Manuka Resources Ltd ABN 80 611 963 225
ANNUAL REPORT 2024
Annual Report
For the year ended 30 June 2024
Manuka Resources Ltd
ABN 80 611 963 225
Manuka Resources Ltd
1
For the year ended 30 June 2024
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
Eryn Kestel
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
RSM Australia Partners
Level 13, 60 Castlereagh 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
2
For the year ended 30 June 2024
Contents
Page
Executive Chairman’s Report
3
Review of Operations
6
Mineral Resource Statements
19
Directors’ Report
24
Auditor’s Independence Declaration
39
Consolidated Statement of Profit or Loss and Other Comprehensive Income
40
Consolidated Statement of Financial Position
41
Consolidated Statement of Changes in Equity
43
Consolidated Statement of Cash Flows
44
Notes to the Financial Statements
45
Consolidated Entity Disclosure Statement
83
Directors’ Declaration
84
Independent Auditor’s Report
85
ASX Additional Information
89
Manuka Resources Ltd
3
For the year ended 30 June 2024
Executive Chairman’s Report
SCREENING AND PROCESSING THE RESIDUAL GOLD CONTAINED IN THE ROCK PILES AND WASTE DUMPS AT
MT BOPPY, COMBINED WITH FAST TRACK LEGISLATION COMMITMENTS FROM THE NEW N.Z. COALITION
GOVERNMENT
This Annual Report marks our fourth year as a producing precious metals company listed on the ASX.
The start of the 2023-24 Financial Year coincided with the commencement of our gold screening and recovery
project at Mt Boppy. The project team commenced screening the Mt Boppy ROM, residual rock piles and
waste dumps to a fractional size of approximately 12mm to 20mm targeting recovery of remnant gold
remaining in this size fraction material. From July 2023 onwards, production of the screened material
increased on a month-by-month basis, as did the recoveries of the residual gold until November, where a
deterioration in gold grades caused by mining from a lower grade area together with the overall cost of
processing through the Wonawinta plant, as well as the high haulage costs, reduced the economic potential
of the project. This resulted in suspension of gold processing and production in early February. However the
screening and recovery process demonstrated that there was predictable gold associated with the <20mm
size fraction. The Company estimates there is in excess of 4.0Mt of remnant mining material at Mt Boppy
comprising rock dumps and tailings, all containing residual gold of various grades. Key to recommencing the
project in the future was to ensure the Company had better grade control, and ideally either completely
negate or alternatively, find an improved transport solution for concentrate processing (haulage of bulk
material from Mt Boppy to the Wonawinta plant costs in the vicinity of A$30/t). Running the Wonawinta plant
at a feed rate of 30,000t/mth adds nearly $11M/yr in direct costs to the screening project. Effectively one
year’s haulage cost alone was similar to the capex estimate required to build a plant at Mt Boppy and there
was between 4-5 years of material requiring screening and processing. This concept fast gained traction within
the Company as external metallurgical test-work confirmed the viability of a purpose-built gold recovery plant
at Mt Boppy.
It is worthwhile noting that at time of writing the A$ gold price is up 30% from this time last year (currently
A$3,800/oz gold vs A$2,950/oz gold), which further underpins the project, while the gold contango (the price
the forward gold price is higher than the spot gold price) continues to run at around 4% p.a. for the coming 2-
3 years. I believe the next phase of the Mt Boppy screening project will prove to be the most important in the
Company’s term since listing on the ASX. The anticipated cashflows are expected to make the Company debt
free within three years as well as funding an extensive regional and near mine drilling program which will
underpin production for years ahead.
Manuka holds a material precious metals position in the Cobar Basin, including the fully approved
Wonawinta Silver Project and the Mt Boppy Gold Project, the well maintained circa 850,000+ tpa processing
plant at Wonawinta, as well as an exploration tenement package extending over an area exceeding
1,125km2. Post the 2023 Strategic Exploration Review of all our Cobar tenements, the Company continued to
review specifically the status and findings of all historic geophysical surveys conducted on the tenement
package. The outcome of this work has been a refinement of exploration targets that feed into the strategic
growth profile of the Company.
As a result of this Review, the Company is targeting an increase in gold resources of between 250,000-
530,000oz gold @2.5g/tAu from Mt Boppy depth extensions, the Pipeline Ridge opencast prospect as well as
McKinnons mine surrounds. Exploration and drilling originally planned for December 2023 was placed on hold
pending our gold production issues and is now planned to commence in the June quarter 2025. As at time of
writing there has been no material change to the Mineral Resource statements of April 2024.
Manuka Resources Ltd
4
For the year ended 30 June 2024
The Strategic Reviews identified the potential increases in the Company’s resource inventory resulting from a
targeted exploration program. This exploration program, now planned to commence during Q2 2025 is
intended to be funded by our gold production cash flows. Initial drilling targets are the Pipeline Ridge oxide
opencast evaluation (outcome will be an Indicated Resource) and continuing the ‘Mt Boppy Deeps’ drilling
where a program of five holes drilled to 300m-600m depth down plunge from 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.
Manuka’s wholly owned subsidiary Trans-Tasman Resources Ltd (TTR), has 100% ownership of the Taranaki
VTM (vanadiferous titanomagnetite) Project in New Zealand. The Project, located offshore in the South
Taranaki Bight (STB), contains a JORC resource of 3.2 billion tonnes of iron sands1 with a granted mining permit.
The pre feasibility study2 was based on a forecast extraction rate of 50Mt a year producing 5.0Mt of VTM
concentrate a year over a 20-year period. At this forecast rate the JORC resource contains a potential 60 years
of mining inventory. Manuka was attracted to this world class 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 Study3 (PFS) completed in 2013 and adjusted to 2024 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 global 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 production is a proven technology and 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
targets. The JORC reported mineral resource for the Taranaki VTM Project also contains a vanadium resource
of 1.6Mt of 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 progress potential production of a VTM
concentrate whilst securing a stronghold in vanadium co-product (listed as a critical mineral under the New
Zealand government draft strategy4) production. Vanadium is a commodity which has also been declared a
critical mineral by the Governments of the USA, Canada, the EU, UK and Australia, required for hardening and
strengthening of steel and now proving essential for utility or grid scale battery storage underpinning a green-
energy fueled global economy.
In March 2024, the New Zealand government introduced the Fast Track Consenting approvals bill with the
objective of providing a streamlined decision-making process to facilitate the delivery of many development
projects including natural resources and infrastructure development projects with significant regional or
national benefits. Development of the Bill is part of the coalition agreements between the National, ACT and
NZ First parties, and is a key component of the Government’s first 100 Days Plan to reduce the red and green
1 ASX release 1 March 2023
2 https://www.manukaresources.com.au/site/projects/taranaki-vtm-project/studies
3 ibid
4 https://www.beehive.govt.nz/release/draft-critical-minerals-list-released-consultation
Manuka Resources Ltd
5
For the year ended 30 June 2024
tape delays created by multiple layers of regulation in the country and put New Zealand on a firmer economic
footing by providing better certainty for project sponsors
On 19 April 2024 TTR submitted an application for its Taranaki VTM Iron Sands Project for consideration as a
Listed Project under the Fast Track legislation. It’s now anticipated the New Zealand government will
reintroduce the Bill to parliament, with the schedule of Listed Projects, in the fourth quarter of 2024 for its
final reading and approval.
As mentioned above the New Zealand government had commissioned international consultants Wood
Mackenzie to complete a draft critical minerals strategy earlier this year. TTR made submissions to Wood
Mackenzie that included iron ore, vanadium and titanium for inclusion in the critical minerals list and the
potential for the development of these mineral resources in New Zealand. In mid- September the New Zealand
Minister for Resources launched this Draft Critical Minerals List for New Zealand5 aimed at increasing mineral
exports. One of the key new mineral opportunities identified in the Ministry of Business, Innovation and
Employment (MBIE) Strategy are the offshore deposits of iron sands, containing vanadium and titanium in the
STB, 100% controlled by TTR.
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 the 2025 financial year with
gold production poised to restart at Mt Boppy and commencing with a minimum four year mine plan. There
is no other portfolio of assets I would rather own than our two fully permitted precious metals assets in the
Cobar Basin, together with our nation building mineral sands project in the South Taranaki Bight of New
Zealand with its direct exposure to iron ore, vanadium and titanium. There will be challenges ahead requiring
steady navigating, but by and large I fully expect Manuka to emerge from the next year as a vastly different
company and far stronger financially.
Dennis Karp
Executive Chair
5 A Draft Minerals Strategy for New Zealand to 2040: Ministry of Business, Innovation and Employment (MBIE), May 2024.
Manuka Resources Ltd
6
For the year ended 30 June 2024
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 between May and October 2022. This followed our first phase of open
cut gold production from Mt Boppy (which occurred between April 2020 to November 2021). The purpose of
the silver trial project was to optimise the metallurgical process to be used for the recovery of Wonawinta
silver from the ore sources comprising the mining licence, as well as increasing the plant capacity. Both
objectives were realised and the project was brought to an earlier close than originally planned due to factors
beyond our control.
In late 2022 the Company recruited a new chief geologist, Phil Bentley. Phil brought with him considerable
experience, a substantial part of which had been gained from the processing of historical dumps and tailings
in Southern Africa. Phil’s initial review of Manuka’s exploration portfolio identified the opportunity of
screening and reprocessing the ~4.0Mt rockpiles and recovering gold from this material. The plan centred on
producing gold from the ROM, the rock and overburden dump stockpiles and the tailings at the Mt Boppy
mine site via a simple process of screening to a sub 12mm particle fraction which contains the majority of the
gold (and associated silver) and forwarding the screened material to a gold recovery leach circuit.
Mt Boppy Stockpile Reprocessing activities commenced in May 2023 following finalisation of a bulk sampling
program aimed at enabling better evaluation of the project economics. Full scale processing commenced in
late June 2023. Resource modelling for this previously designated waste material was advanced during the
year with the execution of a Sonic drilling programme throughout the surface dumps. This drilling programme
improved the accuracy of gold grade, lithological characterisation, size distribution and metallurgical recovery
data, which to this point had relied upon the results of the bulk sampling program.
Exploration activities during the year focussed on the re-prioritised targets generated by the 2023 Strategic
Review. Specifically detailed review and interrogation of historic geophysical data was completed on the whole
MKR tenement package. This work has provided better definition of targets for future drill programs.
As mentioned in last year’s Annual Report, the Company completed the acquisition of TTR in November 20226.
TTR hosts a significant shallow offshore iron sands and vanadium project offshore in the South Taranaki Bight
(STB) of New Zealand. The Project is at the Bankable Feasibility Study (BFS) stage, has a granted Mining Permit
and applied to be considered under NZ’s Fast Track consenting legislation for its final approvals to operate.
Final government approvals for the project will trigger commencement of final detailed engineering and
capital costings. Once developed the TTR project would 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 as well as a world class pre-development vanadium rich iron sands
project situated in the STB of New Zealand, included in the asset portfolio is the following:
6 ASX release 11 November 2022
Manuka Resources Ltd
7
For the year ended 30 June 2024
The Mt Boppy Gold mine and neighbouring tenements. Operations at the Mt Boppy project were
halted in Q1 2024, as the Company determined that locating a plant on-site at Mt Boppy was a
precursor to continuing the screening operations. The plan was advanced in Q2 an Q3 2024 and will
commence operations later 2024 to early 2025.
The 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 around eight months later 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 government’s final approvals via the proposed Fast Track Consenting legislation to operate
are in place.
THE MT BOPPY GOLD PROJECT
Operations
The first phase of open pit production at Mt Boppy finished in early 20227. 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.
Initially a trommel screen with 12mm apertures was used to sort the material on the Mt Boppy ROM into two
product fractions namely a sub 12mm and a 12-22 mm fraction. Once confirmation of grade distribution was
determined (averaging circa 1.8 g/t)8 a McCloskey R155 double deck screen was commissioned to start full
scale production of screened material (this was then upgraded to a McCloskey R230). This screened product
was hauled to the Wonawinta plant for processing over the period May – December 2023. Bulk sampling was
also undertaken on the existing overburden dump situated west of the pit. This evaluation work provided the
basis to undertake the Sonic drilling of the circa 4mt rock dump. This evaluation has provided the basis of the
current progression of a revised mining scenario at Mt Boppy, inclusive of the option to capitalise a stand-
alone modular gold recovery plant.
The company is forecasting around four – five years of project life and released an updated mineral resources
estimate in August 2023 for these resources9.
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
area10.
7 ASX release 8 March 2022
8 ASX release 31 July 2023 June Quarterly
9 ASX release 25 August 2023
10 See Prospectus dated 22 May 2020, ASX release 10 July 2020
Manuka Resources Ltd
8
For the year ended 30 June 2024
Tenements
The Mt Boppy Gold Project (which comprises three granted mining leases, four 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:
Tenement
Grant Date
Renewal Date
Expiry Date
Area (km2)
GL3255
20-May-1926
08-Jul-2014
20-May-2033
8.30
GL5836
15-Jun-1965
08-Jul-2014
15-Jun-2033
6.05
GL5848
15-Feb-1968
08-Jul-2014
15-Jun-2033
8.62
GL5898
21-Jun-1972
08-Jul-2014
12-Dec-2033
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
(Table 1 – Tenements Mt Boppy)
(Figure 1 - Tenements - Mt Boppy Gold Project)
Manuka Resources Ltd
9
For the year ended 30 June 2024
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 202311 . 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. Additional work is
being directed towards the presence of gold which has not been evident in historical assays, yet accounted for
an average of 15% of the total payables received from the refinery from silver shipments.
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. The plant capacity for the processing of silver grading ores and materials was
increased to ~1Mt/yr (previously 850,000t/yr).
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
9.24
EL6482
18-Nov-05
27-Jan-2022
18-Nov-26
268.21
EL7345
25-May-09
27-Jul-2022
25-May-28
169.18
EL6155
17-Nov-03
23-Jan-2022
17-Nov-26
10.54
EL6302
23-Sep-04
20-Jan-2022
23-Sep-26
280.02
EL7515
7-Apr-10
9-Jun-2022
7-Apr-27
14.53
EL6623
31-Aug-06
18-Mar-2021
31-Aug-26
26.24
EL8498
10-Jan-17
3 –Nov-2021
10-Jan-29
114
(Table 2 – Tenements Wonawinta)
11 ASX release 28 April 2023 – March Quarterly
Manuka Resources Ltd
10
For the year ended 30 June 2024
(Figure 2 - Tenements of Wonawinta Silver Project)
Manuka Resources Ltd
11
For the year ended 30 June 2024
(Figure 3 – Existing mine infrastructure and resource outline in ML 1659)
Manuka Resources Ltd
12
For the year ended 30 June 2024
STRATEGY AND DEVELOPMENT PLANS
During the 2022-2023 financial year, as 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 12mm fraction derived from a simple rotating screen. These positive sampling results gave the
company confidence to begin larger scale production utilising a McCloskey R155 triple deck screen to produce
a sub 12mm and plus 12 sub 22mm product fractions. Approximately 80% of the gold is contained in the sub
22mm fraction, and this size fraction was used as the ore feed to the Wonawinta plant from June 2023 to
December 2023. The Wonawinta plant was recommissioned for this phase of gold processing in June 2023 and
required only minor modifications from its previous phase of leaching silver from the oxide stockpiles.
Operations were stopped during December 2023 to enable the sonic drill evaluation of the main rock dump
to provide grade and ROM feed evaluation data.
As mentioned above, the Company produced gold from screening rock dump and tailings material at the Mt
Boppy ROM from June to December 2023. Bulk sample and sonic drilling evaluation has continued and has
significantly progressed evaluation of the Mt Boppy main waste rock dump, and the low-grade rock dump and
tailings at the TSF3 impoundment12. As at the end of June 2024, a total of 263,667t of waste and ROM material
has been screened. This has generated a total of 175,196t screened material which is <22mm (68.3% of total
material). The grade of the -22mm screened material produced to date is consistent with initial expectations
(1.7 - 1.8g/t Au). Current evaluation shows the processing of these areas together with processing of the
existing open pit to be a viable operational option, subject to capitalising a stand-alone modular gold recovery
plant at Mt. Boppy and sustaining a 4+ year LOM. 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 areas13).
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 would involve a phased cut back on the western wall
of the current pit. Deeper extensions are to be tested by RC and diamond drilling proximal to the pit and along
strike to the south.
Exploration Strategy and Overview
The Company’s exploration strategy to date has focussed on near mine targets at both Mt Boppy and
Wonawinta to develop resources close to existing operations. The Strategic Review completed during January
2023 and advanced during 2024 enables ranking of gold and base metal targets with the emphasis on turning
to account.
12 ASX release dated 25 August 2023
13 ASX release dated 25 August 2023
Manuka Resources Ltd
13
For the year ended 30 June 2024
(Figure 4: MKR Resource Triangle, 30 June 2024)
MKR has continued reviewing and integrating previous exploration and public domain geoscience datasets.
Detailed geophysical reviews were completed on the Canbelego tenements (July 2023) held by the Company
(Figure 5) and a similar study was conducted during August 2023 on the Wonawinta Project tenements (Figure
6) with results 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, the Pipeline Ridge (Au-Cu-Pb-Zn) opencast drill evaluation,
the Mt Boppy Mine deep drilling and extensions to the south for gold and base metal mineralised zones.
Manuka Resources Ltd
14
For the year ended 30 June 2024
(Figure 5: Canbelego EL5482 and Mt Boppy ML’s area of geophysical review, simplified geology and mineral
prospects)
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. The work
programme was put on hold to focus on Mt Boppy, although preliminary bulk sampling has indicated increases
in grade for both screened fines and coarse oversize. McKinnon’s is approximately 50km from the Wonawinta
plant with a shire road connecting the sites.
Manuka Resources Ltd
15
For the year ended 30 June 2024
(Figure 6: Wonawinta and northern exploration targets)
Manuka Resources Ltd
16
For the year ended 30 June 2024
(Figure 7 – Gold exploration targets in the McKinnons mine area, north of Wonawinta)
Manuka Resources Ltd
17
For the year ended 30 June 2024
TARANAKI VTM PROJECT
Manuka holds a 100% interest in the Taranaki VTM Iron Sands Project via its wholly owned subsidiary, TTR.
Located offshore, within New Zealand’s Exclusive Economic Zone (EEZ), the project comprises a 3.2Bt
vanadiferous titanomagnetite (VTM) iron ore resource14 at 10.17% Fe2O3, 0.05% V2O5 (containing 1.6Mt V2O5)
and 1.03% TiO2, ranking it as one of the largest drilled vanadium projects globally. TTR holds granted mineral
mining permit MMP55581 containing 1.88Bt VTM resource and mineral exploration permit MEP54068
containing 1.29Bt VTM resource.
Manuka’s vision, based on the current PFS mine plan, is for a project initially recovering approximately five
million tonnes (Mt) VTM iron ore concentrates a year grading 56-57%Fe, 0.5%V2O5 and 8.5%TiO215.
In March 2024, the recently elected New Zealand government introduced the Fast Track Consenting approvals
bill (the Bill) with the objective of providing a streamlined decision-making process to facilitate the delivery of
natural resource and infrastructure development projects with significant regional or national benefits.
Development of the Bill is part of the coalition agreements between the National, ACT and NZ First parties,
and is a key component of the Government’s first 100 Days Plan.
Submissions on the drafting of the Bill and applications for consideration as a ‘Listed Project’ for inclusion in
the Bill were opened in April. On 19 April 2024 TTR submitted an application for the Taranaki VTM Iron Sands
Project for consideration as a Listed Project under the Fast Track legislation.
An advisory group has been established by the Government to make recommendations to the relevant
Ministers, who will then make decisions on which projects to include in the Bill. These projects will be added
to the Bill either through the Environmental Select Committee process or later in the Parliamentary process.
It’s now anticipated the New Zealand government will reintroduce the Bill to parliament, with the schedule of
Listed Projects, in the fourth quarter of 2024 for its final reading and approval.
The New Zealand government has commissioned international consultants Wood Mackenzie to complete a
critical minerals list by 31 July 2024. The critical minerals list will include minerals that are essential to NZ’s
economy, national security and technology needs and or New Zealand’s international partners and are
susceptible to supply disruptions domestically and internationally. TTR made a submission to Woods
Mackenzie that included iron ore, vanadium and titanium for inclusion in the critical minerals list and the
potential for the development of these mineral resources in New Zealand.
In May the NZ Minister for Resources, Hon Shane Jones, launched a Draft Minerals Strategy for New Zealand16
where he states developing NZ’s minerals sector is one the country’s big opportunities with the aim to double
the sector’s export value to over $2 billion over 10 years. Growth will be underpinned by scaling up existing
exports and realizing new mineral opportunities. One of the key new mineral opportunities identified in the
MBIE Strategy are the offshore deposits of iron sands, containing vanadium and titanium in the STB, 100%
controlled by TTR.
14 ASX release 1 March 2023
15 Refer ASX release dated 1 August 2022
16 A Draft Minerals Strategy for New Zealand to 2040: Ministry of Business, Innovation and Employment (MBIE), May 2024.
Manuka Resources Ltd
18
For the year ended 30 June 2024
The aim is to develop an enduring minerals sector that enhances prosperity for New Zealanders, demonstrates
its value and delivers minerals for the clean energy transition. In line with this initiative the Minister is now
promoting investment opportunities, both domestically and internationally, to increase the scale and pace of
mining investment in the country.
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%
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.
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 USA, Canada, the EU, UK and Australia. 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
19
For the year ended 30 June 2024
Mineral Resource Statements
Open-pit mining operations ceased at Mt Boppy in November 2021. The updated Mt Boppy resource was
released 29th July 202217and the JORC 2012 categorised open pit Resources remain unchanged. JORC
categorised Mineral Resources for Wonawinta were released to the ASX on 1 April 2021.
Mt Boppy Mineral Resource Statement
The Company released a Mt Boppy Gold Project Resource Upgrade in April 2024 showing an increase in
contained ounces. The mineral resource estimate for Mt Boppy follows below:
in situ rock dumps and tailings depositories, with in situ gold grades derived from Sonic drilling, which
included screening +90, -90+22, +10-22, and -10mm size fractions, bottle roll estimation for
amenability to cyanidation on each 1m drill sample and mass % distribution measurements.
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
The updated Mineral Resource estimate was predicated by the initiation of the dump retreatment
programme at Mt Boppy that brought other surface dump material into the mineral resource
inventory. A combination of mechanical bulk sampling and screening enabled positive evaluation of
the Mt Boppy ROM dump, and a mining operation was undertaken over the period May - December
2023. The operation has been on hold since then due to evaluation by sonic drilling of the ~4mt Mt
Boppy rock dump, and evaluation of the viability of a stand-alone operation. This drilling programme
led to an updated Mt Boppy Mineral Resource statement in April 2024. Including hard-rock open pit
and surface dumps, the total Mineral Resources as at 30 June 2024 comprises 4.28Mt at 1.19g/t Au
for 163koz of contained gold.
The open pit mineral resource estimate for Mt Boppy is reported unchanged from July 2022 and locates 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 Classification
Tonnes
Grade
Contained
Contained
kt
g/t Au
koz
%
Measured
107
5.25
18.0
11%
Indicated
3,127
1.16
116.5
71%
M+I Sub Total
3,233
1.29
134.5
82%
Inferred
1,046
0.87
29.4
18%
Total
4,279
1.19
163.9
100%
Table 1 - Mt Boppy Global Resource by Classification at 30 June 2024
17 Refer ASX release dated 29 July 2022
Manuka Resources Ltd
20
For the year ended 30 June 2024
Ore Location
Classification
Tonnes (kt)
Au (g/t)
Au (koz)
In-ground Hard
Rock
Measured
107
5.25
18.0
Indicated
158
4.86
24.7
M & I
265
5.01
42.7
Inferred
17
3.90
2.1
Mt Boppy Open Pit
282
4.95
44.8
Inferred
110
2.39
8.5
Mt Boppy South Pit Shell
110
2.39
8.5
Rock Dumps
Indicated
2,116
0.80
54.3
Inferred
881
0.61
17.2
Total Rock Dumps
2,997
0.74
71.6
Tailings
Indicated
853
1.37
37.5
Inferred
38
1.30
1.6
Total Tailings
891
1.36
39.0
Total
Measured
107
5.25
18.0
Indicated
3,127
1.16
116.5
Total M & I
3,233
1.29
134.5
Inferred
1,046
0.87
29.4
Total Resource
4,279
1.19
163.9
Table 2 - Mt Boppy Global Resource by Location at 30 June 2024
*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 2024 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.
Manuka Resources Ltd
21
For the year ended 30 June 2024
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 2024 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
Material
(Mt)
Ag (g/t)
Ag Moz
Pb (%)
Pb kt
Measured
1.1
47.3
1.65
0.69
7.5
Indicated
12.3
45.5
18.04
0.83
102.8
Inferred
24.9
39.0
31.25
0.39
96.9
Total
38.3
41.3
50.94
0.54
207.2
(Table 5: Resource Estimate reported > 20g/t Ag as at 30 June 2024)
Taranaki VTM Project Mineral Resource Statement
On 1 March 2023 Manuka released a maiden vanadium JORC (2012) Mineral Resource Estimate18 showing an
Indicated & Inferred Mineral Resource of 3.2 billion tonnes (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.
18 Refer ASX release dated 1 March 20223
Manuka Resources Ltd
22
For the year ended 30 June 2024
Zone
Indicated and Inferred Mineral Resources
DTR Concentrate
Inside 12 Nm
(RMA)
Cut-off
Grade
Mt
Fe2O3%
TiO2%
V2O5%
Mt
Fe%
TiO2%
V2O5%
Cook North Block
3.5%
DTR*
274
11.90
1.19
0.06
21
57.19
8.12
0.52
Kupe North Block
3.5%
DTR*
417
11.48
1.21
0.06
31
57.07
8.35
0.51
Tasman North
Block
7.5%
Fe2O3
585
9.02
0.88
0.04
Total VTM Resource RMA
1,275
10.44
1.05
0.05
605
3.01
58.5
Outside 12 Nm
(RMA)
Cut-off
Grade
Mt
Fe2O3%
TiO2%
V2O5%
Mt
Fe%
TiO2%
V2O5%
Cook South Block
3.5%
DTR*
914
10.95
1.12
0.05
63
55.84
8.45
0.50
Kupe South Block
3.5%
DTR*
272
9.76
0.98
0.05
16
56.33
8.43
0.50
Tasman South
Block
7.5%
Fe2O3
695
8.81
0.89
0.04
Total VTM Resource EEZ
1,881
9.99
1.01
0.05
Taranaki VTM Resource Total
3,157
10.17
1.03
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, and Mr Phil
Bentley, who is a Certified Professional by the South African Council for Natural Science Professionals
(“SACNASP”) and is employed by Manuka Resources Ltd. Both Mr Taylor and Mr Bentley have sufficient
experience which is relevant to the style of mineralisation and type of deposit under consideration and to the
activity which they are 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 and
Mr Bentley consent to the inclusion in the report of the matters based on this information in the form and
context in which it appears.
Manuka Resources Ltd
23
For the year ended 30 June 2024
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
24
For the year ended 30 June 2024
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 2024.
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
Mr John Seton
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 29 to 37.
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
Options over
Ordinary
Shares
Mr Dennis Karp
60,212,789
-
Mr Alan Eggers
60,984,043
12,000,000
Mr Anthony McPaul
1,620,944
620,944
Mr John Seton
50,975,544
541,667
Company Secretary details
Ms Eryn Kestel
Company Secretary since 31st May 2024.
Ms Eryn Kestel holds a Bachelor of Business (Accounting) from Curtin University, Western Australia and is a
Certified Practicing Accountant.
Ms Kestel has 30 years professional experience as the company secretary of several ASX listed companies in a
variety of industries together with working with several unlisted entities providing company secretarial and
book-keeping services.
Principal activities
During the period, the principal activities undertaken by the Group were:
Development and Implementation of a program to process mineralised gold material from Mt Boppy (Mt
Boppy Stockpile Reprocessing) including:
Manuka Resources Ltd
25
For the year ended 30 June 2024
o Completion of the bulk sampling phase for evaluation of the project economics
o Completion of a circa 500m sonic drilling programme on the Mt Boppy rock dump, and
evaluation of the viability of retreating this and other tailings dumps at Mt Boppy
o Commissioning of the Wonawinta Plant to commence production of screened Mt Boppy
material
Commencement of screening and gold recovery operations (Mt Boppy Stockpile Reprocessing) from the
Mt Boppy rock dumps and ROM in July 2023
These operations were suspended in February 2024 due to grade variations and high haulage costs
A comprehensive review of all the Company’s exploration prospects in the Cobar Basin
Participation in the NZ government’s Fast-Track Legislation for 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 18 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:
Mt Boppy mineral resource estimate increase19
On 16 April 2024 the Company announced an updated Mineral Resource Estimate, which included the
rock dumps and tailings material on site at Mt Boppy. This followed an in-depth sonic drill program which
was conducted in December 2023, the results of which were delayed due to year-end pressures at the
laboratory. The revised resource estimate brings an additional ~4.0Mt of gold grading material into
resource, paving the way for the assessment of future processing and recovery.
Operating losses caused by Mt Boppy Stockpile Reprocessing
The Company commenced the Mt Boppy Stockpile Reprocessing project in July 2023. This entailed the
screening of gold bearing material from the Mt Boppy ROM and rock dumps to a <22mm size fraction,
followed by the trucking of this material across to Wonawinta for processing and the recovery of gold.
The project started very positively, but the continued impact of grade variability as well as the high
haulage costs of trucking the material 155km between Mt Boppy and Wonawinta generated losses. It is
noteworthy that the gold price in Australian dollars is 30% higher than this time last year. The project
was temporarily suspended in February 2024. Since then, the Company has received the results of a
sonic drill-program providing far greater transparency to the grade profile of the stock pile, as well as
making the commercial decision to relocate a plant at Mt Boppy (therefore removing haulage as a fixed
cost), all targeting a recommencement of operations in Q1 2025.
Commercial decision made to construct a plant at Mt Boppy
Following the Mineral Resource Update and taking into account the prevailing haulage rate for trucking
from Mt Boppy to our Wonawinta processing plant, the Board and Management of Manuka assessed the
business case for constructing a plant at Mt Boppy. There is sufficient material within the Resource to
provide feed supporting a 3.5 to 4.5 year mine plan (depending on plant capacity). Savings on annual
haulage costs alone largely fund the plant construction. This, together with the 30% increase in the price
of gold year on year, plus the fact the site is permitted for a plant, lent itself to a unanimous decision in
favour.
19 Refer ASX announcement dated 16 April 2024
Manuka Resources Ltd
26
For the year ended 30 June 2024
TTR submitted application for consideration as a Listed Project under Fast Track Legislation
In March 2024, the New Zealand government introduced the Fast Track Consenting approvals bill with the
objective of providing a streamlined decision-making process to facilitate the delivery of natural resource
and infrastructure development projects with significant regional or national benefits. Development of
the Bill is part of the coalition agreements between the National, ACT and NZ First parties, and is a key
component of the Government’s first 100 Days Plan. On 19 April 2024 TTR submitted an application for
the Taranaki VTM Iron Sands Project for consideration as a Listed Project under the Fast Track legislation.
It’s now anticipated the New Zealand government will reintroduce the Bill to parliament, with the schedule
of Listed Projects, in the fourth quarter of 2024 for its final reading and approval.
Dividends
No dividends were paid or declared during the financial year ended 30 June 2024 (2023: 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 has again successfully negotiated to extend the term
of the secured debt facility, to 31 January 2025. The extension has been granted on existing terms and
rates with no extension penalties, cash fees or options.
Revised Mt Boppy mine plan released through the ASX
Since the end of the reporting period, the Company has released a presentation updating its Mt Boppy
mine plan. Manuka initially released a presentation through the ASX on 16 April 2024 noting production
of ~48000 ounces gold over 5 years with a combined EBITDA of A$94.8m. This has now been superseded
with a revised total of ~68,000–70,000 ounces of gold produced and a combined EBITDA of ~A$150m over
3-4 years. Production is scheduled to commence in March 2025.
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 Mt Boppy plant is forecast to commence in March 2025
and is forecast to continue for four to five years. This project will make a material difference to the finances
of the Company. Manuka has commenced discussions with a number of parties with the intention of
refinancing the existing secured debt facilities and expects completion before 31 January 2025.
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:
Manuka Resources Ltd
27
For the year ended 30 June 2024
Board Meetings
Board Member
A
B
Dennis Karp
22
20
Alan Eggers
22
21
Anthony McPaul
22
17
John Seton
22
22
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 the Nomination and Audit Committees.
The Remuneration Committee consists of two Non-Executive Directors – Mr McPaul and Mr Seton. Mr McPaul
is the independent Chairman; two discussion meetings were held during the period with Messrs McPaul and
Seton in attendance at both discussions.
Corporate Governance Statement
For the financial year ended 30 June 2024 (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 2024 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 2024 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 2022
30th Sep 2024
$0.163
5,000,000
Dec 2022
31st Dec 2024
$0.35
12,000,000
Dec 2022
16th Dec 2025
$0.17
19,571,419
Dec 2022
15th Dec 2024
$0.115
4,000,000
Mar 2023
31st Mar 2025
$0.0829
4,000,000
Apr 2023
19th Apr 2025
$0.25
2,000,000
June 2023
30th June 2025
$0.06
4,000,000
Nov 2023
17th Nov 2025
$0.0504
10,000,000
Nov 2023
31st Dec 2025
$0.10
25,757,575
Dec 2023
30th Jun 2025
$0.06
1,000,000
Jan 2024
24th Jan 2026
$0.0834
5,000,000
Apr 2024
31st Mar 2026
$0.0821
5,000,000
Jun 2024
30th Jun 2026
$0.06
1,162,611
Jun 2024
3rd April 2027
$0.107
5,000,000
Jun 2024
26th June 2026
$0.0411
5,000,000
Jun 2024
15th May 2026
$0.06
17,488,481
No shares were issued during or since the end of the year as a result of exercise of the options.
Manuka Resources Ltd
28
For the year ended 30 June 2024
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.
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.
Manuka Resources Ltd
29
For the year ended 30 June 2024
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).
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.
Manuka Resources Ltd
30
For the year ended 30 June 2024
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
Mr Anthony McPaul
Mr John Seton
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.
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 Master 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
Manuka Resources Ltd
31
For the year ended 30 June 2024
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.
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.
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)
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
32
For the year ended 30 June 2024
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 11% for the 2024 financial year (2023: 10.5%) payable on earnings up to
the maximum contribution base of $62,270 per quarter (2023: $60,220 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, pending on Company
performance, 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.
2024
2023
2022
2021
Restated **
2020
Restated **
$
$
$
$
$
Revenue and other income
15,195,323
9,899,903
53,271,499
44,544,455
9,468,320
Net profit / (loss)
(18,234,635) (26,342,019)
5,281,420
(3,074,177)
(3,884,45)
Profit / (loss) per share
(cents) *
(2.69)
(6.15)
1.92
(1.19)
(2.80)
Share price
$0.04
$0.05
$0.17
$0.32
n/a
No dividends have been paid during the financial years ended 30 June 2020 to 30 June 2024.
Manuka Resources Ltd
33
For the year ended 30 June 2024
* 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 2020 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 2024 (2023: 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
Share-based Payments
Salary/
Directors Fee
Non-
Monetary
Benefits
Accrual for
Annual and
Long Service
Leave
Superannuation
Equity-settled
Shares
Equity-
settled
Options
Total
$
$
$
$
$
$
$
Directors
Dennis Karp
2024
350,000
-
112,427
27,424
-
-
489,851
2023
350,000
-
27,027
25,292
-
-
402,319
Alan Eggers20
2024
240,000
-
-
-
-
-
240,000
2023
138,998
-
-
-
-
-
138,998
Anthony McPaul21
2024 (i)
-
-
-
-
65,005
7,692
72,697
2023
32,503
-
-
-
32,502
-
65,005
John Seton22
2024 (ii)
32,500
-
-
-
32,500
6,710
71,710
2023
12,654
-
-
-
32,500
-
45,154
Nick Lindsay23
2024
-
-
-
-
-
-
-
2023
27,086
-
-
-
-
-
27,086
Other KMP (Group)
Haydn Lynch
2024
244,708
-
71,057
26,918
-
-
342,683
2023
244,708
-
18,897
25,292
-
-
288,897
Total KMP remuneration
expensed
2024
867,208
-
183,484
54,342
97,505
14,402
1,216,941
2023
805,949
-
45,924
50,584
65,002
-
967,459
20 Director fees for Mr Eggers are paid into a Company nominated by Mr Eggers.
21 Director fees for Mr McPaul are paid into a Company nominated by Mr McPaul.
22 Director fees for Mr Seton are paid into an entity nominated by Mr Seton.
23 Director fees for Mr Lindsay are paid into a Company nominated by Mr Lindsay.
Manuka Resources Ltd
34
For the year ended 30 June 2024
(i)
No cash was paid during the year and no fees were accrued as of 30 June 2024 (2023: $32,502).
$97,507 was paid by the issue of shares during the year comprising directors’ fees of $65,005 for
the current year and $32,502 accrued from the prior year. This was authorised at a shareholder
meeting dated 2 April 2024 at $0.07 per share and 26 June 2024 at 0.06 per share. In line with the
placement, each share issued was accompanied by an option for the shares issued on 26 June
2024.
(ii)
No cash was paid during the year and $32,500 was accrued as of 30 June 2024 (2023: $32,500).
$65,000 was paid by the issue of shares during the year comprising directors’ fees of $32,500 for
the current year and $32,500 accrued from the prior year. This was authorised at a shareholder
meeting dated 02 April 2024 at $0.07 per share and 26 June 2024 at 0.06 per share. In line with
the placement, each share issued was accompanied by an option for the shares issued on 26 June
2024.
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
(b)
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.
Alan Eggers, Executive Director:
(b)
Mr Eggers was appointed Executive Director on 1 February 2023 at an annual consultancy fee of
$240,000 inclusive of any Compulsory Superannuation, exclusive of any GST; and
(c)
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
(b)
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.
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 $65,007 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
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:
Manuka Resources Ltd
35
For the year ended 30 June 2024
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 $45,154 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.
h) Share-based compensation
Shares
On 26 June 2024, Shareholders in General Meeting approved the issue of 1,162,611 fully paid Ordinary Shares
(2023: nil) in lieu of cash payments of Non-Executive Directors fees accrued from December 2023 to June 2024
for Mr McPaul and from July 2023 to December 2023 for Mr Seton.
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.
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.
On 26 June 2024, Shareholders in General Meeting approved the issue of 1,162,611 Unlisted Options (2023:
nil) in lieu of cash payments of Non-Executive Directors fees accrued from December 2023 to June 2024 for
Mr McPaul (620,944 unlisted options) and from July 2023 to December 2023 for Mr Seton (541,667 unlisted
options).
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.
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
Directors
Dennis Karp
a
47,819,932
-
12,392,857
60,212,789
Alan Eggers
60,812,616
-
171,427
60,984,043
Anthony McPaul
b
-
-
1,620,944
1,620,944
John Seton
b, c
49,941,020
-
1,034,524
50,975,544
Other KMP
Haydn Lynch
3,991,629
-
(25,000)
3,966,629
(a) Shares were issued upon conversion of Director related loans to equity.
(b) Shares issued on conversion of Director Fees to equity, approved by Shareholders at 26 June 2024
General Meeting.
(c) Allotment correction by Share Registry (28,571 Shares) on 23 January 2023 but not reflected in the
Appendix 3B issued on 8 April 2024.
Manuka Resources Ltd
36
For the year ended 30 June 2024
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.
Note
Balance at
start of the
year
Granted as
compen-
sation
Other
changes
Balance at
end of the
year
Vested and
exercisable
Unvested
Directors
Dennis Karp
a
500,000
-
(500,000)
-
-
-
Alan Eggers
12,000,000
-
-
12,000,000
12,000,000
-
Anthony McPaul
a, b
300,000
620,944
(300,000)
-
620,944-
-
John Seton
b
-
541,667
-
541,667
541,667
-
Other KMP
Haydn Lynch
-
-
-
-
-
-
(a) Options expired 11 January 2024.
(b) Options were issued on conversion of Director Fees to equity, approved by Shareholders at 26 June
2024 General Meeting.
No options were exercised during the period (2023: Nil). All vested options are exercisable.
Details of options held by Directors are as follows:
Exercise price of 35 cents, expiry 31 December 2024
Directors
# options held
Alan Eggers
12,000,000
Exercise price of 6 cents, expiry 15 May 2026
Directors
# options held
John Seton
541,667
Anthony McPaul
620,944
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 director, 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:
30 June
2024
30 June
2023
$
$
Details of related party transactions with ResCap through
the loan facility:
- interest charged on loan
6,615
186,255
Details of balances with related parties:
Manuka Resources Ltd
37
For the year ended 30 June 2024
Balance of loan with Manuka Resources Ltd
- payable to ResCap Investments Pty Ltd
238,522
1,216,714
Details of related party transactions with Minvest through
the loan facility:
- interest charged on loan
-
17,062
End of audited Remuneration Report
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, RSM Australia Partners, 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 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 2024.
Manuka Resources Ltd
38
For the year ended 30 June 2024
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 30th day of September 2024
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the
members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm
which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
RSM Australia Partners
Level 13, 60 Castlereagh Street
Sydney
NSW 2000
Australia
T +61 (02) 8226 4500
F +61 (02) 8226 4501
rsm.com.au
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Manuka Resources Limited for the year ended 30 June 2024,
I declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
C J Hume
Partner
Sydney, NSW
Dated: 30 September 2024
Manuka Resources Ltd
40
For the year ended 30 June 2024
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
For the year ended 30 June 2024
Notes
30 June
2024
30 June
2023
$
$
Sales revenue
5(a)
15,195,323
9,899,903
Cost of sales
6(a)
(21,938,371)
(24,324,548)
Operating profit
(6,743,048)
(14,424,645)
Other income
5(b)
1,445,945
481,720
Other expenses
6(c)
(5,236,994)
(8,092,485)
Share based payment expenses
6(f)
(399,210)
(21,584)
Foreign exchange gains / (losses)
6(e)
22,864
(544,183)
Profit /(loss) before finance expenses
(10,910,443)
(22,601,177)
Finance expenses
7
(7,324,192)
(3,740,842)
Profit / (loss) before income tax
(18,234,635)
(26,342,019)
Income tax expense
8
-
-
Profit / (loss) for the period attributable to
members of Manuka Resources Limited
(18,234,635)
(26,342,019)
Other comprehensive income / (expense)
(67,273)
40,160
Total comprehensive income / (expense)
(67,273)
40,160
Total comprehensive profit / (loss) for the year
attributable to members of Manuka Resources
Limited
(18,301,908)
(26,301,859)
Profit / (loss) per share for loss attributable to
the ordinary equity holders of the Company
Basic profit /(loss) per share (cents per share)
24
(2.69)
(6.15)
Diluted profit /(loss) per share (cents per
share)24
24
(2.69)
(6.15)
This statement should be read in conjunction with the notes to the financial statements.
24 As the Group made a loss for the year ended 30 June 2024, 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
41
For the year ended 30 June 2024
Consolidated Statement of Financial Position
As of 30 June 2024
Notes
30 June
2024
30 June
2023
$
$
Assets
Current
Cash and cash equivalents
11
2,125,350
265,833
Trade and other receivables
12
14,332
685,660
Inventories
14
226,451
2,307,345
Prepayments
13
54,683
404,429
Other financial assets
19.3
95,565
186,000
Total current assets
2,516,381
3,849,267
Non-current
Mine properties and development assets
15
878,485
638,743
Exploration and evaluation assets
16
36,549,107
35,200,653
Property, plant and equipment
17
14,891,900
15,645,937
Right-of-use asset
18
128,629
233,987
Other financial assets
19.3
6,173,104
5,937,068
Total non-current assets
58,621,225
57,656,388
Total assets
61,137,606
61,505,655
Liabilities
Current
Trade and other payables
20
7,241,172
7,138,892
Provisions
21
308,318
643,823
Contract liabilities
-
968,646
Borrowings
19.2
28,199,863
24,524,576
Lease liabilities
18
141,195
147,233
Current liabilities
35,890,548
33,423,170
Non-current
Provisions
21
8,047,418
7,773,532
Lease liabilities
18
-
111,807
Borrowings
19.2
189,489
255,172
Total non-current liabilities
8,236,907
8,140,511
Total liabilities
44,127,455
41,563,681
Net assets
17,010,151
19,941,974
This statement should be read in conjunction with the notes to the financial statements.
Manuka Resources Ltd
42
For the year ended 30 June 2024
Notes
30 June
2024
30 June
2023
$
$
Equity
Share capital
22
71,396,811
57,038,387
Share based payment reserve
25
5,253,710
4,242,049
Other reserves
(27,113)
40,160
Accumulated losses
(59,613,257)
(41,378,622)
Total equity
17,010,151
19,941,974
This statement should be read in conjunction with the notes to the financial statements.
Manuka Resources Ltd
43
For the year ended 30 June 2024
Consolidated Statement of Changes in Equity
For the year ended 30 June 2024
Notes
Share Capital
Share-
based
payment
reserve
Other
reserves
Accumulated
losses
Total equity
$
$
$
$
Balance at 1 July 2022
25,771,113
2,839,254
-
(15,036,603)
13,573,764
Loss for the period
-
-
-
(26,342,019)
(26,342,019)
Other comprehensive profit
-
-
40,160
-
40,160
Total comprehensive loss
for the period
-
-
40,160
(26,342,019)
(26,301,859)
Contribution of equity
32,164,150
-
-
-
32,164,150
Share based payments
25
66,500
1,402,795
-
-
1,469,295
Share issue costs
(963,376)
-
-
-
(963,376)
Balance at 30 June 2023
57,038,387
4,242,049
40,160
(41,378,622)
19,941,974
Loss for the period
-
-
-
(18,234,635)
(18,234,635)
Other comprehensive loss
-
-
(67,273)
-
(67,273)
Total comprehensive loss
for the period
-
-
(67,273)
(18,234,635)
(18,301,908)
Contribution of equity
11,097,497
-
-
-
11,097,497
Share based payments
25
4,001,061
1,011,661
-
-
5,012,722
Share issue costs
(740,134)
-
-
-
(740,134)
Balance at 30 June 2024
71,396,811
5,253,710
(27,113)
(59,613,257)
17,010,151
This statement should be read in conjunction with the notes to the financial statements.
Manuka Resources Ltd
44
For the year ended 30 June 2024
Consolidated Statement of Cash Flows
For the year ended 30 June 2024
Notes
2024
2023
$
$
Operating activities
Receipts from customers
14,926,361
10,438,991
Payments to suppliers and employees
(22,970,262)
(24,774,078)
Other income
1,415,662
430,356
Finance costs
(601,242)
(615,169)
Net cash from operating activities
23
(7,229,481)
(14,519,900)
Investing activities
Acquisition of property, plant and equipment
(328,694)
(607,782)
Sale of property, plant and equipment
-
301,818
Payments for development and exploration assets
(1,094,023)
(657,949)
Acquisition of other assets
-
(244,133)
Exploration bonds
114,000
-
Security bonds
(23,565)
-
Net cash (used in) investing activities
(1,332,282)
(1,208,046)
Financing activities
Repayments of borrowings
(8,232,067)
12,965,814
Proceeds from borrowings
9,250,838
(4,249,031)
Repayment of lease liabilities
(642,743)
(130,173)
Proceeds from issues of ordinary shares
22.1
10,689,622
6,508,097
Costs of issue of ordinary shares
(644,370)
(261,543)
Net cash from financing activities
10,421,280
14,833,164
Net change in cash and cash equivalents
1,859,517
(894,782)
Cash and cash equivalents, at beginning of the period
265,833
1,160,615
Cash and cash equivalents, at end of period
11
2,125,350
265,833
This statement should be read in conjunction with the notes to the financial statements.
Manuka Resources Ltd
45
For the year ended 30 June 2024
Notes to the Financial Statements
1
Nature of operations and general information and statement of compliance
The principal activities of Manuka Resources Ltd comprise mine development, mining and processing of silver,
gold and exploration activities.
During the first half of the financial year, the Company’s principal activities related to screening and processing
Mt Boppy gold bearing rock dumps and tailings through the Wonawinta plant. This activity was brought to a
close in December 2023, largely due to grade variation and high haulage costs between Mt Boppy and
Wonawinta. Work has been ongoing however, as the Company confirmed the commercial viability of
establishing an on-site plant and gold production facility at Mt Boppy. The 30% increase in the gold price (year
on year) has further added to the business case, as has the ability to substantially reduce the cut-off grade
largely due to the savings in haulage.
In addition, during the period, the Company continued to work towards progressing the approval of Trans-
Tasman Resources Ltd key asset, 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 2024 were approved and authorised for
issue by the Board of Directors on 30 September 2024. 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
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations
issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting
period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
Manuka Resources Ltd
46
For the year ended 30 June 2024
3
Material accounting policy information
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 statements have been prepared on the going concern basis, which contemplates continuity of
normal business activities and the realisation of assets and discharge of liabilities in the normal course of
business.
As disclosed in the financial statements, the group incurred a loss of $18,234,635 and had net cash outflows
from operating activities of $7,229,481 for the year ended 30 June 2024. As at that date the company net
current liabilities of $33,374,167.
These factors indicate a material uncertainty which may cast significant doubt as to whether the Group will
continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the
normal course of business and at the amounts stated in the financial report.
The ability to continue as a going concern is dependent on a number of factors, including:
successful refinancing to replace its existing current debt facilities
raising additional funds in the capital markets
manage the creditor book and long dated creditors, repayment of long dated creditors via the proceeds from
funds from capital raising or debt facilities
the ability of the Group to commence gold production (and by-product silver) profitably and consistently as
planned at Mt Boppy
The Directors believe that there are reasonable grounds to believe that the Group will be able to continue as
a going concern, after consideration of the following factors:
History of success in raising funds in the market, as previously demonstrated with the Placement of
$11,097,498 during current financial year;
History of being able to successfully extend the current debt facilities, noting the facility with TransAsia
Private Capital Limited (as disclosed in Note 19.2) has been successfully extended twice previously;
The level of support extended from key suppliers and creditors to date;
High gold and silver prices which lend themselves to a profitable resumption of production from
material from either the Wonawinta silver project or the Mt Boppy gold project; and
The Group has recently secured a debt extension from TransAsia Private Capital, its senior secured
lender which extends the term of the current debt facility of USD$14 million from 30 September 2024
to 31 January 2025.
Accordingly, the Directors believe that the Group will be able to continue as a going concern and that it is
appropriate to adopt the going concern basis in the preparation of the financial report.
Manuka Resources Ltd
47
For the year ended 30 June 2024
The financial report does not include any adjustments relating to the amounts or classification of recorded
assets or liabilities that might be necessary if the Group does not 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.
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).
3.6
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
48
For the year ended 30 June 2024
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.
3.7
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.
3.8
Operating expenses
Operating expenses are recognised in profit or loss upon utilisation of the service.
3.9
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
49
For the year ended 30 June 2024
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.
3.10 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
Depreciation rate
Freehold land – at cost
not depreciated
Computer Equipment
- Laptops and mobile devices
2 years effective life (50%) – diminishing value
- Other Computer equipment
4 years effective life (25%) - diminishing value
Plant and Equipment
Ball Mill Motor
25 years effective life (4%) - diminishing value
Other Pumps and Motors
20 years effective life (5%) - diminishing value
Generators
10 years effective life (10%) - diminishing value
Other
2-5 years effective life (20% to 50%) - diminishing
value
Processing Plant
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.
3.11 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
50
For the year ended 30 June 2024
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
51
For the year ended 30 June 2024
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 2024.
Manuka Resources Ltd
52
For the year ended 30 June 2024
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).
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.
3.12 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.
3.13 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
an impairment trigger is identified. For the purposes of impairment testing, development assets are allocated
to CGUs to which the development activity relates.
Manuka Resources Ltd
53
For the year ended 30 June 2024
3.14 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.
3.15 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.
3.16 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.
3.17 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.
Manuka Resources Ltd
54
For the year ended 30 June 2024
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.
3.18 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.
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.
3.19 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.
3.20 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.
Manuka Resources Ltd
55
For the year ended 30 June 2024
3.21 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.
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.
Manuka Resources Ltd
56
For the year ended 30 June 2024
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.
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.
4
Segment reporting
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 2024 and 30 June 2023.
Year ended 30 June 2024
Exploration
NZ
Exploration
Australia
Operations
Total
$
Segment revenue (external customers)
-
-
15,195,323
15,195,323
Segment cost of sales
-
-
(21,938,371)
(21,938,371)
Segment operating contribution
-
-
(6,743,048)
(6,743,048)
Other income
-
-
1,445,945
1,445,945
Expenses
(149,395)
(169,878)
(4,917,721)
(5,236,994)
Share based payment expenses
-
-
(399,210)
(399,210)
Foreign exchange gains / losses
-
-
22,864
22,864
Finance income / (expenses)
-
-
(7,324,192)
(7,324,192)
Profit / (loss) before income tax
(149,395)
(169,878)
(17,915,362)
(18,234,635)
Manuka Resources Ltd
57
For the year ended 30 June 2024
Year ended 30 June 2023
Exploration
NZ
Exploration
Australia
Operations
Total $
Segment revenue (external customers)
-
-
9,899,903
9,899,903
Segment cost of sales
-
-
(24,324,548)
(24,324,548)
Segment operating contribution
-
-
(14,424,645)
(14,424,645)
Other income
-
-
481,720
481,720
Expenses
(109,963)
(241,834)
(7,740,688)
(8,092,485)
Share based payment expenses
-
-
(21,584)
(21,584)
Foreign exchange gains / losses
-
-
(544,183)
(544,183)
Finance income / (expenses)
(17,062)
-
(3,723,780)
(3,740,842)
Profit / (loss) before income tax
(127,025)
(241,834)
(25,973,160)
(26,342,019)
The following table presents segment assets and liabilities of operating segments at 30 June 2024
and 30 June 2023.
Segment Assets
Exploration
NZ
Exploration
Australia
Operations
Total
$
As at 30 June 2024
26,219,527
10,329,579
24,588,499
61,137,605
As at 30 June 2023
26,277,212
8,923,441
26,305,002
61,505,655
Segment Liabilities
Exploration
NZ
Exploration
Australia
Operations
Total
$
As at 30 June 2024
-
119,705
44,007,750
44,127,455
As at 30 June 2023
-
67,442
41,496,239
41,563,681
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
Notes
30 June
2024
30 June
2023
$
$
(a) Operating sales revenue
Sale of mineralised ore – gold
14,451,286
1,913,796
Sale of mineralised ore – silver
744,037
7,986,107
Total revenue from contracts with customers
15,195,323
9,899,903
(b) Other income
Income from cash settled hedges
-
120,648
Income from Insurance claims
18,959
227,936
Government grants received
150,000
-
R&D incentive
1,069,801
-
Other income
207,185
133,136
Total other income
1,445,945
481,720
Manuka Resources Ltd
58
For the year ended 30 June 2024
6
Expenses
(a) Cost of sales
30 June
2024
30 June
2023
$
$
Operating expenses
6(b)
20,091,038
24,479,855
Royalties
-
-
Inventory movements
1,847,333
(155,307)
Total cost of sales
21,938,371
24,324,548
(b) Operating expenses
30 June
2024
30 June
2023
$
$
Mining expenses
-
245,699
Hauling and crushing expenses
5,316,512
2,976,766
Processing and refining expenses
10,052,568
16,072,529
Site administration expenses
4,717,111
4,611,089
Amortisation of mine properties
15
4,847
573,772
Total operating expenses
20,091,038
24,479,855
(c) Other expenses
30 June
2024
30 June
2023
$
$
Professional expenses
2,799,948
1,388,695
Employment expenses
6(d)
1,065,297
1,304,417
Depreciation
692,242
270,364
Impairment – development assets
15(a)
-
1,825,705
Impairment – rehabilitation assets
15(b)
-
2,175,877
Other expenses
679,507
1,127,427
Total other expenses
5,236,994
8,092,485
(d) Employment Expenses
30 June
2024
30 June
2023
$
$
Wages and Salaries
902,475
1,149,794
Superannuation
86,758
101,601
Employment taxes
76,064
53,022
Share based payments
-
-
1,065,297
1,304,417
(e) Foreign exchange (gains) and losses
30 June
2024
30 June
2023
$
$
Realised foreign exchange (gains)
81,677
(9,059)
Unrealised foreign exchange (gains) / losses
(104,541)
553,242
Total foreign exchange (gains) / losses
(22,864)
544,183
Manuka Resources Ltd
59
For the year ended 30 June 2024
(f) Share based payment expenses
30 June
2024
30 June
2023
$
$
Share based payment expenses
399,210
21,584
7
Finance costs
30 June
2024
30 June
2023
Finance costs are made up of the following items:
$
$
Interest expense
4,328,871
2,726,448
Amortisation of prepaid borrowing costs
612,452
517,719
Discounting and change of rehabilitation provisions
303,122
(537,310)
Discounting impact of financial assets
238,805
613,292
Other finance costs
1,840,942
420,693
Total finance costs
7,324,192
3,740,842
8
Income tax expense
30 June
2024
30 June
2023
$
$
(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
(18,234,635)
(26,342,019)
Tax at the Australian rate of 30% (2023 : 30%)
(5,470,390)
(7,902,606)
Increase / (decrease) in income tax due to:
Temporary differences
1,961,728
2,779,370
Permanent differences
58,622
1,201,930
Unused tax losses not recognised
3,450,040
3,921,306
Income tax expense
-
-
(c) Tax losses carried forward
Carried forward taxable losses
86,597,428
75,097,294
The Company has no available franking credits.
Potential deferred tax assets attributable to tax losses and other temporary differences have not been brought
to account as at 30 June 2024. 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
60
For the year ended 30 June 2024
9
Auditor remuneration
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:
30 June
2024
30 June
2023
$
$
Audit of financial statements
Ernst & Young - audit and review of financial reports
215,988
163,927
Remuneration from audit of financial statements
215,988
163,927
Other services
-
-
Total other services remuneration
-
-
Total auditor’s remuneration
215,988
163,927
10
Dividends
No dividends for the year ended 30 June 2024 (2023: Nil) have been declared or paid to shareholders by the
Company.
11
Cash and cash equivalents
30 June
2024
30 June
2023
$
$
Cash and cash equivalents comprise the following:
Cash at bank and in hand
2,125,350
265,833
Cash and cash equivalents as shown in the statement of
financial position and the statement of cash flows
2,125,350
265,833
Cash at bank and in hand is non-interest bearing.
12
Trade and other receivables
30 June
2024
30 June
2023
$
$
Current
Trade receivables
3,428
3,300
Other receivables
10,904
682,360
Total trade and other receivables
14,332
685,660
13
Prepayments
Prepayments consist of the following:
30 June
2024
30 June
2023
$
$
Current prepaid insurances
-
241,596
Other prepayments
54,683
162,833
Prepayments at cost
54,683
404,429
Manuka Resources Ltd
61
For the year ended 30 June 2024
14
Inventories
30 June
2024
30 June
2023
$
$
Consumables, supplies and spares
226,451
373,264
Ore concentrate in circuit at cost
(a)
-
1,706,141
Ore stockpiles
-
227,940
Inventories at cost or net realisable value
226,451
2,307,345
(a) Ore concentrate in circuit is measured at cost.
15
Development assets and mine properties
30 June
2024
30 June
2023
$
$
Development assets at cost
197,500
197,500
Impairment of development assets
(a)
-
(182,767)
Accumulated amortisation
(197,500)
(14,733)
Net carrying amount
-
-
Mine properties at cost
7,242,805
9,047,223
Rehabilitation cost estimates
238,805
-
Impairment of mine properties
(a)
-
(1,642,938)
Accumulated amortisation
(6,603,125)
(6,765,542)
Net carrying amount
878,485
638,743
Total development assets and mine properties at cost
7,440,305
9,244,723
Rehabilitation cost estimates
238,805
-
Impairment of mine properties
-
(1,825,705)
Accumulated amortisation
(6,800,625)
(6,780,275)
Total net carrying amount
878,485
638,743
The following tables show the movements in development assets and mine properties:
30 June
2024
30 June
2023
$
$
Development assets
Opening carrying value
-
182,767
Additions at cost
238,805
-
Impairment of development assets
(a)
-
(182,767)
Closing carrying value net of accumulated amortisation
238,805
-
Manuka Resources Ltd
62
For the year ended 30 June 2024
Mine properties
Opening carrying value
638,743
4,189,063
Additions at cost
20,000
-
Transfer from exploration assets
-
192,344
Adjustment to rehabilitation cost estimates
-
649,923
Impairment of rehabilitation asset
(b)
-
(2,175,877)
Impairment of mine properties
(a)
-
(1,642,938)
Amortisation charge for the year
(19,063)
(573,772)
Closing carrying value net of accumulated amortisation
639,680
638,743
Total development assets and mine properties at cost
Opening carrying value
638,743
4,371,830
Additions at cost
258,805
-
Transfer from exploration assets
-
192,344
Adjustment to rehabilitation cost estimates
-
649,923
Impairment of rehabilitation asset
(b)
-
(2,175,877)
Impairment of mine properties and development assets
(a)
-
(1,825,705)
Amortisation charge for the year
(19,063)
(573,772)
Total closing carrying value net of accumulated amortisation
878,485
638,743
During the first half of the period, the Company was focussed on the Mt Boppy gold screening project. This
involved screening of Mt Boppy gold bearing rock dumps and tailings materials. Extensive work was carried
out on the Wonawinta Silver Trial project. This involved screening of Mt Boppy gold bearing rock dumps and
tailings materials. Extensive work was carried out to develop a business case for on-site processing at Mt
Boppy. Additionally, our geology department worked to both bring out a Mt Boppy resource update (released
ASX 16 April 2024) and with the metallurgical team as they improved recoveries for the business case which
gained further traction.
16
Exploration and evaluation assets
Exploration and evaluation costs carried forward in respect of areas of interest:
30 June
2024
30 June
2023
$
$
Exploration assets
Opening net book amount
35,200,653
8,457,839
NZ Exploration assets acquired at cost
(a)
-
26,277,212
Transfer to development assets
755,459
(192,344)
Exploration and evaluation costs during the year
(b)
592,995
657,946
Net book value
36,549,107
35,200,653
(a) During the prior period ended 30 June 2023, the Company acquired the assets and liabilities of Trans-
Tasman Resources Ltd, including the mining and exploration licences and exploration assets in relation to
their Taranaki VTM Iron Sand Project in New Zealand. The project is in preliminary stages of its BFS which
is largely focused on detailed engineering and costing for the integrated mining vessel upon which mining
and processing activities are conducted.
The Group assessed 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
Manuka Resources Ltd
63
For the year ended 30 June 2024
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.
Details of the purchase consideration and the net assets acquired are as follows:
# Shares/options
AUD $’000
Purchase Consideration
Shares issued 10 November 2022
176,938,295
25,656
Options issued 24 November 2022
12,000,000
122
Transaction Costs
225
Total
26,003
The cost of acquisition has been allocated to the acquired assets and liabilities as follows:
AUD $’000
Cash and cash equivalents
2
Prepayments
9
Exploration and evaluation assets
26,208
Trade and other creditors
(216)
Acquisition costs incurred in the prior period were $244,133. The costs were directly attributable to the
issue of shares and have been capitalised.
NZ explorations assets acquired at cost of $AU327,001 in the prior period relates to foreign currency
translation of NZ exploration and evaluation assets.
(b) During the period under review the Company’s geological team has continued to implement in part the
exploration work programmes established from the Company’s Strategic Exploration Review25. Planned
drilling of Pipeline Ridge and Mt Boppy deeps was deferred to early 2024 calendar year. A sonic drilling
program was completed in December 2023 on the Mt Boppy waste dump, the results of which will
progress establishing the viability of future processing. Refer to Note 11.
An updated Mt Boppy Mineral Resources Estimate was released to the market on 25 August 202326.
25 Refer ASX release dated 14 February 2023
26 ASX announcement 25 August 2023
Manuka Resources Ltd
64
For the year ended 30 June 2024
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
$
$
$
$
$
$
Year ended 30 June 2023
Opening net book value
754,994
18,991
14,997,962
38,952
592,211
16,403,110
Additions
-
12,655
568,471
26,656
-
607,782
Disposals
-
-
(224,292)
-
(31,819)
(256,111)
Depreciation
-
(17,734)
(1,018,619)
(11,984)
(63,507)
(1,108,844)
Closing net book value
754,994
16,912
14,323,522
53,624
496,885
15,645,937
Balance 30 June 2023
Cost
754,994
112,841
17,599,141
80,595
774,120
19,321,691
Depreciation
-
(95,929)
(3,275,619)
(26,971)
(277,235)
(3,675,754)
Net book value
754,994
16,912
14,323,522
53,624
496,885
15,645,937
Year ended 30 June 2024
Opening net book value
754,994
16,912
14,323,522
53,624
496,885
15,645,937
Additions
-
5,706
322,988
-
-
328,694
Disposals
-
-
(160,207)
-
-
(160,207)
Depreciation
-
(14,966)
(835,786)
(11,120)
(60,652)
(922,524)
Closing net book value
754,994
7,652
13,650,517
42,504
436,233
14,891,900
Balance 30 June 2024
Cost
754,994
118,547
17,761,922
80,595
774,120
19,490,178
Depreciation
-
(110,895)
(4,111,405)
(38,091)
(337,887)
(4,598,278)
Net book value
754,994
7,652
13,650,517
42,504
436,233
14,891,900
Included within Plant and Equipment is an amount of $321,886 (2023: $160,208) representing costs incurred
on equipment which was not brought to use as at 30 June 2024 and as such represents capital works in
progress.
18
Right-of-use assets and liabilities
Leases
The Group has two lease contracts: the first being for office premises which commenced on 1 March 2022,
has a lease term of three years with no option to extend and a 3.75% rent increase each year; the second being
for a mobile screening plant which commenced on 31 August 2023, has a term of 12 months and an agreed
purchase option at the end of the term.
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.
Manuka Resources Ltd
65
For the year ended 30 June 2024
30 June
2024
30 June
2023
$
$
Rent expenses
-
1,500
Total short-term lease expenses
-
1,500
Set out below are the carrying amounts of right-of-use assets recognised and the movements during
the period.
30 June
2024
30 June
2023
$
$
Balance at start of period
233,987
374,641
Additions
443,513
-
Depreciation
(548,871)
(140,654)
Closing net book value
128,629
233,987
Set out below are the carrying amounts of lease liabilities.
30 June
2024
30 June
2023
$
$
Balance at start of period
259,040
383,941
Additions
443,513
-
Accretion of interest (included in finance expenses)
81,386
40,819
Payments
(642,744)
(165,720)
Closing balance lease liabilities
141,195
259,040
Current
141,195
147,233
Non-current
-
111,807
19
Financial assets and liabilities
19.1 Categories of financial assets and financial liabilities
The carrying amounts of financial assets in each category are as follows:
30 June
2024
30 June
2023
Notes
$
$
Financial assets at amortised cost
Cash and cash equivalents
11
2,125,350
265,833
Trade and other receivables
12
14,332
685,660
Other financial assets
19.3
6,268,669
6,123,068
Total financial assets at amortised cost
8,408,351
7,074,561
Manuka Resources Ltd
66
For the year ended 30 June 2024
The carrying amounts of financial liabilities in each category are as follows:
30 June
2024
30 June
2023
Notes
$
$
Financial liabilities at amortised cost
Trade and other payables
20
7,241,171
7,138,891
Borrowings – Related party loans
19.2(a)
238,522
1,216,715
Borrowings – Senior secured debt facility (net of borrowing costs)
19.2(b)
16,640,542
14,383,355
Working capital facility
19.2(c)
10,770,117
7,841,636
Borrowings – Other loans
19.2(d)
550,682
1,338,042
Lease liabilities
18
141,195
259,040
Total financial liabilities at amortised cost
35,582,229
32,177,679
Total financial liabilities
35,582,229
32,177,679
19.2 Borrowings
Borrowings include the following financial liabilities:
30 June
2024
30 June
2023
$
$
Current
Related party loans
19.2(a)
238,522
1,216,715
Senior secured debt facility (net of borrowing costs)
19.2(b)
16,640,542
14,383,355
Working capital facility
19.2(c)
10,770,116
7,841,636
Other loans
19.2(d)
550,683
1,082,870
Total current borrowings
28,199,863
24,524,576
Non-current
Other loans
19.2(d)
189,489
255,172
Total non-current borrowings
189,489
255,172
Total borrowings
28,389,352
24,779,748
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:
30 June
2024
30 June
2023
$
$
ResCap Investments Pty Ltd
238,522
1,216,715
The loan provided by ResCap Investments Pty Ltd includes the opening balance loan plus working capital
drawn down as well as repayments during the period. ResCap was partly repaid on 29 February 2024 via
the issue of $100,000 worth of shares at 7 cents/share and via the issue of $867,500 worth of shares on
2 April 2024 at 7 cents/share. The loan has an interest rate of 16% and is repayable on 30 September
2024. The principle outstanding at 30 June 2024 was $231,907 with $6,615 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 2024, the
Manuka Resources Ltd
67
For the year ended 30 June 2024
balance owing under the facility was US$8Million plus interest (AU$16,640,542 net of borrowing costs).
The interest rate attributable to this facility is 12.5% per annum payable quarterly, with service and
management fees of 2.5% per annum. During September 2024, the company negotiated a further
extension until 31 January 2025, to facilitate the finalisation of current debt financing activities underway
at the time of signing this report. The extension has been granted on existing terms and rates with no
extension penalties or cash fees.
Details of the unamortised borrowing costs in relation to the Senior Secured Debt Facility is as follows:
30 June
2024
30 June
2023
$
$
Senior secured debt facility
16,841,990
14,626,763
Less: Borrowing Costs
(201,448)
(243,408)
Total senior secured debt facility (net of borrowing costs)
16,640,542
14,383,355
(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 are
repayable within 90 days. The interest rate attributable to this facility is set at the 3 Month Secured
Overnight Financing Rate (SOFR) plus 6% per annum. A facility fee of 4.8% per quarter is payable on
drawdowns under the facility.
(d) During the period the Company had a number of small short-term asset-based funding agreements in
place. The details of outstanding loans at 30 June 2024 are as follows:
30 June
2024
Av. Interest
Rate
$
% p.a.
Expiry date
Short-term loan
485,000
24%
Repayable on refinance of
senior secured debt
Vehicle Finance
42,671
6%
March 2025
Equipment Finance
212,500
11%
December 2027
Total other loans
740,172
19.3 Other financial assets
Notes
30 June
2024
30 June
2023
$
$
Other financial assets comprises the following:
Current assets at amortised cost
Mt Boppy Resources - deposit for exploration bond
72,000
186,000
Security Deposit
23,565
-
Total current other financial assets
95,565
186,000
Non-current assets at amortised cost
Manuka Resources - Deposit for environmental bond
(a)
4,824,610
4,639,792
Mt Boppy Resources – Deposit for environmental bond
(b)
1,177,256
1,132,598
Term Deposit
(a)
171,238
164,678
Total non-current other financial assets
6,173,104
5,937,068
Total other financial assets
6,268,669
6,123,068
Manuka Resources Ltd
68
For the year ended 30 June 2024
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 3.98% (2023: 3.96%). They have been discounted over a 4
year period (2023: 5 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 3.98% (2023: 3.96%). They have been discounted over a 4 year period
(2023: 5 year) which is a reasonable approximation as to when the rehabilitation work will have to be
conducted.
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
30 June
2024
30 June
2023
$
$
Current
Trade creditors
6,902,021
5,845,969
Other creditors and accruals
339,151
1,292,923
Total trade and other payables
7,241,172
7,138,892
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.
Manuka Resources Ltd
69
For the year ended 30 June 2024
21
Provisions
Notes
30 June
2024
30 June
2023
$
$
Current
Provision for annual leave
308,318
643,823
Total current provisions
308,318
643,823
Non-current
Provision for long service leave
68,164
97,400
Rehabilitation provisions
21.1
7,979,254
7,676,132
Total non-current provisions
8,047,418
7,773,532
Total provisions
8,355,736
8,417,355
21.1 Rehabilitation provisions
Rehabilitation provisions split between the parent and subsidiary are as follows:
30 June
2024
30 June
2023
$
$
Rehabilitation provisions
Manuka Resources Ltd (Wonawinta project)
6,823,682
6,634,705
Mt Boppy Resources Ltd
1,155,572
1,041,427
Total rehabilitation provisions
7,979,254
7,676,132
Set out below are the movements of the rehabilitation provision during the period.
30 June
2024
30 June
2023
$
$
Carrying amount at start of year
7,676,132
7,565,403
Re-assessment of provision
-
913,907
Payments
-
-
Net impact of inflation and discounting
303,122
(803,178)
Carrying amount at end of year
7,979,254
7,676,132
Provisions made for rehabilitation are recognised where there is a present obligation as a result of exploration,
development or ground disturbance (project development, mining) 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 dismantling certain plant and equipment , cessation of mining activities,
capping of any tailings dams, profiling waste dumps and restoring the affected areas over a period of time.
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 a schedule of rates provided by the NSW
Resources Regulator in their Rehabilitation Cost Estimation tool as updated from time to time. Future
rehabilitation costs are reviewed periodically, 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 3.8% (2023: 3.0%) and a discount rate of 3.98% (2023: 3.96%) over 4
Manuka Resources Ltd
70
For the year ended 30 June 2024
years (2023: 5 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 3.8% (2023:
3.0%) and a discount rate of 3.98% (2023: 3.96%) over 4 years (2023: 5 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
Equity
22.1 Share capital
Manuka Resources Limited does not have authorised capital nor par value in respect of its share capital,
comprising only of fully paid ordinary shares. Ordinary shares have the right to receive dividends as declared
and, in the event of a winding up, to participate in the proceeds from sale of all surplus assets in proportion
to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote,
either in person or proxy, at meetings of Manuka Resources Limited.
30 June
2024
30 June
2023
30 June
2024
30 June
2023
# Shares
# Shares
$
$
Shares issued and fully paid:
At beginning of period
540,870,062
286,020,381
57,038,387
25,771,113
share issue 10 Nov 2022(a)
-
176,938,295
-
25,656,053
share issue 15 and 22 Dec 2022(b)
-
39,142,856
-
4,110,000
share issue 3 Feb 2023 (c)
-
700,000
-
66,500
share issue 17 April 2023 (d)
-
38,068,530
-
2,398,097
share issue 21 August 2023 (e)
17,250,000
-
862,500
-
share issue 28 August 2023 (f)
3,700,000
-
185,000
-
share issue 28 August 2023 (g)
700,000
-
37,100
-
share issue 07 February 2024 (h)
31,982,642
-
2,238,785
-
share issue 14 February 2024 (i)
4,832,500
-
338,275
-
share issue 22 February 2024 (j)
1,716,639
-
120,165
-
share issue 29 February 2024 (k)
20,575,315
-
1,440,275
-
share issue 08 March 2024 (l)
1,014,285
-
71,000
-
share issue 12 March 2024 (m)
814,286
-
57,000
-
share issue 15 May 2024 (n)
87,639,962
-
5,258,398
-
share issue 17 May 2024 (o)
150,000
-
9,000
-
placement expenses
-
-
(740,134)
(963,376)
conversion of debt to equity (p)
51,033,497
-
3,684,752
-
share funds received 28 June 2024
-
-
480,000
-
conversion to debt 28 June 2024
-
-
316,308
-
Total share capital at end of period
762,279,188
540,870,062
71,396,811
57,038,387
a)
During the prior year, and 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 16(a))
Manuka Resources Ltd
71
For the year ended 30 June 2024
b)
During the prior period 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.
c)
During the prior period and as ratified at a meeting of shareholders on 14 April 202327, 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.
d)
During the prior period 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.
e)
On 21 August 2023 the Company announced a private placement of $862,500 before costs through the issue
of 17,250,000 ordinary shares at an issue price of $0.05, to a very small number of professional and
sophisticated investors, who were made up of clients of the Lead Manager or existing shareholders
participating through their broker with the agreement of the Lead Manager.
f)
On 28 August 2023 the Company announced a private placement of $185,000 before costs through the issue
of 3,700,000 ordinary shares at an issue price of $0.05, to a very small number of professional and
sophisticated investors, who were made up of clients of the Lead Manager or existing shareholders
participating through their broker with the agreement of the Lead Manager.
g)
As ratified at the annual general meeting of shareholders on 16 November 202328, the Company issued the
700,000 Financier Shares for nil cash consideration, at a time when the market value of the shares was $0.053
per share to Claymore Capital Pty Ltd (or its nominee) on 28 August 2023, as consideration for the extension
of the short-term funding agreement.
h)
The Company issued 31,982,642 shares on 7 February 2024 for $2,238,785, as part of a share issue at $0.07.
i)
The Company issued 4,832,500 shares on 14 February 2024 with a value of $338,275, as part of a share issue
at $0.07.
j)
On 22 February 2024 the Company issued 1,716,639 shares to the value of $120,165, linked to a specific
tranche placement at $0.07.
k)
The Company issued 20,575,315 shares on 29 February 2024, raising $1,440,275 (before costs) in this
placement at $0.07.
l)
On 8 March 2024, 1,014,285 shares were issued, raising $71,000 at $0.07.
m) The Company raised $57,000 through the issue of 814,286 shares on 12 March 2024, as part of a new tranche
at $0.07.
n)
87,639,962 shares were issued to various investors on 15 May 2024 in a placement raising $5,258,398 (before
costs) at $0.06.
27 Refer ASX announcement 15 March 2023
28 Refer ASX announcement 16 October 2023
Manuka Resources Ltd
72
For the year ended 30 June 2024
o)
On 17 May 2024 The company issued 150,000 shares, raising $9,000 at $0.06.
p)
During the financial year 51,033,497 shares were issued for $Nil cash consideration at various share prices
ranging from 6 cents to 8.8 cents in payment of the balance of a short-term loan and other debt conversions
totalling $3,684,752 payment.
22.2 Movements in options on issue or granted
Number of Options
2024
2023
Beginning of the financial year
90,705,685
54,016,669
Unexercised options expired 4 March 2023
-
(13,620,002)
Unexercised options expired 8 April 2023
-
(8,046,667)
Unexercised options expired 17 April 2023
-
(11,250,000)
Issued, exercisable at $0.13 on or before 31 December 2023
-
19,034,266
Issued, exercisable at $0.16 on or before 30 September 2024
-
5,000,000
Issued, exercisable at $0.35 on or before 31 December 2024
-
12,000,000
Issued, exercisable at $0.12 on or before 15 December 2024
-
4,000,000
Issued, exercisable at $0.08 on or before 31 March 2025
-
4,000,000
Issued, exercisable at $0.25 on or before 19 April 2025
-
2,000,000
Issued, exercisable at $0.17 on or before 16 December 2025
-
19,571,419
Granted, exercisable at $0.06 on or before 30 June 2025
-
4,000,000
Unexercised options expired 14 July 2023
(10,000,000)
Unexercised options expired 28 July 2023
(5,000,000)
Unexercised options expired 30 September 2023
(5,000,000)
Unexercised options expired 31 December 2023
(19,034,266)
Unexercised options expired 11 January 2024
(300,000)
Unexercised options expired 11 January 2024
(300,000)
Unexercised options expired 11 January 2024
(500,000)
Issued, exercisable at $0.10 on or before 31 December 2025
25,757,575
Issued, exercisable at $0.05 on or before 17 November 2025
10,000,000
Issued, exercisable at $0.06 on or before 30 June 2025
1,000,000
Issued, exercisable at $0.08 on or before 24 January 2026
5,000,000
Issued, exercisable at $0.08 on or before 31 March 2026
5,000,000
Issued, exercisable at $0.11 on or before 3 April 2027
5,000,000
Issued, exercisable at $0.06 on or before 15 May 2026
1,162,611
Granted, exercisable at $0.04 on or before 30 June 2026
5,000,000
End of the financial year
108,491,605
90,705,685
22.3 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.
Manuka Resources Ltd
73
For the year ended 30 June 2024
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.
23
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
2024
30 June
2023
$
$
Cash flows from operating activities
Profit / (loss) for the period
(18,234,635)
(26,342,020)
Adjustments for non-cash items:
•
depreciation and amortisation
1,490,458
1,828,928
•
discounting of provisions and financial assets
(474,841)
75,962
•
impairment of development and rehabilitation assets
-
4,001,582
•
sale of assets (cash and non-cash)
160,208
(51,364)
•
share/option based payments to directors
62,599
-
•
share/option based payments to suppliers and financiers
1,926,064
88,084
•
accretion of interest and finance costs
6,734,350
2,501,039
•
amortisation of borrowing costs
(612,452)
517,719
•
unrealised foreign exchange
(54,032)
553,242
Change in operating assets and liabilities:
•
change in trade and other receivables
271,106
(254,574)
•
change in prepayments
349,746
366,124
•
change in inventories
2,080,894
581,778
•
change in trade, other payables and related party advances
101,319
711,580
•
change in contract liabilities
(968,646)
818,219
•
change in provisions
(61,619)
83,801
Net cash provided by / (used in) operating activities
(7,229,481)
(14,519,900)
(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(a). 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 2024
30 June 2023
# options
$
# options
$
Options issued to finance provider in respect of
financing and extension of financing
•
Borrowings – capitalised finance expenses
•
Finance costs
25,000,000
31,757,575
612,452
384,807
17,000,000
2,000,000
557,648
21,584
Options issued pursuant to share placement
•
Other contributed equity
1,162,611
14,402
38,605,685
701,832
Options granted to lead broker for placement
services
•
Other contributed equity
-
-
-
-
Manuka Resources Ltd
74
For the year ended 30 June 2024
Options granted to Mr Alan Eggers (or his nominee)
as conversion of TTR options
•
Exploration Assets
-
-
12,000,000
121,732
Total Options
57,920,186
1,011,661
69,605,685
1,402,796
24
Earnings / (Loss) per share
30 June
2024
30 June
2023
$
$
Profit / (loss) attributable to the owners of the Company used in calculating
basic and diluted loss per share
(18,234,635)
(26,342,019)
No of shares
No of shares
Weighted average number of ordinary shares used as the denominator in
calculating basic and diluted loss per share *
678,125,728
428,174,803
Cents per share
Cents per share
Basic earnings / (loss) per share
(2.69)
(6.15)
Diluted earnings / (loss) per share
(2.69)
(6.15)
As the Group made a loss for the year ended 30 June 2024, 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.
25
Reserves
25.1 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:
30 June
2024
30 June
2023
Weighted average exercise price (cents)
8
18
Weighted average life of the option (years)
1.7
1.9
Weighted average underlying share price (cents)
5
10
Weighted average expected share price volatility
81%
75%
Weighted average risk free interest rate
4.35%
3.2%
Manuka Resources Ltd
75
For the year ended 30 June 2024
Set out below is a summary of the share-based payment options granted:
30 June 2024
30 June 2023
# Options
Weighted
average exercise
price cents
# Options
Weighted
average exercise
price cents
Beginning of the year
90,705,685
20
54,016,669
37
Granted
57,920,186
8
69,605,685
18
Forfeited
-
-
Exercised
-
-
Expired
(40,134,266)
(22)
(32,916,669)
(42)
Outstanding at year end
108,491,605
14
90,705,685
20
Exercisable at year end
108,491,605
14
90,705,685
20
The weighted average remaining contractual life of share options outstanding at the end of the financial year
was 1.1 years (2023: 1.2 years), and the weighted average exercise price is 14 cents (2023: 20 cents).
During the year, share based payments of $4,001,061 (2023: $66,500) were made to suppliers and directors.
There was an increase in the share option reserve of $1,011,661 (2023: $1,402,795). At 30 June 2024 the total
value of the share based payment reserve is $5,253,710 (2023: $4,242,049).
26
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
76
For the year ended 30 June 2024
At 30 June 2024, the Company held the following financial instruments:
30 June
2024
30 June
2023
Financial assets
$
$
Cash and cash equivalent
2,125,350
265,833
Trade and other receivables
14,332
685,660
Other financial assets
6,268,669
6,123,068
Total financial assets
8,408,351
7,074,561
Financial liabilities
Trade and other payables
7,241,171
7,138,891
Related party loans
238,522
1,216,715
Other interest-bearing loans (net of borrowing costs)
28,150,830
23,563,033
Lease liabilities
141,195
259,040
Total financial liabilities
35,771,718
32,177,679
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 2024 (30 June 2023: 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 2024 the Company had no hedge positions in place
(2023: 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 2024
(2023: Nil). The accounting policy for derivative financial instruments and hedge accounting is outlined at Note
3.20 above.
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.
The Company did not enter into any fair value hedges in 2024. During the prior period, the Company entered
Manuka Resources Ltd
77
For the year ended 30 June 2024
into fair value hedges for 200,000 oz of silver which did not classify for hedge accounting. No amounts were
recognised in the Profit and Loss in 2024 which were settled prior to the end of the period (2023: $120,648).
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.
Maturity Analysis
The table below summarises the maturity profile of the Company’s financial liabilities based on contractual
commitments.
Carrying
Amount
Contractual
Cash flows
< 6 months
6- 12
months
1-3 years
$
$
$
$
$
2024
Non-derivatives
Trade and other payables
7,241,171
7,241,171
7,241,171
-
-
Related party loans
238,522
286,227
19,082
19,082
248,063
Other interest-bearing loans
28,150,830
32,503,549
8,063,888
14,394,302
10,045,359
Lease liabilities
141,195
141,195
113,511
27,684
-
35,771,718
40,172,142
15,437,652
14,441,068
10,293,422
2023
Non-derivatives
Trade and other payables
7,138,891
7,138,891
7,138,891
-
-
Related party loans
1,216,715
1,460,057
97,337
97,337
1,265,383
Other interest-bearing loans
23,563,033
28,310,460
5,979,345
1,992,591
20,338,525
Lease liabilities
259,040
454,288
82,074
83,646
288,568
32,177,679
37,363,696
13,297,647
2,173,574
21,892,476
Manuka Resources Ltd
78
For the year ended 30 June 2024
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 dollars, was as
follows:
30 June
2024
30 June
2023
$
$
Borrowings
27,612,107
22,468,399
The aggregate net foreign exchange gains/losses recognised in profit or loss were:
30 June
2024
30 June
2023
$
$
Net foreign exchange gain / (loss) recognised in profit or
loss
22,864
(544,183)
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).
30 June
2024
30 June
2023
$
$
USD:AUD exchange rate – increase 10%
2,510,192
2,042,582
USD:AUD exchange rate – decrease 10%
(3,068,012)
(2,496,489)
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:
Weighted
average
interest rate
Floating rates
Fixed rates
Non-interest
bearing
Total
$
$
$
$
2024
Financial assets
Cash and cash equivalent
-
-
-
2,125,350
2,125,350
Trade and other receivables
-
-
-
14,332
14,332
Other financial assets
-
-
6,268,669
-
6,268,669
-
6,268,669
2,139,682
8,408,351
Manuka Resources Ltd
79
For the year ended 30 June 2024
Weighted
average
interest rate
Floating rates
Fixed rates
Non-interest
bearing
Total
$
$
$
$
Financial liabilities
Trade and other payables
0%
-
-
7,241,172
7,241,172
Related party loans
16%
-
238,522
-
238,522
Other interest-bearing loans
20%
10,770,116
16,640,542
550,683
27,961,341
Lease liability
14%
-
141,195
-
141,195
10,770,116
17,020,259
7,791,855
35,582,230
2023
Financial assets
Cash and cash equivalent
-
-
-
265,833
265,833
Trade and other receivables
-
-
-
685,660
685,660
Other financial assets
-
-
-
6,123,068
6,123,068
-
-
7,074,561
7,074,561
Financial liabilities
Trade and other payables
0%
-
-
7,138,891
7,138,891
Related party loans
16%
-
1,216,715
-
1,216,715
Other interest-bearing loans
20%
7,505,279
13,355,658
2,702,096
23,563,033
Lease liability
14%
-
259,040
-
259,040
7,505,279
14,831,413
9,840,987
32,177,679
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
2024
Carrying
amount
2023
$
+1%
-1%
$
+1%
-1%
Borrowings at floating interest rate
10,770,116
107,701
(107,701)
7,505,279
75,053
(75,053)
Tax charge at 30% (2023: 30%)
(32,310)
32,310
(22,516)
22,516
Net after tax increase / (decrease)
75,391
(75,391)
52,537
(52,537)
27
Commitments for expenditure
27.1 Tenement Commitments
In order to maintain current rights of tenure to exploration tenements, the Company is required to perform
minimum work commitments over the terms of an exploration licence which includes exploration,
environmental and community consultation in work programmes lodged with the New South Wales
Government on licence renewal. Strict minimum expenditure requirements are no longer the sole criteria for
working and retaining exploration licences in NSW. Extenuating factors may be taken into account for renewal
if limited exploration activities were undertaken.
These obligations are not provided for in the financial report and are payable as follows:
30 June
2024
30 June
2023
$
$
Not later than one year
1,138,667
1,122,667
Between 1 year and 5 years
4,351,333
4,367,333
5,490,000
5,490,000
Manuka Resources Ltd
80
For the year ended 30 June 2024
28
Contingent assets and liabilities
28.1 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 (2023: $200,000) issued by
the National Australia Bank Limited 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.
28.2 Rental bond and office lease guarantee and indemnity
The Company has entered into a Deed of Indemnity 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 2024 was $96,254 (2023: $96,254).
29
Interests in Subsidiaries
Set out below are details of the subsidiaries held directly by the Group:
Proportion of ownership
interests held by the Group
Name of the subsidiary
Place of incorporation and
place of business
Principal activity
30 June
2024
30 June
2023
Mt Boppy Resources Pty Ltd
Australia
Gold Mine
100%
100%
Trans-Tasman Resources Ltd
New Zealand
Owner of iron ore
project
100%
100%
30
Parent Entity Information
Information relating to Manuka Resources Ltd (the Parent Entity):
30 June
2024
30 June
2023
$
$
Current assets
1,755,350
3,722,355
Non-current assets
55,530,183
54,580,313
Total assets
57,285,533
58,302,668
Current liabilities
31,568,620
31,261,610
Non-current liabilities
7,081,334
7,099,084
Total liabilities
38,649,954
38,360,694
Net assets / (deficit)
18,635,579
19,941,974
Share capital
71,396,811
57,038,387
Share based payment reserve
5,253,711
4,242,049
Accumulated losses
(58,014,943)
(41,338,462)
Total equity
18,635,579
19,941,974
Statement of profit or loss and other comprehensive income
Profit / (loss) for the year
(18,016,979)
(26,900,051)
Other comprehensive income / (loss)
-
-
Total comprehensive profit / loss
(18,016,979)
(26,900,051)
The Parent Entity has contingent liabilities at the year end as outlined in Note 28.
Manuka Resources Ltd
81
For the year ended 30 June 2024
31
Related party transactions
31.1 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
2024
30 June
2023
$
$
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
6,615
186,255
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
19.2(a)
238,522
1,216,715
31.2 Transactions with key management personnel
Key management personnel remuneration includes the following expenses:
30 June
2024
30 June
2023
$
$
Short-term employee benefits
1,036,503
851,873
Post-employment benefits
68,531
50,584
Long-term benefits
-
-
Share-based payments
111,907
65,002
Total remuneration
1,216,941
967,459
Detailed remuneration disclosures are provided in the remuneration report on pages 29 to 37.
32
Guarantees and Facilities
At 30 June 2024, the Company and its subsidiaries hold the following guarantees:
Manuka Resources Limited
The Company has a guarantee amounting to $5,515,000 (2023: $5,515,000). This facility is primarily dedicated
to supporting activities related to the Wonawinta Silver Mine, including mine closure rehabilitation and
project-specific financial commitments.
Mt Boppy Resources Pty Ltd (Subsidiary)
Mt Boppy Resources, a subsidiary of Manuka Resources, has a separate guarantee amounting to $1,365,000
(2023: $1,365,000). This facility is primarily dedicated to supporting activities related to the Mt Boppy Gold
Mine, including mine closure rehabilitation and project-specific financial commitments.
Manuka Resources Ltd
82
For the year ended 30 June 2024
These guarantees are currently secured against deposits held by the National Australia Bank Limited.
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 31 January 2025. The extension has been granted on existing terms and rates with
no extension penalties or cash fees.
Mt Boppy Resource Update29
The Company released an updated corporate presentation for the Mt Boppy Gold Project. Key points are
recovered gold of ~89,000 ounces, mine life of 4.5 years, combined EBITDA of A$200m.
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.
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
29 Refer ASX announcement dated 25 August 2023
Manuka Resources Ltd
83
For the year ended 30 June 2024
Consolidated Entity Disclosure Statement
For the year ended 30 June 2024:
Entity Name
Entity Type
Country of
Incorporation
Ownership
Interest %
Tax
residency
Manuka Resources Ltd
Body corporation
Australia
n/a
Australian
Mt Boppy Resources Pty Ltd
Body corporation
Australia
100%
Australian
Trans-Tasman Resources Ltd
Body corporation
New Zealand
100%
New Zealand
Manuka Resources Ltd
84
For the year ended 30 June 2024
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.
Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2024 and of
its performance for the financial year ended on that date; and
ii.
Complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements;
iii.
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
The information disclosed in the attached consolidated entity disclosure statement is true and correct.
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 30th day of September 2024
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the
members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm
which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
RSM Australia Partners
Level 13, 60 Castlereagh Street
Sydney
NSW 2000
Australia
T +61 (02) 8226 4500
F +61 (02) 8226 4501
rsm.com.au
INDEPENDENT AUDITOR’S REPORT
To the Members of Manuka Resources Limited
Qualified Opinion
We have audited the financial report of Manuka Resources Limited (the Company) and its controlled entities
(collectively the Group), which comprises the consolidated statement of financial position as at 30 June 2024, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes
in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial
statements, including material accounting policy information, the consolidated entity disclosure statement and the
directors' declaration.
In our opinion, except for the matter described in the Basis for Qualified Opinion section of our report, the
accompanying financial report of the Company is in accordance with the Corporations Act 2001, including:
(i)
giving a true and fair view of the Group's financial position as at 30 June 2024 and of its financial
performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Qualified Opinion
Included in Note 16 and Note 17 of the financial statements are exploration and development assets and property,
plant and equipment of $36,549,107 and $14,891,900 respectively. As stated in Note 3.2, the ability of the Group
to continue as a going concern and realise the value of these assets is dependent on a number of factors, the
most significant of which is its ability to refinancing its existing current debt facilities and/or, raising additional funds
in the capital markets and managing its long-dated creditors.
We were unable to obtain sufficient appropriate evidence in relation to the carrying amount of these assets at
30 June 2024 as the Group has identified indicators of impairment but does not presently have sufficient
information to determine the recoverable amount. The Group is required to assess the recoverable amount with
reference to a discounted cash flow model, however the mine and production plan to be included in this model
cannot be determined at this time as it is dependent on the Group’s ability to raise additional funds from the capital
markets while continuing to negotiate further loan extensions. Consequently, we were unable to determine
whether any adjustments to these carrying amounts were necessary.
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Group, would be in the same terms if given to the directors as at the time of this auditor’s
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
qualified opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 3.2 in the financial report, which indicates that the Company incurred a net loss of
$18,234,635 during the year ended 30 June 2024 and, as of that date, the Group's current liabilities exceeded its
total assets by $33,374,167. As stated in Note 3.2, these events or conditions, along with other matters as set
forth in Note 3.2, 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 judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
In addition to the matters described in the Material Uncertainty Related to Going Concern section and in the Basis
for Qualified Opinion section, we have determined the matter described below to be the key audit matter to be
communicated in our report.
Key Audit Matter
How our audit addressed this matter
Rehabilitation provisions
Refer to Note 21 in the financial statements
As a result of the Group's past activities, there
is an obligation to rehabilitate and restore mine
sites. As at 30 June 2024, the Group has
brought to account rehabilitation provisions of
$7,979,254.
We considered this to be a key audit matter due
to the significant management judgement and
estimates
involved
in
assessing
the
rehabilitation provisions including:
Determination of costs to be incurred in
future years and its timing;
Complexity
involved
in
the
quantification of the provision based on
areas disturbed; and
The methodology used to calculate the
provision
amount
to
ensure
compliance with Australian Accounting
Standards.
Our audit procedures included, among others:
Obtaining an understanding of the process involved
in the determination of the provisions;
Checking the mathematical accuracy of the model
used to calculate the provisions
Assessing the reasonableness of the inflation rate,
discount rate and timing of the rehabilitation
cashflows assumptions used in the model;
Checking mining activity and evaluating estimated
costs by agreeing inputs used in the provision model
to advice from management's expert;
Ensuring the movement in the provision has been
accounted for in accordance with Australian
Accounting Standards; and
Assessing the appropriateness of the disclosures in
the financial report
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Group's annual report for the year ended 30 June 2024 but does not include the financial report and the
auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, 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:
a. the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001; and
b. the consolidated entity disclosure statement that is true and correct in accordance with the Corporations
Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i.
the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view and is free from material misstatement, whether due to fraud or error; and
ii.
the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether
due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or 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.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf This
description forms part of our auditor's report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 29 to 36 of the directors' report for the year ended
30 June 2024.
In our opinion, the Remuneration Report of Manuka Resources Limited for the year ended 30 June 2024, 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.
C J Hume
Partner
RSM Australia Partners
Sydney, 30 September 2024
Manuka Resources Ltd
89
For the year ended 30 June 2024
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 30 September 2024.
(a) Distribution of equity securities
Analysis of numbers of equity security holders by size of holding:
Ordinary shares
Number of holders
Number of shares
1
-
1,000
130
80,259
1,001
-
5,000
482
1,309,788
5,001
-
10,000
379
3,206,092
10,001
-
100,000
812
30,793,754
100,001
and over
449
744,377,776
2,252
779,767,669
The number of equity security holders holding less than a marketable
parcel of securities are:
1,109
6,062,831
(b) Twenty largest shareholders
Twenty largest quoted equity security holders
The names of the twenty largest holders of quoted ordinary shares are:
Listed ordinary shares
Number of shares
Percentage of
ordinary shares
1
MINVEST SECURITIES
49,375,887
6.33%
2
HSBC CUSTODY NOMINEES
43,220,357
5.54%
3
CITICORP NOMINEES PTY LIMITED
40,928,692
5.25%
4
SOOTHGROVE PTY LTD
35,982,915
4.61%
5
Rosenberg Group
35,871,021
4.60%
6
BUTTONWOOD NOMINEES PTY LTD
35,497,857
4.55%
7
TENNANT METALS SOUTH AFRICA
32,427,194
4.16%
8
S T B OFFSHORE LIMITED
23,900,000
3.07%
9
BNP PARIBAS NOMINEES PTY LTD
20,657,590
2.65%
10
MR ANDREW LOUIS CHARLES BEREND
19,921,055
2.55%
11
SHARESIES AUSTRALIA NOMINEE
17,534,041
2.25%
12
R-CAP RESOURCES GP SA
15,535,526
1.99%
13
BNP PARIBAS NOMINEES PTY LTD
14,369,244
1.84%
14
SPINITE PTY LTD
11,917,297
1.53%
15
MR GEORGE WONG KIM PAU &
10,598,000
1.36%
16
MR ANTANAS GUOGA
10,000,000
1.28%
17
MR NICHOLAS PAUL SIMON
9,841,000
1.26%
18
MR ALAN JOHN EGGERS &
9,836,728
1.26%
19
MR MATTHEW DAVID ROSENBERG
9,506,177
1.22%
20
MR BRETT SAMUEL ROSENBERG
8,442,174
1.08%
455,362,755
58.40%
Manuka Resources Ltd
90
For the year ended 30 June 2024
(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
35,871,021
4.60%
Dennis Karp (including holding of ResCap Investments Pty Ltd)
60,212,789
7.72%
Alan J Eggers
60,984,043
7.82%
John Andrew Gowans Seton
50,975,544
6.54%
(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 30 September 2024
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
Percentage held / earning
Change during period
ML1659
100%
-
EL6482
100%
-
EL7345
100%
-
EL6155
100%
-
EL6302
100%
-
EL7515
100%
-
EL6623
100%
-
EL8498
100%
-
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
Percentage held / earning
Change during period
GL3255
100%
-
GL5836
100%
-
GL5848
100%
-
GL5898
100%
-
ML311
100%
-
ML1681
100%
-
MPL240
100%
-
EL5842
100%
-
Manuka Resources Ltd
91
For the year ended 30 June 2024
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 acquisition30 of TTR comprise one granted mining permit and one granted exploration
permit.
Tenement
Percentage held / earning
Change during period
MMP55581
100%
-
MEP54068
100%
-
(f) Unquoted Securities
At 30 September 2024, the Company had the following unlisted securities on issue:
Holders of 20% or more of the class
Class
Number of
Securities
Number of
Holders
Holder Name
Number of
Securities
$0.16 options, expiring 30/09/2024
5,000,000
1
TA Private Capital Security
Agent Ltd
5,000,000
$0.35 options, expiring 30/09/2024
12,000,000
2
Alan John Eggers
2,403,365
Minvest Securities (New
Zealand) Ltd
9,596,635
$0.12 options, expiring 15/12/2024
4,000,000
1
TA Private Capital Security
Agent Ltd
4,000,000
$0.08 options, expiring 31/03/2025
4,000,000
1
TA Private Capital Security
Agent Ltd
4,000,000
$0.25 options, expiring 19/04/2025
2,000,000
1
Spinite Pty Ltd
2,000,000
$0.17 options, expiring 16/12/2025
19,571,419
60
Citicorp Nominees Pty Ltd
4,761,904
$0.06 options, expiring 30/06/2025
4,000,000
1
TA Private Capital Security
Agent Ltd
4,000,000
$0.10 options, expiring 31/12/2025
25,757,575
1
TENNANT METALS SOUTH
AFRICA
25,757,575
$0.05 options, expiring 17/11/2025
10,000,000
1
TA Private Capital Security
Agent Ltd
10,000,000
$0.08 options, expiring 24/01/2026
5,000,000
1
TA Private Capital Security
Agent Ltd
5,000,000
$0.08 options, expiring 31/03/2026
5,000,000
1
TA Private Capital Security
Agent Ltd
5,000,000
$0.11 options, expiring 03/04/2027
5,000,000
1
BURNVOIR CORPORATE
FINANCE LTD
5,000,000
$0.06 options, expiring 15/05/2026
106,441,054
62
CLAYMORE CAPITAL PTY LTD
Nominated
106,441,054
$0.04 options, expiring 30/06/2026
5,000,000
1
TA Private Capital Security
Agent Ltd
5,000,000
30 ASX disclosure 11 November 2022
Manuka Resources Ltd
92
For the year ended 30 June 2024
(g) Restricted Securities
At 30 September 2024, the Company had the following restricted securities on issue.
Class
Number of Securities
Date escrow period ends
ESCROWED SHARES 18MONTHS FROM ISSUE
-
-
(h) Approach to Corporate Governance
Manuka Resources Ltd ACN 611 963 225 (Company) has established a corporate governance framework in
accordance with 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. Where, after due consideration, the Company's corporate governance
practices depart from a recommendation, the Board has offered full disclosure and reason for the adoption of
its own practice, in compliance with the "if not, why not" regime.
The following governance-related documents can be found on the Company's website at
www.manukaresources.com.au, under the section marked "About Us > Corporate Governance":
Charters
Board
Audit, Risk and Sustainability Committee
Nomination Committee
Remuneration Committee
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 2024 (Reporting Period) the Company has elected to publish its Corporate
Governance Statement on the Company website at www.manukaresources.com.au/site/about/corporate-
governance. The Statement will also be released to the ASX at the same time as this 2024 Annual Report.
Manuka Resources Limited
Level 4, Grafton Bond Building,
201 Kent St, Sydney, NSW Australia, 2000