ANNUAL
REPORT
2024
DIRECTORY
Directors
Paul Poli
Executive Chairman
Pascal Blampain
Director
Andrew Chapman
Director
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
Automic Group
Level 5, 191 St Georges Terrace
Perth WA 6000
www.automicgroup.com.au
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
2024 ANNUAL REPORT · PAGE 2
CORPORATE DIRECTORY
1
CHAIRMAN’S REPORT
3
OPERATIONS REVIEW
4
DIRECTORS’ REPORT
29
AUDITOR’S INDEPENDENCE DECLARATION
44
FINANCIAL STATEMENTS
-
Consolidated Statement of Profit or Loss
45
-
Consolidated Statement of Other Comprehensive Income
46
-
Consolidated Statement of Financial Position
47
-
Consolidated Statement of Changes in Equity
48
-
Consolidated Statement of Cash Flows
49
-
Notes to Consolidated Financial Statements
50
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
93
DIRECTORS’ DECLARATION
94
INDEPENDENT AUDIT REPORT
95
ADDITIONAL ASX INFORMATION
98
SCHEDULE OF MINING TENEMENTS
104
MATSA RESOURCES LIMITED - CONTENTS
2024 ANNUAL REPORT · PAGE 3
Dear Shareholder,
During the year Matsa Resources Limited (“Matsa”) continued its focus on advancing the Devon Pit Gold
Project, which lies within the Lake Carey Gold Project, and advancing its lithium interests in Thailand
which has gathered steam throughout the year.
Over the last year, Matsa has steadily progressed the Devon Pit Gold Mine towards development and
has received all bar one permit to commence mining. This last permit is expected shortly. Assay results
received earlier this year from a drilling program undertaken at Devon Pit Gold Mine late last year led to
new studies being conducted which impressively resulted in a 4% increase in tonnes and a 14% increase
in grade resulting in an overall 19% increase in ounces compared to the 2023 model. Optimisation and
feasibility studies are in the process of being completed which should enhance the previous economic
outcomes and result in a considerably higher net profit outcome.
Furthermore, discussions with 3rd party mining and processing options occurred for the development
and processing of the Devon Pit Gold Mine at Lake Carey, with several processors showing interest
and two mining groups keen to advance discussions for mining. In July 2023, Matsa entered in to
an agreement with AngloGold Ashanti (“AngloGold”) whereby AngloGold were granted a 3-month
exclusive period to conduct due diligence on Matsa’s Red October and wider Lake Carey Gold Project.
While the exclusivity period expired, both parties have continued discussions on an informal basis over
the last twelve months. Subsequent to year end an extended confidentiality period was agreed to, giving
AngloGold a further 45 days to further discuss with Matsa particulars concerning Lake Carey which
could lead to a potential transaction between the parties although I stress, that there is no guarantee
that this will occur.
During the year Matsa continued to build its Thailand lithium business with an initial two Special
Prospecting Licences (“SPL”) being granted at Ratchaburi with an additional licence being granted at
Chok Dee in June. I am particularly excited with the level of prospectivity in Thailand for lithium and
anticipate an initial drilling program to commence in late 2024/early 2025 with results expected shortly
thereafter. Matsa’s discussions with the Thailand government have been very encouraging and they are
very interested for companies to develop in nation lithium resources to complement their significant car
making industry and development of their own battery manufacturing industry.
I believe there is a real opportunity for a first mover advantage in the Thailand lithium business which
Matsa is poised to take part in over the next few years.
While the year has not been without its challenges and, at times frustrating, Matsa continues to focus
on a disciplined approach towards its projects and there is an expectation that rewards to this approach
will start to become evident in the year ahead. To that end I thank all those involved with Matsa for
their hard work and support throughout the year. In particular, I would also like to thank my fellow board
members, senior management and the team both in Perth and Thailand.
MATSA RESOURCES LIMITED - CHAIRMAN’S REPORT
PAUL POLI
EXECUTIVE CHAIRMAN
2024 ANNUAL REPORT · PAGE 4
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
SUMMARY – DELIVERING STRATEGY AND GROWTH
This year, Matsa Resources Limited (“Matsa” or the “Company”) and its controlled entities (the
“Group”) has continued to focus on the development of the significant resource potential at the Lake
Carey Gold Project (“Lake Carey”, refer Figure 1) and has set about progressing the Devon Pit Gold
Mine (“Devon”) toward production, which is expected to commence late in CY2024.
At the time of writing this report, the Native Vegetation Clearing Permit (NVCP) was the only
regulatory approval/permit remaining outstanding to allow Matsa to commence operations at this
important project. Whilst Matsa waits for this last approval, works are well underway to finalise pit
designs, mining schedules and cash flow models leading to a final decision to mine.
Resource updates, pit optimisations, mine design work and scheduling has been undertaken for the
Devon Pit Gold Mine and the Company is progressing processing and mining contracts. Funding and
financing discussions are also progressing and all activities appear on track for a late 2024 mining
operation to commence.
Elsewhere, the Company has made significant inroads in establishing a robust lithium exploration
project in the granite belt of western Thailand, where the Company has added new discoveries and
identified REE potential with promising results of 2,896ppm TREO.
Matsa continues to progress select tenements to grant so that exploration drilling can be undertaken
that is expected to confirm depth extensions of the outcropping lepidolite bearing pegmatites at the
Company’s lithium projects in western Thailand.
As a result, a number of important and positive outcomes have been achieved over the past 12
months whose highlights include:
• A 14% increase in grade (to 5.22g/t Au) and 5% increase in tonnes for a 19% increase in
ounces, has significantly improved the economic outlook for the Devon project
• Matsa’s Lake Carey Gold Project Resource now lifts to 11.9Mt @ 2.5g/t Au for 949koz
• In Thailand three new lithium discoveries have been made including Purple Panther at Ratchaburi
and at Kanchanaburi, the Chok Dee Panther and Pink Panther North prospects
• Two SPL (Ratchaburi) and one EPL (Kanchanaburi) were granted during the year
• A further two tenements are progressing through to grant at Kanchanaburi (1 x EPL and 1 x
SPL) with granting expected in the second half of 2024
• At Black Panther, REE potential has been identified where promising results of 2,896ppm TREO
have been recorded.
2024 ANNUAL REPORT · PAGE 5
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
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 almost 450km² 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
approximately 1,700km² under Special Prospecting Licence Applications (SPLA – up to 5 yr terms)
and Exclusive Prospecting Licence Applications (EPLA – 2 yr terms) 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.
The Company has had three tenements granted with a further 2 tenement grants expected shortly
that will enable Matsa to conduct a maiden exploration drilling program at its lithium projects in
western Thailand.
Exploration has continued at both Lake Carey and Thailand during the July 2023 to June 2024
reporting period.
Matsa has additional gold and copper exploration projects in Thailand (refer Company website https://
www.matsa.com.au/projects/ for further information) however the focus for the time being is on
lithium and associated rare earth pegmatites.
All smiles at Kanchanaburi as the dry season exposes extensive lepidolite outcrop at Chok Dee
Panther – Photo taken February 2024
2024 ANNUAL REPORT · PAGE 6
REVIEW OF OPERATIONS
AUSTRALIAN OPERATIONS
LAKE CAREY
The Lake Carey Gold Project (Figures 1 & 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 Northern Star’s Deep South mine. The eastern margin of the tenement package is bounded
by the regional Barnicoat East Fault structure that separates the Kurnalpi and Burtville terranes.
Importantly, from a development perspective 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.
The Devon Pit Gold Mine has been the focus of Matsa’s work activities during the year with the aim
of commencing mining late in CY2024. To this end, regulatory approvals are well advanced at the time
of writing this report.
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
FIGURE 1: Matsa’s projects with a gold focus at Lake Carey in Western Australia and lithium
focus in western Thailand
2024 ANNUAL REPORT · PAGE 7
FIGURE 2: Lake Carey Gold Project with key resources and the Devon Pit Gold Mine
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
2024 ANNUAL REPORT · PAGE 8
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
TABLE 1: Key resources and mining lease status, with Devon progressing through approvals
that should see mining commence late in 2024
Project status for key resource and mining options are outlined in the following table:
PROJECT
MINING LEASE
HAUL ROADS
MINE PROPOSAL
Fortitude Stage 2
Granted
Existing
Current
Gallant
Granted
Existing
Required
Bindah
Granted
Existing
Current (Small Ops)
Red October
Granted
Existing
Current
Devon Pit
Granted
Existing
Current (awaiting NVCP)
Hill East
No
Partial
Required
Olympic
Granted
Existing
Required
DRILLING TYPE
NO. HOLES
METERS
Reverse Circulation
56
3,101
Total
56
3,101
OVERVIEW
Exploration work during the year has been focussed on resource and grade control drilling at Devon,
model updates, pit optimisation work, mine designs and scheduling and submissions for regulatory
approvals to commence mining at Devon.
Other work at Lake Carey includes application for funding via the Western Australian Government’s
Exploration Initiative Scheme (EIS) for the Fortitude North and BE1 prospects (Figure 3).
Key results from this work include:
• An updated model for the Devon Pit Gold Mine demonstrated a 19% resource (ounces) increase
from 69koz to 82koz at an impressive grade of 5.22g/t Au
• Progression of relevant studies (optimisations, mine designs and budgets) to enable a Final
Investment Decision (FID), with results expected later in CY2024
• In parallel to these studies, applications for regulatory approvals and permitting to commence
mining at the Devon Pit Gold Mine are well advanced (Table 3)
• EIS funding approved for both the Fortitude North and BE1 prospects where Matsa has
previously announced significant gold intercepts
DEVON PIT GOLD MINE
The Devon Pit Gold Mine (Figures 4 & 5) drill program comprised 56 RC holes for 3,101m. The
drilling was designed to target both the Main and Western lodes and the results validate the gross
architecture and lode interpretation of the Devon Pit Gold Mine resource previously completed by
Matsa and reported in April 2021.
Table 2: Summary of drilling:
TABLE 2: Summary of drilling
2024 ANNUAL REPORT · PAGE 9
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
FIGURE 3: Matsa’s Lake Carey Gold Project showing key deposits, prospects and EIS funding
approved Fortitude North and BE1 prospects
2024 ANNUAL REPORT · PAGE 10
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
MINING STUDIES AND PERMITTING
The Devon Pit Gold Mine has been the subject of a number of studies during the past couple of years
with studies demonstrating mining potential. Matsa is currently finalising optimisations, mine designs and
schedules that will inform Matsa’s feasibility study and a final investment decision (ie decision to mine).
In parallel to these studies, the Company has advanced the necessary regulatory approvals to enable
potential mining operations to commence. These approvals are well advanced with only the Native
Vegetation Clearing Permit pending (refer Table 3). The proposed site layout is shown in Figure 6.
FIGURE 4: Devon Open Pit, oblique view looking along strike to the northeast
TABLE 3: Summary of Devon regulatory and approvals:
ITEM
PURPOSE
STATUS
COMMENT
Tenements
Granted mining & misc
leases
Valid to
December 2034
Haulage
Allows ore haulage on public
roads
Shire approvals obtained
Menzies and Leonora
shires
Mining Proposal
(MP)
Approval for construction of
infrastructure and undertake
mining activities
Approved
9 July 2024
Requires an approved
clearing permit to
commence works
Mine Closure Plan
(MCP)
Defines rehabilitation and
closure prescriptions
Approved
9 July 2024
Approved with the
Mining Proposal
Clearing permit
Authorises clearing of native
vegetation
Lodged
ETA 10 September
Pending approval
Water abstraction
licence
Enables extraction and use of
water from project
Approved
Valid to
14 January 2030
Water Discharge
licence
Enables project dewatering and
discharge
Approved
Discharge licence for
1,100,000kL
Works approval
Permit to construct premises
Approved
Consent given
July 2023
Operating licence
Licence to operate premises
To be submitted once
dewatering commissioned
Mining Operations
Notice (MON)
Allows mining of an operation
Issued once all permits
granted
2024 ANNUAL REPORT · PAGE 11
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
Historically, Devon Pit Gold Mine ore had been successfully processed through two different processing
plants (Darlot, Red 5 and Carosue Dam, Northern Star) during the GME mining operation in 2015 and
2016 respectively.
A total of 60,622t at 5.31g/t for 10,349oz was processed through the plants for an average recovery
of 92.69%. The material comprised mostly oxide and transitional, with fresh forming part of the
campaign in the later stages.
Underground mining took place during the early part of the 20th Century and whilst the historical
production numbers look healthy, it is difficult to obtain accurate total production due to the patchy
nature of the available data.
GOVERNMENT CO-FUNDED DRILLING EXPLORATION INCENTIVE SCHEME (EIS)
During the year, Matsa was successful in its applications to the Western Australian Government’s
Exploration Incentive Scheme (EIS) Co-funded drilling programs at Fortitude North and BE1 where
the Company has previously announced significant gold intercepts.
The EIS is a State Government initiative that aims to encourage exploration in Western Australia
for the long-term sustainability of the State’s resources sector. The Co-funded Exploration Drilling
Program is a flagship program of the EIS. It is a competitive program, open for applications twice a
year, which offers up to a 50% refund for innovative exploration drilling projects, capped at specific
amounts.
Applications were lodged for:
• an 800m diamond drill hole at Fortitude North to test strong coincident magnetic and seismic
anomaly where Matsa has recorded numerous thick high-grade intercepts in recent drilling. A
total refund of up to $180,000 is available to Matsa for this application; and
• 2 diamond drill holes (total of 840m) at BE1 where the Company has previously intersected 2m
@ 25.3 g/t and 1m @ 17.2 g/t Au in deeply weathered and altered dacite porphyry under Lake
Carey and beneath ~40-60m of transported cover. A total refund of up to $180,000 is also
available to Matsa for this application.
The rebate amounts are subject to signing the Funding Agreements, completion of drilling and provision
of drill core & reports to the State Government. The Funding Agreement is valid for 1 year.
2024 ANNUAL REPORT · PAGE 12
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
FIGURE 5: Plan view of Devon Pit Gold Mine showing location of new drilling
2024 ANNUAL REPORT · PAGE 13
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
FIGURE 6: Proposed mine layout for Devon Pit Gold Mine
2024 ANNUAL REPORT · PAGE 14
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
TABLE 4: Lake Carey Gold Resource Table (resources include reserves, refer Resources and
Reserves table for formal 30 June statement). Note rounding adjustments may not total.
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
2.0
105
8.4
608
5.4
635
5.4
1348
5.6
244
Red October Subtotal
105
8.4
608
5.4
635
5.4
1348
5.6
244
Devon
Devon Pit (OP)
1.0
18
4.4
450
5.3
21
5.4
488
5.2
82
Olympic (OP)
1.0
-
-
-
-
171
2.8
171
2.8
15
Hill East (OP)
1.0
-
-
-
-
748
2.0
748
2.0
48
Devon Subtotal
-
-
450
5.3
940
2.2
1407
3.2
145
Fortitude
Fortitude
1.0
127
2.2
2,979
1.9
4,943
1.9
8,048
1.9
489
Gallant (OP)
1.0
-
-
-
-
341
2.1
341
2.1
23
Bindah (OP)
1.0
-
-
43
3.3
483
2.3
526
2.4
40
Fortitude Subtotal
127
2.2
3021
2.0
5,767
1.9
8,915
1.9
553
Stockpiles
-
-
-
-
191
1.0
191
1.0
6
TOTAL
232
5.0
4079
2.7
7,342
2.2
11,861
2.5
949
NEXT STEPS
Matsa’s biggest focus for the coming year will be to move the Devon Pit Gold Mine into production.
The remaining activities required to accomplish this include:
•
Finalise feasibility studies for the Devon Pit Gold Mine and subject to a positive outcome,
approve a development proposal (decision to mine)
•
Obtain Native Vegetation Clearing Permit (all other regulatory approvals have been received)
•
Finalise mining and mill contracts
•
Finalise funding to commence mining operations
•
Complete drilling at Fortitude North and BE1 under the WA government’s EIS funding scheme
RESOURCES
The gold resource at Lake Carey grew to 949koz (30 June 2024, Table 4) through the following
additions and mining adjustments:
•
Minor increase of 13koz at Devon Pit Gold Mine following modelling of new drilling; and
•
No mining has taken place during the reporting period with Red October mining remaining
suspended since July 2021.
2024 ANNUAL REPORT · PAGE 15
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
THAILAND OPERATIONS
Matsa has made substantial progress on lithium exploration and potential development in Thailand
with further discoveries including Purple Panther (Ratchaburi) and Chok Dee and Pink Panther North
(Kanchanaburi) (Figure 7). Elsewhere at Black Panther, also at Kanchanaburi, the Company has
identified REE potential with promising results of 2,896ppm TREO.
Matsa is progressing select tenements at Kanchanaburi, Ratchaburi and Phang Nga, through the
granting process that will provide regulatory approvals to conduct exploration drilling. To date 2 x SPL
have been granted at Ratchaburi and 1 x EPL has been granted at Kanchanaburi. The Company is
awaiting a further SPL and an EPL at Kanchanaburi before committing to a maiden exploration drilling
campaign.
During the year, Matsa continued to work with the Thai government and other agencies in an effort to
realise a lithium supply chain within Thailand to support the government’s EV3.5 policy and objectives.
Matsa’s ambition in this potential supply chain, is to explore, mine and process lithium ores to provide
lithium products to end users based in Thailand. Arguably both private sector and government agencies
are keen to realise this position.
Matsa has one of, if not the largest, tenement positions in Southeast Asia for lithium and other critical
minerals exploration. Exploration efforts to date have demonstrated that it is no longer a question of
“does Thailand have lithium”, but rather “how much lithium is there”. Last year, albeit at a small scale,
Matsa was able to demonstrate that Thailand lepidolite could be processed to produce a commercial
grade lithium product that can feed into the battery making field.
Soil, stream and rock chip sampling amounted to 617 samples (Table 5) largely from the Ratchaburi
and Kanchanaburi project areas. Samples continue to be processed at the Company’s preparation
facility at Kanchanaburi to dry, crush and pulverise the samples that are then sent to Australia for
assaying at one of the commercial laboratories in Perth.
In the field, Matsa has access to both a Vanta M series pXRF analyser (portable X-ray fluorescence)
and SciAps Z300 LIBS analyser (Laser Induced Breakdown Spectroscopy) to obtain real time readings
of target elements such as lithium (Figure 8), that allows our geologists to rapidly map an area’s
prospectivity and decision making.
Matsa has identified widespread lithium anomalism from Phang Nga in the south to Kanchanaburi
in the north. Lithium mineralisation is typically characterised by lepidolite and polylithionite lithium
micas and is closely associated with the regionally extensive western granite belt (Figure 9) that can
be traced in excess of 600km.
SAMPLE TYPE
QUANTITY
Rock Chips
97
Stream Sediment
145
Soil
375
TOTAL
617
TABLE 5: Table of sampling for Matsa’s lithium exploration in western Thailand.
2024 ANNUAL REPORT · PAGE 16
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
FIGURE 7: Plan of Matsa’s Thailand lithium projects and tenement position
2024 ANNUAL REPORT · PAGE 17
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
FIGURE 8: SPLA01/2566 – 6.51% Li2O with a LIBS reading of 3.03% Li (Test #2339 below),
is a new discovery (Pink Panther North) approximately 1.5km to the northwest of Matsa’s Pink
Panther prospect.
Preparing spectacular lepidolite display trophies at Kanchanaburi – Photo taken April 2024
2024 ANNUAL REPORT · PAGE 18
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
FIGURE 9: Western Thailand’s granite and major regional fault setting with Matsa lithium
discoveries (colour coded pink for lepidolite and brown for polylithionite bearing pegmatites)
2024 ANNUAL REPORT · PAGE 19
TENEMENTS
PROVINCE
PROSPECT(S)
STATUS
TERM
ETA
SPLA01/2566
Kanchanaburi
Pink Panther, & Pink
Panther North Black
Panther, Poly Panther
Application
progressing
5 Years
Pending –
Q3 2024
EPL06/2567
Kanchanaburi
Chok Dee
Granted 19/06/24
2 Years
Current
EPLA01/2567
Kanchanaburi
Chok Dee
extensions
Application
progressing
2 Years
Pending –
Q4 2024
EPLA07/2567
Kanchanaburi
Chok Dee
extensions
Application
progressing
2 Years
Pending –
Q4 2024
SPL11/2566
Ratchaburi
Spotted Panther,
Purple Panther
Granted 27/12/23
5 Years
Current
SPL12/2566
Ratchaburi
Granted 27/12/23
5 Years
Current
TABLE 6: Summary of key Thailand tenement grants and approvals
Summary of the ME results
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
EXPLORATION AND GROWTH
LITHIUM EXPLORATION AND RARE EARTH ELEMENTS
Matsa has discovered a number of lithium occurrences in the Kanchanaburi, Ratchaburi and Phang
Nga provinces in western Thailand (Figures 7 & 9). In Kanchanaburi four key tenements are being
progressed through to grant, whilst at Ratchaburi two tenements were granted during the year. Matsa
anticipates all 6 tenements will be granted by the end of 2024 which will enable the Company to
undertake a maiden exploration drilling campaign for lithium and rare earths. The granting progress of
these selected tenements is shown in Table 6 below:
BLACK PANTHER – A NEW RARE EARTHS (REE) DISCOVERY
Matsa has assessed results of multi element (ME) data from the Black Panther bulk sample previously
tested for lithium recoveries where the presence of ferroan M1 polylithionite (lithium mica) was
previously confirmed. Whilst the testwork of April 2023 noted moderate recoveries associated with
the lithium, the multi element (ME) work has highlighted rare earth element potential. So far, an area
of approximately 3km x 4km of float and outcrop for REE has been outlined at Black Panther (refer
Figure 10) largely within farmland.
New assay results have returned elevated levels for a number of rare earth elements suggesting the
presence of a strong REE geological setting for the Black Panther prospect at Kanchanaburi with
promising results of 2,896ppm TREO comprising 23% combined Neodymium/Praseodymium (Nd/
Pr) and 2% Dysprosium (Dy).
Of particular interest is the presence of rare earth elements Neodymium, Praseodymium, Terbium,
Samarium widely used in the rare earth magnets producing significantly stronger magnetic fields than
other types such as ferrite or alnico magnets. These magnets have been gaining popularity in the EV
industry and would make a nice complement to our lithium exploration strategy in Thailand.
METHOD
ANALYTE
ME-MS61r
CE
ppm
ME-MS61r
La
ppm
ME-MS61r
Y
ppm
ME-MS61r
Dy
ppm
ME-MS61r
Er
ppm
ME-MS61r
Eu
ppm
ME-MS61r
Gd
ppm
ME-MS61r
Ho
ppm
ME-MS61r
Lu
ppm
ME-MS61r
Nd
ppm
ME-MS61r
Pr
ppm
ME-MS61r
Sm
ppm
ME-MS61r
Tb
ppm
ME-MS61r
Tm
ppm
ME-MS61r
Yb
ppm
Sample ID
0.01
0.5
0.1
0.05
0.03
0.03
0.05
0.01
0.01
0.1
0.03
0.03
0.01
0.01
0.03
BKPANMET1
955
437
226
58.8
19.15
2.15
72.5
7.98
1.57
452
116.5
85.2
9.25
2.36
14.1
Ox conversion factor
1.1713
1.1728
1.2699
1.1477
1.1425
1.1579
1.1526
1.1455
1.1371
1.1664
1.1703
1.1596
1.151
1.1421
1.1387
REO Black Panther
1119
513
287
67
22
2
84
9
2
527
136
99
11
3
16
2024 ANNUAL REPORT · PAGE 20
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
Black Panther sample with lepidolite sample from Kanchanaburi shown in the background –
Photo taken November 2023
Petrographic analysis of the Black Panther rocks has concluded the rocks exhibit a continuum of
metasomatic replacement of a pre-existing lithology involving complete textural destruction by an
aggressive alkaline mafic system enriched in Nb, La, Cs, Ce and K (HFSE). This implies the presence of
a high K mafic syenite or syenogabbro in this district, and is more likely to lie within this type of high
K potassic fractionated and evolved REE type syenite-carbonatite trend.
The combination of macro-petrology suggest that the rock is composed of an integral mix of phlogopite
mica + polylithionite, with a notably anomalous concentration of fluorapatite accessory minerals, as
indicated by the high P content and the mineralogy. The latter carries the REE’s Cs, Ce, La and Nb.
This rock has been massively metasomatically replaced which is indicative of a powerful and aggressive
alkaline system in the vicinity of this sample.
Further work is planned to better understand the geological setting and uncover the potential alkaline
system and its associated rocks for a rare earth element prospect.
2024 ANNUAL REPORT · PAGE 21
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
FIGURE 10: Black Panther area showing outline of identified anomalous REE occurrences
2024 ANNUAL REPORT · PAGE 22
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
Purple Panther strong lithium bearing pegmatite at Ratchaburi (refer Figure 11)
– photo taken January 2024
RATCHABURI LITHIUM EXPLORATION
On 27 December 2023, Matsa was granted two Special Prospecting Licences (SPL) at Ratchaburi,
with the Company receiving formal notification of the grant on 12 January 2024. The area hosts the
Spotted Panther and newly discovered Purple Panther prospects (Figure 11).
Lithium anomalism has been recorded over an area in excess of 6km x 1km with both lepidolite
(Purple Panther) and polylithionite (Spotted Panther) have been identified. Spotted Panther lithium
demonstrated recoveries of 86% in the Yongxing lithium metallurgical testwork undertaken by Matsa
in 2023. The Purple Panther lithium has not yet been tested for metallurgical recoveries, however
based on experience with Matsa’s other lepidolite projects at Pink Panther and Rose Panther, the
Purple Panther lithium is expected to return high recoveries in any future testwork.
Of note at Spotted Panther is the presence of elevated rare earths assay results. Whilst not as high as
those recorded at Black Panther, the levels are never the less substantially stronger at over 300ppm
compared to regional background levels of less than 50ppm TREO.
2024 ANNUAL REPORT · PAGE 23
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
FIGURE 11: Matsa’s granted tenements at Ratchaburi with geology mapping and current distribution
of lithium occurrences
2024 ANNUAL REPORT · PAGE 24
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
KANCHANABURI LITHIUM EXPLORATION
Matsa has discovered a number of lithium occurrences (both outcrop and float materials) in the
Kanchanaburi province, approximately 200km west of Bangkok, where further detailed mapping
and grid sampling is planned at each of Matsa’s new discovery sites. The Kanchanaburi province
hosts Matsa’s Pink Panther, Poly Panther and Black Panther prospects. During the year Matsa also
discovered the Chock Dee and Pink Panther North prospects (Figure 12).
Kanchanaburi has proved good hunting ground for discovery of new lithium occurrences and during
the year delivered Matsa’s northern most new project, Chok Dee Panther. 22 samples were collected
at Chok Dee Panther and analysed in the field using handheld LIBS analyser (laser induced breakdown
spectroscopy). The results for lithium using the LIBS analyser are highly encouraging and support
visual interpretation of lepidolite mineralisation associated with the pegmatite field. The results of the
LIBS readings are shown in Table 7 below.
The Chok Dee prospect sits within a Declared Mining Zone which is expect to assist the process of
mining applications should a significant resource be defined through future drilling.
At Pink Panther North (Figure 13), lepidolite has been recorded over an area of approximately 2km by
1km. It is thought the occurrences reflect a series of stacked pegmatite veins trending NE-SW that
could be dipping around 50° to the northwest.
Pink Panther North is hosted within the same tenement as Pink Panther and is expected to be granted
in the coming months.
TABLE 7: LIBS readings of lithium for Chok Dee samples
SampleID
Sample_Type
Orig_Grid_ID
Orig_North
Orig_East
Orig_RL
Sample_Description
Li% (LIBs)
Li2O% (eq)
KANRK055
ROCK
WGS84_47
1543787
504268
291
*LP OUTCROP
2.33
5.01
KANRK056
ROCK
WGS84_47
1543801
504277
289
*LP OUTCROP
1.3
2.80
KANRK057
ROCK
WGS84_47
1543807
504286
288
*LP OUTCROP
1.92
4.13
KANRK058
ROCK
WGS84_47
1545445
502922
307
QTZ FELD+GRN PEG OUTCROP
1.19
2.56
KANRK059
ROCK
WGS84_47
1543982
504722
216
*LP OUTCROP
2.01
4.32
KANRK060
ROCK
WGS84_47
1543967
504722
220
*LP OUTCROP
2.83
6.08
KANRK061
ROCK
WGS84_47
1544289
504763
241
PEG APLITE OUTCROP
1.31
2.82
KANRK062
ROCK
WGS84_47
1544838
504036
207
PEG MICA QTZ FLOAT
3.28
7.05
KANRK063
ROCK
WGS84_47
1544695
504207
227
*150SE, LP VN OUTCROP
1.04
2.24
KANRK064
ROCK
WGS84_47
1544832
504264
208
*LP OUTCROP
2.54
5.46
KANRK065
ROCK
WGS84_47
1548854
504491
198
FLD PEG POLYLITHIONITE OUTCROP
0.52
1.12
KANRK070
ROCK
WGS84_47
1543675
503933
326
PEG IN GRN OUTCROP
1.01
2.17
KANRK071
ROCK
WGS84_47
1544161
503423
390
PEG OUTCROP
1.19
2.56
KANRK075
FLOAT ROCK
WGS84_47
1550242
504704
272
*LP FLOAT
2.99
6.43
KANRK068
FLOAT ROCK
WGS84_47
1548438
504912
184
ROSEQTZ??, PEG-GRN OUTCROP
1.38
2.97
KANRK069
ROCK
WGS84_47
1550310
504721
293
*LPVN OUTCROP
2.41
5.18
KANRK081
ROCK
WGS84_47
1550330
504713
301
*LPVN OUTCROP
1.64
3.53
KANRK074
FLOAT ROCK
WGS84_47
1544375
504503
260
*LP FLOAT
2.3
4.95
KANRK066
ROCK
WGS84_47
1544461
504443
271
PEG OUTCROP
1.6
3.44
KANRK067
ROCK
WGS84_47
1544202
504185
230
PEG OUTCROP
1.09
2.34
2024 ANNUAL REPORT · PAGE 25
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
NEXT STEPS
Work at Matsa’s Thailand projects for the coming year will include:
•
Finalise key priority tenement grants to enable drilling operations to commence (3 licences received
/ 3 licences to go)
•
Conduct initial exploration drilling to define depth potential of lithium pegmatites at Pink Panther,
Pink Panther North, Chok Dee and Purple Panther once all select SPLs and EPLs have been
granted
•
Continue with government and other agency engagement to work towards mining and development
approvals at Kanchanaburi
•
Attract potential development/processing partner for downstream processing of lithium ores
•
Gridded mapping and sampling of the Black panther prospect where anomalous REE has been
discovered
FIGURE 12: Map of key prospects in Kanchanaburi with granted Chok Dee tenement in red
(note tenements are shown in graticular format as per formal applications)
2024 ANNUAL REPORT · PAGE 26
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
FIGURE 13: Map of Pink Panther North area
2024 ANNUAL REPORT · PAGE 27
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
CORPORATE ACTIVITIES
DEVON PIT JOINT VENTURE
On 8 December 2023, the Company announced it had executed an agreement with Linden Gold Alliance
Limited (“Linden”) and Linden’s wholly-owned subsidiary Devon Gold Project Pty Ltd (“Devon”) to
terminate the Mine Management and Profit Sharing Joint Venture Agreement for the Devon Gold
Mine Joint Venture (the “Agreement”). The key terms of the Agreement can be found in the ASX
announcement of that date.
The termination of the Agreement followed a number of various disputes between the parties and the
Company’s view that Linden did not meet several of the required milestones under the Agreement.
CAPITAL RAISINGS
On 30 August 2023, the Company announced a $2M capital raising before costs, which was
oversubscribed via a placement. The placement was comprised of an immediate $1.91M to institutional
and sophisticated investors and $90,000 from the Company’s directors following receipt of shareholder
approval at the Annual General Meeting held 20 November 2023.
Inspecting lepidolite bearing pegmatite outcrop at Lp7 (Chok Dee) area in June 2024
2024 ANNUAL REPORT · PAGE 28
MATSA RESOURCES LIMITED - OPERATIONS REVIEW
The placement consisted of 66,666,667 fully paid ordinary shares issued at $0.03 each, with each
participant receiving 1 free attaching unlisted option for every 2 shares allotted in the placement with
an exercise price of $0.07 each expiring 7 September 2025.
On 29 April 2024, Matsa undertook a strongly supported capital raising of $2.15M before costs via
a placement. The placement was conducted in two tranches with Tranche 1 comprising the issue of
71,651,105 shares at an issue price of $0.03 per share and Tranche 2 comprising the issue of 14.82M
shares at the same issue price and included participation by Matsa directors of $120,000. Shareholder
approval for Tranche 2 was received on 25 July 2024.
In addition, each participant received 1 free option for every three new shares issued, exercisable at
$0.07, expiring 31 January 2026. The options were also subject to and received shareholder approval
on 25 July 2024.
OTHER ACTIVITIES
The repayment date for the short term loan agreement entered into in June 2023 for $750,000 was
extended during the year to 30 June 2024 with the Company making a repayment of $250,000 on 2
October 2023.
On 15 December 2023, the Company entered into a second short-term loan agreement with an existing
lender for an additional $500,000 loan advance (the “Additional Loan Advance”). The Additional Loan
Advance is repayable by 31 December 2024.
The other key terms of the Additional Loan Advance include:
Interest Rate: 12% per annum paid monthly in arrears
Security:
The Additional Loan Advance is secured by a mortgage over the Fortitude gold project
tenements
A Facility Fee of 150,000 shares was issued to the lenders on 15 January 2024.
During the year the Company received a R&D refund of $927,000 in relation to the 2023 financial year.
The Company entered into a R&D loan advance funding arrangement whereby the Company receives a
proportion of its 2024 financial year R&D refund expected based on eligible expenditure incurred during
the year. The Company received $488,361 during the year under this funding arrangement.
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
- 29 -
Your directors present their report on the entity Matsa Resources Limited (“Matsa” or the “Company”)
and its controlled entities (the “Group”) for the year ended 30 June 2024.
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 the entire year 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 $14,000,000 Norseman sale to Panoramic Resources Limited, $6,000,000
minority interest sale to Westgold Resources Limited, and $7,000,000 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 $12,000,000 to Pantoro Limited, and the $5.7M Apollo transaction.
He has been chairman of Matsa for over 13 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 28 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), Porgera (PNG) and Lawlers.
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 Blampain has not served as a Director of any other publicly listed companies during the past three
years.
Mr Andrew Chapman CA F Fin GAICD
Mr Chapman is a chartered accountant with over 30 years’ experience in publicly listed companies in
the mineral resources, oil and gas and technology sectors.
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
- 30 -
He has held Board positions as well as other senior roles including Director, Company Secretary and
Chief Financial Officer. Mr Chapman has significant experience in the areas of corporate acquisitions,
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.
COMPANY SECRETARY
Mr Chapman is also the Company Secretary of the Group. Refer to the directors’ particulars as noted
above.
PRINCIPAL ACTIVITIES
During the year the principal activities of entities within the Group 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 $4,603,386 (2023: $818,647).
The Group’s net loss for the year includes the following items:
A net loss on sale of financial assets of $7,810 (2023: nil).
A gain on sale of plant and equipment of $22,720 (2023: loss of $22,961).
Capitalised exploration and evaluation assets of $314,326 (2023: $322,419) written
off/impaired.
Share based payments expense of nil (2023: $104,060).
Income of $612,469 (2023: $95,774) relating to Research and Development tax refunds for
eligible research.
REVIEW OF FINANCIAL POSITION
The net assets attributable to the shareholders of the Company have decreased by $652,942 from 30
June 2023 to $13,067,223 at 30 June 2024.
During the financial year, $4,149,533 (before costs) was raised via the issue of 138,317,772 fully paid
ordinary shares at an issue price of $0.03 each.
Cash reserves at 30 June 2024 were $1,037,840 compared to $794,303 in the previous financial year.
GOING CONCERN
The consolidated statement of profit and loss and other comprehensive income shows that the Group
incurred a net loss of $4,603,386 for the year ended 30 June 2024 (2023: $818,647).
The consolidated statement of financial position shows that the Group had cash and cash equivalents
of $1,037,840 (2023: $794,303), a net asset position of $13,067,223 (2023: $13,720,165) and a net
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
- 31 -
working capital deficit of $1,758,384 as at 30 June 2024 (2023: surplus of $2,672,420). Net cash
outflows from operating activities as shown in the consolidated statement of cashflows were
$3,437,285 for the year ended 30 June 2024 (2023: $354,851).
The consolidated financial statements have been prepared on a going concern basis. In arriving at this
position, the directors have had regard to the fact that based on the matters noted below the Group
has, or in the director’s opinion, will have access to, sufficient cash to fund administrative and other
committed expenditure for a period of at least 12 months from the date of signing this report.
In forming this view the directors have taken into consideration the following:
The ability of the Group to obtain additional funding as it has demonstrated previously via the
capital raisings in line with the Group’s cashflow forecast;
The ability of the Group to manage discretionary expenditure and settlement of trade and
other payables in line with the Group’s cashflow forecast;
Discussions with potential lenders to secure project financing arrangements for the Devon Pit
Gold Project is currently underway as well as exploring other commercial opportunities which
will allow the Company to realise a material financial transaction;
The Company expects to submit a claim for the Australian Tax Office’s Research &
Development tax Incentive Scheme (the “Scheme”) in respect of the 2024 tax year and
expects to receive a cash refund of approximately $750,000 during the December 2024
quarter. The Company is satisfied that it meets the criteria to qualify for a cash refund and it
is confident that the expenditure to be claimed under the Scheme will satisfy the tests of
eligibility; and
$1,000,000 of the Company’s current borrowings is not due for repayment until 31 December
2024 and a discussion with the lending parties for an extension to the repayment date in line
with revenue generated from the Devon Pit Gold Mine is currently underway.
Should the Group not achieve the matters set out above there is significant uncertainty whether the
Group will continue as a going concern and therefore whether it will realise its assets and extinguish
its liabilities in the normal course of business and at the amounts stated in the consolidated financial
statements. The consolidated financial statements do not include any adjustment relating to the
recoverability or classification of recorded asset amounts or to the amounts or classification of
liabilities that might be necessary should the Group not be able to continue as a going concern and
meet its debts as and when they fall due.
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 20 employees of which 10 were full-time as at 30 June 2024 (2023: 19 full-time
equivalent employees).
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
- 32 -
REVIEW OF OPERATIONS
A full review of the operations of the Group during the year ended 30 June 2024 is included on pages
4 to 28.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
Significant changes in the state of affairs of the Group that occurred during the financial year are
disclosed in the corporate activities section of the operations review of this report.
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
On 4 July 2024 the repayment date of the two $500,000 loan advances was extended to 31 December
2024.
On 25 July 2024 shareholders approved the issue of 14,818,339 ordinary fully paid shares at $0.03
each, raising $444,550 which formed Tranche 2 of the placement announced by the Company on 29
April 2024. In addition, shareholders approved the issue of 28,823,148 unlisted options with an
exercise price of $0.07 each expiring 31 January 2026.
On 16 September 2024, the Company has undertaken a strategic share placement via the issue of
84,794,022 ordinary fully paid shares at an issue price of $0.028 per share with two corporate
participants raising $2,374,232.
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 28.
MATERIAL BUSINESS RISKS
The proposed future activities of the Group are subject to a number of risks and other factors which
may impact its future performance. Some of these risks can be mitigated by the use of safeguards and
appropriate controls. However, many of the risks are outside the control of the directors and
management of the Group and cannot be mitigated.
Exploration
Mineral exploration activities are high-risk undertakings. The future exploration activities of the Group
may be affected by a range of factors, including geological conditions, seasonal weather patterns,
unanticipated operational and technical difficulties, industrial and environmental accidents and other
factors beyond the control of the Group. There can be no assurance that exploration will result in the
discovery of further mineral deposits. Even if an apparently viable deposit is identified, there is no
guarantee that it can be economically exploited.
Capital and liquidity
In order to successfully fulfill the Group’s exploration objectives and targets, the Group will continue
to incur expenditures over the next several years. The Group will require additional capital or other
types of financing in the future to further its exploration activities. While previous capital raises have
been well-supported, there can be no assurance of the availability of future capital or favourable
financing options if and when required.
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
- 33 -
Licenses, permits and approvals
The Group has necessary statutory operational and environmental licenses, permits and approvals to
conduct ongoing exploration activities at its projects. Delays in obtaining, or the inability to obtain the
required licenses, permits and approvals may significantly impact on the Group’s exploration
activities.
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.
DIRECTORS’ MEETINGS
The number of meetings of directors held during the year and the number of meetings attended by
each director were as follows:
Directors’ Meetings
Number eligible
to attend
Number
attended
Paul Poli
6
6
Andrew Chapman
6
6
Pascal Blampain
6
6
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
$0.09 Unlisted
Options
Number of
$0.07 Unlisted
Options1
Number of
$0.07 Unlisted
Options2
Paul Poli
16,500,000
2,000,000
800,000
333,333
Andrew Chapman
1,266,667
1,500,000
333,334
-
Pascal Blampain
1,633,333
2,000,000
166,666
333,333
1 Expiry date of 7 September 2025
2 Expiry date of 31 January 2026
OPTIONS GRANTED TO DIRECTORS AND OFFICERS OF THE COMPANY
During the financial year, no options were issued to the directors or officers of the Company as part
of their remuneration.
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
- 34 -
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 2025
$0.08
15,000,000
30 November 2025
$0.09
6,000,000
30 November 2025
$0.09
3,000,000
7 September 2025
$0.07
31,833,833
7 September 2025
$0.07
1,500,000
31 January 2026
$0.07
28,823,148
1 November 2026
$0.07
5,000,000
1 November 2026
$0.10
5,000,000
96,156,981
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, no listed options were exercised, cancelled or forfeited.
During the financial year, the following options lapsed:
2,150,000 with an exercise price of $0.21
1,000,000 with an exercise price of $0.17
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
- 35 -
REMUNERATION REPORT - Audited
Principles of Compensation
This remuneration report for the year ended 30 June 2024 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 Company, and includes the four executives in the Company 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 KMP Disclosures
Details of KMP of the Company and Group are set out below:
Name
Position
Date of
Appointment
Date of
Resignation
Directors
P Poli
Executive Chairman and
Managing Director
23 December 2008
-
A Chapman
Executive Director and Company
Secretary
17 December 2009*
-
P Blampain
Executive Director
17 February 2021
-
*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.
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
- 36 -
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 KMP.
The Board assesses the appropriateness of the nature and amount of remuneration of KMP 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 KMP 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 KMP;
• attraction of quality management to the Company; and
• performance incentives which allow KMP 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 Non-Executive 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 Non-Executive Directors as agreed. The current
aggregate remuneration is $250,000 per year.
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
- 37 -
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
Non-Executive 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 Non-Executive Director on market). It is considered good governance for Non-Executive 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-Executive Directors are
entitled to receive retirement benefits and to participate in any incentive programs. There are
currently no specific incentive programs.
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 2024 and 30 June
2023 is detailed in this report.
Executive Chairman and 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 financial 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. No external advice was received during the
year.
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 years
ended 30 June 2024 and 30 June 2023 is detailed in this report.
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
- 38 -
REMUNERATION REPORT (continued)
Executive Chairman and 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 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 2024 and 30 June
2023 is detailed in this report.
Variable Remuneration – Short Term Incentive (STI)
The objective of the STI is to provide sufficient incentive to the Executives to achieve their
performance goals. The total potential STI available is set at a level such that the cost to the Group is
reasonable in the circumstances.
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 STI payments available for Executives across the Group is subject to the Board’s
discretion and approval. Payments are usually delivered as a cash bonus. During the year, no STI was
paid or awarded.
Variable Remuneration – Long Term Incentive (LTI)
The objective of the LTI plan is to reward KMP in a manner which aligns the element of remuneration
with the creation of shareholder wealth. As such LTI’s are made to KMP 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.
During the year, no options were granted to Directors and Executives.
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
- 39 -
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
KMP 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
Fixed remuneration and STI is not linked to the financial 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 Long Term Incentive Plan typically has no direct financial performance requirements but
has specified time restrictions on the exercise of options. The granting of options is in substance a
performance incentive which allows executives to share the rewards of the success of the Company.
The options have no vesting conditions and they vest immediately on grant date.
During the year, no options were issued to Directors and Executives.
Service Agreements
It is the Board’s policy that service contracts are entered into with all KMP 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 Andrew Chapman, Director and Company Secretary, has a contract of part-time employment with
the Company from 1 March 2024 (previously on full time employment). Mr Chapman receives a salary
of $112,000 (previously received $200,000 on full time employment) plus statutory superannuation.
This contract (yet to be executed) 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.
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
- 40 -
REMUNERATION REPORT (continued)
The table below shows the performance of the Group as measured by share price.
As at 30 June
2024
2023
2022
2021
2020
Closing share price
$0.025
$0.036
$0.043
$0.072
$0.155
Net comprehensive (loss)
per year ended
(4,603,386)
(818,647)
(6,028,025)
(9,654,713)
(5,235,103)
2024
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
302,200
8,600
27,610
-
338,410
-
-
Pascal Blampain2
285,578
4,875
27,610
-
318,063
-
-
Andrew Chapman3
163,128
-
17,991
-
181,119
-
-
Total
750,906
13,475
73,211
-
837,592
-
-
1 Mr Poli is a director and shareholder of Strategic Siam Co Ltd which received payments totalling $69,806 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
(disclosed as other short term benefits).
2 Mr Pascal receives travel allowance as part of his terms of employment (disclosed as other short term benefits).
3 Mr Chapman changed from full-time to part-time employment from 1 March 2024.
2023
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
292,327
5,750
25,468
22,200
345,745
6.42
6.42
Frank Sibbel2
28,000
-
-
5,550
33,550
16.54
16.54
Pascal Blampain4
272,685
13,985
25,468
22,200
334,338
6.64
6.64
Andrew Chapman
199,234
-
21,003
16,650
236,887
7.03
7.03
Total
792,246
19,735
71,939
66,600
950,520
-
-
Executives
David Fielding3
94,672
-
9,941
-
104,613
-
-
Total
94,672
-
9,941
-
104,613
-
-
1 Mr Poli is a director and shareholder of Strategic Siam Co Ltd which received payments totalling $43,809 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
(disclosed as other short term benefits).
2 Mr Sibbel resigned on 3 March 2023.
3 Mr Fielding resigned on 5 December 2022.
4 Mr Blampain receives a travel allowance as part of his terms of employment and also received a one-off leave cash-out payment during
the year (disclosed as other short term benefits).
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
- 41 -
REMUNERATION REPORT (continued)
Compensation Options Granted and Vested during the year
During the financial year, no options were issued to the KMP as part of their remuneration.
Option holdings of KMP
2024
Balance 1
July
Granted as
remune-
ration
Exercised
Net change
other*
Balance on
Resignation
Balance 30
June
Vested &
Exercisable
Not
Exercisable
No.
No.
No.
No.
No.
No.
No.
No.
P Poli
2,000,000
-
-
800,000
-
2,800,000
2,800,000
-
A Chapman
1,500,000
-
-
333,334
-
1,833,334
1,833,334
-
P Blampain
3,000,000
-
-
(833,334)
-
2,166,666
2,166,666
-
6,500,000
-
-
300,000
-
6,800,000
6,800,000
-
* Net change other refers to on market purchase of shares with free attaching options and expiry of options during the year.
2023
Balance 1
July
Granted as
remune-
ration
Exercised
Net change
other*
Balance on
Resignation
Balance 30
June
Vested &
Exercisable
Not
Exercisable
No.
No.
No.
No.
No.
No.
No.
No.
P Poli
3,390,500
2,000,000
-
(3,390,500)
-
2,000,000
-
2,000,000
A Chapman
1,615,500
1,500,000
-
(1,615,500)
-
1,500,000
-
1,500,000
F Sibbel
1,552,575
500,000
-
(1,500,000)
(552,575)
-
-
-
P Blampain
1,000,000
2,000,000
-
-
-
3,000,000
-
3,000,000
D Fielding
742,797
-
-
-
(742,797)
-
-
-
8,301,372
6,000,000
-
(6,506,000)
(1,295,372)
6,500,000
-
6,500,000
*Net change other refers to expiry of options during the year.
Shareholdings of KMP
2024
Balance 1 July
Granted as
remuneration
Options
exercised
Net change
other*
Balance on
resignation
Balance
30 June
No.
No.
No.
No.
No.
No.
P Poli
13,900,000
-
-
1,600,000
-
15,500,000
A Chapman
600,000
-
-
666,667
-
1,266,667
P Blampain
300,000
-
-
333,333
-
633,333
14,800,000
-
-
2,600,000
-
17,400,000
*Net change other refers to on market purchases during the year.
2023
Balance 1 July
Granted as
remuneration
Options
exercised
Net change
other**
Balance on
resignation
Balance
30 June
No.
No.
No.
No.
No.
No.
P Poli
13,900,000
-
-
-
-
13,900,000
A Chapman
300,000
-
-
300,000
-
600,000
F Sibbel
700,000
-
-
500,000
(1,200,000)
-
P Blampain
300,000
-
-
-
-
300,000
D Fielding
941,522
-
-
-
(941,522)
-
16,141,522
-
-
800,000
(2,141,522)
14,800,000
*Net change other refers to on market purchases during the year.
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
- 42 -
REMUNERATION REPORT (continued)
Other transactions and balances with Key Management Personnel
(a) P Poli is a Director of Bulletin Resources Limited. The Group has an agreement with Bulletin
to provide accounting, technical and administrative services on an arms-length basis. In the
current year $123,717 has been charged to Bulletin for these services (2023: $138,000).
At 30 June 2024 there was an outstanding balance of $19,946 (2023: $25,300) for Bulletin.
(b) P Poli is a director and controlling shareholder of West-Sure Group Pty Ltd which the Group
sub-lets storage space from. In the current year $3,982 has been charged to the Group for this
service (2023: $6,371).
At 30 June 2024, there was an outstanding balance of $4,380 (2023: $1,752) payable to West-
Sure.
There were no loans made to KMP and their related parties during the financial year and no
outstanding loan balances as at the date of this report.
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.
INDEMNIFYING AUDITORS
To the extent permitted by law, the Group has agreed to indemnify its auditors, Nexia Perth Audit
Services Pty Ltd, as part of the terms of its audit engagement agreement against claims by third parties
arising from the audit (for an unspecified amount). No payment has been made to indemnify Nexia
Perth Audit Services Pty Ltd during and/or since the year ended 30 June 2024.
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.
MATSA RESOURCES LIMITED
DIRECTORS’ REPORT
- 43 -
ROUNDING OF AMOUNTS
The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian
Securities and Investments Commission, relating to ‘rounding off’. Amounts in this report have been
rounded off in accordance with that Corporations Instrument to the dollar.
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 Directors are 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 2024:
Taxation services
$13,700
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration for the year ended 30 June 2024 has been received and can
be found on page 44.
Signed in accordance with a resolution of the Board of Directors.
Paul Poli
Executive Chairman
Dated this 17th day of September 2024
- 44 -
To the Board of Directors of Matsa Resources Limited
Auditor’s Independence Declaration under section 307C of the Corporations Act 2001
As lead auditor for the audit of the financial statements of Matsa Resources Limited for the financial year
ended 30 June 2024, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
(a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(b)
any applicable code of professional conduct in relation to the audit.
Yours sincerely
Nexia Perth Audit Services Pty Ltd
Michael Fay
Director
Perth, Western Australia
17 September 2024
MATSA RESOURCES LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED
30 JUNE 2024
- 45 -
Note
2024
$
2023*
$
Continuing operations
Other income
5(a)
735,016
5,341,460
Net gain on sale of fixed assets
22,720
(22,961)
Net loss on sale of financial assets
(7,810)
-
Depreciation expense
5(d)
(269,931)
(477,127)
Salaries and employment benefits expenses
5(e)
(1,380,674)
(1,523,049)
Exploration and expenditure written-off/provided for
9
(314,326)
(322,419)
Care and maintenance
(1,461,017)
(1,485,013)
Other administration expenses
5(e)
(1,257,612)
(1,571,209)
Share based payments expense
25
-
(104,060)
Results from operating activities
(3,933,634)
(164,378)
Finance income
5(b)
2,196
4,681
Finance costs
5(c)
(671,948)
(658,950)
Net finance cost
(669,752)
(654,269)
Loss before income tax expense
(4,603,386)
(818,647)
Income tax expense
6
-
-
Net loss for the year
(4,603,386)
(818,647)
*Comparative information has been re-presented due to a component of the Group ceasing to be
classified as asset held for sale, therefore the result of the operations of the component previously
classified as discontinued operations has been reclassified and included in the continuing operations.
See note 19.
The accompanying notes form part of consolidated financial statements.
MATSA RESOURCES LIMITED
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME FOR THE YEAR
ENDED 30 JUNE 2024
- 46 -
Note
2024
$
2023*
$
Net loss for the year
(4,603,386)
(818,647)
Other comprehensive income
-
-
Total comprehensive loss for the year
(4,603,386)
(818,647)
Loss for the year is attributable to:
Owners of the Company
(4,603,386)
(819,031)
Non-controlling interest
-
384
(4,603,386)
(818,647)
Total comprehensive loss for the year is attributable to:
Owners of the Company
(4,603,386)
(819,031)
Non-controlling interest
-
384
(4,603,386)
(818,647)
Earnings per share:
Basic loss per share attributable to ordinary equity holders of
the Company (cents per share)
18
(0.97)
(0.20)
Earnings per share:
Diluted loss per share attributable to ordinary equity holders
of the Company (cents per share)
18
(0.97)
(0.20)
*Comparative information has been re-presented due to a component of the Group ceasing to be
classified as asset held for sale, therefore the result of the operations of the component previously
classified as discontinued operations has been reclassified and included in the continuing operations.
See note 19.
The accompanying notes form part of these consolidated financial statements.
MATSA RESOURCES LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2024
- 47 -
Note
2024
2023
$
$
Current assets
Cash and cash equivalents
22
1,037,840
794,303
Trade and other receivables
7
355,767
237,340
Other assets
8
163,649
146,596
Assets classified as held for sale
19
-
6,565,347
Total current assets
1,557,256
7,743,586
Non-current assets
Other assets
8
287,363
367,363
Other receivables
7
-
200,000
Exploration and evaluation assets
9
21,192,194
14,532,559
Property, plant and equipment
10
208,824
296,760
Right-of-use assets
11
30,743
94,651
Total non-current assets
21,719,124
15,491,333
Total assets
23,276,380
23,234,919
Current liabilities
Trade and other payables
12
1,250,089
1,478,057
Borrowings
13
1,561,160
590,783
Lease liabilities
11
33,679
64,864
Provisions
14
470,712
286,630
Liabilities associated with assets held for sale
19
-
2,650,832
Total current liabilities
3,315,640
5,071,166
Non-current liabilities
Borrowings
13
3,988,571
3,992,621
Lease liabilities
11
-
33,679
Provisions
14
2,904,946
417,288
Total non-current liabilities
6,893,517
4,443,588
Total liabilities
10,209,157
9,514,754
Net assets
13,067,223
13,720,165
Equity
Issued capital
15
69,483,957
65,596,745
Reserves
16
10,381,132
10,317,900
Accumulated losses
17
(66,876,554)
(62,273,168)
Total equity attributable to equity holders
of the Company
12,988,535
13,641,477
Non-controlling interests
78,688
78,688
Total equity
13,067,223
13,720,165
The accompanying notes form part of these consolidated financial statements.
MATSA RESOURCES LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2024
- 48 -
Issued
Capital
Ordinary
$
Accumulated
Losses
$
Equity
Settled
Benefits
Reserve
$
Total
$
Non-
controlling
interest
$
Total
$
Balance at 1 July
2022
63,892,578
(61,454,137) 10,028,515
12,466,956
78,304
12,545,260
Comprehensive
income/(loss) for the
year
-
(819,031)
-
(819,031)
384
(818,647)
Total comprehensive
income/(loss) for the
year
-
(819,031)
-
(819,031)
384
(818,647)
Transactions with
owners recorded
directly in equity
Issue of share capital
2,016,218
-
-
2,016,218
-
2,016,218
Share issue costs
(312,051)
-
-
(312,051)
-
(312,051)
Issue of options
-
-
1,500
1,500
-
1,500
Share based
payment
-
-
287,885
287,885
-
287,885
Balance at 30 June
2023
65,596,745
(62,273,168) 10,317,900
13,641,477
78,688
13,720,165
Balance at 1 July
2023
65,596,745
(62,273,168) 10,317,900
13,641,477
78,688
13,720,165
Comprehensive
income/(loss) for the
year
-
(4,603,386)
-
(4,603,386)
-
(4,603,386)
Total comprehensive
income/(loss) for the
year
-
(4,603,386)
-
(4,603,386)
-
(4,603,386)
Transactions with
owners recorded
directly in equity
Issue of share capital
4,153,583
-
-
4,153,583
-
4,153,583
Share issue costs
(266,371)
-
-
(266,371)
-
(266,371)
Share based
payment
-
-
63,232
63,232
-
63,232
Balance at 30 June
2024
69,483,957
(66,876,554) 10,381,132
12,988,535
78,688
13,067,223
The accompanying notes form part of consolidated financial statements.
MATSA RESOURCES LIMITED
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2024
- 49 -
Note
2024
2023*
$
$
Cash flows from operating activities
Other income
166,774
4,294,517
R&D tax incentive refund
612,469
95,774
Payments to suppliers and employees
(4,218,724)
(4,749,823)
Interest received
2,196
4,681
Net cash used in operating activities
22
(3,437,285)
(354,851)
Cash flows from investing activities
Payments for financial assets
-
(80,000)
Purchase of plant and equipment
-
(156,340)
Exploration and evaluation assets
(535,910)
(1,911,937)
Proceeds on sale of plant and equipment
31,928
98,273
Proceeds on sale of financial assets
26,973
-
Net cash used in investing activities
(477,009)
(2,050,004)
Cash flows from financing activities
Proceeds from issue of shares
15
4,149,533
1,976,468
Proceeds from issue of options
-
1,500
Costs of issue
15
(203,139)
(128,226)
Repayment of lease liabilities
22
(72,877)
(89,072)
Repayment of borrowings
22
(345,048)
(4,120,040)
Proceeds from borrowings
22
1,236,833
4,500,000
Interest paid
(607,471)
(513,955)
Net cash provided by financing activities
4,157,831
1,626,675
Net increase/(decrease) in cash and cash equivalents
243,537
(778,180)
Cash and cash equivalents at beginning of financial
year
794,303
1,572,483
Cash and cash equivalents at end of financial year
22
1,037,840
794,303
*Comparative information has been re-presented due to a component of the Group ceasing to be
classified as asset held for sale, therefore the result of the operations of the component previously
classified as discontinued operations has been reclassified and included in the continuing operations.
See note 19.
The accompanying notes form part of these consolidated financial statements.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 50 -
1.
CORPORATE INFORMATION
The consolidated financial statements of Matsa Resources Limited (the “Company” or “Matsa”) and
its controlled entities (the “Group”) for the year ended 30 June 2024 were authorised for issue in
accordance with a resolution of the Board of Directors on 17 September 2024.
Matsa Resources Limited 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.
2.
MATERIAL 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.
The consolidated financial report is presented in Australian dollars.
Rounding Of Amounts
The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian
Securities and Investments Commission, relating to ‘rounding off’. Amounts in this report have been
rounded off in accordance with that Corporations Instrument to the dollar.
(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 2023 the Group has adopted all the Standards and Interpretations mandatory for annual
reporting periods beginning on or after 1 July 2023. The adoption of any new and revised standards
and interpretations effective from 1 July 2023 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 2024
The directors have also reviewed all Standards and Interpretations in issue not yet adopted for the
year ended 30 June 2024. 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.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 51 -
2.
MATERIAL ACCOUNTING POLICIES (Continued)
(d)
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company 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 in control
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 the Company controls
another entity.
The financial statements of the subsidiaries are prepared for the same reporting period as the
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 Group and cease
to be consolidated from the date on which control is transferred out of the Group.
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 statement of profit and loss and other comprehensive income shows that the Group
incurred a net loss of $4,603,386 for the year ended 30 June 2024 (2023: $818,647).
The consolidated statement of financial position shows that the Group had cash and cash equivalents
of $1,037,840 (2023: $794,303), a net asset position of $13,067,223 (2023: $13,720,165) and a net
working capital deficit of $1,758,384 as at 30 June 2024 (2023: surplus of $2,672,420). Net cash
outflows from operating activities as shown in the consolidated statement of cashflows were
$3,437,285 for the year ended 30 June 2024 (2023: $354,851).
The consolidated financial statements have been prepared on a going concern basis. In arriving at this
position, the directors have had regard to the fact that based on the matters noted below the Group
has, or in the director’s opinion, will have access to, sufficient cash to fund administrative and other
committed expenditure for a period of at least 12 months from the date of signing this report.
In forming this view the directors have taken into consideration the following:
The ability of the Group to obtain additional funding as it has demonstrated previously via the
capital raisings in line with the Group’s cashflow forecast;
The ability of the Group to manage discretionary expenditure and settlement of trade and
other payables in line with the Group’s cashflow forecast;
Discussions with potential lenders to secure project financing arrangements for the Devon Pit
Gold Project is currently underway as well as exploring other commercial opportunities which
will allow the Company to potentially realise a material financial transaction;
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 52 -
2.
MATERIAL ACCOUNTING POLICIES (Continued)
(e)
Going Concern (continued)
The Company expects to submit a claim for the Australian Tax Office’s Research &
Development tax Incentive Scheme (the “Scheme”) in respect of the 2024 tax year and
expects to receive a cash refund of approximately $750,000 during the December 2024
quarter. The Company is satisfied that it meets the criteria to qualify for a cash refund and it
is confident that the expenditure to be claimed under the Scheme will satisfy the tests of
eligibility; and
$1,000,000 of the Company’s current borrowings is not due for repayment until 31 December
2024 and a discussion with the lending parties for an extension to the repayment date in line
with revenue generated from the Devon Pit Gold Mine is currently underway.
Should the Group not achieve the matters set out above there is significant uncertainty whether the
Group will continue as a going concern and therefore whether it will realise its assets and extinguish
its liabilities in the normal course of business and at the amounts stated in the consolidated financial
statements. The consolidated financial statements do not include any adjustment relating to the
recoverability or classification of recorded asset amounts or to the amounts or classification of
liabilities that might be necessary should the Group not be able to continue as a going concern and
meet its debts as and when they fall due.
(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.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 53 -
2.
MATERIAL ACCOUNTING POLICIES (Continued)
(g)
Business combinations (continued)
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.
(h)
Foreign currency transactions and balances
(i) Functional and presentation currency
The functional currency of each entity within the Group 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 Company’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.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 54 -
2.
MATERIAL ACCOUNTING POLICIES (Continued)
(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.
The Group’s financial risk management objectives and policies are set out in Note 24.
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 Company’s business model for managing the financial assets and the
contractual terms of the cash flows.
Other
Other non-derivative financial instruments are measured at amortised cost using the effective interest
method.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 55 -
2.
MATERIAL ACCOUNTING POLICIES (Continued)
(j)
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
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.
(k)
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.
(l)
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.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 56 -
2.
MATERIAL ACCOUNTING POLICIES (Continued)
(m)
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 Group 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.
(n)
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.
(o)
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.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 57 -
2.
MATERIAL ACCOUNTING POLICIES (Continued)
(p)
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.
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.
(q)
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.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 58 -
2.
MATERIAL ACCOUNTING POLICIES (Continued)
(r)
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.
(s)
Rehabilitation costs
The Group 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.
(t)
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.
(u)
Borrowing costs
Borrowing costs are recognised as an expense when incurred unless they relate to qualifying assets in
which case they are capitalised.
(v)
Employee benefits
Provision is made for the Group’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.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 59 -
2.
MATERIAL ACCOUNTING POLICIES (Continued)
(w)
Provisions
Provisions are recognised when the Group 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.
(x)
Share-based payment transactions
The Group 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 Group 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.
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 25.
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.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 60 -
2.
MATERIAL ACCOUNTING POLICIES (Continued)
(x)
Share-based payment transactions (continued)
If a non-vesting condition is within the control of the Group, 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 Group, 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.
(y)
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:
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 when the rights to receipt of refunds from the Australian Taxation Office for
research and development expenditure incurred is established.
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.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 61 -
2.
MATERIAL ACCOUNTING POLICIES (Continued)
(z)
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:
•
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.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 62 -
2.
MATERIAL ACCOUNTING POLICIES (Continued)
(aa) 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.
(ab) 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.
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.
(ac)
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.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 63 -
3.
CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the financial statements requires management to make judgements, estimates
and assumptions that affect the reported amounts in the financial statements. Management
continually evaluates its judgements and estimates in relation to assets, liabilities, contingent
liabilities, revenue and expenses. Management bases its judgements 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 Group 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 25. 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 Group 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.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 64 -
3.
CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS (Continued)
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.”
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.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the Group considers it
is probable that future taxable amounts will be available to utilise those temporary differences and
losses.
Mine rehabilitation provision
The Group assesses its mine rehabilitation provision on an annual basis in accordance with the
accounting policy stated in Note 2(s). 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.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 65 -
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 statement of 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.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 66 -
4.
SEGMENT REPORTING (Continued)
Information about reportable segments
Information relating to each reportable segment is shown below.
Reportable Segments
Australia
Thailand
Total
2024
$
$
$
External income
734,984
32
735,016
Segment revenue
734,984
32
735,016
Segment loss before tax
3,910,173
693,213
4,603,386
Interest Income
1,833
363
2,196
Interest expense
671,948
-
671,948
Depreciation expense
253,689
16,242
269,931
Segment assets
22,661,445
614,935
23,276,380
Capital expenditure
-
-
-
Segment liabilities
10,162,926
46,231
10,209,157
2023*
$
$
$
External revenues
5,341,460
-
5,341,460
Segment revenue
5,341,460
-
5,341,460
Segment loss before tax
(163,528)
(655,119)
(818,647)
Interest Income
4,581
100
4,681
Interest expense
(658,950)
-
(658,950)
Depreciation expense
(471,410)
(5,717)
(477,127)
Segment assets
22,676,798
558,121
23,234,919
Capital expenditure
75,169
81,171
156,340
Segment liabilities
9,514,633
121
9,514,754
*Comparative information has been re-presented due to a component of an entity ceasing to be
classified as asset held for sale, therefore the result of the operations of the component previously
classified as discontinued operations has been reclassified and included in continuing operations. See
note 19.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 67 -
2024
2023*
$
$
5. Income and expenses
The loss before income tax includes the following income
whose disclosure is relevant in explaining the performance of
the Group:
(a) Other income
R&D tax incentive refund (ii)
612,469
95,774
Joint venture payment (i)
-
4,000,000
Other income
122,547
1,245,686
735,016
5,341,460
(i) On 11 November 2022, the Company executed a formal binding profit-sharing joint venture
agreement (JVA) with Linden Gold Alliance Limited (LGA), in respect of a joint venture over the
Devon Gold Pit. During the previous year, the Company received an upfront non-refundable
prepayment of $4M cash from LGA for a 50% profit share in the Devon Pit.
(ii) During the year, the Company received a R&D tax incentive refund of $927,140, of which
$314,671 was set-off against capitalised exploration and evaluation expenditure.
*Comparative information has been re-presented due to a component of the Group ceasing to be
classified as asset held for sale, therefore the result of the operations of the component previously
classified as discontinued operations has been reclassified and included in continuing operations. See
note 19.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 68 -
2024
2023*
$
$
5. Income and expenses (Continued)
(b) Finance income
Interest earned
2,196
4,681
(c) Finance cost
Interest on lease liabilities and borrowings
619,749
514,358
Unwinding of discount on rehabilitation provision
52,199
144,592
671,948
658,950
(d) Expenses included in the statement of comprehensive
income
Depreciation and amortisation expenses
Property plant and equipment
206,023
404,598
Right-of-use assets
63,908
72,529
269,931
477,127
(e) Other expenses
(i) Employee benefits expense
Salaries and wages (including bonus)
1,311,212
1,448,730
Superannuation expenses
69,462
74,319
Total employee benefits expense
1,380,674
1,523,049
(ii) Administration and other expenses
Operating lease rentals
3,982
6,371
Administration expenses
1,253,630
1,564,838
1,257,612
1,571,209
*Comparative information has been re-presented due to a component of the Group ceasing to be
classified as asset held for sale, therefore the result of the operations of the component previously
classified as discontinued operations has been reclassified and included in continuing operations. See
note 19.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 69 -
2024
2023
$
$
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
(4,603,386)
(818,647)
Income tax expense calculated at 25% (2023: 25%)
(1,150,847)
(204,662)
Non-deductible expenses
3,408
32,477
Non-assessable income
(153,117)
(23,944)
Effect of temporary differences not recognised in current year
73,639
(604,111)
Effect of temporary differences that would be recognised
directly in equity
(66,593)
(78,013)
Adjustments recognised in the current year in relation to the
current tax of previous years
1,293,510
878,253
Income tax expense
-
-
The tax rate used in the above reconciliation is the corporate tax rate of 25% (2023: 25%) payable by
Australian corporate entities on taxable profits under Australian tax law.
2024
2023
$
$
Unrecognised deferred tax assets/(liabilities)
The following deferred tax assets have not been brought to
account:
Tax losses - revenue
13,059,294
10,686,968
Investments
Temporary differences - exploration
(4,237,161)
(2,028,174)
Section 40-880 expenses
165,108
211,186
Other temporary differences
277,089
242,043
9,264,330
9,112,023
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.
As at 30 June 2024, the Company had carried forward revenue losses of $52,237,175 (2023:
$42,747,873). These losses remain available indefinitely for offset against future taxable profits of the
Company provided certain test criteria for their deductibility are met.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 70 -
2024
2023
$
$
7. Trade and other receivables
Current
Amounts receivable from Australian Taxation Authorities
32,846
80,580
Other receivables
122,921
156,760
Amounts receivable from sale of Lake Rebecca (i)
200,000
-
355,767
237,340
Non-current
Amounts receivable from sale of Lake Rebecca (i)
-
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 $5,600,000. The
Company’s share of the consideration amount to $1,200,000. The remaining receivable of
$200,000 is expected to be settled in 2025.
2024
2023
$
$
8. Other assets
Current
Prepayments
130,499
146,596
Other financial assets (ii)
33,150
-
163,649
146,596
Non-current
Deposits held (i)
287,363
287,363
Other financial assets (ii)
-
80,000
287,363
367,363
(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.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 71 -
8. Other assets (Continued)
(ii) Movements in other financials assets are as follow:
2024
2023
$
$
Balance at beginning of year
80,000
-
Additions
-
80,000
Proceeds from sale (net of transaction cost)
(26,973)
-
Loss on sale of financial assets
(7,810)
-
Net change in investments
(12,067)
-
Balance at end of year
33,150
80,000
In 2023, the Company acquired unlisted shares in Linden for a consideration of $80,000. During the
year, Linden was taken over by Brightstar Resources Limited (Brightstar). The Company received 3.45
million Brightstar shares for shares held in Linden. Brightstar is listed in the Australian Securities
Exchange. On 24 June 2024, the Company sold 1.5 million Brightstar shares for a consideration of
$26,973. At 30 June 2024, the Company’s investment in Brightstar was $33,150 which was based on
Brightstar’s quoted share price.
2024
2023
$
$
9. Exploration and evaluation assets
Exploration expenditure capitalised at cost
-exploration and evaluation phase
21,192,194
14,532,559
21,192,194
14,532,559
Movements in carrying amounts
Exploration and evaluation phase
Balance at beginning of year
14,532,559
10,627,811
Acquisition of tenements
32,900
-
Exploration and evaluation expenditure incurred
503,010
1,571,204
Expenditure written off/impaired (i)
(314,326)
(322,419)
Transfer from assets held for sale (note 19)
6,438,051
2,655,963
Balance at end of year
21,192,194
14,532,559
(i)
During the year, the Company surrendered several tenements and exploration costs of $314,326
(2023: $322,419) previously capitalised for these tenements were written off and recognised in
the consolidated statement of profit or loss and other comprehensive income. No further
impairment was recorded during the year.
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. Other
than exploration costs written off in the year, the Group did not identify any other triggers of
impairment.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 72 -
2024
2023
$
$
10. Property, plant and equipment
Plant and equipment at cost
2,555,018
1,883,943
Accumulated depreciation
(2,346,194)
(1,587,183)
208,824
296,760
Total property, plant and equipment
208,824
296,760
Movements in carrying amounts
Plant and
Equipment
Total
$
$
Consolidated
Balance 30 June 2022
538,564
538,564
Additions
156,340
156,340
Disposals
(121,233)
(121,233)
Depreciation expense
(276,911)
(276,911)
Balance 30 June 2023
296,760
296,760
Disposals
(9,209)
(9,209)
Transfer to asset held for sale (note 19)
127,296
127,296
Depreciation expense
(206,023)
(206,023)
Balance 30 June 2024
208,824
208,824
11.
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
Equipment
$
Premises
$
Motor
Vehicles
$
Total
$
Cost
44,823
105,404
119,297
306,297
Accumulated depreciation
(44,823)
(74,661)
(119,297)
(275,554)
As at 30 June 2024
-
30,743
-
30,743
Reconciliation
Equipment
$
Premises
$
Motor
Vehicles
$
Total
$
As at 1 July 2023
11,206
83,445
-
94,651
Depreciation expense
(11,206)
(52,702)
-
(63,908)
As at 30 June 2024
-
30,743
-
30,743
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 73 -
11.
Right-of-use-assets & lease liabilities (Continued)
Lease liabilities
Set out below are the carrying amounts of lease liabilities.
Carrying Value 2024
Equipment
$
Premises
$
Total
$
Current liabilities
-
33,679
33,679
Non-current liabilities
-
-
-
As at 30 June 2024
-
33,679
33,679
Carrying Value 2023
Equipment
$
Premises
$
Total
$
Current liabilities
12,887
51,977
64,864
Non-current liabilities
-
33,679
33,679
As at 30 June 2023
12,887
85,656
98,543
A maturity analysis of future minimum lease payments is presented in Note 24.
Movement for the period
Equipment
$
Premises
$
Total
$
As at 1 July 2023
12,887
85,656
98,543
Additions
-
-
-
Repayments
(14,557)
(58,320)
(72,877)
Interest
1,670
6,343
8,013
As at 30 June 2024
-
33,679
33,679
2024
2023
$
$
12.
Trade and other payables
Unsecured liabilities
Trade payables
499,210
935,424
Sundry creditors and accrued expenses
750,879
542,633
1,250,089
1,478,057
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 74 -
2024
2023
$
$
13.
Borrowings
Current
Secured liabilities
- Loan (i)
1,486,833
500,000
Unsecured liabilities
- Insurance premium finance
74,327
90,783
1,561,160
590,783
Non-current
Secured liabilities
- Loan (i)
3,988,571
3,992,621
3,988,571
3,992,621
(i)
Reconciliation of loan
2024
2023
$
$
Balance at beginning of year
4,492,621
3,988,172
Additions
1,236,833
4,500,000
Repayment
(250,000)
(4,000,000)
Interest capitalised
(4,050)
4,449
Balance at end of year
5,475,404
4,492,621
(i) On 1 December 2022, the Company executed new loan agreements with its existing two
independent lenders who have each provided a $2,000,000 facility (the “Finance Facility”). The
key terms of the Finance Facility are as follows:
Principal Amount: $4,000,000
Interest Rate:
12% per annum paid monthly in arrears
Term:
$4,000,000 repayable by 30 November 2025
Security:
The Finance Facility is secured by a mortgage over the Fortitude gold project
tenements.
Fee:
Issue of 150,000 fully paid ordinary shares at the commencement date and
each anniversary date of the Finance Facility while it remains outstanding.
(ii) On 28 June 2023, the Company entered into a short-term loan agreement with an existing lender
for an additional $750,000 loan advance of which $500,000 was drawn down as at 30 June 2023
(the “Short Term Loan”). The Short Term Loan was fully drawn down on 12 July 2023. The Sort
Term Loan which was initially repayable by 30 September 2023 was extended for a further three
months to 31 December 2023 on 28 September 2023. On 2 October 2023, the Company made a
repayment of $250,000. During the year, the repayment date for the remaining $500,000 was
extended to 31 December 2024.
(iii) On 15 December 2023, the Company entered into a short-term loan agreement with an existing
lender for a second additional $500,000 loan advance (the “Second Short Term Loan”). During the
year, the repayment date for the Second Short Term Loan was extended to 31 December 2024.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 75 -
13.
Borrowings (Continued)
All other key terms of the short-term loan include:
Interest Rate:
12% per annum paid monthly in arrears
Security:
The Short Term loan and the Second Short Term Loan are secured by a
mortgage over the Fortitude gold project tenements
A Facility Fee of 150,000 shares was issued to the lenders on or about 15 January 2024.
(iv) During the year, the Company received net principal amounts totalling $486,833 in R&D loan
funding which relates to the R&D refund expected based on eligible expenditure incurred in the
2024 financial year. The R&D refund (plus interest of 15% per annum) is repayable upon receipt
of the actual proceeds of the R&D refund following the finalisation and lodgement of the 2024
R&D return which is expected to be completed during the December 2024 quarter.
2024
2023
$
$
14.
Provisions
Current
Provision for annual leave
269,337
286,630
Provision for long service leave
201,375
-
470,712
286,630
Non-current
Provision for long service leave
-
215,373
Provision for mine restoration
2,904,946
201,915
2,904,946
417,288
Movement in long service leave provision:
Balance at beginning of year
215,373
201,009
(Decrease)/increase in provision
(13,998)
14,364
Balance at end of year
201,375
215,373
Movement in provision for mine restoration:
Balance at beginning of year
201,915
201,915
Transfer to liabilities associated with assets held for sale (note
19)
2,650,832
-
Increase in provision
52,199
-
Balance at end of year
2,904,946
201,915
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 76 -
2024
2023
2024
2023
15.
Issued capital
No.
No.
$
$
Fully paid ordinary shares
550,475,142
412,007,370
69,483,957
65,596,745
Ordinary shares
At the beginning of reporting period
412,007,370
358,954,620
65,596,745
63,892,578
Share placements
66,666,667
52,000,000
2,000,000
1,976,000
Share placements
71,651,105
-
2,149,533
-
Shares issued as a facility fee
150,000
150,000
4,050
5,550
Shares issued in lieu of payment
-
900,000
-
34,200
Exercise of options
-
2,750
-
468
Transaction costs (i)
-
-
(266,371)
(312,051)
At reporting date
550,475,142
412,007,370
69,483,957
65,596,745
(i)
During the year, 10,000,000 share options (Tranche 1 - 5,000,000 options with an exercise price
of $0.07 each and Tranche 2 - 5,000,000 options with an exercise price of $0.10 each), were
issued to Wentworth Capital as part of their fee for acting as Lead Managers to the share
placement. The options vest immediately at the date of grant. The contractual life of each
option is three years and there is no cash settlement of the options. The fair value of the options
estimated at $63,232 (2023: $183,825) was recognised in equity as share issue costs in the
consolidated statement of financial position.
Ordinary shares participate in dividends and the proceeds on winding up of the Company 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.
Options
The movement of the options on issue during the financial year is set out below:
Exercise
Price
Expiry Date
Balance at
beginning of year
No.
Issued
No.
Exercised
No.
Lapsed
No.
Balance at
end of
year
No.
$0.08
30/11/2025
15,000,000
-
-
-
15,000,000
$0.09
30/11/2025
6,000,000
-
-
-
6,000,000
$0.09
30/11/2025
3,000,000
-
-
-
3,000,000
$0.21
31/10/2023
2,150,000
-
-
(2,150,000)
-
$0.17
30/11/2023
1,000,000
-
-
(1,000,000)
-
$0.07
07/09/2025
-
31,833,333
-
-
31,833,333
$0.07
07/09/2025
-
1,500,000
-
-
1,500,000
$0.07
01/11/2026
-
5,000,000
-
-
5,000,000
$0.10
01/11/2026
-
5,000,000
-
-
5,000,000
27,150,000
43,333,333
-
(3,150,000)
67,333,333
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 77 -
2024
2023
$
$
16.
Reserves
Equity settled transaction
10,381,132
10,317,900
10,381,132
10,317,900
Equity settled transaction reserve
Balance at beginning of financial year
10,317,900
10,028,515
Share based payment (Note 25(i))
63,232
289,385
Balance at end of financial year
10,381,132
10,317,900
The equity settled transaction reserve records share-based payment transactions.
2024
2023
$
$
17.
Accumulated losses
Accumulated losses at beginning of financial year
62,273,168
61,454,137
Loss for the year
4,603,386
819,031
Accumulated losses at end of financial year
66,876,554
62,273,168
18.
(Loss)/earnings per share
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.
2024
2023
$
$
The (loss)/earnings and weighted average number of ordinary
shares used in the calculation of loss per share are as follows:
Loss for the year
4,603,386
818,647
Basic loss per share (cents per share)
0.97
0.20
Loss for the year
4,603,386
818,647
Diluted loss per share (cents per share)
0.97
0.20
No.
No.
Weighted average number of ordinary shares
476,261,448
402,704,243
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 78 -
19.
Assets classified as held for sale and discontinued operations
During the year, the Company realigned its focus with regards to the Red October Gold Project. As a
result of this realignment, the Company has begun a mining review of the Red October Gold Project
as well as evaluating further exploration opportunities. Consequently, as at 30 June 2024, the Red
October Gold Project is no longer considered as an asset held for sale.
In accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations, the carrying
value of assets and liabilities previously classified as assets held for sale and liabilities associated with
assets held for sale in the consolidated statement of financial position as at 30 June 2023 has been
reclassified to Capitalised exploration expenditure, Plant and equipment and Rehabilitation provision
as at 30 June 2024.
Assets held for sale:
2024
2023
$
$
Assets held for sale - Capitalised exploration expenditure
6,438,051
6,438,051
Assets held for sale - Plant and equipment
127,296
127,296
Total
6,565,347
6,565,347
Reclassified to Exploration expenditure (note 9)
(6,438,051)
-
Reclassified to Plant & equipment (note 10)
(127,296)
-
Adjusted total
-
6,565,347
Liabilities associated with assets held for sale:
2024
2023
$
$
Liabilities associated with assets held for sale - Rehabilitation
provision
2,650,832
2,650,832
Total
2,650,832
2,650,832
Reclassified to Rehabilitation provision (note 14)
(2,650,832)
-
Adjusted total
-
2,650,832
Comparative information in the consolidated statement of profit and loss has been re-presented due
to Red October Gold Project ceasing to be classified as asset held for sale, therefore the result of the
operations of this component previously classified as discontinued operations has been reclassified
and included in continuing operations.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 79 -
20.
Commitments and contingencies
Exploration and expenditure commitments
In order to maintain the mineral tenements in which the Group is involved, the Group 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 $2,325,250 (2023: $2,236,400). 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 2024 (30 June 2023: $nil).
21.
Subsidiaries
Country of Incorporation
Percentage Owned (%)
2024
2023
Parent Entity
Matsa Resources Limited
Australia
Subsidiary
Matsa Gold Pty Ltd
Australia
100
100
Killaloe Minerals Pty Ltd
Australia
100
100
Lennard Shelf Exploration Pty Ltd
Australia
100
100
Red October Gold Pty Ltd
Australia
100
100
Australian Strategic and Precious
Metals Investment Pty Ltd**
Australia
-
100
Matsa Resources (Aust) Pty Ltd
Australia
100
100
Matsa Iron Pty Ltd**
Australia
-
100
Cundeelee Pty Ltd
Australia
100
100
Matsa (Thailand) Co Ltd
Thailand
100
100
PVK Mining Loei Co Ltd
Thailand
100
100
Khlong Tabaek Co Ltd
Thailand
95
95
Paisali Mining Co Ltd
Thailand
95
95
Siam Copper Resources Co Ltd
Thailand
100
100
Loei Mining Co Ltd
Thailand
100
100
Azure Circle Co Ltd
Thailand
100
100
Forward Metals Co Ltd
Thailand
100
100
Thai EV Minerals Co Ltd
Thailand
100
100
Thaiwest New Metals Co Ltd
Thailand
100
-
** Deregistered on 16 April 2024.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 80 -
22.
Cash flow information
Reconciliation of cash and cash equivalents
Cash and cash equivalents at the end of the financial year as shown in the consolidated statement of
cash flows is reconciled to the related items in the consolidated statement of financial position as
follows:
2024
2023
$
$
Cash and cash equivalents
1,037,840
794,303
Reconciliation of loss for year to net cash flows from operating activities
2024
2023
$
$
Loss for the year
(4,603,386)
(818,647)
Non-cash flows in loss from ordinary activities:
Share-based payments
-
104,060
Depreciation
269,931
477,127
Exploration expenditure written off/impaired
314,326
322,419
Net (gain)/loss on disposal of plant and equipment
(22,720)
22,961
Net loss on sale of financial assets
7,810
-
Unrealised loss on financial assets at fair value
12,067
-
Interest expense classified as financing cash flow
619,749
514,358
Amortisation
-
Changes in assets and liabilities:
Increase/(decrease) in receivables
55,315
(764)
Decrease in trade creditors and accruals
(111,285)
(1,126,662)
Increase in provisions
20,908
150,297
Cash used in operating activities
(3,437,285)
(354,851)
Non-cash investing and financing activities
2024
2023
$
$
Payments for share issue costs through issuance of options
(Note 15(i))
63,232
183,825
63,232
183,825
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 81 -
22. Cash flow information (Continued)
Reconciliation of liabilities arising from financing activities
2024
Lease
Liabilities
Borrowings
Total
$
$
$
Opening balance
98,543
4,583,404
4,681,947
Cash flows
(72,877)
891,785
818,908
Non-cash changes
8,013
74,542
82,555
Closing balance
33,679
5,549,731
5,583,410
2023
Lease
Liabilities
Borrowings
Total
$
$
$
Opening balance
82,210
4,118,332
4,200,542
Cash flows
(89,072)
379,960
290,888
Non-cash changes
105,405
85,112
190,517
Closing balance
98,543
4,583,404
4,681,947
23.
Parent entity disclosures
As at, and throughout, the financial year ended 30 June 2024, the parent company of the Group was
Matsa Resources Limited.
Company
2024
2023
$
$
Result of the parent entity
Loss for the year
(3,157,235)
(1,420,477)
Other comprehensive gain/(loss)
-
-
Total comprehensive loss for the year
(3,157,235)
(1,420,477)
Financial position of parent entity at year end
Current assets
936,606
481,053
Total assets
11,875,984
10,113,073
Current liabilities
2,898,517
1,709,393
Total liabilities
6,887,089
5,917,387
Total equity of the parent entity comprising of:
Share capital
69,483,956
65,596,744
Reserves
10,381,132
10,317,900
Accumulated losses
(74,876,193)
(71,718,958)
Total equity
4,988,895
4,195,686
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 82 -
24.
Financial instruments
Financial risk management
Overview
This note presents information about the Group’s exposure to credit, liquidity and market risks and
its 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.
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:
Consolidated Carrying amount
2024
2023
$
$
Trade and other receivables
355,767
237,340
Cash and cash equivalents
1,037,840
794,303
Deposits held and other
287,363
367,363
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 83 -
24.
Financial instruments (Continued)
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 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 2024
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
-
1,250,089
1,250,089
1,250,089
-
-
-
Lease
liabilities
11
33,679
34,608
29,664
4,944
-
-
Insurance
premium
finance
5.38
74,327
78,325
46,995
31,330
-
-
Loan
12.27
5,475,404
6,274,883
1,835,651
238,027
4,201,205
-
6,833,499
7,637,905
3,162,399
274,301
4,201,205
-
30 June 2023
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
-
1,478,057
1,478,057
1,478,057
-
-
-
Lease
liabilities
10.08
98,543
106,069
37,534
33,887
34,648
-
Insurance
premium
finance
4.66
90,783
124,963
87,492
37,471
-
-
Loan
12.00
4,492,621
5,692,766
772,219
239,342
480,000
4,201,205
6,160,004
7,401,855
2,375,302
310,700
514,648
4,201,205
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 84 -
24.
Financial instruments (Continued)
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 consolidated statement of financial position date the Group holds the following financial
assets or liabilities which are exposed to foreign currency risk.
Carrying amount
2024
2023
$
$
Other current assets
94,081
117,341
Cash and cash equivalents
139,363
79,225
Other current liabilities
(46,231)
(121)
Sensitivity analysis
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 2024 would have increased equity by $20,802 (2023: $21,827), an
equal change in the opposite direction would have decreased equity by $17,019 (2023: 17,858).
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.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 85 -
24.
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:
Carrying amount
2024
2023
$
$
Fixed rate instruments
Cash and cash equivalents
50,000
50,000
Lease liabilities
33,679
98,543
Insurance premium finance
74,327
90,783
Loan
5,475,404
4,492,621
5,633,410
4,731,947
Variable rate instruments
Cash and cash equivalents
987,840
794,303
987,840
794,303
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
2023.
Profit or loss
Equity
100bp
increase
100bp
decrease
100bp
increase
100bp
decrease
$
$
$
$
30 June 2024
Variable rate instruments
9,878
(9,878)
9,878
(9,878)
30 June 2023
Variable rate instruments
7,943
(7,943)
7,943
(7,943)
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.
(ii)
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.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 86 -
24.
Financial instruments (Continued)
Equity Price Risk
Other Equity price risk is the risk that the value of the instrument will fluctuate as a result of changes
in market prices (other than those arising from interest rate risk or currency risk), whether caused by
factors specific to an individual investment, its issuer or all factors affecting all instruments traded in
the market.
Investments are managed on an individual basis and material buy and sell decisions are approved by
the Board of Directors. The primary goal of the Group’s investment strategy is to maximise investment
returns.
The Group’s investments are solely in equity instruments. These instruments are classified as financial
investments and carried at fair value with fair value changes recognised directly in the statement of
profit or loss and other comprehensive income.
The following table details the breakdown of the investment assets and liabilities held by the Group:
Note
2024
$
2023
$
Listed equities (Level 1 fair value
hierarchy)
8
33,150
-
Sensitivity analysis
The Group’s equity investments are listed on the Australian Securities Exchange. A 10% increase in
stock prices at 30 June 2024 would have increased equity by $3,315 (2023: $nil), an equal change in
the opposite direction would have decreased equity by an equal but opposite amount.
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 its debt facility the majority of which is not repayable until 30
November 2025.
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.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 87 -
25.
Share-based payments
Share-based payments expense
2024
2023
$
$
Directors and Executives
-
66,600
Employee Share Option Plan
-
37,460
Consultants (i)
63,232
183,825
63,232
287,885
Recognised directly in profit and loss
-
104,060
Recognised directly in equity
63,232
183,825
63,232
287,885
During the year, the following options were issued;
(i) 10,000,000 share options (Tranche 1 - 5,000,000 options with an exercise price of $0.07 each and
Tranche 2 - 5,000,000 options with an exercise price of $0.10 each), were issued to Wentworth
Capital as part of their fee for acting as Lead Managers to the share placement. The options vest
immediately at the date of grant. The contractual life of each option is three years and there is no
cash settlement of the options. As at 30 June 2024, these options valued at $63,232 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)
Options issued pursuant to the plan will generally be issued free of charge.
(b)
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.
(d)
The Directors may limit the total number of options which may be exercised under the plan in
any year.
(e)
Options with a common expiry date may have a different exercise price and exercise date.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 88 -
25.
Share-based payments (Continued)
(f)
Options shall lapse upon the earlier of:
(i)
The expiry of the exercise period; and
(ii)
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.
(g)
Upon exercise the options will be settled in ordinary shares of Matsa Resources Limited.
(a)
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 KMP which have
been disclosed in the Remuneration Report.
2024
No.
2024
WAEP
$
2023
No.
2023
WAEP
$
Outstanding at the beginning
of the year
5,150,000
0.14
2,550,000
0.21
Granted
-
-
3,000,000
0.09
Other*
-
-
700,000
0.21
Lapsed
(2,150,000)
0.21
(1,100,000)
0.21
Outstanding at year-end
3,000,000
0.09
5,150,000
0.14
Exercisable at year-end
3,000,000
0.09
5,150,000
0.14
* David Fielding retired as the Group Exploration Manager but remained as a casual employee with
the Company from 5 December 2022. 700,000 options previously issued to Mr Fielding when he was
a key management personnel is added back to the total balance of options issued under ESOP.
The outstanding balance as at 30 June 2024 is represented by the following options over ordinary
shares, exercisable upon meeting the above terms and conditions:
3,000,000 options with an exercise price of $0.09 each and with an expiry date of 30 November
2025. All have vested and are exercisable at balance date
Directors and Executives Options
Directors
No options were issued to Directors during the year ended 30 June 2024 (30 June 2023: 6,000,000).
Executives
No options were issued to executives during the year ended 30 June 2024 (30 June 2023: nil).
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 89 -
25.
Share-based payments (Continued)
(b) Summary of options issued to Directors as part of remuneration
(i)
The following table illustrates the number (No.) and weighted average exercise prices
(WAEP) of share options issued.
2024
No.
2024
WAEP
$
2023
No.
2023
WAEP
$
Outstanding at 1 July
6,500,000
0.10
7,450,000
0.178
Granted during the year
-
-
6,000,000
0.09
Other*
-
-
(1,200,000)
0.21
Expired during the year
(1,000,000)
0.17
(5,750,000)
0.175
Outstanding at 30 June
5,500,000
0.09
6,500,000
0.10
Exercisable at 30 June
5,500,000
0.09
6,500,000
0.10
* David Fielding retired as the Group Exploration Manager but remained as a casual employee with
the Company from 5 December 2022. Frank Sibbel retired as Non-Executive Director on 3 March 2023.
(c) Valuation models of options issued to Directors and employees under the ESOP
The fair value of the options granted to Directors during 2023 is estimated at the date of grant using
a Trinomial Option Valuation Model, taking into account the terms and conditions upon which the
options were granted.
The fair value of the options granted to employees under the Employee Share Option Plan during 2023
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.
2024
2023
Directors
Employees
Directors
Employees
Number of share options
Dividend yield (%)
-
-
6,000,000
3,000,000
Expected volatility (%)
-
-
69.1
68.94
Risk-free interest rate (%)
-
-
3.27
3.02
Expected life of options (years)
-
-
3
3
Option exercise price ($)
-
-
0.09
0.09
Share price at grant date ($)
-
-
0.04
0.04
Fair value at grant date ($)
-
-
0.011
0.01
The expected life of the options is based on historical data and is not necessarily indicative of exercise
patterns that may occur.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 90 -
25.
Share-based payments (Continued)
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
2024
$
2023
$
Share options granted in 2023
- equity settled
-
37,460
Share options granted in 2024
-
equity settled
-
-
Total expense recognised as employee costs
-
37,460
Consultants
During the year, 10,000,000 share options (Tranche 1 - 5,000,000 options with an exercise price of
$0.07 each and Tranche 2 - 5,000,000 options with an exercise price of $0.10 each), were issued to
Wentworth Capital as part of their fee for acting as Lead Managers to the share placement. The
options vest immediately at the date of grant. The contractual life of each option is three years and
there is no cash settlement of the options.
The fair value of the options granted to Wentworth Capital is estimated at the date of grant using a
Black Scholes Option Valuation Model, taking into account the terms and conditions upon which the
options were granted.
The fair value of the options granted was estimated at the date of grant using the following
assumptions:
Grant Date
20 November 2023
20 November 2023
Number of Share Options
5,000,000
5,000,000
Dividend Yield (%)
-
-
Expected Volatility (%)
68.83
68.83
Risk-free interest rate (%)
4.12
4.12
Expected Life (years)
2.95
2.95
Exercise Price (cents)
7
10
Fair Value per Option (cents)
0.76
0.50
Total Value of Options ($)
38,086
25,146
The Company has recognised $63,232 (2023: $183,825) of share based payment expense in equity
as share issue costs in the condensed consolidated statement of financial position.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 91 -
26.
Key management personnel
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
Executive Chairman and Managing Director
Pascal Blampain
Executive Director
Andrew Chapman
Executive Director and Company Secretary
Key management personnel remuneration has been included in the Remuneration Report section of
the Directors’ Report on pages 35 to 42. These transferred disclosures have been audited.
Compensation of Key Management Personnel
2024
$
2023
$
Short-term employment benefits
764,381
906,653
Post-employment benefits
73,211
81,880
Termination benefits
-
-
Share-based payments
-
66,600
837,592
1,055,133
The compensation disclosed above represents an allocation of the key management personnel’s
compensation from the Group in relation to their services rendered to the Group.
Loans to Key Management Personnel
There were no loans to key management personnel during the current or previous financial year and
no outstanding loan balances as at the date of this report.
Other transactions and balances with Key Management Personnel
(a) P Poli is a Director of Bulletin Resources Limited. The Group has an agreement with Bulletin to
provide accounting, technical and administrative services on an arms-length basis. In the current
year $123,717 has been charged to Bulletin for these services (2023: $138,000).
At 30 June 2024 there was an outstanding balance of $19,946 (2023: $25,300) for Bulletin.
(b) P Poli is a director and controlling shareholder of West-Sure Group Pty Ltd which the Group sub-
lets storage space from. In the current year $3,982 has been charged to the Group for this service
(2023: $6,371).
At 30 June 2024, there was an outstanding balance of $4,380 (2023: $1,752) payable to West-
Sure.
MATSA RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2024
- 92 -
26.
Key management personnel (Continued)
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.
27.
Related party transactions
Subsidiaries
Interests in subsidiaries are set out in Note 21.
Key management personnel
Disclosures relating to key management personnel are set out in the Remuneration Report and Note
26.
28.
Remuneration of auditors
The auditor of the Group is Nexia Perth Audit Services Pty Ltd.
Consolidated
2024
2023
$
$
Amounts received or due and receivable by Nexia Perth Audit
Services Pty Ltd for an audit or review of the Group.
71,150
66,650
Amounts received or due and receivable by related practices of
Nexia Perth Audit Services Pty Ltd for:
- tax compliance
13,700
16,000
84,850
82,650
29.
Events Subsequent to Balance Date
On 4 July 2024 the repayment date of the two $500,000 loan advances was extended to 31 December
2024.
On 25 July 2024 shareholders approved the issue of 14,818,339 ordinary fully paid shares at $0.03
each, raising $444,550 which formed Tranche 2 of the placement announced by the Company on 29
April 2024. In addition, shareholders approved the issue of 28,823,148 unlisted options with an
exercise price of $0.07 each expiring 31 January 2026.
On 16 September 2024, the Company announced it had undertaken a strategic share placement via
the issue of 84,794,022 ordinary fully paid shares at an issue price of $0.028 per share with two
corporate participants raising $2,374,232.
No further 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.
MATSA RESOURCES LIMITED
CONSOLIDATED ENTITY DISCLOSURE STATEMENT AS AT 30 JUNE 2024
- 93 -
Entity Name
Entity Type
Tax Residency
Ownership
Interest %
Parent Entity
Matsa Resources Limited
Body Corporate
Australia*
Subsidiary
Matsa Gold Pty Ltd
Body Corporate
Australia*
100
Killaloe Minerals Pty Ltd
Body Corporate
Australia*
100
Lennard Shelf Exploration Pty Ltd
Body Corporate
Australia*
100
Red October Gold Pty Ltd
Body Corporate
Australia*
100
Matsa Resources (Aust) Pty Ltd
Body Corporate
Australia*
100
Cundeelee Pty Ltd
Body Corporate
Australia*
100
Matsa (Thailand) Co Ltd
Body Corporate
Thailand
100
PVK Mining Loei Co Ltd
Body Corporate
Thailand
100
Khlong Tabaek Co Ltd
Body Corporate
Thailand
95
Paisali Mining Co Ltd
Body Corporate
Thailand
95
Siam Copper Resources Co Ltd
Body Corporate
Thailand
100
Loei Mining Co Ltd
Body Corporate
Thailand
100
Azure Circle Co Ltd
Body Corporate
Thailand
100
Forward Metals Co Ltd
Body Corporate
Thailand
100
Thai EV Minerals Co Ltd
Body Corporate
Thailand
100
Thaiwest New Metals Co Ltd
Body Corporate
Thailand
100
*Matsa Resources Limited and its wholly-owned Australian subsidiaries have formed an income tax
consolidated group under the tax consolidation regime.
MATSA RESOURCES LIMITED
DIRECTORS’ DECLARATION
- 94 -
In the opinion of the directors of Matsa Resources Limited:
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 Group’s financial position as at 30 June 2024 and of
its performance, for the financial year ended on that date; and
(iii) complying with Australian Accounting Standards and Corporations Regulations 2001;
(a)
the financial report also complies with International Financial Reporting Standards as
disclosed in note 2(b);
(b)
the remuneration disclosures that are contained in page 35 to 42 of the Remuneration
Report in the Directors’ Report comply with the Corporations Act 2001;
(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; and
(d)
the information disclosed in the attached consolidated entity disclosure statement is true
and correct.
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 2024.
Signed in accordance with a resolution of the directors;
Paul Poli
Executive Chairman
Perth, 17 September 2024
- 95 -
Independent Auditor’s Report to the Members of Matsa Resources Limited
Report on the Audit of the Financial Report
Opinion
We have audited the 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 2024, the
consolidated statement of profit and loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the
financial statements, including material accounting policy information, the consolidated entity disclosure
statement and the directors’ declaration.
In our opinion, 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 2024 and of its 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 & 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 be required to generate further funding to meet its planned exploration and administration
expenditure for a period of at least twelve months from the date of this report. This condition, 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.
- 96 -
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.
Key audit matter
How our audit addressed the key audit
matter
Capitalisation of Exploration and Evaluation
Assets
Refer to Note 9 (Exploration and evaluation
assets).
As at 30 June 2024 the carrying value of the Group’s
capitalised exploration and evaluation assets was
$21,192,194. The Group’s policy in respect of
exploration and evaluation expenditure is outlined in
Note 2 (p).
This is a key audit matter due to the fact that
significant judgment is applied in determining
whether:
• the exploration and evaluation assets meet the
recognition criteria of AASB 6 Exploration for and
Evaluation of Mineral Resources (“AASB 6”); and
• facts and circumstances exist that suggest that
the carrying value of the exploration and
evaluation assets is in accordance with AASB 6.
Our procedures included, amongst others:
• verifying that the right to tenure to the areas of
interest remained current as at the reporting
date;
• obtaining evidence of the future intention for
the areas of interest, including reviewing future
budgeted
expenditure
and
related
work
programs;
• obtaining an understanding of the status of
ongoing exploration programs for the areas of
interest; and
• assessing the appropriateness of the accounting
treatment and disclosures in terms of AASB 6.
Other Information
The directors are responsible for the other information. The other information comprises the information in
the Group’s annual report for the year ended 30 June 2024, but does not include the financial report and
the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and 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 the other
information we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of:
a)
the financial report (other than the consolidated entity disclosure statement) that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; and
b)
the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001; and
- 97 -
for such internal control as the directors determine is necessary to enable the preparation of:
i)
the financial (other than the consolidated entity disclosure statement) report that gives a true and
fair view and is free from material misstatement, whether due to fraud or error; and
ii)
the consolidated entity disclosure statement that is true and correct and is free of misstatement,
whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the 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 have
no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted
in accordance with the Australian Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at The Australian
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar2_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 35 to 42 of the Directors’ Report for the year
ended 30 June 2024.
In our opinion, the Remuneration Report of Matsa Resources Limited for the year ended 30 June 2024
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
Nexia Perth Audit Services Pty Ltd
Michael Fay
Director
Perth, Western Australia
17 September 2024
MATSA RESOURCES LIMITED
ASX ADDITIONAL INFORMATION
- 98 -
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 29 August 2024
Range (size of holding)
Number of Holders
Number of Units
%
1 – 1,000
61
4,730
0.00
1,001 – 5,000
47
152,860
0.03
5,001 – 10,000
113
939,116
0.17
10,001 – 100,000
712
25,893,456
4.58
100,001 – and over
358
538,303,119
95.23
1,291
565,293,281
100.00
The number of shareholdings held in less than marketable parcels is 405.
Twenty Largest Registered Shareholders of Fully Paid Ordinary Shares as at 29 August 2024
Name
No.
%
1
BNP Paribas Nominees Pty Ltd
70,575,076
12.48
2
Deutsche Balaton Aktiengsellschaft
48,071,106
8.50
3
Sparta AG
37,699,389
6.67
4
BNP Paribas Noms Pty Ltd
33,477,545
5.92
5
BNP Paribas Nominees Pty Ltd
23,447,150
4.15
6
BNP Paribas Noms Pty Ltd
18,548,326
3.28
7
HSBC Custody Nominees (Australia) Limited
14,957,103
2.65
8
HF Resources Pty Ltd
12,947,000
2.29
9
Delphi Unternehmensberatung Aktiengsellschaft
11,683,333
2.07
10
Mr Paul Poli
11,200,000
1.98
11
Newmek Investments Pty Ltd
10,306,037
1.82
12
Goldfire Enterprises Pty Ltd
10,060,337
1.78
13
Mr William Donald Lloyd
8,333,333
1.47
14
Duketon Consolidated Pty Ltd
4,845,707
0.86
15
Technica Pty Ltd
4,825,000
0.85
16
RASL AU LLC
4,620,000
0.82
17
Emprise Nominees Pty Ltd
4,600,075
0.81
18
Goldfire Enterprises Pty Ltd
4,500,000
0.80
19
Mr Michael James Monteleone
4,403,525
0.78
20
Colbern Fiduciary Nominees Pty Ltd
4,350,000
0.77
343,450,042
60.75
MATSA RESOURCES LIMITED
ASX ADDITIONAL INFORMATION
- 99 -
Substantial Shareholders
Fully paid
Ordinary shareholder
Number
Percentage
Sparta AG
105,630,201
18.69%
RESTRICTED SECURITIES
The Company has no restricted securities on issue.
STATEMENT OF UNQUOTED SECURITIES
Number of Options
Number of Holders
Exercise Price
Date of Expiry
33,333,833
47
$0.07
7 September 2025
28,823,148
23
$0.07
7 September 2025
15,000,000
8
$0.08
30 November 2025
6,000,000
4
$0.09
30 November 2025
3,000,000
5
$0.09
30 November 2025
5,000,000
1
$0.07
1 November 2026
5,000,000
1
$0.10
1 November 2026
MATSA RESOURCES LIMITED
ASX ADDITIONAL INFORMATION
- 100 -
TABLE OF MINERAL RESOURCES AND MINERAL RESERVES AT 30 JUNE 2024
Mineral Resource Estimates – Consolidated Summary & Annual Comparison
Project
Resource Category
Tonnes (‘000)
Au (g/t)
Metal Oz(‘000)
30 June 2023
Fortitude
Measured
Indicated
Inferred
127
3,021
5,767
2.2
2.0
1.9
9
190
353
Devon
Measured
Indicated
Inferred
18
434
935
4.4
4.6
2.2
3
64
66
Red October
Measured
Indicated
Inferred
105
608
635
8.4
5.4
5.4
28
105
111
Stockpiles
Inferred
191
1.0
6
Total
11,840
2.5
936
Mining Depletion
Nil
Resource Adjustments
Devon
Indicated
Inferred
16
5
25.27
-
13
-
21
0.6
13
30 June 2024
Fortitude
Measured
Indicated
Inferred
127
3,021
5,767
2.2
2.0
1.9
9
190
353
Devon
Measured
Indicated
Inferred
18
450
940
4.4
5.3
2.2
3
77
66
Red October
Measured
Indicated
Inferred
105
608
635
8.4
5.4
5.4
28
105
111
Stockpiles
Inferred
191
1.0
6
Total
11,861
2.5
948
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.
MATSA RESOURCES LIMITED
ASX ADDITIONAL INFORMATION
- 101 -
TABLE OF MINERAL RESOURCES AND MINERAL RESERVES AT 30 JUNE 2024 (continued)
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)
30 June 2023
Fortitude
Probable
1,029
1.8
58
1,029
1.8
58
Mining Depletion
Nil
Reserve Adjustments
Nil
30 June 2024
Fortitude
Probable
1,029
1.8
58
Total
1,029
1.8
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 2022 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.
MATSA RESOURCES LIMITED
ASX ADDITIONAL INFORMATION
- 102 -
Reserves
There are no changes to reserves from the 2023 Annual Report. 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.
MATSA RESOURCES LIMITED
SCHEDULE OF MINING TENEMENTS
- 103 -
Tenement Type
and No.
Project
Holder
Status
Share
Held
E 52/3339
Glenburg
Cundeelee Pty Ltd
Live
100%
E 28/26001
Lake Rebecca
Matsa Gold Pty Ltd
Live
20%
E 28/26351
Lake Rebecca
Matsa Gold Pty Ltd
Live
20%
E38/2945
Lake Carey
Matsa Gold Pty Ltd
Live
100%
E 39/1837
Lake Carey
Matsa Gold Pty Ltd
Live
100%
E 39/1863
Lake Carey
Matsa Gold Pty Ltd
Live
100%
E 39/1864
Lake Carey
Matsa Gold Pty Ltd
Live
100%
E 39/1957
Lake Carey
Matsa Gold Pty Ltd
Live
100%
E 39/1958
Lake Carey
Matsa Gold Pty Ltd
Live
100%
E 39/1980
Lake Carey
Matsa Gold Pty Ltd
Live
100%
E 39/1981
Lake Carey
Matsa Gold Pty Ltd
Live
100%
P 39/5652
Lake Carey
Matsa Gold Pty Ltd
Live
100%
E 39/17962
Lake Carey
Matsa Gold Pty Ltd
Live
90%
E 39/1752
Lake Carey
Matsa Gold Pty Ltd
Live
100%
E 39/1770
Lake Carey
Matsa Gold Pty Ltd
Live
100%
E 39/1803
Lake Carey
Matsa Gold Pty Ltd
Live
100%
E 39/1812
Lake Carey
Matsa Gold Pty Ltd
Live
100%
E 39/1819
Lake Carey
Matsa Gold Pty Ltd
Live
100%
E 39/1834
Lake Carey
Matsa Gold Pty Ltd
Live
100%
E 39/1840
Lake Carey
Matsa Gold Pty Ltd
Live
100%
E 39/18892
Lake Carey
Matsa Gold Pty Ltd
Live
90%
E 39/2015
Lake Carey
Matsa Gold Pty Ltd
Live
100%
E39/2128
Lake Carey
Matsa Gold Pty Ltd
Live
100%
L 39/247
Lake Carey
Matsa Gold Pty Ltd
Live
100%
L 39/260
Lake Carey
Matsa Gold Pty Ltd
Live
100%
L 39/267
Lake Carey
Matsa Gold Pty Ltd
Live
100%
L 39/268
Lake Carey
Matsa Gold Pty Ltd
Live
100%
L 39/291
Lake Carey
Matsa Gold Pty Ltd
Live
100%
L39/295
Lake Carey
Matsa Gold Pty Ltd
Live
100%
M 39/1
Lake Carey
Matsa Gold Pty Ltd
Live
100%
M 39/1065
Lake Carey
Matsa Gold Pty Ltd
Live
100%
M 39/1089
Lake Carey
Matsa Gold Pty Ltd
Live
100%
M 39/286
Lake Carey
Matsa Gold Pty Ltd
Live
100%
M 39/709
Lake Carey
Matsa Gold Pty Ltd
Live
100%
M 39/710
Lake Carey
Matsa Gold Pty Ltd
Live
100%
P 39/5669
Lake Carey
Matsa Gold Pty Ltd
Live
100%
P 39/5670
Lake Carey
Matsa Gold Pty Ltd
Live
100%
P 39/5694
Lake Carey
Matsa Gold Pty Ltd
Live
100%
P 39/5841
Lake Carey
Matsa Gold Pty Ltd
Live
100%
E39/2311
Lake Carey
Matsa Gold Pty Ltd
Live
100%
E 39/1760
Devon
Matsa Gold Pty Ltd
Live
100%
E 39/1232
Devon
Matsa Gold Pty Ltd
Live
100%
L39/222
Devon
Matsa Gold Pty Ltd
Live
100%
L 39/235
Devon
Matsa Gold Pty Ltd
Live
100%
MATSA RESOURCES LIMITED
SCHEDULE OF MINING TENEMENTS
- 104 -
Tenement Type
and No.
Project
Holder
Status
Share
Held
L 39/237
Devon
Matsa Gold Pty Ltd
Live
100%
M 39/386
Devon
Matsa Gold Pty Ltd
Live
100%
M 39/387
Devon
Matsa Gold Pty Ltd
Live
100%
M 39/500
Devon
Matsa Gold Pty Ltd
Live
100%
M 39/629
Devon
Matsa Gold Pty Ltd
Live
100%
M 39/1077
Devon
Matsa Gold Pty Ltd
Live
100%
M 39/1078
Devon
Matsa Gold Pty Ltd
Live
100%
P 39/6116
Devon
Matsa Gold Pty Ltd
Live
100%
P 39/6117
Devon
Matsa Gold Pty Ltd
Live
100%
L 39/217
Red October
Red October Gold Pty Ltd
Live
100%
L 39/273
Red October
Red October Gold Pty Ltd
Live
100%
M 39/411
Red October
Red October Gold Pty Ltd
Live
100%
M 39/412
Red October
Red October Gold Pty Ltd
Live
100%
M 39/413
Red October
Red October Gold Pty Ltd
Live
100%
M 39/599
Red October
Red October Gold Pty Ltd
Live
100%
M 39/600
Red October
Red October Gold Pty Ltd
Live
100%
M 39/609
Red October
Red October Gold Pty Ltd
Live
100%
M 39/610
Red October
Red October Gold Pty Ltd
Live
100%
M 39/611
Red October
Red October Gold Pty Ltd
Live
100%
M 39/721
Red October
Red October Gold Pty Ltd
Live
100%
E59/2808
Rothsay
Cundeelee Pty Ltd
Live
100%
E59/2810
Murray Bore
Cundeelee Pty Ltd
Live
100%
E59/2841
Killaloe Minerals Pty Ltd
Live
100%
E38/3591
Jubilee Well
Matsa Gold Pty Ltd
Live
100%
E38/3809
Narndoo
Matsa Gold Pty Ltd
Live
100%
P39/6385
Murrin Murrin
Matsa Gold Pty Ltd
Live
100%
P39/6386
Murrin Murrin
Matsa Gold Pty Ltd
Live
100%
P39/6387
Murrin Murrin
Matsa Gold Pty Ltd
Live
100%
P39/6388
Murrin Murrin
Matsa Gold Pty Ltd
Live
100%
P39/6389
Murrin Murrin
Matsa Gold Pty Ltd
Live
100%
EPL06/25673
Chok Dee
Thaiwest New Metals Co
Ltd
Live
100%
SPL11/25663
Ratchaburi
PVK Mining Loei Co Ltd
Live
100%
SPL12/25663
Ratchaburi
PVK Mining Loei Co Ltd
Live
100%
All tenements are located in Western Australia unless denoted otherwise.
1= 20% held by Matsa
2= 90% held by Matsa
3= Located in Thailand
www.matsa.com.au