Metalicity Limited
ABN: 92 086 839 992
2022 Annual report
For the year ended 30 June 2022
Corporate Directory
Directors
Andrew Daley – Non-Executive Chairman
Justin Barton – Managing Director
Jason Livingstone – Non-Executive Director
Company Secretary
Nick Day
Auditors
Pitcher Partners BA&A Pty Ltd
Level 11
12-14 The Esplanade
PERTH WA 6000
Solicitors
Steinepreis Paganin
Level 4, The Read Buildings
16 Milligan Street
PERTH WA 6000
Bankers
ANZ Banking Group Ltd
1275 Hay Street
WEST PERTH WA 6005
Registered Office
Unit B2, 20 Tarlton Crescent,
PERTH AIRPORT WA 6105
Telephone:
+61 8 6500 0202
Share Registry
Link Market Services
QV1 Building
Level 12, 250 St Georges Terrace
PERTH WA 6000
Investor Enquiries:
Facsimile:
1300 554 474
(02) 9287 0303
Securities Exchange Listing
Securities of Metalicity Limited are listed on the Australian Securities Exchange (ASX).
ASX Listed Shares Code: MCT
ASX Listed Options Code: MCTOA
Web Site: www.metalicity.com.au
1
Contents
Directors’ report
Auditor’s independence declaration
Independent auditor’s report
Directors’ declaration
Annual financial statements
Consolidated statement of profit or loss and other comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the financial statements
Australian Securities Exchange (ASX) Additional Information
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76
2
Directors’ Report
The Directors of Metalicity Limited (the “Company” or “Metalicity”) submit herewith the annual financial
report of the Company and its subsidiaries (the “Group”) for the financial year ended 30 June 2022.
Directors
The names and particulars of the Directors of the Company during or since the end of the financial year
are:
Name
Particulars
Andrew Daley
Non-Executive Chairman (appointed as Chairman on 18 May 2021)
Justin Barton
Managing Director (appointed Managing Director on 1 January 2022)
(previously appointed CEO on 1 June 2021)
Jason Livingstone Non-Executive Director (appointed 4 July 2022)
(previously appointed Technical Director on 1 June 2021)
The above-named Directors held office during and since the financial year, except as otherwise
indicated.
Principal Activities
The Group’s principal activity as at the date of this report is mineral exploration and development of the
Kookynie and Yundamindra Gold Projects, that the Company has an effective 67.8% joint venture interest in
through direct ownership of 51% and ~34.3% indirect interest via Nex Metals Exploration Ltd (“Nex”), and the
recently acquired Mt Surprise Lithium Project and the Georgetown Lithium Project.
Review of Operations and Results
Throughout the year the Company continued to explore and develop the Kookynie and Yundamindra gold
projects.
Kookynie Gold Projects
The Kookynie Gold Project is located approximately 180km north of the town of Kalgoorlie and present an
opportunity to develop a high-grade gold resource based off historic exploration within the area.
The Kookynie Project hosts the historical mining centres of Diamantina-Cosmopolitan-Cumberland, known
as the DCC trend, as well as McTavish, Leipold, Champion and Altona (Figure 1).
Each of the historic mining operations were highly successful, with the Cosmopolitan gold mine producing
360,000 ounces of gold from discovery from 1895 to 19221,. During the early part of last century, the
Cosmopolitan mine ranked as one of the largest and most profitable gold mines in Western Australia.
Metalicity has categorised the Kookynie Gold Project into three distinct zones based on key characteristics
as geographic location, mineralisation style and stage of project advancement (Figure 1).
During the financial year, Metalicity completed further resource definition drilling and several rounds of
extensive exploration drilling at the Kookynie Gold Project.
1 Cautionary Statement Relating to Cosmopolitan Historical Production Data
The Production details for the Cosmopolitan Mine are referenced from publicly available data sources. The source and date of the production data
reported has been referenced in the body of this announcement where production data has been reported. The historical production data have not
been reported in accordance with the JORC Code 2012. A Competent Person has not done sufficient work to disclose the historical production data
in accordance with the JORC Code 2012. It is possible that following further evaluation and/or exploration work that the confidence in the prior
reported production data may be reduced when reported under the JORC Code 2012 Nothing has come to the attention of the operator that causes it
to question the accuracy or reliability of the historical production data; An assessment of the additional exploration or evaluation work that is
required to report the data in accordance with JORC Code 2012 will be undertaken as part of the Company’s development plan.
3
Directors’ Report
Figure 1 – Kookynie Prospect Locality Map with mineralised trends.
4
Directors’ Report
Central Zone
The Central Zone of the Kookynie Gold project hosts several significant gold deposits and prospects and was
the focus of exploration activities for the year. Primary exploration activities included a small program of
Diamond and Reverse Cycle (RC) drilling for resource definition and mineral resource estimate purposes,
drilling programs targeting extensions to known mineralisation and new exploration targets as well as
numerous field reconnaissance visits by Metalicity geologists. A summary of total drilling activities is shown
in Table 1 below 2,3.
Drill Type
DDH (RC pre-collar)
RC
AC
Total
Total Holes
7
78
90
175
Total Metres
625
4,190
5,213
10,028
Assay results from drilling programs within the reporting period delivered greater resource definition for the
Leipold, McTavish and Champion Deposits and a considerable extension of mineralisation over 400 metres
to the McTavish Deposit, at McTavish South, with significant composite drilling intercepts shown in figure 2
below4.
Figure 2 – McTavish South Prospect Drill Collars Plan Layout. Base map layer is a magnetic intensity first vertical derivative of
the reduced to the pole pseudocolour mapping with directional sun shading from the northeast.
2 ASX Announcement “Widest Intersection to Date at Kookynie as Champion & McTavish Continue to Deliver Strong Gold Results” dated 13th
December 2021.
3 ASX Announcement “Bonanza Grades Intercepted in a New Gold Zone Identified 200m to the East of the Main Leipold Lode” dated 6th
December 2021.
4 ASX Announcement “Drilling Extends Significant Gold Mineralisation along McTavish Trend by a Further 400 metres” dated 27th June 2022.
5
Directors’ Report
Exploration drilling also identified a number of anomalous mineralisation intercepts from several targets from
a revised target generation review of previous drilling results, high-resolution aeromagnetic surveys and
detailed interpretation of mineralised host structures.
Also completed during the year was the 2012 JORC compliant combined Mineral Resource Estimate (“MRE”)
for the Leipold, McTavish and Champion Deposits (See Resources Section of this report pg. 80)5. Diamond
drilling undertaken during the reporting period was conducted to collect critical density data necessary for the
MRE and to test the extent of the host quartz vein structure at depth.
Western Zone
Work undertaken in the Western Zone of the Kookynie Gold Project for the year involved a thorough review
of previous drilling results and high-resolution aeromagnetic surveys identifying significant structures that
control gold mineralisation on the Wandin tenement, including6:
• Brittle faulting interpreted to dislocate and offset stratigraphy analogous to the prolific Niagara Gold
Mining Centre.
• Brittle fault and shear structures known to host gold mineralisation have been confidently
extrapolated into the Wandin tenement
The Wandin Prospect and tenement area received minimal exploration in the past 15 years despite mapped
lithologies analogous to the Niagara Mining Centre. The Niagara Mining Centre has a general strike length
over five kilometres with significant gold endowment from historical extraction and has current in ground un-
exploited resources making the prospects of the potential in the Wandin tenure very exciting (Figure 3).
Developed in parallel, same detailed review process undertaken for the Wandin area was applied to the
Mulga Plum Prospect, coupled with historical drilling and surface rock chip results which include:
Figure 3. Wandin Geophysics and analogous zones.
5 ASX Announcement “Kookynie Maiden JORC 2012 Mineral Resource Estimate” dated 1st April 2022.
6 ASX Announcement “Further Expansion of the Current Drilling Program to Test Wandin Highly Prospective Significant
Structural Similarities Identified” dated 22nd April 2022.
6
Directors’ Report
• AJAR0009 – 2 metres @ 8.84 g/t Au from 14 metres,
• AJAR0003 – 2 metres @ 2.96 g/t Au from 42 metres, &
• AJAR0011 – 6 metres @ 1.22 g/t Au from 10 metres.
• Rock chips from veins have hosted mineralisation of up to 17.1 g/t Au (Figure 4).
An approved Program of Works (“POW”) to follow up on historical drill intercepts from 2020 was added to the
2022 drilling program to test for structurally controlled, near surface mineralisation anomalies and potential
unexposed extensions where the orientation of host structures and areas of associated mineralisation can
be confidently extrapolated under alluvial cover at Mulga Plum 7.
Figure 4. Previous Mulga Plum RC Drilling Collar Plot & Rock Chip Sample Locations.
Northern Zone
The Northern Zone of the Kookynie Gold Project represents the third priority area after the Central and
Western Zones containing the Orient Well East Prospect which Metalicity drilled in late 2020. Similar to work
carried out on the Central and Western Zones, a review of historic drilling and other exploration results as
well as high-resolution aeromagnetic surveys and structural re-interpretation was undertaken, but strategic
outcomes are yet to be completed for target generation purposes.
7 ASX Announcement “Current Drilling Programme at Kookynie to be Significantly Expanded” dated 20th April 2022.
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Directors’ Report
The Yundamindra Gold Project
The Yundamindra Gold Project is located 65 kms southeast of Leonora and 65 kms east of Kookynie. The
project consists of none granted mining leases, which the Company will hold the rights to explore.
The Yundamindra Gold Project hosts high grade historical production of 74kt @ 19.3 g/t Au for 45,000
ounces. Significant intercepts from the Prospects within the Project include8:
o Bound to Rise - 2m @ 7.21 g/t Au from 30 m in HC007,
o Pennyweight Point - 8m @ 56.36 g/t Au from 44 m in PV095,
o Golden Treasure North - 1m @ 48.1 g/t Au from 12 m in TDN18,
o Queen of the May - 2m @ 39.49 g/t Au from 31 m in QMN5, &
Landed at Last - 2m @ 23.29 g/t Au from 30 m in LN11.
o
The Yundamindra Project has only experienced shallow drilling and offers an opportunity for MCT to confirm
and extend the known mineralisation occurrences within the area. The company has identified immediate drill
targets at Penny Weight Point, Washington, Polish Queen and Maori Queen prospects. Field work has
identified the presence of inverted paleochannels obscuring mineralised trends at the Yundamindra West line
of lode9.
All Yundamindra tenure is currently under plaint, however these proceedings are currently before the
Wardens Court.
8 Please refer to ASX Announcement “September 2019 Quarterly Activities Report” dated 30 October 2019.
9 Cautionary Statement Relating to Yundamindra Historical Production Data
The Production details for the Yundamindra are referenced from publicly available data sources. The source and date of the production data for
Yundamindra has been reported in the Geological Survey of Western Australia records showing the development of the Cosmopolitan Gold Mine in
1905. DMIRS digital records include open file Annual Reports and data pertaining to the exploration and development efforts of previous operators.
Two documents with WAMEX reference numbers A069774 and A067918 are of particular interest. The previous operator in the early 2000’s, Point
Exploration Ltd, digitised these historical maps, including the channel sampling. The historical production data have not been reported in
accordance with the JORC Code 2012. A Competent Person has not done sufficient work to disclose the historical production data in accordance
with the JORC Code 2012. It is possible that following further evaluation and/or exploration work that the confidence in the prior reported
production data may be reduced when reported under the JORC Code 2012 Nothing has come to the attention of the operator that causes it to
question the accuracy or reliability of the historical production data; An assessment of the additional exploration or evaluation work that is required
to report the data in accordance with JORC Code 2012 will be undertaken as part of the Company’s development plan.
8
Directors’ Report
Figure 5 – Yundamindra Tenement Map
Mt Surprise and Georgetown Lithium Projects
Mt Surprise Lithium Project
The Mount Surprise project covers a large area approximately 165km from the city of Cairns, Queensland
and 57 km northeast of the town of Mt Surprise (Figure 6). Mt Surprise is considered highly prospective for
lithium, as evidenced by a historical rock chip sample that returned 3.55% Li2O10. The Project has seen
minimal exploration work and, in particular, has not been properly explored for lithium and other valuable
associated metals.
Reconnaissance rock sampling was conducted by Monax in 2016 (See MOX announcement May 2016) from
an area identified as the Gingerella Site, which returned assay results outlined in the summary table below.
Site
Gingerella
Easting
252747
Northing
8039644
MGA94 (Zone 55)
Li2O (%)
3.55
Ta (ppm)
125.5
Cs (ppm)
2560
Rb (%)
1.23
10 ASX Announcement “Metalicity Secures Highly Prospective Lithium Project” dated 18th August 2022.
9
Directors’ Report
Figure 6 – Location of Application EPM 28052 Mt Surprise Project and EPM 28121 Georgetown Project - North Queensland.
The sampled outcrop is described as close to a quarry working the Double Barrel andesite but specifically
along a red/pink altered contact of the underlying Blackman Granite and/or pegmatite. Lithium minerals were
described as lepitolite (lithium mica) however the mineralogy has never been confirmed.
In addition, historic rock chip sampling results on the Mt Surprise tenure has indicated high-grade and
anomalous copper and anomalous base metal and gold mineralisation within the EPM 28052 tenement
boundary*. Some of the more significant copper and gold results are shown below.
●
●
●
●
●
●
●
●
●
27.5% Cu
6.73% Cu
4.04% Cu
3.67% Cu
1.62% Cu
1.32 g/t Au
1.21 g/t Au
1.11 g/t Au
18.8% Pb
The information presented is open to the public via the GSQ Open Data Portal System (formerly the QDEX
system), and we are using this information, along with planned fieldwork in the very near future to assist the
Company in our exploration efforts over the Mt Surprise Project 11.
11 ASX Announcement “Historical Samples at the Mt Surprise Lithium Project Identify Significant Copper mineralisation over 5km Strike” dated 2nd
September 2022.
10
Directors’ Report
These preliminary results highlight the significant prospectivity of this area, which has not been explored in
any detail for Lithium mineralisation*.
Georgetown
The Georgetown Project covers an extensive area and a wide range of prospective lithologies including the
White Springs Granodiorite, Einasleigh Metamorphics as well as a number of other intrusives, volcanic and
non-volcanic metasediments (Figure 7). The regional area of the Georgetown Project is a highly mineralised
system which includes numerous mineral occurrences of precious and base metals as well as Lithium
Caesium Tantalum (LCT) occurrences including Buchannan pegmatite hosted lithium-tantalum deposit held
by Strategic Metals Australia Buchanans LCT pegmatite discovery by Strategic Metals Australia2 (Figure 7).
Similar to the lithology of the Mt Surprise Project area, Metalicity regards the Georgetown Project area as
fertile to produce more LCT (Lithium-Caesium-Tantalum) pegmatites prospective for lithium mineralisation.
Within the northern area of exploration permit application EPM 28121 several outcropping pegmatite dykes
were mapped from well exposed outcrops with a total strike length of up to 3 kilometres (Figure 7). These
pegmatites will be the initial investigation sites for a detailed exploration program including detailed field
mapping and rock chip sampling that will assist in developing a more detailed exploration program across the
total tenement area.
Figure 7 - Location of Application EPM 28121 Georgetown Project - North Queensland. 100,000 bedrock geology by Geological Survey of Qld.
Blue polygon indicates mapped pegmatites, significant area of Felsic/Rhyolitic dykes highlighted as yellow polygon.
*Cautionary Note: Confidence in the precise location of historical surface samples collected is low as an older, superseded coordinate system was
utilised. The location of the samples can be approximated using georeferenced features relative to current information available on the GSQ Open
Data Portal System. More exploration sampling and confirmation geological mapping is required to establish what is representative of the true extent
and sample grade of all types of mineralisation within the Project area.
11
Directors’ Report
Admiral Bay
The Company currently holds an ~80.3% interest in Kimberley Mining Ltd.(KML), that in turn holds 100% of
the Admiral Bay Asset. While the asset itself is on care and maintenance, the Company is continuing to look
for opportunities to monetise its interest in KML.
The Admiral Bay Zinc Project is located in the Kimberley region of Western Australia, approximately 140 km
south of Broome. The general area in which the Project is located is characterised by low elevation and fairly
flat terrain. The Project consists of 2 granted mining leases (MLs) and an exploration licence (EL).
Figure 8 – Admiral Bay tenements and historical drilling
Metalicity has previously undertaken an updated Inferred Mineral Resource Estimate (MRE) of 170 Mt at
7.5% ZnEq (Figure 8), with a high-grade zone of 20Mt at 10% ZnEq (including 4.9Mt at 12.5% ZnEq)1. A
scoping study was alco completed by SRK Consulting (July 2016) which identified the following key
outcomes:
• Project development determined to be technically feasible
• Base case open stope mining method
• Flat lying deposit geometry and rock properties potentially favourable for longwall mining
• Conventional flotation processing with expected high metallurgical recoveries.
Please refer to pages 80 – 86 for all Metalicity Ltd Resource Statements, Competent Persons Statements and
Disclaimer and Forward-Looking Statements.
12
Directors’ Report
Results
The net loss after income tax for the year ended 30 June 2022 was $5,207,914 (30 June 2021: loss
$3,170,895).
Significant changes in state of affairs
There were no significant changes in the state of affairs of the Group during the financial year.
Environmental regulations
The Group is aware of its environmental obligations with regards to its exploration activities and ensures that
it complies with all regulations when carrying out exploration work.
Dividends
No dividends have been paid or declared since the beginning of the financial year and none are
recommended.
Subsequent events
Other than the following, the Directors are not aware of any significant events since the end of the reporting
period which significantly affect or could significantly affect the operations of the Group in future financial
years:
- On 4 July 2022, the Company announced an extension of its offer in relation to its off-market takeover
bid of Nex to 25 July 2022;
- On 5 July 2022, the Company advised that the extraordinary meeting of Nex had been adjourned to
25 July 2022;
- On 22 July 2022, the Company announced the proceedings for the $1,279,794 claim against Nex
had been listed for mediation in the Supreme Court of Western Australia on the 11 November 2022;
- On 25 July 2022, the Company announced an extension of its offer in relation to its off-market
takeover bid of Nex to 8 August 2022;
- On 2 August 2022, the Company announced it had brought court action seeking ~22.28% of Nex to
be vested in ASIC and sold;
- On 8 August 2022, the Company announced an extension of its offer in relation to its off-market
takeover bid of Nex to 29 August 2022;
- On 18 August 2022, the Company announced the acquisition of the highly prospective Mt Surprise
Lithium Project.
- On 23 August 2022, the Company announced that the Mt Surprise Lithium Project had been granted;
- On 25 August 2022, the Company announced it had secured a second highly prospective lithium
project with the acquisition of the Georgetown Lithium Project;
- On 29 August 2022, the Company announced that its extension of offer in relation to its off-market
takeover bid of Nex had lapsed and would not be extended;
- On 1 September 2022, the Company announced that it retains effective interest of ~67.8% in
Kookynie and Yundamindra Gold Project through direct ownership of 51% and 34.3% indirect interest
via Nex;
- On 2 September 2022, the Company announced historical samples at the Mt Surprise Lithium Project
identify significant copper mineralisation over 5km strike;
- On 13 September 2022, the Company announced substantial extensions and significant gold
intersections at Champion.
- On 23 September 2022, the Company announced the Annual General Meeting would be held on 25
November 2022.
Likely developments and expected results of Operations
The Group will continue to explore and assess its mineral projects.
13
Information on Directors
Directors’ Report
Andrew Daley -
Non-executive Chairman – appointed as a Non-Executive Director in August
2013 and Chairman on 18 May 2021
Experience and Expertise
Mr Daley has a Bachelor of Science (Honours), a Grad Dip in Mineral Economics and is a Fellow of the
Australasian Institute of Mining and Metallurgy. He has over 50 years’ experience in resources worldwide
having initially worked with Anglo American Corp, Rio Tinto, Conoco Minerals and Fluor Australia in mining
operations, project evaluation and mining development. Mr Daley then moved into resource project financing
with National Australia Bank, Chase Manhattan Bank and from 1999 to 2003 was a Director of the Mining
Team at Barclays Capital in London. Moving back to Australia, Mr Daley was a Director of Investor Resources
Finance Pty Ltd, a company based in Melbourne which provided financial advisory services to the resources
industry globally and for the last 20 years has also been a Director and Chairman of the Board of a number
of developing public resource companies both in Australia and the UK.
Other Current Directorships
None
Former Directorships in the Last Three Years
None
Interests in Shares and Options
17,990,978 ordinary shares, 1,332,666 listed options and 5,985,055 performance rights.
Justin Barton –
Managing Director – appointed Finance Director on 1 January 2018, Chief
Executive Officer on 1 June 2021 and Managing Director on 1 January 2022
Experience and Expertise
Mr Barton is a Chartered Accountant with over 20 years’ experience in accounting, international finance, M&A
and the mining industry. He worked for over 13 years in the Big 4 Accounting firms in Australia and Europe
and advised many of the world’s largest mining, oil & gas companies and financial institutions, including Rio
Tinto, Chevron, Macquarie, Merrill Lynch, Morgan Stanley and Deutsche Bank. Justin also worked for 4 years
at Paladin Energy Limited as Group Tax Manager. More recently, he has worked as the CFO and has been
a Board Member of a number of junior exploration companies.
Other Current Directorships
Kimberley Mining Limited (a public unlisted Canadian company)
Former Directorships in the Last Three Years
Great Western Exploration Limited (appointed 20 May 2020, resigned 4 June 2020)
Interests in Shares and Options
19,850,510 ordinary shares, 1,470,409 listed options and 39,590,220 performance rights
Jason Livingstone - Non-Executive Director – appointed 4 July 2022, formerly Technical Director
Experience and Expertise
until 4 July 2022
Mr Livingstone is a geologist with 20 years’ experience across exploration through to production environments
on four continents. Mr Livingstone holds a Bachelor of Science (Geology) from the West Australian School
of Mines, a Masters of Business Administration from the Curtin Graduate School of Business, is a member
of the Australian Institute of Geoscientists, and has completed the Company Directors Course at the
Australian Institute of Company Directors.
14
Directors’ Report
Other Current Directorships
Managing Director of Woomera Mining Ltd (ASX:WML) from 16 August 2022
Former Directorships in the Last Three Years
Non-executive for Resource Mining Inc (ASX:RMI) from 4/04/22 to 20/06/22
Interests in Shares and Options
23,574,348 ordinary shares and 37,531,253 performance rights
Company Secretary
Nicholas Day –
Company Secretary – appointed 24 September 2020
Mr Day has over 20 years’ experience as a company Director, CFO and company secretary for a broad
range of listed and private exploration, mining and technology companies. Previously he was CFO and
company secretary of Battery Minerals, Minbos Resources Limited, Dreadnought Resources Limited, RTG
Mining, finance Director at Coventry Resources and company secretary to Paringa Resources Limited and
Ebooks Corporation. Qualifications: BCOM(UWA); MBA(UWA); Fellow Finsia, ACPA.
Directors’ meetings
The number of meetings of the Company’s board held during the year ended 30 June 2022 that each Director
was eligible to attend, and the number of meetings attended by each Director were:
Director
Number of Meetings
Eligible to attend
Attended
Andrew Daley
Justin Barton
Jason Livingstone
17
17
17
17
17
17
The whole board undertakes the role of the Audit & Risk Committee, the Remuneration Committee and the
Nomination Committee given the size and complexity of the Company.
15
Remuneration Report (Audited)
Directors’ Report
The information provided in this Remuneration Report has been audited as required by Section 308(3C) of
the Corporations Act 2001.
Executive remuneration
The objective of the Group’s executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with achievement of
strategic objectives and the creation of value for shareholders, and conforms to market best practice for
delivery of reward. The board ensures that executive reward satisfies the following key criteria for good
reward governance practices:
(i) competitiveness and reasonableness;
(ii) acceptability to shareholders;
(iii) performance linkage / alignment of executive compensation;
(iv) transparency; and
(v) capital management.
The Group has structured an executive remuneration framework that is market competitive and
complimentary to the reward strategy of the organisation, which are designed to align the interests of
executives with those of shareholder and costs of:
1) Fixed remuneration
The fees and payments to the executive reflect the demands which are made on, and the responsibilities of
the executive, and are in line with market. The executives’ remuneration is reviewed annually by the board
to ensure that the fees and payments remain appropriate and in line with the market, no third party consultants
were used. The Company has entered into standard contracts with executive Directors.
2) Variable remuneration – Long term incentives
Being performance shares and/or options issued under the Employees Share Plan. The performance shares
and employee options issued under this plan have varying vesting and service conditions and are structured
to reward performance that aligns with the creation of shareholder value and confirms to market best practice.
3) Termination
Executive Directors currently have a 6 month notice period in ordinary course of business and a 12 month
notice period in the event of Change of Control event or for 12 months after such event.
During the year, Justin Barton was paid $260,000 (including superannuation) and Jason Livingstone was
paid $60,000 for being a director and $187.50 an hour for technical work completed, both amounts excluding
superannuation. Justin has a 6 month notice period and Jason has a 3 month notice period.
Non-executive Directors’ remuneration
Fees to the non-executive Directors are determined by the board acting as the Remuneration Committee as
appropriate having regard to the market and the aggregate remuneration specified in the Company’s
Constitution ($500,000) and determined by the shareholders in general meeting. The fees are reviewed
annually. It is the Group’s policy that service contracts for non-executive Directors are unlimited in term and
capable of termination by either party upon written notice.
Andrew Daley is paid $75,000 per annum (including superannuation) for his role as a non-executive Director
and Chairperson, and Jason is paid $60,000 per annum (including superannuation) from 4 July 2022 in his
role as non-executive director, both with termination available on written notice. Nick Day is paid $5,500 a
month based on 32 hours work and anything over that is paid $200 an hour (GST to be added to both
amounts), for his role as Company Secretary, as a consultant through his company 133 North Trust.
The amount of remuneration of the Directors of the Company (as defined in AASB 124 Related Party
Disclosures) and other key management personnel is set out in the following tables.
The Company has entered into standard contracts with Directors, the details of which are set out below.
16
Directors’ Report
Remuneration Report (Audited) (continued)
2022
Short-
term
Benefit –
salary &
fees
Short-term
Benefit -
Other
Post-
Employment
Benefit4
Share-based
Payments3
Total
Performance
related %
$
$
$
$
$
Executive Directors
Justin Barton
Jason Livingstone1
Non-executive Director
Andrew Daley
Other executive
Nick Day2
Totals
247,314
368,796
65,138
86,690
767,938
-
-
-
-
-
24,265
35,353
132,358
136,483
403,937
540,632
32.77%
25.25%
6,383
29,670
101,191
29.32%
-
66,001
-
86,690
298,511 1,132,450
0.0%
The fees paid to Director related entities were for the provision of services of the particular Director to the Company are as follows:
1 Jason Livingstone was was paid $60,000 as a director’s fee and per day for technical work performed.
2 133 North Trust, an associate of Nick Day, was paid $86,690 for company secretarial services. Nick Day was appointed company
secretary on 24 September 2020.
3$13,677 relates to the current year and if approved at the November 2022 AGM, performance rights will be issued to Justin Barton,
vesting on 1 July 2022 or such later date when the share price exceeds 150% and 250% of closing price on the first business day of
2022 for 5 consecutive days. (Please refer to share based payment compensation below). The remaining $284,834 relates to 12 months
expense of the performance rights issued in 2021.
4Relates to Superannuation.
2021
Short-
term
Benefit -
Salary &,
fees
Short-term
Benefit -
Other
Post-
employment
Benefit
Share-based
Payments6
Total
Performance
related %
$
$
$
$
$
Executive Directors
Justin Barton
Jason Livingstone1
Non-executive Directors
Andrew Daley
Mathew Longworth3
Other executives
Nick Day4
Neil Hackett5
Totals
182,507
213,321
-
83,4821,2
44,638
68,750
87,356
12,000
608,572
-
-
-
-
83,482
17,338
23,538
4,241
-
-
-
45,117
70,233
80,768
270,078
401,109
17,558
26,338
66,437
95,088
-
-
194,897
87,356
12,000
932,068
66.7%
58.9%
67.2%
68.6%
0.0%
0.0%
The fees paid to Director related entities were for the provision of services of the particular Director to the Company are as follows:
1 Jason Livingstone resigned as Managing Director and was appointed Technical Director on 1 June 2021 and was paid out all leave
entitlements totalling $33,482.
2 Jason Livingstone was paid a bonus of $50,000 during the year.
3 Mat Mining, an entity associated with Mathew Longworth, was paid $68,750. Mathew Longworth resigned on 18 May 2021.
4 133 North Trust, an associate of Nick Day, was paid $87,356 for company secretarial services. Nick Day was appointed company
secretary on 24 September 2020.
5 Corporate Starboard Pty Ltd, an entity associated with Neil Hackett, was paid $12,000 for company secretarial services. Neil Hackett
resigned on 24 September 2020.
6 Performance rights were approved by shareholders at the 2020 AGM and were issued to Directors during the year. The performance
rights have vesting hurdles of $0.04 and $0.06 (Please refer share based payment compensation below)
17
Directors’ Report
Remuneration Report (Audited) (continued)
Share-based compensation
The grant of each tranche of the following performance rights in the current and prior financial years, represent
a conditional right for the holder to acquire one fully paid ordinary share in the Company, and are subject to
meeting specified vesting conditions.
During the financial year, the following performance rights for key management personnel were recognised:
2022
Name
Share price hurdle
No. granted
Grant date
Expiry Date
Value of
Performance
Rights granted at
grant date
Justin Barton
Justin Barton
$0.015
$0.025
5,000,0001
5,000,0002
10,000,000
30/06/2022
30/06/2022
30/06/2025
30/06/2025
$7,963
$5,714
$13,677
1 5 million performance rights will vest on 1 July 2022 or such later date, when the share price of the Company’s ordinary shares listed
on the ASX have exceeded 150% of the closing price on the first business day of 2022, for 5 consecutive business days.
2 5 million performance rights will vest on 1 July 2022 or such later date, when the share price of the Company’s ordinary shares listed
on the ASX have exceeded 250% of the closing price on the first business day of 2022, for 5 consecutive business days.
These instruments have been accrued as at 30 June 2022 with the instruments to be issued following
shareholder approval at the AGM.
2021
Name
Share price hurdle
No. granted
Grant date
Expiry Date
Jason Livingstone
Jason Livingstone
Justin Barton
Justin Barton
Andrew Daley
Andrew Daley
Mat Longworth
Mat Longworth
$0.04
$0.06
$0.04
$0.06
$0.04
$0.06
$0.04
$0.06
12,299,4651
15,231,7882
10,695,1871
13,245,0332
2,673,7971
3,311,2582
4,010,6951
4,966,8872
66,434,110
26/11/2020
26/11/2020
26/11/2020
26/11/2020
26/11/2020
26/11/2020
26/11/2020
26/11/2020
18/12/2022
18/12/2022
18/12/2022
18/12/2022
18/12/2022
18/12/2022
18/12/2022
18/12/2022
Value of
Performance
Rights granted at
grant date
$132,834
$140,132
$115,508
$121,854
$28,877
$30,464
$43,316
$45,696
$658,681
1 Tranche A performance rights will vest subject to the Company achieving a 20 day volume weighted average price (VWAP) of Shares
of at least $0.04.
2 Tranche B performance rights will vest subject to the Company achieving a 20 day volume weighted average price (VWAP) of Shares
of at least $0.06.
18
Directors’ Report
Remuneration Report (Audited) (continued)
Share and option holdings of Key Management Personnel (KMP)
(i) Option and performance right holdings
Options
The numbers of options over ordinary shares in the Company held during the financial year by each KMP,
including their personally related parties, are set out below:
2022
Options
Directors
Jason
Livingstone
Andrew
Daley
Justin Barton
Other
executives
Nick Day
Balance at
the start of
the year
Granted
during the
year
Exercised
during the
year
Expired
/cancelled
during the
year
Other
changes
during
the year
Balance at
the end of
the year
Vested and
exercisable
at the end
of the year
Vested
but not
exercisab
le at end
of year
4,000,000
-
-
-
-
1,332,666(a)
1,470,409(a)
-
4,000,000
2,803,075
-
-
-
-
-
(4,000,000)
-
-
-
(4,000,000)
-
-
-
-
-
-
-
1,332,666
1,332,666
1,470,409
1,470,409
-
-
2,803,075
2,803,075
-
-
-
-
-
(a)Options obtained as part of June 2022 Rights Issue, where 1 option was provided for every 3 shares purchased. Exercisable at
$0.01 on or before 01/06/2024.
2021
Balance at
the start of
the year
Granted
during
the year
Exercised
during the
year
Expired
/cancelled
during the
year
Other
changes
during the
year
Balance at
the end of
the year
Vested and
exercisable
at the end
of the year
Vested but
not
exercisable
at end of
year
Options
Directors
Jason
Livingstone
Andrew Daley
Justin Barton
Mathew
Longworth
Other
executives
Nick Day
5,016,667
14,466,420
362,964
10,495,971
-
30,342,022
-
-
-
-
-
-
(1,016,667)
-
(4,216,420)
(10,250,000)
(362,964)
-
-
-
-
(31,709)
(10,200,024)
(264,238)(a)
-
-
-
4,000,000
4,000,000
-
-
-
-
-
-
-
-
(5,627,760)
(20,450,024)
(264,238)
4,000,000
4,000,000
-
-
-
-
-
-
(a)Balance at time of resignation on 18 May 2021.
19
Directors’ Report
Remuneration Report (Audited) (continued)
Performance rights
The numbers of performance rights over ordinary shares in the Company held during the financial year by
each KMP, including their personally related parties, are set out below:
2022
Performance Rights
Directors
Jason Livingstone
Justin Barton
Andrew Daley
Other executives
Nick Day
Balance at
the start of
the year
Granted as
remuneration
during the year
Exercised
during the
year
Balance at
the end of
the year
Vested and
exercisable
at the end
of the year
Vested but
not
exercisable
at end of
year
37,531,253
-
29,590,220
10,000,000(a)
5,985,055
-
-
-
- 37,531,253
- 39,590,220
-
-
5,985,055
-
73,106,528
10,000,000
- 83,106,528
-
-
-
-
-
-
-
-
-
-
(a)These vest and are able to be issued from 1 July 2022.
2021
Balance at
the start of
the year
Granted as
remuneration
during the year
Exercised
during the
year
Balance at
the end of the
year/date of
resignation
Vested and
exercisable
at the end
of the
year/date of
resignation
Vested
but not
exercisab
le at end
of year
Performance Rights
Directors
Jason Livingstone
Justin Barton
Andrew Daley
Mat Longworth
Other executives
Nick Day
Neil Hackett
20,000,000
27,531,253
(10,000,000)
37,531,253
10,625,000
23,965,220(c)
(5,000,000)
29,590,220
-
-
-
1,400,000
32,025,000
5,985,055
8,977,582
-
-
-
-
-
5,985,055
8,977,582(a)
-
(1,000,000)
400,000(b)
66,459,110
(16,000,000)
82,484,110
-
-
-
-
-
-
-
(a)Balance at time of resignation on 18 May 2021.
(b)Balance at time of resignation on 24 September 2020, which were cancelled 30 days after.
(c) Includes 25,000 performance rights not recognised in prior year.
-
-
-
-
-
-
-
20
Directors’ Report
Remuneration Report (Audited) (continued)
Share and option holdings of Key Management Personnel (KMP) (continued)
(ii) Share holdings
The numbers of shares in the Company held during the financial year by each Director, including their
personally related parties, are set out below:
2022
Directors
Jason Livingstone
Andrew Daley
Justin Barton
Other executives
Nick Day
Balance at the
start of the year
Acquired on the
exercise of
options/vesting of
performance shares
Other changes during
the year(a)
Balance at the
end of the year
23,574,348
13,992,982
15,439,284
-
53,006,614
-
-
-
-
-
-
3,997,996
4,411,226
23,574,348
17,990,978
19,850,510
-
-
8,409,222
61,415,836
(a)Shares acquired as part of June 2022 rights issue.
2021
Directors
Jason Livingstone
Andrew Daley
Justin Barton
Mathew Longworth
Other executives
Nick Day
Neil Hackett
Balance at the
start of the year
Acquired on the
exercise of
options/vesting of
performance shares
Other changes during
the year(b)
Balance at the
end of the year
2,833,333
7,662,581
1,620,372
1,321,183
-
340,801
13,778,270
11,016,667
4,216,420
5,362,964
31,709
-
1,000,000
21,627,760
9,724,348
2,113,981
8,455,948
23,574,348
13,992,982
15,439,284
3,587,963
4,940,855(a)
-
-
-
1,340,801(a)
23,882,240
57,947,470
(a)Balance at time of resignation.
(b)Shares issued in lieu of salary as approved by shareholders at meeting on 13 August 2020.
21
Directors’ Report
Remuneration Report (Audited) (continued)
Link between Company performance and Remuneration policy
2022
$
2021
$
2020
$
2019
$
2018
$
Profit / (loss) after income tax
(5,207,914)
(3,170,895)
(1,340,757)
(4,410,376)
(2,302,570)
Share price at 30 June ($)
Total dividends declared (cents per
share)
Basic profit / (loss) per share
(cents per share)
0.003
-
0.01
-
0.037
-
0.007
-
0.023
-
(0.22)
(0.19)
(0.17)
(0.74)
(0.43)
There is no direct link between the Company performance and Remuneration policy.
(End of Remuneration Report)
22
Directors’ Report
Additional Information
(a) Unissued shares
At the date of this report, the Company had 345,093,084 options and 96,084,110 performance rights over
ordinary shares under issue. Each instrument converts into one fully paid ordinary share on exercise. These
instruments are exercisable as follows:
Details
Options
Details
Performance Rights
No of
Options
25,709,467
35,000,000
21,000,000
20,000,000
243,383,617
345,093,084
No of
Options
15,650,000
29,679,144
36,754,966
2,000,000
2,000,000
5,000,000
5,000,000
96,084,110
Grant Date
Date of Expiry Conversion Price $
21/02/2018
12/10/2020
21/06/2021
01/06/2022
01/06/2022
14/02/2023
13/10/2023
22/06/2024
01/06/2024
01/06/2024
0.08
0.03
0.015
0.01
0.01
Grant Date
Date of Expiry Hurdle Price $
25/11/2019
26/11/2020
26/11/2020
20/09/2021
20/09/2021
30/06/2022
30/06/2022
30/01/2023
18/12/2022
18/12/2022
11/04/2025
11/04/2025
30/06/2025
30/06/2025
0.05
0.04
0.06
0.0135
0.0180
0.015
0.025
During the financial year, the Company granted 10 million performance rights for remuneration to a KMP
(refer to the Remuneration Report forming part of this Directors’ Report) and 4 million performance rights for
remuneration to an employee, Stephen Guy, issued 243,383,617 free attaching options (one option for every
three shares) as part of a capital raise for $3,650,751 and issued 20,000,000 options to the lead manager as
part of the same capital raise. Refer to Note 18 for details.
In addition, at the date of this report, Kimberly Mining Limited, a Canadian subsidiary of the Company, had
the following warrants on issue that are exercisable at the date of this report as follows:
Details
Founder Warrants
Founder Warrants – Tranche 2
No of
Options
5,289,500
3,171,500
8,461,000
Grant Date
Date of Expiry Conversion Price $
29/08/2018
28/09/2018
29/08/2023
28/09/2023
0.4
0.4
Refer to Note 18 for details of options, performance rights and warrants cancelled/exercised during the year.
(b)
Insurance of officers
During the financial year, the Group paid a premium in respect of a contract insuring the Directors of the
Company, the Company Secretary, and any executive officers of the Company and of any related body
corporate against a liability incurred as such a Director, secretary or executive officer to the extent permitted
by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and
the amount of the premium.
(c) Agreement to indemnify officers
The Group has entered into agreements with the Directors to provide access to Group records and to
indemnify them. The indemnity relates to any liability as a result of being, or acting in their capacity as, an
officer of the Company and or its subsidiaries to the maximum extent permitted by law; and for legal costs
incurred in successfully defending civil or criminal proceedings. No liability has arisen under these indemnities
as at the date of this report.
23
Directors’ Report
Additional Information (continued)
(d) Proceedings on behalf of the Group
No person has applied to the court under Section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Group, or to 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 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.
(e) Non-audit services
The non-audit services provided by the auditor or any entity associated with the auditor for the year ended
30 June 2022 is $4,500 (2021: $2,000).
(f)
Corporate Governance
The Company and its Board are committed to achieving and demonstrating the highest standards of
corporate governance. The Group has reviewed its Corporate Governance practices against the Corporate
Governance Principles and Recommendations (4th edition) published by the ASX Corporate Governance
Council.
The 2022 Corporate Governance Statement was approved by the Board on 28 September 2022 and is
current at this time. A copy of the Company’s current Corporate Governance Statement and Plan adopted
during the year ended 30 June 2022 can be viewed at https://www.metalicity.com.au/corporate/corporate-
governance/ .
(g) Environmental Liabilities
The Group’s operations are subject to environmental regulation in respect of mineral tenements relating to
exploration activities on those tenements. No breaches of any environmental requirements were recorded
during the financial year.
Auditor’s independence declaration
The auditor’s independence declaration is included on page 25 of the annual report.
Rounding amounts
The Company is of a kind referred to in ASIC Corporations (Rounding in Financials/Directors’ Reports)
Instrument 2016/191, relating to the ‘rounding off’ of amounts in the Director’s Report. Amounts in the
Director’s Report have been rounded off to the nearest dollar.
This Directors’ report is signed in accordance with a resolution of Directors made pursuant to s.298 (2) of the
Corporations Act 2001.
On behalf of the Directors
Justin Barton
Managing Director, Perth, Western Australia
29 September 2022
24
AUDITOR'S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF METALICITY LIMITED AND ITS CONTROLLED ENTITIES
In relation to the independent audit for the year ended 30 June 2022, to the best of my knowledge and
belief there have been:
(i)
(ii)
No contraventions of the auditor independence requirements of the Corporations Act
2001; and
no contraventions of APES 110 Code of Ethics for Professional Accountants (including
Independence Standards).
This declaration is in respect of Metalicity Limited and the entities it controlled during the period.
PITCHER PARTNERS BA&A PTY LTD
J C PALMER
Executive Director
Perth, 29 September 2022
25
Pitcher Partners BA&A Pty LtdAn independent Western Australian Company ABN 76 601 361 095.Level 11, 12-14 The Esplanade, Perth WA 6000Registered Audit Company Number 467435.Liability limited by a scheme under Professional Standards Legislation.Adelaide Brisbane Melbourne Newcastle Perth SydneyPitcher Partners is an association of independent firms. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities.
METALICITY LIMITED
ABN 92 086 839 992
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
METALICITY LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Metalicity Limited “the Company” and its controlled
entities “the Group”, which comprises the consolidated statement of financial position as at 30
June 2022, the consolidated statement of comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies, and
the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the
Corporations Act 2001, including:
(a)
(b)
giving a true and fair view of the Group’s financial position as at 30 June 2022 and
of its financial performance for the year then ended; and
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.
26
Pitcher Partners BA&A Pty LtdAn independent Western Australian Company ABN 76 601 361 095.Level 11, 12-14 The Esplanade, Perth WA 6000Registered Audit Company Number 467435.Liability limited by a scheme under Professional Standards Legislation.Adelaide Brisbane Melbourne Newcastle Perth SydneyPitcher Partners is an association of independent firms. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities.
METALICITY LIMITED
ABN 92 086 839 992
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
METALICITY LIMITED
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial report of the current period. These matters were
addressed in the context of our audit of the financial report as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter
How our audit addressed the key audit matter
Carrying value of exploration and
evaluation assets
Refer to Note 2(g), 2(s), 11
in Note 11 of
the
As disclosed
financial report, as at 30 June 2022,
the Group held capitalised exploration
and evaluation assets of $6,426,763.
The carrying value of exploration and
evaluation expenditure is assessed
for impairment by the Group when
facts and circumstances indicate that
evaluation
the exploration and
expenditure may
its
recoverable amount.
exceed
indicators
The determination as to whether there
to require an
are any
exploration and evaluation asset to be
assessed for impairment, involves a
number of management judgments
including but not limited to:
• Whether
the Group has
tenure of the tenements;
• Whether
the Group has
sufficient funds to meet the
minimum
tenement
expenditure
requirements;
and
• Whether there is sufficient
information for a decision to
be made that the area of
interest is not commercially
viable.
Our procedures included, amongst others:
Obtaining an understanding of and evaluating the
design and implementation of the processes and
controls associated with
the capitalisation of
exploration and evaluation expenditure, and those
associated with the assessment of impairment
indicators.
Examining the Group’s right to explore in the
relevant area of interest, which included obtaining
and assessing supporting documentation. We also
considered the status of the exploration licences as
it related to tenure and whether the minimum
expenditure of the tenements have been met.
Considering and reviewing the Group’s intention to
carry out significant exploration and evaluation
activity in the relevant are of interest, including
assessing the Group’s cash-flow forecast models,
discussions with management and directors as to
the intentions and strategy of the Group.
and
Reviewing management’s
judgement as to whether the exploration activities
within each relevant area of interest have reached a
stage where the commercial viability of extracting
the resource could be determined.
evaluation
Assessing the adequacy of the disclosures included
within the financial report.
27
METALICITY LIMITED
ABN 92 086 839 992
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
METALICITY LIMITED
Share Based Payments
Refer to Note 2(n), 2(s) & 19
Share based payments represent
$435,402 of the Group’s expenditure,
the
split between $393,749
Consolidated statement of profit and
loss and comprehensive income and
$41,653 recognised directly in equity
as a cost of capital raising.
in
Share based payments must be
recorded at fair value of the service
provided, or in the absence of such, at
the fair value of the underlying equity
instrument granted.
taking
Australian
Under
Accounting
Standards, equity settled awards are
fair value on
the
measured at
measurement
into
date
consideration the probability of the
vesting conditions (if any) attached.
This amount is recognised as an
expense either immediately if there
are no vesting conditions, or over the
vesting period if there are vesting
conditions.
In calculating the fair value there are
a number of judgements management
must make, including but not limited
to:
• Estimating the likelihood that
the equity instruments will
vest;
• Estimating expected
future
share price volatility;
• Expected dividend yield; and
• Risk-free rate of interest.
the
Due to the significance to the Group’s
financial report and
level of
judgment involved in determining the
valuation of
share based
the
payments, we consider the Group’s
calculation of
the share based
payment expense to be a key audit
matter.
Our procedures included, amongst others:
Obtaining an understanding of the relevant controls
and evaluating the design and implementation of the
relevant controls associated with the preparation of
the valuation model used to assess the fair value of
share based payments, including those relating to
the
volatility of
appropriateness of the model used for valuation.
the underlying security and
and
evaluating
challenging
Critically
the
methodology and assumptions of management in
their preparation of valuation model, including
management’s assessment of likelihood of vesting,
agreeing inputs to internal and external sources of
information including but not limited to:
•Estimating the likelihood that the equity
instruments will vest;
•Estimating expected future share price
volatility;
•Expected dividend yield; and
•Risk-free rate of interest.
Assessing the Group’s accounting policy as set out
the
within Note 2(n)
requirements of AASB 2 Share-based Payment.
for compliance with
Assessing the adequacy of the disclosures included
in the financial report.
28
METALICITY LIMITED
ABN 92 086 839 992
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
METALICITY LIMITED
Other Information
The directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 30 June 2022, but does
not include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial report or our knowledge obtained in the audit or otherwise appears to be
materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact. We have nothing to report in this
regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that
gives a true and fair view in accordance with Australian Accounting Standards and the
Corporations Act 2001 and for such internal control as the directors determine is necessary to
enable the preparation of the financial report that gives a true and fair view and is free from
material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the
Group to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the directors either intend to
liquidate the Group or to cease operations, or has no realistic alternative but to do so.
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.
As part of an audit in accordance with the Australian Auditing Standards, we exercise
professional judgement and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether
due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Group’s internal control.
29
METALICITY LIMITED
ABN 92 086 839 992
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
METALICITY LIMITED
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Group’s
ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial report or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report,
including the disclosures, and whether the financial report represents the underlying
transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the Group to express an opinion on the financial
report. We are responsible for the direction, supervision and performance of the
Group audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where
applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of
most significance in the audit of the financial report of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
30
METALICITY LIMITED
ABN 92 086 839 992
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
METALICITY LIMITED
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended
30 June 2022. In our opinion, the Remuneration Report of Metalicity Limited, for the year ended
30 June 2022, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit
conducted in accordance with Australian Auditing Standards.
PITCHER PARTNERS BA&A PTY LTD
J C PALMER
Executive Director
Perth, 29 September 2022
31
Directors’ declaration
In the Directors’ opinion:
1.
the financial statements and notes set out on pages 38 to 75 are in accordance with the Corporations
Act 2001, including:
(a)
(b)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements; and
giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its
performance for the financial year ended on that date; and
there are reasonable grounds to believe that the Group will be able to pay its debts as and when they
become due and payable;
the financial statements and notes thereto are in accordance with International Financial Reporting
Standards issued by the International Accounting Standards Board; and
the audited remuneration disclosures set out on pages 16 to 22 of the Directors’ Report comply with
accounting standard AASB 124 Related Party Disclosures and the Corporations Regulations 2001.
2.
3.
4.
The Directors have been given the declarations required by Section 295(A) of the Corporations Act 2001
from the Chief Financial Officer and the Managing Director for the year ended 30 June 2022.
This declaration is made in accordance with a resolution of the Directors.
Justin Barton
Managing Director
Perth, Western Australia
29 September 2022
32
Consolidated statement of profit or loss and other comprehensive income
for the financial year ended 30 June 2022
Continuing operations
Other Income
Expenses
Loss from continuing operations before income tax
Income tax expense
Loss after income tax from continuing operations
Discontinued operations
Net loss from discontinued operations
Net Loss
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
Other comprehensive loss for the period, net of tax
Note
4
5
6
Consolidated Group
2021
2022
$
$
101,483
(5,194,672)
(5,093,189)
-
(5,093,189)
635,052
(2,222,591)
(1,587,539)
-
(1,587,539)
13
(114,725)
(1,583,356)
(5,207,914)
(3,170,895)
-
-
49,098
49,098
Total comprehensive loss for the year
(5,207,914)
(3,121,797)
Loss attributable to:
Owners of the parent
Non-controlling interest
Loss attributable to equity holders of the parent entity:
Loss from continuing operations, net of tax
Loss from discontinued operations, net of tax
Loss attributable to non-controlling interest relates to:
Loss from continuing operations, net of tax
Loss from discontinued operations, net of tax
Total comprehensive loss attributable to:
Owners of the parent
Non-controlling interest
Total comprehensive loss attributable to equity holders of
the parent entity:
Total comprehensive loss from continuing operations, net of tax
Total comprehensive loss from discontinued operations, net of
tax
(5,182,556)
(25,358)
(5,207,914)
(2,875,403)
(295,492)
(3,170,895)
(5,093,189)
(89,367)
(5,182,556)
(1,670,048)
(1,205,355)
(2,875,403)
-
(25,358)
(25,358)
-
(295,492)
(295,492)
(5,182,556)
(25,358)
(5,207,914)
(2,819,748)
(302,049)
(3,121,797)
(5,093,189)
(1,614,393)
(89,367)
(1,205,355)
(5,182,556)
(2,819,748)
33
Consolidated statement of profit or loss and other comprehensive income
for the financial year ended 30 June 2022
Consolidated Group
2021
2022
$
$
Note
Total comprehensive loss attributable to non-controlling
interest relates to:
Total comprehensive loss from continuing operations, net of tax
Total comprehensive loss from discontinued operations, net of
tax
Loss per share from continuing operations attributable to
the equity holders of the parent entity:
Basic loss per share (cents)
Diluted loss per share (cents)
Loss per share from discontinued operations attributable
to the equity holders of the parent entity:
Basic loss per share (cents)
Diluted loss per share (cents)
Loss per share attributable to the equity holders of the
parent entity:
Basic loss per share (cents)
Diluted loss per share (cents)
26(a)
26(a)
26(a)
26(a)
26(a)
26(a)
-
(25,358)
(25,358)
-
(302,049)
(302,049)
(0.21)
(0.21)
(0.01)
(0.01)
(0.22)
(0.22)
(0.10)
(0.10)
(0.09)
(0.09)
(0.19)
(0.19)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes.
34
Consolidated statement of Financial Position
for the financial year ended 30 June 2022
Current assets
Cash and cash equivalents
Trade and other receivables
Financial assets at fair value through profit & loss
Prepayments
Other financial assets
Total current assets
Non-current assets
Exploration and evaluation expenditure
Right of use asset
Plant and equipment
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Provisions
Lease liability
Total current liabilities
Non-current liabilities
Lease liability
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Shares to be issued
Reserves
Accumulated losses
Parent Entity Interest
Non Controlling Interest
Total equity
Note
7(a)
8
12
9
11
14
15
16
14
14
Consolidated Group
2021
2022
$
$
3,060,817
156,784
2,838,053
47,380
20,723
6,123,757
6,426,763
7,557
24,353
6,458,673
4,048,592
150,537
105,922
29,782
21,486
4,356,319
5,466,860
27,402
26,584
5,520,846
12,582,430
9,877,165
757,314
78,758
7,212
843,284
991,699
56,335
20,404
1,068,438
-
-
7,212
7,212
843,284
1,075,650
11,739,146
8,801,515
17(a)
19
63,725,507
8,578
5,920,745
(57,806,147)
56,023,942
-
5,485,343
(52,623,591)
27
11,848,683
(109,537)
8,885,694
(84,179)
11,739,146
8,801,515
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
35
Consolidated statement of changes in equity
for the financial year ended 30 June 2022
Issued capital
Share
Based
Payments
Reserve
$
$
Foreign
Currency
Reserve
$
Accumulated
losses
Non
Controlling
Interest
Total
$
$
$
Balance at 1 July 2021
56,023,942
5,485,343
(Loss) for the year
Other comprehensive loss
Total comprehensive loss for
the year
Shares to be issued
Issue of performance rights
Issue of broker options
Conversion of options
Issue of shares (Rights Issue)
Issue of shares (Nex takeover)
Issue costs
-
-
-
8,578
-
-
730,823
3,650,751
3,655,810
(335,819)
7,710,143
-
-
-
-
393,749
41,653
-
-
-
-
435,402
Balance at 30 June 2022
63,734,085
5,920,745
-
-
-
-
-
-
-
-
-
-
-
-
-
(52,623,591)
(84,179)
8,801,515
(5,182,556)
(25,358)
(5,207,914)
-
-
-
(5,182,556)
(25,358)
(5,207,914)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,578
393,749
41,653
730,823
3,650,751
3,655,810
(335,819)
8,145,545
(57,806,147)
(109,537)
11,739,146
Issued capital
$
Share
Based
Payments
Reserve
$
Foreign
Currency
Reserve
$
Accumulated
losses
Non
Controlling
Interest
$
$
Total
$
Balance at 1 July 2020
48,568,493
4,296,211
(55,655)
(49,748,188)
217,870
3,278,731
(Loss) for the year
Other comprehensive loss
Reclassification adjustment
transfer of foreign currency
translation reserve to P&L
Total comprehensive loss
the year
Issue of share capital
Conversion of options
Issue of performance rights
Issue of broker options
Issue of shares for tenements
Issue in lieu of salary
Issue costs
-
-
-
-
-
-
-
-
-
(26,856)
(2,875,403)
-
(295,492)
(6,557)
(3,170,895)
(33,413)
82,511
-
-
82,511
55,655
(2,875,403)
(302,049)
(3,121,797)
8,000,000
818,423
-
-
-
-
(1,362,974)
7,455,449
-
-
194,897
879,654
50,000
64,581
-
1,189,132
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,000,000
818,423
194,897
879,654
50,000
64,581
(1,362,974)
8,644,581
(52,623,591)
(84,179)
8,801,515
Balance at 30 June 2021
56,023,942
5,485,343
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
36
Consolidated statement of cash flows
for the financial year ended 30 June 2022
Consolidated Group
2021
$
2022
$
Note
Cash flows from operating activities
Payments to suppliers and employees
Payments for exploration and evaluation
R&D rebate
Government stimulus
Interest received
Other income
Interest expense
Net cash used in operating activities
Cash flows from investing activities
Payment for exploration and in relation to tenements
Payments for acquisition of tenements
Payments for plant and equipment
Payments for applications
Proceeds from sale of shares
Net cash used in investing activities
Cash flows from financing activities
Proceeds from shares issued
Proceeds from option conversions
Proceeds from option conversions to be issued
Principal amount paid on lease
Transaction costs
Net cash provided by financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at the beginning of the
financial year
Effect of exchange rates on cash holdings in foreign
currencies
Cash and cash equivalents at the end of the
financial year
7(b)
(3,909,100)
-
-
-
586
1,436
-
(3,907,078)
(1,150,425)
-
(5,854)
-
-
(1,156,279)
3,650,751
730,823
8,578
(20,404)
(294,166)
4,075,582
(2,490,680)
(108,220)
88,851
72,870
1,727
-
12,264
(2,423,188)
(3,268,837)
(152,558)
(29,251)
(1,862)
459,340
(2,993,168)
8,000,000
848,872
33,894
(12,074)
(513,769)
8,356,923
(987,775)
2,940,567
4,048,592
1,108,285
-
(260)
7(a)
3,060,817
4,048,592
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
37
Notes to Financial Statements for the financial year ended 30 June 2022
1. General information
Metalicity Limited (“the Company”) is a company limited by shares, incorporated and domiciled in
Australia. Its shares are listed on the Australian Securities Exchange. The Company and its wholly
owned subsidiaries, Metalicity Energy Pty Ltd and KYM Mining Pty Ltd and its approximate 80.3%
interest in Kimberly Mining Limited, Kimberly Mining Australia Pty Ltd, Kimberly Mining Holdings Pty Ltd
and Ridgecape Holdings Pty Ltd, are referred to as the ‘Group’.
The Financial Report of the Company for the year ended 30 June 2022 was authorised for issue in
accordance with a resolution of the Board of Directors on 28 September 2022.
2.
Significant accounting policies
The principal accounting policies adopted in the preparation of the Financial Report are set out below.
These policies have been consistently applied to the years presented, unless otherwise stated.
(a) Basis of preparation
This general purpose Financial Report has been prepared in accordance with Australian Accounting
Standards, other authoritative pronouncements of the Australian Accounting Standards Board (AASB),
Australian Accounting Interpretations and the Corporations Act 2001 as appropriate for for-profit
oriented entities.
Compliance with IFRS
The financial report also complies with International Financial Reporting Standards issued by the
International Accounting Standards Board.
Historical cost convention
These financial statements have been prepared under the historical cost convention, with exception to
the financial assets carried at fair value through profit and loss.
Critical accounting estimates
The preparation of financial statements in conformity with AIFRS requires the use of certain critical
accounting estimates. It also requires management to exercise its judgment in the process of applying
the Group’s accounting policies. Where these are areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are significant to the financial statements, these
are disclosed in Note 2(s).
Comparative figures
When required by accounting standards, comparative figures have been adjusted to conform to changes
in presentation for the current year. When the Group applies an accounting policy retrospectively, makes
a retrospective restatement or reclassifies items in its financial statements, a statement of financial
position as at the beginning of the earliest comparative period will be disclosed.
Going concern basis
The financial statements have been prepared on the going concern basis which contemplates the
continuity of normal business activity and the realisation of assets and the settlement of liabilities in the
normal course of business. For the year ended 30 June 2022 the Group incurred a loss after tax of
$5,207,914 (2021: $3,170,895) and a net cash outflow from operating and investing activities of
$5,063,357 (2021: $5,416,356). At 30 June 2022, the Group has working capital surplus of $5,280,473
(2021: working capital of $3,287,881) and current cash holding was $3,060,817 (2021: $4,048,592).
38
Notes to Financial Statements for the financial year ended 30 June 2022
2.
Significant accounting policies (continued)
(a) Basis of preparation (continued)
In the view of the Directors that the Group has sufficient funds to meet its commitments as and when
they fall due in the next 12 months. The Directors will continue to monitor case reserves and reduce
exploration and evaluation expenditure accordingly should the need arise.
In forming this view, the Directors have taken into consideration the following:
- The Group’s ability to reduce expenditure as and when required including, but not limited to,
reviewing all expenditure for deferral or elimination, until the Group has sufficient funds;
- Asset sales, including sale of tenure; and
- Ability of the Group to raise further funds through subsequent capital raisings as evidenced
during the current financial year.
On this basis no adjustments have been made to the financial report relating to the recoverability and
classification of the carrying amount of assets or the amount and classification of liabilities that might
be necessary should the Group not continue as a going concern.
Should the Group be unsuccessful with the initiatives detailed above then, there is an uncertainty as to
whether the Group will be able to continue as a going concern and may therefore be required to realise
assets and extinguish liabilities other than in the ordinary course of business with the amount realised
being different from those shown in the financial statements.
(b) Principles of Consolidation
The consolidated financial statements incorporate the assets and liabilities of subsidiaries of the
Company as at 30 June 2022 and the results of the subsidiaries for the year then ended.
Metalicity Energy Pty Ltd, KYM Mining Pty Ltd, Kimberly Mining Australia Pty Ltd, Kimberly Mining
Holdings Pty Ltd and Kimberly Mining Limited are the subsidiaries over which the Company has the
power to govern the financial and operating policies as the holder of all of the voting rights. The
subsidiaries are fully consolidated from the date of acquisition of the subsidiary. Consolidation will
cease from the date that control of the subsidiary ceases. Any and all intercompany transactions and
balances between the Company and the subsidiary are eliminated on consolidation.
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as “non-
controlling interest”. The Group initially recognises non-controlling interests that are present ownership
interest in subsidiaries and are entitled to a proportionate share of the subsidiary’s net assets on
liquidation at either fair value or the non-controlling interests’ proportionate share of the subsidiary’s net
assets. Subsequent to initial recognition, non-controlling interests are attributed their share of profit or
loss and each component of other comprehensive income. Non-controlling interests are shown
separately within the equity section of the statement of financial position and statement of
comprehensive income.
39
Notes to Financial Statements for the financial year ended 30 June 2022
2.
Significant accounting policies (continued)
(c) Business combinations
Acquisitions of businesses are accounted for using the acquisition method. The consideration
transferred in a business combination is measured at fair value which is calculated as the sum of the
acquisition-date fair values of assets less liabilities transferred to the Group, liabilities incurred by the
Group to the former owners of the acquiree and the equity instruments issued by the Group in exchange
for control of the acquiree. Acquisition-related costs are recognised in profit or loss as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at
their fair value, except that:
• deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements
are recognised and measured in accordance with AASB 112 ‘Income Taxes’ and AASB 119
‘Employee Benefits’ respectively;
•
liabilities or equity instruments related to share-based payment arrangements of the acquiree or
share-based payment arrangements of the Group entered into to replace share-based payment
arrangements of the acquiree are measured in accordance with AASB 2 ‘Share-based Payment’ at
the acquisition date; and
• Assets (or disposal groups) that are classified as held for sale in accordance with AASB 5
‘Noncurrent Assets Held for Sale and Discontinued Operations’ are measured in accordance with
that Standard.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-
controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interest in
the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and
the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable
assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount
of any non-controlling interests in the acquiree and the fair value of the acquirer's previously held interest
in the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase
gain.
(d) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable.
Sale of Goods
Revenue from sale of goods in the course of ordinary activities is brought to account when
delivered to the customer and selling prices are known or can be reasonably estimated.
Government Tax Credits and Rebates
Government tax credits and rebates, inclusive of research and development tax credit, are
recognised as income at their fair value where there is a reasonable assurance that the grant or
rebate will be received and the Group will comply with all attached conditions.
Royalties Income
Revenue from the sale of Royalties rights accounted during the year due to disposal of royalties to third
party.
40
Notes to Financial Statements for the financial year ended 30 June 2022
2.
Significant accounting policies (continued)
(d) Revenue recognition (continued)
Interest Income
Interest revenue is recognised on a time proportionate basis using the effective interest method.
Sale of tenement income
Revenue from the sale of tenements accounted during the year due to disposal of tenements to third
party.
(e) Cash and Cash Equivalents
For statement of cash flow presentation purposes, cash and cash equivalents includes cash on hand,
deposits held at call with banks, other short-term highly liquid investments with original maturities of
three months or less, and bank overdrafts.
(f) Income Tax
The income tax expense or revenue for the period is the tax payable on a current period’s taxable
income based on the income tax rate adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused tax losses.
Deferred tax is accounted for using the liability method in respect of temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial statements.
No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a
business combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is
realised or liability is settled. Deferred tax is credited in the income statement except where it relates to
items that may be credited directly to equity, in which case the deferred tax is adjusted directly against
equity. Deferred income 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 tax losses.
(g) Exploration Expenditure
Exploration and evaluation expenditure incurred on granted exploration licences is accumulated in
respect of each identifiable area of interest. These costs are carried forward where the rights to tenure
of the area of interest are current and to the extent that they are expected to be recouped through the
successful development of the area or where activities in the area have not yet reached a stage that
permits reasonable assessment of the existence of economically recoverable reserves. Accumulated
costs in relation to any abandoned area will be written off in full against profit in the year in which the
decision to abandon the area is made. When production commences, the accumulated costs for the
relevant area of interest will be amortised over the life of the area according to the rate of depletion of
the economically recoverable reserves. A regular review will be undertaken of each area of interest to
determine the appropriateness of continuing to carry forward costs in relation to that area of interest.
(h) Trade and other receivables
Trade and other receivables are initially recognised at fair value and subsequently measured at
amortised costs using the effective interest method, less provision for impairment. Trade and other
receivables are generally receivable within 30 days. Collectability of trade receivables is reviewed on
an ongoing basis. Amounts that are known to be uncollectible are written off by reducing the carrying
amount directly.
41
Notes to Financial Statements for the financial year ended 30 June 2022
2.
Significant accounting policies (continued)
(i) Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the
financial year which are unpaid. The amounts are unsecured and usually paid within 30 days of
recognition.
(j) 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 from the proceeds.
(k) Earnings per share
Basic earnings per share (“EPS”) is calculated by dividing the result attributable to equity holders of the
Company by the weighted number of shares outstanding during the year. Diluted EPS adjusts the
figures used in the calculation of basic EPS to take into account the after income tax effect of interest
and other financing costs associated with dilutive potential ordinary shares and the weighted average
number of shares assumed or known to have been issued in relation to dilutive potential ordinary shares.
(l) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount
of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is
recognised as part of the cost of acquisition of the asset or as part of an item of the expense.
Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows
are presented in the statement of cash flow on a gross basis, except for the GST component of investing
and financing activities, which are disclosed as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable
to, the taxation authority.
(m) Employee Benefits
Provision is made for the Group’s liability for employee benefits arising from services rendered by
employees to balance date. Employee benefits that are expected to be settled within one year have
been measured at the amounts expected to be paid when the liability is settled. Employee benefits
payable later than one year have been measured at the present value of the estimated future cash
outflows to be made for those benefits. Those cash flows are discounted using market yields on national
government bonds with terms to maturity that match the expected timing of cash flows. In calculating
the present value of future cash flows in respect of long service leave, the probability of long service
leave being taken is based on historical data.
(n) Share-based Payments
The Group operates equity-settled share-based payment share and option schemes to Directors,
employees and service providers. The fair value of the equity to which parties become entitled is
measured at grant date and recognised as an expense over the vesting period, with a corresponding
increase to an equity account. The fair value of shares is ascertained as the market bid price. The fair
value of options is ascertained using a Black and Scholes pricing model which incorporates all market
vesting conditions and the fair value of performance rights is ascertained using a Monte Carlo pricing
model where instruments issued have market conditions The number of shares and options expected
to vest is reviewed and adjusted at each reporting date such that the amount recognised for services
received as consideration for the equity instruments granted shall be based on the number of equity
instruments that eventually vest.
42
Notes to Financial Statements for the financial year ended 30 June 2022
2.
Significant accounting policies (continued)
(o) Financial Instruments
Recognition, initial measurement and derecognition
The Group’s financial assets include receivables, listed shares and receivables from its joint operation
partner, Nex Metals Exploration Ltd (“Nex”).
The listed shares held by the Group in Nex have been designated as fair value through profit and loss
on initial recognition.
Financial assets and financial liabilities are recognised when the Group becomes a party to the
contractual provisions of the financial instrument. Financial instruments (except for trade receivables)
are measured initially at fair value adjusted by transactions costs, except for those carried “at fair value
through profit or loss”, in which case transaction costs are expensed to profit or loss. Where available,
quoted prices in an active market are used to determine the fair value. In other circumstances, valuation
techniques are adopted. Subsequent measurement of financial assets and financial liabilities are
described below.
Trade receivables are initially measured at the transaction price if the receivables do not contain a
significant financing component in accordance with AASB 15.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset
expire, or when the financial asset and all substantial risks and rewards are transferred. A financial
liability is derecognised when it is extinguished, discharged, cancelled or expires.
Classification and subsequent measurement
Financial assets
Except for those trade receivables that do not contain a significant financing component and are
measured at the transaction price in accordance with AASB 15, all financial assets are initially measured
at fair value adjusted for transaction costs (where applicable).
For the purpose of subsequent measurement, financial assets other than those designated and effective
as hedging instruments, are classified into the following categories upon initial recognition:
amortised cost;
fair value through other comprehensive income (FVOCI); and
fair value through profit or loss (FVPL).
Classifications are determined by both:
The contractual cash flow characteristics of the financial assets; and
The entities business model for managing the financial asset.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are
not designated as FVPL):
43
Notes to Financial Statements for the financial year ended 30 June 2022
2.
Significant accounting policies (continued)
(o) Financial Instruments (continued)
they are held within a business model whose objective is to hold the financial assets and collect
its contractual cash flows; and
the contractual terms of the financial assets give rise to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method.
Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash
equivalents, trade and most other receivables fall into this category of financial instruments.
The Group measures debt instruments at fair value through OCI if both of the following conditions are
met:
The contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding; and
The financial asset is held within a business model with the objective of both holding to collect
contractual cash flows and selling the financial asset.
Financial assets at fair value through profit or loss (FVPL)
Financial assets at fair value through profit or loss include financial assets held for trading, financial
assets designated upon initial recognition at fair value through profit or loss, or financial assets
mandatorily required to be measured at fair value. Financial assets are classified as held for trading if
they are acquired for the purpose of selling or repurchasing in the near term.
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit
or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an
effective hedge, as appropriate.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction
costs unless the Group designated a financial liability at fair value through profit or loss.
Subsequently, financial liabilities are measured at amortised cost using the effective interest method.
All interest-related charges and, if applicable, gains and losses arising on changes in fair value are
recognised in profit or loss.
Impairment
For trade receivables, the Group applies the simplified approach permitted by AASB, which requires
expected lifetime losses to be recognised from initial recognition of the receivables.
Valuation techniques
In the absence of an active market for an identical asset or liability, the Group selects and uses one or
more valuation techniques to measure the fair value of the asset or liability. The Group selects a
valuation technique that is appropriate in the circumstances and for which sufficient data is available to
measure fair value. The availability of sufficient and relevant data primarily depends on the specific
characteristics of the asset or liability being measured. The valuation techniques selected by the Group
are consistent with one or more of the following valuation approaches:
44
Notes to Financial Statements for the financial year ended 30 June 2022
2.
Significant accounting policies (continued)
(o) Financial Instruments (continued)
• Market approach: valuation techniques that use prices and other relevant information generated
•
by market transactions for identical or similar assets or liabilities.
Income approach: valuation techniques that convert estimated future cash flows or income and
expenses into a single discounted present value.
• Cost approach: valuation techniques that reflect the current replacement cost of an asset at its
current service capacity.
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use
when pricing the asset or liability, including assumptions about risks. When selecting a valuation
technique, the Group gives priority to those techniques that maximise the use of observable inputs and
minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly
available information on actual transactions) and reflect the assumptions that buyers and sellers would
generally use when pricing the asset or liability are considered observable, whereas inputs for which
market data is not available and therefore are developed using the best information available about
such assumptions are considered unobservable.
Fair value hierarchy
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which
categorises fair value measurements into one of three possible levels based on the lowest level that an
input that is significant to the measurement can be categorised into as follows:
Level 1
Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities
that the entity can access at the measurement date.
Level 2
Measurements based on inputs other than quoted prices included in Level 1 that are observable for the
asset or liability, either directly or indirectly
Level 3
Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one
or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of
observable market data. If all significant inputs required to measure fair value are observable, the asset
or liability is included in Level 2. If one or more significant inputs are not based on observable market
data, the asset or liability is included in Level 3.
The Group would change the categorisation within the fair value hierarchy only in the following
circumstances:
(i) if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3)
or vice versa; or
(ii) if significant inputs that were previously unobservable (Level 3) became observable (Level 2)
or vice versa.
When a change in the categorisation occurs, the Group recognises transfers between levels of the fair
value hierarchy (i.e. transfers into and out of each level of the fair value hierarchy) on the date the event
or change in circumstances occurred.
45
Notes to Financial Statements for the financial year ended 30 June 2022
2.
Significant accounting policies (continued)
(p) Foreign Currency Transactions and Balances
The functional currency of each of the Group’s entities is measured using the currency of the primary
economic environment in which that entity operates. The consolidated financial statements are
presented in Australian dollars which is the parent entity’s functional currency. The functional currency
of Canadian subsidiary is Canadian Dollars. Other entities that are part of the Group have anAUD
functional currency.
Transaction and balances
Foreign currency transactions are translated into the functional currency using the exchange rates
prevailing at the date of the transaction. Foreign currency monetary items are translated at the year-end
exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange
rate at the date of the transaction. Non- monetary items measured at fair value are reported at the
exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in profit or loss, except
where deferred in equity when the exchange difference arises on monetary items receivable from or
payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore
forming part of the net investment in the foreign operation).
Exchange differences arising on the translation of non-monetary items are recognised directly in other
comprehensive income to the extent that the underlying gain or loss is recognised in other
comprehensive income, otherwise the exchange difference is recognised in the profit or loss.
Group companies
The financial results and position of foreign operations whose functional currency is different from the
Group’s presentation currency are translated as follows:
— Assets and liabilities are translated at exchange rates prevailing at the end of the reporting period;
— Income and expenses are translated at average exchange rates for the period; and
— Retained earnings are translated at the exchange rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign operations with functional currencies other than
the Australian dollar are recognised in other comprehensive income and included in the foreign currency
translation reserve in the statement of financial position. The cumulative amount of these differences is
reclassified into profit or loss in the period in which the operation is discontinued.
(q) Interests in joint arrangements
Joint arrangements represent the contractual sharing of control between parties in a business venture
where unanimous decisions about relevant activities are required.
Joint operations represent arrangements whereby joint operators maintain direct interests in each asset
and exposures to each liability of the arrangement. The Group’s interests in the assets, liabilities,
revenue and expenses of the joint operations are included in the respective line items of the financial
statements. Information about the joint arrangements is set out in Note 11.
(r) Impairment of Non-financial Assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for
impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable. An impairment
loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.
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 (cash generating units).
46
Notes to Financial Statements for the financial year ended 30 June 2022
2.
Significant accounting policies (continued)
(s) Critical Accounting Estimates and Judgements
The Directors evaluate estimates and judgements incorporated into the financial report based on
historical knowledge and best available current information. Estimates assumed a reasonable
expectation of future events and are based on current trends and economic data, obtained both
externally and within the Group.
Impairment
The Group assesses impairment at each reporting date by evaluating conditions specific to the Group
that may lead to an impairment of assets. Where an impairment trigger exists, the recoverable amount
of the asset is determined. Fair value less costs to sell (“FVLCTS”) and Value-in-use (“VIU”) calculations
performed in assessing recoverable amounts incorporate a number of key estimates. This includes as
assessment of the carrying values of capitalised exploration and evaluation costs.
The write-off and carrying forward of exploration acquisition costs is based on an assessment of an area
of interest’s viability and/or the existence of economically recoverable reserves.
Expected credit loss
Under the AASB 9 simplified approach, the group determines the allowance for credit losses for
receivables from contracts with customers and contract assets on the basis of the lifetime expected
credit losses of the financial asset. Judgement is required in determining the lifetime expected credit
loss, and the group uses information from a range of sources in determining the amount, including
publicly available financial information.
Share based payment transactions
The Group measures the cost of equity-settled transactions with employees (including the Directors) by
reference to the fair value of the equity instruments at the date at which they are granted. The fair value
is determined by an internal valuation using a Monte Carlo option pricing model, using the assumptions
detailed in Note 19.
Joint control
The Group’s accounting policy for Joint Arrangements is set out in Note 2(q). AASB 11 Joint
Arrangements requires an investor to have contractually agreed the sharing of control when making
decisions about the relevant activities (in other words requiring the unanimous consent of the parties
sharing control). However, what these activities are is a matter of judgement.
Deferred taxation
Deferred tax assets in respect of tax losses have not been brought to account as it is not considered
probable that future taxable profits will be available against which they could be utilised.
(t) Application of new and revised Accounting Standards
Application of new and revised Accounting Standards effective
In the year ended 30 June 2022, the Directors have reviewed all of the new and revised Standards and
Interpretations issued by the Australian Accounting Standards Board that are relevant to the Group and
effective for the current annual reporting period. It has been determined that there is no impact, material
or otherwise, of the new and revised Standards and Interpretations on the Group.
Application of new and revised Accounting Standards not yet effective
The Australian Accounting Standards Board (AASB) has issued a number of new and amended
Accounting Standards and Interpretations that have mandatory application dates for future reporting
periods, some of which are relevant to the Group. The Group has decided not to early adopt any of
these new and amended pronouncements. The Group’s assessment of the new and amended
pronouncements that are relevant to the Group but applicable in future reporting periods is set out
below.
47
Notes to Financial Statements for the financial year ended 30 June 2022
2.
Significant accounting policies (continued)
(t) Application of new and revised Accounting Standards not yet effective (continued)
AASB 2020-3 Amendments to Australian Standards – Annual Improvements 2018 – 2020 and Other
Amendments
AASB 2020-3 amends AASB 1 First-time Adoption of Australian Accounting Standards, AASB 3 Business
Combinations, AASB 9 Financial Instruments, AASB 116 Property, Plant and Equipment, AASB 137 Provisions,
Contingent Liabilities and Contingent Assets and AASB 141 Agriculture. The main amendments relate to:
(a) AASB 1 – simplifies the application by a subsidiary that becomes a first-time adopter after its parent in
relation to the measurement of cumulative translation differences;
(b) AASB 3 – updates references to the Conceptual Framework for Financial Reporting;
(c) AASB 9 – clarifies the fees an entity includes when assessing whether the terms of a new or modified
financial liability are substantially different from the terms of the original financial liability;
(d) AASB 116 – requires an entity to recognise the sales proceeds from selling items produced while
preparing PP&E for its intended use and the related cost in profit or loss, instead of deducting the amounts
received from the cost of the asset;
(e) AASB 137 – specifies the costs that an entity includes when assessing whether a contract will be loss
making; and
(f)
AASB 141 – removes the requirement to exclude cash flows from taxation when measuring fair value,
thereby aligning the fair value measurement requirements in AASB 141 with those in other Australian
Accounting Standards.
AASB 2020-3 mandatorily applies to annual reporting periods commencing on or after 1 January 2022 and will
be first applied by the Group in the financial year commencing 1 July 2022.
“The likely impact of this accounting standard on the financial statements of the Group has not been
determined”
AASB 2020-1: Amendments to Australian Accounting Standards – Classification of Liabilities as Current
or Non-Current, AASB 2020-6 Amendments to Australian Accounting Standards – Classification of
Liabilities as Current or Non-Current – Deferral of Effective Date
AASB 2020-1 amends AASB 101 Presentation of Financial Statements to clarify requirements for the
presentation of liabilities in the statement of financial position as current or non-current. It requires a liability to
be classified as current when entities do not have a substantive right to defer settlement at the end of the
reporting period.
AASB 2020-6 defers the mandatory effective date of amendments that were originally made in AASB 2020-1 so
that the amendments are required to be applied for annual reporting periods beginning on or after 1 January
2023 instead of 1 January 2022. They will first be applied by the Group in the financial year commencing 1 July
2023.
“The likely impact of this accounting standard on the financial statements of the Group has not been
determined”
48
Notes to Financial Statements for the financial year ended 30 June 2022
2.
Significant accounting policies (continued)
(t)
Application of new and revised Accounting Standards not yet effective (continued)
AASB 2021-2: Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and
Definition of Accounting Estimates
AASB 2020-1 amends AASB 7 Financial Instruments: Disclosures, AASB 101 Presentation of Financial
Statements, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, AASB 134 Interim
Financial Reporting and AASB Practice Statement 2 Making Materiality Judgements. The main amendments
relate to:
(a) AASB 7 – clarifies that information about measurement bases for financial instruments is expected to be
material to an entity’s financial statements;
(b) AASB 101 – requires entities to disclose their material accounting policy information rather than their
significant accounting policies;
(c) AASB 108 – clarifies how entities should distinguish changes in accounting policies and changes in
accounting estimates;
(d) AASB 134 – to identify material accounting policy information as a component of a complete set of financial
statements; and
(e) AASB Practice Statement 2 – to provide guidance on how to apply the concept of materiality to accounting
policy disclosures.
AASB 2021-2 mandatorily applies to annual reporting periods commencing on or after 1 January 2023 and will
be first applied by the Group in the financial year commencing 1 July 2023.
“The likely impact of this accounting standard on the financial statements of the Group has not been
determined”
Other standards not yet applicable
There are no other standards that are not yet effective and that would be expected to have a material
impact on the entity in the current or future reporting periods and on foreseeable future transactions.
49
Notes to Financial Statements for the financial year ended 30 June 2022
3.
Segment information
Identification of reportable segments
The Group has identified its operating segments based on the internal reports that are reviewed and
used by the Board of Directors (chief operating decision makers) in assessing performance and
determining the allocation of resources.
The Group has two geographic segment being Australia and Canada and operates in one industry being
the exploration of minerals. The Canada operation has been discontinued and is reflected in Note 13.
Segment result
Segment revenue
Australia
Segment expenses
Australia
Income tax
(Loss) after tax
Segment assets and
liabilities
Australia
Australia
Consolidated
30 June
2022
$
30 June
2021
$
101,483
101,483
635,052
635,052
(5,194,672)
(5,194,672)
(2,222,591)
(2,222,591)
-
(5,093,189)
-
(1,587,539)
Consolidated
Consolidated
Non-current assets
Non-current liabilities
30 June
2022
$
30 June
2021
$
6,458,673
6,458,673
5,520,846
5,520,846
30 June
2022
$
30 June
2021
$
-
-
7,212
7,212
Total assets
Total liabilities
30 June
2022
$
30 June
2021
$
12,560,325
12,560,325
9,856,082
9,856,082
30 June
2022
$
30 June
2021
$
843,284
843,284
1,075,650
1,075,650
50
Notes to Financial Statements for the financial year ended 30 June 2022
4.
Other Income
An analysis of the Group’s other income for the year is as follows:
Profit from sale of shares
R&D Rebate
Government stimulus
Joint arrangement management fee
Finance income
Other
5. Expenses
Accounting & audit
ASX
Company secretarial fees
Consulting fees
Depreciation
Employee benefits
Exploration impaired
Exploration written off
Other receivables written off
Expected credit loss1
Exploration expenses (excl those capitalised)
Investor relations
Legal fees
Business development expenses
Rent & office expenses
Share based payments
Share registry fees
Superannuation expenses
Fair value movement on financial instruments at fair
value through profit and loss
Other
Total expenses
1 Refer to Note 9.
Consolidated Group
2022
$
-
-
-
99,461
586
1,436
101,483
2021
$
459,340
88,851
72,870
12,264
1,727
-
635,051
Consolidated Group
2022
$
100,506
85,505
86,690
403,504
27,930
528,314
116,030
8,391
21,172
1,279,794
87,157
49,210
600,731
66,908
22,760
393,749
192,034
56,171
923,679
144,437
5,194,672
2021
$
128,227
100,453
99,356
80,000
16,082
574,511
14,901
-
-
-
-
42,620
323,467
119,069
13,618
194,897
121,001
58,804
205,052
173,153
2,222,591
51
Notes to Financial Statements for the financial year ended 30 June 2022
6.
Income tax expense
a) Numerical reconciliation of income tax expense to
prima facie tax payable
Loss from continuing operations before income tax expense
Loss from discontinued operations before income tax expense
Tax at the Australian tax rate of 25% (2021: 26%)
Tax effect of amounts which are not deductible in calculating
taxable income
Tax effect of amounts which are non (taxable) in calculating
taxable income
Tax losses not recognised
Prior year losses not recognised, now recognised
Consolidated Group
2021
$
2022
$
(5,093,189)
(114,725)
(5,207,914)
(1,587,539)
(1,583,356)
(3,170,895)
(1,301,979)
(824,433)
99,054
51,086
-
1,202,925
(29,738)
803,084
-
Income tax expense
-
-
b) Deferred tax assets/liabilities
Unused tax losses for which no deferred tax asset has been
recognised
Temporary Differences
Potential tax benefit at 25% (2021: 26%)
Consolidated Group
2021
$
2022
$
21,258,474
17,962,328
(2,853,770)
4,601,176
(4,705,141)
3,446,869
Tax losses and other temporary differences have not been recognised as a deferred tax asset as
recoupment is dependent on, amongst other matters, sufficient future assessable income being earned.
That is not considered certain in the foreseeable future and accordingly there is uncertainty that the
losses can be utilised. There is a net deferred tax liability of approximately $713,442 relating to
capitalised exploration costs and other minor temporary differences. These are offset with the deferred
tax assets that have been recognised to the extent of the deferred tax liabilities.
7. Cash and cash equivalents
(a) Reconciliation of cash and cash equivalents
For the purposes of the statement of cash flows, cash and cash equivalents includes cash on hand and
in banks and investments in money market instruments. Cash and cash equivalents at the end of the
financial year as shown in the consolidated statement of cash flows are reconciled to the related items
in the consolidated statement of financial position as follows:
Cash and cash equivalents
Consolidated Group
2021
2022
$
$
3,060,817
4,048,592
52
Notes to Financial Statements for the financial year ended 30 June 2022
7. Cash and cash equivalents (continued)
(b) Reconciliation of loss for the year to net cash flows from operating activities
Loss for the year
Share based payments
Foreign exchange loss/(gain)
Depreciation
Disposal of shares
Exploration impaired
Exploration written off
Expected credit losses
Receivables written-off
Fair value movement on financial instruments
through profit and loss
Impairment of asset held for sale
(Increase) in trade and other receivables and other asset
(Decrease) in trade and other payables
Increase in provisions
Exchange differences on translation of foreign operations
Net cash (used in) operating activities
(c) Non-cash investing and financing activities
(5,207,914)
393,749
(1,305)
27,930
-
116,030
8,391
1,279,794
21,172
(3,170,895)
194,897
(139,075)
16,082
(459,340)
14,901
-
-
923,679
205,052
-
(1,257,947)
(233,080)
22,423
-
(3,907,078)
1,392,626
(80,954)
(525,019)
18,036
110,501
(2,423,188)
During the year, 20,000,000 advisor options were granted to Canaccord for assisting with the June 2022
Rights issue and 243,383,617 options were issued to shareholders as part of the same rights issue,
both on the same conditions (expiring 1 June 2024 and exercisable at $0.01).
In the prior year, 2,615,837 shares amounting to $50,000 was issued as payment for tenement E40/350
and E40/357 for exercise of Mulga Plum option.
8.
Trade and other receivables
GST Receivable
Other
None of these receivables are past due or impaired.
9. Other financial assets
Nex receivable(1)
Rental security bond
Consolidated Group
2021
2022
$
$
129,365
156,784
21,172
-
150,537
156,784
Consolidated Group
2022
$
2021
$
-
20,723
20,723
-
21,486
21,486
53
Notes to Financial Statements for the financial year ended 30 June 2022
9. Other financial assets (continued)
(1)The Nex receivable comprises $1,279,794 being 49% of joint operation billings raised to Nex under
the Joint Venture Agreement (“JV Agreement”) less an expected credit loss allowance for the full
amount, following a prudent assessment by the Board as to the recoverability of the amount based on
publicly available information regarding Nex’s financial position. Refer to Note 2(s) critical accounting
estimates and judgements.
Nex receivable
Less: Expected credit loss
10. Current Assets Held for Sale
Assets Held for sale
Balance at beginning of the period
Impairment of Assets Held for Sale
Sale of tenements
Foreign exchange difference
Balance of assets held for sale
Liabilities Related to Non-Current Assets Held for Sale
Balance at beginning of the period
Translation difference
Settlement of liability
Balance at period end
Consolidated Group
2022
$
2021
$
1,279,794
(1,279,794)
-
-
-
-
Consolidated Group
2021
2022
$
$
-
-
-
-
-
1,420,616
(1,399,418)
-
(21,198)
-
Consolidated Group
2021
2022
$
$
-
-
-
-
-
-
-
-
During the prior year ended 30 June 2021, the Directors decided to impair the carrying value of the
Admiral Bay Project to nil, following an extensive process to divest the project which resulted in no
offers.
54
Notes to Financial Statements for the financial year ended 30 June 2022
11. Exploration and evaluation expenditure
Exploration at cost at the beginning of the period
Acquisition costs
Exploration and evaluation expenditure(2)
Impairment of exploration expenditure
Written off of exploration expenditure
Exploration and evaluation expenditure -
Interest in joint operation (1)
Transfer to financial assets upon billing of
cash calls
Closing balance
Consolidated Group
2021
2022
$
$
5,466,860
-
116,030
(116,030)
(8,391)
1,160,907
202,558
4,049,498
(14,901)
-
1,034,395
68,798
(66,101)
6,426,763
-
5,466,860
Total expenditure incurred and carried forward in respect of specific projects
- Kookynie/Yundamindra Area of interests
A
t
- Other
Total carried forward exploration expenditure
6,426,763
-
6,426,763
5,466,860
-
5,466,860
(1)In the prior year, on 6 May 2019, the Company announced that it had entered into a farm-in agreement
with Nex for the Kookynie and Yundamindra projects in the Eastern Goldfields, Western Australia. On
20 May 2021, MCT announced that it had met the required $5 million spend to achieve a 51% earn-in
on the Kookynie and Yundamindra tenements. The Joint arrangement is classified as a joint operation.
(2)In prior year, included in expenditure incurred during the period is an amount of $66,101, representing
unbilled cash calls to Nex.
The Group’s share of exploration and evaluation in its joint operation is $1,103,193 as at 30 June 2022
(2021: $68,798). The recoverability of the carrying amount of the exploration development expenditure
is dependent on successful development and commercial exploitation or, alternatively, sale of the
respective areas of interest.
12. Financial Assets at Fair Value through Profit & Loss
Nex Shares
Consolidated Group
2022
$
2,838,053
2,838,053
2021
$
105,922
105,922
The Group held 91,550,106 shares in Nex at 30 June 2022. This financial asset is carried at fair value
through profit and loss for year ended 30 June 2022 (30 June 2021: 4,073,941 shares in Nex).
55
Notes to Financial Statements for the financial year ended 30 June 2022
12. Financial Assets at Fair Value through Profit & Loss (continued)
Opening balance – at fair value
Additions – at fair value
Fair value adjustment
Closing balance – at fair value
105,922
3,655,810
(923,679)
2,838,053
Consolidated Group
2022
$
2021
$
260,974
50,000
(205,052)
105,922
The revaluation of the shares to the above value resulted in a $923,679 loss that flowed through the
P&L as a “Fair Value movement on financial instruments at fair value through profit and loss”.
13. Discontinued operations
Kimberley Mining Limited – Admiral Bay Project
Transfer of foreign currency translation reserve to profit and
loss (discontinued operation)
Consolidated Group
2021
2022
$
$
114,725
1,500,845
-
114,725
82,511
1,583,356
During the prior year ended 30 June 2021, following an extensive process to divest the Admiral Bay
project, which is currently held by the ~80.3% owned subsidiary, Kimberley Mining Limited, the Board
elected to put the Admiral Bay project on care and maintenance and impair the carrying value of the
Project to nil.
(i) Financial performance information
Exploration and evaluation expenses
Impairment of exploration and expenditure assets
Gain/(Loss) on transfer of foreign currency translation reserve
Others
Income tax expense
Loss after income tax of discontinued operations
(ii) Cash flow information
Net cash used in operating activities
Net cash used in investing activities
Net cash used in financing activities
Net cash outflow
Consolidated Group
2021
2022
$
$
-
(116,030)
1,305
-
(114,725)
-
(114,725)
(105,699)
(1,392,626)
(82,511)
(2,520)
(1,583,356)
-
(1,583,356)
Consolidated Group
2021
2022
$
$
-
(116,030)
-
(116,030)
(106,790)
-
-
(106,790)
56
Notes to Financial Statements for the financial year ended 30 June 2022
13. Discontinued operations (continued)
(iii) Carrying amount of assets and liabilities
Other receivables
Asset classified as held for sale
Liabilities held for sale*
Net liabilities attributable to discontinued operations
*Intercompany payables that are eliminated on consolidation.
14. Leases
(a) Amounts recognised in the balance sheet
The balance sheet shows the following amounts relating to leases:
Right of use asset
Building – at initial recognition
Less: Accumulated depreciation
Lease liability
Current
Non-current
Consolidated Group
2021
2022
$
$
21,083
22,105
22,105
21,083
(448,642)
(578,462)
(427,559)
(556,357)
Consolidated Group
2021
2022
$
$
39,689
(32,132)
7,557
7,212
-
7,212
39,689
(12,287)
27,402
20,404
7,212
27,616
(b) Amounts recognised in the statement of profit and loss
The statement of profit or loss shows the following amounts relating to leases:
Depreciation charge
Interest expense
Consolidated Group
2021
2022
$
$
19,845
650
12,287
760
(c) The Group’s leasing activities and how these are accounted for
The Group leases an office premises which has a 2 year fixed term commencing on 16 November
2020, with an option to extend. Contracts contain both lease and non-lease components. The Group
allocates the consideration in the contract to the lease and non-lease components based on their
relative stand-alone prices. Lease terms are negotiated on an individual basis and contain a wide
range of different terms and conditions. The lease agreements do not impose any covenants other
than the security interests in the leased assets that are held by the lessor. Lease assets may not
be used as security for borrowing purposes.
57
Notes to Financial Statements for the financial year ended 30 June 2022
15. Trade and other payables
Trade payables and accruals
Superannuation
PAYG payable
16. Provisions
Employee benefits – annual leave
17.
Issued capital
(a)
Issued share capital
3,458,393,356 (2021: 2,124,777,033) fully paid ordinary shares
2,144,500 Shares to be issued
(b) Movement in ordinary share capital
Date
Details
01/07/2021
Various
Various
01/06/2022
Opening balance
Option exercise at $0.004
Nex takeover (87,476,177 Nex shares)
Rights Issue at $0.005
Share issue costs
30/06/2022
Balance at the end of the year
Consolidated Group
2021
2022
$
$
969,031
690,857
-
3,038
63,419
22,668
991,699
757,314
Consolidated Group
2021
2022
$
$
56,335
78,758
2022
$
63,725,507
8,578
63,734,085
2021
$
56,023,942
-
56,023,942
Number of
shares
2,124,777,033
182,705,631
420,760,411
730,150,281
-
3,458,393,356
$
56,023,942
730,823
3,655,810
3,650,751
(335,819)
63,725,507
58
Notes to Financial Statements for the financial year ended 30 June 2022
17.
Issued capital (continued)
Date
Details
01/07/2020
15/07/2020
15/07/2020
15/07/2020
Various
Various
14/08/2020
11/09/2020
03/12/2020
22/06/2021
30/06/2021
Opening balance
Option exercise at $0.015
Option exercise at $0.025
Option exercise at $0.02
Option exercise at $0.004
Vesting and exercise of performance rights (note 18)
Shares issued to Directors in lieu of salaries at $0.0027
per share
Share placement at $0.0024
Shares issued as part of consideration for tenement
acquisition at $0.019 per share
Share placement at $0.01
Share issue costs
Balance at the end of the year
Number of
shares
1,397,793,904
4,888,439
2,500,000
471,429
168,291,851
16,000,000
23,882,240
208,333,333
2,615,837
300,000,000
-
2,124,777,033
$
48,568,493
73,327
62,500
9,428
673,168
-
-
5,000,000
-
3,000,000
(1,362,974)
56,023,942
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. On a poll every holder of ordinary shares present
at a meeting in person or by proxy is entitled to one vote.
18.
Options, Performance Rights and Warrants
(a) (i) Options
30 June 2022
At year end 30 June 2022, the Company had 370,093,084 options over ordinary shares under issue (30
June 2021: 373,665,570). These options are exercisable as follows:
Details
Other Options
No of Options
25,709,467
25,000,000
35,000,000
21,000,000
263,383,617(1)
370,093,084(2)
Grant Date
21/02/2018
13/08/2020
12/10/2020
21/06/2021
01/06/2022
Date of Expiry Conversion Price $
14/02/2023
14/08/2022
13/10/2023
22/06/2024
01/06/2024
0.08
0.003
0.03
0.015
0.01
59
Notes to Financial Statements for the financial year ended 30 June 2022
18.
Options, Performance Rights and Warrants (continued)
(a) (i) Options (continued)
(1)Included in this amount are 243,383,617 free attaching options (one option for every three shares) as part of a capital raise for
$3,650,751. No fair value attributable to these options as these were listed options issued during the year as free attaching to
the June 2022 Rights Issue and available to all shareholders (no implicit service).
(2)Represents number of instruments vested and exercisable as at 30 June 2022.
30 June 2021
Details
Management Incentive Options
Other Options
No of
Options
2,500,000
2,500,000
2,500,000
2,000,000
2,000,000
25,709,467
10,785,715
25,000,000
35,000,000
21,000,000
244,670,388
373,665,570
Grant Date
Date of Expiry Conversion Price $
27/07/2018
27/07/2018
27/07/2018
10/04/2019
10/04/2019
21/02/2018
10/06/2019
13/08/2020
12/10/2020
21/06/2021
22/05/2020
26/08/2021
26/08/2021
26/08/2021
14/01/2022
14/01/2022
14/02/2023
31/05/2022
14/08/2022
13/10/2023
22/06/2024
22/05/2022
0.06
0.08
0.10
0.025
0.035
0.08
0.02
0.003
0.03
0.015
0.004
(a) (ii) Free attaching options
Included in the tables in 18(a)(i) are the following free attaching options. These are not recognised in
the share based payment reserve as they do not constitute a share based payment under accounting
standards.
30 June 2022
Free attaching options
Number
Grant
Date
Issued 01/06/2022
243,383,617 01/06/2022
Expiry
Date
01/06/2024
Exercise
Price
Fair Value at
Grant Date
$0.01 $0.00
30 June 2021
Free attaching options
Number
Grant
Date
Issued 20/08/2020
177,500,000 13/08/2020
Expiry
Date
22/05/2022
Exercise
Price
Fair Value at
Grant Date
$0.004 $0.00
Movements in options during the financial year are as follows:
Balance at beginning of the year
Granted during the year (note 19)
Exercised during the year
Forfeited/expired/cancelled during the year
Balance at the end of the year
2022
No.
373,665,570
263,383,617
(182,705,631)
(84,250,472)
370,093,084
2021
No.
347,689,002
258,500,000
(176,151,719)
(56,371,713)
373,665,570
60
Notes to Financial Statements for the financial year ended 30 June 2022
18.
Options, Performance Rights and Warrants (continued)
(b) Performance Rights
At year ended 30 June 2022, the Company had 96,084,110 performance rights over ordinary shares
under issue (30 June 2021: 82,084,110). Each represent a conditional right for the holder to acquire
one fully paid ordinary share in the Company, and are subject to meeting specified vesting conditions.
These performance rights are exercisable as follows:
30 June 2022
Details
Performance Rights
Sub-total - on issue(9)
Performance Rights – to
be issued
Sub-total – to be issued
Total
30 June 2021
Details
Performance Rights
No of Options
15,650,000(1)
29,679,144(2)
36,754,966(3)
82,084,110
2,000,000(4)
2,000,000(5)
5,000,000(6)(8)
5,000,000(7)(8)
14,000,000
96,084,110
Grant Date
25/11/2019
26/11/2020
26/11/2020
Date of Expiry Hurdle Price $
30/01/2023
18/12/2022
18/12/2022
0.05
0.04
0.06
20/09/2021
11/04/2025
20/09/2021
30/06/2022
30/06/2022
11/04/2025
30/06/2025
30/06/2025
0.0135
0.0180
0.015
0.025
No of Options
15,650,000(1)
29,679,144(2)
36,754,966(3)
82,084,110
Grant Date
25/11/2019
26/11/2020
26/11/2020
Date of Expiry Hurdle Price $
30/01/2023
26/11/2022
26/11/2022
0.05
0.04
0.06
(1) Performance rights issued to employees with a vesting hurdle of 10 day volume weighted average price (“VWAP”) of Shares of
at least $0.05.
(2)Tranche A performance rights will vest subject to the Company achieving a 20 day volume weighted average price (VWAP) of
Shares of at least $0.04.
(3)Tranche B performance rights will vest subject to the Company achieving a 20 day volume weighted average price (VWAP) of
Shares of at least $0.06.
(4)2 million performance rights issued to an employee will vest when the share price of the Company’s ordinary shares listed on
the ASX have exceeded 150% of the share price at date of issue.
(5)2 million performance rights issued to an employee will vest when the share price of the Company’s ordinary shares listed on
the ASX have exceeded 250% of the share price at date of issue.
(6)5 million performance rights issued to a KMP will vest on 1 July 2022 or such later date, when the share price of the Company’s
ordinary shares listed on the ASX have exceeded 150% of the closing price on the first business day of 2022, for 5 consecutive
business days.
(7)5 million performance rights issued to a KMP will vest on 1 July 2022 or such later date, when the share price of the Company’s
ordinary shares listed on the ASX have exceeded 250% of the closing price on the first business day of 2022, for 5 consecutive
business days.
(8)These instruments have been accrued as at 30 June 2022 as the vesting conditions have been met, with the instruments to be
issued following shareholder approval at the AGM.
(9)Represents number of instruments vested and exercisable as at 30 June 2022.
61
Notes to Financial Statements for the financial year ended 30 June 2022
18.
Options, Performance Rights and Warrants (continued)
(b) Performance Rights (continued)
Movements in options during the financial year are as follows:
Balance at beginning of the year
Prior year adjustment
Granted during the year
Exercised during the year
Forfeited/expired/cancelled during the year
Balance at the end of the year
(c) Kimberly Mining Limited Warrants
2022
No.
82,084,110
-
14,000,000
-
-
96,084,110
2021
No.
32,025,000
25,000
66,434,110
(16,000,000)
(400,000)
82,084,110
As at 30 June 2022, there were 31,128,738 in issued common shares in Kimberly Mining Limited and
8,461,000 under warrants (30 June 2021: 31,128,738 common shares and 8,461,000 warrants). These
warrants are exercisable/convertible as follows:
Details
Special Warrants
Special Warrants – Tranche 2
No of Warrants Date of Expiry
5,289,500
3,171,500
8,461,000
23/08/2023
23/09/2023
Conversion Price $
0.4
0.4
Special warrants and broker warrants are convertible to 1 ordinary share in Kimberly Mining Limited
upon exercise.
Balance at beginning of the period
Granted during the period
Exercised during the period
Forfeited/expired during the period
Balance at the end of the period
(d) Capital Management
30 June
2022
No.
8,461,000
-
-
-
8,461,000
30 June
2021
No.
8,734,370
-
-
(273,370)
8,461,000
Management controls the capital of the Group in order to maintain a sustainable debt to equity ratio,
generate long-term shareholder value and ensure that the Group can fund its operations and continue
as a going concern. The Group’s debt and capital include ordinary share capital and financial liabilities,
supported by financial assets.
The Group is not subject to any externally imposed capital requirements. Management effectively
manages the Group’s capital by assessing the Group’s 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.
62
Notes to Financial Statements for the financial year ended 30 June 2022
19.
Reserves
Shared based payment reserve
Foreign currency translation reserve
Total
Movement of Shared based payment
reserve
Balance at 1 July 2020
Issue of shares for tenements
Issue of shares in lieu of salary^
Issue of options
Issue of performance rights
Balance at 30 June 2021
Performance rights and options issued in
the current year (note 19b)
Performance rights and options issued in
the prior year
Balance at 30 June 2022
Consolidated
2022
$
5,920,745
-
5,920,745
2021
$
5,485,343
-
5,485,343
30 June
$
4,296,211
50,000
64,581
879,654
194,897
5,485,343
87,893
347,509
5,920,745
^23,882,240 shares were issued to Directors in lieu of salaries at $0.0027 per share, total amounting to
$64,581. Refer to remuneration report for details.
The nature and purpose of the share based payment reserve is to record the instruments over unissued
ordinary shares used to settle transactions.
Movement of Foreign currency
translation reserve
Balance at 1 July 2020
Foreign currency translation reserve
movement during the period
Transfer of foreign currency translation
reserve to profit and loss (discontinued
operation)
Balance at 30 June 2021/30 June 2022
30 June
$
(55,655)
(26,856)
82,511
-
The nature and purpose of the foreign currency translation reserve is to record movements in foreign
exchange rates against the Group’s denominated and functional currency balances and the presentation
currency. Upon the decision to transfer the previously recognised Canadian segment to Discontinued
Operations and to write down the asset group to nil, all foreign exchange movements are transferred to
the profit and loss at balance date.
63
Notes to Financial Statements for the financial year ended 30 June 2022
19.
Reserves (continued)
(a) Share based payment reserve
The following new options, performance rights and warrants were recognised in the Share based
payment reserve during the current and prior reporting periods:
30 June 2022
At 30 June 2022, the Company recognised an expense of $87,893, comprising $46,240 for 14,000,000
unissued performance rights provided to employees for which service vesting conditions have already
been met and $41,653 for 20,000,000 options issued to the lead manager in connection with the June
2022 Rights Issue.
Options/Performance
Rights
Number
Grant
Date
Expiry
Date
Exercise
Price
Performance rights
Not issued yet
Not issued yet
Not issued yet
Not issued yet
2,000,000
2,000,000
5,000,000
5,000,000
14,000,000
20/09/2021
20/09/2021
30/06/2022
30/06/2022
11/04/2025
11/04/2025
30/06/2025
30/06/2025
0.0135
0.018
0.015
0.025
Fair Value
at Grant
Date
$0.0084
$0.0079
$0.0016
$0.0011
Options
Number
Grant
Date
Issued 01/06/2022
20,000,000 01/06/2022
Expiry
Date
01/06/2024
Exercise
Price
0.01
Fair Value at
Grant Date
$0.00208
30 June 2021
In relation to instruments issued in the prior year, at 30 June 2022, the Company recognised an expense
of $347,509, comprising the below options and performance rights expensed over respective vesting
periods.
Options/Performance
Rights
Number
Grant
Date
Expiry
Date
Exercise
Price
Options
Issued 17/08/2020
Issued 13/10/2020
Issued 22/06/2021
Performance rights
Issued 18/12/2020
Issued 18/12/2020
25,000,000
35,000,000
21,000,000
81,000,000
29,679,144
36,754,966
66,434,110
13/08/2020
14/08/2022
15/09/2020
22/06/2021
13/09/2023
21/06/2024
0.003
0.003
0.015
26/11/2020
26/11/2020
18/12/2022
18/12/2022
0.00
0.00
$0.0108
$0.0092
Fair Value
at Grant
Date
$0.0065
$0.0206
$0.00756
The terms of the above options and performance rights for the current and prior years are set out in
note 18(a) and 18(b) respectively.
64
Notes to Financial Statements for the financial year ended 30 June 2022
19.
(b)
(i)
Reserves (continued)
Types of share-based payment plans
Performance rights
The following tables list the inputs to the Monte Carlo model used to value the performance rights issued
during the current and prior financial year to employees. In all cases volatility was determined by
reference to the Company’s historical share price data over a period consistent with the useful life of
the instrument:
There were $393,749 share based payments relating to performance rights in 2022 (2021: $194,897).
30 June 2022
No of Performance Rights
2,000,000(1)
2,000,000(1)
5,000,000(2)
5,000,000(2)
Grant date
Share price
Exercise price
Risk-free interest rate
Expiry date
Volatility
Fair value at grant date (cents)
Useful life
20/09/21
$0.009
$0.014
0.17%
11/04/25
90%
0.0084
1,095 days
20/09/21
$0.009
$0.018
0.17%
11/04/25
90%
0.0079
1,095 days
30/06/22
$0.003
$0.015
3.205%
30/06/25
90%
0.0016
1,095 days
30/06/22
$0.003
$0.025
3.205%
30/06/25
90%
0.0011
1,095 days
(1)Performance rights were granted to an employee during the period. These remain unissued as at balance date. The
performance rights can be exercised from 11 April 2022 when the share price of the Company’s ordinary shares have exceeded
150% (initial 2 million) and 250% (final 2 million) of the closing price on the first business day of 2022.
(2)Performance rights were granted to a KMP, Justin Barton, during the period. These remain unissued at balance date. The
performance rights vested after the first 6 months of his role as managing director (01/01/22-30/06/22). The performance rights
can be exercised from 1 July 2022 when the share price of the Company’s ordinary shares have exceeded 150% (initial 5 million)
and 250% (final 5 million) of the closing price on the first business day of 2022, for 5 consecutive days.
30 June 2021
No of Performance Rights
29,679,144
36,754,966
Grant date
Share price
Exercise price
Risk-free interest rate
Vesting Conditions and Period
Expiry date
Volatility
Fair value at grant date (cents)
Useful life
26/11/20
$0.017
$0.00
0.09%
If 20 day VWAP exceeds
$0.04
26/11/22
123%
0.0108
730 days
26/11/20
$0.017
$0.00
0.09%
If 20 day VWAP exceeds
$0.06
26/11/22
123%
0.0092
730 days
65
Notes to Financial Statements for the financial year ended 30 June 2022
19.
(b)
Reserves (continued)
Types of share-based payment plans (continued)
(ii) Options
The 20,000,000 options issued to advisors during the year ended 30 June 2022 have been valued using
the Black Scholes model, $41,653 is fully recognised directly in equity as transaction costs during the
financial year ended, with the following inputs.
30 June 2022
No of Options
Grant date
Share price
Exercise price
Risk-free interest rate
Vesting Conditions and Period
Expiry date
Volatility
Fair value at grant date (cents)
30 June 2021
20,000,000
01/06/2022
$0.0045
$0.01
2.63%
Nil
01/06/2024
122%
0.002
The prior year options issued to advisors were valued using a Black Scholes model. 35,000,000 options
and 21,000,000 options, with a value of $720,980 and $158,674 respectively were recognised directly
in equity as transaction costs during the prior financial year, with the following inputs:
No of Options
Grant date
Share price
Exercise price
Risk-free interest rate
Vesting Conditions and Period
Expiry date
Volatility
Fair value at grant date (cents)
35,000,000
21,000,000
15/09/20
$0.026
$0.03
0.23%
Nil
13/10/2023
147.5%
0.0206
22/06/21
$0.01
$0.015
0.14%
Nil
21/06/24
143%
0.00756
The 25,000,000 options issued during the prior financial year were recognised as a share based
payment expense in the year ended 30 June 2020. The fair value of $162,706 was fully recognised
directly in equity in 30 June 2020 as transactions costs as the options were issued to advisors in
connection with a capital raise.
No fair value is attributable to any other options issued in the prior year as all other options were either
free attaching options issued in relation to the Placement and Entitlement issues during each year or
were the beforementioned options set out above.
66
Notes to Financial Statements for the financial year ended 30 June 2022
19.
(c)
Reserves (continued)
Summary of share based payment options granted
The following table illustrates the number and weighted average exercise price (WAEP) of, and
movements in, share options issued during the year:
2022
No
Outstanding at the beginning of the year
373,665,570
Granted during the year
Exercised during the year
20,000,000
(182,705,631)
Expired/forfeited/cancelled during the year
(84,250,472)
Outstanding at the end of the year
126,709,467
2022
WAEP
0.012
0.0005
0.005
0.009
0.002
2021
2021
No WAEP
347,689,002
258,500,000
(176,151,719)
(56,371,713)
373,665,570
0.021
0.005
0.005
0.046
0.012
(d) Weighted average of remaining contractual life
The weighted average remaining contractual life for the share options outstanding as at 30 June 2022
is 1.14 years (2021: 1.48 years).
The weighted average remaining contractual life for the performance rights outstanding as at 30 June
2022 is 2.17 years (2021: 1.21 years)
Range of exercise price
(e)
The range of exercise prices for options outstanding at the end of the year was $0.003-$0.08 (2021:
$0.003-$0.10). The performance rights do not have an exercise price.
Weighted average fair value
(f)
The weighted average fair value of options granted during the year, excluding free attaching options,
was $0.002 (2021: $0.0129).
The weighted average fair value of performance rights granted during the year was $0.003 (2021:
$0.0108)
(g)
The following options were exercised during the year.
Share options exercised during the year
30 June 2022
Option Series
Number
Grant
Date
Expiry
Date
Exercise
Price
Fair Value
at Grant
Date
Issued 22/05/2020
182,705,631
182,705,631
22/05/2020
22/05/2022
$0.004
0.004
30 June 2021
Option Series
Number
Issued 22/05/2020
Issued 18/10/2019
Issued 10/06/2019
Issued 02/07/2015
168,291,851
4,888,439
471,429
2,500,000
176,151,719
Grant
Date
Expiry
Date
Exercise
Price
22/05/2020
18/10/2019
10/06/2019
02/07/2015
22/05/2022
18/10/2020
31/05/2022
23/07/2020
$0.004
$0.015
$0.02
$0.025
Fair Value
at Grant
Date
0.004
0.001
0.001
0.00568
67
Notes to Financial Statements for the financial year ended 30 June 2022
20. Financial Risk Management
Risk management is the role and responsibility of the Board. The Group's current activities expose it to
minimal risk. However, as activities increase there may be exposure to interest rate, market, credit, and
liquidity risks.
Interest Rate Risk
(a)
The Group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will
fluctuate as a result of changes in market rates and the effective weighted average interest rates on
classes of financial assets and financial liabilities, is as follows:
Floating
interest
rate
1 year
or
less
Over 1
year to
5 years
More
than 5
years
Non
interest
bearing
Total
$
$
$
$
$
$
30 June 2022
Financial Assets
Cash and deposits
Trade and other receivables
Financial asset at FV through
P&L
Other financial assets
Weighted average interest
rate
Financial liabilities
Trade and other payables
30 June 2021
Financial Assets
Cash and deposits
Trade and other receivables
Financial asset at FV through
P&L
Other financial assets
Weighted average interest
rate
Financial liabilities
Trade and other payables
2,967,635
-
-
-
2,967,635
0.035%
-
-
3,982,650
-
-
-
3,982,650
0.05%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
93,182
156,784
3,060,817
156,784
2,838,053
2,838,053
20,723
3,108,742
20,723
6,076,377
0.035%
707,265
707,265
707,265
707,265
65,942
150,537
105,922
21,486
343,887
4,048,592
150,537
105,922
21,486
4,326,537
0.05%
944,381
944,381
944,381
944,381
The Group has interest bearing assets and therefore income and operating cash flows are subject to
changes in the market rates. However, market changes in interest rates will not have a material impact
on the profitability or operating cash flows of the Group. A movement in interest rates of +/- 100 basis
points will result in less than a +/- $29,676 (2021: $39,826) impact on the Group’s income and operating
cash flows. At this time, no detailed sensitivity analysis is undertaken by the Group.
68
Notes to Financial Statements for the financial year ended 30 June 2022
20. Financial Risk Management (continued)
(b) Market risk
The Group’s listed investments are susceptible to market risk arising from uncertainties about its fair
value. This risk is managed by investing decisions conducted by the Board. The Group held 91,550,106
shares in Nex valued at $2,838,053 as at 30 June 2022 (2021: 4,073,941 shares valued at $105,922).
This is a level 1 measurement in accordance with the AASB 13 Fair Value hierarchy.
Sensitivity analysis
If share prices were to increase/decrease by 10 percent from share price used to determine fair values
as at the reporting date, assuming all other variables that might impact on fair value remain constant,
then the impact on profit for the year and equity is as follows:
+/- 10%
Impact on profit/(loss) after tax
Impact on equity
(c) Credit risk
2022
$
283,805
(283,805)
Consolidated
2021
$
10,592
(10,592)
Current
>30 days
>60
days
>90 days
Other
$
$
$
$
Total
$
30 June 2022
Financial Assets
Cash & deposits
Trade and other receivables
Other financial assets:
Rental security bond
Nex Receivable
Lifetime Expected Credit Loss
Subtotal – other financial assets
3,060,817
156,784
-
-
-
3,217,601
-
-
-
-
-
-
-
-
-
-
-
-
-
1,279,794
(1,279,794)
30 June 2021
Financial Assets
Cash & deposits
Trade and other receivables
Other financial assets:
Rental security bond
Current
>30 days
>60
days
>90 days
$
$
$
$
4,048,592
150,537
-
4,199,129
-
-
-
-
-
-
-
-
-
-
-
-
3,060,817
156,784
-
-
-
-
-
-
20,723
-
-
20,723
20,723
Other
20,723
-
-
20,723
3,238,324
Total
$
-
-
4,048,592
150,537
21,486
21,486
21,486
4,220,615
69
Notes to Financial Statements for the financial year ended 30 June 2022
20. Financial Risk Management (continued)
(c) Credit risk (continued)
Other than the Nex Receivable in the current year:
-
the Group has no significant concentrations of credit risk and as such, no sensitivity analysis is
prepared by the Group. Credit risk related to balances with banks is managed by ensuring that
the surplus funds are only invested with counterparties with a Standard & Poor’s rating of at
least AA-;
- None of the Group’s financial assets subject to credit risk are past due or impaired (2021: nil).
The majority of the Group’s trade and other receivables relates to GST receivable and as such
no credit risk exists.
The Nex Receivable has been fully impaired via an ECL. Refer to note 9.
(d) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash to meet commitments as and
when they fall due. The Group manages liquidity risk by preparing forecasts and monitoring actual cash
flows and requirements for future capital raisings. The Group does not have committed credit lines
available, which is appropriate given the nature of its operations. Surplus funds are invested in a cash
management account with ANZ which is available as required.
The material liquidity risk for the Group is the ability to raise equity in the future.
The table below reflects an undiscounted contractual maturity analysis for financial liabilities. Cash flows
realised from financial assets reflects management’s expectation as to the timing of realisation. Actual
timing may therefore differ from that disclosed.
Within 1 Year
1 to 5 Years
Total
2022
$
2021
$
2022
$
2021
$
2022
$
2021
$
Financial liabilities due for payment
Trade and other payables
707,265
944,381
Lease liabilities
Total expected outflows
Financial asset - cash flows
realisable
7,212
20,404
714,477
964,785
Cash and cash equivalent
3,060,817
4,048,592
Trade, term and loan receivables
Financial assets at fair value through
profit & loss
156,784
216,638
2,838,053
105,922
Rental Security bond
20,723
21,486
Total anticipated inflows
6,076,377
4,392,638
Net (outflow)/inflow on financial
instruments
5,361,900
3,427,853
-
-
-
-
-
-
-
-
-
-
707,265
944,381
7,212
7,212
27,616
7,212
714,477
971,997
-
-
-
-
-
3,060,817
4,048,592
156,784
216,638
2,838,053
105,922
20,723
21,486
6,076,377
4,392,638
(7,212)
5,361,900
3,420,641
70
Notes to Financial Statements for the financial year ended 30 June 2022
20. Financial Risk Management (continued)
(e) Effective interest rate and repricing analysis
Cash and cash equivalents are the only interest bearing financial instruments of the Group.
21.
Key management personnel disclosures
Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Share based payments
Consolidated Group
2022
$
767,938
66,001
298,511
2021
$
692,054
45,117
194,897
1,132,450
932,068
Detailed remuneration disclosures are provided in the Remuneration Report in the Directors’ Report.
Apart from the Company’s Directors, the Group had 2 employees as at 30 June 2022 (30 June 2021:
1 employee).
22.
Remuneration of auditors
During the year the following fees (exclusive of GST) were paid or
payable for services provided by the auditor of the Group:
Audit services
- Audit and review of financial report and other
audit work under the Corporations Act 2001
- Under provision of audit fee for prior year
Non-audit services
- Other services provided –
tax compliance
Total remuneration for audit and other services
Consolidated Group
2022
$
2021
$
49,000
48,418
5,773
-
4,500
2,000
59,273
50,418
From 2021, the auditors of Metalicity Limited and its subsidiaries has been Pitcher Partners BA&A Pty
Limited.
23. Contingent liabilities
The Group has no contingent liabilities as at 30 June 2022.
71
Notes to Financial Statements for the financial year ended 30 June 2022
24. Commitments for expenditure
(a) Exploration Commitments
In order to maintain an interest in the mining and exploration tenements in which the Group is involved,
the Group is committed to meet the conditions under which the tenements were granted and the
obligations of any joint venture agreements. The timing and amount of exploration expenditure
commitments and obligations of the Group are subject to the minimum expenditure commitments
required as per the Mining Act, as amended, and may vary significantly from the forecast based upon
the results of the work performed which will determine the prospectivity of the relevant area of interest.
These obligations are not provided for in the financial report and are payable.
Outstanding exploration commitments, including the Company’s 51% direct interest in the Kookynie and
Yundamindra Joint Venture tenements, are as follows (other than detailed below, no estimate has been
given of expenditure commitments beyond 12 months as this is dependent on the Directors' ongoing
assessment of operations and, in certain circumstances, Native Title negotiations):
Not longer than 1 year
Longer than 1 year and not longer than 5 years
Longer than 5 years
25.
Related Party transactions
(a) Key management personnel
Consolidated Group
2022
2021
$
508,478
-
-
508,478
$
823,427
-
-
823,427
During the year ended 30 June 2022, there were no related party transactions with key management
personnel.
All other disclosures relating to key management personnel are set out in Note 21 and in the detailed
remuneration disclosures in the Directors’ Report.
(b) Transaction with related parties
There were no transactions with related parties other than with key management personnel as noted
above.
(c) Outstanding balances arising from sales / purchases of goods and services
There are no balances owing to or from related parties at 30 June 2022 (2021: $Nil).
72
Notes to Financial Statements for the financial year ended 30 June 2022
26. Earnings per share
Consolidated Group
(a) Basic earnings per share
Loss from continuing operations attributable to the ordinary
equity holders of the Company
(b) Diluted earnings/(loss) per share
Loss from continuing operations attributable to the ordinary
equity holders of the Company
(c) Reconciliation of profit/(loss) used in calculating
earnings per share
Basic and diluted profit/(loss) per share
Loss from continuing operations attributable to the ordinary
equity holders of the Company
Loss from discontinued operations
(d) Weighted average number of shares used as the
denominator
Weighted average number of ordinary shares used as the
denominator in calculating basic earnings/(loss) per share
Adjustment for calculation of diluted profit/(loss) per share -
Options
Weighted average number of ordinary shares and potential
ordinary shares used as the denominator in calculating
diluted earnings/(loss) per share
2022
Cents
(0.22)
(0.22)
(0.22)
(0.22)
2022
$
(5,093,189)
(114,725)
(5,207,914)
2022
Number
2021
Cents
(0.10)
(0.10)
(0.10)
(0.10)
2021
$
(1,587,539)
(1,583,356)
(3,170,895)
2021
Number
2,411,475,003
1,699,333,137
-
-
2,411,475,003
1,699,333,137
As the Group made a loss for the years ended 30 June 2022 and 30 June 2021, the options on issue
have no dilutive effect. Therefore, dilutive loss per share is equal to basic loss per share.
27. Group entities
Parent entity
Metalicity Limited
Subsidiary
Metalicity Energy Pty Ltd
KYM Mining Pty Ltd
Kimberley Mining Limited(1)
Ridgecape Holdings Pty Ltd(1)
Kimberley Mining Australia Pty Ltd(1)
Kimberley Mining Holdings Pty Ltd(1)
Country of
incorporation
Interest
2022
Interest
2021
Australia
Australia
Australia
Canada
Australia
Australia
Australia
100%
100%
~80.3%
~80.3%
~80.3%
~80.3%
100%
100%
~80.3%
~80.3%
~80.3%
~80.3%
(1) Metalicity Limited holds ~80.3% interest in Kimberley Mining Limited (“KML”), and its wholly owned subsidiaries, with
outside equity interest holding the remaining ~19.7%. The outside equity interest in Kimberley Mining Limited equates
to ~0.94% of the net assets of the Group, being $109,537 at 30 June 2022 (2021: $84,179). Please refer to note 13 for
further details on the summarised financial information of KML.
73
Notes to Financial Statements for the financial year ended 30 June 2022
28. Parent entity information
Statement of financial position
ASSETS
Total current assets
Total non-current assets
TOTAL ASSETS
LIABILITIES
Total current liabilities
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Other reserves
Shares to be issued
Accumulated losses
TOTAL EQUITY
(Loss) of the parent entity
Total comprehensive (loss) of the parent entity
Parent
2022
$
12,570,599
50,810
12,621,409
843,544
-
843,544
11,777,865
63,725,507
3,895,576
8,578
(55,851,796)
11,777,865
(5,117,423)
(5,117,423)
Parent
2021
$
9,751,744
73,912
9,825,656
1,068,700
7,212
1,075,912
8,749,744
56,023,942
3,460,175
-
(50,734,373)
8,749,744
(3,243,426)
(3,243,426)
The parent entity has not provided any guarantees or become responsible for contingent liabilities or
contractual commitments of its subsidiaries, other than those disclosed in this financial report.
29. Subsequent events
Other than the following, the Directors are not aware of any significant events since the end of the
reporting period which significantly affect or could significantly affect the operations of the Group in
future financial years:
- On 4 July 2022, the Company announced an extension of its offer in relation to its off-market
takeover bid of Nex to 25 July 2022;
- On 5 July 2022, the Company advised that the extraordinary meeting of Nex had been
adjourned to 25 July 2022;
- On 22 July 2022, the Company announced the proceedings for the $1,279,794 claim against
Nex had been listed for mediation in the Supreme Court of Western Australia on the 11
November 2022;
- On 25 July 2022, the Company announced an extension of its offer in relation to its off-market
takeover bid of Nex to 8 August 2022;
- On 2 August 2022, the Company announced it had brought court action seeking 22.28% of Nex
to be vested in ASIC and sold;
- On 8 August 2022, the Company announced an extension of its offer in relation to its off-market
takeover bid of Nex to 29 August 2022;
- On 18 August 2022, the Company announced the acquisition of the highly prospective Mt
Surprise Lithium Project.
- On 23 August 2022, the Company announced that the Mt Surprise Lithium Project had been
granted;
74
Notes to Financial Statements for the financial year ended 30 June 2022
- On 25 August 2022, the Company announced it had secured a second highly prospective
lithium project with the acquisition of the Georgetown Lithium Project;
- On 29 August 2022, the Company announced that its extension of offer in relation to its off-
market takeover bid of Nex had lapsed and would not be extended;
- On 1 September 2022, the Company announced that it retains effective interest of 67.8% in
Kookynie and Yundamindra Gold Project through direct ownership of 51% and 34.3% indirect
interest via Nex;
- On 2 September 2022, the Company announced historical samples at the Mt Surprise Lithium
Project identify significant copper mineralisation over 5km strike;
- On 13 September 2022, the Company announced substantial extensions and significant gold
intersections at Champion.
- On 23 September 2022, the Company announced the Annual General Meeting would be held
on 25 November 2022.
75
ASX Additional Information
Additional Information required by the Australian Securities Exchange Limited Listing Rules and not
disclosed elsewhere in this report is set out below.
The shareholder information was applicable as at 15 September 2022.
(a) Substantial Shareholder
There are no substantial shareholders at the date of this report.
(b) Voting Rights
Ordinary Shares
On a show of hands every member present at a meeting shall have one vote and upon a poll each
share shall have one vote.
Options and Performance Rights
There are no voting rights attached to the options or performance rights.
(c) Distribution of Equity Security Holders
(i) Ordinary Shares
Category
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Total Holders
681
311
110
1,685
2,413
5,200
Ordinary Fully Paid Shares
291,099
764,074
870,599
88,539,386
3,368,240,848
3,458,706,006
% Issued Capital
0.01
0.02
0.03
2.56
97.38
100.00
There were 106,857,706 unmarketable parcels of ordinary shares.
(ii) Listed Options
Category
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Total Holders
30
60
76
274
177
617
Listed Options
9,155
188,622
603,842
12,341,769
250,240,229
263,383,617
% of Listed Options
0.00
0.07
0.23
4.69
95.01
100.00
There were 24,103,846 unmarketable parcels of listed options.
(iii)
Unquoted Options
Category
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Total Holders
22
3
0
0
0
25
Unlisted Options*
81,561,667
147,800
0
0
0
81,709,467
% of Unlisted Options
99.82
0.18
0.00
0.00
0.00
100.00
* CG Nominees (Australia) Pty Ltd is the only holder with over 20% of total unlisted options, with 56,000,000 (68.54%).
76
ASX Additional Information
(iv) Unquoted Performance Rights
Category
Total Holders
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
6
0
0
0
0
6
Unlisted
Performance Rights*
82,084,110
0
0
0
0
82,084,110
% of Unlisted
Performance Rights
100.00
0.00
0.00
0.00
0.00
100.00
*There are another 14,000,000 performance rights that were granted during the year but have not been issued yet that also
have under 1,000 holders.
(d) Equity Security Holders
(i) Ordinary Shares
The names of the twenty largest ordinary fully paid shareholders at 15 September 2022 are:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
BNP PARIBAS NOMS PTY LTD
HISHENK PTY LTD
CITICORP NOMINEES PTY LIMITED
E C DAWSON SUPER PTY LTD
MR MARK EDWIN ROBERTS
CG NOMINEES (AUSTRALIA) PTY LTD
FMR INVESTMENTS PTY LIMITED
WESTERN AUSTRALIAN HOLDINGS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
RAINMAKER HOLDINGS (WA) PTY LTD
FIRST LIGHT NOMINEES PTY LTD
UPSKY EQUITY PTY LTD
HOGHTON SUPERFUND PTY LTD
SACROSANCT PTY LTD
MRS MARISA MACKOW
TERRA FORTUNA SDN BHD
MR JASON NEWTON LIVINGSTONE
MR GURTEJ SINGH
WIP FUNDS MANAGEMENT PTY LTD
COVENTINA HOLDINGS PTY LTD
Number
Held
94,860,402
90,000,000
48,303,802
46,000,000
40,000,000
33,558,122
32,708,000
28,860,005
28,555,288
27,991,807
27,898,005
26,999,339
26,042,374
25,399,680
24,401,417
23,687,480
22,559,905
20,586,731
20,000,000
19,850,511
Percentage
of Issued
Shares
2.74
2.60
1.40
1.33
1.16
0.97
0.95
0.83
0.83
0.81
0.81
0.78
0.75
0.73
0.71
0.68
0.65
0.60
0.58
0.57
Total
708,262,868
20.48
77
ASX Additional Information
(ii) Listed Option Holders
The names of the twenty largest listed option holders shareholders at 15 September 2022 are:
1
2
3
4
5
6
7
7
7
8
8
9
10
11
11
12
13
14
15
16
17
18
19
20
EUTHENIA TYCHE PTY LTD
CG NOMINEES (AUSTRALIA) PTY LTD
MR PAUL-JOHN CRAWFORD GERBER
MR PETER KARL LAIS
MR MD AKRAM UDDIN
MR SHAFIQUL ISLAM
EQUITY TRUSTEES SUPERANNUATION LIMITED
SHANTO PTY LTD
MR MARK RICHARD JENSEN
MR MD MUNTASIR BILLAH
MR CLEMENT FREDERICK DEVINE
HISHENK PTY LTD
PAUL THOMSON FURNITURE PTY LTD
SKYWALKER HOLDINGS WA PTY LTD
SHEZAPPLES PTY LTD
MR MARK ANDREW TKOCZ
MR CAJETAN FRANCIS MASCARENHAS
SUPERHERO SECURITIES LIMITED
MR MARK EDWIN ROBERTS
MR ROSS DIX HARVEY
APT CONTRACTORS PTY LTD
MRS LAI SUN KEANE
E C DAWSON SUPER PTY LTD
BVB CUSTODIAN PTY LTD
Total
Number
Held
20,100,000
20,000,000
10,000,000
9,216,436
8,500,005
6,126,800
6,000,000
6,000,000
6,000,000
5,000,000
5,000,000
4,761,906
4,158,572
4,049,760
4,049,760
3,950,000
3,637,199
3,376,014
3,333,334
3,200,000
3,000,000
2,879,829
2,699,840
2,474,211
Percentage
of Issued
Shares
7.63
7.59
3.80
3.50
3.23
2.33
2.28
2.28
2.28
1.90
1.90
1.81
1.58
1.54
1.54
1.50
1.38
1.28
1.27
1.21
1.14
1.09
1.03
0.94
147,563,666
56.03
78
ASX Additional Information
(e) Unquoted Securities
(i) Unlisted Options
Class
MCTOP40
MCTOP41
MCTOP42
MCTOP34
MCTOP46
MCTOP47
MCTOP48
Total
Expiry Date
14 Jan 2022
14 Jan 2022
31 May 2022
14 Feb 2023
14 Aug 2022
13 Oct 2023
22 Jun 2024
No. of Holders
1
1
6
24
1
1
1
Exercise Price
$0.025
$0.035
$0.020
$0.080
$0.003
$0.003
$0.015
No. of Options
2,000,00012
2,000,00012
10,785,71513
25,709,46714
25,000,00015
35,000,00015
21,000,00015
81,709,467
(ii) Unlisted Performance Rights
Class
MCTPERF2
MCTPERF3
MCTPERF4
Not issued yet
Not issued yet
Not issued yet
Not issued yet
Total
Expiry Date
30 Jan 2023
18 Dec 2022
18 Dec 2022
11 April 2025
11 April 2025
30 June 2025
30 June2025
No. of Holders
2
4
4
1
1
1
1
Vesting at
$0.050
$0.040
$0.060
$0.0135
$0.0180
$0.015
$0.025
No. of Options
15,650,00016
29,679,14417
36,754,96618
2,000,00019
2,000,00019
5,000,00020
5,000,00020
96,084,110
The names of holders and number of unquoted securities held for each class (excluding securities
issued under an employee share scheme) where the holding was 20% or more of each class of
security are as follows set out in the footnotes below.
12 Jason Livingstone owns 100%
13 E C Dawson Super Pty Ltd and Cheyne Michael Dunford both hold 4,000,000 each
14 National Bank Financial Inc holds 8,890,000
15 CG Nominees Australia Pty Ltd owns 100%
16 Jason Livingstone owns 10,000,000 and Justin Barton owns 5,650,000
17 Jason Livingstone owns 12,299,456 and Conventina Holdings Pty Ltd owns 10,695,187
18 Jason Livingstone owns 15,231,788 and Conventina Holdings Pty Ltd owns 13,245,033
19 Stephen Guy owns 100%
20 Justin Barton owns 100%
79
ASX Additional Information
Resources Statement
Mineral Resource Estimate – Kookynie Gold Project.
The current Mineral Resource Estimate (MRE) for the Kookynie Gold Project as at 30th June 2022 is
reported below.
Mineral Resource Estimate
Mineral Resource
Tonnes (Kt)
Grade (g/t Au)
Contained Ounces
Indicated Mineral Resources
Inferred Mineral Resources
Total Mineral resources
450
1,130
1,580
1.3
1.7
1.6
Note: Mineral Resources are reported to a 0.5 g/t Au cut-off grade.
19,000
62,000
81,000
Indicated and Inferred Mineral Resource Estimate Subdivided by Deposit
Deposit
Leipold
Champion
McTavish
Total
Indicated
Inferred
Tonnes
(kt)
Au Grade
(g/t)
Ounces
Tonnes
(kt)
Au Grade
(g/t)
Ounces
450
1.3
19,000
-
-
-
-
-
-
630
380
120
450
1.3
19,000
1,130
1.7
1.7
2.0
1.7
34,000
20,000
8,000
62,000
Note: Mineral Resources are reported to a 0.5 g/t Au cut-off grade.
Previous Mineral Resource Estimate – Kookynie Gold Project
The mineral resource estimate for the Kookynie Gold Project is a maiden estimate for Metalicity and
announced on the 1st of April 2022 and therefore there are no changes to the resource from last year 21.
Classification Criteria
The Leipold, Champion and McTavish deposits show good continuity of the main mineralised units
which allowed the drill hole intersections to be modelled into coherent, geologically robust domains.
Consistency is evident in the thickness of the structure, and the distribution of grade appears to be
reasonable along and across strike.
The Kookynie Mineral Resources have been classified as Indicated and Inferred Mineral Resource
based on data quality, sample spacing, and lode continuity. The Indicated Mineral Resource was
confined to the Leipold deposit, within areas of close spaced RC and DD drilling of less than 20m by
20m, and where the continuity and predictability of the lode positions was good. The Inferred Mineral
Resource was assigned to areas where drill hole spacing was greater than 20m by 20m, where small,
isolated pods of mineralisation occur outside the main mineralised zones, and to geologically complex
zones. Champion and McTavish were classified as Inferred Mineral Resource.
21 ASX Announcement “Kookynie Maiden JORC 2012 Mineral Resource Estimate” dated 1st April 2022.
80
ASX Additional Information
Governance Controls
All Mineral Resource estimates are prepared by Competent Persons using data that they have reviewed
and considered to have been collected using appropriate industry standard practices and which, to the
most practical degree possible are representative, unbiased, and collected with appropriate QA/QC
practices in place.
Mineral Resource Estimate – Admiral Bay Zinc Project.
The current MRE for the Admiral Bay Zinc Project as at 30th June 2022 is reported below.
Global Mineral Resource Estimate
Grade
Mineral Resource
Tonnes (Mt) Zn (%) Pb (%) Ag (g/t) Ba (%)
ZnEq* (%)
Inferred Mineral Resource
Total Mineral Resource
170
170
4.1
4.1
2.7
2.7
25
25
10
10
7.5
7.5
Notes:
•
•
•
•
•
•
•
Inferred Mineral Resource is constrained within modelled mineralisation domains based on a notional 3% Zn+Pb cutoff
grade.
Nearest neighbour block model estimates into 50mX by 50mY by 360mZ parent block dimensions based on composite
drill intersection grades over entire mineralised zone intervals.
No cutoff grade applied to block model estimates for resource reporting.
Zinc equivalence (ZnEq) in the MRE has been reported based on average LME prices for lead, zinc and silver in May
2016 and metallurgical recoveries derived from metallurgical testwork completed by CRAE and Kagara.
ZnEq* is a formula based on LME metal prices in May 2016 and previous Metalicity metal recovery estimates as
discussed above.
The calculation for the Zinc Equivalent formula is ZnEq = Zn+0.97Pb+0.03Ag.
Resource tonnages and grades are rounded to two significant figures.
Mineral Resource Estimate Subdivided by Modelling Domains
Inferred Mineral Resource
Description
Grade
Zone
Style
Host Stratigraphy
Tonnes
(Mt)
Density
(t/m3)
Zn
(%)
Pb
(%)
Ag
(g/t)
Ba
(%)
ZnEq*
(%)
11
12
20
30
40
50
High Zn,
Low Pb
Mod Zn,
Low Pb
Low Zn,
High Pb
Mod Zn,
Low Pb
Low Zn,
High Pb
Mod Zn,
Low Pb
NFM at contact w/CFM
95
3.0
5.7
1.6
29
CFM at contact w/NFM
23
2.7
3.6
0.6
17
9
2
8.1
4.7
NFM below MZ11
40
3.4
1.7
5.1
19
15
7.2
CFM above MZ12
2
2.7
4.4
0.8
28
1
6.0
NFM/GFM contact
10
3.9
0.2
9.5
20
17
10.0
CFM above MZ30
0.5
2.7
4.1
1.1
22
1
5.9
All
Total – Combined Zones
170
4.1
4.1
2.7
25
10
7.5
81
Notes:
ASX Additional Information
•
•
•
•
•
•
•
•
Inferred Mineral Resource subdivided by modelled mineralisation domains based on a notional 3% Zn+Pb cutoff grade.
CFM = Cudalgarra (or Bongabinni) Formation, NFM = Nita Formation, GFM = Goldwyer Formation.
Nearest neighbour block model estimates into 50mX by 50mY by 360mZ parent block dimensions based on composite
drill intersection grades over entire mineralised zone intervals.
No cutoff grade applied to block model estimates for resource reporting.
Zinc equivalence (ZnEq) in the MRE has been reported based on average LME prices for lead, zinc and silver in May
2016 and metallurgical recoveries derived from metallurgical testwork completed by CRAE and Kagara.
ZnEq* is a formula based on LME metal prices in May 2016 and previous Metalicity metal recovery estimates as
discussed above.
The calculation for the Zinc Equivalent formula is ZnEq = Zn+0.97Pb+0.03Ag.
Resource tonnages and grades are rounded to two significant figures.
Previous Mineral Resource Estimate - Admiral Bay Zinc Project
No change in the mineral resource estimate from last year.
Classification Criteria
A total of six mineralised zone domains were modelled using interpretations of the stratigraphy and
mineralisation dominance (zinc versus lead) and a notional 3% Zn+Pb cutoff grade to guide the
modelling.
The main zones of zinc (MZ11) and lead (MZ20) dominant mineralisation near the top of the NFM have
been modelled over an 18km strike length mostly trending towards an azimuth of 300°. The main zinc
zone ranges from nearly 900m wide at the western end, tapering to 500m to 600m wide over the eastern
half of the strike extents. The main lead zone ranges from 400m wide at the western end, tapering to
130m wide 12km to the southwest, and then increasing to 250m wide over 4km from the eastern end.
Drill intersections of both zones range from 3m to 20m.
The Mineral Resource Classification is based on confidence in the geological and grade continuity in
relation to the drill hole spacing. Where present, the mineralisation appears to be highly continuous
along the strike of the deposit but shows significant variations in grade and thickness across the deposit.
Higher confidence local estimates therefore require a drill spacing that adequately represents the local
variation in the mineralised intersection grades and better characterises changes in mineralisation
thicknesses, in particular across the deposit.
Governance Controls
The Mineral Resource estimate (above) for Admiral Bay Zinc has been classified in accordance with
the guidelines set out in the “Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves” (JORC, 2012 Edition). Classification of the Mineral Resource estimate has taken
into consideration the quality of geological and sampling data, geological understanding/interpretation
and geological and grade continuity.
The data spacing and distribution at Admiral Bay Zinc is considered sufficient to establish an appropriate
degree of geological and grade continuity appropriate for classification of an Inferred Mineral Resource.
Disclaimer and Forward-Looking Statements
This report is not a prospectus nor an offer of securities for subscription or sale in any jurisdiction nor a securities
recommendation. The information in this report is an overview and does not contain all information necessary for
investment decisions. In making investment decisions, investors should rely on their own examination of Metalicity
Limited and consult with their own legal, tax, business and/or financial advisers in connection with any acquisition
of securities.
82
ASX Additional Information
The information contained in this report has been prepared in good faith by Metalicity Limited. However, no
representation or warranty, express or implied, is made as to the completeness or adequacy of any statements,
estimates, opinions or other information contained in this report. To the maximum extent permitted by law, Metalicity
Limited, its directors, officers, employees and agents disclaim liability for any loss or damage which may be suffered
by any person through the use of, or reliance on, anything contained in or omitted from this report. Certain
information in this report refers to the intentions of Metalicity Limited, but these are not intended to be forecasts,
forward looking statements, or statements about future matters for the purposes of the Corporations Act (Cth,
Australia) or any other applicable law. The occurrence of events in the future are subject to risks, uncertainties and
other factors that may cause Metalicity Limited’s actual results, performance or achievements to differ from those
referred to in this report to occur as contemplated.
The report contains only a synopsis of more detailed information to be published in relation to the matters described
in this document and accordingly no reliance may be placed for any purpose whatsoever on the sufficiency or
completeness of such information and to do so could potentially expose you to a significant risk of losing all of the
property invested by you or incurring by you of additional liability. Recipients of this report should conduct their own
investigation, evaluation and analysis of the business, data and property described in this document. In particular,
any estimates or projections or opinions contained herein necessarily involve significant elements of subjective
judgment, analysis and assumptions and you should satisfy yourself in relation to such matters. Furthermore, this
report may contain certain “forward-looking statements” which may not have been based solely on historical facts,
but rather may be based on the Company’s current expectations about future events and results. Where the
Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is
expressed in good faith and believed to have reasonable basis. However, forward-looking statements:
(a) are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the
Company, are inherently subject to significant technical, business, economic, competitive, political and social
uncertainties and contingencies;
(b) involve known and unknown risks and uncertainties that could cause actual events or results to differ materially
from estimated or anticipated events or results reflected in such forward-looking statements. Such risks include,
without limitation, resource risk, metals price volatility, currency fluctuations, increased production costs and
variances in ore grade or recovery rates from those assumed in mining plans, as well as political and
operational risks in the countries and states in which the Company operates or supplies or sells product to,
and governmental regulation and judicial outcomes; and
(c) may include, among other things, statements regarding estimates and assumptions in respect of prices, costs,
results and capital expenditure, and are or may be based on assumptions and estimates related to future
technical, economic, market, political, social and other conditions.
The words “believe”, “expect”, “anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”,
“estimate”, “may”, “will”, “schedule” and similar expressions identify forward-looking statements.
All forward-looking statements contained in this presentation are qualified by the foregoing cautionary statements.
Recipients are cautioned that forward-looking statements are not guarantees of future performance and accordingly
recipients are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty
therein.
The Company disclaims any intent or obligation to publicly update any forward-looking statements, whether
because of new information, future events or results or otherwise.
Competent Person Statements
Information in this report that relates to Exploration results and targets is based on, and fairly reflects, information
compiled by Mr. Jason Livingstone, a Competent Person who is a Member of the Australian Institute of
Geoscientists. Mr. Livingstone is an employee of Metalicity Limited. Mr. Livingstone has sufficient experience that
is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves. Mr. Livingstone consents to the inclusion of the data
in the form and context in which it appears. In addition, please refer to the referenced ASX Announcements for the
Competent Persons Statements applicable.
Information in this report that relates to Exploration results and targets is based on, and fairly reflects, information
compiled by Mr. Stephen Guy, a Competent Person who is a Member of the Australian Institute of Geoscientists.
83
ASX Additional Information
Mr. Guy is an employee of Metalicity Limited. Mr. Guy has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves. Mr. Guy consents to the inclusion of the data in the form and context in
which it appears.
The information in this announcement that relates to previous Exploration Results based on and fairly represents
information and supporting documentation prepared by Mr Leo Horn. Mr Horn is a consultant for Metalicity and a
member of the Australian Institute of Geoscientists. Mr Horn has sufficient experience relevant to the styles of
mineralisation and types of deposits that are covered in this announcement and to the activity that they are
undertaking to qualify as a Competent Person as defined in the 2012 edition of the ‘Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves’ (“JORC Code”). Mr Horn consents to the inclusion
in this announcement of the matters based on his information in the form and context in which it appears.
The Kookynie Gold Mineral Resource has been compiled under the supervision of Mr. Shaun Searle who is a
director of Ashmore Advisory Pty Ltd and a Registered Member of the Australian Institute of Geoscientists.
Mr. Searle has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity that he has undertaken to qualify as a Competent Person as defined in the JORC
Code.
The information in this report that relates to the Admiral Bay Zinc Mineral Resource Estimate is based on, and fairly
represents, information which has been compiled by Mr James Ridley. Mr Ridley is a Director and Principal
Geologist at Ridley Mineral Resource Consulting Pty Ltd and a Member of the Australasian Institute of Mining and
Metallurgy. Mr Ridley 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 Competent Person as defined in the
2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.
Mr Ridley consents to the inclusion in this report of the matters based on his information in the form and context in
which they appear.
All Mineral Resources figures reported in the table above represent estimates at 30 June 2022. Mineral Resource
estimates are not precise calculations, being dependent on the interpretation of limited information on the location,
shape, and continuity of the occurrence and on the available sampling results. The totals contained in the above
table have been rounded to reflect the relative uncertainty of the estimate. Rounding may cause some
computational discrepancies.
Mineral Resources are reported in accordance with the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves 11(The Joint Ore Reserves Committee Code – JORC 2012 Edition).
The Group is not aware of any new information or data that materially affects the information included in the report
and, in the case of “exploration results” that all material assumptions and technical parameters underpinning the
“exploration results” in the relevant announcements referenced apply and have not materially changed.
84
ASX Additional Information
(f) Tenement List:
As at 15 September 2022
Tenement
Registered Holder
Shares
Held
Plainted
Stat
us
Area (ha)
Nature of
Interest
Interest
Kookynie
P40/1331
KYM Mining Limited
100/100
E40/390
E40/350
E40/357
E40/401
KYM Mining Limited
100/100
KYM Mining Limited
100/100
KYM Mining Limited
100/100
KYM Mining Limited
100/100
P40/1407
KYM Mining Limited
100/100
P40/1430
KYM Mining Limited
100/100
P40/1510
Metalicity Limited
P40/1511
Metalicity Limited
Metalicity Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Paris Enterprises Pty
Ltd
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
90,405/90
,405
100/100
100/100
100/100
100/100
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
161.2
3,300.0
2,394.0
1,194.0
598.0
10.0
9.9
185.0
176.7
299.0
Direct Holding
Direct Holding
Direct Holding
Direct Holding
Direct Holding
Direct Holding
Direct Holding
Direct Holding
Direct Holding
Direct Holding
Live
7.2
Earnt In
Live
1.0
Earnt In
Live
600.0
Earnt In
Live
121.7
Earnt In
Live
85.5
Earnt In
Live
832.7
Earnt In
Live
119.2
Earnt In
Live
8.3
Earnt In
Live
5.9
Earnt In
Live
21.1
Earnt In
Live
1,222.7
Earning In
Kookynie Total Area (ha)
10,862.1
Yundamindra
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
100/100
Yes
Live
1.0
Earnt In
96/96
Yes
Live
1.0
Earnt In
100/100
Yes
Live
3.2
Earnt In
100/100
Yes
Live
378.0
Earnt In
100/100
Yes
Live
230.0
Earnt In
100/100
Yes
Live
124.0
Earnt In
100/100
Yes
Live
896.0
Earnt In
100/100
Yes
Live
785.0
Earnt In
100/100
Yes
Live
966.0
Earnt In
100/100
Yes
Live
978.0
Earnt In
100/100
Yes
Live
7.3
Earnt In
E40/387
G40/3
L40/9
E40/332
M40/22
M40/27
M40/61
M40/77
P40/1499
P40/1500
P40/1501
E40/289
L39/34
L39/52
L39/258
M39/84
M39/274
M39/406
M39/407
M39/408
M39/409
M39/410
M39/839
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
85
ASX Additional Information
M39/840
P39/6126
P39/6127
E39/1773
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Paddick Investments
Pty Ltd
E39/1774
Paddick Investments
Pty Ltd
100/100
Yes
Live
9.7
Earnt In
100/100
100/100
No
No
Live
10.4
Earnt In
Live
5.6
Earnt In
100/100
Yes
Live
903.0
Earning-in
51%
51%
51%
51%
100/100
Yes
Live
2,517.0
Earning-in
51%
Yundamindra Total Area (ha)
7,815.1
Tenement
Registered Holder
Status
Area
Nature of Interest
Interest
Admiral Bay
E04/1610
Kimberley Mining Australia Pty Lyd
Live
M04/244
Kimberley Mining Australia Pty Lyd
Live
M40/249
Kimberley Mining Australia Pty Lyd
Live
42
Blocks
796.4 ha
843.85
ha
Holding in
Subsidiary
Holding in
Subsidiary
Holding in
Subsidiary
80.3%
80.3%
80.3%
Tenement
Registered Holder
Status
Area
Nature of Interest
Interest
EOM 28052 Astralis Resources Pty Ltd
Live
100
Sub-
Blocks
Earning-in
100%
Queensland Lithium Projects
86