Annual Report
FINANCIAL YEAR
ENDED 30 JUNE 2023
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
18
30
Corporate Governance Statement
31
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
42
43
44
45
46
66
67
71
Pg. 1
Corporate Directory
Corporate Directory
DIRECTORS
ERIC LIM (B.Com)
Non-Executive Chairman
GEORGE SAKALIDIS (B.SC (Hons))
Managing Director
BEN DONOVAN (B.Com (Hons), ACG(CS))
Non-Executive Director
HIAN SIANG CHAN (B.Art, MBA)
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 32, 152 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 of September 2023)
236,954,035 fully paid ordinary shares.
FOR SHAREHOLDER INFORMATION CONTACT
20,418,862 partly paid shares ($0.20 unpaid).
SHARE REGISTRY
Security Transfer Registrars Pty Ltd
770 Canning Highway, Applecross WA 6153
Telephone (08) 9315 2333
Facsimile (08) 9315 2233
4,900,000 options to acquire fully paid shares
exercisable at $1.515 on or by 31 December 2024
3,750,000 options to acquire fully paid shares
exercisable at $1.20 on or before 6 December
2025.
2,216,502 options to acquire fully paid shares
exercisable at $0.68 on or before 10 May 2025.
Pg. 2
Financial Statements
Review of Operations
Projects Summary: Gold
Laverton Area
Magnetic Resources NL has 179km2 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, P38/4170 Lady Julie (Figure 1). In the Laverton Project an extensive
drilling programmes have been completed with 1,898 RC/DD holes for 147,943m with further deeper drilling
now planned.
Figure 1. Hawks Nest, Hawks Nest East, Lady Julie, Little Well, Mt Ajax, Mt Jumbo and Mt Jumbo East projects,
showing tenements, major shear zones, targets and gold deposits and historic workings.
Lady Julie area (P38/4346, P38/4379–4384, E38/3127, P38/4170)
Assay results from the Lady Julie North4 deposit are outstanding in terms of grade and thickness
with ongoing robust intersections that show up an ever enlarging downdip extent. There are multiple
very thick intersections (Table 1) which often contain silica-pyrite and breccia zones that are up to
50m thick, are mainly in the 250m long central zone, which are still open to the east and northeast
(Figures 2-4). Recent drilling further north within MLJRC804 has a significant mineralised zone,
which is also open to the east (Fig 4). Some of these outstanding intersections in the 250m zone
include 120m at 2.68g/t from 152m in MLJRC789, 111m at 1.76g/t from 173m in MLJRC779, 96m
at 1.23g/t from 145m in MLJRC670, 96m at 1.23g/t from 54m in MLJRC679, 45m at 2.65g/t from
130m in MLJDD015, 52m at 1.14g/t from 208m in MLJRC790 , 56m at 1.37g/t from 192m in
MLJRC801, 50.3m at 2.49g/t in MLJDD017, 30m at 5.53g/t from 145m in MLJDD016 and 68m at
Financial Statements
Pg. 3
1.61g/t from 196m in MLJRC802 (Figures 2-4). Many of these intersections are outside the current
resource and it augers well for the next resource upgrade. Three diamond holes totaling 1390m and
six RC holes for 2555m are being currently drilled mainly aiming to extend this very promising 250m
zone further to the east and northeast, with hole depths ranging from 300m to 550m depth.
Table 1. Highlights of the drilling at Lady Julie North 4
Hole No.
Easting
Northing
From
To
Width
Gold
MGAz51
MGAz51
metres metres metres
g/t
Lady Julie North 4
MLJDD015
MLJDD016
MLJRC805
MLJRC804
MLJRC802
MLJRC801
MLJRC789
MLJRC783
MLJRC779
MLJRC690
MLJRC735
MLJRC738
MLJRC736
MLJRC741
MLJRC755
MLJRC757
MLJRC761
MLJRC763
MLJRC769
MLJRC770
LWE03
LWE04
Lady Julie Central
MLJRC693
MLJRC731
MLJRC732
MLJRC733
MLJDD02
432405
432487
432570
432495
432580
432560
432500
432360
432455
432315
432435
432383
432465
432330
432397
432380
432409
432398
432456
432463
432437
432432
431792
431862
431897
431864
431812
6826340
6826310
and
6826760
6826610
6826380
6826260
6826380
including
6826225
6826345
and
6826409
6826284
6826338
6826284
6826435
6826635
6826685
6826733
6826795
6826435
6826532
6826392
6826617
6823898
6823840
6823861
6823881
6823878
130
54.9
145
216
208
196
192
91
192
101
173
67
33
56
96
80
37
106
70
85
40
140
155
156
166
21
64
36
32
29
175
63.0
175
236
276
264
247
229
229
151
284
89
76
126
156
140
68
115
84
96
66
164
173
198
200
47
88
108
88
49
45
8.1
30
20
68
68
55
138
37
50
111
22
43
70
60
60
31
9
14
11
26
24
18
42
34
26
24
72
52
20
2.65
3.77
5.53
3.44
1.43
1.61
1.46
2.25
6.50
1.99
1.76
5.39
1.18
1.05
3.57
1.76
1.36
3.73
2.85
3.73
1.90
2.89
2.81
4.62
1.95
2.37
3.55
1.54
1.49
4.26
Sample
Type
1m diamond core^
1m diamond core^
1m diamond core^
4m composites^
4m composites*^
4m composites*^
1m splits*^
1m splits^
1m splits^
1m splits^
1m splits*^
1m splits^
1m splits
4m composites*^
4m composites*^
4m composites*^
1m splits
1m splits^
1m splits^
1m splits
1m splits^
4m composites
1m splits
1m splits*
1m splits*
1m splits
4m composites
4m composites
4m composites
1m diamond core
Pg. 4
Financial Statements
Figure 2. Composite cross section for LJN4 centre area showing thickened high-grade dipping gold zone containing breccia and
silica-pyrite alteration, upper mineralised zone, older resource model outline and potential depth extensions at depth,
downdip and to the east.
Pg. 5
Financial Statements
Figure 3. Cross section for LJN4 centre area showing thickened high-grade dipping gold zone older resource model outline
and potential depth extensions at depth, downdip and to the east.
Pg. 6
Financial Statements
Figure 4. The Lady Julie North 4 deposit has numerous significant thick intersections from the latest drill programmes
(yellow is the latest drill programme) and previous drilling (white label) with maximum gold projected to surface.
Pg. 7
Financial Statements
The follow up deeper RC/diamond holes tested and are looking to extend two and in some cases three
stacked lodes found in the central, southern and northern parts of LJN4 and many of these are outside the
resource and have potential for the enlargement of the Lady Julie North 4 Resource (Indicated and Inferred)
of 3.2Mt at 1.93g/t for 204,900oz at a 0.5g/t cutoff (Figure 1). This forms part of the Lady Julie Combined
Resources (Indicated and Inferred) of 5.89Mt at 1.68g/t for 317,900oz at a 0.5g/t cutoff (Table 2).
The updated combined (Indicated and Inferred) Mineral Resources estimate for the whole project area (Table
3) were announced recently on 3 February 2023, “Expands Mineral Resources Estimate” and include:
13.5Mt @ 1.40g/t Au totaling 605,000oz of gold at 0.5g/t cutoff.
This represents an increase of 18% of the total ounces over the 27 June 2022 ASX Release Maiden
Alteration Styles Lady Julie North 4
Recent diamond drilling at LJN4 has revealed three distinct types of mineralisation:
• Vuggy silica and/or silica-pyrite mineralisation: this intense alteration destroys the nature of the
protolith and comprises a porous network of silica veins and masses, with or without disseminated
pyrite, in a clayey, sandy matrix.
• Polymictic breccia: a mixed breccia of chert, felsic porphyry, and ironstone (possibly after pyrite),
sometimes with quartz or silica clasts, in a siliceous or ferruginous matrix. Pyrite content is highly
variable ranging up to semi-massive to massive in places.
• Silicified ultramafic: the footwall ultramafic sequence at LJN4 is mineralised in pale, bleached and
silicified zones showing intense deformation (informally termed “visceral” texture) with or without
quartz stockwork veining and with minor disseminated pyrite.
Photos of the mineralisation types are shown below and some examples of both breccia alteration and silica
pyrite alteration in the MLJDD015 core trays with an overlayed gold content for each interval of core
measured. The gold mineralisation strongly correlates with the intense alteration and appears to occur in a
series of moderately east-dipping (40-45°) zones ranging from a few metres up to 52 metres in true width.
Sometimes these zones appear to coalesce to form broader mineralised zones.
The silica-pyrite and breccia mineralisation occur in an interdigitated sequence of massive chert and
carbonate intruded by felsic porphyries. This sequence also dips moderately to the east. Strong thick breccia
zones are also present within the Sunrise Dam Deposit owned by Anglo Ashanti where the breccia lodes
carry significant higher- grade mineralisation are associated with a number of internal deposits. In most
cases they are near vertical and link the sub horizontal major shear zones and can also be subparallel to the
major mineralised shear zones near surface. The silicified ultramafic mineralisation occurs in an ultramafic
unit in the footwall of the chert-carbonate sequence.
Pg. 8
Financial Statements
MLJDD020_178.0m_Polymictic Breccia with silica-pyrite clast
MLJDD018_77.5m_Polymictic Breccia
Pg. 9
Financial Statements
MLJDD018_164.5m_Massive pyrite in Breccia
MLJDD018_198.0m Vuggy Silica Alteration
MLJDD019_148.4m_visceral texture in bleached, silicified ultramafic.
Pg. 10
Financial Statements
The Lady Julie North 4 deposit is only 2.5km North of the Lady Julie Central deposit which in turn is 2.5km
NE of the HN9 deposit (Figure 5). These three areas are all shallow deposits and, in some cases, starting
from surface providing low strip ratios and potential for economic ore that is open-cuttable and are
effectively part of one mining centre.
Pg. 11
Financial Statements
Gold mineralisation at LJN4 is hosted in a sequence of ultramafics, massive carbonate (marble) and chert
intruded by felsic porphyries. This sequence is cut by a major N-S braided shear complex known as the
Chatterbox Shear Zone (CSZ) which is known to host significant mineralisation to the north. Petrological
studies are in progress to determine if the carbonate and chert units are in fact forms of intense carbonate
and silica alteration associated with the CSZ.
The Chatterbox shear zone is a complex N to NNE-trending, east-dipping structural corridor which can be
traced for some 22km extending from Magnetic Resources’ southern boundary at Mt Jumbo and through
Lady Julie North 4 and as far north as the Beasley Creek gold deposit on Magnetic’s NE boundary (Figure
6). Within Magnetic’s tenements the shear zone can be traced for a distance of 12km (Figure 5). The
shear zone is interpreted to comprise a series of braided faults and shears within a corridor ranging from
100m to 250m wide and is interpreted to have formed as a reverse fault on the limb of the regional
Margaret Anticline during the latter stages of its folding.
Importantly, this shear zone is closely associated with, gold mineralisation at several locations along its
length including Magnetic’s LJN4 and Mt Jumbo deposit. This shear is gold rich and gold deposits further
north of Magnetics tenements contains the Beasley Creek and Apollo deposits and is interpreted to extend
south towards the world class Wallaby deposit. It is evident in aeromagnetic imagery and in gravity images
(Figure 6).
Pg. 12
Financial Statements
Figure 5. Gold intersection overview covering the Lady Julie North4, Lady Julie Central, Lady Julie WMC, HN9 and Mt Jumbo
Projects showing some highlighted intersections (white label), significant historical and Magnetic intercepts (maximum Au
projected to surface), planned holes in yellow and highlighted Chatterbox shear extending south from the Lady Julie North 4
Deposit.
Pg. 13
Financial Statements
Figure 6. The Lady Julie North 4 Deposit within the Chatterbox Interpreted Shear shown on a gravity image with
other major gold deposits located along it.
Table 2. Total Mineral Resource by Deposit at 0.5 g/t Au Cutoff.
Pg. 14
Financial Statements
Deposit
HN9
Lady Julie
HN3
HN5
Mt Jumbo
Homeward Bound
South
HN9
Lady Julie
HN3
HN5
Mt Jumbo
Homeward Bound
South
HN9
Lady Julie
HN3
HN5
Mt Jumbo
Homeward Bound
South
Classification
Indicated
Indicated
Indicated
Indicated
Indicated
Au
Cutoff
0.50
0.50
0.50
0.50
0.50
Volume
792,000 1,995,000
765,000 1,986,000
357,000
139,000
8,400
3,800
429,000
168,000
Tonnes Density Au Ounces
82,800
97,100
8,300
430
14,500
2.52
2.60
2.58
2.23
2.55
1.29
1.52
0.72
1.59
1.05
Indicated
0.50
0
0
0.00
0.00
0
Inferred
Inferred
Inferred
Inferred
Inferred
0.50
0.50
0.50
0.50
0.50
460,000 1,182,000
1,484,000 3,894,000
243,000
43,700
736,000 1,887,000
95,000
17,900
2.57
2.62
2.57
2.44
2.57
1.25
1.76
0.85
0.76
1.16
47,600
220,800
6,600
1,060
70,500
Inferred
0.50
563,000 1,442,000
2.56
1.20
55,600
Total
Total
Total
Total
Total
Total
0.50
0.50
0.50
0.50
0.50
1,252,000 3,176,000
2,249,000 5,887,000
600,000
52,100
904,000 2,316,000
233,000
21,600
2.54
2.61
2.57
2.41
2.56
1.28
1.68
0.77
0.89
1.14
130,000
317,900
15,000
1,500
85,000
0.50
563,000 1,442,000
2.56
1.20
56,000
“Source table from MAU ASX release “Expands Mineral Resources Estimate 3 February 2023.”
Table 3. Total Mineral Resource at 0.5 g/t Au Cutoff
Classification
Au Cutoff
Volume
Tonnes
Density
Indicated
Inferred
Total
0.50
0.50
0.50
1,870,000
4,775,000
3,256,000
8,692,000
5,226,000
13,467,000
2.55
2.59
2.58
Au
1.32
1.44
1.40
Ounces
203,100
402,160
605,260
“Source table from MAU ASX release “Expands Mineral Resources Estimate 3 February 2023.” The Company’s current resources are
stated above and the Company confirms that there is no new information or data that materially affects the mineral resource
estimate as previously announced and that all assumptions underpinning the estimate continue to apply and have not materially
changed.
Within the HN5, HN6, HN9 and Lady Julie areas there are many new shallow intersections (Figures
1-3 and Table 5) with a total of 2,459 intersections (ranging from 1 to 44m) greater than 0.5g/t Au,
which includes 1160 greater than 1g/t Au, 444 greater than 2g/t Au, 231 greater than 3g/t Au and
142 greater than 4g/t Au.
At Hawks Nest 5, 6, 9 and Lady Julie extensive drilling programmes have been completed. (Tables 5 and
Appendix), including 1,876 RC/RCD holes totaling 144,841m (average 77m depth), 36,325 1–5m composites
and 24,895 1m splits, 302 AC holes totaling 12,125m, 3,049 2-6m composites and 294 1m splits and 22
Financial Statements
Pg. 15
Diamond holes totaling 3,102m including the Geotech programme comprising 10 RC drillholes totalling 670m
and 8 diamond holes totalling 776m and Hydrology programme comprising 6 RC drillholes totalling 874m.
The nearby Sunrise Dam, Wallaby and Jupiter Gold Deposits have persistent internal shallow-
dipping mineralised lodes that are often called shear zones or thrust zones, which are ubiquitous
throughout these deposits and have been defined down to 1500m depth at the Wallaby deposit. At
Sunrise Dam there are breccia zones which are associated with the deeper vertical deposits and
also some of the shallower dipping deposits near surface. In addition, many discoveries in recent
times have been made by drilling below 100m because the historical drilling was far too shallow. At
HN5, 6, 9 and Lady Julie the average hole depth is only 78m providing tremendous scope for
upside potential.
Managing Director George Sakalidis commented: “With the Australian gold price at record levels of
$2958 the Laverton Project Resources encompassing Lady Julie Central, Lady Julie North 4, HN9,
Mt Jumbo and Homeward Bound South, are shaping up and have potential for large-scale shallow
open-cuttable deposits and now after our recent drilling with strong depth potential greater than
200m depth at LJN4 (ASX releases 7/08/23, 31/07/23, 14/08/23, 22/08/23, 8/09/2023 and
26/09/2023).
We see up to three stacked zones within the centre and the southern end of LJN4 and our new
drilling completed within the central part of the 800m long LJN4 deposit has been infill drilled and
extended with outstanding results of 68m at 1.61g/t from 196m in MLJRC802 below 138m at
2.25g/t from 91m in MLJRC789 and 68m at 1.43g/t below 34m at 1.95g/t from 166m in LWE04,
111m at 1.76g/t from 173m and 22m at 5.39g/t from 67m in MLJRC779 , 80m at 1.24g/t from
192m in MLJRC801 and 68m at 1.61g/t from 196m in MLJRC802 and a new thickened zone to
the north with an intersection of 68m at 1.43g/t from 208m in MLJRC804.
This central 250m long zone is very promising due to the excellent grades and thicknesses found
here and the strong correlation with breccia and silica-pyrite zones, which are also prevalent in the
world class Sunrise Dam deposit, which has both parallel to near surface shear zones and vertical
going downwards into a number of their individual deposits. These zones containing MLJRC789,
MLJRC779 and MLJRC679 are now being extended by new drilling at depth and further to the east
and northeast (Figure 4). This provides strong potential to grow the LJN4 resource. A 1,390m
diamond and a 2555m RC programme has started and will be scoping out extensions both to the
east and northeast with holes planned between 400m to 550m depth holes.
The 4.5km southern extension of LJN4 along the Chatterbox shear remains as a high priority target
due to its gold rich deposit inventory and the new discovery of deep breccia and alteration zones at
LJN4, which have not been targeted previously.
This is an exciting time for the company having announced its Expanded Mineral Resource on 3
February 2023 and now looking to further increase the size the LJN4 Resource by recent drill
testing the thickened high-grade breccia zone and continuation at depth and to the east.
Concurrently, the Blue Cap studies are near completion, which provides the company with the
ability to fast-track work approvals and further assess the economics of the deposits. Continuing
with global investment bank Jefferies, who are helping ongoing review opportunities to maximise
shareholder value.”
Pg. 16
Financial Statements
Table 4. Planned/in-progress Drilling at Lady Julie North 4
Hole_ID
Easting Northing Depth
Dip
Azimuth
MGAz51 MGAz51 metres degrees degrees
Hole
Type
Tenement Project
MLJRCD679
MLJRCD773
MLJRCD784
MLJRCD788
MLJRCD793
MLJDD032
MLJDD033
MLJDD034
MLJDD035
432511 6826310
240
432600 6826611
300
432530 6826310
360
432480 6826220
300
432500 6826345
432723 6826442
432908 6826500
432689 6826498
432690 6826345
300
400
550
400
400
-60
-60
-90
-90
-90
-60
-60
-60
-60
270
270
0
0
0
270
270
243
270
P38/4170
P38/4170
P38/4170
DDH
Tail
DDH
Tail
DDH
Tail
DDH
Tail
DDH
Tail
DDH P38/4170
DDH P38/4170
DDH P38/4170
DDH P38/4170
P38/4170
P38/4170
LJN4
LJN4
LJN4
LJN4
LJN4
LJN4
LJN4
LJN4
LJN4
4 DDH for 1,750m & 5 DDH tails for 756m
Nickel-Cu-PGE and REE Projects
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.
The western tenements Benjaberring and Goddard are prospective for nickel, PGE elements, Cu and Au
(Figure 7). The eastern tenements are prospective for REE after shallow, thick, strong REE intersections
were made within the Trayning project (Figure 7). Access to various targets throughout the six tenements
is ongoing and currently there are four access agreements over parts of the Trayning, Benjaberring and
Goddard projects.
Pg. 17
Financial Statements
Figure 7. Coverage of Magnetics six projects NE of Julimar overlayed on the regional aeromagnetics
Other Projects
The Company actively reviews other projects and tenements for acquisition and development
within the Leonora–Laverton region.
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.
Iron Ore
The Company has an agreement signed with Northam Iron Pty Ltd (now Northam Resources Pty
Ltd regarding the sale of the Company’s iron ore assets, with the agreement providing for 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
Pg. 18
Financial Statements
Directors Report
Your directors present their report on the Company for the year ended 30 June 2023
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
• Hian Siang Chan
• Benjamin Donovan
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 $7,135,716 (2022: $7,659,693).
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 3.13 cents (2022: 3.52 cents). Diluted Loss per
share in respect of both years ended 30 June 2023 and 30 June 2022 was the same as the Basic
Loss per share.
Financial Position
The Company’s cash position as at 30 June 2023 was $4,102,162 an increase from the 30 June
2022 cash balance which was $2,029,835. 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 in September 2023 that it has
received binding commitments for approximately $4.8 million (before costs) via a placement
of approximately 6.66 million New Shares at an issue price of $0.72 per share.
Pg. 19
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 (Non-Executive Chairman)
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 9,790,206 ordinary fully paid shares and 1,650,000 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 (Managing Director)
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. 20
Financial Statements
Mr Sakalidis has a relevant interest in 8,052,892 ordinary fully paid shares, 3,135,714 contributing
shares and 3,300,000 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 (Non-Executive Director)
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 29,608,982 ordinary fully paid shares and 750,000 options to
acquire fully paid ordinary 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 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 19,047 ordinary fully paid shares, 60,000 contributing shares.
and 1,350,000 options.
Pg. 21
Audit Committee
Financial Statements
The Company adopted a formal Audit charter last year. The Board acted as the constituted Audit
Committee and the following 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
2
2
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 2023, the following director meetings were held:
George Sakalidis
Eric Lim
Benjamin Donovan
Hian Siang Chan
Eligible to
Attend
5
5
5
5
Attended
5
5
5
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:
Pg. 22
Financial Statements
• 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.
Non-Executive Directors
• 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.
Pg. 23
Financial Statements
Use of Remuneration Consultants
The Company did not employ the services of any remuneration consultant during the financial year
ended 30 June 2023.
Key Management Personnel Remuneration for 30 June 2023
Key
Management
Personnel
Short-
term
benefits
Fees &
contract
ual
payment
s
($)
Employ
ment
Benefits
($)
Post-
employm
ent
benefits
Statutory
superann
uation
($)
Cash
settled
share
based
payment
s.
($)
Equity settled
Share Based
Payments
($)
Total
($)
Eric Lim
52,900
-
-
George Sakalidis
323,064
173,850
35,431
Benjamin Donovan
24,000
2,520
-
-
-
150,917
203,817
301,832
834,177
150,917
177,437
Hian Siang Chan
52,900
-
-
150,917
203,817
Julian Sanderson
-
220
220
Total
452,864
173,850
38,171 -
754,583
1,419,468
Key Management Personnel Remuneration for 30 June 2022
Key Management
Personnel
Short-term
benefits
Fees &
contractual
payments
($)
Post-employment
benefits
Statutory
superannuation
($)
Cash
settled
share
based
payments
($)
Equity settled
Share Based
Payments
($)
Total
($)
Eric Lim
52,900
-
George Sakalidis
301,950
28,685
Benjamin Donovan
6,000
Hian Siang Chan
52,900
Julien Sanderson
Total
39,675
453,425
400
-
4,188
33,273
-
-
-
-
-
-
52,900
330,635
6,400
52,900
48,633
486,698
-
-
-
-
-
Pg. 24
Financial Statements
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.
Employment Details of Members of Key Management Personnel
Key
Management
Personnel
Position held as at
30 June 2023 and
any changes
during the year
Contract details
Continuation
and Termination
Proportion of 2022 / 2023
Remuneration related to
performance (other than
options issued)
Shares / units
Non-cash
salary-
based
incentives
Proportion of
2021/ 2022
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
terminate
to
No fixed term
-
-
-
-
-
-
No fixed term
-
-
100%
100%
100%
100%
The employment terms and conditions of all KMP are formalized 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 20):
Pg. 25
Options held by Key Management Personnel:
Financial Statements
30 June 2023:
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
900,000 6/12/2022
750,000 150,917
George
Sakalidis
Benjamin
Donovan
Hian Siang
Chan
1,800,000
6/12/2022
1,500,000 301.833
600,000
6/12/2022
750,000
150,917
-
6/12/2022
750,000 150,917
Total
3,300,000
-
3,750,000
754,583
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,650,000
-
3,300,000
-
-
-
1,350,000
750,000
7,050,000
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 2023:
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
9,491,794
7,899,336
3,135,714
60,000
29,064,538
46,455,668
3,195,714
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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
298,412
9,790,206
153,556
8,052,892
3,135,714
19,047
-
544,444
1,015,459
-
-
19,047
60,000
29,608,982
-
47,471,127
3,195,714
Consultant Agreements
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
Financial Statements
Pg. 26
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.
On May 2021 ,Mr Lim and Mr Chan have entered into a director’s contract where they are paid
$52,900 per annum.
Guaranteed Rate Increases
There are no guaranteed rate increases fixed in the contracts of any of the key management
personnel.
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
9,790,206
8,052,892
19,047
29,608,982
47,471,127
-
3,135,714
60,000
-
3,195,714
1,650,000
3,300,000
1,350,000
750,000
7,050,000
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.
Employees
At 30 June 2023, 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
Pg. 27
June 2022.
Corporate Structure
Financial Statements
Magnetic is a no liability company incorporated and domiciled in Australia.
Risk Management
Risk management is a complex and critical component of the company’s governance. The Board
oversees and guides the Company’s risk management framework and the company secretary is
charged with implementing appropriate risk systems with the company. The Board is supported in its
oversight of risk by the Audit and Risk Management Committee. Magnetics’ risk management
policy is reviewed and endorsed annually by the Board in line with ASX Corporate Governance
Principles and Recommendations.
Magnetic’s identified material risks and mitigating actions are summarized in the table below:
Material Risks
Mitigating Actions
Inability to access adequate
funding
• Maintaining relationships with existing and potential
investors/shareholders.
Major safety incident
Processing technology
impacts economic viability
forfeiture of key
Loss or
tenement
s
Major compliance breach
Material cultural heritage
breach
Loss of key personnel
• Continuing to educate the market and investors on Podium,
platinum group metals and its link with decarbonization.
• Preserving cash where possible.
• Appropriate safety standards, policies and procedures in place further
supported by Podium’s Health, Safety and Environment System.
• Appropriate inductions and communication of safety standards and
monitoring of compliance.
• Engagement of mineral processing experts and advisors.
• Technical panel overview and support.
• Employing and retaining experienced technical people.
• Actively managing deliverables and milestones.
• Maintaining a compliance register and system to meet key tenement.
conditions.
• Maintaining a register and system to meet key compliance items.
• Appropriate internal financial controls.
• Appropriate policies communicated to employees including code of
conduct, corporate governance, anti-bribery and corruption and whistle
blower policies.
• Company values and culture.
• Maintaining communications and relationships with traditional owners
and community.
• Undertake cultural heritage surveys to obtain clearance and
understand areas of significance.
• Multi-level engagement with key partners, suppliers and shareholders.
• Central access to data, information and reports.
Pg. 28
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
$27,114 (2022: $26,800) 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 6 December
2024
• 3,750,000 options to acquire fully paid shares exercisable at $1.20 on or by 6 December
2025
• 2,216,502 options to acquire fully paid shares exercisable at $0.68 on or by 10 May 2025
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.
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. 29
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
MANAGING
DIRECTOR
Perth
29 September 2023
Pg. 31
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. 32
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 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 coordinating of all board matters, committee
meetings and advice.
Recommendation 1.5: A listed entity should:
Pg. 33
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. 34
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
An independent Director is defined as a Non-Executive Director and.
Independent
Yes
No
Yes
No
Appointed
23/8/2011
29/1/2016
28/03/2022
23/2/2020
•
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 and 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 Donovan 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 keyboard 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
out below.
Pg. 35
Financial Statements
Group's Materiality Thresholds
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 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 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. 36
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 consider 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, honest, 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. 37
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 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. 38
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 Managing 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. 39
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 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 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. 40
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. the current board members The Board considers the remuneration
committee is sufficient given the size of the Board and Mr. Lim and Mr. Donovan 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. 41
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 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. 42
Financial Statements
Financial Statement
Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 June 2023
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
3
12
3
11
5
3
5/20
3
4
12
7
7
2023
($)
2022
($)
31
0
0
0
480
(27,713)
(668,575)
(4,487,737)
(260,508)
(754,583)
(937,112)
(7,135,716)
-
(7,135,716)
2.446
240,000
0
909
6,312
(30,797)
(486,698)
(6,397,702)
(215,386)
(237,632)
(541,145)
(7,659,693)
-
(7,659,693)
(54,656)
(148,403)
(7,190,372)
(7,808,096)
(7,190,372)
(7,808,096)
(3.13)
(3.13)
(3.52)
(3.44)
`
Pg. 43
Financial Statements
Statement of Financial Position
As at 30 June 2023
Current Assets
Cash and cash equivalents
Trade and other receivables
Other assets
Total Current Assets
Non-Current Assets
Property, plant and equipment
Other financial assets
Total Non-Current Assets
TOTAL ASSETS
Current Liabilities
Trade and other payables
Leave liabilities
Total Current Liabilities
TOTAL LIABILITIES
NET ASSETS
Equity
Contributed equity
Reserves
Accumulated (losses)
AFSA Reserve
TOTAL EQUITY
Notes
8
9
10
11
12
13
15
14
14
2023
($)
4,102,162
179,667
20,123
2022
($)
2,029,835
187,274
67,432
4,301,952
2,284,541
19,833
168,819
46,510
223,475
188,652
269,985
4,490,604
2,554,526
565,948
220,847
786,795
786,795
372,176
-
372,176
372,176
3,703,809
2,182,350
51,391,366
3,338,829
(50,907,672)
(118,714)
3,703,809
43,446,485
2,571,878
(43,771,955)
(64,058)
2,182,350
The accompanying notes form part of these financial statements.
`
Pg. 44
Financial Statements
Statement of Changes in Equity
For the Year ended 30 June 2023
Note
Contribut
ed
Equity
(Net of
Costs)
($)
Share
Base
Payment
Reserve
($)
AAIS
Reserve
FVOCI
Reserv
($)
Accumulated
Losses
($)
Total
($)
Balance at 1 July 2022
43,446,485
2,571,878
(64,058)
-
(43,771,956) 2,182,350
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
Shares to be Issued
Capital raising costs
Share based payment
Total transactions with
owners and other
transfers
-
-
-
-
-
-
-
(54,656)
(54,656)
-
-
(7,135,716) (7,135,716)
(54,656)
(7,135,716) (7,190,372)
14
14
14
14
8,316,080
(237,632)
-
(371,199)
-
-
-
754,583
-
-
250,000
-
-
7,944,881
516,951
250,000
-
-
-
8,078,448
250,000
(371,199)
754,583
8,711,826
Balance at 30 June 2023
51,391,366
3,088,829
(118,714)
250,000 (50,907,672) 3,703,809
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
-
-
-
-
-
-
-
(148,403)
(148,403)
(7,659,693)
(7,659,693)
-
(148,403)
(7,659,693)
(7,808,096)
Shares issued during the year
1114
1,021,448
237,632
Options converted to shares
Capital raising costs
Share based payments
Total transactions with
owners and other transfers
14
14
14
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. 45
Financial Statements
Statement of Cash Flows
For the Year ended 30 June 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Cash payments to suppliers and contractors
Interest received
Sundry Income
Government grants received
Net cash (used in) operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of plant and equipment
Payments for exploration and evaluation
Notes
2023
($)
2022
($)
(1,325,293)
(1)
(2,766)
16
(1,328,060)
(1,132,035)
2,383
(2,135)
0
(1,131,787)
-
(4,552,878)
(317)
(6,341,078)
Purchase of new tenements
Proceeds from disposal of Plant
(124,957)
909
-
-
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
14
14
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.
-
-
(4,552,878)
6,312
-
(6,459,131)
8,328,449
(371,203)
(3,981)
7,953,265
2,684,181
(57,036)
0
2,627,145
2,072,327
2,029,835
(4,963,773)
6,993,608
8
4,102,162
2,029,835
`
Pg. 46
Financial Statements
Notes to the Financial Statements
For the year ended 30 June 2023
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 2023
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 $4,102 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 assets.
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. 47
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 recognized 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 recognized 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 recognized.
`
Pg. 48
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 a 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. 49
(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 its 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 recognized 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 amortized cost using the effective interest
method. Gain and losses are recognized in the Income Statement when the liabilities are derecognized. Amortization
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.
`
Pg. 50
Financial Statements
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
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 recognized 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 amortized 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 recognized 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 recognized.
`
Pg. 51
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 director’s 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 unfavorably 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 company 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.
(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. 52
(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
measured 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
2023
($)
2022
($)
Other Income
Sundry Income
Dividend Income
Government grants
Other Expenses
Occupancy costs
Filing and ASX fees
Other expenses from continuing operations
Exploration and Tenement Expenses
Exploration expenditure incurred
Acquisition of tenements
511
-
-
-
6,312
-
511
6,312
(51,563)
(109778)
(775,770)
(937,111)
(4,487,737)
-
(4,487,737)
(43,035)
(86,224)
(411,886)
(541,145)
(6,272,745)
(124,957)
(6,397,702)
`
Pg. 53
Financial Statements
NOTE 4
INCOME TAX EXPENSE
The components of tax expense comprise:
Current tax
Deferred tax asset/liability
The prima facie tax on loss from ordinary activities before income tax is
reconciled to income tax as follows:
Total comprehensive loss for the year before income tax
Prima facie tax benefit attributable to loss from continuing operations
before income tax at 25% (25% 2022)
• Other
Deferred tax benefit on tax losses not brought to account
Income tax attributable to operating loss
Unrecognised temporary differences
Net deferred tax assets (calculated at 25%) have not been recognised in
respect of the following items:
Accrued expenses
Available-for-sale financial assets loss
Unrecognised deferred tax assets relating to the above temporary
differences
Unrecognised deferred tax assets
2023
($)
-
-
-
2022
($)
-
-
-
7,135,716
7,659,693
1,783,929
1,914,923
0
(1,783,929)
-
(38,601)
(1,876,322
-
0
(2556)
6,649
0
4,093
The Company has accumulated tax losses of $45,444,086 (2022: $39,340,194)
The potential deferred tax asset of these losses $11,361,021 (2022: $9,835,048) will only be recognised if:
(i)
the Company derives future assessable income of a nature and of an amount sufficient to enable the
benefit from the losses and deductions to be released.
(ii)
the Company continues to comply with the conditions for deductibility imposed by the law; and
(iii) no changes in tax legislation adversely affect the Company in realising the benefit from the deductions for
the losses.
`
Pg. 54
Financial Statements
NOTE 5 KEY MANAGEMENT PERSONNEL COMPENSATION
2023
($)
456,544
38,171
2022
($)
453,425
33,273
Short-term employee benefits
Post-employment benefits
Employment
Provisions
173,850
Share Based Payments
754,583
-
Further key management personnel remuneration information has been included in the Remuneration Report section of the Directors Report.
Information on related party and entity transactions is disclosed in Note 21.
1,423,158
486,698
NOTE 6
AUDITORS REMUNERATION
Amounts received or due and receivable by the auditors of the Company for:
Auditing and reviewing the financial report
Other
2023
($)
2022
($)
28,155
-
28,155
22,000
-
22,000
NOTE 7
EARNINGS PER SHARE
The following reflects the earnings and share data used in the calculation of basic and
diluted earnings per share
Loss for the year
weighted average number of ordinary shares used in calculating basic and diluted
earnings per share
2023
($)
2022
($)
(7,135,716)
229,325,275
(7,808,096)
221,558,720
The Company had 20,418,862 partly paid contributing shares and 10,866,502 options over fully paid ordinary shares on
issue at balance date. Options and contributing shares are considered to be potential ordinary shares. However, they are
not considered to be dilutive this year and accordingly have not been included in the determination of diluted earnings per
share.
NOTE 8
CASH AND CASH EQUIVALENTS
Cash at bank
Deposits at call
NOTE 9
TRADE AND OTHER RECEIVABLES
Other receivables
GST refundable
NOTE 10
OTHER ASSETS
Prepayments
2023
($)
4,077,336
24,826
4,102,162
2023
($)
6,532
173,135
179,667
2023
($)
20,123
2022
($)
2,005,009
24,826
2,029,835
2022
($)
3,256
184,018
187,274
2022
($)
67,432
`
Pg. 55
NOTE 11
PROPERTIES, PLANT, EQUIPMENT
Plant and equipment
Less: Accumulated depreciation
Motor vehicles
Less: Accumulated depreciation
Financial Statements
2022
($)
140,176
(116,550)
23,626
141,211
(121,378)
19,833
2023
($)
161,285
(161,285)
0
19,833
161,285
(138,401)
22,884
46,510
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
46,510
1,036
-
(27,713)
19,833
78,049
317
(1,062)
(30,794)
46,510
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 $240,000 represents 2m Mt Malcolm shares purchased on
sale of Tenements
Investments in related parties
Financial assets at fair value through other comprehensive income includes
the following investments held in director-related party entities:
Image Resources NL
Meteoric Resources NL
NOTE 13
TRADE AND OTHER PAYABLES
Trade creditors and accruals
PAYG Withholding & Superannuation Payable
2023
($)
168,819
223,475
0
(54,656)
168,819
2022
($)
223,475
131,878
240,000
(148,403)
223,475
27,456
41,000
68,456
58,385
2,200
60,585
2023
($)
540,828
25,120
565,948
2022
($)
350,818
21,358
372,176
`
Pg. 56
Financial Statements
NOTE 14
EQUITY
2023
2022
Contributed Equity – Ordinary Shares
No.
$
No.
$
At the beginning of year
Placement Of Shares at $1.42
Placement of Shares at $1.05
Placement of Shares at $0.90
Transfer from Share Based Benefits Reserve
Placement of Shares at $0.92 for Drilling Services
Placement of Shares at $1.05 and $0.90 to the
Directors
Placement of Shares at $0.45 each
Placement of Shares at $0.56, $0.50,$0.49 and $0.52
for Drilling Services
224,342,819
167,340
800,285
3,157,053
6,649,506
792,148
43,446,485
237,623
840,299
2,841,348
125,839 115,771
864,998
2,992,277
423,763
919,045
218,173,490
719,329
3,000,000
2,450,000
40,230,146
1,021,447
1,131,000
534,100
586,827
-
-
-
Broker / Share and Option issuance costs
Closing balance:
(371,202)
236,954,035 51,391,367
224,342,819
-
(57,035)
43,446,485
Contributed Equity – Contributing Shares –
Partly-paid
2023
2022
At the beginning of year
Shares issued during the year at $Nil
No.
20,418,862
-
$
-
-
No.
20,418,862
-
$
-
-
Closing balance:
20,418,862
-
20,418,862
-
Reserves
Share based benefits reserve (i)
3,088,829
2,571,878
The share-based payments reserve is used to recognize the fair value of options issued to employees and advisors.
Advanced Against Issuance of Shares ( AAIS)
In May 2023 there was $3,242,278 received by the company as part of a placement . Of this amount $2,992,278
shares were issued to various shareholders . The Balance of $250,000 the shares are to be issued at the AGM in
November 2023.
`
Pg. 57
Options
Financial Statements
2023
2022
Options to acquire fully paid shares exercisable at $1.515 on or before
31 December 2024.
4,900,000
4,900,000
Options to acquire fully paid shares exercisable at $1.20 on or by 6
December 2025( Refer to note 20)
Options to acquire fully paid shares exercisable at $1.515 on or by
10 May 2025
3,750,000
0
0
2,216,502
0
Total Options
10,866,502
4,900,000
A reconciliation of the total options on issue as at 30 June is as follows:
At 1 July 2022
Options Converted During the year
NOTE
4,900,000
0
4,900,000
0
Options Issued during the year.
5,966,502
0
At 30 June 2023
10,866,502
4,900,000
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 authorized representative
shall have one vote for each fully paid ordinary share.
Contributing Shares
Contributing shares require a further payment of $0.20 to become fully paid.
On a show of hands, every holder of contributing shares present at a meeting in person or by proxy, is entitled to one
vote and upon a poll, each member present in person or by proxy or by attorney or duly authorised representative shall
have a fraction of a vote for each partly paid contributing share held. The fraction must be equivalent to the proportion
which any amount paid (not credited) is of the total amounts paid (if any) and payable (excluding amounts credited).
Any amounts paid in advance of a call are ignored when calculating these fractional voting rights
NOTE 15 Employee Benefits
Provision is made for the Company’s Liability for employee benefits arising from services rendered to employees to
balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts
expected to be paid when the liability is settled.
`
Pg. 58
NOTE 16
CASH FLOW INFORMATION
Reconciliation of operating loss after income tax with funds used in operating
activities
Operating (loss) after income tax
Depreciation and amortization
Sale of tenement
Exploration and Other expenditure
Other expenditure
Profit on sale of fixed assets
Interest accrual
Interest expense – right of use asset
Financial Statements
2023
($)
2022
($)
(7,190,372)
27,713
0
5,869,499
(283,584)
(7,659,693)
30,795
240,000
6,460,032
(242,629)
150
32
0
63
0
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
7637
1,171
47,307
(1,047)
193,771 39,371
(1,328,060)
(1,131,787)
NOTE 17
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 $689,449
(2022 $751,880) .The prescribed expenditure condition in respect of the pending tenements for the next twelve months
amount to $ Nil.
NOTE 18
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 19
EVENTS SUBSEQUENT TO REPORTING DATE
Subsequent to the year end, the Company announced in September 2023 that it has received binding commitments for
approximately $4.8 million (before costs) via a placement of approximately 6.66 million New Shares at an issue price of $0.72
per share.
`
Pg. 59
NOTE 20
SHARE BASED PAYMENTS
Financial Statements
In the 2023 financial year 3,750,000 options were granted to Key Management Personnel (“KMP”), employees and
contractors following approval at the AGM on 30 November 2022. The options were issues with an exercise price of $1.20
and expiry of 6 December 2025.The options vested immediately and a total of $754,583 was expensed.
The options in the 2023 financial year were issued to KMP, employees and contractors as follows:
Key Management Personnel:
George Sakalidis
Eric Lim
Hiam Cham
Ben Donovan
TOTAL
Options
1,500,000
750,000
750,000
750,000
3,750,000
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
6/12/2022
06/12/2025
$0.80
$1.20
52.1%
-
3.091%
$0.20
Total expense of the share based payments for the year was:
Total expense recognized as key management personnel expenses
Total expense recognized as contractors’ expenses
2023
2022
$
$
754,583
539,537
0
237,632
1,294,120
237,632
NOTE 21 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 2023 or 2022.
Transactions with directors, director-related parties and related entities other than those disclosed elsewhere in this
financial report are as follows:
2023($)
2022($)
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
27,456
55,229
41,000
10,200
68,456
60,585
6
0
`
Pg. 60
Financial Statements
NOTE 22
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 license 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 has on native title. A tenement
holder may be liable for the payment of compensation for the effect 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 endeavors 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 license and assists the exploration endeavor
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. 61
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.
Mt Malcom Mines NL Tenements
The Company entered into an agreement with Mt Malcolm Mines NL in relation to a number of tenements 15km east of
Leonora. The Company retains a 2% royalty.
NOTE 23
Tenement Sales Agreement
CONTINGENT ASSETS
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.
Development Delay Payments
(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
has now been paid). and
`
Pg. 62
(ii)
Financial Statements
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.
The Company has received payments totalling $1,000,000 under this agreement to date.
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.
`
Pg. 63
Liquidity Risk
Financial Statements
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, including 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 programs
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 2023 and 30 June 2022 was as follows:
Cash and cash equivalents
Trade and other receivables
Trade and other payables
Working capital position
Credit Risk
2023
($)
4,102,161
179,666
(565,948)
3,715,879
2022
($)
2,029,835
187,274
(372,176)
1,844,933
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to
recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed
in the Statement of Financial Position and notes to the financial statements.
There is no material amounts of collateral held as security at balance date.
The following table provides information regarding the credit risk relating to cash and cash equivalents based on credit
ratings:
AAA rated
AA rated
A rated
2023
($)
-
-
4,102,161
2022
($)
-
-
2,029,835
The credit risk for counterparties included in trade and other receivables at balance date is detailed below.
Trade and other receivables
Trade and other receivables
GST and tax refundable
(b) Financial Instruments
2023
($)
2022
($)
6,532
173,134
3,256
184,018
179,666
187,214
The Company holds no derivative instruments, forward exchange contracts or interest rate swaps.
Financial Instrument composition and maturity analysis
The table below reflects the undiscounted contractual settlement terms for financial instruments.
2023
Financial Assets
Cash and cash equivalents
Other receivables
Available-for sale financial assets
Total Financial Assets
Financial Liabilities
Trade and other payables
Net Financial Assets
Weighted
Average
Effective
Interest Rate %
0.012%
Floating
Interest Rate
($)
Non-Interest
Bearing
($)
4,102,161
-
-
4,102,161
-
179,666
168,819
348,485
Total
($)
4,102,161
179,666
168,819
4,450,646
-
4,102,161
(565,948)
(217,463)
(565,948)
3,884,698
Trade and other payables are expected to be paid as follows:
Less than 6 months
2023 ($)
(565,948)
(565,948)
`
Pg. 64
2022
Financial Assets
Cash and cash equivalents
Other receivables
Available-for sale financial assets
Total Financial Assets
Financial Liabilities
Trade and other payables (excluding GST refund)
Net Financial Assets
Weighted
Average
Effective
Interest Rate %
1.528%
Financial Statements
Floating
Interest Rate
($)
Non-Interest
Bearing
($)
2,029,835
-
-
2,029,835
-
187,274
223,475
410,749
Total
($)
2,029,835
187,274
223,475
2,440,584
-
2,029,835
(372,176)
38,573
(372,176)
2,068,408
Trade and other payables are expected to be paid as follows:
Less than 6 months
2022($)
(372,176)
(372,176)
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).
2023
Financial Assets:
Financial assets at fair value through profit or loss:
Available-for-sale financial assets:
Listed investments
2022
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
$
168,818
168,818
Level 1
$
Level 2
$
223,475
223,475
-
-
-
-
-
-
168,818
168,8185
Level 3
$
Total
$
-
-
223,475
223,475
(c) 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%
2023
($)
(4,102)
4,102
(4,102)
4,102
2022
($)
(2,029)
2,029
(2,029)
2,029
`
Pg. 65
Financial Statements
NOTE 26
NEW STANDARDS ADOPTED
AASB 16 Leases
The Company adopted AASB 16 for the year ended 30th June 2023.
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 capitalize 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 2023 the company had a one year lease effective up to from 27
March 2023.Currently the company is on a monthly casual lease arrangement. The Directors of the company are in the
process of arranging a lease for a 12 month term. As there is no clear certainty that the company will extend the lease
beyond 12 months. The directors have elected for the year ended 30 June 2023 to apply for the optional exemption in relation
to AASB 16 and not capitalize the lease instead the lease payments are expensed on a straight line basis over the lease
term.
`
Pg. 66
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 2023 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 2023 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 29 September 2023
Pg. 71
Financial Statements
Other Information
Tenements currently held
Location
Tenement
Nature of
Interest
Granted
Granted
Granted
Granted
E70/3536
E70/4243
E70/4508
E70/4692
E70/5276
Granted
E70/5277
Granted
E37/1331
E37/1419
Granted
Granted
E37/1367
Granted
P37/8905
Granted
P37/8906
Granted
P37/8907
Granted
P37/8908
Granted
P37/8909
Granted
P37/8910
Granted
P37/8911
Granted
P37/8912
Granted
P37/9204
Granted
P37/9205
Granted
P37/9206
Granted
P37/9207
Granted
E37/1177
Granted
E37/1258
Granted
Project
JUBUK
RAGGED ROCK
KAURING
MT JOY
KAURING
KAURING
MALCOLM
MALCOLM
MELITA
RAESIDE EAST
RAESIDE EAST
RAESIDE EAST
RAESIDE EAST
BRAISER
BRAISER
BRAISER
BRAISER
MALCOLM
MALCOLM
MALCOLM
MALCOLM
MERTONDALE
MERTONDALE
P37/8687
Granted
CHRISTMAS WELL
P37/8688
Granted
CHRISTMAS WELL
P37/8689
Granted
CHRISTMAS WELL
P37/8690
Granted
CHRISTMAS WELL
P37/8692
Granted
CHRISTMAS WELL
P37/8693
Granted
CHRISTMAS WELL
P37/8694
Granted
CHRISTMAS WELL
E38/3100
Granted
E38/3127
Granted
MT JUMBO
HAWKS NEST
E38/3205
Granted
HAWKS NEST EAST
E38/3209
Granted
MT AJAX
M38/1041
Granted
NICHOLSON WELL
P38/4126
Granted
P38/4170
Granted
P38/4317
Granted
P38/4318
Granted
P38/4319
Granted
P38/4320
Granted
P38/4321
Granted
HN9 WEST
DEFIANT BORE
MT JUMBO EAST
MT JUMBO EAST
MT JUMBO EAST
MT JUMBO EAST
MT JUMBO EAST
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
Equity (%) held
Royalty Retained
Royalty Retained
Royalty Retained
Royalty Retained
Royalty Retained
Royalty Retained
2% Royalty Retained
2% Royalty Retained
2% Royalty Retained
2% Royalty Retained
2% Royalty Retained
2% Royalty Retained
2% Royalty Retained
2% Royalty Retained
2% Royalty Retained
2% Royalty Retained
2% Royalty Retained
2% Royalty Retained
2% Royalty Retained
2% Royalty Retained
2% Royalty Retained
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Pg. 72
Location
Tenement
Nature of
Interest
Project
Equity (%) held
Financial Statements
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
P38/4322
Granted
P38/4323
Granted
P38/4324
Granted
P38/4346
Granted
P38/4379
Granted
P38/4380
Granted
P38/4381
Granted
P38/4382
Granted
P38/4383
Granted
P38/4384
Granted
MT JUMBO EAST
MT JUMBO EAST
MT JUMBO EAST
LADY JULIE
LADY JULIE
LADY JULIE
LADY JULIE
LADY JULIE
LADY JULIE
LADY JULIE
P37/9144
Granted
HOMEWARD BOUND SOUTH
P39/5455
Granted
HOMEWARD BOUND SOUTH
P39/5928
Granted
HOMEWARD BOUND SOUTH
P39/5929
Granted
HOMEWARD BOUND SOUTH
P39/5932
Granted
HOMEWARD BOUND SOUTH
P39/5933
Granted
HOMEWARD BOUND SOUTH
P39/5934
Granted
HOMEWARD BOUND SOUTH
P39/6175
Granted
HOMEWARD BOUND SOUTH
E39/2125
P39/6134
P39/6135
P39/6136
P39/6137
P39/6138
P39/6139
P39/6140
P39/6141
P39/6142
P39/6143
P39/6144
E70/5534
E70/5537
E70/5538
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
E70/5771
Granted
E70/6304
Granted
E70/6305
Granted
LITTLE WELL
LITTLE WELL
LITTLE WELL
LITTLE WELL
LITTLE WELL
LITTLE WELL
LITTLE WELL
LITTLE WELL
LITTLE WELL
LITTLE WELL
LITTLE WELL
LITTLE WELL
TRAYNING
BENJABERRING
GODDARD
KORRELOCKING
TRAYNING WEST
KOORDA
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
0%
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. 73
Financial Statements
The following information was applicable as at 20 September 2023
Share and Partly Paid Share holdings
Category (Size of
Holding)
Holders
of Fully
Paid
Ordinary
Shares
Shares held / %
Holders of
partly-paid
contributin
g shares
Partly-Paid
Contributing
Shares / %
Holders
options
Options
1 to 1,000
636
220,997 / 0.09% 1,049
439,231 / 2.15%
-
-
1,001 to 5,000
399
5,001 to 10,000
131
10,001 to 100,000
266
100,001 and over
129
975,973 / 0.41% 478
1,079,028 /
0.46%
9,528,368 /
4.02%
225,149,669 /
95.02%
16
64
69
1,038,642 / 5.09% 3
5,205
496,724 / 2.43%
3
24,075
2,271,742 / 11.13% 16
16,172,523 /
79.20%
20
545,556
10,291,666
10,866,502
Total
1,561
236,954,035
1,676
20,418,862
42
The number of shareholdings with less than marketable parcels is 522 shareholders holding 127,707 fully paid ordinary shares and
781 shareholders holding 221,007 partly paid contributing shares. There are no listed options.
Pg. 74
Financial Statements
Substantial shareholders :
Shareholder Name
OAN CHIM SENG
CHAN HIAN SIANG
DALE ALCOCK / TARGET RANGE
LIM CHOON KONG
Number of Shares
% of Issued Share Capital
34,910,318
29,608,982
25,876,045
15,076,083
14.73%
12.50%
10.92%
6.30%
Twenty largest shareholders – Quoted fully paid ordinary shares:
Position
1
2
3
4
5
6
Holder Name
MR CHIM SENG OAN
MR HIAN SIANG CHAN
TARGET RANGE PTY LTD
MR CHOON KONG LIM
CITICORP NOMINEES PTY LIMITED
7
8
9
10
11
12
13
14
15
16
17
18
19
20
ALCOCK SUPERANNUATION FUND PTY LTD
AVA CARTEL SDN BHD
GFI INVESTMENTS PTY LTD
BNP PARIBAS NOMS PTY LTD UOBKH A/C
R'MIERS
REKA CEMERLANG SDN BHD
MR LIM JIN HUEI ERIC
ROCKCAR PTY LTD
MS XIAO JUN ZHANG
BNP PARIBAS NOMINEES PTY LTD
MR AARON SIM KWANG LIANG
MR GEORGE SAKALIDIS
COWARA PTY LTD
EMNJ PTY LTD
MR CHIN HUAT LOO
BNP PARIBAS NOMS PTY LTD
Total
Total issued capital - selected security
class(es)
Holding
34,910,318
29,608,982
16,451,893
10,374,443
9,647,295
9,424,152
% IC
14.73%
12.50%
6.94%
4.38%
4.07%
3.98%
7,590,302
6,800,500
3.20%
2.87%
5,904,044
2.49%
5,759,615
5,055,423
4,217,325
4,000,000
3,565,583
3,387,716
3,228,571
2,801,501
2,730,000
2,567,735
2,349,955
2.43%
2.13%
1.78%
1.69%
1.50%
1.43%
1.36%
1.18%
1.15%
1.08%
0.99%
170,375,353
71.90%
236,954,035
100.00%
Pg. 75
Financial Statements
Twenty largest shareholders – Quoted partly-paid contributing shares:
Position
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Holder Name
GFI INVESTMENTS PTY LTD
MR IAN RONALD BARON
MR GEORGE SAKALIDIS &
MRS JACQUELINE SAKALIDIS
MR ROGER MICHAEL THOMSON &
MRS ROSMARIE OLIVE THOMSON
EMNJ PTY LTD
MR GEORGE SAKALIDIS
BRISPOT NOMINEES PTY LTD
MR BRENTON GRAHAM TIELEMAN
MR BARRINGTON DANCE &
MS JEAN PATRICIA DANCE
MR BARRINGTON DANCE
EMNJ PTY LTD
MEGGSIES PTY LTD
AUTO MANAGEMENT PTY LTD
GILPIN PARK PTY LTD
PGC (2006) PTY LTD
MR ROBERT FRANCIS KAVANAGH
MRS GAYNOR CHRISTENSEN
MR CHOON KONG LIM
MR ERIC ROBERT TERACE &
MRS JUDITH FAY TERACE
MR PETER WILLIAM TAYLOR &
MRS MAUREEN JUNE TAYLOR
Total
Total issued capital - selected security
class(es)
Holding
4,311,081
2,051,999
2,040,333
% IC
21.11%
10.05%
9.99%
2,000,000
9.79%
1,377,332
6.75%
958,114
725,930
500,000
450,000
360,438
335,059
261,997
218,654
205,556
196,030
180,000
100,000
92,500
91,666
4.69%
3.56%
2.45%
2.20%
1.77%
1.64%
1.28%
1.07%
1.01%
0.96%
0.88%
0.49%
0.45%
0.45%
70,000
0.34%
16,526,689
80.94%
20,418,862
100.00%
Pg. 76
Financial Statements
Option to acquire Fully Paid Ordinary Shares, expiry 31.12.2024
NAME
ERIC LIM
BENJAMIN DONOVAN
MR GEORGE SAKALIDIS
Option to acquire Fully Paid Ordinary Shares, expiry 6.12.2025
NAME
LEEMAN PTY LTD
MR HIAN SIANG CHAN
MR LIM JIN HUEI ERIC
ELOHIM NOMINEES PTY LTD
Expiry price
$1.515
$1.515
$1.515
Expiry price
$1.20
$1.20
$1.20
$1.20
Number
900,000
600,000
1,800,000
Number
1,500,000
750,000
750,000
750,000
There are a total of 236,954,035 fully paid ordinary shares, 20,418,862 partly-paid contributing shares and 10,866,502 options on
issue. Both the fully paid ordinary shares and partly-paid contributing shares are listed on Australian Securities Exchange Limited.
Buy-Back Plans
The Company does not have any current on-market buy-back plans.
Voting Rights
The voting rights attaching to ordinary shares are governed by the Constitution. On a show of hands every person present who is a
Member or representative of a member shall have one vote and on a poll, every member present in person or by proxy or by attorney
or duly authorised representative shall have one vote for each fully paid ordinary share held and 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. None of the options have any voting rights.