Magmatic Resources Limited
ABN 32 615 598 322
Annual report
for the year ended 30 June 2023
Contents
Corporate Information
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
3
4
14
25
26
27
28
29
30
31
51
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56
Magmatic Resources Limited
ABN 32 615 598 322
Corporate Information
Directors
David J Richardson – Executive Chairman
Adam R McKinnon – Managing Director
David W Berrie – Non-Executive Director
Andrew J Viner – Non-Executive Director
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 17, 221 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
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 from Gold Fields Limited of an
advanced portfolio in the East Lachlan region of New South Wales (Figure 1).
Figure 1. Location of Magmatic’s East Lachlan Projects (Resources from Phillips, 2017; CMOC, 2018; Evolution, 2019;
Newcrest 2019; Alkane 2023)
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 (Figure 1).
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 world class gold‐copper porphyry cluster at the Cadia Valley, where the Cadia East Mine represents
Australia’s largest producer. In addition, the Northparkes copper‐gold porphyry deposits (China
Molybdenum/Sumitomo) and Cowal gold deposit (Evolution Mining) 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 high impact diamond drilling, indicates strong similarities
between the Company’s Myall Project and the Northparkes Mining District, located 60 kilometres to the
south (CMOC, 2022). The recent 14.8 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. Location of the Myall Project showing selected tenement holdings from other major explorers and miners in the
region, along with road and rail infrastructure and major towns (modified after ASX MAG 11 July 2023).
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Magmatic Resources Limited
ABN 32 615 598 322
In the 2020‐2021 financial year the Company defined a wide zone of copper 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), highlighting the potential of this area. Following a review of previous exploration
data, a high impact diamond drilling program was commenced in July 2022, targeting the Kingswood,
Kingswood North and Corvette prospect areas.
Copper mineralisation was intercepted from the first hole of the program (ASX MAG 23 August 2022), with
subsequent drilling defining a large‐scale porphyry‐associated system at the Corvette Prospect. Between
late July 2022 and May 2023, 14 diamond holes for 11,092 metres were completed at Myall, with significant
copper‐gold‐silver‐molybdenum mineralisation intersected in every hole (Figure 3). Some of the best
intersections from this drilling included (ASX MAG 11 July 2023):
22MYDD415
722.5m at 0.29% CuEq; 0.25% Cu, 0.05g/t Au & 14ppm Mo from 134.5m
incl. 111.0m at 0.64% CuEq; 0.55% Cu, 0.10g/t Au & 5ppm Mo from 499m
22MYDD416
413.4m at 0.32% Cu Eq; 0.26% Cu, 0.08g/t Au & 21ppm Mo from 137.6m
incl. 94.0m at 0.53% CuEq; 0.42% Cu, 0.14g/t Au & 42ppm Mo from 230m
22MYDD417
466.6m at 0.36% CuEq; 0.30% Cu, 0.07g/t Au & 12ppm Mo from 134.4m
incl. 154.6m at 0.55% CuEq; 0.47% Cu, 0.10g/t Au & 26ppm Mo from 134.4m
22MYDD418
165.7m at 0.37% CuEq; 0.32% Cu, 0.05g/t Au & 17ppm Mo from 134.3m
incl. 70.7m at 0.60% CuEq; 0.51% Cu, 0.10g/t Au & 24ppm Mo from 134.3m
23MYDD421
51.0m at 0.73% CuEq; 0.46% Cu, 0.33g/t Au & 1ppm Mo from 797m
incl. 13.0m at 1.56% CuEq; 1.07% Cu, 0.61g/t Au & 1ppm Mo from 816m
23MYDD422
875.2m at 0.24% CuEq; 0.21% Cu, 0.04g/t Au & 6ppm Mo from 146.8m
incl. 241.0m at 0.55% CuEq; 0.45% Cu, 0.11g/t Au & 7ppm Mo 261m
23MYDD424
107.0m at 0.41% CuEq; 0.29% Cu, 0.14g/t Au & 8ppm Mo from 183m
incl. 36.0m at 0.63% CuEq; 0.38% Cu, 0.31g/t Au & 8ppm Mo from 237m
Results from the diamond drilling conducted throughout the year were used to report a maiden Inferred
Mineral Resource Estimate (MRE) for the Corvette and Kingswood deposits (ASX MAG 11 July 2023).
Modelling for the MRE was restricted to two zones of higher density drilling associated with the Corvette and
Kingswood deposits (Figures 4 & 5) and contains total Inferred Resources of 110Mt at 0.27% Cu, 0.07g/t Au,
0.8g/t Ag & 10ppm Mo. The Inferred Resources have a contained metal content of 293kt copper, 237koz gold
& 2.8Moz silver, equating to 354Kt copper metal‐equivalent. Indicative grade tonnage figures associated with
the Corvette‐Kingswood model are given in Table 1, with the corresponding grade‐tonnage curves shown in
Figure 6.
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Magmatic Resources Limited
ABN 32 615 598 322
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 (ASX MAG 11 July 2023). Vertical air core holes <150 metres depth are omitted for
clarity.
Figure 4. Plan view showing the relationship between drilling and the Corvette and Kingswood MRE
model (ASX MAG 11 July 2023).
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Magmatic Resources Limited
ABN 32 615 598 322
Figure 5. Cross‐sectional view (looking north) showing the relationship between drilling and the Corvette and Kingswood MRE model
(ASX MAG 11 July 2023).
Table 1. Indicative grade‐tonnage figures associated with Corvette‐Kingswood Resource model. The MRE is reported at a 0.20%
copper‐equivalent cut‐off grade (highlighted in orange).
Cut‐off
(CuEq%)
Tonnage
(Mt)
CuEq
(%)
Cu
(%)
Grade
Au
(g/t)
Ag
(g/t)
Mo
(ppm)
CuEq
(kt)
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
0.50
0.60
740
490
280
170
110
73
49
34
22
15
10
4
0.11
0.09
0.02
0.15
0.13
0.02
0.21
0.18
0.04
0.27
0.22
0.05
0.33
0.27
0.07
0.38
0.31
0.08
0.42
0.34
0.09
0.47
0.38
0.11
0.52
0.41
0.12
0.57
0.45
0.14
0.61
0.48
0.16
0.70
0.53
0.21
0.3
0.5
0.6
0.7
0.8
0.9
1.0
1.0
1.1
1.2
1.2
1.3
6
7
8
9
10
12
14
17
19
20
22
21
822
750
594
459
358
274
209
159
116
85
63
31
Contained Metal
Cu
(kt)
696
636
500
381
293
223
169
127
92
67
49
24
Au (koz)
Ag
(Moz)
Mo
(kt)
433
391
333
282
237
189
150
119
89
68
52
30
8.2
7.2
5.2
3.7
2.8
2.1
1.5
1.1
0.8
0.6
0.4
0.2
4.2
3.5
2.4
1.6
1.1
0.9
0.7
0.6
0.4
0.3
0.2
0.1
8
)
t
M
(
e
g
a
n
n
o
T
400
350
300
250
200
150
100
50
0
Magmatic Resources Limited
ABN 32 615 598 322
Mt
CuEq (%)
Cu (%)
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
)
%
(
e
d
a
r
G
e
g
a
r
e
v
A
0.0
0.1
0.2
0.3
0.4
0.5
0.6
Cut‐off Grade (CuEq%)
Figure 6. Indicative grade‐tonnage curve for the Corvette and Kingswood deposits (ASX MAG 11 July 2023).
The MRE was reported at a 0.20% copper‐equivalent cut‐off, with the equivalency being derived from initial
metallurgical test work conducted during the June quarter (ASX MAG 30 May 2023). This testwork showed
that sulphide mineralisation at Corvette could be treated by conventional froth flotation (Figure 7) to
produce a bulk Cu‐Au‐Ag sulphide concentrate. The test work comprised grind establishment, mineralogical
characterisation and rougher and cleaner flotation tests. Results indicate sulphide mineralisation from
Corvette is amenable to treatment by industry standard grinding and flotation techniques and that gold and
silver upgrade with the copper. Future metallurgical work may look to produce a separate molybdenum
concentrate, with high Mo grades previously noted from multiple holes.
Figure 7. Photographs showing desktop rougher (left) and cleaner (right) froth flotation test work on a mineralised composite from
the Corvette Prospect conducted by ALS Metallurgy in Burnie, Tasmania (ASX MAG 30 May 2023).
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Magmatic Resources Limited
ABN 32 615 598 322
The Company’s technical team also utilised the multi‐element geochemical dataset collected from the drilling
throughout the year to test vectors useful in targeting higher grade zones. This analysis was particularly
focused on element zonation and variations in alteration signatures associated with potential mineralising
intrusives. Re‐analysis of the basement copper and gold geochemistry has defined multiple large scale targets
with similar geochemical and geophysical signatures to Corvette (Figures 8).
The Company noted that follow‐up diamond coring (totaling ~26,000 metres) is almost entirely limited to the
Kingswood/Corvette/Barina prospect area on the central western edge of the tenement (defined by the
dashed red square in Figure 8). Despite of the multi‐kilometre scale copper‐gold anomalous trends ‐
particularly to the east – the remainder of the tenement is still largely under‐explored, with less than 450
metres of follow‐up diamond coring in total.
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Magmatic Resources Limited
ABN 32 615 598 322
Figure 8. Plan of the Myall project area over satellite imagery showing existing prospects, road and rail infrastructure and basement
copper and gold geochemistry (ASX MAG 11 July 2023).
Wellington North Project (Gold‐Copper)
Magmatic Resources Limited 100%
Magmatic’s 100%‐owned Wellington North Project covers the northern extension of the Molong Volcanic
Belt, located north of Australia’s largest gold producer at Cadia (ASX:NCM) and immediately adjacent to and
2km from Alkane’s recent 14.8Moz gold‐equivalent Boda and Kaiser porphyry gold‐copper discovery (ASX
ALK 27 February 2023).
The Wellington North Project includes the historic Bodangora Gold Field, where 230,000 ounces at ~26g/t Au
were produced between 1869‐1917 (ASX MAG 17 May 2017) alongside an extensive portfolio of Boda‐style
porphyry gold‐copper and Bodangora‐style high grade gold targets (Figure 9). Encouraging porphyry‐style
mineralisation has been intercepted in drilling at multiple locations at Wellington North, including:
71m at 0.43% Cu, 0.30g/t Au & 59ppm Mo from surface at Rosehill (ASX MAG 17 May 2017)
41m at 0.25 g/t Au & 0.11% Cu at Lady Ilse (ASX MAG 10 September 2020)
13m at 0.72 g/t Au & 0.36% Cu at Lady Ilse (ASX MAG 10 September 2020)
45m at 0.44g/t Au at Lady Ilse (ASX MAG 24 December 2020)
Figure 9. Aeromagnetic imagery (RTP) showing the Magmatic’s target portfolio in the Wellington North Project area and highlighting
the proximity to the 14.8Moz AuEq Boda‐Kaiser discovery (ASX ALK 27 February 2023).
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Magmatic Resources Limited
ABN 32 615 598 322
No significant on‐ground activities were completed at the Wellington North Project during this financial year
while the focus remained on the high‐impact diamond program at Myall. The Company’s technical team
continues to review the potential for Boda‐style gold‐copper mineralisation at a number of key prospects in
the Wellington North area, with further on‐ground exploration currently being considered.
Parkes Project (Gold)
Magmatic Resources Limited 100%
The Parkes Project comprises two exploration licences located within the Parkes Fault Zone, approximately
30 kilometres south from Alkane’s Tomingley Gold Operations and recently defined resources at Roswell of
858,000oz of gold and 406,000oz of gold at San Antonio (ASX ALK 13 September 2023). 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)
No on‐ground exploration activities were undertaken at the Parkes Project during the financial year, with the
focus on the high impact drilling program at the Myall Project to the North.
Figure 10. Parkes Project with aeromagnetic imagery, showing the position along strike from Tomingley Gold Mine (ASX:ALK) within
the highly prospective Parkes Fault Zone
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Magmatic Resources Limited
ABN 32 615 598 322
References
Alkane Resources, 2023. Resources and Reserves Statement FY23. 13 September 2023.
CMOC., 2022. Northparkes Mining and Technical Information. http://www.northparkes.com/news/
Evolution, 2022. Cowal Mine Fact Sheet. https://evolutionmining.com.au/cowal/
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
Newcrest, 2020, Cadia Operations NI 43‐101 Technical Report, 30 June 2020,
https://www.newcrest.com/investor‐centre/results‐reports?report_type=7
Phillips, G N (Ed), 2017. Australian Ore Deposits, The Australasian Institute of Mining and Metallurgy:
Melbourne
Competent Persons Statement
Compilation of exploration and drilling data, along with assay validation and geological interpretations for
the Mineral Resource Estimate was coordinated by Adam McKinnon, BSc (Hons), PhD, MAusIMM, who is
Managing Director and a full‐time employee of Magmatic Resources Limited. Dr McKinnon 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 release 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.
The information in this ASX release that relates to the Mineral Resource Estimate is based on information
compiled by Arnold van der Heyden, a Member and Chartered Professional (Geology) of the AusIMM. Mr van
der Heyden is a full‐time employee of H&S Consultants Pty Ltd. Mr van der Heyden has sufficient experience
that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being
undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr van der Heyden consents to the
inclusion in this report of the matters based on his information in the form and context in which it appears.
13
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
David W Berrie – Non-Executive Director
Andrew J Viner – Non-Executive Director
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 4 to 13 of this
Annual Report.
Financial review
The loss for the Group after providing for income tax for the financial year amounted to $7,491,491 (2022: $3,019,039).
As at 30 June 2023, the Group had net assets of $4,341,017 (30 June 2022: $6,731,700), including cash and cash
equivalents of $2,855,309 (30 June 2022: $5,018,580).
Significant changes in the state of affairs
The Group raised $794,200 from option holders who exercised 11,000,000 options as well as raising a further
$4,020,600 from shareholders who subscribed to 40,206,000 new shares issued pursuant to a share purchase plan
(ASX:MAG 25 November 2022).
The Company’s retained 5.64% shareholding in Australian Gold and Copper Ltd was revalued down by $95,841 at
30 June 2023 (2022: revalued down by $394,632), based on the AGC closing market price of $0.053 from its 30 June
2022 price of $0.070.
Matters subsequent to the end of the financial year
There has not been any matter or circumstance that has arisen after balance date that has significantly affected, or
may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the
Group in future financial periods.
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.
14
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 a 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 and member of the Audit and Risk Committee
Interests in shares and options at the date of this report:
47,442,571 ordinary shares (indirectly held) and 6,000,000 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:
720,000 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 and member of the Audit and Risk Committee
Interests in shares and options at the date of this report:
14,029,044 ordinary shares (indirectly held) and 3,000,000 options (indirectly held).
15
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)
Special Responsibilities: Member of the Audit and Risk Committee
Interests in shares and options at the date of this report:
543,000 ordinary shares (533,000 indirectly held and 10,000 directly held) ) and 1,000,000 options (indirectly held).
Meetings of directors
During the financial year there were six 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 Company has an Audit and Risk Committee. The directors have determined that the Company is not of a
sufficient size to merit the establishment of any other committees of the Board, and therefore duties ordinarily
assigned to committees other than the Audit and Risk Committee are carried out by the full Board.
The number of meetings of the Company’s board of directors attended by each director were:
Directors’
meetings
entitled to
attend
6
6
6
6
Directors’
meetings
attended
6
6
6
6
Audit and Risk
Committee
Meeting entitled
to attend
2
-
2
2
Audit and Risk
Committee
Meeting
attended
2
-
2
2
D Richardson
A McKinnon
D Berrie
A Viner
Shares under option
Outstanding share options at the date of this report are as follows:
Grant date
24 September 2020
25 September 2020
28 May 2021
27 October 2021
29 November 2021
29 November 2021
15 March 2022
25 November 2022
Date of expiry
30 September 2023
30 September 2023
28 May 2024
31 October 2024
31 December 2024
31 December 2024
31 May 2025
31 December 2025
Exercise price
Number of options
$0.2642
$0.2642
$0.2062
$0.1500
$0.1452
$0.1936
$0.1002
$0.1440
500,000
250,000
4,000,000
1,250,000
4,050,000
1,950,000
10,000,000
6,500,000
Shares issued on the exercise of options
Options Grant Date
14 October 2019
22 October 2019
Date of Expiry
14 October 2022
30 November 2022
Date Exercised
13 September 2022
14 October 2022
Exercised Price
$0.0722
$0.0722
Number of Options
8,000,000
3,000,000
16
Magmatic Resources Limited
ABN 32 615 598 322
Material Business Risks
The Group makes every effort to identify materials risks and to manage these effectively. This section does
not attempt to provide an exhaustive list of risks faced by the Group or by investors in the Group, nor are
they in order of significance. Actual events may be different to those described.
The Board aims to manage these risks by carefully planning its activities and implementing risk control
measures. Some of the risks are, however, highly unpredictable and the extent to which the Board can
effectively manage them is limited.
a) Tenure and access risk
Applications
While the Company does not anticipate there to be any issues with the grant of its tenement applications,
there can be no assurance that the applications (or any future applications) will be granted. While the
Company considers the risk to be low, there can also be no assurance that when the relevant tenement is
granted, it will be granted in its entirety. Some of the tenement areas applied for may be excluded.
Renewal
Mining and exploration tenements are subject to periodic renewal. The renewal of the term of granted
tenements is subject to the discretion of the relevant authority. Renewal conditions may include increased
expenditure and work commitments or compulsory relinquishment of areas of the tenements. The
imposition of new conditions or the inability to meet those conditions may adversely affect the operations,
financial position and/or performance of the Company.
Access
A number of the tenements overlap certain third-party interests that may limit the Company's ability to
conduct exploration and mining activities, including private land, Crown Reserves, areas on which native
title is yet to be determined and other forms of tenure for railways, pipelines, renewable energy
infrastructure and similar third party interests.
Where the tenement overlaps private land, exploration and mining activity on the tenement may require
authorisation or consent from the owners of that land. The Company is required to enter into land access
agreements to undertake its proposed exploration program on the tenements and such land access
agreements are entered into prior to exploration activities commencing. The Company intends to carry out
heritage clearance surveys before implementing its proposed exploration program if required to do so. The
Company's current proposed exploration program is not impacted by the known sites of registered
aboriginal heritage significance.
b) Exploration Risk
Potential investors should understand that mineral exploration and development are high-risk
undertakings. There can be no assurance that exploration of the Project, or any other tenements that may
be acquired in the future, will result in the discovery of an economic ore deposit. Even if an apparently
viable deposit is identified, there is no guarantee that it can be economically exploited.
The success of the Company will also depend upon the Company having access to sufficient development
capital, being able to maintain title to its projects and obtaining all required approvals for its activities. In
the event that exploration programmes prove to be unsuccessful, this could lead to a diminution in the
value of the Tenements, a reduction in the cash reserves of the Company and possible relinquishment of
its projects.
c) Climate Change
The operations and activities of the Company are subject to changes to local or international compliance
regulations related to climate change mitigation efforts, specific taxation or penalties for carbon emissions
or environmental damage and other possible restraints on industry that may further impact the Company.
While the Company will endeavour to manage these risks and limit any consequential impacts, there can
be no guarantee that the Company will not be impacted by these occurrences.
17
Magmatic Resources Limited
ABN 32 615 598 322
Climate change may also cause certain physical and environmental risks that cannot be predicted by the
Company, including events such as increased severity of weather patterns, incidence of extreme weather
events and longer-term physical risks such as shifting climate patterns. All these risks associated with
climate change may significantly change the industry in which the Company operates.
d) Reliance on Key Personnel
The Company's future depends, in part, on its ability to attract and retain key personnel. It may not be able
to hire and retain such personnel at compensation levels consistent with its existing compensation and
salary structure. Its future also depends on the continued contributions of its key management and
technical personnel, the loss of whose services would be difficult to replace. In addition, the inability to
continue to attract appropriately qualified personnel could have a material adverse effect on the
Company's business.
e) Environmental
The operations and proposed activities of the Company are subject to Australian laws and regulations
concerning the environment. As with most exploration projects and mining operations, the Company's
activities are expected to have an impact on the environment, particularly if advanced exploration or mine
development proceeds. It is the Company's intention to conduct its activities to the highest standard of
environmental obligation, including compliance with all environmental laws.
The disposal of mining and process waste and mine water discharge are under constant legislative scrutiny
and regulation. There is a risk that environmental laws and regulations become more onerous making the
Company's operations more expensive. Approvals are required for land clearing and for ground disturbing
activities. Delays in obtaining such approvals can result in the delay to anticipated exploration programmes
or mining activities.
The Company provides cash security bonds as a condition of its’ exploration licences, and the Company’s
access to these security bonds once exploration activities have been completed are subject to the
satisfactory completion of the rehabilitation obligations outlined in the exploration licences as assessed by
the relevant state government department.
f) Native title
The Native Title Act recognises and protects the rights and interests in Australia of Aboriginal and Torres
Strait Islander people in land and waters, according to their traditional laws and customs. There is significant
uncertainty associated with Native Title in Australia and this may impact on the Company's operations and
future plans.
The Company is required to enter into land access agreements to undertake its proposed exploration
program on the tenements and such land access agreements are entered into prior to exploration activities
commencing. The Company intends to carry out heritage clearance surveys before implementing its
proposed exploration program if required to do so. The Company's current proposed exploration program
is not impacted by the known sites of registered aboriginal heritage significance.
g) Economic
General economic conditions, introduction of tax reform, new legislation, movements in interest and inflation
rates and currency exchange rates may have an adverse effect on the Company, as well as on its ability to
fund its operations.
h) Additional requirements for capital
The Company's capital requirements depend on numerous factors. The Company may require further
financing in addition to amounts raised under the Offer. Any additional equity financing will dilute
shareholdings, and debt financing, if available, may involve restrictions on financing and operating activities.
If the Company is unable to obtain additional financing as needed, it may be required to reduce the scope
of its operations. There is however no guarantee that the Company will be able to secure any additional
funding or be able to secure funding on terms favourable to the Company.
18
Magmatic Resources Limited
ABN 32 615 598 322
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 2023. 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
David Berrie – Non-Executive Director
Andy Viner – Non-Executive Director
(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
A
Principles used to determine the nature and amount of remuneration
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
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.
19
Magmatic Resources Limited
ABN 32 615 598 322
For the year ended 30 June 2023, exclusive of superannuation guarantee, the annual cash remuneration for the
Non-Executive Directors was $140,000.
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 2023.
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
2,000,000
25 Nov 2022
25 Nov 2022
David Berrie
Andy Viner
1,000,000
25 Nov 2022
25 Nov 2022
1,000,000
25 Nov 2022
25 Nov 2022
3.10
3.10
3.1
31 Dec 2025
$0.065
$0.144
3.275%
$0.031123
31 Dec 2025
$0.065
$0.144
3.275%
$0.031123
31 Dec 2025
$0.065
$0.144
3.275%
$0.031123
Michael Franklin
500,000
25 Nov 2022
25 Nov 2022
3.10
31 Dec 2025
$0.065
$0.144
3.275%
$0.031123
# 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 2023:
2022
Name & Grant
dates
D Richardson
25 Nov 2022
21 Nov 2021
Balance at the start of
the year
Unvested
Vested
-
4,000,000
23 Jan 2020
4,000,000
A McKinnon
15 Mar 2022
10,000,000
D Berrie
25 Nov 2022
21 Nov 2021
-
2,000,000
23 Jan 2020
2,000,000
A Viner
25 Nov 2022
-
M Franklin
25 Nov 2022
27 Oct 2021
-
500,000
-
-
-
-
-
-
-
-
-
-
Granted as
compensation
2,000,000
-
-
-
1,000,000
-
-
1,000,000
500,000
-
Vested
Forfeited
Balance at the end of the
year
Number
%
Exercised
Number
%
Other
changes
Vested and
exercisable
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,000,000
100
-
-
-
-
-
-
2,000,000
100
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Unvested
2,000,000
4,000,000
-
10,000,000
1,000,000
2,000,000
-
1,000,000
500,000
500,000
Performance rights
No performance rights were issued during the year ended 30 June 2023.
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.
The table below shows the losses and earnings per share of the Company for the last five financial years:
2023
2022
2021
2020
2019
Net profit / (loss)
($7,491,491)
($3,019,039)
$1,188,014
($4,318,026)
($1,993,025)
Share Price at year end (cents)
9.0
Profit / (Loss) per share (cents)
(2.73)
5.2
(1.13)
12.5
0.58
27.0
(3.02)
1.8
(1.76)
21
Magmatic Resources Limited
ABN 32 615 598 322
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 2023 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 2023
Name
Director
D Richardson
A McKinnon
D Berrie
A Viner
Key Management Personnel
M Franklin
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
Post-
employment
benefits /
Superannuation
$
Share-based
compensation
$
Other
$
Total
$
25,200
36,750
10,500
4,200
10,929
87,579
178,933
186,602
89,467
5,966
-
-
-
-
444,133
573,352
199,967
50,166
11,116
472,084
-
126,128
- 1,393,746
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
Salary /
Fees
$
240,000
350,000
100,000
40,000
104,083
834,083
Salary /
Fees
$
225,725
103,985
90,000
21,692
162,800
100,000
704,202
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.
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.
22
Magmatic Resources Limited
ABN 32 615 598 322
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
$107,000
N/A
N/A
N/A
D
Key management personnel equity holdings
2023
Ordinary shares
Directors
D Richardson
A McKinnon
D Berrie
A Viner
Other Key management personnel
M Franklin
Options
Directors
D Richardson
A McKinnon
D Berrie
A Viner
Other Key management personnel
M Franklin
Balance at
beginning of year
Net movement
during the year
Balance at the
end of year
47,442,571
240,000
14,029,044
243,000
-
480,000
-
300,000
47,442,571
720,000
14,029,044
543,000
201,110
598,890
800,000
8,000,000
10,000,000
4,000,000
-
(2,000,000)
-
(1,000,000)
1,000,000
6,000,000
10,000,000
3,000,000
1,000,000
500,000
500,000
1,000,000
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.
Transactions with Key Management Personnel
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 2022 Annual General Meeting
Magmatic Resources Ltd received more than 98.98% of “yes” votes on its remuneration report for the 2022
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.
23
Magmatic Resources Limited
ABN 32 615 598 322
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 23 and forms part of this directors’ report for the year ended
30 June 2023.
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
Total auditor’s remuneration
Proceedings on behalf of Company
Consolidated
2023
$
2022
$
48,293
48,293
43,680
43,680
48,293
43,680
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.
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 2023
24
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 2023, 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 entity it controlled during the
period.
Dean Just
Director
BDO Audit (WA) Pty Ltd
Perth
28 September 2023
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.
25
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 2023 Corporate Governance Statement is lodged with the ASX as a separate document to the Annual
Report.
The 2023 Corporate Governance Statement was approved by the Board on 28 September 2023 and is current
as at 30 June 2023. 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.
26
Magmatic Resources Limited
ABN 32 615 598 322
Consolidated Statement of Profit or Loss and Other
Comprehensive Income for the year ended 30 June 2023
Continuing Operations
Other income
Corporate administration expenses
Exploration and evaluation expenses
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)
Consolidated
2023
$
187,055
187,055
(1,267,465)
(5,847,743)
(563,085)
(253)
(7,678,546)
2022
$
77,179
77,179
(896,240)
(2,085,934)
(111,747)
(2,297)
(3,096,218)
(7,491,491)
(3,019,039)
-
-
(7,491,491)
(3,019,039)
-
-
(95,841)
-
(394,632)
-
(7,587,332)
(3,413,671)
(7,587,332)
(3,413,671)
($0.027)
($0.027)
($0.013)
($0.013)
Note
2
3
3
12
4
9
5
5
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in
conjunction with the accompanying notes.
27
Magmatic Resources Limited
ABN 32 615 598 322
Consolidated Statement of Financial Position
as at 30 June 2023
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
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
Note
Consolidated
2023
$
2022
$
7
8
9
2,855,309
79,920
5,018,580
116,948
2,935,229
5,135,528
105,096
122,300
1,368,350
-
298,790
134,986
74,300
1,368,350
21,529
394,631
1,894,537
1,993,796
4,829,765
7,129,324
10
488,748
-
375,016
22,608
488,748
397,624
488,748
397,624
4,341,017
6,731,700
11
12
21,728,407
4,947,500
(22,334,890)
17,094,843
4,480,256
(14,843,399)
4,341,017
6,731,700
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying
notes.
28
Consolidated Statement of Changes in Equity for the year ended 30 June 2023
Magmatic Resources Limited
ABN 32 615 598 322
Share
Based
Payments
Reserve
$
Capital
Restructure
Reserve
$
Fair Value Other
Comprehensive
Income ("FVOCI")
Reserve
Issued
Capital
$
Accumulated
Losses
$
Total
Equity
$
Consolidated
Balance at 1 July 2021
Profit 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)/profit 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
Balance at 30 June 2022
17,094,843
5,212,894
Balance at 1 July 2022
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
17,094,843
-
-
5,212,894
-
-
Total comprehensive loss for the year
-
-
Transactions with owners recorded directly in equity
Share-based payments
Issue of ordinary shares
Capital raising expenses
-
4,814,800
(181,236)
563,085
-
-
Total transactions with owners recorded directly in equity
4,633,564
563,085
250
-
-
-
-
-
-
-
250
250
-
-
-
-
-
-
-
(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)
(732,888)
(14,843,399)
6,731,700
(732,888)
-
(95,841)
(14,843,399)
(7,491,491)
-
6,731,700
(7,491,491)
(95,841)
(95,841)
(7,491,491)
(7,587,332)
-
-
-
-
-
-
563,085
4,814,800
(181,236)
(95,841)
(7,491,491)
(2,390,683)
Balance at 30 June 2023
21,728,407
5,775,979
250
(828,729)
(22,334,890)
4,341,017
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
29
Magmatic Resources Limited
ABN 32 615 598 322
Consolidated Statement of Cash Flows
for the year ended 30 June 2023
Consolidated
Note
2023
$
2022
$
Cash flows from operating activities
Receipts from customers and Government Subsidies
Payments to suppliers and employees
Payments for exploration expenditure
Net Interest received / (paid)
69,101
(1,204,978)
(5,712,935)
136,405
53,199
(907,784)
(2,718,430)
17,735
Net cash used in operating activities
17(a)
(6,712,407)
(3,555,280)
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
Proceeds from share placement
Payment of capital raising costs
Net cash from financing activities
(13,819)
(48,000)
(61,819)
(9,936)
(5,000)
(14,936)
(22,608)
794,200
4,020,600
(181,236)
(48,036)
2,514,561
-
-
4,610,956
2,466,525
Net increase/(decrease) in cash and cash equivalents
(2,163,271)
(1,103,691)
Cash and cash equivalents at the beginning of the year
5,018,580
6,122,271
Cash and cash equivalents at the end of the year
7
2,855,309
5,018,580
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
30
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2023
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)
(b)
(c)
Adoption of new and revised accounting standards and interpretations
In the year ended 30 June 2023, 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 2022. 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.
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 2023. 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.
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 2023.
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
or losses on transactions between group entities are fully eliminated on consolidation. Accounting policies
31
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2023
of subsidiaries have been changed and adjustments made where necessary to ensure uniformity of the
accounting policies adopted by the Group.
(g)
(h)
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.
(i)
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.
(j)
(k)
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.
(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
32
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2023
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
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.
33
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2023
Trade and other payables
(m)
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.
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.
34
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2023
(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.
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.
35
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2023
(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.
(t)
(u)
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.
In-specie distribution
The share capital of the Company was reduced by the fair value of an investment that was returned to
shareholders.
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.
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 (p).
36
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2023
Consolidated
Note 2: Other income
AGC shared services agreement income
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
2023
$
54,099
-
136,658
(3,702)
187,055
43,709
208,738
-
22,024
12,481
99,962
692,356
61,896
126,301
1,267,465
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
5,847,743
5,847,743
2,085,934
2,085,934
37
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2023
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% (2022: 25%)
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% (2022: 25%)
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
Consolidated
2023
$
2022
$
(7,491,491)
(1,872,872)
(3,019,039)
(754,760)
-
140,771
(48,539)
-
-
-
-
1,780,640
-
(95,839)
23,959
-
27,936
(39,477)
-
-
-
(971,627)
1,737,927
-
(394,634)
98,658
(23,959)
-
(98,658)
-
6,327
-
59,685
98,251
207,182
4,388,756
4,760,201
8,099
838
8,937
5,450
270
44,392
120,043
183,222
2,612,765
2,966,142
16,085
165
16,250
Net unrecognised deferred tax assets
4,751,264
2,949,892
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 2023, the Consolidated Entity has $17,555,023 (2022: $10,451,059) 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.
38
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2023
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
2023
$
2022
$
(0.0273)
(0.0273)
(0.0134)
(0.0134)
(7,491,491)
(3,019,039)
274,530,842
224,922,757
28,500,000
51,500,000
303,030,842
276,422,757
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
2023
$
2022
$
2,855,309
2,855,309
5,018,580
5,018,580
(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
2023
$
2022
$
1,368,350
-
-
1,368,350
-
-
1,368,350
1,368,350
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.
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.
39
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2023
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
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
2023
$
394,631
(95,841)
298,790
2022
$
789,263
(394,632)
394,631
Consolidated
2023
$
295,153
191,159
2,436
488,748
2022
$
154,737
218,407
1,872
375,016
Consolidated
2023
$
2022
$
305,692,798 (2022: 254,486,798) ordinary shares
21,728,407
17,094,843
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.
40
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2023
(b) Movements in ordinary share capital:
Date
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
Details
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
Balance as at 30 June 2022
13 September 2022
14 October 2022
23 November 2022
04 January 2023
19 January 2023
Options exercised at $0.0722
Options exercised at $0.0722
Share Placement at $0.10 per share
Share Placement at $0.10 per share
Share Placement at $0.10 per share
Capital Raising Expenses
Balance as at 30 June 2023
Number of
shares
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
254,486,798
8,000,000
3,000,000
30,206,000
2,800,000
7,200,000
305,692,798
$
14,580,282
361,000
31,876
220,817
11,913
200,525
386,912
425,009
876,508
17,094,843
17,094,843
577,600
216,600
3,020,600
280,000
720,000
(181,236)
21,728,407
(c) Movements in share options
2023
Weighted
average
exercise price
2022
Weighted
average
exercise price
Number of
Options
Number of
Options
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
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
3,000,000
-
(3,000,000)
-
-
16,000,000
-
(8,000,000)
(8,000,000)
-
0.0722
-
0.0722
-
-
3,000,000
-
-
-
3,000,000
0.1522
-
0.0722
0.2322
-
28,000,000
-
(12,000,000)
-
16,000,000
8,500,000
-
-
(8,500,000)
-
0.4149
-
-
0.4149
-
14,500,000
-
-
(6,000,000)
8,500,000
0.0722
-
-
-
0.0722
0.1179
-
0.0722
-
0.1522
0.4153
-
-
0.3352
0.4149
41
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2023
2023
2022
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
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
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
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
(1) 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
(2) 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
8,500,000
-
-
(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
6,000,000
-
-
-
6,000,000
0.4149
-
-
0.4149
-
0.5262
-
-
0.5262
-
0.2642
-
-
-
0.2642
0.2062
-
-
-
0.2062
0.1500
-
-
-
0.1500
0.1609
-
-
-
0.1609
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
-
6,000,000
-
-
6,000,000
0.4153
-
-
0.3352
0.4149
0.5262
-
-
-
0.5262
0.2642
-
-
-
0.2642
0.2062
-
-
-
0.2062
-
0.1500
-
-
0.1500
-
0.1609
-
-
0.1609
42
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2023
2023
2022
Number of
Options
Weighted
average
exercise price
Number of
Options
Weighted
average
exercise price
(3) 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
(4) Unlisted Options to acquire
ordinary fully paid shares on or before
31 December 2025:
Beginning of the financial year
Issued during the year
Converted during the year
Expired during the year
Balance at end of financial year
10,000,000
-
-
-
10,000,000
-
6,500,000
-
-
6,500,000
0.1002
-
-
-
0.1002
-
0.1440
-
-
0.1440
-
10,000,000
-
-
10,000,000
-
0.1002
-
-
0.1002
-
-
-
-
-
-
-
-
-
-
(1) During the prior 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
(2) During the prior 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
(3) During the prior 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
43
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2023
4) During the year, the Group issued 6,500,000 options with the fair value of $202,298 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
$0.0645
$0.1440
100%
3.10 years
0.00%
3.275%
$0.031
Grant Date
25 November
2022
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
Fair Value Other Comprehensive Income ("FVOCI") Reserve
Opening balance
Fair Value Other Comprehensive Income ("FVOCI") Reserve movement
Closing balance
Consolidated
2023
$
2022
$
250
-
250
250
-
250
5,212,894
563,085
-
5,775,979
5,101,147
111,747
-
5,212,894
(732,888)
(95,841)
(828,729)
(338,256)
(394,632)
(732,888)
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].
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
44
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2023
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 2023, if interest rates had changed by + 50 basis points and all other variables were held constant, the
Group’s loss would have been $23,085 (2022: $31,832) 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 $23,085 (2022: $31,832).
(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.
45
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2023
(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.
2023
Weighted
Average
Interest
Rate
Less than
1 month
1-3
months
3 months
– 1 year
1 + years
Financial assets
Cash and cash equivalents – non - interest bearing
Cash and cash equivalents – interest bearing
Investments held at fair value
Trade and other receivables
n/a
2.98%
n/a
n/a
Financial liabilities
Trade and other payables
Lease Liabilities
2022
n/a
n/a
Weighted
Average
Interest
Rate
Financial assets
Cash and cash equivalents – non - interest bearing
Cash and cash equivalents – interest bearing
Investments held at fair value
Trade and other receivables
n/a
0.32%
n/a
n/a
Financial liabilities
Trade and other payables
Lease Liabilities
n/a
5%
$
$
-
2,000,000
-
-
2,000,000
105,068
750,241
-
4,689
859,998
250,006
-
250,006
$
$
-
4,500,000
-
-
4,500,000
68,533
450,046
-
4,439
523,018
197,446
4,510
201,956
151,309
-
151,309
87,433
-
87,433
-
-
-
Less than
1 month
1-3
months
3 months
– 1 year
1 + years
$
-
-
-
-
-
$
-
-
298,790
128,000
426,790
$
-
-
-
-
-
$
-
-
394,631
84,229
478,860
118,056
13,529
131,585
59,514
4,569
64,083
-
-
-
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 $962,890 (2022: $962,650).
46
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2023
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
D Berrie – Non-Executive Director and Joint Company Secretary
A Viner – Non-Executive Director
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
2023
$
834,083
87,579
472,084
-
1,393,746
2022
$
704,202
67,920
1,991
-
774,113
Detailed remuneration disclosures of directors and key management personnel are in pages 19 to 23 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.
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
2023
%
100
100
2022
%
100
100
47
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2023
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
(7,491,491)
(3,019,039)
Consolidated
2023
$
2022
$
Share based payment expense
Depreciation
ROU Asset Amortisation
Movements in working capital
(Increase) / Decrease in other receivables
(Increase) / Decrease in prepayments
Increase / (Decrease) in trade and other payables
563,085
43,709
21,529
111,747
27,440
47,237
10,703
26,325
113,733
15,688
(25,008)
(713,345)
Net cash outflows from operating activities
(6,712,407)
(3,555,280)
b) Non-cash financing and investing activities
There were no non-cash financing and investing activities in the financial year ended 30 June 2023.
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)
2023
$
2,821,445
1,670,051
4,491,495
2022
$
5,027,454
1,768,493
6,795,947
160,203
160,203
178,376
178,376
4,331,292
6,617,571
21,773,556
5,031,199
(22,473,463)
17,139,992
4,434,858
(14,957,279)
4,331,292
6,617,571
(1,397,830)
(95,841)
(1,493,671)
(848,979)
(394,632)
(1,243,611)
48
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2023
Commitments
Refer to note 14: Capital and Other Commitments.
Contingencies
There were no contingent assets or liabilities of the parent as at 30 June 2023 related to exploration and
evaluation expenditure (30 June 2022: $ nil).
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
There are no deeds of cross guarantee in place by the parent entity.
Note 19: Events after the reporting date
There has not been any matter or circumstance that has arisen after balance date that has significantly affected, or
may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group
in future financial periods.
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
Consolidated
2023
$
2022
$
48,293
48,293
43,680
43,680
Total auditor’s remuneration
48,293
43,680
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 2023
Level 1
$
Level 2
$
Level 3
$
Financial assets as FVOCI – Equity Securities
298,790
As at 30 June 2022
Financial assets as FVOCI – Equity Securities
394,631
-
-
-
-
Total $
298,790
394,631
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.
49
Magmatic Resources Limited
ABN 32 615 598 322
Notes to the consolidated financial statements for the
year ended 30 June 2023
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).
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.
50
Magmatic Resources Limited
ABN 32 615 598 322
Directors’ declaration
1.
In the opinion of the directors of Magmatic Resources Limited (the “Company”):
a.
b.
c.
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 2023 and of its performance
for the financial year then ended; and
ii. complying with Accounting Standards, Corporations Regulations 2001, professional reporting
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 2023.
This declaration is signed in accordance with a resolution of the Board of Directors.
D Richardson
Chairman
Perth, Western Australia
28 September 2023
51
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 2023, 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 2023 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.
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.
52
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.
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(u) of the
financial report.
•
•
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
In accordance with AASB 6 Exploration for and
management, and reviewing the Group’s
Evaluation of Mineral Resources (‘AASB 6’), the
exploration budgets, ASX announcements and
recoverability of exploration and evaluation
director’s minutes;
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.
•
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(u) and 8 to the
financial report.
53
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 2023, 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.
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
54
We have audited the Remuneration Report included on pages 19 to 23 of the directors’ report for the
year ended 30 June 2023.
In our opinion, the Remuneration Report of Magmatic Resources Limited, for the year ended 30 June
2023, 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 2023
55
15.52%
8.87%
6.28%
%
0.00
0.20
0.74
11.94
87.12
100.00
Magmatic Resources Limited
ABN 32 615 598 322
Additional Shareholder Information
The following additional information is current as at 27 September 2023.
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
Mr Ming Yiu Ko
Gold Fields Australia Pty Ltd
Holding
% IC
47,442,571
27,100,000
19,200,000
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
55
178
272
851
316
1,672
Totals
There are 328 shareholders with less than a marketable parcel.
Total Units
3,770
605,495
2,263,232
36,504,881
266,315,420
305,692,798
Voting rights
Each fully paid ordinary share carries voting rights of one vote per share.
The top 20 holders of ordinary shares are:
Ranking
1
2
3
4
5
Holder
BILINGUAL SOFTWARE PTY LTD
MR MING YIU KO
GOLD FIELDS AUSTRALIA PTY LTD
DAVTHEA PTY LTD
MR MARC DAVID HARDING
MR DAVID RICHARDSON + MRS RYOKO RICHARDSON
MR NEVRES CRLJENKOVIC
GLENEDEN NOMINEES PTY LTD
MR ROBERT ANTHONY HEALY
AG INVESTMENT SERVICES PTY LTD
CITICORP NOMINEES PTY LIMITED
YERONDA NOMINEES PTY LTD
KAOS INVESTMENTS PTY LIMITED
BLUE CAPITAL EQUITIES PTY LTD
MR BINH THANH LE
GOSOJO PTY LTD
MR ALAN GOODFELLOW
CRLJENKOVIC SUPER FUND PTY LTD
SERCA SUPERFUND PTY LTD
WOMBAT SUPER INVESTMENTS PTY LTD
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total
Total remaining holders
Shares Held
36,668,823
27,100,000
19,200,000
14,029,044
13,985,960
%
12.00
8.87
6.28
4.59
4.58
10,367,502
3.39
9,471,248
7,200,000
6,350,000
4,280,271
3,679,448
2,785,464
2,700,000
2,050,000
1,980,000
1,965,000
1,950,000
1,851,428
1,809,234
1,760,000
171,183,422
134,509,376
3.10
2.36
2.08
1.40
1.20
0.91
0.88
0.67
0.65
0.64
0.64
0.61
0.59
0.58
56.00
44.00
56
Magmatic Resources Limited
ABN 32 615 598 322
Unquoted equity securities
Unquoted equity securities on issue as at 28 September 2023 was as follows:
- 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 750,000 options, exercisable at $0.2642, expiring 30 September 2023
- 7 Optionholders holding 6,500,000 options, exercisable at $0.1440, expiring 31 December 2025
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