Manuka Resources Ltd ABN 80 611 963 225
ANNUAL REPORT 2023
Annual Report
For the year ended 30 June 2023
Manuka Resources Ltd
ABN 80 611 963 225
Manuka Resources Ltd
For the year ended 30 June 2023
1
CORPORATE DIRECTORY
Directors
Dennis Karp – Executive Chairman
Alan J Eggers – Executive Director
Anthony McPaul – Non-Executive
Director
John Seton – Non-Executive Director
Key Management
Haydn Lynch – Chief Operating Officer
Company Secretary
Toni Gilholme
Registered Office
Level 4, Grafton Bond Building
201 Kent Street
Sydney NSW 2000
www.manukaresources.com.au
Lawyers
K&L Gates
Level 31, 1 O’Connell Street
Sydney NSW 2000
Auditor
Ernst & Young
200 George Street
Sydney NSW 2000
Share Registry
Automic Group Pty Ltd
Level 5, 126 Phillip Street
Sydney NSW 2000
Stock Exchange Listing
Manuka Resources Limited shares (Code:
MKR) are listed on the Australian
Securities Exchange.
Manuka Resources Ltd
For the year ended 30 June 2023
Contents
Executive Chairman’s Report
Review of Operations
Mineral Resources Statements
Directors’ Report
Auditor’s Independence Declaration
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 Financial Statements
Directors’ Declaration
Independent Auditor’s Report
ASX Additional Information
2
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Manuka Resources Ltd
For the year ended 30 June 2023
3
Executive Chairman’s Report
PROCESSING SILVER STOCK-PILES, RECOMMENCING GOLD PRODUCTION AND
THE PURCHASE OF TRANS-TASMAN RESOURCES
This Annual Report marks our third year as a producing precious metals company listed on the ASX.
Our 2022-23 Financial Year started with great optimism. Just prior to the start of the year the Company had
commenced silver production from the Wonawinta Stockpile Project (WSP) conveniently located on our ROM
pad at the Wonawinta plant. Production was scaling up broadly according to forecasts, and we were enjoying
the additional benefit of a consistent gold payable equating to 15% of silver revenues.
However, as shareholders will know, over the September and December Quarters a number of factors
conspired to impact forecast silver production. In particular a period of exceptionally wet weather resulted in
the Cobar region being declared a state of natural disaster in September 2022. Additionally, our ore crushing
contractors had failed to meet their targets to that point and the wet weather event together with the high
clay content in the stockpiles further compounded our lack of processing material and thus silver output.
We persevered with processing the screened silver material for a further three months and while we saw an
improvement in recoveries took the decision to defer the processing of the remaining silver stockpiles
culminating in final processing activities in February 2023. The WSP clearly did not meet our financial
expectations due primarily to the lack of steady crushed and screened ore for processing outlined above but
also due to the persistently weak Australian dollar price of silver which fell steadily from A$36 an ounce silver
at the commencement of the WSP to A$27 an ounce in the last quarter of 2022.
There were benefits, however, accruing from the WSP which will stand the Company in good stead as it looks
towards future silver production. The first relates to the capacity of the plant which was able to be expanded
to ~1.0Mtpa with the addition of relatively modest capital enhancements, and the second relates to an
improved understanding of the metallurgical characteristics of the silver ores, and how best to process these,
as the vast majority of the contained silver resides in the finer fractions. Both of these will make a marked
difference to our silver business case over the periods ahead.
Manuka holds a material position in the Cobar Basin, including the fully approved Wonawinta Silver Project
and the Mt Boppy Gold Project, the substantial ~1Mtpa processing plant at Wonawinta, as well as an
exploration tenement package extending over an area exceeding 1125km2. During the year the Company
undertook a comprehensive Strategic Exploration Review of all its Cobar tenements which included assessing
and considering over 30 years’ worth of geological and geophysical exploration data and reports focused, in
particular, on the potential impact of where near-mine exploration could add to our existing mineral resource
estimates and identify potential mill feed for the Wonawinta plant.
As a result of this Review the Company is targeting a very substantial increase in gold resources of between
250,000-530,000oz gold @2.5g/tAu from Mt Boppy depth extensions as well as McKinnons mine and the
Pipeline Ridge prospect. Exploration and drilling is now planned to commence in the December quarter 2023.
As at time of writing the Company has released an initial updated gold Mineral Resources Estimate at Mt
Boppy1 of 160,100oz gold at 2.01g/t Au, up from 44,850oz gold at 4.95g/t Au.
1 ASX release 25 August 2023
Manuka Resources Ltd
For the year ended 30 June 2023
4
The Review also concluded that there was a potentially very profitable gold-in-fines stockpile project
encompassing the Mt Boppy ROM, waste-dump and tailings. Test work was completed in April 2023 screening
the various materials to a -8mm size fraction. This reinforced the business case for a screening project to
produce gold and commercial screening activities commenced at Mt Boppy in May 2023. Gold production
through the Wonawinta plant started mid-June with the processing and first sales of gold to the refinery in
July 2023.
Although it’s just three months since gold sales from the Mt Boppy screening project commenced, as at time
of writing I am very pleased to advise that the Company is cash flow positive, again, and gold grades as well as
recoveries are on target. There is potential for several years of gold production from the screening and
processing of up to 4 million tonnes of Mt Boppy waste and dump material. In addition, we currently await
final test results on the screened McKinnons gold mine waste dump material which, based in initial trenching
assays, appears to be commercially viable. The Company’s gold production target is for between 60,000-
80,000oz Au over a three to four-year period.
The Strategic Review identified the potential increases in our resource inventory that a well targeted
exploration program could add. This exploration program, now planned to commence in Q4 2023, will be
funded by our gold production cash flows. Initial drilling target is the ‘Mt Boppy Deeps’ drilling where a
program of five holes drilled to 300m-600m depth below the Mt Boppy open pit is planned. I look forward to
providing these drilling updates to our shareholders over the coming months. I do see this as an exceptionally
exciting time at Manuka as Mt Boppy starts hitting steady state gold production targets yielding positive cash
flows allowing the Company to systematically evaluate a portfolio of highly ranked near mine and exploration
base and precious metal targets on our tenements in the Cobar Basin of NSW.
On 10 November 2022 Manuka received shareholder approval to complete its purchase of Trans-Tasman
Resources Ltd, the owner of the Taranaki VTM (vanadiferous titanomagnetite) Project in New Zealand. The
Project contains a JORC resource of 3.2 billion tonnes of iron sands and has a mining license initially permitting
the mining of 50Mt a year producing 5.0Mt of VTM concentrate a year over a 20-year period. At this rate the
JORC resource contains a potential 60 years of mining inventory. Manuka was attracted to this asset given its
enormous scale, the extensive quantum of work already completed to advance the Project, its low-cost
production base, superior environmental credentials and diversification benefits.
The TTR Pre-Feasibility Study completed in 2013 and adjusted to 2022 cost structures, places the Project’s cost
of iron ore production in the lowest cost quartile. Furthermore, the VTM concentrate produced will quite
possibly be the lowest carbon emitter per tonne of concentrate produced of any iron ore producer.
VTM titanomagnetite iron sands are in strong demand as feed for electric arc furnaces (EAF) to produce low
carbon “green steel”. EAF steel making burns 50% less coal, reduces carbon emissions by more than 45% in
the steel making process and can make a material contribution to net zero goal targets. Attractive in its own
right as an iron sands project, nonetheless shortly after Manuka purchased the asset we completed an
assessment of its vanadium potential. In March 2023 we announced a maiden vanadium resource of 1.6Mt of
contained vanadium pentoxide (V2O5), ranking it as one of the larger drilled vanadium deposits globally. At an
assumed production rate of 5Mtpa VTM concentrate the concentrate would contain 25,000 tonnes of V2O5
equivalent to 14,000t of vanadium metal (V) a year, making it one of the largest aspiring vanadium producers
on the ASX.
This project presents Manuka with a unique opportunity to securing production of VTM concentrate
and a stronghold in vanadium production, a commodity which has been declared a critical mineral
by the Governments of the USA, in the EU and Australia, required for hardening and strengthening
Manuka Resources Ltd
For the year ended 30 June 2023
5
of steel and now proving essential for utility or grid scale battery storage underpinning a green-
energy fuelled global economy.
In terms of moving the Project forward, TTR was granted a Marine Consent and Marine Discharge Consent to
operate the Project by the NZ Environmental Protection Authority (EPA) in 2017. While this Consent was
subject to third party challenge, New Zealand’s highest court, the Supreme Court2, has subsequently referred
the Consents back to the EPA for final reconsideration on five narrowly defined points of law, in a process
which TTR initially expected to complete during Q1 2023. Due to delays in the EPA hearing process, completely
beyond our control, this time-line has extended to the point we now expect the EPA decision during Q4 2023.
TTR believes its environmental consents application meets the tests as laid down by the Supreme Court rulings,
has provided this information to the reconvened EPA hearing, and does not anticipate further scope to
challenge the re-grant of the Consents once awarded.
Alan Eggers, Executive Chair of TTR and John Seton Non-Executive Director of TTR were both appointed to the
Manuka Board, while Nick Lindsay stepped down from the Board at the same time and I would like to thank
him once again for over four years of service with Manuka Resources.
In closing, I would like to thank the entire team at Manuka Resources for their assistance in what has been an
extremely challenging year. A further thank you is extended to my fellow executive director Alan Eggers, to
our two Non-Executive Directors Tony McPaul and John Seton, to Haydn Lynch, our Chief Operating Officer,
and Toni Gilholme our Company Secretary for all their work during the financial year.
Also thank you to all our shareholders for your support during the year. We enter FY23/24 with gold
production continuing at Mt Boppy, a near four-fold increases in gold resources and the expectation that there
will be more increases to come. Delivery of positive results and resource upgrades from our accelerated
exploration and drilling campaign on our targets in the Cobar Basin should be another key feature of the year
ahead. Our exposure to vanadium through the enormous Taranaki VTM Project remains under appreciated by
the share market, in the Board’s view, but we expect activity in FY23/24, with the final approval of our
environmental consents behind us, to bring the potential of the Project into sharper focus.
Dennis Karp
Executive Chair
2 Judgment delivered 30 September 2021.
Manuka Resources Ltd
For the year ended 30 June 2023
6
Review of Operations
COMPANY PROFILE AND OPERATIONAL OVERVIEW
Manuka Resources Ltd (“Manuka” or “the Company”) completed the trial phase of silver oxide stockpile
processing at the Wonawinta project during the year after completion of the first phase of open cut gold
production from Mt Boppy in the prior year. At the conclusion of the trial silver oxide phase a development
plan to process mineralised gold material from Mt Boppy was proposed and implemented (Mt Boppy Stockpile
Reprocessing). This plan centres on producing gold from the ROM and overburden dump stockpiles at the Mt
Boppy mine site via a simple process of screening out the sub 8mm particle fraction which contains the
majority of the gold (and associated silver). The Company continues to employ a significant percentage of its
workforce, including contractors, from the Central West region of NSW as part of its concerted effort to benefit
the local community as much as possible.
The above mentioned Mt Boppy Stockpile Reprocessing activities commenced in May 2023 with finalisation
of a bulk sampling program to enable better evaluation of project economics. This led to full scale processing
commencing in late June 2023. Resource modelling for this previously designated waste material is underway
and will be released during Q3 of the 2023 calendar year. This material is not previously treated ore (tails) but
rather ROM material that was previously classified as barren overburden.
A comprehensive review of all exploration prospects within the entire tenement package (Canbelego and
Western Cobar Basin) was completed by the new Chief Geologist Mr Phil Bentley during Q1 of the 2023
calendar year 3. This resulted in a re-prioritisation of field activities with an immediate focus on further review
and interrogation of historic geophysical data to better define future drill programs. Partly as a result of
inclement weather conditions in the region the Company undertook limited exploration drilling during the
year.
The Company completed the acquisition of Trans-Tasman Resources Limited (TTR) in November 20224 . TTR
hosts a significant shallow offshore iron sands and vanadium project in the South Taranaki Bight of New
Zealand. The Project is at the Bankable Feasibility Study (BFS) stage and currently progressing its EPA consent.
A successful conclusion of that activity will trigger commencement of final detailed engineering and capital
costings. Once developed the TTR project could be a major export earner for New Zealand and a significant
employer in the local community producing an iron ore concentrate with significant vanadium co-product
required for high grade steel alloys and with increasing application in large-scale battery storage technologies.
BACKGROUND
Manuka Resources Limited (ASX: MKR) is an Australian mining and exploration company located in the Cobar
Basin, central west New South Wales. It is the 100% owner of two fully permitted mining projects, one gold
and one silver, both within the Cobar Basin and a pre development project situated in the South Taranaki Bight
in New Zealand which include the following:
• Mt Boppy Gold mine and neighbouring tenements. Operations at the Mt Boppy project recommenced
Q2 of the 2023 calendar year in the form of a stockpile reprocessing project, future deeper drilling in
the pit will be conducted during 2H 2023 to add additional gold resources before an updated mine
plan is developed.
3 ASX release 14 February 2023
4 ASX release 11 November 2022
Manuka Resources Ltd
For the year ended 30 June 2023
7
• Wonawinta silver project, with mine, processing plant and neighbouring tenements. The Wonawinta
processing plant recommenced silver production in March 2022 in the form of a trial operation on
existing silver oxide stockpiles. This trial ceased in February 2023 with the results feeding into the
ongoing mine planning for the opening up of new pits on the mining lease and potential re-entry into
existing pits
• Highly prospective exploration targets on its ~1150km2 tenement portfolio in the Cobar Basin
• Completion of the BFS on the Taranaki VTM (vanadiferous titanomagnetite) project once the New
Zealand EPA consent process has completed satisfactorily.
THE MT BOPPY GOLD PROJECT
Operations
The first phase of open pit production at Mt Boppy finished in early 20225. No mining or material movement
operations were conducted after that date until Q2 of the 2023 calendar year when bulk sampling of previously
classified barren overburden material was conducted.
A trommel with 8mm apertures was used to sort the material on the Mt Boppy ROM into two product fractions
namely a sub 8mm and a 8-20 mm fraction. Once confirmation of grade distribution was determined (average
circa 1.8 g/t)6 a McCloskey R155 double deck screen was commissioned to start full scale production of
screened material. This screened product is hauled to the Wonawinta plant for processing. Bulk trommel
sampling was also undertaken on the existing overburden dump situated west of the pit. This has
demonstrated a similar gold grade distribution as found on the ROM.
The company is forecasting around four years of project life and released an updated mineral resources
estimate in August 2023 for these resources7.
Regional Geology
Mount Boppy is hosted within Devonian-age sedimentary and volcanic rocks of the Canbelego-Mineral Hill Rift
Zone. Mineralisation occurs largely in brecciated and silicified fine-grained sediments of the Baledmund
Formation, within and adjacent to a faulted contact with older Girilambone Group sedimentary rocks. Lodes
strike approximately north-south and dip steeply west, although the widest zone of mineralisation is related
to slightly shallower dips. Gold mineralisation is fine-grained and commonly associated with coarse grained
iron rich sphalerite. Section 7.2 of the Independent Technical Report discusses the local geology of the project
area8.
Tenements
The Mt Boppy Gold Project (which comprises 3 granted mining leases, 4 gold leases, and one exploration
licence (which together cover an area in excess of approximately 210 km2)) is located approximately 46 km
east of Cobar, on the eastern side of the highly prospective and metalliferous Cobar Basin. The Company owns
(via its wholly owned subsidiary, Mt Boppy Resources P/L) 100% of the interests in the tenements detailed in
the following table:
5 ASX release 8 March 2022
6 ASX release 31 July 2023 June Quarterly
7 ASX release 25 August 2023
8 See Prospectus dated 22 May 2020, ASX release 10 July 2020
Manuka Resources Ltd
For the year ended 30 June 2023
8
Tenement
Grant Date
Renewal Date
Expiry Date
Area (km2)
GL3255
20-May-1926
08-Jul-2014
20-May-2033
GL5836
15-Jun-1965
08-Jul-2014
15-Jun-2033
GL5848
15-Feb-1968
08-Jul-2014
15-Jun-2033
GL5898
21-Jun-1972
08-Jul-2014
12-Dec-2033
8.30
6.05
8.62
7.50
ML311
08-Dec-1976
08-Jul-2014
12-Dec-2033
10.12
ML1681
12-Dec-2012
12-Dec-2012
12-Dec-2033
188.10
MPL240
17-Jan-1986
08-Jul-2014
12-Dec-2033
17.80
EL5842
19-Apr-2001
3-Aug-2022
19-Apr-2026
210 km2
(Table 1 – Tenements Mt Boppy)
(Figure 1 - Tenements - Mt Boppy Gold Project)
Manuka Resources Ltd
For the year ended 30 June 2023
9
THE WONAWINTA SILVER PROJECT
The Company holds title to the pastoral lease for “Manuka”, upon part of which the Wonawinta Silver Project
is located. The Manuka pastoral lease is connected to the low voltage rural power network and contains useful
infrastructure namely a homestead, internet satellite connection and airstrip.
Operations
The Company completed the trial phase of silver oxide stockpile processing in February 20239 . The results
from this trial will be used to better inform the ongoing mine planning process for opening up new pits on the
Wonawinta silver project. During this phase of operations it was found that silver species in the oxide material
was present in two broad size fractions. Modifications were made to the front end material handling circuit
to introduce the smaller ball mill and incorporate a trommel in the flowsheet (deslimer circuit) to process the
finer fractions which held a significant proportion of silver. The presence of small amounts of gold in this
material was unexpected and a potential positive impact to the future project economics.
This phase of operations encountered significant headwinds with wet weather making handling of the clay
material in the stockpiles challenging. This trial phase was designed to highlight to the operational team any
potential issues that may be encountered in a full mining operation and has provided the company with
valuable data in relation to risks and potential mitigants.
Regional Geology
The Cobar Basin is located in central-west New South Wales, approximately 700 km north-west of Sydney. It
is a complex metallogenic system containing numerous mineral deposits. “Cobar-style” mineral deposits
comprise a unique class of large and commonly high-grade base and precious metal deposits hosted by marine
sediments. They typically have great vertical extent but only a small surface footprint.
Tenements
The Company directly owns 100% of the interests in the Tenements detailed in the following table:
Tenement
Grant Date
Renewal Date
Expiry Date
Area (km2)
ML1659
23-Nov-11
23-Nov-2011
23-Nov-32
EL6482
EL7345
EL6155
EL6302
EL7515
EL6623
18-Nov-05
27-Jan-2022
18-Nov-26
25-May-09
27-Jul-2022
25-May-28
17-Nov-03
23-Jan-2022
17-Nov-26
23-Sep-04
20-Jan-2022
23-Sep-26
7-Apr-10
9-Jun-2022
7-Apr-27
31-Aug-06
18-Mar-2021
31-Aug-23
(Renewal in
progress)
9.24
268.21
169.18
10.54
280.02
14.53
26.24
EL8498
10-Jan-17
3 –Nov-2021
10-Jan-24
114
(Table 2 – Tenements Wonawinta)
9 ASX release 28 April 2023 – March Quarterly
Manuka Resources Ltd
For the year ended 30 June 2023
10
(Figure 2 - Tenements of Wonawinta Silver Project)
Manuka Resources Ltd
For the year ended 30 June 2023
11
(Figure 3 – Existing mine infrastructure and resource outline in ML 1659)
Manuka Resources Ltd
For the year ended 30 June 2023
12
STRATEGY AND DEVELOPMENT PLANS
During the year processing operations consisted of a trial phase of silver oxide stockpile processing at the
Wonawinta plant. This trial phase of processing over approximately 12 months provided the Company with
valuable processing and metallurgical data to better inform mine planning for the oxide silver resource at
Wonawinta. This data included an evaluation of optimal ore handling in the comminution circuit. It was
discovered that the majority of the silver mineral species were contained within certain discrete size fractions.
Segregation of the silver bearing size fractions during this trial phase resulted in critical knowledge being
developed for future front end material handling operations.
Whilst the trial silver phase wound down, a program of bulk sampling on previously classified barren
overburden at Mt Boppy from both the ROM area and the western waste dump was initiated. This bulk
sampling program was able to produce a gold bearing product of approximately 1.8 g/t from a sub 8mm
fraction derived from a simple rotating screen. These positive sampling results gave the company confidence
to begin larger scale production utilising a McCloskey R155 to produce a sub 8mm and plus 8 sub 20mm
product fractions. Approximately 80% of the gold appears contained in the sub 8mm fraction meaning that
the sub 20mm fraction will ideally be selectively fed into the plant. The Wonawinta plant was recommissioned
for this current phase of gold processing in June 2023 and required only minor modifications from its previous
phase of leaching silver from the oxide stockpiles.
The Company has commenced producing gold from screening rock dump and tailings material at the Mt Boppy
ROM. Bulk sample evaluation has continued and has progressed evaluation of the Mt Boppy Main waste rock
dump, the low grade rock dump and tailings at the TSF3 impoundment10. As at the end of August 2023, a total
of 124,931t of waste and ROM material has been screened. This has generated a total of 83,262t screened
material of which 74,921t is <8mm (60% of total material) and 8,341t is between 8-20mm fractions (7% of
total). The grade of the screened material produced to date is consistent with initial expectations (1.7 - 1.8g/t
Au). Current forecasts show the processing of these areas together with processing of the existing open pit to
continue over the next four years. The Company has released an updated Mineral Resources Estimate (MRE)
over the rock dump, the tailings, the Mt Boppy ROM and the Mt Boppy Main waste dump (previously classified
barren overburden areas11).
The company also continues to evaluate proximal and near-term silver and base metals processing
opportunities which take advantage of the strategic location of the Wonawinta processing plant. This includes
the potential reconfiguration of the existing flowsheet to process sulphide ore through a flotation circuit.
The Mt Boppy gold mine (existing open pit) is also undergoing evaluation for a second phase of open cut
mining to extract the current in pit gold resource. This could involve a cut back on the western wall of the pit
after further deeper drilling.
Exploration Strategy and Overview
The Company’s exploration strategy to date has focussed on near mine targets at both Mt Boppy and
Wonawinta in an effort to develop resources close to existing operations. The Strategic Review completed
during January 2023 enabled ranking of gold and base metal targets with the emphasis on turning to account.
10 ASX release dated 25 August 2023
11 ASX release dated 25 August 2023
Manuka Resources Ltd
For the year ended 30 June 2023
13
(Figure 4: MKR Resource Triangle, 30 June 2023)
MKR has continued reviewing and integrating previous exploration and public domain geoscience datasets. A
geophysical review was completed during June 2023 on the Canbelego tenements held by the Company
(Figure 5) and a similar study was conducted during August 2023 on the Wonawinta Project tenements (Figure
6) with results to be evaluated during Q4 of the 2023 calendar year.
On the Canbelego tenements (EL5842 and Mt Boppy ML’s) the priority exploration and development targets
are the Mt Boppy dump retreatment evaluation, Mt Boppy Mine deep drilling, Hardwicks (Au), and Pipeline
Ridge (Au-Cu-Pb-Zn).
WinduckShelf; WonawintaTerrain Boundary E; WonawintaFar N; JackermarooFault; Coonara–KuraleeTerrain Boundary CanbelegoERegional Targets (5)Follow-up Targets with geological, geochemical and geophysical anomalies (7)Follow-up Targets with geological, geochemical, geophysical anomalies and historical drilling (8) Inferred Mineral Resources (11)Indicated Mineral Resources (5) WonaOpen Pits;Mt BoppyOC & UGWonapits; Boundary S;Mt Boppy; BoppyS;De Nardi; Boppyand Mckinnonrock dumpsPipeline Ridge; WonawintaN; Mckinnons; Smith’s Tank; Hardwicks; Gundaroo(Ridge); Birthday; GoldwingMckinnonsN; CanbelegoCentral Structural Zone; BoppyN; Racecourse; Newhaven; Pipeline surrounds; Junction Mine DevelopmentManuka ResourcesResource TriangleJune 2023
Manuka Resources Ltd
For the year ended 30 June 2023
14
(Figure 5: Canbelego EL5482 and Mt Boppy ML’s area of geophysical review, simplified geology and mineral
prospects)
Manuka Resources Ltd
For the year ended 30 June 2023
15
Wonawinta Project targets (Figure 6) include the Wonawinta ML1659 (Ag-Pb-Zn) and extensions on EL7345,
gold and base metal mineralisation on EL6302 (site of the historic 2g/t McKinnons gold mine) and EL8498
(Guzzi Prospect), and EL6482 (De Nardi, Gundaroo Cu-Pb-Zn; Figure 7). In a similar strategy as per Mt Boppy a
bulk sampling program was initiated on the old McKinnon gold waste dump in late June 2023. Results are
pending but expected to be similar to the results from Mt Boppy. McKinnon’s is approximately 50km from
the Wonawinta plant with a shire road connecting the sites.
(Figure 6: Wonawinta and northern exploration targets)
Manuka Resources Ltd
For the year ended 30 June 2023
16
(Figure 7 – Gold exploration targets in the McKinnons mine area, north of Wonawinta)
Manuka Resources Ltd
For the year ended 30 June 2023
17
(Figure 8 – Helicopter VTEM Area EL5842)
Manuka Resources Ltd
For the year ended 30 June 2023
18
TARANAKI VTM PROJECT
Manuka entered into a Binding Term Sheet for the purchase (subject to Manuka shareholder approval) of
emerging vanadiferous titanomagnetite iron sands producer Trans-Tasman Resources Limited (TTR) on 1st
August 202212. In November 2022 Manuka acquired 100% of TTR for the issue of 176,938,295 new Manuka
shares.
A general meeting of shareholders was called under a notice of meeting distributed to shareholders on 22nd
August 202213. At the General Meeting which was held on 21st September 2022 shareholders approved the
issue of Manuka shares to TTR shareholders14. Shares were issued at completion of the acquisition in
November 2022. Details of the acquisition are outlined in the Financial Statements attached.
TTR is a New Zealand incorporated company that was granted Mineral Mining Permit MMP55581, located
22km to 36km offshore in New Zealand’s South Taranaki Bight, in 2014. The South Taranaki Bight extends into
an EEZ (exclusive economic zone) controlled by New Zealand. Within the EEZ there exists 3 operating oil and
gas platforms, while other commercial operations await operating approval. A Bankable Feasibility Study (BFS)
for an offshore iron sands project has commenced (Taranaki VTM Project). Manuka’s vision is for a project
initially recovering approximately 5 million tonnes (Mt) of vanadiferous titanomagnetite (VTM) iron ore
concentrate per annum over a 20 year mine life15.
In 2017 the NZ Environmental Protection Authority (EPA) granted the environmental marine and marine
discharge consents (Consents) to operate. The grant of these Consents was then subject to third party legal
challenge. Judgments in the High Court in 2018, the Court of Appeal in 2020 and particularly the Supreme
Court (SC) in 202116 summarised the legal deficiencies of the EPA’s Decision Making Committee’s (DMC)
Consents grant and the legal framework for the DMC to address when the grants are reconsidered.
The SC referred the Consents back to the EPA for reconsideration by its DMC on five narrowly defined points
of law. The new DMC reconvened in March 202317 and requested TTR provide expert evidence to satisfy the
SC’s ruling on information deficits. In May and August 2023 TTR provided the expert evidence requested by
the reconvened DMC to satisfy the SC’s requirements and legal tests to reissue the Consents. These expert
reports concluded the proposed VTM mineral recovery in STB will avoid material harm, will favour caution and
environmental protection in relation to the effects of the proposed mining operations and resulting
sedimentation on biota in the STB including no adverse ecological effects on marine mammals and seabirds.
Accordingly, there are no aspects of TTR’s 2017 environmental Consents that are an impediment to having
them re-approved by the reconvened DMC18.
In parallel with this formal EPA engagement process, TTR will commission additional metallurgical test work
to optimise the flowsheet for processing of the VTM concentrate (including the recovery of vanadium and
titanium) during 2H 2023 and undertake marketing (and related) studies building on work completed during
the Pre-Feasibility Study (PFS).
Globally VTM titanomagnetite iron sands are in strong demand as feed for electric arc furnaces (EAF) to
produce low carbon “green steel”. EAF steel making burns 50% less coal, reduces emissions by more than 45%
12 Refer ASX release dated 1 August 2022
13 Refer ASX release dated 22 August 2022
14 Refer ASX release dated 21 September 2022
15 Refer ASX release dated 1 August 2022
16 Judgement delivered 30 September 2021
17 Refer EPA Public consultation disclosures at www.epa.govt.nz/public-consultations/in-progress/trans-tasman-resources-limited-2016/
18 Refer ASX announcement 1 August 2022
Manuka Resources Ltd
For the year ended 30 June 2023
19
in the steel making process and sets the platform for meeting net zero goals by 2050. Vanadium, apart from
its widespread and increasing application as a steel alloying element to strengthen steel, is rapidly building
demand as an electrolyte in vanadium redox flow batteries (VRFB) which are fast becoming the preferred IP
ahead of all competing technologies for large grid-scale high-capacity battery stations to store renewable
energy due to their large energy storage capacity, longevity and fire safety characteristics.
Australia is now building its first 850Mw, with 1,680Mwh capacity, VRFB Waratah Super Battery at the former
Munmorah coal fired power station in NSW to help drive Australia’s transition to a low carbon economy.
With concerns over the sovereign security of vanadium supply from key producing nations China (comprising
55% of global production), Russia (20% of global production), Brazil (15%) and South Africa (10%), vanadium
now has “critical mineral” status in Australia, USA and the EU. The demand for VTM concentrate for EAF low
carbon green steel production together with the rapidly growing demand for vanadium underpinning rising
prices for the metal, suggests the potential of our Taranaki VTM Project, hosting one of the largest known
vanadium resources in the world with 1.6Mt contained vanadium pentoxide (V2O5), will attract the competitive
capital investment and metal producer offtake interest required to develop the project.
The Taranaki VTM Project, with an assumed annual production of 5Mt VTM concentrate containing 25,000t
V2O5, or 14,000t vanadium metal (V), would, at around 70% metallurgical recovery rate, produce 10,000
tonnes of vanadium metal per annum, make Manuka one of the leading vanadium producers in the world and
propel NZ into the third largest producer of the metal after China and Russia.
Manuka Resources Ltd
For the year ended 30 June 2023
20
Mineral Resource Statements
Mining operations ceased at Mt Boppy in November 2021. The updated Mt Boppy resource was released 29th
July 202219and the JORC 2012 categorised Resources remain unchanged JORC categorised Mineral Resources
for Wonawinta were released to the ASX on 1 April 2021.
Mt Boppy Mineral Resource Statement
The total remaining Resource as at 30 June 2023 is 281,850 tonnes at a grade of 4.95 g/t Au for 44,820 ounces.
The mineral resource estimate for Mt Boppy is reported within a pit shell that reaches a depth of 215m below
surface at the southern end of the deposit. Resources are reported with respect to the current pit design.
Material within the pit design is reported at a 1.6 g/t cut off and material below the pit design is reported to a
3.0 g/t cut off.
Resource Category
Tonnes
Grade
g/t Au
Measured
Indicated
Inferred
Total
106,850
158,000
17,000
281,850
(Table 3 - Mt Boppy Gold Resource at 30 June 2023)
5.25
4.85
3.93
4.95
Contained gold
Troy ounces
18,020
24,700
2,100
44,820
The Company released a Mt Boppy Gold Project Resource Upgrade showing a 357% increase in contained
ounces. The mineral resource estimate for Mt Boppy is contained within:
•
in situ rock dumps and tailings depositories, with in situ gold grades derived from bulk sampling
material derived from mechanically pitting and trenching to 2-3m depth and screening +200, -200+20,
+8-20, and -8mm size fractions, with cone measurements to ascertain mass % distribution and total
volume treated.
• an open cut pit shell that reaches a depth of 215m below surface at the southern end of the Mt Boppy
deposit. Resources were reported July 2022 with respect to the current pit design. Material within
the pit design is reported at a 1.6 g/t Au cut off and material below the pit design is reported to a 3.0
g/t Au cut off. The open cut is currently flooded and inaccessible for mining. Dewatering and a sidewall
pushback is necessary to access and mine these resources.
• a grade shell modelled at a 1.6 g/t cut off over the Boppy South mineral zone. This prospect still
requires final drilling and evaluation before assessing establishing a small opencast
Resource Category
Measured
Indicated
Inferred
Total
Tonnes
Contained gold
Troy ounces
18.0
58.5
83.6
160.1
(Table 4: Mt Boppy Resource Update per ASX release 25 August 2023)
Grade
g/t Au
5.25
3.01
1.47
2.01
107
605
1,770
2,482
19 Refer ASX release dated 29 July 2022
Manuka Resources Ltd
For the year ended 30 June 2023
21
*The preceding statements of Mineral Resources conforms to the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012 Edition. Due to rounding to
appropriate significant figures, minor discrepancies may occur. All tonnages reported are dry metric.
The Company is not aware of any new information or data that materially affects the information used to
present the 2023 mineral resource and all material assumptions and technical parameters underpinning the
estimates in the relevant market announcements continue to apply and have not materially changed.
Wonawinta Mineral Resource Statement
The JORC (2012) Mineral Resource Estimate is unchanged over the past 12 months as no additional infill drilling
was completed on the Wonawinta resource and no changes have been made to the resource model. The
original estimate was released to the ASX on 1 April 2021. The total resources is 38.3 million tonnes at 41.3
g/t Ag and 0.54% Pb providing 50.94 million ounces of silver and 207.2 thousand tonnes of lead. Note this
estimate is for the insitu resource and excludes any mineralised silver material which may be present in above
ground stockpiles.
The Company is not aware of any new information or data that materially affects the information used to
present the 2023 mineral resource and all material assumptions and technical parameters underpinning the
estimates in the relevant market announcements continue to apply and have not materially changed.
Resource
Category
Measured
Indicated
Inferred
Total
Material
(Mt)
1.1
12.3
24.9
38.3
Ag (g/t)
Ag Moz
Pb (%)
47.3
45.5
39.0
41.3
1.65
18.04
31.25
50.94
0.69
0.83
0.39
0.54
Pb kt
7.5
102.8
96.9
207.2
(Table 5: Resource Estimate reported > 20g/t Ag)
Taranaki VTM Project Mineral Resource Statement
On 1 March 2023 Manuka released a maiden vanadium JORC (2012) Mineral Resource Estimate20 showing an
Indicated & Inferred Mineral Resource of 3.2 billion tnnes (Bt) @ 0.05% vanadium pentoxide (V2O5) for the
Taranaki VTM (vanadiferous titanomagnetite) Project (New Zealand).
The mineral resource estimates are classified in accordance with JORC Code 2012.
Grades and tonnages reported are for all material with the recovery of the resource shown on the tables.
Reported Head Grades are the -2mm portion of the sample. Concentrate grades are for the magnetically
recoverable portion of the sample. Concentrate tonnage is calculated from the head tonnage and DTR.
The mineral resources have been reported at 3.5% DTR cut-off grade where DTR analyses are available within
the Cook and the Kupe deposit Blocks. The Tasman deposit has been reported at a cut-off grade of 7.5% Fe2O3
based on the statistical relationship between Fe2O3 and DTR.
20 Refer ASX release dated 1 March 20223
Manuka Resources Ltd
For the year ended 30 June 2023
22
Zone
Inside 12 Nm
(RMA)
Cook North Block
Kupe North Block
Cut-off
Grade
3.5%
DTR*
3.5%
DTR*
7.5%
Fe2O3
Cut-off
Grade
3.5%
DTR*
3.5%
DTR*
7.5%
Fe2O3
Tasman North
Block
Total VTM Resource RMA
Outside 12 Nm
(RMA)
Cook South Block
Kupe South Block
Tasman South
Block
Total VTM Resource EEZ
Taranaki VTM Resource Total
Indicated and Inferred Mineral Resources
Fe2O3%
Mt
TiO2% V2O5% Mt
DTR Concentrate
Fe2O3%
TiO2% V2O5%
274
11.90
1.19
0.06
21
57.19
8.12
0.52
417
11.48
1.21
0.06
31
57.07
8.35
0.51
585
9.02
0.88
0.04
1,275
Mt
10.44
Fe2O3%
1.05
0.05
TiO2% V2O5% Mt
605
Fe2O3%
3.01
58.5
TiO2% V2O5%
914
10.95
1.12
0.05
63
55.84
8.45
0.50
272
9.76
0.98
0.05
16
56.33
8.43
0.50
695
8.81
0.89
0.04
1,881
3,157
9.99
10.17
1.01
1.03
0.05
0.05
(Table 6: Trans-Tasman Resource Update per ASX release 1 March 2023)
Governance arrangements and internal controls
Manuka has put in place governance arrangements and internal controls with respect to its estimates of
Mineral Resources and Ore Reserves and the estimation process, including:
• oversight and approval of each annual statement by external consultants (if the estimate was
prepared internally) or responsible senior officers;
• establishment of internal procedures and controls to meet JORC Code 2012 compliance in all external
reporting;
independent review of new and materially changed estimates;
•
• annual reconciliation with internal planning to validate reserve estimates for operating mines.
Competent Persons retained by the Company are members of the Australasian Institute of Mining and
Metallurgy (AusIMM) and/or the Australian Institute of Geoscientists (AIG) and qualify as Competent Persons
as defined in the JORC Code 2012.
Competent Persons Statements – Mt Boppy and Wonawinta
The information in this report that relates to Mt Boppy Mineral Resources is based on, and fairly represents,
information and supporting documentation prepared by Mr Ian Taylor, who is a Certified Professional by The
Australasian Institute of Mining and Metallurgy and is employed by Mining Associates Pty Ltd. Mr Taylor 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’. Mr Taylor
consents to the inclusion in the report of the matters based on his information in the form and context in
which it appears.
Manuka Resources Ltd
For the year ended 30 June 2023
23
This report includes information that relates to Mt Boppy Mineral Resources which were prepared and first
disclosed under JORC Code 2012. The Company confirms that it is not aware of any new information or data
that materially affects the information included in the July 2022 market announcement and, in the case of
reporting of Mineral Resources, that all material assumptions and technical parameters underpinning the
estimates in the relevant market announcement continue to apply and have not materially changed. The
Company confirms that the form and context in which any Competent Person’s findings are presented have
not been materially modified from the original market announcement.
This report includes information that relates to Wonawinta Mineral Resources which were prepared and first
disclosed under JORC Code 2012. The information was extracted from the Company’s ASX announcement
dated 1 April 2021. The Company confirms that it is not aware of any new information or data that materially
affects the information included in the April 2021 market announcement and, in the case of reporting of
Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the
relevant market announcement continue to apply and have not materially changed. The Company confirms
that the form and context in which any Competent Person’s findings are presented have not been materially
modified from the original market announcement.
Competent Persons Statement – Taranaki VTM Project (New Zealand)
The information in this release that relates to Exploration Targets, Exploration Results or Mineral Resources
for the Taranaki VTM Project (New Zealand) is based on information compiled by Mr Alan J Eggers, a
Competent Person who is a Corporate Member of the Australasian Institute of Mining and Metallurgy
(“AusIMM”) and the Australian Institute of Geoscientists (“AIG”). Alan Eggers is a professional geologist, a full-
time employee of Wesmin Corporate Pty Ltd, executive chairman of Trans-Tasman Resources Limited and an
executive director of Manuka Resources Ltd. Mr Eggers has sufficient experience that is relevant to the style
of mineralisation and type of mineral deposits being reported on in this release 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 (“JORC Code 2012 Edition”). The
information provided in this report announcement is an accurate representation of the available data and
studies of the Taranaki VTM Project. Mr Eggers consents to the inclusion in the release of the information on
Exploration Targets, Exploration Results or Mineral Resources based on his information in the form and
context in which it appears.
Manuka Resources Ltd
For the year ended 30 June 2023
24
Directors’ Report
The Directors of Manuka Resources Ltd (‘Manuka Resources’) present their report together with the financial
statements of the Entity or the Group, being Manuka Resources (‘the Company’) and its subsidiaries Mt Boppy
Resources Pty Ltd (‘Mt Boppy’) and Trans-Tasman Resources Ltd (‘TTR’) for the year ended 30 June 2023.
Manuka Resources Limited is a company limited by shares and incorporated in Australia on the 20th of April
2016.
Director details
The following persons were Directors of Manuka Resources during or since the end of the financial period
and up to the date of this report:
• Mr Dennis Karp
• Mr Anthony McPaul
• Mr Alan Eggers (appointed 10 November 2023)
• Mr John Seton (appointed 10 November 2023)
• Mr Nicholas Lindsay (resigned 24 November 2023)
The Directors’ qualifications, experience and directorships held in listed companies at any time during the last
three years, are set out in the Remuneration Report on pages 30 to 38.
Interests in the shares and options of the Company and related bodies corporate
As at the date of this report, the interests of the directors in the shares and options of Manuka Resources
Limited were:
Ordinary
Shares
91,814,557
60,812,616
-
49,941,020
-
Options over
Ordinary
Shares
500,000
12,000,000
300,000
9,596,635
300,000
Mr Dennis Karp
Mr Alan Eggers
Mr Anthony McPaul
Mr John Seton
Dr Nicholas Lindsay
Company Secretary details
Ms Toni Gilholme
Company Secretary since 20th April 2016
Ms Toni Gilholme is an experienced Chartered Accountant with over 20 years of experience in Financial
Accounting and Company Secretarial matters and over 10 years of experience in Public Practice.
Ms. Gilholme holds a Bachelor of Business from the University of Technology, Sydney and is a qualified
Chartered Accountant.
Manuka Resources Ltd
For the year ended 30 June 2023
25
Principal activities
During the period, the principal activities undertaken by the Group were:
• Conclusion of the trial phase of silver oxide stockpile processing at the Wonawinta Silver Project and
commencement of mine planning studies for Wonawinta.
• Development and Implementation of a program to process mineralised gold material from Mt Boppy (Mt
Boppy Stockpile Reprocessing) including:
o Completion of the bulk sampling phase for evaluation of the project economics
o Commissioning of the Wonawinta Plant to commence production of screened Mt Boppy
material
• A comprehensive review of all exploration prospects
• Completion of the acquisition of Trans-Tasman Resources Limited
Review of operations
Information on the operations and financial position of the group and its business strategies and prospects is
set out in the review of operations on pages 6 to 19 of this annual report.
Significant changes in state of affairs
During the year there have been no significant changes in the state of affairs of the Group other than:
• Secured debt facility extension and issuance of options
During the period, the Company successfully negotiated to extend the term of the secured debt facility to
30 September 2023.21 The extension has been granted on existing terms and rates with no extension
penalties or cash fees. The Company has resolved at a Board meeting held 29th September 2022 to grant
the issue of 5Million options with an exercise price based on the 5-day VWAP plus a 10% premium. Since
the end of the period a further extension has been negotiated to 30 September 2024. Refer Note 19.2(b).
• Maiden vanadium resource at Taranaki VTM Project (New Zealand)
In March 2023, the Company released its maiden Vanadium Resource for the Taranaki VTM Project in New
Zealand22, making it one of the largest aspiring vanadium producers on the ASX. The company will
commission additional metallurgical test work to optimise the flowsheet for processing of the VTM
concentrate to confirm economic recovery of vanadium as a separate product stream (this test work will
be scoped to target >70% recoverable metal). Revenue derived from vanadium pentoxide (V2O5) (either
as co-product or separate product) and potentially titanium dioxide (TiO2) sales would provide material
by-product credits to further offset already low iron ore operating expenses. The Project has already
secured a 50Mtpa mining licence (MP55581) with an initial 20 year mine life proposed with a bankable
feasibility study (BFS) already commenced. MP55581 is located within New Zealand’s EEZ.
• Wonawinta Silver Project
A trial phase of silver stockpile which was undertaken to obtain valuable processing and metallurgical data
to better inform mine planning for the oxide silver resource at Wonawinta was concluded in March 2023.
21 Refer ASX release dated 24 August 2022
22 Refer ASX announcement 1 March 2023
Manuka Resources Ltd
For the year ended 30 June 2023
26
• Strategic Exploration Review
On 14 February 2023, the Company announced the completion of its Strategic Exploration Review
highlighting near-mine resource upside. The Review provides Manuka with the exploration plan to add
significant resources of Gold, Silver, Copper and other Base Metals and included a comprehensive review
of over 30 years of geophysical data and reports that has defined new targets and information gaps which
will further define exploration tools and strategy.
• Mt Boppy stockpile reprocessing project and recommencement of gold processing
As a result of the Strategic Exploration Review, the Company commenced screening previously classified
barren overburden in April 2023 and commenced hauling to the Wonawinta plant for processing in May
2023 with gold processing through the plant commencing in June 202323. Gold sales commenced
subsequent to year with first sale on 26 July 2023.
Dividends
No dividends were paid or declared during the financial year ended 30 June 2023 (2022: Nil) and no
recommendation is made as to dividends.
Events arising since the end of the reporting period
• Further Extension of Secured Debt Facility
Since the end of the reporting period, the Company successfully negotiated to extend the term of the
secured debt facility to 30 September 2024. The extension has been granted on existing terms and rates
with no extension penalties or cash fees. The Company has resolved at a Board meeting held 19 September
2023 to grant the issue of 25Million options in four tranches with an exercise price based on the 5-day
VWAP plus a 10% premium.
• Mt Boppy Resource Update24
The Company released a Mt Boppy Gold Project Resource Upgrade showing a 357% increase in contained
ounces. The mineral resource estimate for Mt Boppy is contained within:
-
-
-
in situ rock dumps and tailings depositories, with in situ gold grades derived from bulk sampling
material derived from mechanically pitting and trenching to 2-3m depth and screening +200, -
200+20, +8-20, and -8mm size fractions, with cone measurements to ascertain mass % distribution
and total volume treated.
an open cut pit shell that reaches a depth of 215m below surface at the southern end of the Mt
Boppy deposit. Resources were reported July 2022 with respect to the current pit design. Material
within the pit design is reported at a 1.6 g/t Au cut off and material below the pit design is reported
to a 3.0 g/t Au cut off. The open cut is currently flooded and inaccessible for mining. Dewatering
and a sidewall pushback is necessary to access and mine these resources.
a grade shell modelled at a 1.6 g/t cut off over the Boppy South mineral zone. This prospect still
requires final drilling and evaluation before assessing establishing a small opencast.
23 Refer ASX release date 15 June 2023
24 Refer ASX announcement dated 25 August 2023
Manuka Resources Ltd
For the year ended 30 June 2023
27
-
Resource Category
Measured
Indicated
Inferred
Total
Tonnes
Contained gold
Troy ounces
18.0
58.5
83.6
160.1
Table 6: Mt Boppy Resource Update per ASX release 25 August 2023
Grade
g/t Au
5.25
3.01
1.47
2.01
107
605
1,770
2,482
*The preceding statements of Mineral Resources conforms to the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012 Edition. Due to rounding to
appropriate significant figures, minor discrepancies may occur. All tonnages reported are dry metric.
Apart from the matters noted above, there are no other matters or circumstances that have arisen since the
end of the period that has significantly affected or may significantly affect either:
•
•
•
the Group’s operations in future financial years;
the results of those operations in future financial years; or
the Group’s state of affairs in future financial years.
Likely developments
Processing of the screened gold material through the Wonawinta plant commenced in July 2023 and is forecast
to continue for four to five years. The company has commenced discussions with a number of parties with the
intention of refinancing the existing current debt facilities.
Further information on the likely developments of the group and its business strategies and prospects is set
out in the review of operations on pages 6 to 19 of this annual report.
Directors’ meetings
The number of meetings of the Company’s Board of Directors (“The Board”) (including meetings of
Committees of Directors where appointed) held during the period and the number of meetings attended by
each Director is as follows:
Board Member
Dennis Karp
Alan Eggers
Anthony McPaul
John Seton
Nicholas Lindsay
Board Meetings
A
16
12
16
12
4
B
16
12
14
12
4
Where:
column A: is the number of meetings the Director was entitled to attend
column B: is the number of meetings the Director attended
During the period and having regard to the size of the Company and the nature of its activities and the
composition and structure of the Board, the full Board has the responsibility for and performs the functions
of all Committees.
Manuka Resources Ltd
For the year ended 30 June 2023
28
Corporate Governance Statement
For the financial year ended 30 June 2023 (Reporting Period) the Company has adopted the fourth edition of
the Corporate Governance Principles and Recommendations released by the ASX Corporate Governance
Council. The Company’s 2023 Annual Corporate Governance Statement has been approved by the Board and
is publicly available on the Company’s website at www.manukaresources.com.au/site/about/corporate-
governance. It will also be released to the ASX at the same time as this 2023 Annual Report.
Unissued shares under option
Unissued ordinary shares of Manuka Resources under option at the date of this report are:
Date Options Granted
Expiry Date Exercise Price
of Shares
$
Number under
option
Sep 2021
Jan 2022
Sep 2022
Dec 2022
Dec 2022
Dec 2022
Mar 2023
Apr 2023
Apr 2023
June 2023
30th Sep 2023
11th Jan 2024
30th Sep 2024
31st Dec 2024
16th Dec 2025
15th Dec 2024
31st Mar 2025
31st Dec 2023
19th Apr 2023
30th June 2025
$0.32
$0.50
$0.16
$0.35
$0.17
$0.11
$0.08
$0.13
$0.25
$0.06
5,000,000
1,100,000
5,000,000
12,000,000
19,571,419
4,000,000
4,000,000
19,034,266
2,000,000
4,000,000
No shares were issued during or since the end of the year as a result of exercise of the options.
Material business risks
Operational risks
The operations of the Company may be affected by various factors many of which are beyond the control of
the Company, including failure to locate or identify additional mineral deposits, failure to achieve predicted
grades in exploration or mining, operational and technical difficulties encountered in mining, difficulties in
commissioning and/or operating plant and equipment, mechanical failure or plant breakdown, unanticipated
metallurgical problems which may affect extraction costs, adverse weather conditions, industrial and
environmental accidents, industrial disputes and unexpected shortages or increases in the costs of
consumables, spare parts, plant and equipment, fire, explosions and other incidents beyond the control of the
Company.
Nature of mineral exploration and mining
The business of mineral exploration, development and production is subject to a number of material risks. The
success of the Company’s business depends, amongst other things, on successful exploration and/or
acquisition of reserves, securing and maintaining title to tenements and consents, successful design,
construction, commissioning and operation of mining and processing facilities, successful development and
production in accordance with expectation and successful management of the operations. Exploration and
mining are speculative undertakings which may be hampered by force majeure events, land claims and
unforeseen mining and/or mechanical problems. Increased costs, lower output or high operating costs may
all contribute to make a project less profitable than expected at the time of the development decision. There
is no assurance that the Company’s current or planned processing activities will continue or commence, as
applicable, as expected.
Manuka Resources Ltd
For the year ended 30 June 2023
29
Commodity price volatility
As the Company’s revenues are primarily derived from the sale of precious metals, any future earnings
generated by the Company will be closely related to the market prices for precious metals (which can vary
materially during short periods of time). Commodity prices fluctuate and are affected by numerous factors
beyond the control of the Company. These factors include supply and demand fluctuations for precious and
base metals, forward selling by major producers, and production cost levels in major gold and silver producing
regions. Moreover, commodity prices are also affected by macroeconomic factors such as expectations
regarding inflation, interest rates and global and regional demand for, and supply of, the precious metals as
well as general global economic conditions. These factors may also have an adverse effect on the Company’s
exploration, development and production activities, as well as on its ability to fund those activities.
Currency volatility
International prices of various commodities, including gold and silver, are denominated in United States
dollars, whereas the income and expenditure of the Company are and will be taken in account in Australia
dollars, consequently exposing the Company to fluctuations and volatility of the rate of exchange between the
United States dollar and the Australian dollar as determined by the international markets.
Financial indebtedness risk
The Company manages its various financial obligations by preparing detailed cash flow forecasts and
monitoring actual cash flows. However, the Company’s ability to service its various financial obligations may
be impaired by the occurrence of any number of factors. In such circumstances and if the Company were
unable to obtain sufficient alternative funding, its creditors would be able to exercise their security over the
Company’s assets or pursue alternative remedies any of which would likely have a material adverse effect on
the Company’s financial condition, prospects and ability to continue as a going concern.
Environmental legislation
The operations of Manuka Resources Limited are subject to a number of particular and significant
environmental regulations under a law of the Commonwealth or of a State or Territory in Australia and in New
Zealand.
All conditions governing the administration of various environmental and tenement licences have been
complied with. So far as the Directors are aware there has been no known breach of the Group’s licence
conditions and all activities comply with relevant environmental regulations. The Directors are not aware of
any environmental regulation which is not being complied with.
Sustainability
The Company is committed to accepting accountability for its sustainability performance and to this end has
approved a number of actions. The renamed Audit, Risk & Sustainability Sub-Committee specifically highlights
the importance of focusing on sustainability performance, and the Board Charter has been amended
accordingly. The Company is in the process of reviewing and updating all polices targeting activities which may
have environmental and social impacts. At an operational level, all capital expenditure requests now require
an additional assessment of environmental, social and governance factors.
The Company has published its Sustainability Statement, highlighting our priorities and commitments,
including a commitment to align to the United Nations’ SDG’s (Sustainable Development Goals).
Manuka Resources Ltd
For the year ended 30 June 2023
30
An important consideration in addressing potential impacts is ensuring we are engaged with all our relevant
stakeholders. We continue to review our internal stakeholder materiality impact assessment and plan to
broaden this over the next year to include better engagement with key stakeholders.
Remuneration report (audited)
The information provided in this remuneration report has been audited as required by section 308(3C) of the
Corporations Act 2001. The remuneration report sets out remuneration information for the Company’s
Executive Director, Non-Executive Directors and other Key Management Personnel (“KMP”). The report
contains the following sections:
a) Key Management Personnel disclosed in this report;
b) Remuneration policy;
c) Performance-based remuneration;
d) Company performance, shareholder wealth and directors’ and executives’ remuneration;
e) Use of remuneration consultants;
f) Details of remuneration;
g) Service agreements;
h) Share-based compensation;
i) Equity instruments held by Key Management Personnel; and
j) Other transactions with Key Management Personnel.
a) Key Management Personnel disclosed in this report
Directors
The following persons were Directors of Manuka Resources Ltd during or since the end of the financial period
and up to the date of this report:
• Mr Dennis Karp
• Mr Alan Eggers (appointed 10 November 2022)
• Mr Anthony McPaul
• Mr John Seton (appointed 10 November 2022)
• Mr Nicholas Lindsay (resigned 24 November 2022)
Other Key Management Personnel
• Haydn Lynch, Chief Operations Officer
There have been no changes to directors or KMP since the end of the reporting period. Details of the equity
instruments in which Directors have an interest are outlined in paragraph (i) below.
Mr Dennis Karp
Executive Chairman
Director since 20th April 2016, Executive Chairman since 1 March 2020
Mr Karp commenced his career in the Australian financial markets in 1983. He was the Head of Trading at
HSBC Australia prior to joining Tennant Limited in 1997, a substantial Australian domiciled physical commodity
trading company with operations in Asia and Europe. He was a principal shareholder of Tennant Metals until
2010 and managing director from 2000 until December 2014. Mr Karp founded ResCap Investments Pty Ltd in
December 2014.
Manuka Resources Ltd
For the year ended 30 June 2023
31
Over the past 11 years, Mr Karp has been involved in various resource projects and investment opportunities
in base metals and bulk commodities which have had marketing rights attached.
Mr Karp holds a Bachelor of Commerce from the University of Cape Town. Mr Karp does not hold any current
and has not held any former directorships in other listed companies in the last 3 years.
Mr Alan Eggers
Executive Director
Director since 10 November 2022, Executive Director since 1 February 2023
Alan is a geologist with over 40 years of local & international experience. He brings with him exceptional
commercial expertise and was a founding director of Summit Resources Limited which they built from listing
on the NZX in 1987 into an ASX top 200 company and an ultimate takeover by Paladin Energy for A$1.2B in
2007. He holds a number of private directorships.
Alan holds Bachelor of Science, Honours and Masters of Science degrees from Victoria University of
Wellington. He’s a Fellow of the Society of Economic Geologists, a Member of AusIMM and the Australian
Institute of Geoscientists.
Mr Anthony McPaul
Non-executive Director
Director since 25th November 2016
Mr Anthony McPaul is a senior mining executive with over 40 years’ experience in mining operations and
mineral processing. Mr McPaul has worked in and led both open cut and underground operations and was
most formerly the general manager for Newcrest’s Cadia Valley Operations, in Orange NSW.
Mr McPaul commenced his career as an automotive engineer and progressed to maintenance and then onto
operations management at various companies, including CRA, Denehurst, MIM and more recently Newcrest.
He has successfully managed a wide range of operating projects from base through to precious metals in both
surface and underground mines and has been directly responsible for all aspects of production and scheduling.
Mr McPaul formally retired from Newcrest in July 2016 and has since devoted his time to non-executive and
contract roles. Mr McPaul has represented Newcrest and the resources industry on many boards, such as NSW
Minerals Council, NSW Minerals Council Executive Committee, and was the NSW Minerals Council
representative on the Mine Safety Advisory Council. Mr McPaul has chaired many of these committees.
Mr McPaul is the former Chairman of the NSW Minerals Council Board and Executive Committee and a former
member of the Mineral Industry Advisory Council.
Mr McPaul has formal qualifications in automotive engineering from Goulburn TAFE. Mr McPaul does not hold
any current and has not held any former directorships in other listed companies in the last three years.
Manuka Resources Ltd
For the year ended 30 June 2023
32
Mr John Seton
Non-executive Director
Director since 10 November 2022
John is an Auckland based lawyer with extensive experience in commercial law and the mineral resources
sector. He was a director of Summit Resources Limited until its sale in 2007, as well as being a director of a
number of other ASX and NZX listed companies and various private companies. He was a former Chairman of
the Vietnam/New Zealand Business Council.
John holds a Bachelor of Laws from Victoria University, Wellington, and a Masters of Law (Honours) from the
University of Auckland and is a Chartered Fellow of the New Zealand Institute of Directors.
Mr Seton has held the following Directorships in other listed companies in the 3 years immediately before the
end of the financial year:
• Manhattan Corporation Limited (ASX: MHC)
• Besra Gold Inc (ASX: BEZ), Director since August 2011
• Good Spirits Hospitality Limited (NZX: GSH)
• Tomizone Limited (formerly listed on ASX: TOM)
Dr Nicholas Lindsay
Non-executive Director
Director since 20th June 2019, resigned 24 November 2022
Dr Nicholas Lindsay is an experienced mining executive who brings an attractive mix of commercial, technical
and academic qualifications, all of which are relevant to the Company. He has worked directly for a range of
major and mid-tier mining companies over his career, and led juniors in copper, gold and silver though listings
and mergers. Dr Lindsay is a geologist by profession, specialising in process mineralogy, and has postgraduate
degrees from the University of Otago (NZ), the University of Melbourne and the University of the
Witwatersrand (South Africa). He is a member of the Australian Institute of Geoscientists. Mr Lindsay has held
the following Directorships in other listed companies in the 3 years immediately before the end of the financial
year:
Lake Resources NL - Executive Technical Director (ceased 28 November 2022)
•
• Valor Resources Ltd - Chief Executive Officer and Executive Director – Technical (ceased October 2020)
• Daura Capital Corp. - Non-Executive Director (ceased September 2020)
Mr Lindsay resigned effective from 24 November 2022.
b) Remuneration policy
The remuneration policy of Manuka Resources Limited has been designed to align key management personnel
objectives with shareholder and business objectives by providing a fixed remuneration component and
offering specific long-term incentives based on key performance areas affecting the Group’s financial results.
The board of Manuka Resources Limited believes the remuneration policy to be appropriate and effective in
its ability to attract and retain the best key management personnel to run and manage the Group.
The board’s policy for determining the nature and amount of remuneration for key management personnel of
the Group is as follows:
Manuka Resources Ltd
For the year ended 30 June 2023
33
• The remuneration policy, setting the terms and conditions for the executive directors and other senior
executives (if any), was developed by the board. All executives receive a base salary (which is based on
factors such as length of service and experience) and superannuation. The board reviews executive
packages annually by reference to the Group’s performance, executive performance and comparable
information from industry sectors and other listed companies in similar industries.
• The board exercises its discretion in relation to approving incentives, bonuses and options. The policy is
designed to attract and retain the highest calibre of executives and reward them for performance that
results in long term growth in shareholder wealth.
• Executives are also entitled to participate in the employee share and option arrangements.
• The executive directors and executives (if any) receive a superannuation guarantee contribution required
by the government, which was 10.5% for the 2023 financial year (2022: 10%) payable on earnings up to
the maximum contribution base of $60,220 per quarter (2022: $58,920 per quarter), and do not receive
any other retirement benefits. Some individuals may choose to sacrifice part of their salary to increase
payments towards superannuation.
• All remuneration paid to directors and executives is valued at the cost to the Group and expensed. The
cost of share-based payments is measured by reference to the fair value at the date at which they are
granted using an option pricing model.
• The board policy is to remunerate non-executive directors at market rates for comparable companies for
time, commitment, and responsibilities. The board determines payments to the non-executive directors
and reviews their remuneration annually, based on market practice, duties and accountability.
Independent external advice is sought when required. The maximum aggregate amount of fees that can
be paid to non-executive directors is subject to approval by shareholders at the Annual General Meeting
(currently $240,000). Fees for non-executive directors are not linked to the performance of the Group.
However, to align directors’ interests with shareholder interests, the directors are encouraged to hold
shares in the Company.
c) Performance-based remuneration
The Group currently has no formal performance-based remuneration component built into key management
personnel remuneration packages. Remuneration and discretionary share based payments are issued to align
the Directors’ interest with that of shareholders.
d) Company performance, shareholder wealth and directors’ and executives’ remuneration
Whilst no formal policy exists, remuneration is tailored to increase the direct positive relationship between
shareholders’ investment objectives and key management personnel performance. Currently, this is facilitated
through the issue of options to the majority of key management personnel to encourage the alignment of
personal and shareholder interests. The Group believes this policy will be effective in increasing shareholder
wealth.
The table below shows the gross revenue, profits and (losses) and earnings per share for the last five financial
periods for the listed entity.
2023
$
2021
Restated **
$
2020
Restated **
$
2019
Restated *
$
2022
$
9,899,903
(26,342,019)
53,271,499
5,281,420
44,544,455
(3,074,177)
9,468,320
(3,884,45)
-
(5,428,238)
(6.15)
$0.05
1.92
$0.17
(1.19)
$0.32
(2.80)
n/a
(4.08)
n/a
Revenue and other income
Net profit / (loss)
Profit / (loss) per share
(cents) *
Share price
Manuka Resources Ltd
For the year ended 30 June 2023
34
No dividends have been paid during the financial years ended 30 June 2019 to 30 June 2023.
* In accordance with AASB 133 paragraph 26, the weighted average number of shares outstanding during the
period and for all periods presented shall be adjusted for events (such as a share consolidation) that have
changed the number of shares outstanding without a corresponding change in resources. As a result, the share
consolidation which occurred on 11th May 2020 has been applied to the full financial year ended 30 June 2020
and all the previous reporting periods.
** The amounts shown for 2020 and 2021 have been restated in relation to a correction of the movement and
valuation of Rehabilitation Provisions, Development Assets and Environmental Bonds. The impact of the
restatement on the statement of comprehensive income, was a decrease of $668,408 for the period ended 30
June 2021 and an increase for the period ended 30 June 2021 of $489,475.
e) Use of remuneration consultants
The Group did not employ the services of any remuneration consultants during the financial year ended 30
June 2023 (2022: None).
f) Details of remuneration
Details of the remuneration of the key management personnel of the Group are set out in the following table.
Fixed Remuneration
Non-
Monetary
Benefits
Accrual for
Annual and
Long Service
Leave
Salary/
Directors Fee
Variable
Remuneration
Superannuation
Options
$
$
$
$
$
Total
$
Directors
Dennis Karp
2023
2022
Alan Eggers25
2023
Anthony McPaul26
2023
2022
John Seton27
2023
Nick Lindsay28
2023
2022
Other KMP (Group)
Haydn Lynch
2023
2022
Total KMP remuneration
expensed
2023
2022
$350,000
$343,300
$138,998
$65,007
$55,004
$45,154
$27,086
$55,004
$244,708
$278,105
$870,953
$731,413
-
-
-
-
-
-
-
-
-
-
-
-
$27,027
$27,027
$25,292
$22,885
-
$402,319
$31,690
$424,902
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$19,014
-
-
$19,014
$138,998
$65,007
$74,018
$45,154
$27,086
$74,018
$18,897
$18,741
$45,924
$46,768
$25,292
$22,743
$50,584
$45,628
-
-
-
$288,897
$319,589
$967,461
$69,718
$892,527
25 Director fees for Mr Eggers are paid into a Company nominated by Mr Eggers
26 Director fees for Mr McPaul are paid into a Company nominated by Mr McPaul.
27 Director fees for Mr Seton are paid into an entity nominated by Mr Seton.
28 Director fees for Mr Lindsay are paid into a Company nominated by Mr Lindsay.
Manuka Resources Ltd
For the year ended 30 June 2023
35
g) Service agreements
The details of service agreements of the key management personnel of the Group are as follows:
Dennis Karp, Executive Chairman:
(a) Mr Karp was appointed Executive Chairman on 1 March 2020 at an annual salary of $240,000 (exclusive
of superannuation) plus any Compulsory Superannuation. This was increased effective 1 January 2022
to $350,000 plus any Compulsory Superannuation; and
The agreement is ongoing until terminated in accordance with the agreement. Mr Karp may terminate
the agreement by giving 12 weeks’ notice in writing to the Company and the Company may terminate
the agreement (without cause) by giving Mr Karp 12 weeks’ written notice or by making payment in lieu
of notice.
(b)
Alan Eggers, Executive Director:
(b) Mr Eggers was appointed Executive Director on 1 February 2023 at an annual consultancy fee of
(c)
$240,000 inclusive of any Compulsory Superannuation, exclusive of any GST; and
The agreement is ongoing until terminated in accordance with the agreement. Mr Eggers may terminate
the agreement by giving 3 months’ notice in writing to the Company and the Company may terminate
the agreement (without cause) by giving Mr Eggers 3 months’ written notice or by making payment in
lieu of notice.
Haydn Lynch, Chief Operations Officer:
(a) Mr Lynch was appointed Chief Operating Officer on 1 July 2019 at annual salary of $240,000 (inclusive
of superannuation). This was increased effective 1 January 2022 to $270,000 inclusive of any
Compulsory Superannuation; and
The agreement is ongoing until terminated in accordance with the agreement. Mr Lynch may terminate
the agreement by giving 12 weeks’ notice in writing to the Company and the Company may terminate
the agreement (without cause) by giving Mr Lynch 12 weeks’ written notice or by making payment in
lieu of notice.
(b)
Anthony McPaul, Non-executive Director:
Mr McPaul has entered into service agreements 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.
Annual remuneration is $65,000 per annum effective 1 January 2022 (previously $45,000 per annum), with
additional fees payable where the Board determines special duties, or services outside the scope of the of the
ordinary duties of a NED, have been performed. Remuneration is subject to annual review by the Board and
reasonable notice of an intention to resign or to not seek re-election should be given to the Company.
John Seton, Non-executive Director:
Mr Seton has entered into service agreements 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.
Annual remuneration is $65,000 per annum effective 1 January 2022 (previously $45,000 per annum), with
additional fees payable where the Board determines special duties, or services outside the scope of the of the
ordinary duties of a NED, have been performed. Remuneration is subject to annual review by the Board and
reasonable notice of an intention to resign or to not seek re-election should be given to the Company.
Nicholas Lindsay, Non-executive Director:
Mr Lindsay entered 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.
Annual remuneration is $65,000 per annum effective 1 January 2022 (previously $45,000 per annum), with
additional fees payable where the Board determines special duties, or services outside the scope of the of the
Manuka Resources Ltd
For the year ended 30 June 2023
36
ordinary duties of a NED, have been performed. Remuneration is subject to annual review by the Board and
reasonable notice of an intention to resign or to not seek re-election should be given to the Company. Mr
Lindsay resigned effective from 24 November 2022.
h) Share-based compensation
Shares
No shares have been granted as remuneration during the period.
Options
Options are issued to key management personnel as part of their remuneration. The options are not issued
based on performance criteria but are issued to the majority of key management personnel of Manuka
Resources Limited to increase goal congruence between key management personnel and shareholders. There
were no options granted to or vesting with key management personnel during the year.
No ordinary shares in the Company have been provided as a result of the exercise of remuneration options to
each director of Manuka Resources Limited and other key management personnel of the Group during the
year.
i) Equity instruments held by Key Management Personnel
Shareholdings
The numbers of shares in the Company held during the financial year by each director of Manuka Resources
Limited and other key management personnel of the Group, including their related parties, and any nominally
held, are set out below. There were no shares granted during the reporting period as compensation.
Directors
Dennis Karp
Alan Eggers
Anthony McPaul
John Seton
Nicholas Lindsay
Other KMP
Haydn Lynch
Note
Balance at start of
the year
Received during
the year on the
exercise of Options
Other changes
during the year
Balance at end of
the year
a
b
b
a
91,814,557
-
-
-
-
-
-
-
-
-
-
-
(43,994,625)
60,812,616
-
47,819,932
60,812,616
-
49,941,020
49,941,020
-
-
3,991,629
3,991,629
(a) Shares were allocated in species by ResCap Investments Pty Ltd to its shareholders29.
(b) Shares were issued as part of the acquisition of TTR – refer Note 22 for details.
29 Refer ASX announcement 6 January 2023
Manuka Resources Ltd
For the year ended 30 June 2023
37
Option holdings
The numbers of options over ordinary shares in the Company held during the financial year by each director
of Manuka Resources Limited and other key management personnel of the Group, including their personally
related parties, and any nominally held, are set out below.
Granted as
compen-
sation
Balance at
start of the
year
Balance at
end of the
year
Vested and
exercisable
Other
changes
Unvested
Note
Directors
Dennis Karp
Alan Eggers
Anthony McPaul
Nicholas Lindsay
Other KMP
Haydn Lynch
a
b
a
a
a
2,000,000
-
1,800,000
1,800,000
1,500,000
-
-
-
-
-
(1,500,000)
500,000
500,000
12,000,000
12,000,000
12,000,000
(1,500,000)
(1,500,000)
300,000
300,000
300,000
300,000
(1,500,000)
-
-
-
-
-
-
-
(a) Options expired 17th April 202330.
(b) Options were issued as part of the acquisition of TTR – refer Note 22 for details.
No options were exercised during the period (2022: Nil). All vested options are exercisable.
Details of options held by Directors are as follows:
• Exercise price of 50 cents, expiry 11 January 2024
Directors
Dennis Karp
Anthony McPaul
Nicholas Lindsay
# options held
500,000
300,000
300,000
• Exercise price of 35 cents, expiry 31 December 2024
Directors
Alan Eggers
# options held
12,000,000
j) Other transactions with Key Management Personnel
• Rescap Investments Pty Ltd - A director, Mr Dennis Karp, is a director of, and holds a controlling interest
in, ResCap Investments Pty Ltd (“ResCap”). The Group has borrowing arrangements with ResCap.
• Minvest Securities (New Zealand) Limited – A directors, Mr Alan Eggers, is a Director of and holds a
controlling interest in, Minvest Securities (New Zealand) Limited (“Minvest”). Trans-Tasman Resources Ltd
had borrowing arrangements with Minvest which were repaid in March 2023.
Aggregate amounts of each of the above types of other transactions with key management personnel of
Manuka Resources Limited:
Details of related party transactions with ResCap through
the loan facility:
- interest charged on loan
186,255
29,184
30 Refer ASX announcement 19 April 2023
30 June
2023
$
30 June
2022
$
Manuka Resources Ltd
For the year ended 30 June 2023
38
Details of balances with related parties:
Balance of loan with Manuka Resources Ltd
- payable to ResCap Investments Pty Ltd
Details of related party transactions with Minvest through
the loan facility:
- interest charged on loan
Details of balances with related parties:
Balance of loan with Trans-Tasman Resources Ltd
- payable to Minvest Securities (New Zealand) Ltd
End of audited Remuneration Report
1,216,714
909,959
17,062
-
-
-
Indemnities given to, and insurance premiums paid for, auditors and officers
During the period, Manuka Resources has paid a premium to insure officers of the Company. The officers of
the Company that are covered by the insurance policy includes all directors and key management personnel.
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, other than where such liabilities
arise out of 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 to cause detriment to the
Company.
The Company has not otherwise, during or since the end of the financial period, except to the extent permitted
by law, indemnified or agreed to indemnify any current or former officer of the Company against a liability
incurred as such by an officer.
The Company has agreed to indemnify its auditors, Ernst & Young, to the extent permitted by law, against any
claim by a third party arising from the Company’s breach of its agreement. The indemnity requires the
Company to meet the full amount of any such liabilities including a reasonable amount of legal costs.
Proceedings on behalf of the Company
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.
No proceedings have been brought, or intervened in, on behalf of the company with leave of the court under
section 237 of the Corporations Act 2001.
Audit and non-audit services
Details of the amounts paid or payable to the auditor (Ernst & Young) for audit and non-audit services during
the year are disclosed in Note 9.
The Company may decide to employ the auditor on assignments additional to their statutory audit duties
where the auditor’s expertise and experience with the Company and/or the Group are important.
There were no non-audit services during the financial year ended 30 June 2023.
Manuka Resources Ltd
For the year ended 30 June 2023
39
Auditor’s Independence Declaration
A copy of the Auditor’s Independence Declaration as required under s.307C of the Corporations Act 2001 is
included on the following page of this financial report and forms part of this Directors’ Report.
Signed in accordance with a resolution of the Directors.
Dennis Karp
Executive Chairman
Dated the 29th day of September 2023
Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
ey.com/au
Auditor’s independence declaration to the directors of Manuka Resources
Limited
As lead auditor for the audit of the financial report of Manuka Resources Limited for the financial year
ended 30 June 2023, I declare to the best of my knowledge and belief, there have been:
a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit;
b. No contraventions of any applicable code of professional conduct in relation to the audit; and
c. No non-audit services provided that contravene any applicable code of professional conduct in
relation to the audit.
This declaration is in respect of Manuka Resources Limited and the entities it controlled during the
financial year.
Ernst & Young
Siobhan Hughes
Partner
29 September 2023
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Manuka Resources Ltd
For the year ended 30 June 2023
41
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
For the year ended 30 June 2023
Notes
5(a)
6(a)
5(b)
6(c)
6(e)
6(f)
7
8
Sales revenue
Cost of sales
Operating profit
Other income
Other expenses
Share based payment expense
Foreign exchange gains / (losses)
Profit /(loss) before finance expenses
Finance expenses
Profit / (loss) before income tax
Income tax expense
Profit / (loss) for the period attributable to
members of Manuka Resources Limited
Other comprehensive income
Total comprehensive income
Total comprehensive profit / (loss) for the year
attributable to members of Manuka Resources
Limited
Profit / (loss) per share for loss attributable to
the ordinary equity holders of the Company
Basic profit /(loss) per share (cents per share)
Diluted profit /(loss) per share (cents per
share)31
25
25
This statement should be read in conjunction with the notes to the financial statements.
30 June
2023
$
9,899,903
(24,324,548)
(14,424,645)
30 June
2022
$
53,271,499
(41,244,405)
12,027,094
481,720
304,621
(8,092,485)
-
(544,183)
(22,579,593)
(3,762,426)
(26,342,019)
(2,540,079)
(69,718)
(1,025,343)
8,696,575
(3,415,155)
5,281,420
-
(26,342,019)
5,281,420
40,160
40,160
6,297
6,297
(26,301,859)
5,287,717
(6.15)
(6.15)
1.92
1.61
31 As the Group made a loss for the year ended 30 June 2023, none of the potentially dilutive securities were included in the calculation of diluted
earnings per share for that year. These securities could potentially dilute basic earnings per share in the future.
Manuka Resources Ltd
For the year ended 30 June 2023
42
Consolidated Statement of Financial Position
As of 30 June 2023
Assets
Current
Cash and cash equivalents
Trade and other receivables
Inventories
Prepayments
Other financial assets
Total current assets
Non-current
Mine properties and development assets
Exploration and evaluation assets
Property, plant and equipment
Right of use asset
Other financial assets
Total non-current assets
Total assets
Liabilities
Current
Trade and other payables
Provisions
Contract liabilities
Borrowings
Lease liabilities
Current liabilities
Non-current
Provisions
Lease liabilities
Borrowings
Total non-current liabilities
Total liabilities
Net assets / (deficit)
Notes
11
12
14
13
19.3
15
16
17
18
19.3
20
21
19.2
18
21
18
19.2
30 June
2023
$
Restated32
30 June
2022
$
265,833
685,660
2,307,345
404,429
186,000
3,849,267
638,743
35,200,653
15,645,937
233,987
5,937,068
57,656,388
61,505,655
7,138,892
643,823
968,646
24,524,576
147,233
33,423,170
7,773,532
111,807
255,172
8,140,511
41,563,681
19,941,974
1,160,615
430,582
2,889,123
770,552
186,000
5,436,872
4,371,830
8,457,839
16,403,110
374,641
6,552,225
36,159,645
41,596,517
6,242,625
628,315
62,183
13,053,251
124,901
20,111,275
7,594,510
259,040
57,927
7,911,477
28,022,752
13,573,765
This statement should be read in conjunction with the notes to the financial statements.
32 Certain capitalised costs relating to the Wonawinta processing plant have been reclassified from Mine Properties and Development Assets to
Property, Plant and Equipment in the comparative period to better reflect the nature of the costs capitalised and to align with current period
presentation.
Manuka Resources Ltd
For the year ended 30 June 2023
43
Equity
Share capital
Share based payment reserve
Other reserves
Accumulated losses
Total equity
Notes
23
26
30 June
2023
$
30 June
2022
$
57,038,387
4,242,049
40,160
(41,378,622)
19,941,974
25,771,113
2,839,254
-
(15,036,602)
13,573,765
This statement should be read in conjunction with the notes to the financial statements.
Manuka Resources Ltd
For the year ended 30 June 2023
44
Consolidated Statement of Changes in Equity
For the year ended 30 June 2023
Share
Capital
Notes
Share-
based
payment
reserve
Other
reserves
Accumulated
losses
Total equity
$
$
$
$
21,512,355
1,486,077
(6,297)
(20,318,023)
2,674,112
Balance at 1 July 2021
Profit for the period
Other comprehensive profit
Total comprehensive loss
for the period
Contribution of equity
Share based payments
Share issue costs
-
-
-
5,000,000
-
-
-
-
-
1,353,177
(741,242)
-
Balance at 30 June 2022
25,771,113
2,839,254
Loss for the period
Other comprehensive loss
Total comprehensive loss
for the period
Contribution of equity
Share based payments
Share issue costs
-
-
-
32,230,650
-
-
-
-
26
-
1,402,795
(963,376)
-
-
5,281,420
5,281,420
6,297
6,297
-
6,297
5,281,420
5,287,717
-
-
-
-
-
-
-
-
5,000,000
1,353,177
(741,242)
(15,036,603)
13,573,764
(26,342,019)
(26,342,019)
40,160
-
40,160
40,160
(26,342,019)
(26,301,859)
-
-
-
-
-
-
32,230,650
1,402,795
(963,376)
Balance at 30 June 2023
57,038,387
4,242,049
40,160
(41,378,622)
19,941,974
This statement should be read in conjunction with the notes to the financial statements.
Manuka Resources Ltd
For the year ended 30 June 2023
45
Consolidated Statement of Cash Flows
For the year ended 30 June 2023
Notes
Operating activities
Receipts from customers
Payments to suppliers and employees
Other income
Finance costs paid
Net cash from operating activities
24
Investing activities
Acquisition of property, plant and equipment
Sale of property, plant and equipment
Payments for development and exploration assets
Acquisition of other assets
Sale of other assets
2023
$
10,438,991
(24,774,078)
430,356
(615,169)
(14,519,900)
(607,782)
301,818
(657,949)
(244,133)
-
2022
$
53,537,741
(43,023,213)
302,461
(2,465,743)
8,351,246
(6,903,932)
225,128
(1,974,742)
-
92,345
Net cash (used in) investing activities
(1,208,046)
(8,561,201)
Financing activities
Proceeds from borrowings
Repayments of borrowings
Repayment of lease liabilities
Proceeds from issues of ordinary shares
23.1
Costs of issue of ordinary shares
Net cash from financing activities
Net change in cash and cash equivalents
Cash and cash equivalents, at beginning of the period
Cash and cash equivalents, at end of period
11
12,965,814
(4,249,031)
(130,173)
6,508,097
(261,543)
14,833,164
(894,782)
1,160,615
265,833
375,680
(4,560,884)
(133,071)
5,000,000
(329,190)
352,535
142,580
1,018,035
1,160,615
This statement should be read in conjunction with the notes to the financial statements.
Manuka Resources Ltd
For the year ended 30 June 2023
46
Notes to the Financial Statements
Nature of operations and general information and statement of compliance
1
The principal activities of Manuka Resources Ltd comprise mine development, mining and processing of silver,
gold and exploration activities.
During the financial year the Company’s principal activities related to completion of the trial phase of silver
oxide stockpile processing at the Wonawinta Silver Project and commencement of mine planning studies for
Wonawinta which has yielded important metallurgical testwork data as well as operational changes,
development and implementation of a program to process mineralised gold material from Mt Boppy (Mt
Boppy Stockpile Reprocessing) including bulk sampling and commencement of screening and haulage of
screened material. Field activities focused on a comprehensive review of all exploration prospects. In addition,
during the period, the Company acquired the assets of Trans-Tasman Resources Ltd and is progressing the
development of their Taranaki VTM Project (New Zealand).
The financial report includes the consolidated financial statements and notes of Manuka Resources Limited
and its controlled entities, Mt Boppy Resources Pty Ltd and Trans-Tasman Resources Ltd (Consolidated Group
or Group).
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. These include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance
with AIFRS ensures the that the financial report, comprising the financial statements and the notes, complies
with International Financial Reporting Standards (IFRS). Manuka Resources Limited is a for-profit entity for the
purpose of preparing the financial statements.
Manuka Resources Ltd is a Public Company incorporated and domiciled in Australia. The address of its
registered office and its principal place of business is Level 4, Grafton Bond Building, 201 Kent Street, Sydney,
New South Wales.
The consolidated financial statements for the year ended 30 June 2023 were approved and authorised for
issue by the Board of Directors on 29 September 2023. The directors have the power to amend and reissue
the financial statements.
In accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, the
amounts in the Directors’ report and in the financial report have been rounded to the nearest dollar.
2
Changes in accounting policies
2.1 New and amended standards adopted
There were no new or amended standards applied for the first-time for the annual reporting period ended 30
June 2023.
2.2 Accounting standards and interpretations not yet effective
The following Australian Accounting Standards and Interpretations that have recently been issued or amended
but are not yet mandatory, have not been early adopted by the consolidated entity for the annual reporting
period ended 30 June 2023. The consolidated entity has not yet completed a detailed review of these, however
does not expect any of them to have a material impact on the financial results upon adoption.
Manuka Resources Ltd
For the year ended 30 June 2023
47
Amendment to AAS Classification of Liabilities as Current or Non-Current
Amendments to AASB 108 Definition of Accounting Estimates
Amendments to AASB 1 and AASB Practice Statement 2 Disclosure of Accounting Policies
Amendments to AASB 112, Deferred Tax related to Assets and Liabilities from a Single Transaction
AASB 2022-5 Amendments to AASs – Lease Liability in a Sale and Leaseback with effective date 1 January
2024
Summary of accounting policies
3
3.1 Overall considerations
The significant accounting policies that have been used in the preparation of these financial statements are
summarised below.
The financial statements have been prepared using the measurement bases specified by Australian Accounting
Standards for each type of asset, liability, income and expense. The measurement bases are more fully
described in the accounting policies below.
The financial statements have been prepared on a historical cost basis, except for the assets held for sale which
are measured at fair value less cost of disposal. The financial statements are presented in Australian dollars
which is the Company’s functional and presentation currency.
3.2 Going Concern
The financial report has been prepared on a going concern basis, which contemplates continuity of normal
business activities and realisation of assets and settlement of liabilities in the ordinary course of business.
During the financial year ended 30 June 2023, the Group generated operating loss of $14,424,645 (2022: profit
of $12,027,094) and negative operating cash flows of $14,519,900 (2022: positive operating cash flows of
$8,351,245). This was primarily driven by high production and operating costs at Wonawinta on a per ounce
of silver produced basis, due to low volumes of ore through the plant arising from a number of factors including
wet weather. In addition, the Group experienced a period of zero sales from March 2023 to July 2023 whilst
the Group transitioned to gold processing from Mt. Boppy.
As a consequence, at 30 June 2023 the Group had $265,833 of cash on hand and remained in a net current
liability position of $29,573,903 (2022: $14,674,403) due primarily to $24,524,576 in current debt. The most
significant loan balance amounts to $14.4 million which was repayable at 30 September 2023 (however has
been deferred subsequent to financial year end to 30 September 2024). In addition, the Company entered into
a trade finance facility with rolling three month repayment requirements and has other short term loans due
to related parties and asset backed funding which are repayable over September and October 2023. The Group
also has current payables of $7,138,892, many of which were long dated or past due at year end.
Subsequent to year end, the Company has recommenced processing of Mt. Boppy gold with sales
recommencing in late July 2023. This has ramped up in August, and proceeds from these sales have been used
to repay a number of the long dated creditors and short-term loan facilities. Additionally, the Group has been
managing its cash position though the negotiation of payment plans with creditors, the negotiation of loan
repayment deferrals with lenders, and the use of an existing working capital facilities to manage short term
cash flow needs. Importantly, the majority of the current debt balance has been successfully deferred, to allow
time for the Group to refinance. A portion of the short-term loans have also been repaid using proceeds from
gold sales.
Manuka Resources Ltd
For the year ended 30 June 2023
48
The Directors, in their consideration of the appropriateness of the going concern basis for the preparation of
the financial statements, have prepared cash flow projections for the period to 31 October 2024 that, in
conjunction with the aforementioned debt refinance, supports the ability of the Group to continue as a going
concern over the coming 12 month period. However, in order to repay its current liabilities in the timeframe
required, these projections rely on the following:
• The ability to successfully find alternative financing arrangements to replace the existing current debt
balances or agree to new/renegotiated terms with all current lenders. The Group is confident in their
ability to complete this in a timely manner as the Group is currently in discussions in this regard.
• The ability to continue to negotiate further loan extensions or raise funds in the capital markets, to
the extent that a debt restructure does not occur within the extension periods currently agreed. The
Group has a history of successful deferrals and support from existing lenders.
• Continued management of the creditor book and repayment of long dated and past due creditors via
proceeds from gold sales or the use of working capital/short term loan facilities as required.
• The ability of the Group to continue gold production (and by-product silver) profitably and consistently
from Mt Boppy, in line with the Group’s forecast gold prices, the cut-off grade, and the planned
recoveries from known resources and stockpiles.
Should the Group be unsuccessful in achieving the matters set out above, a material uncertainty would exist
that may cast significant doubt on the ability of the Group to continue as a going concern and therefore,
whether it will realise its assets and extinguish its liabilities in the ordinary course of business.
The Directors are confident that the above steps can be achieved based on:
• History of being able to successfully extend the current debt facilities, noting the facility with TransAsia
Private Capital Limited (as disclosed in Note 14) has been successfully extended twice previously;
• The company has already commenced discussions with a number of parties with the intention of
refinancing the existing current debt facilities;
• The level of support extended from key suppliers and creditors to date all of whom are displaying a
strong interest in seeing the Company return to steady gold production;
• Historical ability to achieve significant profits from Mt Boppy ($12.8 million in net profit achieved in
the 2022 fiscal period to 31 March 2022 being the end of gold processing) and the continued high gold
prices;
• Successfully raising funds in the market should this be required, to fund mining activities as previously
demonstrated with the raising of $4,110,000 in December 2022 and a further $2,398,000 in April 2023.
At the date of signing this report, the Directors have reasonable grounds to believe that due to the matters
noted above and the actions taken that it is appropriate to prepare the financial statements on the going
concern basis.
The financial statements do not include any adjustments that might be necessary to realise its assets and
discharge its liabilities in the normal course of business, and at the amounts stated in the financial report,
should the Group not be able to continue as a going concern.
3.3 Basis of consolidation
The Group’s financial statements consolidate those of the Parent Company and all of its subsidiaries at the
end of the reporting period. The parent controls a subsidiary if it is exposed, or has rights, to variable returns
from its involvement with the subsidiary and has the ability to affect those returns through its power over the
subsidiary. All subsidiaries have a reporting date of 30 June.
Manuka Resources Ltd
For the year ended 30 June 2023
49
All transactions and balances between Group companies are eliminated on consolidation, including unrealised
gains and losses on transactions between Group companies. Where unrealised losses on intra-group asset
sales are reversed on consolidation, the underlying asset is also tested for impairment from a group
perspective. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary
to ensure consistency with the accounting policies adopted by the Group.
Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the year are
recognised from the date on which control is transferred to the Group, or up to the date that control ceases.
3.4 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the full Board of Directors. (Refer
Note 4)
3.5 Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of
the primary economic environment in which the entity operates (‘the functional currency’). The consolidated
financial statements are presented in Australian dollars, which is Manuka Resources Limited's functional and
presentation currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing
at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at year end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in profit or loss. They are deferred in equity if they are
attributable to part of the net investment in a foreign operation.
Foreign exchange gains and losses are presented in the statement of profit or loss on a net basis within other
gains/(losses).
Income taxes
3.6
Tax expense recognised in profit or loss comprises the sum of deferred tax and current tax not recognised in
other comprehensive income or directly in equity.
Current income tax assets and/or liabilities comprise those obligations to, or claims from, the Australian
Taxation Office (ATO) and other fiscal authorities relating to the current or prior reporting periods that are
unpaid at the reporting date. Current tax is payable on taxable profit, which differs from profit or loss in the
financial statements. Calculation of current tax is based on tax rates and tax laws that have been enacted or
substantively enacted by the end of the reporting period.
Deferred income taxes are calculated using the liability method on temporary differences between the
carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the
initial recognition of goodwill or on the initial recognition of an asset or liability unless the related transaction
is a business combination or affects tax or accounting profit. Deferred tax on temporary differences associated
with investments in subsidiaries and joint ventures is not provided if reversal of these temporary differences
can be controlled by the Company and it is probable that reversal will not occur in the foreseeable future.
Manuka Resources Ltd
For the year ended 30 June 2023
50
Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply
to their respective period of realisation, provided they are enacted or substantively enacted by the end of the
reporting period.
Deferred tax assets are recognised to the extent that it is probable that they will be able to be utilised against
future taxable income. Deferred tax liabilities are always provided for in full.
Deferred tax assets and liabilities are offset only when the Company has a right and intention to set off
current tax assets and liabilities from the same taxation authority.
Changes in deferred tax assets or liabilities are recognised as a component of tax income or expense in profit
or loss, except where they relate to items that are recognised in other comprehensive income (such as the
revaluation of land) or directly in equity, in which case the related deferred tax is also recognised in other
comprehensive income or equity, respectively.
3.7 Leases
At the date of commencement of the lease, the Group recognises lease liabilities measured at the present
value of lease payments to be made over the lease term. The lease payments include fixed payments (and, if
applicable, in-substance fixed payments) less any lease incentives receivable, variable lease payments that
depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease
payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group
and payments of penalties for terminating the lease, if the lease term reflects the Group exercising the option
to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses
(unless they are incurred to produce inventories) in the period in which the event or condition that triggers
the payment occurs.
In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease
commencement date because the interest rate implicit in the lease is generally not readily determinable. After
the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if
there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future
payments resulting from a change in an index or rate used to determine such lease payments) or a change in
the assessment of an option to purchase the underlying asset. The Group’s lease liabilities are included in
Interest-bearing loans and borrowings (refer Note 19.1).
Short-term leases and leases of low value assets
The Group applies the short-term lease recognition exemption to its short-term leases of machinery (i.e. those
leases that have a lease term of 12 months of less from the commencement date and do not contain a
purchase option). The Group recognises the lease payments associated with these leases as an expense on a
straight-line basis over the lease term.
3.8 Revenue recognition
The Group recognises revenue as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the Company is expected to be
entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the
Company: identifies the contract with a customer; identifies the performance obligations in the contract;
determines the transaction price which takes into account estimates of variable consideration and the time
Manuka Resources Ltd
For the year ended 30 June 2023
51
value of money; allocates the transaction price to the separate performance obligations on the basis of the
relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when
or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the
goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such
as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other
contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount'
method. The measurement of variable consideration is subject to a constraining principle whereby revenue
will only be recognised to the extent that it is highly probable that a significant reversal in the amount of
cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty
associated with the variable consideration is subsequently resolved. Amounts received that are subject to the
constraining principle are initially recognised as deferred revenue in the form of a separate refund liability.
Sale of goods
Revenue from the sale of goods is recognised at the point in time when the customer obtains control of the
goods, which is generally at the time of delivery. The Company has one Key Customer which is a London Bullion
Market Association (LBMA) Accredited Refinery. Sales revenue is recognised at the time of the Lock-in
Contract. This is when goods are delivered and title and risk passes to the customer.
3.9 Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the
grant will be received, and the Group will comply with all attached conditions. Government grants are
recorded in other income.
3.10 Operating expenses
Operating expenses are recognised in profit or loss upon utilisation of the service.
3.11 Exploration and evaluation expenditure
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest.
These costs are only carried forward to the extent that they are expected to be recouped through the
successful development of the area, or by its sale where activities in the area have not yet reached a stage
that permits reasonable assessment of the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned areas are written off in full against profit or loss in the year in
which the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are transferred to mine
properties and amortised over the life of the area according to the rate of depletion of the economically
recoverable reserves.
Costs of site restoration are provided over the life of the facility from when exploration commences and are
included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant,
equipment and building structures, waste removal, and rehabilitation of the site in accordance with clauses of
the mining permits. Such costs have been determined using estimates of future costs, current legal
requirements and technology on a discounted basis.
Manuka Resources Ltd
For the year ended 30 June 2023
52
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of
site restoration, there is uncertainty regarding the nature and extent of the restoration due to community
expectations and future legislation. Accordingly, the costs have been determined on the basis that the
restoration will be completed within one year of abandoning the site. A regular review for impairment is
undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in
relation to that area of interest. Exploration expenditure which fails to meet at least one of the conditions
outlined above is written off.
3.12 Property, plant and equipment
Property, plant, equipment, is stated at cost less accumulated depreciation and any impairment in value.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Company and
the cost of the item can be measured reliably.
All other repairs and maintenance are charged to the income statement during the financial year in which they
are incurred.
Depreciation commences on assets when it is deemed they are capable of operating in the manner intended.
Useful lives are examined on an annual basis and adjustments, where applicable, are made on a revised useful
life basis.
Asset
Freehold land – at cost
Computer Equipment:-
- Laptops and mobile devices
- Other Computer equipment
Plant and Equipment
Ball Mill Motor
Other Pumps and Motors
Generators
Other
Processing Plant
Depreciation rate
not depreciated
2 years effective life (50%) – diminishing value
4 years effective life (25%) - diminishing value
25 years effective life (4%) - diminishing value
20 years effective life (5%) - diminishing value
10 years effective life (10%) - diminishing value
2-5 years effective life (20% to 50%) - diminishing
value
units of production
The carrying values of plant and equipment are reviewed for impairment when events or changes in
circumstances indicate the carrying value may not be recoverable.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits
are expected to arise from the continued use of the asset. The gain or loss arising on the disposal or retirement
of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset
and is recognised in profit or loss.
3.13 Financial instruments
Recognition and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual
provisions of the financial instrument and are measured initially at fair value adjusted by transactions costs,
Manuka Resources Ltd
For the year ended 30 June 2023
53
except for those carried at fair value through profit or loss, which are measured initially at fair value.
Subsequent measurement of financial assets and financial liabilities are described below.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire,
or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is
derecognised when it is extinguished, discharged, cancelled, or expires.
Except for those trade receivables that do not contain a significant financing component and are measured at
the transaction price in accordance with AASB 15, all financial assets are initially measured at fair value
adjusted for transaction costs (where applicable).
Subsequent measurement of financial assets
For the purpose of subsequent measurement, financial assets, other than those designated and effective as
hedging instruments, are classified into the following categories upon initial recognition:
•
•
•
•
financial assets at amortised cost
financial assets at fair value through profit or loss (FVPL)
debt instruments at fair value through other comprehensive income (FVOCI)
equity instruments at fair value through other comprehensive income (FVOCI)
Classifications are determined by both:
•
•
The entity’s business model for managing the financial asset
The contractual cash flow characteristics of the financial assets
All income and expenses relating to financial assets that are recognised in profit or loss are presented within
finance costs, finance income or other financial items, except for impairment of trade receivables which is
presented within other expenses.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not
designated as FVPL):
•
•
they are held within a business model whose objective is to hold the financial assets and collect its
contractual cash flows; and
the contractual terms of the financial assets give rise to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method. Discounting
is omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and
most other receivables fall into this category of financial instruments.
Financial assets at fair value through profit or loss (FVPL)
Financial assets that are held within a business model other than ‘hold to collect’ or ‘hold to collect and sell’
are categorised at fair value through profit and loss. Further, irrespective of business model, financial assets
whose contractual cash flows are not solely payments of principal and interest are accounted for at FVPL. All
derivative financial instruments fall into this category, except for those designated and effective as hedging
instruments, for which the hedge accounting requirements apply.
Manuka Resources Ltd
For the year ended 30 June 2023
54
Impairment of financial assets
The AASB 9 impairment model uses forward looking information to recognise expected credit losses - the
‘expected credit losses (ECL) model’. The application of this impairment model depends on whether there has
been a significant increase in credit risk.
The Group considers a broader range of information when assessing credit risk and measuring expected credit
losses, including past events, current conditions, reasonable and supportable forecasts that affect the
expected collectability of the future cash flows of the instrument.
In applying this forward-looking approach, a distinction is made between:
•
•
financial instruments that have not deteriorated significantly in credit quality since initial recognition or
that have low credit risk (‘Stage 1’); and
financial instruments that have deteriorated significantly in credit quality since initial recognition and
whose credit risk is not low (‘Stage 2’).
‘Stage 3’ would cover financial assets that have objective evidence of impairment at the reporting date. ‘12-
month expected credit losses’ are recognised for the first category while ‘lifetime expected credit losses’ are
recognised for the second category. Measurement of the expected credit losses is determined by a probability-
weighted estimate of credit losses over the expected life of the financial instrument.
Trade and other receivables and contract assets
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary
course of business. They are generally due for settlement within 30 days and therefore are all classified as
current. Trade receivables are recognised initially at the amount of consideration that is unconditional unless
they contain significant financing components, when they are recognised at fair value. The Group holds the
trade receivables with the objective to collect the contractual cash flows and therefore measures them
subsequently at amortised cost using the effective interest method.
The Group applies the AASB 9 simplified approach to measuring expected credit losses which uses a lifetime
expected loss allowance for all trade receivables. In determining the recoverability of a trade or other
receivables using the expected credit loss model, the Group performs a risk analysis considering the type and
age of the outstanding receivables, the creditworthiness of the counterparty, contract provisions, letter of
credit and timing of payment.
No provision for credit losses was required to be recognised in the current period ending 30 June 2023.
Classification and measurement of financial liabilities
The Group’s financial liabilities include trade and other payables, borrowings, lease liabilities and derivative
financial instruments.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs
unless the Group designated a financial liability at fair value through profit or loss. Subsequently, financial
liabilities are measured at amortised cost using the effective interest method except for derivatives and
financial liabilities designated at FVPL, which are carried subsequently at fair value with gains or losses
recognised in profit or loss (other than derivative financial instruments that are designated and effective as
hedging instruments).
Manuka Resources Ltd
For the year ended 30 June 2023
55
Foreign exchange gains and losses
For financial liabilities that are denominated in a foreign currency and are measured at amortised cost at the
end of each reporting period, the foreign exchange gains and losses are determined based on the amortised
cost of the instruments. Except for those foreign exchange gains and losses related to borrowings, foreign
exchange gains and losses are recognised in the ‘Other income’ or ‘Other losses’ line items in profit or loss for
financial liabilities that are not part of a designated hedging relationship. Foreign exchange gains and losses
related to borrowings are recognised in the ‘Finance Charges’ line item in profit or loss
The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency
and translated at the spot rate at the end of the reporting period. For financial liabilities that are measured as
at FVTPL, the foreign exchange component forms part of the fair value gains or losses and is recognised in
profit or loss for financial liabilities that are not part of a designated hedging relationship.
3.14 Inventories
Inventories are measured at the lower of their costs and net realisable value. An impairment provision is
recognised when there is objective evidence that the Company will not be able to realise the carrying amount
through use or sale.
All inventories are stated at the lower of cost and net realisable value. For ore concentrate in circuit and ore
stockpiles, cost comprises direct materials, direct labour and an appropriate proportion of variable and fixed
overhead expenditure, the latter being allocated on the basis of normal operating capacity. For consumables,
supplies and spares, costs are assigned to individual items of inventory on the basis of monthly weighted
average costs. Costs of purchased inventory are determined after deducting rebates and discounts. Net
realisable value is the estimated selling price in the ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make the sale inventories are valued at the lower of cost and
net realisable value.
3.15 Care and Maintenance
When a mine moves into the care and maintenance stage, the costs of maintaining the mine are expensed in
the period as incurred unless there are future economic benefits for other operating mines.
3.16 Mine development
Mine development expenditure relates to costs incurred to access a mineral resource. It represents those
exploration and evaluation costs incurred after the technical feasibility and commercial viability of extracting
the mineral resource has been demonstrated and an identified mineral reserve is being prepared for
production (but is not yet in production).
Significant factors considered in determining the technical feasibility and commercial viability of the project
are the completion of a feasibility study, the existence of sufficient proven and probable reserves to proceed
with development and approval by the Board of directors to proceed with development of the project. Mine
development costs include direct and indirect costs associated with mine infrastructure, pre-production
development costs, development excavation, project execution costs and other subsurface expenditure
pertaining to that area of interest. Costs related to tangible surface plant and equipment and any associated
land and buildings are accounted for as property, plant and equipment.
Development costs are carried forward in respect of areas of interest in the development phase until
commercial production commences. When commercial production commences, carried forward development
costs are transferred to Mine Properties and amortised on a units of production basis over the life of
economically recoverable reserves of the area of interest. Development assets are assessed for impairment if
Manuka Resources Ltd
For the year ended 30 June 2023
56
an impairment trigger is identified. For the purposes of impairment testing, development assets are allocated
to CGUs to which the development activity relates.
3.17 Cash and cash equivalents
For the purposes of the statement of cash flows, cash and cash equivalents includes cash on hand and at bank,
deposits held at call with financial institutions, other short term, highly liquid investments with 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 and bank overdrafts.
3.18 Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the
redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest
method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the
extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred
until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility
will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period
of the facility to which it relates.
Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid, including any non-cash assets
transferred or liabilities assumed, is recognised in profit or loss as other income or finance costs.
Where the terms of a financial liability are renegotiated and the entity issues equity instruments to a creditor
to extinguish all or part of the liability (debt for equity swap), a gain or loss is recognised in profit or loss, which
is measured as the difference between the carrying amount of the financial liability and the fair value of the
equity instruments issued.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement
of the liability for at least 12 months after the reporting period.
3.19 Borrowing costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying asset are capitalised during the period of time that is required to complete and
prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial
period of time to get ready for their intended use or sale.
Other borrowing costs are expensed in the period in which they are incurred.
3.20 Derivatives
Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they are
subsequently remeasured to their fair value at the end of each reporting period. Changes in the fair value of
derivatives are recognised immediately in profit or loss and are included in other gains/(losses) except where
hedge accounting applies.
Manuka Resources Ltd
For the year ended 30 June 2023
57
Derivative financial instruments and hedge accounting
Derivative financial instruments are accounted for at FVTPL except for derivatives designated as hedging
instruments in cash flow hedge relationships, which require a specific accounting treatment. To qualify for
hedge accounting, the hedging relationship must meet all of the following requirements:
•
•
•
there is an economic relationship between the hedged item and the hedging instrument
the effect of credit risk does not dominate the value changes that result from that economic
relationship, and
the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged
item that the entity actually hedges and the quantity of the hedging instrument that the entity actually
uses to hedge that quantity of hedged item.
For the reporting periods under review, the Group has designated certain gold swap and spot contracts as
hedging instruments in cash flow hedge relationships. Where appropriate, these arrangements have been
entered into to mitigate short-term commodity price impacts arising from certain highly probable sales
transactions and to give certainty to exchange rate and commodity price impacts on the realised sales prices
of the Commodities produced by the Group.
All derivative financial instruments used for hedge accounting are recognised initially at fair value and reported
subsequently at fair value in the consolidated statement of financial position.
To the extent that the hedge is effective, changes in the fair value of derivatives designated as hedging
instruments in cash flow hedges are recognised in other comprehensive income and included within the cash
flow hedge reserve in equity. Any ineffectiveness in the hedge relationship is recognised immediately in profit
or loss.
At the time the hedged item affects profit or loss, any gain or loss previously recognised in other
comprehensive income is reclassified from equity to profit or loss and presented as a reclassification
adjustment within other comprehensive income. However, if a non-financial asset or liability is recognised as
a result of the hedged transaction, the gains and losses previously recognised in other comprehensive income
are included in the initial measurement of the hedged item.
If a forecast transaction is no longer expected to occur, any related gain or loss recognised in other
comprehensive income is transferred immediately to profit or loss. If the hedging relationship ceases to meet
the effectiveness conditions, hedge accounting is discontinued and the related gain or loss is held in the equity
reserve until the forecast transaction occurs.
3.21 Employee benefits
Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits, and annual leave expected to be settled
within 12 months of the reporting date are recognised in other payables in respect of employees’ services up
to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.
Other long-term employee benefit obligations
The Group also has liabilities for long service leave that are not expected to be settled wholly within 12 months
after the end of the period in which the employees render the related service. These obligations are therefore
measured as the present value of expected future payments to be made in respect of services provided by
employees up to the end of the reporting period using the projected unit credit method. Consideration is given
to expected future wage and salary levels, experience of employee departures and periods of service.
Manuka Resources Ltd
For the year ended 30 June 2023
58
Expected future payments are discounted using market yields at the end of the reporting period of high-quality
corporate bonds with terms that match, as closely as possible, the estimated future cash outflows.
Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised
in profit or loss.
The obligations are presented as current liabilities in the balance sheet if the Group does not have an
unconditional right to defer settlement for at least twelve months after the reporting period, regardless of
when the actual settlement is expected to occur.
Share based payments to employees and directors
Options over ordinary shares have been granted to employees, Directors and finance providers from time to
time, on a discretionary basis. The cost of these share-based payments is measured by reference to the fair
value at the date at which they are granted using an option pricing model. The options may be subject to
service or other vesting conditions and their fair value is recognised as an expense together with a
corresponding increase in other reserve equity over the vesting period.
3.22 Equity, reserves and dividend payments
Share capital represents the fair value of shares that have been issued. Any transaction costs associated with
the issuing of shares are deducted from share capital, net of any related income tax benefits.
Other components of equity include the following:
•
Share based payment reserve – comprising assessed fair value of options issued to employees,
executives, Directors and other parties
Reserve for cash flow hedges – comprising gains and losses relating to these types of financial
instruments
•
Retained earnings include all current and prior period retained profits.
Dividend distributions payable to equity shareholders are included in other liabilities if the dividends have
been being appropriately authorised and are no longer at the discretion of the entity prior to the reporting
date.
All transactions with owners of the parent are recorded separately within equity.
Share based payments to other parties
Options have been issued to financiers and other parties as payment for goods and services from time to time.
The cost of these share-based payments is measured by reference to the fair value at the date at which they
are granted using an option pricing model. The options may be subject to service or other vesting conditions
and their fair value is recognised as an expense together with a corresponding increase in other reserve equity
over the vesting period.
3.23 Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to owners of the Company, excluding
any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares
outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.
Manuka Resources Ltd
For the year ended 30 June 2023
59
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account the after income tax effect of interest and other financing costs associated with dilutive potential
ordinary shares and the weighted average number of shares assumed to have been issued for no consideration
in relation to dilutive potential ordinary shares.
3.24 Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the taxation authority. In these circumstances the GST is recognised as part
of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the
statement of financial position are shown inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables
or payables.
Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising
from investing and financing activities which is recoverable from, or payable to, the taxation authority is
classified within operating cash flows.
3.25 Rehabilitation
Provisions made for rehabilitation are recognised where there is a present obligation as a result of exploration,
development or production activities having been undertaken, and it is probable that an outflow of economic
benefits will be required to settle the obligation. The estimated future obligations include the costs of
removing facilities, abandoning mining activities and restoring the affected areas. The provision for future
rehabilitation costs is the best estimate of the present value of the expenditure required to settle the
obligation at the reporting date, based on current legal requirements and technology. Future rehabilitation
costs are reviewed annually, and any changes are reflected in the present value of the rehabilitation provision
at the end of the reporting period. The amount of the provision for future rehabilitation costs relating to
exploration and development activities is capitalised as a cost of those activities. If the effect is material,
provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money, and where appropriate the risks specific to the liability.
3.26 Significant management judgement in applying accounting policies and estimation
uncertainty
When preparing the financial statements, management undertakes a number of judgements, estimates and
assumptions about the recognition and measurement of assets, liabilities, income and expenses.
Determination of cash generating unit (CGU) and assessment of impairment
The Group assesses each Cash-Generating Unit (CGU), at each reporting period to determine whether there is
any indication of impairment or reversal. Indicators reviewed include, but are not limited to, operating
performance of the CGU, future business plans, assumptions around future commodity prices, exchange rates,
production rates and production costs. Where an indicator of impairment or reversal exists, a formal estimate
of the recoverable amount is made. Where the carrying amount of an asset of CGU exceeds its recoverable
amount, the carrying amount is reduced to the recoverable amount and the impairment would be recognised
in the Statement of Profit or Loss. The recoverable amount is the higher of the fair value less costs to sell and
the value in use.
Manuka Resources Ltd
For the year ended 30 June 2023
60
The Group considers that there are two CGUs. One being the assets located in Cobar (including Wonawinta
and Mt Boppy Projects and the processing plant) and the other being the Exploration and Evaluation assets
located in New Zealand. The factors considered in reaching this determination are:
•
Cash inflows result only from the sale of the final doré produced by the Wonawinta processing plant
after inputs are processed from the either the Mt Boppy mine or the Wonawinta Silver Project.
There is no active market for the unprocessed ores at the Mt Boppy mine or the Wonawinta Silver
Project and cash flows are dependent on processing at the Wonawinta plant.
Exploration and Evaluation assets in New Zealand meet the definition of a CGU under the applicable
standards.
•
•
Rehabilitation provision
The Company is required by the relevant regulatory authorities to ensure that appropriate rehabilitation is
carried out on tenements that are mined. The amount of the rehabilitation cost is an estimate based upon the
estimated life of each mined tenement, as well as the future timing and cost of such rehabilitation. The
provision is constantly revised as information about the life of mine, depth of mining, level of ground
disturbance and cost estimates are updated.
Share based payment reserve
Management uses valuation techniques to determine the fair value of the reserve created when options are
issued to employees, executives and other parties. This involves developing estimates and assumptions
determined by reference to historical data of either the Company or of comparable entities over a period of
time where applicable (e.g. historical volatility data of comparable entities has been considered where there
was insufficient historical volatility information for the Company). Management bases its assumptions on
observable data as far as possible, but this is not always available. In that case management uses the best
information available. Management consider that the fair value of the options issued to other parties reflects
the fair value of services.
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised and are only carried forward to the extent that they
are expected to be recouped through the successful development of the area or where activities in the area
have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable
reserves. Key judgements are applied in assessing indicators of impairment and considering the costs to be
capitalised which includes determining expenditures directly related to these activities and allocating
overheads between those that are expensed and capitalised.
Net realisable value of inventories
The calculation of net realisable value for raw materials, work in progress and finished goods involves
significant judgement and estimates in relation to timing and cost of processing, commodity prices, recoveries.
A change in any of these assumptions will alter the estimated net realisable value and may therefore impact
the carrying value of inventories.
Determination of mineral resources and ore reserves
The Group reports its Mineral Resources and Ore Reserves in accordance with the Joint Ore Reserves
Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves (JORC Code). The information on Mineral Resources and Ore Reserves is prepared by Competent
Persons as defined by the JORC Code.
Manuka Resources Ltd
For the year ended 30 June 2023
61
There are numerous uncertainties inherent in estimating the quantities of economically recoverable Mineral
Resources and Ore Reserves. Assumptions that are valid at the time of estimation may change significantly
when new information becomes available.
Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change
the economic status of reserves and may, ultimately, result in the reserves being restated. Such changes may
impact asset carrying values, depreciation and amortisation rates, deferred development costs and provisions
for rehabilitation.
Segment reporting
4
Identification of reportable segments
The Group has identified operating segments based on the internal reports that are reviewed and used by the
board of directors (chief operating decision makers) in assessing performance and determining the allocation
of resources. Currently all the Group’s gold and silver tenements and resources are in New South Wales.
Three operating segments have been identified:
• Exploration - Australia: Exploration of existing gold and silver leases and exploration leases at
Wonawinta and Mt Boppy projects
• Exploration – NZ: Exploration of acquired mining and exploration leases at the Taranaki VTM Project
(New Zealand)
• Operations: being the appraisal, development and processing of gold and silver deposits
The following table presents revenue and loss information regarding operating segments for the years ended
30 June 2023 and 30 June 2022.
Year ended 30 June 2023
Exploration
NZ
Exploration
Australia
Operations
Total
$
Segment revenue (external customers)
Segment cost of sales
Segment operating contribution
Other income
Expenses
Share based payments
Foreign exchange gains / losses
Finance income / (expenses)
Profit / (loss) before income tax
-
-
-
-
-
-
-
-
9,899,903
9,899,903
(24,324,548)
(24,324,548)
(14,424,645)
(14,424,645)
481,720
481,720
(109,963)
(241,834)
(7,740,688)
(8,092,485)
-
-
(17,062)
(124,901)
-
-
-
-
-
(544,183)
(544,183)
(3,745,364)
(3,762,426)
(241,834)
(25,975,285)
(26,342,019)
Year ended 30 June 2022
Exploration
NZ
Exploration
Australia
Operations
Total
$
Segment revenue (external customers)
Segment cost of sales
Segment operating contribution
Other income
Expenses
Share based payments
Foreign exchange gains / losses
Finance income / (expenses)
Profit / (loss) before income tax
-
-
-
-
-
-
-
-
-
-
-
-
-
53,271,499
53,271,499
(41,244,405)
(41,244,405)
12,027,094
12,027,094
304,621
304,621
(27,724)
(2,512,355)
(2,540,079)
-
-
-
(27,724)
(69,718)
(1,025,343)
(3,415,155)
5,309,144
(69,718)
(1,025,343)
(3,415,155)
5,281,420
Manuka Resources Ltd
For the year ended 30 June 2023
62
The following table presents segment assets and liabilities of operating segments at 30 June 2023 and 30
June 2022.
Segment Assets
Exploration
NZ
Exploration
Australia
Operations
Total
$
As at 30 June 2023
26,277,212
8,923,441
26,305,002
61,505,655
As at 30 June 2022
-
8,457,839
33,138,678
41,596,517
Segment Liabilities
As at 30 June 2023
As at 30 June 2022
Exploration
NZ
Exploration
Australia
Operations
Total
$
-
-
67,442
41,496,239
41,563,681
115,800
27,906,951
28,022,751
Revenue and assets by geographical region
The Company's revenue is derived from sources and assets located wholly within Australia.
Major customers
The Company currently delivers all its product to one off-taker.
5
Revenue and other income
(a) Operating sales revenue
Sale of mineralised ore – gold
Sale of mineralised ore – silver
Total revenue from contracts with customers
(b) Other income
Income from cash settled hedges
Income from Insurance claims
Other income
Total other income
6
Expenses
(a) Cost of sales
Operating expenses
Royalties
Inventory movements
Total cost of sales
Notes
3.2
30 June
2023
$
30 June
2022
$
1,913,796
7,986,107
9,899,903
49,308,178
3,963,321
53,271,499
120,648
227,936
133,136
481,720
58,272
150,000
96,349
304,621
30 June
2023
$
30 June
2022
$
60
24,479,855
37,622,448
-
(155,307)
1,388,891
2,233,066
24,324,548
41,244,405
Manuka Resources Ltd
For the year ended 30 June 2023
63
(b) Operating expenses
Mining expenses
Hauling and crushing expenses
Processing and refining expenses
Site administration expenses
Amortisation of mine properties
Total operating expenses
(c) Other expenses
Professional expenses
Employment expenses
Depreciation
Impairment – development assets
Impairment – rehabilitation assets
Other expenses
Total other expenses
(d) Employment Expenses
Wages and Salaries
Superannuation
Employment taxes
(e) Share based payment expenses
Director options
(f) Foreign exchange (gains) and losses
Realised foreign exchange (gains)
Unrealised foreign exchange (gains) / losses
Total foreign exchange (gains) / losses
15
6(d)
15(a)
15(b)
30 June
2023
$
245,699
2,976,766
30 June
2022
$
4,299,060
8,680,972
16,072,529
18,200,370
4,611,089
573,772
5,114,513
1,327,533
24,479,855
37,622,448
30 June
2023
$
1,388,695
1,304,417
270,364
1,825,705
2,175,877
1,127,427
8,092,485
30 June
2023
$
1,149,794
101,601
53,022
30 June
2022
$
880,900
1,105,731
115,529
-
-
437,919
2,540,079
30 June
2022
$
990,066
75,625
40,040
1,304,417
1,105,731
30 June
2023
$
-
30 June
2023
$
(9,059)
553,242
544,183
30 June
2022
$
69,718
30 June
2022
$
(173,122)
1,198,465
1,025,343
Manuka Resources Ltd
For the year ended 30 June 2023
64
7
Finance costs
Finance costs are made up of the following items:
Interest expense
Amortisation of prepaid borrowing costs
Discounting and change of rehabilitation provisions
Discounting impact of financial assets
Other finance costs
Total finance costs
8
Income tax expense
(a) Income tax benefit recognised in the income statement
Current tax
Deferred tax
Income tax as reported in the statement of comprehensive income
(b) Reconciliation of income tax expense to prima facie tax payable
The prima facie income tax expense on pre-tax accounting loss from
operations reconciles to the income tax expense in the financial
statements as follows:
Profit / (loss) from ordinary activities before income tax expense
Tax at the Australian rate of 30% (2022 : 30%)
Increase / (decrease) in income tax due to:
Temporary differences
Permanent differences
Unused tax losses not recognised
Income tax expense
(c) Deferred tax assets not recognised
Deferred tax assets
- carry forward tax losses at 30% (2022: 30%) not recognised
- other deferred tax assets
Deferred tax liabilities
Net deferred tax assets not recognised
The Company has no available franking credits.
30 June
2023
$
3,002,783
517,719
(537,310)
613,292
165,942
30 June
2022
$
2,165,164
864,990
451,353
(66,352)
-
3,762,426
3,415,155
30 June
2023
30 June
2022
$
-
-
-
$
-
-
-
(26,342,019)
(7,902,606)
5,281,420
1,584,426
2,779,370
1,201,930
3,921,306
-
(2,138,201)
28,796
524,979
-
10,995,708
8,271,289
1,909,461
1,442,678
(3,679,201)
(5,991,788)
9,225,968
3,722,179
Potential deferred tax assets attributable to tax losses and other temporary differences have not been brought
to account as at 30 June 2023. Because the directors do not believe it is appropriate to regard realisation of
the deferred tax assets as probable at this point in time. These benefits will be obtained if:
•
The Company derives future assessable income of a nature and an amount sufficient to enable the
benefit from the deductions for the expenditure to be realised; and
No changes in tax legislation adversely affect the Company in realising the benefit from the deductions
for the expenditure.
•
Manuka Resources Ltd
For the year ended 30 June 2023
65
Auditor remuneration
9
During the year the following fees were paid or payable for services provided by the auditor of the parent
entity, its related practices and non-related audit firms:
Audit of financial statements
Ernst & Young – audit and review of financial reports
Remuneration from audit of financial statements
Other services
Total other services remuneration
Total auditor’s remuneration
30 June
2023
$
163,927
163,927
-
-
30 June
2022
$
149,640
149,640
3,000
3,000
163,927
152,640
10 Dividends
No dividends for the year ended 30 June 2023 (2022: Nil) have been declared or paid to shareholders by the
Company.
11 Cash and cash equivalents
Cash and cash equivalents comprise the following:
Cash at bank and in hand
Cash and cash equivalents as shown in the statement of
financial position and the statement of cash flows
Cash at bank and in hand is non-interest bearing.
12 Trade and other receivables
Current
Trade receivables
Other receivables
Total trade and other receivables
13 Prepayments
Prepayments consist of the following:
Current prepaid insurances
Other prepayments
Prepayments at cost
30 June
2023
$
30 June
2022
$
265,833
1,160,615
265,833
1,160,615
30 June
2023
$
3,300
682,360
685,660
30 June
2023
$
241,596
162,833
404,429
30 June
2022
$
50,600
379,982
430,582
30 June
2022
$
684,625
85,927
770,552
Manuka Resources Ltd
For the year ended 30 June 2023
66
14
Inventories
Consumables, supplies and spares
Ore concentrate in circuit at cost or net realisable value
(a)
Ore stockpiles
Inventories at cost
30 June
2023
$
373,264
1,706,141
227,940
2,307,345
30 June
2022
$
1,108,498
1,759,657
20,968
2,889,123
(a) Ore concentrate in circuit as at 30 June 2023 is measured at cost (2022: measured at net realisable value)
15 Development assets and mine properties
(a)
(a)
Development assets at cost
Impairment of development assets
Accumulated amortisation
Net carrying amount
Mine properties at cost
Rehabilitation cost estimates
Impairment of mine properties
Accumulated amortisation
Net carrying amount
Total development assets and mine properties at cost
Rehabilitation cost estimates
Impairment of mine properties
Accumulated amortisation
Total net carrying amount
30 June
2023
$
197,500
(182,767)
(14,733)
-
9,047,223
-
(1,642,938)
(6,765,542)
638,743
9,244,723
-
(1,825,705)
(6,780,275)
638,743
Restated33
30 June
2022
$
197,500
-
(14,733)
182,767
8,854,878
1,564,928
-
(6,230,744)
4,189,062
9,052,378
1,564,928
-
(6,245,476)
4,371,829
33 Certain capitalised costs relating to the Wonawinta processing plant have been reclassified from Mine Properties and Development Assets to Property, Plant and
Equipment in the comparative period to better reflect the nature of the costs capitalised and to align with current period presentation.
Manuka Resources Ltd
For the year ended 30 June 2023
67
The following tables show the movements in development assets and mine properties:
30 June
2023
$
182,767
-
-
(a)
(182,767)
Restated34
30 June
2022
$
1,005,350
(1,022,700)
214,850
-
(14,733)
182,767
5,082,278
506,217
1,022,700
-
(65,362)
-
-
(1,312,800)
(1,043,970)
4,189,063
6,087,628
506,217
-
149,488
-
-
-
-
4,189,063
-
-
192,344
649,923
(2,175,877)
(1,642,938)
(573,772)
-
638,743
4,371,830
-
192,344
649,923
(2,175,877)
(1,825,705)
Development assets
Opening carrying value
Transfer to mine properties
Adjustment to rehabilitation cost estimates
Impairment of development assets
Amortisation charge for the year
Closing carrying value net of accumulated amortisation
Mine properties
Opening carrying value
Additions at cost
Transfer from development assets
Transfer from exploration assets
Adjustment to rehabilitation cost estimates
Impairment of rehabilitation asset
Impairment of mine properties
Amortisation charge for the year
(b)
(a)
Reclassification to plant and equipment (net of accumulated amortisation)
Closing carrying value net of accumulated amortisation
Total development assets and mine properties at cost
Opening carrying value
Additions at cost
Transfer from exploration assets
Adjustment to rehabilitation cost estimates
Impairment of rehabilitation asset
Impairment of mine properties and development assets
Amortisation charge for the year
Reclassification to plant and equipment (net of
accumulated amortisation)
(b)
(a)
(573,772)
(1,327,533)
-
(1,043,970)
Total closing carrying value net of accumulated amortisation
638,743
4,371,830
During the period, the Company was focussed on the Wonawinta Silver Trial project and undertook a number
of activities in relation to mine development including the use of consultants which have been for the most
part been expensed in the profit and loss during the period. Additionally, our geology department worked
closely with plant operations to provide accurate data on ore feed material given the various lithologies sitting
on the ROM from previous periods of mining operations.
(a)
The Company undertook a strategic exploration review, which included a comprehensive review of
over 30 years of geophysical data and reports completed over the past 24 months. This has allowed
the Company to define new targets and refine the Company’s exploration and mining strategy over
34 Certain capitalised costs relating to the Wonawinta processing plant have been reclassified from Mine Properties and Development Assets to Property, Plant and
Equipment in the comparative period to better reflect the nature of the costs capitalised and to align with current period presentation.
Manuka Resources Ltd
For the year ended 30 June 2023
68
the coming 2 year period with the aim of adding significant resources of Gold, Silver, Copper and other
Base Metals. As a result of this refinement, certain historical development costs relating to areas
which are no longer a priority have been written off.
(b)
During the period the Group decided to halt the Wonawinta Silver Trial program and return to Mt
Boppy to screen and process ore stockpiles and continue exploration in line with the Company’s
strategic exploration review. Whilst the Company has positive future cashflow forecasts over the
Wonawinta Silver Project, current year challenges and negative profitability has resulted in a planned
shift back to Mt Boppy. Considering the above, the Company has written off its rehabilitation assets
in full.
16 Exploration and evaluation assets
Exploration and evaluation costs carried forward in respect of areas of interest:
30 June
2023
Exploration assets
Opening net book amount
NZ Exploration assets acquired at cost
Transfer to development assets
Exploration and evaluation costs during the year
Net book value
$
8,457,839
26,277,212
(192,344)
657,946
35,200,653
30 June
2022
$
4,780,492
-
-
3,677,347
8,457,839
During the period, the Company acquired the assets and liabilities of Trans-Tasman Resources Ltd (Refer Note
22), including the mining and exploration licences and exploration assets in relation to their Taranaki VTM
Project in New Zealand. In addition, the Company undertook the following activities as part of the follow-up-
phase exploration on the Company’s regional exploration tenements:
(a) Completed comprehensive review of the entire tenement package to enable prioritisation of target areas;
(b) scoping of future field programmes with the goal of adding additional mineralisation to existing resources
An updated Mt Boppy Mineral Resources Estimate was released to the market on 25 August 202335.
17 Property, plant and equipment
The following tables show the movements in property, plant and equipment:
Land
IT Equipment
Plant &
Equipment
Fixtures &
Fittings
$
$
$
$
Motor
Vehicles
$
Total
$
Restated Year ended 30 June 202236
Opening net book value
754,994
Additions
Disposals
Depreciation
-
-
-
25,673
10,995,011
20,265
5,491,095
-
(247,600)
(26,947)
(1,240,545)
Closing net book value
754,994
18,991
14,997,961
20,901
27,353
-
(9,301)
38,952
416,437
12,213,016
242,109
5,780,822
-
(247,600)
(66,335)
(1,343,128)
592,211
16,403,110
35 ASX announcement 25 August 2023
36 Certain capitalised costs relating to the Wonawinta processing plant have been reclassified from Mine Properties and Development Assets to Property, Plant and
Equipment in the comparative period to better reflect the nature of the costs capitalised and to align with current period presentation.
Manuka Resources Ltd
For the year ended 30 June 2023
69
Restated Balance 30 June 2022
Cost
Depreciation
Net book value
Year ended 30 June 2023
754,994
100,186
17,254,961
53,939
805,939
18,970,020
-
(81,195)
(2,257,000)
(14,987)
(213,728)
(2,566,910)
754,994
18,991
14,997,961
38,952
592,211
16,403,110
Opening net book value
754,994
18,991
14,997,962
Additions
Disposals
Depreciation
-
-
-
12,655
568,471
(17,734)
(1,018,619)
Closing net book value
754,994
16,912
14,323,522
38,952
26,656
592,211
16,403,110
-
607,782
(11,984)
53,624
(63,507)
(1,108,844)
496,885
15,645,937
-
(224,292)
-
(31,819)
(256,111)
Balance 30 June 2023
Cost
Depreciation
Net book value
754,994
112,841
17,599,141
80,595
774,120
19,321,691
-
(95,929)
(3,275,619)
(26,971)
(277,235)
(3,675,754)
754,994
16,912
14,323,522
53,624
496,885
15,645,937
Included within Plant and Equipment is an amount of $160,208 (2022 : $401,449) representing costs incurred
on equipment which was not brought to use as at 30 June 2023 and as such represents capital works in
progress.
18 Right-of-use assets and liabilities
Leases
The Group has one lease contract, being for its office premises which commenced on 1 March 2022. The office
lease has a lease term of three years with no option to extend and with a rent increase of 3.75% each year.
Short term lease expenses
The Group applies the short-term lease recognition exemption allowed in AASB116 to its short-term leases
(i.e. those leases that have a lease term of 12 months of less from the commencement date and do not contain
a purchase option). The following table shows the short-term lease expenses during the period to which this
exemption has been applied.
Rent expenses
Total short-term lease expenses
30 June
2023
$
1,500
1,500
30 June
2022
$
11,520
11,520
Set out below are the carrying amounts of right-of-use assets recognised and the movements during the
period.
Balance at start of period
Additions
Depreciation
Closing net book value
30 June
2023
$
374,641
-
(140,654)
233,987
30 June
2022
$
68,083
420,714
(114,156)
374,641
Manuka Resources Ltd
For the year ended 30 June 2023
Set out below are the carrying amounts of lease liabilities.
Balance at start of period
Additions
Accretion of interest (included in finance expenses)
Payments
Closing balance lease liabilities
Current
Non-current
30 June
2023
$
383,941
-
40,819
(165,720)
259,040
147,233
111,807
Financial assets and liabilities
19
19.1 Categories of financial assets and financial liabilities
The carrying amounts of financial assets in each category are as follows:
Financial assets at amortised cost
Cash and cash equivalents
Trade and other receivables
Other financial assets
Total financial assets at amortised cost
Notes
11
12
19.3
30 June
2023
$
265,833
685,660
6,123,068
7,074,561
70
30 June
2022
$
76,113
420,714
20,193
(133,079)
383,941
124,901
259,040
30 June
2022
$
1,160,615
430,582
6,738,225
8,329,422
The carrying amounts of financial liabilities in each category are as follows:
Financial liabilities at amortised cost
Trade and other payables
Borrowings – Related party loans
30 June
2023
$
30 June
2022
$
7,138,891
1,216,715
6,242,625
909,959
Notes
20
19.2(a)
Borrowings – Senior secured debt facility (net of borrowing costs) 19.2(b)
14,383,355
12,128,978
Working capital facility
Borrowings – Other loans
Lease liabilities
Total financial liabilities at amortised cost
Total financial liabilities
19.2(c)
19.2(d)
18
7,841,636
1,338,042
259,040
32,177,679
32,177,679
-
72,241
383,941
19,737,744
19,737,744
Manuka Resources Ltd
For the year ended 30 June 2023
71
19.2 Borrowings
Borrowings include the following financial liabilities:
Current
Related party loans
Senior secured debt facility (net of borrowing costs)
Working capital facility
Other loans
Total current borrowings
Non-current
Other loans
Total non-current borrowings
Total borrowings
•
19.2(a)
19.2(b)
19.2(c)
19.2(d)
19.2(d)
30 June
2023
$
30 June
2022
$
1,216,715
14,383,355
7,841,636
1,082,870
909,959
12,128,978
-
14,314
24,524,576
13,053,251
255,172
255,172
57,927
57,927
•
24,779,748
13,111,178
All borrowings are denominated in Australian Dollars except for the Senior Secured Debt Facility which is
denominated in US Dollars.
(a) The related party loans include the following:
ResCap Investments Pty Ltd
30 June
2023
$
30 June
2022
$
1,216,715
909,959
The loan provided by ResCap Investments Pty Ltd includes the opening balance loan plus working capital
drawn down during the period. The loan has an interest rate of 16% and is repayable on 30 September
2024. The principle outstanding at 30 June 2023 was $1,020,175 with $196,540 owing in accrued interest.
(b) The Company signed a debt facility agreement (Senior Secured Debt Facility) with TransAsia Private Capital
Limited (TPC) during July 2019, with the first drawdown occurring in July 2019. As at 30 June 2023, the
balance owing under the facility was US$8Million plus interest (AU$14,626,763). The interest rate
attributable to this facility is 12.5% per annum payable quarterly, with service and management fees of
2.5% per annum. Subsequent to the end of the period, the Company successfully negotiated to extend the
term of the secured debt facility to 30 September 2024. The extension has been granted on existing terms
and rates with no extension penalties or cash fees. The Company has resolved at a Board meeting held 19
September 2023 to grant the issue of 25Million options in four tranches with an exercise price based on
the 5-day VWAP plus a 10% premium.
Details of the unamortised borrowing costs in relation to the Senior Secured Debt Facility is as follows:
Senior secured debt facility
Less: Borrowing Costs
Total senior secured debt facility (net of borrowing costs)
30 June
2023
$
30 June
2022
$
14,626,763
12,332,456
(243,408)
(203,479)
14,383,355
12,128,977
Manuka Resources Ltd
For the year ended 30 June 2023
72
(c) The Company signed a USD denominated working capital facility agreement (Working Capital Facility) with
a commodity trading company with a minimum term of three years. Drawdowns under the facility and
repayable within 180 days. The interest rate attributable to this facility is set at the 3 Month Secured
Overnight Financing Rate (SOFR) plus 4% per annum. A facility fee of 4.8% per quarter is payable on
drawdowns under the facility.
(d) During the period the Company entered into a number of small short-term asset-based funding
agreements. The details of outstanding loans at 30 June 2023 are as follows:
Short-term loan
Asset backed finance
Vehicle Finance
Equipment Finance
Total other loans
19.3 Other financial assets
30 June
2023
Av. Interest
Rate
$
% p.a.
Expiry date
532,500
487,500
57,926
260,116
1,338,042
Repayable on refinance of
senior secured debt
October 2023
March 2025
December 2027
23%
12%
6%
11%
Notes
30 June
2023
$
30 June
2022
$
Other financial assets comprises the following:
Current assets at amortised cost
Mt Boppy Resources - Deposit for exploration bond
186,000
186,000
Non-current assets at amortised cost
Manuka Resources - Deposit for environmental bond
Mt Boppy Resources – Deposit for environmental bond
Term Deposit
(a)
(b)
(a)
4,639,792
1,132,598
164,678
6,123,068
5,021,967
1,352,016
178,242
6,738,225
The carrying amount of other financial assets is considered a reasonable approximation of fair value unless
stated below:
(a) The Environmental Bond and the Term Deposit in the name of Manuka Resources Ltd have been
amortised with reference to a discount rate of 3.96% (2022: 3.12%). They have been discounted over a 5
year period (2022: 3.75 years) which is a reasonable approximation as to when the rehabilitation work
will have to be conducted.
(b) The Environmental Bond Deposits in the name of Mt Boppy Resources Pty Ltd have been amortised with
reference to a discount rate of 3.96% (2022: Nil). They have been discounted over a 5 year period (2022:
1 year) which is a reasonable approximation as to when the rehabilitation work will have to be conducted.
Manuka Resources Ltd
For the year ended 30 June 2023
73
19.4 Other financial instruments
The carrying amount of the following financial assets and liabilities is considered a reasonable approximation
of fair value due to the short-term nature of the financial instruments:
• Trade and other receivables
• Cash and cash equivalents
• Trade and other payables
• Other current financial assets
19.5 Fair Value Hierarchy
The Group had no financial assets and liabilities carried at fair value in the statement of financial position or
measured at fair value through profit or loss during the period.
20 Trade and other payables
Current
Trade creditors
Other creditors and accruals
Total trade and other payables
30 June
2023
$
30 June
2022
$
5,845,969
1,292,923
7,138,892
4,520,381
1,722,244
6,242,625
Trade and other payables amounts are short-term. The carrying values of trade payables and other payables
are considered to be a reasonable approximation of fair value.
21 Provisions
Current
Provision for annual leave
Total current provisions
Non-current
Provision for long service leave
Rehabilitation provisions
Total non-current provisions
Total provisions
Notes
22.1
30 June
2023
$
643,823
643,823
30 June
2022
$
628,315
628,315
97,400
7,676,132
7,773,532
8,417,355
29,107
7,565,403
7,594,510
8,222,825
21.1 Rehabilitation provisions
Rehabilitation provisions split between the parent and subsidiary are as follows:
Rehabilitation provisions
Manuka Resources Ltd (Wonawinta project)
Mt Boppy Resources Ltd
Total rehabilitation provisions
30 June
2023
$
6,634,705
1,041,427
7,676,132
30 June
2022
$
6,422,934
1,142,469
7,565,403
Manuka Resources Ltd
For the year ended 30 June 2023
74
Set out below are the movements of the rehabilitation provision during the period.
Carrying amount at start of year
Re-assessment of provision
Payments
Net impact of inflation and discounting
Carrying amount at end of year
30 June
2023
$
7,565,403
913,907
-
(803,178)
7,676,132
30 June
2022
$
7,440,642
20,865
-
103,896
7,565,403
Provisions made for rehabilitation are recognised where there is a present obligation as a result of exploration,
development or production activities having been undertaken, and it is probable that an outflow of economic
benefits will be required to settle the obligation. The estimated future obligations include the costs of
removing facilities, abandoning mining activities and restoring the affected areas. The provision for future
rehabilitation costs is the best estimate of the present value of the expenditure required to settle the
obligation at the reporting date, based on current legal requirements and technology. Future rehabilitation
costs are reviewed annually, and any changes are reflected in the present value of the rehabilitation provision
at the end of the reporting period. The amount of the provision for future rehabilitation costs relating to
exploration and development activities is capitalised as a cost of those activities. If the effect is material,
provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money, and where appropriate the risks specific to the liability. The
fair value of the rehabilitation provision for Manuka Resources has been calculated with reference to an
inflation rate of 3.0% (2022: 5.09%) and a discount rate of 3.96% (2022: 3.12%) over 5 years (2022: 3.75 years).
With the recommencement of processing at Mt Boppy forecast to continue for up to five years, the
rehabilitation provision has been calculated with reference to an inflation rate of 3.0% (2022: n/a) and a
discount rate of 3.96% (2022: n/a) over 5 years (2022: 1 years).
The Company is required by the relevant regulatory authorities to ensure that appropriate rehabilitation is
carried out on tenements that are mined. The amount of rehabilitation cost is an estimate based upon the
estimated life of each mined tenement, as well as the future timing and cost of such rehabilitation. The
provision is constantly revised as information about the life of mine, depth of mining and cost estimates are
updated.
22 Asset Acquisition – Trans-Tasman Resources Ltd
The Company acquired 100% of the fully paid shares in Trans-Tasman Resources Limited on 10 November 2022
in accordance with the terms of the Heads of Agreement between the company and TTR.
The Group has assessed that the acquisition does not meet the definition of a business combination in
accordance with the accounting standards and therefore recognises the individual identifiable assets acquired
and liabilities assumed. The cost of the acquisition has been allocated to the individual identifiable assets and
liabilities on the basis of their relative fair values at the date of purchase.
The NZ Department of Petroleum and Minerals approved the transfer of the related mining and exploration
permits on 2 November 202237 and Manuka completed the acquisition through the issuance of 176,938,295
shares and 12 million options on 10 November 2022.
37 23YE MKR - Transfer of Licence Title Approval
Manuka Resources Ltd
For the year ended 30 June 2023
75
TTR’s main asset is the Taranaki VTM Project in New Zealand for which it holds a Mineral Mining Permit
MP55581 and an Exploration Mining Permit EP54068. The project is in preliminary stages of its BFS which is
largely focussed on detailed engineering and costing for the integrated mining vessel upon which mining and
processing activities are conducted.
The Taranaki VTM Project released its maiden vanadium resource38 in March 2023, which ranks it as one of
the largest drilled vanadium projects globally. The Project has a granted mining licence and is in the lowest
quartile of the iron ore production cost curve. The Company is awaiting Environmental Approval before
completing its Bankable Feasibility Study.
Details of the purchase consideration and the net assets acquired are as follows:
Purchase Consideration
Shares issued 10 November 2022
Options issued 24 November 2022
Transaction Costs
Total
# Shares/options
AUD $’000
176,938,295
12,000,000
25,656
122
225
26,003
The cost of acquisition has been allocated to the acquired assets and liabilities as follows:
Cash and cash equivalents
Prepayments
Exploration and evaluation assets
Trade and other creditors
AUD $’000
2
9
26,208
(216)
In 2017 the NZ Environmental Protection Authority (EPA) granted the environmental marine and marine
discharge consents (Consents) to operate. The grant of these Consents was then subject to third party legal
challenge. Judgments in the High Court in 2018, the Court of Appeal in 2020 and particularly the Supreme
Court (SC) in 202139 summarised the legal deficiencies of the EPA’s Decision Making Committee’s (DMC)
Consents grant and the legal framework for the DMC to address when the grants are reconsidered.
The SC referred the Consents back to the EPA for reconsideration by its DMC on five narrowly defined points
of law. The new DMC reconvened in March 202340 and requested TTR provide expert evidence to satisfy the
SC’s ruling on information deficits.
In May and August 2023 TTR provided the expert evidence requested by the DMC to satisfy the SC’s
requirements and legal tests to reissue the Consents. These expert reports concluded the proposed VTM
mineral recovery in STB will avoid material harm, will favour caution and environmental protection in relation
to the effects of the proposed mining operations and resulting sedimentation on biota in the STB including no
adverse ecological effects on marine mammals and seabirds. Accordingly, there are no aspects of TTR’s 2017
environmental Consents that are an impediment to having them re-approved by the reconvened DMC41.
38 ASX release 1 March 2023
39 Judgement delivered 30 September 2021
40 Refer EPA Public consultation disclosures at www.epa.govt.nz/public-consultations/in-progress/trans-tasman-resources-limited-2016/
41 Refer ASX announcement 1 August 2022
Manuka Resources Ltd
For the year ended 30 June 2023
76
Acquisition costs incurred during the period were $244,133. The costs were directly attributable to the issue
of shares and have been capitalised.
23 Equity
23.1 Share capital
The share capital of Manuka Resources consists only of fully paid ordinary shares; the shares do not have a
par value. All shares are equally eligible to receive dividends and the repayment of capital and represent one
vote at the shareholders’ meeting of Manuka Resources.
Shares issued and fully paid:
• At beginning of period
• share issue 4 March 2022 (a)
• issue costs - options issued to broker
• issue costs – options issued to
shareholders
• share issue 10 Nov 2022(b)
• share issue 15 and 22 Dec 2022(c)
• share issue 3 Feb 2023 (d)
• share issue 17 April 2023 (e)
• IPO and Placement expenses
30 June
2023
# Shares
30 June
2022
# Shares
30 June
2023
$
30 June
2022
$
286,020,381
269,353,712
25,771,113
21,512,355
-
-
-
176,938,295
39,142,856
700,000
38,068,530
-
16,666,669
-
-
-
-
-
-
-
-
-
-
5,000,000
(70,831)
(341,220)
25,656,053
4,110,000
66,500
2,398,097
(963,376)
-
-
-
-
(329,191)
Total share capital at end of period
540,870,062
286,020,381
57,038,387
25,771,113
a) On 4 March 2022 the Company completed a Placement of $5,000,000 before costs through the issue of
16,666,669 ordinary shares at $0.30 per share, to sophisticated, professional and institutional investors.
b) As approved at a meeting of shareholders on 21 September 2022, the Company acquired 100% of the
fully paid shares in Trans-Tasman Resources Limited on completion of the acquisition on 10 November
2022. (Refer to Note 22)
c) On 12 December 2022, the Company announced completion of a Placement of $4,110,000 before costs.
Under the placement, the Company issued 39,142,856 shares at an issue price of $0.105 per share to
sophisticated, professional and institutional investors.
d) As ratified at a meeting of shareholders on 14 April 202342, the Company issued the 700,000 Financier
Shares for nil cash consideration, at a time when the market value of the shares was $0.095 per share to
Claymore Capital Pty Ltd (or its nominee) on 3 February 2023 as payment of the Establishment Fee and
Facility Fee for a short-term debt facility.
e) On 18 April 2023 the Company announced completion of a private placement of $2,398,097 before costs
through the issue of 38,068,530 ordinary shares at the 10-day VWAP, to unrelated professional and
sophisticated investors.
42 Refer ASX announcement 15 March 2023
Manuka Resources Ltd
For the year ended 30 June 2023
77
23.2 Movements in options on issue or granted
Beginning of the financial year
Issued, exercisable at $0.30 on or before 28 July 2023
Issued, exercisable at $0.32 on or before 30 September 2023
Issued, exercisable at $0.50 on or before 11 January 2024
Issued, exercisable at $0.50 on or before 3 March 2024
Issued, exercisable at $0.50 on or before 7 April 2024
Unexercised options expired 4 March 2023
Unexercised options expired 8 April 2023
Unexercised options expired 17 April 2023
Issued, exercisable at $0.13 on or before 31 December 2023
Issued, exercisable at $0.16 on or before 30 September 2024
Issued, exercisable at $0.35 on or before 31 December 2024
Issued, exercisable at $0.12 on or before 15 December 2024
Issued, exercisable at $0.08 on or before 31 March 2025
Issued, exercisable at $0.25 on or before 19 April 2025
Issued, exercisable at $0.17 on or before 16 December 2025
Granted, exercisable at $0.06 on or before 30 June 2025
End of the financial year
Number of Options
2023
2022
54,016,669
21,250,000
5,000,000
5,000,000
1,100,000
13,620,002
8,046,667
(13,620,002)
(8,046,667)
(11,250,000)
19,034,266
5,000,000
12,000,000
4,000,000
4,000,000
2,000,000
19,571,419
4,000,000
90,705,685
54,016,669
23.3 Capital management policies and procedures
Management’s objectives when managing the capital of the company are to maintain a good debt to equity
ratio, provide the shareholders with adequate returns and to ensure that the company can fund its operations
and continue as a going concern.
The Company’s capital includes ordinary share capital, short-term borrowings, and financial liabilities,
supported by financial assets.
The Company has a Loan to Value Ratio requirement of 80% under its Senior Secured Debt Facility. Borrowings
are regularly monitored and reported monthly to the Senior Secured Lender.
Management effectively manages the Company’s capital by assessing the Company’s financial risks and
adjusting its capital structure in response to changes in these risks and in the market. In making decisions to
adjust its capital structure the company considers not only its short-term position but also its long-term
operational and strategic objectives. In order to maintain or adjust the capital structure, the Company may
return capital to shareholders, pay dividends to shareholders or issue new shares.
Manuka Resources Ltd
For the year ended 30 June 2023
78
24 Reconciliation of cash flows from operating activities
(a) Details of the reconciliation of cash flows from operating activities are listed in the following table:
30 June
2023
$
30 June
2022
$
(26,342,020)
5,281,420
1,828,928
75,962
4,001,582
(51,364)
88,084
2,501,039
517,719
553,242
2,653,448
407,986
-
-
69,718
(301,145)
667,929
1,197,825
266,241
(200,925)
1,803,164
(3,736,706)
62,183
180,108
Cash flows from operating activities
Profit / (loss) for the period
Adjustments for non-cash items:
•
•
•
•
•
•
•
•
depreciation and amortisation
discounting of provisions and financial assets
impairment of development and rehabilitation assets
profit on sale of assets
share based payments to financiers
accretion of interest and finance costs
amortisation of borrowing costs
unrealised foreign exchange gains
Change in operating assets and liabilities:
•
•
•
•
•
•
change in trade and other receivables
change in prepayments
change in inventories
change in trade, other payables and related party advances
change in contract liabilities
change in provisions
(254,574)
366,124
581,778
711,580
818,219
83,801
Net cash provided by / (used in) operating activities
(14,519,900)
8,351,246
(b) The Company has undertaken a number of non-cash investing and financing activities. Details of the non-
cash financing activities which have resulted in the issue of shares are outlined above at Note 23.1 In
addition, the Company has issued or granted options in respect of non-cash financing and investing
activities as outlined in the table below.
30 June 2023
30 June 2022
# options
$
# options
$
Options issued to finance provider in respect of
financing and extension of financing
•
expenses
•
Borrowings – capitalised finance
Finance costs
Options issued pursuant to share placement
Other contributed equity
•
Options granted to lead broker for placement
services
•
Other contributed equity
Options granted to Alan Eggers (or his nominee)
as conversion of TTR options
Exploration Assets
•
Total Options
17,000,000
2,000,000
557,648
21,584
10,000,000
-
871,408
-
38,605,685
701,832
16,666,669
341,220
-
-
5,000,000
70,831
12,000,000
69,605,685
121,732
-
-
1,402,796
31,666,669
1,283,459
Manuka Resources Ltd
For the year ended 30 June 2023
79
25 Earnings / (Loss) per share
30 June
2023
$
30 June
2022
$
Profit / (loss) attributable to the owners of the Company used in calculating
basic and diluted loss per share
(26,342,019)
5,281,420
Weighted average number of ordinary shares used as the denominator in
calculating basic and diluted loss per share *
Basic earnings / (loss) per share
Diluted earnings / (loss) per share
No of shares
No of shares
428,174,803
274,741,841
Cents per share Cents per share
(6.15)
(6.15)
1.92
1.61
As the Group made a loss for the year ended 30 June 2023, none of the potentially dilutive securities were
included in the calculation of diluted earnings per share for that year. These securities could potentially dilute
basic earnings per share in the future.
* In accordance with AASB 133 paragraph 26, the weighted average number of shares outstanding during the
period and for all periods presented shall be adjusted for events (such as a share consolidation) that have
changed the number of shares outstanding without a corresponding change in resources.
26 Reserves
26.1 Share based payments
Options over ordinary shares have been granted to employees and Directors from time to time, on a
discretionary basis. In addition, options have been issued to financiers and other parties as payment for goods
and services. The cost of these share-based payments is measured by reference to the fair value at the date
at which they are granted using an option pricing model. The options may be subject to service or other vesting
conditions and their fair value is recognised as an expense together with a corresponding increase in other
reserve equity over the vesting period.
The weighted average fair value of the options granted during the year was 2 cents. The fair values were
determined using a variation of the binomial option pricing model that takes into account factors such as the
vesting period, applying the following inputs:
Weighted average exercise price (cents)
Weighted average life of the option (years)
Weighted average underlying share price (cents)
Weighted average expected share price volatility
Weighted average risk free interest rate
30 June
2023
30 June
2022
18
1.9
10
75%
3.2%
44
1.4
29
59%
0.65%
Manuka Resources Ltd
For the year ended 30 June 2023
80
Set out below is a summary of the share-based payment options granted:
30 June 2023
30 June 2022
Beginning of the year
Granted
Forfeited
Exercised
Expired
Outstanding at year end
Exercisable at year end
Weighted
average exercise
price cents
37
18
(42)
20
20
# Options
54,016,669
69,605,685
-
-
(32,916,669)
90,705,685
90,705,685
# Options
21,250,000
32,766,669
-
-
-
54,016,669
54,016,669
Weighted
average exercise
price cents
25
44
-
-
-
37
37
The weighted average remaining contractual life of share options outstanding at the end of the financial year
was 1.2 years (2022: 0.6 years), and the weighted average exercise price is 20 cents (2022: 37 cents).
During the period there were $Nil share-based payment expenses (2022: $69,718) and $88,084 in finance
costs relating to the issue of shares and options to other parties (2022: Nil) in the profit or loss and there was
an increase in the share option reserve of $1,402,795 (2022: $1,353,177). At 30 June 2023 the total value of
the share based payment reserve is $4,242,049 (2022: $2,839,254).
27
Financial risk management
General objectives, policies and processes
In common with all other businesses, the Company is exposed to risks that arise from its use of financial
instruments. This note describes the Company’s objectives, policies and processes for managing those risks
and the methods used to measure them. Further quantitative information in respect of these risks is presented
throughout these financial statements.
There have been no substantive changes in the Company’s exposure to financial instrument risks, its
objectives, policies and processes for managing those risks or the methods used to measure them from
previous periods unless otherwise stated in this note.
Activities undertaken by the Company may expose the Company to market risk (including gold price risk,
currency risk and interest rate risk), credit risk and liquidity risk. The Board has overall responsibility for the
determination of the Company’s risk management objectives and policies and, whilst retaining ultimate
responsibility for them, it has delegated the authority to its finance team, for designing and operating
processes that ensure the effective implementation of the objectives and policies of the Company. The
Company's risk management policies and objectives are therefore designed to minimise the potential impacts
of these risks on the results of the Company where such impacts may be material. The Board receives regular
updates from Management through which it reviews the effectiveness of the processes put in place and the
appropriateness of the objectives and policies it sets.
The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly
affecting the company’s competitiveness and flexibility.
Manuka Resources Ltd
For the year ended 30 June 2023
81
At 30 June 2023, the Company held the following financial instruments:
Financial assets
Cash and cash equivalent
Trade and other receivables
Other financial assets
Total financial assets
Financial liabilities
Trade and other payables
Related party loans
Other interest-bearing loans (net of borrowing costs)
Lease liabilities
Total financial liabilities
30 June
2023
$
265,833
685,660
6,123,068
7,074,561
30 June
2022
$
1,160,615
430,582
6,738,225
8,329,422
7,138,891
1,216,715
6,242,625
909,959
23,563,033
12,201,219
259,040
383,941
32,177,679
19,737,744
The fair value of current and non-current financial instruments is assumed to approximate their carrying value.
Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, commodity prices, interest
rates and equity prices will affect the consolidated entity income or the value of its holdings of financial
instruments.
The Group is exposed to the risk of fluctuations in prevailing market commodity prices on the gold and silver
produced from its silver and gold mines. The Group does not have any physical gold or silver delivery contracts
in place as at 30 June 2023 (30 June 2022: Nil).
Derivative financial instruments and hedge accounting
Derivatives are only used for economic hedging purposes and not as speculative investments.
Changes in the market gold price will affect the derivative valuation at each reporting date. The objective of
market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the return. The consolidated entity enters into derivative financial instruments to hedge such
transactions.
The Company’s risk management policy is to hedge between 0% to 60% of forecast gold/silver sales in local
currency over a rolling 24-month period. As at 30 June 2023 the Company had no hedge positions in place
(2022: Nil).
Commodity price sensitivity
The carrying amount of derivative financial instruments are valued using appropriate valuations models with
inputs such as forward gold or silver prices. There were no open derivative instruments as at 30 June 2023
(2022: Nil). The accounting policy for derivative financial instruments and hedge accounting is outlined at Note
3.20 above.
Manuka Resources Ltd
For the year ended 30 June 2023
82
Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative
instruments that do not qualify for hedge accounting are recognised immediately in the income statement.
During the period, the Company entered into fair value hedges for 200,000 oz of silver (2022: Nil) which did
not classify for hedge accounting. An amount of $120,648 was recognised in the Profit and Loss in relation to
these hedges which were settled prior to the end of the period.
Credit risk
Credit risk is the risk that the other party to a financial instrument will fail to discharge their obligation resulting
in the Company incurring a financial loss. This usually occurs when debtors fail to settle their obligations owing
to the Company. The policy of the Company is that sales are only made to customers that are credit worthy.
Credit limits for each customer are reviewed and approved by Management.
Receivable balances are monitored on an ongoing basis. The Company has one Key Customer which is an LBMA
Accredited Refinery. To mitigate Credit Risk associated with its Key Customer, the Company has in place a
contract which ensures payment is received at the time of transfer of title and physical delivery of goods.
To mitigate the credit risk associated with cash and cash equivalents, contracts are taken out only with
reputable financial institutions in Australia.
The maximum exposure to credit risk at balance date in relation to each class of financial asset is the carrying
amount of those assets, which is net of impairment losses. Refer to the summary of financial instruments table
above for the total carrying amount of financial assets.
Liquidity risk
Liquidity risk is the risk that the Company may encounter difficulties raising funds to meet commitments
associated with financial instruments, e.g. borrowing repayments. Prudent liquidity risk management implies
maintaining sufficient cash and ensuring the availability of funding through an adequate amount of committed
credit facilities.
The Company manages liquidity risk by continuously monitoring forecasted and actual cash flows, seeking the
financial support from its shareholders, finding debt providers and matching the maturity profiles of financial
assets and liabilities.
Manuka Resources Ltd
For the year ended 30 June 2023
83
Maturity Analysis
The table below summarises the maturity profile of the Company’s financial liabilities based on contractual
commitments.
2023
Non-derivatives
Trade and other payables
Related party loans
Other interest-bearing loans
Lease liabilities
2022
Non-derivatives
Trade and other payables
Related party loans
Other interest-bearing loans
Lease liabilities
Carrying
Amount
Contractual
Cash flows
< 6 months
6- 12
months
1-3 years
$
$
$
7,138,891
7,138,891
7,138,891
$
-
$
-
1,216,715
23,563,033
259,040
1,460,057
28,310,460
454,288
97,337
5,979,345
82,074
97,337
1,992,591
83,646
1,265,383
20,338,525
288,568
32,177,679
37,363,696
13,297,647
2,173,574
21,892,476
6,242,625
6,242,625
6,242,625
909,959
12,201,219
383,941
1,000,577
14,519,060
454,288
46,532
1,571,025
82,074
-
36,247
851,233
83,646
-
917,798
12,096,802
288,568
19,737,744
22,216,550
7,942,256
971,126
13,303,168
Foreign exchange risk
Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities
denominated in a currency that is not the entity’s functional currency. The Group has not formalised a foreign
currency risk management policy however, it monitors its foreign currency expenditure considering exchange
rate movements.
The Group is exposed to foreign exchange risk through the USD denominated debt facility obtained from its
senior secured lender and through the USD denominated working capital facility, refer Note 19.2. The Group’s
exposure to foreign currency risk at the end of the reporting period, expressed in Australian dollar, was as
follows:
Borrowings
30 June
2023
$
30 June
2022
$
22,468,399
12,332,456
The aggregate net foreign exchange gains/losses recognised in profit or loss were:
Net foreign exchange gain / (loss) recognised in profit or
loss
30 June
2023
$
30 June
2022
$
(544,183)
(1,023,183)
Manuka Resources Ltd
For the year ended 30 June 2023
84
Sensitivity analysis
The following table demonstrates the sensitivity to a reasonably possible change in the USD:AUD exchange
rate, with all other variables held constant, of the Company’s profit/loss after tax (through the impact on USD
denominated financial liabilities).
USD:AUD exchange rate – increase 10%
USD:AUD exchange rate – decrease 10%
30 June
2023
$
30 June
2022
$
2,042,582
1,055,701
(2,496,489 )
(1,290,302)
Interest rate risk
Interest rate risk is the Company’s exposure to market risk for changes in interest rates relates primarily to
cash and interest-bearing liabilities. The Company's exposure to interest rate risk and the effective weighted
average interest rate by maturity periods is set out in the tables below:
Fixed rates
Floating rates
Total
Non-interest
bearing
Weighted
average
interest rate
2023
Financial assets
Cash and cash equivalent
Trade and other receivables
Other financial assets
Financial liabilities
Trade and other payables
Related party loans
Other interest-bearing loans
Lease liability
2022
Financial assets
Cash and cash equivalent
Trade and other receivables
Other financial assets
Financial liabilities
Trade and other payables
Related party loans
Other interest-bearing loans
Lease liability
-
-
-
0%
16%
20%
14%
-
-
-
-
16%
14%
14%
$
-
-
-
-
$
-
-
-
-
-
-
7,505,279
-
7,505,279
-
1,216,715
13,355,658
259,040
14,831,412
-
-
-
-
-
-
-
-
-
-
-
-
-
-
453,083
11,684,906
383,941
12,521,930
$
$
265,833
685,660
6,123,068
7,074,561
7,138,891
-
2,702,096
-
9,840,988
1,160,615
430,582
6,738,225
8,329,422
6,242,625
456,876
516,313
-
7,215,814
265,833
685,660
6,123,068
7,074,561
7,138,891
1,216,715
23,563,033
259,040
32,177,679
1,160,615
430,582
6,738,225
8,329,422
6,242,625
909,959
12,201,219
383,941
19,737,744
Manuka Resources Ltd
For the year ended 30 June 2023
85
Sensitivity analysis
The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all
other variables held constant, of the Company’s profit/loss after tax (through the impact on floating rate
financial liabilities).
Carrying
amount
2023
Carrying
amount
2022
$
+1%
-1%
Borrowings at floating interest rate
7,505,279
75,053
(75,053)
Tax charge at 30% (2022: 30%)
Net after tax increase / (decrease)
(22,516)
22,516
52,537
(52,537)
$
-
+1%
-1%
-
-
-
-
-
-
28 Commitments for expenditure
28.1 Tenement Commitments
In order to maintain current rights of tenure to exploration tenements, the Company is required to perform
minimum exploration work to meet the minimum expenditure requirements specified by the State
Government. Due to the nature of the Company’s operations in exploring and evaluating areas of interest,
exploration expenditure commitments beyond twelve months cannot be reliably determined. It is anticipated
that expenditure commitments in subsequent years will be similar to that for the forthcoming twelve months.
These obligations are not provided for in the financial report and are payable as follows:
Not later than one year
Between 1 year and 5 years
30 June
2023
$
1,122,667
4,367,333
5,490,000
30 June
2022
$
1,106,667
4,383,333
5,490,000
If the Company decides to relinquish certain leases and/or does not meet these obligations, assets recognised
in the Statement of Financial Position may require review to determine the appropriateness of carrying values.
29 Contingent assets and liabilities
29.1 Bank Guarantee to Cobar Shire Council and road rehabilitation
The Company has a term deposit with NAB to cover a bank guarantee of $200,000 issued by the NAB to Cobar
Shire Council. The bank guarantee is required by Cobar Shire Council to cover the estimated cost of restoring
the road to their pre-mining condition.
Due to the contingent nature of the asset and liability and the significant uncertainty of timing and because
the cost of necessary road repairs cannot be estimated with any degree of certainty, the value of the bank
guarantee has not been brought to account in the financial statements of the Company.
29.2 Rental bond and office lease guarantee and indemnity
The Company has entered into a Deed of Indemnity to in relation to a Lease Bond Facility with Lombard
Insurance Company Ltd. The Lease Bond Facility covers the Company’s guarantee and indemnity obligations
in respect of the office lease outlined at Note 18. The total facility as at 30 June 2023 was $99,854 (2022:
$96,254).
Manuka Resources Ltd
For the year ended 30 June 2023
86
Interests in Subsidiaries
30
Set out below are details of the subsidiaries held directly by the Group:
Name of the subsidiary
Place of incorporation and
place of business
Mt Boppy Resources Pty Ltd
Australia
Trans-Tasman Resources Ltd
New Zealand
Principal activity
Gold Mine
Owner of iron ore
project
31 Parent Entity Information
Information relating to Manuka Resources Ltd (the Parent Entity):
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets / (deficit)
Share capital
Share based payment reserve
Accumulated losses
Total equity
Statement of profit or loss and other comprehensive income
Profit / (loss) for the year
Other comprehensive income / (loss)
Total comprehensive profit / loss
Proportion of ownership
interests held by the Group
30 June
2023
30 June
2022
100%
100%
100%
0%
30 June
2023
$
30 June
2022
$
3,722,355
5,318,650
54,580,313
34,421,877
58,302,668
39,740,527
31,261,610
18,799,563
7,099,084
6,769,008
38,360,694
25,568,571
19,941,974
14,171,956
57,038,387
25,771,113
4,242,049
2,839,254
(41,338,462)
(14,438,411)
19,941,974
14,171,956
(26,900,051)
5,482,314
-
6,297
(26,900,051)
5,488,611
The Parent Entity has contingent liabilities at the year end as outlined in Note 29.
32 Related party transactions
32.1 Transactions with related parties and outstanding balances
The Company’s related parties include key management personnel, and others as described below. Unless
otherwise stated, none of the transactions incorporate special terms and conditions and no guarantees were
given or received. Outstanding balances are usually settled in cash.
Notes
30 June
2023
$
30 June
2022
$
DETAILS OF TRANSACTIONS WITH RELATED PARTIES:
Details of related party transactions with ResCap
Investments Pty Ltd, an entity controlled by a member of
KMP:
•
interest charged on intercompany loan
186,255
29,184
Manuka Resources Ltd
For the year ended 30 June 2023
87
Details of related party transactions with Minvest Securities
(New Zealand) Ltd, being an entity controlled by a member
of KMP:
•
interest charged on intercompany loan
17,062
-
DETAILS OF BALANCES WITH RELATED PARTIES:
Balance of loan with Manuka Resources Ltd
- payable to ResCap Investments Pty Ltd
Balance of loan with Trans-Tasman Resources Ltd
- payable to Minvest Securities (New Zealand) Limited
20.2(a)
1,216,714
909,959
20.2(a)
-
-
32.2 Transactions with key management personnel
Key management personnel remuneration includes the following expenses:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Share-based payments
Total remuneration
30 June
2023
$
916,877
50,584
-
-
967,461
30 June
2022
$
777,181
45,628
-
69,718
892,527
Detailed remuneration disclosures are provided in the remuneration report on pages 30 to 38.
33 Events subsequent to the end of the reporting period
• Further Extension of Secured Debt Facility
Since the end of the reporting period, the Company successfully negotiated to extend the term of the
secured debt facility to 30 September 2024. The extension has been granted on existing terms and rates
with no extension penalties or cash fees. The Company has resolved at a Board meeting held 19 September
2023 to grant the issue of 25Million options in four tranches with an exercise price based on the 5-day
VWAP plus a 10% premium.
• Mt Boppy Resource Update43
The Company released a Mt Boppy Gold Project Resource Upgrade showing a 357% increase in contained
ounces.
Apart from the matters noted above, there are no other matters or circumstances that have arisen since the
end of the period that has significantly affected or may significantly affect either:
•
•
•
the entity’s operations in future financial years;
the results of those operations in future financial years; or
the entity’s state of affairs in future financial years.
43 Refer ASX announcement dated 25 August 2023
Manuka Resources Ltd
For the year ended 30 June 2023
88
34 Company Details
The registered office and principal place of business of the Company is:
Manuka Resources Ltd
Level 4 Grafton Bond Building
201 Kent Street, Sydney, New South Wales
Manuka Resources Ltd
For the year ended 30 June 2023
89
Directors’ Declaration
In the opinion of the Directors of Manuka Resources Ltd:
a The financial statements and notes of Manuka Resources Ltd are in accordance with the Corporations
Act 2001, including:
i.
ii.
iii.
Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2023 and of
its performance for the financial year ended on that date; and
Complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements;
The attached financial statements and notes comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board as described in note 1 to the
financial statements;
b There are reasonable grounds to believe that Manuka Resources Ltd will be able to pay its debts as
and when they become due and payable; and
c a statement that the attached financial statements are in compliance with International Financial
Reporting Standards has been included in the notes to the financial statements.
The directors have been given the declarations by the chief executive officer and chief financial officer required
by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of the directors.
Dennis Karp
Executive Chairman
Dated the 29th day of September 2023
Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
ey.com/au
Independent auditor’s report to the members of Manuka Resources Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Manuka Resources Limited (“the Company”) and its subsidiaries (collectively the
Group), which comprises the statement of financial position as at 30 June 2023, the statement of profit or loss and
other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended,
notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
a.
Giving a true and fair view of the consolidated financial position of the Group as at 30 June 2023 and of its
consolidated financial performance for the year ended on that date; and
b.
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 Company in accordance with the auditor independence requirements of the Corporations Act 2001
and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Material uncertainty related to going concern
We draw attention to Note 3.2 in the financial report, which describes the principal conditions that raise doubt about the
Group’s ability to continue as a going concern. These events or conditions indicate that a material uncertainty exists that
may cast significant doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in respect
of this matter.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
financial report of the current year. These matters were addressed in the context of our audit of the financial report as a
whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. In addition to the
matter described in the Material Uncertainty Related to Going Concern section, we have determined the matters
described below to be the key audit matters to be communicated in our report. For each matter below, our description
of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial report section
of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures
designed to respond to our assessment of the risks of material misstatement of the financial report. The results of our
audit procedures, including the procedures performed to address the matters below, provide the basis for our audit
opinion on the accompanying financial report.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Carrying value of Non-Current Assets
Why significant
How our audit addressed the key audit matter
At 30 June 2023 the carrying value of the Group’s
Property, Plant and Equipment (“PP&E”) was $15.6m
and Mine Properties and Development Assets was
$0.6m. This represents 26% of the total assets of the
Group.
Australian Accounting Standards require the Group to
assess whether there are any indicators that its non-
current assets may be impaired. If such indicator exists,
the Group estimates the recoverable amount.
As outlined in note 15, a strategic review of the Group’s
capitalised development costs identified impairment
indicators for certain areas. The resulting impairment
test resulted in development costs totalling $3.8m being
impaired.
The Group’s remaining non-current asset balance
(excluding exploration and evaluation) at 30 June 2023
relates primarily to the Group’s Wonawinta processing
plant and associated tangible mining assets.
As an indicator of impairment was identified, at 30 June
2023 the Group engaged an independent expert to
perform a valuation of these tangible assets. This
assessment, combined with supporting operating plans
and cash flow analysis supported the Group’s assessment
that the PP&E was not impaired.
Due to the significance of the carrying amount of the
non-current assets relative to total assets and the
judgment required in determining recoverable amount
once impairment indicators were identified, we consider
this a key audit matter.
In performing our procedures, we:
Considered whether indicators of impairment were
present for the Group’s non-current assets with
reference to the Australian Accounting Standards.
Assessed the Group’s methodology for measuring
recoverable amount given its expected manner of
using the non-current assets and tested the
mathematical accuracy of the impairment charge
recognised.
Obtained and read the Group’s independent
valuation for the of its plant and equipment. With
the assistance of EY’s capital equipment valuation
experts, we:
o Evaluated the qualifications, competence and
objectivity of the experts used by the Group
to determine the recoverable amount of the
Group’s Wonawinta processing plant and
associated tangible mining assets.
o Considered the valuation approach adopted
for compliance with the requirements of the
Australian Accounting Standards.
o Assessed the reasonability of the inputs and
information sources used in the valuation
based on the EY capital equipment team’s
expertise.
o Considered economic obsolescence of the
plant by considering cash flow forecasts
based on the expected recovery of gold
resources controlled by the Group as reported
under the JORC Code, 2012 (“JORC”).
o Evaluated the reasonableness of key
assumptions in the cash flow forecasts
including forecast gold prices and foreign
exchange rates with reference to broker
consensus data.
o Evaluated the qualifications, competence and
objectivity of the experts used by the Group
to determine the JORC resource.
o Considered whether any obsolescence or
physical asset damage had occurred based on
knowledge obtained from the site visit
conducted by the audit team and the age and
functionality of all physical items of PP&E
(including the processing plant).
Cross checked the carrying value of the Group’s
total net assets to market capitalisation;
Assessed the adequacy of the related disclosures in
the notes to the financial statements.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Carrying value of Exploration and Evaluation Assets
Why significant
The Group’s exploration assets of $35.4m as at 30 June
2023 represent 61% of the total assets of the Group as
disclosed in Note 16.
This includes $26.3m relating to the current period asset
acquisition of the Trans-Tasman Resources Ltd VTM iron
sands project in New Zealand, which is described in Note
22.
At each reporting date, the Directors assess the Group’s
exploration assets for indicators of impairment. The
decision as to whether there are indicators that require
the Group’s exploration assets to be assessed for
impairment in accordance with Australian Accounting
Standards involved judgment, including the Group’s
ability and intention to continue to evaluate and develop
the area of interest and whether the results of the
Group’s exploration and evaluation work to date are
sufficiently progressed for a decision to be made as to
the commercial viability or otherwise of the area of
interest.
We considered this to be a Key Audit Matter due to the
value of the exploration assets relative to total assets
and the significant judgments involved in the assessment
of indicators of impairment.
How our audit addressed the key audit matter
In performing our procedures, we:
Evaluated the Group’s accounting for the
purchase of Trans-Tasman Resources Ltd
(“TTR”)as an asset acquisition with reference
to the requirements of the Australian
Accounting Standards.
Recalculated the fair value of the purchase
consideration paid for TTR as the number of
shares issued by the share price on the date of
acquisition and tested the allocation of that
consideration to the exploration and evaluation
assets.
Assessed whether the methodology used by
the Group to identify indicators of impairment
met the requirements of Australian Accounting
Standards.
Evaluated the Group’s right to explore in the
relevant exploration areas, which included
obtaining and assessing supporting
documentation such as license agreements and
consideration of the status of the pending
Marine Consent and Marine Discharge Consent
currently awaiting approval in New Zealand.
Assessed the Group’s intention to carry out
significant exploration and evaluation activity
in the relevant areas of interest. This included
an assessment of the Group’s budgets,
discussions with senior management and
Directors as to the intentions and strategy of
the Group.
Agreed a sample of costs capitalised for the
period to supporting documentation and
assessing whether these costs meet the
requirements of Australian Accounting
Standards and the Group’s accounting policy.
Where JORC resources were available,
performed a resource multiple analysis to
cross check the carrying value of the
Exploration and Evaluation Assets to market
information.
Evaluated the qualifications, competence and
objectivity of the experts used by the Group to
determine JORC resource.
Assessed the adequacy of the related
disclosures in the Notes to the financial
statements.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the information included in the
Company’s 2023 annual report but does not include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any form of
assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion.
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 Group’s ability to continue as a going
concern, disclosing, as applicable, matters relating 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 have no realistic alternative but to do
so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with 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.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgment and
maintain professional scepticism throughout the audit. We also:
•
•
•
•
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
•
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated to the directors, we determine those matters that were of most significance in the
audit of the financial report of the current year and are therefore the key audit matters. We describe these matters in
our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on the audit of the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 30 to 38 of the directors’ report for the year ended 30
June 2023.
In our opinion, the Remuneration Report of Manuka 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.
Ernst & Young
Siobhan Hughes
Partner
Sydney
29 September 2023
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Manuka Resources Ltd
For the year ended 30 June 2023
95
ASX Additional Information
Additional information required by Australian Securities Exchange Ltd and not shown elsewhere
in this report is as follows. The information is current as at 29 September 2023.
(a) Distribution of equity securities
Analysis of numbers of equity security holders by size of holding:
1
1,001
5,001
10,001
100,001
-
-
-
-
1,000
5,000
10,000
100,000
and over
The number of equity security holders holding less than a marketable
parcel of securities are:
(b) Twenty largest shareholders
Ordinary shares
Number of holders
Number of shares
132
565
427
821
328
2,273
1,145
83,823
1,565,169
3,635,822
30,411,102
526,824,146
562,520,062
5,504,685
Twenty largest quoted equity security holders
The names of the twenty largest holders of quoted ordinary shares are:
Listed ordinary shares
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
MINVEST SECURITIES (NEW ZEALAND) LIMITED
SOOTHGROVE PTY LTD
Rosenberg Group
CITICORP NOMINEES PTY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
BNP PARIBAS NOMINEES PTY LTD
MR ANDREW LOUIS CHARLES BEREND
SPINITE PTY LTD
S T B OFFSHORE LIMITED
R-CAP RESOURCES GP SA
MR GEORGE WONG KIM PAU &
MS HAPPY SIM
ResCap Investments Pty Ltd
MR NICHOLAS PAUL SIMON OLISSOFF
ALAN J EGGERS
MR BRETT SAMUEL ROSENBERG
MR ADAM AARON ROSENBERG
MR MATTHEW DAVID ROSENBERG
MR PAUL HENRY BEREND
NAPIER 647 PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
Number of shares
49,347,316
35,982,915
32,271,419
24,436,935
21,414,901
20,564,627
19,921,055
19,830,851
18,290,504
15,535,526
10,598,000
10,440,000
9,841,000
9,765,300
8,442,174
8,167,174
8,152,174
7,267,200
6,686,097
6,489,327
202,599,501
Percentage of
ordinary shares
8.77%
6.40%
5.74%
4.34%
3.81%
3.66%
3.54%
3.53%
3.25%
2.76%
1.88%
1.86%
1.75%
1.74%
1.50%
1.45%
1.45%
1.29%
1.19%
1.15%
70.83%
Manuka Resources Ltd
For the year ended 30 June 2023
96
(c) Substantial shareholders
The names of substantial shareholders who have notified the Company in accordance with
section 671B of the Corporations Act 2001 are:
Number of Shares
% Issued Capital
Level 1 Pty Ltd (ACN 105 622 928) , Kizogo Pty Ltd
(ACN003 334 370) , Claymore
Capital Pty Ltd (ACN 082 722 290) , Sharron
Ruth Rosenberg
Dennis Karp (including holding of ResCap Investments Pty Ltd)
Alan J Eggers
John Andrew Gowans Seton
32,271,419
5.74%
47,819,932
60,812,616
49,941,020
8.50%
10.81%
8.88%
(d) Voting rights
All ordinary shares (whether fully paid or not) carry one vote per share without restriction.
(e) Schedule of interests in mining tenements as at 29 September 2023
Location : Wonawinta Silver Project is situated approximately 90 kilometres to the south of
Cobar, NSW, and comprises one (1) granted mining lease and seven (7) granted exploration
licences as below, plus processing plant and associated infrastructure .
Tenement
ML1659
EL6482
EL7345
EL6155
EL6302
EL7515
EL6623
EL8498
Percentage held / earning
100%
100%
100%
100%
100%
100%
100%
100%
Change during period
-
-
-
-
-
-
-
-
Location : Mt Boppy Gold Project is situated approximately 45 kilometres east of Cobar, NSW,
adjacent to the Barrier Highway. The Project comprises four (4) gold leases, two (2) mining
leases, one (1) mining purpose lease and one (1) exploration licence which encompasses the
MLs and extends the project area to the south.
Tenement
GL3255
GL5836
GL5848
GL5898
ML311
ML1681
MPL240
EL5842
Percentage held / earning
100%
100%
100%
100%
100%
100%
100%
100%
Change during period
-
-
-
-
-
-
-
-
Location : Tenement Location: Taranaki VTM Project is situated offshore in the South Taranaki
Bight along the west coast of the North Island, New Zealand. Tenements acquired as a result of
the acquisition44 of TTR comprise one granted mining permit and one granted exploration
permit.
Tenement
MMP55581
MEP54068
Percentage held / earning
100%
100%
Change during period
100%
100%
44 ASX disclosure 11 November 2022
Manuka Resources Ltd
For the year ended 30 June 2023
97
(f) Unquoted Securities
At 29 September 2023, the Company had the following unlisted securities on issue:
Holders of 20% or more of the class
Class
$0.32 options, expiring 30/09/2023
Number of
Securities
5,000,000
Number of
Holders
1
$0.50 options. expiring 11/04/2024
1,100,000
3
$0.13 options, expiring 31/12/2023
19,034,266
5
$0.16 options, expiring 30/09/2024
$0.35 options, expiring 30/09/2024
5,000,000
12,000,000
$0.12 options, expiring 15/12/2024
4,000,000
$0.08 options, expiring 31/03/2025
$0.25 options, expiring 19/04/2025
$0.17 options, expiring 16/12/2025
4,000,000
2,000,000
19,571,419
$0.06 options, expiring 30/06/2025
4,000,000
1
2
1
1
1
60
1
Holder Name
TA Private Capital Security
Agent Ltd
Dennis Karp
Nicholas Lindsay
Anthony McPaul
Andrew Louis Charles Berend
Marzio Keiling
Prime Capital Global
Opportunities Fund
TA Private Capital Security
Agent Ltd
Alan John Eggers
Minvest Securities (New
Zealand) Ltd
TA Private Capital Security
Agent Ltd
TA Private Capital Security
Agent Ltd
Spinite Pty Ltd
Citicorp Nominees Pty Ltd
TA Private Capital Security
Agent Ltd
Number of
Securities
5,000,000
500,000
300,000
300,000
8,956,746
3,875,969
4,263,566
5,000,000
2,403,365
9,596,635
4,000,000
4,000,000
2,000,000
4,761,904
4,000,000
(f) Restricted Securities
At 29 September 2023, the Company had the following restricted securities on issue.
Class
ESCROWED SHARES 18MONTHS FROM ISSUE
Number of Securities
Date escrow period ends
10/05/2024
76,117,107
(h) Approach to Corporate Governance
Manuka Resources Ltd ACN 611 963 225 (Company) has established a corporate governance framework
commencing from when the Company was admitted to the official list of ASX. In establishing its corporate
governance framework, the Company has referred to the recommendations set out in the ASX Corporate
Governance Council's Corporate Governance Principles and Recommendations 4th edition (Principles &
Recommendations). The Company has followed each recommendation where the Board has considered the
recommendation to be an appropriate benchmark for its corporate governance practices.
following governance-related documents can be
The
www.manukaresources.com.au, under the section marked "About Us > Corporate Governance":
found on
the Company's website at
Charters
• Board
• Audit, Risk and Sustainability Committee
• Nomination Committee
• Remuneration Committee
Manuka Resources Ltd
For the year ended 30 June 2023
98
Policies and Procedures
• Corporate Code of Conduct
• Disclosure - Performance Evaluation
• Continuous Disclosure
• Risk Management Policy
• Trading Policy
• Diversity Policy
• Shareholder Communication Strategy
• Sustainability Policy
• Hedging Policy
• Whistleblower Policy
For the financial year ended 30 June 2023 (Reporting Period) the Company has adopted the fourth edition of
the Corporate Governance Principles and Recommendations released by the ASX Corporate Governance
Council. The Company’s 2023 Annual Corporate Governance Statement has been approved by the Board and
is publicly available on the Company’s website at www.manukaresources.com.au/site/about/corporate-
governance. It will also be released to the ASX at the same time as this 2023 Annual Report.
Manuka Resources Limited
Level 4, Grafton Bond Building,
201 Kent St, Sydney, NSW Australia, 2000