at its southern end
(Gonneville) dips at 45°W with a flat northerly plunge. The main host at Gonneville is serpentinite, with
only limited gabbro evident on the drill sections. Although the new Hartog area is to the north of the
Gonneville magnetic intrusion and is expected to have less magnetic mafic rocks associated.
The bedrock geology at Benjabbering is mapped as comprising a series of granitic rocks ranging
including biotite granite, and granodiorite plus more metamorphosed rocks such as banded and
tonalitic gneiss. However, bedrock outcrops are sparse, most of the area being covered with
Quaternary aeolian, alluvial and colluvial deposits overlying Tertiary sand and rare laterite. The sinuous
aeromagnetics is interpreted to be caused by a mafic unit under cover.
Pg. 9
Financial Statements
Figure 6. Benjabbering Project showing sinuous aeromagnetic trend with circled areas representing potential thickened
zones and targets for Ni-Pd mineralisation
Trayning E70/5534
The 68sq. km Trayning tenement (Figure 7) covers a broad series of NE-trending magnetic zones,
which are crosscutting the NS Archean fabric further to the east.
In several locations there are linear features containing distinctive magnetic highs up to 2km in length
representing possible ultramafic feeder zones prospective for Ni-Pd, where access is being sought for
shallow drilling.
Most of the tenement is covered by Tertiary sandplain with rare pisolitic laterite remnants which in
places is overlain by Quaternary colluvium.
Pg. 10
Financial Statements
Figure 7. Trayning Project showing sinuous aeromagnetic trend with circled areas representing potential thickened
zones and targets for Ni-Pd mineralisation
Goddard E70/5538
The 70sq. km Goddard tenement (Figure 8) contains a pronounced inverted U-shaped magnetic zone
in the eastern part of the tenement, which could be a possible fold structure. Several circled areas will
be initially tested with roadside drilling followed with more drilling after access agreements are finalized.
Pg. 11
Financial Statements
Figure 8. Goddard Project showing inverted U-shaped folded aeromagnetic trend with circled areas representing
potential thickened zones and targets for Ni-Pd mineralisation
A series of circular Quaternary salt pans comprising lacustrine deposits of sand and clay occupies the
central part of the tenement, associated with Lake Koombekine situated on the western margin of the
licence. Very limited outcrops of granitic rocks occur, ranging from biotite granite to migmatite. The
remainder of the tenement is covered with Quaternary colluvium and alluvium overlying Tertiary sand
deposits.
Korrelocking E70/5771
The 73sq.km Korrelocking tenement (Figure 9) covers a pronounced 2km-long E-W trending magnetic
anomaly, which may represent an ultramafic feeder zone prospective for NI-Pd. There are also
numerous localized EW dykes located here. This 2km EW target may be exploiting reactivated older
structures which may have influenced or controlled the intrusion of Julimar-type mafic-ultramafic
bodies. Thus, there may be a structural relationship between some Proterozoic dykes and Julimar-type
intrusions. This area is well traversed by roads and initial AC drilling is recommended over the road
verges that are along the 2km long EW magnetic anomaly, which is under cover. The bedrock is
mapped as scattered outcrops of adamellite and biotite granite overlain by Tertiary sandplain with
isolated patches of lateritic gravel in turn overlain by Quaternary silt, sand and gravel derived from
underlying and adjacent laterite and bedrock.
Pg. 12
Financial Statements
Figure 9. Korrelocking Project showing pronounced 2km long EW intrusive associated with numerous EW Proterozoic
dykes and access via a number or roads
Melita-Malcom Tenements
A number of tenements 15km east of Leonora have been sold to Mt Malcom Mines NL. The first tranche
tenements include P37/9204-7, P37/1331, P37/1367 and E37/1419 and have been sold in December
2021 for 1,000,000 Mt Malcom Mines shares and a 2% gross royalty. The second tranche tenements
include P37/8905-12 were sold in January 2022 for 1,000,000 shares and a 2% gross royalty.
Other Projects
The Company actively reviews other projects and tenements for acquisition and development within
the Leonora–Laverton region.
Pg. 13
Financial Statements
Projects Summary: Iron ore and Nickel
Magnetic Resources still maintains an interest in potentially economic iron ore deposits (Figure
13). The current focus is on the Kauring, Mount Joy and Ragged Rock Projects.
The agreement includes further payments totalling $500,000 and a sliding scale royalty with
payments starting at $0.25/t for a sale price of $80.00/t or less, and thereafter, for every increase
in the sale price of $10.00/t the royalty rate will increase by $0.25/t.
The Company also has a number of tenements located 90km northeast of the Julimar high-
grade palladium- rich Ni-Cu-PGE sulphides at Julimar, 60km NE of Perth (Fig. 13).
Figure 13. Magnetic Resources NL’s Iron Ore and Nickel Projects
Other Commodities (Magnetic 0%):
During the year Magnetic maintained an arrangement with Tungsten Holdings and retains a small
royalty over gold rights at Lake Seabrook E70/2935 held entirely by Tungsten.
Pg. 14
Financial Statements
Directors Report
Your directors present their report on the Company for the year ended 30 June 2022
Directors
The following persons were directors of Magnetic Resources NL (“Magnetic” or “the Company”)
during the whole of the year and up to the date of this report unless otherwise stated:
• Eric Lim
• George Sakalidis
• Julien Sanderson (Resigned 1 April 2022)
• Hian Siang Chan
• Benjamin Donovan (Appointed 1 April 2022)
Principal Activities
The principal activity of the Company during the year was to explore mineral tenements in Western
Australia.
Results From Operations
During the year the Company recorded an operating loss $7,659,693 (2021: $8,628,156).
Dividends
No amounts have been paid or declared by way of dividend by the Company since the end of the
previous financial year and the Directors do not recommend the payment of any dividend.
Review of Operations
A review of operations is covered elsewhere in this Annual Report.
Earnings Per Share
Basic Loss per share for the financial period was 3.52 cents (2021: 4.18 cents). Diluted Loss per
share in respect of both years ended 30 June 2022 and 30 June 2021 was the same as the Basic
Loss per share.
Financial Position
The Company’s cash position as at 30 June 2022 was $2,029,835 a decrease from the 30 June
2021 cash balance which was $6,993,607. The Company’ cash position is adequate to fund
committed exploration expenditure.
Significant Changes in State of Affairs
Other than what is reported in the director’s report, there were no significant changes in the state of
affairs of the Company during the financial period.
Matters Subsequent to the End of the Financial Year
Subsequent to the year end, the Company announced a capital raising of $1.1m in July 2022 and
$3.44m in September 2022.
Pg. 15
Financial Statements
Likely Developments and Expected Results of Operations
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 directors believe, on reasonable
grounds, that the inclusion of such information would be likely to result in unreasonable prejudice to
the Company.
Environmental Issues
The Company carries out exploration operations in Australia which are subject to environmental
regulations under both Commonwealth and State legislation.
The Company’s exploration manager is responsible for ensuring compliance with regulations.
During or since the financial period there have been no known significant breaches of these
regulations.
Information on Directors and Company Secretary
Eric JH Lim
Mr Lim is currently a senior executive officer with Standard Chartered Bank and holds the position
Head of Wholesale Banking Finance, Southeast Asia.
Prior to joining Standard Chartered, he has held positions with OCBC Bank, General Electric and a
number of executive positions in the US and Asia Pacific region including Finance Director of GE
Money Japan and Global Financial Planning and Analyst for GE Commercial Finance (Healthcare
Financial Services). He has also had extensive audit experience with GE Corporate Audit leading a
variety of engagements ranging from process to financial audits.
Eric is qualified with an MBA and a Bachelor of Accounting degree.
Mr Lim has a relevant interest in 9,491,794 ordinary fully paid shares and 900,000 options to acquire
fully paid ordinary shares.
Mr Lim has not held any directorships in other listed companies during the last 3 years.
George Sakalidis
Mr Sakalidis is an exploration geophysicist with over 30 years’ industry experience. His career has
included extensive gold, diamond, base metals and mineral sands exploration. He has worked
tirelessly building the gold assets of the company, since February 2016.
Mr Sakalidis has been involved in a numerous significant mineral discoveries, including the Three
Rivers and Rose gold deposits, the Blackmans gold deposit, the Dongara Mineral Sands Deposits,
the Boonanarring, Gingin South, Hyperion Mineral Sands Deposits in Western Australia and he was
involved in the tenement application over the Silver Swan nickel deposit.
He was also involved with the tenement application for the recently discovered Monty Copper
mineralisation adjacent to the Degrussa Copper deposit. He is a founding Director and is Managing
Director of this company, Magnetic Resources NL (since listing on August 2006, resigned October
2014, reappointed 29 January 2016), Image Resources NL (since listing on July 2002 and resigned
29 May 2020), Meteoric Resources NL (since listing on 16 July 2004). Mr Sakalidis is also a founding
director of ASX listed companies Emu NL and Potash West NL.
Pg. 16
Financial Statements
Mr Sakalidis has a relevant interest in 7,899, 336 ordinary fully paid shares, 3,135,714 contributing
shares and 1,800,000 options to acquire fully paid ordinary shares.
Throughout the past three years he has served as a director of the following listed companies:
Image Resources NL – appointed 2002, resigned 29 May 2020.
Meteoric Resources NL – appointed February 2004, resigned 29 November 2017
Hian Siang Chan
Mr Chan is the founder, Executive Director and CEO of SP Chemicals Pte Ltd, a Singapore-based
company that specializes in the production of chlor-alkali and petrochemicals in the Jiangsu
Province, PRC, which has annual revenue of approx. A$1.47 billion.
He is responsible for and instrumental in the establishment of SP Chemicals’ Taixing plant in Jiangsu
Province, PRC. Mr Chan is also an Executive Director of SP Chemicals parent company, Asiawide
Holdings Pte Ltd.
He holds a Bachelor of Arts (Economics) degree from York University, Toronto, Canada and a
Master of Business Administration from McGill University, Montreal, Canada.
Mr Chan has a relevant interest in 29,064,538 ordinary fully paid shares.
Mr Chan has not held any directorships in other listed companies during the last 3 years
Ben Donovan (Non – Executive Director and Company Secretary)
Mr Donovan is a member of Chartered Secretaries Australia and provides corporate advisory, IPO
and consultancy services to a number of companies.
Mr Donovan is currently a Director and Company Secretary of several ASX listed and public unlisted
companies involved in the resources and technology industries, including one company currently
developing a large magnetite project in Australia.
He has extensive experience in listing rules compliance and corporate governance, having served
as a Senior Adviser at the Australian Securities Exchange (ASX) in Perth for nearly 3 years,
including as a member of the ASX JORC Committee.
In addition, Mr Donovan has experience in the capital markets having raised capital and assisted
numerous companies in achieving an initial listing on the ASX, as well as for a period of time, as a
private client adviser at a boutique stock broking group.
Mr Donovan has a relevant interest in 60,000 contributing shares and 600,000 options.
Audit Committee
The Company adopted a formal Audit charter last year. The following separately constituted Audit
Committee meetings were held during the year:
Eligible to
Attend
Attended
George Sakalidis
Eric Lim
Benjamin Donovan
Hian Siang Chan
2
2
-
2
2
2
-
2
Pg. 17
Financial Statements
Remuneration Committee
At the date of this report, the Remuneration Committee comprises the current board of directors. No
remuneration committee meetings were held during the year as the board decided all matters.
Meetings of Directors
During the financial year ended 30 June 2022, the following director meetings were held:
George Sakalidis
Eric Lim
Benjamin Donovan
Hian Siang Chan
Eligible to
Attend
5
5
1
5
Attended
5
5
1
5
*Excludes meetings held by circular resolution
Remuneration Report (Audited)
Names and positions held of key management personnel (KMP), defined by the Australian
Accounting Standards as being (“those people having authority and responsibility for planning,
directing, and controlling the activities of an entity, either directly or indirectly. This includes an
entity's directors”) in office at any time during the financial year were:
Management
Key
Person
Eric Lim
George Sakalidis
Benjamin Donovan
Hian Siang Chan
Position
Non-Executive Chairman
Managing Director
Non-Executive Director
Non-Executive Director
The Company’s policy for determining the nature and amount of emoluments of key management
personnel is set out below.
Key Management Personnel Remuneration (KMP) and Incentive Policies
Given the size of the Company, all board members form the Remuneration Committee
(“committee”). The mandate of the Committee is to consider appropriate and competitive
remuneration and incentive policies (including basis for paying and the quantum of any bonuses) for
key management personnel and others as considered appropriate to be singled out for special
attention, which:
• motivates them to contribute to the growth and success of the Company within an appropriate
control framework;
• aligns the interests of key leadership with the interests of the Company’s shareholders;
• are paid within any limits imposed by the Constitution and make recommendations to the
Board with respect to the need for increases to any such amount at the Company’s annual
general meeting; and
•
in the case of directors, only permits participation in equity-based remuneration schemes
after appropriate disclosure to, due consideration by and with the approval of the Company’s
shareholders.
Pg. 18
Non-Executive Directors
Financial Statements
• The committee is to ensure that non-executive directors are not provided with retirement
benefits other than statutory superannuation entitlements.
• To the extent that the Company adopts a remuneration structure for its non-executive
directors other than in the form of cash and superannuation, disclosure shall be made to
stakeholders and approvals obtained as required by law and the ASX listing rules.
Incentive Plans and Benefits Programs
The committee is to:
•
review and make recommendations concerning long-term incentive compensation plans,
including the use of equity-based plans. Except as otherwise delegated by the Board, the
committee will act on behalf of the Board to administer equity-based and employee benefit
plans, and as such will discharge any responsibilities under those plans, including making
and authorising grants, in accordance with the terms of those plans;
• ensure that, where practicable, incentive plans are designed around appropriate and realistic
performance targets that measure relative performance and provide remuneration when they
are achieved; and
•
review and, if necessary, improve any existing benefit programs established for employees.
Retirement and Superannuation Payments
Prescribed benefits were provided by the Company to all directors by way of superannuation
contributions to externally managed complying superannuation funds during the year. These
benefits were paid as superannuation contributions to satisfy (at least) the requirements of the
Superannuation Contribution Guarantee Act and in satisfaction of any salary sacrifice requests. All
contributions were made to accumulation type funds selected by the director and accordingly
actuarial assessments were not required.
Relationship between Company Performance and Remuneration
There is no relationship between the financial performance of the Company for the current or
previous financial year and the remuneration of the key management personnel. Remuneration is
set having regard to market conditions and encourage the continual services of key management
personnel.
Use of Remuneration Consultants
The Company did not employ the services of any remuneration consultant during the financial year
ended 30 June 2022.
Pg. 19
Financial Statements
Key Management Personnel Remuneration for 30 June 2022
Key Management
Personnel
Short-term
benefits
Fees &
contractual
payments
($)
Post-employment
benefits
Statutory
superannuation
($)
Cash
settled
share
based
payments
($)
Equity
settled Share
Based
Payments
($)
Eric Lim
52,900
-
George Sakalidis
301,950
28,685
-
-
-
-
-
-
400
4,188
- -
-
33,273 -
-
Total
($)
52,900
330,635
6,400
43,863
52,900
486,698
Benjamin Donovan
6,000
Julien Sanderson
Hian Siang Chan
Total
39,675
52,900
453,425
Key Management Personnel Remuneration for 30 June 2021
Key Management
Personnel
Short-term
benefits
Fees &
contractual
payments
($)
Post-employment
benefits
Statutory
superannuation
($)
Cash
settled
share
based
payments
($)
Eric Lim
George Sakalidis
Julien Sanderson
Hian Siang Chan
46,575
270,005
47,150
28,521
-
25,650
4,425
-
Total
392,251
30,075
-
-
-
-
-
Equity settled
Share Based
Payments
($)
429,300
Tot
al
($)
475,875
848,019
1,143,674
422,246
473,821
-
28,521
1,699,565
2,121,891
Securities Received that are Not Performance-Related.
No members of KMP are entitled to receive securities that are not performance-based as part of
their remuneration package.
Pg. 20
Financial Statements
Employment Details of Members of Key Management Personnel
Key
Management
Personnel
Position held as at
30 June 2022 and
any changes
during the year
Contract details
Continuation
and Termination
Proportion of 2021 / 2022
Remuneration related to
performance (other than
options issued)
Non-cash
salary based
incentives
Shares / units
Proportion of
2020/ 2021
Remuneration
not related to
performance
(Fixed
salary/fees)
Eric Lim
Non-Executive
Director
George Sakalidis
Managing Director
Benjamin Donovan
Hian Siang Chan
Non-Executive
Director
Non-Executive
Director
No fixed term
No fixed term
2 months’ notice
required
to
terminate
No fixed term
-
-
-
-
-
-
No fixed term
-
-
100%
100%
100%
100%
The employment terms and conditions of all KMP are formalised in contracts of employment.
Options held by Key Management Personnel
All options were issued by Magnetic Resources NL and entitle the holder to one ordinary share in
Magnetic Resources NL for each option exercised. There has not been any alteration to the terms
or conditions of any grants since grant date.
The number of options over fully paid ordinary shares in the Company held at the beginning and
end of the year and movements during the financial year by key management personnel and/or
their related entities are set out below( Details of the Share Based Payments made during the
year are referred to in note 21):
30 June 2022:
Name
Balance at
the
beginning
of the year
Grant Details
Exercised during
the year
Lapsed
Issue
Date
No.
Value
$
No.
Value
$
No.
Other
changes
during
the year
Balance
at the end
of the
year
Eric Lim
2,400,000
-
George
Sakalidis
Benjamin
Donovan
Hian Siang
Chan
4,650,000
600,000
-
-
-
-
Total
7,650,000
-
-
-
-
-
-
- 1,500,000
156,408
- 2,850,000
302,233
-
-
-
-
-
-
- 4,350,000
458,641
-
-
-
-
-
-
-
-
-
-
900,000
1,800,000
600,000
-
3,300,000
Pg. 21
Financial Statements
Shares held by Key Management Personnel
The number of shares and partly-paid contributing shares (on which $0.20 is payable to convert
those partly-paid shares to fully paid shares) in the Company held at the beginning and end of the
year and net movements during the financial year by key management personnel and/or their
related entities are set out below:
30 June 2022:
Name
Eric Lim
Ordinary shares
Contributing shares
George Sakalidis
Ordinary shares
Contributing shares
Benjamin Donovan
Ordinary shares
Contributing shares
Hian Siang Chan
Ordinary shares
Contributing shares
Total Ordinary shares
Total Contributing
shares
Balance at
the start of
the year
8,132,794
5,474,336
3,135,714
60,000
29,064,538
42,671,668
3,195,714
Consultant Agreements
Granted as
Remuneration
during the
Year
Issued on
exercise of
Options during
the Year
Other Changes
during the
Year
Balance at the
end of the year
-
-
-
-
-
-
-
-
-
-
1,500,000
-
2,850,000
-
-141,000
9,491,794
-
-425,000
7,899,336
3,135,714
-
-
-
-
-
-
-
-
4,350,000
-
-566,000
-
60,000
29,064,538
-
46,455,668
3,195,714
On 10 August 2016, the Company entered into an employment agreement with Mr Sakalidis for his
services as an executive director effective 7 February 2016. The key terms of the agreement are for
Mr Sakalidis to work an average of 95 hours per month at an hourly rate of $155 per hour performing
the normal duties associated with an executive director of an ASX listed company. Mr Sakalidis is
also entitled to participate in any short and long term incentive plans, and normal leave entitlements.
Either party may give 2 months notice of their intention to terminate the agreement, or immediately
if Mr Sakalidis commits any serious misconduct or if removed by shareholders. On 11 April 2017,
the Board agreed to amend the title held by Mr Sakalidis to Managing Director with no change to
the terms of his contract. On 27 May 2019, the Company agreed to revise Mr Sakalidis’ hourly rate
to $178.25 per hour. On 25 May 2021, the Company agreed to revise Mr Sakalidis’ hourly rate to
$204.99 per hour.
Mr Donovan is engaged by the Company as a non- executive Director and Company Secretary. Mr
Donovan is employed on an agreed annual fee with additional hours paid at market rates. Each
party can terminate the agreement with 4 months notice.
Mr Lim, Mr Sanderson and Mr Chan have entered into a director’s contract where they are paid
$46,000 per annum. On 25 May 2021, the Company agreed to revise the annual payment to $52,900
per annum.
Guaranteed Rate Increases
There are no guaranteed rate increases fixed in the contracts of any of the key management
personnel.
Pg. 22
Financial Statements
Other Equity –related KMP Transactions
There have been no other transactions involving equity instruments apart from those described in
the tables above relating to options, rights and shareholdings.
Other Transactions with KMP and / or their Related Parties
There have been no other transactions conducted between the Company and KMP or their related
parties, that were conducted other than in accordance with normal employee, customer or supplier
relationships on terms no more favourable than those reasonably expected under arm’s length
dealings with unrelated persons. involving equity instruments apart from those described in the
tables in the tables above relating to options, rights and shareholdings.
Directors’ Interests
The relevant interest of each director in the shares and options over such instruments issued by the
Company as notified by the directors to the Australian Securities Exchange in accordance with
Section205G(1) of the Corporations Act 2001 at the date of this report is as follows:
Fully Paid Ordinary
Shares
Partly-paid Contributing
Shares
Options to Acquire
Fully Paid Ordinary
Shares
Eric Lim
George Sakalidis
Benjamin Donovan
Hian Siang Chan
Total
9,491,794
7,899,336
-
29,064,538
46,455,668
-
3,135,714
60,000
-
3,195,714
900,000
1,800,000
600,000
-
3,300,000
Share Options Granted to Directors And Officers
No options have been issued to directors or officers during or since the end of the financial year
other than those noted above.
END OF AUDITED SECTION
Employees
At 30 June 2022, aside from directors who are for tax purposes treated as employees, the
Company’s only other employees were part-time or casual staff. The same position prevailed at 30
June 2021.
Corporate Structure
Magnetic is a no liability company incorporated and domiciled in Australia.
Pg. 23
Financial Statements
Access to Independent Advice
Each director has the right, so long as he is acting reasonably in the interests of the Company
and in the discharge of his duties as a director, to seek independent professional advice and
recover the reasonable costs thereof from the Company.
The advice shall only be sought after consultation about the matter with the chairman (where it
is reasonable that the chairman be consulted) or, if it is the chairman that wishes to seek the
advice or it is unreasonable that he be consulted, another director (if that be reasonable).
The advice is to be made immediately available to all Board members other than to a director
against whom privilege is claimed.
Indemnification And Insurance Of Directors And Officers
The Company has entered into agreements indemnifying, to the extent permitted by law, all the
directors and officers of the Company against all losses or liabilities incurred by each director and
officer in their capacity as directors and officers of the Company. During the year an amount of
$26,800 (2021: $21,285) was incurred in insurance premiums for this purpose.
Options
As at the date of this report there are the following unquoted options over unissued ordinary shares
in the Company:
• 4,900,000 options to acquire fully paid shares exercisable at $1.515 on or by 31 December
2024
Option holders do not have any rights to participate in any issues of shares or other interests of the
company or any other entity. There have been no options granted over unissued shares or interests
of any controlled entity within the Group during or since the end of the reporting period.
For details of options issued to directors and executives as remuneration, refer to the remuneration
report. During the year ended 30 June 2022, 5,450,000 shares were issued on the exercise of options
granted.
No person entitled to exercise the option had or has any right by virtue of the option to participate in
any share issue of any other body corporate.
Pg. 24
Non-audit Services
Financial Statements
During the year Elderton Audit Pty Ltd, the Company’s auditor, did not perform any services other
than their audit services.
In the event that non-audit services are provided by Elderton Audit Pty Ltd, the Board has
established certain procedures to ensure that the provision of non-audit services are compatible
with, and do not compromise, the auditor independence requirements of the Corporations Act 2001.
These procedures include:
▪ all non-audit services are reviewed and approved by the audit committee prior to
commencement to ensure they do not adversely affect the integrity and objectivity of the
audit; and
▪
the nature of the service provided does not compromise the general principles relating to
auditor independence in accordance with APES 110: Code of Ethics for Professional
Accountants set by the Accounting Professional and Ethical Standards Board.
Auditor’s Independence Declaration
A copy of the auditor’s independence declaration as required under section 307C of the
Corporations Act 2001 is set out in this annual report.
Signed in accordance with a resolution of the directors
SIGNED
GEORGE SAKALIDIS
MANAGINGDIRECTOR
Perth
30 September 2022
Pg. 25
Financial Statements
Auditor's Independence Declaration To those charged with governance of Magnetic Resources NL As auditor for the audit of Magnetic Resources NL for the year ended 30 June 2022, I declare that, to the best of my knowledge and belief, there have been: • no contraventions of the independence requirements of the Corporations Act 2001 in relation to the audit; and • no contraventions of any applicable code of professional conduct in relation to the audit. Elderton Audit Pty Ltd Rafay Nabeel Audit Director Perth 30 September 2022
Pg. 26
Financial Statements
Corporate Governance Statement
Magnetic Resources NL ("Company") has made it a priority to adopt systems of control and accountability as the basis
for the administration of corporate governance. These policies and procedures are summarised in this statement.
Commensurate with the spirit of the ASX Corporate Governance Council's Corporate Governance Principles and
Recommendations ("Principles & Recommendations") fourth edition, the Company has followed each recommendation
where the Board has considered the recommendation to be an appropriate benchmark for its corporate governance
practices. Where the Company's corporate governance practices follow a recommendation, the Board has made
appropriate statements reporting on the adoption of the recommendation. Where, after due consideration, the
Company's corporate governance practices depart from a recommendation, the Board has offered full disclosure and
reason for the adoption of its own practice, in compliance with the "if not, why not" regime.
Disclosure of Corporate Governance Practices
Summary Statement
ASX
P & R
If not, why not
ASX
P & R
If not, why not
Recommendation 1.1
Recommendation 4.2
Recommendation 1.2
Recommendation 4.3
Recommendation 1.3
Recommendation 5.1
Recommendation 1.4
Recommendation 5.2
Recommendation 1.5
Recommendation 5.3
Recommendation 1.6
Recommendation 6.1
Recommendation 1.7
Recommendation 6.2
Recommendation 2.1
Recommendation 6.3
Recommendation 2.2
Recommendation 6.4
Recommendation 2.3
Recommendation 6.5
Recommendation 2.4
Recommendation 7.1
Recommendation 2.5
Recommendation 7.2
Recommendation 2.6
Recommendation 7.3
Recommendation 3.1
Recommendation 7.4
Recommendation 3.2
Recommendation 8.1
Recommendation 3.3
Recommendation 8.2
Recommendation 3.4
Recommendation 8.3 N/A
Recommendation 4.1
Pg. 27
Website Disclosures
Financial Statements
Further information about the Company's charters, policies and procedures may be found at the Company's website at
www.magres.com.au, under the section marked Corporate Governance.
Disclosure – Principles & Recommendations
The Company reports below on how it has followed (or otherwise departed from) each of the Principles &
Recommendations during the financial period ("Reporting Period").
Principle 1 – Lay Solid Foundations for Management and Oversight
Recommendation 1.1: A listed entity should disclose:
a)
the respective roles and responsibilities of its board and management; and
b)
those matters expressly reserved to the board and those delegated to management.
Disclosure:
The Company has established the functions reserved to the Board and has set out these functions in its Board Charter.
The Board is collectively responsible for promoting the success of the Company through its key functions of overseeing
the management of the Company providing overall corporate governance of the Company, monitoring the financial
performance of the Company, engaging appropriate management commensurate with the Company's structure and
objectives, involvement in the development of corporate strategy and performance objectives and reviewing, ratifying
and monitoring systems of risk management and internal control, codes of conduct and legal compliance.
The Company has established the functions delegated to senior executives and has set out these functions in its Board
Charter. Senior executives are responsible for supporting the Managing Director or Executive Director and assisting
the Managing Director or Executive Director in implementing the running of the general operations and financial
business of the Company, in accordance with the delegated authority of the Board.
Senior executives are responsible for reporting all matters which fall within the Company's materiality thresholds at first
instance to the Managing Director or Executive Director or, if the matter concerns the Managing Director or Executive
Director, then directly to the Chair or the lead independent Director, as appropriate.
Recommendation 1.2: A listed entity should:
a) undertake appropriate checks before appointing a person, or putting forward to security holders a candidate for
election, as a director; and
c) provide security holders with all material information in its possession relevant to a decision on whether or not to
elect or re-elect a director.
Disclosure:
The board undertakes a review of the potential candidate and their appropriate skills through a reference of previous
positions and industry contacts.
Full details of each person are announced in the initial appointment announcement and also in the Annual Report.
Where a director is seeking election, shareholders are given full details.
Recommendation 1.3: A listed entity should have a written agreement with each director and senior executive setting
out the terms of their appointment.
Disclosure:
Upon joining the Company, each director and senior executive enters into an agreement with the Company which sets
out the key terms of their employment and their responsibilities including adhering to all Company policies.
Recommendation 1.4: The company secretary of a listed entity should be accountable directly to the board, through
the chair, on all matters to do with the proper functioning of the board.
Disclosure:
The Company Secretary advises the board directly on all matters regarding the function of the board, in consultation
with any legal advice if so required. The Secretary is responsible for the co-ordinating of all board matters, committee
meetings and advice.
Recommendation 1.5: A listed entity should:
Pg. 28
Financial Statements
a) have a diversity policy which includes requirements for the board or a relevant committee of the board to set
measurable objectives for achieving gender diversity and to assess annually both the objectives and the entity’s
progress in achieving them;
b) disclose that policy or a summary of it; and
c) disclose as at the end of each reporting period the measurable objectives for achieving gender diversity set by
the board or a relevant committee of the board in accordance with the entity’s diversity policy and its progress
towards achieving them, and either:
1)
2)
the respective proportions of men and women on the board, in senior executive positions and across the
whole organisation (including how the entity has defined “senior executive” for these purposes); or
if the entity is a “relevant employer” under the Workplace Gender Equality Act, the entity’s most recent
“Gender Equality Indicators”, as defined in and published under that Act.16
Disclosure:
The Company does not qualify under the Act. The Company has a policy of appointing the most suitably qualified
person to each position in the Company. Where there is a vacancy in the Company, the most suitable party will be
employed.
At present, there is no documented policy of objectives, as positions are selected on the best available candidate.
At the date of this report, all senior executive positions, being persons who can influence the direction of the Company,
are filled by males.
Recommendation 1.6:
A listed entity should:
a) have and disclose a process for periodically evaluating the performance of the board, its committees and individual
directors; and
b) disclose, in relation to each reporting period, whether a performance evaluation was undertaken in the reporting
period in accordance with that process.
Disclosure:
The Chair is responsible for evaluating the board and the various committee members. The Chair holds informal
discussions with the board on an ongoing basis, as required. Given the size of the Company and only being a 4 person
board, the position of Chair is usually filled by one of the directors.
Recommendation 1.7
A listed entity should:
a) have and disclose a process for periodically evaluating the performance of its senior executives; and
b) disclose, in relation to each reporting period, whether a performance evaluation was undertaken in the reporting
period in accordance with that process.
Disclosure:
The Managing Director is responsible for evaluating the senior executives, and does this by holding informal discussions
with the senior executives on an ongoing basis, as required.
Principle 2 – Structure the Board to Add Value
Recommendation 2.1
The board of a listed entity should:
a) have a nomination committee which:
1) has at least three members, a majority of whom are independent directors; and
2)
is chaired by an independent director,
and disclose:
3)
the charter of the committee;
4)
the members of the committee; and
Pg. 29
Financial Statements
5) as at the end of each reporting period, the number of times the committee met throughout the period and the
individual attendances of the members at those meetings; or
b) if it does not have a nomination committee, disclose that fact and the processes it employs to address board
succession issues and to ensure that the board has the appropriate balance of skills, knowledge, experience,
independence and diversity to enable it to discharge its duties and responsibilities effectively.
Disclosure:
Given the size of the Company, the Board believes that the appointment of a nomination committee is not warranted,
and that all 4 Board directors should perform the role. Mr Lim and Mr Donovan are independent directors. Mr Sakalidis
and Mr Chan are not deemed to be independent due to Mr Sakalidis being Managing Director and Mr Chan being a
significant shareholder. The Company does have a charter setting out the criteria and responsibilities for the selection
of new Directors.
The number of times the committee met is outlined in the annual report.
Recommendation 2.2
A listed entity should have and disclose a board skills matrix setting out the mix of skills and diversity that the board
currently has or is looking to achieve in its membership.
Disclosure:
The skills of each individual director are outlined in the annual report setting out the qualifications and experience of
each person.
Recommendation 2.3
A listed entity should disclose:
a)
the names of the directors considered by the board to be independent directors;
b)
if a director has an interest, position, association or relationship of the type described in Box 2.3 but the board is of
the opinion that it does not compromise the independence of the director, the nature of the interest, position,
association or relationship in question and an explanation of why the board is of that opinion; and
c)
the length of service of each director
Name
Mr Eric Lim
Mr George Sakalidis
Mr Benjamin Donovan
Mr Hian Siang Chan
Position
Non-Executive Chairman
Executive Director
Non-Executive Director
Non-Executive Director
Independent
Yes
No
Yes
No
Appointed
23/8/2011
29/1/2016
28/03/2022
23/2/2020
An independent Director is defined as a Non-Executive Director and;
•
Is not a substantial shareholder of the Company or an officer of or directly or indirectly associated with a
substantial shareholder of the Company within the last 3 years, or if they have been, they have been assessed
by the Board to now be independent;
• Within the last three years has not been employed in an executive capacity by the Company, or been a Director
after ceasing to hold any such employment;
• Within the past three years has not been a principal of a material professional advisor or a material consultant
to the Company or an employee associated with a such a material service provider or advisor; and,
• Does not have a material contractual relationship with the Company other than as a Director of the Company.
Disclosure:
The Board comprises four Directors, with Mr Sakalidis as an executive director, and Mr Lim, Mr Donovan and Mr Chan
who non-executive directors, Mr Sakalidis and Mr Chan are deemed to not be independent given Mr Sakalidis is
Managing Director and Mr Chan’s significant shareholding in the Company. Mr Sanderson and Mr Lim are deemed to
be independent despite Mr Lim being a significant shareholder. The Board considers that given the size of the Company,
it is better to have directors with the appropriate skill sets as key board members.
A profile of each Director containing their skills, experience, expertise and term of office is set out in the Directors'
Report.
Identification of Independent Directors
Mr and Mr Lim are independent directors. Independence is measured having regard to the relationships listed in Box
2.3 of the Principles & Recommendations and the Company's materiality thresholds. The materiality thresholds are set
Pg. 30
out below.
Group's Materiality Thresholds
Financial Statements
The Board has agreed on the following guidelines for assessing the materiality of matters, as set out in the Company's
Board Charter:
• Statement of Financial Position items are material if they have a value of more than 10% of net assets.
• Profit and loss items are material if they will have an impact on the current period operating result of 10% or
more.
•
Items are also material if they impact on the reputation of the Company, involve a breach of legislation, are
outside the ordinary course of business, they could affect the Company’s rights to its assets, if accumulated
they would trigger the quantitative tests, involve a contingent liability that would have a probable effect of 10%
or more on statement of financial position or profit and loss items, or they will have an effect on operations
which is likely to result in an increase or decrease in net income or dividend distribution of more than 10%.
• Contracts will be considered material if they are outside the ordinary course of business, contain exceptionally
onerous provisions in the opinion of the Board, impact on income or distribution in excess of the quantitative
tests, there is a likelihood that either party will default, and the default may trigger any of the quantitative tests,
are essential to the activities of the Company and cannot be replaced, or cannot be replaced without an increase
in cost of such a quantum, triggering any of the quantitative tests, contain or trigger change of control provisions,
they are between or for the benefit of related parties, or otherwise trigger the quantitative tests.
Recommendation 2.4
A majority of the board of a listed entity should be independent directors.
Disclosure:
Mr Donovan and Mr Lim are deemed as independent. Mr Sakalidis and Mr Chan are not deemed to be independent.
Recommendation 2.5: The chair of the board of a listed entity should be an independent director and, in particular,
should not be the same person as the CEO of the entity.
Disclosure:
The Chair of the Board is Mr Lim, which allows for the division of the roles with the Executive Director role carried out
by Mr Sakalidis. Mr Lim is also considered independent.
Recommendation 2.6: A listed entity should have a program for inducting new directors and provide appropriate
professional development opportunities for directors to develop and maintain the skills and knowledge needed to
perform their role as directors effectively.
Disclosure:
Each director is provided with an induction to the Company’s assets and business including all policies and procedures.
Each director can request appropriate development opportunities which will be considered by the board on each
occasion.
If a Director considers it necessary to obtain independent professional advice to properly discharge the responsibility
of their office as a Director then, provided the Director first obtains approval for incurring such expense from the Chair,
the Company will pay the reasonable expenses associated with obtaining such advice.
Principle 3 – Act ethically and responsibly
Recommendation 3.1
A listed entity should articulate and disclose its values
Disclosure:
The Company expects Directors, Officers and Employees to practice honesty, integrity and observe high standards of
business and personal ethics and comply with all applicable laws and regulations in fulfilling their duties and
responsibilities. The Company has a Statement of Values.
Recommendation 3.2
A listed entity should:
(a) have a code of conduct for its directors, senior executives and employees; and
(b) ensure that the board or a committee of the board is informed of any material breaches of that code.
Disclosure:
Pg. 31
Financial Statements
The Company has established a Code of Conduct as to the practices necessary to maintain confidence in the
Company's integrity, practices necessary to take into account their legal obligations and the expectations of their
stakeholders and responsibility and accountability of individuals for reporting and investigating reports of unethical
practices.
Recommendation 3.3
A listed entity should:
(a) have and disclose a whistleblower policy; and
(b) ensure that the board or a committee of the board is informed of any material incidents reported under that policy.
Disclosure:
The Company has a adopted a Whistleblower Policy which aims to encourage reporting of violations (or suspected
violations) of the Company’s Code of Conduct, or material legal or regulatory obligations, and to provide effective
protection from victimisation and retaliation or dismissal to those reporting by implementing systems for confidentiality,
anonymity and report handling.
Everyone working for the Company receives training on the Whistleblower Policy and are expected to understand and
comply with it. Complaints made under the Whistleblower Policy which are regarded as serious and warrant
investigation by the Responsible Officer are investigated as set out in the Policy. The Board is informed of material
breaches or incidents reported under the Whistleblower Policy and the Board periodically reviews and makes changes
to the Policy.
Recommendation 3.4
A listed entity should:
(a) have and disclose an anti-bribery and corruption policy; and
(b) ensure that the board or a committee of the board is informed of any material breaches of that policy.
Disclosure:
The Company has an Anti-Bribery & Anti-Corruption Policy that applies to its employees, Directors, contractors,
consultants, third parties and other persons associated with the Company’s business operations.
All Company policies are aimed at conducting business that is fair, honestly, transparently, with integrity and in
compliance with the law in all jurisdictions in which it operates. Acknowledging the potential for reputational damage if
the Company is, or is alleged to be, involved in bribery or corruption, the Policy addresses:
• what may be deemed as forms of bribery and corruption;
• encourages a robust culture of integrity, transparency and compliance, which is critical to long term success
and value preservation in the business;
• aims to safeguard and make transparent relationships with external parties in the context of receiving and
giving hospitality, gifts and other financial benefits for legitimate purposes consistent with normal business
practice; and
• prohibits bribes and improper payments, and places appropriate controls on gifts and donations.
Employees are trained in the policy and are responsible for reporting actual or suspected breaches of the Policy. All
safeguards in terms of confidentiality, anonymity, ongoing support and protection in that Policy will apply in these
circumstances. Any material breaches of the Anti-Bribery & Anti-Corruption Policy are reported to the Board. The Board
periodically reviews and makes changes to the Policy
Principle 4 – Safeguard Integrity in Financial Reporting
Recommendation 4.1
The board of a listed entity should:
a) have an audit committee which:
1) has at least three members, all of whom are non-executive directors and a majority of whom are independent
directors; and
2)
is chaired by an independent director, who is not the chair of the board,
and disclose:
Pg. 32
Financial Statements
3)
the charter of the committee;
4)
the relevant qualifications and experience of the members of the committee; and
5)
in relation to each reporting period, the number of times the committee met throughout the period and the
individual attendances of the members at those meetings; or
b) if it does not have an audit committee, disclose that fact and the processes it employs that independently verify and
safeguard the integrity of its corporate reporting, including the processes for the appointment and removal of the
external auditor and the rotation of the audit engagement partner.
Disclosure:
The Board has established an Audit committee, however, given the size of the Company and there only being 4
directors, each director acts as a member of the Audit Committee. Mr Lim and Mr Donovan are considered independent.
However, Mr Sakalidis and Mr Chan are not considered independent.
Details of each of the Director's qualifications are set out in the Directors' Report.
The Company has established procedures for the selection, appointment and rotation of its external auditor. The Board
is responsible for the initial appointment of the external auditor and the appointment of a new external auditor when any
vacancy arises. Candidates for the position of external auditor must demonstrate complete independence from the
Group through the engagement period. The Board may otherwise select an external auditor based on criteria relevant
to the Company's business and circumstances. The Audit Committee meet twice during the Reporting Period as a whole
board.
Recommendation 4.2
The board of a listed entity should, before it approves the entity’s financial statements for a financial period, receive
from its CEO and CFO a declaration that, in their opinion, the financial records of the entity have been properly
maintained and that the financial statements comply with the appropriate accounting standards and give a true and fair
view of the financial position and performance of the entity and that the opinion has been formed on the basis of a
sound system of risk management and internal control which is operating effectively.
Disclosure:
The Executive Director and the Chief Financial Officer (or equivalent) have provided a declaration to the Board in
accordance with section 295A of the Corporations Act and have assured the Board that such declaration is founded on
a sound system of risk management and internal control and that the system is operating effectively in all material
respects in relation to financial risk.
Recommendation 4.3
A listed entity should disclose its process to verify the integrity of any periodic corporate report it releases to the market
that is not audited or reviewed by an external auditor.
Disclosure:
The Audit and Risk Committee reviews and makes recommendations to the Board for the approval of all financial reports.
Where a report does not require an audit or review by an external auditor, the report is prepared by the accounts
department and then reviewed by the Managing Director. Once the Managing Director has reviewed and is happy with
the report content, it is circulated internally to any appropriate member before being circulated to the full board for
comment and approval prior to lodging with the ASX.
Principle 5 – Make Timely and Balanced Disclosure
Recommendation 5.1: Recommendation 5.1
A listed entity should have and disclose a written policy for complying with its continuous disclosure obligations under
Listing Rule 3.1.
Disclosure:
The Company has established written policies designed to ensure compliance with ASX Listing Rule disclosure and
accountability at a senior executive level for that compliance. The policies also include examples of disclosure
requirements and who can communicate with media outlets.
Pg. 33
Recommendation 5.2
Financial Statements
A listed entity should ensure that its board receives copies of all material market announcements promptly after they
have been made.
Disclosure:
Any announcement is first prepared by the appropriate department of the Company and forwarded to the Managing
Director for review. If needed, the Company Secretary will also review the announcement before it is then sent to the
full board for comment and approval prior to lodging with the ASX.
Recommendation 5.3
A listed entity that gives a new and substantive investor or analyst presentation should release a copy of the
presentation materials on the ASX Market Announcements Platform ahead of the presentation.
Disclosure:
The Company lodges all presentations prior to any meeting with analysts. From time to time the Company will provide
a Company Update which is lodged on the ASX platform ahead of the commencement of trading hours where possible.
Principle 6 – Respect the Rights of Security Holders
Recommendation 6.1:
A listed entity should provide information about itself and its governance to investors via its website.
Disclosure:
The Company has designed a communications policy for promoting effective communication with shareholders and
encouraging shareholder participation at general meetings. This includes all relevant information being disclosed on
the Company’s website.
Recommendation 6.2
A listed entity should design and implement an investor relations program to facilitate effective two-way communication
with investors.
Disclosure:
The company welcomes open communication with shareholders including access to the Manging Director, Board
members and the ability for shareholders to communicate via email.
Recommendation 6.3
A listed entity should disclose how it facilitates and encourages participation at meetings of security holders.
Disclosure:
The Company encourages all shareholders to attend meetings of members, including allowing time for shareholder
questions. The time and place of each general meeting is decided with Shareholder preferences in mind, to encourage
maximum attendance by Shareholders
Recommendation 6.4
A listed entity should ensure that all substantive resolutions at a meeting of security holders are decided by a poll rather
than by a show of hands.
Disclosure:
Decisions on all substantive resolutions at general meetings of the Company will be decided by a poll to ensure the
true will of Shareholders is ascertained (rather than by a show of hands, which is inconsistent with the “one security
one vote” principle in the ASX Listing Rules).
Recommendation 6.5
A listed entity should give security holders the option to receive communications from, and send communications to,
the entity and its security registry electronically.
Pg. 34
Disclosure:
Financial Statements
The Company has an email where shareholders can request to receive all information electronically and offers the
same service through its share registry
Principle 7 – Recognise and Manage Risk
Recommendation 7.1:
The board of a listed entity should:
a) have a committee or committees to oversee risk, each of which:
1) has at least three members, a majority of whom are independent directors; and
2)
is chaired by an independent director,
and disclose:
3)
the charter of the committee;
4)
the members of the committee; and
5) as at the end of each reporting period, the number of times the committee met throughout the period and the
individual attendances of the members at those meetings; or
b)
if it does not have a risk committee or committees that satisfy (a) above, disclose that fact and the processes it
employs for overseeing the entity’s risk management framework.
Disclosure:
The Board has adopted a Risk Management Policy, which sets out the Company's risk profile. Under the policy, the
Board is responsible for approving the Company's policies on risk oversight and management and satisfying itself that
management has developed and implemented a sound system of risk management and internal control.
Under the policy, the Board delegates day-to-day management of risk to the Managing Director who is responsible for
identifying, assessing, monitoring and managing risks. The Managing Director is responsible for updating the
Company's material business risks to reflect any material changes, with the approval of the Board.
In fulfilling the duties of risk management, the Managing Director may have unrestricted access to Company employees,
contractors and records and may obtain independent expert advice on any matter they believe appropriate, with the
prior approval of the Board.
In addition, the following risk management measures have been adopted by the Board to manage the Company’s
material business risks:
1)
the Board has established authority limits for management which, if exceeded, will require prior Board approval;
2)
3)
the Board has adopted a compliance procedure for the purpose of ensuring compliance with the Group's
continuous disclosure obligations; and
the Board has adopted a corporate governance manual which contains other policies to assist the Company
to establish and maintain its governance practices.
Given that the board consists of 4 members, all members comprise the audit and risk committee, and Mr Lim and Mr
Donovan are considered to be independent. Mr Sakalidis and Mr Chan are not considered independent.
Recommendation 7.2:
The board or a committee of the board should:
a) review the entity’s risk management framework at least annually to satisfy itself that it continues to be sound; and
b) disclose, in relation to each reporting period, whether such a review has taken place.
Disclosure:
Management report to the Board as to the effectiveness of the Company's management of its material business risks
via the Audit Committee meetings. In addition at every board meeting, the Board is provided with an update to ensure
all relevant risks and systems are in place and working effectively
Pg. 35
Recommendation 7.3
A listed entity should disclose:
Financial Statements
a)
if it has an internal audit function, how the function is structured and what role it performs; or
b)
if it does not have an internal audit function, that fact and the processes it employs for evaluating and continually
improving the effectiveness of its risk management and internal control processes.
Disclosure:
The Board receives assurances from the Managing Director and the Chief Financial Officer (or equivalent) that the
financial accounts are founded on a sound system of risk management and internal control and that the system is
operating effectively in all material respects in relation to financial reporting risks.
The Company has an internal audit committee as outlined above, which then reviews these financial reports in addition
to the external auditors.
Recommendation 7.4
A listed entity should disclose whether it has any material exposure to environmental and social risks and, if it does,
how it manages or intends to manage those risks.
Disclosure:
The Company is an exploration company and as such has exposure to the risks of the mining industry environmental
risks etc. To mitigate any risks, the Company hires appropriately qualified personnel to undertake its exploration
activities.
Principle 8 – Remunerate Fairly and Responsibly
Recommendation 8.1
The board of a listed entity should:
a) have a remuneration committee which:
1) has at least three members, a majority of whom are independent directors; and
2)
is chaired by an independent director,
and disclose:
3)
the charter of the committee;
4)
the members of the committee; and
5) as at the end of each reporting period, the number of times the committee met throughout the period and the
individual attendances of the members at those meetings; or
b)
if it does not have a remuneration committee, disclose that fact and the processes it employs for setting the level
and composition of remuneration for directors and senior executives and ensuring that such remuneration is
appropriate and not excessive.
Disclosure:
The Committee has adopted a formal charter setting out the responsibilities and considerations in determining
remuneration of Executives and Non-Executives. Given the size of the Company, the current board members perform this
role. The Board considers the remuneration committee is sufficient given the size of the Board and Mr Lim and Mr
Sanderson are deemed to be independent.
The remuneration committee did not meet during the period but meetings were held as formal board items.
Recommendation 8.2:
A listed entity should separately disclose its policies and practices regarding the remuneration of non-executive directors
and the remuneration of executive directors and other senior executives.
Disclosure:
The details of Executive Directors are disclosed to the ASX when necessary.
Pg. 36
Financial Statements
Non-Executive Directors are remunerated at a fixed monthly fee for their time and their responsibilities to various
committees, and are eligible for additional fees on an hourly basis for work outside of their normal responsibilities, with
the approval of the Chairman of the Board.
The Non-Executive Directors are however eligible to participate in the Company’s incentive plan. The Board considers
that this is a necessary motivation to attract the highest calibre candidates to the Board at this stage in the Company’s
operations.
Recommendation 8.3:
A listed entity which has an equity-based remuneration scheme should:
a) have a policy on whether participants are permitted to enter into transactions (whether through the use of derivatives
or otherwise) which limit the economic risk of participating in the scheme; and
b) disclose that policy or a summary of it.
Disclosure:
Details of remuneration, including the Company’s policy on remuneration, are contained in the “Remuneration Report”
which forms of part of the Directors’ Report.
The Remuneration Committee meets where appropriate to discuss the employments terms of the Managing
Director/Executive Directors and Non-Executive Directors, and provides any equity-based remuneration after
consideration of key milestones to be achieved and other remuneration being paid in the industry.
There are no termination or retirement benefits for Non-Executive Directors (other than for superannuation).
Securities Trading Policy
The Company has also established a policy concerning trading in the Company’s securities by Directors, senior
executives and employees.
The policy includes blackout periods where no trading in Group securities shall take place between:
1) Up to and including two (2) weeks prior to the announcement of the annual results;
2) Up to and including two (2) weeks prior to the announcement of the half year results; and
3) The last two (2) week period of the months of January, April, July and October prior to the release of the
quarterly results for the periods ending 31 December, 31 March, 30 June and 30 September; or
4) as directed in writing by the Company’s Board at any time in its sole discretion.
If Directors including the Managing Director/Executive Director wish to trade securities outside the blackout period, they
must obtain approval from the Chairman. Employees must obtain the approval of the Managing Director/Executive
Director, and the Chairman must obtain the approval of the Board.
All related party share dealings involving the purchase of new shares or equity is subject to shareholder approval prior
to the shares being issued.
Pg. 37
Financial Statements
Financial Statement
Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 June 2022
Revenue:
Interest income
Tenement sold
Tribute gold sales
Profit on disposal of fixed asset
Other revenue
Expenses:
Depreciation expense
Directors’ Remuneration
Exploration and tenement expenses
Employee Remuneration
Share based payment expenses
Other expenses
(Loss) before income tax expense
Income tax expense
(Loss) from continuing operations
Other comprehensive (loss)/income for the year, net of
tax (Changes in the Fair Value of financial assets)
Total comprehensive loss for the year
Total comprehensive loss for year attributable to
members of the Company
Basic (loss) per share (cents per share)
Diluted (loss) per share (cents per share)
Notes
12
3
11/13
5
3
21
3
4
12
7
7
2022
($)
2021
($)
2.446
240,000
-
909
6,312
(30,797)
(486,698)
(6,397,702)
(215,386)
(237,632)
(541,145)
(7,659,693)
-
(7,659,693)
(148,403)
(7,808,096)
9,643
500,000
1,604
0
45,739
(41,711)
(422,326)
(5,586,977)
(190,296)
(2,334,246)
(609,586)
(8,628,156)
-
(8,628,156)
24,178
(8,603,978)
(7,808,096)
(8,603,978)
(3.52)
(3.44)
(4.18)
(4.18)
Pg. 38
Financial Statements
Statement of Financial Position
As at 30 June 2022
Current Assets
Cash and cash equivalents
Trade and other receivables
Other assets
Total Current Assets
Non-Current Assets
Property, plant and equipment
Other financial assets
Right-of-use asset
Total Non-Current Assets
TOTAL ASSETS
Current Liabilities
Trade and other payables
Lease liability
Total Current Liabilities
TOTAL LIABILITIES
NET ASSETS
Equity
Contributed equity
Reserves
Accumulated (losses)
Other comprehensive income
TOTAL EQUITY
Notes
8
9
10
11
12
13
14
15
16
16
2022
($)
2,029,835
187,274
67,432
2021
($)
6,993,607
186,189
66,384
2,284,541
7,246,180
46,510
223,475
-
78,049
131,878
-
269,985
209,927
2,554,526
7,456,107
372,176
-
332,805
-
372,176
332,805
372,176
332,805
2,182,350
7,123,302
43,446,485
2,571,878
(43,771,955)
(64,058)
2,182,350
40,230,146
2,921,073
(36,112,262)
84,345
7,123,302
The accompanying notes form part of these financial statements.
Pg. 39
Financial Statements
Statement of Changes in Equity
For the Year ended 30 June 2022
Note
Contributed
Equity (Net
of Costs)
($)
Share Based
Payments
Reserve
($)
Other
Compre-
hensive
Income
($)
Accumulated
Losses
($)
Total
($)
Balance at 1 July 2020
30,926,838
604,462
60,167
(27,484,106)
4,107,361
Comprehensive income
Operating (loss) for the year
Other comprehensive (loss) for
the year
Total comprehensive loss for
the year
Transactions with owners, in
their capacity as owners, and
other transfers
Shares issued during the year
Options converted to shares
Capital raising costs
Share based payment
Total transactions with
owners and other transfers
16
16
16
16
-
-
-
9,731,249
-
-
-
-
72,135
(17,635)
(500,076)
-
-
2,334,26
9,303,308
2,316,611
-
(8,628,156)
(8,628,156)
24,178
-
24,178
24,178
(8,628,158)
(8,603,978)
-
-
-
-
-
-
-
-
-
-
9,731,249
54,500
(500,076)
2,334,246
11,619,919
Balance at 30 June 2021
40,230,146
2,921,073
84,345
(36,112,262)
7,123,302
Balance at 1 July 2021
40,230,146
2,921,073
84,345
(36,112,262)
7,123,302
Comprehensive income
Operating (loss) for the year
Other comprehensive (loss) for
the year
Total comprehensive loss for
the year
Transactions with owners, in
their capacity as owners, and
other transfers
-
-
-
-
-
-
-
(7,659,693)
(7,659,693)
(148,403)
-
(148,403)
(148,403)
(7,659,693)
(7,808,096)
Shares issued during the year
16/21
1,021,448
237,632
Options converted to shares
Capital raising costs
Share based payments
Total transactions with
owners and other transfers
16
16
16
1,665,100
(57,036)
-
-
586,827
(586,827)
3,216,339
(349,195)
-
-
-
-
-
-
-
-
-
-
1,259,080
1,665,100
(57,036)
-
2,867,144
Balance at 30 June 2022
43,446,485
2,571,878
(64,058)
(43,771,955)
2,182,350
The accompanying notes form part of these financial statements.
Pg. 40
Financial Statements
Statement of Cash Flows
For the Year ended 30 June 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Cash payments to suppliers and contractors
Interest received
Sundry Income
Government grants received
Notes
Net cash (used in) operating activities
17
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of plant and equipment
Payments for exploration and evaluation
Purchase of new tenements
2022
($)
(1,132,035)
2,383
(2,135)
0
(1,131,787)
(317)
(6,341,078)
(124,957)
Proceeds from disposal of
Plant
909
2021
($)
(1,251,520)
9,635
(21,352)
37,500
(1,225,737)
(12,861)
(5,581,967)
(22,933)
-
Proceeds of Dividends
Proceeds from Sale of Tenements
Net cash (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from new issues of shares and Share Based Payments
Capital raising costs
Repayment of lease liabilities
Net cash provided by financing activities
16
16
Net (decrease)/increase in cash held
Cash and cash equivalents at the beginning of the financial
year
Cash and cash equivalents at the end of the financial
year
The accompanying notes form part of these financial statements.
6,312
-
(6,459,131)
6,312
500,000
(5,111,449)
2,684,181
(57,036)
0
2,627,145
(4,963,773)
6,993,608
9,787,649
(505,030)
(15,057)
9,267,562
2,930,376
4,063,232
8
2,029,835
6,993,608
Pg. 41
Financial Statements
Notes to the Financial Statements
For the year ended 30 June 2022
This financial report includes the financial statements and notes of the Company.
NOTE 1
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
The financial report is a general purpose financial report that has been prepared in accordance with Australian
Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian
Accounting Standards Board and the Corporations Act 2001.
The financial statements were authorised for issue on 29 September 2022
The following is a summary of the material accounting policies adopted by the Company in the preparation of the
financial report.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial
report containing relevant and reliable information about transactions, events and conditions. Compliance with
Australian Accounting Standards ensures that the financial statements and notes also comply with International
Financial Reporting Standards. Material accounting policies adopted in the preparation of this financial report are
presented below and have been consistently applied unless otherwise stated.
Reporting Basis and Conventions
The financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation
of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has
been applied.
Going Concern
The directors have prepared the financial statements of the Company on a going concern basis. In arriving at this
position, the directors have considered the following pertinent matters:
a) cash on hand at the date of this report is approximately $2.029 million.
b) current cash resources are considered adequate to fund the entity’s immediate operating and exploration activities
however given the state of the equity markets, the rate of expenditure on exploration as a whole has been reduced;
and
c)
the company’s ability to raise additional funds by the issue of additional shares or the sale of assets if a high level of
exploration activity is to be undertaken.
Accounting Policies
i.
Revenue
Interest revenue is recognised on a proportional basis taking into account interest rates applicable to the financial asset.
All revenue is stated net of the amount of goods and services tax (GST).
The Research and Development tax incentive income is recognised as income when it is determined that it is probable
that it will be received, and the amount can be estimated reliably. Within the income tax expense reconciliation, the
income is non-assessable and R&D expenditure non-deductible
ii.
Employee Benefits
Provision is made for the Company’s liability for employee benefits arising from services rendered by non-casual
employees to balance date. Employee benefits that are expected to be settled within one year have been measured at
the amounts expected to be paid when the liability is settled. There is no liability for long service leave entitlements.
iii.
Exploration and Evaluation Expenditure
All exploration and evaluation expenditure is expensed to Statement of Profit or Loss and Other Comprehensive Income
as incurred. The effect of this is to increase the loss incurred from continuing operations as disclosed in the Statement
of Profit or Loss and Other Comprehensive Income and to decrease the carrying values in the Statement of Financial
Position. The carrying value of mineral assets, as a result of the operation of this policy, is zero, but does not necessarily
reflect the board’s view as to the market value of that asset.
Pg. 42
iv.
Acquisition of Assets
Financial Statements
The cost method is used for all acquisitions of assets regardless of whether shares or other assets are acquired. Cost
is determined as the fair value of assets given up at the date of acquisition plus costs incidental to the acquisition.
Costs relating to the acquisition of new areas of interest are classified as either exploration and evaluation expenditure
or mine properties based on the stage of development reached at the date of acquisition.
v. Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST except where the GST incurred on a purchase
of goods and services is not recoverable from the taxation authority. In these circumstances, the GST is recognised as
part of the cost of acquisition of the asset or as part of the expense item as applicable. Receivables and payables in the
Statement of Financial Position are shown inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or
payables in the Statement of Financial Position.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing
and financing activities, which are disclosed as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation
authority.
vi.
Income Tax
The income tax expense for the year comprises current income tax expense and deferred tax expense.
Current income tax expense charged to the Statement of Profit and Loss and Other Comprehensive Income is the tax
payable on taxable income calculated using applicable income tax rates enacted, or substantially enacted, as at
reporting date. Current tax liabilities and assets are therefore measured at the amounts expected to be paid to or
recovered from the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the
year as well as unused tax losses, if any in fact are brought to account.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where
amounts have been fully expensed but future tax deductions are available. No deferred income tax will be recognised
Pg. 43
Financial Statements
from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on
accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset
is realised, or the liability is settled, based on tax rates enacted or substantively enacted at reporting date. Their
measurement also reflects the manner in which management expects to recover or settle the carrying amount of the
related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is
probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net
settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets
and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to
income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where
it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur
in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.
vii. Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, and other short-term highly liquid
investments with original maturities of three months or less.
viii.
Impairment of Assets
At each reporting date, the Company reviews the carrying values of its tangible and intangible assets to determine
whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable
amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the
asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the
Statement of Profit or Loss and Other Comprehensive Income. This policy has no application where paragraph (c)
(Exploration and Evaluation Expenditure) applies.
(i) Earnings per Share
(i) Basic Earnings per Share – Basic earnings per share is determined by dividing the loss from continuing operations
after related income tax expense by the weighted average number of ordinary shares outstanding during the financial
period.
(ii) Diluted Earnings per Share – Options that are considered to be dilutive are taken into consideration when calculating
the diluted earnings per share.
(j) Property, plant and equipment
Each class of plant, equipment and motor vehicles is carried at cost or fair value as indicated less, where applicable,
any accumulated depreciation and impairment losses.
Plant, equipment and motor vehicles are measured on the cost basis.
The carrying amounts of plant, equipment and motor vehicles are reviewed annually by directors to ensure it is not in
excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected
net cash flows that will be received from the asset’s employment and subsequent disposal. The expected net cash flows
have been discounted to their present values in determining recoverable amounts.
Depreciation
The depreciable amount of all plant, equipment and motor vehicles are depreciated on a straight-line basis over the
asset’s useful life to the Company commencing from the time the asset is held ready for use.
The depreciation rates used for the class of plant, equipment and motor vehicle depreciable assets range between 20%
and 100%.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each Statement of Financial
Position date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses
are included in the Statement of Profit and Loss and Other Comprehensive Income. When revalued assets are sold,
amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.
Pg. 44
(k) Financial Instruments
Financial instruments
Financial Statements
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity. The Company determines the classification of its financial instruments at initial recognition.
Financial assets
Financial assets are classified at initial recognition a (i) subsequently measured at amortised cost,(ii) fair value through
other comprehensive income (OCI) or (iii) fair value through profit or loss. The classification depends on the purpose for
which the financial assets were acquired.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designed
upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair
value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing
in the near term.
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net
changes in fair value recognised in the Income Statement within finance costs. Transaction costs arising on initial
recognition are expensed in the Income Statement.
Financial assets at fair value through other comprehensive income
The financial asset is held for both collecting contractual cash flows and selling the financial asset. Movements in the
carrying amount are taken through other comprehensive income and accumulated in the fair value reserve, except for
the recognition of impairment, interest income and foreign exchange difference which are recognised directly in profit or
loss. Interest income is calculated using the effective interest rate method.
The Company’s financial assets at fair value through other comprehensive income include it’s investment in listed
equities.
Financial assets at amortised cost
Financial asset at amortised costs are non-derivative financial assets with fixed or determinable payments that re not
quoted in an active market.
Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject
to impairment. Gain and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.
The Company’s financial assets at amortised cost include ‘trade and other receivables’ and “cash and equivalents’ in
the Balance Sheet.
Financial liabilities
Financial liabilities are classified at initial recognition as (i) financial liabilities at fair value through profit or, (ii) loans and
borrowings, (iii) payables or (iv) derivatives designated as hedging instruments, as appropriate. All financial liabilities
are recognised initially at fair value and, in the case of loans and borrowings and payables, net directly attributable
transaction costs. The Company’s financial liabilities include trade and other payables, loans and borrowings including
bank overdraft. These are subsequently measured at amortised cost using the effective interest method. Gain and
losses are recognised in the Income Statement when the liabilities are derecognised. Amortisation is included as finance
costs in the Income Statement.
Fair Value
Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to
determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar
instruments and option pricing models. The expression “fair value” – and derivatives thereof – wherever used in this
report bears the meaning ascribed to that expression by the Australian Accounting Standards Board.
Impairment of financial assets
The entity recognises a loss allowance for expected credit losses on financial assets which are either measured at
amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends
upon the consolidated entity's assessment at the end of each reporting period as to whether the financial instrument's
credit risk has increased significantly since initial recognition, based on reasonable and supportable information
that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month
expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses
Pg. 45
Financial Statements
that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become
credit impaired or where it is determined that credit risk has increased significantly, the loss allowance
is based on the asset's lifetime expected credit losses.The amount of expected credit loss recognised is
measured on the basis of the probability weighted present value of anticipated cash shortfalls over the
life of the instrument discounted at the original effective interest rate.
For financial assets mandatorily measured at fair value through other comprehensive income, the loss allowance
is recognised in other comprehensive income with a corresponding expense through profit or loss. In all
other cases,the loss allowance reduces the asset's carrying value with a corresponding expense through
profit or loss.
De-recognition
Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred
to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits
associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged,
cancelled or expired. The difference between the carrying value of the financial liability extinguished or transferred to
another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is
recognised in profit or loss.
(l) Provisions
Provisions are recognised when the Company has a legal or constructive obligation, as a result of past events, for which
it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.
(m) Leases
Lease payments for operating leases (where substantially all the risks and benefits remain with the lessor) are charged
as an expense in the periods in which they are incurred.
Lease incentives under operating leases, if any, are recognised as a liability and amortised on a straight-line basis over
the life of the lease term.
(n) Contributed Equity
Ordinary share capital is recognised at the fair value of the consideration received by the Company. Any transaction
costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of the share proceeds
received.
(o) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation
for the current financial period.
(p) Segment Reporting
Operating segments are reported in a manner that is consistent with the internal reporting to the chief operating decision
maker (“CODM”), which has been identified by the company as the Managing Director and other members of the Board
of directors.
(q) Critical Accounting Estimates, Assumptions, and Judgements
The directors evaluate estimates and judgements incorporated into the financial report based on historical knowledge
and best available current information. Estimates assume a reasonable expectation of future events and are based on
current trends and economic data obtained both externally and from within the Company.
Share based payments
The value of amounts recognised in respect of share based payments have been estimated based on the fair value of
the equity instruments granted including the vesting period. Fair value of the options issued are estimated by using an
appropriate option pricing model. If any of these assumptions or estimates were to change, this could have a significant
effect on the amount recognised.
Pg. 46
Taxation
Financial Statements
Balances disclosed in the financial statements and the notes thereto related to taxation are based on best estimates by
directors. These estimates take into account both the financial performance and position of the Company as they pertain
to current income tax legislation and the directors understanding thereof. No adjustment has been made for pending or
future taxation legislation. The current tax position represents the directors’ best estimate pending an assessment being
received from the Australian Taxation Office.
Environmental Issues
Balances disclosed in the financial statements and notes thereto are not adjusted for any pending or enacted
environmental legislation and the directors understanding thereof. At the current stage of the Company’s development
and its current environmental impact, the directors believe such treatment is reasonable and appropriate.
Impairment
The Company assesses impairment at each reporting date by evaluating conditions specific to the Company that may
lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined.
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may
have, on the consolidated entity based on known information. This consideration extends to the nature of the products
and services offered, customers, supply chain, staffing and geographic regions in which the consolidated entity operates.
Other than as addressed in specific notes, there does not currently appear to be either any significant impact upon the
financial statements or any significant uncertainties with respect to events or conditions which may impact the
consolidated entity unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19)
pandemic.
(r) Government grants
Government grants relating to costs are deferred and recognised in profit or loss over the period necessary to match
them with the costs that they are intended to compensate.
(s) New or amended Accounting Standards and Interpretations adopted
The entity has adopted all of the new or amended Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The following Accounting Standards and Interpretations are most relevant to the consolidated entity:
Conceptual Framework for Financial Reporting (Conceptual Framework)
The entity has adopted the revised Conceptual Framework from 1 July 2020. The Conceptual Framework contains
new definition and recognition criteria as well as new guidance on measurement that affects several Accounting
Standards, but it has not had a material impact on the entity's financial statements.
(t) Right of use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at
cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made
at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and,
except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and
removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated
useful life of the asset, whichever is the shorter. Where the entity expects to obtain ownership of the leased asset at the
end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or
adjusted for any remeasurement of lease liabilities.
The entity has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with
terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or
loss as incurred.
Pg. 47
(u) Lease liabilities
Financial Statements
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the
present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in
the lease or, if that rate cannot be readily determined, the consolidated entity's incremental borrowing rate. Lease
payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an
index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when
the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease
payments that do not depend on an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are
remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used;
residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is
remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of
the right-of-use asset is fully written down.
NOTE 2
OPERATING SEGMENTS
Segment Information
Identification of reportable segments
The Company has identified that it operates in only one segment based on the internal reports that are reviewed and
used by the board of directors (chief operating decision makers) in assessing performance and determining the
allocation of resources. The Company’s principal activity is mineral exploration.
Assets by geographical region
The Company’s assets are located wholly within Australia.
NOTE 3
REVENUE AND EXPENDITURE
2022
($)
2021
($)
Other Income
Sundry Income
Dividend Income
Government grants
Other Expenses
Occupancy costs
Filing and ASX fees
Other expenses from continuing operations
Exploration and Tenement Expenses
Exploration expenditure incurred
Acquisition of tenements
-
6,312
-
1,927
6,312
37,500
6,312
45,739
(43,035)
(86,224)
(411,886)
(541,145)
(6,272,745)
(124,957)
(6,397,702)
(26,200)
(75,027)
(508,359))
(609,586)
(5,564,044)
(22,933)
(5,586,977)
Pg. 48
NOTE 4
INCOME TAX EXPENSE
The components of tax expense comprise:
Current tax
Deferred tax asset/liability
Financial Statements
2021
($)
2022
($)
-
-
-
-
-
-
The prima facie tax on loss from ordinary activities before income tax is
reconciled to income tax as follows:
Total comprehensive loss for the year before income tax
Prima facie tax benefit attributable to loss from continuing operations
before income tax at 25%(26% 2021)
7,659,693
8,628,156
1,914,923
2,243,320
Tax effect of assessable and non-assessable items
• Unrealised gain on available for sale financial assets
0
• Government grants
0
0
• Share Based Payments
• Other
Deferred tax benefit on tax losses not brought to account
Income tax attributable to operating loss
(38,601)
(1,876,322)
-
(6,649)
(10,313)
(642,758)
48,019
(1,631,619))
-
Unrecognised temporary differences
Net deferred tax assets (calculated at 25%) have not been recognised in
respect of the following items:
Accrued expenses
Available-for-sale financial assets loss
Unrecognised deferred tax assets relating to the above temporary
differences
Unrecognised deferred tax assets
0
0
0
(2556)
6,649
4,093
The Company has accumulated tax losses of $39,340,193 (2021: $31,686,502)
The potential deferred tax asset of these losses $9,835,048 (2021: $7,921,626) will only be recognised if:
(i)
the Company derives future assessable income of a nature and of an amount sufficient to enable the benefit from
the losses and deductions to be released.
(ii)
the Company continues to comply with the conditions for deductibility imposed by the law; and
(iii) no changes in tax legislation adversely affect the Company in realising the benefit from the deductions for the
losses.
Pg. 49
Financial Statements
NOTE 5
KEY MANAGEMENT PERSONNEL COMPENSATION
Short-term employee benefits
Post-employment benefits
Share based payments
2022
($)
453,425
33,273
0
486,698
2021
($)
392,251
30,075
1,699,465
2,121,791
Further key management personnel remuneration information has been included in the Remuneration Report section of the
Directors Report.
Information on related party and entity transactions is disclosed in Note 21.
NOTE 6
AUDITORS REMUNERATION
Amounts received or due and receivable by the auditors of the Company for:
Auditing and reviewing the financial report
Other
2022
($)
2021
($)
22,000
-
22,000
30,214
-
30,214
NOTE 7
EARNINGS PER SHARE
The following reflects the earnings and share data used in the calculation of basic and
diluted earnings per share
Loss for the year
Earnings used in calculating basic and diluted earnings per share
Weighted average number of ordinary shares used in calculating basic and diluted
earnings per share
2022
($)
2021
($)
(7,808,096)
(7,808,096)
(8,603,978)
(8,603,978)
221,558,720
205,946,311
The Company had 20,418,862 partly-paid contributing shares and 4,900,000 options over fully paid ordinary shares on issue at
balance date. The 4,900,000 options were issued during the 2021 financial year. Options and contributing shares are
considered to be potential ordinary shares. However, they are not considered to be dilutive in this year and accordingly have
not been included in the determination of diluted earnings per share.
NOTE 8
CASH AND CASH EQUIVALENTS
Cash at bank
Deposits at call
NOTE 9
TRADE AND OTHER RECEIVABLES
Trade receivables
Other receivables
GST refundable
NOTE 10
OTHER ASSETS
Prepayments
2022
($)
2,005,009
24,826
2,029,835
2021
($)
6,968,782
24,825
6,993,607
2022
($)
0
3,256
184,018
187,274
2021
($)
158
26,010
160,021
186,189
2022
($)
67,432
2021
($)
66,384
Pg. 50
Financial Statements
NOTE 11
PROPERTY, PLANT, EQUIPMENT
Plant and equipment
Less: Accumulated depreciation
Motor vehicles
Less: Accumulated depreciation
Reconciliation of the carrying amounts of plant, equipment and motor
vehicles from the beginning to the end of the financial year.
Plant, equipment and motor vehicles
Carrying amount at beginning of year
Additions
Disposals
Depreciation expense
Total plant, equipment and motor vehicles at end of year
2022
($)
140,716
(116,550)
23,626
161,285
(138,401)
22,884
46,510
78,049
317
(1,062)
(30,794)
46,510
2021
($)
142,112
(110,068)
32,044
161,285
(115,280)
46,005
78,049
92,810
12,861
0
(27,623)
78,049
NOTE 12
OTHER FINANCIAL ASSETS
Non-Current
Financial assets at fair value through other comprehensive income – shares in
listed corporations
Opening Balance
Additions
Increase/ (Decrease) in Market Value
Closing Balance
The addition of $240,000 represents 2m Mt Malcolm shares purchased on
sale of Tenements
Investments in related parties
Financial assets at fair value through other comprehensive income includes
the following investments held in director-related party entities:
Image Resources NL
Meteoric Resources NL
2022
($)
2021
($)
223,475
131,878
131,878
107,700
240,000
-
(148,403)
223,475
24,178
131,878
58,385
2,200
60,585
55,229
10,200
65,429
Pg. 51
Financial Statements
NOTE 13 RIGHT-OF-USE ASSET
Cost
Accumulated depreciation
Carrying Value
Reconciliation
Recognised on 1 July 2019 on adoption of AASB16
Depreciation expense
Closing balance
NOTE 14
TRADE AND OTHER PAYABLES
Trade creditors and accruals
PAYG Withholding & Superannuation Payable
2022
($)
0
0
0
($)
0
0
-
2021
($)
14,088
(14,088)
0
Total
($)
14,088
(14,088)
0
2022
($)
350,818
21,358
372,176
2021
($)
312,380
20,425
332,805
NOTE 15 LEASE LIABILITIES
2022($) 2021($)
Current liabilities
Reconciliation
Recognised on 1 July 2019 on adoption of AASB16
Principal repayments
Closing balance
-
0
0
($)
0
0
0
Total
($)
14,709
(14,709)
0
AASB 16 has been adopted during the period, refer note 26 for details.
The Company leases its premises. The current lease term is 1 year.
Underlying assets serve as security for the related lease liabilities. A maturity analysis of future minimum lease payments is presented
below:
<1 year
$
1-2 years
$
2-3 years
$
3-4 years
$
4-5 years
$
>5 years
$
Total
$
Lease payments
Interest
Net present values
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Pg. 52
Financial Statements
NOTE 16
EQUITY
2022
2021
Contributed Equity – Ordinary Shares
No.
$
No.
$
At the beginning of year
Placement Of Shares at $1.42
Options Converted to shares at 37.7c
Options Converted to Shares at 21.8c
Transfer from Share Based Benefits Reserve
Placement of Shares at $1.38
Conv of 100,000 options at $0.218
Shares issued during the year at $1.42 each
Options exercised during the year at $0.218 on or
before 31 Dec 2021
Issue of shares on Option Conversion at $0.218
218,173,490
719,329
3,000,000
2,450,000
-
210,927,718
30,926,838
40,230,146
1,021,447
1,131,000
534,100
586,827
5,143,659
100,000
1,852,113
7,098,249
28,854
2,633,000
-
150,000
43,281
Broker / Share and Option issuance costs
Closing balance:
224,342,819
(57,035)
43,446,485
218,173,490
(500,076)
-
40,230,146
Contributed Equity – Contributing Shares –
Partly-paid
2022
2021
No.
20,418,862
-
20,418,862
$
-
-
No.
20,418,862
-
$
-
-
-
20,418,862
-
At the beginning of year
Shares issued during the year at $Nil
Closing balance:
Reserves
Share based benefits reserve (i)
2,571,878
2,921,073
The share based payments reserve is used to recognize the fair value of options issued to employees and advisors.
Pg. 53
Options
Options to acquire fully paid shares exercisable at $0.377 on or by 31
December 2021
Options to acquire fully paid shares exercisable at $0.218 on or by
31 December 2021
Options to acquire fully paid shares exercisable at $1.515 on or
before 31 December 2024
Total Options
Financial Statements
2022
0
0
4,900,000
4,900,000
2021
3,000,000
2,450,000
4,900,000
10,350,000
A reconciliation of the total options on issue as at 30 June is as follows:
At 1 July 2021
Options Converted During the year
Options Issued during the year
NOTE
10,350,000
(5,450,000)
2,921,073
(586,827)
0 0
At 30 June 2022 21
4,900,000
2,334,246
10,350,000
10,350,000
Terms and condition of contributed equity
Ordinary Fully Paid Shares
Ordinary shares have the right to receive dividends as declared and, in the event of winding up of the Company, to
participate in the proceeds from the sale of all surplus assets in proportion to the number of shares held, regardless of
the amount paid up thereon.
On a show of hands, every holder of fully paid ordinary shares present at a meeting in person or by proxy, is entitled to
one vote and upon a poll, each member present in person or by proxy or by attorney or duly authorised representative
shall have one vote for each fully paid ordinary share.
Contributing Shares
Contributing shares require a further payment of $0.20 to become fully paid.
On a show of hands, every holder of contributing shares present at a meeting in person or by proxy, is entitled to one
vote and upon a poll, each member present in person or by proxy or by attorney or duly authorised representative shall
have a fraction of a vote for each partly-paid contributing share held. The fraction must be equivalent to the proportion
which any amount paid (not credited) is of the total amounts paid (if any) and payable (excluding amounts credited).
Any amounts paid in advance of a call are ignored when calculating these fractional voting rights.
Pg. 54
Financial Statements
NOTE 17
CASH FLOW INFORMATION
Reconciliation of operating loss after income tax with funds used in operating
activities
Operating (loss) after income tax
Depreciation and amortisation
Sale of tenement
Exploration and Other expenditure
Share based payments
Other expenditure
Profit on sale of fixed assets
Interest accrual
Interest expense – right of use asset
Changes in operating assets and liabilities:
Decrease/(increase) in trade and other receivables relating to operating
activities
Decrease/(increase) in prepayments
Increase/(decrease) in trade and other payables relating to operating activities
Cash flow from operations
2022
($)
2021
($)
(7,659,693)
30,795
240,000
6,460,032
0
(242,629)
(8,603,977)
41,711
-
5,028,276
2,334,246
24,178
150
63
0
0
0
1,171
(1,047)
39,371
(1,131,787)
349
(55,629)
(8,662)
13,772
(1,225,736)
NOTE 18
TENEMENT EXPENDITURE COMMITMENTS
Pursuant to relevant legislation in Western Australia, mineral tenements are held subject to the condition that rate and
rentals are paid and prescribed expenditure conditions are met. Application for exemption from all or some of the
prescribed expenditure conditions may be made but no assurance is given that any such application will be granted. If
the prescribed expenditure conditions are not met with respect to a tenement, that tenement is liable to forfeiture. The
prescribed expenditure condition in respect of the granted tenements for the next twelve months amounts to $751,880
(2021 $899,620). The prescribed expenditure condition in respect of the pending tenements for the next twelve months
amounts to $28,000.
NOTE 19
TENEMENT ACCESS
Native Title and Freehold
All or some of the tenements in which the Company has an interest are or may be affected by native title.
The Company is not in a position to assess the likely effect of any native title impacting the Company.
The existence of native title and heritage issues represent, as a general proposition, a serious threat to explorers and
miners, not only in terms of delaying the grant of tenements and the progression of exploration development and mining
operations, but also in terms of costs arising consequent upon dealing with aboriginal interest groups, claims for native
title and the like.
As a general proposition, a tenement holder must obtain the consent of the owner of freehold before conducting
operations on the freehold land. Unless it already has secured such rights, there can be no assurance that the Company
will secure rights to access those portions (if any) of the Tenements encroaching freehold land but, importantly, native
title is extinguished by the grant of freehold so if and whenever the Tenements encroach freehold the Company is in the
position of not having to abide by the Native Title Act in respect of the area of encroachment albeit aboriginal heritage
matters still be of concern.
NOTE 20
EVENTS SUBSEQUENT TO REPORTING DATE
Subsequent to the year end, the Company announced a capital raising of $1.1m in July 2022 and $3.44m in
September 2022.
Pg. 55
Financial Statements
NOTE 21
During the 2022 year there were share based payments amounting to $237,632 issued to contractors in relation to the
payment of various invoices . The shares for share based payments of 167,340 were issued to the contractors in July 2022.
SHARE BASED PAYMENTS
In the 2021 financial year 4,900,000 options were granted to Key Management Personnel ("KMP"), employees and
contractors following approval at the AGM on 30 November 2020. The options were issued with an exercise price of
$1.515 and expiry of 31 December 2024. Options were issued for $0.001 per option, the options vested immediately and a
total of $2,334,246 was expensed.
The options in the 2021 financial year were issued to KMP, employees and contractors as follows:
Key Management Personnel:
George Sakalidis
Eric Lim
Julien Sanderson
Employees & contractors
Options
1,800,000
900,000
900,000
3,600,000
1,300,000
4,900,000
For the options granted, the valuation model inputs used to determine the fair value at the grant date, are as follows:
Grant date
Expiry date
Share price
at grant date
Exercise
price
Expected
volatility
Dividend
yield
Risk-free
interest rate
Fair value
at grant
date
30/11/2020
31/12/2024
$1.150
$1.515
64.36%
-
0.11%
$0.477
Total expense of the share based payments for the year was:
2022
2021
$
$
Total expense recognised as key management personnel expenses
Total expense recognised as contractors expenses
-
237,632
1,699,565
634,681
237,632 2,334,246
NOTE 22
RELATED ENTITY AND RELATED ENTITY TRANSACTIONS
Particulars of contractual arrangements and financial benefits provided to the key management personnel are detailed
in the directors’ report. There are no amounts owing to directors and/or director-related parties (including GST) at 30
June 2022 or 2021.
Transactions with directors, director-related parties and related entities other than those disclosed elsewhere in this
financial report are as follows:
Investments in related parties
Financial assets at fair value through other comprehensive income includes
the following investments held in director-related party entities:
Image Resources NL
Meteoric Resources NL
TOTAL
2022($)
2021($)
58,385
55,229
2,200 10,200
65,429
60,585
Pg. 56
Financial Statements
NOTE 23
CONTINGENT LIABILITIES/COMMITMENTS
Native Title
The Company’s activities may be subject to the Native Title Act and Aboriginal heritage legislation.
The Native Title Act recognises the title rights of indigenous Australians. State and Commonwealth native title legislation
regulates the recognition, application and protection of native title. Native title may affect the status, renewal and
conversion of existing tenements and the granting of new tenements. Indigenous land use agreements, including terms
of compensation, heritage survey and protection agreements or other agreement types may need to be negotiated with
affected parties.
The Native Title Act prescribes procedures applicable to the grant of tenements which may apply even in the case of,
for instance, a granted exploration licence being “converted” to, say, a mining lease. Compensation may become
payable in respect of any impact which the grant of any tenements or other activities have on native title. A tenement
holder may be liable for the payment of compensation for the affect of mining and exploration activities on any native
title rights and interests that exist in the area covered by a tenement. Compensation may be payable in forms other than
money, including the transfer of property and the provision of goods and services.
It is not currently possible to assess whether compensation will be payable by the Company to native title holders in
relation to any of the tenements but such compensation could be significant.
There may be sites and objects of significance to indigenous Australians located on the land relating to the Company’s
tenements. State and Commonwealth Aboriginal heritage legislation aims to preserve and protect these sites and
objects from use in a manner inconsistent with Aboriginal tradition. The Company proposes carrying out ‘clearance
surveys’ if it considers this to be appropriate before conducting any exploration work that would disturb the surface of
the land.
The Company’s tenements may contain some such sites or objects of significance, which would need to be avoided or
cause delays. It is possible that areas containing mineralisation or an economic resource may also contain sacred sites,
in which case exploitation thereof may be entirely frustrated. Access agreements will need to be negotiated with affected
parties.
Native title, Aboriginal heritage or other indigenous matters are matters of substantial risk (giving rise to the threat that
certain tenements may not be granted, access to certain tenements may be denied or delayed in addition to potentially
significant cost exposure in respect of things such as negotiations, surveys, incentive payments and compensation to
name but a few) as the legislative frame works provide torturous and frequently uncertain routes to the endeavour by
both stakeholders (that is explorers/miners and indigenous peoples) to attain certainty.
It is not possible to quantify the financial or other impact native title and Aboriginal heritage will have upon the Company
as, amongst other things, the processes involved with:
(a)
(b)
(c)
identifying all and only the indigenous peoples with a relevant interest;
registering an indigenous land use agreement;
obtaining access to land without infringing the provisions of the Aboriginal Heritage Act;
are open ended, can involve substantial delay and cost and there can be no certainty as to the outcome with it being
possible for projects to be entirely frustrated.
This could be the case, for instance, even in circumstances where:
(a)
(b)
a native title party consents to the grant of an exploration licence and assists the exploration endeavour
thereon (and the discovery of an otherwise economic deposit);
the Company, in order to exploit that discovery, applies for a mining lease (or other required approval,
consent, authority etc.) but such grant, approval, consent or authority is not forthcoming by reason of an
objection by the same or another native title party.
Pg. 57
Freehold Access
Financial Statements
The interests of holders of freehold land encroached by tenements are given special recognition by the Mining Act (WA).
As a general proposition, a tenement holder must obtain the consent of the owner of freehold before conducting
operations on the freehold land. There can be no assurance that the Company will secure rights to access those portions
of the tenements encroaching freehold land either at all or for all purposes but, importantly, the grant of freehold
extinguished native title so wherever the tenements encroach freehold the Company is in the position of not having to
abide by the Native Title Act albeit aboriginal heritage matters will still be a consideration
Tenements under option
The Company has an option to purchase E53/01978, P53/01627 and P53/01628 known as the Birthday Patch project.
Under the terms of the option agreement the company paid an option fee of $5,000 for an option till 31 August, during
which time it may purchase a 100% interest in the tenements for a consideration of $40,000.
Mt Malcom Mines NL Tenements
The Company entered into an agreement with Mt Malcolm Mines NL in relation to a number of tenements for an initial
1,000,000 shares and a deferred consideration Mt Malcolm Mines NL is required to issue 1,000,000 deferred shares to
Magnetic upon all of the prospecting licences to be vended to Mt Malcolm Mines NL that were due to expire on 20 August
2021 being extended on terms and conditions by 31 December 2021.
A number of tenements 15km east of Leonora have been sold to Mt Malcom Mines NL. The first tranche tenements include
P37/9204-7, P37/1331, P37/1367 and E37/1419 and have been sold in December 2021 for 1,000,000 Mt Malcom Mines
shares and a 2% gross royalty. The second tranche tenements include P37/8905-12 were sold in January 2022 for
1,000,000 shares and a 2% gross royalty.
NOTE 24
CONTINGENT ASSETS
Tenement Sales Agreement
The following relates to a contingent consideration in terms of the sale of tenements agreement for tenements (Jubuk
– E70/3536, Ragged Rock E70/4243, Kauring – E70/4508, Kauring – E70/4528, Mt Joy – E70/4692) sold in July 2017:
(i)
(ii)
(iii)
(iv)
(a)
(b)
(c)
(d)
If the Development Conditions are satisfied on or before the third anniversary of the Effective Date (the
“Effective Date” being 14 July 2017), the Purchaser must make a payment of $1,000,000 to an account
nominated by the Vendor (Milestone Payment).
The Milestone Payment is conditional on the following conditions precedent being satisfied or waived before
the third anniversary of the Effective Date:
a minimum of a 100,000,000 tonne JORC 2012 compliant iron ore inferred resource being certified by a
competent person as existing within any of the Tenements or the area of Mutual Interest (AM1), in any
number of deposits in any one or more of the Tenements or the AM1 provided that in aggregate the total
resources is equal to or greater than 100,000,000 tonnes of iron ore;
the Purchaser receiving all approvals, consents and authorities required under the Mining Act to commence
mining of at least 2,000,000 tonnes per annum on any one or more of the Tenements or within the AM 1;
the Purchaser receiving all approvals, consents and authorities required under all Environmental Laws to
commence mining and development on any one or more of the Tenements or the AM1; and
the Purchaser receiving all other statutory approvals, consents and authorities required to commence
mining and development on any one or more of the Tenements or the AM together, the Development
Conditions).
The Purchaser will give the Vendor written notice of the satisfaction of the Development Conditions within
14 days of the satisfaction of the last Development Condition (Development Notice) and make the payment
into an account nominated by the Vendor within 14 days of the Development Notice.
In its absolute discretion, the Purchaser may waive the requirement for the satisfaction of the Development
Conditions in writing and make the Milestone Payment at any time on or before the third anniversary of the
Effective Date.
Pg. 58
Development Delay Payments
Financial Statements
(a)
If the Purchaser has not issued a Development Notice:
(i) by the third anniversary of the Effective Date and provided that:
(A)
(B)
the condition in clause (b) is satisfied; and
the Purchaser has not exercised its rights under clause (c)
the Purchaser will pay the Vendor a payment of $500,000 into an account nominated by the Vendor
within 30 days of the third anniversary of the Effective Date (14 July 2020); ( We confirm that this
now been paid ) . and
(ii)
by the sixth anniversary of the Effective Date and provided that the purchaser has not exercised its rights
under clause 4(d), the Purchaser will pay the Vendor a payment of $500,000 into an account nominated
by the Vendor within 30 days of the sixth anniversary of the Effective Date (14 July 2023), (together, the
Development Delay Payments). For the avoidance of doubt, if the Purchaser makes the first
Development Delay Payment, the Milestone Payment will not be payable by the Purchaser.
(b)
The obligation to make the First Development Delay Payment is contingent upon a minimum amount being
spent on the Tenements by the Purchaser being equal to the total of the:
(i)
minimum statutory expenditure under the Mining Act;
(ii)
rates and rents; and
(iii)
any fees associated with the Option and any access fees payable to landowners;
calculated from the Completion Date to the third anniversary of the Completion Date.
(c)
At any time before the third anniversary of the Completion Date, the Purchaser, in its sole discretion, may
hand back the Tenements by:
(i) subject to the receipt of all relevant consents and approvals under the Mining Act, including the consent of
the Minister, transferring its interest in the Tenements and the AMI (or any successor tenements)
to the Vendors for nil consideration; and
(ii) procuring that all security granted over the Tenements by the Purchaser is released.
(d)
At any time between the third and sixth year anniversary of the Completion Date, the Purchaser, in its sole
discretion, may hand back the Tenements by:
(i) subject to the receipt of all relevant consents and approvals under the Mining Act, including the consent of
the Minister, transferring its interest in the Tenements (or any successor tenements) to the Vendors
for nil consideration; and
(ii) procuring that all security granted over the Tenements by the Purchaser is released.
(e)
If the Purchaser exercises its right to hand back the Tenement to the Vendor:
(i) under clause (c), the Purchaser will not be required to make the Development Delay Payments.
(ii) under clause (d), the Purchaser will not be required to make the Second Development Delay Payment.
(f)
(g)
If the Purchaser exercises its rights under clauses (c) or 4(d) of this Agreement, both parties agree to do
all things necessary or convenient to procure that the Tenements (or any successor tenements) are
transferred to the Vendor as expeditiously as possible.
In the event that the Purchaser does not pay either of the Development Delay Payments when they are
due and payable, the Development Delay Payments will be a debt due and payable by the Purchaser under
this Agreement.
Pg. 59
Financial Statements
NOTE 25
FINANCIAL INSTRUMENTS DISCLOSURE
(a) Financial Risk Management Policies
The Company’s financial instruments consist of deposits with banks, receivables, available-for-sale financial assets and
payables.
Risk management policies are approved and reviewed by the board. The use of hedging derivative instruments is not
contemplated at this stage of the Company’s development.
Specific Financial Risk Exposure and Management
The main risks the Company is exposed to through its financial instruments, are interest rate and liquidity risks.
Interest Rate Risk
Exposure to interest rate risk arises on financial assets and financial liabilities recognised at reporting date whereby a
future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments.
Liquidity Risk
The Company manages liquidity risk by monitoring forecast cash flows, cash reserves, liquid investments, receivables
and payables.
Capital Risk
The Company’s objectives when managing capital are to safeguard their ability to continue as a going concern so that
they may continue to provide returns for shareholders and benefits for other stakeholders.
Due to the nature of the Company’s activities being mineral exploration, the Company does not have ready access to credit
facilities, with the primary source of funding being equity raisings. Therefore, the focus of the Company’s capital risk
management is the current working capital position against the requirements of the Company to meet exploration
programmes and corporate overheads. The Company’s strategy is to ensure appropriate liquidity is maintained to meet
anticipated operating requirements, with a view to initiating appropriate capital raising as required.
The working capital position of the Company at 30 June 2022 and 30 June 2021 was as follows:
Cash and cash equivalents
Trade and other receivables
Trade and other payables
Working capital position
Credit Risk
2022
($)
2,029,835
187,274
(372,176)
1,844,933
2021
($)
6,993,607
186,189
(332,805)
6,846,991
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to
recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed
in the Statement of Financial Position and notes to the financial statements.
There is no material amounts of collateral held as security at balance date.
The following table provides information regarding the credit risk relating to cash and cash equivalents based on credit
ratings:
AAA rated
AA rated
A rated
2022
($)
-
-
2,029,835
2021
($)
-
-
6,993,607
The credit risk for counterparties included in trade and other receivables at balance date is detailed below.
Trade and other receivables
Trade and other receivables
GST and tax refundable
2022
($)
3,256
184,018
187,274
2021
($)
158
186,031
186,189
Pg. 60
(b)
(c) Financial Instruments
Financial Statements
The Company holds no derivative instruments, forward exchange contracts or interest rate swaps.
Financial Instrument composition and maturity analysis
The table below reflects the undiscounted contractual settlement terms for financial instruments.
2022
Financial Assets
Cash and cash equivalents
Other receivables
Available-for sale financial assets
Total Financial Assets
Financial Liabilities
Trade and other payables
Net Financial Assets
Weighted
Average
Effective
Interest Rate %
0.012%
Floating
Interest Rate
($)
Non-Interest
Bearing
($)
2,029,835
-
-
2,029,835
-
187,274
223,475
410,749
Total
($)
2,029,835
187,274
223,475
2,440,584
-
2,029,835
(372,176)
5,686
(372,176)
2,068,408
Trade and other payables are expected to be paid as follows:
Less than 6 months
2022 ($)
(372,176)
(372,186)
Pg. 61
2021
Financial Assets
Cash and cash equivalents
Other receivables
Available-for sale financial assets
Total Financial Assets
Financial Liabilities
Trade and other payables (excluding GST refund)
Net Financial Assets
Weighted
Average
Effective
Interest Rate %
1.528%
Financial Statements
Floating
Interest Rate
($)
Non-Interest
Bearing
($)
6,993,607
-
-
6,993,607
-
186,189
138,878
325,067
Total
($)
6,993,607
186,189
138,878
7,318,674
-
6,993,607
(332,805)
(7,738)
(332,805)
6,985,869
Trade and other payables are expected to be paid as follows:
Less than 6 months
2021($)
(332,805)
(332,805)
Financial Instruments Measured at Fair Value
The financial instruments recognised at fair value in the statement of financial position have been analysed and classified
using a fair value hierarchy reflecting the significance of the inputs used in making the measurements. The fair value
hierarchy consists of the following levels:
Quoted prices in active markets for identical assets or liabilities (Level 1);
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as
prices) or indirectly (derived from prices) (Level 2); and
Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).
2022
Financial Assets:
Financial assets at fair value through profit or loss:
Available-for-sale financial assets:
Listed investments
2021
Financial Assets:
Financial assets at fair value through profit or loss:
Available-for-sale financial assets:
Listed investments
Level 1
$
Level 2
$
Level 3
$
Total
$
223,475
223,475
Level 1
$
Level 2
$
131,878
131,878
-
-
-
-
Level 3
$
-
-
-
-
223,475
223,475
Total
$
131,878
131,878
(d) Sensitivity Analysis – Interest rate risk
The Company has performed a sensitivity analysis relating to its exposure to interest rate risk at balance date. The
sensitivity analysis demonstrates the effect on the current year results and equity which could result from a change in
this risk.
As at balance date, the effect on loss and equity as a result of changes in the interest rate, with all other variables
remaining constant would be as follows:
Change in loss – increase/(decrease):
Increase in interest rate by 0.1%
Decrease in interest rate by 0.1%
Change in equity – increase/(decrease):
Increase in interest rate by 0.1%
Decrease in interest rate by 0.1%
2022
($)
(2,029)
2,029
(2,029)
2,029
2021
($)
(6,993)
6,993
(6,993)
6,993
Pg. 62
Financial Statements
NOTE 26
NEW STANDARDS ADOPTED
AASB 16 Leases
The Company adopted AASB 16 for the year ended 30th June 2020.
Where leases have a term of less than 12 months or relate to low value assets, the Company has applied the optional
exemptions to not capitalise these leases and instead account for the lease expense on a straight-line basis over the
lease term.
In summary please note that for the year ending 30th June 2022 the company has a one year lease effective from 27 March
2022 with an option to extend for a further 2 years commencing on 27 March 2023. As there is no clear
certainty that the company will extend the lease beyond 27 March 2023 , the directors have elected for the year ended 30
June 2022 to apply for the optional exemption in relation to AASB 16 and not capitalise the lease instead the lease
payments are expensed on a straight line basis over the lease term.
Pg. 63
Financial Statements
Directors’ Declaration
The directors of the Company declare that:
1)
the accompanying financial statements and notes are in accordance with the Corporations Act 2001 and:
a) comply with Australian Accounting Standards and the Corporations Act 2001;
b) give a true and fair view of the financial position as at 30 June 2022 and performance for the year ended on
that date of the Company; and
c)
the audited remuneration disclosures set out in the Remuneration Report section of the Directors’ Report for
the year ended 30 June 2022 complies with section 300A of the Corporations Act 2001;
2)
the Chief Financial Officer has declared pursuant to section 295A(2) of the Corporations Act 2001 that:
a)
the financial records of the company for the financial year have been properly maintained in accordance with
section 286 of the Corporations Act 2001;
b)
the financial statements and the notes for the financial year comply with Australian Accounting Standards; and
c)
the financial statements and notes for the financial year give a true and fair view;
3)
4)
in the directors’ opinion, 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 included in the notes to the financial statements an explicit and unreserved statement of
compliance with International Financial Reporting Standards.
This declaration is made in accordance with a resolution of the Board of Directors.
SIGNED: GEORGE SAKALIDIS
MANAGING DIRECTOR
PERTH
Dated 30 September 2022
Pg. 64
Financial Statements
Independent Audit Report to the members of Magnetic Resources NL
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Magnetic Resources NL (the Company), which comprises the statement of financial
position as at 30 June 2022, the statement of profit or loss and other comprehensive income, the statement of changes in equity
and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant
accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Company's financial position as at 30 June 2022 and of its financial performance for the
year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further
described as in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of
the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical
requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional
Accountants (the code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of
the Company, would be in the same terms if given to the directors as at the time of this auditor's report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Pg. 65
K
Expenditure
Financial Statements
Refer to total expenditure ($7,878,563), accounting policy note 1(iii), and note 3 (other
expenses)
Key Audit Matter
How our audit addressed the matter
Expenditure is a substantial figure in
the
financial statements of
the
Company, representing the majority of
shareholder funds spent during the
financial year.
Given
this represents a significant
volume of transactions, we considered
it necessary to assess whether the
Company’s expenses had been
accurately
the
services provided had been delivered
in the appropriate period, and whether
all expenses
to activities
related
undertaken by Magnetic Resources
NL.
recorded, whether
Going Concern
Refer to Going Concern note 1
Our audit work included, but was not restricted to, the
following:
• We completed a walkthrough
the
Company’s expenses system and assessed
related controls.
test of
• We selected a sample of expenses using
systematic sampling methods, and vouched
each
invoices and other
to
item selected
supporting documentation.
• We reviewed post-year end payments and
invoices to ensure that all goods and services
provided during
financial year were
recognised in expenses for the same period.
the
• For exploration expenses, we assessed which
tenements the spending related to, to ensure
the
in
funds were expended
Company’s ongoing projects.
relation
to
Key Audit Matter
How our audit addressed the matter
The
financial statements have been
prepared on a going concern basis as
discussed in note 1.
In assessing the appropriateness of the going concern
assumption used in preparing the financial statements, our
procedures included, amongst others:
Historically, the company has been loss
making, and has raised capital to fund the
expenditures.
• Assessing
the cash
the
company over 12 months from 30 September 2022
based on budgets and forecasts.
flow requirements of
Accumulated
statement of
$43.7m as at 30 June 2022.
losses
financial position
shown
in
the
totalled
committed and what
discretionary.
could be
• Understanding what
forecast expenditure
is
considered
• Considering the liquidity of existing assets on the
statement of financial position.
• Considering potential downside scenarios and the
resultant impact on available funds.
We included the going concern assumption
as a key audit matter as it relies on existing
cash reserves and raising of additional
funds by the issue of additional shares to
meets its expenditure requirements, further
the company will rely on the sale of assets
if a high level of exploration activity is to be
undertaken in future.
Pg. 66
Financial Statements
Other Information
The directors are responsible for the other information. The other information obtained at the date of this auditor's report is
included in the annual report, but does not include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise
appears to be materially misstated.
If, based on the work we have performed on the other information obtained prior to the date of this auditor's report, we conclude
that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in
this regard
Responsibilities of Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors
determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors
either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is
a high level of assurance but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will
always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of the financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the directors.
Pg. 67
Financial Statements
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the
financial report represents the underlying transactions and events in a manner that achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the
financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
We have audited the Remuneration Report included in pages 17 to 22 of the directors’ report for the year ended 30 June 2022.
The directors of the Magnetic Resources NL are responsible for the preparation and presentation of the Remuneration Report in
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration
Report, based on our audit in accordance with Australian Auditing Standards.
Opinion
In our opinion, the Remuneration Report of Magnetic Resources NL for the year ended 30 June 2022 complies with section
300A of the Corporations Act 2001.
Elderton Audit Pty Ltd
Rafay Nabeel
Audit Director
30 September 2022
Pg. 68
Financial Statements
Other Information
Location
WA
WA
TenementId
M38/1041
E70/3536
Status
LIVE
LIVE
Project
NICHOLSON WELL JV
JUBUK
Equity % Held
Royalty Retained
100%
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
E70/4243
E70/4508
P39/5455
E37/1177
P38/4126
E70/4692
P38/4170
E38/3100
P39/5594
P39/5595
P39/5596
P39/5597
E37/1258
P37/8687
P37/8688
P37/8689
P37/8690
P37/8691
P37/8692
P37/8693
P37/8694
P39/5617
E38/3127
P38/4317
P38/4318
P38/4319
P38/4320
P38/4321
P38/4322
P38/4323
P38/4324
E38/3205
P38/4346
E38/3209
P38/4379
P38/4380
P38/4381
P38/4382
P38/4383
P38/4384
E37/1303
P37/8905
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
RAGGED ROCK
KAURING
HOMEWARD BOUND SOUTH
MERTONDALE EAST
HAWKS NEST
MT JOY
DEFIANT BORE
MT JUMBO
KOWTAH
KOWTAH
KOWTAH
KOWTAH
MERTONDALE
CHRISTMAS WELL
CHRISTMAS WELL
CHRISTMAS WELL
CHRISTMAS WELL
CHRISTMAS WELL
CHRISTMAS WELL
CHRISTMAS WELL
CHRISTMAS WELL
KOWTAH EAST
HAWKS NEST
MT JUMBO EAST
MT JUMBO EAST
MT JUMBO EAST
MT JUMBO EAST
MT JUMBO EAST
MT JUMBO EAST
MT JUMBO EAST
MT JUMBO EAST
HAWKS NEST EAST
LADY JULIE
MT AJAX
LADY JULIE
LADY JULIE
LADY JULIE
LADY JULIE
LADY JULIE
LADY JULIE
NAMBI
RAESIDE EAST
Royalty Retained
Royalty Retained
Royalty Retained
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Royalty Retained
Pg. 69
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
P37/8906
P37/8907
P37/8908
P37/8909
P37/8910
P37/8911
P37/8912
E37/1331
P37/9144
P39/5928
P39/5929
P39/5931
P39/5932
P39/5933
P39/5934
P37/9204
P37/9205
P37/9206
P37/9207
E37/1367
E39/2125
E70/5276
E70/5277
P39/6134
P39/6135
P39/6136
P39/6137
P39/6138
P39/6139
P39/6140
P39/6141
P39/6142
P39/6143
P39/6144
P39/6175
P39/6195
P39/6196
P39/6197
P39/6198
E70/5534
E70/5537
E70/5538
P39/6218
E37/1419
E70/5771
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
RAESIDE EAST
RAESIDE EAST
RAESIDE EAST
BRAISER
BRAISER
BRAISER
BRAISER
MALCOLM
HOMEWARD BOUND 1
HOMEWARD BOUND 2
HOMEWARD BOUND 3
HOMEWARD BOUND 4
HOMEWARD BOUND 5
HOMEWARD BOUND 6
HOMEWARD BOUND 7
MALCOLM 1
MALCOLM 2
MALCOLM 3
MALCOLM 4
MELITA
LITTLE WELL
KAURING
KAURING
LITTLE WELL
LITTLE WELL
LITTLE WELL
LITTLE WELL
LITTLE WELL
LITTLE WELL
LITTLE WELL
LITTLE WELL
LITTLE WELL
LITTLE WELL
LITTLE WELL
HOMEWARD BOUND 8
MINARA
MINARA
MINARA
MINARA
TRAYNING
BENJABERRING
GODDARD
MINARA
MALCOLM 5
AVON
Financial Statements
Royalty Retained
Royalty Retained
Royalty Retained
Royalty Retained
Royalty Retained
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Pg. 70
Financial Statements
The following information was applicable as at 25 September 2022
Share and Partly Paid Share holdings
Category (Size of
Holding)
Shares held
Holders
of Fully
Paid
Ordinary
Shares
Holders of
partly-paid
contributing
shares
Partly-Paid
Contributing
Shares
Holders options Options
1 to 1,000
670
240,293
1,051
440,910
1,001 to 5,000
418
1,054,733
480
1,043,641
5,001 to 10,000
135
1,108,243
10,001 to 100,000
259
9,453,452
100,001 and over
119
216,610,776
69
65
16
495,211
2,307,647
16,131,453
-
-
-
1
8
-
-
-
100,000
4,800,000
Total
4,900,000
The number of shareholdings with less than marketable parcels is 548 shareholders holding 137,742 fully paid ordinary shares and
785 shareholders holding 223,478 partly paid contributing shares. There are no listed options.
228,467,497
20,418,862
1,601
1,681
9
Pg. 71
Financial Statements
Substantial shareholders :
Shareholder Name
OAN CHIM SENG
CHAN HIAN SIANG
DALE ALCOCK / TARGET RANGE
LIM CHOON KONG
Total
Number of Shares
% of Issued Share Capital
34,354,762
29,064,538
24,516,008
15,076,083
103,011,391
15.04%
12.72%
10.73%
6.59%
45.08%
Twenty largest shareholders – Quoted fully paid ordinary shares:
Position
1
2
3
4
5
Holder Name
MR CHIM SENG OAN
MR HIAN SIANG CHAN
TARGET RANGE PTY LTD
MR CHOON KONG LIM
BNP PARIBAS NOMS PTY LTD
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