More annual reports from Maximus Resources Limited:
2023 ReportAnnual Report
2023
ABN 74 111 977 354
Annual Report 2023 | 1
Contents
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
Tenement Report Schedule
Independent auditor’s report to the members
ASX additional information
3
27
29
30
31
32
33
54
55
56
59
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 Maximus Resources Limited’s operations and its principal activities is included in the
directors’ report on pages 3 to 16.
The financial statements were authorised for issue by the directors on 25 September 2023. 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.
Annual Report 2023 | 2
Directors’ Report
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
2023 (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
Position
Appointed/Resigned
(if during the financial year)
Steven Evan Zaninovich Chair
Timothy James Wither Managing Director
Martin Simon Janes
Non-executive Director
Graham McGarry
Non-executive Director
Appointed 7 February 2023
Gerard Anderson
Non-executive Director
Resigned 6 February 2023
Paul Mathew Cmrlec
Non-executive Director
Resigned 27 January 2023
Scott James Huffadine Alternate Director – P Cmrlec
Resigned 27 January 2023
Officers of the Company
Rajita Alwis was Company Secretary of the Company for the
financial year.
Principal Activities
During the Period, there were no significant changes in the
nature of the Group’s principal activities which continued to
focus on 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 $1,063,781 (2022: $1,076,636).
The net assets of the Group have decreased by $871,443
during the financial year from $17,589,718 at 30 June 2022 to
$16,718,275 at 30 June 2023.
Dividends
There were no dividends declared or paid during the year
(2022: Nil).
Annual Report 2023 | 3
Operations Review
Maximus’ primary focus is the Spargoville Project,
located 25km from Kambalda, Western Australia’s
premier gold and nickel mining district.
The Company holds 48 square kilometres of
tenements and a further 60 square kilometres 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 mineralisation.
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.
Highlights of the Company’s key projects are
reported below:
Wattle Dam Gold Project
The Company completed several resource growth
drill programmes across the Wattle Dam Gold Project
area, which includes Wattle Dam, Redback, Golden
Orb and the S5 prospects, which returned several
significant gold intersections, highlighting strong
resource upgrade potential.
Subsequent to the end of the Period the Company
reported a 250% increase in gold resources at the
Wattle Dam Gold Project with the updated JORC
(2012) Mineral Resource Estimate (MRE) resulting
in 5.4 Mt @ 1.45 g/t Au for 251,500 oz Au. The
Company’s total group gold resources - 6.4Mt @ 1.6
g/t Au for 320,600 oz Au
The Company completed a detailed geological and
structural review of the Wattle Dam Gold Project area
in collaboration with an expert structural geological
consultant, aimed to identify potential repetitions
of the high-grade Wattle Dam Gold Mine shoot. Drill
testing of the target area intersects a geological
sequence similar to that hosting the Wattle Dam
high-grade lode, confirming a structural offset and
potential for repetition of the Wattle Dam high-grade
lode.
Annual Report 2023 | 4
The Company advance development studies with
the completion of initial metallurgical testwork
under standard Western Australian “Goldfields”
leach conditions. Results highlighted excellent
recoveries with total extractable gold ranged
from 91.5% to 97.3% from representative open-
pit resource samples via conventional 24hr carbon
in leach gold processing. Tests confirm favourable
metallurgy with low sodium cyanide consumption
low oxygen demand, due to the rapid
and
leach times.
Several near-term production opportunities continue
to be reviewed.
Au
Regional Gold Exploration
Regionally the Company has focused on the shallow
Hilditch gold deposit(Hilditch) with an existing
resource of 7,500 oz @ 1.8 g/t Au. The Company
completed a small programme at Hilditch which
successfully extend several legacy holes defining
two previously unknown parallel lodes, highlighting
opportunity to quickly grow shallow mineralisation.
The Company holds 60 square kilometre of gold
rights to the south of the Wattle Dam Gold Project.
Improvements to the Company’s geological dataset
has resulting in the modelling of a porphyry contact
and gold mineralisation along the 20km long trend
south from Wattle Dam. This area will be the focus
for future greenfield exploration programmes.
Following the Misho Discovery, the Company has
been active in expanding the geo-chemistry sampling
across several prospective ultramafic horizons, with
several targets having been identified to be drill
tested in the subsequent periods.
Ni
Nickel Exploration
Maximus continues to actively explore for nickel
sulphides across the Company’s highly prospective
tenements being in one of the most prolific nickel
sulphide belts in the world. The Company’s tenements
are located 25km from the BHP concentrator,
currently processing Wyloo Metals Cassini Ore.
During the Period, the Company targeted and
discovered the Misho Nickel Prospect. Initial Aircore
drilling returned elevated platinum group of element
across a 500m strike. Subsequent reverse circulation
drilling intersected broad nickel mineralisation up to
13m wide @ 0.8% nickel at a basal contact position.
Li
Lithium Exploration
Maximus’ Spargoville tenements are situated in the
highly fertile Southern Yilgarn Li-Cs-Ta Province and
located ~20km south of Mineral Resources Limited’s
(ASX:MIN) world-class Mt Marion lithium mine.
During the Period the Company has identified
numerous shallow dipping pegmatites which were
identified through an internal review of legacy
geological mapping and fieldwork. Due to the
prospectivity the Company has receive significant
interest from third parties and has been in active
discussions to determine the best path forward for
the lithium projects.
Annual Report 2023 | 5
Royalties
Flushing Meadows
Western Australia
Gold
The Yandal Project (also known as Flushing Meadows) is currently being progressed
by Yandal Resources Ltd (Yandal).
The royalty obligation by Yandal to Maximus is: a) $40 per ounce on the first
50,000 ounces of gold from the tenement area. Yandal 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 respect of the Bird in Hand Gold Project
(BIHGP) with Terramin Australia Limited (Terramin). The first payment is due upon the
environmental approval to mine (PEPR) from the South Australian Department for
Energy (DEM) and Mining, and the second payment is payable on the commencement
of bullion production from the site. Maximus also retains a 0.5% gross royalty on
gold produced in excess of 50,000 ounces mined. The BIHGP has a resource base of
588,000 tonnes at 13.3g/t for 252,000 ounces of gold.
Terramin submitted a mining lease application (MLA) in respect of the BIHGP in June
2019. In early 2023, DEM completed an assessment report for the Minister for Energy
and Mining (Minister) in which it supported the issue of Mining Lease (ML) for the
BIHGP. In February 2023, Terramin was informed by the Minister of his decision to
refuse to grant a ML in respect of the BIHGP.
In March 2023, the Minister issued a letter to Terramin advising of his intention
to seek to reserve the land being the subject of the MLA thus preventing future
applications for mining tenements in that area (Proclamation). The Government
proceeded with the Proclamation of the MLA area in April 2023. Terramin has
commenced legal action in the Supreme Court of South Australia against these
decisions by the Minister in August 2023.
Canegrass Project
Maximus 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% V2O5. The Project is ~15km from
Windimurra Vanadium operations.
Western Australia
Vanadium
Annual Report 2023 | 6
Corporate
On 27 January 2023, Paul Cmrlec resigned as a Non-
executive Director of the Company following the sale
of Pantoro Limited (ASX:PNR) shareholding in the
Company. As an Alternate Director to Mr Cmrlec,
Scott Huffadine also submitted his resignation.
On 6 February 2023, Gerard Anderson resigned as a
Non-executive Director of the Company.
On 7 February 2023, Graham McGarry was appointed
as a Non-executive Director of the Company following
Beacon Minerals Limited (ASX:BCN) purchase of a
19.8% interest in Maximus on 27 January 2022.
During the Period, Tim Wither’s milestone 2 incentive
rights vested resulting in 1,000,000 fully paid ordinary
shares being issued to Mr Wither on 12 August 2022.
During the Period, employee incentive rights vested
on 23 December 2022 resulting in 150,000 fully paid
ordinary shares being issued on 23 December 2022.
On 6 January 2023, 48,665,731 listed options
(MXROE) expired.
On 30 June 2023 2,000,000 Performance Rights
held by Tim Wither were forfeited as they did not
meet the vesting conditions.
Significant changes in the state of affairs
There have been no significant changes in the above
state of affairs from the 2022 financial year to the
2023 financial year.
Events arising since the end of the reporting
period
On 31 July 2023, 1,200,000 Performance Rights
vested resulting in 1,200,000 ordinary shares being
issued on 31 July 2023.
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.
Future business developments, prospects and
business strategies
During the Period the Company has added a new
projects, which are prospective for Nickel – Copper
- Cobalt - PGE mineralisation. The recently granted
Southern Cross tenement comprise a combined
area of 678km2, located on 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 exciting nickel and lithium
prospects.
Annual Report 2023 | 7
Material Business Risks
Competent Person Statement
The Board and Management of Maxmius are mindful
of the current business and economic environment
and the impact this may have on the progress of
future business operations.
The Company has adopted a risk management system
in accordance with Principle 7 of the Company’s
Corporate Governance Statement. The Company’s
Audit, Risk and Corporate Governance Committee along
with Management undertake a regular assessment of
business risks that the Company is exposed to, which is
communicated to the Board.
As such, the Board currently considers the most
material business risks to be as follows:
•
•
•
Commodity Price – the success of securing
funding for the Company’s project and the
ongoing development and operation of the
project is contingent on commodity prices that
support the economic viability of the project.
Key management and personnel – the success of
the Company’s operations is reliant on the ability
to attract and retain experienced, knowledgeable,
skilled and high performing key management and
technical staff.
and
Heritage
Protection
Environmental
regulations - The Group’s operations are subject
to significant environmental and heritage
protection regulation under both Commonwealth
and State legislation related to exploration or
mine development activities. The Group believes
it is in compliance with its environmental and
heritage protection obligations.
Information in this report that relates to Data and
Exploration Results is based on information compiled
and reviewed by Mr Gregor Bennett a Competent
Person who is a Member of the Australian Institute
Geoscientists (AIG) and Exploration Manager at
Maximus Resources. Mr Bennett has sufficient
experience relevant to the style of mineralisation
and type of deposit under consideration and to
the activity which he has undertaken to qualify
as a Competent Person as defined in the 2012
Edition of the ‘Australasian Code for the Reporting
of Exploration Results, Mineral Resources and Ore
Reserves’. Mr Bennett consents to the inclusion in
the report of the matters based on his information in
the form and context in which it appears.
the Australasian
The information in this release that relates to
the Wattle Dam Gold Project Mineral Resource
is based on information compiled by Mr Lynn
Widenbar, a Competent Person who is a Member
of
Institute of Mining and
Metallurgy. Mr Widenbar is a full-time employee
of Widenbar and Associates Pty Ltd. Mr Widenbar
has sufficient experience that is relevant to the
style of mineralisation and type of deposit under
consideration and to the activity that is being
undertaken to qualify as a Competent Person as
defined in the 2012 Edition of the ‘Australasian
Code for Reporting of Exploration Results, Minerals
Resources and Ore Reserves’. Mr Widenbar consents
to the inclusion in the release of the matters based
on his information in the form and context that the
information appears.
Annual Report 2023 | 8
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.comsons were
Announcement Title
Appendix 5B Cashflow Report
Quarterly Activities Report
Drill programme commences at Wattle Dam Project - Golden Orb
MXR acquires gold and nickel Kemble prospect - Spargoville
Drilling completed at Wattle Dam and Exploration Update
Annual Report to shareholders
Strong drill results expand Wattle Dam Gold Project
Quarterly Activities/Appendix 5B Cash Flow Report
Redback Gold Project - Mineral Resource Update
Quarterly Activities/Appendix 5B Cash Flow Report
Becoming a Substantial Holder from BCN
BCN: Beacon to Acquire 19.8% Interest in Maximus Resources
Change in substantial holding from PNR
Gold and Nickel Exploration Update - Spargoville
Director Appointment/Resignation
Drilling commences at priority gold and nickel targets
Drilling commences at Jibadji Ni-Cu-Co prospect
Excellent metallurgical test results Redback/Wattle Dam
High-grade nickel discovery - Misho Nickel Prospect
Drilling Commences - Misho Nickel Prospect
Quarterly Activities/Appendix 5B Cash Flow Report
Nickel-bearing sulphides intersected at Misho
Air-core drilling delivers additional Ni/Au targets
RIU Sydney Resources Round-up Investor Presentation
Widespread Rare Earth discovery at Jibadji AC drilling
Encouraging assay results at Misho Nickel Prospect
Drill Programme commences at Wattle Dam Gold Mine
Wattle Dam Drilling Update
Successful Junior Minerals Exploration Incentive Application
Quarterly Activities/Appendix 5B Cash Flow Report
AMEC Investor Briefing Presentation
Wattle Dam Gold Project Resource increases by 250%
Date
20/07/2022
20/07/2022
27/07/2022
10/08/2022
30/08/2022
10/10/2022
19/10/2022
28/10/2022
1/12/2022
24/01/2023
30/01/2023
30/01/2023
30/01/2023
1/02/2023
8/02/2023
21/02/2023
8/03/2023
16/03/2023
21/03/2023
30/03/2023
19/04/2023
20/04/2023
24/04/2023
11/05/2023
15/05/2023
19/05/2023
31/05/2023
7/07/2023
11/07/2023
18/07/2023
1/08/2023
1/08/2023
Annual Report 2023 | 9
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 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.
Spargoville Mineral Resources
Spargoville Project Global Resources by Location
Indicated
Inferred
Total
Location
Updated
Tonnes
(kt)
Grade
(g/t Au)
Tonnes
(kt)
Grade
(g/t Au)
Tonnes
(kt)
Grade
(g/t Au)
Ounces
Eagles Nest
Feb-17
Larkinville
Apr-17
5B
Hilditch
Nov-16
Apr-17
150
112
-
-
1.8
2.9
-
-
530
7
75
132
Wattle Dam
Gold Project
Aug-23
3,400
1.4
2,000
2.0
4.6
3.1
1.8
1.5
680
120
75
132
5,400
2.0
3.0
3.1
1.8
1.4
42,550
11,600
7,450
7,500
251,500
TOTAL
3,662
1.5
2,745
1.7
6,407
1.6
320,600
Notes
1. Mineral Resources are classified in accordance with JORC code (2012). The Company confirms that it is not aware of any
new information or data that materially affects the information included in the original announcement and that all material
assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The
Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially
modified from the original market announcement.
2.
3.
4.
5.
All tonnages reported are dry metric tonnes. Estimates are rounded to reflect the level of confidence in the Mineral Resources at
the time of reporting.
Eagles Nest, Larkinville, 5B and Hilditch Mineral Resource Estimate reported in the announcement dated 11 April 2017 titled
Maximus achieves major Resource milestone and 30 June 2017, Quarterly report including Table 1.
The Eagles Nest Mineral Resource is reported as a combined resource with an applied 6 g/t Au top cut.
The Wattle Dam Gold Project Mineral Resource Estimate is reported by cut-off grade of 0.5 g/t within A$2,800/oz optimised
open pit shells, and above 1.5 g/t for the Mineral Resource below the open pit shell.
Annual Report 2023 | 10
Information on Directors and
Key Management Personnel
Steven Zaninovich B.Eng
Independent Non-executive Director, Chair
Appointed 14 July 2020
Special responsibilities
Chair of the Board
Member of the Audit, Risk and Corporate
Governance Committee
Timothy Wither MBA, BSc, GDip,
GradDipNatRs, GAICD, MAusIMM
Managing Director
Appointed 10 August 2020
Special responsibilities
Managing Director
Interests in Shares, Options & Rights
Member of the Remuneration Committee
Ordinary Shares – 1,710,526 (2022: 710,526)
Interests in Shares, Options & Rights
Listed Options – nil (2022: nil)
Ordinary Shares – 460,526 (2022: 460,526)
Rights – 3,500,000 (2022: 4,000,000)
Listed Options – nil (2022: 83 334)
Experience & expertise
Rights - nil (2022: nill)
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
in West
Zaninovich has worked extensively
Africa and Australia on a variety of projects and
has spent more than 25 years on various 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.
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
Current Listed Directorships
Nil
Mako Gold Limited (Appointed October 2020)
Past Listed Directorships (last 3 years):
Symbol Mining Limited (Appointed 1 March 2019 to
5 February 2021)
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)
Annual Report 2023 | 11
Martin Janes BEc GAICD
Independent Non executive Director
Appointed 1 August 2019
Graham Mc Garry CPA, CD
Non executive Director
Appointed 7 February 2023
Special responsibilities
Special responsibilities
Nil
Interests in Shares, Options & Rights
Ordinary Shares – 63,254,972 (2022: nil)
Listed Options – nil (2022: nil)
Rights – nil (2022: nil)
Experience & expertise
Graham McGarry is an experienced and seasoned
‘hands on’ miner, with a track record in turning
early-stage projects into viable and attractive
investment propositions. Mr McGarry spent eight
years with Amalg Resources NL as Managing
Director and was responsible for the development
of the Eloise Copper Mine in Queensland from
‘bard paddock’ to an underground mine producing
500,000 tpa of copper/gold ore. Mr McGarry has
developed numerous successful mining projects
across Australia.
Current Listed Directorships
Beacon Minerals Ltd (Appointed 19 March 2012)
Past Listed Directorships (last 3 years):
Nil
Chair of the Audit, Risk and Corporate Governance
Committee
Member of the Remuneration Committee
Interests in Shares, Options & Rights
Ordinary Shares – 1,716,316 (2022: 1,716,316)
Listed Options – nil (2022: 83,334)
Rights – nil (2022: nil)
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):
Nil
Annual Report 2023 | 12
Gerard Anderson Assoc. Applied Geology, Grad
Dip Bus, MSc
Independent Non executive Director
Appointed 1 November 2018
Resigned 6 February 2023
Paul Cmrlec B.Eng
Non executive Director
Appointed 18 October 2021
Resigned 27 January 2023
Special responsibilities
Chair of the Remuneration Committee
Member of the Audit, Risk and Corporate
Governance Committee
Interests in Shares, Options & Rights
Ordinary Shares – N/A (2022: 680,156)
Listed Options – N/A (2022: 41,667)
Rights – N/A (2022: nil)
Experience & expertise
is a geologist with 43 years’
Mr Anderson
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)
Special responsibilities
Member of the Remuneration Committee
Interests in Shares, Options & Rights
Ordinary Shares – N/A (2022: 63,254,972)
Listed Options – N/A (2022: nil)
Rights – N/A (2022: nil)
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
Annual Report 2023 | 13
Scott Huffadine BSc Eng
Alternate Director (P Cmrlec)
Appointed 18 October 2021
Resigned 27 January 2023
Special responsibilities
Alternate Director – P Cmrlec
Interests in Shares, Options & Rights
Ordinary Shares – N/A (2022: 63,254,972)
Listed Options – N/A (2022: nil)
Rights – N/A (2022: nil)
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)
Exploration Manager
Gregor Bennett BSc Geology & Geophysics
Appointed 10 January 2023
Interests in Shares, Options & Rights
Ordinary Shares – 1,500,000 (2022: N/A)
Listed Options – nil (2022: N/A)
Rights – 4,000,000 (2022: N/A)
Experience & expertise
Mr Bennett is an accomplished gold and nickel
exploration geologist with over 12 years
experience. At Rox Resources (ASX:RXL),
Gregor led the geology team increasing the
Youanmi Gold Project resource from 1,190koz
to 3,200koz Au over a 3-year period and was
integral in the discovery of the Fisher East
nickel deposit and definition of the 50kt Ni
resources. Gregor was also a key member of
the team that defined the ~174kt Ni Odysseus
nickel sulphide deposit in the the Leinster
region of Western Australia.
Company Secretary
Rajita Alwis LLB B.Com, CA FGIA
Appointed 17 December 2019
Interests in Shares, Options & Rights
Ordinary Shares – nil (2022: nil)
Listed Options – nil (2022: nil)
Past Listed Directorships (last 3 years):
Rights – nil (2022: nil)
Nil
Experience & expertise
Ms Alwis has over 25 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.
Annual Report 2023 | 14
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 2023, and the number of meetings attended by each director were:
Director Meetings
Audit, Risk
& Corporate
Governance
Committee Meetings
Remuneration
Committee Meetings
Held While
Director
Attended Held While
Attended Held While
Attended
Director
Director
8
8
8
4
4
4
6
8
8
4
4
4
3
3
3
-
3
-
3
3
3
-
3
-
1
-
1
-
1
1
1
-
1
-
1
1
Director name
Steven Zaninovich
Timothy Wither
Martin Janes
Graham Mc Garry
(Appointed 7 February 2023)
Gerard Anderson
(Resigned 6 February 2023)
Paul Cmrlec
(Resigned 27 January 2023)
Indemnification and insurance of officers
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.
Annual Report 2023 | 15
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 2023 was $9,364 (2022: $6,700).
Share options
As at 30 June 2023 there were 12,000,000 (2022: 60,665,731) unissued ordinary shares under options.
During the Period no options were exercised. (2022: 37,736).
Annual Report 2023 | 16
Annual Report 2023 | 16
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
B
D
E
F
G
H
I
Key management personnel
Remuneration Policy
Details of remuneration
Employment Contracts
Service agreements
Share based compensation
Shareholding of key management personnel
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
Steven Zaninovich
Independent Non-Executive Director, Chair
Independent Non-Executive Director
Period position was held during
the year
Full Year
Full Year
Martin Janes
Graham Mc Garry
Gerard Anderson
Paul Cmrlec
Scott Huffadine
Non-Executive Director
Appointed 7 February 2023
Independent Non-Executive Director
Resigned 6 February 2023
Non-Executive Director
Resigned 27 January 2023
Alternate Director – P Cmrlec
Resigned 27 January 2023
Executive Directors
Position
Timothy Wither
Managing Director
Executives
Rajita Alwis
Position
Company Secretary
Full Year
Full Year
Gregor Bennett
Exploration Manager
Appointed 10 January 2023
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.
Annual Report 2023 | 17
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.
Rajita 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 $78,000.
Graegor Bennett was appointed as Exploration Manager on 10 January 2023.
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.
The employment conditions of the Exploration Manager have been formalised in a contract of employment.
The base salary as set out in the employment contract is reviewed annually. The Exploration Manager’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 2023.
Annual Report 2023 | 18
C. Details of Remuneration
2023
Short-term employee benefits
Post emplo-
yment
benefits
Long-term
employee
benefits
Share-Based
payments
Name
Fees
$
Salary
$
Annual
leave
accrued
$
Super-
annuation
$
Long service
leave accrued
$
Options
$
Rights
$
Total
$
Steven Zaninovich*
50,000
-
-
-
Timothy Wither
-
275,000
8,039
28,875
Martin Janes**
Graham Mc Garry***
Gerard Anderson****
Paul Cmrlec*****
Scott Huffadine*****
Rajita Alwis
50,000
19,792
27,203
12,954
12,954
78,000
-
-
-
-
-
-
-
-
-
2,856
1,360
1,360
-
Gregor Bennett
-
104,667
7,650
10,990
Total
250,903
379,667
15,689
45,441
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
50,000
130,338
442,252
-
-
-
-
50,000
19,792
30,059
14,314
14,314
78,000
36,474
159,781
166,812
858,512
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 $78,000.
Mr Bennett commenced employment on 10 January 2023.
*As at 30 June 2023, non-executive director fees of $12,500 were unpaid to Mr Zaninovich
**As at 30 June 2023, non-executive director fees of $12,500 were unpaid to Mr Janes
*** Mr Mc Garry was appointed as a director on 7 February 2023. As at 30 June 2023, non-executive director fees of $12,500 were
unpaid.
****Mr Anderson resigned on 6 February 2023.
*****Mr Cmrlec & Mr Huffadine resigned on 27 January 2023.
2022
Short-term employee benefits
Post emplo-
yment
benefits
Long-term
employee
benefits
Share-Based payments
Name
Fees
$
Salary
$
Annual
leave
accrued
$
Super-
annuation
$
Long service
leave accrued
$
Options
$
Rights
$
Total
$
Steven Zaninovich*
50,000
-
-
-
Timothy Wither
-
268,750
12,058
26,875
Gerard Anderson**
Martin Janes***
Paul Cmrlec****
Scott Huffadine*****
Rajita Alwis
45,455
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 to Mr Zaninovich.
**As at 30 June 2022 non-executive director fees of $4,167 were unpaid to Mr Anderson.
***As at 30 June 2022 non-executive director fees of $4,167 were unpaid to Mr Janes.
**** Mr Cmrlec was appointed as a director on 18 October 2021. As at 30 June 2022, non-executive director fees of $2,084 were
unpaid to Mr Cmrlec
*****Mr Huffadine was appointed as an Alternate Director to Mr Cmrlec on 18 October 2021. As at 30 June 2022, non-executive
director fees of $2,084 were unpaid to Mr Huffadine.
******Incentive Rights did not vest due to failure to satisfy service conditions
Annual Report 2023 | 19
C. Details of Remuneration
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**
Timothy Wither
Gregor Bennett
Travis Murphy
2023
%
-
-
N/A
2022
%
-
N/A
-
2023
%
30
23
N/A
2022
%
47
N/A
-
*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 Bennett is engaged under an employment contract with no fixed term at a salary of $220,000 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
2022
Granted
during the
year
Exercised
Other changes
Tim Wither
Incentive Rights
2,000,000
-
(1,000,000)
-
Held at 30
June 2023
1,000,000
Performance Rights
(Market)
Performance Rights
(KPI)
Gregor Bennett
Incentive Rights
Performance Rights
(KPI)
2,000,000
1,000,000
-
-
-
1,500,000
2,000,000
2,000,000
-
-
-
-
(2,000,000)
1,000,000
-
-
-
1,500,000
2,000,000
2,000,000
Annual Report 2023 | 20
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 recognised in the accounts.
The Rights with an assessed probability of less than 50% have not been recognised 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:
Share price at
Grant Date
Fair Value
$0.175
$175,000
KMP
Type
No. or Rights
Grant Date
Vesting Date
Expiry date
Tim Wither
Second year
anniversary
Initial gold
production
Gregor
Bennett
First year
anniversary
Second year
anniversary
Initial gold
production
1,000,000
1,000,000
340,000
860,000
800,000
14 October
2020
10 August
2022
10 August
2022
14 October
2020
Initial gold
production
variable*
$0.175
$175,000
1 February
2023
1 February
2024
1 February
2024
$0.041
$13,940
1 February
2023
1 February
2025
1 February
2025
$0.041
$35,260
1 February
2023
Initial gold
production
variable*
0.041
$32,800
*The Initial gold production has a variable expiry date as the rights expire upon the employee no longer being employed by the
Company, an unknown/variable date for each employee.
Performance Rights (Market)
These 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.
Annual Report 2023 | 21
1.
Total Shareholder Return (TSR) Performance Rights
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.
{ 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.
{ 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.
{ 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.
{ 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
• 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 Rights to
Vest
0%
50%
Above Index and below 15% above the Index
Pro-rata from 50% to 100%
15% above the Index
100%
Annual Report 2023 | 22
The key inputs to determine the fair value of the Performance Rights utilizing the Monte Carlo methods is
as follows:
KMP
Type
No. or Rights
Grant Date
Vesting
Date
Expiry
date
Share
Price at
Grant
Date
Volatility
Discount
rate
Fair Value
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
Tranche 1
1,000,000
17 December
2021
30 June
2022
30 June
2022
17 December
2021
30 June
2023
30 June
2023
$0.070
86.5%
2.94%
$54,161
$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
2.
Target Share Price Performance Rights
1,000,000 Performance Rights will vest conditional on the Company’s 20 day VWAP Share Price up to and
including 30 June 2025 being equal or greater than $0.11 per ordinary share. Any unvested Performance
Rights will lapse if the Holder ceases employment with the Company.
The key inputs to determine the fair value of these Performance Rights are as follows:
KMP
Type
No. or Rights
Grant Date
Vesting
Date
Expiry
date
Share
Price at
Grant
Date
Volatility
Discount
rate
Fair Value
Tim
Wither
Share price
$0.11
1,000,000
11 November
2022
30 June
2025
30 June
2025
$0.046
86.5%
2.94%
$10,328
Performance Rights (KPI)
The Fair Value of these Performance 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 performance rights is amortised and disclosed as part of remuneration on
a straight-line basis over the vesting period.
The Vesting Conditions for these Performance Rights are as follows:
•
•
Conditional upon the Company achieving a Total JORC Mineral Resource of at least 300,000oz gold or
Conditional upon the Company achieving a Total JORC Mineral Resource of at least 500,000oz gold or
equivalent.
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
500,000
11 November
2022
300,000 oz JORC
Mineral Resource
11 November
2025
Share price at
Grant Date
Fair Value
$0.046
$23,000
1,000,000
11 November
2022
500,000 oz JORC
Mineral Resource
30 June 2025
$0.046
$46,000
Tim Wither
300,000 oz
JORC
500,000 oz
JORC
Gregor
Bennett
300,000 oz
JORC
500,000
1 February
2023
300,000 oz JORC
Mineral Resource
30 June 2025
$0.041
$20,500
500,000 oz
JORC
1,500,000
1 February
2023
500,000 oz JORC
Mineral Resource
30 June 2025
$0.041
$61,500
Annual Report 2023 | 23
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
2023
Name
Steven Zaninovich
Timothy Wither
Martin Janes
Graham McGarry*
Gerard Anderson**
Paul Cmrlec***
Scott Huffadine***
Balance as the start
of the year
Received as
compensation
Acquired /
disposed
Other
Balance at the
end of the year
460,526
710,526
1,176,316
-
680,156
63,254,972
63,254,972
-
1,000,000
-
-
-
-
-
-
-
63,254,972
-
-
-
-
-
(680,156)
(63,254,972)
(63,254,972)
-
-
460,526
1,710,526
1,176,316
63,254,972
-
-
-
*Appointed 7 February 2023. Shares are held in Beacon Minerals Limited (ASX:BCN). The share were purchased on-market prior to
Mr McGarry being appointed a director of the Company.
**Resigned 6 February 2023.
***Resigned 27 January 2023. Shares were held in Pantoro Limited (ASX:PNR)
2022
Name
Steven Zaninovich
Timothy Wither
Gerard Anderson
Martin Janes
Paul Cmrlec*
Scott Huffadine*
Balance as the start
of the year
Received as
compensation
210,526
210,526
555,156
926,316
-
-
Acquired /
disposed
250,000
-
500,000
-
-
-
-
125,000
250,000
63,254,972
63,254,972
Other
Balance at the
end of the year
-
-
-
-
460,526
710,526
680,156
1,176,316
63,254,972
63,254,972
* Appointed 18 October 2021. Shares are held in Pantoro Ltd (ASX:PNR)
Options
2023
Name
Steve Zaninovich
Gerard Anderson
Martin Janes
Balance as the
start of the year
Received as
compensation
Acquired /
disposed
83,334
41,667
83,334
-
-
-
-
-
-
Ceased
(83,334)*
(41,667)*
(83,334)*
Balance at the
end of the year
-
-
-
The options expired on 6 January 2023.
2022
Name
Steve Zaninovich
Gerard Anderson
Martin Janes
Balance as the
start of the year
Received as
compensation
Acquired /
disposed
-
4,807
-
-
-
-
83,334*
41,667*
83,334*
Ceased
-
(4,807)
-
Balance at the
end of the year
83,334
41,667
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.
Annual Report 2023 | 24
I
Transactions with key management personnel
During the year ending 30 June 2023 there were no transactions with related parties.
As at 30 June 2023, the following non-executive director fees totalling $37,500 were outstanding as
follows:
•
S Zaninovich $12,500 (2022: $4,167)
• M Janes $12,500 (2022: $4,167)
•
•
•
•
G McGarry $12,500 (2022:N/A)
G Anderson N/A (2022: $4,167)
P Cmrlec N/A (2022: $2,084)
S Huffadine N/A (2022: $2,084)
END OF AUDITED REMUNERATION REPORT
Annual Report 2023 | 25
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 27.
This report is signed and dated in Adelaide on this 25th day of September 2023 and made in accordance
with a resolution of the directors.
Tim Wither
Managing Director
Annual Report 2023 | 26
Auditors independence declaration
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 2023, 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
I S Kemp
Partner – Audit & Assurance
Adelaide, 25 September 2023
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.
#10494185v2w
Annual Report 2023 | 27
Financial
Statements
Contents
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
Tenement Report Schedule
Independent auditor’s report to the members
29
30
31
32
33
54
55
56
Annual Report 2023 | 28
Consolidated statement of profit or loss
and other comprehensive income
For the year ended 30 June 2023
Maximus Resources Limited
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2023
Consolidated
30 June
2023
$
30 June
2022
$
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
127,795
474,028
(171,017)
(130,843)
(5,273)
(428,186)
(60,038)
(68,337)
(12)
(195,925)
(46,597)
(85,348)
(276,591)
(158,375)
(4,509)
(525,033)
(124,845)
(78,508)
(6)
(258,247)
(19,597)
(104,953)
(1,063,781)
-
(1,076,636)
-
(1,063,781)
(1,076,636)
-
-
(1,063,781)
(1,076,636)
Cents
Cents
(0.334)
(0.402)
This statement should be read in conjunction with the notes to the financial statements.
Annual Report 2023 | 29
Page 29
Consolidated statement of financial position
For the year ended 30 June 2023
Maximus Resources Limited
Consolidated statement of financial position
For the year ended 30 June 2023
Notes
Consolidated
30 June
2023
$
30 June
2022
$
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
6
7
8
9
10
11
12
13
3,631,540
87,650
85,460
7,145,660
30,048
80,170
3,804,650
7,255,878
125,893
13,516,368
182,704
10,485,555
13,642,261
10,668,259
17,446,911
17,924,137
672,763
55,873
272,222
62,198
728,636
334,420
728,636
334,420
16,718,275
17,589,718
56,316,652
763,615
(40,361,992)
16,718,275
56,138,939
1,099,060
(39,648,281)
17,589,718
This statement should be read in conjunction with the notes to the financial statements.
Annual Report 2023 | 30
Page 30
Consolidated statement of changes in equity
For the year ended 30 June 2023
Maximus Resources Limited
Consolidated statement of changes in equity
For the year ended 30 June 2023
Consolidated
Contributed
equity
$
Reserves
Accumulated
losses
$
Total equity
$
Notes
Balance at 1 July 2022
Total comprehensive profit for
the year:
Loss for the year
Other comprehensive income
Transactions with owners in
their capacity as owners:
Share based payment expense
Employee Rights exercised
Employee Rights lapsed
Options lapsed
Transaction costs
56,138,939
1,099,060
(39,648,281)
17,589,718
-
-
56,138,939
-
-
1,099,060
(1,063,781)
-
(40,712,062)
(1,084,599)
16,525,937
12
12
12
12
11
-
181,300
-
-
(3,587)
195,925
(181,300)
(96,998)
(253,072)
-
-
96,998
253,072
-
195,925
-
-
-
(3,587)
Balance at 30 June 2023
56,316,652
763,615
(40,361,992)
16,718,275
Balance at 1 July 2021
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
Employee Rights exercised
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
This statement should be read in conjunction with the notes to the financial statements.
Annual Report 2023 | 31
Page 31
Consolidated statement of cash flows
For the year ended 30 June 2023
Maximus Resources Limited
Consolidated statement of cash flows
For the year ended 30 June 2023
Cash flows from operating activities
Other receipts
Payments to suppliers and employees
Interest received
Interest paid
Consolidated
30 June
2023
$
30 June
2022
$
Notes
10,966
(848,396)
43,746
(12)
471,663
(1,150,169)
1,862
(6)
Net cash (outflows)/inflows from operating activities
20
(793,696)
(676,650)
Cash flows from investing activities
Proceeds from sale of plant & equipment
Payments for plant & equipment
Payments for exploration and evaluation
4,698
(8,854)
(2,712,681)
-
(139,995)
(4,745,500)
Net cash (outflows)/inflows from investing activities
(2,716,837)
(4,885,495)
Cash flows from financing activities
Proceeds from issues of shares and other equity securities
Transaction costs associated with equity issues
-
(3,587)
12,169,250
(789,240)
Net cash inflows/(outflows) from financing activities
(3,587)
11,380,010
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
(3,514,120)
7,145,660
5,817,865
1,327,795
Cash and cash equivalents at the end of the financial year
6
3,631,540
7,145,660
This statement should be read in conjunction with the notes to the financial statements.
Page 32
Annual Report 2023 | 32
Notes to the financial statements
For the year ended 30 June 2023
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2023
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 33
Annual Report 2023 | 33
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2023
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 34
Annual Report 2023 | 34
Notes to the financial statements
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2023
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)
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 35
Annual Report 2023 | 35
Notes to the financial statements
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2023
•
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 36
Annual Report 2023 | 36
Notes to the financial statements
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2023
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 2023.
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 2023. The
Group has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.
Annual Report 2023 | 37
Page 37
Notes to the financial statements
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2023
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
2023
$
30 June
2022
$
3,631,540
87,150
7,145,660
30,048
3,658,690
7,175,708
672,763
272,222
672,763
272,222
(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
2023
Weighted
average
interest
rate %
0.96
30 June
2023
Balance
$
30 June
2022
Weighted
average
interest
rate %
30 June
2022
Balance
$
3,631,540
3,631,540
0.03
7,145,660
7,145,660
Annual Report 2023 | 38
Page 38
Notes to the financial statements
Interest rate sensitivity analysis
At 30 June 2023, 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 2023
30 June 2023
Financial assets
Cash and cash equivalents
Total increase/ (decrease)
30 June 2022
Financial assets
Cash and cash equivalents
Total increase/ (decrease)
(b) Credit risk
Interest rate risk
Increase 2%
Decrease 2%
Carrying
amount
$
Profit
$
Equity
$
Profit
$
Equity
$
3,631,540
27,685
27,685
(27,685)
(27,685)
27,685
27,685
(27,685)
(27,685)
Carrying
amount
$
7,145,660
Increase 2%
Decrease 2%
Profit
$
3,800
3,800
Equity
$
3,800
3,800
Profit
$
Equity
$
(3,800)
(3,800)
(3,800)
(3,800)
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 summarises the maturity profile of the Company’s financial liabilities as of 30 June 2023 and 2022 based
on contractual undiscounted payments.
< 1 year
1 to < 2years
2 to < 3 years
30 June 2023
Trade Creditors
Accruals
624,231
48,532
672,763
-
-
-
< 1 year
1 to < 2years
2 to < 3 years
30 June 2022
Trade Creditors
Accruals
209,983
62,239
272,222
-
-
-
-
-
-
-
-
-
Total
624,231
48,532
672,763
Total
209,983
62,239
272,222
Page 39
Annual Report 2023 | 39
Notes to the financial statements
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2023
Consolidated
30 June
2023
$
44,946
22,849
-
60,000
-
30 June
2022
$
1,862
31,663
440,000
-
503
474,028
3. Other income
Interest income
Fuel tax rebate
Settlement funds*
Bad debt recovered*
Profit on sale of assets
127,795
*Amounts relates to funds received for 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
Exploration expenses
Exploration expenditure
Annual Report 2023 | 40
Consolidated
30 June
2023
$
30 June
2022
$
17,105
25,611
6,749
8,723
25,807
1,353
17,051
57,603
5,844
3,049
20,012
1,394
85,348
104,953
9,364
78,000
6,000
37,479
6,700
86,640
60,000
5,035
130,843
158,375
18,878
5,861
41,796
61,287
43,195
81,830
12,100
45,370
74,439
62,852
171,017
276,591
68,337
78,508
68,337
78,508
46,597
46,597
19,597
46,597
19,597
Page 40
Notes to the financial statements
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 30% (2022: 30%)
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 2023
Consolidated
30 June
2023
$
30 June
2022
$
-
-
(1,063,782)
(1,076,636)
(1,063,782)
(279,925)
319,135
279,925
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 $12,885,773 (2022: $12,566,638) 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 – 30%
tax losses – 30%
6. Current assets - Cash and cash equivalents
Cash at bank and in hand
(a) Risk exposure
Consolidated
30 June
2023
$
30 June
2022
$
3,631,540
7,145,660
3,631,540
7,145,660
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.
Annual Report 2023 | 41
Page 41
Notes to the financial statements
7. Current assets - Trade and other receivables
Net trade receivables
Trade and other receivables
Provision for doubtful debts
GST receivable/(payable)
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2023
Consolidated
30 June
2023
$
30 June
2022
$
87,650
-
-
350,797
(322,099)
1,350
87,650
30,048
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. Following debt recover action, the Company
has negotiated a settlement payment with receipt of the final payment made on 17 September 2023. The Company
had previously recorded a provision against this outstanding amount.
8. Plant & Equipment
Consolidated
Cost
At 1 July 2021
Additions
Disposals
At 30 June 2022
Additions
Disposals
At 30 June 2023
Depreciation
At 1 July 2021
Depreciation charge for the year
Disposals
At 30 June 2022
Deprecation charge for the year
Disposals
At 30 June 2023
Net book value
At 30 June 2022
At 30 June 2023
Useful lives
Other plant and
equipment
$
Exploration
equipment
$
Motor Vehicles
$
Total
$
11,536
2,166
(3,409)
10,293
5,494
-
15,787
(2,767)
(4,509)
2,289
(4,987)
(5,273)
-
(10,260)
19,041
168,406
(4,732)
182,715
3,360
-
186,075
(2,220)
(39,964)
1,111
(41,073)
(53,637)
-
(94,710)
47,278
-
-
47,278
-
-
47,278
(4,769)
(6,754)
-
(11,523)
(6,754)
-
(18,277)
77,855
170,572
(8,141)
240,286
8,854
-
249,140
(9,756)
(51,227)
3,400
(57,583)
(65,664)
-
(123,247)
5,306
5,527
141,643
91,365
35,755
29,001
182,704
125,893
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 42
Annual Report 2023 | 42
Notes to the financial statements
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 2023
Consolidated
30 June
2023
30 June
2022
10,485,555
3,077,410
(46,597)
6,113,693
4,391,459
(19,597)
13,516,368
10,485,555
Consolidated
30 June
2023
$
30 June
2022
$
624,231
48,532
209,983
62,239
672,763
272,222
Annual Report 2023 | 43
Page 43
Notes to the financial statements
11. Contributed equity
(a) Share capital
Ordinary shares
Fully paid
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2023
Consolidated
30 June
2023
30 June
2022
Consolidated
30 June
2023
30 June
2022
319,055,768
315,905,768
56,316,652
56,138,939
$
$
(b) Movements in ordinary share capital:
Date
Details
Number of
shares
Issue
price
$
1 July 2021
Opening balance
140,096,946
45,369,857
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
Less: Transaction costs arising on share issues
500,000
12,182,343
175,500
625,000
164,288,246
1
37,491
244
-
$0.068
-
$0.08
$0.068
0.11
0.11
$0.11
87,500
828,399
16,848
50,000
11,171,600
-
4,124
27
(1,868,209)
12,158,499
(1,389,417)
30 June 2022
Balance
317,905,768
56,138,939
10 Aug 2022
23 Dec 2022
Issue of Shares – incentive rights vested/exercised
Issue of Shares – performance rights vested/exercised
1,000,000
150,000
-
-
Less: Transactions costs arising on share issues
175,000
6,300
181,300
(3,587)
30 June 2023
Balance
(c) Ordinary shares
319,055,768
56,316,652
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.
(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.
Page 44
Annual Report 2023 | 44
Notes to the financial statements
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
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2023
Date
Details
Number of options
Valuation
1 July 2021
1 July 2021
Opening balance – unlisted options
Opening balance – listed options
18 Oct 2021
29 Oct 2021
5 Jan 2022
7 Jan 2022
7 Jan 2022
7 Jan 2022
7 Jan 2022
8 Jan 2022
28 Jan 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
30 June 2022
30 June 2022
Balance – unlisted options
Balance – listed options
-
$0.0500
-
-
-
-
-
-
-
-
1,000,000
42,366,433
43,366,433
12,000,000
6,299,542
(1)
(37,491)
(21,000,000)
(17,328,941)
38,366,433
(1,000,000)
(244)
12,000,000
48,665,731
60,665,731
6 Jan 2023
6 Jan 2023
Broker options expired (MXROE)
Expiry of listed options (MXROE)
(4,000,000)
(44,665,731)
-
-
30 June 2023
Balance – unlisted options
12,000,000
Option
Reserve $
-
1,553,741
1,553,741
600,176
-
-
-
(1,415,768)
-
115,100
-
-
(700,492)
600,176
253,073
853,249
(137,973)
(115,100)
(253,073)
600,176
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.
On 6 January 2022 MXROE options expired in accordance with their option terms. Option holders who participated in the
priority offer to subscribe for MXROE options paid $115,100 to subscribe for the new options. 4,000,000 MXROE options were
issued in previous years to brokers for consideration of completion on capital raises. As the MXROE options expired unexercised
the option reserve is reduced by $253,073.
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
Annual Report 2023 | 45
Page 45
Notes to the financial statements
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2023
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.
Employee
Type
Held at 1 July
2022
Granted during
the year
Exercised
Other changes
Held at 30 June
2023
Tim Wither
Incentive Rights
2,000,000
-
(1,000,000)
-
1,000,000
2,000,000
1,000,000
(2,000,000)
1,000,000
-
-
-
1,500,000
2,000,000
2,000,000
-
-
-
-
-
-
1,500,000
2,000,000
2,000,000
Performance Rights
(Market)
Performance Rights
(KPI)
Gregor Bennett
Incentive Rights
Performance Rights
(KPI)
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:
Employee
Type
No. or Rights
Grant Date
Vesting Date
Expiry date
Fair Value
Share price
at Grant
Date
Tim Wither
Second
anniversary
year
Initial
production
gold
1,000,000
14 October 2020
10 August 2022
10 August 2022
$0.175
$175,000
1,000,000
14 October 2020
Variable
Variable
$0.175
$175,000
Page 46
Annual Report 2023 | 46
Notes to the financial statements
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2023
Gregor
Bennett
Employee
Incentive
Rights
First
anniversary
year
Second
anniversary
year
Initial
production
gold
First
anniversary
year
Second
anniversary
year
Initial
production
gold
340,000
1 February 2023
1 February 2024
1 February 2024
$0.041
$13,940
860,000
1 February 2023
1 February 2025
1 February 2025
$0.041
$35,260
800,000
1 February 2023
Initial
production
gold
Variable*
0.041
$32,800
150,000
31 October 2022
December
23
2022
23
2022
December
$0.042
$6,300
350,000
31 October 2022
8 October 2023
8 October 2023
$0.042
$14,700
500,000
31 October 2022
Initial
production
gold
Variable*
$0.042
$21,000
*The Initial gold production has a variable expiry date as the rights expire upon the employee no longer being employed by the Company, an
unknown/variable date for each employee.
Performance Rights (Market)
These 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:
1. Total Shareholder Return (TSR) Performance Rights
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;
Page 47
Annual Report 2023 | 47
Notes to the financial statements
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2023
• 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 these Performance Rights are 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
2. Target Share Price Performance Rights
1,000,000 Performance Rights will vest conditional on the Company’s 20 day VWAP Share Price up to and including 30
June 2025 being equal or greater than $0.11 per ordinary share. Any unvested Performance Rights will lapse if the Holder
ceases employment with the Company.
The key inputs to determine the fair value of these Performance Rights are as follows:
KM
Type
No. or
Rights
Grant Date
Vesting Date
Expiry date
Volatility
Discount
rate
Fair
Value
Share
Price at
Grant
Date
Tim
Wither
Share
$0.11
price
1,000,000
11 November 2022
30 June 2025
30 June 2025
$0.046
86.5%
2.94%
$10,328
Performance Rights (KPI)
The Fair Value of these Performance 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 performance
rights is amortised and disclosed as part of remuneration on a straight-line basis over the vesting period.
The Vesting Conditions for these Performance Rights are as follows:
• Conditional upon the Company achieving a Total JORC Mineral Resource of at least 300,000oz gold or
• Conditional upon the Company achieving a Total JORC Mineral Resource of at least 500,000oz gold or equivalent.
Page 48
Annual Report 2023 | 48
Notes to the financial statements
The key inputs to determine the fair value of the Performance Rights is as follows:
Employee
Type
No. or
Rights
Grant Date
Vesting Date
Expiry date
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2023
Fair Value
Share
price at
Grant
Date
Tim Wither
Gregor
Bennett
Employee
Performance
Rights (KPI)
300,000 oz
JORC
500,000 oz
JORC
300,000 oz
JORC
500,000 oz
JORC
300,000 oz
JORC
500,000 oz
JORC
500,000
11 November 2022
1,000,000
11 November 2022
500,000
1 February 2023
1,500,000
1 February 2023
200,000
31 October 2022
300,000
31 October 2022
300,000oz
Mineral Resource
JORC
500,000oz
Mineral Resource
JORC
300,000oz
Mineral Resource
JORC
500,000oz
Mineral Resource
JORC
300,000oz
Mineral Resource
JORC
500,000oz
Mineral Resource
JORC
11 November 2025
$0.046
$23,000
30 June 2025
$0.046
$46,000
30 June 2025
$0.041
$20,500
30 June 2025
$0.041
$61,500
30 June 2025
$0.042
$8,400
30 June 2025
$0.042
$12,600
Date
Details
1 July 2021
10 August 2021
1 October 2021
17 December 2021
30 June 2022
30 June 2022
30 June 2022
30 June 2022
10 August 2022
15 November 2022
23 December 2022
31 December 2022
1 February 2023
30 June 2023
30 June 2023
30 June 2023
Opening balance
Employee rights vested
Employee rights vested
Issue of performance rights
Share based payment expense
Employee rights forfeited
Employee rights lapsed
Balance
Employee rights vested
Issue of performance rights
Employee rights vested
Share based payment expense
Issue of performance rights
Share based payment expense
Employee rights lapsed
Balance
Number of
Rights
Valuation*
$
Share Based
Payment Reserve $
3,670,000
(500,000)
(175,500)
4,000,000
-
(994,500)
(2,000,000)
4,000,000
(1,000,000)
4,000,000
(150,000)
-
4,000,000
-
(2,000,000)
8,850,000
-
-
190,555
-
-
-
-
142,328
-
-
164,000
-
-
185,601
(87,500)
(16,848)
-
258,247
-
(93,690)
245,810
(175,000)
-
(6,300)
70,273
-
125,653
(96,998)
163,438
*The rights issued during the period measured at fair value are recognised and amortised as an expense with a corresponding increase in
equity over the vesting period.
Reserves
Balance 1 July
Option reserve (a)
Share based payment reserve (b)
Balance 30 June
Annual Report 2023 | 49
Consolidated
30 June
2023
$
1,099,060
(253,073)
(82,372)
30 June
2022
$
1,739,342
(700,492)
60,209
763,615
1,099,059
Page 49
Notes to the financial statements
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 2023
Consolidated
30 June
2023
$
30 June
2022
$
(39,648,281)
(1,063,781)
253,072
96,998
(40,081,102)
(1,076,636)
1,415,768
93,689
(40,361,992)
(39,648,281)
Consolidated
30 June
2023
$
646,259
45,441
166,812
-
858,512
30 June
2022
$
750,074
54,140
258,247
-
1,062,461
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 2023 there were no transactions with related parties.
As at 30 June 2023, the following non-executive director fees totalling $37,500 were outstanding as follows:
• S Zaninovich $12,500 (2022: $4,167)
• M Janes$12,500 (2022: $4,167)
• G McGarry $12,500 (2022:N/A)
• G Anderson N/A (2022: $4,167)
• P Cmrlec N/A (2022: $2,084)
•
S Huffadine N/A (2022: $2,084)
Page 50
Annual Report 2023 | 50
Notes to the financial statements
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2023
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:
Grant Thornton
Audit and review of financial reports
Taxation Services
Total auditors' remuneration
16. Contingencies
(a) Contingent liabilities
Consolidated
30 June
2023
$
73,939
9,364
83,303
30 June
2022
$
69,072
6,700
75,772
The Group had no known contingent liabilities as at 30 June 2023. (30 June 2022 nil)
(b) Contingent assets
The Group had no known contingent assets as at 30 June 2023. (30 June 2022 nil)
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 $780,940 (2022: $1,306,300) to keep these in good standing.
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
2022
%
2023
%
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
100
Annual Report 2023 | 51
Page 51
Notes to the financial statements
Maximus Resources Limited
Notes to the financial statements
For the year ended 30 June 2023
19. Events occurring after the reporting period
On 31 July 2023 1,200,000 Performance Rights vested resulting in 1,200,000 ordinary shares being issued on 31 July 2023.
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 loss 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 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
2023
$
(1,063,782)
5,273
195,925
(62,391)
137,604
(6,325)
30 June
2022
$
(1,076,636)
4,509
258,247
17,190
168,970
(48,930)
(793,696)
(676,650)
30 June
2023
(1,063,782)
30 June
2022
(1,076,636)
318,871,110
267,566,539
Basic earnings per share (cents) – continuing operations
(0.334)
(0.402)
Page 52
Annual Report 2023 | 52
Notes to the financial statements
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 2023
Parent
2023
$
2022
$
3,674,108
13,302,167
7,196,336
10,620,726
16,976,275
17,817,062
720,348
-
333,615
-
720,348
333,615
16,255,927
17,483,447
56,316,652
763,615
(40,824,340)
56,138,939
1,099,059
(39,754,551)
Capital and reserves attributable to owners
16,255,927
17,483,447
Statement of profit or loss and other comprehensive income
Loss for the year
Other comprehensive income
Total comprehensive income
Parent Entity Contingencies
Contingent liabilities
The parent entity had no known contingent liabilities as at 30 June 2023 (2022: $NIL).
(1,069,789)
-
(1,178,601)
-
(1,069,789)
(1,178,601)
Contingent assets
Refer to Note 16 of the financial report.
Parent Entity Commitments
(a) Commitments for mining and exploration tenements
Refer to Note 17 of the financial report.
Annual Report 2023 | 53
Page 53
Notes to the financial statements
Directors’ declaration
In the directors' opinion:
Maximus Resources Limited
Directors' declaration
30 June 2023
(a)
(b)
(c)
the consolidated financial statements and notes set out on pages 29 to 53 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 2023 and of
their performance for the financial year ended on that date, and
(ii)
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
25 September 2023
Annual Report 2023 | 54
Page 54
Tenement Schedule
Maximus Resources Limited
Tenement Schedule
30 June 2023
Tenement No.
Project
Registered Holder
Maximus Resources Limited Interest
Spargoville Project
M 15 / 1475
Eagles Nest
Maximus Resources Ltd
MXR - 100% of all Minerals
M 15 / 1869
Eagles Nest South
Maximus Resources Ltd
MXR - 100% of all Minerals
L 15 / 128
Kambalda West
Maximus Resources Ltd
MXR - 100% all minerals, except Ni rights
L 15 / 255
Kambalda West
Maximus Resources Ltd
MXR - 100% all minerals, except Ni rights
M 15 / 395
Kambalda West
Maximus Resources Ltd
MXR - 100% all minerals, except Ni rights
M 15 / 703
Kambalda West
Maximus Resources Ltd
MXR - 100% all minerals, except Ni rights
M 15 / 1448
Hilditch
M 15 / 1449
Larkinville
Maximus Resources Ltd & Bullabulling
Pty Ltd
Maximus Resources Ltd & Essential
Metals Ltd
MXR - 90% of all minerals
MXR - 75% All minerals + MXR 80% Ni rights
M 15 / 1101
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15 / 1263
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15 / 1264
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15 / 1323
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15 / 1338
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15 / 1474
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals
M 15 / 1769
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15 / 1770
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15 / 1771
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15 / 1772
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15 / 1773
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15 / 1774
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals
M 15 / 1775
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals
M 15 / 1776
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals
P 15 / 6241
Kemble
Maximus Resource Ltd
MXR – 100% all minerals
E 15 / 1835
Highway
Maximus Resource Ltd
MXR - 100% of all Minerals under application
E 15 / 1836
Highway
Maximus Resource Ltd
MXR - 100% of all Minerals under application
E 15 / 1837
Highway
Maximus Resource Ltd
MXR - 100% of all Minerals under application
Maximus Resources - 100% Gold Rights
M 15 / 97
M 15 / 99
Widgiemooltha
Mt Edwards Critical Metals Pty Ltd
MXR - 100% gold rights
Widgiemooltha
Mt Edwards Critical Metals Pty Ltd
MXR - 100% gold rights
M 15 / 100
Widgiemooltha
Mt Edwards Critical Metals Pty Ltd
MXR - 100% gold rights
M 15 / 101
Widgiemooltha
Mt Edwards Critical Metals Pty Ltd
MXR - 100% gold rights
M 15 / 102
Widgiemooltha
Mt Edwards Critical Metals Pty Ltd
MXR - 100% gold rights
M 15 / 653
Widgiemooltha
Mt Edwards Critical Metals Pty Ltd
MXR - 100% gold rights
M 15 / 1271
Widgiemooltha
Mt Edwards Critical Metals Pty Ltd
MXR - 100% gold rights
Southern Cross Gold / Base Metal Project
E 77 / 2889
Karalee
SX Minerals Pty Ltd
E 15 / 1849
Boorabbin
SX Minerals Pty Ltd
E 63 / 2147
Jilbadji West
SX Minerals Pty Ltd
E 63 / 2148
Jilbadji East
SX Minerals Pty Ltd
MXR - 100% of all Minerals
MXR - 100% of all Minerals
MXR - 100% of all Minerals
MXR - 100% of all Minerals
Annual Report 2023 | 55
Independent auditor’s report to the members
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 2023, 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 2023 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
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.
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Annual Report 2023 | 56
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.
We have determined the matters described below to be the key audit matters to be communicated in our report.
Key audit matter
How our audit addressed the key audit matter
Exploration and evaluation assets - Notes 1(l) & 9
At 30 June 2023 the carrying value of exploration and
evaluation assets was $13,516,368.
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 process undertaken by management to assess
whether there are any impairment triggers in each area
of interest involves an element of management
judgement.
This area is a key audit matter due to the significant
judgement involved in determining the existence of
impairment triggers.
Our procedures included, amongst others:
• Reviewing management’s area of interest
considerations against AASB 6;
• Conducting a detailed review of management’s
assessment of trigger events prepared in
accordance with AASB 6, including;
− Tracing projects to exploration licenses and
statutory registers to determine whether a right
of tenure existed;
− Enquiring management regarding their
intentions to carry out exploration and evaluation
activity in the relevant exploration area,
including reviewing management’s budgeted
expenditure;
− Understanding whether any data exists to
suggest that the carrying value of these
exploration and evaluation assets are unlikely to
be recovered through development or sale;
• Assessing the accuracy of any impairment recorded
for the year as it pertained to exploration interests;
• Evaluating the competence, capabilities and
objectivity of management’s experts in the
evaluation of potential impairment triggers; and
• Reviewing 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 2023, but does not include the financial report and our
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and 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.
Annual Report 2023 | 57
Grant Thornton Audit Pty Ltd 2
Independent auditor’s report to the members
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
2023.
In our opinion, the Remuneration Report of Maximus Resources Limited, for the year ended 30 June 2023
complies with section 300A of the Corporations Act 2001.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
I S Kemp
Partner – Audit & Assurance
Adelaide, 25 September 2023
Annual Report 2023 | 58
Grant Thornton Audit Pty Ltd 3
Independent auditor’s report to the members ASX additional information
The shareholder information set out below was applicable as at 30 September 2023.
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
Units
% of Issued Capital
1,104
515
358
868
354
228,468
1,443,159
2,725,229
33,223,543
282,635,369
0.07
0.45
0.85
10.37
88.25
0.01
3,199
320,255,768
100.00
There were 2,196 holders of less than a marketable parcel of ordinary shares. At a share price of $0.029,
an unmarketable parcel is 17,242 shares.
Annual Report 2023 | 59
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
BEACON MINERALS LIMITED
BELL POTTER NOMINEES LTD
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