Metalicity Limited
ABN: 92 086 839 992
Annual report
For the year ended 30 June 2023
Corporate Directory
Directors
Justin Barton – Managing Director and Acting Chairperson (appointed Acting Chairperson on 25 November
2022)
Roger Steinepreis – Non-Executive Director (appointed on 6 February 2023)
Steven Wood – Independent Non-Executive Director (appointed on 25 November 2022)
Company Secretary
Kate Breadmore – Joint Company Secretary (appointed on 1 December 2022)
James Doyle – Joint Company Secretary (appointed on 1 December 2022)
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
Page
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31
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81
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 2023.
Directors
The names and particulars of the Directors of the Company during or since the end of the financial year
are:
Name
Particulars
Justin Barton
Managing Director and Acting Chairperson (appointed Acting Chairperson on 25
November 2022)
Roger Steinepreis Non - Executive Director (Appointed on 6 February 2023)
Steven Wood
Independent Non-Executive Director (Appointed on 25 November 2022)
Andrew Daley
Chairperson (resigned on 25 November 2022)
Jason Livingstone Non-Executive Director (resigned on 6 February 2023)
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 65.6% joint venture interest in
through direct ownership of 51% and ~25.92% indirect interest via Nex Metals Exploration Ltd (“Nex”), and
the Queensland based Mt Surprise and Georgetown Projects.
Review of Operations and Results
Throughout the year, the Company continued to explore and progress the Kookynie and Yundamindra gold
projects as well as the Mt Surprise and Georgetown Projects.
Kookynie Gold Project
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 and recent exploration within the area
undertaken by Metalicity and past explorers.
The Kookynie Project hosts some of Metalicity’s key gold assets which include the historical mining centres
of Diamantina-Cosmopolitan-Cumberland, known as the DCC trend, as well as McTavish, Leipold, Champion
and Altona (Figure 1).
Metalicity has drilled 380 holes for over 34,000 metres across several deposits, prospects and exploration
targets within the Kookynie Gold project since farm-in in early 2020. This volume of drilling has yielded
significant intercepts with some truly spectacular gold results including, but not limited to:
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Directors’ Report
Kookynie Gold Project (continued)
Leipold
• LPRC0077 – 4 metres @ 26.91 g/t Au from 65 metres, incl. 1 metre @ 100.77 g/t Au from 67 metres1
• LPRC049 - 10 metres @ 7.44 g/t Au from 108m, incl. 2 metres @ 21.03 g/t Au from 111m2
McTavish
• McTRC0044 - 3 metres @ 19.1 g/t Au from 88 metres ▪ incl. 1 metre @ 52.8 g/t Au from 89 metres3
• McTRC0049 - 5 metres @ 25.9 g/t Au from 28 metres incl: ▪ 3 metres @ 41.5 g/t Au from 30 metres, and 1 metre
@ 91.2g/t Au from 30 metres)4
Champion
• CPRC0041 - 28 metres @ 1.83 g/t Au from 72 metre5
Cosmopolitan
• COSRC0027 - 1 metre @ 4.4 g/t Au from 183 metres and: - 1 metre @ 7.7 g/t Au from 208 metres6
Altona
• ALTRC0030 - 3 metres @ 14.9 g/t Au from 97 metres incl. 1 metre @ 39.2g/t Au from 97 metres7
• ALTRC0010 – 6 metres @ 2.03 g/t Au from 34 metres; and – 1 metre @ 8.36 g/t Au from 89 metres8
McTavish South
• MCTSAC0020 – 8 metres @ 2.61 g/t Au from 28 metres9
• MCTSAC0028 – 8 metres @2.60 g/t Au from 28 metres9
Results from this drilling include identification of new mineralisation at McTavish South2, extensional and
resource drilling at Champion, Leipold, McTavish, Altona and Cosmopolitan Deposits. In addition to an
extensive drill program, Metalicity released a maiden JORC 2012 compliant Mineral Resource Estimate
containing 83,000 ounces of gold for the Leipold, McTavish and Champion Deposits in April 2022. Metalicity
has proven with its exploration activities that the Kookynie Gold Project has substantial value and the
Kookynie area still retains significant mineral endowment.
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 primarily focussed its activities to the Central Zone of the project
completing exploration targeting from geophysical surveying and exploration drilling results from the 2022
drilling campaign, as well as soil sampling/field reconnaissance mapping at the Kookynie Gold Project.
1 ASX Announcement “Metalicity Reports Drill Hole Intercepts Up to 100 g/t Au for the Kookynie Gold Project” dated 15 September
2020.
2 ASX Announcement “Metalicity Continues to Deliver Spectacular Drill Hole Results for the Kookynie Gold Project” dated 25 August
2020.
3 ASX Announcement “McTavish Returns Assays Up To 52.8 g/t Au & Executive Changes” dated 24 May 2021.
4 ASX Announcement “McTavish Delivers Bonanza Grade Gold Results up to 91.2 g/t Au” dated 8 July 2021.
5 ASX Announcement “Widest Intersection to Date at Kookynie as Champion & McTavish Continue to Deliver Strong Gold Results”
dated 13 December 2021.
6 ASX Announcement “Cosmopolitan Gold Mine Drilling Results” dated 28 July 2021.
7 ASX Announcement “Further Impressive Drill Results at Altona, Kookynie Gold Project” dated 18 March 2021.
8 ASX Announcement “Metalicity Continues to Deliver Impressive Drill Hole Results for the Kookynie Gold Project” dated 22 December
2020.
9 ASX Announcement “Drilling Extends Significant Gold Mineralisation along McTavish Trend by a Further 400 metres” dated 2th June
2022.
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Directors’ Report
Figure 1 – Kookynie Prospect Locality Map with mineralised trends.
5
Directors’ Report
Central Zone
The Central Zone of the Kookynie Gold project hosts several significant gold deposits and prospects and
remained the focus of exploration activities for the year.
From the successful 31 drillhole first pass Air Core programme, 10 drillholes containing 4 metre composite
samples with significant and anomalous gold mineralisation were selected for resampling and re-analysis10.
These drillholes and mineralised 4m composite intervals were re-split to 1m intervals from the first pass air-
core drilling program11. Assay results identified internal higher-grade zones of gold mineralisation within the
significant intersections, as well as provided greater definition of previous lower grade anomalous
occurrences. Out of the initial programme, two additional drillholes (MCTSAC0005 and MCTSAC0008), which
originally returned anomalous gold assay results, returned significant intercepts that expanded on the original
mineralisation envelope (Figure 2).
Figure 2 – McTavish South Prospect Drill Collars Plan and significant intercepts. 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.
10 ASX Announcement “Drilling Extends Significant Gold Mineralisation along McTavish Trend by a Further 400 metres” dated 27th
June 2022.
11 ASX Announcement “Significant High-Grade Intercepts from McTavish South Resampling” dated 4th October 2022
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Directors’ Report
Gold mineralisation is situated along a north-south trending structure that was interpreted from detailed
aeromagnetic surveys undertaken by the Company, as well as detailed reviews of recent and historic
exploration information. This structural model of mineralisation deposition has formed a significant part of
Metalicity’s exploration strategy at its Kookynie gold project. This strategy has generated a number of
greenfields and brownfields extensional gold targets in the area and has been extended to the Yundamindra
Gold Project.
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 nine granted mining leases, two prospecting licences and two exploration licences 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 include 12:
Bound to Rise - 2m @ 7.21 g/t Au from 30 m in HC007,
o
o
Pennyweight Point - 8m @ 56.36 g/t Au from 44 m in PV095,
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 Metalicity to
confirm and extend the known mineralisation occurrences within the area. The company has identified
immediate drill targets at Penny Weight Point, Landed at Last, Maori Queen and Queen of May prospects.
Field work has identified the presence of inverted paleochannels obscuring mineralised trends at the
Yundamindra West line of lode13.
During the year, Metalicity undertook a small field reconnaissance mapping and soil sampling program to
identify any possible gold mineralisation anomalies. Work on the Yundamindra project has been limited to
high level desk top reviews of historical exploration and recent results from third party prospecting. Metalicity
has completed sufficient work to rapidly undertake exploration at Yundamindra pending a positive result from
current plaint proceedings.
All Yundamindra tenure remains under plaint, however these proceedings have since been heard in the
Wardens Court. The Warden reserved her decision on 10 July 2023 and Metalicity awaits the Wardens
decision in the near future.
12 Please refer to ASX Announcement “September 2019 Quarterly Activities Report” dated 30 October 2019.
13 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.
7
Directors’ Report
Figure 3 – Yundamindra Tenement Map with exploration prospects and historic significant intercepts.
Mt Surprise and Georgetown Projects Queensland
Mt Surprise Project
The Mount Surprise project comprises two granted exploration permits covering a large area approximately
165km from the city of Cairns, Queensland and 57 km northeast of the town of Mt Surprise (Figure 4). Mt
Surprise is considered highly prospective for multiple minerals including copper, cobalt, base metals and
gold. Exploration within the past year has included field reconnaissance mapping, rock chip sampling, low
level detection soil sampling as well as geophysical survey data re-processing and target generation.
8
Directors’ Report
Figure 4. Granted Mt Surprise project exploration permits EPM 28052 and EPM 28653, Georgetown project EPM 28121
Locality Map.
Two field reconnaissance programs undertaken at Mt Surprise in late 2022 which included rock chip
sampling, geological mapping, and a program of low-level detection soil sampling. The maiden field program
identified multiple surface gossans and historic mine workings and returned significant assay results for
copper and cobalt as well as base metal (silver, lead, zinc) mineralisation (Figure 5). Best rock chip assay
results from this program are represented in Table 1 below 14,15. Some historic workings and mapped gossans
included abundant copper sulphides of azurite and malachite identified at surface.
Results from the initial rock chip sampling and mapping program identified mineralised trends which guided
the follow up programme of low-level detection soil sample for mineral anomalism. Significant areas of the
Mt Surprise Project lack visible outcrop that, when combined with aeromagnetic survey interpretation and
field observations are ideal for targeted soil sampling programs.
14 ASX Announcement "High Grade Copper Results from Outcropping Gossan Rock Chips at Mt Surprise” dated 14 November 2022.
15 ASX Announcement “High Grade Copper and Cobalt Assays” dated 30 January 2023.
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Directors’ Report
Figure 5. Location of significant rock chip samples within EPM 28052 – Mt Surprise QLD.
Table 1 – Mt Surprise October/November field progamme rock chip sample signficant assay results. >0.5% Cu, >100ppm Co,
>1% Pb, > 5g/t Ag, > 0.1g/t Au, >0.1% Zn.
Cu %
Co ppm
Ag g/t
Au g/t
Pb %
Zn ppm
Sample ID
MCT39123
MCT39146*
MCT39147
MCT39148
MCT39150
MCT39156
MCT39157
MCT39158
MCT39196
MCT39197
MCT39198
MCURC0001
MDBRC0001
MDBRC0002
MDBRC0003
MDBRC0006
East GD94
Z55
248560
248558
248557
248557
248598
248604
248604
248600
241311
241321
241282
248152
240579
240574
240576
240574
North GD94
Z55
8033985
8033984
8033921
8033920
8033895
8033897
8033899
8033898
8035015
8035012
8035009
8033889
8034967
8034970
8034971
8034982
3.01
20.75
0.72
1.39
11.65
10.06
6.48
2.33
-
-
-
11.15
-
-
-
-
-
-
-
-
138.3
293
170.6
650.3
-
-
-
392
-
-
-
-
7.8
41.7
16.5
22
10.34
39.57
66.39
10.66
44.97
12
21.01
32.2
86
60.1
48.3
-
0.24
-
-
-
-
0.48
0.19
0.26
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2.94
1.20
1.14
-
-
2.77
-
1.12
* Sample collected from dominantly undiluted copper sulphide material and is not representative of in situ mineralisation.
- indicates no significant result for any element listed in JORC Code, 2012 Edition – Table 1; Section 1
-
-
-
-
-
-
-
-
1812
-
1973
-
-
-
-
-
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Directors’ Report
A targeted programme of 317 fine fraction soil samples were collected for low-level detection analysis to
identify any mineralised anomalies was undertaken at the Mt Surprise Project which followed up and was
guided by field observations and assay results highlighted in table 1 above 16. This work identified areas of
copper, cobalt, base metal and important pathfinder minerals beyond the mapped extents of mapped surface
mineralisation in gossans and historic workings (Figure 6 and 7). Importantly, it also identified trends
indicating the direction and potential open extension of mineralisation highlighted in figures 6 and 7 with red
dashed lines.
Figure 6. Copper Cap Prospect. Soil Sampling Plan showing Multi-Element Anomalies over copper soil sample results (in
light green), Molybdenum (Mo), Bismuth (Bi), Cobalt (Co) and Tungsten (W). Trend in mineralisation and potential open
extension in red.
16 ASX Announcement “Soil Sampling Confirms and Extends Significant Copper and Base Metal Mineralisation” dated 3rd May 2023.
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Directors’ Report
Figure 7. Double Barrel Prospect. Soil Sampling Plan showing Pb anomaly (in green) overlain by multi-element anomalies
Silver (Ag), and Zinc (Zn). Trend in mineralisation and potential open extension in red.
During the year, a second exploration permit adjacent to EPM 28052 was applied for and granted based on
the mineralised trends for copper and cobalt in soil sampling conducted in November 202217. The application
and granting of this tenure increased the exploration potential in the Mt Surprise project area (Figure 4).
Metalicity identified multiple new exploration targets derived from a recent review of all available geophysical
survey data over the Mt Surprise project and surrounding areas by exploration consultants Terra Search
based in Townsville18. Regional geophysical datasets were reprocessed and re-interpreted which resulted in
several anomalous regions being delineated, some of which are coincident to the north-south and east-west
mineralized zones identified from the soil sampling highlighted above associated with the Copper Cap
prospect8 (Figure 8).
Figure 8. Magnetic Anomalies highlighted purple, radiometric anomalies highlighted red and gravity anomalies highlighted light blue. Central
corridor of prospectivity as black dashed lines. Shaded Ternary RGBI Magnetic Image (RTP – 1VD – AS – THD) – Mt Surprise.
17 ASX Announcement “New Highly Prospective Exploration Permit” dated 14 December 2022.
18 ASX Announcement “Multiple New Priority New Exploration Targets Identified at Mt Surprise” dated 15 May 2023
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Directors’ Report
Geophysical data re-processing is a cost efficient and effective method of highlighting multiple areas of
interest including localised radiometric and magnetic features as well as a large central corridor of
interest/prospectivity where Metalicity has focussed its exploration activities (Figure 8).
Georgetown
The Georgetown Project, consisting of granted exploration permit EPM28121 19, covers an extensive area
and a wide range of prospective lithologies including the White Springs Granodiorite, Einasleigh
Metamorphics as well as other intrusives, volcanic and non-volcanic metasediments (Figure 9). 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 Australia20 (Figure 9). The entire exploration permit will also undergo a full
geophysical survey data review to assist in generating exploration targets.
Figure 9 - Location of Application EPM 28121 Georgetown Project - North Queensland. 100,000 bedrock geology by Geological
Survey of Qld.
Access to the Georgetown and Mt Surprise Projects was impeded by a significant and prolonged wet season
this year with field work to be undertaken in the near future.
19 ASX Announcement “Highly Prospective Georgetown Lithium Tenement Granted” dated 26 April 2023.
20 ASX Announcement “Refer to https://strategicmetalsaustralia.com/index.php/lithium-caesium-rubidium/”
13
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 divest 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 10 – 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 10), 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 85 – 91 for all Metalicity Ltd Resource Statements, Competent Persons Statements and
Disclaimer and Forward-Looking Statements.
14
Directors’ Report
Results
The net loss after income tax for the year ended 30 June 2023 was $3,766,704 (30 June 2022: loss
$5,207,914).
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 in Western Australia and in Queensland 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
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.
Likely developments and expected results of Operations
The Group will continue to explore and assess its mineral projects.
Risk Management
Risk management is defined by the Group as identifying, assessing and managing risks that have the
potential to materially impact its operations, reputation, people and financial results.
An overview of the material risks facing the group is outlined below. These are not in any particular or and do
not include every risk the Group could encounter while carrying out its business. They are the most significant
risks, which in the Board’s opinion, should be reviewed and monitored by existing and potential shareholders
in the Company.
Activity levels in the Mining Industry may change
The Group’s financial performance is connected to the strength of the mining industry. Mining industry activity
can be volatile, cyclical, and sensitive to a number of factors beyond the control or prediction of the Group. A
decrease in the mining industry may negatively affect the growth prospects, operating results and financial
performance of the Group. The Group attempts to minimise this risk by locating tenements in different
geographical areas that have a variety of resources.
Financing
The Group funds its activities via fund raisings, usually by either a placement or rights issue. The ability to
raise funds is dependent on several factors such as, market conditions and the future potential of the Group.
The Group maintains good relationships with its key stakeholders and broker to ensure fund raisings run as
smoothly as possible.
Reliance on key personnel
The Group’s success is dependent on the continuing efforts of its senior executives and key employees. A
loss of key personnel may impact on corporate knowledge, business relationships and operational continuity.
To mitigate this risk, the Board and management communicate regularly and ensure all members have
access to relevant information.
15
Directors’ Report
Risk Management (continued)
Regulatory risk
The Group is required to maintain a “good standing” and comply with the requirements of a number of industry
regulators to maintain its licences to operate. A change in regulation or a change in the Group’s “standing”
with regulators may adversely impact on the financial performance and /or financial position of the Group.
The Group keeps up to date with proposed regulatory changes to minimise any adverse impact.
Health and safety
Health and safety are inherent in the mining industry environment. These include major safety incidents,
general operational hazards, failure to comply with policies, terrorism and general health and safety. A serious
site safety incident could have an adverse impact on the reputation and financial outcomes for the Group.
The Group reviews health and safety requirements and ensures all steps are taken to maintain compliance.
Joint Venture Partner
The Group has experienced some ongoing issues with its Joint Venture Partner in the Kookynie and
Yundamindra projects. The resources required to deal with these issue risks further delays in carrying the
projects forward. The Group has obtained expert advice to ensure these issues are dealt with in the best way
possible.
Remote locations
The Group holds its tenements in remote locations – outback Western Australia and Queensland. There are
risks inherent in conducting business in such locations, including increased costs, labour shortage and
logistical challenges.
Information on Directors
Justin Barton –
Managing Director and Acting Chairperson– appointed Finance Director on 1
January 2018, Chief Executive Officer on 1 June 2021, Managing Director on 1
January 2022 and acting Chairperson on 25 November 2022.
Experience and Expertise
Mr Barton is a Chartered Accountant with over 25 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 Listed Company Directorships
None
Former Listed Company Directorships in the Last Three Years
None
Interests in Shares and Options
64,599,510 ordinary shares, 1,470,409 listed options, 44,749,000 unlisted options and 50,000,000
performance rights
16
Directors’ Report
Information on Directors (continued)
Roger Steinepreis – Non-Executive Director– appointed as Non-Executive Director on 6 February
2023
Experience and Expertise
Mr Steinepreis is a lawyer and Executive Chairman of Perth based Steinepreis Paganin. He has practiced as
a lawyer for over 35+ years, acting as legal advisor to a number of public companies, particularly in the energy
and resources sector, on a wide range of corporate matters. Mr Steinepreis also brings with him a wealth of
experience and expertise in highly performing and successful businesses and was recently Non-Executive
Chairman of Apollo Consolidated Limited which was subject to a successful takeover by Ramelius Resources
Limited in 2021, and was also recently a Non-Executive Director of ClearVue Technologies Limited and is
currently a Director of Meeka Metals Limited. Mr Steinepreis has been a long-time supporter of Metalicity and
is excited by the future direction of the Company. He is looking forward to bringing fresh ideas and
opportunities to the Company, as well as his extensive experience and expertise.
Other Current Listed Company Directorships
Meeka Metals Limited – Director of the ASX listed company (ASX:MEK)(appointed 6 November 2012)
Former Listed Company Directorships in the Last Three Years
ClearVue Technologies Limited – Non-Executive Director (ASX:CPV and OTC:CVUEF)(appointed on 25
August 2020, resigned on 10 February 2023)
Apollo Consolidated Limited (now Ramelius Resources Limited) – Non-Executive Director (ASX:RMS)
(appointed on 4 August 2009, resigned on December 2021)
Interests in Shares and Options
172,566,666 ordinary shares and 166,666,666 unlisted options
Steven Wood –
Non-Executive Director– appointed as Non-Executive Director on 25 November
2022
Experience and Expertise
Mr Wood has over 15 years of corporate advisory, governance and financial compliance experience in the
mining and resources sector. Mr Wood is a Director of Grange Consulting Group Pty Ltd and specialises in
providing corporate advisory, governance, and financial compliance consulting services to a number of ASX
listed and unlisted entities. Mr Wood is currently Chairman of Uvre Ltd (ASX:UVA) and Company Secretary
for a number of ASX listed entities including Develop Global Ltd (ASX:DVP), Caspin Resources Ltd
(ASX:CPN), Rumble Resources Ltd (ASX:RTR) and 92 Energy Ltd (ASX:92E).
Other Current Listed Company Directorships
Uvre Limited – Director (ASX:UVA)(appointed 12 May 2021)
Former Listed Company Directorships in the Last Three Years
None
Interests in Shares and Options
9,696,666 ordinary shares and 9,696,666 unlisted options
17
Information on Directors (continued)
Directors’ Report
Andrew Daley -
Former Non-executive Chairman – appointed as a Non-Executive Director in
August 2013, Chairman on 18 May 2021 and resigned on 25 November 2022
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 Listed Company Directorships
None
Former Listed Company Directorships in the Last Three Years
None
Interests in Shares and Options (as at date of resignation)
28,425,112 ordinary shares and 1,332,666 listed options
Jason Livingstone - Former Non-Executive Director – appointed 4 July 2022, formerly Technical
Director until 4 July 2022 and resigned on 6 February 2023
Experience and Expertise
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.
Other Current Listed Company Directorships
None
Former Listed Company Directorships in the Last Three Years
Managing Director of Woomera Mining Ltd (ASX:WML) from 16 August 2022 to 22 May 2023
Non-executive for Resource Mining Inc (ASX:RMI) from 4 April 2022 to 20 June 2022
Interests in Shares and Options (as at date of resignation)
23,574,348 ordinary shares
18
Directors’ Report
Company Secretary
Kate Breadmore –
2022 and Joint Company Secretary on 1 December 2022
Joint Company Secretary and Chief Financial Officer – appointed CFO on 4 July
Ms Breadmore is a qualified Chartered Accountant (CA ANZ) with a Bachelor of Commerce from the
University of Western Australia and has over 15 years of experience in a range of financial roles with
Australian and international companies. Ms Breadmore holds a Graduate Diploma of Applied Corporate
Governance issued by the Governance Institute of Australia. Qualifications: BCOM (UWA), CA.
Directors’ meetings
The number of meetings of the Company’s board held during the year ended 30 June 2023 that each Director
was eligible to attend, and the number of meetings attended by each Director were:
Director
Justin Barton
Roger Steinepreis
Steven Wood
Andrew Daley
Jason Livingstone
Number of Meetings
Eligible to attend
Attended
11
5
6
5
6
11
5
6
5
6
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.
19
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.
During the year, Justin Barton was paid $295,000 (excluding superannuation). Justin has a 6 month
notice period.
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.
Non-executive Directors’ and other KMP 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.
Mr Daley was paid $75,000 per annum (including superannuation) for his role as a non-executive Director
and Chairperson. Mr Livingstone was paid $60,000 per annum (excluding superannuation), Mr Steinepreis
and Mr Wood are paid $60,000 per annum (including superannuation) in their role as non-executive directors.
All non-executive Directors may resign or are subject to termination upon receipt of written notice.
Ms Breadmore is paid $12,000 per annum (excluding superannuation) for her role as Joint Company
Secretary, in addition to $120,000 per annum for her role as CFO. Mr Day was paid $5,500 a month based
on 32 hours work and anything over that was 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.
20
Remuneration Report (Audited) (continued)
Directors’ Report
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.
2023
Executive
Justin Barton
Non-executive
Roger Steinepreis
Steven Wood
Andrew Daley
Jason Livingstone
Other executive
Kate Breadmore
Nick Day4
Totals
Short-term
Benefit –
salary &
fees
Short-term
Benefit -
Other
Post-
Employment
Benefit6
Share-based
Payments5
Total
Performance
related %
$
$
$
$
$
295,0001
21,5717
32,4302
36,5473
47,957.
129,495.
40,800.
603,800.
-
-
-
-
-
-
-
-
30,975
58,846
384,821
15.29%
2,265
3,405
3,837
5,035
13,597
-
59,114
-
-
12,112
55,715
9,140
-
135,813
23,836
35,836
52,496
108,707
152,232
40,800
798,728
0.0%
0.0%
23.07%
51.25%
6.0%
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 $170,588 was paid in cash, $114,247 was paid in shares and $10,165 was accrued for.
2 $4,525 was paid in cash, $9,090 was paid in shares and $18,815 was accrued for. Appointed 25 November 2022.
3 $5,245 was paid in cash and $31,302 was paid in shares. Resigned 25 November 2022.
4133 North Trust was paid for Mr Day’s consulting services Resigned 1 December 2022.
5 $116,275 relates to 12 months expense of the performance rights issued in 2020 and 2021, $39,833 relates to a partial expense of Mr
Barton’s 40m performance rights issued during the year and the remaining $9,140 relates to a full expense of Ms Breadmore’s 2m
performance rights issued during the year. (Please refer to share-based payment compensation section below).
6 Relates to Superannuation.
7 $21,571 was accrued for. Appointed 6 February 2023.
2022
Executive
Justin Barton
Jason Livingstone1
Non-executive
Andrew Daley
Other executive
Nick Day2
Totals
Short-term
Benefit –
salary &
fees
Short-term
Benefit -
Other
Post-
Employment
Benefit4
Share-based
Payments3
Total
Performance
related %
$
$
$
$
$
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
-
298,511
86,690
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 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 2022 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.
4 Relates to Superannuation.
21
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 as set out below:
During the financial year, the following performance rights for key management personnel were recognised:
2023
Name
Kate Breadmore
Kate Breadmore
Justin Barton
Justin Barton
Share price
hurdle
No. granted
Grant date
Expiry Date
Value of
Performance Rights
granted at grant
date
$0.0075
$0.0100
$0.0100
$0.0200
1,000,0001
1,000,0002
20,000,0003
20,000,0004
42,000,000.
15/02/2023
15/02/2023
05/05/2023
05/05/2023
15/02/2026
15/02/2026
31/05/2024
31/05/2025
$4,713
$4,427
$17,657
$18,140
$44,937
1 1 million performance rights will vest on 15 February 2023 or such later date, when the closing share price of the Company’s ordinary
shares listed on the ASX has exceeded $0.0075.
2 1 million performance rights will vest on 15 February 2023 or such later date, when the closing share price of the Company’s ordinary
shares listed on the ASX has exceeded $0.01.
3 20 million performance rights will vest on 31 May 2023 or such later date, when the closing share price of the Company’s ordinary
shares listed on the ASX has exceeded $0.01 for at least one trading day.
4 20 million performance rights will vest on 31 May 2023 or such later date, when the closing share price of the Company’s ordinary
shares listed on the ASX has exceeded $0.02 for at least one trading day.
These instruments have been issued during the year, in addition to Mr Barton’s 10m performance rights
accrued in the prior period.
2022
Name
Justin Barton
Justin Barton
Share price
hurdle
No. granted
Grant date
Expiry
Date
Value of
Performance Rights
granted at grant
date
$0.015
$0.025
5,000,0001
5,000,0002
10,000,000.
25/11/2022
25/11/2022
19/12/2025
19/12/2025
$15,000
$17,500
$32,500
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 were accrued as at 30 June 2022 and subsequently issued following shareholder approval
at the AGM.
22
Directors’ Report
Remuneration Report (Audited) (continued)
Share-based compensation (continued)
In addition, during the financial year the following shares and free attaching options were issued to certain
key management personnel as payment in lieu of fees, as approved at the General Meeting held on 5 May
2023:
2023
Name
Justin Barton
Steven Wood
Andrew Daley
2022 – None
2023
Name
Justin Barton
Justin Barton
Steven Wood
Steven Wood
2022 – None
Unpaid
Fees
No. Shares
Issued
Issue price
$114,247
$9,090
$31,302
$154,639
38,082,334
3,030,000
10,434,134
51,546,468
$0.003
$0.003
$0.003
Unpaid
Fees
No. Options
Issued
Exercise
price
Expiry
date
$57,123.50
$57,123.50
$4,545.00
$4,545.00
$123,337.00
19,041,167
19,041,167
1,515,000
1,515,000
41,112,334
$0.006
$0.009
$0.006
$0.009
23/05/2026
23/05/2026
23/05/2026
23/05/2026
23
Directors’ Report
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:
2023
Options
Directors
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
Justin Barton
1,470,409
44,749,000(a)
Roger
Steinepreis
Steven Wood
Andrew
Daley(c)
Jason
Livingstone(c)
Other
executives
Kate
Breadmore
Nick Day
-...
166,666,666(a)
-...
9,696,666(a)
1,332,666(a)
-...
-...
-...
-...
-...
-...
-...
2,803,075...
221,112,332...
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
46,219,409
46,219,409
166,666,666
166,666,666
9,696,666
9,696,666
(1,332,666)
-
-
-
-
-
-
-
-
-
-
-
(1,332,666)
222,582,741
222,582,741
-
-
-
-
-
-
-
-
(a) Options obtained as part of June 2022 Rights Issue (1 option for every 3 shares). Exercisable at $0.01 on or before 1 June 2024.
(b) Options obtained as part of payment in lieu of fees or via private placement as approved at the general meeting held on 5 May 2023.
110,556,166 exercisable at $0.006 and 110,556,166 exercisable at $0.009 on or before 23 May 2026.
(c) Andrew Daley and Jason Livingstone resigned as directors on 25 November 2022 and 6 February 2023 respectively.
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
exercisable
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 1 June 2024.
24
Remuneration Report (Audited) (continued)
Directors’ Report
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:
2023
Performance Rights
Directors
Balance at
the start of
the year
Granted as
remuneration
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
Justin Barton
39,590,220
50,000,000
(39,590,220)
Roger Steinepreis
Steven Wood
-
-
Andrew Daley (a)
5,985,055
Jason Livingstone (a) 37,531,253
-
-
-
-
-
-
-
(37,531,253)
Other executives
Kate Breadmore
Nick Day
-
-
2,000,000
-
-
-
- 50,000,000
-
-
-
(5,985,055)
-
-
-
-
-
-
2,000,000
-
83,106,528
52,000,000
(77,121,473)
(5,985,055) 52,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(a) Andrew Daley and Jason Livingstone resigned as directors on 25 November 2022 and 6 February 2023 respectively.
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
-
-. .
-. .
73,106,528
10,000,000...
-
-
-
-
-
37,531,253
39,590,220
5,985,055
-
83,106,528
-
-
-
-
-
-
-
-
-
-
(a) These vest and are able to be issued from 1 July 2022.
25
Remuneration Report (Audited) (continued)
Directors’ Report
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 KMP, including their personally
related parties, are set out below:
2023
Directors
Justin Barton
Roger Steinepreis(c)
Steven Wood(c)
Jason Livingstone(b)
Andrew Daley(b)
Other executives
Kate Breadmore
Nick Day(b)
Balance at the
start of the year
Acquired during the
year(a)
Other changes
during the year
Balance at the
end of the year
19,850,510
-
-
23,574,348
17,990,978
-
-
44,749,000
166,666,666
9,696,666
-
10,434,134
-
-
-
64,599,510
5,900,000
172,566,666
-
9,696,666
(23,574,348)
(28,425,112)
-
-
-
-
-
-
61,415,836
231,556,466
(46,099,460)
246,862,842
(a) Shares acquired as part of May 2023 private placement or paid in lieu of fees as approved at the general meeting held
on 5 May 2023.
(b) Mr Livingstone, Mr Daley and Mr Day resigned 6 February 2023, 25 November 2022 and 1 December 2022 respectively.
(c) Mr Steinepreis and Mr Wood were appointed on 6 February 2023 and 25 November 2022 respectively.
2022
Balance at the
start of the
year
Acquired on the
exercise of
options/vesting
of performance
Other changes during the year(a)
Balance at
the end of
the year
Directors
Jason Livingstone
Andrew Daley
Justin Barton
Other executives
Nick Day
23,574,348
13,992,982
15,439,284
-
53,006,614
-
-
-
-
-
(a) Shares acquired as part of June 2022 rights issue.
-
23,574,348
3,997,996
17,990,978
4,411,226
19,850,510
-
-
8,409,222
61,415,836
26
Directors’ Report
Remuneration Report (Audited) (continued)
Link between Company performance and Remuneration policy
2023
$
2022
$
2021
$
2020
$
2019
$
Loss after income tax
(3,766,704)
(5,207,914)
(3,170,895)
(1,340,757)
(4,410,376)
Share price at 30 June
Total
dividends
(cents per share)
Basic loss per share (cents per
share)
declared
0.003
-
0.003
-
0.01
-
0.037
-
0.007
-
(0.10)
(0.22)
(0.19)
(0.17)
(0.74)
There is no direct link between the Company performance and Remuneration policy.
(End of Remuneration Report)
27
Directors’ Report
Additional Information
(a) Unissued shares
At the date of this report, the Company had 540,495,949 options and 56,000,000 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
No of Options
Grant Date
Date of Expiry Conversion
35,000,000
21,000,000
20,000,000
243,383,617
110,556,166
110,556,166
540,495,949
12/10/2020
21/06/2021
01/06/2022
01/06/2022
23/05/2023
23/05/2023
13/10/2023
22/06/2024
01/06/2024
01/06/2024
23/05/2026
23/05/2026
Price $
0.0300
0.0150
0.0100
0.0100
0.0060
0.0090
Details
No of Options
Grant Date
Date of Expiry Hurdle Price $ Fair Value per
Performance
Rights
2,000,000
2,000,000
5,000,000
5,000,000
1,000,000
1,000,000
20,000,000
20,000,000
56,000,000
15/02/2023
15/02/2023
25/11/2022
25/11/2022
15/02/2023
15/02/2023
05/05/2023
05/05/2023
15/02/2026
15/02/2026
19/12/2025
19/12/2025
15/02/2026
15/02/2026
31/05/2024
31/05/2025
0.0135
0.0180
0.0150
0.0250
0.0075
0.0100
0.0100
0.0200
Right $
0.00840
0.00790
0.00300
0.00350
0.00470
0.00440
0.00090
0.00907
During the financial year, the Company granted 52 million performance rights for remuneration to select
KMPs (refer to the Remuneration Report forming part of this Directors’ Report) and issued 221,112,332
free attaching options (one option for every two shares) to select KMPs as part of a private placement
for $540,000 and payment in lieu of fees. Refer to Note 16 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
No of Options
Grant Date
Date of
Expiry
Conversion
Price $
Founder Warrants
Founder Warrants – Tranche 2
5,317,250
3,143,250
8,461,000
29/08/2018
28/09/2018
None
None
0.05
0.05
Refer to Note 16 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.
28
Directors’ Report
Additional Information (continued)
(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.
(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 2023 is $33,500 (2022: $4,500).
The Company may decide to employ the auditor on assignments additional to their statutory audit
duties where the auditor’s expertise with the Company is important. Non-audit services were provided
by the Company’s current auditors, Pitcher Partners BA&A Pty Ltd. The Directors are satisfied that the
provision of the non-audit services during the year by the auditor is compatible with the general
standard of independence for auditors imposed by the Corporations Act 2001. Non-audit services
provided do not undermine the general principles relating to auditor independence as set out in APES
110 Code of Ethics for Professional Accountants (including Independence Standards), as they did not
involve reviewing or auditing the auditor’s own work, acting in a management or decision making
capacity for the Company or any of its related entities, acting as an advocate for the Company or any
of its related entities, or jointly sharing risks and rewards in relation to the operations or activities of the
Company or any of its related entities.
(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 2023 Corporate Governance Statement was approved by the Board on 29 August 2023 and is
current at this time. A copy of the Company’s current Corporate Governance Statement and Plan
at
30
year
adopted
https://www.metalicity.com.au/corporate/corporate-governance/.
viewed
during
ended
2023
June
can
the
be
(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 31 of the annual report.
29
Directors’ Report
Additional Information (continued)
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
28 September 2023
30
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 2023, 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
MICHAEL LIPRINO
Executive Director
Perth, 28 September 2023
31
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 2023, 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 2023 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.
Material Uncertainty Related to Going Concern
We draw attention to Note 2(a) in the financial report for the year ended 30 June 2023 which
indicates that the Group incurred a loss after tax of $3,766,704 (2022: $5,207,914) and a net
cash outflow from operating and investing activities of $2,851,976 (2022: $5,063,357). At 30
June 2023, the Group has working capital surplus of $1,895,560 (2022: working capital of
$5,280,473) and current cash holding was $680,553 (2022: $3,060,817).
These conditions, along with other matters as set forth in Note 2(a) indicate the existence of a
material uncertainty that may cast significant doubt about the Group’s ability to continue as a
going concern. Our opinion is not modified in respect of this matter.
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.32
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(r), 2(s), 10
As disclosed in Note 10 of the financial
report, as at 30 June 2023, the Group held
capitalised exploration and evaluation
assets of $7,012,546.
The carrying value of exploration and
evaluation expenditure is assessed for
impairment by the Group when facts and
the
circumstances
exploration and evaluation expenditure
may exceed its recoverable amount.
The determination as to whether there are
any indicators to require an exploration
and evaluation asset to be assessed for
impairment,
involves a number of
management judgments including but not
limited to:
indicate
that
• Whether the Group has tenure of the
tenements;
the
to meet
• Whether the Group has sufficient
funds
tenement
minimum expenditure requirements;
and
• Whether
sufficient
information for a decision to be
made that the area of interest is not
commercially viable.
there
is
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.
Reviewing management’s evaluation and 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.
Assessing the adequacy of the disclosures included within
the financial report.
33
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) & 18
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 volatility of the
underlying security and the appropriateness of the model
used for valuation.
Critically evaluating and challenging 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 within
Note 2(n) for compliance with the requirements of AASB
2 Share-based Payment.
Assessing the adequacy of the disclosures included in the
financial report.
based
represent
payments
Share
$165,247 of the Group’s expenditure.
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.
Under Australian Accounting Standards,
equity settled awards are measured at fair
value on the measurement date taking into
consideration the probability of the vesting
conditions (if any) attached. This amount
is recognised as an expense either
immediately
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:
if
• Estimating the likelihood that the
equity instruments will vest;
• Estimating expected future share
price volatility;
• Expected dividend yield; and
• Risk-free rate of interest.
Due to the significance to the Group’s
financial report and the level of judgment
involved in determining the valuation of
the share based payments, we consider
the Group’s calculation of the share based
payment expense to be a key audit matter.
34
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 2023, but does
not include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and 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
intentional omissions,
involve collusion,
misrepresentations, or the override of internal control.
fraud may
forgery,
• 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.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
35
METALICITY LIMITED
ABN 92 086 839 992
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
METALICITY LIMITED
• 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.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended
30 June 2023. In our opinion, the Remuneration Report of Metalicity Limited, for the year ended
30 June 2023, complies with section 300A of the Corporations Act 2001.
36
METALICITY LIMITED
ABN 92 086 839 992
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
METALICITY LIMITED
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
MICHAEL LIPRINO
Executive Director
Perth, 28 September 2023
37
In the Directors’ opinion:
Directors’ declaration
1.
the financial statements and notes set out on pages 39 to 80 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 2023 and of its
performance for the financial year ended on that date; and
2.
3.
4.
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 20 to 27 of the Directors’ Report comply with
accounting standard AASB 124 Related Party Disclosures and the Corporations Regulations 2001.
The Directors have been given the declarations required by Section 295(A) of the Corporations Act 2001 from
the Chief Financial Officer and the Company Secretary for the year ended 30 June 2023.
This declaration is made in accordance with a resolution of the Directors.
Justin Barton
Managing Director
Perth, Western Australia
28 September 2023
38
Consolidated statement of profit or loss and other comprehensive income
for the financial year ended 30 June 2023
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
2022
2023
$
$
42,273
(3,681,562)
(3,639,289)
-
(3,639,289)
101,483
(5,194,672)
(5,093,189)
-
(5,093,189)
12
(127,415)
(114,725)
(3,766,704)
(5,207,914)
-
-
-
-
Total comprehensive loss for the year
(3,766,704)
(5,207,914)
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
(3,741,618)
(25,086)
(3,766,704)
(5,182,556)
(25,358)
(5,207,914)
(3,639,289)
(102,329)
(3,741,618)
(5,093,189)
(89,367)
(5,182,556)
-
(25,086)
(25,086)
-
(25,358)
(25,358)
(3,741,618)
(25,086)
(3,766,704)
(5,182,556)
(25,358)
(5,207,914)
(3,639,289)
(5,093,189)
(102,329)
(89,367)
(3,741,618)
(5,182,556)
39
Consolidated statement of profit or loss and other comprehensive income
for the financial year ended 30 June 2023
Consolidated Group
2022
2023
$
$
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)
24(a)
24(a)
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)
24(a)
24(a)
-
(25,086)
(25,086)
-
(25,358)
(25,358)
(0.10)
(0.10)
(0.00)
(0.00)
(0.10)
(0.10)
(0.21)
(0.21)
(0.01)
(0.01)
(0.22)
(0.22)
The above consolidated statement of profit or loss and other comprehensive income should be read in
conjunction with the accompanying notes.
40
Consolidated statement of Financial Position
for the financial year ended 30 June 2023
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
Bank Overdraft
Lease liability
Total current liabilities, representing 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
11
9
10
13
14
7(a)
15(a)
17
25
Consolidated Group
2022
2023
$
$
702,519
48,341
1,735,948
-
10,908
2,497,716
7,012,544
7,769
19,527
7,039,840
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
9,537,556
12,582,430
440,152
132,475
21,966
7,563
602,156
757,314
78,758
-
7,212
843,284
8,935,400
11,739,146
64,561,230
-
6,056,558
(61,547,765)
63,725,507
8,578
5,920,745
(57,806,147)
9,070,023
(134,623)
11,848,683
(109,537)
8,935,400
11,739,146
The above consolidated statement of financial position should be read in conjunction with the accompanying
notes.
41
Consolidated statement of changes in equity
for the financial year ended 30 June 2023
Issued
capital
$
Share
Based
Payments
Reserve
$
Accumulated
losses
Non
Controlling
Interest
Total
$
$
$
Balance at 1 July 2022
(Loss) for the year
63,734,085
-
-
5,920,745
-
-
(57,806,147)
(109,537)
11,739,146
(3,741,618)
(25,086)
(3,766,704)
Total comprehensive loss for the year
-
-
(3,741,618)
(25,086)
(3,766,704)
Issue of shares (placement)
Issue of shares (in lieu of fees)
Issue of shares for tenements
Issue of performance rights
Issue costs
540,000
154,639
137,500
-
(4,994)
-
-
-
135,813
-
827,145
135,813
-
-
-
-
-
-
-
-
-
-
-
-
540,000
154,639
137,500
135,813
(4,994)
962,958
Balance at 30 June 2023
64,561,230
6,056,558
(61,547,765)
(134,623)
8,935,400
Issued
capital
$
Share
Based
Payments
Reserve
$
Accumulated
losses
Non
Controlling
Interest
Total
$
$
$
Balance at 1 July 2021
56,023,942
5,485,343
(52,623,591)
(84,179)
8,801,515
(Loss) for the year
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)
-
-
-
393,749
41,653
-
-
-
-
7,710,143
435,402
(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
Balance at 30 June 2022
63,734,085
5,920,745
(57,806,147)
(109,537)
11,739,146
The above consolidated statement of changes in equity should be read in conjunction with the accompanying
notes.
42
Consolidated statement of cash flows
for the financial year ended 30 June 2023
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Other income
Interest expense
Consolidated Group
2022
2023
$
$
Note
(2,140,089)
9,342
-
(6,765)
(3,909,100)
586
1,436
-
Net cash used in operating activities
7(b)
(2,137,512)
(3,907,078)
Cash flows from investing activities
Payment for exploration and in relation to tenements
Payments for acquisition of tenements
Payments for plant and equipment
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
(713,364)
-
(1,100)
(1,150,425)
-
(5,854)
(714,464)
(1,156,279)
538,244
-
-
(20,050)
(46,482)
3,650,751
730,823
8,578
(20,404)
(294,166)
471,712
4,075,582
(2,380,264)
(987,775)
3,060,817
4,048,592
Cash and cash equivalents at the end of the
financial year
7(a)
680,553
3,060,817
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
43
Notes to Financial Statements for the financial year ended 30 June 2023
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 2023 was authorised for issue
in accordance with a resolution of the Board of Directors on 28 September 2023.
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 2023
the Group incurred a loss after tax of $3,766,704 (2022: $5,207,914) and a net cash outflow
from operating and investing activities of $2,851,976 (2022: $5,063,357). At 30 June 2023,
the Group has working capital surplus of $1,895,560 (2022: working capital of $5,280,473)
and current cash holding was $680,553 (2022: $3,060,817).
44
Notes to Financial Statements for the financial year ended 30 June 2023
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:
- On 27 September 2023, a Director agreed to provide a short term funding facility to the
Group, if required, of up to $150,000. The funding may be drawn on 2 business days
notice, and is to be repaid out of the proceeds of any capital raising. Alternatively the
amount provided under the short term funding facility, at the election of the provider,
can be converted to fully paid ordinary shares on the same terms and conditions as any
capital raising event undertaken (subject to shareholder approval, if required);
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 2023 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.
45
Notes to Financial Statements for the financial year ended 30 June 2023
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.
Management Income
Revenue from is recorded monthly in Metalicity’s accounts from the JV management
fee, which comprises of 10% of JV expenses for the month.
46
Notes to Financial Statements for the financial year ended 30 June 2023
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.
47
Notes to Financial Statements for the financial year ended 30 June 2023
2.
Significant accounting policies (continued)
(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.
(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.
48
Notes to Financial Statements for the financial year ended 30 June 2023
2.
Significant accounting policies (continued)
(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 -
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
(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).
49
Notes to Financial Statements for the financial year ended 30 June 2023
2.
Significant accounting policies (continued)
(o) Financial Instruments (continued)
Classification and subsequent measurement (continued)
Financial assets (continued)
For the purpose of subsequent measurement, financial assets 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):
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.
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.
50
Notes to Financial Statements for the financial year ended 30 June 2023
2.
Significant accounting policies (continued)
(o) Financial Instruments (continued)
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings, payables, 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 of financial assets at amortised cost
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 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 eing measured. The valuation
techniques selected by the Group are consistent with one or more of the following valuation
approaches:
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.
51
Notes to Financial Statements for the financial year ended 30 June 2023
2.
Significant accounting policies (continued)
(o) Financial Instruments (continued)
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)
(ii)
if a market that was previously considered active (Level 1) became inactive (Level 2 or
Level 3) or vice versa; or
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.
52
Notes to Financial Statements for the financial year ended 30 June 2023
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 the Canadian subsidiary is Canadian Dollars. Other
entities that are part of the Group have an AUD 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.
53
Notes to Financial Statements for the financial year ended 30 June 2023
2.
Significant accounting policies (continued)
(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 10.
(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).
(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 an 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.
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 land.
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.
54
Notes to Financial Statements for the financial year ended 30 June 2023
2.
Significant accounting policies (continued)
(s) Critical Accounting Estimates and Judgements (continued)
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 18.
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. The Yundamindra and Kookynie projects are under joint control with Nex – see
note 10 for further information.
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 2023, 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. The likely impact of these accounting
standards on the financial statements of the Group have not been determined.
AASB 2021-5 Amendments to Australian Accounting Standards – Deferred Tax related
to Assets and Liabilities arising from a Single Transaction
AASB 2021-5 amends AASB 112 Income Taxes to clarify the accounting for deferred tax
transactions that, at the time of the transaction, give rise to equal taxable and deductible
temporary differences. In specified circumstances, entities are exempt from recognising
deferred tax when they recognise assets or liabilities for the first time. The amendments
clarify that the exemption does not apply to transactions for which entities recognise both an
asset and a liability and that give rise to equal taxable and deductible temporary differences.
55
Notes to Financial Statements for the financial year ended 30 June 2023
2.
Significant accounting policies (continued)
(t) Application of new and revised Accounting Standards not yet effective (continued)
AASB 2021-5 Amendments to Australian Accounting Standards – Deferred Tax related
to Assets and Liabilities arising from a Single Transaction (continued)
This amending standard mandatorily apply 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.
AASB 2021-2: Amendments to Australian Accounting Standards – Disclosure of
Accounting Policies and Definition of Accounting Estimates
AASB 2021-2 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.
AASB 2020-1: Amendments to Australian Accounting Standards – Classification of
Liabilities as Current or Non-current
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.
A liability will be classified as non-current if an entity has the right at the end of the reporting
period to defer settlement of the liability for at least 12 months after the reporting period.
Meaning of settlement of a liability is also clarified.
AASB 2020-1 mandatorily applies to annual reporting periods beginning on or after 1
January 2024 (as amended by AASB 2022-6 and AASB 2020-6) and will first be applied by
the Group in the financial year commencing 1 July 2024.
56
Notes to Financial Statements for the financial year ended 30 June 2023
2.
Significant accounting policies (continued)
(t) Application of new and revised Accounting Standards not yet effective (continued)
AASB 2014-10: Amendments to Australian Accounting Standards – Sale or
Contribution of Assets between an Investor and its Associate or Joint Venture and
AASB 2021-7c Amendments to Australian Accounting Standards – Effective Date of
Amendments to AASB 10 and AASB 128 and Editorial Corrections [deferred AASB 10
and AASB 128 amendments in AASB 2014-10 apply]
AASB 2014-10 amends AASB 10: Consolidated Financial Statements and AASB 128:
Investments in Associates and Joint Ventures to clarify the accounting for the sale or
contribution of assets between an investor and its associate or joint venture by requiring:
(a) a full gain or loss to be recognised when a transaction involves a business, whether it
is housed in a subsidiary or not; and
(b) a partial gain or loss to be recognised when a transaction involves assets that do not
constitute a business, even if these assets are housed in a subsidiary.
These amending standards mandatorily apply to annual reporting periods commencing on
or after 1 January 2025 and will be first applied by the Group in the financial year
commencing 1 January 2025.
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 periods and on foreseeable future
transactions.
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 12.
57
Notes to Financial Statements for the financial year ended 30 June 2023
4. Other Income
An analysis of the Group’s other income for the year is as follows:
Joint arrangement management fee
Finance income
Other
5. Expenses
Accounting & audit
ASX
Company secretarial fees
Consulting fees
Depreciation
Employee benefits
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 2
Other
Total expenses
1 Refer to Note 9.
2 Refer to Note 11.
Consolidated Group
2022
2023
$
$
32,931
9,342
-
42,273
99,461
586
1,436
101,483
Consolidated Group
2022
2023
$
$
100,506
100,154
85,505
55,809
86,690
69,575
403,504
60,697
27,930
26,115
528,314
709,556
21,172
-
1,279,794
306,836
87,157
25,324
49,210
40,250
600,731
698,759
119,069
294
22,760
1,012
393,749
135,813
192,034
81,974
56,171
81,988
1,097,233
190,173
3,681,562
923,679
260,467
5,194,672
58
Notes to Financial Statements for the financial year ended 30 June 2023
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% (2022: 25%)
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
2022
2023
$
$
(3,639,289)
(5,093,189)
(127,415)
(114,725)
(3,766,704)
(5,207,914)
(941,676)
(1,301,979)
34,741
99,054
-
-
906,935
1,202,925
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% (2022: 25%)
Consolidated Group
2022
2023
$
$
23,067,771
21,258,474
(1,338,668)
5,432,276
(2,853,770)
4,601,176
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
$334,667 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.
59
Notes to Financial Statements for the financial year ended 30 June 2023
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
Less: Bank overdraft
Cash and cash equivalents as reported in the
statement of cash flows
Consolidated Group
2022
2023
$
$
702,519
(21,966)
3,060,817
-
680,553
3,060,817
(b) Reconciliation of loss for the year to net cash flows from operating activities
Loss for the year
Share based payments
Foreign exchange gain
Depreciation
Exploration impaired
Exploration written off
Expected credit losses
Receivables written-off
Fair value movement on financial instruments at fair
value through profit and loss
Increase in trade and other receivables and other
assets
(Decrease) in trade and other payables
Increase in provisions
Net cash (used in) operating activities
Consolidated Group
2022
2023
$
$
(3,766,704)
135,813
(168)
26,115
127,583
-
306,836
-
(5,207,914)
393,749
(1,305)
27,930
116,030
8,391
1,279,794
21,172
1,097,233
923,679
(1,950)
(1,257,947)
(115,987)
53,717
(2,137,512)
(233,080)
22,423
(3,907,078)
(c) Non-cash investing and financing activities
During the year, 51,546,468 shares (at $0.003 a share) were issued to certain KMPs as
payment in lieu of fees, with 41,112,334 free attaching options being granted (half
exercisable at $0.006 and the other half at $0.009, both expiring 23 May 2026). In addition,
33,333,334 shares (at $0.003 a share) were issued for the purchase of the Mt Surprise
project (EPM28052) and 12,500,000 shares were issued (at $0.003) as the initial instalment
for the purchase of the Georgetown Project (EPM28121).
60
Notes to Financial Statements for the financial year ended 30 June 2023
7.
Cash and cash equivalents (continued)
(c) Non-cash investing and financing activities (continued)
In the prior 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).
8.
Trade and other receivables
GST Receivable
None of these receivables are past due or impaired.
9. Other financial assets
Nex receivable(1)
Rental security bond
Consolidated Group
2023
$
48,341
2022
$
156,784
Consolidated Group
2023
$
-
10,908
10,908
2022
$
-
20,723
20,723
(1) The Nex receivable comprises $1,586,629 (2022: $1,279,794) being 49% of joint operation
billings raised to Nex under the Joint Venture Agreement (“JV Agreement”) less an expected
credit loss (“ECL”) 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. An
additional $127,904 in interest is due and payable on the receivable, however it is not
recognised in the financial statements as the ECL against the receivable is classified as a
stage 3 (credit impaired) ECL under AASB 9.
Nex receivable
Less: Expected credit loss
Consolidated Group
2023
$
2022
$
1,586,629
(1,586,629)
-
1,279,794
(1,279,794)
-
Consolidated Group
2023
$
2022
$
Nex receivable at the beginning of the period
Plus: 49% of joint operation billings for the period
Nex receivable at the end of the period
1,279,794
306,835
1,586,629
-
1,279,794
1,279,794
61
Notes to Financial Statements for the financial year ended 30 June 2023
10. Exploration and evaluation expenditure
Exploration at cost at the beginning of the period
Acquisition costs(3)
Exploration and evaluation expenditure(2)
Impairment of exploration expenditure (refer note 12)
Written off of exploration expenditure
Exploration and evaluation expenditure
- Interest in joint operation (1)
Exploration and evaluation expenditure - QLD interest
Transfer to financial assets upon billing of cash calls
Closing balance
Consolidated Group
2022
$
5,466,860
-
116,030
(116,030)
(8,391)
2023
$
6,426,763
137,500
127,583
(127,583)
-
342,603
105,678
-
7,012,544
1,034,395
-
(66,101)
6,426,763
Total expenditure incurred and carried forward in respect of specific projects
6,769,365
- Kookynie/Yundamindra Area of interests Assets
- Other
243,179
7,012,544
Total carried forward exploration expenditure
6,426,763
-
6,426,763
(1) 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. Metalicity is the Manager of the JV, as such
the principle place of business for the joint operation is from Metalcity’s office.
(2)
In the prior year, included in expenditure incurred during the period is an amount of $66,895,
representing unbilled cash calls to Nex.
(3) During the year 33,333,334 shares (at $0.003 a share) were issued for the purchase of the
Mt Surprise project (EPM28052) and 12,500,000 shares were issued (at $0.003) as the initial
instalment for the purchase of the Georgetown Project (EPM28121). Refer note 7(c).
Metalicity’s share of joint operations in its joint venture with Nex is as follows:
Current assets
Cash and cash equivalents
Cash calls receivable from Nex
Total current assets
Current liabilities
Loan payable to Metalicity
Total current liabilities
Joint Venture net assets
51% share of Joint Venture net assets
Joint Operation
2023
$
2022
$
571
1,586,630
1,587,201
1,454,259
1,454,259
132,942
67,800
100,442
1,279,794
1,380,236
1,134,515
1,134,515
245,721
125,317
62
Notes to Financial Statements for the financial year ended 30 June 2023
10. Exploration and evaluation expenditure (continued)
The Group’s share of exploration and evaluation in its joint operation is $1,445,794 as at 30 June
2023 (2022: $1,103,193). 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.
11. Financial Assets at Fair Value through Profit & Loss
Shares in listed Corporations
Consolidated Group
2022
2023
$
$
2,838,053
1,735,948
The Group held 91,365,685 shares in Nex at 30 June 2023. This financial asset is carried at fair
value through profit and loss for year ended 30 June 2023 (30 June 2022: 91,550,106 shares in
Nex).
Opening balance – at fair value
(Subtractions)/Additions – at fair value
Fair value adjustment
Closing balance – at fair value
Consolidated Group
2022
2023
$
$
105,922
3,655,810
(923,679)
2,838,053
2,838,053
(4,872)
(1,097,233)
1,735,948
The revaluation of the shares to the above value resulted in a $1,097,233 loss that flowed through
the P&L as a “Fair Value movement on financial instruments at fair value through profit and loss”.
12. Discontinued operations
Kimberley Mining Limited – Admiral Bay Project
Transfer of foreign currency translation reserve to profit
and loss (discontinued operation)
Consolidated Group
2022
2023
$
$
116,030
127,583
(168)
127,415
(1,305)
114,725
During the 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.
63
Notes to Financial Statements for the financial year ended 30 June 2023
12. Discontinued operations (continued)
(i) Financial performance information
Exploration and evaluation expenses
Impairment of exploration and expenditure assets
Gain on transfer of foreign currency translation reserve
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
(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.
13. Trade and other payables
Trade payables and accruals
Superannuation
PAYG payable
JV Payable – MCT shortfall
Consolidated Group
2022
$
-
(116,030)
1,305
(114,725)
-
(114,725)
2023
$
-
(127,583)
168
(127,415)
-
(127,415)
Consolidated Group
2022
2023
$
$
-
(127,583)
-
(127,583)
-
(116,030)
-
(116,030)
Consolidated Group
2022
2023
$
$
22,273
22,273
(706,044)
(683,771)
22,105
22,105
(578,462)
(556,357)
Consolidated Group
2022
2023
$
$
690,857
315,450
-
3,038
22,668
56,719
64,945
-
991,699
440,152
64
Notes to Financial Statements for the financial year ended 30 June 2023
14. Provisions
Employee benefits – annual leave
15.
Issued capital
(a)
Issued share capital
3,736,085,806
ordinary shares
Shares to be issued (2022: 2,144,500)
(2022: 3,458,393,356)
fully paid
(b) Movement in ordinary share capital
Date
Details
Consolidated Group
2022
2023
$
$
132,475
78,758
2023
$
2022
$
64,561,230
-
64,561,230
63,725,507
8,578
63,734,085
Number of
shares
$
01/07/2022 Opening balance
3,458,393,356
63,725,507
22/02/2023
Various*
20/10/2022
Nex takeover (65,000 Nex shares)
Issued to Astralis for Mt Surprise
Purchase (EPM 28052)
Initial consideration for Georgetown
purchase
Private placement and payment in
lieu of fees
Share issue costs (offset by prior
period adjustment)
30/06/2023 Balance at the end of the year
June 2023
May 2023
Date
Details
01/07/2021 Opening balance
March 2022 Option exercise at $0.004
Various*
Nex takeover (87,476,177 Nex
shares)
01/06/2022 Rights Issue at $0.005
Share issue costs
30/06/2022 Balance at the end of the year
312,650
33,333,334
1,950
100,000
12,500,000
37,500
231,546,466
694,639
1,634
3,736,085,806
64,561,230
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
65
Notes to Financial Statements for the financial year ended 30 June 2023
15.
Issued capital
(b) Movement in ordinary share capital (continued)
* As part of the takeover bid of Nex Metals Explorations Pty Ltd (“Nex”), the Company offered Nex shareholders,
4.81 Metalicity shares for every 1 share held in Nex.
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.
16. Options, Performance Rights and Warrants
(a) (i) Options
At year end 30 June 2023, the Company had 540,495,949 options over ordinary shares
under issue (30 June 2022: 370,093,084). These options are exercisable as follows:
30 June 2023
Details
No of Options
Grant Date
Date of
Expiry
Conversion
Price $
Management Incentive Options
Other Options
110,556,166
110,556,166
35,000,000
21,000,000
263,383,617
540,495,949
24/05/2023 24/05/2026
24/05/2023 24/05/2023
12/10/2020 13/10/2023
21/06/2021 22/06/2024
01/06/2022 01/06/2024
0.006
0.009
0.030
0.015
0.010
30 June 2022
Details
Other Options
No of Options
Grant Date
Date of
Expiry
Conversion
Price $
25,709,467
25,000,000
35,000,000
21,000,000
263,383,617 (1)
370,093,084 (2)
21/02/2018 14/02/2023
13/08/2020 14/08/2022
12/10/2020 13/10/2023
21/06/2021 22/06/2024
01/06/2022 01/06/2024
0.080
0.003
0.030
0.015
0.010
(1)
Included in this amount are 243,383,617 free attaching options (one option for every three shares) as part of a capital raising for
$3,650,751. No fair value attributable to these options are these were listed options issued during the prior 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.
(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 2023
Free attaching
options
Number
Grant
Date
Expiry Date
Exercise
Price
Fair Value at
Grant Date
Issued 23/05/2023
110,556,166 23/05/2023
23/05/2026
Issued 23/05/2023
110,556,166 23/05/2023
23/06/2026
$0.006
$0.009
$173,714
$156,043
66
Notes to Financial Statements for the financial year ended 30 June 2023
16. Options, Performance Rights and Warrants (continued)
(a)
(ii) Free attaching options (continued)
30 June 2022
Free attaching
options
Number
Grant
Date
Expiry Date
Exercise
Price
Fair Value at
Grant Date
Issued 01/06/2022
243,383,617 01/06/2022
01/06/2024
$0.01 $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
(b) Performance Rights
2023
No.
370,093,084
221,112,332
-
(50,709,467)
540,495,949
2022
No.
373,665,570
263,383,617
(182,705,631)
(56,371,713)
370,093,084
At year ended 30 June 2023, the Company had 56,000,000 performance rights over ordinary
shares under issue (30 June 2022: 96,084,110). 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 2023
Details
No of Options Grant Date
Performance Rights
Total
30 June 2022
Details
2,000,000
2,000,000
5,000,000
5,000,000
1,000,000
1,000,000
20,000,000
20,000,000
56,000,000
15/02/2023
15/02/2023
25/11/2022
25/11/2022
15/02/2023
15/02/2023
05/05/2023
05/05/2023
No of Options Grant Date
Performance Rights
Sub-total - on issue
Performance Rights –
to be issued
Sub-total – to be issued
Total
15,650,000
29,679,144
36,754,966
82,084,110
2,000,000
2,000,000
5,000,000
5,000,000
14,000,000
96,084,110
25/11/2019
26/11/2020
26/11/2020
20/09/2021
20/09/2021
30/06/2022
30/06/2022
Date of
Expiry
15/02/2026
15/02/2026
19/12/2025
19/12/2025
15/02/2026
15/02/2026
31/05/2024
31/05/2025
Hurdle Price
$
0.0135
0.0180
0.0150
0.0250
0.0075
0.0100
0.0100
0.0200
Date of
Expiry
30/01/2023
18/12/2022
18/12/2022
11/04/2025
11/04/2025
30/06/2025
30/06/2025
Hurdle Price
$
0.0500
0.0400
0.0600
0.0135
0.0180
0.0150
0.0250
67
Notes to Financial Statements for the financial year ended 30 June 2023
16. Options, Performance Rights and Warrants (continued)
(b) Performance Rights (continued)
Movements in performance rights 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
2023
No.
96,084,110
-
42,000,000
-
(82,084,110)
56,000,000
2022
No.
82,084,110
-
14,000,000
-
-
96,084,110
As at 30 June 2023, there were 31,128,738 in issued common shares in Kimberly Mining
Limited and 8,461,000 under warrants (30 June 2022: 31,128,738 common shares and
8,461,000 warrants). These warrants are exercisable/convertible as follows:
Details
No of Warrants Date of Expiry
Founder Warrants
Founder Warrants – Tranche 2
5,317,250
3,143,750
8,461,000
None
None
Conversion
Price $
0.05
0.05
Founder warrants are convertible to 1 ordinary share in Kimberly Mining Limited upon
exercise.
Balance at beginning/end of the period
(d) Capital Management
2023
No.
8,461,000
2022
No.
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.
68
Notes to Financial Statements for the financial year ended 30 June 2023
17. Reserves
Consolidated
2023
$
6,056,558
-
6,056,558
Shared based payment reserve
Foreign currency translation reserve
Total
Movement of Shared based payment reserve
Balance at 30 June 2021
Performance rights and options issued in the 2022 year
(note 18b)
Performance rights and options issued in the 2021 year
Balance at 30 June 2022
Issue of performance rights in the 2023 year
Issue of performance rights in the 2022 year
Balance at 30 June 2023
Movement of Foreign currency translation reserve
Balance at 30 June 2021/1 July 2022
Foreign currency translation reserve movement during the period
Transfer of foreign currency translation reserve to profit and loss
(discontinued operation)
Balance at 30 June 2023
2022
$
5,920,745
-
5,920,745
30 June
$
5,485,343
87,893
347,509
5,920,745
19,537
116,275
6,056,558
30 June
$
-
(30,583)
30,583
-
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.
69
Notes to Financial Statements for the financial year ended 30 June 2023
17. 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 2023
At 30 June 2023, the Company recognised an expense of $135,813, comprising $19,538 for
42,000,000 performance rights provided to employees during the period and part expense
of $116,275 for performance rights issued an prior periods.
Options/Performance
Rights
Performance rights
Number
Grant
Date
Expiry
Date
Exercise
Price
Fair Value at
Grant Date
1,000,000 09/05/2022 21/02/2026
1,000,000 09/05/2022 21/02/2026
20,000,000 05/02/2023 31/05/2024
20,000,000 05/02/2023 31/05/2025
42,000,000
$0.0075
$0.0100
$0.0100
$0.0200
$0.04700
$0.04400
$0.0009
$0.000907
Refer to note 18(b)(i) for further details.
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
Performance rights
Not issued yet
Not issued yet
Not issued yet
Not issued yet
Options
Issued on 01/06/2022
Number
Grant
Date
Expiry
Date
Exercise
Price
Fair Value at
Grant Date
2,000,000 20/09/2021 11/04/2025
2,000,000 20/09/2021 11/04/2025
5,000,000 25/11/2022 19/12/2025
5,000,000 25/11/2022 19/12/2025
$0.0135
$0.0180
$0.0150
$0.0250
$0.00840
$0.00790
$0.003
$0.0035
14,000,000
20,000,000 01/06/2022 01/06/2024
$0.0100
$0.00208
Refer to note 18(b)(ii) for further details.
70
Notes to Financial Statements for the financial year ended 30 June 2023
17. Reserves (continued)
(b) Types of share-based payment plans
(i) 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 $135,813 share based payments relating to performance rights in 2023
(2022: $393,749).
30 June 2023
No of Performance Rights
Grant date
Share price
Exercise price
Risk-free interest rate
Expiry date
Volatility(3)
Fair value at grant date
(cents)
Life
1,000,000(1)
01/07/2022
$0.005
$0.0075
3.087%
21/02/2026
90%
1,000,000(1) 20,000,000(2) 20,000,000(2)
05/02/2022
02/02/2023
01/07/2022
$0.002
$0.002
$0.005
$0.02
$0.01
$0.01
3.33%
3.33%
3.087%
31/05/2025
31/05/2024
21/02/2026
170%
209%
90%
$0.047
$0.044
$0.0009
$0.000907
1,095 days
1,095 days
365 days
730 days
(1) Performance rights were granted and issued to an employee during the period. The performance rights
can be exercised from 4 January 2023 when the closing share price of the Company’s ordinary shares
have exceeded $0.0075 (initial 1 million) and $0.01 (final 1 million). The employee had to be with the
Company for at least 6 months, which passed on 4 January 2023.
(2) Performance rights were granted and issued to an employee during the period. The performance rights
can be exercised from 31 May 2023 when the closing share price of the Company’s ordinary shares has
exceeded $0.01 (initial 20 million) and $0.02 (final 20 million) for at least 1 trading day on the ASX
(3) Volatility is calculated based on historical ASX share prices.
30 June 2022
No of Performance Rights
Grant date
Share price
Exercise price
Risk-free interest rate
Expiry date
Volatility(3)
Fair value at grant date
(cents)
Life
2,000,000(3)
20/09/21
$0.009
$0.014
0.17%
11/04/25
90%
2,000,000(3)
20/09/21
$0.009
$0.018
0.17%
11/04/25
90%
5,000,000(4)
30/06/22
$0.003
$0.015
3.205%
30/06/25
90%
5,000,000(4)
30/06/22
$0.003
$0.025
3.205%
30/06/25
90%
0.0084
0.0079
0.0016
0.0011
1,095 days
1,095 days
1,095 days
1,095 days
(4) 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.
(5) Performance rights were granted to a KMP, Justin Barton, during the period. These remain unissued
at 30 June 2022. 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.
71
Notes to Financial Statements for the financial year ended 30 June 2023
17. Reserves (continued)
(b) Types of share-based payment plans (continued)
(ii) Options
30 June 2023 - None
30 June 2022
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 prior financial year ended, 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)
20,000,000
01/06/2022
$0.0045
$0.0100
2.63%
Nil
01/06/2024
122%
$0.0020
(c) Summary of options granted
The following table illustrates the number and weighted average exercise price (WAEP) of,
and movements in, share options issued during the year:
Outstanding at the beginning of the year
126,709,467
0.002
373,665,570
0.012
2023
No
2023
WAEP
2022
No
2022
WAEP
Granted during the year
Exercised during the year
-
-
-
-
20,000,000
0.0005
(182,705,631)
Expired/forfeited/cancelled during the year
(50,709,467)
Outstanding at the end of the year
76,000,000
0.003
0.008
(84,250,472)
126,709,467
0.005
0.009
0.002
72
Notes to Financial Statements for the financial year ended 30 June 2023
17. Reserves (continued)
(d) Weighted average of remaining contractual life
The weighted average remaining contractual life for the share options outstanding as at 30
June 2023 is 1.69 years (2022: 1.14 years).
The weighted average remaining contractual life for the performance rights outstanding as
at 30 June 2023 is 1.58 years (2022: 2.17 years)
(e) Range of exercise price
The range of exercise prices for options outstanding at the end of the year was $0.003-
$0.015 (2022: $0.003-$0.08). The performance rights do not have an exercise price.
(f) Weighted average fair value
The weighted average fair value of options granted during the year, excluding free attaching
options, was $0.008 (2022: $0.002).
The weighted average fair value of performance rights granted during the year was $0.003
(2022: $0.003)
(g) Share options exercised during the year
The following options were exercised during the year.
30 June 2023
Option Series
Number
Grant
Date
Expiry
Date
Exercise
Price
-
-
30 June 2022
Option Series
Number
Grant
Date
Expiry
Date
Exercise
Price
Fair Value
at Grant
Date
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
73
Notes to Financial Statements for the financial year ended 30 June 2023
18. 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.
(a) Interest Rate Risk
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 2023
Financial Assets
Cash and deposits
Trade and other
receivables
Financial asset at FV
through P&L
Nex cash call
Other financial assets
Weighted average
interest rate
Financial liabilities
Bank overdraft
Trade and other
payables
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
698,110
-
-
1,586,629
10,636
2,295,375
2.794%
-
-
-
2,967,635
-
-
20,723
2,988,358
0.035%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,410
702,520
48,342
48,342
1,735,948
1,735,948
272
1,788,975
1,586,629
10,908
4,084,346
2.794%
21,966
21,966
326,248
326,248
348,214
348,214
93,182
3,060,817
156,784
156,784
2,838,053
2,838,053
-
3,088,019
20,723
6,076,377
0.035%
707,265
707,265
707,265
707,265
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 +/- $22,954 (2022: $29,884)
impact on the Group’s income and operating cash flows. At this time, no detailed sensitivity
analysis is undertaken by the Group.
74
Notes to Financial Statements for the financial year ended 30 June 2023
18. 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 91,365,685 shares in Nex valued at $1,735,948 as at 30 June 2023 (2022:
91,550,106 shares valued at $2,838,053). Refer to note 11.
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
Credit risk
Consolidated
2023
$
173,595
(173,595)
2022
$
283,805
(283,805)
30 June 2023
Financial Assets
Cash & deposits
Trade and other receivables
Other financial assets:
Rental security bond
Nex Receivable
Lifetime Expected Credit Loss
Subtotal – other financial
assets
Current
$
>30 days
$
>60 days
$
>90 days
$
Other
$
Total
$
702,520
48,342
-
-
-
-
750,862
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
702,520
48,342
1,586,629
(1,586,629)
- 10,908
-
-
- 10,908
10,908
-
-
10,908
- 10,908
761,770
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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,060,817
156,784
-
1,279,794
(1,279,794)
20,723
-
-
20,723
-
-
-
-
20,723
20,723
20,723
3,238,324
75
Notes to Financial Statements for the financial year ended 30 June 2023
18. 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
(2022: 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. This enables
it to meet commitments and remain a going concern.
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
2023
$
2022
$
2023
$
2022
$
2023
$
2022
$
Financial liabilities due for
payment
Trade and other payables
Bank overdraft
Lease liabilities
Total expected outflows
Financial asset - cash flows
realisable
Cash and cash equivalent
Trade, term and loan receivables
Financial assets at fair value
through profit & loss
Rental Security bond
Total anticipated inflows
Net (outflow)/inflow on financial
instruments
326,248
21,966
7,563
707,265
-
7,212
355,777
714,477
702,520
48,342
3,060,817
156,783
1,735,948
10,908
2,838,054
20,723
2,497,718
6,076,377
2,141,941
5,361,900
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
326,248
21,966
7,563
707,265
-
7,212
355,777
714,477
702,520
48,342
3,060,817
156,784
1,735,948
10,908
2,838,053
20,723
2,497,718
6,076,377
-
2,141,941
5,361,900
76
Notes to Financial Statements for the financial year ended 30 June 2023
19. Key management personnel disclosures
Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Share based payments
Consolidated Group
2023
2022
$
603,800
59,114
135,813
798,727
$
767,938
66,001
298,511
1,132,450
Detailed remuneration disclosures are provided in the Remuneration Report in the Directors’
Report.
Apart from the Company’s Directors and Officers, the Group had 2 employees as at 30 June 2023
(30 June 2022: 2 employees).
20. 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
2023
$
2022
$
49,850
49,000
1,540
5,773
33,500
4,500
86,390
59,273
From 2021, the auditors of Metalicity Limited and its subsidiaries has been Pitcher Partners BA&A
Pty Limited.
21. Contingent liabilities
The Group has no contingent liabilities as at 30 June 2023 (2022: Nil).
77
Notes to Financial Statements for the financial year ended 30 June 2023
22. 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
23. Related Party transactions
(a) Key management personnel
Consolidated Group
2023
2022
$
643,040
-
-
643,040
$
508,478
-
-
508,478
During the year ended 30 June 2023, there were no related party transactions with key
management personnel, other than that disclosed in note 20, in the detailed remuneration
disclosures in the Directors Report and set out below:
- Steinepreis Paganin completed $64,000 in legal work for the Group during the year. Roger
Steinepries is the Executive Chairman of the company.
- Grange Consulting Group Ltd were paid $24,255 for consulting fees by the Group during
the year. Steven Wood is a director and shareholder of the company.
(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 2023 (2022: $Nil) except
for $3,497 due to Steinepries Paganin for June 2023 legal fees.
78
Notes to Financial Statements for the financial year ended 30 June 2023
24. Earnings per share
(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
Consolidated Group
2023
Cents
2022
Cents
(0.10)
(0.10)
(0.10)
(0.10)
(0.22)
(0.22)
(0.21)
(0.21)
2023
$
2022
$
(3,639,289)
(5,093,189)
(127,415)
(3,766,704)
(114,725)
(5,207,914)
2023
Number
2022
Number
3,731,166,449
2,411,475,003
-
-
3,731,166,449
2,411,475,003
As the Group made a loss for the years ended 30 June 2023 and 30 June 2022, the options on
issue have no dilutive effect. Therefore, dilutive loss per share is equal to basic loss per share.
25. Group entities
Country of
incorporation
Interest
2023
Interest
2022
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)
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 ~1.51% of the net assets of the Group, being $134,623 at 30 June 2023 (2022: $109,537). Please refer
to note 13 for further details on the summarised financial information of KML.
79
Notes to Financial Statements for the financial year ended 30 June 2023
26. Parent entity information
Statement of financial position
ASSETS
Total current assets
Total non-current assets
TOTAL ASSETS
LIABILITIES
Total current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Other reserves
Shares to be issued
Accumulated losses
TOTAL EQUITY
Parent
2023
$
9,278,415
46,916
Parent
2022
$
12,570,599
50,810
9,424,611
12,621,409
537,527
843,544
537,527
843,544
8,887,084
11,777,865
64,561,232
4,031,389
-
(59,705,537)
63,725,507
3,895,576
8,578
(55,851,796)
8,887,084
11,777,865
Loss of the parent entity
(3,917,617)
(5,117,423)
Total comprehensive loss of the parent entity
(3,917,617)
(5,117,423)
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.
27. Subsequent events
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.
80
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 28 September 2023.
(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
Total Holders Ordinary Fully Paid
% Issued Capital
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
677
306
107
1,575
2,339
5,004
Shares
287,872
750,269
848,668
81,502,155
3,652,696,842
3,736,085,806
There were 205,796,662 unmarketable parcels of ordinary shares.
0.01
0.02
0.02
2.18
97.77
100.00
(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
Listed Options
% of Listed Options
29
60
76
270
177
612
9,117
188,622
603,842
12,205,387
250,376,649
263,383,617
0.00
0.07
0.23
4.63
95.06
100.00
There were 35,202,333 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
Unlisted Options*
-
-
-
-
4
4
-
-
-
-
277,112,332
277,112,332
% of Unlisted Options
-
-
-
-
100.00
100.00
* There are two holders with over 20% of total unlisted options: CG Nominees (Australia) Pty Ltd with 56,000,000
(20%) and Genteel Nominees Pty Ltd (50% controlled by Roger Steinepreis) with 166,666,666 (60%).
81
ASX Additional Information
(c) Distribution of Equity Security Holders (continued)
(iv) Unquoted Performance Rights
Category
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Total
Holders
Unlisted
Performance Rights*
-
-
-
-
3
3
-
-
-
-
56,000,000
56,000,000
% of Unlisted
Performance Rights
-
-
-
-
100.00
100.00
(d) Equity Security Holders
(i) Ordinary Shares
The names of the twenty largest ordinary fully paid shareholders at 28 September 2023 are:
1
2
3
4
5
6
7
8
9
GENTEEL NOMINEES PTY LTD
HISHENK PTY LTD
BNP PARIBAS NOMS PTY LTD
COVENTINA HOLDINGS PTY LTD
CITICORP NOMINEES PTY LIMITED
E C DAWSON SUPER PTY LTD
MR MARK EDWIN ROBERTS
MR KELVIN CORBETT
FMR INVESTMENTS PTY LIMITED
10 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
11
12
WESTERN AUSTRALIAN HOLDINGS PTY LTD
MR ANDREW DALEY & MRS INEKE DALEY
13
FIRST LIGHT NOMINEES PTY LTD
14 UPSKY EQUITY PTY LTD
15 NEPALULURU PTY LTD
16 CG NOMINEES (AUSTRALIA) PTY LTD
17 MR DAVID KENLEY
18
TERRA FORTUNA SDN BHD
19 MR CAJETAN FRANCIS MASCARENHAS
20 MR VARUN KAFLEY
Total Top 20
Total other holders
Total shares on issue
Number Held
166,666,666
110,000,000
82,638,849
64,599,511
57,669,014
46,000,000
40,000,000
37,700,000
32,708,000
30,875,907
28,860,005
28,425,112
27,898,005
26,999,339
26,000,000
25,000,000
24,765,923
23,687,480
23,500,009
21,950,000
Percentage of
Issued Shares
4.46
2.94
2.21
1.73
1.54
1.23
1.07
1.01
0.88
0.83
0.77
0.76
0.75
0.72
0.70
0.67
0.66
0.63
0.63
0.59
925,943,820
2,810,141,986
3,736,085,806
24.78
75.22
100.00
82
ASX Additional Information
(d) Equity Security Holders (continued)
(ii) Listed Option Holders
The names of the twenty largest listed option holders shareholders at 28 September 2023 are:
Number Held
Percentage of
Issued Shares
1
2
3
4
5
6
7
8
8
9
9
EUTHENIA TYCHE PTY LTD
CG NOMINEES (AUSTRALIA) PTY LTD
MR PAUL-JOHN CRAWFORD GERBER
PAUL THOMSON FURNITURE PTY LTD
MR MD AKRAM UDDIN
MR PETER KARL LAIS
MR SHAFIQUL ISLAM
MR MARK RICHARD JENSEN
EQUITY TRUSTEES SUPERANNUATION LIMITED
MR CLEMENT FREDERICK DEVINE
MR MD MUNTASIR BILLAH
10 HISHENK PTY LTD
11 SKYWALKER HOLDINGS WA PTY LTD
11 SHEZAPPLES PTY LTD
12 SHANTO PTY LTD
13 MR CAJETAN FRANCIS MASCARENHAS
14 SUPERHERO SECURITIES LIMITED
15 MR MARK EDWIN ROBERTS
16 MR ROSS DIX HARVEY
17 APT CONTRACTORS PTY LTD
18 MRS LAI SUN KEANE
19
E C DAWSON SUPER PTY LTD
20 BVB CUSTODIAN PTY LTD
Total top 20
Total other holdings
Total Listed Options on issue
20,100,000
20,000,000
15,000,000
8,508,572
8,500,005
9,216,436
6,126,800
6,000,000
6,000,000
5,000,000
5,000,000
4,761,906
4,049,760
4,049,760
3,900,762
3,637,199
3,416,674
3,333,334
3,200,000
3,000,000
2,879,829
2,699,840
2,474,211
149,855,088
113,528,529
263,383,617
7.63
7.59
5.70
3.23
3.23
3.12
2.33
2.28
2.28
1.90
1.90
1.81
1.54
1.54
1.48
1.38
1.30
1.27
1.21
1.14
1.09
1.03
0.94
56.90
43.10
100.00
83
ASX Additional Information
(e) Unquoted Securities
(i) Unlisted Options
Class
Expiry Date
MCTOP47
MCTOP48
MCTOP49
MCTOP50
Total
13 Oct 2023
22 Jun 2024
24 May 2026
24 May 2026
No. of
Holders
1
1
3
3
Exercise
Price
$0.003
$0.015
$0.006
$0.009
No. of
Options
35,000,00021
21,000,00021
110,556,166 22
110,556,16622
277,112,332. .
(ii) Unlisted Performance Rights
Class
Expiry Date
MCTPERF8
MCTPERF9
MCTPERF5
MCTPERF5A
MCTPERF6
MCTPERF7
MCTPERF10
MCTPERF11
Total
21 February 2026
21 February 2026
19 December 2025
19 December 2025
21 February 2026
21 February 2026
31 May 2024
31 May 2025
No. of
Holders
1
1
1
1
1
1
1
1
Vesting at
$0.0135
$0.0180
$0.0150
$0.0250
$0.0075
$0.0100
$0.0100
$0.0200
No. of
Options
2,000,00023
2,000,00023
5,000,00024
5,000,00024
1,000,00025
1,000,00025
20,000,00024
20,000,00024
56,000,000. .
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.
21 CG Nominees Australia Pty Ltd owns 100%
22 Genteel Nominees Pty Ltd (Roger Steinepreis controls 50% of) owns 83,333,333, Coventina Holdings Pty Ltd
(a company controlled by Justin Barton) owns 22,374,500 and Nardie Group Pty Ltd (a company controlled by
Steven Wood) owns 4,848,333
23 Stephen Guy owns 100%
24 Coventina Holdings Pty Ltd owns 100%
25 Kate Breadmore owns 100%
84
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 2023 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.
Indicated and Inferred Mineral Resource Estimate Subdivided by Deposit
Deposit
Leipold
Champion
McTavish
Total
Indicated
Tonnes
(kt)
Au Grade
(g/t)
Ounces
Tonnes
450
1.3
19,000
-
-
-
-
-
-
450
1.3
19,000
1,130
Inferred
Au Grade
(g/t)
1.7
1.7
2.0
1.7
(kt)
630
380
120
19,000
62,000
81,000
Ounces
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
No change in the mineral resource estimate from last year.
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.
85
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 2023 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 NFM at contact
w/CFM
Mod Zn, Low Pb CFM at contact
w/NFM
Low Zn, High Pb NFM below MZ11
Mod Zn, Low Pb CFM above MZ12
Low Zn, High Pb NFM/GFM contact
Mod Zn, Low Pb CFM above MZ30
All
Total – Combined Zones
95
23
40
2
10
0.5
170
3.0
5.7
1.6
29
2.7
3.6
0.6
17
3.4
2.7
3.9
2.7
4.1
1.7
5.1
4.4
0.8
0.2
9.5
4.1
1.1
19
28
20
22
4.1
2.7
25
10
9
2
15
1
8.1
4.7
7.2
6.0
17
10.0
1
5.9
7.5
86
ASX Additional Information
Mineral Resource Estimate Subdivided by Modelling Domains (continued)
Notes:
•
•
•
•
•
•
•
•
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.
87
Disclaimer and Forward-Looking Statements
ASX Additional Information
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.
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.
88
Competent Person Statements
ASX Additional Information
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.
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 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 2023. 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.
89
ASX Additional Information
(f) Tenement List:
As at 28 September 2023
Tenement Registered Holder
Kookynie
P40/1331
KYM Mining Limited
E40/390
KYM Mining Limited
E40/350
KYM Mining Limited
E40/357
KYM Mining Limited
E40/401
KYM Mining Limited
P40/1407
KYM Mining Limited
P40/1430
KYM Mining Limited
P40/1510 Metalicity Limited
P40/1511 Metalicity Limited
E40/387
Metalicity Limited
Shares
Held
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
G40/3
L40/9
Nex Metals Explorations Limited
100/100
Nex Metals Explorations Limited
100/100
E40/332
Nex Metals Explorations Limited
100/100
M40/22
M40/27
M40/61
Nex Metals Explorations Limited
100/100
Nex Metals Explorations Limited
100/100
Nex Metals Explorations Limited
100/100
90,405/
90,405
M40/77
Nex Metals Explorations Limited
P40/1499
Nex Metals Explorations Limited
100/100
P40/1500
Nex Metals Explorations Limited
100/100
P40/1501
Nex Metals Explorations Limited
100/100
E40/289
Paris Enterprises Pty Ltd
100/100
Kookynie Total Area (ha)
Yundamindra
L39/34
L39/52
Nex Metals Explorations Limited
100/100
Nex Metals Explorations Limited
96/96
L39/258
Nex Metals Explorations Limited
100/100
M39/84
Nex Metals Explorations Limited
100/100
M39/274
Nex Metals Explorations Limited
100/100
M39/406
Nex Metals Explorations Limited
100/100
M39/407
Nex Metals Explorations Limited
100/100
M39/408
Nex Metals Explorations Limited
100/100
M39/409
Nex Metals Explorations Limited
100/100
M39/410
Nex Metals Explorations Limited
100/100
M39/839
Nex Metals Explorations Limited
100/100
M39/840
Nex Metals Explorations Limited
100/100
P39/6126
Nex Metals Explorations Limited
100/100
P39/6127
Nex Metals Explorations Limited
100/100
E39/1773
Paddick Investments Pty Ltd
E39/1774
Paddick Investments Pty Ltd
100/100
100/100
Yundamindra Total Area (ha)
Plainted Status Area (ha)
Nature of
Interest
Interest
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
Yes
Yes
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
161.2 Direct Holding
3,300.0 Direct Holding
2,394.0 Direct Holding
1,194.0 Direct Holding
598.0 Direct Holding
10.0 Direct Holding
9.9 Direct Holding
185.0 Direct Holding
176.7 Direct Holding
299.0 Direct Holding
7.2
1.0
600.0
121.7
85.5
832.7
119.2
8.3
5.9
21.1
Earnt In
Earnt In
Earnt In
Earnt In
Earnt In
Earnt In
Earnt In
Earnt In
Earnt In
Earnt In
1,222.7
Earning In
11,353.1
1.0
1.0
3.2
378.0
230.0
124.0
896.0
785.0
966.0
978.0
7.3
9.7
10.4
5.6
Earnt In
Earnt In
Earnt In
Earnt In
Earnt In
Earnt In
Earnt In
Earnt In
Earnt In
Earnt In
Earnt In
Earnt In
Earnt In
Earnt In
903.0
Earning-in
2,517.0
7,815.1
Earning-in
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%
51%
51%
51%
51%
51%
90
ASX Additional Information
(f) Tenement List: (continued)
As at 28 September 2023
Tenement
Registered Holder
Status
Area
Nature of Interest
Interest
Admiral Bay
E04/1610
Kimberley Mining Australia Pty Lyd
M04/244
M40/249
Kimberley Mining Australia Pty Lyd
Kimberley Mining Australia Pty Lyd
Live
Live
Live
42 Blocks
Holding in Subsidiary
796.4 ha
Holding in Subsidiary
843.85 ha
Holding in Subsidiary
80.3%
80.3%
80.3%
Tenement
Registered Holder
Status
Area
Nature of Interest
Interest
Queensland Projects
EPM 28052 Metalicity Energy Pty Ltd
EPM 28121 Astralis Resources Pty Ltd
EPM 28653 Metalicity Energy Pty Ltd
Live
Live.
Live
32,500 ha MCT Beneficial owner
29,250 ha MCT Beneficial owner
3,575 ha MCT Beneficial owner
100%
100%
100%
91