Annual Report
FINANCIAL YEAR
ENDED 30 JUNE 2024
Magnetic Resources NL
1st Floor, 44A Kings Park Road, West Perth, WA
6005 Tel (08) 9226 1777
ABN 34 121 370 232
Table of Contents
Corporate Directory
1
Review of Operations
2
Director’s Report
33
Auditor’s Independence Declaration
45
Corporate Governance Statement
46
Statement of Profit or Loss and Other Comprehensive income
57
Statement of Financial Position
58
Statement of Changes in Equity
59
Statement of Cash Flows
60
Notes to the Financial Statements
61
Consolidated Entity Disclosure Statement
81
Directors’ Declaration
82
Independent Auditor’s Report
83
Other Information
87
Corporate Directory
Pg. 1
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 SHAREHOLDER INFORMATION CONTACT
SHARE REGISTRY
Security Transfer Registrars Pty Ltd
770 Canning Highway, Applecross WA 6153
Telephone (08) 9315 2333
Facsimile (08) 9315 2233
FOR INFORMATION ON THE COMPANY CONTACT
PRINCIPAL & REGISTERED OFFICE
1st Floor
44A Kings Park Road
West Perth WA 6005
Telephone (08) 9226 1777
BANKERS
Commonwealth Bank Ltd and
Bank of Western Australia Ltd
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 July 2024)
258,000,593 fully paid ordinary shares.
20,418,862 partly paid shares ($0.20 unpaid).
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.
2,386,872 options to acquire fully paid shares
exercisable at $0.68 on or before 10 May 2025.
3,750,000 options to acquire fully paid shares
exercisable at $1.53 on or before 6 December
2026.
Financial Statements
Pg. 2
Review of Operations
Projects Summary: Gold
Laverton Area
Magnetic Resources NL has 185km2 in the Laverton region comprising E38/3127 Hawks Nest, M38/1041
Nicholson Well, E38/3100 Mt Jumbo, E38/3205 Hawks Nest East, E38/3209 Mt Ajax, P38/4317–24 Mt Jumbo
East, E39/2125, P39/6134-44 Little Well, P38/4346 to P38/4379-84 Lady Julie, P38/4170 Defiant Bore and
P38/4205 Lady Julie West (Figure 1).
Table 1 shows the exploration completed to date and recent/proposed exploration.
Figure 1. Hawks Nest, Hawks Nest East, Lady Julie, Lady Julie East, Lady Julie West, Little Well, Mt Ajax, Mt Jumbo
and Mt Jumbo East projects, showing tenements, major shear zones, targets and gold deposits and historic
workings.
Financial Statements
Pg. 3
Table 1. Laverton region drilling summary
Lady Julie North 4 deposit
The central and northern part of the 750m long LJN4 deposit was mainly drilled in the June quarter
with very promising results. The 400m northern part of the 750m-long LJN4 deposit plunges to the
SE and is much larger than previously estimated and is bigger than the southern silica pyrite and breccia
zone. The dimension of this impressive northern zone is at least 600m down the SE plunge direction, at
least 650m down dip and greater than 200m in strike length. This zone keeps expanding (Figure 2) and
deeper holes MLJDD054-64 are planned to test for further down dip extensions by 150m below.
A number of significant intersections from three separate ASX releases during the June quarter (Figure
5) are highlighted below.
− The northern 400m part of the LJN4 Deposit has the best intersection to date at LJN4 and is 23m at
6.3g/t Au from 317m in MLJDD042, which includes 6m at 12.23g/t from 319m and an Intersection in
MLJDD039 of 26m at 2.49g/t from 567m (27 June 2024).
− LJN4 northern zone grows dramatically to over 600m down plunge. Intersections include 25m at 3.86g/t
from 386m in MLJDD048. Also, hole MLJDD044 intersected 16m at 1.99g/t from 359m (13 June 2024).
− LJN4 continues to deliver with deep intersections down dip. MLJDD039 intersected 28m at 1.19g/t from
432m in MLJDD039 and hole MLJDD040 intersected 7m at 4.73g/t from 380m (10 May 2024).
Project/Tenements
Surface
sampling
completed
Drilling & ground
magnetics completed
Proposed exploration
Hawks Nest
E38/3127, M38/1041
5,411 soils
1,125 RC holes for
71,429m
117 rock chips
201 RAB holes for 2,726m
5 Diamond holes for 501m
67 AC holes for 3,384m
507km ground magnetics
Lady Julie
P38/4346, P38/4379-
84, E38/3127, P38/4170
2,148 soils
47 Diamond holes for
15,080m
11 Diamond holes for
6,738m
15 rock chips
834 RC holes for 82,222m
23 RC holes for 4980m
8 RCD holes for 1,915m
237 AC holes for 9,807m
290 shallow RAB for
1,691m
125km ground magnetics
Mt Jumbo E38/3100
3 rock chips
3 RC holes for 563m
4 RC holes for 690m
43 lags
2 Diamond holes for 457m
143km ground magnetics
Mt Jumbo East
P38/4317–24
23 rock chips
33 RC holes for 2,527m
155 lags
229km ground magnetics
Financial Statements
Pg. 4
Figure 2. Composite Inclined Longitudinal Projection of LJN4 in gram-metres. Highlighting continuous mineralisation
over the whole 750m length, being open at depth in the central area and showing a 600m long SE plunging zone.
New drilled holes awaiting assays (in blue) and further planned holes (in yellow)
MLJDD048 has 25m at 3.86g/t from 386m, which was a very large 200m step out below MLJRC804 which
had 20m at 2.76g/t from 243m depth (Figure 3).
An infill hole within this cross section MLJDD042 has also intersected 25m of fuchsite alteration from 315
to 340m. It has 23m at 6.29g/t Au from 317m (our best intersection so far), which includes 6m at 12.23g/t
Au from 319m and includes 13m at 5.08g/t Au from 327m. MLJDD042 is 100m up dip from MLJDD048
with 25m at 3.86g/t Au from 386m (Figs 3 and 5).
The high-grade intersection in MLJDD042 is characterised by bleached, intensely silicified and quartz-
veined ultramafic. Some of the higher grades are associated with the appearance of bright green fuchsite
alteration, chalcedonic silica veins and in some places, breccia. The intersection in MLJDD039 is similar
in appearance but without the chalcedonic veins. The strong fuchsite altered gold rich zones are shown
in the diamond core trays in Figures 11 to 15.
Financial Statements
Pg. 5
Figure 3. Cross section for LJN4 northern area showing high-grade dipping gold zone containing resource model
outline and MLJDD048 being a down dip extension of 130m with intense fuchsite alteration
MLJDD039 has intersected 26m at 2.49g/t Au from 567m, which includes 10m at 3.13g/t Au from 571m
and is 250m down dip from MLJDD044 with 16m at 1.99g/t Au from 359m and 13m at 2.02g/t Au from
393m. (Figs 4 and 5).
The intersection in MLJDD039 (which is our deepest intersection to date starting at 567m vertically) is far
below the open pit from our PFS study (ASX release 7 March 2024). This deep hole is increasing both the
potential size of the open pit and now for the first time looking at the underground mining potential of LJN4.
An updated economic study is being carried out.
Financial Statements
Pg. 6
Figure 4. Composite section for LJN4 central area showing high-grade dipping gold zone containing resource model
outline and MLJDD039, 47 and planned 54 being part of a very large 650m down dip mineralised zone
In addition, the assays are pending for 3 diamond holes MLJDD051, 52 and 53. A further 8 diamond holes
MLJDD054-64 for 5105m are planned.
Financial Statements
Pg. 7
Figure 5. The Lady Julie North 4 deposit has numerous significant thick intersections from the latest drill programme
(yellow large rectangular label) and previous drilling (white label) with maximum gold projected to surface and
planned deeper drillholes (in yellow)
Financial Statements
Pg. 8
Many of the holes are outside the existing resource and have potential for the enlargement of the LJN4
(Indicated and Inferred) of 23.2Mt at 2.01g/t for 1,490,000oz at a 0.5g/t cutoff (Table 5 in Resource
section). As described in the 2 July 2024 ASX release there was an outstanding 0.54moz (~57%) increase
in the LJN4 resource in the Laverton Project after only 4 months.
The updated combined (Indicated and Inferred) Mineral Resources estimate for the whole project area is
32.6Mt @ 1.79g/t Au totalling 1,875,400oz of gold at 0.5g/t cutoff (Table 4 in Resource section).
Diamond drilling at LJN4 has revealed four 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 to sandy matrix.
•
Polymictic breccia: a mixed breccia of chert, felsic porphyry, and ironstone (possibly after ferruginous
or pyritic chert), sometimes with quartz or silica clasts, in a siliceous, ferruginous or pyritic matrix. The
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 with some bright green fuchsite alteration and
chalcedonic silica veins.
•
Pyritic zones in crystalline sedimentary carbonate: This is a more subtle style of mineralisation
comprising disseminations and irregular stringers of pyrite in the chert-carbonate sequence overlying
the footwall ultramafics. Better intercepts of this style include 9.75m @ 2.56g/t from 224m at end of
hole in MLJDD016 (section 6826310N) and 16m @ 4.51g/t from 411m in MLJDD033 (section
6826480N).
The recent intersection of the carbonate-hosted mineralisation at depth in MLJDD033 suggests that this
this style may become more important in the deeper parts of the LJN4 mineralised system, which has yet
to be fully explored and defined.
Photos of some examples of both breccia mineralisation and silica pyrite alteration in the core trays with
an overlayed gold content for each interval of core measured (Figures 6 to 10). Examples from various
diamond hole trays showing strong silicified ultramafic including fuchsite alteration are shown in Figures
11 to 15.
The mineralisation appears to occur in a series of moderately east-dipping (45-50°) zones ranging from a
few metres up to 52m 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.
Financial Statements
Pg. 9
MLJDD020_178.0m_Polymictic Breccia with silica-pyrite clast
Figure 6. Drillhole MLJDD020 from 178.0m showing Polymictic Breccia with silica-pyrite clast
Figure 7. Drillhole MLJDD018 from 77.5m showing Polymictic Breccia
Figure 8. Drillhole MLJDD018 from 164.5m showing massive pyrite in Breccia
Financial Statements
Pg. 10
Figure 9. Drillhole MLJDD018 from 198.0m showing Vuggy Silica Alteration
Financial Statements
Pg. 11
Figure 10. Drillhole MLJDD015 from 136m showing silica-pyrite and breccia alteration
Figure 11. Drillhole MLJDD019 from 148.4m showing visceral texture in bleached, silicified ultramafic
Financial Statements
Pg. 12
Figure 12. Drillhole MLJDD042 from 318m showing silicified ultramafic with fuchsite alteration
Financial Statements
Pg. 13
Figure 13. Drillhole MLJDD042 from 327m showing silicified ultramafic with fuchsite alteration
Financial Statements
Pg. 14
Figure 14. Drillhole MLJDD039 from 566m showing silicified ultramafic with fuchsite alteration
Financial Statements
Pg. 15
Figure 15. Drillhole MLJDD039 from 579m showing silicified ultramafic with fuchsite alteration
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 16). These three areas are all shallow deposits and Lady Julie Central and
HN9 start from surface and Lady Julie North 4 from 30m depth, which provide low strip ratios and potential
for economic ore that is open-cuttable and are effectively part of one mining centre.
Financial Statements
Pg. 16
Figure 16. 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
Financial Statements
Pg. 17
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 NS braided shear complex known as the
Chatterbox Shear Zone (CSZ, Figure 17) 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.
Figure 17. The Lady Julie North 4 Chatterbox Interpreted Shear shown on a Gravity image with major gold deposits
Financial Statements
Pg. 18
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
17). Within Magnetic’s tenements the shear zone can be traced for a distance of 12km. 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 (Figure 17). 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 17). Previous seismic work completed by Magnetic also shows up the
Chatterbox shear which has great depth extent of this 45 degree east dipping shear with a number of
associated vertical faults.
Within the HN5, HN6, HN9 and Lady Julie areas there are many new shallow intersections with a total of
2,753 intersections (ranging from 1 to 44m) greater than 0.5g/t Au, which includes 1,312 greater than 1g/t
Au, 506 greater than 2g/t Au, 263 greater than 3g/t Au and 164 greater than 4g/t Au.
At Hawks Nest 5, 6, 9 and Lady Julie extensive drilling programmes have been completed. including 1,917
RC/RCD holes totalling 151,599m (average 79m depth), 37,948 1–5m composites and 26,252 1m splits,
302 AC holes totalling 12,125m, 3,049 2-6m composites and 294 1m splits and 38 Diamond holes totalling
13,774m 8,878 core samples, the Geotech programme comprising 10 RC/RCD drillholes totalling 670m
and 10 diamond holes totalling 1,205m 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 79m providing tremendous scope for upside potential.
Managing Director George Sakalidis commented: “With the Australian gold price at record levels of $3600
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 now greater than 400m depth at LJN4
(see ASX releases 7/08/23, 31/07/23, 14/08/23, 22/08/23, 8/09/2023, 26/09/2023, 19/10/2023, 2/11/2023,
31/01/2024, 29/02/2024, 5/03/2024, 7/03/2024, 10/04/2024, 13/06/2024, 27/06/2024, 2/07/2024).
A 400m long northern ultramafic zone has been extended at depth and is part of a very large 600m SE
plunging zone that is up to 200m long and is still being tested further at depth with holes 54 and 55 (Table
4). This zone has intense green fuchsite-silica-pyrite alteration, which has been intersected in holes
MLJDD39,40, 42, 44, 45, 47, 48 and 51 (Figures 11 to15). This northern mineralised zone is now bigger
than the promising southern breccia silica-pyrite stacked zones and still growing. MLJDD044 is one of our
best intersections with 23m at 6.29g/t from 317m and further detailed drilling is being planned near this
hole.
As a result of these promising results and extensions in the northern zone a resource study was completed
and is being followed up by an updated economic study which will consider the rising commodity prices.
This is an exciting time for the Company having announced its Expanded Mineral Resource on 2 July 2024
and is again looking to further increase the size the LJN4 Resource by further deep drilling.
Concurrently, the Blue Cap feasibility studies and Mining Proposal work are continuing after our very
promising prefeasibility economic results, which provides the company with the ability to fast-track work
mining approvals.
Financial Statements
Pg. 19
Continuing with global investment bank Jefferies, who are helping with ongoing opportunities with numerous
parties completing due diligence in our data room. Also, after numerous finance enquiries, Argonaut PCF
have been engaged to help Magnetic to structure and secure funding for the promising Laverton project.”
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 30,000sq. 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.
A 503 soil-sampling programme was carried out on the northern part of Benjaberring with sample spacings
of 50m x 200m and 50m x400m over the main magnetic targets. The eastern tenements are prospective
for REE after shallow, thick, strong REE intersections were made within the Trayning project (Figure 18).
Access to various targets throughout the four tenements is ongoing and currently there are four access
agreements over parts of the Trayning, Benjaberring and Goddard projects.
Financial Statements
Pg. 20
Figure 18. Coverage of Magnetics four projects NE of Julimar overlayed on the regional aeromagnetics
Financial Statements
Pg. 21
LJN4 Resource Upgrade (ASX Release 2 July 2024)
•
Updated Lady Julie North 4 (LJN4) Mineral Resource Estimate of 1.49Moz from 0.95Moz, an outstanding
increase of 0.54Moz (~57%) after only 4 months since the previous resource update. The LJN4 resource is
now 23.2Mt at 2.01 g/t for 1.49Moz.
•
Combined Mineral Resources Estimate for the whole project area of:
o 32.6Mt @ 1.79g/t Au totaling 1.87Moz of gold at 0.5g/t cutoff1.
o Increase of 40% of the total ounces over the March 2024 ASX Release.
•
Extension drilling at LJN4 is continuing and is expected to result in a further resource increase as the
northern strongly pervasively altered zones are thick and are still open at depth. There is also potential from
drilling beneath the footwall of the stacked lode sequence, an area with limited previous evaluation.
•
This update incorporates recent drilling results at Lady Julie North 4 (LJN4) since the last resource report in
March 2024 (“A further boost to LJN4 Resource – Closing in on 1Moz”, ASX release 5 March 2024”).
Total Mineral Resources reported for the Laverton and Homeward Bound South projects is now
32.6Mt @ 1.79g/t Au at 0.5g/t cut-off 1 totalling 1.87Moz of gold (See Table 1 & 2 below).
The cutoff grade is considered appropriate for a large-scale open pit operation and in the case of LJN4,
is applied to a depth of 440m below surface. It should be noted that the pit design linked to the pre-
feasibility study (PFS) (“Outstanding value demonstrated by PFS at Lady Julie Project 7 March 2024”)
was at 310m depth, before the most recent drilling had been applied to the model.
The mineralisation deeper than 440m below surface shows strong continuity and therefore amenable to
underground mining. A cutoff grade of 2g/t Au is considered appropriate and has been applied to this
portion of the model. Underground mineralisation remains open down dip to the east and is likely to result
in an increase to the current underground Mineral Resource as exploration drilling continues.
The verification and reporting of Mineral Resources on behalf of the Company was completed by its JORC
Competent Person, Mr. M Edwards of Blue Cap Mining. The Mineral Resources Estimate has been
prepared and reported in accordance with the 2012 Edition of the JORC Code.
Managing Director George Sakalidis commented:
“The LJN4 resource has been the Company’s primary drilling focus over recent months. LJN4 has multiple
stacked lodes with several thick intersections that have not been closed off at depth. The resource
upgrade includes an increase of 0.54moz over a 4-month period, which is an outstanding result. The
mineralisation consists of thick strongly altered zones mainly associated with intensely fuchsite altered
ultramafic rock types in the northern half of the deposit and breccia silica pyrite altered zones within the
southern half of the deposit.
1 A small portion of LJN4 is now classed as underground resource with a 2g/t cutoff as shown in Table 2
Financial Statements
Pg. 22
The LJN4 deposit sits within a regional structure called the Chatterbox Shear Zone that extends over a
12km length within the Magnetic tenements.
The Lady Julie Gold Project PFS was released to the ASX on 7 March 2024. An updated economic study
has commenced, and augur well given the outstanding resource upgrade at LJN4 (not yet incorporated
into the mine plan) and conservative economic assumptions assumed in the 7 March 2024 PFS.
Work is now well advanced on taking this to a feasibility study level of accuracy. Preparations are also
underway on the development of a Mining Proposal. One mining lease application has already been
lodged over LJN4 – others will follow the lodgement of the Mining Proposal.”
Tables 1 and 2 summarise the updated Total Mineral Resource at the 0.5g/t cutoff. Table 3 summarises
the LJN4 Resource and provides details of all the major resources and Table 4 the major resources within
the Laverton Project. Details for the smaller resources which have not changed can be found in the 3
February 2023 ASX release.
Table 1. Total Mineral Resource at 0.5 g/t Au Cutoff
Classification
Au Cutoff
Tonnes
Au
Ounces
Indicated
0.50
19,714,000
1.99
1,259,200
Inferred
0.50
12,307,000
1.44
568,700
Total
0.50
32,021,000
1.77
1,827,900
Table 2. LJN4 Mineral Resource at 2.0 g/t Au Cutoff
Classification
Au Cutoff
Tonnes
Au
Ounces
Indicated
Inferred
2.0
580,000
2.51
47,400
Total
2.0
580,000
2.51
47,400
Financial Statements
Pg. 23
Figure 1. Overview of Magnetic’s Laverton and Homeward Bound South Resources
Financial Statements
Pg. 24
Table 3. Resource Details by Main Deposits @ 0.5 / 2.0 g/t cutoff
Deposit
Classification
Tonnes
Au g/t
Ounces
LJN4
Indicated
16,089,000
2.13
1,101,000
LJC
Indicated
792,000
1.97
50,200
HN9
Indicated
1,995,000
1.29
82,800
Other resources
Indicated
837,400
0.94
25,230
Total
Indicated
19,714,400
1.99
1,259,200
LJN4
Inferred
6,970,000
1.78
391,400*
LJC
Inferred
541,600
1.26
22,000
HN9
Inferred
1,182,000
1.25
47,600
Other resources
Inferred
4,193,700
1.15
155,160
Total
Inferred
12,887,300
1.49
616,100
LJN4
Total
23,060,000
2.01
1,490,000*
LJC
Total
1,333,600
1.68
72,200
HN9
Total
3,177,000
1.28
130,400
Other resources
Total
5,031,100
1.12
180,390
Total
Total
32,601,700
1.79
1,875,400
*LJN4 includes 2g/t cut off mineralisation for an undergrown resource below 440
m.of 580,000t at 2.51g/t for 47,500oz
Table 4. Resource Details for the Laverton Project Deposits @ 0.5 / 2.0 g/t cutoff
Deposit
Classification
Tonnes
Au g/t
Ounces
LJN4
Indicated
16,089,000
2.13
1,101,000
LJC
Indicated
792,000
1.97
50,200
HN9
Indicated
1,995,000
1.29
82,800
Total
Indicated
18,876,000
2.03
1,234,000
LJN4
Inferred
6,970,000
1.75
391,400*
LJC
Inferred
541,600
1.26
22,000
HN9
Inferred
1,182,000
1.25
47,600
Total
Inferred
8,693,600
1.65
461,000
LJN4
Total
23,060,000
2.01
1,490,000*
LJC
Total
1,333,600
1.68
72,200
HN9
Total
3,177,000
1.28
130,400
Total
Total
27,570,600
1.91
1,695,400
*LJN4 includes 2g/t cut off mineralisation for an undergrown resource below 440m
of 580,000t at 2.51g/t for 47,500oz
Magnetic confirms that it is not aware of any new information or data that materially affects the information included in that
announcement and, in relation to the estimates of Magnetic’s Mineral Resources, that all material assumptions and technical
parameters underpinning the estimates in the announcement continue to apply and have not materially changed. Magnetic confirms
that the form and context in which the Competent Person's findings are presented have not been materially modified from that
announcement.
Financial Statements
Pg. 25
Drilling has concentrated on LJN4 over the last 4 months as shown in Table 5. Results are presented below:
LJN4 Resource
The LJN4 (Indicated and Inferred) Resource of 23.06 Mt at 2.01 g/t for 1,492,000 oz has a present
footprint of 750m x 500m (Figure 5) and remains open down dip to the east. Recent drilling results have
confirmed the previous interpretation of a moderately dipping, multi-lode structure. Where the drilling
encounters fuchsite alteration within the northern ultramafics, the mineralised structure expands
considerably. This is particularly the case below 200m depth. Additional infill and extensional drilling is
being planned to further test this fuchsite altered zones in the northern half of LJN4.
From February 2024 to June 2024, some 26 DD/RC holes were completed for 7.619m with the deepest
hole being vertical reaching 621.6m below surface. Exploration drilling is continuing.
Some 60% of the resource is classified in the Indicated Category, mostly now at depth between wide
spaced drillholes. Most mineralisation that would sit in a potential pit is now an Indicated category.
Figure 2. Lady Julie North 4 Plan Showing Position of 4 Drill Sections.
Financial Statements
Pg. 26
Figures 3 a), b), c), d). LJN4 Cross Sections Showing Main Gold Intersections with Resource Model Wireframes (top part
of holes in white not assayed).
Financial Statements
Pg. 27
Figure 4. LJN4 Long Section Looking E Showing Resource Model with Block Grades.
Financial Statements
Pg. 28
Figure 5. Lady Julie North 4, Oblique View Looking SW with Current Wireframes in Green.
Technical Summary of the Mineral Resource Estimate
Drilling at the various deposits has been by a variety of methods, the drill holes used in the modelling of
each deposit are summarised below. In general, all holes are used to assist in geological interpretation,
while DDH (Diamond), RC (Reverse Circulation) and limited AC (Air Core) are used for grade estimation.
Financial Statements
Pg. 29
Table 5. Drill Hole Summary.
Deposit
Total Metres
Number of Holes
Hawks Nest 9
66,654
1,093
Lady Julie
135,747
1,562
Hawks Nest 3
10,306
249
Hawks Nest 5
6,471
163
Mount Jumbo
28,508
506
Homeward Bound S
11,412
413
Total
259,098
3,986
Historical drilling was generally RAB (Rotary Air Blast) and AC for initial exploration with most follow up
and infill work being carried out using RC. Magnetic has used RC for its recent drilling programs at HN9
and Lady Julie.
One metre RC samples are assayed using a 50g charge and a fire assay method with an AAS finish which
is regarded as appropriate. The technique provides an estimate of the total gold content.
Industry standard standards and duplicates are used by the NATA registered laboratory conducting the
analyses.
Primary data is entered into an in-house database and checked by Magnetic’s database manager.
The data is subsequently exported to Micromine format files and imported into Micromine 2022 software
for further validation, statistical analysis and resource estimation. Mineralisation styles in the Laverton-
Leonora deposits include:
•
quartz veining and stock working in felsic porphyry
•
shear-hosted quartz veins on porphyry-amphibolite contacts
•
Pyritic polymictic breccias
•
Vughy silica-pyrite alteration
•
Silicified, quartz-veined shear zones in ultramafic
Mineralised domains at HN9, LJC and LJN4 have been digitised using mineralised trends. Drill data was
flagged inside domain boundaries and composited to 1m intervals. Geostatistical analysis was completed
to determine top cut of grades. A Dynamic Anisotropy Modelling methodology was adopted with inverse
distance squared for grade estimation.
Model validation has been carried out by comparison of average grades of models and drill hole data,
visual examination of models vs drill hole data on section and plan, and swathe plots. All methods have
shown good agreement between models and data.
The Mineral Resources have been classified in the Indicated and Inferred categories, in accordance with
the 2012 Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC Code).
A range of criteria has been considered in determining this classification including:
•
Geological continuity;
•
Data quality;
•
Drill hole spacing;
•
Modelling technique;
•
Estimation properties including search strategy, number of informing data and average distance of data
from blocks.
Financial Statements
Pg. 30
Other Projects
The Company actively reviews other projects and tenements for acquisition and development within the
Leonora–Laverton region.
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 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.
Corporate
For the purpose of Section 6 of the Appendix 5B, all payments made to related parties have been paid in
relation to director fees.
Argonaut PCF appointed as debt advisor for the Lady Julie Gold Project (MAU ASX Release 24
June 2024)
Magnetic announced the appointment of highly experienced Perth-based corporate advisor Argonaut PCF
Limited as debt advisor for its 100% owned Lady Julie Gold Project.
Argonaut PCF has a strong background in the gold sector as a corporate advisory firm with a 20-year
history in the metals & mining sector, including extensive experience in Western Australia’s gold sector.
Argonaut PCF has strong experience in financial advisory roles for gold sector clients, working with the
clients’ core transaction team in optimising the capital and funding structure for successful project
execution.
Magnetic continues to advance discussions with several parties currently in its data room who have shown
interest in the Lady Julie Gold project. The Company has also received several unsolicited inbound
enquiries from potential financiers.
As a result, Magnetic engaged Argonaut PCF to support the Company in structuring and securing
financing for the Lady Julie Gold Project and supporting Magnetic with key decision making. The
appointment is on normal commercial terms for a transaction of this nature.
The strong interest follows the Company releasing a Prefeasibility Study in March 2024 which
demonstrated that the Lady Julie Gold Project is one of the highest margins, undeveloped gold projects
in Australia. The project’s low-cost profile and strong financial return metrics are primarily driven by the
near-surface, high-grade nature of the Lady Julie Central and Lady Julie North 4 deposits. This low-cost
profile places the project in the bottom half of the cost curve of gold producers in Australia.
This announcement has been authorised for release by Managing Director George Sakalidis.
For more information on the company visit www.magres.com.au
George Sakalidis
Managing Director
Phone (08) 9226 1777
Mobile 0411 640 337
Email george@magres.com.au
The information in this report is based on information compiled by George Sakalidis BSc (Hons), who is a member of the Australasian Institute of Mining
and Metallurgy. George Sakalidis is a Director of Magnetic Resources NL. George Sakalidis has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the
2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. George Sakalidis consents to the
inclusion of this information in the form and context in which it appears in this report.
Financial Statements
Pg. 31
Tenement Schedule in accordance with ASX Listing Rule5.3.3
Tenements held at the end of the Quarter
Location
Tenement
Nature of
Interest
Project
Equity (%) held at
start of Quarter
Equity (%) held at end of
Quarter
WA
E70/3536
Granted
JUBUK
-
1% Royalty Retained
WA
E70/4243
Granted
RAGGED ROCK
-
1% Royalty Retained
WA
E70/4508
Granted
KAURING
-
1% Royalty Retained
WA
E70/5276
Granted
KAURING
-
1% Royalty Retained
WA
E70/5277
Granted
KAURING
-
1% Royalty Retained
WA
E37/1331
Granted
MALCOLM
-
2% Royalty Retained
WA
E37/1419
Granted
MALCOLM
-
2% Royalty Retained
WA
E37/1367
Granted
MELITA
-
2% Royalty Retained
WA
P37/8905
Granted
RAESIDE EAST
-
2% Royalty Retained
WA
P37/8906
Granted
RAESIDE EAST
-
2% Royalty Retained
WA
P37/8907
Granted
RAESIDE EAST
-
2% Royalty Retained
WA
P37/8908
Granted
RAESIDE EAST
-
2% Royalty Retained
WA
P37/8909
Granted
BRAISER
-
2% Royalty Retained
WA
P37/8910
Granted
BRAISER
-
2% Royalty Retained
WA
P37/8911
Granted
BRAISER
-
2% Royalty Retained
WA
P37/8912
Granted
BRAISER
-
2% Royalty Retained
WA
P37/9204
Granted
MALCOLM
-
2% Royalty Retained
WA
P37/9205
Granted
MALCOLM
-
2% Royalty Retained
WA
P37/9206
Granted
MALCOLM
-
2% Royalty Retained
WA
P37/9207
Granted
MALCOLM
-
2% Royalty Retained
WA
E37/1177
Granted
MERTONDALE
100%
100%
WA
E37/1258
Granted
MERTONDALE
100%
100%
WA
P37/8687
Granted
CHRISTMAS WELL
100%
100%
WA
P37/8688
Granted
CHRISTMAS WELL
100%
100%
WA
P37/8689
Granted
CHRISTMAS WELL
100%
100%
WA
P37/8690
Granted
CHRISTMAS WELL
100%
100%
WA
P37/8693
Granted
CHRISTMAS WELL
100%
100%
WA
P37/8694
Granted
CHRISTMAS WELL
100%
100%
WA
E38/3100
Granted
MT JUMBO
100%
100%
WA
E38/3127
Granted
HAWKS NEST
100%
100%
WA
E38/3205
Granted
HAWKS NEST EAST
100%
100%
WA
E38/3209
Granted
MT AJAX
100%
100%
WA
M38/1041
Granted
NICHOLSON WELL
100%
100%
WA
P38/4205
Granted
LADY JULIE WEST
100%
100%
WA
P38/4126
Granted
HUNTERS REST
100%
100%
WA
P38/4170
Granted
DEFIANT BORE
100%
100%
WA
P38/4317
Granted
MT JUMBO EAST
100%
100%
WA
P38/4318
Granted
MT JUMBO EAST
100%
100%
WA
P38/4319
Granted
MT JUMBO EAST
100%
100%
WA
P38/4320
Granted
MT JUMBO EAST
100%
100%
WA
P38/4321
Granted
MT JUMBO EAST
100%
100%
WA
P38/4322
Granted
MT JUMBO EAST
100%
100%
WA
P38/4323
Granted
MT JUMBO EAST
100%
100%
WA
P38/4324
Granted
MT JUMBO EAST
100%
100%
WA
P38/4346
Granted
LADY JULIE
100%
100%
WA
P38/4379
Granted
LADY JULIE
100%
100%
Financial Statements
Pg. 32
Location
Tenement
Nature of
Interest
Project
Equity (%) held at
start of Quarter
Equity (%) held at end of
Quarter
WA
P38/4380
Granted
LADY JULIE
100%
100%
WA
P38/4381
Granted
LADY JULIE
100%
100%
WA
P38/4382
Granted
LADY JULIE
100%
100%
WA
P38/4383
Granted
LADY JULIE
100%
100%
WA
P38/4384
Granted
LADY JULIE
100%
100%
WA
P39/5455
Granted
HOMEWARD BOUND SOUTH
100%
100%
WA
P39/5928
Granted
HOMEWARD BOUND SOUTH
100%
100%
WA
P39/5929
Granted
HOMEWARD BOUND SOUTH
100%
100%
WA
P39/5932
Granted
HOMEWARD BOUND SOUTH
100%
100%
WA
P39/5933
Granted
HOMEWARD BOUND SOUTH
100%
100%
WA
P39/5934
Granted
HOMEWARD BOUND SOUTH
100%
100%
WA
P39/6175
Granted
HOMEWARD BOUND SOUTH
100%
100%
WA
E39/2125
Granted
LITTLE WELL
100%
100%
WA
P39/6134
Granted
LITTLE WELL
100%
100%
WA
P39/6135
Granted
LITTLE WELL
100%
100%
WA
P39/6136
Granted
LITTLE WELL
100%
100%
WA
P39/6137
Granted
LITTLE WELL
100%
100%
WA
P39/6138
Granted
LITTLE WELL
100%
100%
WA
P39/6139
Granted
LITTLE WELL
100%
100%
WA
P39/6140
Granted
LITTLE WELL
100%
100%
WA
P39/6141
Granted
LITTLE WELL
100%
100%
WA
P39/6142
Granted
LITTLE WELL
100%
100%
WA
P39/6143
Granted
LITTLE WELL
100%
100%
WA
P39/6144
Granted
LITTLE WELL
100%
100%
WA
E70/5534
Granted
TRAYNING
100%
100%
WA
E70/5537
Granted
BENJABERRING
100%
100%
WA
E70/5538
Granted
GODDARD
100%
100%
WA
E70/5771
Granted
KORRELOCKING
100%
100%
WA
M38/1315
Application
LADY JULIE NORTH 4
0%
100% pending grant
WA
P38/4581
Application
LADY JULIE NORTH 4 NE
0%
100% pending grant
Tenements acquired in the quarter
WA
P38/4205
Granted
LADY JULIE WEST
0%
100%
Tenements surrendered in the quarter
WA
E70/6304
Dead
TRAYINING WEST
100%
0%
WA
E70/6305
Dead
KOORDA
100%
0%
Financial Statements
Pg. 33
Directors Report
Your directors present their report on the Company for the year ended 30 June 2024
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 $12,340,734 (2023: $7,135,716).
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 5.29 cents (2023: 3.13 cents). Diluted Loss per
share in respect of both years ended 30 June 2024 and 30 June 2023 was the same as the Basic
Loss per share.
Financial Position
The Company’s cash position as at 30 June 2024 was $9,221,563, an increase from the 30 June
2023 cash balance which was $4,102,162. 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
Following the year end, the Company announced an increase in the resource size of its gold projects on
2 July 2024.
On 5 August 2024, the Company announced an update on the economics of its gold projects.
Financial Statements
Pg. 34
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 2,400,000 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.
Financial Statements
Pg. 35
Mr Sakalidis has a relevant interest in 8,052,892 ordinary fully paid shares, 3,135,714 contributing
shares and 4,800,000 options to acquire fully paid ordinary shares.
Throughout the past three years he has served as a director of the following listed companies:
Image Resources NL – appointed 2002, resigned 29 May 2020.
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 30,164,538 ordinary fully paid shares and 1,685,185 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 2,100,000 options.
Mr Donovan has held dictatorships with the following companies during the last 3 years:
o Tambourah Metals Ltd (ASX:TMB) – appointed 16 June 2021 – resigned 17 February 2023
o Basin Energy Limited (ASX:BSN) – appointed 13 April 2022 – resigned 23 August 2024
o Kooneberry Gold Limited (ASX:KNB) – appointed 28 November 21 – resigned 22 August 2022
Financial Statements
Pg. 36
Audit Committee
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
2
2
Eric Lim
2
2
Benjamin Donovan
2
2
Hian Siang Chan
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:
Eligible to
Attend
Attended
George Sakalidis
7
7
Eric Lim
7
7
Benjamin Donovan
7
7
Hian Siang Chan
7
7
*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:
Key
Management
Person
Position
Eric Lim
Non-Executive Chairman
George Sakalidis
Managing Director
Benjamin Donovan
Non-Executive Director
Hian Siang Chan
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:
Financial Statements
Pg. 37
• 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.
Financial Statements
Pg. 38
Use of Remuneration Consultants
The Company did not employ the services of any remuneration consultant during the financial year
ended 30 June 2024.
Key Management Personnel Remuneration for 30 June 2024
Key Management Personnel Remuneration for 30 June 2023
Key
Management
Personnel
Short-term
benefits Fees &
contractual
payments
($)
Employment
benefits
($)
Post-employment
benefits Statutory
superannuation
($)
Cash settled
share based
payments
($)
Equity settled
Share Based
Payments
($)
Total
($)
Eric Lim
60,835
-
-
-
227,250
288,085
George Sakalidis
439,058
28,631
48,296
-
454,500
970,485
Benjamin Donovan
148,543
-
2,872
-
227,250
378,665
Hian Siang Chan
60,835
-
-
-
227,250
288,085
Total
709,271
28,631
51,168
-
1,136,250
1,925,320
Key
Management
Personnel
Short-term
benefits Fees &
contractual
payments
($)
Employment
benefits
($)
Post-employment
benefits Statutory
superannuation
($)
Cash settled
share based
payments
($)
Equity settled
Share Based
Payments
($)
Total
($)
Eric Lim
52,900
-
-
-
150,917
203,817
George Sakalidis
323,064
173,850
35,431
-
301,832
834,177
Benjamin Donovan
24,000
-
2,520
-
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
Financial Statements
Pg. 39
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 2023 / 2024
Remuneration related to
performance (other than
options issued)
Proportion of
2022/ 2023
Remuneration
not related to
performance
(Fixed
salary/fees)
Non-cash
salary-
based
incentives
Shares / units
Eric Lim
Non-Executive
Director
No fixed term
-
-
100%
George Sakalidis
Managing Director
No fixed term
2 months’ notice
required to
terminate
-
-
100%
Benjamin Donovan
Non-Executive
Director
No fixed term
-
-
100%
Hian Siang Chan
Non-Executive
Director
No fixed term
-
-
100%
The employment terms and conditions of all KMP are formalized in the 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):
Financial Statements
Pg. 40
Options held by Key Management Personnel:
30 June 2024:
Name
Balance at
the
beginning
of the year
Grant Details
Exercised during the
year
Lapsed
Other
changes
during
the year
Balance
at the end
of the
year
Issue
Date
No.
Value
$
No.
Value
$
No.
Eric Lim
1,650,000
6/12/2023
750,000
227,250
-
-
-
-
2,400,000
George
Sakalidis
3,300,000
6/12/2023
1,500,000
454,500
-
-
-
-
4,800,000
Benjamin
Donovan
1,350,000
6/12/2023
750,000
227,250
-
-
-
-
2,100,000
Hian Siang
Chan
750,000
6/12/2023
750,000
227,250
(14,815)
(10,074)
-
185,185
1,670,370
Total
7,050,000
-
3,750,000
1,136,250 (14,815)
(10,074)
-
185,185
10,970,370
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 2024:
Name
Balance at the
start of the year
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
Eric Lim
Ordinary shares
Contributing shares
9,790,206
-
-
-
-
-
-
-
9,790,206
-
George Sakalidis
Ordinary shares
Contributing shares
8,052,892
3,135,714
-
-
-
-
-
8,052,892
3,135,714
Benjamin Donovan
Ordinary shares
Contributing shares
19,047
60,000
-
-
-
-
-
-
19,047
60,000
Hian Siang Chan
Ordinary Shares
Contributing shares
29,608,982
-
-
-
-
-
555,556
-
30,164,538
-
Total Ordinary shares
Total Contributing shares
47,471,127
3,195,714
-
-
-
-
555,556
-
48,026,683
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. 41
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 2023, Mr Lim and Mr Chan have entered into a director’s contract where they are paid
$60,835 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 favorable 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
9,790,206
-
2,400,000
George Sakalidis
8,052,892
3,135,714
4,800,000
Benjamin Donovan
19,047
60,000
2,100,000
Hian Siang Chan
30,164,538
-
1,670,370
Total
48,026,683
3,195,714
10,970,370
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 2024, aside from directors who are for tax purposes treated as employees, the
Company’s only other employees were part-time or casual staff. The same position prevailed at 30
June 2023.
Financial Statements
Pg. 42
Corporate Structure
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.
•
Continuing to educate the market and investors on Podium,
platinum group metals and its link with decarbonization.
•
Preserving cash where possible.
Major safety incident
•
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.
Processing technology
impacts economic viability
•
Engagement of mineral processing experts and advisors.
•
Technical panel overview and support.
•
Employing and retaining experienced technical people.
•
Actively managing deliverables and milestones.
Loss or
tenement
s
forfeiture of key
•
Maintaining a compliance register and system to meet key tenement.
conditions.
Major compliance breach
•
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.
Material cultural heritage
breach
•
Maintaining communications and relationships with traditional owners
and community.
•
Undertake cultural heritage surveys to obtain clearance and
understand areas of significance.
Loss of key personnel
•
Multi-level engagement with key partners, suppliers and shareholders.
•
Central access to data, information and reports.
Financial Statements
Pg. 43
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
$28,915 (2023: $27,114) 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
• 1,645,205 options to acquire fully paid shares exercisable at $0.68 on or by 10 May 2025
• 3,750,000 option to acquire fully paid shares exercisable at $1.53 on or before 6 December
2026
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.
Financial Statements
Pg. 44
Non-audit Services
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
30 September 2024
Auditor's Independence Declaration
To those charged with governance of Magnetic Resources NL
As auditor for the audit of Magnetic Resources NL for the year ended 30 June 2024, I declare that, to the best of
my knowledge and belief, there have been:
•
no contraventions of the independence requirements of the Corporations Act 2001 in relation to the audit;
and
•
no contraventions of any applicable code of professional conduct in relation to the audit.
Elderton Audit Pty Ltd
Sajjad Cheema
Director
Perth
30th September 2024
Financial Statements
Pg. 46
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
Financial Statements
Pg. 47
Website Disclosures
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
b) 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:
Financial Statements
Pg. 48
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) 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
2) 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
Financial Statements
Pg. 49
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
Position
Independent
Appointed
Mr Eric Lim
Non-Executive Chairman
Yes
23/8/2011
Mr George Sakalidis
Executive Director
No
29/1/2016
Mr Benjamin Donovan
Non-Executive Director
Yes
28/03/2022
Mr Hian Siang Chan
Non-Executive Director
No
23/2/2020
An independent Director is defined as a Non-Executive Director and.
•
Is not a substantial shareholder of the Company or an officer of or directly or indirectly associated with a
substantial shareholder of the Company within the last 3 years, or if they have been, they have been assessed
by the Board to now be independent.
•
Within the last three years has not been employed in an executive capacity by the Company or been a director
after ceasing to hold any such employment.
•
Within the past three years has not been a principal of a material professional advisor or a material consultant
to the Company or an employee associated with a such a material service provider or advisor; and,
•
Does not have a material contractual relationship with the Company other than as a Director of the Company.
Disclosure:
The Board comprises four Directors, with Mr Sakalidis as an executive director, and Mr Lim 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.
Financial Statements
Pg. 50
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.
Financial Statements
Pg. 51
Disclosure:
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:
Financial Statements
Pg. 52
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.
Financial Statements
Pg. 53
Recommendation 5.2
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.
Financial Statements
Pg. 54
Disclosure:
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) the Board has adopted a compliance procedure for the purpose of ensuring compliance with the Group's
continuous disclosure obligations; and
3) 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.
Financial Statements
Pg. 55
Recommendation 7.3
A listed entity should disclose:
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.
Financial Statements
Pg. 56
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.
Financial Statements
Pg. 57
Financial Statement
Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 June 2024
Notes
2024
($)
2023
($)
Revenue:
Interest income
62
31
Tenement sold
502,973
-
Tribute gold sales
-
-
Profit on disposal of fixed asset
-
-
Other revenue
3
-
480
Expenses:
Depreciation expense
11
(4,512)
(27,713)
Directors’ Remuneration
5
(842,066)
(668,575)
Exploration and tenement expenses
3
(9,318,267)
(4,487,737)
Employee Remuneration
(293,362)
(260,508)
Share based payment expenses
5/20
(1,475,883)
(754,583)
Loss on Disposal of Fixed assets
(2,449)
-
Other expenses
3
(907,230)
(937,112)
(Loss) before income tax expense
(12,340,734)
(7,135,716)
Income tax expense
4
-
-
(Loss) from continuing operations
(12,340,734)
(7,135,716)
Other comprehensive (loss) for the year, net of tax
(Changes in the Fair Value of financial assets)
12
(32,295)
(54,656)
Total comprehensive loss for the year
(12,373,029)
(7,190,372)
Total comprehensive loss for year attributable to
members of the Company
(12,373,029)
(7,190,372)
Basic (loss) per share (cents per share)
7
(5.29)
(3.13)
Diluted (loss) per share (cents per share)
7
(4.98)
(3.13)
Financial Statements
Pg. 58
Statement of Financial Position
As at 30 June 2024
Notes
2024
($)
2023
($)
Current Assets
Cash and cash equivalents
8
9,221,563
4,102,162
Trade and other receivables
9
347,532
179,667
Other assets
10
8,196
20,123
Total Current Assets
9,577,291
4,301,952
Non-Current Assets
Property, plant and equipment
11
24,361
19,833
Other financial assets
12
136,524
168,819
Total non-Current Assets
160,885
188,652
TOTAL ASSETS
9,738,176
4,490,604
Current Liabilities
Trade and other payables
13
626,945
565,948
Leave liabilities
15
258,818
220,847
Total Current Liabilities
885,763
786,795
TOTAL LIABILITIES
885,763
786,795
NET ASSETS
8,852,413
3,703,809
Equity
Contributed equity
14
67,959,433
51,391,366
Share based payments Reserve
14
4,226,318
3,088,829
Accumulated (losses)
(63,189,129)
(50,907,672)
FVOCI Reserve
(151,009)
(118,714)
AAIS Reserve
14
6800
250,000
TOTAL EQUITY
8,852,413
3,703,809
The accompanying notes form part of these financial statements
Financial Statements
Pg. 59
Statement of Changes in Equity
For the Year ended 30 June 2024
The accompanying notes form part of these financial statements.
Note
Contributed
Equity (Net
of Costs)
($)
Share Based
Payments
($)
FVOCI
Reserve
($)
AAIS
Reserve
($)
Accumulated
Losses
($)
Total
($)
Balance at 1 July 2022
43,446,485
2,571,878
(64,058)
-
(43,771,956)
2,182,350
Comprehensive income
-
-
-
-
-
-
Operating (loss) for the year
-
-
-
-
(7,135,716)
(7,135,716)
Other comprehensive (loss) for the year
-
-
(54,656)
-
-
(54,656)
Total comprehensive loss for the year
-
-
(54,656)
-
(7,135,716)
(7,190,372)
Transactions with owners, in their capacity as
owners, and other transfers
Shares issued during the year
14
8,316,080
(237,632)
-
-
-
8,078,448
Shares to be Issued
14
-
-
-
250,000
-
250,000
Capital raising costs
14
(371,199)
-
-
-
-
(371,199)
Share based payment
14
-
754,583
-
-
-
754,583
Total transactions with owners and other transfers
7,944,881
516,951
-
250,000
-
8,711,826
Balance at 30 June 2023
51,391,366
3,088,829
(118,714)
250,000
(50,907,672)
3,703,809
Balance at 1 July 2023
51,391,366
3,088,829
(118,714)
250,000
(50,907,672)
3,703,809
Comprehensive income:
Operating (loss) for the year
-
-
-
-
(12,340,734)
(12,340,734)
Other comprehensive (loss) for the year
Prior Period Adjustment
-
-
-
-
(32,295)
-
-
-
-
59,277
(32,295)
59,277
Total comprehensive loss for the year
-
-
(32,295)
-
(12,281,457)
(12,313,752)
Transactions with owners, in their capacity as
owners, and other transfers
Shares issued during the year
14
17,390,759
-
-
(250,000)
-
17,140,759
Options converted to shares
14
10,074
-
-
6,800
-
16,874
Capital raising costs
14
(832,766)
-
-
-
-
(832,766)
Share based payments
14
-
1,137,489
-
-
-
1,137,489
Total minor transactions with owners and other
transfers
16,568,067
1,137,489
-
(243,200)
-
17,462,356
Balance at 30 June 2024
67,959,433
4,226,318
(151,009)
6,800
(63,189,129)
8,852,413
Financial Statements
Pg. 60
The accompanying notes form part of these financial statements.
Statement of Cash Flows
For the year ended 30 June 2024
Notes
2024
($)
2023
($)
CASH FLOWS FROM OPERATING ACTIVITIES
-
-
Cash payments to suppliers and contractors
(2,038,374)
(1,325,293)
Interest received
30
(1)
Sundry Income
0
(2,766)
Government grants received
0
-
CASH FLOWS FROM OPERATING ACTIVITIES
16
(2,038,344)
(1,328,060)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of plant and equipment
(11,488)
-
Payments for exploration and evaluation
(9,292,709)
(4,552,878)
Purchase of new tenements
(27,500)
-
Proceeds from disposal of Plant
-
-
Proceeds of Dividends
-
-
Proceeds from Sale of Tenements
502,973
-
Net cash (used in) investing activities
(8,828,724)
(4,552,878)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from new issues of shares and Share Based Payments
16,819,235
8,328,449
Capital raising costs
14
(832,766)
(371,203)
Repayment of lease liabilities
0
(3,981)
Net cash provided by financing activities
15,986,469
7,953,265
Net (decrease)/increase in cash held
5,119,401
2,072,327
Cash and cash equivalents at the beginning of the financial year
4,102,162
2,029,835
Cash and cash equivalents at the end of the financial year
8
9,221,563
4,102,162
Financial Statements
Pg. 61
Notes to the Financial Statements
For the year ended 30 June 2024
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 authorized for issue on 27 September 2024
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 $9,221 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.
Consolidated Entity and Disclosure statements
Magnetic Resources NL has no controlled entities and therefore the Financial Statements are single entity Financial
Statements. As a result, there is no consolidated entity disclosure information to disclose.
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.
Financial Statements
Pg. 62
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.
iv.
Acquisition of Assets
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.
Financial Statements
Pg. 63
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.
Financial Statements
Pg. 64
(k) Financial
Instruments Financial
instruments
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.
Financial Statements
Pg. 65
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.
Financial Statements
Pg. 66
Taxation
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.
Financial Statements
Pg. 67
(u) Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the
present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in
the lease or, if that rate cannot be readily determined, the 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
2024
($)
2023
($)
Other Income
Sundry Income
-
480
Dividend Income
-
Government grants
-
-
-
480
Other Expenses
Occupancy costs
(47,145)
(51,563)
Filing and ASX fees
(132,481)
(109,778)
Other expenses from continuing operations
(727,604)
(775,770)
(907,230)
(937,111)
Exploration and Tenement Expenses
Exploration expenditure incurred
(9,318,267)
(4,487,737)
Acquisition of tenements
(27,500)
-
(9,345,767)
(4,487,737)
Financial Statements
Pg. 68
Unrecognized deferred tax assets
The Company has accumulated tax losses of $56,232,057 (2023: $45,444,086)
The potential deferred tax asset of these losses $14,058,014 (2023: $11,361,021) will only be recognized if:
(i)
the Company derives future assessable income of a nature and of an amount sufficient to enable the benefit from the
losses and deductions to be released.
(ii)
the Company continues to comply with the conditions for deductibility imposed by the law; and
(iii) no changes in tax legislation adversely affect the Company in realizing the benefit from the deductions for the losses.
NOTE 4. INCOME TAX EXPENSE
2024
($)
2023
($)
The components of tax expense comprise:
-
-
Current tax
-
-
Deferred tax asset/liability
-
-
-
-
The prima facie tax on loss from ordinary activities before income tax
is reconciled to income tax as follows:
Total comprehensive loss for the year before income tax
12,340,734
7,135,716
Prima facie tax benefit attributable to loss from continuing operations
before income tax at 25% (25% 2023)
3,085,183
1,783,929
•
Other
Deferred tax benefit on tax losses not brought to account
3,085,183
1,783,929
Income tax attributable to operating loss
-
-
Unrecognized temporary differences
Net deferred tax assets (calculated at 25%) have not been recognized in
respect of the following items:
Accrued expenses
-
-
Available-for-sale financial assets loss
-
-
Unrecognized deferred tax assets relating to the above temporary
differences
-
-
-
-
Financial Statements
Pg. 69
NOTE 5. KEY MANAGEMENT PERSONNEL COMPENSATION
2024
($)
2023
($)
Short-term employee benefits
709,271
456,544
Post-employment benefits
51,168
38,171
Employment
28,631
173,850
Provisions
-
-
Share Based Payments
1,136,250
754,583
1,925,320
1,423,158
Further key management personnel remuneration information has been included in the Remuneration Report section of the Directors
Report. Information on related party and entity transactions is disclosed in Note 20.
NOTE 6.
AUDITORS REMUNERATION
Amounts received or due and receivable by the auditors of the Company for:
2024
($)
2023
($)
Auditing and reviewing the financial report
21,670
28,155
Other
-
-
21,670
28,155
NOTE 7.
EARNINGS PER SHARE
The following reflects the earnings and share data used in the calculation of
basic and diluted earnings per share
2024
($)
2023
($)
Loss for the year
(12,340,734)
(7,135,716)
Weighted average number of ordinary shares used in calculating basic and
diluted earnings per share
233,669,534
229,325,275
The Company had 20,418,862 partly paid contributing shares and 14,786,872 options over fully paid ordinary shares on
issue at balance date. Options and contributing shares are considered to be potential ordinary shares. However, they are not
considered to be dilutive this year and accordingly have not been included in the determination of diluted earnings per share.
NOTE 8.
CASH AND CASH EQUIVALENTS
2024
($)
2023
($)
Cash at bank
9,196,737
4,077,336
Deposits at call
24,826
24,826
9,221,563
4,102,162
NOTE 9.
TRADE AND OTHER RECEIVABLES
2024
($)
2023
($)
Other receivables
8,552
6,532
GST refundable
338,980
173,135
347,532
179,667
NOTE 10.
OTHER ASSETS
2024
($)
2023
($)
Prepayments
8,196
20,123
Financial Statements
Pg. 70
NOTE 11. PROPERTIES, PLANT, EQUIPMENT
2024
($)
2023
($)
Plant and equipment
143,859
141,211
Less: Accumulated depreciation
(119,498)
(121,378)
24,361
18,833
Motor vehicles
161,285
161,285
Less: Accumulated depreciation
(161,285)
(161,285)
0
0
24,361
19,833
Reconciliation of the carrying amounts of plant, equipment and motor vehicles from the beginning to the end of the financial year.
Carrying amount at beginning of year
19,833
46,510
Additions
11,487
1,036
Disposals
(2,447)
-
Depreciation expense
(4,512)
(27,713)
Total plant, equipment and motor vehicles at end of year
24,361
19,833
NOTE 12.
OTHER FINANCIAL ASSETS
2024
($)
2023
($)
Non-Current
Financial assets at fair value through other comprehensive income – shares in
136,524
168,819
Opening Balance
168,819
223,475
Additions
0
0
Increase/ (Decrease) in Market Value
(32,295)
(54,656)
Closing Balance
136,524
168,819
Investments in related parties
Financial assets at fair value through other comprehensive income includes
Image Resources NL
23,038
27,456
Meteoric Resources NL
31,000
41,000
54,038
68,456
NOTE 13.
TRADE AND OTHER PAYABLES
2024
($)
2023
($)
Trade creditors and accruals
577,291
540,828
PAYG Withholding & Superannuation Payable
49,654
25,120
626,945
565,948
Financial Statements
Pg. 71
NOTE 14
EQUITY
Contributed Equity – Ordinary Shares
2024
2023
No.
$
No.
$
At the beginning of year
236,954,035
51,391,362
224,342,819
43,446,485
Placement of Shares at $0.72c
6,669,945
4,802,370
Shares issued to Contractors at $0.70 and $0.85
472,909
338,393
Options Converted to Shares at $0.68
14,815
10,074
Shares issued to Directors at $0.45
555,556
250,000
Placement of shares to Clients of Argonaut and Ord Minnett
13,333,333
12,000,000
Placement of Shares at $1.05
800,285
840,299
Placement of Shares at $1.42
167,340
237,623
Placement of Shares at $0.90
3,157,053
2,841,348
Transfer from Share Based Benefits Reserve
Placement of Shares at $0.92 for Drilling Services
125,839
115,771
Placement of Shares at $1.05 and $0.90 to the Directors
919,045
864,998
Placement of Shares at $0.45 each
6,649,506
2,992,277
Placement of Shares at $0.56, $0.50,$0.49 and $0.52 for
792,148
423,763
Broker / Share and Option issuance costs
-
(832,766)
(371,202)
Closing balance:
258,000,593
67,959,433
236,954,035
51,391,362
Contributed Equity – Contributing Shares – Partly-paid
2024
2023
No.
$
No.
$
At the beginning of year
20,418,862
-
20,418,862
-
Shares issued during the year at $Nil
Closing balance:
20,418,862
-
20,418,862
-
Reserves
Share based benefits reserve (i)
4,226,318
-
3,088,829
-
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 were to be issued
in November 2023 and $6,800 was received in December 2023 as a result of the exercise of options
Financial Statements
Pg. 72
Note 14 – Cont’d
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 $0.20 to become fully paid.
On a show of hands, every holder of contributing shares present at a meeting in person or by proxy, is entitled to one
vote and upon a poll, each member present in person or by proxy or by attorney or duly authorised representative shall
have a fraction of a vote for each partly paid contributing share held. The fraction must be equivalent to the proportion
which any amount paid (not credited) is of the total amounts paid (if any) and payable (excluding amounts credited).
Any amounts paid in advance of a call are ignored when calculating these fractional voting rights
NOTE 15 Employee Benefits
Provision is made for the Company’s Liability for employee benefits arising from services rendered to employees to
balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts
expected to be paid when the liability is settled.
NOTE 16
CASH FLOW INFORMATION
2024
($)
2023
($)
Reconciliation of operating loss after income tax with funds used in operating activities
Operating (loss) after income tax
(12,340,734)
(7,190,372)
Depreciation and amortization
4512
27,713
Sale of tenement
-
-
Exploration and Other expenditure
10,390,404
5,869,499
Other expenditure
-
(283,584)
Loss on sale of fixed assets
2447
Interest accrual
(32)
(32)
Changes in operating assets and liabilities:
Decrease/(increase) in trade and other receivables relating to operating activities
(167,865)
7637
Decrease/(increase) in prepayments
11,927
47,307
Increase/(decrease) in trade and other payables relating to operating activities
60,997
193,771
Cash flow from operations
(2,038,344)
(1,328,060)
Options
2024
2023
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)
3,750,000
3,750,000
Options to acquire fully paid shares exercisable at $1.515 on or by 10 May 2025
2,386,872
2,216,502
Option to acquire fully paid shares exercisable at $1.53 on or before 6 December 2023
3,750,000
-
Total Options
14,786,872
10,866,502
A reconciliation of the total options on issue as at 30 June is as follows:
At 1 July 2023
10,866,502
4,900,000
Options Converted During the year
(14,815)
-
Options Issued during the year.
3,935,185
5,966,502
At 30 June 2024
14,786,872
10,866,502
Financial Statements
Pg. 73
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 $738,540
(2023 $689,449) .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
Following the year end, the Company announced an increase in the resource size of its gold projects on 2 July 2024. On 5
August 2024, the Company announced an update on the economics of its gold projects.
Financial Statements
Pg. 74
NOTE 20
SHARE BASED PAYMENTS
In the 2024 financial year 3,750,000 options were granted to Key Management Personnel (“KMP”), employees and
contractors following approval at the AGM on 30 November 2023. The options were issued with an exercise price of $1.53
and expiry of 6 December 2026.The options vested immediately and a total of $1,136,250 was expensed.
The options in the 2024 financial year were issued to KMP, employees and contractors as follows:
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 Tate
Fair Value at
Grant Date
6/12/2023
06/12/2026
$1.06
$1.53
54.5%
-
3.88%
$0.3033
Total Expense
2024
2023
Total expense recognized as key management personnel expenses
1,136,250
754,583
Total expense recognised as contractors’ expenses
339,633
539,537
1,475,883
1,294,120
NOTE 21 RELATED ENTITY AND RELATED ENTITY TRANSACTIONS
Particulars of contractual arrangements and financial benefits provided to the key management personnel are
detailed in the directors’ report.
Transactions with directors, director-related parties and related entities other than those disclosed elsewhere in
this
financial
report are
as follows:
Key Management Personnel:
Options
George Sakalidis
1,500,000
Eric Lim
750,000
Hiam Cham
750,000
Ben Donovan
750,000
TOTAL
3,750,000
Investments in related parties
Financial assets at fair value through other comprehensive income includes the
following investments held in director-related party entities:
2024
($)
2023
($)
Image Resources NL
23,038
27,456
Meteoric Resources NL
31,000
41,000
TOTAL
54,038
68,456
Financial Statements
Pg. 75
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)
identifying all and only the indigenous peoples with a relevant interest.
(b)
registering an indigenous land use agreement.
(c)
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)
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);
(b)
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.
Financial Statements
Pg. 76
Freehold Access
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
CONTINGENT ASSETS
Tenement Sales Agreement
The following relates to a contingent consideration in terms of the sale of tenements agreement for tenements (Jubuk
– E70/3536, Ragged Rock E70/4243, Kauring – E70/4508, Kauring – E70/4528, Mt Joy – E70/4692) sold in July 2017:
(a)
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).
(b)
The Milestone Payment is conditional on the following conditions precedent being satisfied or waived before
the third anniversary of the Effective Date:
(i)
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.
(ii)
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;
(iii)
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
(iv)
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).
(c)
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.
(d)
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)
the condition in clause (b) is satisfied; and
(B)
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).
Financial Statements
Pg. 77
(ii)
And 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)
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.
(g)
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 totaling $1,000,000 under this agreement to date.
NOTE 25
FINANCIAL INSTRUMENTS DISCLOSURE
(a) Financial Risk Management Policies
The Company’s financial instruments consist of deposits with banks, receivables, available-for-sale financial assets and
payables.
Risk management policies are approved and reviewed by the board. The use of hedging derivative instruments is not
contemplated at this stage of the Company’s development.
Specific Financial Risk Exposure and Management
The main risks the Company is exposed to through its financial instruments are interest rate and liquidity risks.
Interest Rate Risk
Exposure to interest rate risk arises on financial assets and financial liabilities recognised at reporting date whereby a
future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments.
Financial Statements
Pg. 78
Liquidity Risk
The Company manages liquidity risk by monitoring forecast cash flows, cash reserves, liquid investments, receivables
and payables.
Capital Risk
The Company’s objectives when managing capital are to safeguard their ability to continue as a going concern so that
they may continue to provide returns for shareholders and benefits for other stakeholders.
Due to the nature of the Company’s activities, including mineral exploration, the Company does not have ready access to
credit facilities, with the primary source of funding being equity raising. Therefore, the focus of the Company’s capital risk
management is the current working capital position against the requirements of the Company to meet exploration programs
and corporate overheads. The Company’s strategy is to ensure appropriate liquidity is maintained to meet anticipated
operating requirements, with a view to initiating appropriate capital raising as required.
The working capital position of the Company at 30 June 2024 and 30 June 2023 was as follows:
2024($)
2023($)
Cash and cash equivalents
9,221,563
4,102,161
Trade and other receivables
347,532
179,666
Trade and other payables
(626,945)
(565,948)
Working capital position
8,942,150
3,715,879
Credit Risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to
recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed
in the Statement of Financial Position and notes to the financial statements.
There is no material amounts of collateral held as security at balance date.
The following table provides information regarding the credit risk relating to cash and cash equivalents based on credit
ratings:
The credit risk for counterparties included in trade and other receivables at balance date is detailed below.
Trade and other receivables
2024($)
2023($)
Trade and other receivables
8,554
6,532
GST and tax refundable
338,980
173,134
Working capital position
347,539
179,666
(b) Financial Instruments
The Company holds no derivative instruments, forward exchange contracts or interest rate swaps.
Financial Instrument composition and maturity analysis
The table below reflects the undiscounted contractual settlement terms for financial instruments.
2024($)
2023($)
AAA rated
-
-
AA rated
-
-
A rated
9,221,563
4,102,161
Financial Statements
Pg. 79
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
Level 1
$
Level 2
$
Level 3
$
Total
$
Financial Assets:
Financial assets at fair value through profit or loss:
-
-
-
-
Listed investments
168,818
-
-
168,818
168,818
-
-
168,818
2024
Weighted
Average
Effective
Interest Rate %
Floating
Interest
Rate
($)
Non-
Interest
Bearing
($)
Total
($)
Financial Assets
0.012%
Cash and cash equivalents
9,221,563
-
9,221,563
Other receivables
-
347,532
347,532
Total Financial Assets
9,221,563
347,532
9,569,095
Financial Liabilities
Trade and other payables
-
(626,945)
(626,945)
Net Financial Assets
9,221,563
(279,413)
8,942,150
2024
Level 1
$
Level 2
$
Level 3
$
Total
$
Financial Assets:
Financial assets at fair value through profit or loss:
Listed investments
136,524
-
-
136,524
136,524
-
-
136,524
2023
Weighted
Average
Effective
Interest Rate %
Floating
Interest
Rate
($)
Non-
Interest
Bearing
($)
Total
($)
Financial Assets
0.012%
Cash and cash equivalents
4,102,161
-
4,102,161
Other receivables
-
179,666
179,666
-
168,819
168,819
Total Financial Assets
4,102,161
217,463
4,450,646
Financial Liabilities
Trade and other payables
-
(565,948)
(565,948)
Net Financial Assets
4,102,161
(217,463)
3,884,698
Financial Statements
Pg. 80
(c) Sensitivity Analysis – Interest rate risk
The Company has performed a sensitivity analysis relating to its exposure to interest rate risk at balance date. The
sensitivity analysis demonstrates the effect on the current year results and equity which could result from a change in
this risk.
As at balance date, the effect on loss and equity as a result of changes in the interest rate, with all other variables
remaining constant would be as follows:
2024
($)
2023
($)
Change in loss – increase/(decrease):
Increase in interest rate by 0.1%
(9,221)
(4,102)
Decrease in interest rate by 0.1%
9,221
4,102
Change in equity – increase/(decrease):
Increase in interest rate by 0.1%
(9,221)
(4,102)
Decrease in interest rate by 0.1%
9,221
4,102
Financial Statements
Pg. 81
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
Basis of preparation
The consolidated entity disclosure statement has been prepared in accordance with subsection 295(3A)(a) of the Corporations
Act 2001 (Cth). The entities listed in the statement are Magnetic Resources NL and all the entities it controls in accordance with
AASB 10 Consolidated Financial Statements.
The percentage of share capital disclosed for bodies corporate included in the statement represents the economic interest
consolidated in the consolidated financial statements. In developing the disclosures in the statement, the directors have relied on
the advice provided by management and the Company’s taxation adviser.
The Group’s consolidated entity disclosure statement at 30 June 2024 is set out below
Body corporates
Tax residency
Entity name
Entity type
Trustee,
partner or JV
participant
Place formed
or
Incorporated
% of share
capital held
Australian or
foreign
Foreign
jurisdiction
N/A*
N/A
N/A
N/A
N/A
N/A
N/A
*Magnetic Resources NL has no controlled entities and, therefore, the financial report is a set of single entity financial
statements.
Financial Statements
Pg. 82
DIRECTORS’ DECLARATION
The Directors of Magnetic Resources NL (Company) declare that, as at the date of this declaration:
1)
In the Directors’ opinion, there are reasonable grounds to believe that:
a) The Company will be able to pay its debts as and when they become due and payable.
2)
the financial statements and the notes to the financial statements for the financial year ended 30 June 2024 are in
accordance with the Corporations Act 2001 (Cth) (Corporations Act), including:
a) giving a true and fair view of the company and the consolidated entity’s financial position as at 30 June 2024
and of their performance for the year ended 30 June 2024;
b) complying with the Australian Accounting Standards, the Corporations Regulations 2001 (Cth) and other
mandatory professional reporting requirements; and
c) complying with the International Financial Reporting Standards as issued by the International Accounting
Standards Board.
3)
In the Directors’ opinion, the consolidated entity disclosure statement required by section 295(3A) of the
Corporations Act is true and correct; and
4)
the Directors have been given the declarations required by section 295A of the Corporations Act by the Managing
Director and the Chief Executive Officer for the financial year ended 30 June 2024.
This declaration is made in accordance with a resolution of the Board of Directors.
SIGNED: GEORGE SAKALIDIS
MANAGING DIRECTOR
PERTH
Dated 30 September 2024
Independent Audit Report to the members of Magnetic Resources NL
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Magnetic Resources NL (the Company), which comprises the statement
of financial position as at 30 June 2024, the statement of profit or loss and other comprehensive income, the
statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies, the consolidated entity disclosure statement
and the directors' declaration.
In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act
2001, including:
(i) giving a true and fair view of the Company's financial position as at 30 June 2024 and of its financial
performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described as in the Auditor's Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Company in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards
Board's APES 110 Code of Ethics for Professional Accountants (the code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matter described below to be a key audit matter to be communicated in our report.
K
Expenditure
Refer to total expenditure $12,843,769, accounting policy note 1(iii), and note 3 (other expenses)
Key Audit Matter
How our audit addressed the matter
Expenditure is a substantial figure in the
financial statements of the Company,
representing the majority of shareholder
funds spent during the financial year.
Given this represents a significant volume
of transactions, we considered it necessary
to
assess
whether
the
Company’s
expenses had been accurately recorded,
whether the services provided had been
delivered in the appropriate period, and
whether all expenses related to activities
undertaken by Magnetic Resources NL.
Our audit work included, but was not restricted to, the
following:
• We completed a walkthrough test of the Company’s
expenses system and assessed related controls.
• We selected a sample of expenses using systematic
sampling methods, and vouched each item selected
to invoices and other supporting documentation.
• We reviewed post-year end payments and invoices to
ensure that all goods and services provided during
the financial year were recognised in expenses for
the same period.
• For exploration expenses, we assessed which
tenements the spending related to, to ensure funds
were expended in relation to the Company’s ongoing
projects.
Share Based Payments
Refer to share based payments $1,475,883, note 20
Key Audit Matter
How our audit addressed the matter
During the year, the Company paid $1.47m
share
based
payments
to
Key
Management
Personnel
(KMP)
and
contractors.
Share based payments are considered to
be a key audit matter due to:
•
the value of the transactions;
•
the complexities involved in the
recognition and measurement of
these instruments under AASB 2
Share-based Payment; and
•
judgement involved in determining
the inputs used in the valuations.
Our audit work included, but was not restricted to, the
following:
• We
evaluated
the
competence,
abilities
and
objectivity of valuers.
• We also ensured the accuracy and completeness of
data used and assumptions made for valuations.
• Reviewed the board minutes and ASX to verify the
number
of
options
issued
and
tested
the
reasonableness of the assumptions in the model
being used for valuation.
• We assessed the adequacy of disclosure including
significant assumptions.
Other Information
The directors are responsible for the other information. The other information obtained at the date of this auditor's
report is included in the annual report, but does not include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information obtained prior to the date of this auditor's report,
we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Directors for the Financial Report
The directors of the Company are responsible for the preparation of i) the financial report (other than the
consolidated entity disclosure statement) that gives a true and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001; and ii) the consolidated entity disclosure statement that is true and
correct in accordance with the Corporations Act 2001 and for such internal control as the directors determine is
necessary to enable the preparation of i) the financial report (other than the consolidated entity disclosure
statement) that gives a true and fair view and is free from material misstatement, whether due to fraud or error;
and ii) the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether
due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the Company’s ability to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no
realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance
with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of the financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance in
the audit of the financial report of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 36 to 41 of the directors’ report for the year ended
30 June 2024.
In our opinion, the Remuneration Report of Magnetic Resources NL for the year ended 30 June 2024 complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Magnetic Resources NL are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to
express an opinion on the Remuneration Report, based on our audit in accordance with Australian Auditing
Standards.
Elderton Audit Pty Ltd
Sajjad Cheema
Director
30th September 2024
Financial Statements
Pg. 87
Other Information
Tenements currently held
Location
Tenement
Nature of
Interest
Project
Equity (%) held
WA
E70/3536
Granted
JUBUK
Royalty Retained
WA
E70/4243
Granted
RAGGED ROCK
Royalty Retained
WA
E70/4508
Granted
KAURING
Royalty Retained
WA
E70/4692
Granted
MT JOY
Royalty Retained
WA
E70/5276
Granted
KAURING
Royalty Retained
WA
E70/5277
Granted
KAURING
Royalty Retained
WA
E37/1331
Granted
MALCOLM
2% Royalty Retained
WA
E37/1419
Granted
MALCOLM
2% Royalty Retained
WA
E37/1367
Granted
MELITA
2% Royalty Retained
WA
P37/8905
Granted
RAESIDE EAST
2% Royalty Retained
WA
P37/8906
Granted
RAESIDE EAST
2% Royalty Retained
WA
P37/8907
Granted
RAESIDE EAST
2% Royalty Retained
WA
P37/8908
Granted
RAESIDE EAST
2% Royalty Retained
WA
P37/8909
Granted
BRAISER
2% Royalty Retained
WA
P37/8910
Granted
BRAISER
2% Royalty Retained
WA
P37/8911
Granted
BRAISER
2% Royalty Retained
WA
P37/8912
Granted
BRAISER
2% Royalty Retained
WA
P37/9204
Granted
MALCOLM
2% Royalty Retained
WA
P37/9205
Granted
MALCOLM
2% Royalty Retained
WA
P37/9206
Granted
MALCOLM
2% Royalty Retained
WA
P37/9207
Granted
MALCOLM
2% Royalty Retained
WA
E37/1177
Granted
MERTONDALE
100%
WA
E37/1258
Granted
MERTONDALE
100%
WA
P37/8687
Granted
CHRISTMAS WELL
100%
WA
P37/8688
Granted
CHRISTMAS WELL
100%
WA
P37/8689
Granted
CHRISTMAS WELL
100%
WA
P37/8690
Granted
CHRISTMAS WELL
100%
WA
P37/8692
Granted
CHRISTMAS WELL
100%
WA
P37/8693
Granted
CHRISTMAS WELL
100%
WA
P37/8694
Granted
CHRISTMAS WELL
100%
WA
E38/3100
Granted
MT JUMBO
100%
WA
E38/3127
Granted
HAWKS NEST
100%
WA
E38/3205
Granted
HAWKS NEST EAST
100%
WA
E38/3209
Granted
MT AJAX
100%
WA
M38/1041
Granted
NICHOLSON WELL
100%
WA
P38/4126
Granted
HN9 WEST
100%
WA
P38/4170
Granted
DEFIANT BORE
100%
WA
P38/4317
Granted
MT JUMBO EAST
100%
WA
P38/4318
Granted
MT JUMBO EAST
100%
WA
P38/4319
Granted
MT JUMBO EAST
100%
WA
P38/4320
Granted
MT JUMBO EAST
100%
WA
P38/4321
Granted
MT JUMBO EAST
100%
WA
P38/4322
Granted
MT JUMBO EAST
100%
Financial Statements
Pg. 88
Location
Tenement
Nature of
Interest
Project
Equity (%) held
WA
P38/4323
Granted
MT JUMBO EAST
100%
WA
P38/4324
Granted
MT JUMBO EAST
100%
WA
P38/4346
Granted
LADY JULIE
100%
WA
P38/4379
Granted
LADY JULIE
100%
WA
P38/4380
Granted
LADY JULIE
100%
WA
P38/4381
Granted
LADY JULIE
100%
WA
P38/4382
Granted
LADY JULIE
100%
WA
P38/4383
Granted
LADY JULIE
100%
WA
P38/4384
Granted
LADY JULIE
100%
WA
P37/9144
Granted
HOMEWARD BOUND SOUTH
0%
WA
P39/5455
Granted
HOMEWARD BOUND SOUTH
100%
WA
P39/5928
Granted
HOMEWARD BOUND SOUTH
100%
WA
P39/5929
Granted
HOMEWARD BOUND SOUTH
100%
WA
P39/5932
Granted
HOMEWARD BOUND SOUTH
100%
WA
P39/5933
Granted
HOMEWARD BOUND SOUTH
100%
WA
P39/5934
Granted
HOMEWARD BOUND SOUTH
100%
WA
P39/6175
Granted
HOMEWARD BOUND SOUTH
100%
WA
E39/2125
Granted
LITTLE WELL
100%
WA
P39/6134
Granted
LITTLE WELL
100%
WA
P39/6135
Granted
LITTLE WELL
100%
WA
P39/6136
Granted
LITTLE WELL
100%
WA
P39/6137
Granted
LITTLE WELL
100%
WA
P39/6138
Granted
LITTLE WELL
100%
WA
P39/6139
Granted
LITTLE WELL
100%
WA
P39/6140
Granted
LITTLE WELL
100%
WA
P39/6141
Granted
LITTLE WELL
100%
WA
P39/6142
Granted
LITTLE WELL
100%
WA
P39/6143
Granted
LITTLE WELL
100%
WA
P39/6144
Granted
LITTLE WELL
100%
WA
E70/5534
Granted
TRAYNING
100%
WA
E70/5537
Granted
BENJABERRING
100%
WA
E70/5538
Granted
GODDARD
100%
WA
E70/5771
Granted
KORRELOCKING
100%
WA
E70/6304
Granted
TRAYNING WEST
100%
WA
E70/6305
Granted
KOORDA
100%
Financial Statements
Pg. 89
The following information was applicable as at 18 September 2024
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
727
283,342 / 0.11% 1,047
438,323 / 2.15%
-
-
1,001 to 5,000
471
1,210,362 /
0.47%
478
1,041,810 / 5.10%
-
-
5,001 to 10,000
163
1,314,961 /
0.51%
71
515,516 / 2.52%
-
-
10,001 to 100,000
298
10,578,964 /
4.09%
61
2,147,613 / 10.52% -
-
100,001 and over
133
245,354,631 /
94.83%
15
16,275,600 /
79.71%
-
-
Total
1,792
236,954,035
1,672
20,418,862
-
-
The number of shareholdings with less than marketable parcels is 390 shareholders holding 58,918 fully paid ordinary shares and
535 shareholders holding 104,815 partly paid contributing shares. There are no listed options.
Financial Statements
Pg. 90
Substantial shareholders :
Shareholder Name
Number of Shares
% of Issued Share Capital
MR CHIM SENG
34,910,318
13.49%
MR HIAN SIANG CHAN
30,164,538
11.66%
TARGET RANGE PTY LTD
29,026,846
11.22%
Twenty largest shareholders – Quoted fully paid ordinary shares:
Position
Holder Name
Holding
% IC
1
MR CHIM SENG OAN
34,910,318
13.49%
2
MR HIAN SIANG CHAN
30,164,538
11.66%
3
TARGET RANGE PTY LTD
19,602,694
7.58%
4
MR CHOON KONG LIM
12,587,235
4.86%
5
CITICORP NOMINEES PTY LIMITED
10,374,443
4.01%
6
ALCOCK SUPERANNUATION FUND PTY LTD
9,424,152
3.64%
7
ROCKCAR PTY LTD
8,700,000
3.36%
8
AVA CARTEL SDN BHD
7,590,302
2.93%
9
GFI INVESTMENTS PTY LTD
6,804,000
2.63%
10
BNP PARIBAS NOMS PTY LTD
5,953,232
2.30%
11
REKA CEMERLANG SDN BHD
5,759,615
2.23%
12
HSBC CUSTODY NOMINEES (AUSTRALIA)
LIMITED
5,735,681
2.22%
13
MR LIM JIN HUEI ERIC
5,055,423
1.95%
14
MS XIAO JUN ZHANG
4,000,000
1.55%
15
MR AARON SIM KWANG LIANG
3,387,716
1.31%
16
BNP PARIBAS NOMINEES PTY LTD
3,383,065
1.31%
17
MR GEORGE SAKALIDIS
3,228,571
1.25%
18
COWARA PTY LTD
2,845,501
1.10%
19
LEEMAN PTY LTD
2,809,847
1.09%
20
EMNJ PTY LTD
2,713,000
1.05%
Total
185,029,333
71.51%
Total issued capital - selected security
class(es)
258,742,260
100.00%
Financial Statements
Pg. 91
Twenty largest shareholders – Quoted partly-paid contributing shares:
Position
Holder Name
Holding
% IC
1
GFI INVESTMENTS PTY LTD
4,305,000
21.08%
2
MR IAN RONALD BARON
2,051,999
10.05%
3
MR GEORGE SAKALIDIS &
MRS JACQUELINE SAKALIDIS
2,040,333
9.99%
4
MR ROGER MICHAEL THOMSON
2,000,000
9.79%
5
EMNJ PTY LTD
1,561,672
7.65%
6
MR GEORGE SAKALIDIS
958,114
4.69%
7
BRISPOT NOMINEES PTY LTD
725,930
3.56%
8
RUBYTOOSDAY PTY LTD
500,000
2.45%
8
MR BRENTON GRAHAM TIELEMAN
500,000
2.45%
9
EMNJ PTY LTD
408,365
2.00%
10
MR BARINGTON DANCE
360,604
1.77%
11
MEGGSIES PTY LTD
261,997
1.28%
12
PGC (2006) PTY LTD
216,030
1.06%
13
GILPIN PARK PTY LTD
205,556
1.01%
14
PGC (2006) PTY LTD
196,030
0.96%
15
MR ROBERT FRANCIS KAVANAGH
180,000
0.88%
16
MRS GAYNOR CHRISTENSEN
100,000
0.49%
17
MR CHOON KONG LIM
92,500
0.45%
18
MR ERIC ROBERT TERACE &
MRS JUDITH FAY TERACE
91,666
0.45%
19
METEORIC RESOURCES NL
66,666
0.33%
20
MONEX BOOM SECURITIES (HK) LTD
61,707
0.30%
20
SUPER INVESTMENTS AUST PTY LTD
60,000
0.29%
20
ELOHIM NOMINEES PTY LTD
60,000
0.29%
20
MR PASQUALE RAMUNNO
60,000
0.29%
20
EST MR VINCENT LEONARD WILLIS
60,000
0.29%
20
MR CLINTON PETER KEENAN
60,000
0.29%
20
GLOBAL VIEW ASSETS PTY LTD
60,000
0.29%
20
VIERO & CO PTY LTD
60,000
0.29%
20
MS SHERRYL ANNE MCINTYRE
60,000
0.29%
Total
17,168,139
84.08%
Total issued capital - selected security
class(es)
20,418,862
100.00%
Financial Statements
Pg. 92
Option to acquire Fully Paid Ordinary Shares, expiry 31.12.2024 AT $1.515.
Position
Holder Name
Holding
% IC
1
MR GEORGE SAKALIDIS
1,800,000
36.73%
Option to acquire Fully Paid Ordinary Shares, expiry 6.12.2025 at $1.20
Position
Holder Name
Holding
% IC
1
LEEMAN PTY LTD
1,500,000
40.00%
2
MR HIAN SIANG CHAN
750,000
20.00%
2
MR LIM JIN HUEI ERIC
750,000
20.00%
2
ELOHIM NOMINEES PTY LTD
750,000
20.00%
Option to acquire Fully Paid Ordinary Shares, expiry 5.10.2025 at $0.68
Position
Holder Name
Holding
% IC
1
TARGET RANGE PTY LTD
333,333
20.26%
Option to acquire Fully Paid Ordinary Shares, expiry 6.12.2026 at $1.53
There are a total of 258,000,593 fully paid ordinary shares, 20,418,862 partly-paid contributing shares and 14,786,872 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.
Escrowed Securities
There are no escrowed securities on issue.
Position
Holder Name
Holding
% IC
1
MR GEORGE SAKALIDIS
1,500,000
40.00%
2
MR HIAN SIANG CHAN
750,000
20.00%
2
MR JIN HUEI ERIC LIM
750,000
20.00%
2
ELOHIM NOMINEES PTY LTD
750,000
20.00%