Arika Resources Limited
(formerly known as Metalicity Limited)
ABN: 92 086 839 992
Annual report
For the year ended 30 June 2024
Corporate Directory
1
Directors
Justin Barton – Managing Director and Acting Chairperson
Roger Steinepreis – Non-Executive Director
Steven Wood – Independent Non-Executive Director
Company Secretary
Kate Breadmore – Company Secretary
Auditors
Pitcher Partners BA&A Pty Ltd
Level 11
12-14 The Esplanade
PERTH WA 6000
Solicitors
Steinepreis Paganin
Level 14, QV1 Building
250 St Georges Terrace
PERTH WA 6000
Bankers
ANZ Banking Group Ltd
1275 Hay Street
WEST PERTH WA 6005
Registered Office
Level 14, QV1 Building
250 St Georges Terrace
PERTH WA 6000
Telephone: +61 8 6500 0202
Share Registry
Link Market Services
QV1 Building
Level 12, 250 St Georges Terrace
PERTH WA 6000
Investor Enquiries: 1300 554 474
Facsimile: (02) 9287 0303
Securities Exchange Listing
Securities of Arika Resources Limited are listed on the Australian Securities Exchange (ASX).
ASX Listed Shares Code: ARI
Web Site: www.arika.com.au
Contents
2
Page
Directors’ report
3
Auditor’s independence declaration
25
Independent auditor’s report
26
Directors’ declaration
32
Annual financial statements
Consolidated statement of profit or loss and other comprehensive income
33
Consolidated statement of financial position
35
Consolidated statement of changes in equity
36
Consolidated statement of cash flows
37
Notes to the financial statement
38
Consolidated entity disclosure statement
73
Australian Securities Exchange (ASX) Additional Information
74
Directors’ Report
3
The Directors of Arika Resources Limited (formerly known as Metalicity Limited) (the “Company” or
“Arika”) submit herewith the annual financial report of the Company and its subsidiaries (the “Group”)
for the financial year ended 30 June 2024.
Directors
The names and particulars of the Directors of the Company during or since the end of the financial year
are:
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 80% joint venture interest in with Nex
Metals Exploration Ltd (“Nex”).
Review of Operations
Throughout the year, the Company continued to explore and progress the Kookynie and Yundamindra gold
projects, with the primary focus of exploration on Yundamindra in the second half of the year.
Yundamindra Gold Project
The Yundamindra Gold Project is located 65 kms southeast of Leonora and 65 kms east of the Joint
Venture’s (JV) Kookynie Project and is situated in close proximity to a number of mills easily accessible by
road (Figure 1). The Yundamindra Project currently consists of nine historical highly prospective prospects
(Figure 2), which had high grade historical production prior to 1970 of 74kt @ 19.3g/t Au for 45,000 ounces.
The Yundamindra Project has historically only experienced shallow drilling, with the most recent drilling
over a decade ago, but has returned significant historical drill intercepts from the Prospects within the
Project including1:
o
Pennyweight Point – 8m @ 56.36 g/t Au from 44m in PV095
o
Golden Treasure – 1m @ 48.1 g/t Au from 12m in TDN18
o
Queen May – 2m @ 39.49 g/t Au from 31m in QMN5 and
o
Landed at Last – 2m @ 23.29 g/t Au from 30m in LN11.
The Yundamindra project has over 140 historical significant high grade intercepts of above 4m @ 2g/t Au,
with mineralisation open along strike and limited exploration at depth. The project has over 20kms of
potential strike interpreted so far and approximately only 20% drill tested to date.
From the 1970’s through to 2010, a number of companies undertook various levels of drilling and
exploration activities, with the latest drilling activities over a decade ago. The Yundamindra Project
encompasses zones of gold mineralisation occurring along the margin of a regional scale hornblende-
granodiorite batholith which intruded mafic lithologies. The contact is sub-divided into two ‘lines’ of
mineralisation, western and eastern (Figure 2).
1 Please refer to ASX Announcement “Metalicity Farms into Eastern Goldfields Gold Projects”” dated 6 May 2019.
Name
Particulars
Justin Barton
Managing Director and Acting Chairperson
Roger Steinepreis
Non - Executive Director
Steven Wood
Independent Non-Executive Director
Directors’ Report
4
Figure 1 – Yundamindra Project Location
Directors’ Report
5
Figure 2 – Yundamindra Gold Project – Priority Prospects.
In May 2024, Arika undertook its maiden drilling program at Yundamindra, which initially focused on the
western line of the project with drilling commencing at the Landed at Last and Bonaparte prospects which
have significant historical intersections from limited shallow drilling and provide a significant opportunity for
Arika to confirm and expand known resources at these prospects.
Directors’ Report
6
A total of 44 holes for approximately 3,000 metres was drilled as part of this inaugural program, which is the
first phase of a larger drilling and exploration program planned at the Yundamindra Gold Project in 2024.
Assays from the maiden RC drilling programme at the Landed at Last and Bonaparte prospects at
Yundamindra returned multiple impressive gold intersections and high grades including (ref):
o
14m @ 3.13 g/t Au from 28m; incl 8m @ 5.01 g/t Au (YMRC0003).
o
9m @ 4.29 g/t Au from 51m (YMRC0004)
o
12m @ 2.93 g/t Au from 43m; incl 5m @ 4.80 g/t Au (YMRC0023)
o
5m @ 6.40 g/t Au from 80m; incl 3m @ 9.74 g/t Au (YMRC0030)
o
18m @1.16 g/t Au from 27m; incl 6m @ 2.08 g/t Au (YMRC00011)
o
11m @ 2.23 g/t Au from 31m (YMRC0039).
Importantly, mineralised intercepts correlate with historical drill intercepts, providing validation and
encouragement for further drilling and potential resource estimation.
In addition, a number of drillholes at Landed at Last prospect have extended the shallow gold mineralisation
down dip and confirm the orebody not only remains open along strike, but also at depth with significant
intercepts including (ref):
o
6m @ 4.30 g/t Au from 67m (YMRC0014)
o
4m @ 6.22 g/t Au from 54m; incl 1m @ 19.85 g/t Au (YMRC0018)
o
3m @ 7.55 g/t Au from 62m; incl 1m @ 11.12 g/t Au (YMRC0016)
o
13m @ 1.31 g/t Au from 59m; incl 2m @ 2.78g/t Au (YMRC0005)
The Landed at Last mineralisation is currently 700m in length and remains open at depth and along strike.
Bonaparte, Golden Treasure North and Queen of Poland remain similarly open along strike and with future
extensional and definition drilling planned, there is a wide scope of potential shallow orebody or system that
links 4 prospects together for 2,500m of mineralisation along strike (Figure 3).
Directors’ Report
7
Figure 3 – Greater Landed at Last Mineralisation
Directors’ Report
8
The next phase of drilling, which commenced in August 2024, turns to the Eastern Line and the
Pennyweight Point prospect, and has returned some of Yundamindra’s most outstanding shallow high-
grade results as shown in Table 11:
Table. 1 Historical significant intercepts – Pennyweight Point.
Hole_ID
Prospect
Intercept Description
PV095
Pennyweight Point
8m @ 56.36 g/t Au from 44 m
PV055
Pennyweight Point
4m @ 26.14 g/t Au from 36 m
PV105
Pennyweight Point
6m @ 13.69 g/t Au from 46 m
PIV049
Pennyweight Point
12m @ 6.27 g/t Au from 16 m
PV050
Pennyweight Point
20m @ 3.05 g/t Au from 50 m
P008
Pennyweight Point
8m @ 7.51 g/t Au from 36 m
PDDH004
Pennyweight Point
2m @ 26.31 g/t Au from 121.1 m
PV043
Pennyweight Point
8m @ 5.34 g/t Au from 48 m
P055
Pennyweight Point
7m @ 5.44 g/t Au from 87 m
PDDH003
Pennyweight Point
4m @ 7.73 g/t Au from 103.3 m
P013
Pennyweight Point
6m @ 4.95 g/t Au from 54 m
PIV048
Pennyweight Point
4m @ 6.94 g/t Au from 60 m
Pennyweight Point is a highly complex and interesting orebody very different to other prospects at
Yundamindra and requires a very targeted drilling programme combined with a new approach to
interpretation. Arika plans to take a methodical approach to drilling with a consistent orientation at
Pennyweight Point which has historically been drilled from multiple directions.
Unlike the gold prospects on the Western Line of the Yundamindra Gold Project, mineralisation at
Pennyweight Point has presented at depth with a small number of historical diamond drillholes reaching a
depth over 200m below the surface and mineralisation intersected at 125m.
Directors’ Report
9
Figure 4 - Pennyweight Point historical drilling and interpreted zone of mineralisation2.
Independent experts, Core Geophysics, have also undertaken a detailed review of all historical data in the
Yundamindra area and have identified an extensive pipeline of additional priority target areas. Future
exploration at Yundamindra will include brownfield and greenfield targets, with scope for high resolution
geophysical surveying and other exploration activities to add to target pipeline.
2 Please refer to ASX Announcement “Yundamindra Investor Presentation” dated 31 July 2024.
Directors’ Report
10
Kookynie Gold Project
The Kookynie Gold Project is located approximately 180km north of the town of Kalgoorlie and presents an
opportunity to develop a high-grade gold resource based off historic and recent exploration within the area
undertaken by Arika and past explorers.
The Kookynie Project hosts some of Arika’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 5). These key prospects all have shallow mineralisation, are all on mining leases and are
situated in close proximity to a number of mills easily accessible by road, providing a unique opportunity for
the Company to unlock significant value.
The Kookynie Gold Project has significant historical and current gold endowment, with the Cosmopolitan
Gold Mine producing more than 331,000 ounces, between 1895 to 1922, at an average grade of 15g/t Au.
The Altone Gold Mine produced 88,700 ounces, between 1900 to 1965, at an average head grade of 30g/t
Au.
Arika has drilled 380 holes for over 34,000 metres across several deposits, prospects and exploration targets
within the Kookynie Gold project since early 2020. This volume of drilling has yielded significant intercepts
with some truly spectacular gold results including, but not limited to:
• 4 metres @ 26.91 g/t Au from 65 metres3 (LPRC0077)
• 10 metres @ 7.44 g/t Au from 108m4 (LPRC049)
• 3 metres @ 19.1 g/t Au from 88 metres5 (McTRC0044)
• 5 metres @ 25.9 g/t Au from 28 metres6 (McTRC0049)
• 28 metres @ 1.83 g/t Au from 72 metre7 (CPRC0041)
• 3 metres @ 14.9 g/t Au from 97 metres8 (ALTRC0030)
Arika has proven with its exploration activities that the Kookynie Gold Project has substantial value and the
Kookynie area still retains significant mineral endowment.
In April 2022, Arika released a maiden JORC 2012 compliant Mineral Resource Estimate containing 83,000
ounces of gold for the Leipold, McTavish and Champion Deposits.
Please refer to Table 2 for the Total Mineral Resource Estimate Breakdown (ref):
Table 2 – Kookynie Mineral Resource Estimate Tables.
3 ASX Announcement “Metalicity Reports Drill Hole Intercepts Up to 100 g/t Au for the Kookynie Gold Project” dated 15 September
2020.
4 ASX Announcement “Metalicity Continues to Deliver Spectacular Drill Hole Results for the Kookynie Gold Project” dated 25 August
2020.
5 ASX Announcement “McTavish Returns Assays Up To 52.8 g/t Au & Executive Changes” dated 24 May 2021.
6 ASX Announcement “McTavish Delivers Bonanza Grade Gold Results up to 91.2 g/t Au” dated 8 July 2021.
7 ASX Announcement “Widest Intersection to Date at Kookynie as Champion & McTavish Continue to Deliver Strong Gold Results”
dated 13 December 2021.
8 ASX Announcement “Further Impressive Drill Results at Altona, Kookynie Gold Project” dated 18 March 2021.
Deposit
Tonnage
Au
Au
Tonnage
Au
Au
Tonnage
Au
Au
kt
g/t
Ounces
kt
g/t
Ounces
kt
g/t
Ounces
Leipold
450
1.3
19,000
630
1.7
34,000
1,080
1.5
53,000
Champion
380
1.7
20,000
380
1.7
20,000
McTavish
120
2.0
8,000
120
2.0
8,000
Total
450
1.3
19,000
1,130
1.7
62,000
1,580
1.6
81,000
Indicated
Inferred
Total
Kookynie Gold Project
March 2022 Mineral Resource Estimate (0.5g/t Au Cut-off)
Directors’ Report
11
Significant upside resource potential remains at the Kookynie project with all prospects open along strike and
at depth and the McTavish South, Cosmopolitan and Altona prospects still to be drilled. The McTavish East
discovery by Carnavale Resources (ASX:CAV) provides further evidence that gold is still to be found at
Kookynie.
Figure 5 – Kookynie Prospect Locality Map with mineralised trends.
Please refer to pages 85 – 91 for all Arika Resource Statements, Competent Persons Statements and Disclaimer
and Forward-Looking Statements.
Directors’ Report
12
Results
The net loss after income tax for the year ended 30 June 2024 was $1,049,446 (30 June 2023: loss
$3,766,704).
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 other than those set
out below:
1) On 12 July 2024 the Company announced it had completed the settlement of all disputes between
Nex and Arika agreed on 21 December 2023. Arika now holds an 80% interest in the JV.
2) On 31 July 2024 the Company announced it had received commitments from investors for a $1
million Placement, including $120,000 commitments from directors. A total of 500 million shares at
an issue price of $0.0025 to be issued, together with 2 for 3 free attaching options exercisable at
$0.0025 with an 18-month expiry. Funds to be used to accelerate exploration at the Yundamindra
Gold Project. The placement comprised of two tranches:
•
A first tranche was completed on 6 August 2024 raising approximately $0.42 million
within the Company’s available placement capacity pursuant to ASX Listing Rules 7.1
and 7.1A; and
•
A second tranche was completed on 19 September 2024, raising approximately $0.58
million, after shareholder approval was obtained at a General Meeting held on 11
September 2024.
3) On 18 September 2024 the Company completed a consolidation of its securities on a 10:1 basis,
after receiving shareholder approval on 11 September 2024.
4) On 26 September 2024 the Company’s name change to Arika Resources Limited became
effective, as approved by shareholders on 11 September 2024.
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 order 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
Directors’ Report
13
Risk Management (continued)
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.
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 past issues have been resolved, however if any further issues were to arise the
resources required to deal with these issues risks further delays in carrying the projects forward.
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.
Directors’ Report
14
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
10,987,410 ordinary shares, 6,821,962 unlisted options and 3,000,000 performance rights
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 practised 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 was Non-Executive Chairman of
Apollo Consolidated Limited which was subject to a successful takeover by Ramelius Resources Limited in
2021. He is currently a Director of Meeka Metals Limited and Enegex Ltd.
Other Current Listed Company Directorships
Meeka Metals Limited – Director of the ASX listed company (ASX:MEK)(appointed 6 November 2012)
Enegex Ltd – Non-Executive Director of the ASX listed company (ASX:ENX)(appointed 9 May 2023)
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
39,006,496 ordinary shares and 28,374,913 unlisted options
Directors’ Report
15
Information on Directors (continued)
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 was recently a Director of Grange Consulting Group Pty Ltd until it
was acquired by Automic Group, where he is currently a principal 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 Non-Executive Director of Uvre Ltd (ASX:UVA) and Company Secretary for a
number of ASX listed entities including Caspin Resources Ltd (ASX:CPN) and Rumble Resources Ltd
(ASX:RTR).
Other Current Listed Company Directorships
Uvre Limited – Non-Executive Director (ASX:UVA)(appointed 12 May 2021)
Former Listed Company Directorships in the Last Three Years
None
Interests in Shares and Options
4,089,176 ordinary shares and 2,612,753 unlisted options
Company Secretary
Kate Breadmore – Company Secretary and Chief Financial Officer – appointed CFO on 4 July 2022,
Joint Company Secretary on 1 December 2022 and sole Company Secretary on 30 November 2023.
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 2024 that each Director
was eligible to attend, and the number of meetings attended by each Director were:
Director
Number of Meetings
Eligible to attend
Attended
Justin Barton
9
9
Roger Steinepreis
9
9
Steven Wood
9
9
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.
Directors’ Report
16
Remuneration Report (Audited)
The information provided in this Remuneration Report has been audited as required by Section 308(3C) of
the Corporations Act 2001.
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) for the period 1 July to 30
November 2023, a reduced rate of $180,000 (excluding superannuation) for the next 6 months, then
returned to $295,000 (excluding superannuation) from 1 June 2024. Justin has a 6 month notice period
as outlined below.
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 Wood is paid $60,000 per annum (including superannuation) in his role as Non-Executive Director. During
the year this amount was reduced to $30,000 per annum (including superannuation) from December 2023 to
June 2024. Mr Steinepreis is paid $60,000 per annum (including superannuation) in his role as Non-Executive
Director. During the year this amount was reduced to nil from December 2023 to June 2024. All Non-
Executive Directors may resign or are subject to termination upon receipt of written notice.
Directors’ Report
17
Remuneration Report (Audited) (continued)
Non-executive Directors’ and other KMP remuneration (continued)
Ms Breadmore is paid $12,000 per annum (excluding superannuation) for her role as Company Secretary, in
addition to $120,000 per annum for her role as CFO.
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.
2024
Short-term
Benefit –
salary &
fees
Short-term
Benefit -
Other
Post-
Employment
Benefit4
Share-based
Payments5
Total
Performance
related %
$
$
$
$
$
Executive
Justin Barton
237,5001
-
26,125
27,159
290,784
9.34%
Non-executive
Roger Steinepreis
22,5232
-
-
-
22,523
0.0%
Steven Wood
38,2883
-
4,212
-
42,500
0.0%
Other executive
Kate Breadmore
132,000
-
14,520
-
146,520
0.0%
Totals
430,311
-
44,857
27,159
502,357
The fees paid to Director related entities were for the provision of services of the particular Director to the Company are as follows:
1 $182,532 was paid in cash, $45,385 was paid in shares and $9,583 was accrued for.
2 $13,575 was paid in shares and $8,948 was accrued for.
3 $13,575 was paid in shares, $12,064 in cash and $12,650 accrued for.
4 Relates to Superannuation.
5 Relates to 12 months expense of the 40m performance rights issued in the prior year. (Please refer to share-based payment
compensation section below).
Directors’ Report
18
Remuneration Report (Audited) (continued)
Non-executive Directors’ and other KMP remuneration (continued)
2023
Short-term
Benefit –
salary &
fees
Short-term
Benefit -
Other
Post-
Employment
Benefit6
Share-based
Payments5
Total
Performance
related %
$
$
$
$
$
Executive
Justin Barton
295,0001
-
30,975
58,846
384,821
15.29%
Non-executive
Roger Steinepreis
21,5717
-
2,265
-
23,836
0.0%
Steven Wood
32,4302
-
3,405
-
35,836
0.0%
Andrew Daley
36,5473
-
3,837
12,112
52,496
23.07%
Jason Livingstone
47,957.
-
5,035
55,715
108,707
51.25%
Other executive
Kate Breadmore
129,495.
-
13,597
9,140
152,232
6.0%
Nick Day4
40,800.
-
-
-
40,800
0.0%
Totals
603,800.
-
59,114
135,813
798,728
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.
Share-based compensation
The grant of each tranche of the following performance rights in the current financial year 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:
2024
There were no performance rights issued during the year.
During the financial year the following shares and free attaching options were issued to certain key
management personnel as payment in lieu of fees and as part of a placement, as approved at the Annual
General Meeting held on 24 November 2023:
2024
Name
Unpaid
Fees*
No. Shares
Issued
Issue price
Justin Barton
$55,549
27,774,595
$0.002
Steven Wood
$32,390
16,195,098
$0.002
Roger Steinepreis
$34,997
17,498,295
$0.002
$122,936
61,467,988
Directors’ Report
19
Remuneration Report (Audited) (continued)
Share-based compensation (continued)
2024
Name
Unpaid Fees*
No. Options
Issued
Exercise
price
Expiry
date
Justin Barton
$55,549
13,887,298
$0.003
11/12/2025
Steven Wood
$32,390
8,097,549
$0.003
11/12/2025
Roger Steinepreis
$34,997
8,749,148
$0.003
11/12/2025
$122,936
30,733,995
* $50,401 ($10,164 Justin Barton, $18,815 Steven Wood and $21,422 Roger Steinepreis) of the unpaid fees related to the prior
year (June 2023) and $72,535 ($45,385 Justin Barton, $13,575 Steven Wood and $13,575 Roger Steinepreis) of the unpaid fees
related to the current year (July to September 2023).
(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:
2024
Balance at
the start of
the year
Granted
during the
year(a)
Exercised
during
the year
Expired/
cancelled
during the
year(e)
Other
change
during
the year
Balance at
the end of
the year
Vested and
exercisable
at the end
of the year
Vested but
not
exercisable
at end of
year
Options
Directors
Justin Barton
46,219,409
20,137,298(b)
-
(1,470,409)
-
64,886,298
64,886,298
-
Roger
Steinepreis
166,666,666.
83,749,148(c)
-
-
-
250,415,814
250,415,814
-
Steven Wood
9,696,666..
13,097,549(d)
-
-
-
22,794,215
22,794,215
-
222,582,741..
103,886,445.
-
(1,470,409)
-
338,096,327
338,096,327
-
(a) Options obtained as part of payment in lieu of fees or private placement as approved at the general meeting held on 24
November 2023, with one free attaching option granted per two share issued. Exercisable at $0.003 on or before 11 December
2025.
(b) 6,250,000 from a placement and 13,887,298 as payment in lieu of fees.
(c) 75,000,000 from a placement and 8,749,148 as payment in lieu of fees.
(d) 5,000,000 from a placement and 8,097,549 as payment in lieu of fees.
(e) Listed Options exercisable at $0.01 on or before 1 June 2024 expired during the period.
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:
Directors’ Report
20
Remuneration Report (Audited) (continued)
Share-based compensation (continued)
2024
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
Performance Rights
Directors
Justin Barton
50,000,000
-
(20,000,000)
-
30,000,000
-
-
Roger Steinepreis
-
-
-
-
-
-
-
Steven Wood
-
-
-
-
-
-
-
Other executives
Kate Breadmore
2,000,000
-
-
-
2,000,000
-
-
52,000,000
-
(20,000,000)
-
32,000,000
-
-
(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:
2024
Balance at the
start of the year
Acquired during the
year(a)
Other changes
during the year
Balance at the
end of the year
Directors
Justin Barton
64,599,510
40,274,595(b)
-
104,874,105
Roger Steinepreis
172,566,666
167,498,295(c)
-
340,064,961
Steven Wood
9,696,666
26,195,098(d)
-
35,891,764
Other executives
Kate Breadmore
-
-
-
-
246,862,842
233,967,988
-
480,830,830
(a) Shares acquired as part of payment in lieu of fees or private placement for $0.002 a share, as approved at the
general meeting held on 24 November 2023.
(b) 12,500,000 from the placement and 27,774,595 as payment in lieu of fees.
(c) 150,000,000 from the placement and 17,498,295 as payment in lieu of fees.
(d) 10,000,000 from the placement and 16,195,098 as payment in lieu of fees.
Directors’ Report
21
Remuneration Report (Audited) (continued)
Link between Group performance and Remuneration policy
2024
2023
2022
2021
2020
$
$
$
$
$
Loss after income tax (1,049,446)
(3,766,704)
(5,207,914)
(3,170,895)
(1,340,757)
Share price at 30 June
0.002
0.003
0.003
0.01
0.037
Total
dividends
declared
(cents per share)
-
-
-
-
-
Basic loss per share (cents per
share)
(0.02)
(0.10)
(0.22)
(0.19)
(0.17)
There is no direct link between the Group’s performance and Remuneration policy.
Other transactions with Key Management Personnel
During the year ended 30 June 2024, Related party transactions with key management personnel are set out
below:
- Steinepreis Paganin completed $41,451 in legal work for the Group during the year (2023: $64,000). Roger
Steinepreis is the Executive Chairman of the company.
- On 26 June 2024, Roger Steinepreis agreed to provide a short term funding facility to the Group, if required,
of up to $150,000. The amount was fully drawdown on 27 June 2024 (2023:nil). The funding is to be repaid
out of the proceeds of any capital raising. The amount drawn accrues interest at a rate of 6.5% per annum.
- Grange Consulting Group Ltd were paid $12,600 for consulting fees by the Group during the year (2023:
$24,255). Steven Wood was a director and shareholder of the company at the time.
(End of Remuneration Report)
Directors’ Report
22
Additional Information
(a)
Unissued shares
At the date of this report, the Company had 95,892,956 options and 3,600,000 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
No of Options*
Grant Date
Date of Expiry
Conversion
Price $
Options
11,055,616
23/05/2023
23/05/2026
0.060
11,055,616
23/05/2023
23/05/2026
0.090
26,749,995
27/10/2023
26/10/2025
0.030
11,698,397
12/12/2023
11/12/2025
0.030
35,333,332
19/09/2024
19/03/2026
0.025
95,892,956
Details
No of
Performance
Rights*
Grant Date
Date of Expiry
Hurdle Price $
Fair Value per
Right $
Performance
200,000
15/02/2023
15/02/2026
0.135
0.00840
Rights
200,000
15/02/2023
15/02/2026
0.180
0.00790
500,000
25/11/2022
19/12/2025
0.150
0.00300
500,000
25/11/2022
19/12/2025
0.250
0.00350
100,000
15/02/2023
15/02/2026
0.075
0.00470
100,000
15/02/2023
15/02/2026
0.100
0.00440
2,000,000
05/05/2023
31/05/2025
0.200
0.00907
3,600,000
* These amounts take into account the 10:1 consolidation that completed on 18 September 2024 and the placement that took
place on 19 September 2024, both of which were approved by shareholders on 11 September 2024 (see ASX announcement
for the Notice of Meeting dated 8 August 2024 and the Subsequent Events note on page 12 for full details).
During the financial year, the Company issued 116,983,994 free attaching options (one option for every
two shares) to select KMPs: 86,250,000 as part of a private placement and 30,733,994 as 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
5,317,250
29/08/2018
None
0.05
Founder Warrants – Tranche 2
3,143,250
28/09/2018
None
0.05
8,461,000
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.
Directors’ Report
23
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 2024 is $37,000 (2023: $$33,500).
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 2024 Corporate Governance Statement was approved by the Board on 25 September 2024 and
is current at this time. A copy of the Company’s current Corporate Governance Statement and Plan
adopted
during
the
year
ended
30
June
2024
can
be
viewed
at
https://www.arika.com.au/corporate/corporate-governance/.
(g)
Environmental Liabilities
The Group’s operations are subject to environmental regulation in respect of mineral tenements
relating to exploration activities on those tenements. No breaches of any environmental requirements
were recorded during the financial year.
Auditor’s independence declaration
The auditor’s independence declaration is included on page 31 of the annual report.
Directors’ Report
24
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
30 September 2024
AUDITOR'S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF ARIKA RESOURCES LIMITED (FORMERLY KNOWN AS
METALICITY LIMITED) AND ITS CONTROLLED ENTITIES
25
In accordance with section 307C of the Corporations Act 2001, I declare to the best of my
knowledge and belief in relation to the audit of the financial report of Arika Resources Limited
(formerly known as Metalicity Limited) and its controlled entities for the year ended 30 June 2024,
there have been:
i)
no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
ii) no contraventions of the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including
Independence Standards) in relation to the audit.
PITCHER PARTNERS BA&A PTY LTD
MICHAEL LIPRINO
Executive Director
Perth, 30 September 2024
ARIKA RESOURCES LIMITED
(FORMERLY KNOWN AS METALICITY LIMITED)
ABN 92 086 839 992
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
ARIKA RESOURCES LIMITED
26
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Arika Resources Limited “the Company” (formerly
known as Metalicity Limited) and its controlled entities “the Group”, which comprises the
consolidated statement of financial position as at 30 June 2024, the consolidated statement of
profit or loss and other comprehensive income, the consolidated statement of changes in
equity and the consolidated statement of cash flows for the year then ended, and notes to the
financial statements, including material accounting policy information, the consolidated entity
disclosure statement and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the
Corporations Act 2001, including:
(a)
giving a true and fair view of the Group’s financial position as at 30 June 2024
and of its financial performance for the year then ended; and
(b)
complying with Australian Accounting Standards and the Corporations
Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities
for the Audit of the Financial Report section of our report. We are independent of the Group in
accordance with the auditor independence requirements of the Corporations Act 2001 and the
ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110
Code of Ethics for Professional Accountants (including Independence Standards) (“the Code”)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our
other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 2(a) in the financial report for the year ended 30 June 2024 which
indicates that the Group incurred a loss after tax of $1,049,446 (2023: $3,766,704) and a net
cash outflow from operating and investing activities of $1,948,972 (2023: $2,851,976). At 30
June 2024, the Group has working capital surplus of $1,982,882 (2023: $1,859,560) and
current cash holding was $172,368 (2023: $680,553).
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.
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.
Adelaide | Brisbane | Melbourne | Newcastle | Perth | Sydney
Pitcher 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.
pitcher.com.au .
Pitcher Partners BA&A Pty Ltd
An independent Western Australian Company ABN 76 601 361 095.
Level 11, 12-14 The Esplanade, Perth WA 6000
Registered Audit Company Number 467435.
Liability limited by a scheme under Professional Standards Legislation.
ARIKA RESOURCES LIMITED
(FORMERLY KNOWN AS METALICITY LIMITED)
ABN 92 086 839 992
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
ARIKA RESOURCES LIMITED
27
Key Audit Matter
How our audit addressed the key audit matter
Carrying value of exploration and
evaluation assets
Refer to Note 2(m), 2(n), 10
As disclosed in Note 10 of the
financial report, as at 30 June 2024,
the Group held capitalised
exploration and evaluation assets of
$7,425,919.
The carrying value of exploration and
evaluation expenditure is assessed
for impairment by the Group when
facts and circumstances indicate that
the capitalised exploration and
evaluation expenditure may exceed
its recoverable amount.
The determination as to whether
there are any indicators to require the
capitalised exploration and
evaluation expenditure to be
assessed for impairment involves a
number of judgments including but
not limited to:
•
whether the Group has
tenure of the relevant area of
interest;
•
whether the Group has
sufficient funds to meet the
relevant area of interest
minimum expenditure
requirements; and
•
whether there is sufficient
information for a decision to
be made that the relevant
area of interest is not
commercially viable.
Given the size of the balance and the
judgemental nature of the impairment
indicator assessments associated
with exploration and evaluation
assets, we consider this is a key
audit matter.
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.
Assessing and evaluating the Group’s intention to
carry out significant exploration and evaluation
activity in the relevant area of interest, including an
assessment of the Group’s cash-flow forecast
models, assessing the sufficiency of funding and
discussions with senior 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.
ARIKA RESOURCES LIMITED
(FORMERLY KNOWN AS METALICITY LIMITED)
ABN 92 086 839 992
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
ARIKA RESOURCES LIMITED
28
Share Based Payments
Refer to Note 2(i), 2(n) & 16
Share based payments represent
$27,159 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 if there
are no vesting conditions, or over the
vesting period if there are vesting
conditions.
In calculating the fair value there are
a number of judgements
management must make, including
but not limited to:
•
Estimating the likelihood that
the equity instruments will
vest; and
•
Estimating expected future
share price volatility.
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.
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 judgements of management in
their preparation of valuation model, including
management’s assessment of likelihood of vesting,
and agreeing inputs including volatility to internal
and external sources of information as appropriate.
Assessing the appropriateness of including
recalculation of share-based payment expensed
during the year, including recalculation of pursuant
to the requirements of Australian Accounting
Standards AASB 2 Share-based Payment (“AASB
2”).
Assessing the adequacy of the disclosures
included in the financial report.
ARIKA RESOURCES LIMITED
(FORMERLY KNOWN AS METALICITY LIMITED)
ABN 92 086 839 992
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
ARIKA RESOURCES LIMITED
29
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 2024, 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:
a)
the financial report (other than the consolidated entity disclosure statement) that gives
a true and fair view in accordance with Australian Accounting Standards and the
Corporations Act 2001; and
b)
the consolidated entity disclosure statement that is true and correct in accordance
with the Corporations Act 2001; and
for such internal control as the directors determine is necessary to enable the preparation of:
(i)
the financial report (other than the consolidated entity disclosure statement) that gives
a true and fair view and is free from material misstatement, whether due to fraud or
error; and
(ii) the consolidated entity disclosure statement that is true and correct and is free of
misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the 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 have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a
whole is free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with the Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
this financial report.
ARIKA RESOURCES LIMITED
(FORMERLY KNOWN AS METALICITY LIMITED)
ABN 92 086 839 992
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
ARIKA RESOURCES LIMITED
30
As part of an audit in accordance with the Australian Auditing Standards, we exercise
professional judgement and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report,
whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Group’s internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by the directors.
•
Conclude on the appropriateness of the directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on
the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the financial report or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the
Group to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial report,
including the disclosures, and whether the financial report represents the underlying
transactions and events in a manner that achieves fair presentation.
•
Obtain sufficient appropriate audit evidence regarding the financial information of
the entities or business activities within the Group to express an opinion on the
financial report. We are responsible for the direction, supervision and performance
of the Group audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where
applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of
most significance in the audit of the financial report of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
ARIKA RESOURCES LIMITED
(FORMERLY KNOWN AS METALICITY LIMITED)
ABN 92 086 839 992
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
ARIKA RESOURCES LIMITED
31
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 2024. In our opinion, the Remuneration Report of Arika Resources Limited, for the
year ended 30 June 2024, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit
conducted in accordance with Australian Auditing Standards.
PITCHER PARTNERS BA&A PTY LTD
MICHAEL LIPRINO
Executive Director
Perth, 30 September 2024
Directors’ declaration
32
The Directors’ declare that:
1.
In the Directors’ opinion, the consolidated financial statements and notes set out on pages 39 to 80
are in accordance with the Corporations Act 2001, including:
(a)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements; and
(b)
as stated in Note 1, the consolidated financial statements also comply with International
Financial Reporting Standards; and
(c)
giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its
performance for the financial year ended on that date.
2.
In the Directors’ opinion, the consolidated entity disclosure statement required by subsection 295 (3A)
of the Corporations Act 2001 is true and correct.
3.
In the Directors’ opinion there are reasonable grounds, at the date of this declaration, to believe that
the Group will be able to pay its debts as and when they become due and payable;
At the date of this declaration, the Company and certain wholly owned subsidiaries (collectively known as the
“Closed Group”) are parties to a deed of cross guarantee pursuant to ASIC Corporations (Wholly-owned
Companies) Instrument 2016/785. Under the deed of cross guarantee, each entity (in the Closed Group
guarantees to each creditor (of any entity in the Closed Group) payment in full of any debt.
In the Directors’ opinion there are reasonable grounds, at the date of this declaration, to believe that the
Company and the other parties to the deed of cross guarantee (as disclosed in note 25 to the consolidated
financial statements) will, as a group, be able to meet any liabilities to which they are, or may become, subject
because of the deed of cross guarantee.
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 2024.
This declaration is made in accordance with a resolution of the Directors.
Justin Barton
Managing Director
Perth, Western Australia
30 September 2024
Consolidated statement of profit or loss and other comprehensive income
for the financial year ended 30 June 2024
33
Consolidated Group
2024
2023
Note
$
$
Continuing operations
Other Income
4
326,505
42,273
Expenses
5
(1,118,360)
(3,681,562)
Loss from continuing operations before income tax
(791,855)
(3,639,289)
Income tax expense
6
-
-
Loss after income tax from continuing operations
(791,855)
(3,639,289)
Discontinued operations
Net loss from discontinued operations
12
(257,591)
(127,415)
Net Loss
(1,049,446)
(3,766,704)
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
-
-
Total comprehensive loss for the year
(1,049,446)
(3,766,704)
Loss attributable to:
Owners of the parent
(1,015,810)
(3,741,618)
Non-controlling interest
(33,636)
(25,086)
(1,049,446)
(3,766,704)
Loss attributable to equity holders of the parent entity:
Loss from continuing operations, net of tax
(791,855)
(3,639,289)
Loss from discontinued operations, net of tax
(223,955)
(102,329)
(1,015,810)
(3,741,618)
Loss attributable to non-controlling interest relates to:
Loss from continuing operations, net of tax
-
-
Loss from discontinued operations, net of tax
(33,636)
(25,086)
(33,636)
(25,086)
Total comprehensive loss attributable to:
Owners of the parent
(1,015,810)
(3,741,618)
Non-controlling interest
(33,636)
(25,086)
(1,049,446)
(3,766,704)
Total comprehensive loss attributable to equity holders of
the parent entity:
Total comprehensive loss from continuing operations, net of tax
(791,855)
(3,639,289)
Total comprehensive loss from discontinued operations, net of
tax
(223,955)
(102,329)
(1,015,810)
(3,741,618)
Consolidated statement of profit or loss and other comprehensive income
for the financial year ended 30 June 2024
34
Consolidated Group
2024
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
(33,636)
(25,086)
(33,636)
(25,086)
Loss per share from continuing operations attributable to
the equity holders of the parent entity:
Basic loss per share (cents)
24(a)
(0.01)
(0.10)
Diluted loss per share (cents)
24(a)
(0.01)
(0.10)
Loss per share from discontinued operations attributable to
the equity holders of the parent entity:
Basic loss per share (cents)
24(a)
(0.01)
(0.00)
Diluted loss per share (cents)
24(a)
(0.01)
(0.00)
Loss per share attributable to the equity holders of the
parent entity:
Basic loss per share (cents)
24(a)
(0.02)
(0.10)
Diluted loss per share (cents)
24(a)
(0.02)
(0.10)
The above consolidated statement of profit or loss and other comprehensive income should be read in
conjunction with the accompanying notes.
Consolidated statement of Financial Position
for the financial year ended 30 June 2024
35
Consolidated Group
2024
2023
Note
$
$
Current assets
Cash and cash equivalents
7(a)
172,368
702,519
Trade and other receivables
8
52,867
48,341
Financial assets at fair value through profit & loss
11
2,010,045
1,735,948
Prepayments
38,233
-
Other financial assets
9
-
10,908
Total current assets
2,273,512
2,497,716
Non-current assets
Exploration and evaluation expenditure
10
7,424,117
7,012,544
Right of use asset
-
7,769
Plant and equipment
12,039
19,527
Total non-current assets
7,436,156
7,039,840
Total assets
9,709,668
9,537,556
Current liabilities
Trade and other payables
13
24,978
440,152
Provisions
14
115,572
132,475
Bank Overdraft
7(a)
-
21,966
Borrowings
23
150,080
-
Lease liability
-
7,563
Total current liabilities, representing total liabilities
290,630
602,156
Net assets
9,419,038
8,935,400
Equity
Issued capital
15(a)
66,050,356
64,561,230
Reserves
17
6,100,516
6,056,558
Accumulated losses
(62,563,575)
(61,547,765)
Parent Entity Interest
9,587,297
9,070,023
Non Controlling Interest
(168,259)
(134,623)
Total equity
9,419,038
8,935,400
The above consolidated statement of financial position should be read in conjunction with the accompanying
notes.
Consolidated statement of changes in equity
for the financial year ended 30 June 2024
36
Issued
capital
Share
Based
Payments
Reserve
Accumulated
losses
Non
Controlling
Interest
Total
$
$
$
$
$
Balance at 1 July 2023
64,561,230
6,056,558
(61,547,765)
(134,623)
8,935,400
(Loss) for the year
-
-
(1,015,810)
(33,636)
(1,049,446)
Total comprehensive loss for the year
-
-
(1,015,810)
(33,636)
(1,049,446)
Issue of shares (placement)
1,375,000
-
-
-
1,375,000
Issue of shares (in lieu of fees)
122,936
-
-
-
122,936
Issue of shares (exercise of options)
7,989
-
-
-
7,989
Issue of broker options
-
16,799
-
-
16,799
Expense of performance rights
-
27,159
-
-
27,159
Issue costs
(16,799)
-
-
-
(16,799)
1,489,126
43,958
-
-
1,502,098
Balance at 30 June 2024
66,050,356
6,100,516
(62,563,575)
(168,259)
9,419,038
Issued
capital
Share
Based
Payments
Reserve
Accumulated
losses
Non
Controlling
Interest
Total
$
$
$
$
$
Balance at 1 July 2022
63,734,085
5,920,745
(57,806,147)
(109,537)
11,739,146
-
-
(Loss) for the year
-
-
(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)
540,000
-
-
-
540,000
Issue of shares (in lieu of fees)
154,639
-
-
-
154,639
Issue of shares for tenements
137,500
-
-
-
137,500
Issue of performance rights
-
135,813
-
-
135,813
Issue costs
(4,994)
-
-
-
(4,994)
827,145
135,813
-
-
962,958
Balance at 30 June 2023
64,561,230
6,056,558
(61,547,765)
(134,623)
8,935,400
The above consolidated statement of changes in equity should be read in conjunction with the accompanying
notes.
Consolidated statement of cash flows
for the financial year ended 30 June 2024
37
Consolidated Group
2024
2023
Note
$
$
Cash flows from operating activities
Payments to suppliers and employees
(1,174,518)
(2,140,089)
Interest received
11,761
9,342
Interest expense
-
(6,765)
Net cash used in operating activities
7(b)
(1,162,758)
(2,137,512)
Cash flows from investing activities
Payment for exploration and in relation to tenements
(786,214)
(713,364)
Payments for plant and equipment
-
(1,100)
Net cash used in investing activities
(786,214)
(714,464)
Cash flows from financing activities
Proceeds from shares issued
1,375,000
538,244
Loan drawdown
150,000
-
Proceeds from option conversions
7,645
-
Principal amount paid on lease
(7,563)
(20,050)
Transaction costs in relation to share issue
(84,295)
(46,482)
Net cash provided by financing activities
1,440,787
471,712
Net (decrease)/increase in cash and cash
equivalents
(508,185)
(2,380,264)
Cash and cash equivalents at the beginning of the
financial year
680,553
3,060,817
Cash and cash equivalents at the end of the
financial year
7(a)
172,368
680,553
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Notes to Financial Statements for the financial year ended 30 June 2024
38
1.
General information
Arika Limited (formerly known as Metalicity Limited)(“the Company” or “Arika”) 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 are referred to as the ‘Group’.
The Financial Report of the Company for the year ended 30 June 2024 was authorised for issue
in accordance with a resolution of the Board of Directors on 25 September 2024.
2.
Material 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).
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 2024
the Group incurred a loss after tax of $1,049,446 (2023: $3,766,704) and a net cash outflow
from operating and investing activities of $1,948,972 (2023: $2,851,976). At 30 June 2024,
the Group has working capital surplus of $1,982,882 (2023: working capital of $1,895,560)
and current cash holding was $172,368 (2023: $680,553).
Notes to Financial Statements for the financial year ended 30 June 2024
39
2.
Material 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 cash
reserves and reduce exploration and evaluation expenditure accordingly should the need
arise.
In forming this view, the Directors have taken into consideration the following:
-
Post year end the Company completed a capital raise for $1 million, to assist with
funding the Yundamindra drilling program and working capital costs;
-
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) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable.
Management Income
Revenue from is recorded monthly in Arika’s accounts from the JV management fee,
which comprises of 10% of JV expenses for the month.
(c) 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.
Notes to Financial Statements for the financial year ended 30 June 2024
40
2.
Material accounting policies (continued)
(d) 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.
(e) 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.
(f)
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.
Notes to Financial Statements for the financial year ended 30 June 2024
41
2.
Material accounting policies (continued)
(g) 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.
(h) 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.
(i)
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
(j)
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.
Notes to Financial Statements for the financial year ended 30 June 2024
42
2.
Material accounting policies (continued)
Financial Instruments (continued)
Classification and subsequent measurement (continued)
Financial assets
Except for those trade receivables that do not contain a significant financing component and
are measured at the transaction price in accordance with AASB 15, all financial assets are
initially measured at fair value adjusted for transaction costs (where applicable).
For the purpose of subsequent measurement, financial assets are classified into the
following categories upon initial recognition:
amortised cost; 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
After initial recognition, these are measured at amortised cost using the effective interest
method. The Group’s cash and cash equivalents, trade and most other receivables fall into
this category of financial instruments.
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.
Subsequently, financial liabilities are measured at amortised cost using the effective interest
method.
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.
Notes to Financial Statements for the financial year ended 30 June 2024
43
2.
Material accounting policies (continued)
Financial Instruments (continued)
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 being 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.
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.
Notes to Financial Statements for the financial year ended 30 June 2024
44
2.
Material accounting policies (continued)
(k) 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.
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.
Notes to Financial Statements for the financial year ended 30 June 2024
45
2.
Material accounting policies (continued)
(l)
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.
(m) 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).
(n) 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.
In relation to the Nex receivables, the Group has used the General approach under AASB 9
to determine the allowance for credit losses. 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.
Notes to Financial Statements for the financial year ended 30 June 2024
46
2.
Material accounting policies (continued)
(o) Application of new and revised Accounting Standards
Application of new and revised Accounting Standards effective
In the year ended 30 June 2024, 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 material impact of the new and revised standards on the Group.
The following are those applicable to 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 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.
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.
Notes to Financial Statements for the financial year ended 30 June 2024
47
2.
Material accounting policies (continued)
Application of new and revised Accounting Standards not yet effective (continued)
AASB 18: Presentation and Disclosure in Financial Statements
AASB 18 replaces AASB 101 Presentation of Financial Statements to improve how entities
communicate in their financial statements, with a focus on information about financial
performance in the profit or loss.
AASB 18 has also introduced changes to other accounting standards including AASB 108
Basis of Preparation of Financial Statements (previously titled Accounting Policies, Changes
in Accounting Estimates and Errors), AASB 7 Financial Instruments: Disclosures, AASB 107
Statement of Cash Flows, AASB 133 Earnings Per Share and AASB 134 Interim Financial
Reporting.
The key presentation requirements are:
The presentation of two newly defined subtotals in the statement or profit or loss, and the
classification of income and expenses into operating, investing and financing categories –
plus income taxes and discontinuing operations; the disclosure of management-defined
performance measures; and enhanced requirements for grouping (aggregation and
disaggregation) of information.
AASB 18 mandatorily applies to annual reporting periods commencing on or after 1 January
2027 for for-profit entities excluding superannuation entities. It will be first applied by the
Group in the financial year commencing 1 July 2027.
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.
Notes to Financial Statements for the financial year ended 30 June 2024
48
4.
Other Income
An analysis of the Group’s other income for the year is as follows:
Consolidated Group
2024
2023
$
$
Joint arrangement management fee
40,648
32,931
Fair value movement on financial instruments at
fair value through profit and loss 1
274,097
-
Finance income
11,761
9,342
326,505
42,273
1 Refer to Note 11. Prior year included in expenses as a loss.
5.
Expenses
Consolidated Group
2024
2023
$
$
Accounting & audit
80,396
100,154
ASX
53,986
55,809
Company secretarial fees
30,084
69,575
Consulting fees
62,022
60,697
Depreciation
15,257
26,115
Employee benefits
480,606
709,556
Expected credit loss1
92,685
306,836
Exploration expenses (excl those capitalised)
30,523
25,324
Investor relations
18,000
40,250
Legal fees
118,357
698,759
Business development expenses
-
294
Rent & office expenses
3,952
1,012
Share based payments
27,159
135,813
Share registry fees
35,017
81,974
Superannuation expenses
69,041
81,988
Fair value movement on financial instruments at fair
value through profit and loss 2
-
1,097,233
Other
1,275
190,173
Total expenses
1,118,360
3,681,562
1 Refer to Note 9.
2 Refer to Note 11. Current year included in income as a gain.
Notes to Financial Statements for the financial year ended 30 June 2024
49
6.
Income tax expense
Consolidated Group
2024
2023
$
$
a) Numerical reconciliation of income tax expense
to prima facie tax payable
Loss from continuing operations before income tax
expense
(758,219)
(3,639,289)
Loss from discontinued operations before income tax
expense
(257,591)
(127,415)
(1,015,810)
(3,766,704)
Tax at the Australian tax rate of 25% (2023: 25%)
(253,953)
(941,676)
Tax effect of amounts which are not deductible in
calculating taxable income
71,499
34,741
Tax effect of amounts which are non (taxable) in
calculating taxable income
-
-
Tax losses not recognised
182,454
906,935
Prior year losses not recognised, now recognised
Income tax expense
-
-
Consolidated Group
2024
2023
$
$
b) Deferred tax
assets/liabilities
Unused tax losses for which no deferred tax asset
has been recognised
23,560,995
23,067,771
Temporary differences
(1,793,786)
(1,338,668)
Potential tax benefit at 25% (2023: 25%)
5,441,802
5,432,276
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.
Notes to Financial Statements for the financial year ended 30 June 2024
50
7.
Cash and cash equivalents
(a) Reconciliation of cash and cash equivalents
Cash and cash equivalents at the end of the financial year as shown in the consolidated
statement of cash flows are reconciled to the related items in the consolidated statement of
financial position as follows:
Consolidated Group
2024
2023
$
$
Cash and cash equivalents
172,368
702,519
Less: Bank overdraft
-
(21,966)
Cash and cash equivalents as reported in the
statement of cash flows
172,368
680,553
(b) Reconciliation of loss for the year to net cash flows from operating activities
Consolidated Group
2024
2023
$
$
Loss for the year
(1,049,446)
(3,766,704)
Share based payments
27,159
135,813
Foreign exchange gain/(loss)
(87,455)
(168)
Depreciation
15,257
26,115
Exploration impaired
170,136
127,583
Expected credit losses
92,685
306,836
Fair value movement on financial instruments at fair
value through profit and loss
(274,097)
1,097,233
Increase in trade and other receivables and other
assets
(31,851)
(1,950)
(Decrease) in trade and other payables
(222.024)
(115,987)
Increase in loan
150,000
-
Increase in provisions
(16,903)
53,717
Net cash (used in) operating activities
(1,162,758)
(2,137,512)
(c) Non-cash investing and financing activities
During the year, 61,467,988 shares (at $0.002 a share) were issued to certain KMPs as
payment in lieu of fees, with 30,733,994 free attaching options being granted (exercisable at
$0.003, expiring 11 December 2025). In addition, 10,000,000 options were issued to
Canaccord for assisting with the October 2023 placement, 257,500,000 options were issued
to non-KMP shareholders and 86,250,000 options were issued to certain KMPs as part of
the same placement, all on the same conditions (exercisable at $0.003, expiring in 2 years
from issue, 11/12/25 for KMP and 26/10/25 for Canaccord and non-KMP shareholders).
Notes to Financial Statements for the financial year ended 30 June 2024
51
7.
Cash and cash equivalents (continued)
(c) Non-cash investing and financing activities (continued)
In the prior 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).
8.
Trade and other receivables
Consolidated Group
2024
2023
$
$
GST Receivable (none past due or impaired)
52,867
48,341
9.
Other financial assets
Consolidated Group
2024
2023
$
$
Nex receivable(1)
-
-
Rental security bond
-
10,908
-
10,908
(1) The Nex receivable comprises $1,679,314 (2023: $1,586,629) 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 $247,321 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.
Consolidated Group
2024
2023
$
$
Nex receivable
1,679,314
1,586,629
Less: Expected credit loss
(1,679,314)
(1,586,629)
-
-
Consolidated Group
2024
2023
$
$
Nex receivable at the beginning of the period
1,586,629
1,279,794
Plus: 49% of joint operation billings for the period
92,685
306,835
Nex receivable at the end of the period
1,679,314
1,586,629
Notes to Financial Statements for the financial year ended 30 June 2024
52
10. Exploration and evaluation expenditure
Consolidated Group
2024
2023
$
$
Exploration at cost at the beginning of the period
7,012,544
6,426,763
Acquisition costs(1)
-
137,500
Exploration and evaluation expenditure
170,136
127,583
Impairment of exploration expenditure (refer note 12)
(170,136)
(127,583)
Written off of exploration expenditure
(107,382)
-
Exploration and evaluation expenditure
- Interest in joint operation (2)
423,155
342,603
Exploration and evaluation expenditure - QLD interest
95,800
105,678
Closing balance
7,424,117
7,012,544
Total expenditure incurred and carried forward in respect of specific projects
- Kookynie/Yundamindra Area of interests Assets
7,085,138
6,769,365
- Other
338,979
243,179
Total carried forward exploration expenditure
7,424,117
7,012,544
(1) In the prior 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)
(2)
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. Arika is the Manager of the JV, as such the
principal place of business for the joint operation is from Arika’s office.
Arika’s share of joint operations in its joint venture with Nex is as follows:
Joint Operation
2024
2023
$
$
Current assets
Cash and cash equivalents
403
571
Cash calls receivable from Nex
1,679,314
1,586,630
Total current assets
1,679,717
1,587,201
Current liabilities
Loan payable to Arika
2,270,295
1,454,259
Total current liabilities
2,270,295
1,454,259
Joint Venture net assets
(590,578)
132,942
51% share of Joint Venture net assets
(301,195)
67,800
Notes to Financial Statements for the financial year ended 30 June 2024
53
10.
Exploration and evaluation expenditure (continued)
The Group’s share of exploration and evaluation in its joint operation is $1,868,950 as at 30 June
2024 (2023: $1,445,794). 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
Consolidated Group
2024
2023
$
$
Shares in listed Corporations
2,010,045
1,735,948
The Group held 91,365,685 shares in Nex at 30 June 2024. This financial asset is carried at fair
value through profit and loss for year ended 30 June 2023 (30 June 2023: 91,365,685 shares in
Nex).
Consolidated Group
2024
2023
$
$
Opening balance – at fair value
1,735,948
2,838,053
(Subtractions)/Additions – at fair value
-
(4,872)
Fair value adjustment
274,097
(1,097,233)
Closing balance – at fair value
2,010,045
1,735,948
The revaluation of the shares to the above value resulted in a $274,097 gain that flowed through
the Statement of Profit or Loss as a “Fair Value movement on financial instruments at fair value
through profit and loss”.
12. Discontinued operations
Consolidated Group
2024
2023
$
$
Kimberley Mining Limited – Admiral Bay Project
170,136
127,583
Transfer of foreign currency translation reserve to profit
and loss (discontinued operation)
87,455
(168)
257,591
127,415
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.
Notes to Financial Statements for the financial year ended 30 June 2024
54
12. Discontinued operations (continued)
(i) Financial performance information
Consolidated Group
2024
2023
$
$
Exploration and evaluation expenses
-
-
Impairment of exploration and expenditure assets
(170,136)
(127,583)
Gain on transfer of foreign currency translation reserve
(87,455)
168
(257,591)
(127,415)
Income tax expense
-
-
Loss after income tax of discontinued operations
(257,591)
(127,415)
(ii) Cash flow information
Consolidated Group
2024
2023
$
$
Net cash used in operating activities
-
-
Net cash used in investing activities
(170,136)
(127,583)
Net cash used in financing activities
-
-
Net cash outflow
(170,136)
(127,583)
(iii) Carrying amount of assets and liabilities
Consolidated Group
2024
2023
$
$
Other receivables
21,566
22,273
Asset classified as held for sale
21,566
22,273
Liabilities held for sale*
(876,180)
(706,044)
Net liabilities attributable to discontinued operations
(854,615)
(683,771)
* Intercompany payables that are eliminated on consolidation.
13. Trade and other payables
Consolidated Group
2024
2023
$
$
Trade payables and accruals
276,977
315,450
Superannuation
3,038
3,038
PAYG payable
36,012
56,719
JV Payable – MCT shortfall
(291,049)
64,945
24,978
440,152
Notes to Financial Statements for the financial year ended 30 June 2024
55
14. Provisions
Consolidated Group
2024
2023
$
$
Employee benefits – annual leave
115,572
132,475
15. Issued capital
(a) Issued share capital
2024
2023
$
$
4,485,852,685 (2023: 3,736,085,806) fully paid
ordinary shares
66,050,356
64,561,230
66,050,356
64,561,230
(b) Movement in ordinary share capital
Date
Details
Number of
shares
$
01/07/2023
Opening balance
3,736,085,806
64,561,230
25/10/2023
Placement - Non-KMP^
515,000,000
$1,030,000
11/12/2023
Placement – KMP^
172,500,000
$345,000
11/12/2023
Payment in lieu of fees^
61,647,988
$122,926
11/12/2023
Share issue costs
-
16,799
31/05/2024
Exercise of options
798,891
7,988
30/06/2024
Balance at the end of the year
4,485,852,685
66,050,356
Date
Details
Number of
shares
$
01/07/2022
Opening balance
3,458,393,356
63,725,507
Various*
Nex takeover (65,000 Nex shares)
312,650
1,950
20/10/2022
Issued to Astralis for Mt Surprise
33,333,334
100,000
Purchase (EPM 28052)
22/02/2023
Initial consideration for Georgetown
12,500,000
37,500
purchase
May 2023
Private placement and payment in
231,546,466
694,639
lieu of fees**
Share issue costs (offset by prior
-
1,634
period adjustment)
30/06/2023
Balance at the end of the year
3,736,085,806
64,561,230
Notes to Financial Statements for the financial year ended 30 June 2024
56
15. Issued capital
(b) Movement in ordinary share capital (continued)
^ Shares issued as part of a private placement at $0.002 per share, 515,000,000 to non KMPs and 172,500,000 to
KMPs (12,500,000 to Justin Barton, 150,000,000 to Roger Steinepreis and 10,000,000 to Steven Wood).
In addition to 61,467,988 shares issued to directors as payment in lieu of fees of $122,936 (Justin Barton $55,549,
Roger Steinepreis $34,997 and Steven Wood $32,390) due for the period up to 30 September 2023 at $0.002 a
share
Shares issued to KMPs were approved at the AGM held on 24 November 2023 and those issued to non KMPs
were ratified at the General Meeting on 11 September 2024.
* As part of the takeover bid of Nex Metals Explorations Pty Ltd (“Nex”), the Company offered Nex shareholders,
4.81 Arika shares for every 1 share held in Nex.
** 179,999,999 Shares issued as part of a private placement to the directors (Justin Barton and Steven Woods
received 6,666,666 shares each and Roger Steinepreis received 166,666,666 shares) at $0.003 a share, raising
$540,00.
In addition to 51,546,468 shares issued to directors for payment in lieu of fees of $154,639 (Justin Barton $114,247,
Steven Wood $9,090 and Andrew Daley $31,302) due for the period up to 31 December 2022 at $0.003 per share.
All approved by shareholders at the General Meeting held on 5 May 2023.
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 2024, the Company had 605,596,326 options over ordinary shares
under issue (30 June 2023: 540,495,949). These options are exercisable as follows:
30 June 2024
Details
No of Options
Grant Date
Date of
Expiry
Conversion
Price $
Management Incentive Options
110,556,166
24/05/2023
24/05/2026
0.006
110,556,166
24/05/2023
24/05/2023
0.009
116,983,994
12/12/2023
11/12/2023
0.003
Other Options
267,500,000
27/10/2023
26/10/2025
0.003
605,596,326
30 June 2023
Details
No of Options
Grant Date
Date of
Expiry
Conversion
Price $
Management Incentive Options
110,556,166
24/05/2023
24/05/2026
0.006
110,556,166
24/05/2023
24/05/2023
0.009
Other Options
35,000,000
12/10/2020
13/10/2023
0.030
21,000,000
21/06/2021
22/06/2024
0.015
263,383,617
01/06/2022
01/06/2024
0.010
540,495,949
Notes to Financial Statements for the financial year ended 30 June 2024
57
16.
Options, Performance Rights and Warrants (continued)
(a) (ii) Free attaching options
Included in the tables in 16(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 2024
Free attaching
options
Number
Grant
Date
Expiry Date
Exercise
Price
Fair Value at
Grant Date
Issued 24/05/2023
110,556,166
24/05/2023
24/05/2026
0.006
$173,714
Issued 24/05/2023
110,556,166
24/05/2023
24/05/2026
0.009
$156,043
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
$0.006
$173,714
Issued 23/05/2023
110,556,166
23/05/2023
23/06/2026
$0.009
$156,043
Movements in options during the financial year are as follows:
2024
2023
No.
No.
Balance at beginning of the year
540,495,949
370,093,084
Granted during the year (note 19)
384,483,994
221,112,332
Exercised during the year
(798,891)
-
Forfeited/expired/cancelled during the year
(318,584,726)
(50,709,467)
Balance at the end of the year
605,596,326
540,495,949
(b) Performance Rights
At year ended 30 June 2024, the Company had 36,000,000 performance rights over ordinary
shares under issue (30 June 2023: 56,000,000). 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 2024
Details
No of Options
Grant Date
Date of
Expiry
Hurdle Price
$
Performance Rights
2,000,000
15/02/2023
15/02/2026
0.0135
2,000,000
15/02/2023
15/02/2026
0.0180
5,000,000
25/11/2022
19/12/2025
0.0150
5,000,000
25/11/2022
19/12/2025
0.0250
1,000,000
15/02/2023
15/02/2026
0.0075
1,000,000
15/02/2023
15/02/2026
0.0100
20,000,000
05/05/2023
31/05/2025
0.0200
36,000,000
Notes to Financial Statements for the financial year ended 30 June 2024
58
16. Options, Performance Rights and Warrants (continued)
(b) Performance Rights (continued)
30 June 2023
Details
No of Options
Grant Date
Date of
Expiry
Hurdle Price
$
Performance Rights
2,000,000
15/02/2023
15/02/2026
0.0135
2,000,000
15/02/2023
15/02/2026
0.0180
5,000,000
25/11/2022
19/12/2025
0.0150
5,000,000
25/11/2022
19/12/2025
0.0250
1,000,000
15/02/2023
15/02/2026
0.0075
1,000,000
15/02/2023
15/02/2026
0.0100
20,000,000
05/05/2023
31/05/2024
0.0100
20,000,000
05/05/2023
31/05/2025
0.0200
Total
56,000,000
Movements in performance rights during the financial year are as follows:
2024
2023
No.
No.
Balance at beginning of the year
56,000,000*
96,084,110
Prior year adjustment
-
-
Granted during the year
-
42,000,000
Exercised during the year
-
-
Forfeited/expired/cancelled during the year
(20,000,000)
(82,084,110)
Balance at the end of the year
36,000,000
56,000,000
*See table on previous page for conditions
Notes to Financial Statements for the financial year ended 30 June 2024
59
16. Options, Performance Rights and Warrants (continued)
(c) Kimberly Mining Limited Warrants
As at 30 June 2024, there were 31,128,738 in issued common shares in Kimberly Mining
Limited and 8,461,000 under warrants (30 June 2023: 31,128,738 common shares and
8,461,000 warrants). These warrants are exercisable/convertible as follows:
Details
No of Warrants
Date of Expiry
Conversion
Price $
Founder Warrants
5,317,250
None
0.05
Founder Warrants – Tranche 2
3,143,750
None
0.05
8,461,000
Founder warrants are convertible to 1 ordinary share in Kimberly Mining Limited upon
exercise.
2024
2023
No.
No.
Balance at beginning/end of the period
8,461,000
8,461,000
(d) Capital Management
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.
Notes to Financial Statements for the financial year ended 30 June 2024
60
17. Reserves
Consolidated
2024
$
2023
$
Shared based payment reserve
6,100,516
6,056,558
Foreign currency translation reserve
-
-
Total
6,100,516
6,056,558
Movement of Shared based payment reserve
30 June
$
Balance at 30 June 2022
5,920,745
Issue of performance rights in the 2023 year
19,537
Issue of performance rights in the 2022 year
116,275
Balance at 30 June 2023
6,056,558
Expensing of performance rights in the 2023 year
27,159
Issue of advisor options in the 2024 year
16,799
Balance at 30 June 2024
6,100,516
Movement of Foreign currency translation reserve
30 June
$
Balance at 30 June 2023
-
Foreign currency translation reserve movement during the period
(31,389)
Transfer of foreign currency translation reserve to profit and loss
(discontinued operation)
31,389
Balance at 30 June 2024
-
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.
Notes to Financial Statements for the financial year ended 30 June 2024
61
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 2024
At 30 June 2024, the Company recognised an expense of $27,159, for part expense of
performance rights issued in the prior period. In addition, the Company recognised an
expense of $33,598 for 20,000,000 advisor options issued during the period.
Options/Performance
Rights
Number
Grant
Date
Expiry
Date
Exercise
Price
Fair Value at
Grant Date
Options
20,000,000
27/10/2023
26/10/2025
$0.003
$33,598
20,000,000
Refer to note 17(b)(i) for further details.
30 June 2023
At 30 June 2023, the Company recognised an expense of $135,813, comprising $19,537 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
Number
Grant
Date
Expiry
Date
Exercise
Price
Fair Value at
Grant Date
Performance rights
1,000,000
01/07/2022
21/02/2026
$0.0075
$0.04700
1,000,000
01/07/2022
21/02/2026
$0.0100
$0.04400
20,000,000(1)
05/02/2023
31/05/2024
$0.0100
$0.0009
20,000,000
05/02/2023
31/05/2025
$0.0200
$0.000907
42,000,000
(1) These performance rights were forfeited on 31/05/2024.
Refer to note 17(b)(i) and note 16(b) for further details.
Notes to Financial Statements for the financial year ended 30 June 2024
62
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 was $27,159 expensed for share based payments during 2024, relating to
performance rights issued in the prior period (2023: $135,813).
30 June 2024 - None
30 June 2023
No of Performance Rights
1,000,000(1)
1,000,000(1)
20,000,000(2)
20,000,000(2)
Grant date
01/07/2022
01/07/2022
05/02/2023
05/02/2023
Share price
$0.005
$0.005
$0.002
$0.002
Exercise price
$0.0075
$0.01
$0.01
$0.02
Risk-free interest rate
3.087%
3.087%
3.33%
3.33%
Expiry date
21/02/2026
21/02/2026
31/05/2024
31/05/2025
Volatility(3)
90%
90%
209%
170%
Fair value at grant date
(cents)
$0.047
$0.044
$0.0009
$0.000907
Life
1,095 days
1,095 days
365 days
730 days
(1) Performance rights were granted and issued to an employee during the prior 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 prior 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.
(ii) Options
30 June 2024
The 10,000,000 options issued to advisors during the year ended 30 June 2024 have
been valued using the Black Scholes model, $16,799 is fully recognised in equity as
transaction costs during the prior financial year ended, with the following inputs:
No of Options
10,000,000
Grant date
27/10/2023
Share price
$0.002
Exercise price
$0.003
Risk-free interest rate
4.31%
Vesting Conditions and Period
Nil
Expiry date
26/10/2025
Volatility
210%
Fair value at grant date (cents)
$0.002
30 June 2023 - None
Notes to Financial Statements for the financial year ended 30 June 2024
63
17. Reserves (continued)
(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:
2024
2024
2023
2023
No
WAEP
No
WAEP
Outstanding at the beginning of the year
76,000,000
.008
126,709,467
0.002
Granted during the year
10,000,000
.001
-
-
Exercised during the year
-
-
-
-
Expired/forfeited/cancelled during the year
(21,000,000)
.015
(50,709,467)
0.003
Outstanding at the end of the year
35,000,000
.007
76,000,000
0.008
(d) Weighted average of remaining contractual life
The weighted average remaining contractual life for the share options outstanding as at 30
June 2024 is 1.06 years (2023: 1.69 years).
The weighted average remaining contractual life for the performance rights outstanding as
at 30 June 2024 is 0.6 years (2023: 1.58 years)
(e) Range of exercise price
The range of exercise prices for options outstanding at the end of the year 30 June 2024
was $0.003-$0.009 (2023: $0.003-$0.015). The performance rights do not have an exercise
price.
Notes to Financial Statements for the financial year ended 30 June 2024
64
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 2024
Financial Assets
Cash and deposits
170,041
-
-
-
2,327
172,368
Trade and other
receivables
-
-
-
-
52,867
52,867
Financial asset at FV
through P&L
-
-
-
-
2,010,045
2,010,045
Nex cash call
1,679,314
-
-
-
-
1,679,314
Other financial assets
1,849,356
-
-
-
2,065,239
3,914,595
Weighted average
interest rate
6.55%
Financial liabilities
Trade and other
payables
-
-
-
-
85,390
85,390
Borrowings
150,000
150,000
-
150,000
-
-
85,390
285,390
Weighted average
interest rate
6.5%
30 June 2023
Financial Assets
Cash and deposits
698,110
-
-
-
4,410
702,520
Trade and other
receivables
-
-
-
-
48,342
48,342
Financial asset at FV
through P&L
-
-
-
-
1,735,948
1,735,948
Nex cash call
1,586,629
1,586,629
Other financial assets
10,636
-
-
-
272
10,908
2,295,375
-
-
-
1,788,975
4,084,346
Weighted average
interest rate
2.794%
2.794%
Financial liabilities
Bank overdraft
-
-
-
-
21,966
21,966
Trade and other
payables
-
-
-
-
326,248
326,248
-
-
-
-
348,214
348,214
Notes to Financial Statements for the financial year ended 30 June 2024
65
18.
Financial Risk Management (continued)
(a) Interest Rate Risk (continued)
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 +/- $18,494 (2023: $22,954)
impact on the Group’s income and operating cash flows. At this time, no detailed sensitivity
analysis is undertaken by the Group.
(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 $2,010,045 as at 30 June 2024 (2023:
91,365,685 shares valued at $1,735,948). 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:
Consolidated
2024
2023
+/- 10%
$
$
Impact on profit/(loss) after tax
201,004
173,595
Impact on equity
(201,004)
(173,595)
(c) Credit risk
Current
>30 days
>60 days
>90 days
Other
Total
$
$
$
$
$
$
30 June 2024
Financial Assets
Cash & deposits
172,368
-
-
-
-
172,368
Trade and other receivables
52,867
-
-
-
-
52,867
Other financial assets:
Nex Receivable
-
-
-
1,679,314
-
-
Lifetime Expected Credit Loss
-
-
-
(1,679,314)
-
-
Subtotal – other financial
assets
-
-
-
-
-
-
225,235
-
-
-
-
225,235
Notes to Financial Statements for the financial year ended 30 June 2024
66
18.
Financial Risk Management (continued)
(c) Credit risk (continued)
Current
>30 days
>60 days
>90 days
Other
Total
$
$
$
$
$
$
30 June 2023
Financial Assets
Cash & deposits
702,520
-
-
-
-
702,520
Trade and other receivables
48,342
-
-
-
-
48,342
Other financial assets:
Rental security bond
-
-
-
-
10,908
10,908
Nex Receivable
-
-
-
1,586,629
-
-
Lifetime Expected Credit Loss
-
-
-
(1,586,629)
-
-
Subtotal – other financial
assets
-
-
-
-
10,908
10,908
750,862
-
-
-
10,908
761,770
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
(2023: 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
Notes to Financial Statements for the financial year ended 30 June 2024
67
18.
Financial Risk Management (continued)
(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
2024
2023
2024
2023
2024
2023
$
$
$
$
$
$
Financial liabilities due for
payment
Trade and other payables
85,390
326,248
-
-
85,390
326,248
Bank overdraft
-
21,966
-
-
-
21,966
Borrowings
150,080
-
-
-
150,080
-
Lease liabilities
-
7,563
-
-
-
7,563
Total expected outflows
235,470
355,777
-
-
235,470
355,777
Financial asset - cash flows
realisable
Cash and cash equivalent
172,368
702,520
-
-
172,368
702,520
Trade, term and loan receivables
52,867
48,342
-
-
52,867
48,342
Financial assets at fair value
through profit & loss
2,010,045
1,735,948
-
-
2,010,045
1,735,948
Rental Security bond
-
10,908
-
-
-
10,908
Total anticipated inflows
2,235,280
2,497,718
-
-
2,235,280
2,497,718
Net (outflow)/inflow on financial
instruments
1,999,810
2,141,941
-
-
1,999,810
2,141,941
Notes to Financial Statements for the financial year ended 30 June 2024
68
19. Key management personnel disclosures
Consolidated Group
Key management personnel compensation
2024
2023
$
$
Short-term employee benefits
437,068
603,800
Post-employment benefits
45,104
59,114
Share based payments
27,159
135,813
509,331
798,727
Detailed remuneration disclosures are provided in the Remuneration Report in the Directors’
Report.
Apart from the Company’s Directors and Officers, the Group had 1 employee as at 30 June 2024
(30 June 2023: 2 employees).
20. Remuneration of auditors
21. Contingent liabilities
The Group has no contingent liabilities as at 30 June 2024 (2023: Nil).
Consolidated Group
2024
2023
$
$
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
45,871
49,850
- Under provision of audit fee for prior
year
-
1,540
Non-audit services
- Other services provided
37,000
33,5000
Total remuneration for audit and other
services
82,871
86,390
From 2021, the auditors of Arika Limited and its subsidiaries has been Pitcher Partners BA&A Pty
Limited.
Notes to Financial Statements for the financial year ended 30 June 2024
69
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):
Consolidated Group
2024
2023
$
$
Not longer than 1 year
1,163,540
643,040
Longer than 1 year and not longer than 5 years
-
-
Longer than 5 years
-
-
1,163,540
643,040
23. Related Party transactions
(a) Key management personnel
During the year ended 30 June 2024, Related party transactions with key management
personnel, other than that disclosed in note 20 are set out below:
- Steinepreis Paganin completed $41,451 in legal work for the Group during the year (2023:
$64,000). Roger Steinepreis is the Executive Chairman of the company.
- On 26 June 2024, Roger Steinepreis agreed to provide a short term funding facility to the
Group, if required, of up to $150,000. The amount was fully drawdown on 27 June 2024
(2023: Nil). The funding is to be repaid out of the proceeds of any capital raising. The amount
drawn accrues interest at a rate of 6.5% per annum.
- Grange Consulting Group Ltd were paid $12,600 for consulting fees by the Group during
the year (2023: $24,255). Steven Wood was a director and shareholder of the company at
the time.
(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 2024 (2023: $3,497).
Notes to Financial Statements for the financial year ended 30 June 2024
70
24. Earnings per share
Consolidated Group
(a) Basic earnings per share
2024
Cents
2023
Cents
Loss from continuing operations attributable to the
ordinary equity holders of the Company
(0.01)
(0.10)
Loss from discontinued operations attributable to the
ordinary equity holders of the Company
(0.01)
(0.00)
(0.02)
(0.10)
(b) Diluted earnings/(loss) per share
Loss from continuing operations attributable to the
ordinary equity holders of the Company
(0.01)
(0.10)
Loss from discontinued operations attributable to the
ordinary equity holders of the Company
(0.01)
(0.00)
(0.02)
(0.10)
(c) Reconciliation of profit/(loss) used in calculating
earnings per share
2024
$
2023
$
Basic and diluted profit/(loss) per share
Loss from continuing operations attributable to the
ordinary equity holders of the Company
(791,855)
(3,639,289)
Loss from discontinued operations
(257,591)
(127,415)
(1,049,446)
(3,766,704)
(d) Weighted average number of shares used as the
denominator
2024
2023
Number
Number
Weighted average number of ordinary shares used as the
denominator in calculating basic earnings/(loss) per
share
4,213,606,346
3,731,166,449
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
4,213,606,346
3,731,166,449
As the Group made a loss for the years ended 30 June 2024 and 30 June 2023, the options on
issue have no dilutive effect. Therefore, dilutive loss per share is equal to basic loss per share.
Notes to Financial Statements for the financial year ended 30 June 2024
71
25. Group entities
Country of
incorporation
Interest
2024
Interest
2023
Parent entity
Arika Limited
Australia
Subsidiary
Metalicity Energy Pty Ltd
Australia
100%
100%
KYM Mining Pty Ltd
Australia
100%
100%
Kimberley Mining Limited(1)
Canada
~80.3%
~80.3%
Kimberley Mining Australia Pty Ltd(1)
Australia
~80.3%
~80.3%
Kimberley Mining Holdings Pty Ltd(1)
Australia
~80.3%
~80.3%
(1)
Arika 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 ~2.03% of the net assets of the Group, being $168,359 at 30 June 2024 (2023: $134,623). Please refer
to note 12 for further details on the summarised financial information of KML.
26.
Parent entity information
Statement of financial position
ASSETS
Parent
2024
$
Parent
2023
$
Total current assets
9,049,785
9,278,415
Total non-current assets
-
46,916
TOTAL ASSETS
9,049,785
9,424,611
LIABILITIES
Total current liabilities
400,615
537,527
Total non-current liabilities
150,080
-
TOTAL LIABILITIES
550,695
537,527
NET ASSETS
8,499,090
8,887,084
EQUITY
Contributed equity
66,050,358
64,561,232
Other reserves
4,104,781
4,031,389
Shares to be issued
-
-
Accumulated losses
61,656,050
(59,705,537)
TOTAL EQUITY
8,499,090
8,887,084
Loss of the parent entity
(1,800,550)
(3,917,617)
Total comprehensive loss of the parent entity
(1,800,550)
(3,917,617)
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.
Notes to Financial Statements for the financial year ended 30 June 2024
72
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
other than the below:
1) On 12 July 2024 the Company announced it had completed the settlement of all disputes
between Nex and Arika agreed on 21 December 2023. Arika now holds an 80% interest in
the JV.
2) On 31 July 2024 the Company announced it had received commitments from investors for
a $1 million Placement, including $120,000 commitments from directors. A total of 500
million shares at an issue price of $0.0025 to be issued, together with 2 for 3 free attaching
options exercisable at $0.0025 with an 18-month expiry. Funds to be used to accelerate
exploration at the Yundamindra Gold Project. The placement comprised of two tranches:
•
A first tranche was completed on 6 August 2024 raising approximately $0.42 million
within the Company’s available placement capacity pursuant to ASX Listing Rules
7.1 and 7.1A; and
•
A second tranche was completed on 19 September 2024, raising approximately
$0.58 million, after shareholder approval was obtained at a General Meeting held
on 11 September 2024.
3) On 18 September 2024 the Company completed a consolidation of its securities on a 10:1
basis, after receiving shareholder approval on 11 September 2024.
4) On 26 September 2024 the Company’s name change to Arika Resources Limited became
effective, as approved by shareholders on 11 September 2024.
Consolidated Entity Disclosure Statement
73
The Company is required by Australian Accounting Standards to prepare consolidated financial statements in
relation to the Company and its controlled entities (the Group).
In accordance with subsection 295(3A) of the Corporations Act 2001, this consolidated entity disclosure
statement provides information about each entity that was part of the consolidated entity at the end of the
financial year.
Country of
incorporation
Interest
2024
Tax resident
Parent entity
Arika Limited
Australia
Australia
Subsidiary
Metalicity Energy Pty Ltd
Australia
100%
Australia
KYM Mining Pty Ltd
Australia
100%
Australia
Kimberley Mining Limited
Canada
~80.3%
Canadia
Kimberley Mining Australia Pty Ltd
Australia
~80.3%
Australia
Kimberley Mining Holdings Pty Ltd
Australia
~80.3%
Australia
At the end of the financial year, no other entity within the Group was a trustee of a trust within the Group, a
partner in a partnership within the Group, or a participant in a joint venture within the Group other than KYM
Mining Pty Ltd who held a 51% participating interest in the Yundamindra and Kookynie Projects, through its joint
venture with Nex Metals Explorations Limited.
ASX Additional Information
74
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 23 September 2024.
(a) Substantial Shareholder
There is one substantial shareholder as defined by the Corporations Act 2001.
Name
Number of
Shares
Power %
Genteel Nominees
Pty
Ltd,
Roger
Steinepreis, David
Paganin
39,006,496
7.8%
(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
Shares
% Issued Capital
1 – 1,000
1,008
186,732
0.04
1,001 – 5,000
852
2,536,497
0.51
5,001 – 10,000
612
4,967,566
1.00
10,001 – 100,000
1,607
61,398,813
12.31
100,001 and over
622
429,494,894
86.14
Total
4,701
498,584,502
100.00
There were 118,302,135 unmarketable parcels of ordinary shares.
(ii) Listed Options
There are no listed options.
(iii) Unquoted Options
Category
Total Holders
Unlisted Options
% of Unlisted Options
1 – 1,000
-
-
-
1,001 – 5,000
-
-
-
5,001 – 10,000
-
-
-
10,001 – 100,000
1
45,500
1.54
100,001 and over
64
95,847,456
98.46
Total
65
95,892,956
100.00
ASX Additional Information
75
(c) Distribution of Equity Security Holders (continued)
(iv) Unquoted Performance Rights
Category
Total
Holders
Unlisted
Performance Rights
% of Unlisted
Performance Rights
1 – 1,000
-
-
-
1,001 – 5,000
-
-
-
5,001 – 10,000
-
-
-
10,001 – 100,000
-
-
-
100,001 and over
3
3,600,000
100.00
Total
3
3,600,000
100.00
(d) Equity Security Holders
(i)
Ordinary Shares
The names of the twenty largest ordinary fully paid shareholders at 23 September 2024 are:
Number Held
Percentage of
Issued Shares
1
GENTEEL NOMINEES PTY LTD
38,416,496
7.7
2
COVENTINA HOLDINGS PTY LTD
10,987,410
2.2
3
HISHENK PTY LTD
14,000,000
2.81
4
BNP PARIBAS NOMS PTY LTD
10,146,884
2.04
5
E C DAWSON SUPER PTY LTD
6,941,515
1.39
7
RUBI HOLDINGS PTY LTD
6,802,125
1.36
8
CITICORP NOMINEES PTY LTD
6,317,857
1.27
9
NEPALULURU PTY LTD
6,000,000
1.20
10
MR CAJETAN FRANCIS MASCARENHAS
5,220,000
1.05
11
MR DENGMING XIAO
4,868,000
0.98
12
MR DAVID KENLEY
4,656,592
0.93
13
RECO HOLDINGS PTY LTD
4,534,751
0.91
14
NARDIE GROUP PTY LTD
4,089,176
0.82
15
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
4,013,840
0.81
16
HAWKESTONE RESOURCES PTY LTD
4,000,000
0.80
16
GOLDSBOROUGH PTY LTD
4,000,000
0.80
16
STRATA RESOURCES PTY LTD
4,000,000
0.80
17
MR MARK EDWIN ROBERTS
3,600,000
0.72
18
WINDELL HOLDINGS PTY LTD
3,482,302
0.70
18
SKYWALKER HOLDINGS WA PTY LTD
3,482,302
0.70
19
SANPEREZ PTY LTD
3,413,899
0.68
20
JAMES HACHEM WEALTH PTY LTD
4,401,016
0.68
Total Top 20
165,047,666
33.10
Total other holders
333,536,836
66.90
Total shares on issue
498,584,502
100.00
ASX Additional Information
76
(e) Unquoted Securities
(i) Unlisted Options
Class
Expiry Date
No. of
Holders
Exercise
Price
No. of
Options
MCTOP52
11 December 2025
3
$0.03
11,698,397
MCTOP51
26 October 2025
34
$0.03
26,749,995
MCTOP49
24 May 2026
3
$0.06
11,055,6169
MCTOP50
24 May 2026
3
$0.09
11,055,6169
MCTAAA
19 March 2026
29
$0.025
35,333,332
Total
95,892,956
(ii) Unlisted Performance Rights
Class
Expiry Date
No. of
Holders
Vesting at
No. of
Options
MCTPERF8
21 February 2026
1
$0.135
2,000,00010
MCTPERF9
21 February 2026
1
$0.180
2,000,00010
MCTPERF5
19 December 2025
1
$0.150
5,000,00011
MCTPERF5A
19 December 2025
1
$0.250
5,000,00011
MCTPERF6
21 February 2026
1
$0.075
1,000,00012
MCTPERF7
21 February 2026
1
$0.100
1,000,00012
MCTPERF11
31 May 2025
1
$0.200
20,000,00011
Total
3,600,000. .
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.
9 Genteel Nominees Pty Ltd (Roger Steinepreis controls 50% of) owns 8,333,333, Coventina Holdings Pty Ltd
(a company controlled by Justin Barton) owns 2,237,450 and Nardie Group Pty Ltd (a company controlled by
Steven Wood) owns 484,833
10 Stephen Guy owns 100%
11 Coventina Holdings Pty Ltd owns 100%
12 Kate Breadmore owns 100%
ASX Additional Information
77
Resources Statement
Mineral Resource Estimate – Kookynie Gold Project.
The current Mineral Resource Estimate (MRE) for the Kookynie Gold Project as at 30th June 2024 is
reported below.
Mineral Resource Estimate
Mineral Resource
Tonnes (Kt)
Grade (g/t Au)
Contained Ounces
Indicated Mineral Resources
450
1.3
19,000
Inferred Mineral Resources
1,130
1.7
62,000
Total Mineral resources
1,580
1.6
81,000
Note: Mineral Resources are reported to a 0.5 g/t Au cut-off grade.
Indicated and Inferred Mineral Resource Estimate Subdivided by Deposit
Indicated
Inferred
Deposit
Tonnes
(kt)
Au Grade
(g/t)
Ounces
Tonnes
(kt)
Au Grade
(g/t)
Ounces
Leipold
450
1.3
19,000
630
1.7
34,000
Champion
-
-
-
380
1.7
20,000
McTavish
-
-
-
120
2.0
8,000
Total
450
1.3
19,000
1,130
1.7
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.
ASX Additional Information
78
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.
Disclaimer and Forward-Looking Statements
This report is not a prospectus nor an offer of securities for subscription or sale in any jurisdiction nor a securities
recommendation. The information in this report is an overview and does not contain all information necessary for
investment decisions. In making investment decisions, investors should rely on their own examination of Arika
Resources 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 Arika Resources 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, Arika
Resources 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 Arika Resources 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 Arika Resources 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; and
(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.
ASX Additional Information
79
The Company disclaims any intent or obligation to publicly update any forward-looking statements, whether
because of new information, future events or results or otherwise.
Competent Person Statements
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.
No New Information
To the extent that this announcement contains references to prior exploration results which have been cross
referenced to previous market announcements made by the Company, unless explicitly stated, no new
information is contained. The Company confirms that it is not aware of any new information or data that materially
affects the information included in the relevant market announcements and, in the case of estimates of Mineral
Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant
market announcements continue to apply and have not materially changed.
ASX Additional Information
80
(f)
Tenement List:
As at 25 September 2024
Tenement
Registered Holder
Shares
Held
Plainted
Status
Area (ha)
Nature of
Interest
Interest
Kookynie
P40/1331
KYM Mining Limited
100/100
No
Live
161.2
Direct Holding
80%
E40/390
KYM Mining Limited
100/100
No
Live
3,300.0
Direct Holding
80%
E40/350
KYM Mining Limited
100/100
No
Live
2,394.0
Direct Holding
51%
E40/357
KYM Mining Limited
100/100
No
Live
1,194.0
Direct Holding
51%
E40/353
KYM Mining Limited
100/100
No
Live
598.0
On Application
51%
P40/1407
KYM Mining Limited
100/100
No
Live
10.0
Direct Holding
80%
P40/1430
KYM Mining Limited
100/100
No
Live
9.9
Direct Holding
80%
E40/387
Metalicity Limited
100/100
No
Live
299.0
Direct Holding
80%
G40/3
Nex Metals Explorations Limited
100/100
No
Live
7.2
Earnt In
80%
L40/9
Nex Metals Explorations Limited
100/100
No
Live
1.0
Earnt In
80%
E40/332
Nex Metals Explorations Limited
100/100
No
Live
600.0
Earnt In
80%
M40/22
Nex Metals Explorations Limited
100/100
No
Live
121.7
Earnt In
80%
M40/27
Nex Metals Explorations Limited
100/100
No
Live
85.5
Earnt In
80%
M40/61
Nex Metals Explorations Limited
100/100
No
Live
832.7
Earnt In
51%
M40/77
Nex Metals Explorations Limited
90,405/
90,405
No
Live
119.2
Earnt In
80%
P40/1501
Nex Metals Explorations Limited
100/100
No
Live
21.1
Earnt In
80%
E40/289
Paris Enterprises Pty Ltd
100/100
No
Live
1,222.7
Earnt In
51%
Kookynie Total Area (ha)
11,353.1
Yundamindra
L39/34
Nex Metals Explorations Limited
100/100
No
Live
1.0
Earnt In
80%
L39/52
Nex Metals Explorations Limited
96/96
No
Live
1.0
Earnt In
80%
L39/258
Nex Metals Explorations Limited
100/100
No
Live
3.2
Earnt In
80%
M39/84
Nex Metals Explorations Limited
100/100
No
Live
378.0
Earnt In
51%
M39/274
Nex Metals Explorations Limited
100/100
No
Live
230.0
Earnt In
51%
M39/406
Nex Metals Explorations Limited
100/100
No
Live
124.0
Earnt In
51%
M39/407
Nex Metals Explorations Limited
100/100
No
Live
896.0
Earnt In
51%
M39/408
Nex Metals Explorations Limited
100/100
No
Live
785.0
Earnt In
51%
M39/409
Nex Metals Explorations Limited
100/100
No
Live
966.0
Earnt In
51%
M39/410
Nex Metals Explorations Limited
100/100
No
Live
978.0
Earnt In
51%
M39/839
Nex Metals Explorations Limited
100/100
No
Live
7.3
Earnt In
51%
M39/840
Nex Metals Explorations Limited
100/100
No
Live
9.7
Earnt In
51%
P39/6126
Nex Metals Explorations Limited
100/100
No
Live
10.4
Earnt In
80%
P39/6127
Nex Metals Explorations Limited
100/100
No
Live
5.6
Earnt In
80%
E39/1773
Paddick Investments Pty Ltd
100/100
No
Live
903.0
Earning-in
51%
E39/1774
Paddick Investments Pty Ltd
100/100
No
Live
2,517.0
Earning-in
51%
Yundamindra Total Area (ha)
7,815.1
ASX Additional Information
81
(f)
Tenement List: (continued)
As at 25 September 2024
Tenement
Registered Holder
Status
Area
Nature of Interest
Interest
Admiral Bay
E04/1610
Kimberley Mining Australia Pty Ltd
Live
42 Blocks
Holding in Subsidiary
80.3%
M04/244
Kimberley Mining Australia Pty Ltd
Live
796.4 ha
Holding in Subsidiary
80.3%
M40/249
Kimberley Mining Australia Pty Ltd
Live
843.85 ha
Holding in Subsidiary
80.3%
Tenement
Registered Holder
Status
Area
Nature of Interest
Interest
Queensland Projects
EPM 28052
Metalicity Energy Pty Ltd
Live
32,500 ha
MCT Beneficial owner
100%
EPM 28653
Metalicity Energy Pty Ltd
Live
3,575 ha
MCT Beneficial owner
100%