Magmatic Resources Limited
ABN 32 615 598 322
Annual report
for the year ended 30 June 2022
Contents
Corporate Information
Chairman’s letter to shareholders
Review of operations
Directors’ report
Auditor’s independence declaration
Corporate governance statement
Consolidated statement of profit or loss and other comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
Directors’ declaration
Independent auditor’s report to the members
ASX additional information
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Magmatic Resources Limited
ABN 32 615 598 322
Corporate Information
Directors
David J Richardson – Executive Chairman
Adam R McKinnon – Managing Director (appointed 15 March 2022)
David W Berrie – Non-Executive Director
Andrew J Viner – Non-Executive Director (appointed 17 December 2021)
Company Secretary
Andrea S Betti
David W Berrie
Registered Office and
Principal Place of
Business
Suite 7, 55 Hampden Road
Nedlands WA 6009
Share Registry
Auditors
Solicitors
ASX Code
Telephone:
Email:
Website:
+61 8 9322 6009
info@magmaticresources.com
www.magmaticresources.com
Computershare Investor Services Pty Ltd
Level 11, 172 St George’s Terrace
Perth WA 6000
Telephone:
Telephone:
1300 850505
+61 8 9415 4000
BDO Audit (WA) Pty Ltd
Level 9
Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
HopgoodGanim
Level 8, 1 Eagle Street
Brisbane QLD 4000
Magmatic Resources Limited is listed on the Australian Securities
Exchange
Shares: MAG
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Magmatic Resources Limited
ABN 32 615 598 322
Chairman’s Letter
Dear shareholder,
I am pleased to present the Company’s sixth annual report since listing on the ASX in May 2017.
The East Lachlan is a globally significant gold-copper province, most famous for Newcrest Mining Limited’s
world class gold-copper porphyry cluster at the Cadia Valley Mines and the Northparkes copper-gold
porphyry mine owned by the China Molybdenum Company Limited and Sumitomo Group.
Magmatic recognised the potential of the region, acquiring four exploration projects from Gold Fields Limited
in 2014, and we have always described Magmatic as a junior explorer with a “major’s” portfolio. .
To further focus our activities on the three 100%-owned advanced gold/copper projects in the East Lachlan,
the Company demerged its Moorefield orogenic gold project to its wholly owned subsidiary Australian Gold
and Copper Limited (AGC), which was then listed as a separate listed entity on the ASX in January 2021.
The Company’s three gold-copper projects represent strategic positions with advanced target portfolios
adjacent to major mining operations and recent discoveries in the region.
Significant work was carried out by our exploration team located in Orange New South Wales during the
year. Multiple aircore and diamond drilling programs were completed at our Wellington North and Myall
projects.
The Myall Project’s ongoing diamond drilling program has recently identified a significant new porphyry
copper-gold target at the Corvette prospect, with mineralisation showing strong similarities to the
Northparkes deposit located 60 kilometres south.
The Wellington North Project has a dominant tenure position and target portfolio essentially surrounding the
Boda gold-copper deposit held by Alkane Resources Limited.
Magmatic also holds a strategic position in the Parkes Fault Zone (Parkes Project), immediately south from
Alkane’s Tomingley Gold Operations and recent Roswell and San Antonio discoveries.
In March 2022 the Company appointed Dr Adam McKinnon as Managing Director. Adam was previously
General Manager - Exploration and Business Development at Aurelia Metals Limited, where he had multiple
discovery successes including the high-grade Federation Zn-Pb-Au-Cu discovery, which is currently being
developed. Magmatic would like to thank Peter Duerden for his service as the Company’s previous
Managing Director.
During the year the Company received $2,514,561 from option holders who exercised 34,827,710 options.
The Company is very well funded, and we look forward to advancing our gold/copper targets in the 2023
Financial Year.
I want to take this opportunity to thank our dedicated employees and contractors across the business for
their contributions to the successful execution of both exploration and corporate activities in the reporting
period and acknowledge our loyal shareholders for their continued support of the Company.
Sincerely
David Richardson
Executive Chairman
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Magmatic Resources Limited
ABN 32 615 598 322
Review of Operations
Magmatic Resources Limited (“Magmatic” or the “Company”) (ASX:MAG) is a New South Wales‐focused
copper and gold explorer that listed in May 2017, following the acquisition of an advanced portfolio in the
East Lachlan, New South Wales from Gold Fields Limited in 2014 (Figure 1).
Figure 1. Location of Magmatic’s East Lachlan Projects (Resources from Phillips, 2017; CMOC, 2018; Evolution, 2019;
Newcrest 2019; Alkane 2020, 2022)
Exploration in the East Lachlan Region
The Company has three 100%‐owned projects comprising six licences in the East Lachlan region of New
South Wales – namely Myall, Wellington North and Parkes.
The East Lachlan region is a globally significant gold‐copper province with an endowment of more than 80
million ounces of gold and 13 million tonnes of copper (Phillips, 2017). It is most famous for Newcrest
Mining’s (ASX:NCM) world class gold‐copper porphyry cluster at the Cadia Valley, where the Cadia East
Mine represents Australia’s largest and one of the world’s most profitable gold producers (Newcrest, 2021).
In addition, the Northparkes copper‐gold porphyry deposits (China Molybdenum/Sumitomo) and Cowal
gold deposit (Evolution Mining ASX:EVN) represent significant long‐life mining operations.
The Company’s projects represent strategic holdings and target portfolios adjacent to major mining
operations and recent discoveries.
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Magmatic Resources Limited
ABN 32 615 598 322
Ongoing exploration activity, including recent diamond drilling, indicates strong similarities between the
Company’s Myall Project and the Northparkes Mining District, located 60 kilometres to the south (CMOC,
2021). The recent 10.1 million ounce‐equivalent maiden resource for the Boda gold‐copper discovery
(ASX:ALK 30 May 2022) has highlighted the value of Magmatic’s dominant surrounding tenure position and
target portfolio at its Wellington North Project. The Company also holds a strategic position in the Parkes
Fault Zone (Parkes Project), immediately south from Alkane’s Tomingley Gold Operations and recent
Roswell and San Antonio discoveries.
Myall Project (Copper‐Gold)
Magmatic Resources Limited 100%
The Myall Copper‐Gold Project covers the northern extension of the Junee ‐ Narromine Volcanic Belt,
located ~60km north and along strike from the Northparkes copper‐gold Mining District (China
Molybdenum/Sumitomo, Figure 2).
Figure 2. Regional gravity and magnetic imagery, highlighting the similarities between the Myall Project and the major
deposits in the Junee‐Narromine Volcanic Belt.
Multiple previously drilled copper‐gold intercepts, including 70 metres at 0.54% Cu & 0.15g/t Au from 141m
and 62 metres at 0.27% Cu & 0.13g/t Au from 260m (MYACD001, ASX:MAG 4 June 2017), highlight near
equivalent grades to the Northparkes Mine Resources (CMOC, 2018) and indicate potential for a fertile
porphyry cluster at Myall. In the 2020‐2021 financial year the Company defined a wide zone of copper
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Magmatic Resources Limited
ABN 32 615 598 322
mineralisation at the Kingswood Prospect, including 381.9 metres at 0.20% Cu from 150m to end of hole in
21MYDD412 (ASX:MAG 29 March 2021), which further highlighted the potential of the region.
During the year, a review of the extensive copper‐gold potential of the Myall Project area was conducted
and Magmatic’s Board approved a high impact diamond drilling program that was designed to target the
highly prospective Kingswood, Kingswood North and Corvette prospect areas. The proposed program was
initially set to comprise around 3,000 metres of drilling. Drill pad and site access preparations for the Myall
program commenced in June 2022, although extensive rainfall in the region delayed commencement of
drilling until later in the following month.
Subsequent to the end of the financial year the Company announced the first drilling at the prospect
(ASX:MAG 23 August 2022) had returned a broad copper‐gold‐molybdenum mineralised zone from the
upper portion of the first hole (Figures 3 & 4), including:
22MYDD415
151.5 metres at 0.37% Cu, 0.08g/t Au & 43ppm Mo from 134.5m (base of cover),
including 13.0 metres at 0.81% Cu, 0.19g/t Au & 90ppm Mo from 152m,
and 22.0 metres at 0.50% Cu, 0.08g/t Au & 67ppm Mo from 201m,
and 13 metres at 0.35% Cu, 0.09g/t Au & 126ppm Mo from 225m (high‐Mo zone),
and 6 metres at 0.65% Cu, 0.19g/t Au & 11ppm Mo from 276m
Figure 3. Plan of the Corvette Prospect over airborne magnetics (RTP) showing previous (ASX:MAG 4 June 2017) and recent
diamond drilling with down hole copper mineralisation and visual sulphide intersections in 22MYDD415. Vertical air core holes
<150 metres depth are omitted for clarity. Full details in ASX:MAG 13 September 2022.
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Magmatic Resources Limited
ABN 32 615 598 322
A subsequent release (ASX:MAG 13 September 2022) reported even higher grades from the middle portion
of the hole (Figures 3 & 4), including:
22MYDD415
111 metres at 0.55% Cu, 0.10g/t Au, 1.8g/t Ag & 5ppm Mo from 499m,
including 61 metres at 0.81% Cu, 0.13g/t Au & 2.9g/t Ag from 542m,
including 10.5 metres at 1.39% Cu, 0.11g/t Au & 7.1g/t Ag from 544.5m,
and 21 metres at 1.00% Cu, 0.21g/t Au & 3.1g/t Ag from 582m,
At the time of this release, assays had been received to a down hole depth of 650 metres, resulting in an
overall mineralised interval of 511.5 metres at 0.29% Cu, 0.06g/t Au & 17ppm Mo from 134.5m, with assays
pending between 650 and 1,014.7 metres down hole.
Hole 22MYDD414, which was stopped at 227 metres down hole due to excessive deviation in the pre‐collar,
also returned a shallow, strongly mineralised zone over most of the drilled interval:
22MYDD414
88.4 metres at 0.35% Cu, 0.04g/t Au & 17ppm Mo from 131.6m (base of cover),
including 15.0 metres at 0.90% Cu, 0.09g/t Au & 48ppm Mo from 137m
Figure 4. Schematic cross section looking north at the Corvette prospect showing intersections from 22MYDD414 & 22MYDD415 in
relation to historic drilling (ASX:MAG 13 September 2022).
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Magmatic Resources Limited
ABN 32 615 598 322
The strong results in the first drilling of the 2022 Myall diamond program were considered exceptionally
encouraging, with the significant follow‐up exploration expected in the coming year.
Figure 5. Magmatic Resources’ Exploration Manager, Steven Oxenburgh, holding core with abundant breccia‐hosted chalcopyrite
(yellow) from 588m down hole in 22MYDD415 (left); and cross section of core from 591.6m down hole displaying semi‐massive,
breccia hosted chalcopyrite from 22MYDD415 (right).
Wellington North Project (Gold‐Copper)
Magmatic Resources Limited 100%
The Wellington North Project covers the northern extension of the Molong Volcanic Belt, located north of
Australia’s largest gold producer at Cadia East (ASX:NCM) and effectively surrounding Alkane’s recent Boda
gold‐copper discovery (ASX:ALK).
The project area is considered highly prospective for epithermal‐porphyry gold‐copper and epithermal lode,
high grade gold mineralisation (Figure 6).
The historic Bodangora Gold Field produced 230,000 ounces @ 26g/t Au between 1869‐1917 (ASX:MAG 17
May 2017). Magmatic’s exploration activity during the year focussed on the Bodangora region, including
diamond drilling, a regional air core geochemistry program and a ground magnetics survey.
During the year the Company completed an eight hole diamond program at the historic Mitchells Creek Mine
at the Bodangora Goldfield to test for extensions to the high grade gold mineralisation. Significant
mineralisation from this drilling included:
21BNDD018
0.57 metres at 14.3g/t Au, 22g/t Ag & 1.1% Cu from 265.6m
21BNDD014
0.40 metres at 4.3g/t Au, 2g/t Ag from 139.0m
21BNDD019
0.65 metres at 1.5g/t Au, 6g/t Ag & 0.2% Cu from 278.5m
21BNDD021
0.38 metres at 1.0g/t Au, 8g/t Ag & 0.1% Cu from 175.0m
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Magmatic Resources Limited
ABN 32 615 598 322
Figure 6. Aeromagnetic imagery (RTP) showing the Magmatic’s target portfolio in the Wellington North Project area and
highlighting the proximity to the 10.1Moz AuEq Boda discovery (ASX:ALK 30 May 2022).
Figure 7. Schematic long section looking west showing the historic workings at the Mitchells Creek Mine at the Bodangora Goldfield
along with diamond drilling intercepts returned during the year (ASX:MAG 24 March 2022).
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Magmatic Resources Limited
ABN 32 615 598 322
Gold mineralisation of variable tenor was intercepted in six of the eight holes drilled at Mitchells Creek, with
the central portion of the deposit around hole 21BNDD018 (0.57 metres at 14.3g/t Au & 1.1% Cu) appearing
to be most prospective for direct extensions of the high grade mineralisation (see Figure 7).
The mineralised intercepts were also variably elevated in silver, copper and tellurium, indicating a potential
distal relationship with the nearby Boda Porphyry discovery (Alkane Resources Limited ASX:ALK) and other
porphyry gold‐copper prospects in the Wellington North project area (ASX:MAG). The northernmost
diamond hole drilled in the recent program (21BNDD014) also returned an intercept of 4.3g/t, highlighting
the potential for the mineralisation to continue along strike.
The Company also completed five diamond holes totalling 714 metres at the Dicks Reward workings,
targeting extensions along strike to the northwest and southeast of the historic workings (Figure 8), including
the following significant intercepts:
22BNDD023
1.7 metres at 12.9g/t Au & 8g/t Ag from 65.5m
22BNDD024
1.0 metres at 0.5g/t Au from 58.0m
0.35 metres at 10.7g/t Au from 78.8m
22BNDD025
1.0 metres at 1.4g/t Au from 62.0m
0.3 metres at 1.3g/t Au from 66.8m
Figure 8. Schematic long section looking northeast showing the historic workings at the Dicks Reward mine in the Bodangora
Goldfield showing results from recent diamond drilling (ASX:MAG 8 July 2022).
The Company was particularly encouraged by the results in hole 22BNDD023 (1.7 metres at 12.9g/t Au),
which indicates that shallow, high grade mineralisation remains open to the northwest of the Dicks Reward
workings (Figure 8). The results in the holes that were drilled close to the workings (22BNDD024, 025 and
026) were quite variable but do indicate the presence of further high‐grade mineralisation, including 0.35
metres at 10.7g/t Au in 22BNDD024 (Figure 8). Significant potential mineralisation may also be present
below the central portion of the deposit, which was not able to be drilled due to the exceptionally wet
conditions prevailing in the region.
Drill hole details and significant intercepts for diamond holes drilled on at the Wellington North Project during
the year are summarised in Tables 1 & 2.
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Magmatic Resources Limited
ABN 32 615 598 322
Table 1. Collar summary for DD holes in reporting period.
Target
Hole ID
Mitchells Creek
21BNDD014
Mitchells Creek
21BNDD015
Mitchells Creek
21BNDD016
Mitchells Creek
21BNDD017
Mitchells Creek
21BNDD018
Mitchells Creek
21BNDD019
Mitchells Creek
21BNDD020
Mitchells Creek
21BNDD021
Dicks Reward
22BNDD022
Dicks Reward
22BNDD023
Dicks Reward
22BNDD024
Dicks Reward
22BNDD025
Dicks Reward
22BNDD026
Easting
(MGA55)
687,604
687,607
687,654
687,709
687,991
688,003
688,013
688,035
687,083
686,703
686,698
686,707
686,694
Northing
(MGA55)
6,408,263
6,408,262
6,408,252
6,408,177
6,407,769
6,407,780
6,407,787
6,407,313
6,407,877
6,408,238
6,408,232
6,408,257
6,408,180
RL
(m)
465
465
465
465
464
465
466
431
430
422
422
423
421
Dip
Azimuth
‐60
‐75
‐70
‐70
‐69
‐75
‐70
‐60
‐70
‐65
‐60
‐60
‐75
297
297
228
220
245
261
280
250
258
282
160
142
162
Depth
(m)
198.8
198.8
225.8
243.7
304.9
309.9
300.7
189.6
174.7
177.6
132.5
129.6
99.6
Table 2. Significant intercepts in returned for the reporting period for the Bodangora Goldfield
Hole_ID
Interval
Au (g/t)
Ag (g/t)
Cu (%)
From (m)
21BNDD014
21BNDD015
21BNDD016
21BNDD017
21BNDD018
21BNDD019
21BNDD020
21BNDD021
22BNDD022
22BNDD023
22BNDD024
22BNDD025
22BNDD026
0.35
0.4
1.0
0.57
0.65
0.05
1.0
1.0
0.38
1.7
1.0
0.35
1.0
0.4
0.3
0.1
4.3
0.6
14.3
1.5
0.3
0.1
0.1
1.0
12.9
0.5
10.7
1.4
1.3
0.8
0.16
1.84
0.26
No sig. intercepts
No sig. intercepts
21.7
5.65
0.49
0.18
0.12
8.42
No sig. intercepts
8
0
12
1
0
3
No sig. intercepts
0.0
0.0
0.0
1.1
0.2
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
128.0
139.0
137.0
265.6
278.5
274.3
279.0
2.0
175.0
65.5
58.0
78.8
62.0
66.8
69.5
In addition to the diamond drilling, the Company completed a 279 hole, 2,908 metre air‐core drill
geochemical sampling program over the broader Bodangora region during the year, along with a further 160
soil samples collected on the topographic highpoints in each of the east‐west sampling lines. The program
identified a coherent northeast‐southwest striking zone of anomalous gold over 200 metres wide and
extending to 1,000 metres in length between and to the south of the historic workings (Figure 9). The gold
trend is also coincident with both copper (Cu) and lead (Pb) anomalism greater than 250ppm. Copper and
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Magmatic Resources Limited
ABN 32 615 598 322
lead sulphides are known to be associated with the gold mineralisation in the Bodangora Goldfield and Boda
regions.
The new geochemical data also identified a coherent zone of copper anomalism along strike to the north of
the Mitchells Creek workings, as well as a number of single‐point gold anomalies on the northernmost
sampling line and to the northwest of the Dicks Reward workings (Figure 9). Further drilling to follow‐up the
zones of geochemical anomalism is being considered for later in the current year.
Figure 9. Plan of the Bodangora region showing the location of recently completed air‐core drill holes and infill soil samples in
reference to the historic Mitchells Creek and Dick’s Reward workings. Diamond collar locations are also shown for the recent Dicks
Reward drilling (ASX:MAG 8 July 2022).
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Magmatic Resources Limited
ABN 32 615 598 322
Parkes Project (Gold)
Magmatic Resources Limited 100%
The Parkes Project comprises two exploration licences located within the Parkes Fault Zone, approximately
25 kilometres south from Alkane’s Tomingley Gold Operations and recently defined resources at Roswell of
904,000oz of gold and 406,000oz of gold at San Antonio (ASX:ALK 2 May 2022). Several existing gold
intersections are equivalent to early‐stage exploration results at Alkane’s Tomingley deposits, including:
16m at 1.22 g/t Au from 13m (MM33) McGregors (ASX:MAG 17 May 2017)
18m at 0.72 g/t Au from 33m (MM33) McGregors (ASX:MAG 17 May 2017)
26m at 0.55 g/t Au from 34m (MM32) McGregors (ASX:MAG 17 May 2017)
22m at 0.79g/t Au from 45m (S1) Stockmans (ASX:MAG 17 May 2017)
12m at 1.42g/t Au from 7m (S2) Stockmans (ASX:MAG 17 May 2017)
Approximately 130 line‐kilometres of a planned high resolution ground magnetics (GMAG) program was
surveyed during the year at the Stockmans target, with completion of the full survey delayed due to heavy
rainfall, contractor availability and cropping activities. The remaining GMAG data collection is scheduled for
later in the current financial year and will assist with target generation and subsequent air core and/or RC
drilling in the project area.
Figure 10. Parkes Project, aeromagnetic imagery, showing position along strike from Tomingley Gold Mine (ASX:ALK) and recent
discoveries within the highly prospective Parkes Fault Zone
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Magmatic Resources Limited
ABN 32 615 598 322
References
CMOC 2021., China Molybdenum Company Limited, http://www.cmocinternational.com/australia/
Evolution., 2018, https://evolutionmining.com.au/reservesresources/
Heithersay P S and Walshe J L, 1995, Endeavour 26 North: A porphyry Copper‐Gold Deposit in the Late
Ordovician, Shoshonitic Goonumbla Volcanic Complex, New South Wales, Economic Geology v90
House, M.J. 1994. Gold distribution at the E26 porphyry copper‐gold deposit, NSW. M.Sc thesis, Uni of
Tasmania
Lye 2006, The Discovery History of the Northparkes Deposits, Mines and Wines 2006
Newcrest., 2019, Newcrest Investor and Analyst Presentation, ASX Announcement, 18 November 2019
Newcrest 2020, Cadia Operations NI 43‐101 Technical Report, 30 June 2020,
https://www.newcrest.com/sites/default/files/2020‐10/Technical%20Report%20on%20Cadia%20
Operations %20as%20of%2030%20June%202020_0.pdf
Phillips, G N (Ed), 2017. Australian Ore Deposits, The Australasian Institute of Mining and Metallurgy:
Melbourne
Competent Persons Statement
The information in this document that relates to Exploration Results, Mineral Resources or Ore Reserves is
based on information compiled by Dr Adam McKinnon who is a Member of the AusIMM. Dr McKinnon is
Managing Director and a full‐time employee of Magmatic Resources Limited and 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”. Dr McKinnon consents to
the inclusion in this presentation of the matters based on his information in the form and context in which it
appears.
Additionally, Dr McKinnon confirms that the entity is not aware of any new information or data that
materially affects the information contained in the ASX releases referred to in this report.
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Magmatic Resources Limited
ABN 32 615 598 322
Directors’ Report
Your directors present their annual financial report on the consolidated entity (referred to hereafter as the “Group”)
consisting of Magmatic Resources Limited (the “Company” or “parent entity”) and its wholly owned subsidiaries
Modeling Resources Pty Ltd (“Modeling”) and Landslide Investments Pty Ltd (“Landslide”). In order to comply with the
provisions of the Corporations Act, the directors report as follows:
Directors
The names of the directors of the Company during or since the end of the year are noted below. Directors were in
office for the entire year unless otherwise stated:
David J Richardson – Executive Chairman
Adam R McKinnon – Managing Director (appointed 15 March 2022)
David W Berrie – Non-Executive Director
Andrew J Viner – Non-Executive Director (appointed 17 December 2021)
Peter B Duerden – Managing Director (appointed 3 February 2020, resigned 17 December 2021)
Company Secretary
Andrea S Betti
David W Berrie
Principal activities
The principal activity of the Group during the financial year was mineral exploration.
Dividends
No dividend has been paid or declared since the start of the financial year and the directors do not recommend the
payment of a dividend in respect of the financial year.
Review of operations
Information on the operations of the Group is set out in the Review of Operations report on pages 5 to 15 of this
Annual Report.
Financial review
The loss for the Group after providing for income tax for the financial year amounted to $3,019,039 (2021: profit of
$1,188,014).
As at 30 June 2022, the Group had net assets of $6,731,700 (30 June 2021: $7,519,063), including cash and cash
equivalents of $5,018,580 (30 June 2020: $6,122,271).
Significant changes in the state of affairs
The Group raised $2,514,561 from option holders who exercised 34,827,710 options.
The Company’s retained 5.64% shareholding in Australian Gold and Copper Ltd was revalued down by $394,632 at
30 June 2022 (2021: revalued down by $338,256), based on the AGC closing market price of $0.07 from its 30 June
2021 price of $0.14.
Matters subsequent to the end of the financial year
During the first quarter of the 2023 financial year, the Group received $577,600 from option holders who exercised
8,000,000 options and the Company announced the first drilling at the Corvette Prospect (ASX:MAG 23 August
2022) had returned a broad copper‐gold‐molybdenum mineralised zone from the upper portion of the first hole.
Likely developments and expected results
Additional comments on expected results of certain operations of the Group are included in the Review of Operations.
Environmental legislation
The Group is subject to significant environmental legal regulations in respect to its exploration and evaluation
activities. The group is compliant with the NGER Act 2007. There have been no known breaches of these regulations
and principles.
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Magmatic Resources Limited
ABN 32 615 598 322
During the financial year the Company has paid premiums in respect of insuring directors and officers of the Company
against liabilities incurred as directors or officers. The amount paid is confidential under the terms of the terms of the
insurance policy. The Company has no insurance policy in place that indemnifies the Company’s auditors.
Information on directors
David Richardson B. Comm MBA Executive Chairman
Experience and expertise
Mr David Richardson has extensive international corporate experience including 15 years in Japan in Asia Pacific
regional director positions with organisations such as Pacific Dunlop Ltd and Amcor Ltd, expertise includes venture
capital and finance.
Mr Richardson founded Magmatic Resources in 2014, listing the Company on the ASX in 2017 and is Executive
Chairman of the Company. Mr Richardson holds an Masters of Business Administration from the University of
Southern California (USC), Los Angeles.
Mr Richardson is not considered to be independent due to his executive role as Executive Chairman of the Company
and his interest in the securities of the Company.
Other current directorships: Australian Gold and Copper Ltd
Former directorships in the last 3 years: Nil
Special responsibilities: Executive Chairman
Interests in shares and options at the date of this report:
47,442,573 ordinary shares (indirectly held) and 8,000,000 options (indirectly held).
Adam McKinnon BSc (Hons), PhD, MAusIMM, MRACI (CCHEM) Managing Director (appointed 15 March 2022)
Experience and expertise
Dr McKinnon is a mining and geoscience professional with 16 years industry and academic experience. Before joining
Magmatic Resources he was General Manager – Exploration and Business Development at Aurelia Metals Limited,
where he was involved in a number of significant discoveries including the high grade Federation deposit south of
Nymagee, NSW. Dr McKinnon also led several highly successful exploration programs whilst with KBL Mining Limited,
including the discovery of the high grade Pearse gold-silver deposit near the Mineral Hill Mine. Dr McKinnon holds a
PhD in mineralogy and geochemistry from Western Sydney University, is a Chartered Chemist with the Royal
Australian Chemical Institute (RACI) and a Member of the Australian Institute of Mining and Metallurgy (AusIMM).
Dr McKinnon is not considered to be independent due to his executive role as Managing Director of the Company.
Other Current Directorships: Australian Gold and Copper Ltd (appointed 12 August 2022)
Former directorships in the last 3 years: Nil
Special Responsibilities: Managing Director
Interests in shares and options at the date of this report:
420,000 ordinary shares (directly held) and 10,000,000 options (indirectly held)
David Berrie LLB Non-Executive Director (appointed 28 October 2016)
Company Secretary (appointed 01 June 2019)
Experience and expertise
Mr. David Berrie has over 30 years’ experience in the mining industry. Mr Berrie worked as a solicitor in the mining
team at Clayton Utz before joining the international mining house Western Mining Corporation in 1987 with much of
that time spent in the exploration division before transitioning over to BHP Billiton. Mr Berrie has extensive public
company experience. Mr Berrie has a Bachelor of Laws and a Bachelor of Juris Prudence from the University of
Western Australia.
Other current directorships: Nil
Former directorships in the last 3 years:
Hylea Metals Limited (appointed 6 February 2018, resigned 2 January 2019)
Summit Resources Limited (appointed 19 Oct 2006, resigned 15 November 2018)
Special responsibilities: Joint Company Secretary
Interests in shares and options at the date of this report:
14,029,044 ordinary shares (indirectly held) and 4,000,000 options (indirectly held).
17
Magmatic Resources Limited
ABN 32 615 598 322
Andrew Viner BSc (Geology) Non-Executive Director (appointed 17 December 2021)
Experience and Expertise
Mr Viner is a geologist with more than 37 years’ experience in multi commodity mining and mineral exploration in
Australia, southeast and central Asia and South America. He has been an Executive and Managing Director of ASX
listed Companies since 2002.
Andy has a BSc in Geology undertaken at Curtin University in Western Australia. He is a member of the
Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Company Directors.
Other Directorships: Nil
Former Directorships in the last 3 years: Strickland Metals Limited (appointed 21 June 2011, resigned 1 April 2021)
543,000 ordinary shares (533,000 indirectly held and 10,000 directly held).
Meetings of directors
During the financial year there were five formal directors’ meetings. All other matters that required formal Board
resolutions were dealt with via written circular resolutions. In addition, the directors met on an informal basis at
regular intervals during the financial year to discuss the Group’s affairs.
The directors have determined that the Company is not of a sufficient size to merit the establishment of Board
committees of the Board, and therefore duties ordinarily assigned to committees are carried out by the full Board.
The number of meetings of the Company’s board of directors attended by each director were:
D Richardson
A McKinnon
D Berrie
A Viner
P Duerden
Directors’ meetings
entitled to attend
5
2
5
3
2
Directors’ meetings
attended
5
2
5
3
2
Shares under option
Outstanding share options at the date of this report are as follows:
Grant date
14 October 2019
22 October 2019
29 November 2019
31 January 2020
31 January 2020
04 December 2019
04 December 2019
18 February 2020
24 September 2020
25 September 2020
28 May 2021
27 October 2021
29 November 2021
29 November 2021
15 March 2022
Date of expiry
14 October 2022
30 November 2022
30 November 2022
31 January 2023
31 January 2023
31 January 2023
31 January 2023
12 February 2023
30 September 2023
30 September 2023
28 May 2024
31 October 2024
31 December 2024
31 December 2024
31 May 2025
Exercise price
Number of options
$0.0722
$0.0722
$0.2322
$0.3352
$0.5772
$0.3352
$0.5772
$0.5262
$0.2642
$0.2642
$0.2062
$0.1500
$0.1452
$0.1936
$0.1002
3,000,000
8,000,000
8,000,000
9,040,000
4,460,000
660,000
340,000
2,000,000
500,000
250,000
4,000,000
1,250,000
4,050,000
1,950,000
10,000,000
18
Magmatic Resources Limited
ABN 32 615 598 322
Shares issued on the exercise of options
Options Grant Date
31 August 2018
31 August 2018
31 August 2018
31 August 2018
31 August 2018
31 August 2018
31 August 2018
31 August 2018
22 November 2019
Date of Expiry
30 August 2021
30 August 2021
30 August 2021
30 August 2021
30 August 2021
30 August 2021
30 August 2021
30 August 2021
30 November 2022
Date Exercised
30 July 2021
6 August 2021
13 August 2021
17 August 2021
20 August 2021
27 August 2021
1 September 2021
3 September 2021
3 September 2021
Exercised Price
$0.0722
$0.0722
$0.0722
$0.0722
$0.0722
$0.0722
$0.0722
$0.0722
$0.0722
Number of Options
5,000,000
441,500
3,058,410
165,000
2,777,356
5,358,892
5,886,552
140,000
12,000,000
Remuneration Report (Audited)
This report outlines the remuneration arrangements in place for the key management personnel of Magmatic
Resources Limited (the “Company” or “Parent”) for the financial year ended 30 June 2022. The information provided
in this remuneration report has been audited as required by Section 308(3C) of the Corporations Act 2001.
The remuneration report details the remuneration arrangements for key management personnel (“KMP”) who are
defined as those persons having authority and responsibility for planning, directing and controlling the major activities
of the Company and the Group, directly or indirectly, including any director (whether executive or otherwise) of the
parent company, and includes all executives in the Parent and the Group receiving the highest remuneration.
Key Management Personnel
(i) Directors
David Richardson - Executive Chairman
Adam McKinnon – Managing Director (appointed 15 March 2022)
David Berrie – Non-Executive Director
Andy Viner – Non-Executive Director (appointed 17 December 2021)
Peter Duerden – Managing Director (appointed 3 February 2020, resigned 17 December 2021)
(ii) Executives
Michael Franklin - Chief Financial Officer
Details of directors’ and executives’ remuneration are set out under the following main headings:
A
B
C
D
Principles used to determine the nature and amount of remuneration
Details of remuneration
Employment contracts/Consultancy agreements
Share-based compensation
Principles used to determine the nature and amount of remuneration
A
The objective of the Company’s executive reward framework is to ensure reward for performance is competitive and
appropriate for the results delivered. The framework aims to align executive reward with the creation of value for
shareholders. The key criteria for good remuneration governance practices adopted by the Board are:
competitiveness and reasonableness
acceptability to shareholders
performance incentives
transparency
capital management
The framework provides a mix of fixed salary, consultancy, agreement-based remuneration and share based
incentives.
The broad remuneration policy for determining the nature and amount of emoluments of Board members and senior
executives of the Company is governed by the full board. Although there is no separate remuneration committee,
the Board’s aim is to ensure the remuneration packages properly reflect directors’ and executives’ duties and
responsibilities. The Board assesses the appropriateness of the nature and amount of emoluments of such officers
19
Magmatic Resources Limited
ABN 32 615 598 322
on a periodic basis by reference to relevant employment market conditions with the overall objective of ensuring
maximum stakeholder benefit from the retention and motivation of a high-quality Board and executive team.
The current remuneration policy adopted is that no element of any director or executive package is directly related
to the Company’s financial performance. Indeed, there are no elements of any director or executive remuneration
that are dependent upon the satisfaction of any specific condition however the overall remuneration policy framework
is structured to advance and create shareholder wealth.
Non-executive directors
Fees and payments to non-executive directors reflect the demands which are made on, and the responsibilities of,
the directors. Non-executive directors’ fees and payments are reviewed annually by the Board and are intended to
be in line with the market. Non-executive directors receive a board fee and fees for chairing or participating on board
committees. They do not receive performance-based pay or retirement allowances.
For the year ended 30 June 2022, exclusive of superannuation guarantee, the annual cash remuneration for the
Non-Executive Directors was $122,862.
The non-executive directors fee pool approved by shareholders is $250,000 per annum.
Directors’ fees
On appointment to the Board, all non-executive directors enter into a service agreement with the Company in the form
of a letter of appointment. The letter summarises the Board policies and terms, including remuneration relevant to the
office of director.
The Board policy is to remunerate non-executive directors at commercial market rates for comparable companies for
their time, commitment and responsibilities. Non-executive directors receive a Board fee but do not receive fees for
chairing or participating on Board committees. Board members are allocated superannuation guarantee contributions as
required by law, and do not receive any other retirement benefits. From time to time, some individuals may choose to
sacrifice their salary or consulting fees to increase payments towards superannuation. Non-executive directors are
granted options in the Company from time to time subject to shareholder approval.
Fees for non-executive directors are not linked to the performance of the Group.
Retirement allowances for directors
Apart from superannuation payments paid on salaries there are no retirement allowances for directors.
Executive pay
The executive pay and rewards framework has the following components:
base pay and benefits such as superannuation where appropriate
long-term incentives through participation in employee equity issues
Base pay
All executives are either full time employees or consultants who are paid on an agreed basis that has been formalised
in a consultancy agreement.
Benefits
Apart from superannuation paid on executive salaries there are no additional benefits paid to executives.
Short-term incentives
There are no current short-term incentive remuneration arrangements.
Performance based remuneration
To ensure that the Company has appropriate mechanisms in place to continue to attract and retain the services of
suitable directors and employees, the Company has, in the past, issued options and performance rights to some key
personnel.
Share-based compensation
Issue of shares
No shares were issued to directors during the year ended 30 June 2022.
20
Magmatic Resources Limited
ABN 32 615 598 322
Options
The terms and conditions of each grant of options over ordinary shares affecting remuneration of directors
and other key management personnel in this financial year or future reporting years are as follows:
Number of
Options
Granted
Grant
Date
Vesting and
exercisable
date
Option
Life
(Years)
Expiry
Date
Share
price
on
Grant
Date
Exercise
Price
Risk
Free
Interest
Rate on
Grant
Date
Fair value
Per
option
at grant
date #
David Richardson
2,700,000
29 Nov 2021
1 Dec 2021
3.09
31 Dec 2024
$0.0990
$0.14520
0.929%
$0.054596
David Richardson
1,300,000
29 Nov 2021
1 Dec 2021
3.06
31 Dec 2024
$0.0990
$0.19360
0.929%
$0.048858
David Berrie
1,350,000
29 Nov 2021
1 Dec 2021
3.09
31 Dec 2024
$0.0990
$0.14520
0.929%
$0.054596
David Berrie
650,000
29 Nov 2021
1 Dec 2021
3.09
31 Dec 2024
$0.0990
$0.19360
0.929%
$0.048858
Michael Franklin
500,000
27 Oct 2021
1 Dec 2021
3.01
31 Oct 2024
$0.0930
$0.15000
1.032%
$0.048889
Adam McKinnon
10,000,000
15 Mar 2022
27 May 2022
3.21
31 May 2025
$0.0950
$0.10020
1.88%
$0.059968
# The Black Scholes valuations for each option granted assumed the Expected Volatility parameter was 100% and the Dividend Yield parameter
was 0.00%.
Options granted carry no dividend or voting rights.
All options were granted over unissued fully paid ordinary shares in the Company. Options vest based on
the provision of service over the vesting period whereby the executive becomes beneficially entitled to the
option on vesting date. Options are exercisable by the holder as from the vesting date. There has not been
any alteration to the terms or conditions of the grant since the grant date. There are no amounts paid or
payable by the recipient in relation to the granting of such options other than on their potential exercise.
The table below shows a reconciliation of options held by each KMP from the beginning to the end of the
financial year ending 30 June 2022:
Balance at the start of
the year
Unvested
Vested
Granted as
compensation
-
4,000,000
-
-
-
5,000,000
4,000,000
-
-
-
-
10,000,000
2022
Name & Grant
dates
D Richardson
21 Nov 2021
23 Jan 2020
30 Aug 2018
A McKinnon
15 Mar 2022
D Berrie
21 Nov 2021
23 Jan 2020
30 Aug 2018
-
2,000,000
-
-
-
675,000
2,000,000
-
-
M Franklin
27 Oct 2021
-
-
500,000
P Duerden
Vested
Forfeited
Balance at the end of the
year
Number
%
Exercised
Number
%
Other
changes
Vested and
exercisable
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,000,000(1)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
675,000
-
-
100
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Unvested
4,000,000
4,000,000
-
10,000,000
2,000,000
2,000,000
-
500,000
-
6,000,000
23 Jan 2020
-
(1)The total amount paid on the exercise of these options was $361,000 at the rate of $0.0722 per option.
Performance rights
No performance rights were issued during the year ended 30 June 2022.
-
-
-
-
6,000,000
100
Company performance, shareholder wealth and directors’ and executives’ remuneration
No relationship exists between shareholder wealth, director and executive remuneration and Company
performance due to the nature of the Company’s operations being a non-producing resources exploration
company.
21
Magmatic Resources Limited
ABN 32 615 598 322
The table below shows the losses and earnings per share of the Company for the last four financial years:
2022
2021
2020
2019
2018
Net profit / (loss)
($3,019,039) $1,188,014
($4,318,026)
($1,993,025)
($2,533,870)
Share Price at year end (cents)
5.2
Profit / (Loss) per share (cents)
(1.16)
12.5
0.58
27.0
(3.02)
1.8
(1.76)
6.1
(2.75)
B
Details of remuneration
Amounts of remuneration
Details of the remuneration of the directors and other key management personnel (as defined in AASB 124 Related
Party Disclosures) of the Company and the Group for the year ended 30 June 2022 are set out in the following
tables.
The key management personnel of the Group comprise the directors of the Company and persons who have the
authority and responsibility for planning, directing and controlling the activities of the Group. Given the size and
nature of the Group, there are no other employees who are required to have their remuneration disclosed in
accordance with the Corporations Act 2001. No cash remuneration is linked to performance.
Year ended 30 June 2022
Name
Director
D Richardson
A McKinnon (appointed 15 March 2022)
D Berrie
A Viner (appointed 17 December 2021)
P Duerden (resigned 17 December 2021)
Key Management Personnel
M Franklin
Salary /
Fees
$
225,725
103,985
90,000
21,692
162,800
100,000
704,202
Post-
employment
benefits /
Superannuation
$
Share-based
compensation1
$
Other
$
Total
$
22,572
10,399
9,000
2,169
16,280
7,500
67,920
201,489
54,703
100,745
-
(360,383)
5,437
1,991
-
-
-
-
-
-
-
449,786
169,087
199,745
23,861
(181,303)
112,937
774,113
1 Equity-settled share-based payments as per Corporations Regulation 2M.3.03(1) Item 11. These include
negative amounts for options forfeited during the year and the reversal of prior year expenses.
Year ended 30 June 2021
Name
Director
D Richardson
P Duerden
D Berrie
D Flanagan (appointed 28 October 2020
resigned 4 February 2021)
Key Management Personnel
M Franklin
Salary /
Fees
$
180,000
262,866
60,000
53,272
100,000
656,138
Post-
employment
benefits /
Superannuation
$
Share-based
compensation
$
Other
$
Total
$
24,680
48,685
5,700
5,061
167,644
251,030
83,822
-
-
-
-
-
372,324
562,581
149,522
58,333
-
84,126
-
502,496
100,000
-
- 1,242,760
22
Magmatic Resources Limited
ABN 32 615 598 322
C
Employment contracts / Consultancy agreements
On appointment to the Board, all Non-Executive Directors enter into a service agreement with the Company in the
form of a letter of appointment.
Remuneration of the Managing Director and other executives are formalised in letters of appointment and
employment agreements and amendments thereof. These agreements and amendments thereof provide details of
the salary and employment conditions relating to each employee.
Name
Term of agreement
and notice period
Base salary (excl.
superannuation)
Termination
payments
David Richardson
Executive Chairman
Adam McKinnon
Managing Director
Michael Franklin
Chief Financial Officer
N/A
3 months
N/A
6 months
N/A
3 months
$240,000
$350,000
$100,000
N/A
N/A
N/A
D
Key management personnel equity holdings
2022
Ordinary shares
Directors
D Richardson
A McKinnon (appointed 15 March 2022)
D Berrie
A Viner (appointed 17 December 2021)
P Duerden (appointed 3 February 2020,
resigned 17 December 2021)
Other Key management personnel
M Franklin
Balance at
beginning of year
Net movement
during the year
Balance at the
end of year
42,442,571
-
14,029,044
243,000
4,850,313
5,000,000(1)
240,000
-
-
(3,172,714)
47,442,571
240,000
14,029,044
243,000
1,677,599
100,000
101,110
201,110
(1) This increase in shares was due to the exercise of options.
Options
Directors
D Richardson
A McKinnon (appointed 15 March 2022)
D Berrie
A Viner (appointed 17 December 2021)
P Duerden (appointed 3 February 2020,
resigned 17 December 2021)
Other Key management personnel
M Franklin
Balance at
beginning of year
Net movement
during the year
Balance at the end
of year
9,000,000
-
2,675,000
-
(1,000,000)
10,000,000
1,325,000
-
8,000,000
10,000,000
4,000,000
-
6,000,000
(6,000,000)
0
-
500,000
500,000
No remuneration consultants have been used. Other than disclosed above, there are no other transactions
with key management personnel.
Loans to Key Management Personnel
There were no loans to individuals or members of key management personnel during the financial year.
23
Magmatic Resources Limited
ABN 32 615 598 322
Transactions with Key Management Personnel
Mr Andrew Viner (Non-Executive Director)
During the financial year Mr Viner’s consulting company provided geological consultancy services to the
Company to the value of $59,280. These services were provided on normal commercial terms and conditions.
Other than described above, there were no transactions with key management personnel during the financial
year or the previous financial year
E
Voting and comments made at the Company’s 2021 Annual General Meeting
Magmatic Resources Ltd received more than 99.18% of “yes” votes on its remuneration report for the 2021
financial year. The Company did not receive any specific feedback at the AGM or throughout the year on its
remuneration practices.
End of audited remuneration report.
Auditor’s independence and non-audit services
Section 307C of the Corporations Act 2001 requires our auditors, BDO Audit (WA) Pty Ltd to provide the
directors of the Company with an Independence Declaration in relation to the audit of the annual report. This
Independence Declaration is set out on page 24 and forms part of this directors’ report for the year ended
30 June 2022.
Non-audit services
The Company may decide to employ the auditors on assignments additional to their statutory audit duties
where the auditor’s expertise and experience with the Company and/or the consolidated entity are important.
The Company has considered the position and is satisfied that the provision of the non-audit services is
compatible with the general standard of independence for auditors imposed by the Corporations Act 2001.
Details of remuneration paid to the auditors are:
Assurance services
BDO Audit (WA) Pty Ltd
Audit and review of financial statements
Total remuneration for audit services
Consultancy services
BDO Corporate Finance (WA) Pty Ltd
Preparation of Independent Limited Assurance report
Total remuneration for audit services
Total auditor’s remuneration
Proceedings on behalf of Company
Consolidated
2022
$
2021
$
43,680
43,680
42,151
42,151
-
-
10,622
10,622
43,680
57,773
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party,
for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings.
24
Magmatic Resources Limited
ABN 32 615 598 322
Insurance of Directors and Officers
The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may
be brought against the officers in their capacity as officers of the Company, and any other payments arising
from liabilities incurred by the officers in connection with such proceedings. This does not include such
liabilities that arise from conduct involving a wilful breach of duty by the officers or the improper use by the
officers of their position or of information to gain advantage for themselves or someone else or to cause
detriment to the Company. It is not possible to apportion the premium between amounts relating to the
insurance against legal costs and those relating to other liabilities.
This report is made in accordance with a resolution of the directors.
D Richardson
Executive Chairman
PERTH, Western Australia
Dated: 28 September 2022
25
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY DEAN JUST TO THE DIRECTORS OF MAGMATIC RESOURCES
LIMITED
As lead auditor of Magmatic Resources Limited for the year ended 30 June 2022, I declare that, to the
best of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Magmatic Resources Limited and the entities it controlled during the
period.
Dean Just
Director
BDO Audit (WA) Pty Ltd
Perth, 28 September 2022
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia
Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO
International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability
limited by a scheme approved under Professional Standards Legislation.
1
26
Magmatic Resources Limited
ABN 32 615 598 322
Corporate Governance Statement
The Company and the Board are committed to achieving and demonstrating the highest standards of corporate
governance. The Company has reviewed its corporate governance practices against the Corporate
Governance Principles and Recommendations (4th edition) published by the ASX Corporate Governance
Council.
The 2022 Corporate Governance Statement is lodged with the ASX as a separate document to the Annual
Report.
The 2022 Corporate Governance Statement was approved by the Board on 28 September 2022 and is current
as at 30 June 2022. A description of the Group’s current corporate governance practices is set out in the
Group’s Corporate Governance Statement which can be viewed at www.magmaticresources.com.
27
Magmatic Resources Limited
ABN 32 615 598 322
Consolidated Statement of Profit or Loss and Other
Comprehensive Income for the year ended 30 June 2022
Consolidated
Note
2022
$
Continuing Operations
Other income
Corporate administration expenses
Exploration and evaluation expenses
Exploration asset impairments
Share based payment expense
Finance costs
Profit / (Loss) before tax
Income tax
Net profit / (loss) for the year
Other comprehensive income, net of tax
Items that will not be classified subsequently to profit or loss
Changes in the fair value of investments at fair value
through other comprehensive income
Items that may be reclassified subsequently to profit or loss
Total comprehensive profit / (loss) for the year
Total comprehensive profit / (loss) for the period
attributable to the members of Magmatic Resources
Limited:
Profit / (Loss) per share attributable to the members of
Magmatic Resources Limited
Profit / (Loss) per share (dollars)
Profit / (Loss) per share fully diluted (dollars)
2
3
3
8
12
4
9
5
5
2021
$
6,433,474
6,433,474
(1,257,527)
(3,135,379)
(260,000)
(588,039)
(4,515)
(5,245,460)
77,179
77,179
(896,240)
(2,085,934)
-
(111,747)
(2,297)
(3,096,218)
(3,019,039)
1,188,014
-
-
(3,019,039)
1,188,014
-
-
(394,632)
-
(338,256)
-
(3,413,671)
849,758
(3,413,671)
849,758
($0.012)
($0.012)
$0.006
$0.004
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in
conjunction with the accompanying notes.
28
Magmatic Resources Limited
ABN 32 615 598 322
Consolidated Statement of Financial Position
as at 30 June 2022
Current Assets
Cash and cash equivalents
Other receivables
Total Current Assets
Non-Current Assets
Plant and Equipment
Security Bonds
Exploration assets
Right-of-use assets
Financial assets held at fair value through other comprehensive income
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Lease Liabilities
Total Current Liabilities
Non-Current Liabilities
Lease Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
Note
Consolidated
2022
$
2021
$
7
8
9
5,018,580
116,948
6,122,271
107,628
5,135,528
6,229,899
134,986
74,300
1,368,350
21,529
394,631
63,636
69,300
1,368,350
68,765
789,263
1,993,796
2,359,314
7,129,324
8,589,213
10
375,016
22,608
999,506
41,378
397,624
1,040,884
-
-
29,266
29,266
397,624
1,070,150
6,731,700
7,519,063
11
12
17,094,843
4,480,256
(14,843,399)
14,580,282
4,763,141
(11,824,360)
6,731,700
7,519,063
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying
notes.
29
Magmatic Resources Limited
ABN 32 615 598 322
Consolidated Statement of Changes in Equity for the year ended 30 June 2022
Consolidated
Share
Based
Payments
Reserve
$
Capital
Restructure
Reserve
$
Fair Value Other
Comprehensive
Income ("FVOCI")
Reserve
Issued
Capital
$
Accumulated
Losses
$
Total
Equity
$
Balance at 1 July 2020
15,071,988
3,752,985
250
-
(13,012,374)
5,812,849
Profit after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive (loss)/profit for the year
-
-
-
-
-
-
Transactions with owners recorded directly in equity
Share-based payments
Issue of ordinary shares
Capital raising expenses
In-specie Distribution to Shareholders
-
5,415,898
(1,035,123)
(4,872,481)
588,039
-
760,123
-
Total transactions with owners recorded directly in equity
(491,706)
1,348,162
Balance at 30 June 2021
14,580,282
5,101,147
Balance at 1 July 2021
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
14,580,282
-
-
5,101,147
-
-
Total comprehensive loss for the year
-
-
Transactions with owners recorded directly in equity
Share-based payments
Issue of ordinary shares
Capital raising expenses
-
2,514,561
-
111,747
-
-
Total transactions with owners recorded directly in equity
2,514,561
111,747
-
-
-
-
-
-
-
-
250
250
-
-
-
-
-
-
-
-
(338,256)
1,188,014
-
1,188,014
(338,256)
(338,256)
1,188,014
849,758
-
-
-
-
-
-
-
-
588,039
5,415,898
(275,000)
(4,872,481)
(338,256)
1,188,014
856,456
(338,256)
(11,824,360)
7,519,063
(338,256)
-
(394,632)
(11,824,360)
(3,019,039)
-
7,519,063
(3,019,039)
(394,632)
(394,632)
(3,019,039)
(3,413,671)
-
-
-
-
-
-
111,747
2,514,561
-
(394,632)
(3,019,039)
(787,363)
Balance at 30 June 2022
17,094,843
5,212,894
250
(732,888)
(14,843,399)
6,731,700
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
30
Magmatic Resources Limited
ABN 32 615 598 322
Consolidated Statement of Cash Flows
for the year ended 30 June 2022
Consolidated
Note
2022
$
2021
$
Cash flows from operating activities
Receipts from customers and Government Subsidies
Payments to suppliers and employees
Payments for exploration expenditure
Net Interest received / (paid)
53,199
(907,784)
(2,718,430)
17,735
171,382
(868,663)
(2,517,984)
9,690
Net cash used in operating activities
17(a)
(3,555,280)
(3,205,575)
Cash flows from investing activities
Payments for property, plant & equipment
Tenement bonds refunded net of bonds (paid)
Net cash from / (used in) investing activities
Cash flows from financing activities
Repayment of lease liabilities
Proceeds from the exercise of options
Payment of capital raising costs
Net cash from financing activities
(9,936)
(5,000)
(14,936)
-
22,000
22,000
(48,036)
2,514,561
-
(44,873)
5,415,900
(300,000)
2,466,525
5,071,027
Net increase/(decrease) in cash and cash equivalents
(1,103,691)
1,887,451
Cash and cash equivalents at the beginning of the year
6,122,271
4,234,820
Cash and cash equivalents at the end of the year
7
5,018,580
6,122,271
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
31
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2022
Note 1: Statement of significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated.
(a)
Adoption of new and revised accounting standards and interpretations
In the year ended 30 June 2022, the Directors have reviewed all of the new and revised Standards and
Interpretations issued by the AASB that are relevant to the Company and effective for the current reporting
periods beginning on or after 1 July 2021. As a result of this review the Directors have determined that there
is no material impact of the Standards and Interpretations issued by the AASB and, therefore, no change is
necessary to Company accounting policies.
There is no material impact to profit or loss or net assets on the adoption of this new standard in the current
or comparative periods as leases were only short term leases and low value leases.
(b)
New accounting standards and interpretations that are not yet mandatory
The Directors have also reviewed all Standards and Interpretations issued and not yet adopted for the year
ended 30 June 2022. As a result of this review the Directors have determined that there is no material impact
of the Standards and Interpretations in issue not yet adopted on the Company and, therefore, no change is
necessary to Company accounting policies.
(c)
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board and the Corporations
Act 2001. Magmatic Resources Limited is a for-profit entity for the purpose of preparing the financial
statements.
Historical cost convention
The financial statements have been prepared under the historical cost convention.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying the Company's accounting
policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and
estimates are significant to the financial statements, are disclosed in note 1(u).
(d)
Statement of compliance
The financial report was authorised by the Board of directors for issue on 28 September 2022.
The financial report complies with Australian Accounting Standards and International Financial Reporting
Standards (IFRS).
(e)
(f)
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.
Principles of consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the parent entity
(Magmatic Resources Limited) and its controlled subsidiaries; Modeling Resources Pty Ltd and Landslide
Investments Pty Ltd. The parent controls an entity when it is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to affect those returns through its power over the
entity.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the
Group from the date on which control is obtained by the Group. The consolidation of a subsidiary is
discontinued from the date that control ceases. Intercompany transactions, balances and unrealised gains
32
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2022
or losses on transactions between group entities are fully eliminated on consolidation. Accounting policies
of subsidiaries have been changed and adjustments made where necessary to ensure uniformity of the
accounting policies adopted by the Group.
(g)
(h)
(i)
(j)
(k)
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based
on the applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior
periods, where applicable.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current
classification.
An asset is current when it is expected to be realised or intended to be sold or consumed in normal operating
cycle; it is held primarily for the purpose of trading; it is expected to be realised within twelve months after
the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used
to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-
current.
A liability is current when: it is expected to be settled in normal operating cycle; it is held primarily for the
purpose of trading; it is due to be settled within twelve months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other
short-term, highly liquid investments with original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
The Group accounts for long term restricted security deposits as ‘other’ non-current assets.
Other receivables
Other receivables are recognised at amortised cost, less any provision for impairment.
Plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical
cost includes expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and
equipment (excluding land) over their expected useful lives as follows:
Plant and equipment 3-7 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at
each reporting date.
Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life
of the assets, whichever is shorter.
An item of plant and equipment is derecognised upon disposal or when there is no future economic benefit
to the Company. Gains and losses between the carrying amount and the disposal proceeds are taken to
profit or loss.
33
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2022
(l)
Leases
All leases are accounted for by recognising a right-of-use asset and a lease liability except for:
•
•
leases of low value assets; and
leases with a term of 12 months or less.
Lease liabilities are measured at the present value of the contractual payments due to the lessor over the
lease term, with the discount rate determined by reference to the rate inherent in the lease unless (as is
typically the case) this is not readily determinable, in which case the group’s incremental borrowing rate on
commencement of the lease is used. Variable lease payments are only included in the measurement of the
lease liability if they depend on an index or rate. In such cases, the initial measurement of the lease liability
assumes the variable element will remain unchanged throughout the lease term. Other variable lease
payments are expensed in the period to which they relate.
On initial recognition, the carrying value of the lease liability also includes:
• amounts expected to be payable under any residual value guarantee;
•
the exercise price of any purchase option granted in favour of the group if it is reasonable certain to
assess that option; and
• any penalties payable for terminating the lease, if the term of the lease has been estimated on the
basis of termination option being exercised.
Right of use assets are initially measured at the amount of the lease liability, reduced for any lease incentives
received, and increased for:
•
•
•
lease payments made at or before commencement of the lease;
initial direct costs incurred; and
the amount of any provision recognised where the group is required to dismantle, remove or restore
the leased asset.
Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate
on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised
on a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset
if, rarely, this is judged to be shorter than the lease term.
When the group revises its estimate of the term of any lease (because, for example, it re-assesses the
probability of a lessee extension or termination option being exercised), it adjusts the carrying amount of the
lease liability to reflect the payments to make over the revised term, which are discounted using a revised
discount rate (being the interest rate implicit in the lease for the remainder of the lease term or, if that cannot
be readily determined, the Group’s incremental borrowing rate at the re-assessment date). An equivalent
adjustment is made to the carrying value of the right-of-use asset, with the revised carrying amount being
amortised over the remaining (revised) lease term.
The carrying value of lease liabilities is also revised when the variable element of future lease payments
dependent on a rate or index is revised or there is a revision to the estimate of amounts payable under a
residual value guarantee. In both cases an unchanged discount rate is used. In both cases an equivalent
adjustment is made to the carrying value of the right-of-use asset, with the revised carrying amount being
amortised over the remaining (revised) lease term.
When the group renegotiates the contractual terms of a lease with the lessor, the accounting depends on
the nature of the modification:
•
•
•
if the renegotiation results in one or more additional assets being leased for an amount
commensurate with the standalone price for the additional rights-of-use obtained, the modification
is accounted for as a separate lease in accordance with the above policy
in all other cases where the renegotiated increases the scope of the lease (whether that is an
extension to the lease term, or one or more additional assets being leased), the lease liability is
remeasured using the discount rate applicable on the modification date, with the right-of-use asset
being adjusted by the same amount.
if the renegotiation results in a decrease in the scope of the lease, both the carrying amount of the
lease liability and right-of-use asset are reduced by the same proportion to reflect the partial of full
termination of the lease with any difference recognised in profit or loss. The lease liability is then
34
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2022
further adjusted to ensure its carrying amount reflects the amount of the renegotiated payments
over the renegotiated term, with the modified lease payments discounted at the rate applicable on
the modification date. The right-of-use asset is adjusted by the same amount.
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-
line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or
less. Low-value assets are items such as IT-equipment and small items of office furniture.
(m)
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the
financial period and which are unpaid. Due to their short-term nature they are measured at amortised cost
and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
(n)
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure
purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date; and assumes that
the transaction will take place either: in the principle market; or in the absence of a principal market, in the
most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or
liability, assuming they act in their economic best interest. For non-financial assets, the fair value
measurement is based on its highest and best use. Valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair value, are used, maximising the
use of relevant observable inputs and minimising the use of unobservable inputs.
Investments and other financial assets
Investments and other financial assets are recognised and derecognised on settlement date where the
purchase or sale of an investment is under a contract whose terms require delivery of the investment within
the time-frame established by the market concerned. They are initially measured at fair value, net of
transaction costs, except for those financial assets classified as fair value through profit or loss, which are
initially measured at fair value.
The Group classifies its financial assets in the following measurement categories:
Those to be measured subsequently at fair value (either through other comprehensive income
(OCI), or through profit or loss); or
Those to be measured at amortised cost.
The classification depends on the entity’s business model for managing the financial assets and the
contractual terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For
investments in equity instruments that are not held for trading, the classification will depend on whether the
Group has made an irrevocable election at the time of initial recognition to account for the equity investment
at FVOCI.
(i) Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial
asset not at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the
acquisition of the financial asset. Transaction costs of financial assets carried at FVPL are expensed in profit
or loss. Financial assets with embedded derivatives are considered in their entirety when determining
whether their cash flows are solely payment of principal and interest.
The Group subsequently measures all equity investments at fair value. The fair values of quoted investments
are based on current bid prices. If the market for a financial asset is not active (and for unlisted securities),
the Group establishes fair value by using valuation techniques. These include reference to the fair values of
recent arm’s length transactions, involving the same instruments or other instruments that are substantially
the same, discounted cash flow analysis, and pricing models to reflect the issuer’s specific circumstances.
35
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2022
Where the Group’s management has elected to present fair value gains and losses on equity investments
in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss following the
derecognition of the investment. Dividends from such investments continue to be recognised in profit or loss
as other income when the Group’s right to receive payments is established.
Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not
reported separately from other changes in fair value.
(ii) Impairment
The Group assesses at each reporting date whether there is objective evidence that a financial asset or
group of financial assets is impaired. For trade and other receivables, the Group applies the simplified
approach permitted by AASB 9, which requires expected lifetime losses to be recognised from initial
recognition of the receivables. The expected credit losses on these financial assets are estimated using a
provision matrix based on the Group’s historical credit loss experience.
(o)
Exploration expenditure
Exploration expenditure is expensed to the statement of profit or loss as incurred and acquisition costs are
capitalised as noncurrent assets. A regular review is undertaken of each area of interest to determine the
appropriateness of continuing to carry forward costs in relation to that area of interest. Where uncertainty
exists as to the future viability of certain areas, the value of the area of interest is written off or provided
against. Due to the speculative nature, when exploration assets have been acquired through equity
instruments, the fair value of the asset cannot be measure reliably, therefore the fair value of the equity
instrument is used to determine the fair value of the asset.
Impairment testing of exploration and evaluation expenditure
Exploration and evaluation expenditure is assessed for impairment if sufficient data exists to determine
technical feasibility and commercial viability or facts and circumstances suggest that the carrying amount
exceeds the recoverable amount.
Exploration and evaluation expenditure is tested for impairment when any of the following facts and
circumstances exist:
The term of exploration licence in the specific area of interest has expired during the reporting period or
will expire in the near future, and is not expected to be renewed;
Substantive expenditure on further exploration for and evaluation of mineral resources in the specific
area are not budgeted nor planned;
Exploration for and evaluation of mineral resources in the specific area have not led to the discovery of
commercially viable quantities of mineral resources and the decision was made to discontinue such
activities in the specified area; or
Sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the
carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful
development or by sale.
Where a potential impairment is indicated, an assessment is performed for each area of interest. The Group
performs impairment testing in accordance with accounting policy note 1(n) (ii).
(p)
Share based payments
Equity-settled share-based payment transactions to Directors and seed capitalists for services are
measured in reference to the fair value of equity instruments granted.
Equity-settled share-based payments in return for goods and services are measured at fair value of the
goods and services received, except where the fair value cannot be estimated reliably, in which case they
are measured at the fair value of the equity instruments.
The fair value of options and performance rights with non-vesting conditions and no service conditions
attached issued to Directors, seed capitalists and suppliers, are valued with a Black-Scholes pricing model.
36
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2022
The fair value is measured at the grant date of the equity instrument and is recognised in equity in the share-
based payment reserve. The number of instruments expected to vest is estimated based on the non-market
vesting conditions. The total expense is recognised at the date of grant of the options and rights.
(q)
Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
(r)
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST
incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the
acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount
of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables
in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or
financing activities which are recoverable from, or payable to the tax authority, are presented as operating
cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to,
the tax authority.
(s)
Deferred tax
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the
deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised to the
extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
(t)
In-specie distribution
The share capital of the Company was reduced by the fair value of an investment that was returned to
shareholders.
(u)
Critical accounting estimates and judgements
The preparation of these financial statements requires the use of certain critical accounting estimates.
It also requires management to exercise its judgement in the process of applying the Group’s accounting
policies.
Judgements:
Impairment of Exploration and Evaluation Asset
Determining the recoverability of exploration and evaluation expenditure capitalised in accordance with the
Group’s accounting policy (refer Note 1(o)), requires judgements as to future events and circumstances, in
particular, whether successful development and commercial exploitation, or alternatively sale, of the
respective areas of interest will be achieved. If, after having capitalised the expenditure under accounting
policy 1(o), a judgement is made that recovery of the expenditure is unlikely, an impairment loss is recorded
in the income statement in accordance with accounting policy 1(o). The carrying amounts of exploration and
evaluation assets are set out in Note 8.
37
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2022
Share-based payments
The Group measures the cost of equity-settled transactions by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined by using the Black-Scholes
model taking into account the terms and conditions upon which the instruments were granted. The
accounting estimates and assumptions relating to equity-settled share-based payments would have no
impact on the carrying amounts of assets and liabilities within the next annual reporting period but may
impact profit or loss and equity. Refer to note (q).
Note 2: Other income
Gain on disposal of AGC
AGC shared services agreement income
NSW Government Co-operative Drilling Programme grant
COVID 19 Cash Boost subsidy
Office sub-lease
Interest income
Other
Note 3: Expenses
Corporate and administration expenses
Depreciation
Director and Company Secretarial Fees
Consulting Fees
Investor Relations
Legal Fees
Travel
Employee Expenses
Rental Expense
Other
Exploration and evaluation expenses
Exploration expenses incurred
Net exploration and evaluation expense
Consolidated
2022
$
-
58,398
-
-
(952)
20,033
(300)
77,179
27,440
216,230
25,000
28,083
39,518
31,486
368,999
30,233
129,251
896,240
2021
$
6,243,740
32,168
35,250
103,995
1,905
14,205
2,211
6,433,474
25,986
220,487
100,000
40,141
65,272
11,396
292,756
29,983
471,506
1,257,527
2,085,934
2,085,934
3,135,379
3,135,379
38
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2022
Note 4: Income tax
(a) Income tax benefit
The prima facie income tax expense on pre-tax accounting result from
operations reconciles to the income tax benefit in the financial
statements as follows:
Accounting profit/(loss) from continuing operations before income tax
At the statutory income tax rate of 25% (2021: 26%)
Add
- Non-assessable income
- Share based payments
- Deductible equity costs
- Capital gain on exit from consolidated group
- Capital losses utilised
- Non-deductible expenses
- Under provision and correction of prior year balances
- Tax loss not brought to account
Income tax (benefit)
Accounting profit/(loss from Other Comprehensive Income before income tax
At the statutory income tax rate of 25% (2021: 26%)
Add
- Temporary differences not brought to account
Income tax (benefit) reported in the statement of comprehensive income
(b) Unrecognised deferred tax balances
The following deferred tax assets have not been brought to account
Deferred tax assets comprise:
Accruals
Operating lease
Employee entitlements
Share issues & capital costs
Investments
Losses available for offset against future income – revenue
Deferred tax liabilities comprise:
Prepayments
Exploration Equipment
Investments
Capitalised expenditure deductible for tax purposes
Consolidated
2022
$
2021
$
(3,019,039)
(754,760)
1,188,014
308,884
-
27,936
(39,477)
-
-
-
(971,627)
1,737,927
-
(1,357,256)
152,890
(68,158)
51,297
(51,297)
50,717
-
912,923
-
(394,632)
(338,256)
98,658
87,947
(98,658)
-
(87,947)
-
5,450
270
44,392
120,043
183,222
2,612,765
2,966,142
16,085
165
-
-
16,250
6,614
489
39,301
186,296
-
3,407,824
3,640,524
10,227
-
205,208
-
215,435
Net unrecognised deferred tax assets
2,949,892
3,425,089
Deferred tax assets have not been recognised in respect of these items because it is not certain that future taxable
profit will be available against which the Group can utilise the benefit thereof.
Tax Losses
As at 30 June 2022, the Consolidated Entity has $10,451,059 (2021: $13,107,014) of taxable losses that are
available for offset against future taxable profits of the consolidated entity, subject to the loss recoupment
requirements in the Income Tax Assessment Act 1997. No deferred tax assets have been recognised in the
Statement of Financial Position in respect of the amount of these losses, as it is not presently probable future taxable
profits will be available against which the Company can utilise the benefit.
39
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2022
Note 5: Profit / (Loss) per share
Total basic profit / (loss) per share
Total fully diluted profit / (loss) per share
The profit / (loss) and weighted average number of ordinary shares
used in the calculation of basic profit / (loss) per share is as follows:
Net profit / (loss) for the period
The weighted average number of ordinary shares
Options outstanding at year end
Fully diluted total weighted average securities on issue
Note 6: Segment information
Consolidated
2022
$
(0.0116)
(0.0116)
2021
$
0.0058
0.0042
(3,019,039)
1,188,014
259,750,467
205,768,090
51,500,000
75,908,558
311,250,467
281,676,648
AASB 8 requires operating segments to be identified on the basis of internal reports about components of the
Consolidated Entity that are regularly reviewed by the chief operating decision maker in order to allocate resources
to the segment and to assess its performance.
AASB 8 “Operating Segments’” states that similar operating segments can be aggregated to form one reportable
segment. Following incorporation, the Company acquired Modeling Resources Pty Ltd and Landslide Investments
Pty Ltd. The Group has one reportable operating segment being gold exploration projects in Australia.
Note 7: Cash and cash equivalents
Cash at bank and on hand
Consolidated
2022
$
2021
$
5,018,580
5,018,580
6,122,271
6,122,271
(Refer to Note 13(f) which contains risk exposure analysis for cash and cash equivalents)
Note 8: Exploration project acquisition costs
Opening balance
Project acquisition costs
Impairment of acquired exploration projects*
Acquisition costs in respect of areas of
interest in the exploration phase
Consolidated
2022
$
2021
$
1,368,350
-
-
1,628,350
-
(260,000)
1,368,350
1,368,350
*$260,000 was impaired during the 2021 financial year in relation to the Mt Venn area of interest after the relevant
exploration licences were surrendered in June 2021.
Exploration expenditure is expensed to the statement of profit or loss as incurred and acquisition costs are
capitalised as non-current assets. A regular review is undertaken of each area of interest to determine the
appropriateness of continuing to carry forward costs in relation to that area of interest. Where uncertainty exists as
to the future viability of certain areas, the value of the area of interest is written off or provided against.
40
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2022
The carrying value of capitalised exploration expenditure is assessed for impairment at each area of interest
whenever facts and circumstances suggest that the carrying amount of the asset may exceed its recoverable
amounts.
An impairment exists when the carrying amount of an asset or area of interest exceeds its estimated recoverable
amount. The asset or area of interest is then written down to its recoverable amount. Any impairment losses are
recognised in the profit or loss account.
Note 9: Financial assets held at fair value through other comprehensive income
Investments
Opening balance
Investment in AGC retained at listing (5,367,594 shares)
Revaluation to fair market value
Closing balance
Note 10: Trade and other payables
Current Trade and other payables
Trade creditors *
Other creditors
Goods and services tax payable
* Trade payables are non-interest bearing and are normally paid on 30 day terms.
Note 11: Issued capital
(a) Ordinary shares issued
Consolidated
2022
$
789,263
-
(394,632)
394,631
2021
$
-
1,127,519
(338,256)
789,263
Consolidated
2022
$
154,737
218,407
1,872
375,016
2021
$
817,690
180,732
1,084
999,506
Consolidated
2022
$
2021
$
254,486,798 (2021: 219,659,088) ordinary shares
17,094,843
14,580,282
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote
per share at shareholders’ meetings. In the event of winding up of the parent entity, ordinary shareholders rank after
all creditors and are fully entitled to any proceeds on liquidation.
41
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2022
(b) Movements in ordinary share capital:
Date
Balance as at 30 June 2020
18 November 2020
22 December 2020
23 December 2020
29 December 2020
8 February 2021
12 March 2021
12 March 2021
17 May 2021
11 June 2021
Balance as at 30 June 2021
Details
Options exercised at $0.10
AGC in-specie distribution to shareholders
Options exercised at $0.10
Options exercised at $0.10
Options exercised at $0.0722
Options exercised at $0.0722
Share Placement at $0.12 per share
Options exercised at $0.0722
Options exercised at $0.0722
Capital Raising Expenses
Balance as at 30 June 2021
30 July 2021
6 August 2021
13 August 2021
17 August 2021
20 August 2021
27 August 2021
1 September 2021
3 September 2021
Balance as at 30 June 2022
Options exercised at $0.0722
Options exercised at $0.0722
Options exercised at $0.0722
Options exercised at $0.0722
Options exercised at $0.0722
Options exercised at $0.0722
Options exercised at $0.0722
Options exercised at $0.0722
Number of
shares
173,115,298
305,000
326,669
1,662,250
10,000
250,000
41,666,670
2,000,000
323,201
219,659,088
219,659,088
5,000,000
441,500
3,058,410
165,000
2,777,356
5,358,892
5,886,552
12,140,000
254,486,798
$
15,071,988
30,500
(4,872,481)
32,667
166,225
722
18,050
5,000,000
144,400
23,336
(1,035,125)
14,580,282
14,580,282
361,000
31,876
220,817
11,913
200,525
386,912
425,009
876,508
17,094,843
(c) Movements in share options
2022
Weighted
average
exercise price
2021
Weighted
average
exercise price
Number of
Options
Number of
Options
Listed Options to acquire ordinary fully
paid shares at $0.0722 on or before 30
August 2021:
Beginning of the financial year
Issued during the year
Converted during the year
Expired during the year
Balance at end of financial year
Unlisted Options to acquire ordinary
fully paid shares on or before
14 October 2022:
Beginning of the financial year
Issued during the year
Converted during the year
Expired during the year
Balance at end of financial year
26,535,708
-
(22,827,710)
(3,707,998)
-
3,000,000
-
-
-
3,000,000
0.0722
-
0.0722
-
-
0.0722
-
-
-
0.0722
26,535,708
-
(2,877,120)
-
23,658,588
3,000,000
-
-
-
3,000,000
0.10
-
0.0944
-
0.0722
0.10
-
-
-
0.0722
42
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2022
2022
2021
Number of
Options
Weighted
average
exercise price
Number of
Options
Weighted
average
exercise price
Unlisted Options to acquire ordinary
fully paid shares on or before
30 November 2022:
Beginning of the financial year
Issued during the year
Converted during the year
Expired during the year
Balance at end of financial year
Unlisted Options to acquire ordinary
fully paid shares on or before
31 January 2023:
Beginning of the financial year
Issued during the year
Converted during the year
Expired during the year
Balance at end of financial year
Unlisted Options to acquire ordinary
fully paid shares on or before
12 February 2023:
Beginning of the financial year
Issued during the year
Converted during the year
Expired during the year
Balance at end of financial year
(1) Unlisted Options to acquire
ordinary fully paid shares on or before
30 September 2023:
Beginning of the financial year
Issued during the year
Converted during the year
Expired during the year
Balance at end of financial year
(2) Unlisted Options to acquire
ordinary fully paid shares on or before
28 May 2024:
Beginning of the financial year
Issued during the year
Converted during the year
Expired during the year
Balance at end of financial year
(3) Unlisted Options to acquire
ordinary fully paid shares on or before
31 October 2024:
Beginning of the financial year
Issued during the year
Converted during the year
Expired during the year
Balance at end of financial year
28,000,000
-
(12,000,000)
-
16,000,000
14,500,000
-
-
(6,000,000)
8,500,000
2,000,000
-
-
-
2,000,000
750,000
-
-
-
750,000
4,000,000
-
-
-
4,000,000
-
1,250,000
-
-
1,250,000
0.1179
-
0.0722
-
0.1522
0.4153
-
-
0.3352
0.4149
0.5262
-
-
-
0.5262
0.2642
-
-
-
0.2642
0.2062
-
-
-
0.2062
-
0.1500
-
-
0.1500
30,000,000
-
(2,000,000)
-
28,000,000
14,500,000
-
-
-
14,500,000
2,000,000
-
-
-
2,000,000
-
750,000
-
-
750,000
-
4,000,000
-
-
4,000,000
-
-
-
-
-
0.1426
-
0.0722
-
0.1179
0.4631
-
-
-
0.4153
0.5540
-
-
-
0.5262
-
0.2920
-
-
0.2642
-
0.2062
-
-
0.2062
-
-
-
-
-
43
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2022
2022
2021
Number of
Options
Weighted
average
exercise price
Number of
Options
Weighted
average
exercise price
(4) Unlisted Options to acquire
ordinary fully paid shares on or before
31 December 2024:
Beginning of the financial year
Issued during the year
Converted during the year
Expired during the year
Balance at end of financial year
(5) Unlisted Options to acquire
ordinary fully paid shares on or before
31 May 2025:
Beginning of the financial year
Issued during the year
Converted during the year
Expired during the year
Balance at end of financial year
-
6,000,000
-
-
6,000,000
-
10,000,000
-
-
10,000,000
-
0.1609
-
-
0.1609
-
0.1002
-
-
0.1002
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1) During the prior year, the Group issued 750,000 options with the fair value of $90,338 in accordance with the
Company’s employee share ownership plan to certain key management personnel which vest progressively
throughout the period during which they can be exercised but lapse if their employment is terminated. The
options were valued using a Black-Scholes option pricing model using the following inputs:
Grant Date
24 September
2020
25 September
2020
Share Price
on Grant Date
Exercise
Price
Expected
Volatility
Option
Life
Dividend
Yield
Interest
Rate
Fair Value
per Option
$0.215
$0.292
100%
3.02 years
0.00%
0.178%
$0.119
$0.220
$0.292
100%
3.01 years
0.00%
0.182%
$0.123
(2) During the prior year, the Group issued 4,000,000 to the broker who managed the $5,000,000 share
placement that occurred during the year. The fair value of the service provided was not able to be estimated,
therefore a Black-Scholes model was used to fair value these options using the following inputs:
Share Price
on Grant Date
Exercise
Price
Expected
Volatility
Option
Life
Dividend
Yield
Interest
Rate
Fair Value
per Option
$0.150
$0.2062
100%
3.25 years
0.00%
0.128%
$0.084
Grant Date
26 February
2021
(3) During the year, the Group issued 1,250,000 options with the fair value of $61,098 in accordance with the
Company’s employee share ownership plan to certain key management personnel which vest progressively
throughout the period during which they can be exercised but lapse if their employment is terminated. The
options were valued using a Black-Scholes option pricing model using the following inputs:
Share Price
on Grant Date
Exercise
Price
Expected
Volatility
Option
Life
Dividend
Yield
Interest
Rate
Fair Value
per Option
$0.093
$0.15
100%
3.01 years
0.00%
1.032%
$0.049
Grant Date
27 October
2021
44
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2022
(4) During the year, the Group issued 6,000,000 options with the fair value of $316,387 in accordance with the
Company’s employee share ownership plan to certain key management personnel which vest progressively
throughout the period during which they can be exercised but lapse if their employment is terminated. The
options were valued using a Black-Scholes option pricing model using the following inputs:
Share Price
on Grant Date
Exercise
Price
Expected
Volatility
Option
Life
Dividend
Yield
Interest
Rate
Fair Value
per Option
$0.099
$0.1452
100%
3.09 years
0.00%
0.929%
$0.055
$0.099
$0.1936
100%
3.09 years
0.00%
0.929%
$0.049
Grant Date
29 November
2021
29 November
2021
(5) During the year, the Group issued 10,000,000 options with the fair value of $599,684 in accordance with the
Company’s employee share ownership plan to the Company’s new managing director which vest progressively
throughout the period during which they can be exercised but lapse if his employment is terminated. The
options were valued using a Black-Scholes option pricing model using the following inputs:
Grant Date
Share Price
on Grant Date
Exercise
Price
Expected
Volatility
Option
Life
Dividend
Yield
Interest
Rate
Fair Value
per Option
15 March 2022
$0.095
$0.1002
100%
3.21 years
0.00%
1.880%
$0.060
Note 12: Reserves
Capital Restructure reserve
Opening balance
Expense for the year
Closing balance
Share-based payment reserve
Opening balance
Share based expense for year
Share based capital raising costs
Closing balance
Consolidated
2022
$
2021
$
250
-
250
250
-
250
5,101,147
111,747
-
5,212,144
3,752,985
588,039
760,123
5,101,147
Fair Value Other Comprehensive Income ("FVOCI") Reserve
Opening balance
Fair Value Other Comprehensive Income ("FVOCI") Reserve movement
Closing balance
(338,256)
(394,632)
(732,888)
-
(338,256)
(338,256)
Nature of reserves:
(a) Capital restructure reserve
The capital restructure reserve arises from the acquisition of Modeling Resources Pty Ltd
(b) Share-based payment reserve
This reserve records the value of equity instruments issued to directors, employees and suppliers as
recognition for services provided.
(c) Fair Value Other Comprehensive Income ("FVOCI") Reserve
This reserve records the value change in the Company’s investment in Australian Gold and Copper Ltd
[ASX:AGC].
45
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2022
Note 13: Financial instruments
(a) Capital risk management
Prudent capital risk management implies maintaining sufficient cash and marketable securities to ensure continuity
of tenure to exploration assets and to be able to conduct the Group’s business in an orderly and professional
manner. The Board monitors its future capital requirements on a regular basis and will when appropriate consider
the need for raising additional equity capital or to farm-out exploration projects as a means of preserving capital.
The Board currently has a policy of not entering into any debt arrangements.
(b) Categories of financial instruments
The Group’s principal financial instruments comprise of cash and short-term deposits. The main purpose of these
financial instruments is to raise finance for the Group’s operations. The Group has various other financial assets
and liabilities such as receivables and trade payables, which arise directly from its operations. It is, and has been
throughout the year, the Group’s policy that no trading in financial instruments shall be undertaken during the year.
(c) Financial risk management objectives
The Group is exposed to market risk (including interest rate risk and equity price risk), credit risk and liquidity risk.
The main risks arising from the Group’s financial instruments is the price risk of Australian Gold and Copper Ltd’s
shares. The Board reviews and agrees policies for managing each of these risks and they are summarised below.
(d) Market risk
Equity price risk sensitivity analysis
There has been no change to the Group’s exposure to market risks or the manner in which it manages and
measures the risk from the previous period.
(i) Interest rate risk management
All cash balances attract a floating rate of interest. Excess funds that are not required in the short term are placed
on deposit for a period of no more than 3 months. The Group’s exposure to interest rate risk and the effective
interest rate by maturity periods is set out below.
Interest rate sensitivity analysis
As the Group has no interest-bearing borrowings, its exposure to interest rate movements is limited to the amount
of interest income it can potentially earn on surplus cash deposits.
At 30 June 2021, if interest rates had changed by + 50 basis points and all other variables were held constant, the
Group’s loss would have been $31,832 (2021: $19,285) lower as a result of higher interest income on cash and
cash equivalents. If interest rates dropped on average – 50 basis points then the Group’s loss would have increased
the by $31,832 (2021: $19,285).
(e) Credit risk management
Credit risk relates to the risk that counterparties will default on their contractual obligations resulting in financial
loss to the Group. The Group has adopted a policy of only dealing with credit worthy counterparties and obtaining
sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from any
defaults.
46
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2022
(f) Liquidity risk management
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities to ensure
continuity of tenure to exploration assets and to be able to conduct the Group’s business in an orderly and
professional manner. Cash deposits are only held with major financial institutions.
2022
Weighted
Average
Interest
Rate
Less than
1 month
1-3
months
3 months
– 1 year
5 + years
Financial assets
Cash and cash equivalents – non - interest bearing
Cash and cash equivalents – interest bearing
Trade and other receivables
n/a
0.32%
n/a
$
$
68,533
450,046
4,439
523,018
-
4,500,000
-
4,500,000
$
-
-
-
-
Financial liabilities
Trade and other payables
Lease Liabilities
2021
Financial assets
Cash and cash equivalents – non - interest bearing
Cash and cash equivalents – interest bearing
Trade and other receivables
n/a
0.27%
n/a
n/a
5%
197,446
4,510
201,956
118,056
13,529
131,585
59,514
4,569
64,083
Weighted
Average
Interest
Rate
Less than
1 month
1-3
months
3 months
– 1 year
5 + years
$
$
122,261
1,000,010
4,945
1,127,216
-
5,000,000
-
5,000,000
$
-
-
-
-
$
-
-
5,276
5,276
Financial liabilities
Trade and other payables
Lease Liabilities
n/a
5%
931,462
4,166
935,628
34,332
12,497
46,829
33,712
33,725
67,437
-
25,393
25,393
The directors consider that the carrying value of the financial assets and financial liabilities are recognised in the
consolidated financial statements approximate their fair values.
Note 14: Commitments and contingencies
In order to maintain an interest in the exploration tenements in which the Group is involved, the Group is committed
to meet the conditions under which the tenements were granted. The timing and amount of exploration expenditure
commitments and obligation of the Group are subject to the minimum expenditure commitments over the life of the
licenses, required as per the Mining Act 1978, as amended, and may vary significantly from the forecast based upon
the results of the work performed which will determine the prospectivity of the relevant area of interest. Currently,
the minimum expenditure commitment for the granted tenements is approximately $962,650 (2021: $1,574,325).
$
-
-
4,229
4,229
-
-
-
47
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2022
Note 15: Key management personnel disclosures
(a) Directors
At the date of this report the directors of the Company are:
D Richardson – Executive Chairman
A McKinnon – Managing Director (appointed 15 March 2022)
D Berrie – Non-Executive Director and Joint Company Secretary
A Viner – Non-Executive Director (appointed 17 December 2021)
P Duerden – Managing Director (appointed 3 February 2020, resigned 17 December 2021)
There were no changes of the key management personnel after the reporting date and the date the financial report
was authorised for issue.
(b) Key management personnel
At the date of this report the other Key management personnel of the Company are:
M Franklin – Chief Financial Officer
(c) Key management personnel compensation
Short-Term
Post-employment
Share-based payments
Termination benefits
Consolidated
2022
$
704,202
67,920
1,991
-
774,113
2021
$
656,138
84,126
502,496
-
1,242,760
Detailed remuneration disclosures of directors and key management personnel are in pages 18 to 20 of this
report.
There were no loans to individuals or members of the key management personnel during the financial year or the
previous financial year.
During the financial year Mr Viner’s consulting company AJV Discoveries Pty Ltd provided geological consultancy
services to the Company to the value of $59,280. These services were provided on normal commercial terms and
conditions.
Note 16: Subsidiaries
Name of entity
Country of
incorporation
Class of shares
Equity holding
Modeling Resources Pty Ltd
Landslide Investments Pty Ltd
Australia
Australia
Ordinary
Ordinary
2022
%
100
100
2021
%
100
100
48
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2022
Note 17: Reconciliation of loss after income tax to net cash outflow from operating activities
a) Reconciliation of loss from ordinary activities after income
tax to net cash outflow from operating activities
Net profit / (loss) for the year after income tax
(3,019,039)
1,188,014
Consolidated
2022
$
2021
$
Profit on disposal of AGC
Share based payment expense
Depreciation
ROU Asset Amortisation
Exploration asset impairments
Movements in working capital
(Increase) / Decrease in other receivables
(Increase) in prepayments
Increase / (Decrease) in trade and other payables
Net cash outflows from operating activities
b) Non-cash financing and investing activities
-
111,747
27,440
47,237
-
(6,243,740)
588,039
25,986
46,470
260,000
15,688
(25,008)
(713,345)
216,212
(6,423)
719,867
(3,555,280)
(3,205,575)
There were no non-cash financing and investing activities in the financial year ended 30 June 2022.
Note 18: Parent Entity Disclosures
Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Financial performance
Profit / (Loss) for the year
Other comprehensive income/(loss)
Total comprehensive income/(loss)
2022
$
5,027,454
1,768,493
6,795,947
2021
$
6,102,862
1,605,472
7,708,334
178,376
178,376
189,271
189,271
6,617,571
7,519,063
17,139,992
4,434,858
(14,957,279)
14,625,431
4,717,743
(11,824,111)
6,617,571
7,519,063
(848,979)
(394,632)
(1,243,611)
4,377,204
(338,256)
4,038,948
49
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2022
Note 19: Events after the reporting date
During the first quarter of the 2023 financial year, the Company received $577,600 from option holders who exercised
8,000,000 options and the Company announced the first drilling at the Corvette Prospect (ASX:MAG 23 August 2022)
had returned a broad copper‐gold‐molybdenum mineralised zone from the upper portion of the first hole.
Note 20: Auditor’s remuneration
The auditors of the Group are BDO Audit (WA) Pty Ltd
Assurance services
BDO Audit (WA) Pty Ltd
Audit and review of financial statements
Total remuneration for audit services
Consultancy services
BDO Corporate Finance (WA) Pty Ltd
Preparation of independent limited assurance report
Total remuneration for audit services
Consolidated
2022
$
2021
$
43,680
43,680
42,902
42,902
-
-
10,622
10,622
Total auditor’s remuneration
43,680
57,773
Note 21: Fair Value Measurement
This note provides an update on the judgements and estimates in determining the fair values of the financial
instruments since the last annual financial report.
Fair Value Hierarchy
To provide an indication about the reliability of the inputs used in determining fair value. The Group classifies its
financial instruments into the three levels prescribed under accounting standards. An explanation of each level
follows underneath the table.
The following table presents the Group’s financial assets and financial liabilities measured and recognised at fair
value.
As at 30 June 2022
Level 1
$
Level 2
$
Level 3
$
Financial assets as FVOCI – Equity Securities
394,631
As at 30 June 2021
Financial assets as FVOCI – Equity Securities
789,263
-
-
-
-
Total $
394,631
789,263
There were no transfers between levels during the year. The Group’s policy is to recognise transfers into and out of
the fair value hierarchy levels at reporting date.
The fair value of the financial assets and liabilities held by the Group must be estimated for recognition, measurement
and /or disclosure purposes. The Group measures fair value by level, per the following fair value measurement
hierarchy:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or the liability,
either directly (as prices) or indirectly (derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
50
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2022
Valuation techniques used to determine fair values
The Group did not have any financial instruments that are recognised in the financial statements where their carrying
value differed from the fair value. The fair value of assets and liabilities are included at an amount at which the
instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation
sale. The carrying value of amounts of cash and short-term trade and other receivables, trade payables and other
current liabilities approximate their fair value largely due to the short-term maturities of these payments.
Financial assets at fair value through other comprehensive income – equity securities
The fair value of the equity holdings held in ASX companies are based on the quoted market prices from the ASX on
the last trading day prior to the period end.
51
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2022
Directors’ declaration
1.
In the opinion of the directors of Magmatic Resources Limited (the “Company”):
a.
the accompanying financial statements and notes are in accordance with the Corporations Act 2001
including:
i. giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its performance
for the financial year then ended; and
ii. complying with Accounting Standards, Corporations Regulations 2001, professional reporting
b.
c.
requirements and other mandatory requirements.
there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
the financial statements and notes thereto are in accordance with International Financial Reporting
Standards issued by the International Accounting Standards Board.
2. This declaration has been made after receiving the declarations required to be made to the directors in
accordance with Section 295A of the Corporations Act 2001 for the year ended 30 June 2022.
This declaration is signed in accordance with a resolution of the Board of Directors.
D Richardson
Chairman
Perth, Western Australia
28 September 2022
52
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Magmatic Resources Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Magmatic Resources Limited (the Company) and its subsidiaries
(the Group), which comprises the consolidated statement of financial position as at 30 June 2022, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
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.
1
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd
ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International
Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme
approved under Professional Standards Legislation.
53
Recoverability of Exploration and Evaluation expenditure
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 8 to the financial report, the
Our procedures included, but were not limited to:
carrying value of the exploration and evaluation
asset represents a significant asset of the Group.
The Group’s accounting policies and significant
judgements applied to capitalised exploration and
evaluation expenditure are detailed in Note 1 of
the financial report.
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources (‘AASB 6’), the
recoverability of exploration and evaluation
expenditure requires significant judgement by
management in determining whether there are
any facts and circumstances that exist to suggest
the carrying amount of this asset may exceed its
recoverable amount. As a result, this is
considered a key audit matter.
•
Assessing whether rights to tenure of the Group’s
area of interest remained current at balance date;
•
Considering the status of the ongoing exploration
programmes in the respective areas of interest by
holding discussions with management, and
reviewing the Group’s exploration budgets, ASX
announcements and director’s minutes;
•
Considering whether any such areas of interest
had reached a stage where a reasonable
assessment of economically recoverable reserves
existed;
•
Considering whether any facts or circumstances
existed to suggest impairment testing was
required; and
•
Assessing the adequacy of the related disclosures
in Notes 1 and 8 to the financial report.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2022, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
2
54
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has 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 the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 19 to 24 of the directors’ report for the
year ended 30 June 2022.
In our opinion, the Remuneration Report of Magmatic Resources Limited, for the year ended 30 June
2022, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Dean Just
Director
Perth, 28 September 2022
3
55
18.07%
7.31%
5.72%
5.71%
5.34%
%
0.00
0.24
0.69
11.69
87.38
100.00
Magmatic Resources Limited
ABN 32 615 598 322
Additional Shareholder Information
The following additional information is current as at 27 September 2022.
Corporate Governance:
The Company’s Corporate Governance Statement is available on the Company’s website at
www.magmaticresources.com/corporate-governance
Substantial Shareholders:
Holder Name
Bilingual Software Pty Ltd and D & R
Richardson
Gold Fields Australia Pty Ltd
Mr Marc David Harding
Mr Ming Yiu Ko
Davthea Pty Ltd
Holding
% IC
47,442,571
19,200,000
15,020,925
15,000,000
14,029,044
Ordinary Shares – Range of Units:
Holdings Ranges
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
>100,000
Holders
53
186
211
721
281
1,452
Totals
There are 240 shareholders with less than a marketable parcel.
Total Units
5,495
617,289
1,805,659
30,682,271
229,376,084
262,486,798
Voting rights
Each fully paid ordinary share carries voting rights of one vote per share.
The top 20 holders of ordinary shares are:
Ranking
Holder
1
2
3
4
5
BILINGUAL SOFTWARE PTY LTD
GOLD FIELDS AUSTRALIA PTY LTD
MR MARC DAVID HARDING
MR MING YIU KO
DAVTHEA PTY LTD
MR DAVID RICHARDSON + MRS RYOKO RICHARDSON
MR NEVRES CRLJENKOVIC
CITICORP NOMINEES PTY LIMITED
WESTGATE CAPITAL PTY LTD
AG INVESTMENT SERVICES PTY LTD
KAOS INVESTMENTS PTY LIMITED
BOND STREET CUSTODIANS LIMITED
MR BINH THANH LE
CRLJENKOVIC SUPER FUND PTY LTD
WOMBAT SUPER INVESTMENTS PTY LTD
MR BEVAN JAMES COOTE
GOSOJO PTY LTD
MRS MARISA MACKOW
SERCA SUPERFUND PTY LTD
MR ARDAVAN GHORBANI
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total
Total remaining holders
Shares Held
36,668,823
19,200,000
15,020,925
15,000,000
14,029,044
10,367,502
9,471,248
3,232,540
3,000,000
2,888,888
2,700,000
2,500,000
1,980,000
1,851,428
1,760,000
1,676,208
1,665,000
1,580,000
1,509,234
1,503,860
%
13.97
7.31
5.72
5.71
5.34
3.95
3.61
1.23
1.14
1.10
1.03
0.95
0.75
0.71
0.67
0.64
0.63
0.60
0.57
0.57
147,604,700
114,882,098
56.23
43.77
56
Magmatic Resources Limited
ABN 32 615 598 322
Unquoted equity securities
Unquoted equity securities on issue as at 27 September 2022 was as follows:
- 1 Optionholder holding 3,000,000 options, exercisable at $0.0722, expiring 14 October 2022
- 1 Optionholder holding 10,000,000 options, exercisable at $0.1002, expiring 31 May 2025
- 2 Optionholders holding 4,050,000 options, exercisable at $0.1452, expiring 31 Dec 2024
- 3 Optionholders holding 1,250,000 options, exercisable at $0.1500, expiring 31 October 2024
- 2 Optionholders holding 1,950,000 options, exercisable at $0.1936, expiring 31 Dec 2024
- 2 Optionholders holding 4,000,000 options, exercisable at $0.2062, expiring 28 May 2024
- 2 Optionholders holding 8,000,000 options, exercisable at $0.2322, expiring 30 November 2022
- 2 Optionholders holding 750,000 options, exercisable at $0.2642, expiring 30 September 2023
- 5 Optionholders holding 5,700,000 options, exercisable at $0.3352, expiring 31 January 2023
- 2 Optionholders holding 2,000,000 options, exercisable at $0.5262, expiring 12 February 2023
- 5 Optionholder holding 2,800,000 options, exercisable at $0.5772, expiring 31 January 2023
Tenement Listing
Project Area
Wellington North – Duke
Myall
Parkes – Alectown
Wellington North – Bodangora
Parkes
Wellington North - Combo
Tenement Details
% Held
EL6178
EL6913
EL7424
EL7440
EL7676
EL8357
100
100
100
100
100
100
57