ANNUAL
REP ORT
FO R THE YEAR ENDED
JUNE 30 2023
METALLICA MINE RALS LTD
2 Metallica Minerals Annual Report | 2023
Table of
CONTENTS
Corporate Directory
Key Events
Chairman’s Letter
Cape Flattery Silica Sand
Silica Sand Market & Demand
Clermont Copper/Gold
Director & Management Profiles
Tenement Table
Top 20 Shareholders
Full year Financial Statements
4
7
8
12
24
28
30
33
34
3
CORPORATE
DIRECTORY
As at 11 October 2023
DI RE CTORS
WEBSITE
Theo Psaros, Executive Chairman
metallicaminerals.com.au
Brad Sampson, Non-Executive Director
Mark Bojanjac, Non-Executive Director
SHARE REGISTRY
MA NAGEMENT
Scott Waddell
Chief Financial Officer and
Company Secretary
Nicholas Villa
General Manager Cape Flattery Silica
Sam Fisher
General Manager, Commercial
Pat Smith
Geology/Exploration Manager
PR IN CIPAL
RE GI STERED OFFIC E
IN AU STRA LIA
Level 1, North Tower, 527 Gregory Terrace,
Fortitude Valley QLD 4006
+ 61 7 3249 3000
admin@metallicaminerals.com.au
Link Market Services
Level 21, 10 Eagle Street
Brisbane QLD 4000
1300 554 474
AUDITOR
Moore Australia Audit (QLD/NSW)
Level 12, 10 Eagle Street
Brisbane QLD 4000
+61 7 3340 3800
LEGAL
HWL Ebsworth
Level 19, 480 Queen Street
Brisbane QLD 4000
+61 7 3002 8700
STOCK EXCHANGE
LISTING
ASX: MLM
AUSTRALIAN
BUSINESS NUMBER
ABN 45 076 696 092
4 Metallica Minerals Annual Report | 2022
METALLICA MINERALS
IS AN AUSTRALIAN
DEVELOPMENT COMPANY
FOCUSED ON DELIVERING
HIGH PURITY SILICA SAND
TO A DIVERSIFIED GLOBAL
CUSTOMER-BASE.
“
“
SUBSIDIARY COMPANIES
Cape Flattery Silica Pty Ltd | ACN: 138 608 894
Greenvale Operations Pty Ltd | ACN: 139 136 708
Lucky Break Operations Pty Ltd | ACN: 126 272 580
NORNICO Pty Ltd | ACN: 065 384 045
PGE Minerals Pty Ltd | ACN: 642 538 805
Phoenix Lime Pty Ltd | ACN: 096 355 761
Touchstone Resources Pty Ltd | ACN: 126 306 018
5
PROJECT LOCATION
6 Metallica Minerals Annual Report | 2023
KEY
EVENTS
August 2022
Turner&Townsend JukesTodd appointed as Definitive
Feasibility Study Manager for the Cape Flattery Silica Sand
Project
25-hole auger program completed west of the Cape
Flattery Silica MLA
MoU signed with Mitsui
Queensland Government confirms Cape Flattery Silica
Project falls within the Cape Flattery Port Area
September 2022 Auger drilling at Cape Flattery Silica Western Areas project
confirms high purity silica
Progressive Rehabilitation Closure Plan (PRCP) Community
Consultation completed for CFS Project
December 2022 Fully Underwritten Rights Issue closes raising $4.5 million
(before costs)
Fully Underwritten placement completed to new and
existing shareholders raising $5.1 million
January 2023
CFS Project deemed a Controlled Action by Federal
Government
March 2023
Maiden Inferred Resource of 12Mt for Cape Flattery Silica
West project
Water bore draw down test completed with positive results
May 2023
Site visit held with representative of Mitsui and Traditional
Landowners
CFS representatives attend the inaugural PV Glass
Manufacturing conference in China’s Anhui Province
June 2023
Mitsui extend 2022 Memorandum of Understanding
Queensland Premier announced Cape Flattery’s inclusion
in the State’s Critical Minerals Strategy
July 2023
Definitive Feasibility Study completed
7
EXECUTIVE CHAIRMAN’S
LETTER
Dear Metallica shareholders
On behalf of the Board of Directors we are pleased to deliver Metallica Mineral’s Annual
Report for the 2023 financial year. Our focus remains on the delivery of high-purity silica
sand (HPSS) from the 100% owned Cape Flattery Silica Sand (CFS) Project. The growing
demand for HPSS to support the photovoltaic (PV) manufacturers and largely the delivery
of solar panels to the world, is the key driver to continue to develop the CFS Project.
Among the many achievements for the CFS Project in 2023, completion of our Definitive
Feasibility Study (DFS) delivered in July 2023 has produced substantive information on the
delivery of the commodity to the export market and importantly, a very positive economic
forecast. Considering the impact of the high inflationary market that is putting pressure on
mining projects, the financial analysis from the DFS provides the impetus to continue to
develop the CFS Project and export HPSS to the growing Asia-Pacific market.
The forecast growth in demand for silica sand, the continued progress of the project and recent
elevation of the importance of Cape Flattery by the Queensland Government have contributed
to interest from international shareholders, potential financiers and offtake partners.
According to the July 2022 International Energy Agency Special Report on solar PV global
supply chains, solar power will be the prominent contributor to the world’s desire to achieve
net zero emissions targets. Metallica Minerals CFS Project will play a role in this pursuit.
CAP E FLATTERY PROJ ECT U PDAT E
The release of the DFS in July 2023 was the culmination of months of analysis and planning
for the CFS Project team to demonstrate that operationally and financially the CFS Project
can mine, process and transport HPSS to the seaborne market. Equally importantly, the
DFS detailed that it can deliver significant economic benefit to shareholders, the local
communities of Hope Vale and Cooktown and complement the Commonwealth and
Queensland governments’ Critical Minerals strategies.
The key financial metrics from the DFS included project cash revenue of A$2.9 billion,
returning pre-tax Net Present Value (nominal NPV10) of A$437.3M and an Internal Rate of
Return (IRR) of 32.2%. Capital cost is estimated to be A$165M with a payback period from
commencement of production of 2.85 years. All production is based on the Ore Reserve of
47 million tonnes (Mt) @ 99.18% SiO₂ (within a Mineral Resource of 49.5Mt @ 99.19% SiO₂,
refer to Tables 1 and 2), to be processed on-site over a 25-year project life yielding HPSS of
1.5Mt per annum. The processed product will have a quality of 99.9% silica and less than
120ppm iron, making it suitable for the manufacture of glass used in solar panel production.
At the time of writing the Annual Report, we have lodged a submission to the Office of
Coordinator General in Queensland, to be considered a Coordinated Project. This submission
seeks approval for up to 4mtpa of production at the CFS Project. While this is a material
8 Metallica Minerals Annual Report | 2023
increase on the forecast production of 1.8mpta used as the basis for the DFS, our current
production target remains at 1.8mpta. The application for up to 4mtpa provides optionality for
the project, subject to capital markets and importantly, demand from potential customers.
At this time, the solution for export of the HPSS is the construction of a purpose-built jetty
(subject to Development Approval) to allow barge loading and transhipping operations.
Importantly, this infrastructure is located within the Port Limit of Cape Flattery and is located to
the north-west of the cape where sea conditions are favourable for barge loading operations.
The CFS project will contribute to and benefit from the Queensland Critical Minerals
Strategy which supports development of ‘new economy’ minerals projects in Far North
Queensland. The Queensland Government is currently considering designating Cape Flattery
as a Critical Mineral Zone. We look forward to continuing to work with the Queensland
Government on this initiative.
In January of this year, the Federal Department of Climate Change, Energy, the Environment
and Water (DCCEEW) has assessed the Project’s Referral and determined that the
CFS Project is a Controlled Action under Section 75 of the Environment Protection
and Biodiversity Conservation Act 1999 (EPBC Act) requiring assessment through an
Environmental Impact Statement (EIS). CFS has also begun the process to apply to the
Queensland Office of the Coordinator-General to be considered a Coordinated Project.
Should this application be successful, an EIS will be undertaken in accordance with the
Bilateral Agreement between the Commonwealth and Queensland governments.
While we await the Coordinator-General’s decision, work on the EIS is underway. EIS level
studies have already been completed on several key components of the CFS Project. When
Terms of Reference for the EIS are finalised, the expected new studies will also begin.
The Company completed the Progressive Rehabilitation and Closure Plan, and this was
presented to the Traditional Landowners. Preparation of a Water Licence is also underway.
Recently, negotiations resumed with the two Native Title holders, Hopevale Congress
Aboriginal Corporation RNTBC Trustee, on behalf of the Nguurruumungu Clan, and
Walmbaar Aboriginal Corporation, on behalf of the Dingaal Clan. Hopevale Congress has
changed many of its Directors, and we had the opportunity to present to the new Board in
January 2023. Meetings have continued with Dingaal and Nguurruumungu clan members
in 2023. Following the challenges Hopevale Congress experienced in the second half of
2022, the first meeting with all three groups together was held in late August 2023, thirteen
months after the last negotiation meeting.
The challenges of seeking a unified response to the outstanding matters has resulted in
Metallica requesting the assistance of the National Native Title Tribunal to mediate among
the Negotiation Parties - being the Dingaal and Nguurruumungu Clans, the State of
Queensland and Metallica’s subsidiary Cape Flattery Silica Pty Ltd - to assist in obtaining
their agreement for the grant of mining lease 100284.
During the period, Metallica executed a Memorandum of Understanding (MOU) with Mitsui
& Co., Limited (“Mitsui”), one of the largest global trading and investment companies based
in Japan. The MOU covers negotiations to evaluate the feasibility and possibility of a sale
and purchase transaction (offtake transaction) of all or specific portions of the silica sand
products that the Company will produce in the future. The MOU was renewed for a further
twelve months to 1 September 2024.
S ILICA SAND GLOBAL DEM AND
The DFS published the pricing and market report prepared by Hong Kong-based marketing
consultant, Prime Gain Limited (PGL), who had contributed a report for the March 2022
Pre-feasibility Study. This report highlighted that the demand for HPSS (which is high-silica,
low-iron silica sand) in Asia, particularly in China, has been growing rapidly over the last
five years, with a Compound Annual Growth Rate (CAGR) of 8.4%. China’s own demand for
imported silica sand has grown even faster at 27.9% CAGR, resulting in a foreseeable supply
9
deficit of 4Mt or more by 2026. The main driving force behind this demand is the increasing
need for PV glass in the solar industry, which relies heavily on supply of HPSS.
Australia has been the dominant supplier of HPSS to Asia-Pacific markets, particularly China,
Japan, Taiwan, and South Korea, with exports totalling 3.9 million metric tonnes in 2022.
HPSS produced at Cape Flattery, in particular, is well positioned to meet this demand due to
its specification, logistics advantages and because it is already a well-recognised product.
As the world shifts towards greener technologies, the demand for HPSS is expected to
continue its exponential growth, driven by the structural transition from fossil fuels to
renewables, particularly solar. China remains the leading global producer of solar glass, with
HPSS making up approximately 72% of every 100kg of PV glass.
As the world transitions towards decarbonisation and net zero emissions by 2050,
the number of countries and households installing rooftop solar is expected to grow
exponentially. Solar PV remains the powerhouse of growth in renewable electricity.
The International Energy Agency’s Special Report noted that reaching net zero by 2050 will
be based largely on renewables, and annual additions of solar PV capacity worldwide need
to more than quadruple by 2030 to reach the target.
As such, global demand for silica sand, particularly premium-quality silica, remains strong
given it is an essential ingredient for the fast-growing solar industry in addition to high-tech
glass applications.
Within Australia, the Federal Government’s 2022 Critical Minerals Strategy, which promotes
investment in the nation’s critical minerals sector, added high-purity silica to the critical
minerals list. This inclusion recognises the quality of silica sand that Australia can contribute
to the goal of net zero emissions.
C LER MON T PROJECT UPDATE
During the year, further work was undertaken on this project and assay results were received
for the extension to diamond drill hole RDD020 drilled on EPM17968 in April and May 2023.
Hole RDD020 was extended by approximately 450 metres to test an intense magnetic low
anomaly observed in the regional airborne magnetic data and confirmed by a close spaced
drone magnetic survey completed in August 2022.
The additional geochemical data from RDD020 in conjunction with data available from
historical holes drilled on the periphery of the magnetic low continues to be assessed. This is
expected to further assist in identifying which part of the mineralised porphyry system has
been intersected, and to aid in recommending further exploration activities.
10 Metallica Minerals Annual Report | 2023
F IN ANCIN G STRATEGY
To continue funding the development of the CFS Project, Metallica
completed a placement and rights issue in December 2022 to raise
A$9.5M. Morgans Corporate Limited acted as Lead Manager and
Underwriter to the Offer. The Offer was supported by Ilwella Pty Ltd,
Sibelco and Deutsche Balaton Group’s investment vehicle, Sparta AG.
Discussions with potential offtake partners in China, Taiwan, Japan and
Korea in addition to Mitsui have continued to progress.
The Company has also held discussions with potential debt and equity
providers in Australia and the United Kingdom. Discussions will be
advanced in 2024 with a Final Investment Decision (FID) on the CFS
Project planned for mid-2025.
We were pleased to finish the 2023 financial year with $7.1M in cash and
no debt.
I would like to thank my fellow Directors, Brad Sampson and Mark
Bojanjac, for their support, strategic thinking and passion for Metallica
and in particular, the CFS Project.
During the year we welcomed highly experienced Commercial General
Manager, Sam Fisher, to the management team. The increased attention
from potential offtake partners is already evident with Sam’s attention
to this crucial aspect of the CFS project’s future. I am fortunate to have
fellow Directors and a management team who understand how a project
can be developed, constructed and operated. This team’s focus has, and
will, deliver future success for development of the CFS Project.
We have also been fortunate to engage with a number of key Queensland
Government representatives from the Office of Coordinator-General,
Department of State Development, Infrastructure, Local Government
and Planning, Department of Resources and the Department of Regional
Development, Manufacturing and Water. Their support and advice have
been greatly appreciated.
On behalf of the Metallica Directors, we thank our many shareholders
for their continued support. As I highlighted at the 2023 Noosa Mining
Investor Conference, our CFS Project is “in the right place, at the
right time, with the right commodity.” Cape Flattery’s HPSS has been
somewhat of a secret. The growing demand suggests our CFS Project
will dispel this secrecy and look to export a very valuable product to a
growing export market seeking solutions to achieving net zero emissions.
Yours faithfully
Theo Psaros
Executive Chairman
11
CAPE FLATTERY
S ILICA SAND – BULK EXPORT
MLM 100% through subsidiary Cape Flattery Silica Pty Ltd
36km2 Exploration Tenure | EPM 25734
The Cape Flattery Silica Sand (CFS) project
is located on the eastern coastline of Cape
York Peninsula and approximately 220km
north of Cairns in North Queensland. The
project is adjacent to the world class Cape
Flattery Silica Sand mining and shipping
operation owned by Mitsubishi.
The Project is located within the Cape
Flattery Port area, which is owned and
operated by Ports North, a Queensland
Government owned corporation. Ports
North owns the jetty which is leased by
Mitsubishi and is located immediately south
of the CFS’s tenement. The jetty’s ship-
loading equipment is owned and operated
by Mitsubishi.
DE F I NI TIVE
F EAS I BILITY STUDY
The Definitive Feasibility Study (DFS) was
the Company’s priority of the year and
was completed in July 2023 (refer to ASX
Release, 17 July 2023). The DFS confirms
potential for a long-life, low operating cost
silica sand project producing high purity
silica sand for use in the manufacture of
solar PV glass and other applications.
Turner&Townsend JukesTodd were
appointed as Study Manager and had
overall responsibility for the management
and delivery of the DFS.
The DFS has built upon the 2022 Pre-
feasibility Study (PFS) (refer ASX release
21 March 2022) and confirms the CFS
Project’s potential as a low-cost, long-life,
high-purity silica sand operation which
could achieve consistently attractive profit
margins given strong current and forecast
market dynamics in the Asia-Pacific region.
The highlights of the DFS are listed below:
» The DFS forecasts life of Project cash
revenue of A$2,910M, returning pre-
tax Net Present Value (nominal NPV10)
of A$437.3M, and an Internal Rate of
Return (IRR) of 32.19%;
» The initial Capital Cost of CFS is
estimated to be $165M (including a
10% contingency of $13.6M) with a
payback period from commencement of
production of 2.85 years. All production
is based on Ore Reserves only (refer
Table 2 – Ore reserves);
» The Ore Reserves of 47Mt @ 99.18% SiO₂
(within a Mineral Resource of 49.5Mt @
99.19% SiO₂, refer to table 4 - Mineral
Resource), are to be processed over a
25-year Project life yielding high-quality
silica sand of 1.5Mt per annum;
» A purpose-built jetty is planned to be
constructed (subject to Development
Approval (DA)) to allow barge
loading and transhipping operations.
Importantly, this infrastructure is located
within the Port Limit of Cape Flattery;
» Development of CFS Project will deliver
employment, apprenticeship training
and new business opportunities to the
Hope Vale and Cooktown communities,
particularly the local Indigenous
communities;
» CFS will contribute to and benefit from
the Queensland Government’s Critical
Minerals Strategy which supports
development of ‘new economy’ minerals
projects in Far North Queensland.
Table 1 summarises the key results of the
DCF model on a pre-tax and post-tax basis.
Table 2 summarises the key sand extraction
and processing metrics and Table 3
presents underlying key assumptions.
12 Metallica Minerals Annual Report | 2023
Figure 1: Cape Flattery Port location and Project proximity
13
Total
$437.3
32.19
$279.9
26.59
36.1
$165.0
2.85
$2,910.1
$1,198.2
$1,679.5
$1,341.0
$33.16
$37.90
Total
49.5
47
25
44.6
36.1
Table 1: Summary of key outcomes – Definitive Feasibility study (A$ — Australian dollars)
mid 2025 AUD
Key Financial Metrics
Pre-Tax Project NPV10 (nominal)
Pre-Tax Project IRR
Post-Tax Project NPV10 (nominal)
Post-Tax Project IRR
Total Silica Sales
Initial Construction CAPEX
Payback (no tax)
LOM Revenue
LOM C1 OPEX (excl Qld Gov’t royalty)
LOM EBITDA
Cash Flow Pre-Tax
C1 Cost/t product
AISC/t product (including sustaining CAPEX)
Unit
AUD m
%
AUD m
%
Tonnes m
AUD m
Years
AUD m
AUD m
AUD m
AUD m
$/prod tonne
$/prod tonne
CAPEX pricing reflects market conditions as of Q2, 2023. The base date of the estimate is then escalated to mid-2025.
Table 2: Key Sand Extraction & Processing Metrics
Mineral Resources (see Table 4)
Ore Reserve
LOM
Sand mined & processed
Silica sand production
Plant operating capacity
Plant yield
Silica sand product sold
Notes
Unit
Tonnes M
Tonnes M
Years
LOM Tonnes M
LOM Tonnes M
Mtpa
%
Mtpa
1.8 - 1.9
77.8 – 84.8%
1.4 - 1.5
»
The Probable Ore Reserve and Measured and Indicated Mineral Resource underpinning the above production assumption
targets has been prepared by a Competent Person in accordance with the requirements of the JORC Code 2012 (refer Table 4 –
Mineral Resources).
Table 3: Discounted cash flow financial model key assumptions
LOM assumptions
Exchange rate
Discount rate (nominal, unleveraged)
Average yield
Average sales price - real 2025
Average sales price - real 2025
Unit
AUD:USD
% p.a.
%
USD/prod t
AUD/prod t
Value
0.72
10.00
81
$57.92
$80.54
14 Metallica Minerals Annual Report | 2023
NAT IVE TI TLE
To date the Company have held six
negotiation meetings with the two Native
Title holders, Hopevale Congress Aboriginal
Corporation RNTBC Trustee, on behalf of
the Nguurruumungu Clan, and Walmbaar
Aboriginal Corporation, on behalf of the
Dingaal Clan.
Hopevale Congress Aboriginal Corporate
(HCAC) had several changes to Directors
throughout the year which prevented the
Company meeting with them until January
2023 to present the project. During the year
communication continued with both Clans.
Throughout the year the Company has
employed members of both clans for site
activities including regular water bore test
work, water bore pump out test work and
hosting prospective investors on site.
All negotiations have been held in a
professional and respectful manner with
significant information on the project being
shared with the negotiating parties from
each clan.
L-R: Mitsui team at Cape Flattery with CFS management and Dingaal and Nguurruumungu
representatives
15
EN VI RON MENTAL
Baseline environmental studies
commenced in 2021 to inform the
appropriate approvals pathway and
strategy with the initial approach being the
pursuit of separate Mining Infrastructure
and Marine Infrastructure approvals. During
the year CFS and our external environment
consultants have continued to complete
the required environmental studies
including soil sampling, ecological studies
and water monitoring.
In December 2022, the Company submitted
a Referral under the Environment
Protection and Biodiversity Conservation
Act 1999 (EPBC Act) for the Cape
Flattery Silica Sand Project. The Federal
Department of Climate Change, Energy,
the Environment and Water (DCCEEW)
assessed the Referral and on 18 January
2023 determined that the CFS project is
a Controlled Action under Section 75 of
the EPBC Act requiring assessment and
approval under the EPBC Act prior to final
approval.
On 20 February 2023, DCCEEW announced
that the assessment will be through an
Environmental Impact Statement (EIS). A
draft Guidelines for the EIS was issued by
DCCEEW in May 2023 and a further draft
of the Guidelines has been issued following
a meeting with DCCEEW in Canberra.
Due to the referral assessment decision
made by DCCEEW, the company has
revised our initial approach to our
approvals strategy and decided to seek a
coordinated assessment approach across
Commonwealth and Queensland legislation
has been taken up.
An application for the Project to be
declared a “Coordinated Project” was
lodged with the Queensland Office of
the Coordinator General in September
2023. Social Impact and Environment
Assessments are being undertaken to
meet a range of regulatory assessment
requirements, including the EIS required
by the Commonwealth using the Bilateral
Agreement.
Should the application for the Project to
be a “Coordinated Project” be successful,
the Project will be assessed under the
State Development and Public Works
Organisation Act 1971 (SDPWO) Act. This
is a coordinated assessment process that
addresses the application, assessment and
notification stages for each approval. At
the conclusion of the Coordinated Project
process, the Coordinator General will
issue an evaluation report that will include
imposed and recommended conditions
for subsequent State Approvals. The
Coordinated Project will also undertake the
assessment and notification requirements
for the EPBC Approval through the
arrangements under the Bilateral Agreement
between the Commonwealth and the State
of Queensland. Whilst the Coordinated
Project process does not have statutory
timing, there are specific milestones and
steps as shown in the below figure.
Pre-lodgement
meeting
Application for
declaration
Project declared
‘coordinated’
Draft terms of
reference for EIS
prepared*
Final terms of
reference issued to
proponent*
Revised draft
EIS/IAR provided
(may be publicly
notified)
Coordinator-General
requests additional
information
(if required)
Coordinator-
General evaluates
draft EIS/IAR &
public submissions
Draft EIS/IAR
publicly released^
Proponent prepares
draft EIS/IAR
Coordinator-
General accepts final
EIS/IAR
Coordinator-
General releases
report on EIS/IAR
Australian
Government
approval
(if required)
Development
approvals
(e.g. material
change of use)
Coordinated Project Key Steps
* Not applicable for projects requiring an IAR.
^ Public release of an IAR in not required in all circumstances
16 Metallica Minerals Annual Report | 2023
WATER A PPLICATION
The CFS Project was designated a Project
of Regional Significance by Queensland’s
Department of Regional Development,
Manufacturing & Water (DRDMW) in
February 2022 and further work is
underway for the formal application to
extract ground water for the planned
sand recovery and processing operations
from the Cape York unallocated strategic
reserve.
A bore draw-down and recharge test
was successfully completed in May 2023.
The results of this work indicate that the
aquifer is easily capable of sustained water
supply to the operation. The draw-down
and recharge rate performed better than
expected and there was no sediment found
in the pumped out water.
Information collected from the test
will form part of a report along with
modelling of the groundwater systems.
This information will accompany the water
licence application.
The Water Licence application is now being
prepared and is expected to be lodged
with DRDMW towards the end of 2023.
Water bore pump out test
17
accordance with the JORC 2012 guidelines.
Ausrocks reviewed the project geology,
assay data and the duplicate sample and
umpire laboratory assay data that Metallica
provided to ensure only valid and relevant
data was used for the MRE and that all
relevant Quality Assurance Quality Control
(QA/QC) checks had been completed.
The most recent Mineral Resource estimate
that Ausrocks developed for the Project is
referenced in the DFS for the Cape Flattery
Project and were to the ASX Release dated
17 July 2023 ‘Cape Flattery Silica DFS
Confirms Excellent Economics”
The various resource categories for the
project area and the hole locations are
presented on figure, the July 2023 resource
estimate is presented in Table 4.
R ES O URCE
Over the past 24 months, Metallica has
completed three drilling programs in the
eastern area on EPM 25734. A total of 144
aircore holes (CFS001 to CFS144) have
been drilled totalling 2,489 meters. The
results from the drilling program have
identified an area within EPM 25734 which
hosts a significant quantity of high-grade
(+99%) silica sand. This area has now
been contained within MLA100284 and is
referred to as the Project area.
Metallica Minerals engaged Ausrocks Pty
Ltd (Ausrocks) to complete a Mineral
Resource Estimate (MRE) for the Project
Area on the completion of each drilling
program. The resource estimate was further
revised in June 2023 for the Definitive
feasibility Study (DFS) after utilising data
from metallurgical studies which identified
what physical and chemical parameters
were required for the silica sand to produce
a product that grades at least 99.9% SiO2
and contains less than 120ppm Fe2O3 after
processing.
Ausrocks is a Brisbane-based resources
consultancy with expertise in industrial
minerals and quarrying. Ausrocks
determined that the drilling density on the
completion of the December 2021 drilling
program was sufficient to classify the
resources contained in the Project Area
as Measured – Indicated and Inferred in
Table 4: Mineral Resource for the Cape Flattery Silica Project
Resource
Category
Silica
Sand Mt
Measured
Indicated
Inferred
Total
16.1
33.2
0.2
49.5
SIO₂
%
99.20
99.05
99.00
99.10
FE₂O₃
%
0.08
0.10
0.12
0.09
TIO₂
%
0.12
0.18
0.27
0.16
LOI
%
0.13
0.15
0.13
0.14
AL₂O₃
%
Density
t/m3
Silica
Sand Mm3
0.22
0.25
0.28
0.24
1.6
1.6
1.6
1.6
10.1
20.7
0.1
30.9
For further details, refer to ASX Release: 7 April 2022: “Significant Increase in Measured and
Indicated Resources at Cape Flattery Silica Project”.
18 Metallica Minerals Annual Report | 2023
Figure 2: Overview of drillholes and Resource Category Areas
Note: *Green: Measured; Orange: Indicated; Red: Inferred
19
sand which has a strong bearing on the
final product specification.
Samples have also been requested
and dispatched to prospective offtake
partners for their evaluation of the silica
sand extracted from the drilling programs
and from the product produced after
processing the bulk sample. The feedback
received from these potential offtake
partners has been positive and indicates
that Metallica can produce a high-quality
saleable product from the CFS project area.
METALLURGI CAL
T E STIN G
Mineral Technologies (MT) have continued
to complete several detailed metallurgical
sample characterisations for the Project,
with the objective of confirming the
product grades that could be produced.
The program, which is on-going, has
demonstrated the ability to produce a
product aligned to the market target purity
of 99.9% Silica and <120ppm Fe2O3.
The most recent phase of bulk testwork
utilises the same flowsheet established
during the PFS. This bulk sample has been
composited as a representative sample
from the first 10 years of operation and
includes both JORC Indicated and JORC
Measured resource. The purpose of this
testwork is to prove that the desired
specification product can be produced
from a representative bulk sample and
produce sufficient product for additional
testing and validation.
Testwork has included rougher spiral
sighter release tests on the MG12 spiral.
The results of the release tests showed
that at a feed grade of 0.05% Fe2O3 and
a spiral feed rate of 2tph, a product yield
of between 77.8% to 84.8% to the rougher
spiral product produced a silica product
with assay results ≤120ppm Fe2O3.
This is the result before the bulk sample
has been processed in subsequent phases
through attritioning, size classification and
Wet High Intensity Magnetic Separators
(WHIMS) stages, where previous
characterisation testwork has always
shown an improvement (reduction) in iron
content. Importantly, a middlings fraction
rejected from the rougher spirals stage
is designed to be added back in to the
product stream after processing through
the scavenger spirals, which is expected to
achieve the aforementioned final product
yields (see Table 2) after full processing has
been achieved.
Additional benchtop studies were
completed on the iron content of the silica
20 Metallica Minerals Annual Report | 2023
21
CAPE FLATTERY
SILICA WEST PROJECT
In August 2022, a 23 hole hand auger
program was completed west of the Cape
Flattery Silica project (ML100284). The
program (WA145 to WA166) see figure 3
comprised of 113m of drilling and was
designed to determine the quality of the
silica sand.
The holes were augured vertically into
individual sand dunes to a maximum depth
of 5m, which was the physical limit that the
auger was capable of drilling. High quality
silica sand was intersected at the base of
twenty-three of the twenty-three holes,
indicating that there is likely to be depth
extensions to the high quality silica sand
mineralisation.
Assay results were received in September
2022 with the majority of the auger holes
intersected clean high purity white silica
sand with low contaminants. The quality
of the sand also appears to increase away
from the coast with the highest grade silica
holes with the lower iron contents located
in the western part of EPM25734.
In December a LiDAR survey was
completed over the Western Area to
obtain detailed topographical data over
Table 5: Cape Flattery Silica West Project
the area which was used to construct a
detailed topographic map of the area. The
resolution of the survey was +/- 50cm.
Processing of the LiDAR data resulted in
detailed Digital Elevation Model (DEM)
being generated which was used to
calculate the volumes of sand dunes. Paired
with the assay data a Maiden Inferred
Resource was announced in March 2023.
The Maiden Inferred Resource of 12Mt
was based on assay data from 23 of the
auger holes. Due to the sporadic nature of
the exposed dunes, the auger holes were
drilled on a 400m x 1,000m spacing.
For resource purposes the resource area
has been subdivided into a “Western Area”
and “Eastern Area”, with the two areas
separated by the Mitsubishi infrastructure
corridor which bisects the EPM. The
resource for the CFS West Project is
summarized in Table 5.
Future work on the Western Areas is
expected to involve a tractor mounted
vacuum rig drilling program to test the
western sands dunes to a depth of greater
than 5m and benchtop metallurgical
testwork to determine the final product
grade than can be achieved after running
the sand through a processing circuit.
Resource Category
Silica
Sand Mt
SIO₂
%
FE₂O₃
%
TIO₂
%
LOI
%
AL₂O₃
%
Density
t/m3
Silica
Sand Mm3
Inferred (East of the ML
Infrastructure Corridor)
Inferred (West of the ML
Infrastructure Corridor)
Inferred Total
7
5
12
99.0
0.09
0.12
0.33
0.16
99.39
0.09
0.21
0.12
0.06
99.15
0.09
0.16
0.24
0.12
1.6
1.6
1.6
5
3
8
For further details, refer to ASX Release: 3 March 2023: “Maiden Inferred Resource of 12Mt estimated
for CFS West”.
22 Metallica Minerals Annual Report | 2023
Figure 3: Overview of drillholes in the western areas
23
S ILICA SAND MARKET
AN D DEMAN D
Continuing on from work undertaken in
the PFS, Metallica engaged Hong Kong-
based marketing consultant, Prime Gain
Limited (PGL), to study the current trends
in demand and pricing for High Purity Silica
Sand (HPSS) for inclusion in the DFS.
The study identifies a significant increase
in demand for seaborne HPSS from
Australia, particularly to Asia and China.
The study also emphasises the key role
that silica sand plays in the production of
photovoltaic (PV) glass and identifies it as
a major long-term driver of the growth in
demand for seaborne silica sand.
The demand for HPSS (high silica low
iron silica sand) in Asia has been growing
rapidly over the last five years, with a
Compound Annual Growth Rate (CAGR)
of 8.4%. China’s own demand for imported
silica sand has grown even faster at 27.9%
CAGR, resulting in a foreseeable supply
deficit of 4 million tonnes in 2026. The
key demand driver is the increasing need
for PV glass in the solar industry, which
requires HPSS for its manufacture.
Australia has been the dominant supplier of
HPSS to Asia Pacific markets, particularly
China, Japan, Taiwan, and South Korea,
with exports totalling 3.9 million tonnes
in 2022. HPSS produced at Cape Flattery
in particular, is well-positioned to meet
this demand due to its specification,
logistics advantages and because, through
Mitsubishi’s long operating history, it is
already a well-recognised product.
As the world shifts towards greener
technologies, the demand for HPSS is
expected to continue its growth, driven by
the structural transition from fossil fuels
to renewables, particularly solar. China
remains the leading global producer of PV
glass, with HPSS making up approximately
72% of every 100kg of PV glass. Discussions
with some of the largest Chinese PV glass
producers, who are also the largest in the
world, indicate aggressive expansion plans
for production of PV glass out to 2030
which will flow through to demand for
HPSS.
In its World Energy Outlook 2022 report,
the International Energy Agency (IEA) laid
out the capacity development path for
renewables in the Net Zero Emissions by
2050 Scenario. Solar PV power capacity by
2030 in the Net Zero Scenario is forecast
to be 5,052 GW. The IEA uses a CAGR of
21.25% in its capacity forecast and estimates
in its “Solar PV Global Supply Chains –
Analysis” report that China is on track to
provide 81.2% of the world’s modules by
2025. PGL estimates that the rest of Asia
will provide an additional 5% by 2025.
Based on this information PGL extrapolated
the annual increase in PV capacity and
China’s attributable proportion of that
output, and from that derived a year-
on-year demand growth for HPSS out to
2026. The results are presented in Table
1 below. Based on discussions with the
top manufacturers of PV glass in China,
PGL believes the IEA has underestimated
the current capacity, and potentially the
projected capacity out to 2030 as well.
Whilst new Australian suppliers are
seeking to enter the market, the level of
supply-demand imbalance by 2026 is
significant, leading to tight supply and
a corresponding increase in the price of
HPSS. The market study provides a pricing
estimate for a high-grade Cape Flattery
silica sand product at FOB USD 54.00 to
USD 65.00 per tonne in 2026, subject to
various market conditions and variables.
Competition for HPSS supply with
Australian suppliers exists primarily from
domestic suppliers in China and seaborne
supply from Indonesia and Malaysia.
However, unless China massively increases
its silica sand acid washing capacity
and efficiency, which is challenging and
environmentally controversial, it will fail to
provide sufficient supply of HPSS.
24 Metallica Minerals Annual Report | 2023
Buyers are expected to continue to seek silica sand suppliers that have sufficient scale of
HPSS product, are able to provide consistent quality and reliable supply with fewer logistics
issues. With the demand for HPSS sand set to continue for the long-term, the CFS product is
very well-positioned to meet this demand.
Table 6: Forecast HPSS demand derived from IEA World Energy Outlook 2022 Net Zero
Emissions by 2050 Scenario
IEA Forecast PV Power Capacity to Silica Sand (Metric Tonnes)
Year
2022
2023
2024
2025
2026
Panels #
510,600,313
619,104,563
750,667,313
910,164,250
1,103,602,438
Sand (Tonnes)
9,584,989
11,621,831
14,091,527
17,085,603
20,716,825
Table 7: Upside Case for Volume Demand—Supply Equation for estimating the 2026
Demand (Deficit)/Surplus volume in Metric Tonnes for high-purity silica sand exported to
buyers in the Asia Pacific Region. Source: Prime Gain Report, May 2023
Volume Demand – Supply Forecast for 2026 (Metric Tones)
Australia CFSM
Australia Existing
Australia New
Malaysia
Indonesia
Vietnam
2022
Current Tonnes
3,060,661
1,155,133
—
1,726,211
904,198
423,627
Total Supply From Majors
7,269,800
China
Japan
Taiwan
S Korea
Thailand
Total Demand From
Majors
3,861,405
1,070,731
1,490,699
927,309
215,748
7,565,892
Demand (Deficit)/Surplus
(296,092)
Metric
Flat
CAGR 6.37%
CFS + Others
CAGR 11.5%
CAGR 11.5%
CAGR -7.86%
CAGR 27.9%
CAGR -1.38%
CAGR 0.76%
CAGR -2.20%
CAGR 35.88%
2026
Projected Tonnes
3,060,661
1,478,618
1,500,000
2,668,228
1,397,631
305,326
10,410,464
10,278,014
1,012,699
1,536,536
848,235
735,398
14,410,882
(4,000,418)
In short, the forecast demand growth for HPSS is underpinned by long-term global growth
drivers, including the shift towards renewable energy and the transition away from fossil
fuels. Solar power generation is a key driver of demand for HPSS, as it is an essential
ingredient in the production of PV glass. With solar energy projected to experience
immense multi-decade growth, the corresponding demand for HPSS is directly correlated
and expected to continue to escalate correspondingly.
25
S ILICA SAND USES
AN D F UTURE DEMA ND
Silica sand is the key ingredient in glass
making with high purity silica sand an
essential raw material for the production of
hi-tech glass.
Growing Markets:
» Solar PV glass for use in solar panels
» Building Integrated PV glass and e-glass
Other
4%
Abrasives
5%
Filtration
10%
Hydraulic
Fracturing
18%
Glass Industry
37%
» Smartphones
» Fibre optics
» Tablets
» LED lighting
The global silica sand market reached
US$22.9 Billion in 2022.
IMARC Group expects the market to reach
US$32.1 Billion by 2028, exhibiting a growth
rate (CAGR) of 5.6% during 2023-2028.
Foundry
26%
Silica Sand Market - Growth Rate by Region, 2022-2027
Silica Sand Market - Growth rate by region
2022-2027
Source: https://www.imarcgroup.com/silica-sand-
manufacturing-plant
Silica Sand Market - Growth Rate by Region 2022-2027
High
Medium
Low
Source: Mordor Intelligence
Asia Pacific silica production by end use
26 Metallica Minerals Annual Report | 2023
CAP E FLATTERY’S
PATHWAY TO NET
ZE RO
The International Energy Agency (IEA)
highlights reaching net zero by 2050 will
be based largely on renewables, with solar
power as the single biggest supply source.
IEA report states the pathway to net zero
requires annual additions of solar PV to
reach 630 gigawatts and wind power to
reach 390 gigawatts by 2030.*
Together this is four-times the record level
achieved in 2020.
For solar PV, this means installing the
world’s current largest solar park roughly
every day.
*IEA, 2021: https://iea.blob.core.windows.
net/assets/4719e321-6d3d-41a2-
bd6b-461ad2f850a8/NetZeroby2050-
ARoadmapfortheGlobalEnergySector.pdf
Cape Flattery’s 1.35 Mtpa production of
high-quality Silica sand could produce over
133 million 375W solar panels on the basis
of 74% of the panel is comprised of SiO2.
That’s equivalent to 3.35 billion panels over
a 25 year mine life at full production.
With an assumed output of 4.0 kWh/day,
those panels have the potential to generate
over 41,312 TWh of renewable energy over
their operating life (25 years).
*Detailed analysis of energy production and emissions
abatement opportunity carried out by Arche Energy using
information derived from third parties, heuristics and
assumptions.
27
CLERMONT
CO P PER GOLD
MLM 51% through subsidiary PGE Minerals Pty Ltd | 248Km2 Exploration Tenure | EPM 17968
In August 2021, MLM announced it had
signed a Memorandum of Understanding
(MoU) with Diatreme Resources for a
potential Joint Venture on the Clermont Gold
Copper Project which comprises EPM 17968.
After a review of the historical exploration
data for the Clermont tenement, MLM
identified an intense magnetic low
feature on Hillview Station which had
coincident copper, gold and molybdenum
geochemistry and postulated that the
magnetic low feature could possibly be a
buried copper – gold porphyry system.
In May 2021, MLM completed two hole
diamond (RDD019 and 0202) at Clermont,
with the holes drilled to test the intense
magnetic low anomaly, which was modelled
at a depth to top of between 300m to
500m. Both holes intersected porphyry
style alteration and mineralisation but not in
economic quantities, and further magnetic,
geochemical and petrological studies from
the data obtained from the two diamond
drill holes indicated that the magnetic target
had not been adequately tested.
On the completion of the two diamond
holes MLM confirmed that the company had
met the expenditure commitment to earn
25% of the project. In addition, based on
the presence of porphyry style alteration
and mineralisation in the two holes, MLM
elected to move to the second stage of
the earn in phase of the JV agreement and
increase the company’s share to 51% of the
project through an additional $700,000
spent on exploration activity completed
prior to 1 July 2023.
In March 2023, MLM increased the depth
of Hole RDD020 from 501.30m to 951.50m
in order to test the intense magnetic
low / potential porphyry intrusive. Hole
RDD020 was terminated at 951.5m
after intersecting a variably altered and
mineralised quartz-monzonite porphyry.
However, the mineralisation intersected was
confined to fracture surfaces and narrow
(1cm) quartz veins, with the best recorded
intercept being 1m at 0.41% Cu, 0.62g/t Au
and 228ppm Mo from a zone of intense
alteration at 789m.
The depth extension to hole RDD020
did not explain the intense magnetic low
with the magnetic susceptibility readings
remaining constant down the hole, however
the drill hole trace through the modelled
anomaly indicates the magnetic low and
therefore the porphyry target was tested,
Figure 4).
Further geochemical and geophysical
studies will be undertaken at Clermont
to determine if the progenitor intrusive
responsible for the mineralisation in hole
RDD020 can be identified and if the
potential for a mineralised porphyry still
exists within the tenement. In addition to
this work, a review of the other prospect
areas within EPM17968 will be undertaken
to determine if there are other areas of
interest which may have the potential to
host significant levels of mineralisation.
28 Metallica Minerals Annual Report | 2023
Figure 4: Idealised cross Section through modelled magnetic low
showing drill Hole trace RDD0202 and copper in ppm
29
DIRECTOR AND
MANAGEMENT PROFILES
T H EO PSAROS
BRAD SAMPSON
Executive Chairman
Non-Executive Director
Theo Psaros has over 38 years of diverse
global and local commercial experience in a
number of business sectors and industries
within multi-million dollar publicly listed
companies, private companies and
government departments. Theo’s resource
industry experience included a number of
years as Chief Financial Officer and Chief
Operating Officer of MetroCoal Limited,
Chairman of the Surat Basin Coal Alliance
and a member of the industry group that
assisted with the Queensland Government
Department of Natural Resources & Mines
to prepare the 30-year strategic plan for
the resources industry in Queensland
(ResourcesQ).
Theo joined the board of Metallica Minerals
as Non-Executive Chairman on 1 February
2019 and was appointed as Executive
Chairman on 21 May 2020.
Brad Sampson is a Brisbane based
internationally experienced business leader,
Director and mining professional with more
than 30 years resources industry experience.
He brings significant mine development and
operating experience to the Metallica Board
along with listed company governance
experience across multiple international
jurisdictions. Brad has experienced all
aspects of mining operations, having
worked in leadership roles through the
entire cycle of exploration, development,
operations and closure.
Brad joined the board of Metallica Minerals
as Non-Executive Director on 13 May 2021.
30 Metallica Minerals Annual Report | 2023
MA RK BOJA NJAC
SCOTT WADDELL
Non-Executive Director
Chief Financial Officer and Company
Mark Bojanjac is a Perth based company
Director with more than 20 years of
significant experience in ASX resource
companies including those that have taken
exploration projects into production. He
is currently Executive Chairman of PolarX
Limited (ASX: PXX), Non-executive Director
of Kula Gold Limited (ASX: KGD). He was
previously Non-executive Director and later
Managing Director of Adamus Resources
leading the transition of the company to a
gold producer.
Mark joined the board of Metallica Minerals
as Non-Executive Director on 13 May 2021.
Secretary
Scott Waddell’s resources experience was
gained from eight (8) years with Metro
Mining Limited and Cape Alumina Limited,
nine (9) years with Anglo Coal and eight
(8) years with Rio Tinto Alcan (RTA). This
included direct mine site experience of 8
years. Roles included Interim CEO at Cape
Alumina, CFO and Company Secretary for
Metro Mining Limited and Cape Alumina
Limited, Head of Finance for the Monash
Energy project in Victoria’s La Trobe Valley,
as well as being a director of the CO2CRC
Otway Pilot Project and chairman of the
audit committee, Business Development
Manager as well as a number of finance and
corporate roles.
Scott joined the Board of Metallica Minerals
as Executive Director on 1 February 2019
and resigned from his Executive Director
role on 31 August 2021. Scott has continued
with the Company as Chief Financial Officer
and Company Secretary since this date.
31
NI CH OLAS VILLA
SAM FISHER
General Manager Cape Flattery Silica
General Manager Commercial
Nicholas has over 20 years’ experience as a
Mining Professional, he is well practiced in
the delivery of resource projects, taking them
from early exploration phase through to
production.
Sam has a wealth of global experience
developed over a career of more than 25
years working in dry bulk commodities
marketing, infrastructure and logistics from
strategy through to execution.
He has held senior leadership positions
at New Hope Corporation and spent
approximately 15 years working at BHP in
a range of roles and locations in Australia,
Singapore and the Netherlands.
Over the past 10 years he has been focused
mainly on Asian markets with a strong
focus on business development.
Sam joined Metallica Minerals on 17
October 2022.
Nicholas has managed bulk commodity
operations both as Principal and as
Contractor, fulfilling senior management roles
including Mining Manager, Project Manager
and Site Senior Executive. Developing his
experience in a wide range of commodities
and operations across Australia, Nicholas
cultivated his knowledge in as many areas as
the resource industry afforded him during his
career including Engineering, Maintenance,
Survey, Geology and Construction.
As part of this experience, Nicholas has had
comprehensive managerial involvement in
large scale mobilisation of mining fleets,
preceded by in depth investigation and
establishment of facilities and personnel to
match operational demand.
Thoroughly versed in Queensland resource
project approvals processes including
Environmental Studies and Native Title
negotiations, Nicholas was Project Manager
for the team that successfully delivered
Metro Mining’s Bauxite Hills mine to full
production in Northern Cape York. This
was comprised of both mining and marine
elements, situated in a remote location with
complex logistics.
Holding an Honours Degree in Geology, as
well as a Diploma in Project Management,
Nicholas is a long-term Member of the
Australian Institute of Geoscientists. Nicholas
joined Metallica Minerals on the 14th of June,
2021 with the purpose of delivering yet
another successful operation in Northern
Queensland.
32 Metallica Minerals Annual Report | 2023
PAT S MITH
Exploration Manager
Patrick Smith has over 30 years experience
as an exploration geologist, with the last
15 years being in senior roles either as an
Exploration Manager or Country Manager.
He has an MSc in Mining Geology from
Cambourne School of Mines in the UK and
an MBA from QUT in Australia.
He has experience exploring for various
commodities over his career including
Gold - Copper exploration in Australia, the
Middle East and the Pacific region, nickel,
cobalt and scandium in Australia and tin
– tantalum and lithium in Africa. Other
commodities he has explored for include,
heavy mineral sands, and more recently
silica sands.
He has designed and implement numerous
drilling programs over his career which
have led to the delineation of significant
resources and is familiar with most
aspects of tenement administration and
management especially in Queensland and
PNG. He has specialised in leading small
efficient exploration teams but has also
managed large exploration camps.
IN TE REST I N MINING TENEMENTS
This section provides information required under ASX listing rule 5.3.3 for mineral
exploration entities.
State Tenement Name Tenement ID Status
Location
Interest Holder
QLD Cape Flattery
Silica
QLD Cape Flattery
Silica
EPM 25734
Granted
Cape
Flattery
100%
ML 100284
Application Cape
100%
Flattery
QLD Clermont
EPM 17968
Granted
Clermont
51%
Copper Gold
Cape Flattery
Silica P/L
Cape Flattery
Silica P/L
PGE Minerals
P/L
33
TOP 20 SHAREHOLDERS
AS AT 3 OCTOBER 2023
Rank Name
# of Shares
%IC
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
238,906,550
24.89
SIBELCO ASIA PACIFIC PTY LTD
148,399,617
15.46
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
SPARTA AG
DOSTAL NOMINEES PTY LTD
ROOKHARP CAPITAL PTY LIMITED
CITICORP NOMINEES PTY LIMITED
PLAN-1 PTY LTD
GEFRATO TRADING PTY LTD
SHADBOLT FUTURE FUND (TOTTENHAM) PTY LTD
SOPHJAK PTY LTD
GOUSSE HOLDINGS PTY LTD
SIBELCO ASIA PACIFIC PTY LTD
MACFORBES SUPER PTY LTD
CAROJON PTY LTD
MR GRAHAM RAYMOND WILLIAM DOW
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
BONDLINE LIMITED
MR DAVID GAZE
AZQ INVESTMENTS PTY LTD
92,046,350
29,359,998
24,680,450
13,677,922
10,212,501
10,047,368
8,190,000
7,026,315
6,641,400
5,791,954
5,447,368
5,000,000
5,000,000
4,933,096
4,910,966
4,785,187
4,410,934
4,250,000
9.59
3.06
2.57
1.42
1.06
1.05
0.85
0.73
0.69
0.60
0.57
0.52
0.52
0.51
0.51
0.50
0.46
0.44
20
NO BULL HEALTH PTY LTD
Total
633,717,976
66.02
Balance of register
326,205,946
33.98
Grand total
959,923,922
100.00
34 Metallica Minerals Annual Report | 2023
COMPET EN T P E RS ON STATE MEN T
CAPE FL ATTE RY SIL ICA SA ND R ES O U RC E
The information in this report that relates to the Cape Flattery Silica Project – Eastern Resource Area is based on
information and modelling carried out by Chris Ainslie, Project Engineer, who is a full-time employee of Ausrocks Pty
Ltd and a Member of the Australasian Institute of Mining & Metallurgy. The work was supervised by Mr Carl Morandy,
Mining Engineer who is Managing Director of Ausrocks Pty Ltd and a Member of the Australasian Institute of Mining
& Metallurgy and also by Mr Brice Mutton who is a Senior Associate Geologist for Ausrocks Pty Ltd. Mr Mutton is a
Fellow of the Australasian Institute of Mining & Metallurgy and a Fellow of the Australian Institute of Geoscientists.
Mr Morandy and Mr Ainslie and Mr Mutton are employed by Ausrocks Pty Ltd who have been engaged by Metallica
Minerals Ltd to prepare this independent report, there is no conflict of interest between the parties. Mr Morandy, Mr
Ainslie and Mutton consent to the disclosure of information in the form and context in which it appears in this report.
The overall resource work for the Cape Flattery Silica Project – Eastern Resource Area is based on the direction and
supervision of Mr Mutton who has sufficient experience that is relevant to the style of mineralisation and type of
deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the
2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.
CAPE FL ATTE RY SIL ICA SA ND E XPLO RATI O N RE S ULTS
The information in this report that relates to the Exploration Sampling and Exploration Results is based on
information compiled by Mr Patrick Smith, a Competent Person who is a Member of the Australasian Institute of
Mining and Metallurgy.
Mr Smith is the owner and sole Director of PSGS Pty Ltd and is contracted to Metallica Minerals as their Exploration
Manager. Mr Smith confirms there is no potential for a conflict of interest in acting as the Competent Person.
Mr Smith has sufficient experience that is relevant to the style of mineralisation and type of deposits under
consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition
of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Smith
consents to the inclusion of this information in the form and context in which it appears in this release/report.
FORWARD LO O KING STATEM ENT
Forward-looking statements are based on assumptions regarding Metallica, business strategies, plans and objectives
of the Company for future operations and development and the environment in which Metallica may operate.
Forward-looking statements are based on current views, expectations and beliefs as at the date they are expressed
and which are subject to various risks and uncertainties. Actual results, performance or achievements of Metallica
could be materially different from those expressed in, or implied by, these forward-looking statements. The
forward-looking statements contained in this presentation are not guarantees or assurances of future performance
and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of
Metallica, which may cause the actual results, performance or achievements of Metallica to differ materially from
those expressed or implied by the forward-looking statements. For example, the factors that are likely to affect the
results of Metallica include general economic conditions in Australia and globally; ability for Metallica to funds its
activities; exchange rates; production levels or rates; demand for Metallica’s products, competition in the markets in
which Metallica does and will operate; and the inherent regulatory risks in the businesses of Metallica. Given these
uncertainties, readers are cautioned to not place undue reliance on such forward-looking statements.
ASX ANN OUN C EM EN TS C IT ED
The following ASX Announcements are cited in this report
1. See ASX Release 17 July 2023 “Cape Flattery Silica Definitive Feasibility Study”
2. See ASX Release 3 March 2023 “Maiden Inferred Mineral Resource of 12Mt at 99.15% SiO2, 0.09% Fe2O3
Estimated for CFS West Project”
3. See ASX Results 28 April 2022 “Positive Metallurgical test work results achieved at CFS”
4. See ASX Release 1 June 2023 “Extension of MOU to explore off-take arrangements”
The statements in this report concerning Mineral Resource Estimates at the CFS Project are derived from ASX
announcements 1, 2 and 3 above.
LIST ING R ULE 5.2 3
The Company confirms that it is not aware of any new information or data that materially affects the information
included in these original market announcements and, in the case of estimates of mineral resources or ore reserves
and production forecasts and forecast financial information, that all material assumptions and technical parameters
underpinning the estimates in the relevant market announcements continue to apply and have not materially
changed. The company confirms that the form and context in which the Competent Person’s findings are presented
have not been materially modified from the original market announcement.
Statements concerning production targets and related financial information are derived from ASX announcements
1, 2 and 4 above.
LIST ING R ULE 5.19.2
The Company confirms that all material assumptions underpinning the production target and corresponding
financial information continue to apply and have not materially changed.
35
ANNUAL
RE PO RT
FO R THE YEAR ENDED
3 0 JUNE 2023
METALLICA
MINERALS LTD
202 3
Metallica Minerals Limited
ACN 076 696 092
Annual Financial Report - 30 June 2023
Metallica Minerals Limited
Corporate directory
30 June 2023
Directors
T Psaros - Executive Chairman
M Bojanjac - Non-executive Director
B Sampson - Non-executive Director
Company secretary
S Waddell
Annual General Meeting
The details of the annual general meeting of Metallica Minerals Limited are:
HWL Ebsworth
Level 19, 480 Queen Street
Brisbane QLD 4000
9.30am on Wednesday, 22 November 2023
Registered office and principal
place of business
Share register
Auditor
Solicitors
Level 1, North Tower
Terrace Office Park
527 Gregory Terrace
Fortitude Valley
QLD 4006
Phone: (07) 3249 3000
Link Market Services Limited
Level 21, 10 Eagle Street
Brisbane
QLD 4001
Phone: 1300 554 474
Moore Australia Audit (QLD/NNSW)
Level 12, 10 Eagle Street
Brisbane
QLD 4000
HWL Ebsworth
Level 19, 480 Queen Street
Brisbane
QLD 4000
Stock exchange listing
Metallica Minerals Limited shares are listed on the Australian Securities Exchange
(ASX code: MLM)
Website
www.metallicaminerals.com.au
Corporate Governance Statement
www.metallicaminerals.com.au/corporate-governance
1
Metallica Minerals Limited
Directors' report
30 June 2023
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'consolidated entity') consisting of Metallica Minerals Limited (referred to hereafter as the 'company' or 'parent entity') and
the entities it controlled at the end of, or during, the year ended 30 June 2023.
Directors
The following persons were directors of Metallica Minerals Limited during the whole of the financial year and up to the date
of this report, unless otherwise stated:
Theo Psaros
Mark Bojanjac
Brad Sampson
Principal activities
During the financial year, the principal activities of the consolidated entity consisted of mineral exploration, evaluation and
progressing the development of its Cape Flattery Silica Sand Project.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The loss for the consolidated entity after providing for income tax amounted to $2,248,995 (30 June 2022: $2,007,194).
During the year ended 30 June 2023 the company:
(a) Continued to advance its Cape Flattery Silica Sand Project which included the following activities:
●
The company completed the Definitive Feasibility Study (DFS, see ASX release dated 17 July 2023) following the
successful completion of the Pre-Feasibility Study on 21 March 2022. Turner & Townsend JukesTodd was appointed
as the Study Manager for the DFS. The study includes the design, engineering and planned delivery of the Cape Flattery
Silica operation producing up to 1.5Mt of high-purity silica sand per annum. Turner & Townsend JukesTodd had overall
responsibility for the management and delivery of the DFS.
The company continued to advance through numerous other studies, approval processes and stakeholder engagement
activities that are all key components of our project development for the Cape Flattery Silica Sand Project.
The company entered into a Memorandum of Understanding (MoU) with Mitsui & Co. Limited. The MOU covers
negotiations to evaluate the feasibility and possibility of a sale and purchase transaction (off-take transaction) of all or
specific portions of the high-purity silica sand products that MLM will produce in the future (the "Business
Opportunities"). The MOU defines the desire to engage in further analysis and discussion of one or more Business
Opportunities and will remain effective for 12 months. While the MOU does not itself provide for any binding offtake
arrangement, it establishes a platform for the parties to collaboratively explore entering into binding offtake
arrangements. The MOU was subsequently extended to 1 September 2024.
The company announced that assay results had been received for the 25 Hand Auger holes that were drilled in the
western part of the Cape Flattery Silica (CFS) tenement (EPM 25734) in August 2022. A total of 25 hand auger holes
were drilled (WA145 to WA169) comprising 123m of drilling in the western part of the EPM. The auger holes were
designed to determine the possible ariel extent of silica sand in the western part of the tenement and to determine the
quality of the silica sand. The assay results for 16 of the 25-hole hand auger program intersected zones of very high
purity silica sand grading over 99.0% SiO2 and with low iron (less than 500ppm Fe2O3).
●
●
●
(b) Clermont Project
The company received assay results for two drill diamond holes completed at the Clermont porphyry project in April 2022.
Drill holes RDD019 and RDD020 were designed to test an intense magnetic low anomaly which the company's geologists
believed represented an attractive drilling target for porphyry style copper gold mineralisation. The company received further
assay results for the extension to diamond drill hole RDD020 drilled on EPM17968 in April and May 2023. It is planned to
review the additional geochemical data from RDD020 in conjunction with data available from historical holes drilled on
periphery of the magnetic low. This is expected to further assist in identifying which part of the mineralised porphyry system
has been intersected and to aid in recommending next steps.
2
Metallica Minerals Limited
Directors' report
30 June 2023
Capital expenditure
During the 2023 financial year, $5,857,217 was incurred on capitalised exploration and development expenditure (2022:
$3,977,378). The majority of the expenditure incurred was on the Cape Flattery Silica Sand Project.
Cash flow and Liquidity
During the 2023 financial year, the net cash outflows from operating activities increased to $1,484,046 (2022: $1,075,641).
An increase in employee costs, as a result of recruitment, and other general costs contributed to the increase in cash outflows
from operating activities.
For the financial year ended 30 June 2023, the net cash outflow from investing activities amounted to $5,889,112 (2022 -
net cash outflow: $4,112,735). The net cash outflows for 2023 and 2022 were largely attributable to payments for exploration
and evaluation assets.
COVID-19 Impacts
During the financial year, COVID-19 continued to impact the company, particularly around our Traditional Landowner
discussions. The company continues to follow recommendations from Queensland Health and the Australian Government
to provide a COVID-19 safe workplace. Metallica Minerals Limited remains committed to following the guidelines released
by the Government.
Significant changes in the state of affairs
On 7 December 2022, the company issued 145,000,000 fully paid ordinary shares to three investors in terms of a share
placement and raised $5,075,000 before share issue costs (refer note 18).
On 23 December 2022, the company issued 141,199,221 fully paid ordinary shares in terms of a non-renounceable
entitlement offer to existing shareholders and raised $4,518,375 before share issue costs (refer note 18).
The proceeds from the placement and entitlement offer are being used to fund the development of the 100% owned Cape
Flattery Silica Sand Project.
There were no other significant changes in the state of affairs of the consolidated entity during the financial year.
Matters subsequent to the end of the financial year
Completion of the Definitive Feasibility Study (DFS, see ASX release dated 17 July 2023).
On 4 July 2023, the company announced that it had met the additional expenditure commitment to earn a 51% share of the
Clermont Project.
Subsequent to the reporting date, 17,675,000 performance rights were forfeited, and 3,025,000 performance rights were
exercised.
No other matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
Likely developments and expected results of operations
The consolidated entity's goal is to develop and maximise the value of the Cape Flattery Silica Sand Project and to continue
to evaluate the Clermont project.
3
Metallica Minerals Limited
Directors' report
30 June 2023
Material business risks
The consolidated entity is engaged in the exploration and development of mine projects in Australia. The consolidated entity
is currently focused on successfully delivering high purity silica sand to a diversified customer base through the development
of its Cape Flattery Silica Sand Project. Material business risks that could impact the consolidated entity's performance are
described below.
Resource and
reserve
estimates
Resource and reserve estimates are inherently prone to variability. They involve expressions of judgement
with regard to the presence and quality of mineralisation and the ability to extract and process the
mineralisation economically. Estimates which were valid when originally calculated may alter significantly
when new information or techniques become available. This may result in alterations to development and
mining plans which may, in turn, adversely affect the consolidated entity's operations and reduce the
estimated amount of mineral resources and ore reserves available for production and expansion plans.
The consolidated entity manages the risk associated with resource and reserve estimates by engaging
suitably experienced and qualified contractors and operators and ensuring that the Competent Person
meets the requirements of the JORC Code 2012.
Commodity
prices
Commodity prices fluctuate and are affected by numerous factors beyond the control of the consolidated
entity. These factors include worldwide and regional supply and demand for commodities, general world
economic conditions and the outlook for interest rates, inflation and other economic or political factors on
both a regional and global basis. These factors may have a negative effect on the consolidated entity's
exploration, project development and production plans and activities, together with its ability to fund those
plans and activities.
Operating risks
The operations of the consolidated entity may be affected by various factors, including operational and
technical difficulties encountered in mining; difficulties in commissioning and operating plant and
equipment; mechanical failure or plant breakdown; unanticipated metallurgical problems which may affect
extraction costs; adverse weather conditions (e.g. significant rainfall); industrial and environmental
accidents; industrial disputes; and unexpected shortages or increases in the costs of consumables, spare
parts, plant and equipment. Such changes may have an adverse effect on the operations and production
ability of the consolidated entity by increasing costs or delaying activities.
The consolidated entity manages operating risks through a variety of means including selecting suitably
experienced and qualified contractors and operators; regular monitoring of the performance of contractors
and operators; the recruitment and retention of appropriately qualified employees and contractors; and
the regular review by the Board of the consolidated entity's key risks.
Environmental
and approval
risks
The ability of the consolidated entity to operate, develop and explore projects may be delayed and limited
by environmental and approval considerations and significant costs may result from complying with
the consolidated entity's environmental and approval obligations.
The consolidated entity recognises management’s best estimate for assets’ retirement obligations and site
rehabilitations in the period in which they are incurred. Actual costs incurred in future periods could differ
materially from the estimates. Additionally, future changes to environmental laws and regulations, life of
mine estimates and discount rates could affect the carrying amount of this provision.
Environmental regulation
The consolidated entity is subject to environmental regulations under laws of Queensland and Australia where it holds mineral
exploration and mining tenements. During the financial year the consolidated entity’s activities recorded no non-compliance
issues.
4
Metallica Minerals Limited
Directors' report
30 June 2023
Information on directors (as at the date of this report)
Name:
Title:
Qualifications:
Experience and expertise:
Theo Psaros
Executive Chairman
GAICD, CA, BFinAdmin
Theo Psaros has over 38 years of diverse global and local commercial experience in a
number of business sectors and industries within multi-million dollar publicly listed
companies, private companies and government departments. Theo's resource industry
experience included a number of years as Chief Financial Officer and Chief Operating
Officer of MetroCoal Limited, Chairman of the Surat Basin Coal Alliance and a member
of the industry group that assisted with the Queensland Government Department of
Natural Resources & Mines to prepare the 30-year strategic plan for the resources
industry in Queensland (ResourcesQ).
None
Other current directorships:
Former directorships (last 3 years): Mobilicom Limited (ASX: MOB) resigned 5 July 2021
Special responsibilities:
Interests in shares:
Interests in options:
Interests in rights:
Executive Chairman
9,542,982
948,477 MLMOB listed options
Nil
Name:
Title:
Qualifications:
Experience and expertise:
Mark Bojanjac
Non-executive Director
BCom, ICAA
Mark Bojanjac is a Perth based company Director with more than 20 years of significant
experience in ASX resource companies including those that have taken exploration
projects into production. He is currently Executive Chairman of PolarX Limited (ASX:
PXX), Non-executive Director of Kula Gold Limited (ASX: KGD). He was previously
Non-executive Director and later Managing Director of Adamus Resources leading the
transition of the company to a gold producer.
Executive Chairman of PolarX Limited and Non-executive Director of Kula Gold Limited
Other current directorships:
Former directorships (last 3 years): None
None
Special responsibilities:
213,860
Interests in shares:
Nil
Interests in options:
Nil
Interests in rights:
Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
Former directorships (last 3 years): None
None
Special responsibilities:
534,063
Interests in shares:
Nil
Interests in options:
Nil
Interests in rights:
Stuart Bradley Sampson
Non-executive Director
B.E. (Hons) Mining, MBA, AMP, MAusIMM
Brad Sampson is a Brisbane based internationally experienced business leader,
Director and mining professional with more than 30 years resources industry
experience. He brings significant mine development and operating experience to the
Metallica Board along with listed company governance experience across multiple
international jurisdictions. Brad has experienced all aspects of mining operations,
having worked in leadership roles through the entire cycle of exploration, development,
operations and closure.
Director of Kore Potash Plc and Non-executive Director of Agrimin Ltd
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships in all
other types of entities, unless otherwise stated. 'Former directorships (in the last 3 years)' quoted above are directorships
held in the last 3 years for listed entities only and excludes directorships in all other types of entities, unless otherwise stated.
Company secretary
The Company Secretary is Scott Waddell. Scott is a member of the Governance Institute of Australia and has previously
worked as the Company Secretary to Cape Alumina Ltd and Metro Mining Ltd over an eight-year period.
5
Metallica Minerals Limited
Directors' report
30 June 2023
Meetings of directors
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2023, and
the number of meetings attended by each director were:
T Psaros
M Bojanjac
B Sampson
Full Board
Attended
Held
11
11
11
11
11
11
Held: represents the number of meetings held during the time the director held office.
The Board has previously decided that it was no longer appropriate to have separate committees for Audit & Risk and
Remuneration. The Board as part of its role has undertaken the responsibilities of these Board committees and carries out
the functions set out in their respective charters to ensure that their objectives are met.
Remuneration report (audited)
The remuneration report, which has been audited, outlines the director and executive remuneration arrangements for the
consolidated entity and the company, in accordance with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all directors.
The remuneration report is set out under the following main headings:
●
●
●
●
●
●
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional information
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
The objective of the consolidated entity's and company's executive reward framework is to ensure reward for performance
is competitive and appropriate for the results delivered. The framework aligns executive reward with the achievement of
strategic objectives and the creation of value for shareholders, and conforms to the market best practice for delivery of
reward. The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria for good reward
governance practices:
●
●
●
competitiveness and reasonableness
acceptability to shareholders
transparency
The remuneration structure for key management personnel, excluding non-executive directors, is set by the Board and is
based on a number of factors including, market remuneration for comparable companies, particular experience of the
individual concerned and overall performance of the consolidated entity. The contracts for service between the consolidated
entity and key management personnel are on a continuing basis the terms of which are not expected to materially change in
the immediate future. The consolidated entity retains the right to terminate contracts immediately by making payment of an
amount based on the employee's years of service. Upon retirement or termination key management personnel, excluding
non-executives, are paid employee benefits accrued to date of retirement or termination. No other termination benefits are
payable under service contracts except that the Executive Chairman is entitled to an additional 6 months written notice in the
case of a change of control event. Unless otherwise stated, service agreements do not provide for pre-determined
compensation values or the manner of payment. Compensation is determined in accordance with the general remuneration
policy. The manner of payment is determined on a case by case basis and is generally a mix of cash and non-cash benefits
as considered appropriate by the Board.
The remuneration framework is aligned to shareholders’ interests through:
●
●
a focus on sustained growth in share price and key non-financial drivers of value
attracting and retaining high calibre executives
6
Metallica Minerals Limited
Directors' report
30 June 2023
The remuneration framework is aligned to employees’ interests through:
●
●
●
●
rewarding capability and experience
reflecting competitive rates of remuneration in respect of skills and responsibility
providing a clear structure for earning rewards
providing recognition for achievements
In accordance with best practice corporate governance, the structure of non-executive directors and executive remuneration
is separate.
Non-executive director remuneration
Remuneration of the non-executive directors is approved by the Board and set in aggregate within the maximum amount
approved by the shareholders from time to time. The fees have been determined by the Board having regard to industry
practice and the need to obtain appropriately qualified independent persons.
The aggregate pool of remuneration paid to non-executive directors was approved by shareholders on 24 November 2010
and is currently $300,000 per annum for Metallica Minerals Limited as parent entity. The amount paid to non-executive
directors of the parent entity (Metallica Minerals Limited) during the year to 30 June 2023 was $123,425 excluding any
remuneration from options (2022: $120,050).
Executive remuneration
The consolidated entity and company aims to reward executives with a level and mix of remuneration, both fixed and variable,
based on their position and level of achievement.
The executive remuneration and reward framework has four components:
●
●
●
●
base pay and non-monetary benefits
short-term performance incentives
share-based payments
other remuneration such as superannuation and long service leave
The combination of these comprises the executive's total remuneration.
(i) Fixed remuneration
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the
Board, based on individual and business unit performance, the overall performance of the consolidated entity and
comparable market remunerations.
Executives can receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle
benefits) where it does not create any additional costs to the consolidated entity and adds additional value to the executive.
(ii) Short-term incentives
STIs paid to senior executives are made on a discretionary basis as determined by the Board. These incentives, while not
guaranteed, are directly linked to the achievement of KPIs as well as various performance targets for each area of operational
responsibility, including the preparation and delivery of reports on time and meeting industry targets and standards in relation
to workplace health and safety. No bonus is awarded where performance falls below the minimum acceptable KPI levels as
determined by the Board.
(iii) Long-term incentives
Long-term performance incentives (LTI) are delivered through the grant of options and share rights to executive directors
and selected senior executives from time to time as part of their remuneration. Share rights have a nil exercise price and the
performance hurdles applicable to any performance period (including how they will be measured) is set out in the invitation
to the eligible executives.
At the Annual General Meeting (AGM) held on 17 November 2022, the company's shareholders approved the issue of
performance rights to key employees under the company's incentive plan.
At the Extraordinary General Meeting (EGM) held on 7 April 2023, the company's shareholders approved the ratification of
the previous issue of Placement Shares under Listing Rule 7.1A and approved amendments to the Company’s constitution.
7
Metallica Minerals Limited
Directors' report
30 June 2023
Consolidated entity performance and link to remuneration
The purpose of the incentive plan is to:
(a) assist in the reward, retention and motivation of participants;
(b) align the interests of participants with the interests of the company's shareholders;
(c) promote the long-term success of the company and provide greater incentive for participants to focus on the company's
longer term goals;
(d) link the reward of participants to the performance of the company and the creation of shareholder value; and
(e) provide participants with the opportunity to share in any future growth in value of the company.
Because the consolidated entity is in exploration and development, not production, there is no direct relationship between
the consolidated entity’s financial profits and the level of remuneration paid to key management personnel.
At 30 June 2023, the market price of the company’s ordinary shares was 2.4 cents per share (30 June 2022: 2.3 cents per
share). No dividends were paid during the year ended 30 June 2023.
Share prices are subject to the influence of international metal prices and market sentiment towards the sector and increases
or decreases may occur independently of executive performance or remuneration. The company may issue options or
performance rights to provide an incentive for key management personnel which, it is believed, is in line with industry
standards and practice and is also believed to align the interests of key management personnel with those of the company’s
shareholders.
Unless otherwise stated, service agreements do not provide for pre-determined compensation values or the manner of
payment. Compensation is determined in accordance with the general remuneration policy. The manner of payment is
determined on a case by case basis and is generally a mix of cash and non-cash benefits as determined by the Board of
Directors. Except in so far as Directors and other key management personnel hold options or share rights over shares in the
company, there is no relationship between remuneration policy and the company’s performance.
Use of remuneration consultants
The company did not engage remuneration consultants to prepare a formal remuneration report during the financial year
ended 30 June 2023.
Voting and comments made at the company's 17 November 2022 Annual General Meeting ('AGM')
At the 17 November 2022 AGM, 98.91% of the votes received supported the adoption of the remuneration report for the year
ended 30 June 2022. The company did not receive any specific feedback at the AGM regarding its remuneration practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables.
The key management personnel of the consolidated entity consisted of the following directors of Metallica Minerals Limited:
●
●
●
Theo Psaros
Mark Bojanjac
Brad Sampson
Short-term
benefits
Post-
employment
Long-term
benefits
Share-based
payments
Cash salary
and fees
$
Superannuation
$
Long service
leave
$
Options, rights
& shares(a)
$
Total
$
60,000
57,398
-
6,027
271,493
388,891
28,507
34,534
-
-
-
-
73,500
73,500
133,500
136,925
135,675
282,675
435,675
706,100
2023
Non-Executive Directors:
M Bojanjac
B Sampson
Executive Directors:
T Psaros
8
Metallica Minerals Limited
Directors' report
30 June 2023
(a)
The amounts included in the share-based remuneration represent the grant date fair value of all performance rights and options issued to
Directors, amortised on a straight-line basis over the expected vesting period. Note that as at 30 June 2023, only one performance condition
was partially met for Theo Psaros and no performance conditions were met for M Bojanjac or B Sampson, thus the benefit to Directors from
performance rights only slightly materialised for Theo Psaros and did not materialise for M Bojanjac or B Sampson. Expenses are reversed
where rights are forfeited due to a failure to satisfy the service conditions or there is a revision of share rights expected to vest.
Short-term
benefits
Post-employment
Long-term
benefits
Share-based
payments
Cash salary
and fees
$
Superannuation
$
Long service
leave
$
Options, rights
& shares(b)
$
Total
$
53,335
53,958
6,692
215,455
29,700
359,140
-
5,396
669
17,046
-
23,111
-
-
-
-
-
-
8,005
8,005
46,368
103,766
69,880
236,024
61,340
67,359
53,729
336,267
99,580
618,275
2022
Non-Executive Directors:
M Bojanjac
B Sampson
A Gillies(a)
Executive Directors:
T Psaros
S Waddell(c)
(a)
(b)
(c)
Mr A Gillies resigned on 31 August 2021.
The amounts included in the share-based remuneration represent the grant date fair value of performance rights and options, amortised on
a straight-line basis over the expected vesting period. Expenses are reversed where rights are forfeited due to a failure to satisfy the service
conditions or there is a revision of share rights expected to vest.
Mr Waddell was a Key Management Personnel up to 31 August 2021 when he resigned as Director of the company on 31 August 2021. Mr
Waddell has stayed on as Chief Financial Officer and Company Secretary post this date but is no longer a Key Management Personnel.
The proportion of remuneration linked to performance (i.e. options) and the fixed proportion are as follows:
Name
Non-Executive Directors:
M Bojanjac
B Sampson
A Gillies
Executive Directors:
T Psaros
S Waddell
Fixed remuneration
2022
2023
At risk - STI
At risk - LTI
2023
2022
2023
2022
45%
46%
-
69%
-
87%
88%
14%
69%
30%
-
-
-
-
-
13%
12%
-
17%
8%
55%
54%
-
31%
-
-
-
86%
14%
62%
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details
of these agreements are as follows:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Theo Psaros
Executive Chairman
1 February 2021
Ongoing
Mr Psaros was engaged as an employee on a salary of $271,493 excluding
superannuation. Mr Psaros already participates in an employee incentive plan and no
other additional short or long-term incentives have been included in the terms of the
engagement. The contract can be terminated by six months' notice from either party
plus an additional six months' payment in the case of a change of control event. Mr
Psaros has no entitlement to termination payments in the event of removal for
misconduct.
9
Metallica Minerals Limited
Directors' report
30 June 2023
Share-based compensation
Issue of shares
There were no shares granted to directors and other key management personnel as part of compensation during the year
ended 30 June 2023.
Options
On 23 December 2019, the company granted 10,000,000 unlisted options to its Directors pursuant to the employee equity
incentive plan as approved at the company's annual general meeting on 29 November 2019. Theo Psaros and Andrew Gillies
were each granted 3,000,000 options and Scott Waddell was granted 4,000,000 options, for nil consideration. The options
vested if the Metallica Minerals Limited share price traded at more than 2.9 cents for 5 days.
On 27 July 2021, the company allotted 10,000,000 shares for the exercise of employee options held by Directors, and entered
into limited recourse loan agreements with three Directors as outlined in the Extraordinary General Meeting held on 7 July
2021 and Notice of Meeting dated 7 and 8 June 2021. Under Accounting Standard AASB 2 Share-based payment, the
issuance of these shares has been accounted for as an in-substance option award. The in-substance options vested on the
grant date. The shares were subject to escrow until 23 December 2022. The loans were repaid prior to 30 June 2023.
Summary of the options granted on 23 December 2019 and which were exercised on 27 July 2021:
Number of
options
granted
Grant
date
Expiry
date
Exercise option at Vested
price
grant date
%
Fair value
per
Number of
ordinary
shares
issued
3,000,000 23/12/2019
3,000,000 23/12/2019
4,000,000 23/12/2019
23/06/2022
23/06/2022
23/06/2022
$0.029
$0.029
$0.029
$0.004
$0.004
$0.004
100% 3,000,000
100% 3,000,000
100% 4,000,000
Name
T Psaros
A Gillies
S Waddell
Summary of the in-substance share-based option awards (limited recourse borrowings):
Number of
in substance
options
granted
3,000,000
3,000,000
4,000,000
Name
T Psaros
A Gillies
S Waddell
Options granted carried no dividend or voting rights.
Grant date
Expiry date
Exercise price
Fair value per
option at
grant date
27/07/2021
27/07/2021
27/07/2021
31/12/2022
31/12/2022
31/12/2022
$0.029
$0.029
$0.029
$0.021
$0.021
$0.021
Share rights
On 2 August 2021, the company issued 7,160,000 performance rights to Directors and employees based on the terms
detailed at the EGM held on 7 July 2021 and Notice of Meeting dated 7 and 8 June 2021. These terms included a condition
that the employee needed to stay employed with the company until the vesting date.
The performance rights convert in 3 equal tranches into ordinary shares on achievement of the following performance hurdles
(Hurdles):
Hurdle 1:
The VWAP of the Metallica Minerals Limited (MLM) share price for the month of June 2022 (based on trading
days during that month) is at least 20% higher than the VWAP of the MLM share price for the month of June
2021.
Hurdle 2:
The total JORC resource of silica sand held by the company in relation to its Cape Flattery Silica Sand
Project is at least 50 million tonnes, with at least 25 million tonnes included at the measured and/or Indicated
JORC category.
Hurdle 3:
The company has successfully completed the Pre-Feasibility Study for the Cape Flattery Silica Project and
released the results of this study to the ASX.
10
Metallica Minerals Limited
Directors' report
30 June 2023
As of 30 June 2022, one of the three hurdles had not been met and thus 2,386,665 rights were forfeited. The balance of
4,773,335 rights were exercised and the shares issued on 26 August 2022.
The terms and conditions of each grant of share rights over ordinary shares affecting remuneration of directors and other
key management personnel was as follows:
Name
Grant date
Vesting date
and
exercisable
date
Expiry date
Number of
Fair value
per right at
rights
grant date granted
Number of
rights
exercised
Number of
rights
forfeited
%
forfeited
T Psaros
T Psaros
M Bojanjac
M Bojanjac
B Sampson
B Sampson
S Waddell
S Waddell
07/07/2021
07/07/2021
07/07/2021
07/07/2021
07/07/2021
07/07/2021
07/07/2021
07/07/2021
19/07/2022
19/07/2022
19/07/2022
19/07/2022
19/07/2022
19/07/2022
19/07/2022
19/07/2022
19/08/2022
19/08/2022
19/08/2022
19/08/2022
19/08/2022
19/08/2022
19/08/2022
19/08/2022
$0.036
-
633,333
$0.034 1,266,667 1,266,667
88,333
$0.036
-
176,667
176,667
$0.034
88,333
$0.036
-
176,667
176,667
$0.034
$0.036
-
533,333
$0.034 1,066,667 1,066,667
633,333
-
88,333
-
88,333
-
533,333
-
100%
-
100%
-
100%
-
100%
-
Share rights granted carried no dividend or voting rights.
Performance rights
On 17 November 2022, the company granted 4,500,000 performance rights to the Executive Chairman and 5,000,000
performance rights to the Non-Executive Directors of the company under the Employee Equity Incentive Plan (EEIP). The
rights vested on 25 July 2023 and expired on 23 August 2023.
The performance rights convert into ordinary shares as follows:
●
Executive Chairman - The performance rights convert in 4 equal tranches into ordinary shares on achievement of
performance hurdles 1 - 4.
Non-Executive Directors - The performance rights convert in 3 equal tranches into ordinary shares on achievement of
performance hurdles 1 - 3.
●
The following are the performance hurdles (Hurdles) for the performance rights granted during the current year:
Hurdle 1:
The VWAP of the Metallica Minerals Limited (MLM) share price for the month of June 2023 (based on trading
days during that month) is at least 20% higher than the VWAP of the MLM share price for the month of June
2022.
Hurdle 2:
The company signs Mining Agreement and Cultural Heritage Management Agreement with TLO parties.
Hurdle 3:
The company has successfully completed the Definitive Feasibility Study for the Cape Flattery Silica Project
and released the results of this study to the ASX.
Hurdle 4:
Personal performance based on the rating provided in the HR Performance Management System – The
number of performance rights will be pro-rata based on the rating received.
The performance rights will vest and convert into shares on the date the vesting notice is provided to the employee. A term
was included in the conditions that the employee needed to stay employed with the company until the vesting date.
Name
Grant date
Vesting date and Expiry
exercisable date date
Fair value Number of Number of
per right at
rights
grant date granted
rights
forfeited
%
forfeited
T Psaros
T Psaros
M Bojanjac
M Bojanjac
B Sampson
B Sampson
17/11/2022
17/11/2022
17/11/2022
17/11/2022
17/11/2022
17/11/2022
25/07/2023
25/07/2023
25/07/2023
25/07/2023
25/07/2023
25/07/2023
23/08/2023
23/08/2023
23/08/2023
23/08/2023
23/08/2023
23/08/2023
$0.026 1,125,000 1,125,000
$0.036 3,375,000 2,625,000
833,333
833,333
$0.026
$0.036 1,666,667 1,666,667
$0.026
833,333
833,333
$0.036 1,666,667 1,666,667
100%
78%
100%
100%
100%
100%
11
Metallica Minerals Limited
Directors' report
30 June 2023
Performance rights granted carried no dividend or voting rights.
As of 30 June 2023, 8,750,000 rights were forfeited. The balance of 750,000 performance rights vested, and the shares were
issued on 25 August 2023.
Additional information
The earnings of the consolidated entity for the five years to 30 June 2023 are summarised below:
2023
$
2022
$
2021
$
2020
$
2019
$
Loss after income tax
(2,248,995)
(2,007,194)
(3,054,991)
(521,340)
(4,391,316)
The factors that are considered to affect Total Shareholders Return ('TSR') are summarised below:
2023
2022
2021
2020
2019
Share price at financial year end (cents)
Basic earnings/(loss) per share (cents per
share)
2.40
2.30
3.50
1.05
1.60
(0.27)
(0.33)
(0.84)
(0.16)
(1.36)
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the company held during the financial year by each director and other members of key management
personnel of the consolidated entity, including their personally related parties, is set out below:
Ordinary shares
T Psaros
B Sampson
M Bojanjac
Balance at
the start of Granted as
the year
remuneration Additions
Disposals/
other
Balance at
the end of
the year
6,000,000
264,516
-
6,264,516
1,266,667
176,667
176,667
1,620,001
1,526,315
92,880
37,193
1,656,388
-
-
-
-
8,792,982
534,063
213,860
9,540,905
None of the shares above are held nominally by the directors or any of the other key management personnel.
Option holding
The number of options over ordinary shares in the company held during the financial year by each director and other
members of key management personnel of the consolidated entity, including their personally related parties, is set out below:
Options over ordinary shares
T Psaros
Balance at
the start of Granted as
the year
remuneration Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
948,477
948,477
-
-
-
-
-
-
948,477
948,477
The balance at the end of the year includes options that attached to shares issued under a renounceable rights offer.
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other**
Balance at
the end of
the year
Limited recourse loan options*
T Psaros
3,000,000
-
-
(3,000,000)
-
*
**
For further information on the limited recourse loan options refer to the section below Loans to key management
personnel and their related entities.
Theo Psaros repaid his limited recourse loan during the 2023 financial year.
12
Metallica Minerals Limited
Directors' report
30 June 2023
Share rights holding
The number of share rights over ordinary shares in the company held during the financial year by each director and other
members of key management personnel of the consolidated entity, including their personally related parties, is set out below:
Share rights over ordinary shares
T Psaros
M Bojanjac
B Sampson
Balance at
the start of
the year
Granted
1,266,667
176,667
176,667
1,620,001
Exercised
-
-
-
-
(1,266,667)
(176,667)
(176,667)
(1,620,001)
Expired/
forfeited/
other
Balance at
the end of
the year
-
-
-
-
-
-
-
-
Performance rights holding
The number of performance rights over ordinary shares in the company held during the financial year by each director and
other members of key management personnel of the consolidated entity, including their personally related parties, is set out
below:
Performance rights over ordinary shares
T Psaros
M Bojanjac
B Sampson
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
-
-
-
-
4,500,000
2,500,000
2,500,000
9,500,000
-
-
-
-
(3,750,000)
(2,500,000)
(2,500,000)
750,000
-
-
(8,750,000)
750,000
Loans to key management personnel and their related parties
On 27 July 2021, the company allotted 10,000,000 shares for the exercise of employee options held by Directors at $0.029
per share in terms of the Employee Equity Incentive Plan (refer to note 32). The shares have been funded by limited recourse
loans with three Directors as outlined in the Extraordinary General Meeting held on 7 July 2021 and Notice of Meeting dated
7 and 8 June 2021. Under Accounting Standard AASB 2 Share-based payment, the issuance of these shares was accounted
for as an in-substance option award. The value of these equity instruments was assessed by the Directors based on an
independent valuation (using an option-pricing model) and were recorded in the Share-based payments reserve (note 19).
The shares were subject to escrow until 23 December 2022. The loans were repaid prior to 30 June 2023.
Other transactions with key management personnel and their related parties
There were no other transactions with key management personnel of the group, including their close family members and
entities related to them, during the financial year ended 30 June 2023.
This concludes the remuneration report, which has been audited.
Shares under option
Unissued ordinary shares of Metallica Minerals Limited under option at the date of this report are as follows:
Grant date
3 August 2011
27 April 2021
18 February 2022
12 July 2022
Expiry date
No expiry date*
25 March 2024
25 March 2024
25 March 2024
Exercise
price
Number
under option
1,000,000
$0.700
$0.060 130,678,964
$0.060 41,608,871
7,342,742
$0.060
180,630,577
*
These options will expire 3 years after the decision to mine at Lucknow or Kokomo is made.
13
Metallica Minerals Limited
Directors' report
30 June 2023
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the
company or of any other body corporate.
No options were granted to the directors or any of the five highest remunerated officers of the company since the end of the
financial year.
Shares under share/performance rights
There were no unissued ordinary shares of Metallica Minerals Limited under share rights outstanding at the date of this
report.
Shares issued on the exercise of options
The following ordinary shares of Metallica Minerals Limited were issued during the year ended 30 June 2023 and up to the
date of this report on the exercise of options granted:
Date options exercised
19 August 2022*
Number of
Exercise
price
shares
issued
$0.000
4,773,335
*
These options represent in-substance options (refer to note 32).
Shares issued on the exercise of share/performance rights
The following ordinary shares of Metallica Minerals Limited were issued during the year ended 30 June 2023 and up to the
date of this report on the exercise of share rights granted:
Date share/performance rights exercised
25 August 2023
Number of
Exercise
price
shares
issued
$0.000
3,025,000
Indemnity and insurance of officers
Each of the Directors and the Secretary of the company have entered into a Deed with the company whereby the company
has provided certain contractual rights of access to books and records of the company to those Directors and Secretary. The
company has insured all of the Directors of Metallica Minerals Limited. The contract of insurance prohibits the disclosure of
the nature of the liabilities covered and amount of the premium paid. The Corporations Act 2001 does not require disclosure
of the information in these circumstances.
Indemnity and insurance of auditor
Other than the standard indemnities, the company has not, during or since the end of the financial year, indemnified or
agreed to indemnify the auditor of the company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company
or any related entity.
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.
Non-audit services
There were no non-audit services provided during the financial year by the auditor.
Officers of the company who are former partners of Moore Australia Audit (QLD/NNSW)
There are no officers of the company who are former partners of Moore Australia Audit (QLD/NNSW).
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this directors' report.
14
Moore Australia Audit
Level 12, 10 Eagle Street
Brisbane QLD 4000
GPO Box 475
Brisbane QLD 4001
T +61 7 3340 3800
F +61 7 3340 3700
www.moore-australia.com.au
Auditor's Independence Declaration under Section 307C of the
Corporations Act 2001 to the Directors of Metallica Minerals Limited
As lead auditor for the audit of Metallica Minerals Limited for the year ended 30 June 2023, I declare that, to the best of my
knowledge and belief, there have been:
(i) no contraventions of the independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii) no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Metallica Minerals Limited and the entities it controlled during the year.
Murray McDonald
Partner - Audit and Assurance
Moore Australia Audit (QLD/NNSW)
Chartered Accountants
Brisbane
7 September 2023
Moore Australia Audit (QLD/NNSW) – ABN 33 050 150 130.
An independent member of Moore Global Network Limited - members in principal cities throughout the world.
Liability limited by a scheme approved under Professional Standards Legislation.
16
Metallica Minerals Limited
Contents
30 June 2023
Statement of profit or loss and other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors' declaration
Independent auditor's report to the members of Metallica Minerals Limited
Shareholder information
General information
18
19
20
21
22
49
50
54
The financial statements cover Metallica Minerals Limited as a consolidated entity consisting of Metallica Minerals Limited
and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars,
which is Metallica Minerals Limited's functional and presentation currency.
Metallica Minerals Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered
office and principal place of business is:
Level 1, North Tower
Terrace Office Park
527 Gregory Terrace
Bowen Hills
QLD 4006
A description of the nature of the consolidated entity's operations and its principal activities are included in the directors'
report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on ___________________
2023. The directors have the power to amend and reissue the financial statements.
17
Metallica Minerals Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2023
Revenue
Other income
Interest revenue
Expenses
Airfares and conferences
Extraordinary General Meeting costs
Employee benefits expense
Exploration costs
Depreciation and amortisation expense
Listing fees and share register expenses
Impairment of exploration and evaluation expenditure
Legal fees
Professional fees
Rental expenses
Other expenses
Finance costs
Total expenses
Loss before income tax expense
Income tax expense
Loss after income tax expense for the year attributable to the owners of
Metallica Minerals Limited
Other comprehensive income for the year, net of tax
Total comprehensive income for the year attributable to the owners of
Metallica Minerals Limited
Note
Consolidated
2023
$
2022
$
4
5
6
6
13
6
7
-
4,182
-
86,482
2,500
7,770
(73,924)
-
(634,829)
(77,035)
(111,453)
(78,084)
(635,494)
(65,281)
(265,797)
(28,654)
(345,243)
(19,683)
(2,335,477)
(37,521)
(14,667)
(857,204)
(306,391)
(85,372)
(87,732)
-
(35,911)
(148,033)
(41,413)
(388,886)
(18,516)
(2,021,646)
(2,248,995)
(2,007,194)
-
-
(2,248,995)
(2,007,194)
-
-
(2,248,995)
(2,007,194)
Cents
Cents
Basic earnings per share
Diluted earnings per share
31
31
(0.27)
(0.27)
(0.33)
(0.33)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
18
Metallica Minerals Limited
Statement of financial position
As at 30 June 2023
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-current assets
Plant and equipment
Right-of-use assets
Exploration and evaluation
Other non-current assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Lease liabilities
Employee benefits
Total current liabilities
Non-current liabilities
Lease liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Note
Consolidated
2023
$
2022
$
8
9
7,106,924
23,432
7,130,356
5,259,695
59,525
5,319,220
11
12
13
10
103,812
399,202
10,382,182
67,498
10,952,694
100,105
476,467
5,160,459
73,498
5,810,529
18,083,050 11,129,749
14
15
16
15
17
670,910
68,878
94,534
834,322
838,600
63,163
39,713
941,476
356,404
3,842
360,246
425,282
3,842
429,124
1,194,568
1,370,600
16,888,482
9,759,149
18
19
63,293,132 53,865,383
590,844
(44,697,078)
291,770
(46,696,420)
16,888,482
9,759,149
The above statement of financial position should be read in conjunction with the accompanying notes
19
Metallica Minerals Limited
Statement of changes in equity
For the year ended 30 June 2023
Consolidated
Balance at 1 July 2021
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 18)
Share-based payments (note 32)
Issued
capital
$
Reserves
$
Accumulated
losses
$
Total equity
$
50,896,470
219,747
(42,689,884)
8,426,333
-
-
-
-
-
-
(2,007,194)
-
(2,007,194)
-
(2,007,194)
(2,007,194)
2,968,913
-
-
371,097
-
-
2,968,913
371,097
Balance at 30 June 2022
53,865,383
590,844
(44,697,078)
9,759,149
Consolidated
Balance at 1 July 2022
Issued
capital
$
Reserves
$
Accumulated
losses
$
Total equity
$
53,865,383
590,844
(44,697,078)
9,759,149
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
-
-
-
-
-
-
(2,248,995)
-
(2,248,995)
-
(2,248,995)
(2,248,995)
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 18)
Share-based payments (note 32)
Transfer from share-based payments reserve to accumulated
losses
9,283,550
-
-
94,778
-
-
9,283,550
94,778
144,199
(393,852)
249,653
-
Balance at 30 June 2023
63,293,132
291,770
(46,696,420) 16,888,482
The above statement of changes in equity should be read in conjunction with the accompanying notes
20
Metallica Minerals Limited
Statement of cash flows
For the year ended 30 June 2023
Note
Consolidated
2023
$
2022
$
Cash flows from operating activities
Receipts from customers, government grants and other (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Interest received
Interest paid
740
(1,551,585)
86,482
(19,683)
8,976
(1,073,871)
7,770
(18,516)
Net cash used in operating activities
33
(1,484,046)
(1,075,641)
Cash flows from investing activities
Payments for property, plant and equipment
Payments for exploration and evaluation assets
Payments for security deposits
Receipt for security deposit
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Share issue transaction costs
Repayment of lease liabilities principal
Net cash from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
11
13
(37,895)
(5,857,217)
-
6,000
(110,302)
(3,977,378)
(25,055)
-
(5,889,112)
(4,112,735)
18
18
9,883,375
(599,825)
(63,163)
3,044,000
(75,087)
(52,409)
9,220,387
2,916,504
1,847,229
5,259,695
(2,271,872)
7,531,567
Cash and cash equivalents at the end of the financial year
8
7,106,924
5,259,695
The above statement of cash flows should be read in conjunction with the accompanying notes
21
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 1. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out either in the respective
notes or below. These policies have been consistently applied to all the years presented, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new, revised or amending Accounting Standards and Interpretations issued
by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. None of the new
standards and amendments to standards affected any of the amounts recognised in the current period or any prior period.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
Going concern
For the year ended 30 June 2023, the consolidated entity incurred a loss of $2,248,995 after income tax (2022: $2,007,194)
and net cash outflows from operating activities of $1,484,046 (2022: $1,075,641).
The Directors have concluded that the going concern basis of preparation of the financial statements is appropriate and any
uncertainty regarding going concern is mitigated by the following:
●
At 30 June 2023, the consolidated entity had net current assets of $6,296,034 (30 June 2022: $4,377,744) and total net
assets of $16,888,482 (30 June 2022: $9,759,149). Cash and cash equivalents at 30 June 2023 amounted to
$7,106,924 (30 June 2022: $5,259,695).
If additional cash is required outside of current cash holdings, the consolidated entity is expected to be in a position to
complete capital raising with no foreseeable challenges as they have a proven history of successfully raising funds.
During the year ended 30 June 2023, the company raised $9,283,550 from the issue of ordinary shares in the company
(net of share issue costs) (note 18).
●
Based on the above, the Directors are of the opinion that at the date of signature of the financial report there are reasonable
and supportable grounds to believe that the consolidated entity will be able to meet its liabilities from its assets in the ordinary
course of business, for a period of not less than 12 months from the date of this financial report and has accordingly prepared
the financial report on a going concern basis.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the
financial statements, are disclosed in note 2.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only.
Supplementary information about the parent entity is disclosed in note 28.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Metallica Minerals Limited
('company' or 'parent entity') as at 30 June 2023 and the results of all subsidiaries for the year then ended. Metallica Minerals
Limited and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity
when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from
the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.
22
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 1. Significant accounting policies (continued)
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the consolidated entity.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and
non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The
consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained
together with any gain or loss in profit or loss.
Revenue
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the
net carrying amount of the financial asset.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within
12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used
to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle;
it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Joint arrangements
Under AASB 11 Joint Arrangements, investments in joint arrangements are classified as either joint operations or joint
ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure
of the joint arrangement. Metallica Minerals Limited has only one joint operation at the reporting date and no joint ventures.
Joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the
assets, and obligations for the liabilities, relating to the arrangement. Metallica Minerals Limited has recognised its share of
the jointly held assets, liabilities, revenues and expenses of joint operations and its share of any jointly held or incurred
assets, liabilities, revenues and expenses of joint operations. These have been incorporated in the financial statements under
the appropriate classifications.
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial
measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at
either amortised cost or fair value depending on their classification. Classification is determined based on both the business
model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an
accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the
consolidated entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable
expectation of recovering part or all of a financial asset, it's carrying value is written off.
23
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 1. Significant accounting policies (continued)
Financial assets at amortised cost
A financial asset is measured at amortised cost only if both of the following conditions are met: (i) it is held within a business
model whose objective is to hold assets in order to collect contractual cash flows; and (ii) the contractual terms of the financial
asset represent contractual cash flows that are solely payments of principal and interest.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are measured at
amortised cost. The measurement of the loss allowance depends upon the consolidated entity's assessment at the end of
each reporting period as to whether the financial instrument's credit risk has increased significantly since initial recognition,
based on reasonable and supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit
loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a
default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is
determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit
losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of
anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.
Restoration, rehabilitation and environmental expenditure
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
structure, waste removal, and rehabilitation of the site in accordance with clauses of mining permits. Such costs have been
determined using estimates of future costs, current legal requirements and technology on an undiscounted basis.
Estimates of future costs are reassessed at least annually. Changes in estimates relating to areas of interest in the exploration
and evaluation phase are dealt with retrospectively, with any amounts that would have been written off or provided against
under the accounting policy for exploration and evaluation immediately written off.
Restoration from exploration drilling is carried out at the time of drilling and accordingly no provision is required.
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount
exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the
present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or
cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to
form a cash-generating unit.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of
the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
Comparatives
Where required by the Australian Accounting Standards comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
24
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 1. Significant accounting policies (continued)
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory,
have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2023. The consolidated
entity has carried out a preliminary assessment of the impact of these new and amended Accounting Standards and
Interpretations, and determined that they are unlikely to have a material impact on the consolidated entity's financial
statements in the period of initial application.
Note 2. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in
relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and
assumptions on historical experience and on other various factors, including expectations of future events, management
believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal
the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are
discussed below.
Share-based payment transactions
The consolidated entity measures the cost of equity-settled transactions with employees by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value is determined by using either the Binomial or Black-
Scholes model taking into account the terms and conditions upon which the instruments were granted. The accounting
estimates and assumptions relating to equity-settled share-based payments will have no impact on the carrying amounts of
assets and liabilities within the next annual reporting period but may impact profit or loss and equity.
Impairment of property, plant and equipment
The consolidated entity assesses impairment of property, plant and equipment at each reporting date by evaluating
conditions specific to the consolidated entity and to the particular asset that may lead to impairment. If an impairment trigger
exists, the recoverable amount of the asset is determined. This involves fair value less costs of disposal or value-in-use
calculations, which incorporate a number of key estimates and assumptions.
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will commence commercial
production in the future, from which time the costs will be amortised in proportion to the depletion of the mineral resources.
Key judgements are applied in considering costs to be capitalised which includes determining expenditures directly related
to these activities and allocating overheads between those that are expensed and capitalised. In addition, costs are only
capitalised that are expected to be recovered either through successful development or sale of the relevant mining interest.
Factors that could impact the future commercial production at the mine include the level of reserves and resources, future
technology changes, which could impact the cost of mining, future legal changes and changes in commodity prices. To the
extent that capitalised costs are determined not to be recoverable in the future, they will be written off in the period in which
this determination is made.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is probable
that future taxable amounts will be available to utilise those temporary differences and losses.
Lease term
The lease term is a significant component in the measurement of both the right-of-use asset and lease liability. Judgement
is exercised in determining whether there is reasonable certainty that an option to extend the lease or purchase the underlying
asset will be exercised, or an option to terminate the lease will not be exercised, when ascertaining the periods to be included
in the lease term. In determining the lease term, all facts and circumstances that create an economical incentive to exercise
an extension option, or not to exercise a termination option, are considered at the lease commencement date. Factors
considered may include the importance of the asset to the consolidated entity's operations; comparison of terms and
conditions to prevailing market rates; incurrence of significant penalties; existence of significant leasehold improvements;
and the costs and disruption to replace the asset. The consolidated entity reassesses whether it is reasonably certain to
exercise an extension option, or not exercise a termination option, if there is a significant event or significant change in
circumstances.
25
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 2. Critical accounting judgements, estimates and assumptions (continued)
Incremental borrowing rate
Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is estimated to discount
future lease payments to measure the present value of the lease liability at the lease commencement date. Such a rate is
based on what the consolidated entity estimates it would have to pay a third party to borrow the funds necessary to obtain
an asset of a similar value to the right-of-use asset, with similar terms, security and economic environment.
Note 3. Operating segments
Identification of reportable operating segments
The consolidated entity has identified its operating segments based on the internal reports that are reviewed and used by
the parent entity’s Board of Directors (chief operating decision makers) in assessing performance and determining the
allocation of resources. The consolidated entity is managed primarily on a geographic basis that is the location of the
respective areas of interest (tenements) in Australia. Operating segments are determined on the basis of financial information
reported to the Board which is at the consolidated entity level.
The consolidated entity does not have any products/services it derives revenue from.
Management currently identifies the consolidated entity as having only one operating segment, being exploration and
development of mine projects in Australia. All significant operating decisions are based upon analysis of the consolidated
entity as one segment. The financial results from the segment are equivalent to the financial statements of the consolidated
entity as a whole.
Accounting policy for operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same basis
as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation
of resources to operating segments and assessing their performance.
Note 4. Revenue
Rent
Note 5. Other income
Other
Consolidated
2023
$
2022
$
-
4,182
Consolidated
2023
$
2022
$
-
2,500
Accounting policy - Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
26
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 6. Expenses
Loss before income tax includes the following specific expenses:
Aggregate employee benefits expense
Defined contribution superannuation expense
Equity-settled share-based payments
Other employee benefits expenses
Less
Employee costs capitalised to exploration
Employee benefits expense
Depreciation
Plant and equipment
Motor vehicles
Buildings right-of-use assets
Total depreciation
Finance costs
Interest and finance charges paid/payable on lease liabilities
Leases
Short-term lease payments
Note 7. Income tax
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
Tax at the statutory tax rate of 30% (2022: 25%)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Non-deductible expenses
Current year tax losses not recognised
Current year temporary differences not recognised
Change in tax rate
Income tax expense
27
Consolidated
2023
$
2022
$
110,651
94,778
1,168,903
68,305
371,097
823,771
1,374,332
1,263,173
(739,503)
(405,969)
634,829
857,204
10,156
24,032
77,265
7,263
13,722
64,387
111,453
85,372
19,683
18,516
26,021
30,356
Consolidated
2023
$
2022
$
(2,248,995)
(2,007,194)
(674,699)
(501,799)
28,435
-
(646,264)
806,908
80,252
(240,896)
(501,799)
410,049
91,750
-
-
-
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 7. Income tax (continued)
Deferred tax
Recognised deferred tax assets
Amounts recognised in profit or loss:
Tax losses
Business related costs
Plant and equipment
Accured expenses
Lease liabilities and right-of-use assets
Provisions
Recognised deferred tax liabilities
Amounts recognised in profit or loss:
Exploration expenditure
Leasehold improvements
Net deferred tax recognised
The following is the potential benefit of the unrecognised deferred tax assets:
Unrecognised tax losses
Unrecognised capital losses
Potential tax benefit @ 30% (2022: 25%)
Consolidated
2023
$
2022
$
2,828,246
229,566
1,277
18,216
128,737
28,374
3,234,416
1,197,539
65,456
121
13,116
123,072
9,928
1,409,232
(3,114,655)
(119,761)
(3,234,416)
(1,290,115)
(119,117)
(1,409,232)
-
-
Consolidated
2023
$
2022
$
31,007,890 28,050,703
870,233
31,878,123 28,920,936
870,233
9,563,437
7,230,234
The above potential tax benefit for tax losses has not been recognised in the statement of financial position as the recovery
of this benefit is uncertain. The tax losses can only be utilised in the future if the continuity of ownership test is passed, or
failing that, the same business test is passed.
Accounting policy for income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable
income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary
differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the
assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:
When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
●
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor
taxable profits; or
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the
timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.
●
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
28
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 7. Income tax (continued)
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax
assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the
carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable
that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against
current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on
either the same taxable entity or different taxable entities which intend to settle simultaneously.
Metallica Minerals Limited (the 'head entity') and its wholly-owned Australian subsidiaries have formed an income tax
consolidated group under the tax consolidation regime. The head entity and each subsidiary in the tax consolidated group
continue to account for their own current and deferred tax amounts. The tax consolidated group has applied the group
allocation approach in determining the appropriate amount of taxes to allocate to members of the tax consolidated group.
In addition to its own current and deferred tax amounts, the head entity also recognises the current tax liabilities (or assets)
and the deferred tax assets arising from unused tax losses and unused tax credits assumed from each subsidiary in the tax
consolidated group.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts
receivable from or payable to other entities in the tax consolidated group. The tax funding arrangement ensures that the
intercompany charge equals the current tax liability or benefit of each tax consolidated group member, resulting in neither a
contribution by the head entity to the subsidiaries nor a distribution by the subsidiaries to the head entity.
Note 8. Cash and cash equivalents
Current assets
Cash at bank
Cash on deposit
Consolidated
2023
$
2022
$
2,519,676
4,587,248
1,933,300
3,326,395
7,106,924
5,259,695
Accounting policy for cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
Note 9. Trade and other receivables
Current assets
Trade receivables
Other receivables
GST receivable
Consolidated
2023
$
2022
$
-
33
23,399
740
33
58,752
23,432
59,525
Accounting policy for trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30
days.
29
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 9. Trade and other receivables (continued)
The consolidated entity has applied the simplified approach to measuring expected credit losses, which uses a lifetime
expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days
overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Note 10. Other non-current assets
Non-current assets
Security deposits - tenements and rental properties
Note 11. Plant and equipment
Non-current assets
Plant and equipment - at cost
Less: Accumulated depreciation
Motor vehicles - at cost
Less: Accumulated depreciation
Consolidated
2023
$
2022
$
67,498
73,498
Consolidated
2023
$
2022
$
113,212
(70,542)
42,670
98,896
(37,754)
61,142
75,317
(60,386)
14,931
98,896
(13,722)
85,174
103,812
100,105
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2021
Additions
Depreciation expense
Balance at 30 June 2022
Additions
Depreciation expense
Balance at 30 June 2023
Plant and
equipment
$
Motor
vehicles
$
10,788
11,406
(7,263)
14,931
37,895
(10,156)
-
98,896
(13,722)
85,174
-
(24,032)
Total
$
10,788
110,302
(20,985)
100,105
37,895
(34,188)
42,670
61,142
103,812
Accounting policy for property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
30
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 11. Plant and equipment (continued)
Depreciation is calculated on a straight-line basis to write off the net cost of each item of plant and equipment over their
expected useful lives as follows:
Plant and equipment
Motor vehicles
33% per annum
33% per annum
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the
consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
Note 12. Right-of-use assets
Non-current assets
Land and buildings - right-of-use
Less: Accumulated depreciation
Consolidated
2023
$
2022
$
540,854
(141,652)
540,854
(64,387)
399,202
476,467
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2021
Additions
Depreciation expense
Balance at 30 June 2022
Depreciation expense
Balance at 30 June 2023
Land and
buildings
$
-
540,854
(64,387)
476,467
(77,265)
399,202
On 23 July 2021, the company entered into a 4-year lease for office premises.
Accounting policy for right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the
cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and
restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful
life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the leased asset at
the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or
adjusted for any remeasurement of lease liabilities. The company has an option to extend the lease for 3 years, which the
Directors believe will be probable. As such, the depreciation has been calculated over a period of 7 years.
31
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 12. Right-of-use assets (continued)
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for short-term
leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to
profit or loss as incurred.
Note 13. Exploration and evaluation
Non-current assets
Exploration and evaluation expenditure
Consolidated
2023
$
2022
$
10,382,182
5,160,459
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2021
Additions (i)
Balance at 30 June 2022
Additions (ii)
Impairment of the Clermont Project (iii)
Balance at 30 June 2023
Exploration &
evaluation
$
1,183,081
3,977,378
5,160,459
5,857,217
(635,494)
10,382,182
(i)
Includes $273,167 of E&E expenditure on EPM 17968, Clermont project. At 30 June 2022, the Clermont project was
25% owned by the consolidated group. Expenditure at EPM 17968 was recorded as E&E from the point that the farm-
in criteria were met (see note 25). The earn-in arrangement entered into in respect of the Clermont Project has been
accounted for in accordance with the Exploration and evaluation assets accounting policy below.
(ii) Includes $362,327 of E&E expenditure on EPM 17968, Clermont project.
(iii) The impairment for Clermont was in response to the further drilling undertaken during the 2023 year. Fine
disseminations of pyrite, chalcopyrite and molybdenum were observed in the rock matrix but with a concentration of
less than 1% total sulphides. As a result, it was concluded that the intense magnetic low was not explained by the
results of the deepened drill hole, with the magnetic susceptibility readings remaining constant down the hole, however
the drill hole trace through the modelled anomaly indicates the magnetic low was tested.
The ultimate recoupment of costs carried forward for exploration and evaluation phases is dependent upon successful
development and commercial exploitation or sale of the respective areas of interest.
Accounting policy for exploration and evaluation assets
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried
forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through
the successful development and exploitation of an area of interest, or by its sale; or exploration activities are continuing in
an area and activities have not reached a stage which permits a reasonable estimate of the existence or otherwise of
economically recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure incurred
thereon is written off in the year in which the decision is made.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying
amount of an exploration and evaluation asset may exceed its recoverable amount.
32
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 14. Trade and other payables
Current liabilities
Trade payables
Other payables
Consolidated
2023
$
2022
$
637,666
33,244
817,340
21,260
670,910
838,600
Refer to note 21 for further information on financial instruments.
Accounting policy for trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial
year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The
amounts are unsecured and are usually paid within 30 days of recognition.
Note 15. Lease liabilities
Current liabilities
Lease liability - land and buildings
Non-current liabilities
Lease liability - land and buildings
Consolidated
2023
$
2022
$
68,878
63,163
356,404
425,282
425,282
488,445
Refer to note 21 for further information on financial instruments.
On 23 July 2021, the company entered into a 4-year lease for office premises. The company has an option to extend the
lease for 3 years. The company has included the lease option in the calculation of the lease liability.
Accounting policy for lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present
value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or,
if that rate cannot be readily determined, the consolidated entity's incremental borrowing rate. Lease payments comprise of
fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts
expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is
reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on
an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured
if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual
guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an
adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset
is fully written down.
At commencement date and each subsequent reporting date, the company assesses where it is reasonably certain that the
extension options will be exercised. Only options where the entity is reasonably certain that the extension options will be
exercised are included in the calculation of the lease liability and right of use asset.
33
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 16. Employee benefits
Current liabilities
Annual leave
Long service leave
Accounting policy for employee benefits
Consolidated
2023
$
2022
$
84,029
10,505
30,823
8,890
94,534
39,713
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities
are settled.
Note 17. Provisions
Non-current liabilities
Lease make good
Consolidated
2023
$
2022
$
3,842
3,842
Movements in provisions
Movements in each class of provision during the current financial year, other than employee benefits, are set out below:
Consolidated - 2023
Carrying amount at the start of the year
Unwinding of discount
Carrying amount at the end of the year
Lease
make good
$
3,842
-
3,842
Accounting policy for provisions
Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result of a past
event, it is probable the consolidated entity will be required to settle the obligation, and a reliable estimate can be made of
the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to
settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation.
If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The
increase in the provision resulting from the passage of time is recognised as a finance cost.
Note 18. Issued capital
Ordinary shares - fully paid
956,898,922 665,926,366 63,293,132 53,865,383
Consolidated
2023
Shares
2022
Shares
2023
$
2022
$
34
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 18. Issued capital (continued)
(a) Movements in ordinary share capital
Details
Date
Shares
Issue price
$
Balance
Share option exercised - funded by limited recourse
loans (i)
Shares for services rendered
Placement (ii)
Share issue costs
1 July 2021
557,732,777
50,896,470
27 July 2021
22 October 2021
18 February 2022
10,000,000
290,363
97,903,226
$0.000
$0.031
$0.031
-
9,000
3,035,000
(75,087)
Balance
Performance rights exercised
Share placement (ii)
Shares issued under entitlement offer (ii)
Share options (i)
Transfer from share-based payments reserve (note 19)
Share issue costs
30 June 2022
26 August 2022
7 December 2022
23 December 2022
665,926,366
4,773,335
145,000,000
141,199,221
$0.000
$0.035
$0.032
53,865,383
-
5,075,000
4,518,375
290,000
144,199
(599,825)
Balance
30 June 2023
956,898,922
63,293,132
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion
to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company
does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
(i) Options
On 27 July 2021, the company allotted 10,000,000 shares for the exercise of employee options held by Directors, and entered
into limited recourse loan agreements with three Directors as outlined in the EGM held on 7 July 2021 and Notice of Meeting
dated 7 and 8 June 2021. Under Accounting Standard AASB 2 Share-based payment, the issuance of these shares was
accounted for as an in-substance option award (refer to note 32). The shares were subject to escrow until 23 December
2022. The shares were issued in the 30 June 2022 financial year and the loans were repaid during the 30 June 2023 financial
year.
(ii) Placement and entitlement offer
2022
On 18 February 2022, the company issued 97,903,226 ordinary shares pursuant to a private placement with institutional and
sophisticated investors at an issue price of $0.031 per share. The company issued a total of 41,608,871 free attaching options
in connection with the placement on the basis of 1 option for every 2 shares taken up. The options are listed on the Australian
Securities Exchange (ASX) and are exercisable at $0.06 each at any time prior to 5.00pm (AEST) on 25 March 2024. There
are no participation rights or entitlements inherent in the options and an option holder will not be entitled to participate in new
issues of capital offered to the company's shareholders during the term of the option. The issue of the options exceeded the
company's placement limit under the ASX Listing Rules 7.1 and 7.1A. The issue of 7,342,742 options was approved by the
company's shareholders at an Extraordinary General Meeting held on 7 April 2022, and the issue of 34,266,129 options and
the 97,903,226 shares was ratified at the same meeting.
2023
On 7 December 2022, the company issued 145,000,000 fully paid ordinary shares to three investors in terms of a share
placement and raised $5,075,000 before share issue costs.
On 23 December 2022, the company issued 141,199,221 fully paid ordinary shares in terms of a non-renounceable
entitlement offer to existing shareholders and raised $4,518,375 before share issue costs.
The share placement and entitlement offer were fully underwritten.
35
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 18. Issued capital (continued)
(b) Options
As at 30 June 2023, there were 180,630,577 unissued ordinary shares of Metallica Minerals Limited under option, held as
follows:
Quoted options (ASX: MLMOB)
Quoted options (ASX: MLMOB)
Quoted options (ASX: MLMOB)
Unlisted options
Exercise price Expiry
Number
$
130,678,964
41,608,871
7,342,742
1,000,000
180,630,577
$0.060 25 March 2024
$0.060 25 March 2024
$0.060 25 March 2024
$0.700 No expiry
(c) Share buy-back
There is no current on-market share buy-back.
(d) Capital risk management
The consolidated entity's objectives when managing capital are to safeguard its ability to continue as a going concern, so
that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure
to reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated
as total borrowings less cash and cash equivalents.
The capital structure of the consolidated entity consists of equity attributable to equity holders of the parent entity comprising
of issued capital, reserves and accumulated losses as disclosed in the statement of changes in equity. In common with many
other exploration companies, the parent raises finance for the consolidated entity's exploration and appraisal activities in
discrete tranches.
Management effectively manages the consolidated entity's capital by assessing the consolidated entity's financial risks and
adjusting its capital structure in response to changes in these risks and in the market.
There are no externally imposed capital requirements.
The capital risk management policy remains unchanged from the 2022 Annual Report.
The consolidated entity monitors capital on the basis of its working capital position (i.e. liquidity risk). The net working capital
of the consolidated entity at 30 June 2023 was $6,296,034 (2022: $4,377,744).
Accounting policy for issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
Note 19. Reserves
Share-based payments reserve
Consolidated
2023
$
2022
$
291,770
590,844
36
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 19. Reserves (continued)
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their
remuneration, and other parties as part of their compensation for services. When the equity benefits are exercised or lapsed
the value is transferred to issued capital.
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Consolidated
Balance at 1 July 2021
Share based payments
Balance at 30 June 2022
Share based payments
Transfer to issued capital (note 18)
Transfer to accumulated losses
Balance at 30 June 2023
Note 20. Dividends
Share-based
payments
reserve
$
219,747
371,097
590,844
94,778
(144,199)
(249,653)
291,770
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 21. Financial instruments
Financial risk management objectives
Risk management is carried out under policies set by the board of directors. The board provides principles for overall risk
management, as well as policies covering specific areas.
The board monitors and manages the financial risk relating to the operations of the consolidated entity. The consolidated
entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk and interest
rate risk), credit risk and liquidity risk. The consolidated entity's overall risk management program focuses on the
unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the
consolidated entity. The consolidated entity does not enter into or trade financial instruments, including derivative financial
instruments, for speculative purposes.
Market risk
Foreign currency risk
The consolidated entity does not currently have any significant exposure to foreign currency risk.
Price risk
The consolidated entity does not currently have any significant exposure to price risk.
Interest rate risk
The consolidated entity’s main interest rate risk arises from cash and cash equivalents.
37
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 21. Financial instruments (continued)
Consolidated
Cash at bank
Cash on deposit
2023
2022
Weighted
average
interest rate
%
Weighted
average
interest rate
%
Balance
$
Balance
$
-
4.55%
2,519,676
4,587,248
-
1.18%
1,933,300
3,326,395
Net exposure to cash flow interest rate risk
7,106,924
5,259,695
At 30 June 2023, if interest rates had increased by 175 basis points (bps) from the year end rates with all other variables
held constant, post-tax loss for the year would have been $124,371 lower (2022 changes of 175 bps: $92,045 lower), as a
result of higher interest income from cash and cash equivalents.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
consolidated entity. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying
amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to
the financial statements. The consolidated entity's current activities do not expose it to any significant credit risk.
Liquidity risk
Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
The consolidated entity manages liquidity risk by maintaining adequate cash reserves by continuously monitoring actual and
forecast cash flows and matching the maturity profiles of financial assets and liabilities.
Remaining contractual maturities
The following tables detail the consolidated entity's remaining contractual maturity for its financial liabilities. The tables have
been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the financial
liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining contractual
maturities and therefore these totals may differ from their carrying amount in the statement of financial position.
Consolidated - 2023
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Interest-bearing
Lease liability
Total non-derivatives
1 year or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over 5 years
$
Remaining
contractual
maturities
$
637,666
33,244
-
-
-
-
-
-
637,666
33,244
85,748
756,658
88,749
88,749
285,322
285,322
11,493
11,493
471,312
1,142,222
38
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 21. Financial instruments (continued)
Consolidated - 2022
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Interest-bearing
Lease liability
Total non-derivatives
1 year or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over 5 years
$
Remaining
contractual
maturities
$
817,340
21,260
-
-
-
-
-
-
817,340
21,260
82,848
921,448
174,496
174,496
285,322
285,322
16,493
16,493
559,159
1,397,759
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
Fair value of financial instruments
Due to their short-term nature the carrying amounts of financial instruments reflect their fair value.
Note 22. Key management personnel disclosures
Compensation
The aggregate compensation made to directors and other members of key management personnel of the consolidated entity
is set out below:
Short-term employee benefits
Post-employment benefits
Share-based payments
Consolidated
2023
$
2022
$
388,891
34,534
282,675
359,140
23,111
236,024
706,100
618,275
Loans to Key Management Personnel
On 27 July 2021, the company allotted 10,000,000 shares for the exercise of employee options held by Directors at $0.029
per share in terms of the Employee Equity Incentive Plan (refer to note 32). The shares were funded by limited recourse
loans with three Directors as outlined in the Extraordinary General Meeting held on 7 July 2021 and Notice of Meeting dated
7 and 8 June 2021. Under Accounting Standard AASB 2 Share-based payment, the issuance of these shares was accounted
for as an in-substance option award. The fair value of these equity instruments was assessed by Directors based on an
independent valuation (using an option-pricing model) and are recorded in the Share-based payments reserve (note 19).
The shares were subject to escrow until 23 December 2022. The loans were repaid prior to 30 June 2023.
Note 23. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by Moore Australia Audit (QLD/NNSW),
the auditor of the company:
Audit services - Moore Australia Audit (QLD/NNSW)
Audit or review of the financial statements
39
Consolidated
2023
$
2022
$
50,513
42,840
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 24. Contingent assets
In respect of the disposal of the SCONI Project in September 2017, additional consideration of $2,500,000 in cash or shares
in Australian Mines Limited (the Production Payment), will be payable to the company on commencement of Australian Mines
Limited achieving commercial production on the project. This additional consideration has not been recognised in the 30
June 2023 financial statements, as the receipt of the additional consideration is not virtually certain. The commencement of
commercial production from the SCONI Project requires favourable commodity prices and markets, availability of significant
funding and various government approvals.
Note 25. Contingent liabilities
The consolidated entity does not believe it has any contingent liability at 30 June 2023.
Note 26. Commitments
Commitments for minimum expenditure on exploration permits
Committed at the reporting date but not recognised as liabilities, payable:
Within one year
One to five years
Commitments for environmental authority annual fee
Committed at the reporting date but not recognised as liabilities, payable:
Within one year
One to five years
Tenement rentals
Committed at the reporting date but not recognised as liabilities, payable:
Within one year
One to five years
Consolidated
2023
$
2022
$
101,900
158,174
41,770
79,858
260,074
121,628
1,137
1,665
1,099
3,070
2,802
4,169
11,394
13,514
11,740
25,357
24,908
37,097
Commitments for minimum expenditure on exploration permits
The consolidated entity has certain commitments to meet minimum annual expenditure requirements on the mineral
exploration assets it has an interest in that were granted or renewed prior to May 2020. Any shortfalls are carried forward to
subsequent years.
Amendments to the Mineral Resources Act 1989 (MRA) were introduced under the Natural Resources and Other Legislation
Amendment Act 2019 (NROLA) and commenced on 25 May 2020. Under NROLA, expenditure commitments are no longer
a condition of grant or renewal of an exploration permit and have been replaced by a work program as a condition of grant
or renewal.
Note 27. Related party transactions
Parent entity
Metallica Minerals Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 29.
40
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 27. Related party transactions (continued)
Key management personnel
Disclosures relating to key management personnel are set out in note 22 and the remuneration report included in the
directors' report.
Transactions with related parties
There were no transactions with related parties during the current and previous financial year other than those reported
elsewhere in the financial report and remuneration report.
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Note 28. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Loss after income tax
Other comprehensive income for the year, net of tax
Total comprehensive income
Statement of financial position
Total current assets
Total non-current assets
Total assets
Total current liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Share-based payments reserve
Accumulated losses
Total equity
41
Parent
2023
$
2022
$
(2,218,716)
(3,822,807)
-
-
(2,218,716)
(3,822,807)
Parent
2023
$
2022
$
6,997,851
5,068,196
10,615,303
5,417,752
17,613,154 10,485,948
6,359,522
6,323,049
360,246
429,124
6,719,768
6,752,173
10,893,386
3,733,775
63,293,132 53,865,383
590,844
(50,722,452)
291,770
(52,691,516)
10,893,386
3,733,775
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 28. Parent entity information (continued)
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2023 and 30 June 2022.
Contingent liabilities
The parent entity believes it has no contingent liabilities as at 30 June 2023 and 30 June 2022.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2023 and 30 June 2022.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1, except
for the following:
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Note 29. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in note 1:
Name
NORNICO Pty Limited
Greenvale Operations Pty Limited*
Lucky Break Operations Pty Limited
PGE Pty Limited**
Cape Flattery Pty Limited
Phoenix Lime Pty Limited
Touchstone Resources Pty Limited
Principal place of business /
Country of incorporation
Ownership interest
2022
2023
%
%
Australia
Australia
Australia
Australia
Australia
Australia
Australia
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
*
**
Greenvale Operations Pty Limited is a wholly owned subsidiary of NORNICO Pty Limited.
PGE Pty Limited is a wholly owned subsidiary of Lucky Break Operations Pty Limited.
Unless otherwise stated, the subsidiaries have share capital consisting solely of ordinary shares that are held directly by the
consolidated entity, and the proportion of ownership interests is equal to the proportion of voting rights held by the
consolidated entity.
Significant restrictions
There are no significant restrictions on the ability of the consolidated entity to access or use the assets and settle the liabilities
of the consolidated entity.
Note 30. Events after the reporting period
Completion of the Definitive Feasibility Study (DFS, see ASX release dated 17 July 2023).
On 4 July 2023, the company announced that it had met the additional expenditure commitment to earn a 51% share of the
Clermont Project.
Subsequent to the reporting date, 17,675,000 performance rights were forfeited, and 3,025,000 performance rights were
exercised.
No other matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
42
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 31. Earnings per share
Consolidated
2023
$
2022
$
Loss after income tax attributable to the owners of Metallica Minerals Limited
(2,248,995)
(2,007,194)
Weighted average number of ordinary shares used in calculating basic earnings per share
825,303,935 602,895,244
Weighted average number of ordinary shares used in calculating diluted earnings per share 825,303,935 602,895,244
Number
Number
Basic earnings per share
Diluted earnings per share
Cents
Cents
(0.27)
(0.27)
(0.33)
(0.33)
Share options are considered to be potential ordinary shares but were anti-dilutive in nature for the 30 June 2023 financial
year and were not included in the calculation of diluted earnings per share. These options could potentially dilute basic
earnings per share in the future.
Accounting policy for earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Metallica Minerals Limited, 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 financial 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.
Note 32. Share-based payments
(a) Employee Equity Incentive Plan (EEIP)
At an Extraordinary General Meeting (EGM) held on 7 July 2021, the company's shareholders approved the following:
(1) A new Employee Equity Incentive Plan (EEIP).
(2) The issue of a total of 4,030,000 Performance Rights to the following Directors: Scott Waddell, Theo Psaros, Mark
Bojanjac, and Brad Sampson.
(3) Cashless loans to the following Directors: Scott Waddell, Theo Psaros and Andrew Gillies, for the exercise of employee
options held by them.
The EEIP is open to certain contractors and employees (including Directors) of the company who are invited by the Board to
participate in the EEIP (Participants). The Board may invite Participants to apply for shares (including in these terms and
conditions, a right to the issue of a share), performance rights and/or options under the EEIP in its absolute discretion.
The vesting of a performance right will be conditional on the satisfaction of any conditions and performance hurdles attaching
to the performance right. Performance hurdles will be determined by the Board in its discretion and specified in the
Participant's invitation letter.
The vesting of an option will be conditional on the satisfaction of any conditions attaching to the option. Conditions will be
determined by the Board in its discretion and specified in the Participant's invitation letter.
Each performance right will entitle a Participant to one share upon vesting. Each option will entitle a Participant upon vesting
to subscribe for one share at the exercise price specified by the Board in the Participant’s invitation letter.
43
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 32. Share-based payments (continued)
The follow performance rights have been granted under the EEIP:
(i) On 27 July 2021, the company allotted 10,000,000 shares for the exercise of employee options held by three Directors,
and entered into limited recourse loan agreements with the three Directors as outlined in the Extraordinary General Meeting
held on 7 July 2021 and Notice of Meeting dated 7 and 8 June 2021. Under Accounting Standard AASB 2 Share-based
payment, the issuance of these shares has been accounted for as an in-substance option award. The fair value of these
equity instruments was assessed by Directors based on an independent valuation (using an option-pricing model) and are
recorded in the Share-based payments reserve (note 19). The fair value of the equity instruments granted was estimated at
the date of grant using the Black Scholes model taking into account the terms and conditions upon which the shares were
granted. The value brought to account as a share-based payment expense in the year ended 30 June 2022 was $210,000.
The in-substance options vested on the grant date.
(ii) On 2 August 2021, the company issued 7,160,000 performance rights to Directors and employees based on the terms
detailed at the EGM held on 7 July 2021 and Notice of Meeting dated 7 and 8 June 2021. These terms included that the
employee was required to continue their employment until the vesting date.
The performance rights convert in 3 equal tranches into ordinary shares on achievement of the following performance hurdles
(Hurdles):
Hurdle 1:
The VWAP of the Metallica Minerals Limited (MLM) share price for the month of June 2022 (based on trading
days during that month) is at least 20% higher than the VWAP of the MLM share price for the month of June
2021.
Hurdle 2:
The total JORC resource of silica sand held by the company in relation to its Cape Flattery Silica Sand
Project is at least 50 million tonnes, with at least 25 million tonnes included at the measured and/or Indicated
JORC category.
Hurdle 3:
The company has successfully completed the Pre-Feasibility Study for the Cape Flattery Silica Project and
released the results of this study to the ASX.
(iii) On 26 August 2022, the company granted 8,500,000 performance rights to employees of the company under the
Employee Equity Incentive Plan (EEIP). The rights vest on 25 July 2023 and expire on 23 August 2023. The performance
rights convert in 4 equal tranches into ordinary shares on achievement of performance hurdles 1 - 4. The value of these
performance rights at grant date was $240,125.
(iv) On 18 October 2022, the company granted 2,700,000 performance rights to employees of the company under the EEIP.
The rights vest on 25 July 2023 and expire on 23 August 2023. The performance rights convert in 4 equal tranches into
ordinary shares on achievement of performance hurdles 1 - 4. The value of these performance rights at grant date was
$110,700.
(v) On 17 November 2022, the company granted 4,500,000 performance rights to the Executive Chairman and 5,000,000
performance rights to the Non-Executive Directors of the company under the EEIP. The rights vest on 25 July 2023 and
expire on 23 August 2023.
The performance rights convert into ordinary shares as follows:
●
Executive Chairman - The performance rights convert in 4 equal tranches into ordinary shares on achievement of
performance hurdles 1 - 4.
Non-Executive Directors - The performance rights convert in 3 equal tranches into ordinary shares on achievement of
performance hurdles 1 - 3.
●
44
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 32. Share-based payments (continued)
The following are the performance hurdles (Hurdles) for the performance rights granted during the year:
Hurdle 1:
The VWAP of the Metallica Minerals Limited (MLM) share price for the month of June 2023 (based on trading
days during that month) is at least 20% higher than the VWAP of the MLM share price for the month of June
2022.
Hurdle 2:
The company signs Mining Agreement and Cultural Heritage Management Agreement with TLO parties.
Hurdle 3:
The company has successfully completed the Definitive Feasibility Study for the Cape Flattery Silica Project
and released the results of this study to the ASX.
Hurdle 4:
Personal performance based on the rating provided in the HR Performance Management System – The
number of performance rights will be pro-rata based on the rating received.
The performance rights will vest and convert into shares on the date the vesting notice is provided to the employee. The offer
terms included that the employee was required to continue their employment until the vesting date.
(b) Incentive Plan
At the Annual General Meeting held on 29 November 2016, the company's shareholders approved the issue of share rights
to key employees under the company's incentive plan approved the Board of Directors on 24 October 2016. The purpose of
the incentive plan is to:
(a) assist in the reward, retention and motivation of participants;
(b) align the interests of participants with the interests of the company's shareholders;
(c) promote the long-term success of the company and provide greater incentive for participants to focus on the company's
longer term goals;
(d) link the reward of participants to the performance of the company and the creation of shareholder value; and
(e) provide participants with the opportunity to share in any future growth in value of the company.
Under the plan eligible participants may be granted share rights for nil consideration (unless otherwise provided under the
relevant offer), which vest if certain vesting conditions are met. Upon vesting, subject to any exercise conditions, each share
right entitles the participant to one share in the company.
On 23 December 2019, the company granted 10,000,000 unlisted options to its Directors pursuant to the employee equity
incentive plan as approved at the company's annual general meeting on 29 November 2019. Theo Psaros and Andrew Gillies
were each granted 3,000,000 options and Scott Waddell was granted 4,000,000 options, for nil consideration. The options
vested if the Metallica Minerals Limited share price traded at more than 2.9 cents for 5 days. The options were exercisable
at 2.9 cents and expired on 23 June 2022. Any shares issued on exercise of the options are escrowed until 23 December
2022. The value of these options at the grant date was $37,000. On 27 July 2021, the company allotted 10,000,000 shares
for the exercise of the options and entered into limited recourse loan agreements with the three Directors as outlined in the
Extraordinary General Meeting held on 7 July 2021 and Notice of Meeting dated 7 and 8 June 2021.
(c) Other option issues
On 27 April 2021, the company issued 14,001,322 listed options to Mahe Capital Pty Ltd (Mahe) pursuant to the company's
underwriting agreement with Mahe. The options vested on the grant date and are exercisable at 6 cents through to 25 March
2024. The value of the options at the grant date was $196,990.
(d) Movements in options and performance rights
Set out below are summaries of options granted:
2023
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
27/04/2021
27/07/2021
25/03/2024
31/12/2022
$0.060 14,001,322
$0.029 10,000,000
24,001,322
-
-
-
-
-
-
- 14,001,322
(10,000,000)
-
(10,000,000) 14,001,322
45
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 32. Share-based payments (continued)
Weighted average exercise price
$0.047
$0.000
$0.000
$0.029
$0.060
2022
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted*
Exercised*
Expired/
forfeited/
other
Balance at
the end of
the year
23/12/2019
27/04/2021
27/07/2021
23/06/2022
25/03/2024
31/12/2022
$0.029 10,000,000
$0.060 14,001,322
$0.029
-
-
- 10,000,000
24,001,322 10,000,000
(10,000,000)
-
-
(10,000,000)
-
-
- 14,001,322
- 10,000,000
- 24,001,322
Weighted average exercise price
$0.047
$0.029
$0.029
$0.000
$0.047
*
Limited recourse loans were granted for the 10,000,000 options exercised. These loans were treated as in-substance
options.
Note that the exercise price of the 10m options granted 23/12/2019 decreased from $0.030 to $0.029 due to the discount
that arose on the rights issue, where the Prospectus was announced on 25 March 2021.
The weighted average remaining contractual life of options outstanding at 30 June 2023 was 0.74 years (30 June 2022: 1.22
years).
Set out below are summaries of performance rights granted under the EEIP:
2023
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Exercised*
Expired/
forfeited/
other
Balance at
the end of
the year
07/07/2021
26/08/2022
18/10/2022
17/11/2022
19/08/2022
23/08/2023
23/08/2023
23/08/2023
$0.000
$0.000
$0.000
$0.000
4,773,335
-
-
-
-
8,500,000
2,700,000
9,500,000
4,773,335 20,700,000
(4,773,335)
-
-
-
(4,773,335)
-
(6,225,000)
(2,700,000)
(8,750,000)
(17,675,000)
-
2,275,000
-
750,000
3,025,000
*
The weighted average share price at the date of exercise of performance rights exercised during the year ended 30
June 2023 was $0.030.
2022
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
07/07/2021
19/08/2022
$0.000
-
-
7,160,000
7,160,000
-
-
(2,386,665)
(2,386,665)
4,773,335
4,773,335
46
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 32. Share-based payments (continued)
(e) Measurement of fair values
Options granted:
The fair value of options granted during the prior financial years was measured using the Black-Scholes option pricing model.
For the options granted during the prior financial years, the valuation model inputs used to determine the fair value at the
grant date, are as follows:
Grant date
Expiry date
Share price Exercise
at grant date
price
Expected
volatility
Dividend
Risk-free
Fair value
yield
interest rate at grant date
27/04/2021
27/07/2021
25/03/2024
31/12/2022
$0.029
$0.036
$0.060
$0.029
100.580%
116.440%
-
-
0.110%
0.060%
$0.014
$0.021
The options granted on 27 July 2021, relate to the limited recourse loans which have been accounted for as in-substance
options.
Performance rights granted:
The fair value of performance rights granted during the current and prior financial years was measured using the Monte Carlo
simulation pricing model for Hurdle 1 and the Binomial pricing model for Hurdles 2, 3 and 4. For the performance rights
granted during the current and prior financial years, the valuation model inputs used to determine the fair value at the grant
date, are as follows:
Grant date
Expiry date
07/07/2021
07/07/2021
26/08/2022
26/08/2022
18/10/2022
18/10/2022
17/11/2022
17/11/2022
19/08/2022
19/08/2022
23/08/2023
23/08/2023
23/08/2023
23/08/2023
23/08/2023
23/08/2023
Share price Exercise
at grant date
price
Expected
volatility
Dividend
Risk-free
Fair value
yield
interest rate at grant date
$0.036
$0.036
$0.031
$0.031
$0.043
$0.043
$0.036
$0.036
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
113.020%
113.020%
79.823%
79.823%
84.790%
84.790%
85.065%
85.065%
-
-
-
-
-
-
-
-
0.060%
0.060%
3.030%
3.030%
3.300%
3.300%
3.100%
3.100%
$0.024
$0.034
$0.020
$0.031
$0.035
$0.043
$0.026
$0.036
The expected price volatility is based on the historic volatility (based on the remaining life of the options/rights), adjusted for
any expected changes to future volatility due to publicly available information.
(f) Share-based payments expense
Expense from share-based payments
Accounting policy for share-based payments
Equity-settled share-based compensation benefits are provided to employees.
Consolidated
2023
$
2022
$
94,778
371,097
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the
rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash
is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using
either the Black-Scholes or Binomial or Monte Carlo option pricing models that takes into account the exercise price, the
term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share,
the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that
do not determine whether the consolidated entity receives the services that entitle the employees to receive payment. Vesting
conditions, other than market conditions, attached to equity instruments granted are not taken into account when estimating
the fair value at measurement date.
47
Metallica Minerals Limited
Notes to the financial statements
30 June 2023
Note 32. Share-based payments (continued)
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting
period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate
of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit
or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value
of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition is
treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not satisfied
during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the
award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense
is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award
is treated as if they were a modification.
Note 33. Cash flow information
Reconciliation of loss after income tax to net cash used in operating activities
Loss after income tax expense for the year
(2,248,995)
(2,007,194)
Consolidated
2023
$
2022
$
Adjustments for:
Depreciation and amortisation
Share-based payments
Impairment of exploration and evaluation
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
Increase/(decrease) in trade and other payables
Increase in employee benefits
Increase in other provisions
Net cash used in operating activities
111,453
94,778
635,494
85,372
371,097
-
36,093
(167,690)
54,821
-
(13,602)
456,578
28,266
3,842
(1,484,046)
(1,075,641)
48
Moore Australia Audit
Level 12, 10 Eagle Street
Brisbane QLD 4000
GPO Box 475
Brisbane QLD 4001
T +61 7 3340 3800
F +61 7 3340 3700
www.moore-australia.com.au
Independent Audit Report
To the members of Metallica Minerals Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Metallica Minerals Limited (the Company) and its subsidiaries (the
“Group”), which comprises the consolidated statement of financial position as at 30 June 2023, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its financial
performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described 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 (including
Independence Standards) (the “Code”) that are relevant to our audit of the financial report in Australia. We
have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
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.
Moore Australia Audit (QLD/NNSW) – ABN 33 050 150 130.
An independent member of Moore Global Network Limited - members in principal cities throughout the world.
Liability limited by a scheme approved under Professional Standards Legislation.
50
Key audit matter
How the matter was addressed in our audit
Going concern
Refer to Note 1 Significant accounting policies, detailing going concern
Note 1 of the financial statements
outlines the basis of preparation of
financial statements which indicates
they are being prepared on a going
concern basis. As the group
generates no revenue and is reliant
on funding from other sources such
as capital raising, there is
significant judgement involved in
determining whether a material
uncertainty relating to going
concern exists and is critical to the
understanding of the financial
statements as a whole. As a result,
this matter was key to our audit.
In evaluating management’s assessment of the going
concern assumption, we performed the following procedures
but not limited to:
• Obtaining and evaluating management’s assessment of
the group’s ability to continue as a going concern
• Reviewing management’s assumptions in the cash flow
forecasts to assess whether current cash levels along
with expected cash inflows and expenditure can sustain
the operations of the Group for a period of at least 12
months from the date of signing of the financial
statements
• Assessing the cash flow forecasts provided by
management and challenging the assumptions therein to
determine if there is consistency with management’s
intention and stated business and operational objectives
• Performing a sensitivity analysis over cash flow forecasts
as prepared by management based on a number of
alternative scenarios
• Assessed the adequacy of the disclosures in relation to
going concern included in Note 1 to the financial report.
Carrying value of Capitalised Exploration & Evaluation Assets
Refer to Note 13 Exploration & Evaluation Assets
The carrying value of the Group's
exploration and evaluation asset is
impacted by the Group's ability, and
intention, to continue to explore this
asset. The results of exploration
work also determine to what extent
the mineral reserves and resources
may or may not be commercially
viable for extraction. This impacts
the ability of the Group to recover
the carrying value of the exploration
and evaluation assets either
through the successful
development or sale. Due to the
quantum of this asset and the
subjectivity involved in determining
whether it's carrying value will be
recovered through successful
development or sale, we have
determined this as a key audit
matter.
We have critically evaluated management’s assessment of
each impairment trigger per AASB 6 Exploration for and
Evaluation of Mineral Resources, including but not limited to:
• Reviewing the directors' assessment of the carrying value
of the exploration and evaluation costs, ensuring that
management have considered the effect of potential
impairment indicators, commodity prices and the stage of
the Group's project against the standard of AASB 6
• Obtaining from management a schedule of areas of
interest held by the Group and assessed as to whether
the Group had rights of tenure over the relevant
exploration areas by obtaining external confirmation from
the relevant government agency and also considered
whether the Group maintains tenements in good standing
• Making enquiries of management with respect to the
status of ongoing exploration programs in the respective
areas of interest and assessing the Group's cashflow
budget for the level of budgeted spend on exploration
projects
• Considering whether any other data exists which
indicates that the carrying amount of the exploration and
evaluation asset that is unlikely to be recovered in full
from successful development or by sale
• Assessed the appropriateness of the disclosures
included in Note 13 to the financial report.
53
Valuation of Share Based Payments
Refer to Note 32 Share Based Payments
Share Based Payments is a key
audit matter due to it being a
material transaction, the valuation
of which involves several key
assumptions and judgements
adopted by both management and
an independent valuer.
Our procedures will include the following tests, among others:
• Enquiring if there were any changes to the terms and
conditions of the SBP and obtaining confirmations from
KMPs regarding the amounts expensed during the year
• Reviewing minutes of meetings, ASX announcements,
agreements, & considered other transactions undertaken
during the year.
• Testing the mathematical accuracy of the total SBP
expensed during the financial year and ensuring these
were consistent with the valuation computed.
• Assess the methodology used by management and the
independent valuer to estimate the fair value of equity
instruments issued. This ensured the amounts expensed
during the year were consistent with the valuation model.
• Assessing whether these payments have been
appropriately disclosed and reported in the financial
statements
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 2023 but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, 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.
When we read the annual report, if we conclude that there is a material misstatement therein, we are
required to communicate the matter to the directors and will request that it is corrected. If it is not
corrected, we will seek to have the matter appropriately brought to the attention of users for whom our
report is prepared.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
52
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 as included in pages 6 to 13 of the directors’ report for the
year ended 30 June 2023.
In our opinion, the Remuneration Report of Metallica Minerals Limited, for the year ended 30 June 2023
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
Murray McDonald
Partner – Audit and Assurance
Moore Australia Audit (QLD/NNSW)
Brisbane
7 September 2023
Moore Australia Audit (QLD/NNSW)
Chartered Accountants
53
Metallica Minerals Limited
Shareholder information
30 June 2023
The shareholder information set out below was applicable as at 1 September 2023.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Ordinary shares
% of total
Options over ordinary
shares
% of total
Number
of holders
shares
issued
Number
of holders
shares
issued
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
53
30
40
801
535
4
2
3
55
37
1,459
100
Holding less than a marketable parcel
239
0.23
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
22
38
29
118
125
332
292
7
11
9
36
38
100
13.43
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
SIBELCO ASIA PACIFIC PTY LTD
SPARTA AG
DOSTAL NOMINEES PTY LTD
ROOKHARP CAPITAL PTY LIMITED
CITICORP NOMINEES PTY LIMITED
PLAN-1 PTY LTD
GEFRATO TRADING PTY LTD
SHADBOLT FUTURE FUND (TOTTENHAM) PTY LTD
SOPHJAK PTY LTD
GOUSSE HOLDINGS PTY LTD
SIBELCO ASIA PACIFIC PTY LTD
MACFORBES SUPER PTY LTD
CAROJON PTY LTD
MR GRAHAM RAYMOND WILLIAM DOW
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
BONDLINE LIMITED
MR DAVID GAZE
AZQ INVESTMENTS PTY LTD
NO BULL HEALTH PTY LTD
Ordinary shares
% of total
Number held
238,906,550
148,399,617
92,046,350
29,359,998
24,680,450
13,674,018
10,212,501
10,047,368
8,190,000
7,026,315
6,641,400
5,791,954
5,447,368
5,000,000
5,000,000
4,933,096
4,910,966
4,785,187
4,410,934
4,250,000
shares
issued
24.89
15.46
9.59
3.06
2.57
1.42
1.06
1.05
0.85
0.73
0.69
0.60
0.57
0.52
0.52
0.51
0.51
0.50
0.46
0.44
Total of Top 20 Shareholders
633,714,072
66.02
54
Metallica Minerals Limited
Shareholder information
30 June 2023
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
SPARTA AG
TANGO88 PTY LTD
DOSTAL NOMINEES PTY LTD
EQUITY TRUSTEES SUPERANNUATION LIMITED
OPEG (ORDU PRIVATE EQUITY GROUP) PTY LTD
MR PUNIT ARORA & MRS SHWETA ARORA
LATSOD PTY LTD
MR KEVIN JOHN HENDERSON
CALAMA HOLDINGS PTY LTD
ROOKHARP CAPITAL PTY LIMITED
MS AMANDA LEE GULICH
MR JOHN GERARD DONALDSON & MRS MARCIA LURLINE DONALDSON
BUCKINGHAM INVESTMENT FINANCIAL SERVICES PTY LTD
MRS MARCIA LURLINE DONALDSON
MR DAVID GAZE
JATTTS PTY LTD
K H DREDGE NOMINEES PTY LTD
MR XIAOBIN YANG
SCINTILLA STRATEGIC INVESTMENTS LIMITED
Total of Top 20 Option holders
Unquoted equity securities
Options over ordinary shares issued
Substantial holders
Substantial holders in the company are set out below:
ILWELLA PTY LTD
SIBELCO ASIA PACIFIC PTY LTD
SPARTA AG
Voting rights
The voting rights attached to ordinary shares are set out below:
Options over ordinary
shares
% of total
options
issued
Number held
55,360,215
32,258,065
19,468,507
6,669,167
3,000,000
2,983,333
2,640,000
2,000,000
1,805,000
1,750,000
1,666,666
1,650,250
1,525,000
1,500,000
1,471,921
1,445,062
1,325,000
1,250,000
1,083,787
1,000,000
30.82
17.96
10.84
3.71
1.67
1.66
1.47
1.11
1.00
0.97
0.93
0.92
0.85
0.84
0.82
0.80
0.74
0.70
0.60
0.56
141,851,973
78.97
Number
on issue
Number
of holders
1,000,000
1
Ordinary shares
% of total
Number held
231,451,245
157,024,617
92,046,350
shares
issued
24.11
16.36
9.59
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
There are no other classes of equity securities.
55