ANNUAL
REPORT
2022
Executive Chairman
Director
Director
Director
DIRECTORY
Directors
Paul Poli
Franciscus (Frank) Sibbel
Andrew Chapman
Pascal Blampain
Company Secretary
Andrew Chapman
Registered Office
Suite 11,
139 Newcastle Street
PERTH WA 6000
Tel: (08) 9230 3555
Fax: (08) 9227 0370
Email: reception@matsa.com.au
Postal Address
PO BOX 376
Northbridge W.A. 6865
Website
www.matsa.com.au
Share Registry
Advanced Share Registry Services
110 Stirling Highway
Nedlands WA 6009
Tel: (08) 9389 8033
Fax: (08) 9262 3723
Home Stock Exchange
Australian Securities Exchange Ltd
Level 40, Central Park
152-158 St George’s Terrace
Perth WA 6000
ASX Code: MAT
Auditors
Nexia Perth Audit Services Pty Ltd
Level 3
88 William Street
PERTH WA 6000
MATSA RESOURCES LIMITED - CONTENTS
2022 ANNUAL REPORT · PAGE 2
CORPORATE DIRECTORY
CHAIRMAN’S REPORT
OPERATIONS REVIEW
DIRECTORS’ REPORT
AUDITOR’S INDEPENDENCE DECLARATION
FINANCIAL STATEMENTS
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Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to and Forming Part of the Consolidated Financial Statements
DIRECTORS’ DECLARATION
INDEPENDENT AUDIT REPORT
ADDITIONAL ASX INFORMATION
SCHEDULE OF MINING TENEMENTS
1
3
4
34
49
50
51
52
53
54
96
97
100
106
MATSA RESOURCES LIMITED - CHAIRMAN’S REPORT
2022 ANNUAL REPORT · PAGE 3
Dear Shareholder,
Last year I noted that Matsa had focussed on developing a strategy that would serve the Company’s
future and create value for shareholders. This year Matsa has continued to reposition itself by building
on the delivery of that strategy.
To that end, Matsa now has an 886,000oz gold resource across the Lake Carey Gold Project, a
30% increase on the prior year, providing a pathway towards reaching a gold resource that would
support a Matsa owned processing plant. New optimisations undertaken for both the Fortitude and
Devon projects illustrated that under a Matsa owned and operated processing plant both projects
could generate an estimated $135M positive cash flow based on the given assumptions. In order
to progress mining proposals on these projects towards future development flora, fauna and other
related studies as well as regulatory approvals were progressed.
Further drilling programs and surveys conducted during the year have identified new gold targets
at Lake Carey and, with further work, may provide additional resources in the future. A disciplined
exploration approach will continue so that the value of the Lake Carey Gold Project can be displayed.
This approach encompasses operating in a safe and environmentally friendly manner and with
awareness of local communities.
In December 2021, Matsa executed a $20M Sale and Purchase Agreement with Linden Gold Alliance
Limited whereby Linden would acquire the Red October and Devon projects from Matsa for a mixture
of cash and shares. Matsa has thus far received $3M cash in non-refundable deposits from Linden,
however settlement has not yet occurred at the date of this report.
One of the pleasing things to occur this year was the identification of a number of highly prospective
areas in Thailand for lithium and tin. This has resulted in a number of applications being lodged with
the Thai authorities and is a credit to our Thai team. Whilst it is early days, I really believe there is a
story yet to unfold here and over the next 12 months and beyond it will start to be unveiled.
The Company has worked hard this year to instil a “work smart” discipline and identify opportunities
that can create value with patience and hard work and deliver results for all stakeholders. I am of the
belief that these challenges are being met front on and that in time results will become evident, where
in turn I anticipate that this Company will show the results from all the effort being put in.
I would like to again thank all the people involved with Matsa for their hard work, preparedness to
do what is required and support throughout the year. In particular I would also like to thank my
fellow board members, senior management and the whole team both in Perth and Thailand. I remain
committed to ensuring that Matsa can achieve the goals it has set for itself and that this in turn
results in rewarding shareholders.
PAUL POLI
EXECUTIVE CHAIRMAN
MATSA RESOURCES LIMITED CHAIRMAN’S REPORT -3-Dear Shareholder, In writing this year’s report, I thought I would reflect on what I wrote last year, and what really appealed to me was my comment regarding the “The Team”, in that how reliant our whole company is on each individual person that makes up the Matsa team. I, nor anyone, could foresee how important this team attribute, the group made up of individuals working together to achieve a goal, would matter to us as shareholders this year. I proudly observed how our team, the whole Matsa team, took on the Covid-19 planning offensive. How proudly I watched them put their other team members and the company first. How we adhered to our new protection mechanisms and rules which we instigated together to protect all team members and our ambitious plans going forward. For me, this is our greatest achievement this year, we coped with whatever nature threw at us, we in fact excelled at it, and I am sure that we can continue to grow with whatever challenges are thrust upon us. It is important to recognise the twin boom drillers, the underground truck and plant operators, the chargers, the cleaners/caterers, the geologists, engineers and all the admin people and safety officers. Our surface exploration geologists and of course the team in the Perth office, as well the great job the Thailand team have done in managing all the geological data for our operations in Australia. These are the real people that we need to thank this year, and I am sure all shareholders join me in appreciating their efforts. We look forward this year to growing the Red October operations, and developing Devon and also finding a pathway forwards for our valuable Fortitude gold mine. Whilst we work diligently towards our strategy of becoming a mid-tier gold producer, we will also strongly focus on our exploration activities which will grow and build our company. We have an exceptional tenement package. We can and we will achieve all in a safe, environmentally friendly and community minded manner. The board looks forward to the next year and what it will bring. PAUL POLI EXECUTIVE CHAIRMAN MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 4
SUMMARY – DELIVERING STRATEGY AND GROWTH
This year, Matsa Resources Limited (‘Matsa’ or ‘the Company’ or ‘the Group’) continued to reposition
itself by leveraging off a significant resource potential at the Lake Carey Gold Project (Lake Carey,
refer Figure 1) and has set about building a clear pathway to establishing a sustainable long term gold
inventory, mining and processing business, centred at Lake Carey.
The focus of all exploration efforts during 2022 has been on the Fortitude Fault trend at Lake Carey,
where Matsa has demonstrated an economic mining opportunity at the Fortitude and Devon Gold
Mines.
Additionally, situated only 6km north of the Fortitude Gold Mine, the Fortitude North prospect
continues to demonstrate real potential to deliver a significant resource through future drilling, and is
expected to complement the 489koz resource modelled at the Fortitude Gold Mine.
Significant growth opportunities also exist elsewhere, outside of gold, and to that end with recent
significant and positive changes in exploration and mining outlook in Thailand, Matsa has expanded
its exploration portfolio through new applications in the highly prospective western granite belt for
tin and lithium.
The growing Electric Vehicle (EV) market with a large share of manufacturing output centred in
southeast Asia, has Thailand well positioned as a potential major supplier of the natural resources
that will be required to support the growth forecasts of the EV market. In that respect, Matsa is well
placed to leverage off that demand and economic outlook with its established operational team and
project pipeline.
As a result, a number of important and positive outcomes have been achieved over the past 12
months whose highlights include:
• Mineral Resource at Lake Carey increased to 886,000oz @ 2.4 g/t Au following drilling at Hill
East and resource updates for both Hill East and Fortitude
• The resource upgrade at Fortitude resulted in new optimisations and a scoping study into a
Matsa owned and operated processing plant at Lake Carey returned a favourable outcome
improving the estimated bottom line at the Fortitude mine by A$40M (to $95M)
• A combined estimated Positive cash flow of A$135M for the Fortitude and Devon Gold Mines,
utilising a proposed Matsa owned processing plant, has been modelled following revision of
optimisations and CPC scoping study input parameters
• Completion of flora, fauna and other regulatory approvals and related studies to progress Mining
Proposals for the Fortitude and Devon gold mines
• Matsa entered into a $20M Sale and Purchase Agreement (“SPA”) with Linden Gold Alliance
Limited (“LGA”) for the sale of Red October and Devon gold mines and associated tenements,
which has delivered Matsa $3M in non-refundable deposits (note: subsequent to June 30, LGA
has been granted an extension to complete the transaction by 30 September 2022)
• Exploration applications lodged and accepted by Thailand’s Department of Mineral Resources
for 942km² of tenure in Thailand’s western granite belt known to be highly prospective for
lithium and tin
•
IGO Limited purchasing a 70% stake in the Fraser Range project for $600,000 under a JV
agreement whereby Matsa retains a 30% free carried interest to decision to mine
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 5
Matsa’s key asset is its 100%-owned Lake Carey Gold Project, located approximately 40km south
of Laverton and approximately 250km north-northeast of Kalgoorlie in Western Australia (Figure 1).
The project is situated in the heart of an active gold mining district that hosts several multi-million-
ounce gold mines including Wallaby and Sunrise Dam with Northern Star’s Carouse Dam located a
little further south.
Lake Carey comprises of almost 500km² of highly prospective tenements within the Laverton Tectonic
Zone (LTZ) of the Kurnalpi Terrane in Western Australia’s eastern goldfields region. The district is well
serviced by infrastructure including a network of high-quality roads, gas pipelines, communication
infrastructure, airstrips with regular services to Perth and close proximity to an established mining
workforce and supply network.
Matsa also holds a number of rapidly developing lithium and copper assets in Thailand with 942km²
under Special Prospecting Licence Applications (SPLA) for lithium and tin in Thailand’s western granite
belt, and a further 584km² under SPLA for copper, silver, gold and base metals in central Thailand’s
Loei Fold Belt.
FIGURE 1: Matsa’s projects with a gold focus at Lake Carey in Western Australia and
lithium – copper – tin focus in Thailand
Exploration has progressed at both Lake Carey and Thailand during the July 2021 to June 2022
reporting period.
Matsa has additional gold and copper exploration projects in Western Australia’s Pilbara, and nickel
exploration projects in Western Australia’s Fraser Range under JV with IGO Limited (refer company
website https://www.matsa.com.au/projects/ for further information).
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 6
REVIEW OF OPERATIONS
AUSTRALIAN OPERATIONS
LAKE CAREY
The Lake Carey Gold Project (Figure 2), located in the Laverton Tectonic Zone in the heart of the
Eastern Goldfields of Western Australia’s Yilgarn province (Figure 3), is bookended to the north by
world class mines such as Granny Smith, Sunrise Dam and Wallaby, to the west Butchers Well and
to the south Deep South. The eastern margin of the tenement package is bounded by the regional
Barnicoat East Fault structure that separates the Kurnalpi and Burtville terranes.
Importantly, the bulk of the key resource projects are located within granted mining licences and
accessible by a network of established haul roads. As such, all of the key projects have a shorter lead
time to obtaining final mining approvals than would normally be encountered at the exploration and
assessment phase.
Project status for key resource and mining options are outlined in the following table:
PROJECT
Fortitude Stage 2
Gallant
Bindah
Red October*
Devon Pit*
Hill East*
Olympic*
MINING LEASE
HAUL ROADS
MINE PROPOSAL
Granted
Granted
Granted
Granted
Granted
No
Granted
Existing
Existing
Existing
Existing
Existing
Partial
Existing
Current
Required
Required
Current
Required
Required
Required
* These projects are subject to the Sale and Purchase Agreement with Linden Gold Alliance Ltd
TABLE 1: Key resources and mining lease status
OVERVIEW
The bulk of Matsa’s exploration work during this financial year has been focussed on Fortitude and
Fortitude Fault trend with the remaining part at Devon and the Lake Carey region in general. Exploration
activities this year included soil and geochem surveys to test for new gold anomalism, ground magnetic
surveys to assist drill targeting, air core (AC) drilling to test gold/geochemical anomalism, diamond
drilling (DD) and evaluation studies.
Key results from this work include:
• Reverse circulation (RC) drilling at the Devon area resulting in an updated resource model for Hill
East adding 15koz to the 2021 resource model
• Regional soil surveys and air core drilling identifying 2 new gold in basement anomalies
• Ground magnetic surveys at Fortitude North, FF1 and Mirage/Stealth which assisted structural
interpretations and geological setting to direct future drilling
• An updated model for the Fortitude Gold Mine resulting in an increase of approximately $40M
to the estimated bottom line following revised optimisation and mining studies
• Diamond drilling at Fortitude North returning approximately 36% more gold in the latest drill
intercept compared to the next closest drill hole
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 7
FIGURE 2: Regional Geological Setting and location of the Lake Carey project (red circle)
• Ground magnetic surveys have identified a large bullseye magnetic anomaly just north of FF1
which remains unexplained and is a target for future drilling, and a northerly trending magnetic
feature just west of Fortitude North, which also remains undrilled
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 8
• A new tenement hosting Compensation and Carmen prospects was added to Lake Carey where
rock chip sampling returned up to 13.7g/t Au at the Carmen prospect in the south of the
tenement and gold in soil anomalism up to 215ppb recorded in the northern part of the tenement
Sunset at Red October
Spring flowers at Laverton
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 9
FIGURE 3: Lake Carey Gold Project
(projects outlined in red are subject to a Sale and Purchase Agreement with Linden Gold Pty Ltd)
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 10
RESOURCES
The gold resource at Lake Carey grew from 684koz (30 June 2021) to 886koz (30 June 2022) (Table
2) representing a 30% increase through the following additions and mining adjustments (Figure 4):
• 147koz added to the Fortitude Resource following modelling of grade control drilling and
changes to the geological model arising from in pit mapping and completion of trial pit mining
• An upgrade of 13koz at Hill East following new RC drilling
•
Increase of 33koz at Red October following modelling of new drilling at Lionfish
• Depletion of 7koz from mining of the resource at Red October
Cutoff
Measured
Indicated
Inferred
Total Resources
g/t Au (‘000t) g/t AU (‘000t) g/t AU (‘000t) g/t AU (‘000t)
g/t AU (‘000) oz)
Red October
Red October UG
Red October Subtotal
Devon
Devon Pit (OP)
Olympic (OP)
Hill East (OP)
Devon Subtotal
Fortitude
Fortitude
Gallant (OP)
Bindah (OP)
2.0
1.0
1.0
1.0
1.0
1.0
1.0
411
411
102
171
748
105
105
8
8.4
483
483
5.7
5.7
-
-
-
-
-
-
-
-
341
4.8
-
-
-
-
341
4.8
1,021
127
2.2
2,979
-
-
-
-
-
43
1.9
-
3.3
2.0
4,943
341
483
5,767
Fortitude Subtotal
127
2.2
3021
Stockpiles
-
-
-
-
191
TOTAL
232
5.0
3,845
2.7
7,199
6.3
6.3
3.6
2.8
2.0
2.3
1.9
2.1
2.3
1.9
1.0
2.2
999
999
443
171
748
1,362
8,048
341
526
8,915
191
11,467
6.2
6.2
4.6
2.8
2.0
2.9
1.9
2.1
2.4
1.9
1.0
2.4
199
199
65
15
48
128
489
23
40
553
6
886
TABLE 2: Lake Carey Gold Resource Table (resources include reserves, refer Resources and
Reserves table for formal 30 June statement). Note rounding adjustments may not total.
FIGURE 4: Lake Carey Mineral Resource growth since 2020 Annual Report
+80,000ozApr 2021Gallant (23koz)Hill East (35koz)Apr 2021+58,000ozOlympic (15koz)Devon (65koz)Dec 2020+77,000ozRed October 96koz173kozSept 2020439,000ozRed October (96koz)Fortitude(343koz)Jun 2022886,000ozTotal Mineral Resources(886koz @ 2.4g/t Au)Bindah (40koz)+40,000ozJun 2021Lionfish (33koz)+33,000ozJul 2021+147,000ozSept 2021Fortitude343koz489kozMining Depletion-7,000ozJul 2021Hill East (13koz)+13,000ozOct 2021+6,000ozJan 2022Bindah SP(6koz) MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 11
EXPLORATION AND GROWTH
Exploration highlights at Lake Carey for the year include:
• Exploration drilling at Hill East and Devon prior to Matsa and LGA signing a SPA for the Red
October and Devon projects
• Approximately 466 line kilometres of high resolution ground magnetic survey being completed,
focussed on the Fortitude Shear Zone
• 838 soil samples collected across the Lake Carey tenements
• Completion of 7,876m of aircore, reverse circulation and diamond drilling across six prospects at
Lake Carey
• An updated resource model for Fortitude Gold Mine and revised optimisation studies resulting
in more than doubling the original results of the optimisation work from 55koz mined to 132koz
mined
• Carmen and Compensation prospects added to the Lake Carey Gold Project where rock chip
sampling has returned gold grades up to 13.7g/t
Drone view looking from Fortitude Gold Mine south towards Bindah Gold Mine
FORTITUDE AND FORTITUDE FAULT
GROUND MAGNETIC SURVEYS
Four high resolution ground magnetic surveys (Figure 5) comprising 466 line kilometres, were completed
along the regionally significant Fortitude Shear Zone which host’s Matsa’s Fortitude Gold Mine. The
surveys were conducted east, north and south of the Fortitude Gold Mine and were designed to
provide information that would assist in detailed structural interpretation and help focus future drilling
designs.
The results of the surveys broadly support the existing regional aeromagnetic interpretation of a
major NNW trending regional structure (shear zone) and provided additional detail at the prospect
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 12
scale, that have been interpreted as either dilational jog structures and/or NE trending cross cutting
structures that elsewhere, are known to host mineralisation.
FIGURE 5: High resolution ground magnetic surveys over regional aeromagnetic data
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 13
The Fortitude Shear zone, along with the Bindah Shear located to the west, forms a narrow corridor
of S-SE trending greenstone belt which is bounded to the east and the west by granitoid terrane
(Figure 6). As the Fortitude-Bindah system extends north the greenstone pile thickens, and is host to
numerous large mineralised systems (Sunrise Dam, Wallaby, Granny Smith and Mt Morgan).
FIGURE 6: High resolution ground magnetic surveys over regional aeromagnetic data
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 14
Matsa’s exploration focus along the Fortitude Shear is aimed at resource drilling at Fortitude North
to develop a maiden resource, which will support the Fortitude Gold Mine and proposed processing
facility.
A number of strong geophysical anomalies (circled in pink in Figure 7) where limited drilling has
previously been completed provide priority drilling targets. It is pleasing to note that new targets
continue to be generated using this exploration technique.
FIGURE 7: High resolution ground magnetic surveys over regional aeromagnetic data
DRILLING
Aircore drilling (Figure 8) comprising 45 holes were completed for 3,627m with results indicating
elevated gold values defining new saprolite gold targets at Wilga West and Phantom Well and
confirming elevated gold values in transported sand and gravel overlying the FF1 basement gold
occurrence previously discovered in 2020.
Four key target areas namely, Wilga West, Haul Road, FF1 and Phantom Well on the Fortitude Fault
were selected based on strong responses in the magnetic survey data which suggests the presence of
favourable structures and geological setting that could host gold mineralisation.
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 15
FIGURE 8: Plan of four aircore drilling programs completed during the year with background
aeromagnetic data
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 16
Collecting ground magnetic data at Lake Carey
In July 2021, Matsa reported results of RC drilling at Devon and Hill East which has led to an increase
of reportable resource at Hill East from 35koz to 48koz. The Hill East prospect has since been subject
to a SPA with LGA announced in December 2021.
Diamond drilling at Fortitude North was undertaken following an inhouse review of the prospect’s
ability to host significant exploitable mineralisation where Matsa identified it is conceivable to define
between 380koz and 600koz with further drilling. Geological modelling indicates Fortitude North is
likely to be characterised by a shear hosted mineralised envelope encapsulating north easterly plunging
higher grade shoots. This has been modelled through interpretation of drilling and geophysical (ground
magnetic) results along a 1.5km anomaly. Logging of diamond drill core has indicated the presence of
hydraulic fracture quartz veining, suggesting a long lived gold mineralising system.
The new drilling was designed to test this geological model with a focus on confirming the potential
of higher grade shoots within this extensive system. Results were positive in that the drilling (hole
22FNDD009, Figure 9) returned assay results of 9.6m @ 3.27 g/t Au from 120.8m including a higher
grade zone of 2.1m @ 7.76 g/t Au from 121.65m (using 1 g/t cutoff). This drilling reflects down-dip
continuity of the mineralised intersection in the next nearest diamond drill hole (19FNDD001), which
intersected 8m @ 2.94 g/t Au from 106.25m including a higher-grade zone of 2.75m @ 5.24 g/t Au
from 107.25m.
Conclusions from the drilling results and recent logging, suggest a high-grade shoot resides in the
hanging wall position within the broader lode and mineralised system. Importantly, the data also
suggests that grades appear to increase with depth as demonstrated by 2.75m @ 5.24 g/t at 107.25m
(19FNDD001) and 2.1m @ 7.76 g/t at 121.65m (22FNDD009). This trend is not an uncommon
feature of structurally complex narrow vein gold settings.
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 17
FIGURE 9: Fortitude North Drilling Summary and Location of 22FNDD009
At FF1 an initial diamond drill hole was completed which returned 1m @ 6.57g/t from 148m. The
diamond drilling results do not explain the relatively thick 10m gravels and basement gold anomaly
recorded in the aircore programs and further drilling is being contemplated to help resolve this apparent
disparity.
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 18
STUDIES
All permits required to recommence mining at the Fortitude Gold Mine remain in place and an outline of
the proposed site setup is shown below in Figure 10. Key changes to the Fortitude layout is the inclusion
of a proposed Matsa processing plant and associated tailings facility. Studies for approvals continue.
FIGURE 10: Proposed mine layout for Fortitude Gold Mine including potential mill and tailings facilities
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 19
LAKE CAREY REGIONAL EXPLORATION
SOIL SAMPLING
A number of soil sampling campaigns were completed across Lake Carey (Figure 11) aimed at identifying
new drill targets. Results are typically reviewed in context of additional information such as magnetics
to assist refining drill designs.
FIGURE 11: Plan of soil sampling coverage in Matsa tenements
(note Red October and Devon tenements subject to the SPA not shown)
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 20
Sunrise at the Red October village
NEXT STEPS
Exploration activities at Lake Carey for the coming year will include:
• Drilling at Fortitude North with the aim of delivering a maiden resource to complement the
nearby Fortitude Gold Mine
• Drilling at advanced exploration projects including FF1, Carmen, Stealth and Mirage
• Drill testing of newly discovered gold in basement anomalies at Wilga West and Phantom Well
• Additional regional geophysical coverage to assist exploration drilling
• Ongoing regional soil coverage
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 21
FRASER RANGE
The entire Fraser Range project (Figure 12) is now under a 70:30 Joint Venture between IGO Limited
(70%) and Matsa (30%) whereby Matsa has a free carried interest to decision to mine.
FIGURE 12: Plan of Fraser Range tenements
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 22
THAILAND OPERATIONS
Matsa has held a presence in Thailand since 2009 and sees enormous opportunities in exploration for
lithium, gold and base metals, not only because of the highly prospective geological setting, but also the
economic ramifications of Thailand’s central geographic location within southeast Asia and a growing
resource need for the EV market.
The Company discovered and explored a number of significant copper targets (Siam 1, Siam 2 and
Chang 1 projects) prior to scaling back activities in 2016 due to low political support for mining and
exploration activities. These projects have all been retained under SPLAs/EPLAs (Special Prospecting
Licence Applications and Exclusive Prospecting Licence Applications) and have demonstrated strong
potential for the discovery of extensive mineralisation.
Recently, Matsa has seen a change in geopolitical support for exploration and mining evidenced by
positive recent developments including:
• Kingsgate Consolidated Limited announcing expected recommencement of operations at the
world class Chatree gold mine
• The recent drilling activities by Pan Asia Metals Limited (ASX: PMA) indicating government
support for drilling culminating in a maiden lithium resource in southern Thailand
• Positive sentiment for exploration building in recent government policy and dialogue
In addition to the changing political landscape, Thailand has an upgraded rail network system linking it to
mainland China, which will have positive economic benefits to any mine development within the region.
Matsa will build upon past exploration in the country and seek to establish a strategic landholding
targeting lithium, copper, lead, zinc, silver and gold in Thailand’s rich metalliferous and geological setting.
Matsa has a fully functional office, staff and skills in the country and is well positioned to actively
grow its portfolio. The Company believes the positive recent developments strongly encourage mineral
exploration and, as a result, is ramping up its activities in Thailand.
OVERVIEW
Prior to 2022, Matsa held 52 EPLAs and SPLAs for a total of 511km² comprising its Chang and Siam
Copper discoveries in the Loei Fold Belt (LFB) of Central Thailand. The LFB contains important mineral
deposits including the 3.42Moz Chatree gold mine owned by Kingsgate and the Phu Kham porphyry
skarn (copper-gold) mine in Laos operated by PanAust Limited.
During the year new lithium and tin exploration projects as well as additional silver and base metals
projects, including the former Venture Minerals Ltd’s (ASX:VMS) Thali silver and base metals project in
the Loei province, have been added to the Company’s existing portfolio of copper projects.
Matsa’s Thailand exploration licence and applications position is summarised in Table 3 below.
PROJECTS
Base & precious metals
Lithium, tin, tungsten & tantalum
Total
SPLA
AREA
EPLA
AREA
TOTAL AREA
48
65
113
556
942
1,497
9
0
9
29
0
29
584
942
1,526
TABLE 3: Thailand SPLA and EPLA summary
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 23
EXPLORATION AND GROWTH
LITHIUM EXPLORATION
The regionally extensive granite/pegmatite belt of western Thailand (Figure 13) has been a significant
tin producer on the world stage and extends for some 800km. Mapping by the likes of the British
Geological Survey in the 1970’s recorded lepidolite (lithium mica) boulders and lithium bearing pegmatite
however lithium was of little exploration interest at that time.
The pegmatites of the western granite belt have in more recent times been classified as “LCT” type
(lithium-caesium-tantalum) demonstrating their potential for the discovery of lithium and other rare
elements, and initial pegging of applications by Matsa has been guided by the historical records of
lithium and associated rare element occurrences in reports lodged with Thailand’s Department of
Mineral Resources. Matsa believes these licences contain all the right ingredients to make a discovery.
Mapping a pegmatite swarm in western Thailand
During the year, Matsa applied for 65 SPLAs covering some 942km² . The SPLAs (Figure 14) encompass
ground that is expected to yield lithium mineralisation. The applications include projects in the Phang
Nga province where PAM has recently delineated a maiden lithium resource of 10mt @ 0.44% lithium
at Reung Kiet.
Exploration activities during the year have been aimed at discovering and mapping pegmatites, stream
sediment sampling, regional muscovite geochemical sampling for potassium/rubidium ratios and
administrative works associated with lodgement of applications and provincial approvals and agreements
to conduct field activities.
The work programs have initially focussed on the Phang Nga province adjacent to Reung Kiet where
existing information and an understanding of geological setting is strongest, gradually moving north
into less well understood regional settings.
Exploration at Phang Nga has taken a traditional grass roots approach with Matsa conducting initial
stream sediment sampling to ascertain the geochemical dispersion of lithium and other pathfinder
elements, in a field containing known occurrences of lithium bearing pegmatites.
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 24
Matsa is progressing an initial program of approximately 200 stream sediment samples in the Phang
Nga (Figure 15) province in campaigns as licencing (Mineral Exploration Licence) for each subdistrict
becomes available. The results of multi element assays for these samples are expected to provide Matsa
with initial focus points where lithium anomalism in stream sediment sample results are strongest.
FIGURE 13: Western Thailand’s granite and major regional fault setting
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 25
FIGURE 14: Fortitude Stage 2 operation cash flow
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 26
FIGURE 15: Plan of stream sediment sampling at Phang Nga
On a more regional level, exploration has initially focussed on muscovite K/Rb (potassium v rubidium)
ratios to assist defining the more prospective parts of the granite belt where the rocks have undergone
fractionation. Increasing fractionation of the granite/pegmatite rock mass is considered to equate
to a more fertile environment and therefore more prospective for the discovery of lithium bearing
pegmatites. This work is ongoing and typically immediately followed up with stream sediment sampling.
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 27
Muscovite sampling of granite and pegmatite outcrop in western Thailand
Stream sediment sampling at Phang Nga
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 28
COPPER (GOLD AND SILVER) EXPLORATION
Matsa holds a number of advanced and early stage base metals projects centred on the regionally
extensive Loei Fold Belt (LFB) of central Thailand (Figure 16).
Matsa’s Bangkok based team explored for base metals between 2010 and 2016. Matsa recognised
that despite the highly prospective geology (at the time Chatree was amongst the lowest cost gold
mines in the world), very high quality of available geological data, excellent infrastructure and a skilled
workforce, the country remained largely under-explored.
Between 2016 and 2022, Matsa paused field activities due to low political support for mining and
exploration activities. Changes to legislation and an improved positive sentiment towards the minerals
sector has provided Matsa positive indicators to ramp up exploration efforts in Thailand.
THALI HIGH GRADE SILVER-LEAD PROJECT
Matsa has pegged five new SPLAs for 73km² in the Loei province to explore for base and precious
metals. The project includes the Thali prospect where high grade silver-lead veins were identified in
2015 by Venture Minerals Ltd (‘VMS’). No drilling has ever been undertaken at this prospect.
Exploration by VMS at Thali, discovered a number of strong silver in soil anomalies defined by values
exceeding 0.3 g/t Ag with individual anomalies >2km long and with surface rock grab samples up to
1,860g/t Ag and 27% Pb. Mineralisation, which is poorly exposed, appears to be related to stockwork
veins in strongly altered granite and limestone. Induced Polarisation (IP) surveys carried out by VMS
at Thali during early 2018, returned a number of targets associated with key soil anomalies.
CHANG COPPER PROJECT
At Chang 1, the Company has previously identified a copper mineralised diorite intrusion, under
shallow transported cover with minimal outcrop. The surface expression of mineralisation is a soil
copper geochemical anomaly 1.8km x 1.2km in extent. Geophysical (IP) surveys confirm the size and
distribution of the soil anomaly and highlight additional targets yet to be explored.
In 2016, Matsa halted work at Chang 1 pending legislation changes to allow access to the most
prospective parts of the prospect, that to this day, remains unexplored. There has been significant
progress in addressing access issues since 2016 and Matsa is confident that impediments to drilling
these high priority targets at Chang 1 will be removed during FY2023.
SIAM COPPER
Siam 1 comprises a ~20km² stream sediment anomaly in an area of mostly soil cover containing
scattered boulders of altered basalt with disseminated native copper mineralisation. Initial follow up
led to discovery of a discordant NW trending sulphide vein dominated by chalcocite which returned an
assay of 54.7% Cu and 148 g/t Ag. Soil sampling and a ground IP survey were carried out to define
targets for drilling.
A total of 11 diamond drill holes were completed by Matsa which returned a number of broad
intersections of anomalous copper (eg 22m @ 0.55% Cu) and demonstrates the potential size of the
mineralised zone. Further exploration drilling is planned to better define the context of the high grade
copper within this large 20km² copper anomaly.
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 29
FIGURE 16: Plan of Matsa’s Thailand copper/gold/silver projects
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 30
TIN EXPLORATION
The granite belt in western Thailand has been a prolific source of tin, largely from alluvial mining.
Matsa has obtained very encouraging assay results for tin at both Phang Nga (sample PNGRK008
returning an assay of 0.9% - Figure 17) and Kanchanaburi (sample KCB014RK returning an assay of
0.2% - Figure 18). Both these assay results reflect strong tin anomalism with 0.9% comparing very
favourably to industry reported resource grades.
PNGRK008
Mica Granite
Qtz Vein
TIN
FIGURE 17: Phang Nga sample PNGRK008 from a water course cutting showing tin mineralisation
KCB014RK
TIN
FIGURE 18: Kanchanaburi sample KCB014RK from outcropping pegmatite showing tin
mineralisation. This pegmatite has been mapped over 2km strike, 600m wide and striking NW
Further exploration work is planned including gridded hand auger work and ongoing field mapping and
sampling.
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 31
Lithium bearing (lepidolite- maroon colours) pegmatite outcrop in western Thailand
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 32
NEXT STEPS
Work at Matsa’s Thailand projects for the coming year will include:
• Continued regional stream sediment and muscovite sampling to focus priority areas based on
lithium fertility assessment
• Detailed mapping of priority areas based on lithium anomalism
• Progress selected SPLA to grant to enable drilling activities
• Follow up exploration in areas of identified tin anomalism
• Continue work and field activities in areas where rare earth anomalism is demonstrated from
multi element assay data
• Obtain approvals to conduct drilling at Matsa’s copper/base metals/silver/gold Loei prospects
in Loei Fold Belt
• Where possible attain additional tenure to enhance the Matsa portfolio
Inspecting pegmatite outcrop in western Thailand
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2022 ANNUAL REPORT · PAGE 33
CORPORATE ACTIVITIES
SALE OF RED OCTOBER AND DEVON
On 20 December 2021, Matsa entered in to a SPA with LGA to sell the Red October and Devon gold
projects to Linden for a total consideration of $20M. Matsa has so far received a total of $3M non-
refundable deposit.
While LGA planned an Initial Public Offering (IPO), LGA has not yet received conditional approval for
admission to the ASX as required under the SPA and subsequent amendments to that SPA by 30
June 2022.
Accordingly, LGA did not settle the purchase of the Devon and Red October projects by year end.
LGA has provided Matsa with a formal notice advising that as a result of events beyond the control of
Linden, it has not received conditional approval for admission to the ASX and consequently, pursuant
to the SPA, LGA claimed to be entitled to an automatic extension for a further period of up to 90 days.
LGA may elect by 5 October 2022 to complete the sale by paying the balance of the payments owing
in cash, ie. $12M to Matsa.
Matsa has the right to terminate the SPA should LGA not successfully complete the acquisition by no
later than 12 October 2022 (through either successful listing on the ASX or cash settlement). Matsa
can retain the $3M deposit it has received, at which point ownership of the Red October and Devon
gold projects is retained by Matsa.
Matsa will retain 385km² of the Lake Carey Gold Project including the 553,000oz gold resource at
Fortitude gold Mine, the nearby Bindah and Gallant satellite resources if the sale of the Red October
and Devon gold projects proceeds.
SALE OF 70% INTEREST IN FRASER RANGE PROJECTS TO IGO
On 1 July 2022, Matsa entered in to an agreement with IGO Newsearch Pty Ltd (“IGO”, a wholly
owned subsidiary of IGO Limited) whereby IGO acquired a 70% interest in the Symons Hill project
as well as Matsa’s other Fraser Range tenements. Under the terms of this agreement IGO has paid
$600,000 in cash and will free carry Matsa for all exploration to completion of feasibility studies or
decision to mine whichever occurs earlier.
CAPITAL RAISING
In July 2021, Matsa completed a $3.38M placement via the issue of approximately 42.2M shares at
$0.08 per share (incl. a free 1 for 2 listed option exercisable at $0.17 each expiring 30 April 2023).
UNMARKETABLE PARCEL SHARE SALE FACILITY
Matsa conducted an Unmarketable Parcel Share Sale Facility whereby shareholders of fully paid
ordinary shares in the Company with a holding valued at less than $500 would be able to dispose of
those shares at no cost to them.
The final number of shares eligible sold was 1,086,067 from a total of 270 shareholdings which was
completed in April 2022.
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
Your directors present their report for the year ended 30 June 2022.
DIRECTORS
The names and details of the Company’s directors in office during the year and until the date of this
report are as follows. Directors were in office for this entire period unless otherwise stated.
Names, qualifications, experience and special responsibilities
Mr Paul Poli Bachelor of Commerce, FCPA DFP (Executive Chairman)
Mr Poli is a fellow of the Australian Society of Certified Practicing Accountants and a former registered
Securities Trader. He was the founder and managing partner of a taxation and business advisory firm
for 19 years prior to founding and heading Matsa Resources Limited from 2009 to date. He is well
versed in all aspects of business, particularly financial management through both his previous
consulting roles and through his personal ownership of private companies in Western Australia, the
Northern Territory and South East Asia. Mr Poli led the negotiations for several significant transactions
for Matsa including the $14M Norseman sale to Panoramic Resources Limited, $6M minority interest
sale to Westgold Resources Limited, and $7M Symons Hill IGO joint venture. Mr Poli, in his capacity
as Chairman of Bulletin Resources also negotiated the sale of Halls Creek gold project for $12M to
Pantoro Limited, and the $5.7M Apollo transaction.
He has been chairman of Matsa Resources Limited for over 10 years and a significant investor in the
mining industry, Mr Poli is particularly well qualified to drive the creation of a significant mining and
exploration company.
During the past three years, Mr Poli has also served as a Director of the following publicly listed
companies:
Bulletin Resources Limited (Appointed 24 June 2014)
Mr Pascal Blampain BSc, MAusIMM, MAIG
Pascal Blampain is a geologist with over 27 years’ experience across Australia and Papua New Guinea
having held senior positions with global miners including Barrick Gold Corporation and Gold Fields
Limited.
Mr Blampain’s roles have spanned regional and near-mine exploration, operational geology, long-
term strategic planning and resource development. He has a strong track record of delivering resource
and reserve growth in gold during his time working at world-class deposits such as Plutonic, Wallaby
(Granny Smith) and Lawlers (now Lawlers-Agnew).
Mr Blampain has also served as Chief Geologist/Geology Manager roles at Plutonic (Superior Gold
Inc.), Mount Monger-Mt Belches (Silver Lake Resources Limited), Darlot (Gold Fields Limited) and
Lawlers (Barrick Gold Corporation).
Mr Andrew Chapman CA F Fin GAICD
Mr Chapman is a chartered accountant with over 25 years’ experience in publicly listed companies in
the mineral resources, oil and gas and technology sectors.
He has held Board positions as well as other senior roles including Director, Company Secretary and
Chief Financial Officer. Mr Chapman has vast experience in the areas of corporate acquisitions,
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MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
divestments and capital raisings. He has developed specialist knowledge of dealing with ASX and other
corporate regulatory bodies, financial institutions and other advisory groups.
Mr Chapman is an associate member of the Chartered Accountants Australia and New Zealand
(CAANZ), a Fellow of the Financial Services Institute of Australasia (Finsia) and a graduate of the
Australian Institute of Company Directors (AICD).
Mr Chapman has not served as a Director of any other publicly listed companies during the past three
years.
Mr Franciscus (Frank) Sibbel B.E.(Hons) Mining, F.Aus.IMM
Mr Sibbel is a mining engineer who has in excess of 40 years operational and managerial experience,
in both small and large scale mining projects from development through to successful production.
Since 2008, he has been a mining consult where he has successfully consulted on numerous projects
for a diversified range of mining companies throughout Australia and overseas.
Mr Sibbel’s vast experience in development of gold projects from the grass roots will ensure the
company has the extensive skills to deliver on its strategy.
During the past three years, Mr Sibbel has also served as a Director of the following publicly listed
companies:
Bulletin Resources Limited (Appointed 13 August 2013; resigned 1 September 2021)
COMPANY SECRETARY
Mr Chapman is also the Company Secretary of Matsa. Refer to the directors’ particulars as noted
above.
PRINCIPAL ACTIVITIES
During the year the principal activities of entities within the consolidated entity were gold and other
mineral exploration in Australia and Thailand.
There were no significant changes in the nature of these activities during the year.
Operating Results for the Year
The Group’s net loss for the year after income tax is $6,028,025 (2021: $9,654,713).
The Group’s net loss for the year includes the following items:
• Revenue from the sale of gold ore of $230,235 (2021: $8,055,013).
•
Income of $3,000,000 (2021: nil) in non-refundable deposit received in relation to the sale of
the Red October and Devon under the terms of the SPA.
Impairment losses of $1,028,175 (2021: nil) attributable to the Group's exploration projects.
• A loss of $2,353,509 (2021: gain of $1,191,750) on the sale of tenements.
•
• Share based payments expense of $5,329 (2021: $111,956).
•
Income of $86,079 (2021: $204,868) relating to a tax refund for eligible research.
Review of Financial Position
The net assets attributable to the shareholders of the parent have decreased by $2,826,722 from 30
June 2021 to $12,545,260 at 30 June 2022.
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MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
During the financial year:
1. $3,375,350 (before costs) was raised via the issue of 42,191,875 fully paid ordinary shares at
an issue price of $0.08 each with one free attaching listed option for every two shares
subscribed for with an exercise price of $0.17 each and expiring 30 April 2023; and
Cash reserves at 30 June 2022 were $1.57M compared to $3.03M in the previous financial year.
Going Concern
The consolidated financial report has been prepared on the going concern basis, which contemplates
continuity of normal business activities and the realisation of assets and settlements of liabilities in
the ordinary course of business.
The Group has reported a loss for the year of $6,028,025 (2021: $9,654,713) and a cash outflow from
operating activities of $2,791,531 (2021: $4,803,673). At the reporting date, the Group had
$1,572,483 in cash and term deposit balances. The Group also had borrowings of approximately
$4,000,000 due and payable on 30 November 2022. Refer Note 15 for further details. On 20 December
2021, the Company executed a binding agreement to sell the Red October and Devon gold projects to
Linden Gold Pty Ltd (LGL) for a consideration of $20,000,000 with the sale expected to be completed
within the next 4 to 9 months. Refer note 21 for further details.
The Directors also manage discretionary expenditure in line with the Group’s cash flow and are
confident that there are sufficient funds to meet the Group’s working capital and funding
requirements for a minimum of 12 months from the date of this report.
The Directors consider the going concern basis of preparation to be appropriate based on forecast
cash flows and confidence in raising additional funds and extension of borrowings. In the event that
the Group is not successful in raising funds from the issue of new equity or extension of borrowings
or if the sale of LGL does not realise, there exists material uncertainty that may cast significant doubt
on the Group's ability to continue as a going concern and realise its assets and extinguish its liabilities
in the normal course of business and at the amounts stated in the financial report.
DIVIDENDS
No dividend was paid or declared by Matsa in the period since the end of the previous financial year,
and up to the date of this report. The Directors do not recommend that any amount be paid by way
of dividend.
CORPORATE STRUCTURE
Matsa is a company limited by shares, which is incorporated and domiciled in Australia.
EMPLOYEES
The Group had 17 employees of which 13 were full-time as at 30 June 2022 (2021: 21 full-time
equivalent employees).
Review of Operations
A full review of the operations of the Group during the year ended 30 June 2022 is included on pages
4 to 33.
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MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
IMPACT OF COVID-19
While the onset of the COVID-19 pandemic was rapid and dramatic, the Company took immediate
action to protect the integrity of the Company’s business interests and the safety and wellbeing of its
employees and stakeholders. Prompt implementation and affirmative compliance with government
and health bodies forced quick change to operating processes.
Matsa operates a remote mining operation and an overseas office, fortunately with the positive
protection measures and support of governments and employees our operation continued to function
close to normal levels though travel restrictions, social distancing and isolation practices had some
impacts on the Group. The closure of borders required immediate action to manage these impacts on
our labour force.
Roster changes, changed travel and commuting schedules, changed camp operations including dining
and enhanced hygiene practices created potential social and mental health impacts. The Company
has taken a considerate approach to the hidden consequences of such changes and continues to work
with its employees to lessen the impact. The over-arching objective of the Group has been to keep all
its employees and stakeholders safe and free from infection and/or spread, and importantly to keep
people employed during these uncertain times.
Given the exploration nature of the Company’s operations the net impact of the pandemic was
estimated to be minor on the Group’s operations. The over-arching objective of the Group is to keep
its employees and stakeholders safe and free from infection and/or spread.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
In the opinion of the Directors, there were no significant changes in the state of affairs of the Group
that occurred during the financial year other than as disclosed in note 21 of the consolidated financial
statements.
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
On 29 August 2022, the Company successfully completed a placement to institutional and
sophisticated investors to raise approximately $1.98M before costs which was heavily oversubscribed.
On 29 September 2022, the Company announced that LGA was not able to settle the purchase of the
Devon and Red October projects via the issue of shares and cash. Under the terms of the SPA, LGA has
10 business days to complete the sale via a cash settlement of $12M. Discussions with LGA for a
resolution to settlement of the sale is currently ongoing. The Directors consider the reclassification of
the Devon and Red October projects as assets held for sale to be appropriate.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
It is expected that the Group will continue its exploration activities in Australia and Thailand. These
are described in more detail in the Review of Operations on page 4 to 33.
ENVIRONMENTAL REGULATIONS AND PERFORMANCE
The Group’s exploration activities are subject to various environmental laws and regulations under
Australian and Thai Legislation. The Group has adequate systems in place for the management of its
environmental obligations. The directors are not aware of any breaches of the legislation during the
financial year which are material in nature.
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MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
DIRECTORS’ MEETINGS
The number of meetings of directors held during the year and the number of meetings attended by
each director were as follows:
Paul Poli
Frank Sibbel
Andrew Chapman
Pascal Blampain
Directors’ Meetings
Number eligible
to attend
5
5
5
5
Number
attended
5
5
5
5
DIRECTORS’ INTERESTS IN THE SHARES AND OPTIONS OF THE COMPANY
As at the date of this report, the interests of the directors in the shares and options of Matsa Resources
Limited were:
Number of
Ordinary Shares
Number of
$0.175 Unlisted
Options
Number of
$0.17 Unlisted
Options
Number of
$0.17 Listed
Options
Paul Poli
Frank Sibbel
Andrew Chapman
Pascal Blampain
13,900,000
700,000
300,000
300,000
2,750,000
1,500,000
1,500,000
-
-
-
-
1,000,000
640,500
52,575
115,500
-
Options granted to directors and officers of the Company
During the financial year, the Company granted 1,000,000 options over unissued ordinary shares for
no consideration in the Company to directors or officers of the Company as part of their remuneration.
SHARE OPTIONS
As at the date of this report the unissued ordinary shares of Matsa Resources Limited under option
are as follows:
Date of Expiry
Exercise Price
Number under Option
30 November 2022
30 November 2022
30 November 2022
30 November 2022
30 November 2022
30 April 2023
31 October 2023
30 November 2023
$0.175
$0.35
$0.35
$0.25
$0.30
$0.17
$0.21
$0.17
5,750,000
1,000,000
2,000,000
2,000,000
44,079,341
49,220,253
3,250,000
1,000,000
108,299,594
Option holders do not have any right, by virtue of the option, to participate in any share issue of the
Company or any related body corporate.
Shares Issued on Exercise of Options
During the financial year, there were no options exercised.
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MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT - Audited
Principles of Compensation
This remuneration report for the year ended 30 June 2022 outlines the remuneration arrangements
of the Company and the Group in accordance with the requirements of the Corporations Act 2001
(“the Act”) and its regulations. This information has been audited as required by Section 308(3C) of
the Act.
The remuneration report details the remuneration arrangements for Key Management Personnel
(“KMP”) who are defined as those persons having authority and responsibility for planning, directing
and controlling the major activities of the Group, directly or indirectly, including any director (whether
executive or otherwise) of the parent company, and includes the four executives in the parent and
the Group receiving the highest remuneration.
For the purposes of this remuneration report, the term ‘executive’ includes the Executive Directors,
Senior Executives and Secretary of the Company and the Group.
The remuneration report is presented under the following sections:
1. Individual key management personnel disclosures
2. Board oversight of remuneration
3. Non-executive Director remuneration arrangements
4. Executive remuneration arrangements
5. Company performance and the link to remuneration
6. Executive contractual arrangements
7. Equity instruments disclosures.
Individual Key Management Personnel Disclosures
Details of KMP of the Company and Group are set out below:
Key Management Personnel
Name
Directors
P Poli
F Sibbel
A Chapman
P Blampain
Executives
D Fielding
Position
Date of
Appointment
Date of
Resignation
Executive Chairman
Director
23 December 2008
25 October 2010
Director and Company Secretary 17 December 2009*
Executive Director
17 February 2021
Group Exploration Manager
12 April 2010
-
-
-
-
-
*A Chapman was appointed Company Secretary on 6 November 2007.
There were no other changes to key management personnel after reporting date and before the date
the consolidated financial report was authorised for issue.
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MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (continued)
Board Oversight of Remuneration
Remuneration Committee
In the opinion of the directors, the Company is not of sufficient size to warrant the formation of a
remuneration committee. It is the board of directors’ responsibility for determining and reviewing
compensation arrangements for the directors and the senior executives.
The Board assesses the appropriateness of the nature and amount of remuneration of Non-Executive
Directors and Executives on a periodic basis by reference to relevant employment market conditions
with the overall objective of ensuring maximum stakeholder benefit from the retention of a high
performing Director and executive team.
Remuneration Approval Process
The Board approves the remuneration arrangements of the Executive Directors and Executives and all
awards made under the long-term incentive plan. The Board also sets the aggregate remuneration of
non-executive directors which is then subject to shareholder approval.
Remuneration Strategy
The Company’s remuneration strategy is designed to attract, motivate and retain employees and non-
executive directors by identifying and rewarding high performers and recognising the contribution of
each employee to the continued growth and success of the Group.
To this end, the Company embodies the following principles in its remuneration framework:
• retention and motivation of key executives;
• attraction of quality management to the Company; and
• performance incentives which allow executives to share the rewards of the success of the
Company.
Remuneration Structure
In accordance with best practice corporate governance, the structure of Non-Executive Director and
Senior Management remuneration is separate and distinct.
Non-Executive Director Remuneration
Objective
The Board seeks to set aggregate remuneration at a level which provides the Company with the ability
to attract and retain Directors of the highest calibre, whilst incurring a cost which is acceptable to
shareholders.
Remuneration Policy
The Constitution and the ASX Listing Rules specify that the aggregate remuneration of Non-Executive
Directors shall be determined from time to time by a general meeting. An amount not exceeding the
amount determined is then divided between the Directors as agreed. The current aggregate
remuneration is $250,000 per year.
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MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (continued)
The amount of aggregate remuneration sought to be approved by shareholders and the manner in
which it is apportioned amongst Directors is reviewed annually. The Board considers advice from
external consultants as well as the fees paid to non-executive Directors of comparable companies
when undertaking the annual review process. No external advice was received during the year. Each
Director receives a fee for being a Director of the Company.
Non-Executive Directors are encouraged by the Board to hold shares in the Company (purchased by
the Director on market). It is considered good governance for Directors to have a stake in the
Company on whose Board he or she sits.
Structure
The remuneration of Non-Executive Directors consists of directors’ fees. Non-Executives are entitled
to receive retirement benefits and to participate in any incentive programs. There are currently no
specific incentive programs.
The Executive Chairman receives no additional directors’ fee in addition to his executive
remuneration. Non-executive directors received a base fee of $42,000 per annum during the financial
year for being a director of the Group.
There are no additional fees for serving on any board committees. Non-executive directors can receive
additional fees for work conducted for the Company outside the scope of their normal duties subject
to being authorised by the Board.
The remuneration report for the Non-Executive Directors for the year ended 30 June 2022 and 30 June
2021 is detailed in this report.
Managing Director and Executive Remuneration Structure
Remuneration Policy
The Company aims to reward executives with a level and mix of remuneration commensurate with
their position and responsibilities within the Company. The current remuneration policy adopted is
that no element of any executive package be directly related to the Company’s financial performance.
Indeed there are no elements of any executive remuneration that are dependent upon the satisfaction
of any specific condition. Remuneration is not linked to the performance of the Company but rather
to the ability to attract and retain executives of the highest calibre. The overall remuneration policy
framework however is structured in an endeavour to advance/create shareholder wealth.
Structure
In determining the level and make-up of executive remuneration, the Board engages external
consultants as needed to provide independent advice.
Remuneration consists of the following key elements:
•
Fixed remuneration (base salary and superannuation); and
• Variable remuneration (short and long term incentives).
The proportion of fixed remuneration and variable remuneration for each executive for the period
ended 30 June 2022 and 30 June 2021 is detailed in this report.
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MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (continued)
Managing Director and Executive Remuneration Structure
Fixed Remuneration
Executive contracts of employment do not include any guaranteed base pay increase. Fixed
remuneration is reviewed annually by the Board. The process consists of a review of the Company,
business unit and individual performance, relevant comparative remuneration internally and
externally and, where appropriate, external advice independent of management.
Executives are given the opportunity to receive their fixed (primary) remuneration in a variety of forms
including cash and fringe benefits such as motor vehicles. It is intended that the manner of payment
chosen will be optimal for the recipient without creating undue cost for the Company.
The fixed remuneration component for executives for the period ended 30 June 2022 and 30 June
2021 is detailed in this report.
Variable Remuneration – Short Term Incentive (STI)
The objective of the STI is to link the increase in shareholder value over the year with the remuneration
received by the Executives charged with achieving that increase. The total potential STI available is set
at a level so as to provide sufficient incentive to the Executives to achieve the performance goals and
such that the cost to the Group is reasonable in the circumstances.
Annual STI payments granted to each Executive depend on their performance over the preceding year
and are based on recommendations from the Executive Chairman following collaboration with the
Board. Typically included are measures such as contribution to strategic initiatives, risk management
and leadership/team contribution.
The aggregate of annual STI payments available for Executives across the Group is subject to the
approval of the Board. Payments are usually delivered as a cash bonus. During the year there were
no STI payments.
Variable Remuneration – Long Term Incentive (LTI)
The objective of the LTI plan is to reward Executives in a manner which aligns the element of
remuneration with the creation of shareholder wealth. As such LTI’s are made to Executives who are
able to influence the generation of shareholder wealth and thus have an impact on the Group’s
performance.
The level of LTI granted is, in turn, dependent on the Company’s recent share price performance, the
seniority of the Executive and the responsibilities the Executive assumes in the Group.
LTI grants to Executives are delivered in the form of employee share options. These options are issued
at an exercise price determined by the Board at the time of issue. The employee share options are
issued in accordance with the Company’s Share Option Plan.
Typically, the grant of LTIs occurs at the commencement of employment or in the event that the
individual receives a promotion and, as such, is not subsequently affected by the individual’s
performance over time. However, under certain circumstances, including breach of employment
conditions, the Directors may cause the options to expire prior to their vesting date.
- 42 -
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (continued)
The Group does have a policy to prohibit executives or directors from entering into arrangements to
protect the value of unvested LTI awards.
Other Benefits
Key management personnel can receive additional benefits as non-cash benefits as part of the terms
and conditions of their appointment. Non-cash benefits typically include car parking and expenses
where the Company pays fringe benefits tax on these benefits.
Company Performance and the Link to Remuneration
Remuneration is not linked to the performance of the Company, but based on the ability to attract
and retain executives of the highest calibre. The overall remuneration policy framework however is
structured in an endeavour to advance/create shareholder wealth.
The Matsa Resources Limited Long Term Incentive Plan has no direct performance requirements but
has specified time restrictions on the exercise of options and performance rights. The granting of
options and performance rights is in substance a performance incentive which allows executives to
share the rewards of the success of the Company.
Service Agreements
It is the Board’s policy that service contracts are entered into with all key management personnel and
that these contracts have no termination date.
Mr Paul Poli, Executive Chairman, has a contract of employment with the Company. Mr Poli is entitled
to receive a salary of $375,000 plus statutory superannuation. This contract is for an unlimited term
and is capable of termination by Mr Poli on one month’s notice. The Group has the right to terminate
the employment contract by giving Mr Poli six months’ notice or making payment equal to six months’
pay in lieu of notice.
Mr Pascal Blampain, Technical Director, has a contract of employment with the Company. Mr
Blampain receives a salary of $275,000 plus statutory superannuation. This contract is for an unlimited
term and is capable of termination on one month’s notice. The Group retains the right to terminate
the contract immediately, by making payment equal to one month’s pay in lieu of notice.
Mr David Fielding, Group Exploration Manager, has a contract of employment with the Company. Mr
Fielding receives a salary of $241,000 plus statutory superannuation. This contract is for an unlimited
term and is capable of termination on one month’s notice. The Group retains the right to terminate
the contract immediately, by making payment equal to one month’s pay in lieu of notice.
Mr Frank Sibbel, Non-Executive Director, has a consultancy contract with the Company. Mr Sibbel is
paid an hourly rate for the provision of consultancy services outside those provided as a director as
required. This contract is capable of termination on one month’s notice. The Group retains the right
to terminate the contract immediately, by making payment equal to one month’s pay in lieu of notice.
- 43 -
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (continued)
Mr Andrew Chapman, Director and Company Secretary, has a contract of employment with the
Company. Mr Chapman receives a salary of $200,000 plus statutory superannuation. This contract is
for an unlimited term and is capable of termination on one month’s notice. The Group retains the
right to terminate the contract immediately, by making payment equal to one month’s pay in lieu of
notice.
The table below shows the performance of the Group as measured by share price.
As at 30 June
Closing share price
Net comprehensive (loss) per
year ended
2022
$0.043
2021
$0.072
2020
$0.155
2019
$0.145
2018
$0.155
(6,028,025)
(9,654,713)
(5,235,103)
(4,947,360)
(3,886,427)
2022
Short Term Benefits
Post-
employment
Benefits
Share-
based
payments
Key Management
Person
Salary &
Fees
$
Other
Superannuation
Options
Total
$
$
$
$
%
Performance
Related
% of
Remuneration
that consists
of securities
Directors
Paul Poli1
Frank Sibbel2
Pascal Blampain
Andrew Chapman
Total
1 Mr Poli is a director and shareholder of Strategic Siam Co Ltd which received payments totalling $42,785 during the year. Strategic Siam
provides administration services to Thai entities. Mr Poli receives an internet and travel allowance as part of his terms of employment.
356,648
54,320
304,041
220,083
935,092
328,973
54,320
275,000
200,000
858,293
23,712
-
23,712
20,083
67,507
-
-
5,329
-
5,329
3,963
-
-
-
3,963
-
-
1.75
-
-
-
-
1.75
-
-
2 Mr Sibbel provided consultancy services to the Company totalling $12,320 during the year.
Executives
David Fielding
Total
224,933
224,933
-
-
22,219
22,219
-
-
247,152
247,152
-
-
-
-
- 44 -
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (continued)
2021
Short Term Benefits
Post-
employment
Benefits
Share-
based
payments
Key Management
Person
Salary &
Fees
$
Other
$
Superannuation
$
Options
$
Total
$
%
Performance
Related
% of
Remuneration
that consists
of securities
Directors
Paul Poli1
Frank Sibbel2
Pascal Blampain3
Andrew Chapman
Total
1 Mr Poli is a director and shareholder of Strategic Siam Co Ltd which received payments totalling $45,025 during the year. Strategic Siam
provides administration services to Thai entities. Mr Poli receives an internet and travel allowance as part of his terms of employment.
328,226
58,895
96,429
200,000
683,550
351,036
58,895
129,592
219,083
758,606
960
-
25,000
-
25,960
21,850
-
8,163
19,083
49,096
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2 Mr Sibbel provided consultancy services to the Company totalling $16,895 during the year.
3 Mr Blampain was appointed as Executive Director on 17 February 2021. Mr Blampain is due a retention bonus of $25,000 under the
terms of his contract of employment.
Executives
David Fielding
Total
236,000
236,000
-
-
21,775
21,775
24,114
24,114
281,889
281,889
8.55
-
8.55
-
Compensation Options Granted and Vested during the year
The table below sets out options granted during the year to Directors and Executives. There were
1,000,000 options issued to a Director during the year. There were no options that were granted in
previous years that vested during the year. The options were issued free of charge and entitle the
holder to subscribe for one fully paid ordinary share in the Company. Due to the nature of the
Company’s activities it does not believe it is appropriate to set vesting conditions at this time.
2022
Vested
Granted Grant Date
No.
No.
P Poli
F Sibbel
P Blampain
A Chapman
D Fielding
-
-
-
-
1,000,000 1,000,000
-
-
-
-
-
-
30.11.21
-
-
Spot
price per
Security
at Grant
Date
$
-
-
0.05
-
-
Exercise
Price
First
Exercise
Date
Expiry
Date
$
-
-
0.17
-
-
-
-
-
-
30.11.21 30.11.23
-
-
-
-
For details on the valuation of the options, including models and assumptions used, please refer to
Note 27.
There were no alterations to the terms and conditions of options granted as remuneration since their
grant date.
- 45 -
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (continued)
The maximum value of the award is equal to the number of options granted multiplied by the fair
value at the grant date. The minimum value of the award in the event of forfeiture is zero.
There were no shares issued on exercise of compensation options during the year.
Value of Options granted as part of remuneration
2022
Value of options
granted during
the year
Value of options
exercised during
the year
Value of options
lapsed during the
year
Paul Poli
Frank Sibbel
Pascal Blampain
Andrew Chapman
David Fielding
$
-
-
5,329
-
-
5,329
$
-
-
-
-
-
-
$
-
-
-
-
-
-
Remuneration
consisting of
options during
the year
%
-
-
1.75
-
-
-
Option holdings of key management personnel
2022
Balance 1
July
No.
Granted as
remune-
ration
No.
P Poli
A Chapman
F Sibbel
P Blampain
D Fielding
5,890,500
2,865,500
2,802,575
-
1,492,797
13,051,372
-
-
-
1,000,000
-
1,000,000
2021
Balance 1
July
No.
Granted as
remune-
ration
No.
P Poli
A Chapman
F Sibbel
P Blampain
D Fielding
5,250,000
2,750,000
2,750,000
-
750,000
11,500,000
-
-
-
-
700,000
700,000
Exercised Net change
other**
Balance on
Resignation
Balance 30
June
Vested &
Exercisable
Not
Exercisable
No.
No.
No.
No.
No.
No.
-
-
-
-
-
-
(2,500,000)
(1,250,000)
(1,250,000)
-
(750,000)
(5,750,000)
-
-
-
-
-
-
3,390,500
1,615,500
1,552,575
1,000,000
742,797
8,301,372
-
-
-
-
-
-
-
-
-
-
-
-
Exercised Net change
other*
Balance on
Resignation
Balance 30
June
Vested &
Exercisable
Not
Exercisable
No.
No.
No.
No.
No.
No.
-
-
-
-
-
-
640,500
115,500
52,575
-
42,797
851,372
5,890,500
2,865,500
2,802,575
-
1,492,797
5,890,500
-
2,865,500
-
2,802,575
-
-
-
-
1,492,797
- 13,051,372 13,051,372
-
-
-
-
-
-
*Net change other refers to free attaching options acquired from the participation of share placements during the year.
**Net change other refers to expiry of options during the year.
- 46 -
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (Continued)
Shareholdings of key management personnel
2022
Balance 1 July
P Poli
A Chapman
F Sibbel
P Blampain
D Fielding
No.
13,650,000
300,000
700,000
-
941,522
15,591,522
2021
Balance 1 July
P Poli
A Chapman
F Sibbel
P Blampain
D Fielding
No.
11,955,000
69,000
594,852
-
755,929
13,374,781
Granted as
remuneration
No.
Options
exercised
No.
Net change
other**
No.
Balance on
resignation
No.
Balance
30 June
No.
-
-
-
-
-
-
Granted as
remuneration
No.
Options
exercised
No.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
250,000
-
-
300,000
-
550,000
Net change
other**
No.
Balance on
resignation
No.
1,695,000
231,000
105,148
-
185,593
2,216,741
-
-
-
-
-
-
-
-
-
-
-
-
13,900,000
300,000
700,000
300,000
941,522
16,141,522
Balance
30 June
No.
13,650,000
300,000
700,000
-
941,522
15,591,522
**Net change other refers to on market purchases and sale and any other corporate action taken by the Company during
the year.
End of Audited Remuneration Report
INDEMNIFYING OFFICERS
The Company’s Constitution provides that, subject to and so far as permitted by the Corporations Act
2001, the Company must, to the extent the person is not otherwise indemnified, indemnify every
officer of the Company out of the assets of the Company to the relevant extent against any liability
incurred by the officer in or arising out of the conduct of the business of the Company or in or arising
out of the discharge of the duties of the officer.
Since the end of the previous financial year, the Company has paid insurance premiums in respect of
Directors’ and Officers’ liability. The policy indemnifies all Directors and Officers of the Company and
its controlled entities against certain liabilities. In accordance with common commercial practice, the
insurance policy prohibits disclosure of the nature of the liability insured against and the amount of
the premium. The Directors have not included details of the nature of the premium paid in respect of
Directors’ and Officers’ liability as such disclosure is prohibited under the terms of the contract.
- 47 -
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of Court to bring proceedings on behalf of the Company or 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 any part of those proceedings.
The Company was not a party to any such proceedings during the year.
CORPORATE GOVERNANCE
In recognising the needs for the highest standards of corporate behaviour and accountability, the
Directors of the Company support and have adhered to the principles of Corporate Governance. The
Company’s corporate governance statement is available on the Company’s website at:
http://www.matsa.com.au/company/corporate-governance/
NON-AUDIT SERVICES
The board of directors is satisfied that the provision of non-audit services during the year is compatible
with the general standard of independence for auditors imposed by the Corporations Act 2001. The
directors are satisfied that the services disclosed below did not compromise the external auditor’s
independence as the nature of the services provided did not compromise the general principles
relating to auditor independence.
The following fees for non-audit services were paid/payable to the external auditors, or by related
practices of the external auditors, during the year ended 30 June 2022:
Taxation services
$19,190
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration for the year ended 30 June 2022 has been received and can
be found on page 49.
Signed in accordance with a resolution of the Board of Directors.
Paul Poli
Executive Chairman
Dated this 29th day of September 2022
- 48 -
Auditor’s independence declaration under section 307C of the Corporations Act 2001 To the Directors of Matsa Resources Limited, I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year ended 30 June 2022 there have been: (i) no contraventions of the auditor’s independence requirements as set out in 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. Nexia Perth Audit Services Pty Ltd PTC Klopper Director Perth 29 September 2022 MATSA RESOURCES LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED
30 JUNE 2022
Continuing operations
Net gain on sale of investments in associates
Net gain on sale of financial assets
Net (loss)/gain on sale of tenements
Net gain on sale of fixed assets
Other income
Depreciation expense
Salaries and employment benefits expenses
Exploration and expenditure written-off/provided for
Other administration expenses
Share based payments expense
Results from operating activities
Finance income
Finance costs
Net finance cost
Share of profit/(loss) of investment in associates, net of tax
Loss/(profit) before income tax expense
Income tax expense
Note
2022
$
2021*
$
5
5
10
5
5
5
-
-
(2,353,509)
60,000
3,275,060
(103,379)
(1,273,501)
(1,028,175)
(1,670,283)
(5,329)
(3,099,116)
496
(540,148)
(539,652)
-
(3,638,768)
-
1,674,472
20,004
1,191,750
-
297,131
(146,480)
(1,433,655)
-
(1,199,074)
(111,956)
292,192
347
(553,182)
(552,835)
1,051,922
791,279
-
Loss/(profit) from continuing operations
Discontinued operations
Loss from discontinued operations
(3,638,768)
791,279
21
(2,389,257)
(10,445,992)
Net loss for the year
(6,028,025)
(9,654,713)
*Comparative information has been re-presented due to a discontinued operation. See Note 21.
The accompanying notes form part of these financial statements.
- 50 -
MATSA RESOURCES LIMITED
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME FOR THE YEAR
ENDED 30 JUNE 2022
Note
2022
$
2021*
$
Net loss for the year
Other comprehensive income
Total comprehensive loss for the year attributable to equity
holders of the company
Loss for the year is attributable to:
Owners of the parent
Non-controlling interest
Total comprehensive loss for the year is attributable to:
Owners of the parent
Non-controlling interest
Earnings per share:
Basic/diluted (loss) per share attributable to ordinary equity
holders of the parent (cents per share)
Earnings per share – continuing operations:
Basic/diluted ((loss)/profit per share attributable to ordinary
equity holders of the parent (cents per share)
(6,028,025)
-
(9,654,713)
-
(6,028,025)
(9,654,713)
(6,028,111)
86
(6,028,025)
(9,655,204)
491
(9,654,713)
(6,028,111)
86
(6,028,025)
(9,655,204)
491
(9,654,713)
20
(1.70)
(3.58)
20
(1.02)
0.29
*Comparative information has been re-presented due to a discontinued operation. See Note 21.
The accompanying notes form part of these financial statements.
- 51 -
MATSA RESOURCES LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022
Note
2022
$
2021
$
Current assets
Cash and cash equivalents
Trade and other receivables
Other assets
Inventories
Assets classified as held for sale
Total current assets
Non-current assets
Other assets
Other receivables
Exploration and evaluation assets
Property, plant and equipment
Mine properties and development
Right-of-use assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Borrowings
Lease liabilities
Provisions
Liabilities associated with assets held for sale
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity attributable to equity holders
of the Company
Non-controlling interests
Total equity
24
7
8
9
21
8
7
10
12
11
13
14
15
13
16
21
15
13
16
17
18
19
1,572,483
175,469
172,935
-
9,008,264
10,929,151
287,363
200,000
10,627,811
538,564
-
61,776
11,715,514
22,644,665
2,694,409
4,118,332
66,360
295,290
2,506,240
9,680,631
-
15,850
402,924
418,774
10,099,405
12,545,260
3,029,326
237,596
253,900
79,981
-
3,600,803
287,363
200,000
21,437,966
1,917,968
192,694
195,831
24,231,822
27,832,625
4,807,829
224,732
98,986
376,222
-
5,507,769
3,984,116
87,434
2,881,324
6,952,874
12,460,643
15,371,982
63,892,578
10,028,515
(61,454,137)
12,466,956
78,304
12,545,260
60,696,604
10,023,186
(55,426,026)
15,293,764
78,218
15,371,982
The accompanying notes form part of these financial statements.
- 52 -
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2022
MATSA RESOURCES LIMITED
Issued
Capital
Ordinary
$
Accumulated
Losses
$
Equity
Settled
Benefits
Reserve
$
Total
$
Non-
controlling
interest
$
Total
$
-
51,348,741
Balance at 1 July
2020
Comprehensive
gain/(loss) for the
year
Total comprehensive
gain/(loss) for the
year
Transactions with
owners recorded
directly in equity
Issue of share capital 10,197,307
(849,444)
Share issue costs
Share based
payment
-
-
(45,770,822) 9,752,588
15,330,507
77,727 15,408,234
(9,655,204)
-
(9,655,204)
491
(9,654,713)
(9,655,204)
-
(9,655,204)
491
(9,654,713)
-
-
-
-
-
10,197,307
(849,444)
270,598
270,598
-
-
-
10,197,307
(849,444)
270,598
Balance at 30 June
2021
Balance at 1 July
2021
Comprehensive
gain/(loss) for the
year
Total comprehensive
gain/(loss) for the
year
Transactions with
owners recorded
directly in equity
Issue of share capital
Share issue costs
Share based
payment
Balance at 30 June
2022
60,696,604
(55,426,026) 10,023,186
15,293,764
78,218 15,371,982
60,696,604
(55,426,026) 10,023,186
15,293,764
78,218 15,371,982
-
-
(6,028,111)
-
(6,028,111)
86
(6,028,025)
(6,028,111)
-
(6,028,111)
86
(6,028,025)
3,420,950
(224,976)
-
-
-
-
-
-
3,420,950
(224,976)
5,329
5,329
-
-
-
3,420,950
(224,976)
5,329
63,892,578
(61,454,137) 10,028,515
12,466,956
78,304 12,545,260
The accompanying notes form part of these financial statements.
- 53 -
MATSA RESOURCES LIMITED
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2022
Note
2022
$
2021
$
Cash flows from operating activities
Other income
Payments to suppliers and employees
Interest received
Interest paid
Net payments to discontinued operations
Net cash used in provided by operating activities
Cash flows from investing activities
Proceeds from sale of financial assets
Proceeds from sale of investment in associates
Purchase of plant and equipment
Exploration and evaluation assets
Proceeds on sale of plant and equipment
Proceeds on sale of tenements
Refund of security deposits
Net payments to discontinued operations
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Costs of issue
Repayment of lease liabilities
Repayment of borrowings
Interest paid
Net payments to discontinued operations
Net cash provided by financing activities
24
17
17
24
24
3,302,846
(3,063,207)
496
-
(3,031,666)
(2,791,531)
-
-
(4,119)
(1,624,031)
35,000
713,636
-
(80,473)
(959,987)
3,375,350
(224,976)
(104,210)
(224,868)
(526,092)
(529)
2,294,675
314,161
(2,522,681)
347
(35,002)
(2,560,498)
(4,803,673)
1,113,354
2,882,129
(10,900)
(2,102,694)
-
250,000
32,876
(4,848,420)
(2,683,655)
10,022,423
(691,919)
(114,972)
-
(495,976)
-
8,719,556
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of financial
year
Cash and cash equivalents at end of financial year
24
(1,456,843)
1,232,228
3,029,326
1,572,483
1,797,098
3,029,326
*Comparative information has been re-presented due to a discontinued operation. See Statements of
Consolidated Profit or Loss and Other Comprehensive Income and Note 21.
The accompanying notes form part of these financial statements.
- 54 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
CORPORATE INFORMATION
1.
The consolidated financial statements of Matsa Resources Limited for the year ended 30 June 2022
were authorised for issue in accordance with a resolution of the Board of Directors on 29 September
2022.
Matsa Resources Limited (the “Company”) is a for profit company limited by shares incorporated and
domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange.
The nature of the operations and principal activities of the Group are described in the Directors’
Report.
The consolidated financial statements of the Company as at and for the year ended 30 June 2022
comprise the Company, its subsidiaries (together referred to as the “Group” or “Consolidated Entity”)
and the Group’s interest in associates.
2.
SIGNIFICANT ACCOUNTING POLICIES
(a)
Basis of Preparation
The consolidated financial report is a general purpose financial report which has been prepared in
accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and
other authoritative pronouncements of the Australian Accounting Standards Board.
The consolidated financial statements have been prepared on the historical cost basis except for the
financial assets which have been measured at fair value.
The consolidated financial report is presented in Australian dollars.
(b)
Compliance with IFRS
The financial report complies with Australian Accounting Standards as issued by the Australian
Accounting Standards Board and also International Financial Reporting Standards (IFRS) as issued by
the International Accounting Standards Board.
(c)
Changes in Accounting Policies and Disclosures
Since 1 July 2021 the Group has adopted all the Standards and Interpretations mandatory for annual
reporting periods beginning on or after 1 July 2021. The adoption of any new and revised standards
and interpretations effective from 1 July 2021 has not resulted in any changes to the Group’s
accounting policies and has had no material effect on the amounts reported to the current or prior
period. The Group has not elected to early adopt any new standards or interpretations that are not
mandatory effective.
Standards and Interpretations in issue not yet adopted for the year ended 30 June 2022
The directors have also reviewed all Standards and Interpretations in issue not yet adopted for the
year ended 30 June 2022. As a result of this review the Directors have determined that there is no
material impact of the Standards and Interpretations in issue not yet adopted on the Group and,
therefore, no change is necessary to Group accounting policies.
- 55 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
2.
SIGNIFICANT ACCOUNTING POLICIES (Continued)
(d)
Basis of consolidation
The consolidated financial statements comprise the financial statements of the parent entity and its
subsidiaries (‘the Group’) as at 30 June each year.
Control is achieved where the Company has exposure to variable returns from the entity and the
power to affect those returns. The existence and effect of potential voting rights that are currently
exercisable or convertible are considered when assessing whether a consolidated entity controls
another entity.
The financial statements of the subsidiaries are prepared for the same reporting period as the parent
company, using consistent accounting policies. In preparing consolidated financial statements, all
intercompany balances and transactions, income and expenses and profit and losses resulting from
intra-group transactions, have been eliminated in full.
Subsidiaries are fully consolidated from the date on which control is obtained by the Consolidated
Entity and cease to be consolidated from the date on which control is transferred out of the
Consolidated Entity.
Where there is loss of control of a controlled entity, the consolidated financial statements include the
results for the part of the reporting period during which the Company has control.
Changes in ownership interest of a subsidiary (without a change in control) are accounted for as a
transaction with owners in their capacity as owners.
(e) Going Concern
The consolidated financial report has been prepared on the going concern basis, which contemplates
continuity of normal business activities and the realisation of assets and settlements of liabilities in
the ordinary course of business.
The Group has reported a consolidated loss for the year of $6,028,025 (2021: $9,654,713) and a cash
outflow from operating activities of $2,791,531 (2021: $4,803,673). At the reporting date, the Group
had $1,572,483 in cash and term deposit balances. The Group also had borrowings of approximately
$4,000,000 due and payable on 30 November 2022. Refer Note 15 for further details. On 20 December
2021, the Company executed a binding agreement to sell the Red October and Devon gold projects to
Linden Gold Pty Ltd (LGL) for a consideration of $20,000,000 with the sale expected to be completed
within the next 4 to 9 months. Refer note 21 for further details.
The Directors also manage discretionary expenditure in line with the Group’s cash flow and are
confident that there are sufficient funds to meet the Group’s working capital and funding
requirements for a minimum of 12 months from the date of this report.
The Directors consider the going concern basis of preparation to be appropriate based on forecast
cash flows and confidence in raising additional funds and extension of borrowings. In the event that
the Group is not successful in raising funds from the issue of new equity or extension of borrowings
or if the sale of LGL does not realise, there exists material uncertainty that may cast significant doubt
on the Group's ability to continue as a going concern and realise its assets and extinguish its liabilities
in the normal course of business and at the amounts stated in the financial report.
- 56 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
2.
SIGNIFICANT ACCOUNTING POLICIES (Continued)
(f)
Segment Reporting
Determination and presentation of operating segments
An operating segment is a component of the Group that engages in business activities from which it
may earn revenues and incur expenses, including revenues and expenses that relate to transactions
with any of the Group’s other components. All operating segments’ operating results are regularly
reviewed by the Group’s chief operating decision maker to make decisions about resources to be
allocated to the segment and assess its performance, and for which discrete financial information is
available.
Segment results that are reported to the chief operating decision maker include items directly
attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated
items comprise mainly corporate assets (primarily the Company’s headquarters), head office
expenses, and income tax assets and liabilities.
Segment capital expenditure is the total cost incurred during the year to acquire property, plant and
equipment, and intangible assets other than goodwill.
(g)
Business combinations
Business combinations are accounted for using the acquisition method. The cost of an acquisition is
measured as the aggregate of the consideration transferred, measured at acquisition date fair value
and the amount of any non-controlling interest in the acquiree. For each business combination, the
Group elects whether it measures the non-controlling interest in the acquiree either at fair value or
at the proportionate share of the acquiree’s identifiable net assets. Acquisition costs incurred are
expensed and included in administrative expenses.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for
appropriate classification and designation in accordance with the contractual terms, economic
circumstances and pertinent conditions as at the acquisition date. This includes the separation of
embedded derivatives in host contracts by the acquiree.
If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s
previously held equity interest in the acquiree is remeasured to fair value at the acquisition date
through profit or loss.
Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the
acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed
to be an asset or liability will be recognised in accordance with AASB 9 Financial Instruments (‘AASB
9’) either in profit or loss or as a change to other comprehensive income. If the contingent
consideration is classified as equity, it will not be remeasured. Subsequent settlement is accounted
for within equity. In instances where the contingent consideration does not fall within the scope of
AASB 9, it is measured in accordance with the appropriate Australian accounting standard.
- 57 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
2.
SIGNIFICANT ACCOUNTING POLICIES (Continued)
(h)
Foreign currency transactions and balances
(i) Functional and presentation currency
The functional currency of each entity within the Consolidated Entity is the currency of the primary
economic environment in which that entity operates. The consolidated financial statements are
presented in Australian Dollars which is the parent entity’s functional and presentation currency.
(ii) Transactions and balances
Transactions in foreign currencies are initially recorded in the functional currency at the exchange
rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign
currencies are retranslated at the rate of exchange ruling at the reporting date.
Non monetary items are measured in terms of historical cost in a foreign currency are translated using
the exchange rate as at the date of the initial transaction. All exchange differences in the consolidated
financial report are recorded in profit and loss.
(iii) Transactions of subsidiary Companies’ functional currency to presentation currency
The results of the subsidiaries are translated into Australian Dollars (presentation currency). Income
and expenses are translated at the exchange rates at the date of the transactions. Assets and liabilities
are translated at the closing exchange rate for each reporting date. Share capital, reserves and
accumulated losses are converted at applicable historical rates.
Exchange variations resulting from the translation are recognised in the foreign currency translation
reserve in equity. On consolidation, exchange differences arising from the translation of the net
investment in subsidiaries are taken to the foreign currency translation reserve. If a subsidiary were
sold, the proportionate share of exchange differences would be transferred out of equity and
recognised in the statement of comprehensive income.
(i)
Financial instruments
Non derivative financial instruments
Non derivative financial instruments comprise investments in equity securities, other receivables, cash
and cash equivalents and trade and other payables.
Trade and other receivables are generally due for settlement within 30 days. They are presented as
current assets unless collection is not expected for more than 12 months after the reporting date.
Trade and other receivables are recognised at amortised cost using the effective interest rate method,
less any allowance for expected credit losses.
The Group assesses at each reporting date whether there is objective evidence that a financial asset
or group of financial assets is impaired. For trade and other receivables, the Group applies the
simplified approach permitted by AASB 9 to determine any allowances for expected credit losses,
which requires expected lifetime losses to be recognised from initial recognition of the receivables.
The expected credit losses on these financial assets are estimated using a provision matrix based on
the Group’s historical credit loss experience. The amounts held in trade and other receivables do not
contain impaired assets and are not past due. Based on the credit history of these trade and other
receivables, it is expected that the amounts will be received when due.
- 58 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
2.
(i)
SIGNIFICANT ACCOUNTING POLICIES (Continued)
Financial instruments (continued)
The Group’s financial risk management objectives and policies are set out in Note 26.
Due to the short-term nature of these receivables their carrying value is assumed to approximate their
fair value.
Financial assets are recognised and derecognised on settlement date where the purchase or sale of
an investment is under a contract whose terms require delivery of the investment within the time-
frame established by the market concerned. They are initially measured at fair value, net of
transaction costs, except for those financial assets classified as fair value through profit or loss, which
are initially measured at fair value. Transaction costs of financial assets carried at fair value through
profit or loss are expensed in profit or loss.
The Group classifies its financial assets as either financial assets at fair value though profit or loss
(“FVPL”), fair value though other comprehensive income (“FVOCI”) or at amortised cost. The
classification depends on the entity’s business model for managing the financial assets and the
contractual terms of the cash flows.
For investments in equity instruments, the classification depends on whether the Group has made an
irrevocable election at the time of initial recognition to account for the equity investment at FVPL or
FVOCI.
Financial assets at FVPL
For assets measured at FVPL, gains and losses will be recorded in profit or loss. The Group’s derivative
financial instruments are recognised at FVPL. Assets in this category are subsequently measured at
fair value. The fair values of financial assets in this category are determined by reference to active
market transactions or using a valuation technique where no active market exists. Refer to Note 26
for additional details. The Group has elected to measure its listed equities at FVPL.
Financial assets at OCI
For assets measured at FVOCI, gains and losses will be recorded in other comprehensive income. There
is no subsequent reclassification of fair value gains and losses to profit or loss following the
derecognition of the investment. Dividends from such investments continue to be recognised in profit
or loss as other income when the Group’s right to receive payments is established. Impairment losses
(and reversal of impairment losses) on equity investments measured at FVOCI are not reported
separately from other changes in fair value.
Assets in this category are subsequently measured at fair value. The fair values of quoted investments
are based on current bid prices in an active market.
Other
Other non-derivative financial instruments are measured at amortised cost using the effective interest
method.
- 59 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
2.
SIGNIFICANT ACCOUNTING POLICIES (Continued)
(j)
Investments in associates
The Consolidated Entity's investment in its associates is accounted for using the equity method of
accounting in the consolidated financial statements. The associates are entities over which the
Consolidated Entity has significant influence and that are neither subsidiaries nor joint ventures.
The Consolidated Entity generally deems it has significant influence if it has over 20% of the voting
rights.
Under the equity method, investments in the associates are carried in the consolidated statement of
financial position at cost plus post-acquisition changes in the Consolidated Entity's share of net assets
of the associates.
Goodwill relating to an associate is included in the carrying amount of the investment and is not
amortised. After application of the equity method, the Consolidated Entity determines whether it is
necessary to recognise any impairment loss with respect to the Consolidated Entity's net investment
in associates. Goodwill included in the carrying amount of the investment in associate is not tested
separately, rather the entire carrying amount of the investment is tested for impairment as a single
asset. If an impairment is recognised, the amount is not allocated to the goodwill of the associate. The
Consolidated Entity's share of its associates' post-acquisition profits or losses is recognised in the
profit and loss, and its share of post-acquisition movements in reserves is recognised in reserves. The
cumulative post-acquisition movements are adjusted against the carrying amount of the investment.
Dividends receivable from associates reduce the carrying amount of the investment.
When the Consolidated Entity's share of losses in an associate equals or exceeds its interest in the
associate, including any unsecured long-term receivables and loans, the Consolidated Entity does not
recognise further losses, unless it has incurred obligations or made payments on behalf of the
associate.
The financial statements of the associate are prepared for the same reporting period as the
Consolidated Entity. When necessary, adjustments are made to bring the accounting policies in line
with those of the Consolidated Entity.
(k)
Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract
is considered to contain a lease if it allows the Group the right to control the use of an identified asset
over a period of time in return for consideration. Where a contract or arrangement contains a lease,
the Group recognises a right-of-use asset and a lease liability at the commencement date of the lease.
A right-of-use asset is initially measured at cost, which is the present value of future lease payments
adjusted for any lease payments made at or before the commencement date, plus any make-good
obligations and initial direct costs incurred. Lease assets are depreciated using the straight-line
method over the shorter of their useful life and the lease term. Periodic adjustments are made for any
re-measurements of the lease liabilities and for impairment losses.
Lease liabilities are initially measured at the present value of future minimum lease payments,
discounted using the Group’s incremental borrowing rate if the rate implicit in the lease cannot be
readily determined, and are subsequently measured at amortised cost using the effective interest
rate. Minimum lease payments include fixed payments, amounts expected to be paid under a residual
- 60 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
2.
SIGNIFICANT ACCOUNTING POLICIES (Continued)
(k)
Leases (continued)
value guarantee, the exercise price of purchase options for which the Group is reasonably certain to
exercise and incorporate the Group’s expectations of lease extension options.
The lease liability is remeasured when there are changes in future lease payments arising from a
change in rates, index or lease terms from exercising an extension or termination option. A
corresponding adjustment is made to the carrying amount of the lease assets.
Short term leases (lease term of 12 months or less) and leases of low value assets ($5,000 or less) are
recognised as incurred as an expense in the consolidated income statement. Low value assets
comprise computers and items of IT equipment.
(l)
Impairment of non-financial assets
The Group assesses, at each reporting date, whether there is any objective evidence that a financial
asset or a group of financial assets is impaired. A financial asset or a group of financial assets is deemed
to be impaired if, and only if, there is objective evidence of impairment as a result of one or more
events that has occurred after the initial recognition of the asset (an incurred ”loss event”) and that
loss event has an impact on the estimated future cash flows of the financial asset or the group of
financial assets that can be reliably estimated. Evidence of impairment may include indications that
the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency
in interest or principal payments, the probability that they will enter bankruptcy or other financial
reorganisation and when observable data indicate that there is a measurable decrease in the
estimated future cash flows, such as changes in arrears or economic conditions that correlate with
defaults.
(m) Cash and cash equivalents
Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand
and short-term deposits that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value.
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash
equivalents as defined above, net of outstanding bank overdrafts. Bank overdrafts are included within
interest bearing loans and borrowings in the current liabilities on the statement of financial position.
(n)
Trade and other receivables
Trade and other receivables, which generally have 30-60 day terms, are recognised initially at fair
value and subsequently measured at amortised cost using the effective interest rate method, less an
allowance for impairment.
Collectability of trade and other receivables is reviewed on an ongoing basis. Individual debts that are
known to be uncollectible are written off when identified. An impairment allowance is recognised
when there is objective evidence that the Consolidated Entity will not be able to collect the receivable.
Financial difficulties of the debtor, default payments or debts more than 60 days overdue are
considered objective evidence of impairment. The amount of the impairment loss is the receivable
carrying amount compared to the present value of estimated future cash flows, discounted at the
original effective interest rate.
- 61 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
2.
SIGNIFICANT ACCOUNTING POLICIES (Continued)
(o)
Inventories
Inventories are valued at the lower of cost and net realisable value. Cost includes expenditure incurred
in acquiring and bringing the inventories to their existing condition and location and is determined
using the weighted average cost method.
(p)
Interests in Joint Ventures
The Group’s share of the assets, liabilities, revenue and expenses of joint venture operations are
included in the appropriate items of the consolidated financial statements.
(q)
Property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment.
Capital work-in-progress is stated at cost and comprises all costs directly attributable to bringing the
assets under construction ready to their intended use. Capital work-in-progress is transferred to
property, plant and equipment at cost on completion.
Depreciation is calculated on a straight-line basis over the estimated useful life of the asset which
ranges between 3 and 5 years except for buildings which are depreciated over 20 years.
Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the item) is included in the statement of comprehensive
income in the period the item is derecognised.
(r)
Exploration, evaluation and development expenditure
Expenditure on acquisition, exploration and evaluation relating to an area of interest is capitalised and
carried forward at cost where rights to tenure of the area of interest are current and:
i) it is expected that expenditure will be recouped through successful development and
exploitation of the area of interest or alternatively by its sale; or
ii) exploration and evaluation activities are continuing in an area of interest, but at reporting
date have not yet reached a stage which permits a reasonable assessment of the existence
or otherwise of economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing
to carry forward costs in relation to that area of interest. Where uncertainty exists as to the future
viability of certain areas, the value of the area of interest is written off to the statement of
comprehensive income or provided against.
Impairment
The carrying value of capitalised exploration and evaluation expenditure is assessed for impairment
at the cash generating unit level whenever facts and circumstances suggest that the carrying amount
of the asset may exceed its recoverable amount.
- 62 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
2.
(r)
SIGNIFICANT ACCOUNTING POLICIES (Continued)
Exploration, evaluation and development expenditure (continued)
An impairment exists when the carrying amount of an asset or cash generating unit exceeds its
recoverable amount. The asset or cash generating unit is then written down to its recoverable amount.
Any impairment losses are recognised in the statement of comprehensive income.
(s) Mine properties and development
Expenditure on the acquisition and development of mine properties within an area of interest are
carried forward at cost separately for each area of interest. Accumulated expenditure is amortised
over the life of the area of interest to which such costs relate on a production output basis.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing
to carry forward costs in relation to that area of interest.
Impairment
The carrying value of capitalised mine properties and development expenditure is assessed for
impairment whenever facts and circumstances suggest that the carrying amount of the asset may
exceed its recoverable amount.
Recoverable amount is determined for an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets or groups of assets. When the carrying
amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is
written down to its recoverable amount.
(t)
Trade and other payables
Trade and other payables are carried at amortised cost. They represent liabilities for goods and
services provided to the Group prior to the end of the financial year that are unpaid and arise when
the Group becomes obligated to make future payments in respect of the purchase of these goods and
services. The amounts are unsecured and are usually paid within 30 days of recognition.
(u)
Rehabilitation costs
The Consolidated Entity is required to decommission and rehabilitate mines and processing sites at
the end of their producing lives to a condition acceptable to the relevant authorities.
The expected cost of any approved decommissioning or rehabilitation programme, discounted to its
net present value, is provided when the related environmental disturbance occurs. The cost is
capitalised when it gives rise to future benefits, whether the rehabilitation activity is expected to occur
over the life of the operation or at the time of closure. The capitalised cost is amortised over the life
of the operation and the increase in the net present value of the provision for the expected cost is
included in financing expenses. Expected decommissioning and rehabilitation costs are based on the
discounted value of the estimated future cost of detailed plans prepared for each site. Where there is
a change in the expected decommissioning and restoration costs, the value of the provision and any
related asset are adjusted and the effect is recognised in profit or loss on a prospective basis over the
remaining life of the operation.
The estimated costs of rehabilitation are reviewed annually and adjusted as appropriate for changes
in legislation, technology or other circumstances. Cost estimates are not reduced by potential
proceeds from the sale of assets or from plant clean up at closure.
- 63 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
2.
SIGNIFICANT ACCOUNTING POLICIES (Continued)
(v)
Interest-bearing loans and borrowings
All loans and borrowings are initially recognised at the fair value of the consideration received, less
directly attributable transaction costs.
After initial recognition, interest-bearing loans and borrowings are subsequently measured at
amortised cost using the effective interest method. Fees paid on the establishment of loan facilities
that are yield related are included as part of the carrying amount of the loans and borrowings.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer
settlement of the liability for at least 12 months after the balance date.
(w) Borrowing costs
Borrowing costs are recognised as an expense when incurred unless they relate to qualifying assets in
which case they are capitalised.
(x)
Employee benefits
Provision is made for the Company’s liability for employee benefits arising from services rendered by
employees to reporting date. Employee benefits expected to be settled within one year have been
measured at the amounts expected to be paid when the liability is settled, plus related on-costs.
Employee benefits payable later than one year have been measured at the present value of the
estimated future cash outflows to be made for those benefits.
(y)
Provisions
Provisions are recognised when the Consolidated Entity has a present obligation (legal or constructive)
as a result of a past event, it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation.
Provisions are measured at the present value of management’s best estimate of the expenditure
required to settle the present obligation at the reporting date. The discount rate used to determine
the present value reflects current market assessments of the time value of money and the risks
specific to the liability. The increase in the provision resulting from the passage of time is recognised
in finance costs.
(z)
Share-based payment transactions
The Consolidated Entity provides benefits to employees (including Directors) in the form of share-
based payment transactions, whereby employees render services in exchange for shares or rights over
shares (equity-settled transactions).
The Consolidated Entity has one plan in place that provides these benefits. It is the Employee Share
Option Plan (“ESOP”) which provides benefits to all employees including Directors. The scheme has
no direct performance requirements. The terms of the share options are as determined by the Board.
Where a participant ceases employment prior to the vesting of their share options, the share options
are forfeited. Where a participant ceases employment after the vesting of their share options, the
share options automatically lapse after one month of ceasing employment unless the Board decides
otherwise at its discretion.
- 64 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
2.
SIGNIFICANT ACCOUNTING POLICIES (Continued)
(z)
Share-based payment transactions (continued)
The cost of these equity-settled transactions with employees is measured by reference to the fair
value at the date at which they are granted. The fair value is determined by using a Black Scholes
model. Further details of which are given in Note 27.
In valuing equity-settled transactions, no account is taken of any vesting conditions, other than
conditions linked to the price of the shares of the Company (market conditions) if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity,
over the period in which the performance and/or service conditions are fulfilled (the vesting period),
ending on the date on which the relevant employees become fully entitled to the award (the vesting
date).
At each subsequent reporting date until vesting, the cumulative charge to the statement of profit or
loss and other comprehensive income is the product of (i) the grant date fair value of the award; (ii)
the current best estimate of the number of awards that will vest, taking into account such factors as
the likelihood of employee turnover during the vesting period and the likelihood of non-market
performance conditions being met; and (iii) the expired portion of the vesting period. The charge to
the statement of profit or loss and other comprehensive income for the year is the cumulative amount
as calculated above less the amounts already charged in previous years. There is a corresponding
credit to equity.
Until an award has vested, any amounts recorded are contingent and will be adjusted if more or fewer
awards vest than were originally anticipated to do so. Any award subject to a market condition is
considered to vest irrespective of whether or not the market condition is fulfilled, provided that all
other conditions are satisfied.
If a non-vesting condition is within the control of the Consolidated Entity, Company or the employee,
the failure to satisfy the condition is treated as a cancellation. If a non-vesting condition within the
control of neither the Consolidated Entity, Company nor employee is not satisfied during the vesting
period, any expense for the award not previously recognised is recognised over the remaining vesting
period, unless the award is forfeited.
If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the
terms had not been modified. An additional expense is recognised for any modification that increases
the total fair value of the share-based payment arrangement, or is otherwise beneficial to the
employee, as measured at the date of modification. If an equity-settled award is cancelled, it is treated
as if it had vested on the date of cancellation, and any expense not yet recognised for the award is
recognised immediately. However, if a new award is substituted for the cancelled award, and
designated as a replacement award on the date that it is granted, the cancelled and new award are
treated as if they were a modification of the original award, as described in the previous paragraph.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the
computation of earnings per share.
(aa) Revenue
Revenue is recognised when or as the Group transfers control of goods or services to a customer at
the amount to which the Group expected to be entitled. If the consideration promised includes a
variable amount, the Group estimates the amount of consideration to which it will be entitled. The
following specific recognition criteria must be met before revenue is recognised:
- 65 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
2.
SIGNIFICANT ACCOUNTING POLICIES (Continued)
(aa)
Revenue (continued)
Sale of goods
The Group recognises revenue when it satisfies a performance obligation by transferring a promised
good or service to a customer which occurs when control of goods or services have been transferred
to the buyer and the associated costs can be estimated reliably, there is no continuing management
involvement with the goods, and the amount of revenue can be measured reliably. Revenue from ore
sales is brought to account when the control of goods or services is transferred have transferred to
the buyer and selling prices are known or can be reasonably estimated.
R&D Refund
Revenue is recognised on receipt of refunds from the Australian Taxation Office for research and
development expenditure incurred during the previous financial year.
Dividend Income
Revenue is recognised on receipt of dividends from listed investments.
Finance income
Income 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.
COVID-19 Government Grant
Cash flow boost incentive from the government is recognised when it is received or when the right to
receive payment is established.
(ab)
Income tax
Deferred income tax is provided on all temporary differences at the reporting date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences:
• when the deferred income tax liability arises from the initial recognition of an asset or liability in
a transaction that is not a business combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss; and
• when the taxable temporary differences associated with investments in subsidiaries, associates
and interests in joint ventures, except where the timing of the reversal of the temporary
differences can be controlled and it is probable that the temporary differences will not reverse
in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of
unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences, and the carry-forward of unused tax
assets and unused tax losses can be utilised:
- 66 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
2.
SIGNIFICANT ACCOUNTING POLICIES (Continued)
(ab)
Income tax (continued)
• when the deferred income tax asset relating to the deductible temporary difference arises from
the initial recognition of an asset or liability in a transaction that is not a business combination
and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;
and
• when the deductible temporary differences associated with investments in subsidiaries,
associates and interests in joint ventures, deferred tax assets are only recognised to the extent
that it is probable that the temporary differences will reverse in the foreseeable future and
taxable profit will be available against which the temporary differences can be utilised.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or
part of the deferred income tax asset to be utilised.
Unrecognised income taxes are reassessed at each reporting date and are recognised to the extent
that it has become probable that future taxable profit will allow the deferred tax asset to be
recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to
the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have
been enacted or substantively enacted at the reporting date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the
statement of comprehensive income.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set
off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to
the same taxable entity and the same taxation authority.
(ac) Contributed equity
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.
The amount of benefits brought to account or which may be realised in the future is based on the
assumption that no adverse change will occur in income taxation legislation and the anticipation that
the economic entity will derive sufficient future assessable income to enable the benefit to be realised
and comply with the conditions of deductibility imposed by the law.
(ad) Other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
• when the GST incurred on a purchase of goods and services is not recoverable from the
taxation authority, in which case the GST is recognised as part of the cost of acquisition of the
asset or as part of the expense item as applicable; and
•
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the statement of financial position.
- 67 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
2.
SIGNIFICANT ACCOUNTING POLICIES (Continued)
(ad) Other taxes (continued)
Cash flows are included in the statement of cash flows on a gross basis and the GST component of
cash flows arising from investing and financing activities, which is recoverable from, or payable to, the
taxation authority are classified as operating cash flows.
Commitments and contingencies are disclosed net of amounts of GST recoverable from, or payable
to, the taxation authority.
(ae) Earnings per share
Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to
exclude any costs of servicing equity (other than dividends) and preference share dividends, divided
by the weighted average number of ordinary shares, adjusted for any bonus element.
Diluted earnings per share is calculated as net profit attributable to members of the parent, adjusted
for:
•
•
costs of servicing equity (other than dividends) and preference share dividends;
the after tax effect of dividends and interest associated with dilutive potential ordinary
shares that have been recognised as expenses; and
• other non-discretionary changes in revenue or expenses during the period that would result
from the dilution of potential ordinary shares.
Divided by the weighted average number of ordinary shares and dilutive potential ordinary shares,
adjusted for any bonus element.
- 68 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
3.
SIGNIFICANT 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 and estimates on historical
experience and on other various factors it believes to be reasonable under the circumstances, the
result of which form the basis of the carrying values of assets and liabilities that are not readily
apparent from other sources.
Management has identified the following critical accounting policies for which significant judgements,
estimates and assumptions are made. Actual results may differ from these estimates under different
assumptions and conditions and may materially affect financial results or the financial position
reported in future periods.
Further details of the nature of these assumptions and conditions may be found in the relevant notes
to the financial statements.
Significant accounting estimates and assumptions
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 a Black Scholes model, using the assumptions as discussed in Note 27. The
accounting estimates and assumptions relating to equity-settled share-based payments would have
no impact on the carrying amounts of assets and liabilities in the next annual reporting period but may
impact expenses and equity.
Impairment of capitalised exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a
number of factors, including whether the Consolidated Entity decides to exploit the related lease itself
or, if not, whether it successfully recovers the related exploration and evaluation asset through sale.
Factors that could impact the future recoverability include the level of reserves and resources, future
technological changes, which could impact the cost of mining, future legal changes (including changes
to environmental restoration obligations) and changes to commodity prices.
To the extent that capitalised exploration and evaluation expenditure is determined not to be
recoverable in the future, profits and net assets will be reduced in the period in which this
determination is made.
In addition, exploration and evaluation expenditure is capitalised if activities in the area of interest have
not yet reached a stage that permits a reasonable assessment of the existence or otherwise of
economically recoverable reserves. To the extent it is determined in the future that this capitalised
expenditure should be written off, profits and net assets will be reduced in the period in which this
determination is made.
Impairment of property, plant and equipment
Property, plant and equipment is reviewed for impairment if there is any indication that the carrying
amount may not be recoverable. Where a review for impairment is conducted, the recoverable amount
is assessed by reference to the higher of “value in use” (being net present value of expected future cash
flows of the relevant cash generating unit) and “fair value less costs to sell.”
- 69 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
3.
SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS (Continued)
In determining the value in use, future cash flows are based on:
• estimates of the quantities of ore reserves and mineral resources for which there is a high
degree of confidence of economic extraction;
future production levels;
future commodity prices; and
future cash costs of production and capital expenditure.
•
•
•
Variations to the expected cash flows, and the timing thereof, could result in significant changes to any
impairment losses recognised, if any, which in turn could impact future financial results.
Mine rehabilitation provision
The Consolidated Entity assesses its mine rehabilitation provision on an annual basis in accordance with
the accounting policy stated in Note 2(u). In determining an appropriate level of provision,
consideration is given to the expected future costs to be incurred, the timing of those future costs
(largely dependent on the life of mine) and the estimated level of inflation. The ultimate rehabilitation
costs are uncertain, and cost estimates can vary in response to many factors, including estimates of the
extent and costs of rehabilitation activities, technological changes, regulatory changes, cost increases
as compared to the inflation rates, and changes in discount rates. The expected timing of expenditure
can also change, for example in response to changes in reserves or to production rates. These
uncertainties may result in future actual expenditure differing from the amounts currently provided.
Therefore, significant estimates and assumptions are made in determining the provision for mine
rehabilitation. As a result, there could be significant adjustments to the provisions established which
would affect future financial result. The provision at reporting date represents management’s best
estimate of the present value of the future rehabilitation costs required.
4. SEGMENT REPORTING
Identification of reportable segment
The Group identifies its operating segments based on the internal reports that are reviewed and used
by the Board of Directors (chief operating decision maker) in assessing performance and determining
the allocation of resources.
The Group operates primarily in small scale mining and mineral exploration in Western Australia and
Thailand. The Group considers that it operates in two geographical segments but within the same
operating segment. The decision to allocate resources to individual projects is predominantly based
on available cash reserves, technical data and the expectation of future metal prices.
The financial information presented in the statement of profit and loss and other comprehensive
income and statement of financial position is the same as that presented to the chief operating
decision maker. For financial reporting purposes, the Australian and the Thai segments are presented
separately.
Basis of accounting for purposes of reporting by operating segments
Accounting policies adopted
Unless stated otherwise, all amounts reported to the Board of Directors as the chief operating decision
maker is in accordance with accounting policies that are consistent to those adopted in the annual
financial statements of the Group.
- 70 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
4.
SEGMENT REPORTING (Continued)
Information about reportable segments
Information relating to each reportable segment is shown below.
2022
External revenues from continued operations
External revenues from discontinued operations
Segment revenue
Reportable Segments
Australia
$
Thailand
$
3,275,060
871,235
4,146,295
Total
$
3,275,060
871,235
4,146,295
-
-
-
Loss from continued operations
Loss from discontinued operations
Segment loss before tax
(3,153,701)
(2,389,257)
(5,542,958)
(485,067)
-
(485,067)
(3,638,768)
(2,389,257)
(6,028,025)
Interest Income
Interest expense
Depreciation expense
Segment assets
Capital expenditure
Segment liabilities
126
(540,148)
(103,379)
370
-
-
496
(540,148)
(103,379)
22,174,226
470,439
22,644,665
33,504
-
33,504
10,093,491
5,914
10,099,405
2021*
External revenues from continued operations
External revenues from discontinued operations
Segment revenue
297,131
8,090,018
8,387,149
-
-
-
297,131
8,090,018
8,387,149
Profit/(loss) from continued operations
Loss from discontinued operations
Segment loss before tax
1,281,214
(10,445,992)
(9,164,778)
(489,935)
-
(489,935)
791,279
(10,445,992)
(9,654,713)
Interest Income
Interest expense
Depreciation expense
Share of profit/(loss) of equity accounted
investees
Segment assets
Capital expenditure
Segment liabilities
223
(553,182)
(146,480)
124
-
-
347
(553,182)
(146,480)
1,051,922
-
1,051,922
27,349,402
483,223
27,832,625
777,056
-
777,056
12,458,606
2,037
12,460,643
*Comparative information has been re-presented due to a discontinued operation. See Note 21.
- 71 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
5. Income and expenses
The loss before income tax includes the following revenues
whose disclosure is relevant in explaining the performance of
the entity:
(a) Other income
R&D tax incentive refund
Other income (i)
2022
$
2021
$
86,079
3,188,981
3,275,060
204,868
92,263
297,131
(i) During the year, the Company received a non-refundable deposit of $3,000,000 in relations
to the Red October and Devon Sale and Purchase Agreement (SPA). Refer note 21 for further
details.
(b) Finance income
Interest earned
496
347
(c) Expenses included in the statement of comprehensive
income
Depreciation and amortisation expenses
Mine property depreciation
Mine capital development amortisation
Property plant and equipment depreciation
Right-of-use assets depreciation
Disclosure in Statement of Profit and Loss
Continuing operations:
Depreciation expense
Discontinued operations:
Amortisation and depreciation
(d) Other expenses
(i) Employee benefits expense
Salaries and wages (including bonus)
Superannuation expenses
Share based payments
Total employee benefits expense
(ii) Administration and other expenses
Operating lease rentals
Administration expenses
- 72 -
7,873
184,821
622,182
103,261
918,137
103,379
103,379
814,758
814,758
918,137
1,201,128
72,373
5,329
1,278,830
6,371
1,663,912
1,670,283
369,695
4,554,753
760,105
135,367
5,819,920
146,480
146,480
5,673,440
5,673,440
5,819,920
1,352,460
81,194
111,956
1,545,610
6,371
1,192,703
1,199,074
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
2022
$
2021
$
-
-
-
-
-
-
6. Income taxes
Income tax expense/(benefit) comprises:
Current tax expense/(income)
Deferred tax expense/(income)
Income tax recognised in profit or loss
The prima facie income tax expense/(income) on the pre-tax
accounting profit/(loss) from operations reconciles to the
income tax expense/(income) in the financial statements as
follows:
Loss for the year
(6,028,025)
(9,654,713)
Income tax expense calculated at 25% (2021: 26%)
(1,507,007)
(2,510,225)
Non-deductible expenses
Non-assessable income
Effect of temporary differences not recognised in current year
Effect of change in income tax rate
Effect of temporary differences that would be recognised
directly in equity
Adjustments recognised in the current year in relation to the
current tax of previous years
Income tax expense
6,574
(21,520)
1,580,278
-
31,145
(53,266)
2,514,240
100,570
(56,244)
(221,145)
(2,081)
-
138,681
-
The tax rate used in the above reconciliation is the corporate tax rate of 25% (2021: 26%) payable by
Australian corporate entities on taxable profits under Australian tax law.
Unrecognised deferred tax assets/(liabilities)
The following deferred tax assets have not been brought to
account:
Tax losses - revenue
Investments
Temporary differences - exploration
Section 40-880 expenses
Other temporary differences
2022
$
2021
$
11,262,170
(2,028,174)
136,402
345,736
9,716,134
10,166,353
-
(2,601,206)
155,232
415,477
8,135,856
The ability of the Group to utilise unrecognised tax losses will depend on whether the Group meets
the statutory requirements for utilising tax losses as and when it generates taxable profit.
- 73 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
7. Trade and other receivables
Current
Amounts receivable from Australian Taxation Authorities
Other receivables
Non-current
Other receivables (i)
2022
$
2021
$
49,476
125,993
175,469
153,281
84,315
237,596
200,000
200,000
200,000
200,000
(i) On 2 February 2021, the Company and Bulletin Resources Limited (Bulletin) have, through their
80:20 joint venture, sold a 400m wide strip (1.35km2) of the 576km2 Lake Rebecca gold project to
Apollo Consolidated Limited (Apollo) for a total consideration of approximately $5.6M. The
Company’s share of the consideration amount to $1.2M. The remaining receivable of $200,000 is
expected to be settled in 2025.
8. Other assets
Current
Prepayments
Non-current
Deposits held (i)
2022
$
2021
$
172,935
172,935
287,363
287,363
253,900
253,900
287,363
287,363
(i) The Company has cash deposits held with the Thailand government with respect to a number of
tenement applications in Thailand. Prior to changes in the Thailand Mineral Act (2017), should the
applications not be successful the deposits will be refunded in full.
2022
$
2021
$
9. Inventories
Current
Ore stocks
Stores, spares and fuel at cost
Total inventories at lower of cost and net realisable value
-
-
-
2,396
77,585
79,981
- 74 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
10. Exploration and evaluation assets
Exploration expenditure capitalised at cost
-exploration and evaluation phase
Movements in carrying amounts
Exploration and evaluation phase
Balance at beginning of year
Acquisition of tenements
Disposal of tenements (i) & (ii)
Exploration and evaluation expenditure incurred
Expenditure written off/impaired
Transfer to assets held for sale (note 21)
Transferred from/(to) mine property and development
Balance at end of year
2022
$
2021
$
10,627,811
10,627,811
21,437,966
21,437,966
21,437,966
45,600
(3,068,729)
1,994,430
(1,028,175)
(8,753,281)
-
10,627,811
18,537,147
-
(15,757)
4,031,294
-
-
(1,114,718)
21,437,966
(i) On 2 February 2021, the Company and Bulletin Resources Limited (Bulletin) have through their
80:20 joint venture sold a 400m wide strip (1.35km2) of the 576km2 Lake Rebecca gold project to
Apollo Consolidated Limited (Apollo). Refer to note 7 for further details. A gain on the sale of
$1,191,750 was recognised in the statement of profit or loss and other comprehensive income.
(ii) On 30 June 2022, IGO Newsearch Pty Ltd (“IGO) acquired a 70% interest in the Symons Hill project
as well as the Company’s other Fraser Range tenements for a cash consideration of $600,000 and
then free carry the Company for all exploration to completion of feasibility studies or decision to
mine whichever occurs earlier. A loss on the sale of $2,209,192 was recognised in the statement
of profit or loss and other comprehensive income.
The ultimate recoupment of costs carried forward for exploration and evaluation phase is dependent
on the successful development and commercial exploitation or sale of the respective areas.
11. Mine property and development
Mine properties
Balance at beginning of year
Depreciation expense for the period
Balance at end of year
Mine capital development
Balance at beginning of year
Transferred from/(to) exploration and evaluation assets
Additions
Amortisation expense for the period
Balance at end of year
2022
$
2021
$
7,873
(7,873)
-
377,568
(369,695)
7,873
184,821
-
-
(184,821)
-
1,291,435
1,114,718
2,333,421
(4,554,753)
184,821
Total mine properties and development
-
192,694
- 75 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
12. Property, plant and equipment
Plant and equipment at cost
Accumulated depreciation
Total property, plant and equipment
Movements in carrying amounts
Consolidated
Balance 30 June 2020
Additions
Depreciation expense
Balance 30 June 2021
Additions
Disposals
Transfer to asset held for sale (note 21)
Depreciation expense
Balance 30 June 2022
2022
$
2021
$
1,924,483
(1,385,919)
538,564
538,564
Plant and
Equipment
$
1,901,017
777,056
(760,105)
1,917,968
33,504
(535,743)
(254,983)
(622,182)
538,564
3,740,265
(1,822,297)
1,917,968
1,917,968
Total
$
1,901,017
777,056
(760,105)
1,917,968
33,504
(535,744)
(254,983)
(622,181)
538,564
13. Right-of-use-assets & lease liabilities
The Group has lease contracts for various items of equipment, motor vehicles and office premises
used in its operations. Leases generally have lease terms between two and four years.
Set out below are the carrying amounts of right-of-use assets recognised and the movements during
the period:
Right-of-use-assets
Carrying Amount
Cost
Accumulated depreciation
As at 30 June 2022
Reconciliation
As at 1 July 2021
Additions
Disposals
Depreciation expense
As at 30 June 2022
Motor
Vehicles
$
156,070
(149,481)
6,589
Motor
Vehicles
$
75,922
-
(30,794)
(38,539)
6,589
Total
$
423,163
(361,387)
61,776
Total
$
195,831
-
(30,794)
(103,261)
61,776
Equipment
$
44,823
(18,676)
26,147
Premises
$
222,270
(193,230)
29,040
Premises
$
78,821
-
-
(49,781)
29,040
Equipment
$
41,088
-
-
(14,941)
26,147
- 76 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
13. Right-of-use-assets & lease liabilities (continued)
Lease liabilities
Set out below are the carrying amounts of lease liabilities.
Carrying Value 2022
Current liabilities
Non-current liabilities
As at 30 June 2022
Carrying Value 2021
Current liabilities
Non-current liabilities
As at 30 June 2021
Equipment
$
15,083
15,850
30,933
Equipment
$
15,941
29,478
45,419
Premises
$
31,246
-
31,246
Premises
$
49,240
31,247
80,487
Motor
Vehicles
$
20,031
-
20,031
Motor
Vehicles
$
33,805
26,709
60,514
Total
$
66,360
15,850
82,210
Total
$
98,986
87,434
186,420
A maturity analysis of future minimum lease payments is presented in Note 26.
Movement for the period
As at 1 July 2021
Repayments
Interest
As at 30 June 2022
Equipment
$
45,419
(15,874)
1,388
30,933
Premises
$
80,487
(53,561)
4,320
31,246
Motor
Vehicles
$
60,514
(43,349)
2,866
20,031
Total
$
186,420
(112,784)
8,574
82,210
14.
Trade and other payables
Unsecured liabilities
Trade payables
Sundry creditors and accrued expenses
2022
$
2021
$
1,651,509
1,042,900
2,694,409
3,151,696
1,656,133
4,807,829
- 77 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
15.
Borrowings
Current
Secured liabilities
- Loan (i)
Unsecured liabilities
- Insurance premium finance
Non-current
Secured liabilities
- Loan (i)
(i) Reconciliation of loan
Balance at beginning of year
Interest capitalised
Balance at end of year
2022
$
2021
$
3,998,172
120,160
4,118,332
-
224,732
224,732
-
-
3,984,116
3,984,116
2022
$
3,984,116
14,056
3,998,172
2021
$
3,973,264
10,852
3,984,116
On 8 August 2017, Matsa entered into two loan agreements with two separate parties for a $4M
facility with the funds being predominantly used as a working capital facility to ensure smooth
operations of the trial mine at the Fortitude Gold Project and to conduct further exploration at
Lake Carey. The repayment date was initially 31 July 2018 but was extended by mutual consent
on 12 April 2018 to 31 July 2019. On 5 May 2019 a further $1M was borrowed and the repayment
date extended to 31 July 2020. On 29 May 2020, the repayment date was extended to 31 July
2022. On 28 September 2022, the repayment date was extended to 30 November 2022. The
Company is expecting to reach a new loan agreement with the lending parties before 30
November 2022. On this basis the loans have been classified as current.
The key terms of the finance facility are as follows:
Principal Amount: $5,000,000 ($4M drawn down)
Interest Rate:
Term:
Security:
12% per annum paid monthly in arrears (penalty rate of 18% if Matsa is in
default)
Repayable by 30 November 2022
The loan facility is secured by a mortgage over the Fortitude gold project and
the mining equipment and motor vehicles of Red October gold project.
At the time of the original loan Matsa agreed to issue a total of 1M options in the Company, split
equally amongst the parties, with an exercise price of $0.20 each with a two year life from the date
of issue. The principal loan balance of $4M has been offset by the value of the options issued. At
the end of the year the carrying value of the loan was $3,998,172. In return for the loan extension,
Matsa agreed to pay each of the lenders an annual Facility Fee of 150,000 fully paid ordinary shares
for every year or part year that the loans remain outstanding. There is one Facility Fee of 150,000
shares that was issued on 4 June 2021.
- 78 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
16. Provisions
Current
Provision for annual leave
Non-current
Provision for long service leave
Provision for mine restoration
Movement in long service leave provision
Opening balance 1 July
(Decrease)/increase in provision
Closing balance 30 June
2022
$
2021
$
295,290
295,290
201,009
201,915
402,924
244,706
(43,697)
201,009
376,222
376,222
244,706
2,636,618
2,881,324
223,737
20,969
244,706
Movement in provision for mine restoration
Opening balance 1 July
Transfer to liabilities associated with assets held for sale (note
21)
Increase in provision
Closing balance 30 June
2,636,618
2,427,082
(2,506,240)
71,537
201,915
-
209,536
2,636,618
17.
Issued capital
2022
No.
2021
No.
2022
$
2021
$
Fully paid ordinary shares
358,954,620
315,962,745
63,892,578
60,696,604
Ordinary shares
At the beginning of reporting period
Share placements
Shares issued as a facility fee
Shares issued in lieu of payment
Exercise of options
Transaction costs
At reporting date
315,962,745
42,191,875
-
800,000
-
-
358,954,620
227,067,368
86,694,005
150,000
2,050,000
1,372
-
315,962,745
60,696,604
3,375,350
-
45,600
-
(224,976)
63,892,578
51,348,741
10,021,074
12,000
164,000
233
(849,444)
60,696,604
Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in
proportion to the number of shares held. At shareholders meetings each ordinary share is entitled to
one vote when a poll is called, otherwise each shareholder has one vote on a show of hands.
- 79 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
17.
Issued Capital (continued)
Options
The movement of the options on issue during the financial year is set out below:
Exercise
Price
$0.17
$0.17
$0.35
$0.175
$0.21
$0.35
$0.25
$0.30
$0.17
$0.17
Expiry Date
30/11/2021
30/11/2021
30/11/2022
30/11/2022
31/10/2023
30/11/2022
30/11/2022
30/11/2022
30/4/2023
30/11/2023
Balance at
beginning of year
No.
5,000,000
2,300,000
1,000,000
5,750,000
3,250,000
2,000,000
2,000,000
44,079,341
28,124,324
-
93,503,665
18. Reserves
Equity settled transaction
Equity settled transaction reserve
Balance at beginning of financial year
Share based payment
Balance at end of financial year
Issued
No.
Exercised
No.
Lapsed
No.
Balance at
end of
year
No.
-
-
-
-
-
-
-
-
-
1,000,000
1,000,000
-
-
-
-
-
-
-
-
-
-
-
-
(5,000,000)
-
(2,300,000)
1,000,000
-
5,750,000
-
3,250,000
-
2,000,000
-
2,000,000
-
- 44,079,341
- 28,124,324
1,000,000
-
(7,300,000) 87,203,665
2022
$
2021
$
10,028,515
10,028,515
10,023,186
10,023,186
10,023,186
5,329
10,028,515
9,752,588
270,598
10,023,186
The equity settled transaction reserve records share-based payment transactions.
19. Accumulated losses
Accumulated losses at beginning of financial year
Loss for the year
Accumulated losses at end of financial year
2022
$
2021
$
55,426,026
6,028,111
61,454,137
45,770,822
9,655,204
55,426,026
- 80 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
20.
(Loss)/earnings per share
The (loss)/earnings and weighted average number of ordinary
shares used in the calculation of loss per share are as follows:
2022
$
2021
$
Loss
Basic/diluted loss per share (cents per share)
(6,028,025)
(1.70)
(9,655,204)
(3.58)
(Loss)/profit from continued operations
Basic/diluted (loss)/earnings per share (cents per share)
(3,638,768)
(1.02)
791,279
0.29
Weighted average number of ordinary shares
No.
355,009,331
No.
269,926,042
Diluted loss per share
Diluted loss per share has not been calculated as the Company’s potential ordinary shares are not
considered dilutive and do not increase loss per share.
21. Assets classified as held for sale and discontinued operations
On 20 December 2021, the Company executed a binding agreement to sell the Red October and Devon
gold projects to Linden Gold Pty Ltd (LGL) for a consideration of $20M.
The $20M consideration under the terms of the Sale and Purchase Agreement (SPA) consists of the
following:
1. A deposit of $1M payable on the execution of the SPA. The Company has received this amount
from LGL. LGL has until 28 February 2022 to obtain a conditional approval from the ASX for
admission to the ASX.
2. The Company has further received deposits totalling $2M to have the conditional approval date
extended to no later than 30 June 2022.
3. On completion occurring in conjunction with the successful listing of LGL on the ASX, the Company
will receive:
(a) A cash payment of $5M reduced by any amounts paid under 2 above; and
(b) $9M either in cash or LGL shares (the full $9M in shares is expected to equate to an
approximately 19.6% interest in LGL at the time of LGL listing on the ASX) at LGL’s election,
subject to a maximum of $4.5M able to be paid by way of cash.
4. A deferred payment of $5M consisting of:
(a) A deferred cash payment of $2.5M within 24 months of LGL receiving conditional approval
from the ASX for admission to the ASX; and
(b) A net profit payment of $2.5M payable quarterly from mining operations at the Devon
gold project.
- 81 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
21. Assets classified as held for sale and discontinued operations (Continued)
On 1 July 2022, LGL has provided a formal notice to the Company advising that as a result of events
beyond the control of LGL, it has not received conditional approval for admission to the ASX and
consequently, pursuant to the SPA, LGL claimed to be entitled to an automatic extension for a further
period of up to 90 days. At this point, LGL may elect to complete the sale by paying the balance of the
payments described in 3(a) and (b) $12M in cash to the Company.
At the balance sheet date, the projects were classified as assets held for sale in accordance with AASB
5 Non-current Assets Held for Sale and Discontinued Operations. The fair value of the Red October and
Devon gold projects at 30 June 2022 have been determined based on comparable market
transactions. The fair value methodology adopted at 30 June 2022 is categorised as Level 3 in the fair
value hierarchy.
In accordance with Australian Accounting Standards, immediately before the classification of the Red
October and Devon gold projects as assets held for sale, the carrying value of the projects were
assessed that they were being carried at the lower of their carrying value and fair value less cost to
dispose (FVLCD).
Any profit or loss arising from the sale of a discontinued operations or its measurement to fair value
less costs to sell is presented as part of a single line item, profit or loss from discontinued operations.
As at 30 June 2022, the carrying value of assets held for sale and liabilities associated with assets held
for sale in the statement of financial position are detailed below:
Assets held for sale:
Exploration and evaluation assets
Plant and equipment
Total
$8,753,281
$254,983
$9,008,264
Liabilities associated with assets held for sale:
Provision for mine restoration (note 16)
Total
$2,506,240
$2,506,240
- 82 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
21. Assets classified as held for sale and discontinued operations (Continued)
For the period ended 30 June 2022, the results of discontinued operations in the statement of profit
or loss are detailed below:
Revenue from customers
Other income
Mining operations
Amortisation and depreciation
Care and maintenance
Other expenses
Loss on sale of fixed assets
Finance costs
Loss from discontinued operations
2022
$
2021
$
230,235
641,000
(444,537)
(814,758)
(1,675,747)
(932)
(252,452)
(72,066)
(2,389,257)
8,055,013
35,005
(12,640,909)
(5,673,440)
-
(11,440)
-
(210,221)
(10,445,992)
The cash flow from discontinued operations included in the consolidated statement of cash flows
are as follow:
Net cash used in operating activities
Net cash used in investing activities
Net cash used in financing activities
Net cash flows used in discontinued operations
22. Commitments and contingencies
2022
$
2021
$
(3,031,666)
(80,473)
(529)
(3,112,668)
(2,560,498)
(4,848,420)
-
(7,408,918)
Exploration and expenditure commitments
In order to maintain the mineral tenements in which the Company and other parties are involved, the
consolidated entity is committed to fulfil the minimum annual expenditure conditions under which
the tenements are granted. The minimum estimated expenditure commitment requirement for
granted tenements for the next year is $2,439,581 (2021: $2,424,824). This amount has not been
provided for in the financial report. These obligations are capable of being varied from time to time.
Exploration expenditure commitments beyond twelve months cannot be reliably determined.
Mine development and operating commitments
The mine development and operating costs are determined on a time and cost basis.
Contingencies
There are no contingent assets or contingent liabilities as at 30 June 2022.
- 83 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
23. Subsidiaries
Parent Entity
Matsa Resources Limited
Subsidiary
Matsa Gold Pty Ltd
Killaloe Minerals Pty Ltd
Lennard Shelf Exploration Pty Ltd
Red October Gold Pty Ltd
Australian Strategic and Precious
Metals Investment Pty Ltd
Matsa Resources (Aust) Pty Ltd
Matsa Iron Pty Ltd
Cundeelee Pty Ltd
Matsa (Thailand) Co Ltd
PVK Mining Loei Co Ltd
Khlong Tabaek Co Ltd
Paisali Mining Co Ltd
Siam Copper Resources Co Ltd
Loei Mining Co Ltd
Azure Circle Co Ltd
24. Cash flow information
Country of Incorporation
Percentage Owned (%)
2022
2021
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Thailand
Thailand
Thailand
Thailand
Thailand
Thailand
Thailand
100
100
100
100
100
100
100
100
100
100
95
95
100
100
100
100
100
100
100
100
100
100
100
100
100
95
95
100
100
100
Reconciliation of cash and cash equivalents
Cash and cash equivalents at the end of the financial year as shown in the statement of cash flows is
reconciled to the related items in the statement of financial position as follows:
Cash and cash equivalents
1,572,483
3,029,326
2022
$
2021
$
- 84 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
24. Cash flow information (Continued)
Reconciliation of loss for year to net cash flows from operating activities
2022
$
2021
$
Loss for year
(6,028,025)
(9,654,713)
Non-cash flows in loss from ordinary activities:
Share-based payments
Depreciation
Exploration expenditure written off/impaired
Share of investee (gain)/loss
Net (gain)/loss on sale of financial assets
Net (gain)/loss on disposal of plant and equipment
Net (gain)/loss on sale of investment in associates
Net (gain)/loss on sale of tenements
Interest expense classified as financing cash flow
Amortisation
Shares issued as facility fees
Changes in assets and liabilities:
Increase in receivables
Increase in inventories
(Decrease)/increase in trade creditors and accruals
(Decrease)/increase in provisions
Cash used in operating activities
Reconciliation of liabilities arising from financing activities
5,329
725,442
1,028,175
-
-
192,452
-
2,353,509
526,621
192,695
-
68,828
79,981
(1,883,445)
(53,093)
(2,791,531)
111,956
895,472
-
(1,051,922)
(20,004)
-
(1,674,472)
(1,191,750)
506,829
4,924,448
12,000
1,438,810
498,371
99,126
302,176
(4,803,673)
2022
Opening balance
Cash flows
Non-cash changes
Closing balance
2021
Opening balance
Cash flows
Non-cash changes
Closing balance
Lease
Liabilities
$
186,420
(104,210)
-
82,210
Lease
Liabilities
$
152,523
(114,972)
148,869
186,420
Borrowings
Total
$
4,208,848
(224,868)
134,352
4,118,332
$
4,395,088
(329,078)
134,352
4,200,542
Borrowings
Total
$
3,973,264
-
235,584
4,208,848
$
4,125,787
(114,972)
384,453
4,395,268
- 85 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
25. Parent entity disclosures
As at, and throughout, the financial year ended 30 June 2022, the parent company of the Group was
Matsa Resources Limited.
Company
2022
$
2021
$
(5,740,470)
-
(5,740,470)
(13,028,584)
-
(13,028,584)
1,387,360
9,483,444
5,659,824
5,860,832
2,782,197
12,585,878
2,054,275
6,424,097
63,892,577
10,028,515
(70,298,481)
60,696,604
10,023,186
(64,558,009)
3,622,611
6,161,781
Result of the parent entity
Loss for the year
Other comprehensive gain/(loss)
Total comprehensive loss for the year
Financial position of parent entity at year end
Current assets
Total assets
Current liabilities
Total liabilities
Total equity of the parent entity comprising of:
Share capital
Reserves
Accumulated losses
Total equity
26. Financial instruments
Financial risk management
Overview
This note presents information about the Group’s exposure to credit, liquidity and market risks, their
objectives, policies and processes for measuring and managing risk, and the management of capital.
The Group does not use any form of derivatives as it is not at a level of exposure that requires the use
of derivatives to hedge its exposure. Exposure limits are reviewed by management on a continuous
basis. The Group does not enter into or trade financial instruments, including derivative financial
instruments, for speculative purposes.
The Board of Directors has overall responsibility for the establishment and oversight of the risk
management framework. Management monitors and manages the financial risks relating to the
operations of the group through regular reviews of the risks.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Group’s cash
balances at bank, deposits with statutory authorities.
- 86 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
26.
Financial instruments (Continued)
Presently, the Group undertakes exploration and evaluation activities exclusively in Australia and
Thailand. At the reporting date there were no significant concentrations of credit risk with the
exception of its cash balances at bank.
Cash and cash equivalents
The Group limits its exposure to credit risk by only investing in liquid securities and only with
counterparties that have an acceptable credit rating of no less than AA rating.
Trade and other receivables
The Group manages its exposure to credit risk by extensive due diligence on the party processing its
gold sales.
Exposure to credit risk
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The
Group’s maximum exposure to credit risk at the reporting date was:
Trade and other receivables
Cash and cash equivalents
Deposits held
Consolidated Carrying amount
2022
$
175,469
1,572,483
287,363
2021
$
84,315
3,029,326
287,363
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.
The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Group’s reputation.
The Group manages liquidity risk by maintaining adequate cash reserves from funds raised in the
market and by continuously monitoring forecast and actual cash flows. The Group also has
investments in listed shares that could be sold to raise cash.
The Company has leased assets financed by way of finance leases and has taken out a premium
funding facility over their insurance requirements.
The following are the contractual maturities of financial liabilities, including estimated interest
payments and excluding the impact of netting agreements:
30 June 2022
Weighted
average
interest
rate
%
Carrying
amount
Contractual
cash flows
6 mths or
less
6-12
mths
1-2
years
2-5 years
$
$
$
$
$
$
Trade and other
payables
Lease liabilities
Insurance
premium finance
Loan
-
6.78
3.83
12
2,694,409
82,210
120,160
3,998,172
6,894,951
2,694,409 2,694,409
-
47,414 18,946 15,850
-
82,210
120,160
-
120,160
3,998,172 3,998,172
-
6,894,951 6,860,155 18,946 15,850
-
-
- 87 -
-
-
-
-
-
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
26.
Financial instruments (Continued)
30 June 2021
Weighted
average
interest
rate
%
Carrying
amount
Contractual
cash flows
6 mths or
less
6-12
mths
1-2 years
2-5
years
$
$
$
$
$
$
Trade and
other payables
Lease liabilities
Insurance
premium
finance
Loan
-
6.78
4,807,829
186,420
4,807,829 4,807,829
48,286
186,420
-
50,700
-
74,547
-
12,887
4.31
12
224,732
3,984,116
9,203,097
-
157,312
224,732
3,984,116
- 3,984,116
-
9,203,097 5,013,427 118,120 4,058,663
67,420
-
-
12,887
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and
equity prices will affect the Group’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within
acceptable parameters, while optimising the return.
Currency risk
The Group is exposed to currency risk on investments and purchases that are denominated in a
currency (Thai baht) other than the respective functional currencies of Group entities, which is
primarily the Australian dollar.
As at the statement of financial position date the Group holds the following financial assets or
liabilities which are exposed to foreign currency risk.
Other current assets
Cash and cash equivalents
Sensitivity analysis
Carrying amount
2022
$
103,941
80,376
2021
$
95,767
101,652
The Group is exposed to fluctuations in foreign currencies arising from the acquisition of services from
time to time in currencies other than the Group’s functional currency. A change of 10% in the foreign
currency exchange rate at 30 June 2022 would have increased equity by $16,756 (2021: $17,947), an
equal change in the opposite direction would have decreased equity by an equal but opposite amount.
Interest rate risk
The Group is exposed to interest rate risk (primarily on its cash and cash equivalents), which is the risk
that a financial instrument’s value will fluctuate as a result of changes in the market interest rates on
interest-bearing financial instruments. The Group does not use derivatives to mitigate these
exposures. The Group is not exposed to cash flow volatility from interest rate changes on borrowings
as the finance leases carry fixed rates of interest.
The Group adopts a policy of ensuring that as far as possible it maintains excess cash and cash
equivalents in short terms deposit at interest rates maturing over 90 day rolling periods or less.
- 88 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
26.
Financial instruments (Continued)
Profile
At the reporting date the interest rate profile of the Group’s and the Company’s interest-bearing
financial instruments was:
Fixed rate instruments
Cash and cash equivalents
Lease liabilities
Loan
Variable rate instruments
Cash and cash equivalents
Cash backed performance bonds
Carrying amount
2022
$
2021
$
50,000
82,210
4,118,332
4,250,542
1,522,483
-
1,522,483
50,000
186,420
3,984,116
4,220,536
2,979,326
-
2,979,326
Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit
or loss, therefore a change in interest rates at the reporting date would not affect profit or loss.
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased (decreased)
equity and profit or loss by the amounts shown below. This analysis assumes that all other variables,
in particular foreign currency rates, remain constant. The analysis is performed on the same basis as
2021.
Profit or loss
Equity
100bp
increase
$
100bp
decrease
$
100bp
increase
$
100bp
decrease
$
15,225
(15,225)
15,225
(15,225)
29,793
(29,793)
29,793
(29,793)
30 June 2022
Variable rate instruments
30 June 2021
Variable rate instruments
Fair values
Fair values versus carrying amounts
The carrying amounts of financial assets and liabilities approximate fair value. The basis for
determining fair values versus carrying value of financial instruments not carried at fair value is
described below.
(i)
Other receivables, trade and other payables:
Other receivables, trade and other payables are short term in nature. As a result, the carrying
amount of these instruments is considered to approximate its fair value.
Deposits held on tenement applications:
The deposits held with Thai authorities are fully recoverable should the applications not be
granted. As a result the carrying amount is considered to approximate its fair value.
(ii)
- 89 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
26.
Financial instruments (Continued)
Capital Management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a
going concern, so as to maintain a strong capital base sufficient to maintain future exploration and
development of its projects. In order to maintain or adjust the capital structure, the Group may return
capital to shareholders, issue new shares or sell assets to reduce debt. The Group’s focus has been to
raise sufficient funds through equity to fund exploration and evaluation activities and mine
development. The Group monitors also has a debt facility which is not repayable until 31 July 2022.
The Group encourages employees to be shareholders through the Long Term Incentive Plan and the
Executive Share Option Plan.
There were no changes in the Group’s approach to capital management during the year. Risk
management policies and procedures are established with regular monitoring and reporting.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital
requirements.
27.
Share-based payments
Shared based payments expense
Directors and Executives
Employee Share Option Plan
Consultants
2022
$
2021
$
5,329
-
-
5,329
24,114
77,508
10,334
111,956
As at 30 June 2022, options were issued to a Director. These options valued at $5,329 was recognised
directly in the consolidated statement of profit and loss as share-based payment expense.
As at 30 June 2021, options were issued to consultants as part of the Company’s capital raising. These
options valued at $158,642 was recognised directly in equity as capital raising transaction costs.
Employee Share Option Plan
The Group has an Employee Share Option Plan (ESOP) for the granting of options to staff members,
directors and consultants. A new ESOP was approved by shareholders on 28 November 2019 and
adopted. Options issued under the ESOP vest on the grant date.
Other relevant terms and conditions applicable to options granted under the ESOP include:
(a)
(b)
Options issued pursuant to the plan will generally be issued free of charge.
The exercise price of the options shall be as the Directors in their absolute discretion
determine, provided the exercise price shall not be less than the weighted average of the last
sale price of the Company’s shares on ASX at the close of business on each of the 5 business
days immediately preceding the date on which the Directors resolve to grant the options.
(c)
Subject to the above, the options may be exercised at any time prior to the expiration date
from the issue date.
- 90 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
27.
Share-based payments (Continued)
(d)
(e)
(f)
(g)
(a)
The Directors may limit the total number of options which may be exercised under the plan in
any year.
Options with a common expiry date may have a different exercise price and exercise date.
Options shall lapse upon the earlier of:
(i)
(ii)
The expiry of the exercise period; and
The expiry of three months after the option holder ceases to be an employee by
reason of dismissal, resignation or termination of employment, office or services for
any reason, except the Directors may resolve that the options shall lapse on other
terms they consider appropriate.
Upon exercise the options will be settled in ordinary shares of Matsa Resources Limited.
Summary of options issued under the Employee Share Option Plan
The following table summarises the number (No.) and the weighted average exercise price (WAEP) of,
and movements in, share options issued during the year to employees other than to key management
personnel which have been disclosed in the Remuneration Report.
2022
No.
2022
WAEP
$
2021
No.
2021
WAEP
$
Outstanding at the beginning
of the year
Granted
Exercised
Expired
Outstanding at year-end
Exercisable at year-end
4,100,000
-
-
(1,550,000)
2,550,000
2,550,000
0.19
0.17
0.21
0.21
2,850,000
3,400,000
-
(2,150,000)
4,100,000
4,100,000
0.17
0.21
-
0.19
0.19
0.19
The outstanding balance as at 30 June 2022 is represented by the following options over ordinary
shares, exercisable upon meeting the above terms and conditions:
2,550,000 options with an exercise price of $0.21 each and with an expiry date of 30 October 2023.
All have vested and are exercisable at balance date
Directors and Executives Options
In addition to the ESOP, the Company has issued options to Directors and Executives from time to
time. The terms and conditions of those options vary between option holders. There were 1,000,000
(2021: 700,000) options issued to Directors or Executives during the financial year.
Options issued to the Executive Chairman and the Executive Director and Executives vested
immediately.
- 91 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
27.
Share-based payments (Continued)
Other relevant terms and conditions applicable to options granted as above include:
any Directors or Executives vested options that are unexercised by the anniversary of their grant
date will expire or, if they resigned, in accordance with their specific terms and conditions; and
upon exercise, these options will be settled in ordinary shares of Matsa Resources Limited.
(b) Summary of options issued to Directors and Executives
(i)
The following table illustrates the number (No.) and weighted average exercise prices
(WAEP) of share options issued.
Outstanding at 1 July
Granted during the year
Expired during the year
Outstanding at 30 June
Exercisable at 30 June
2022
No.
12,200,000
1,000,000
(5,750,000)
7,450,000
7,450,000
2022
WAEP
$
0.174
0.17
0.17
0.178
0.178
2021
No.
11,500,000
700,000
-
12,200,000
12,200,000
2021
WAEP
$
0.172
0.21
-
0.174
0.174
There were 1,000,000 (2021: 700,000) options issued during the year.
Directors
During the year ended 30 June 2022, 1,000,000 share options with an exercise price of $0.17 each,
were issued to a director. The options vest immediately at the date of grant. The contractual life of
each option is two years and there is no cash settlement of the options.
Executives
No options were issued to executives during the year ended 30 June 2022.
In 2021, 700,000 options over ordinary shares with an exercise price of $0.21 each exercisable upon
meeting the relevant conditions and until 30 October 2023 were issued an executive.
(c) Valuation models of options and performance rights issued to Directors and Executives
The fair value of the options is estimated at the date of grant using a Black & Scholes model. The
following table gives the assumptions made in determining the fair value of the options granted in the
year.
Dividend yield (%)
Expected volatility (%)
Risk-free interest rate (%)
Expected life of options (years)
Option exercise price ($)
Share price at grant date ($)
Fair value at grant date ($)
2022
2021
Directors
-
71.71
0.54
2.0
0.17
0.05
0.005
Executives
-
-
-
-
-
-
-
- 92 -
Directors
-
-
-
-
-
-
-
Executives
-
67.78
0.13
2.92
0.21
0.12
0.03
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
27.
Share-based payments (Continued)
The expected life of the options is based on historical data and is not necessarily indicative of exercise
patterns that may occur.
The expected volatility reflects the assumption that the historical volatility is indicative of future
trends, which may also not necessarily be the actual outcome.
Employee Expenses
Share options granted in 2022
- equity settled
Share options granted in 2021
- equity settled
Total expense recognised as employee costs
28. Key management personnel
Consolidated
2022
$
2021
$
-
-
-
-
111,956
111,956
Details of key management personnel
The directors and other members of key management personnel of the Group during the financial
year were:
Name
Position
Directors
Paul Poli
Frank Sibbel
Pascal Blampain
Andrew Chapman Director and Company Secretary
Executive Chairman
Non-Executive Director
Executive Director
Executives
David Fielding
Group Exploration Manager
Key management personnel remuneration has been included in the Remuneration Report section of
the Directors’ Report on pages 39 to 47. These transferred disclosures have been audited.
Compensation of Key Management Personnel
Short-term employment benefits
Post-employment benefits
Termination benefits
Share-based payments
2022
$
1,087,189
89,726
-
5,329
2021
$
945,510
70,871
-
24,114
1,182,244
1,040,495
The compensation disclosed above represents an allocation of the key management personnel’s
estimated compensation from the Group in relation to their services rendered to the Company.
Loans to Key Management Personnel
There were no loans to key management personnel during the current or previous financial year.
- 93 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
28. Key management personnel (Continued)
Other transactions and balances with Key Management Personnel
(a) P Poli is a Director of Bulletin Resources Limited. The Consolidated Entity has an agreement
with Bulletin to provide accounting, technical and administrative services on an arms-length
basis. In the current year $145,140 has been charged to Bulletin for these services (2021:
$59,811).
At 30 June 2022 there was an outstanding balance of nil (2021: $4,400) for Bulletin.
(b) P Poli is a director and the only shareholder of Ultim8 Minesite Security Pty Ltd (‘Ultim8’).
During the year, the Consolidated Entity sold two vehicles to Ultim8 for $22,727 (2021: nil).
At 30 June 2022 there was an outstanding balance of nil (2021: nil) receivable from Ultim8.
(c) P Poli is a director and controlling shareholder of West-Sure Group Pty Ltd which the
Consolidated Entity sub-lets storage space from. In the current year $6,371 has been charged
to the Consolidated Entity for this service (2021: $6,371).
At 30 June 2022, there was an outstanding balance of $1,752 (2021: $1,752) payable to West-
Sure.
(d) P Poli is a director and controlling shareholder of WA Fleet Systems Pty Ltd which provided
the Consolidated Entity with hire car services from time to time. In the current year $1,250
has been charged to the Consolidated Entity for this service (2021: $23,636).
At 30 June 2022 there was an outstanding balance of nil (2021: $8,250) payable to WA Fleet
Systems.
Individual directors and executives compensation disclosure
Information regarding individual directors and executives compensation and some equity instruments
disclosures as permitted by Corporations Regulation 2M.3.03 is provided in the remuneration report
section of the Directors’ report.
No director has entered into a material contract with the Company or the Group since the end of the
previous financial year and there were no material contracts involving directors’ interests existing at
year-end.
29. Related party transactions
Subsidiaries
Interests in subsidiaries are set out in Note 23.
Key management personnel
Disclosures relating to key management personnel are set out in the Remuneration Report and Note
28.
- 94 -
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2022
30. Remuneration of auditors
The auditor of Matsa Resources Limited is Nexia Perth Audit Services Pty Ltd (Nexia Perth).
Amounts received or due and receivable by Nexia Perth Audit
Services Pty Ltd for an audit or review of the entity and any other
entity in the consolidated group.
Amounts received or due and receivable by related practices of
Nexia Perth Pty Ltd for:
- tax compliance
Consolidated
2022
$
2021
$
65,750
62,500
19,190
84,940
10,400
72,900
31.
Events Subsequent to Balance Date
On 29 August 2022, the Company successfully completed a placement to institutional and
sophisticated investors to raise approximately $1.98M before costs and was heavily oversubscribed.
On 29 September 2022, the Company announced that LGA was not able to settle the purchase of the
Devon and Red October projects via the issue of shares and cash. Under the terms of the SPA, LGA has
10 business days to complete the sale via a cash settlement of $12M. Discussions with LGA for a
resolution to settlement of the sale is currently ongoing. The Directors consider the reclassification of
the Devon and Red October projects as assets held for sale to be appropriate.
The impact of the Coronavirus (COVID-19) pandemic is ongoing and whilst it has had no financial
impact for the Group up to 30 June 2022, it is not practicable to estimate the potential impact, positive
or negative, after the reporting date. The situation is rapidly developing and is dependent on measures
imposed by the Australian Government and other countries, such as maintaining social distancing
requirements, quarantine, travel restrictions and any economic stimulus that may be provided.
No matter or circumstance has arisen subsequent to the reporting date, which has significantly
affected, or may significantly affect the operations of the Group, the result of those operations, or the
state of affairs of the Group in subsequent financial years.
- 95 -
MATSA RESOURCES LIMITED
DIRECTORS’ DECLARATION
In the opinion of the directors of Matsa Resources Limited (the “Company”):
1.
the consolidated financial statements and notes are in accordance with the Corporations Act
2001, including:
(ii) giving a true and fair view of the Consolidated Entity’s financial position as at 30 June
2022 and of its performance, for the financial year ended on that date; and
(a)
(b)
(iii) complying with Australian Accounting Standards and Corporations Regulations 2001;
the financial report also complies with International Financial Reporting Standards as
disclosed in note 2(b);
the remuneration disclosures that are contained in page 39 to 47 of the Remuneration
Report in the Directors’ Report comply with the Corporations Act and Australian
Accounting Standard AASB 124 Related Party Disclosures and
(c)
there are reasonable grounds to believe that the Company will be able to pay its debts as
and when they become due and payable.
2.
The directors have been given the declarations required by Section 295A of the Corporations
Act 2001 from the chief executive officer and chief financial officer for the financial year ended
30 June 2022.
Signed in accordance with a resolution of the directors;
Paul Poli
Executive Chairman
Perth, 29 September 2022
- 96 -
Independent Auditor’s Report to the Members of Matsa Resources Limited Report on the Audit of the Financial Report Opinion We have audited the Annual financial report of Matsa Resources Limited (the Company) and its subsidiaries (the Group), which comprises the Consolidated Statement of Financial Position as at 30 June 2022, the Consolidated Statement of Profit or Loss, Consolidated Statement of 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 2022 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 confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Material Uncertainty in relation to Going Concern Without modifying our opinion, we draw attention to Note 2 (e) to the Financial Report, which indicates that the Group will require further funding in the next twelve months from the date of this report to fund its planned exploration and administration expenditure. These conditions, along with other matters as set forth in Note 2 (e), indicate the existence of a material uncertainty that may cast significant doubt about the Group’s ability to continue as a going concern and therefore the Group may be unable to realise its assets and discharge its liabilities in the normal course of business. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material Uncertainty related to Going Concern section, we have determined the matter described below to the be key audit matter to be communicated in our report. Key audit matter How our audit addressed the key audit matter Capitalisation of Exploration and Evaluation assets Refer to Note 10 (Exploration and evaluation assets) As at 30 June 2022 the carrying value of Exploration and evaluation assets was $10,627,811 (2021: $21,437,966). The Group’s accounting policy in respect of Exploration and evaluation assets is outlined in Note 2 (r). This is a key audit matter due to the fact that significant judgement is applied in determining whether: ▪ the Exploration and evaluation assets meet the recognition criteria in terms of AASB 6 Exploration for and Evaluation of Mineral Resources; and ▪ facts and circumstances exist that suggest that the carrying value of the Exploration and evaluation assets are in accordance with AASB 6. Our procedures focussed on evaluating management’s assessment of the capitalised Exploration and evaluation assets’ carrying value at the reporting date. These procedures included, amongst others: ▪ we verified that the rights of tenure to the areas of interest remained current at the reporting date; ▪ obtained evidence of the future intention for the areas of interest, including reviewing future budgeted expenditure and related work programmes; ▪ we obtained an understanding of the status of ongoing exploration programmes for the areas of interest; and ▪ we assessed the appropriateness of the accounting treatment and disclosure in terms of AASB 6. 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 2022, 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. Directors’ responsibility 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 Annual financial report, the directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Auditor’s responsibility 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 Australian Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of our auditor’s report. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 39 to 47 of the Directors’ Report for the year ended 30 June 2022. In our opinion, the Remuneration Report of Matsa Resources Limited, for the year ended 30 June 2022, complies with Section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with Section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. Nexia Perth Audit Services Pty Ltd PTC Klopper Director Perth 29 September 2022 MATSA RESOURCES LIMITED
ASX ADDITIONAL INFORMATION
The following additional information is required by the Australian Securities Exchange Ltd in respect
of listed public companies only.
SHAREHOLDING
Distribution of Shareholders as at 5 September 2022
Range (size of holding)
Number of Holders Number of Units
%
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
63
44
140
755
380
1,382
3,965
146,087
1,186,086
26,604,477
383,014,005
410,954,620
0.001
0.036
0.289
6.474
93.201
100.00
The number of shareholdings held in less than marketable parcels is 330.
Twenty Largest Registered Shareholders of Fully Paid Ordinary Shares as at 5 September 2022
Name
No.
%
Duketon Consolidated Pty Ltd
RASL AU LLC
Goldfire Enterprises Pty Ltd
BNP Paribas Nominees Pty Ltd
BNP Paribas Nominees Pty Ltd ACF Clearstream
Sparta AG
HF Resources Pty Ltd
HSBC Custody Nominees (Australia) Limited
1
2
3
4
5
6 Mr Paul Poli
7
8
9
10 Citicorp Nominees Pty Limited
11 Mr Paul Poli & Mrs Sonya Kathleen Poli
12 Goldfire Enterprises Pty Ltd
13 Mr Stacey Hubert Carter
14
Scintilla Strategic Investments Limited
15 Capretti Investments Pty Ltd
16 Mr Oliver Nikolovski & Mrs Suzanne Karine Nikolovski
L & S Davies Pty Ltd
17
18 Mr Oliver Nikolovski
19
20
Emprise Nominees Pty Ltd
Zero Nominees Pty Ltd
63,223,633
62,233,634
21,032,722
12,947,000
11,598,186
10,600,000
6,545,707
4,620,000
4,500,000
3,941,803
3,300,000
3,060,337
2,875,061
2,700,000
2,650,000
2,400,000
2,255,887
2,100,000
2,001,219
2,000,000
226,585,189
15.38
15.14
5.12
3.15
2.82
2.58
1.59
1.12
1.10
0.96
0.80
0.75
0.70
0.66
0.65
0.58
0.55
0.51
0.49
0.49
55.14
- 100 -
MATSA RESOURCES LIMITED
ASX ADDITIONAL INFORMATION
Substantial Shareholders
Ordinary shareholder
Sparta AG
Number
23,717,161
Percentage
5.77%
Fully paid
Distribution of Optionholders as at 5 September 2022
Range (size of holding)
Number of Holders Number of Units
%
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
83
66
29
100
96
374
36,133
162,228
219,735
4,904,637
43,897,520
49,220,253
0.07
0.33
0.45
9.96
89.19
100.00
Twenty Largest Registered Holders of Quoted Options Exercisable at $0.17 each expiring 30 April
2023
Name
No.
%
Mr Bilal Ahmad
Mr Mobeen Iqbal
Gazump Resources Pty Ltd
Mr Stacey Hubert Carter
BNP Paribas Nominees Pty Ltd ACF Clearstream
Mr Mark Richard Jensen
Mr Steven John Diggerman
Mr Sufian Ahmad
Goffacan Pty Ltd
1
2
3
4
5
6
7
8
9
10 Mr Luke KukulJ
11
12
13 Mr Gordon John Merchant & Mr Dennis Graham Pointing
14
15 Mr Nicholas Dermott McDonald
16
17 Mr Raden Grayson-Widarsito
18 Mr Denis Graham Pointing
19
20
Jetosea Pty Ltd
Toner Capital Pty Ltd
Zetetic Investments Pty Ltd
Sparta AG
IQ Global Asset Partners Pty Ltd
Scintilla Strategic Investments Limited
5,000,000
3,250,000
2,096,562
1,437,503
1,436,300
1,400,000
1,375,000
1,300,000
1,200,000
1,200,000
1,125,000
956,033
939,206
790,000
725,000
687,500
636,277
600,000
520,000
510,394
27,184,775
10.16
6.60
4.26
2.92
2.92
2.84
2.79
2.64
2.44
2.44
2.29
1.94
1.91
1.60
1.47
1.40
1.29
1.22
1.06
1.04
55.23
- 101 -
MATSA RESOURCES LIMITED
ASX ADDITIONAL INFORMATION
RESTRICTED SECURITIES
The Company has no restricted securities on issue.
STATEMENT OF UNQUOTED SECURITIES
Number of Options
5,750,000
1,000,000
2,000,000
2,000,000
44,079,341
3,250,000
1,000,000
Number of Holders
3
1
1
1
141
12
1
Exercise Price
$0.175
$0.35
$0.35
$0.25
$0.30
$0.21
$0.17
Date of Expiry
30 November 2022
30 November 2022
30 November 2022
30 November 2022
30 November 2022
30 October 2023
30 November 2023
- 102 -
MATSA RESOURCES LIMITED
ASX ADDITIONAL INFORMATION
TABLE OF MINERAL RESOURCES AND MINERAL RESERVES AT 30 JUNE 2022
Mineral Resource Estimates – Consolidated Summary & Annual Comparison
Project
Resource Category
Tonnes (‘000)
Au (g/t)
Metal Oz(‘000)
30 June 2021
Fortitude
Devon
Red October
Measured
Indicated
Inferred
Indicated
Inferred
Measured
Indicated
Inferred
-
2,988
3,328
341
906
71
408
406
8,448
Mining Depletion
Red October
Indicated
Inferred
-
-
-
Resource Adjustments
Fortitude
Devon
Red October
Stockpiles
Fortitude
Devon
Red October
Stockpiles
Total
Measured
Indicated
Inferred
Indicated
Inferred
Measured
Indicated
Inferred
Inferred
Measured
Indicated
Inferred
Indicated
Inferred
Measured
Indicated
Inferred
Inferred
127
33
2,439
-
115
34
75
5
191
3,019
30 June 2022
127
3,021
5,767
341
1,021
105
483
411
191
11,467
- 103 -
-
1.8
2.1
4.8
2.1
8.8
5.1
6.1
2.5
-
-
-
2.2
17.9
1.6
-
4.0
6.4
8.7
18.6
1.0
2.09
2.2
2.0
1.9
4.8
2.3
8.0
5.7
6.3
1.0
2.4
-
175
228
53
61
20
67
80
684
-
-
-
9
19
122
-
15
7
21
3
6
202
9
194
350
53
76
27
88
83
6
886
MATSA RESOURCES LIMITED
ASX ADDITIONAL INFORMATION
TABLE OF MINERAL RESOURCES AND MINERAL RESERVES AT 30 JUNE 2022 (continued)
Resource Statement Notes
• The geographic region for Gold Mineral Resources is Australia.
• Figures have been rounded in compliance with the JORC Code (2012). Rounding errors may
cause a column to not add up precisely.
• Resources exclude recoveries.
• Resources include reserves.
Ore Reserve Estimates – Consolidated Summary & Annual Comparison
(The Ore Reserve estimates are a subset of the Mineral Resource estimates)
Project
Reserve Category
Tonnes (‘000)
Au (g/t)
Metal Oz(‘000)
Fortitude
Probable
30 June 2021
1,029
1,029
1.8
1.8
Nil
Nil
Fortitude
Total
Mining Depletion
Reserve Adjustments
30 June 2022
Probable
1,029
1,029
1.8
1.8
58
58
58
58
Reserve Statement Notes
• Figures are rounded to reflect appropriate levels of confidence. Apparent differences may
occur due to rounding.
• The geographic region for Gold Mineral Resources is Australia.
Summary of Governance Arrangements and Internal Controls
The Mineral Resource and Reserve estimates are reported in accordance with the JORC 2012 Code,
using industry standard techniques and internal guidelines for the estimation and reporting of Ore
Reserves and Mineral Resources. The Mineral Resource and Reserve are estimated by suitably qualified
employees of Matsa Resources Ltd. There is no change to the reserve from the 2021 Annual Report.
Matsa confirms there is no new information pertaining to reserves and no changes to the underlying
reserve calculations/assumptions have been made.
Competent Persons Statement
Resources
The information in this document that relates to exploration targets, exploration results and Mineral
Resources, is based on information compiled by Pascal Blampain, who is a Member of the Australasian
Institute of Mining and Metallurgy and Australian Institute of Geoscientists. Pascal Blampain is a full-
time employee, and serves on the Board, of Matsa Resources Limited and has sufficient experience
which is relevant to the style of mineralisation and the type of ore deposit under consideration and the
activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr
Blampain consents to the inclusion in the report of the matters based on his information in the form
and context in which it appears.
- 104 -
MATSA RESOURCES LIMITED
ASX ADDITIONAL INFORMATION
Reserves
The information in this report that relates to Ore Reserve results is based on information compiled by
Mr Frank Sibbel, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Sibbel is a
non-executive director of Matsa Resources Limited. Mr Sibbel has sufficient experience which is
relevant to the style of mineralisation and the type of ore deposit under consideration and the activity
which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr
Sibbel consents to the inclusion in the report of the matters based on his information in the form and
context in which it appears.
- 105 -
Tenement Type
and No.
P 39/6116
P 39/6117
E 39/1232
M 39/386
M 39/387
M 39/500
M 39/629
E 39/1760
L 39/222
L 39/235
L 39/237
M 39/1077
M 39/1078
E 39/21593
E 39/21623
E 52/3339
E 39/1752
E 39/1803
E 39/1812
E 39/1819
E 39/1834
E 39/1837
E 39/1863
E 39/1864
E 39/1957
E 39/1958
E 39/1980
E 39/1981
L 39/247
L 39/260
L 39/267
M 39/1
M 39/1065
M 39/1089
M 39/286
M 39/709
M 39/710
P 39/5652
P 39/5669
P 39/5670
P 39/5694
P 39/5841
E 38/2945
MATSA RESOURCES LIMITED
SCHEDULE OF MINING TENEMENTS
Project
Devon
Devon
Devon
Devon
Devon
Devon
Devon
Devon
Devon
Devon
Devon
Devon
Devon
Fraser Range
Fraser Range
Glenburg
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Holder
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Resources Limited
Matsa Resources Limited
Cundeelee Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Status
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Share
Held
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
30%
30%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
- 106 -
MATSA RESOURCES LIMITED
SCHEDULE OF MINING TENEMENTS
Project
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Carey
Lake Rebecca
Lake Rebecca
Paraburdoo
Red Dog
Red October
Red October
Red October
Red October
Red October
Red October
Red October
Red October
Red October
Red October
Red October
Symons Hill
Symons Hill
Galena
Tenement Type
and No.
E 39/1770
E 39/17961
E 39/1840
E 39/18891
E 39/2015
E 39/2128
L 39/291
L /39/295
E 28/26002
E 28/26352
E 47/3518
L 39/268
L 39/217
L 39/273
M 39/411
M 39/412
M 39/413
M 39/599
M 39/600
M 39/609
M 39/610
M 39/611
M 39/721
E 28/2916
E 69/30703
E 66/1053
1= 90% held by Matsa
2= 20% held by Matsa
3= 30% held by Matsa
Holder
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Gold Pty Ltd
Matsa Resources Limited
Matsa Gold Pty Ltd
Red October Gold Pty Ltd
Matsa Gold Pty Ltd
Red October Gold Pty Ltd
Red October Gold Pty Ltd
Red October Gold Pty Ltd
Red October Gold Pty Ltd
Red October Gold Pty Ltd
Red October Gold Pty Ltd
Red October Gold Pty Ltd
Red October Gold Pty Ltd
Red October Gold Pty Ltd
Matsa Resources Limited
Matsa Resources Limited
Matsa Resources Limited
Status
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Share
Held
100%
90%
100%
90%
100%
100%
100%
100%
20%
20%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
30%
30%
100%
- 107 -
www.matsa.com.au