Annual Report
2022
ABN 74 111 977 354
Corporate Directory
Directors
Steve Zaninovich
Tim Wither
Martin Janes
Gerard Anderson
Paul Cmrlec
Scott Huffadine
Company Secretary
Rajita Alwis
Non-Executive Chair
Managing Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Alternate Non-Executive Director
to Paul Cmrlec
Registered Office
Suite 12, 198 Greenhill Road
Eastwood SA 5063
T +61 08 7324 3172
F +61 08 8312 5501
E info@maximusresources.com
W maximusresources.com
Share Registry
Computershare Investor Services
Level 5, 115 Grenfell Street
Adelaide, South Australia 5000
T +61 8 8236 2300
F +61 8 8236 2305
W computershare.com/au
Auditor
Grant Thornton
Grant Thornton House
Level 3, 170 Frome Street
Adelaide SA 5000
Solicitors
EMK Lawyers
Suite 1, 519 Stirling Hwy
Cottesloe WA 6011
ASX codes
MXR
MXROE
ABN 74 111 977 354
Financial report
for the Year Ended 30 June 2022
Maximus Resources Limited ABN 74 111 977 354
Financial Statements
Contents
Tenement Report Schedule
Directors' report
Auditor's Independence Declaration
Consolidated statements of profit or loss and other comprehensive income
Consolidated statements of financial position
Consolidated statements of changes in equity
Consolidated statements of cash flows
Notes to the consolidated financial statements
Directors' declaration
Independent auditor's report to the members
Page
3
4
32
33
34
35
36
37
57
58
These financial statements are the consolidated financial statements of the consolidated entity consisting of Maximus
Resources Limited and its subsidiaries. The financial statements are presented in the Australian currency.
Maximus Resources Limited is a company limited by shares, is listed on the Australian Securities Exchange (ASX) under the
code "MXR" and is incorporated and domiciled in Australia. The registered office and principal place of business is:
Maximus Resources Limited
Suite 12, 198 Greenhill Road
Eastwood
SA 5063
Registered postal address is:
Maximus Resources Limited
GPO Box 1167
Adelaide
SA 5001
A description of the nature of the Company's operations and its principal activities is included in the directors' report on
pages 4 to 20
The financial statements were authorised for issue by the directors on 29 September 2022. The directors have the power
to amend and reissue the financial statements.
All press releases, financial reports and other information are available on our website: www.maximusresources.com.
Maximus Resources Limited
Tenement Schedule
30 June 2022
Tenement No.
Project
Registered Holder
Maximus Resources Limited Interest
Spargoville Project
M 15 / 1475
M115/ 1869
L 15 / 128
L 15 / 255
M 15 / 395
M 15 / 703
Eagles Nest
Maximus Resources Ltd
MXR - 100% of all Minerals
Eagles Nest South
Maximus Resources Ltd
MXR - 100% of all Minerals
Kambalda West
Maximus Resources Ltd
MXR - 100% all minerals, except Ni rights
Kambalda West
Maximus Resources Ltd
MXR - 100% all minerals, except Ni rights
Kambalda West
Maximus Resources Ltd
MXR - 100% all minerals, except Ni rights
Kambalda West
Maximus Resources Ltd
MXR - 100% all minerals, except Ni rights
M 15 / 1448
Hilditch
M 15 / 1449
Larkinville
P 15 / 5912
Larkinville
Maximus Resources Ltd &
Bullabulling Pty Ltd
Maximus Resources Ltd &
Essential Metals Ltd
Maximus Resources Ltd &
Essential Metals Ltd
MXR - 90% of all minerals
MXR - 75% All minerals + MXR 80% Ni rights
MXR - 75% All minerals + MXR 80% Ni rights
M 15 / 1101
M 15 / 1263
M 15 / 1264
M 15 / 1323
M 15 / 1338
M 15 / 1474
M 15 / 1769
M 15 / 1770
M 15 / 1771
M 15 / 1772
M 15 / 1773
M 15 / 1774
M 15 / 1775
M 15 / 1776
Wattle Dam
Wattle Dam
Wattle Dam
Wattle Dam
Wattle Dam
Wattle Dam
Wattle Dam
Wattle Dam
Wattle Dam
Wattle Dam
Wattle Dam
Wattle Dam
Wattle Dam
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
Maximus Resources Ltd
MXR - 100% all minerals
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
Maximus Resources Ltd
MXR - 100% all minerals
Maximus Resources Ltd
MXR - 100% all minerals
Maximus Resources Ltd
MXR - 100% all minerals
Maximus Resources - 100% Gold Rights
M 15 / 97
M 15 / 99
M 15 / 100
M 15 / 101
M 15 / 102
M 15 / 653
Widgiemooltha
Neometals Ltd
Widgiemooltha
Neometals Ltd
Widgiemooltha
Neometals Ltd
Widgiemooltha
Neometals Ltd
Widgiemooltha
Neometals Ltd
Widgiemooltha
Neometals Ltd
M 15 / 1271
Widgiemooltha
Neometals Ltd
Kimberley Base Metal Projects
E 80 / 5560
King River
MXR Minerals Pty Ltd
E 80 / 5561
Dunham River
MXR Minerals Pty Ltd
E 80 / 5585
Stonewall
MXR Minerals Pty Ltd
E 80 / 5705
King River South
MXR Minerals Pty Ltd
Southern Cross Gold / Base Metal Project
E 77 / 2889
Karalee
E 15 / 1849
E 63 / 2147
E 63 / 2148
Boorabbin
Jilbadji West
Jilbadji East
SX Minerals Pty Ltd
SX Minerals Pty Ltd
SX Minerals Pty Ltd
SX Minerals Pty Ltd
MXR - 100% gold rights
MXR - 100% gold rights
MXR - 100% gold rights
MXR - 100% gold rights
MXR - 100% gold rights
MXR - 100% gold rights
MXR - 100% gold rights
MXR - 100% of all Minerals under
application
MXR - 100% of all Minerals under
application
MXR - 100% of all Minerals under
application
MXR - 100% of all Minerals under
application
MXR - 100% of all Minerals
MXR - 100% of all Minerals
MXR - 100% of all Minerals
MXR - 100% of all Minerals
Page 3
Maximus Resources Limited
Directors' Report
30 June 2022
The directors present their annual financial report of the ‘Consolidated Entity’ or ‘Group’ being Maximus Resources
Limited (‘Maximus’ or ‘the Company’) and its controlled entities (referred to hereafter as the Group) for the year
ended 30 June 2022 (Period).
Board of Directors
The following persons were directors of the Company during the whole of the financial year and up to the date of
this report unless otherwise indicated:
Directors
Steven Evan Zaninovich
Position
Chair
Timothy James Wither
Managing Director
Appointed/Resign
(if during the financial year)
Gerard Anderson
Martin Simon Janes
Paul Mathew Cmrlec
Non-executive Director
Non-executive Director
Non-executive Director
Appointed 18 October 2021
Scott James Huffadine
Alternate Director – P Cmrlec
Appointed 18 October 2021
Officers of the Company
Rajita Alwis was Company Secretary of the Company for the financial year.
Principal activities
During the year the principal activities of the Group consisted of mineral exploration and development activities.
Financial Result and Financial Position
The result of operations of the Group for the financial year was a loss of $1,076,636 (2021: $1,405,894).
The net assets of the Group have increased by $10,561,621 during the financial year from $7,028,097 at 30 June
2021 to $17,589,718 at 30 June 2022. This increase is due to the Group completing equity raisings during the year
and investing those funds on its Spargoville tenement package.
Dividends
There were no dividends declared or paid during the year (2021: Nil).
Page 4
Maximus Resources Limited
Directors' Report
30 June 2022
Operations Review
Maximus’ primary focus is the Spargoville Project, located 20km from Kambalda, Western Australia’s premier gold and
nickel mining district.
The Company holds 48km2 of tenements and a further 60km2 in gold rights across the fertile Spargoville Shear Zone,
which hosted the Wattle Dam Gold Mine (Wattle Dam). Mined until 2012, Wattle Dam was one of Australia’s highest-
grade gold mines producing ~286,000oz @ 10.1 g/t gold, highlighting the high-grade gold discovery potential.
In addition to its gold prospects, the Company’s Spargoville tenements are highly prospective for Kambalda-style
komatiite-hosted nickel sulfide and lithium bearing spodumene mineralisation, which the Company has continued to
explore during the period.
During the period the Company added two new projects, which are prospective for Nickel – Copper - Cobalt - PGE
mineralisation. The recently granted Southern Cross tenements comprise a combined area of 678km2, covering two
interpreted layered mafic-ultramafic intrusive complexes and are located within the eastern margins of the Yilgarn
craton, proximal to the Forrestania and Lake Johnston nickel belts, and close to the well-established mining town of
Southern Cross, Western Australia.
The Company’s short-term strategy continues to be aimed at building value, by increasing gold resources and
expanding the Company’s future development options centred around the existing infrastructure at Wattle Dam, whilst
actively advancing greenfield exploration across several prospective nickel and lithium projects.
Spargoville Mineral Resources#
RESOURCE
Update
Tonnes Au (g/t)
Tonnes
Au (g/t)
Tonnes
Au (g/t)
Tonnes
Au (g/t)
Ounces
MEASURED
INDICATED
INFERRED
TOTAL
Eagles Nest - Main Zone *
Feb - 17
Eagles Nest - FW Zone *
Feb - 17
Larkinville ^
5B
Redbackˇ
Hilditch
Wattle Dam – Stockwork
A
TOTAL
Mar - 17
Nov - 16
Mar - 17
Apr-17
Sept-21
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
150,000
1.84
512,400
1.98
662,400
1.95
41,500
-
-
17,500
1.89
17,500
1.89
1,050
112,250
2.91
7,450
4.60
119,700
3.02
11,600
-
-
-
-
-
-
75,300
3.07
75,300
3.07
7,450
441,200
3.02
441,200
3.02
42,850
132,000
1.77
132,000
1.77
7,500
545,000
1.15
100,000
1.15
645,000
1.15
23,850
807,250
1.52
1,285,850
2.33
2,093,100
2.02
135,800
Note:
• # ASX Announcement dated 11/4/2017 titled Maximus achieves major Resource milestone and 30/6//2017, Quarterly Report including table
1
Figures have been rounded and hence may not add up exactly to the given totals. Note that Resources are inclusive of Reserves reported at
0 g/t cut off.
* Top cut of 6 g/t has been applied
^ Reported at 1.0 g/t cut off
ˇ Reported at 0.5 g/t cut off
A
ASX Announcement dated 23/9/2021 titled Maiden Mineral Resource - Wattle Dam Stockwork.
•
•
•
•
•
Page 5
Maximus Resources Limited
Directors' Report
30 June 2022
ASX Announcements
This report contains information extracted from ASX announcements reported in accordance with the 2012 edition of
the “Australia Code for Reporting Explorations Results, Mineral Resources and Ore Reserves” (2012 JORC Code). Further
details (including 2012 JORC Code reporting tables where applicable) of Mineral Resource Estimates and exploration
results can be referenced in the following announcements lodged on the ASX, which are also available at
www.maxmusresources.com
DATE
5 July 2021
12 July 2021
22 July 2021
29 July 2021
30 July 2021
ANNOUNCEMENT TITLE
Geophysics targeting Nickel Sulphides commenced - Hilditch
RC drilling commences at Redback Gold Deposit
Nickel-Copper-Cobalt Sulphides Intersected at Hilditch West
Shallow EM Conductor Identified at Hilditch West
Quarterly Activities/Appendix 5B Cash Flow Report
3 August 2021
Insurance Claim Settlement
17 August 2021
$12m Placement with Strategic Investment by Pantoro Limited
26 August 2021
Gold Exploration Update
7 September 2021
Major Geophysics Programme Commences - Central Nickel target
14 September 2021
Arbitration Award
23 September 2021
Maiden Mineral Resource - Wattle Dam Stockwork
27 September 2021
Nickel Sulphides at Hilditch West
15 October 2021
Drilling Commences at Hilditch West Target
9 November 2021
High-Grade Results from Shallow RC at Redback
23 November 2021
Central Nickel Prospect – Priority Conductors Identified
24 November 2021
Exploration Update Hilditch West
1 December 2021
November Investor Presentation
15 December 2021
Visible Gold in Drill Core – Redback EIS Drilling
17 December 2021
AGM Presentation
13 January 2022
New high-grade gold zone confirmed – Redback EIS drilling
28 January 2022
Quarterly Activities/Appendix 5B Cash Flow Report
9 February 2022
Virtual Gold Conference Presentation
23 March 2022
Nickel Mineralisation Identified – Hilditch West
31 March 2022
Exploration Update – Lithium Prospectivity - Spargoville
29 April 2022
Quarterly Activities/Appendix 5B Cash Flow Report
25 May 2022
High-grade gold intersections continue at Wattle Dam Project
7 June 2022
Spargoville Lithium Projects Update
14 June 2022
14 June 2022
Significant shallow gold intersections – Hilditch Gold
Investor Presentation
20 July 2022
Quarterly Activity Report
For full details, please refer to the announcement as tabled. The Company confirms it is not aware of any new
information or data that materially affects the information included in the original market announcement(s), and in the
case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the
Page 6
Maximus Resources Limited
Directors' Report
30 June 2022
estimates in the relevant announcement continue to apply and have not materially changed. The Company confirms
that the form and context in which the Competent Person’s findings are presented have not been materially modified
from the original announcements.
Forward-Looking Statements
Caution regarding Forward-Looking Information. This document contains forward-looking statements concerning
Maximus Resources Limited. Forward-looking statements are not statements of historical fact and actual events and
results may differ materially from those described in the forward-looking statements as a result of a variety of risks,
uncertainties and other factors. Forward-looking statements in this document are based on Maximus Resources’ beliefs,
opinions and estimates as of the dates the forward-looking statements are made, and no obligation is assumed to
update forward-looking statements if these beliefs, opinions or estimates should change or to reflect other future
developments.
Gold – Wattle Dam Resource Growth
Wattle Dam Stockwork Mineral Resource Estimate
A Mineral Resource Estimate (MRE) of the Wattle Dam Stockwork was completed for 645 kt @ 1.15 g/t Au for 23,800
oz, increasing the Spargoville global mineral resource ounces by 21% to 2.1 mt @ 2.0 g/t Au for 135,800 oz. A
significant proportion of the reported Wattle Dam Stockwork resource is considered amenable to open-cut mining (refer
to ASX announcement 23/9/2021).
Figure 1 – RC drilling at Wattle Dam Gold Mine Stockwork.
The domain of stockwork veining is interpreted to exist immediately west of the mined Wattle Dam high-grade shoot,
inclusive of domains of internal waste. The stockwork zone is open to the south and at depth in the southern part
of the deposit.
At this southern end of the modelled domain, significant intercepts occurring east of this domain are demarcated as
the Wattle Dam South prospect. These have not been included in the current Wattle Dam Stockwork MRE and are to
Page 7
Maximus Resources Limited
Directors' Report
30 June 2022
be drill tested in upcoming drill programmes. Similarly, other opportunities to model discrete remnant mineralisation
adjacent/along strike from the mined high-grade shoot at Wattle Dam require further evaluation.
WATTLE DAM - REDBACK
Redback Gold Deposit (Redback) is located ~600 metres south-southeast of Wattle Dam (Figure 2). Local geology at
Redback is like that observed at the Wattle Dam, with a high component of visible gold hosted within altered ultramafic
lithologies (komatiite).
Figure 2 – Wattle Dam Project – showing Golden Orb location and other gold prospects – Looking North.
During the period the Company completed several resource Reverse Circulation (RC) and Diamond drill programmes
which form part of Maximus’ near-term strategy aimed at building value by increasing gold resources across the
Wattle Dam Project area, leveraging from the existing mine infrastructure at Wattle Dam and potential toll treating
at several processing plants located within 100km radius.
The completed resource drilling programme, designed to improve the definition of high-grade domains at Redback for
a Mineral Resource Estimate (MRE) update, successfully confirmed mineralisation continuity, from surface to ~270m
vertical depth. Each drill programme continued to deliver wide, high-grade gold intersections such as 16.3m @ 9.3 g/t
Au and 5.8m @ 17.9 g/t Au (RBDD003) which complements previously reported high-grade drill results including:
18m @ 2.3 g/t Au from 230m incl. 4m @ 4.3 g/t Au and 5m @ 2.4 g/t Au (RBDD006W1)
10.0m @ 4.6 g/t Au and 8.0m @ 3.9 g/t Au (RBDD005)
•
•
• 7.3m @ 2.7 g/t Au incl. 4.0m @ 3.7 g/t Au (RBDD007)
• 7.0m @ 7.0 g/t Au incl. 1.0m @ 10.2 g/t Au and 2.0m @ 10.2 g/t Au (RBRC019)
Gold mineralisation at Redback is interpreted as subparallel and near-vertical domains, largely controlled by
porphyry/ultramafic contacts. These occur as laterally continuous eastern and western structures which are connected
by linking shears/mineralised domains associated with the margins of interflow sediments. Redback remains open at
depth and along strike. (Figure 3)
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Maximus Resources Limited
Directors' Report
30 June 2022
Figure 3 – Redback and Wattle Dam longitudinal section showing completed assay results from recent drill programme.
During the period the Company was successfully awarded a Western Australian Government Exploration Incentive
Scheme (EIS) co-funded drilling grant. Two deep diamond drill holes (RBDD008 and RBDD009) designed to test the
down-dip plunge of known mineralisation at Redback were completed in early December 2021.
The EIS drill holes intersected wide intervals of heavily altered ultramafics with multiple occurrences of visible gold
observed in RBDD008, analogous to those observed at Redback and Wattle Dam. Assays from a selected interval
intersected several zones of high-grade gold up to 21.3 g/t Au intersected confirms a significant new target area
(Western Contact) with intersections including:
•
11.0m @ 3.2 g/t Au from 626m incl 3.0m @ 5.7 g/t Au from 626m, 2.0m @ 4.3 g/t Au from 631m and 1.0m @ 7.1
g/t Au from 636m (RBDD008)
• 2.5m @ 6.0 g/t Au from 658.5m incl. 1.0m @ 13.0 g/t Au from 658.5m (RBDD008)
Additional drilling was completed at the Redback Western Contact which confirmed interpreted mineralization trend
and location, including 5m @ 2.5 g/t Au from 539m incl. 3m @ 3.3 g/t Au, and 1m @ 7.9 g/t Au from 570m
(RBDD008W1), opens up a new target area for exploration and materially adds to the Redback mineralised system for
future resource growth.
WATTLE DAM SOUTH
Two diamond holes were completed at the Wattle Dam South mineralised domain, situated below the southern end of
the Wattle Dam open cut pit, designed to test for a steeply plunging high-grade shoot. Both holes intersected
significantly altered and deformed ultramafics with minor interflow sediments with WDSDD001 intersecting 8.0m @
2.4 g/t Au incl. 2.0m @ 5.8 g/t Au.
WATTLE DAM - GOLDEN ORB TREND
The S5 / Golden Orb targets comprise a geological setting analogous to Wattle Dam. Previous drilling passed through
the Western Shear Zone and into variably altered and veined ultramafics in the footwall of the shear zone, similar to
Wattle Dam. Initial drill programmes at S5 intersected a high-grade gold interval of 3.0m @ 83.3g/t Au from 25m
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Maximus Resources Limited
Directors' Report
30 June 2022
(S05AC001) with follow-up drilling intersecting 32m @ 3.2g/t Au from 105m (S05RC007) (ASX:MXR announcement 11
May 2021).
During the period, three RC holes (527m total) were drilled into the Golden Orb mineralised domain to confirm legacy
drilling intersecting 6m @ 8.8 g/t Au from 198m incl. 3m @ 14.2 g/t Au (GORC058) occurring adjacent to the Western
Shear Zone analogous to the drilling of the S5 prospect (ASX:MXR Announcement 11 May 2021). The new intersection
in hole GORC058 occurs outside the previously interpreted broad mineralised zone and indicates potential for a steeply
dipping high-grade shoot at Golden Orb (Figure 2). A drill programme to further test the Golden Orb trend is underway.
Gold – Regional Exploration
HILDITCH GOLD PROJECT- DRILL PROGRAMME
A total of 15 Reverse Circulation (RC) holes (1,852m) and 1 diamond drill hole (301m) were drilled at the Hilditch Gold
Project (Hilditch). The aim of the first pass drill programme was to incrementally extend the small resource at Hilditch
which currently comprises a JORC 2012 Inferred resource of 132,000 t @ 1.77 g/t Au for 7,511 oz of gold (ASX:MXR
announcement - 11 April 2017).
Regionally, Hilditch is located on the Spargoville Shear zone and proximal to Karora Resources (TSX:KRR) operating
Spargo Reward mine (Figures 4), with a reported resource of 1Mt @ 3.0 g/t Au for 105,000 oz of gold (TSX:KRR
presentation 16 May 2022).
Figure 4 – Hilditch Gold Location map.
Local geology at Hilditch includes a sequence of felsic volcaniclastic rocks characterised by weak to moderate fuchsite
alteration, pegmatite intrusives, and mafic and ultramafic lithologies. Minor interflow sediments are observed within a
mafic and ultramafic sequence, similar to that observed at Wattle Dam ~9km south along the Spargoville Shear zone.
Hilditch’s first-pass drill programme (Figure 5) defined shallow zones of broad gold mineralisation which included:
• 7m @ 7.9 g/t Au from 51m, incl. 2m @ 16.9 g/t from 52m (HGRC019)
• 7m @ 3.7 g/t Au from 11m, Incl. 1m @ 18.6 g/t from 16m (HGRC024)
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Maximus Resources Limited
Directors' Report
30 June 2022
• 6m @ 3.4 g/t Au from 30m, Incl. 2m @ 8.1 g/t from 34m (HGRC023)
• 2m @ 4.3 g/t Au from 70m, 4m @ 2.1 g/t Au from 79m and 8m @ 1.9 g/t Au from 172m, Incl. 1m @ 6.2 g/t from
172m (HGRC015)
18m @ 0.8 g/t Au from 41m, and 2m @ 1.3 g/t from 94m (HGRC013)
•
• 5m @ 1.8 g/t from 37m (HGRC017)
A significant amount of strike at Hilditch is yet to be tested with legacy RAB drilling less than ~20m depth on average.
The completed drill programme greatly improves the prospectivity of Hilditch and provides context for planning future
exploration programmes.
Figure 5 – Hilditch Gold Prospect – Plan view.
Nickel – Regional Exploration
HILDITCH WEST
During the period the Company successfully intersected shallow, highly anomalous nickel-copper-cobalt and scandium
mineralisation in zones of alteration along ~1km structure. Deeper drilling intersected ultramafics which supports the
geological model for nickel to be remobilised from ultramafics deeper in the stratigraphy.
Several mineralised zones were identified with significant Nickel-Copper-Cobalt intersections including (Figure 6):
• 5m @ 1.2% Ni, 0.23% Cu, 0.08% Co from 43m, 2m @ 1.5% Ni, 0.03% Co from 87m, and 19m @ 0.4% Ni, 0.1% Cu,
2.4g/t Ag from 107m (HWRC004)
12m @ 0.5% Ni, 0.06% Co from 18m; incl. 2m @ 0.8% Ni, 0.2% Cu, 0.06% Co from 21m (HWRC003)
•
Page 11
• 5m @ 0.9% Ni, 0.03% Co, 0.05% Cu from 42m; incl. 2m @ 1.1% Ni, 0.03% Co, 0.05% Cu and 9m @ 0.6% Ni, 0.03%
Co from 49m; incl. 4m @ 0.8% Ni, 0.05% Co and 0.02% Cu and 11m @ 0.4% Ni from 95m (HWRC016)
Drill programmes also included two Diamond Drill holes (HWDD002 & 003) for 490m which were completed under the
EIS round 24 co-funding grant (50% of drilling costs being covered by the grant).
Maximus Resources Limited
Directors' Report
30 June 2022
Figure 6 – Hilditch West nickel prospect – plan view of intercepts including previously reported 2021 drilling.
Abundant intense fuchsite alteration (Figure 7) in the metasedimentary units supports the geological model for Hilditch
West. The intersection of the district scale shear zone (fuchsite altered) and sulfidic metasedimentary rocks are a likely
setting for nickel sulfide and nickel-arsenic sulfide deposition (ASX:MXR announcement 27 September 2021) potentially
analogous to the mechanism for gold deposition at Hilditch Gold to the SSE along this structural corridor.
Figure 7 – Intense Fuchsite alteration with pyrite in HWDD002 at 179.7m
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Maximus Resources Limited
Directors' Report
30 June 2022
Disseminated sulfide mineralogy has been confirmed by petrography (ASX:MXR announcement 27 September 2021)
comprising pentlandite (nickel sulfide), nickeliferous pyrite (iron sulfide containing nickel), gersdorffite (nickel arsenic
sulfide), pyrrhotite (iron sulfide that can contain minor nickel), sphalerite (zinc sulfide), chalcopyrite and covellite
(copper sulfides).
CENTRAL NICKEL PROSPECT
The prospective area between historic nickel mines at Andrews Shaft, 1A, and 5A (ASX:ESR) was the focus of a
comprehensive fixed-loop electromagnetic (FLEM) geophysics survey at the Central prospect area (Figure 8). Two
shallow priority late time conductors 2200N (8,750 Siemens) and Sully (16,000 Siemens) were identified for drill testing
(Figure 9).
Figure 8 (left)- Geological map of the Central and Andrews Shaft West area illustrating modelled conductors (plates). Figure 9
(right)- Geological map of the Central EM target plates (labelled with model conductance in Siemens) with gridded Ch40 Residual
FLEM data. Locations of the two diamond holes CNDD001 & 002 as illustrated.
2200N target is located within a cluster of conductors (Figure 9) and is coincident with an elongated magnetic anomaly.
2200N occurs within the host ultramafic sequence. Drilling of diamond hole CNDD001 to 368.9m effectively tested this
EM plate, finding ultramafic-hosted irregular vein-like pyrrhotite and metasediment-hosted concentrations of
massive/semi-massive pyrrhotite coincident with the plate.
The Sully target is located proximal to the Karramindie Shear Zone, adjacent to ultramafics, and has a significantly high
conductance of 16,000 Siemens (Figure 9). CNDD002 was drilled to 387.4m and intersected metasediment-hosted
concentrations of massive/semi-massive pyrrhotite coincident with the anticipated plate intersection.
Southern Cross Projects - New Exploration Ni–Cu-Co-PGE Growth Front
During the June 2022 Quarter, the Company added a new exploration growth front, potentially offering two Nickel –
Copper - Cobalt - PGE (Platinum Group Elements) projects. These comprise the Jilbadji and Karalee projects located
near Southern Cross, Western Australia, which cover two interpreted layered mafic-ultramafic intrusive complexes.
Page 13
The Southern Cross tenement package consists of the Jilbadji target (E63/2147, E63/2148) and the Karalee target
(E77/2889, E15/1849) comprising a combined area of 678km2. The projects are located within the eastern margins of
the Yilgarn craton and are proximal to the Forrestania and Lake Johnston nickel belts, and close to the well-established
mining town of Southern Cross, Western Australia (Figure 10).
Maximus Resources Limited
Directors' Report
30 June 2022
Figure 10 – Location of Southern Cross Projects Jilbadji and the Karalee targets. The map highlights all known Nickel occurrences
(orange) and Lithium occurrences (purple).
The projects are located between Poseidon Nickel’s (ASX:POS) Maggie Hays/Emily Ann Nickel operations and Western
Areas (ASX:WSA) Operations including Flying Fox and Spotted Quoll. The Jilbadji target is located ~25km from the
globally significant Mt Holland Lithium Project (ASX:WES / SQM JV)(Figure 10).
The Southern Cross Projects will provide the Company with further exposure to the growing demand for nickel, copper
and PGE, opening up a new exploration and growth pathway alongside the Company’s existing gold, nickel and lithium
portfolio near Kambalda.
The Jilbadji and Karalee targets have distinctive circular/arcuate magnetic features with coincidental gravity highs.
Regional geology mapping does not explain the coincident magnetic and gravity features (Figure 10).
A review of limited historical exploration data, along with the interpretation of existing geophysical datasets, supports
the interpretation of a prospective mafic-ultramafic intrusive geological setting at both projects.
The addition of these exciting new Ni-Cu-Co-PGE projects to Maximus’ exploration portfolio provides a low-cost and
highly prospective entry point for the Company with significant exposure to battery metals markets. Both projects are
well located, and the Company is focused on defining areas of significant mineralisation, to advance these projects
rapidly and effectively together with our continuing development strategy at Spargoville.
The circular magnetic features at both Karalee and Jilbadji (Figure 11) targets are interpreted to be mafic/ultramafic
intrusions. The area has experienced limited exploration attention due to the presence of transported cover and regional
geology indicating that the area is dominated by granitic rocks. Shallow drilling at Karalee intersected mafic rocks,
highlighting the potential for the feature to be mafic/ultramafic intrusions or assimilated greenstones.
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Maximus Resources Limited
Directors' Report
30 June 2022
The circular and arcuate features with discrete magnetic bands are suggestive of layered intrusives. Layered mafic
intrusions are prospective for Ni-Cu-Co-PGE deposits and have seen renewed exploration focus in Western Australia
with discoveries including Nova-Bollinger (ASX:IGO), Julimar (ASX:CHN), and at the Savannah Nickel Mine (ASX:PAN)
in the Kimberley’s. The potential for exceptionally valuable intrusion-style deposits such as these is being unlocked with
modern exploration techniques, which Maximus plans to execute across the Southern Cross project. The observed
gravity anomaly is also consistent with mafic/ultramafic intrusives. Note the gravity response of the Jilbadji and Karalee
targets in comparison with known greenstone belts to the west and east (Figure 11).
Figure 11 – Composite magnetics (greyscale detail) and gravity (coloured overlay) map of the Southern Cross region. The four new
MXR tenements are shown as white polygons. Location of Southern Cross Project tenements (inset) – displaying MXR tenements
only, for clarity.
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Maximus Resources Limited
Directors' Report
30 June 2022
The Company was awarded an EIS co-funded drilling grant (up to $90,000) for the reconnaissance reverse circulation
(RC) drilling at the Jilbadji prospect area. The purpose of the EIS co-fund drilling is to determine the geological setting
and provide an understanding of the magnetic and gravity anomalies through a traverse of wide-spaced holes that will
trace the peak magnetic and gravity responses.
Lithium – Regional Exploration
Maximus holds a significant tenement position (Figure 12) within the world-class Southern Yilgarn Li-Cs-Ta Province
which hosts several lithium projects including, Liontown Resources Limited (ASX:LTR) Buldania Lithium Project,
Essential Minerals Limited’s (ASX:ESS) Pioneer Dome lithium Project and, the Bald Hill Lithium Mine which are located
~20kms south of the Mt Marion lithium mine, operated by Mineral Resources Limited (ASX:MIN), with a Mineral Resource
of 71.3Mt at 1.37% Li2O (ASX:MIN announcement 31 October 2018).
Legacy lithium exploration programmes across the Spargoville tenements have been limited to discrete parts of the
Lefroy and Larkinville lithium prospects, which included sampling of outcropping pegmatites and the re-sampling of
legacy RC drill cuttings at the Lefroy prospect.
Maximus engaged specialist consultants CSA Global to review legacy and current geological data and assist in
progressing lithium exploration across the Company’s Spargoville tenements, which has had limited exploration for
spodumene-bearing pegmatites. The external review focused on the Potassium/Rubidium (K/Rb) ratio, which is widely
used to evaluate the fractionation state and mineralisation potential of pegmatites, with spodumene-bearing
pegmatites typically having a ratio ranging from 5 – 40 K/Rb.
The review confirmed that the majority of the Lefroy and Larkinville Project pegmatites have moderate to strong
fractionation characteristics, supported by elevated values for lithium, rubidium and caesium confirming they belong
to the rare-element Lithium-Caesium-Tantalum (LCT) subtype.
Figure 12– Maximus Resources Lithium prospects location map with significant deposits in the region.
LARKINVILLE LITHIUM PROSPECT
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Maximus Resources Limited
Directors' Report
30 June 2022
The Larkinville Lithium Prospect (75% Maximus) is located approximately ~15km south of the Company’s Lefroy Lithium
Prospect (west of the Larkinville Gold deposit) and is surrounded by Marquee Resources’ West Spargoville Project.
The external review confirmed that Larkinville pegmatites are prospective zoned LCT type pegmatites, that are strongly
fractionated with elevated Lithium values up to 5.29% Li2O and 2.93% Rb (ASX: MXR announcement 31 March 2022).
Supplementary rock samples from the north of the tenement confirm elevated lithium occurrences up to 2.7% Li2O in
several recent samples including:
GDA East
GDA North
Sample ID
Li2O %
Cs (ppm)
Nb (ppm)
Rb (ppm)
Ta (ppm)
353694
353697
353697
353687
353693
6523149
6523148
6523134
6523133
6523154
SL1628
SL1629
SL1630
SL1631
SL1637
1.4
0.9
2.0
2.7
0.6
2340
1760
3230
4170
1030
83
36
51
50
84
8,870
7,570
11,650
17,250
5,400
66.7
43.7
67.4
71.4
120.5
Table 1 – Larkinville rock samples
X-ray diffraction (XRD) analysis of the rock samples indicates multiple micas present with muscovite, lepidolite,
polylithionite and possible tainiolite. The K/Rb data indicates the pegmatites are moderate to strongly fractionated.
These observations, plus elevated lithium in surface samples, support drill testing of these pegmatites.
LEFROY LITHIUM PROSPECT
The Lefroy Lithium Prospect (100% MXR) is located ~20km south of the Mineral Resources Limited (ASX: MIN) Mt Marion
Lithium JV operation. The external review indicated that the outcropping pegmatites across the Lefroy Lithium Prospect
have characteristics (K/Rb ratio) of LCT pegmatites. The sample results for the northern pegmatite zones indicate
variable fractionation using the K/Rb ratio, while the southern pegmatites are strongly fractionated with low K/Rb ratios
(4-15) indicating the potential for domains of zonation lithium enrichment within the pegmatite intrusions.
XRD analyses of rock chips from the Lefroy Lithium Project (southern pegmatite) area was completed to confirm sample
mineralogy, validating field observations of lepidolite and other lithium-bearing micas such as polylithionite present.
Royalties
Flushing Meadows – Western Australia - Gold
The Yandal Project (also known as Flushing Meadows) is currently being progressed by Yandal Resources Ltd, formally
Orex Mining Pty Ltd (Orex) and is proposing to develop the Flushing Meadows gold project in which Maximus retains a
$40 per ounce royalty interest.
The royalty obligation by Yandal Resources to Maximus is: a) $40 per ounce on the first 50,000 ounces of gold from
the tenement area. Yandal (formally held by Orex) must prepay the first $200,000 of royalties (representing the first
5,000 ounces of gold production) upon commencement of gold production from all or any part of the tenement area;
and b) $20 per ounce for gold in excess of 50,000 ounces and less than 150,000 ounces in respect of gold from the
tenement area. Additionally, there is a 3% net smelter return royalty for any gold by-product or co-product from the
tenement area. The royalty is satisfied once there is 150,000 ounces of gold produced from any part of the tenement
area and is capped at $4,000,000.
Bird in Hand Gold Project - South Australia - Gold
The Company retains entitlement to two contingent $1 million payments (totaling $2 million) plus a gold production
royalty in accordance with the Bird in Hand Sale Agreement with Terramin Australia Limited (Terramin). The first
payment is due upon the environmental approval to mine (PEPR) from the South Australian Department for Energy and
Mining, and the second payment is payable on the commencement of bullion production from the site. Maximus also
Page 17
Maximus Resources Limited
Directors' Report
30 June 2022
retains a 0.5% gross royalty on gold produced in excess of 50,000 ounces mined. The Bird in Hand Gold Project has a
resource base of 588,000 tonnes at 13.3g/t for 252,000 ounces of gold. Terramin announced that the Mining Lease
Application (MLA) has been submitted to the South Australian Department for Energy and Mining for the Bird-in-Hand
Gold Project and is currently under consideration for approval.
Canegrass Project – Western Australia - Vanadium
Maximus Resources is entitled to a 2% Net Smelter Return (NSR) for all minerals produced from the Canegrass Project.
Discovered by Maximus, the current JORC (2012) Vanadium Mineral Resource Estimate is 79 Mt @ 0.64% V 2O5. The
Project is ~15km from Windimurra Vanadium operations and is currently owned by Flinders Mines (ASX:FMS).
CORPORATE HIGHLIGHTS
During the year, the Company completed a placement raising $12 million before costs. The placement was completed
via 2 tranches with the second tranche approved by shareholders at a General Meeting of the Company held on 8
October 2021. The Company completed the tranche 1 allocation on 25 August 2021 by issuing 12,182,343 ordinary
shares at an issue price of $0.068 per share raising $828,399 before costs. The tranche 2 allocation of 164,288,246
ordinary shares at $0.068 per share was issued on 15 October 2021 raising $11,171,601 before costs. The placement
included the introduction of Pantoro Limited (ASX:PNR) (Pantoro) as a cornerstone investor. Following the tranche 2
allocation Pantoro holds 19.9% of the share capital of the Company. On completion of the second tranche, the
Company appointed Pantoro representatives Mr Paul Cmrlec as a Non-executive director and Mr Scott Huffadine, as
his alternative Non-Executive Director.
During the year, the Company also completed the following issue of securities which were approved at a General
Meeting held on 8 October 2021:
• On 18 October 2021, 12,000,000 unlisted options with an exercise price of $0.085 expiring on 31 October 2024
were issued to Petra Capital Pty Ltd for broking services.
• On 29 October 2021, 6,299,542 listed options with an exercise price of $0.11 expiring on 6 January 2023 were
issued to shareholders who participated in a placement on 21 April 2021.
• On 29 October 2021, 4,000,000 listed options with an exercise price of $0.11 expiring on 6 January 2023 were
issued to GTT Ventures Pty Ltd for broking services relating to a placement completed on 21 April 2021.
• On 13 October 2021, 625,000 ordinary shares were issued at a price of $0.08 per share, raising $50,000 before
costs. The shares were issued to the directors who agreed to be subscribed to shares in April 2021.
The General Meeting on 8 October 2021 also ratified a pro-rata offer of securities to optionholders of the MXROD Class
(MXROD) at an issue price of $0.003 per Option to subscribe to one new option with an exercise price of $0.11 expiring
on 6 January 2023. The opening date for the offer was 1 December 2021. The pro-rata offer closed on 30 December
2021 and the Company received applications for 34,346,639 options raising $103,039 before costs. The shortfall of
4,019,794 options arising from the offer was fully subscribed raising $12,059 before costs. The 38,366,433 options
were issued on 7 January 2022 comprising the MXROE Class.
During January 2022 MXROD options holders exercised the following options:
• 6 January 2022 1 option, resulting in 1 ordinary share being issued raising $0.11 before costs.
• 7 January 2022 37,491 options resulting in 37,491 ordinary shares being issued raising $4,124 before costs.
On 7 January 2022, 38,324,941 MXROD listed options expired in accordance with their issued terms
On 8 January 2022, 1,000,000 unlisted options of the MXRAL Class expired in accordance with their issued terms.
The options
On 28 January 2022, a MXROE optionholder exercised 244 options, resulting in 244 ordinary shares being issued, raising
$26 before costs.
Page 18
Maximus Resources Limited
Directors' Report
30 June 2022
During the year, Tim Wither and Travis Murphy’s milestone 1 incentive and performance rights vested resulting in
500,000 fully paid ordinary shares being issued to Mr Wither on 12 August 2021 and 175,500 fully paid ordinary shares
being issued to Mr Murphy on 12 October 2021.
On 30 June 2022 2,000,000 Performance Rights held by Tim Wither were forfeited as they did not meet the vesting
conditions and a further 994,500 Performance Rights held by Travis Murphy were forfeited following cessation of
employment with the Company.
During July 2021, Maximus completed discussions with its insurers regarding a claim relating to plant failure at the
Burbanks Processing Plant (Burbanks). The Group received $390,000 in respect of its claim net of excess and costs
in early August 2021.
The Company’s wholly owned subsidiary, Eastern Goldfields Milling Services Pty Ltd (EGMS) was able to finalise the
ongoing dispute with Empire Resources Limited (Empire) during September 2021. This Arbitration process commenced
during the 2019 financial year to determine a final amount payable for a recovered gold reconciliation relating to
Burbanks. The Arbitration hearing finished in March 2021, with the Arbitrator providing a partial award in May 2021.
Based on the Arbitration outcome, a confidential settlement payment to EGMS was received relating to the recovery of
arbitration costs and ending the dispute with Empire.
In response to the COVID-19 global health emergency the Western Australian government released operating guidelines
for exploration companies, which the Group and contractors followed, resulting in minimal disruption to operations.
Maximus’ continues to monitor government advice and take all reasonable precautions for employees, community
members, contractors and suppliers.
3. Significant changes in the state of affairs
There have been no significant changes in the above state of affairs from the 2021 financial year to the 2022 financial
year.
Events arising since the end of the reporting period
4.
On 12 August 2022 1,000,000 Incentive Rights vested resulting in 1,000,000 ordinary shares being issued on 10 August
2022.
There has been no other transaction or event of a material or unusual nature that has arisen in the interval between
the end of the financial year and the date of this report that is likely, in the opinion of the directors, to affect significantly
the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial
years.
5. Future business developments, prospects and business strategies
The Company’s focus is at the Spargoville Projects, located 20km from Kambalda, Western Australia’s premier gold
and nickel mining district. The Company holds 48 sq km of tenements and a further 60 sq km in gold rights across the
fertile Spargoville Shear Zone, which hosted the Wattle Dam Gold Mine (Wattle Dam). Mined until 2012, Wattle Dam
was one of Australia’s highest-grade gold mines producing ~286,000oz @ 10.1g/t gold.
In addition to its gold prospects, the Company’s Spargoville tenements are highly prospective for Kambalda-style
komatiite-hosted nickel sulfide and lithium bearing spodumene mineralisation, which the Company has continue to
progress exploration activities during the period.
During the period the Company has added a two new projects, , which are prospective for Nickel – Copper - Cobalt -
PGE mineralisation. The recently granted Southern Cross tenement comprise a combined area of 678km2, covering two
interpreted layered mafic-ultramafic intrusive complexes and are located within the eastern margins of the Yilgarn
craton, proximal to the Forrestania and Lake Johnston nickel belts, and close to the well-established mining town of
Southern Cross, Western Australia.
The Company’s short-term strategy continues to be aimed at building value, by increasing gold resources and
expanding the Company’s future development options centred around the existing underground infrastructure at
Wattle Dam, whilst actively advancing greenfield exploration across several exciting nickel and lithium prospects.
6. Environmental regulation
The Group’s operations are subject to significant environmental regulation under both Commonwealth and State
Page 19
legislation in relation to discharge of hazardous waste and materials arising from any exploration or mining activities
and development conducted by the Group on any of its tenements. The Group believes it is not in breach of any
environmental obligation.
Maximus Resources Limited
Directors' Report
30 June 2022
Information on Directors and Company Secretary
Steven Zaninovich B.Eng - Independent Non-executive Director, Chair
Appointed - Appointed 14 July 2020
Special responsibilities
Chair of the Board
Member of the Audit, Risk and Corporate Governance Committee
Member of the Remuneration Committee
Experience & expertise
Mr Zaninovich is a qualified engineer with over 25 years’ experience in the mining industry. His career has
encompassed all stages of the project development life cycle, from exploration and feasibility to constructions and
operations. Mr Zaninovich has worked extensively in West Africa and Australia in a variety of project has spent more
than 25 years in a variety of project development, maintenance and operation roles. He served as COO with Gryphon
Minerals (“Gryphon”) before assuming the role of Vice President of Major Projects, and becoming part of the Executive
Management Team, at Teranga Gold Corporation following its acquisition of Gryphon, where he was responsible for the
bankable feasibility study for the Wahgnion Gold Project.
Current Listed Directorships
Mako Gold Limited (Appointed October 2020)
Sarama Resources Limited (Appointed June 2020)
Bellavista Resources Limited (Appointed November 2021)
Past Listed Directorships (last 3 years):
Canyon Resources Limited (Appointed January 2019 to August 2022)
Indiana Resources Limited (Appointed February 2019 to February 2021)
Timothy Wither - MBA, BSc, GDip, GradDipNatRs, GAICD, MAusIMM - Managing Director
Appointed - Appointed 10 August 2020
Special responsibilities
Managing Director
Experience & expertise
Mr Wither has over 18 years in the resource industry both domestically and internationally, with key involvement in
development of several greenfield base metal projects in Australia, India, Africa and South America. Mr Wither has
held senior executive and strategic leadership roles. Mr Wither is a graduate of the Australian Institute of Company
Directors, holds a Master of Business Administration from Curtin’s Graduate School of Business (CGSB), Graduate
Diploma in Mining (WASM) and Bachelor of Sciences in Mine Engineering, Surveying (WASM) and currently a candidate
for Masters of Commercial and Resources Law at the University of Western Australia.
Mr Wither is a member of the Australian Institute of Company Directors and the Australian Institute of Mining and
Metallurgy.
Current Listed Directorships
Nil
Page 20
Maximus Resources Limited
Directors' Report
30 June 2022
Past Listed Directorships (last 3 years)
Symbol Mining Limited (Appointed 1 March 2019 to 5 February 2021)
Gerard Anderson Assoc. Applied Geology, Grad Dip Bus, MSc - Independent Non executive Director
Appointed - Appointed 1 November 2018
Special responsibilities
Chair of the Remuneration Committee
Member of the Audit, Risk and Corporate Governance Committee
Experience & expertise
Mr Anderson is a geologist with 43 years’ experience in exploration, mine and resource geology principally in iron ore,
gold and base metals. Gerard’s senior management positions have included as Exploration Superintendent Boddington
Gold Mine, Chief Geologist Bronzewing Gold Mine, Chief Geologist Kalgoorlie Consolidated Gold Mines, General Manager
Golden Grove Operations, General Manager Newmont Joint Ventures and as Managing Director of Croesus Mining
Limited, Centrex Metals Limited, Archer Exploration Limited and Woomera Mining Limited.
In addition to his geology qualifications Mr Anderson has completed a post graduate degree in Business and a Masters
in Mineral Economics.
Current Listed Directorships
Nil
Past Listed Directorships (last 3 years)
Woomera Mining Limited (Appointed March 2018 to October 2020)
Martin Janes BEc GAICD - Independent Non executive Director
Appointed - Appointed 1 August 2019
Special responsibilities
Chair of the Audit, Risk and Corporate Governance Committee
Member of the Remuneration Committee
Experience & expertise
Mr Janes is a mining executive with over 30 years’ experience. Mr Janes is Executive Officer of Terramin Australia
Limited (ASX: TZN) a position he commenced in June 2013 having been that company’s CFO from August 2006 to
December 2010. Mr Janes was previously employed by ASX listed uranium company Toro Energy Limited (ASX: TOE)
(May 2011 to October 2012) where he held the position of General Manager – Marketing & Project Finance.
Mr Janes has a strong finance background and specialty covering equity, debt & related project financing tools and
commodity off-take negotiation. While employed by Newmont Australia (previously Normandy Mining) his major
responsibilities included corporate & project finance, treasury management, asset sales and product offtake
management. Mr Janes has a Bachelor of Economics and is member of the Australian Institute of Company Directors.
Current Listed Directorships
Nil
Past Listed Directorships (last 3 years)
Havilah Resources Limited (Appointed January 2019 to October 2019)
Twenty Seven Co Limited (Appointed October 2014 to April 2019)
Page 21
Maximus Resources Limited
Directors' Report
30 June 2022
Paul Cmrlec B.Eng - Non executive Director
Appointed - Appointed 18 October 2021
Special responsibilities
Member of the Remuneration Committee
Experience & expertise
Mr Cmrlec holds a Bachelor of Mining Engineering degree with Honours from the University of South Australia. He has
more than 20 years experience in corporate and operational management of mining companies. Paul has held a
number of operational and planning roles with several companies and was previously the Group Underground Mining
Engineer for Harmony Gold Australia and the Group Mining Engineer for Metals X Limited. In addition to operational
mining roles, Mr Cmrlec’s experience includes the general management of major feasibility studies for the Wafi Copper-
Gold deposit in Papua New Guinea, and the Wingellina Nickel-Cobalt deposit in the Central Musgraves region of Western
Australia.
Current Listed Directorships
Pantoro Limited (Appointed 1 October 2010)
Past Listed Directorships (last 3 years):
Nil
Scott Huffadine BSc Eng – Alternate Director (P Cmrlec)
Appointed - Appointed 18 October 2021
Special responsibilities
Alternate Director – P Cmrlec
Experience & expertise
Mr Huffadine holds a Bachelor of Science with Honours. Mr Huffadine is a geologist with more than 20 years’
experience in the resource industry, specifically project management, geology and executive management. Mr
Huffadine has held several key management positions ranging from operational start-ups involving open pit and
underground mining projects, through to large integrated operations in gold and base metals. He was previously
Managing Director of Kingrose Mining Limited, and Executive Director of Metals X Limited and Managing Director of
Westgold Resources Limited.
Current Listed Directorships
Pantoro Limited (Appointed 15 March 2016)
Kingfisher Mining Limited (Appointed 9 December 2020)
Past Listed Directorships (last 3 years):
Nil
Company Secretary
Rajita Alwis LLB B.Com, CA FGIA
Appointed 17 December 2019
Experience and expertise
Ms Alwis has over 20 years’ experience in the accounting profession. Ms Alwis has provided company secretarial and
CFO services to a number of ASX listed companies. She is highly experienced in in governance, financial reporting,
corporate advisory and corporate compliance. Ms Alwis has been a member of Chartered Accountants Australia and
New Zealand for over 15 years and regularly facilitates workshops for the CA Program which covers risk, strategy,
finance, analysis, corporate governance, corporate social responsibility and ethics.
Page 22
Meetings of directors
The numbers of meetings of the Company's board of directors and of each board committee held during the year ended
30 June 2022, and the number of meetings attended by each director were:
Maximus Resources Limited
Directors' Report
30 June 2022
Director name
Steven Zaninovich
Timothy Wither
Gerard Anderson
Martin Janes
Paul Cmrlec (Appointed 18 October 2021)
Indemnification and insurance of officers
Director Meetings
Attended
Held
While
Director
Audit, Risk & Corporate
Governance Committee
Meetings
Attended
Held
While
Director
7
7
7
7
5
6
7
7
7
5
3
3
3
3
-
3
3
3
3
-
The Company has entered into deeds of indemnity with each director whereby, to the extent permitted by the
Corporations Act 2001, the Company agreed to indemnify each director against all loss and liability incurred as an
officer of the Company, including all liability in defending any relevant proceedings.
The Company is required to indemnify the directors and other officers of the Company against any liabilities incurred
by the directors and officers that may arise from their position as directors and officers of the Company. No costs were
incurred during the year pursuant to this indemnity.
Insurance premiums
Since the end of the previous year, the Group has paid insurance premiums to insure the directors and officers in
respect of directors' and officers' liability and legal expenses insurance contracts.
Proceedings on Behalf of Group
No person has applied to the Court under section 237 of the Corporations Act 2001 to bring proceedings on behalf of
the Group or intervene in any proceedings to which the Group is a party for the purpose of taking responsibility on
behalf of the Group for all or any part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Group with leave of the Court under section 237
of the Corporations Act 2001.
Non audit services
The Board of Directors, in accordance with advice from the Audit, Risk and Corporate Governance Committee, is
satisfied that the provision of non audit services during the year is compatible with the general standard of
independence for auditors imposed by the Corporations Act 2001. The directors are satisfied that the services disclosed
below did not compromise the external auditor’s independence for the following reasons:
•
•
all non audit services are reviewed and approved by the Audit, Risk and Corporate Governance Committee prior
to commencement to ensure they do not adversely affect the integrity and objectivity of the auditor; and
the nature of the services provided do not compromise the general principles relating to auditor independence in
accordance with APES 110: Code of Ethics for Professional Accountants set by the Accounting Professional and
Ethical Standards Board.
Fees for non audit services paid or payable to the external auditors or its related practices during the year ended 30
June 2022 was $6,700 (2021: $5,800).
Page 23
Maximus Resources Limited
Directors' Report
30 June 2022
Share options
As at 30 June 2022 there were 60,665,731 (2021: 39,366,433) unissued ordinary shares under options. During the
year 37,736 shares were issued as a result of exercise of options (2021: 1,311,934).
Remuneration report – Audited
The information provided in this remuneration report has been audited as required by section 308(3C) of the
Corporations Act 2001.
The Remuneration report is set out under the following main headings:
A Key management personnel
B Remuneration Policy
D Details of remuneration
E Employment Contracts
F Service agreements
G Share based compensation
H Shareholding of key management personnel
I- Transactions with Key Management personnel
A. Key management personnel (KMP)
Key management personnel are those persons having authority and responsibility for planning, direction and
controlling the activities of the entity, directly or indirectly, including all directors.
Non-Executive
Directors
Position
Period position was held
during the year
Steven Zaninovich
Independent Non-Executive Director, Chair Full Year
Gerard Anderson
Independent Non-Executive Director
Full Year
Martin Janes
Independent Non-Executive Director
Full Year
Paul Cmrlec
Non-Executive Director
Appointed 18 October 2021
Scott Huffadine
Alternate Director – P Cmrlec
Appointed 18 October 2021
Executive Directors
Position
Timothy Wither
Managing Director
Full Year
Executives
Position
Rajita Alwis
Company Secretary
Travis Murphy
Chief Geologist
Full Year
Full Year
Individuals above are considered key management personnel as they meet the definition being identified as KMP. In
particular personnel other than Directors have authority and responsibility, whether directly or indirectly, for the
planning, operations and strategic direction of the Group’s activities and operations.
Page 24
Maximus Resources Limited
Directors' Report
30 June 2022
B. Remuneration Policy
The Group's policy for determining the nature and amounts of emoluments of board members and other key
management personnel of the Group is outlined below:
The Company's Constitution specifies that the total amount of remuneration of non-executive directors shall be
fixed from time to time by a general meeting. The current maximum aggregate remuneration of non-executive
directors was set at $300,000 per annum in October 2006 and remains at that same level. Directors may
apportion any amount up to this maximum amount amongst the non-executive directors as they determine.
Directors are also entitled to be paid reasonable travelling, accommodation and other expenses incurred in
performing their duties as directors.
The remuneration of the Managing Director, Mr Tim Wither, is determined by the non-executive directors on the
Board as part of the terms and conditions of his employment which are subject to review from time to time. The
remuneration of other executive officers and employees is determined by the Managing Director subject to the
approval of the Board. Mr Wither was appointed Managing Director on 10 August 2020.
Ms Alwis is engaged under a service contract with Alwis & Alwis Pty Ltd. During the year, fees paid or payable for
service provided by Ms Alwis was $86,640.
Mr Murphy resigned effective 30 June 2022.
Non-executive director remuneration is by way of fees and/or statutory superannuation contributions. Non-
executive directors do not participate in schemes designed for remuneration of executives nor do they receive
options or bonus payments and are not provided with retirement benefits other than salary sacrifice and statutory
superannuation.
The Group's remuneration structure is based on a number of factors including the particular experience and
performance of the individual in meeting key objectives of the Group. The Board is responsible for assessing
relevant employment market conditions and achieving the overall, long-term objective of maximising shareholder
benefits, through the retention of high-quality personnel.
The Group does not presently emphasise payment for results through the provision of cash bonus schemes or
other incentive payments based on key performance indicators of the Group given the nature of the Group's
business as a junior listed mineral exploration entity and the current status of its activities.
However, the Board may approve the payment of cash bonuses from time to time in order to reward individual
executive performance in achieving key objectives as considered appropriate by the Board.
The Group also has an Employee Incentive Option and Performance Rights Plan approved by shareholders that
enables the Board to offer eligible employees rights to acquire ordinary fully paid shares in the Company. Under
the terms of the Plan, rights to acquire ordinary fully paid shares at no cost may be offered to the Group's eligible
employees as determined by the Board in accordance with the terms and conditions of the Plan.
The objective of the Plan is to align the interests of employees and shareholders by providing employees of the
Group with the opportunity to participate in the equity of the Company as a long-term incentive to achieve
greater success and profitability for the Group and to maximise the long-term performance of the Group.
The employment conditions of the Managing Director have been formalised in a contract of employment. The base
salary as set out in the employment contract is reviewed annually. The Managing Director’s contract may be
terminated at any time by mutual agreement and in instances of serious misconduct the Company may terminate
his agreement without notice.
No remuneration consultants were engaged for the year ending 30 June 2022.
Page 25
Maximus Resources Limited
Directors' Report
30 June 2022
C. Details of Remuneration
2022
Short-term employee benefits
Post
employment
benefits
Long-term
employee
benefits
Share-Based
payments
Name
Fees
Salary
Superannuation
Annual
leave
accrued
Long
service
leave
accrued
Options
Rights
Total
Steven Zaninovich*
50,000
$
$
-
$
-
$
-
Timothy Wither
-
268,750
12,058
26,875
Gerard Anderson**
45,455
Martin Janes*
Paul Cmrlec**
Scott Huffadine**
Rajita Alwis
50,000
16,098
16,098
86,640
-
-
-
-
-
-
-
-
4,545
-
1,610
1,610
-
Travis Murphy***
-
195,000
9,975
19,500
Total
264,291
463,750
22,033
54,140
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
-
$
50,000
276,044
583,727
-
-
-
-
50,000
50,000
17,708
17,708
86,640
(17,797)
206,678
258,247
1,062,461
Ms Alwis is engaged under a service contract with Alwis & Alwis Pty Ltd. During the year, fees paid or payable for service provided by Ms
Alwis was $86,640.
*As at 30 June 2022, non-executive director fees of $4,167 were unpaid.
**As at 30 June 2022, non-executive director fees of $2,084 were unpaid. Mr Cmrlec was appointed as a director on 18 October 2021. Mr
Huffadine was appointed as an Alternate Director to Mr Cmrlec on 18 October 2021.
***Incentive Rights did not vest due to failure to satisfy service conditions
2021
Short-term employee benefits
Post
employment
benefits
Long-term
employee
benefits
Share-Based
payments
Name
Fees
Salary
Superannuation
Annual
leave
accrued
Long
service
leave
accrued
Options
Rights
Total
Steven Zaninovich
48,387
$
$
-
$
-
$
-
Timothy Wither
-
222,446
15,923
21,132
Gerard Anderson*
50,000
Martin Janes**
Kevin Malaxos
Rajita Alwis
50,000
25,897
71,387
-
-
-
-
-
-
-
-
-
-
-
-
Travis Murphy
-
146,250
10,688
13,894
Total
245,671
368,696
26,611
35,026
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
-
$
48,387
150,956
410,457
-
-
-
-
50,000
50,000
25,897
71,387
34,645
205,477
185,601
861,605
Mr Zaninovich was appointed as a director on 13 July 2020. Unpaid director fees at 30 June 2021 was $8,333.33
Mr Wither was appointed Managing Director on 10 August 2020
Ms Alwis is engaged under a service contract with Alwis & Alwis Pty Ltd. During the year, fees paid or payable for service provided by Ms
Alwis was $71,387.
Mr Murphy commenced employment on 1 October 2020.
*As at 30 June 2021, non-executive director fees of $8,696.33 were unpaid.
**As at 30 June 2021, non-executive director fees of $8,333.33 were unpaid.
Page 26
Maximus Resources Limited
Directors' Report
30 June 2022
The relative proportions of remuneration that fixed and those that are at risk are as follows:
Name
At risk - STI*
At risk - STI*
At risk - LTI**
At risk – LTI**
2022
2021
2022
2021
%
-
-
%
-
-
%
47
-
%
37
17
Timothy Wither
Travis Murphy
*Short-term incentives (STI) include cash incentive payments (bonuses) linked to company and/or individual performance.
**Long-term incentive (LTI) includes equity grants issued via the Company’s Employee Incentive Option and Performance Rights Plan. This plan
is designed to provide long term incentives for executives to deliver long term shareholder returns.
E. Employment Contracts
The Board negotiated an employment contract with Mr Wither with no fixed term at a salary of $250,000 per annum
plus superannuation guarantee contributions. The termination notice period is 3 months for both the Company
and employee and the contract makes allowance for a 6-month base salary with a change of control benefit.
Mr Murphy is engaged under an employment contract with no fixed term at a salary of $195,000 per annum plus
superannuation guarantee contributions. The termination notice period is 12 weeks for the Company or 4 weeks
from the employee.
F
Service Agreements
All non-executive directors were engaged as directors with formal agreements per the ASX Corporate Governance
Principles and Recommendations Fourth Edition.
Ms Alwis is engaged under a service contract with Alwis & Alwis Pty Ltd. The notice period is one month as outlined
in the service contract.
G Share based compensation
Incentive & Performance rights
The Company has an Employee Incentive Option and Performance Rights Plan approved by shareholders that
enables the Board to offer eligible employees rights to acquire ordinary fully paid shares in the Company. Under the
terms of the Plan, rights to acquire ordinary fully paid shares at no cost may be offered to the Company's eligible
employees as determined by the Board in accordance with the terms and conditions of the Plan.
The table below show a reconciliation of all Incentive and Performance Rights held by KMP at the beginning and end
of the period, reflecting the overall exposure of each KMP to the Company’s performance and share value. It also
shows the amount of distributions received during the period. Other changes show forfeited and cancelled rights.
KMP
Type
Held at 1 July
2021
Granted during
the year
Vested
Other changes
Held at 30 June
2022
Tim Wither
Incentive Rights
2,500,000
-
(500,000)
-
2,000,000
Performance Rights
-
4,000,000
-
(2,000,000)
2,000,000
Travis Murphy
Incentive Rights
1,170,000
-
(175,500)
(994,500)
-
Page 27
Maximus Resources Limited
Directors' Report
30 June 2022
Fair value of Rights
Incentive Rights
The Fair Value of the Incentive Rights were valued on the basis that the one incentive rights has the same value as
one ordinary share. The Board then makes a determination annually as to the probability of the rights vesting.
The Rights with an assessed probability of greater than 50% are recognized in the accounts. The Rights with an
assessed probability of less than 50% have not been recognized in the accounts. The fair value of such Incentive
rights is amortised and disclosed as part of remuneration on a straight-line basis over the vesting period.
The Vesting Conditions for the Incentive Rights are as follows:
•
•
•
Tranche 1 Rights will vest on the first anniversary of employment with the Company;
Tranche 2 Rights will vest on the second anniversary of employment with the Company; and
Tranche 3 Rights will vest on the date the Company’s directors resolve (in their discretion), the Company has
advanced a project to initial gold production and the employee is still employed with the Company.
The key inputs to determine the fair value of the Incentive Right is as follows:
KMP
Type
No. or
Rights
Grant Date
Vesting Date
Expiry date
Share price
at Grant
Date
Fair
Value
Tim Wither
Tranche 1
500,000
14 October 2020
10 August 2021
10 August 2021
$0.175
$87,500
Tranche 2
1,000,000
14 October 2020
10 August 2022
10 August 2022
$0.175
$175,000
Tranche 3
1,000,000
14 October 2020
Variable
Variable
$0.175
$175,000
Travis Murphy
Tranche 1
175,500
21 April 2021
1 October 2021
1 October 2021
$0.096
$16,848
Tranche 2
409,500
21 April 2021
1 October 2022
1 October 2022
$0.096
$39,3121
Tranche 3
585,000
21 April 2021
Variable
Variable
0.096
$56,160
Performance Rights
The Performance Rights were independently valued under the Monte Carlo method. This is considered the most
appropriate valuation method due to the consideration of market based conditions influencing the vesting of the
performance rights. The fair value of such Performance Rights is amortised and disclosed as part of remuneration
on a straight-line basis over the vesting period.
The Rights are subject to the following vesting conditions:
Tranche 1: 2,000,000 Performance Rights
The Holder (or if the Holder is a nominee of a person, that person) must remain an Eligible Participant until 30 June
2022.
o 1,000,000 Performance Rights will vest conditional upon the Company achieving a TSR of 15% or more at the end of
the performance period.
o Up to 1,000,000 Performance Rights will vest in accordance to the Relative TSR Performance** conditions as
detailed under the Total Shareholder Return section.
Tranche 2: 2,000,000 Performance Rights
The Holder (or if the Holder is a nominee of a person, that person) must remain an Eligible Participant until 30 June
2023.
o
1,000,000 Performance Rights will vest conditional upon the Company achieving a TSR of 15% or more at the end
of the performance period.
o Up to 1,000,000 Performance Rights will vest in accordance to the Relative TSR Performance** conditions as
detailed under the Total Shareholder Return section.
Page 28
Maximus Resources Limited
Directors' Report
30 June 2022
* Total Shareholder Return (TSR)
Total Shareholder Return (TSR) is the percentage growth in shareholder value from holding Shares over the relevant
Performance Periods, calculated as follows:
TSR = ((B-A) + C) / A
A = the Market Value of the Shares at the start of the Performance Period;
B = the Market Value of the Shares at the end of each Performance Period;
C = the aggregate dividend amount per Share paid during the Performance Period;
•
•
•
• Market Value is calculated as the 20-day volume weighted average market price of the Shares on the ASX ending
on the day prior to the start or end of the Performance Period, as applicable.
• Performance Period means: For Tranche 1: 1 July 2021 to 30 June 2022, and for Tranche 2: 1 July 2022 to 30 June
2023.
**The Relative TSR performance condition measures the Company’s ability to deliver superior shareholder returns relative to its
peer companies by comparing the TSR performance of the Company against the performance of the S&P/ASX 300 Metals and
Mining (Industry) - Market Index (ASX:XXM). The vesting schedule for the Relative TSR measure is as follows:
Relative TSR Performance
Below Index
Equal to the Index
% Contribution to the Number of Employee
Performance Rightss to Vest
0%
50%
Above Index and below 15% above the Index
Pro-rata from 50% to 100%
15% above the Index
100%
The key inputs to determine the fair value of the Performance Rights is as follows:
KMP
Type
No. or
Rights
Grant Date
Vesting Date
Expiry date
Volatility Discount
rate
Fair
Value
Share
Price
at
Grant
Date
Tim
Wither
Tranche 1
1,000,000
17 December 2021
30 June 2022
30 June 2022
$0.070
86.5%
2.94%
$39,559
Tranche 2
1,000,000
17 December 2021
30 June 2022
30 June 2022
$0.070
86.5%
2.94%
$54,161
Tranche 1
1,000,000
17 December 2021
30 June 2023
30 June 2023
$0.070
86.5%
2.94%
$45,893
Tranche 2
1,000,000
17 December 2021
30 June 2023
30 June 2023
$0.070
86.5%
2.94%
$50,942
H Directors interests in shares and options
The number of shares in the Company held during the financial year by each director and key management personnel
of Maximus Resources Limited, including their personally related parties, are set out below.
Ordinary shares
2022
Name
Steven Zaninovich
Timothy Wither
Gerard Anderson
Martin Janes
Paul Cmrlec*
Scott Huffadine*
Balance as the
start of the
year
Received as
compensation
Acquired /
disposed
Other
Balance at the
end of the year
210,526
-
250,000
210,526
500,000
-
555,156
926,316
-
-
-
-
-
125,000
250,000
63,254,972
63,254,972
-
-
-
-
460,526
710,526
680,156
1,176,316
63,254,972
63,254,972
Page 29
*Appointed 18 October 2021. Shares are held in Pantoro Ltd (ASX:PNR)
2021
Name
Steven Zaninovich*
Timothy Wither**
Gerard Anderson
Martin Janes
Kevin Malaxos***
*Appointed 13 July 2020
**Appointed 10 August 2020
***Resigned 30 November 2020
1.
Options
2022
Name
Steve Zaninovich
Gerard Anderson
Martin Janes
Balance as the
start of the
year
-
-
28,840
400,000
217,392
Balance as the
start of the
year
-
4,807
-
Maximus Resources Limited
Directors' Report
30 June 2022
Received as
compensation
Acquired /
disposed
Other
Balance at the
end of the year
-
-
-
-
-
210,526
210,526
526,316
526,316
-
-
-
-
210,526
210,526
555,156
926,316
-
(217,392)
-
Received as
compensation
Acquired /
disposed
Ceased
Balance at the
end of the year
-
-
-
83,334*
-
83,334
41,667*
(4,807)
41,667
83,334*
-
83,334
The options are quoted on the ASX and carry no dividend or voting rights.
The options were acquired as Messrs. Zaninvoich, Anderson and Janes participated in a Placement Entitlement Issue in April 2021 which
included a 1 for 3 free attaching option to all placement holders.
2021
Name
Balance as the
start of the
year
Received as
compensation
Acquired /
disposed
Ceased
Balance at the
end of the year
Gerard Anderson
-
-
4,807
-
4,807
The options are quoted on the ASX and carry no dividend or voting rights.
The options were acquired as Mr Anderson participated in an Entitlement Issue in April 2020 which included a 1 for 3 free attaching option
to all placement holders.
I
Transactions with key management personnel
During the year ending 30 June 2022 the following were transactions with related parties:
• The Company completed a 2 tranche placement to raise $12M before costs during the financial year.
Pantoro Ltd (ASX:PNR) participated in the placement and acquired 63,254,972 ordinary shares for
$4,301,338. The Company issued 3,960,530 shares on 25 August 2021 and 59,294,442 shares on 15
October 2021. Mr Cmrlec is the Managing Director of Pantoro Ltd. Mr Huffadine is an Executive Director
of Pantoro Ltd.
During the year ending 30 June 2021 there were no transactions with related parties.
END OF AUDITED REMUNERATION REPORT
Page 30
Maximus Resources Limited
Directors' Report
30 June 2022
Auditors independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001
is set out on page 32.
This report is signed and dated in Adelaide on this 29th day of September 2022 and made in accordance with
a resolution of the directors.
Tim Wither
Managing Director
Page 31
Grant Thornton Audit Pty Ltd
Grant Thornton House
Level 3
170 Frome Street
Adelaide SA 5000
GPO Box 1270
Adelaide SA 5001
T +61 8 8372 6666
Auditor’s Independence Declaration
To the Directors of Maximus Resources Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit
of Maximus Resources Limited for the year ended 30 June 2022, I declare that, to the best of my knowledge and
belief, there have been:
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the
audit; and
b no contraventions of any applicable code of professional conduct in relation to the audit.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
B K Wundersitz
Partner – Audit & Assurance
Adelaide, 29 September 2022
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one
another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
#8360384v1w
Maximus Resources Limited
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2022
Consolidated
30 June
2022
$
30 June
2021
$
Notes
Other income
Other income
Expenses
Compliance expenses
Consulting expenses
Depreciation expense
Employee expenses
Legal expenses
Marketing expenses
Finance expense
Share based payments
Exploration expenditure written off
Other expenses
(Loss) before income tax
Income tax expense
Profit/(Loss) for the year
Other comprehensive income for the year (net of tax)
Total comprehensive loss for the year
Earnings per share
Basic and diluted earnings/(loss) per share
3
4
4
4
12
4
4
5
21
474,028
127,808
(276,591)
(158,375)
(4,509)
(525,033)
(124,845)
(78,508)
(6)
(258,247)
(19,597)
(104,953)
(202,343)
(140,037)
(2,767)
(430,621)
(412,750)
(96,688)
(120)
(185,601)
(10,765)
(52,010)
(1,076,636)
-
(1,405,894)
-
(1,076,636)
(1,405,894)
-
-
(1,076,636)
(1,405,894)
Cents
Cents
(0.402)
(1.228)
This statement should be read in conjunction with the notes to the financial statements.
Page 33
Maximus Resources Limited
Consolidated statement of financial position
For the year ended 30 June 2022
Notes
Consolidated
30 June
2022
$
30 June
2021
$
6
7
8
9
10
11
12
13
7,145,660
30,048
80,170
1,327,795
49,065
78,343
7,255,878
1,455,203
182,704
10,485,555
68,099
6,113,693
10,668,259
6,181,792
17,924,137
7,636,995
272,222
62,198
566,110
42,788
334,420
608,898
334,420
608,898
17,589,718
7,028,097
56,138,939
1,099,060
(39,648,281)
17,589,718
45,369,857
1,739,342
(40,081,102)
7,028,097
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Prepayments
Total current assets
Non-current assets
Plant and equipment
Exploration and evaluation
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Provisions
Total current liabilities
Total liabilities
Net assets
EQUITY
Contributed equity
Reserves
Accumulated losses
Total equity
This statement should be read in conjunction with the notes to the financial statements.
Page 34
Maximus Resources Limited
Consolidated statement of changes in equity
For the year ended 30 June 2022
Consolidated
Contributed
equity
$
Notes
Reserves
Retained
losses
$
Total equity
$
Balance at 1 July 2021
Total comprehensive profit for
the year:
Loss for the year
Other comprehensive income
Transactions with owners in
their capacity as owners:
Broker Option Reserve
Share based payment expense
Employee Rights vested
Employee Rights lapsed
Contributions of equity
Broker options lapsed
Transaction costs
45,369,857
1,739,342
(40,081,102)
7,028,097
-
-
45,369,857
-
-
104,348
-
12,054,150
-
(1,389,417)
12
12
12
12
11
12
11
-
-
1,739,342
(1,076,636)
-
(41,157,738)
(1,076,636)
5,951,461
600,176
258,247
(104,348)
(93,689)
115,100
(1,415,768)
-
-
-
93,689
-
1,415,768
-
600,176
258,247
-
-
12,169,250
-
(1,389,417)
Balance at 30 June 2022
56,138,939
1,099,060
(39,648,281)
17,589,718
Balance at 1 July 2020
Total comprehensive loss for
the year:
Loss for the year
Other comprehensive income
Transactions with owners in
their capacity as owners:
Broker Option Reserve
Share based payment reserve
Contributions of equity
Transaction costs
42,451,894
-
(38,675,208)
3,776,686
-
-
42,451,894
-
-
4,786,174
(1,868,211)
11
-
-
-
(1,405,894)
-
(40,081,102)
(1,405,895)
-
2,370,792
1,553,741
185,601
-
-
-
-
-
-
1,553,741
185,601
4,786,174
(1,868,211)
Balance at 30 June 2021
45,369,857
1,739,342
(40,081,102)
7,028,097
This statement should be read in conjunction with the notes to the financial statements.
Page 35
Maximus Resources Limited
Consolidated statement of cash flows
For the year ended 30 June 2022
Consolidated
30 June
2022
$
30 June
2021
$
Notes
471,663
(1,150,169)
1,862
(6)
125,458
(1,190,704)
2,296
(120)
Cash flows from operating activities
Other receipts
Payments to suppliers and employees
Interest received
Interest paid
Net cash (outflows)/inflows from operating activities
20
(676,650)
(1,063,070)
Cash flows from investing activities
Payments for plant & equipment
Payments for exploration and evaluation
(139,995)
(4,745,500)
(77,856)
(2,804,092)
Net cash (outflows)/inflows from investing activities
(4,885,495)
(2,881,948)
Cash flows from financing activities
Proceeds from issues of shares and other equity securities
Transaction costs associated with equity issues
12,169,250
(789,240)
4,786,172
(314,467)
Net cash inflows/(outflows) from financing activities
11,380,010
4,471,705
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
5,817,865
1,327,795
526,687
801,108
Cash and cash equivalents at the end of the financial year
6
7,145,660
1,327,795
This statement should be read in conjunction with the notes to the financial statements.
Page 36
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2022
1 Summary of significant accounting policies
The principal accounting policies adopted in the preparation of these consolidated financial statements are set out
below. These policies have been consistently applied to all the years presented, unless otherwise stated. The
financial statements are for the consolidated entity consisting of Maximus Resources Limited and its subsidiaries.
a) Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards,
other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.
Maximus Resources Limited is a for-profit entity for the purpose of preparing the financial statements.
(i) Compliance with IFRS
The consolidated financial statements of the Maximus Resources Limited also comply with International Financial
Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
Australian Accounting Standards include Australian equivalents to International Financial Reporting Standards (AIFRS).
Compliance with AIFRSs ensures that the financial statements and notes comply with International Financial Reporting
Standards (IFRS).
(ii) Historical cost convention
These financial statements have been prepared in accordance with the historical cost convention, unless a different
measurement basis is specifically disclosed in the notes associated with the item measured on a different basis.
(iii) Critical accounting estimates
The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge
and best available current information. Estimates assume a reasonable expectation of future events and are based
on current trends and economic data, obtained both externally and within the Group.
b) Basis of consolidation
The Group financial statements consolidate those of the Parent Company and all of its subsidiaries as of 30 June
2022. The Parent controls a subsidiary if it is exposed, or has rights, to variable returns from its involvement with
the subsidiary and has the ability to affect those returns through its power over the subsidiary. All subsidiaries have
a reporting date of 30 June 2022.
All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains
and losses on transactions between Group companies. Where unrealised losses on intra-group asset sales are
reversed on consolidation, the underlying asset is also tested for impairment from a group perspective. Amounts
reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with
the accounting policies adopted by the Group.
Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the year are recognised
from the effective date of acquisition, or up to the effective date of disposal, as applicable.
c) Revenue and Other Income
Revenue is measured at the fair value of the consideration received or receivable. Revenue from the sale of gold and
or other minerals is measured at fair value of the consideration received or receivable. Revenue is recognised when
gold and or other minerals is delivered to the buyer.
Interest revenue is recognised using the effective interest rate method.
d) Employee Benefits
Short-term employee benefits
Short-term employee benefits are benefits, other than termination benefits, that are expected to be settled wholly
within twelve (12) months after the end of the period in which the employees render the related service. Examples of
such benefits include wages and salaries, non-monetary benefits and accumulating sick leave. Short-term employee
benefits are measured at the undiscounted amounts expected to be paid when the liabilities are settled.
Page 37
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2022
Other long-term employee benefits
The Group’s liabilities for annual leave and long service leave are included in other long-term benefits as they are not
expected to be settled wholly within twelve (12) months after the end of the period in which the employees render
the related service. They are measured at the present value of the expected future payments to be made to
employees. The expected future payments incorporate anticipated future wage and salary levels, experience of
employee departures and periods of service, and are discounted at rates determined by reference to market yields at
the end of the reporting period on high quality corporate bonds (2021: government bonds) that have maturity dates
that approximate the timing of the estimated future cash outflows. Any re-measurements arising from experience
adjustments and changes in assumptions are recognised in profit or loss in the periods in which the changes occur.
The Group presents employee benefit obligations as current liabilities in the statement of financial position if the Group
does not have an unconditional right to defer settlement for at least twelve (12) months after the reporting period,
irrespective of when the actual settlement is expected to take place.
e) Segment reporting
The Board has considered the requirements of AASB 8 Operating Segments and the internal reports that are reviewed
by the Board allocating resources and has concluded at this time that there are no separate identifiable segments.
f)
Income tax
The income tax expense or revenue for the period is the tax payable on the current period's taxable income based on
the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end
of the reporting period in the countries where the Company's subsidiaries and associates operate and generate taxable
income. Management periodically evaluates positions taken in tax returns with respect to situations in which
applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of
amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities
are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted
for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at
the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined
using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are
expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable
that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax
bases of investments in controlled entities where the Company is able to control the timing of the reversal of the
temporary differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax
liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis,
or to realise the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income
or directly in equity, respectively.
The Company and its subsidiaries are not part of a consolidated tax group.
AASB Interpretation 23 Uncertainty over Income Tax Treatment
The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects
the application of AASB 112 Income Taxes. It does not apply to taxes or levies outside the scope of AASB 12, nor does
it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The
Interpretation specifically addresses the following:
1. Whether an entity considers uncertain tax treatments separately
2. The assumptions an entity makes about the examination of tax treatments by taxation authorities
Page 38
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2022
3. How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates
4. How an entity considers changes in facts and circumstances
An entity has to determine whether to consider each uncertain tax treatment separately or together with one or more
other uncertain tax treatments. The approach that better predicts the resolution of the uncertainty needs to be
followed. The Company applies significant judgement in identifying uncertainties over income tax treatments. Since
the Group operates in a complex multinational environment, it assessed whether the Interpretation had an impact on
its consolidated financial statements.
g)
Impairment of non-financial assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or
more frequently if changes in circumstances indicate that they might be impaired. Other assets are tested for
impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable
cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating
units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of
the impairment at each reporting date.
h) Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand,
deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of
3 months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk
of changes in value, and bank overdrafts.
i) Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the
effective interest method, less provision for expected credit losses. Trade 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.
The Group uses a simplified approach in accounting for trade and other receivables and records the loss allowance at
the amount equal to the expected lifetime credit losses. The Group uses its historical experience, external indicators
and forward-looking information to calculate the expected credit losses using a provision matrix. The Group has
assessed the impact of the impairment model and no adjustment was required in Group’s financial statements.
j) Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year
which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other
payables are presented as current liabilities unless payment is not due within 12 months from the reporting date.
They are recognised initially at their fair value and subsequently measured at amortised cost using the effective
interest method.
k) Earnings per share (EPS)
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
•
•
the profit attributable to equity holders of the Company, excluding any costs of servicing equity other than
ordinary shares
by the weighted average number of ordinary shares outstanding during the financial year, adjusted for
bonus elements in ordinary shares issued during the year and excluding treasury shares.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account:
•
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary
Page 39
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2022
•
shares, and
the weighted average number of additional ordinary shares that would have been outstanding assuming
the conversion of all dilutive potential ordinary shares.
l) Exploration and evaluation expenditure
Exploration and evaluation costs related to an area of interest are written off as incurred except they may be carried
forward as an item in the statement of financial position where the rights of tenure of an area are current and one of
the following conditions is met:
•
•
the costs are expected to be recouped through successful development and exploitation of the area of
interest, or alternatively, by its sale; and
exploration and/or evaluation activities in the area of interest have not at the end of each reporting period
reached a stage which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in, or in relation to, the area of interest are
continuing.
Capitalised costs include costs directly related to exploration and evaluation activities in the relevant area of interest.
General and administrative costs are allocated to an exploration or evaluation asset only to the extent that those costs
can be related directly to operational activities in the area of interest to which the asset relates.
Capitalised exploration and evaluation expenditure is written off where the above conditions are no longer satisfied.
All capitalised exploration and evaluation expenditure is assessed for impairment if facts and circumstances indicate
that an impairment may exist. Exploration and evaluation assets are also tested for impairment once commercial
reserves are found, before the assets are transferred to development properties.
m) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or
as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the taxation authority is included with other receivables or payables in the statement
of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.
n) Comparative figures
Comparative figures are adjusted to conform to Accounting Standards when required.
o) 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.
p) Key estimates
The preparation of the financial statements requires management to make estimates and judgments. These estimates
and judgments are continually evaluated and are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the Group and that are believed to be reasonable
under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by
definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are
discussed below:
Page 40
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2022
Impairment
The Group assesses impairment at each reporting date by evaluating conditions specific to the Group that may lead
to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined.
Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates.
Exploration and Evaluation
The Group’s policy for exploration and evaluation is discussed in Note 1(m). The application of this policy requires
management to make certain assumptions as to future events and circumstances. Any such estimates and
assumptions may change as new information becomes available. If, after having capitalised exploration and evaluation
expenditure, management concludes that the capitalised expenditure is unlikely to be recovered by future sale or
exploration, then the relevant capitalised amount will be written off through the statement of profit or loss and other
comprehensive income.
q) Adoption of the new and revised accounting standards
There were no new and amended standards application to the Group for the annual reporting period ended 30 June 2022.
r) Recently issued accounting standards to be applied in future accounting periods
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the Group for the annual reporting period ended 30 June 2022. The
Group has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.
Page 41
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2022
2 Financial risk management
The Group's activities expose it to a variety of financial risks: market risk (including interest rate risk), credit risk and
liquidity risk. The Group's overall risk management program focuses on the unpredictability of financial markets
and seeks to minimise potential adverse effects on the financial performance of the Group.
Risk management is carried out by management under policies approved by the Board of Directors. The Board
provides principles for overall risk management, as well as policies covering specific areas, such as interest rate risk,
credit risk, the use of financial instruments and investment of excess liquidity.
The Group's financial instruments consist mainly of deposits with banks, accounts receivable and payable.
The Group holds the following financial instruments:
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial liabilities
Trade and other payables
(a) Market risk
Consolidated
30 June
2022 $
30 June
2021 $
7,145,660
30,048
1,327,795
49,065
7,175,708
1,376,860
272,222
566,110
272,222
566,110
(i) Price risk
Price risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate as a result of changes
in market prices (other than those arising from foreign exchange or interest rate risk). The Group is not exposed to any
material price risk.
(i) Cash flow and fair value interest rate risk
Interest rate risk is the risk that a financial instrument's value will fluctuate as a result of changes in market interest
rates and the effective weighted interest rates on classes of financial assets and financial liabilities. Interest rate risk
is managed by the Company with the use of rolling short-term deposits.
The Company has no long term financial liabilities upon which it pays interest.
As at the end of the reporting period, Maximus Resources Limited had the following variable rate cash and cash
equivalent holdings:
Cash and cash equivalents
Net exposure to cashflow interest rate
30 June
2022
Weighted
average
interest
rate %
0.03
30 June
2022
Balance
$
30 June
2021
Weighted
average
interest
rate %
30 June
2021
Balance
$
7,145,660
7,145,660
0.55
1,327,795
1,327,795
Page 42
Interest rate sensitivity analysis
At 30 June 2022, the effect on profit and equity as a result of changes in the interest rate, with all other variables
remaining constant would be as follows:
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2022
30 June 2022
Financial assets
Cash and cash equivalents
Total increase/ (decrease)
30 June 2021
Financial assets
Cash and cash equivalents
Total increase/ (decrease)
(b) Credit risk
Carrying
amount
$
7,145,660
Carrying
amount
$
1,327,795
Interest rate risk
Increase 2%
Decrease 2%
Profit
$
Equity
$
Profit
$
Equity
$
3,800
3,800
3,800
(3,800)
(3,800)
3,800
(3,800)
(3,800)
Increase 2%
Decrease 2%
Profit
$
Equity
$
Profit
$
Equity
$
4,600
4,600
4,600
(4,600)
(4,600)
4,600
(4,600)
(4,600)
Credit risk is the risk of default by borrowers and transactional counterparties as well as the loss of value of assets
due to deterioration in credit quality. Credit risk arises from cash and cash equivalents and deposits with banks and
financial institutions, including outstanding receivables and committed transactions. For banks and financial
institutions, only independently rated parties with a minimum rating of 'A' are accepted. Individual risk limits are set
based on internal or external ratings in accordance with limits set by the board.
(c) Liquidity risk
Liquidity risk is the risk that the Group may encounter difficulty in settling its debts or otherwise meeting its obligations.
The Group manages liquidity risk by monitoring cash flows and ensuring that adequate funds are available to meet
cash demands.
The table summarise the maturity profile of the Company’s financial liabilities as of 30 June 2022 and 2021 based on
contractual undiscounted payments.
< 1 year
1 to < 2years
2 to < 3 years
30 June 2022
Trade Creditors
Accruals
209,983
62,239
272,222
-
-
-
< 1 year
1 to < 2years
2 to < 3 years
30 June 2021
Trade Creditors
Accruals
513,270
52,840
566,110
-
-
-
-
-
-
-
-
-
Total
209,983
62,239
272,222
Total
513,270
52,840
566,110
Page 43
3. Other income
ATO cashflow boost stimulus
Interest income
Fuel tax rebate
Settlement funds*
Profit on sale of assets
ATO jobkeeper subsidy
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2022
Consolidated
30 June
2022
$
-
1,862
31,663
440,000
503
-
30 June
2021
$
37,500
2,350
24,458
50,000
-
13,500
474,028
127,808
*Amount relates to funds received for ongoing matters and disputes relating to the Burbanks Mill operation.
4. Expenses
Other
Short term lease expenses
Project acquisition expenses
Office expenses
Subscriptions
Travel & Accommodation
Other expenses
Consulting expenses
Tax agent fees
Company secretarial and accounting services
Corporate advisory
Human resources
Compliance expenses
Share registry fees
ASIC fees
ASX fees
Audit fees
Insurance
Marketing
Investor relations
Website
Exploration expenses
Exploration expenditure
Consolidated
30 June
2022
$
30 June
2021
$
17,051
57,603
5,844
3,049
20,012
1,394
20,396
-
6,242
6,714
16,892
1,766
104,953
52,010
6,700
86,640
60,000
5,035
5,800
71,387
30,000
32,850
158,375
140,037
81,830
12,100
45,370
74,439
62,852
55,843
12,260
43,940
61,976
28,324
276,591
202,343
78,508
-
90,288
6,400
78,508
96,688
19,597
10,765
19,597
10,765
Page 44
5. Income Tax Expense
(a) Income tax expense:
Current tax
(b) Numerical reconciliation of income tax expense
to prima facie tax payable
Loss from continuing operations before income tax
expense
Tax at the Australian tax rate of 26% (2021: 26%)
Tax effect of amounts which are not deductible
(assessable) in calculating taxable income:
Temporary differences not brought to account
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2022
Consolidated
30 June
2022
$
30 June
2021
$
-
-
(1,076,636)
(1,022,536)
(279,925)
(265,859)
279,925
265,859
Income tax expense
-
A deferred tax asset (DTA) has not been recognised in respect of temporary differences as they do not meet the
recognition criteria as outlined in Note 1(f) of the financial statements. A DTA has not been recognised in respect of
tax losses either as realisation of the benefit is not regarded as probable.
-
The Company has unrecognised DTAs of $10,450,168 (2021: $10,170,242) that are available indefinitely for offset
against future taxable profits, subject to meeting the Same Business and Continuity of Ownership tests.
The tax rates applicable to each potential tax benefit are as follows:
•
•
timing differences – 26%
tax losses – 26%
6. Current assets - Cash and cash equivalents
Cash at bank and in hand
(a) Risk exposure
Consolidated
30 June
2022
$
30 June
2021
$
7,145,660
1,327,795
7,145,660
1,327,795
The Group's exposure to interest rate risk is discussed in note 2. The maximum exposure to credit risk at the end
of each reporting period is the carrying amount of each class of cash and cash equivalents mentioned above.
Page 45
7. Current assets - Trade and other receivables
Net trade receivables
Trade and other receivables
Provision for doubtful debts
GST receivable
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2022
Consolidated
30 June
2022
$
30 June
2021
$
350,797
(322,099)
1,350
322,099
(322,099)
49,065
30,048
49,065
Trade and other receivables includes an outstanding amount from Lloyd George Mining Pty Ltd for milling charges
relating to a toll treatment campaign at Burbanks during June 2019. This amount has been outstanding since July
2019 and the Company commenced legal recovery action during the 2020 year. As the amount has been outstanding
for over 30 months, the Company has booked a provision against this total amount.
8. Plant & Equipment
Consolidated
Cost
At 1 July 2020
Additions
Disposals
At 30 June 2021
Additions
Disposals
At 30 June 2022
Depreciation
At 1 July 2020
Depreciation charge for the year
Disposals
At 30 June 2021
Deprecation charge for the year
Disposals
At 30 June 2022
Net book value
At 30 June 2021
At 30 June 2022
Useful lives
Other plant and
equipment
$
Exploration
equipment Motor Vehicles
$
$
Total
$
-
11,536
-
11,536
2,166
(1,120)
12,582
(2,767)
-
(2,767)
(4,509)
2,289
(4,987)
-
19,041
-
19,041
168,406
(3,619)
183,828
(2,220)
-
(2,220)
(39,964)
1,111
(41,073)
-
47,278
-
47,278
-
-
42,278
(4,769)
-
(4,769)
(6,754)
-
(11,523)
-
77,855
-
77,855
170,572
(4,739)
243,688
(9,756)
-
(9,756)
(51,227)
3,400
(57,583)
8,769
5,306
16,821
141,643
42,509
35,755
68,099
182,704
The useful lives of the assets are estimated as follows:
Other plant & equipment
Exploration equipment
Motor Vehicles
2 to 3 years
2 to 5 years
7 years
Page 46
9. Non-current assets - Exploration and evaluation
Exploration and evaluation
Movement:
Opening balance
Expenditure incurred
Impairment charge for the year
Closing balance
10. Current liabilities - Trade and other payables
Trade payables
Other payables and accruals
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2022
Consolidated
30 June
2022
30 June
2021
6,113,693
4,391,459
(19,597)
3,224,379
2,900,079
(10,765)
10,485,555
6,113,693
Consolidated
30 June
2022
$
30 June
2021
$
209,983
62,239
410,770
86,195
272,222
496,965
Page 47
11. Contributed equity
(a) Share capital
Ordinary shares
Fully paid
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2022
Consolidated
30 June
2022
30 June
2021
Consolidated
30 June
2022
30 June
2021
$
$
315,905,768 140,096,943
56,138,939
45,369,856
(b) Movements in ordinary share capital:
Date
Details
Number of
shares
Issue
price
$
1 July 2020
Opening balance
87,038,009
42,451,894
16 Sept 2020
24 Sept 2020
19 Oct 2020
22 Oct 2020
29 Oct 2020
19 Nov 2020
18 Dec 2020
23 Dec 2020
19 Feb 2021
21 Apr 2021
Issue of Shares – exercise of unlisted options
Issue of Shares – exercise of unlisted options
Issue of Shares – placement
Issue of Shares – exercise of unlisted options
Issue of Shares – exercise of unlisted options
Issue of Shares – exercise of listed options
Issue of Shares – exercise of listed options
Issue of Shares – director placement
Issue of Shares – exercise of listed options
Issue of Shares - placement
Less: Transaction costs arising on share issues
30 June 2021
Balance
12 Aug 2021
25 Aug 2021
12 Oct 2021
13 Oct 2021
15 Oct 2021
5 Jan 2022
7 Jan 2022
28 Jan 2022
Issue of Shares – incentive rights vested
Issue of Shares – placement
Issue of shares – incentive rights vested
Issue of Shares – director placement
Issue of Shares – placement
Issue of Shares – exercise of listed options
Issue of Shares – exercise of listed options
Issue of Shares – exercise of listed options
Less: Transaction costs arising on share issues
30 June 2022
Balance
(c) Ordinary shares
$0.11
$0.11
$0.095
$0.11
$0.11
$0.11
$0.11
$0.095
$0.11
$0.08
-
$0.068
-
$0.08
$0.068
0.11
0.11
$0.11
530,375
470,102
31,578,951
50,000
220,000
12,579
17,283
1,894,737
11,395
18,273,512
140,096,943
500,000
12,182,343
175,500
625,000
164,288,246
1
37,491
244
315,905,768
58,341
51,711
3,000,000
5,500
24,200
1,385
1,901
180,000
1,253
1,461,881
4,786,174
(1,868,209)
45,369,857
87,500
828,399
16,848
50,000
11,171,600
-
4,124
27
12,158,498
(1,389,417)
56,138,939
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion
to the number of and amounts paid on the shares held.
At shareholders' meetings, on a show of hands every holder of ordinary shares present in person or by proxy is entitled to
one vote, and upon a poll each share is entitled to one vote.
Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.
Page 48
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2022
11. Contributed equity (cont)
(d) Capital risk management
The Group has no debt which has externally imposed capital requirements.
The Group's debt and capital includes ordinary share capital, supported by property, plant and equipment.
Management effectively manages the Group's capital by assessing its financial risks and adjusting its capital structure in
response to changes in these risks and in the market. These responses include the management of debt levels,
distributions to shareholders and share issues.
12.
Reserves
Reserves includes an option reserve arising from the issue of broker options and a share based payments for incentive rights
issued to employees. The breakdown of reserves is as follows:
(a) Option Reserve
Date
Details
Number of
options
Valuation
Option
Reserve $
Opening balance – unlisted options
Opening balance – listed options
2,270,477
-
-
1 July 2020
1 July 2020
16 Sept 2020
24 Sept 2020
22 Oct 2020
23 Oct 2020
23 Oct 2020
23 Oct 2020
23 Oct 2020
29 Oct 2020
19 Nov 2020
18 Dec 2020
22 Dec 2020
19 Feb 2021
21 Apr 2021
Exercise of unlisted options
Exercise of unlisted options
Exercise of unlisted options
Allotment – attaching options placement
Allotment – rights issue attaching options
Allotment – shortfall attaching options
Allotment – broker options
Exercise of unlisted options
Exercise of listed options
Exercise of listed options
Allotment – broker options
Exercise of listed options
Listed Broker option
30 June 2021
30 June 2021
Balance – unlisted options
Balance – listed options
30 June 2021
Balance
-
-
-
-
-
-
$0.0178
-
-
$0.087
-
$0.0345
(530,575)
(470,102)
(50,000)
2,901,276
1,892,439
12,613,975
6,000,000
(220,000)
(12,579)
(17,283)
15,000,000
(11,395)
4,000,000
1,000,000
42,366,433
43,366,433
18 Oct 2021
29 Oct 2021
5 January 2022
7 January 2022
7 January 2022
7 January 2022
7 January 2022
8 January 2022
28 January 2022
Allotment – broker options (unlisted)
Allotment – attaching options placement
Exercise of listed options
Exercise of listed options
Broker options expired (MXROD)
Expiry of options (MXROD)
Allotment – Priority offer (MXROE)
Expiry of unlisted options
Exercise of listed options
12,000,000
6,299,542
(1)
(37,491)
(21,000,000)
(17,328,941)
38,366,433
(1,000,000)
(244)
$0.0500
-
-
-
-
-
-
-
-
30 June 2022
30 June 2022
Balance – unlisted options
Balance – listed options
30 June 2022
Balance
12,000,000
48,665,731
60,665,731
-
-
-
-
-
-
-
107,000
-
-
1,308,768
-
137,973
1,553,741
-
1,533,741
1,553,741
600,176
-
-
-
(1,415,768)
-
115,100
-
-
853,249
600,176
253,073
853,249
No adjustments have been made to the life of the option. Accordingly, the expected life of the option has been taken to the
full period of time from grant date to expiry date, which may fail to eventuate in the future.
Page 49
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2022
During the year the Company issued 12,000,000 unlisted options to Petra Capital Pty Ltd following completion of the capital
raise in October 2021. On 7 January 2022 MXROD options expired in accordance with their option terms. 21,000,000 MXROD
options were issued in previous years to brokers for consideration of completion on capital raises. As these options expired
unexercised the option reserve is reduced by $1,415,768.
The fair value of the options at measurement date were measured using the Black Scholes option valuation methodology. The
inputs used in the valuation are as follows:
Measurement Date
Expiry Date
Share price
at Grant Date
Exercise
Price
Expected
Volatility
Risk-free
Interest Rate
Fair Value at
Grant Date
27 May 2020
7 January 2022
19 October 2020
7 January 2022
$0.07
$0.18
21 April 2021
6 January 2023
$0.096
$0.11
$0.11
$0.11
80%
80%
80%
0.15%
$0.0178
0.15%
$0.087
0.15%
$0.0345
15 October 2021
31 October 2024
$0.082
$0.085
100%
0.51%
$0.0500
No adjustments has been made to the life of the option based on no past history regarding expected exercise or any variation
of the expiry date. Accordingly, the expected life of the option has been taken to the full period of time from grant date to
expiry date, which may fail to eventuate in the future.
(b) Share based payment reserve
Incentive & Performance rights
The Company has an Employee Incentive Option and Performance Rights Plan approved by shareholders that enables
the Board to offer eligible employees rights to acquire ordinary fully paid shares in the Company. Under the terms of
the Plan, rights to acquire ordinary fully paid shares at no cost may be offered to the Company's eligible employees
as determined by the Board in accordance with the terms and conditions of the Plan.
The table below show a reconciliation of all Incentive and Performance Rights held by KMP at the beginning and end
of the period, reflecting the overall exposure of each KMP to the Company’s performance and share value. It also
shows the amount of distributions received during the period. Other changes show forfeited and cancelled rights.
KMP
Type
Held at 1 July
2021
Granted during
the year
Exercised
Other changes
Held at 30 June
2022
Tim Wither
Incentive Rights
2,500,000
-
(500,000)
-
2,000,000
Performance Rights
-
4,000,000
-
(2,000,000)
2,000,000
Travis Murphy
Incentive Rights
1,170,000
-
(175,500)
(994,500)
-
Fair value of Rights
Incentive Rights
The Fair Value of the Incentive Rights were valued on the basis that the one incentive rights has the same value as
one ordinary share. The Board then makes a determination annually as to the probability of the rights vesting. The
Rights with an assessed probability of greater than 50% are recognized in the accounts. The Rights with an assessed
probability of less than 50% have not been recognized in the accounts. The fair value of such Incentive rights is
amortised and disclosed as part of remuneration on a straight-line basis over the vesting period.
The Vesting Conditions for the Incentive Rights are as follows:
•
Tranche 1 Rights will vest on the first anniversary of employment with the Company;
Page 50
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2022
•
•
Tranche 2 Rights will vest on the second anniversary of employment with the Company; and
Tranche 3 Rights will vest on the date the Company’s directors resolve (in their discretion), the Company has advanced
a project to initial gold production and the employee is still employed with the Company.
The key inputs to determine the fair value of the Incentive Right is as follows:
KMP
Type
No. or
Rights
Grant Date
Vesting Date
Expiry date
Fair Value
Share price
at Grant
Date
Tim Wither
Tranche 1
500,000
14 October 2020
10 August 2021
10 August 2021
$0.175
$87,500
Tranche 2
1,000,000
14 October 2020
10 August 2022
10 August 2022
$0.175
$175,000
Tranche 3
1,000,000
14 October 2020
Variable
Variable
$0.175
$175,000
Travis Murphy
Tranche 1
175,500
21 April 2021
1 October 2021
1 October 2021
$0.096
$16,848
Tranche 2
409,500
21 April 2021
1 October 2022
1 October 2022
$0.096
$39,3121
Tranche 3
585,000
21 April 2021
Variable
Variable
0.096
$56,160
Performance Rights
The Performance Rights were independently valued under the Monte Carlo method. This is considered the most
appropriate valuation method due to the consideration of market based conditions influencing the vesting of the
performance rights. The fair value of such Performance Rights is amortised and disclosed as part of remuneration
on a straight-line basis over the vesting period.
The Rights are subject to the following vesting conditions:
Tranche 1: 2,000,000 Performance Rights
The Holder (or if the Holder is a nominee of a person, that person) must remain an Eligible Participant until 30 June 2022.
o
1,000,000 Performance Rights will vest conditional upon the Company achieving a TSR of 15% or more at the
end of the performance period.
o Up to 1,000,000 Performance Rights will vest in accordance to the Relative TSR Performance** conditions as
detailed under the Total Shareholder Return section.
Tranche 2: 2,000,000 Performance Rights
The Holder (or if the Holder is a nominee of a person, that person) must remain an Eligible Participant until 30 June 2023.
o
1,000,000 Performance Rights will vest conditional upon the Company achieving a TSR of 15% or more at the
end of the performance period.
o Up to 1,000,000 Performance Rights will vest in accordance to the Relative TSR Performance** conditions as
detailed under the Total Shareholder Return section.
Total Shareholder Return (TSR)
Total Shareholder Return (TSR) is the percentage growth in shareholder value from holding Shares over the relevant
Performance Periods, calculated as follows:
TSR = ((B-A) + C) / A
Where:
• A = the Market Value of the Shares at the start of the Performance Period;
• B = the Market Value of the Shares at the end of each Performance Period;
• C = the aggregate dividend amount per Share paid during the Performance Period;
Page 51
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2022
• Market Value is calculated as the 20-day volume weighted average market price of the Shares on the ASX ending
on the day prior to the start or end of the Performance Period, as applicable.
• Performance Period means: For Tranche 1: 1 July 2021 to 30 June 2022, and for Tranche 2: 1 July 2022 to 30
June 2023.
**The Relative TSR performance condition measures the Company’s ability to deliver superior shareholder returns relative
to its peer companies by comparing the TSR performance of the Company against the performance of the S&P/ASX 300
Metals and Mining (Industry) - Market Index (ASX:XXM). The vesting schedule for the Relative TSR measure is as follows:
Relative TSR Performance
Below Index
Equal to the Index
% Contribution to the Number of Employee
Performance Rightss to Vest
0%
50%
Above Index and below 15% above the Index
Pro-rata from 50% to 100%
15% above the Index
100%
The key inputs to determine the fair value of the Performance Rights is as follows:
KMP
Type
No. or
Rights
Grant Date
Vesting Date
Expiry date
Volatility
Discount
rate
Fair
Value
Share
Price at
Grant
Date
Tim
Wither
Tranche 1
1,000,000
17 December 2021
30 June 2022
30 June 2022
$0.070
86.5%
2.94%
$39,559
Tranche 2
1,000,000
17 December 2021
30 June 2022
30 June 2022
$0.070
86.5%
2.94%
$54,161
Tranche 1
1,000,000
17 December 2021
30 June 2023
30 June 2023
$0.070
86.5%
2.94%
$45,893
Tranche 2
1,000,000
17 December 2021
30 June 2023
30 June 2023
$0.070
86.5%
2.94%
$50,942
Date
Details
Number of Rights
Face Value
$
Share Based Payment
Reserve $
1 July 2020
Opening balance
-
24 Oct 2020
21 Apr 2021
30 June 2021
10 Aug 2021
1 Oct 2021
17 Dec 2021
30 Jun 2022
30 June 2022
30 Jun 2022
30 June 2022
Incentive Rights – T Wither
Incentive Rights – T Murphy
Balance
Employee Rights vested
Employee Rights vested
Issue of Performance Rights
Share based payment expense
Employee Rights forfeited
Employee Rights lapsed
Balance
2,500,000
1,170,000
3,670,000
437,500
112,320
-
-
190,555
-
(500,000)
(175,500)
4,000,000
-
(994,500)
(2,000,000)
4,000,000
-
150,955
34,646
185,601
(87,500)
(16,848)
-
258,247
-
(93,690)
245,810
Reserves
Balance 1 July
Option reserve (a)
Share based payments reserve (b)
Balance 30 June
30 June
2022
$
30 June
2021
$
1,739,342
(700,492)
60,209
-
1,553,741
185,601
1,099,059
1,739,342
Page 52
13. Accumulated losses
Retained Earnings
Balance 1 July
Net profit/(loss) for the year
Broker options lapsed
Employee rights lapsed
Balance 30 June
14. Key management personnel disclosures
(a) Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Share based payment
Termination benefits
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2022
Consolidated
30 June
2022
$
30 June
2021
$
(40,081,102)
(1,076,636)
1,415,768
93,689
(38,675,208)
(1,405,895)
-
(39,648,281)
(40,081,103)
Consolidated
30 June
2022
750,074
54,140
258,247
-
1,062,461
30 June
2021
640,978
35,026
185,601
-
861,605
Detailed remuneration disclosures and interests held by key management personnel are provided in sections A to I of the
remuneration report, within the Directors Report.
(b) Transactions with key management personnel
During the year ending 30 June 2022 the following were transactions with related parties:
• The Company completed a 2 tranche placement to raise $12M before costs during the financial year. Pantoro Ltd
(ASX:PNR) participated in the placement and acquired 63,254,972 ordinary shares for $4,301,338. The Company
issued 3,960,530 shares on 25 August 2021 and 59,294,442 shares on 15 October 2021. Mr Cmrlec is the Managing
Director of Pantoro Ltd. Mr Huffadine is an Executive Director of Pantoro Ltd.
As at 30 June 2022, the following non-executive director fees totalling $16,669 were outstanding as follows:
•
S Zaninovich $4,167 (2021:$8,333)
• M Janes $4,167 (2021: $8,333)
• G Anderson $4,167 (2021: $8,696)
• P Cmrlec $2,084 (2021: N/A)
•
S Huffadine $2,084 (2021: N/A)
Page 53
15. Remuneration of auditors
During the year the following fees were paid or payable for services provided by the auditor of the Company and its related
practices:
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2022
Grant Thornton
Audit and review of financial reports
Taxation Services
Total auditors' remuneration
16. Contingencies
(a) Contingent liabilities
Consolidated
30 June
2022
$
69,072
6,700
75,772
30 June
2021
$
61,976
5,800
67,776
The Group had no known contingent liabilities as at 30 June 2022. (30 June 2021 nil)
(b) Contingent assets
An Adelaide Hills tenement package consisting of 5 tenements, including the Bird in Hand Gold Project was sold to Terramin
Australia Limited (ASX:TZN) in 2013. The consideration included the following contingent payments from Terramin:
•
•
$1,000,000 payable upon approval of a Program for Environmental Protection and Rehabilitation; and
$1,000,000 payable upon commencement of bullion production.
Maximus is also entitled to a 0.5% royalty payable upon bullion production in excess of 50,000 oz.
The Flushing Meadows tenement package was sold to Orex Mining Pty Ltd (now Yandal Resources Ltd) in October 2010.
Maximus is entitled to a gold royalty in respect of gold produced from any part of the tenement area of $40 per ounce on the
first 50,000 ounces of gold generated, with the first $200,000 to be pre-paid upon commencement of gold production and
$20 per ounce of gold produced in excess of 50,000 ounces and less than 150,000 ounces to a maximum of $4 million royalty
revenue being received by Maximus. Additionally, there is a 3% net smelter return for any gold by-products or co-products
from the tenement area.
17. Commitments
Commitments for exploration and joint venture expenditure
For the following 12 months in order to maintain current rights of tenure to exploration tenements the Group is required to
outlay amounts of approximately $1,306,300 (2021: $1,123,300) to keep these in good standing.
Page 54
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2022
18. Subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in note 1(b):
Name of entity
Country of
incorporation Class of shares
Equity holding
2021
%
2022
%
MXR Minerals Pty Ltd
SX Minerals Pty Ltd
Eastern Goldfields Milling Services Pty Ltd
Australia
Australia
Australia
Ordinary
Ordinary
Ordinary
100
100
100
100
-
100
SX Minerals Pty Ltd was incorporated during the year to hold the Southern Cross tenements. The Southern Cross tenement
package comprises a combined area of 678 square kilometers which are prospective for Nickel – Copper Cobalt PGE
mineralisation.
19. Events occurring after the reporting period
On 10 August 2022 1,000,000 Incentive Rights vested resulting in 1,000,000 ordinary shares being issued on 10 August
2022.
There are no other events or circumstances that have occurred subsequent to the end of the reporting period that have or
will significantly affect the operations of the Group.
20. Reconciliation of profit after income tax to net cash inflow from operating activities
Profit/(Loss) for the year
Depreciation
Share based payments
Change in operating assets and liabilities:
Decrease/(increase) in trade and other
receivables
Decrease/(increase) in other operating assets
(Decrease)/increase in trade and other payables
(Decrease)/increase in provisions
Net cash (outflow)/inflow from operating
activities
21. Earnings per share
Loss from continuing operations attributable to the ordinary equity holders
Basic earnings per share
Weighted average number of ordinary shares outstanding during the year
used to calculate basic earnings per share
Consolidated
30 June
2022
$
(1,076,636)
4,509
258,247
17,190
-
168,970
(48,930)
30 June
2021
$
(1,405,894)
2,767
185,601
(49,065)
(155,015)
321,902
36,634
(676,650)
(1,063,070)
30 June
2022
(1,076,636)
30 June
2021
(1,405,894)
267,566,539
114,477,904
Basic earnings per share (cents) – continuing operations
(0.402)
(0.893)
Page 55
22. Parent Entity
Statement of financial position
Current Assets
Non-current Assets
Total Assets
Current Liabilities
Non-Current Liabilities
Total Liabilities
Net Assets
Shareholder’s Equity
Contributed Equity
Reserves
Retained Losses
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2022
Parent
2022
$
2021
$
7,196,336
10,620,726
1,401,020
6,181,792
17,817,062
7,582,812
333,615
-
539,754
-
333,615
539,754
17,483,447
7,043,058
56,138,939
1,099,059
(39,754,551)
45,369,856
1,739,342
(40,081,101)
Capital and reserves attributable to owners
17,483,447
7,028,097
Statement of profit or loss and other comprehensive income
Loss for the year
Other comprehensive income
Total comprehensive income
Parent Entity Contingencies
Contingent liabilities
(1,178,601)
-
(1,005,980)
-
(1,178,601)
(1,005,980)
The parent entity had no known contingent liabilities as at 30 June 2022 (2021: $NIL).
Contingent assets
An Adelaide Hills tenement package consisting of 5 tenements, including the Bird in Hand Gold Project was sold to
Terramin Australia Limited (ASX:TZN) in 2013. The consideration included the following contingent payments from
Terramin:
•
•
$1,000,000 payable upon approval of a Program for Environmental Protection and Rehabilitation; and
$1,000,000 payable upon commencement of bullion production.
Maximus is also entitled to a 0.5% royalty payable upon bullion production in excess of 50,000 oz. The Flushing
Meadows tenement package was sold to Orex Mining Pty Ltd (now Yandal Resources Ltd) in October 2010. Maximus
is entitled to a gold royalty in respect of gold produced from any part of the tenement area of $40 per ounce on the
first 50,000 ounces of gold generated, with the first $200,000 to be pre-paid upon commencement of gold
production and $20 per ounce of gold produced in excess of 50,000 ounces and less than 150,000 ounces to a
maximum of $4 million royalty revenue being received by Maximus. Additionally, there is a 3% net smelter return
for any gold by-products or co-products from the tenement area.
Parent Entity Commitments
(a) Commitments for mining and exploration tenements
For the following 12 months in order to maintain current rights of tenure to exploration tenements the Company is
required to outlay amounts of approximately $1,133,300 (2021: $1,123,300) to keep these in good standing.
Page 56
In the directors' opinion:
Maximus Resources Limited
Directors' declaration
30 June 2022
(a)
the consolidated financial statements and notes set out on pages 33 to 56 are in accordance with the
Corporations Act 2001, including:
(i)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements, and
giving a true and fair view of the consolidated entity's financial position as at 30 June 2022 and of
their performance for the financial year ended on that date, and
(ii)
(b)
(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
the financial statements comply with International Financial Reporting Standards as confirmed in note 1(a).
The directors have been given the declarations by the Managing Director and Company Secretary required by
section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
Timothy Wither
Managing Director
29 September 2022
Page 57
Grant Thornton Audit Pty Ltd
Grant Thornton House
Level 3
170 Frome Street
Adelaide SA 5000
GPO Box 1270
Adelaide SA 5001
T +61 8 8372 6666
Independent Auditor’s Report
To the Members of Maximus Resources Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Maximus Resources Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2022, the
consolidated statement of profit or loss and other comprehensive income, consolidated statement of
changes in equity and consolidated statement of cash flows for the year then ended, and notes to the
consolidated financial statements, including a summary of significant accounting policies, and the Directors’
declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
a giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its performance for
the year ended on that date; and
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
www.grantthornton.com.au
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Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one
another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
#8360512v5w
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
Exploration and evaluation assets – Notes 1l),
1p) & 9
At 30 June 2022 the carrying value of exploration
and evaluation assets was $10,485,555.
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources, the Group is
required to assess at each reporting date if there are
any triggers for impairment which may suggest the
carrying value is in excess of the recoverable value.
The determination as to whether there are any
indicators to require an exploration and evaluation
asset to be assessed for impairment involves a
number of judgements including whether the Group
will be able to maintain tenure, perform ongoing
expenditure and whether there is sufficient
information for a decision to be made that the area of
interest is not commercially viable.
This area is a key audit matter due to the carrying
value of exploration and evaluation assets being a
significant risk.
Our procedures included, amongst others:
• Reviewed management's area of interest
consideration against AASB 6;
• Conducted a detailed review of management's
assessment of trigger events prepared in
accordance with AASB 6 including:
− traced projects to statutory registers, exploration
licenses and third party confirmations to
determine whether a right of tenure existed;
− enquired management regarding their intentions
to carry out exploration and evaluation activity in
the relevant exploration area, including review of
management's budgeted expenditure;
− understood whether any data exists to suggest
that the carrying value of exploration and
evaluation assets are unlikely to be recovered
through development or sale;
• Assessed the accuracy of any impairment recorded
for the year as it pertained to exploration interests;
• Evaluated the competence, capabilities and
objectivity of management's experts in the
evaluation of potential impairment triggers; and
• Assessed the appropriateness of the related
financial statement disclosures.
Information other than the financial report and auditor’s report thereon
The Directors are responsible for the other information. The other information comprises the information included
in the Group’s annual report for the year ended 30 June 2022, but does not include the financial report and our
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
#8360512v5
Grant Thornton Australia Limited 2
Responsibilities of the Directors’ for the financial report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the Directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.pdf.This
description forms part of our auditor’s report.
Report on the remuneration report
Opinion on the remuneration report
We have audited the Remuneration Report included in the Directors’ report for the year ended 30 June
2022.
In our opinion, the Remuneration Report of Maximus Resources Limited, for the year ended 30 June 2022
complies with section 300A of the Corporations Act 2001.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
B K Wundersitz
Partner – Audit & Assurance
Adelaide, 29 September 2022
#8360512v5
Grant Thornton Australia Limited 3
Maximus Resources Limited
ASX Additional Information
The shareholder information set out below was applicable as at 30 September 2022.
A Distribution of equity securities
Analysis of numbers of equity security holders by size of holding:
ORDINARY SHARES
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - 9,999,999,999
Rounding
Total
Total holders
1,129
551
407
959
347
Units
235,589
1,569,583
3,106,228
35,910,710
278,083,658
% of Issued Capital
0.07
0.49
0.97
11.26
87.20
0.01
3,393
318,905,768
100.00
There were 2,107 holders of less than a marketable parcel of ordinary shares. At a share price of
$0.047, an unmarketable parcel is 10,639 shares.
LISTED OPTIONS
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - 9,999,999,999
Rounding
Total
Total holders
29
14
6
59
55
Units
10,526
31,697
48,233
2,211,682
46,363,593
% of Issued Capital
0.02
0.07
0.10
4.54
95.27
0.00
163
48,665,731
100.00
Maximus Resources Limited
ASX Additional Information
B Equity Security Holders
Twenty largest quoted equity security holders
ORDINARY SHARES
Rank
Name
Units
% Units
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
PANTORO LIMITED
BELL POTTER NOMINEES LTD
KITARA INVESTMENTS PTY LTD
CITICORP NOMINEES PTY LIMITED
HUSTLER INVESTMENTS PTY LTD
ALISSA BELLA PTY LTD
SYRACUSE CAPITAL PTY LTD
ONE MANAGED INVESTMENT FUNDS LIMITED
GOLDFIRE ENTERPRISES PTY LTD
ROOKHARP CAPITAL PTY LTD
SOLEQUEST PTY LTD
MR PAUL ST WOOD
HILLBOI NOMINEES PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MR CRAIG GRAEME CHAPMAN
JMARC HOLDINGS PTY LTD
ROBMAR INVESTMENTS PTY LTD
ALL-STATES FINANCE PTY LTD
MISS MELISSA TASSONE
KEMPO CAPITAL PTY LTD
63,254,972
14,492,313
10,526,316
6,561,440
5,500,000
4,623,182
4,470,679
4,349,774
3,700,000
3,676,470
3,625,220
3,200,408
3,144,979
3,143,935
3,085,294
3,004,710
3,000,000
2,941,176
2,929,373
2,362,917
19.84
4.54
3.30
2.06
1.72
1.45
1.40
1.36
1.16
1.15
1.14
1.00
0.99
0.99
0.97
0.94
0.94
0.92
0.92
0.74
Totals: Top 20 holders of ORDINARY FULLY PAID SHARES (Total)
Total Remaining Holders Balance
151,593,158
167,312,610
47.54
52.46
LISTED OPTIONS
Rank
Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
18
20
ALISSA BELLA PTY LTD
HUSTLER INVESTMENTS PTY LTD
KITARA INVESTMENTS PTY LTD
KEMPO CAPITAL PTY LTD
ALITIME NOMINEES PTY LTD
M & K KORKIDAS PTY LTD
TURNER AGRICULTURE PTY LTD
DR RAPHAEL BLUM
JMARC HOLDINGS PTY LTD
DAGMAR HOLDINGS PTY LTD
SYRACUSE CAPITAL PTY LTD
SYRACUSE CAPITAL PTY LTD
MR NICHOLAS BARADAKIS
LMPACB PTY LTD
MR MATTHEW JAMES SMALLEY
SUPERIOR VISION PTY LTD
SOLEQUEST PTY LTD
MR DON FRANK LOCKYER
MRS KARTINI BINTE TATTIS
ALISSA BELLA PTY LTD
Units
7,471,746
7,000,000
3,900,000
2,472,016
2,000,000
1,522,000
1,398,319
1,274,972
1,248,549
1,234,118
1,207,919
979,217
900,000
800,000
785,714
750,000
715,762
700,000
700,000
582,801
% Units
15.35
14.38
8.01
5.08
4.11
3.13
2.87
2.62
2.57
2.54
2.48
2.01
1.85
1.64
1.61
1.54
1.47
1.44
1.44
1.20
Totals: Top 20 holders of LISTED OPTIONS (Total)
Total Remaining Holders Balance
37,643,133
11,022,598
77.35
22.65
Maximus Resources Limited
ASX Additional Information
C Substantial holders
As at 30 September 2022 the following were substantial shareholders:
Shareholder
Pantoro Limited
D Voting Rights
Units
63,254,972
% of Units
19.84
The voting rights attaching to each class of equity securities are set out below:
Ordinary Shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote
and upon a poll each share shall have once vote.
Options
No voting rights.
Principal and Registered Office
Suite 12, 198 Greenhill Road
Eastwood SA 5063
Email
info@maximusresources.com
Phone
08 7324 3172
maximusresources.com
ASX:MXR