More annual reports from Methode Electronics:
2023 ReportMETEORIC RESOURCES NL
ABN 64 107 985 651
ANNUAL REPORT
FOR THE YEAR ENDED
30 JUNE 2022
Non-Executive Chairman
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Registered and Principal Office
Level 1, 33 Ord Street
West Perth WA 6005
Telephone: +61 8 9226 2011
Email:
Web:
info@meteoric.com.au
www.meteoric.com.au
Share Registry
Automic Registry Services
Level 2, 267 St Georges Terrace
Perth WA 6000
Telephone: 1300 288 664
Facsimile:
+61 2 9698 5414
Auditor
BDO Audit (WA) Pty Ltd
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
CORPORATE DIRECTORY
Directors
Patrick Burke
Andrew Tunks
Shastri Ramnath
Paul Kitto
Marcelo de Carvalho
Company Secretary
Matthew Foy
Stock Exchange Listing
Australian Securities Exchange
ASX Code - MEI
Bankers
Bank of Western Australia Ltd
306 Murray Street
Perth WA 6000
CONTENTS
Corporate Directory
Directors’ Report
Auditor’s Independence Declaration
Consolidated statement of Profit or Loss and Other Comprehensive Income
Consolidated statement of Financial Position
Consolidated statement of Changes in Equity
Consolidated statement of Cash Flows
Notes to and forming part of the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Tenement Details
Other Information
2
3
24
25
26
27
28
29
58
59
63
65
METEORIC RESOURCES NL
- 2 -
DIRECTORS’ REPORT
The Company presents its financial report for the consolidated entity consisting of Meteoric Resources NL (Company,
Meteoric or MEI) and the entities it controls (Consolidated Entity or Group) at the end of, or during, the year ended 30
June 2022.
Meteoric completed this financial year focusing on the following key gold assets:
-
-
Juruena Gold Project, Brazil
Palm Springs Gold Project, Western Australia
REVIEW OF OPERATIONS
Palm Springs Gold Project: Western Australia
Geology and Mineralisation
Drilling during the financial year confirmed gold mineralisation at the Butchers Creek Deposit is stratabound within a
single intermediate intrusive unit (syenite). The localisation of alteration, including intense sulfidation and related gold
mineralisation within the syenite appears to be related to a rheology contrast between the syenite and the surrounding
sedimentary rocks. The syenite deforms in a brittle manner allowing veining, fracturing and alteration to concentrate
there. This is most prevalent in the hinge zone region of a northeast striking, shallowly southwest plunging fold where
thick zones of mineralisation (up to 70m down hole) are often intersected.
Exploration Programs
Meteoric continued to receive strong gold assay results from the Butchers Creek Deposit drilling. The results from final
assays for 2021 (see ASX Announcements 22 September 2021 & 26 October 2021), again confirmed Meteoric’s model of
broad, consistent intercepts averaging 2g/t of gold, which are ideal for open pit mining. Assay results also continued to
outline a high-grade core zone with results consistently above 5g/t that sits inside the broader mineralised envelope.
The orebody geometry suggests that development could proceed underground on this higher-grade hinge-zone to the
south from a substantially enlarged historic open pit.
Brownfields exploration completed during 2021 identified new targets to the north and west of the Butchers Creek
resource that the Company is confident will open up exciting new drill targets and has been the focus of the 2022
exploration programs.
The 2021 drilling season was carefully planned to improve confidence in the high-grade portions of the resource which
currently stands at 5.2Mt @ 1.9g/t Au for 319,000 oz Au comprising 3.3Mt @ 1.7g/t Au Inferred and 1.9Mt @2.2g/t Au
Indicated. Drilling targeted the hinge zone position in areas with insufficient drilling to test for continuations of
mineralised syenite south of the current resource. Final assays from drilling at the Butchers Creek Deposit in 2021 added
further zones of gold mineralisation, enhancing the anticline hinge zone target:
o
o
o
o
BCRD486 – 29m @ 2.0g/t Au from 286m
including – 2m @ 5.9g/t Au from 291m
including – 2m @ 8.8g/t Au from 312m
BCRD482 – 9m @ 1.4g/t Au from 311m
BCRD483 – 57m @ 1.6g/t Au from 223m
including - 18m @ 3.1g/t Au from 234m
BCRD484 – 32m @ 1.4g/t Au from 266m
including - 4m @ 6.0g/t Au from 266m
Hole BCRD486
Drilling on Section 9660mN (Figure 1) confirmed continuity of the partial hinge zone intersected 40m north in BCRC476
(21m @ 6.07g/t Au from 264m: ASX announcement 30 November 2020). BCRD486 intersected a 48m thick zone of
syenite on the shoulder of the hinge zone (not optimal) grading 29m @ 2.0g/t Au from 286m, including 2m @ 5.9g/t Au
from 291m & 2m @ 8.8g/t Au from 312m.
METEORIC RESOURCES NL
- 3 -
DIRECTORS’ REPORT (continued)
The presence of internal higher-grade zones within the broader mineralised intercept supports the existence of
previously reported high-grade shoots within the broader hinge zone intersections.
Figure 1. Project geology and collar plan showing historic drill holes and MEI’s 2020 & 2021 programs. Blue line
shows SE limit of 2020 MRE. Solid blue arrow shows direction of fold plunge and orebody which remains open.
Figure 2. Detailed cross section 9660m N: BCRD486
geology and mineralised intercept.
Hole BCRD486 intercepted the shoulder of the
Hinge Zone with 29m @ 2.0g/t Au with several
internal high-grade zones of 2m @ 5.9g/t Au and 2m
@ 8.8g/t Au.
Solid drill traces are holes from 2021 Drilling
Program. Geology is shown to left of trace and
significant gold grades to right. Host Syenite =
Green.
Dashed drill traces are from 2020 Drilling Program.
Inset shows complete cross section from surface.
METEORIC RESOURCES NL
- 4 -
DIRECTORS’ REPORT (continued)
Figure 3. Detailed corss section 9780m N:
BCRD484 & 482 geology and mineralised
intercepts.
Hole BCRD484 intercepted a broad hinge
zone of 32m @ 1.4g/t with an internal high-
grade zone of 4m @ 6.0g/t from 266m
downhole. A further zone of 20m @ 0.7 g/t
was intercepted from 311.
Hole BCRD482 intersected a 29m interval of
syenite on the Western Limb grading 9m @
1.4g/t Au (a considerable 60m down dip
from Hing Zone).
Solid drill traces are holes are from 2021
Drilling Program Geology is shown to left of
trace and significant gold grades to right.
Host Syenite = Green.
Dashed drill traces are holes are from 2020
Drilling Program.
Inset shows complete cross section from
surface.
Metallurgy
During the financial year a metallurgical testwork program was designed as a series of tests to gauge the complexity
required to recover gold using standard sulphide ore screening techniques. Samples of half core from Butchers Creek
holes BCRD484 (Composite #1) and BCRD486 (Composite #2) were sent to ALS laboratories in Perth where the two
composites, one from each hole, were formulated.
Prior to compositing, half-core samples were set aside to measure the physical characteristics – UCS, Crushing Index
(CWi) and Ball Milling Index (BBMi).
Head samples were examined by XRD to gauge the extent of sulphide minerals present, then subjected to the following
standard test regime:
-
-
-
Grind Establishment.
Gravity followed by direct cyanide leach.
Gravity recovery followed by flotation, ultra fine grinding to 10 microns of the concentrate and leaching of the
tailings.
- Whole of ore leaching.
METEORIC RESOURCES NL
- 5 -
DIRECTORS’ REPORT (continued)
Table 1. Composite # 1 details
Sample ID
Sample
Description
Composite ID
As Received
Composite
Assay
Weight (kg)
Gold g/t
Sulphur %
BCRD484
Half Core
Palm Springs BCRD484 Fresh Composite #1
48.3
1.42
1.44
Table 2. Composite # 2 details
Sample
ID
Sample Description
Composite ID
As Received
Composite
Assay
Weight (kg)
Gold g/t
Sulphur %
BCRD486
Half Core, Surface
Moisture
Palm Springs BCRD486 Fresh
Composite #2
42.5
1.94
1.46
Mineralogy
The XRD analyses for testwork samples confirmed 1% combined sulphides mainly as the sulphides pyrite and pyrrhotite
and also contained calcite and carbonate-rich minerals, ~4% by mass. The presence of carbonate in the ore zones will
assist with moderating any potential acid forming properties of the tailings and reduce lime consumption in the process.
Leaching Tests
Gravity gold recovery was determined in a mini-Knelson Concentrator and the results of 48% gravity recoverable gold
were obtained for Composite #2. However, the overall “Whole of Ore” gold recoveries at 24 hours leach time, even in
conjunction with flotation, were only marginally improved from 95% to 96%. As such, as detailed in results reported in
December 2021, the extra capital and operating cost of gravity and flotation may not be justifiable. This will be subject
to further close examination as development of Palm Springs continues.
The most important outcome from all the test work is the high leach recovery of gold achieved on straight “Whole of
Ore” leaching, which indicates the gold is well liberated and not locked up or influenced by the presence of moderate
amounts of sulphides.
2022 Induced Polarisation (IP) Survey
IP surveying measures the chargeability and resistivity of the subsurface in the vicinity of survey lines. Chargeability
anomalies are commonly due to sulphides, plus carbonaceous shales and clay minerals. The resolution of a survey is
dependent on the dipole size, with smaller dipoles giving higher resolution. Southern Geoscience recommended dipole-
dipole arrays be used over areas containing good drill control with dipole sizes of 50-100m to achieve the required depth
of investigation and resolution. This would allow a maximum depth of investigation of the survey up to 300m using the
100m dipole spacing. Regardless of the chosen array, 2D lines mean that off-line features can be detected and projected
onto the survey plane.
The objectives of Meteoric’s IP survey are to assess the IP response (dominantly chargeability) of known gold
mineralisation south of Butchers Creek and at Golden Crown using orientation lines across the deposits, plus identify
blind mineralised syenite down plunge and along strike from the known deposits with additional lines north and south.
In addition, try to identify mineralised syenite at new targets associated with Mt Bradley and Halls Gully with dedicated
IP lines over each (Figure. 4).
The characteristics of gold mineralisation at Butchers Creek and Golden Crown (with up to 10% sulphides) makes IP an
ideal tool for exploring for additional mineralised syenite.
The proposed IP surveys were completed in early August 2022 and final results are pending.
METEORIC RESOURCES NL
- 6 -
DIRECTORS’ REPORT (continued)
Figure 4: Palm Springs – Proposed IP lines in
yellow for Butchers Creek and Golden Crown
prospects.
Note: Halls Gully not shown on this map.
Palm Springs Mineral Resource Estimate
The maiden Global Mineral Resource Estimate (MRE) for the Palm Springs Gold Project comprises mineralisation at
Butchers Creek and Golden Crown. The Global Resource, using a 0.8g/t Au lower cut-off, contains a total of 357,000 oz
of gold comprising 139,000 ounces @ 2.24g/t Au in the Indicated category and 218,000 ounces @ 1.9 g/t in the Inferred
category from two (2) deposits:
-
Butchers Creek (includes remaining resources below the historic Pit)
-
-
Indicated 1.9 Mt @ 2.24g/t for 139,000 oz Au; and
Inferred 3.3 Mt @ 1.7g/t for 180,000 oz Au
-
Golden Crown (restated under JORC 2012)
-
Inferred 390 Kt @ 3.1g/t for 38,000 oz Au
The MRE underpins the Company’s ability to grow and develop the project, which has a history of gold production.
Key points from the Palm Springs MRE include:
-
-
-
40% of MRE reported in Indicated category - significantly reducing planned exploration and development timelines
A large portion of the Indicated Resource at Butchers Creek occurs in the floor and beneath the historic pit, providing
immediate ore for future development
The Butchers Creek Resource largely sits within granted Mining Leases, potentially cutting approval times for
development
METEORIC RESOURCES NL
- 7 -
DIRECTORS’ REPORT (continued)
-
The Golden Crown area will be an important target moving forward as considerable upside is thought to be present
at this locality
Table 3: Meteoric’s Maiden Global Mineral Resource Estimate for the Palm Springs Gold Project.
Deposit
Butchers Creek
Sub-total
Golden Crown
Sub-total
PSPG Global Resource
Juruena Copper-Gold Porphyry Project, Brazil
Lower
Cut-off
(g/t)
0.8
0.8
0.8
0.8
Resource
Classification
Tonnes
(Mt)
Gold Grade
(g/t)
Contained
Gold (oz)
Indicated
Inferred
Inferred
1.9
3.3
5.2
0.4
0.4
5.6
2.2
1.7
1.9
3.1
3.1
2
139,000
180,000
319,000
38,000
38,000
357,000
Immediately prior to the start of the financial year, the Company provided an updated Mineral Resource Estimate for
the Juruena Project, comprising gold mineralisation from the adjacent Dona Maria, Querosene and Crentes deposits.
The updated Global Mineral Resource now stands at 1.9Mt @ 6.3g/t Au for 387,000 ounces of gold, an increase of 50%
over the previous resource. For full details of the MRE upgrade see the Company’s ASX Announcement of 15 June 2021.
The Juruena Resource comprises 3 separate but adjacent gold deposits:
-
High-Grade Epithermal Gold deposits at Dona Maria and Querosene:
-
-
Indicated 286,000t @ 17.0g/t Au for 156,000 ounces Au; and
Inferred 692,000t @ 7.6g/t Au for 170,000 ounces Au;
-
The Crentes Gold-Copper deposit hosted in the Juruena Fault:
-
Inferred 943,000t @ 2.0g/t Au for 60,900 ounces Au
The growth in the Juruena Resource has largely been underpinned by growth at the Dona Maria and Crentes deposits
with significant extensions at depth where both orebodies remain open. A similar approach is under planning for the
Querosene as the next major target.
The significant 2021 Mineral Resource Upgrade, which includes 40% of the gold endowment in the Indicated Category,
allows for the updating of the existing 2017 Scoping Study and preparation for application for a Mining Licence with
Brazilian mining authorities. In addition, the high-grade epithermal gold projects remain open at depth so there remains
considerable opportunity for further resource growth.
Table 4: Global Minerals Resources, note Figures may not add due to rounding.
Prospect & Depth
All < 100m
All > 100m
Indicated
All < 100m
All > 100m
Inferred
Global MRE
RESOURCE
CATEGORY
Indicated
Indicated
Sub Total
Inferred
Inferred
Sub Total
CUT OFF (g/t)
TONNES
GRADE (g/t) GOLD (oz)
0.8
2.5
0.8
0.8
2.5
2.5
150,000
136,300
286,300
1,211,000
423,000
1,634,000
1,920,500
13.7
20.6
17.0
3.5
7.0
4.4
6.3
66,300
90,500
156,800
134,700
95,800
230,500
387,200
METEORIC RESOURCES NL
- 8 -
DIRECTORS’ REPORT (continued)
Table 5: High-Grade Epithermal Deposits, note Figures may not add due to rounding.
Prospect & Depth
Dona Maria < 100m
Dona Maria > 100m
Sub-total
Dona Maria < 100m
Dona Maria > 100m
Sub-total
Dona Maria Total
Querosene < 100m
Querosene > 100m
Sub-total
Querosene < 100m
Querosene > 100m
Sub-total
Querosene Total
High Grade Indicated
High Grade Inferred
Other Projects
RESOURCE
CATEGORY
Indicated
Indicated
Indicated
Inferred
Inferred
Inferred
Indicated
Indicated
Indicated
Inferred
Inferred
Inferred
CUT OFF (g/t)
TONNES
GRADE (g/t) GOLD (oz)
0.8
2.5
0.8
0.8
2.5
2.5
0.8
2.5
0.8
0.8
2.5
2.5
125,000
130,000
255,000
164,000
274,000
438,000
693,000
25,000
6,000
31,000
151,000
103,000
254,000
285,000
286,000
692,000
978,000
11.0
16.2
15.6
2.8
6.4
5.1
9.0
27.4
32.2
28.1
13.5
13.6
12.0
13.9
17.0
7.6
10.4
44,000
84,000
128,000
15,000
57,000
72,000
200,000
22,000
6,000
28,000
65,000
33,000
98,000
127,000
156,000
170,000
326,000
HIGH GRADE TOTAL
Webb Diamond JV (Ownership 15% MEI / 85% Geocrystal Pty Ltd)
The Webb Diamond JV is focused on the evaluation of a large kimberlite field comprising 280 nulls-eye targets and covers
an area of 400km2. About 23% of the targets have been drill tested with 51 kimberlite bodies identified.
Warrego North IOCG Project (Ownership 49% MEI / 51% Chalice Gold Mines Limited)
Located in the Northern Territory, the Warrego North Project is approximately 20km northwest of the historical high-
grade Warrego Copper-Gold Mine, the largest deposit mined in the area producing 1.3 Moz Au and 90,000 tonnes of
copper. Chalice Gold Mines Limited (ASX:CHN) can earn up to 70% interest in the project by sole funding $800,000.
Canadian Projects
The Company’s Canadian cobalt projects (Mulligan, Mulligan East, Beauchamp, and Iron Mask) remain under review.
Corporate
On 3 June 2022 Meteoric entered into a legally binding Term Sheet (Agreement) for the sale of the Juruena Gold Project.
The Agreement was amended on 14 September 2022.
The purchaser of the Juruena Gold Project is Keystone Resources Ltd (Keystone). The obligations of Keystone are
guaranteed by Alchemist Investments Inc (Alchemist). Keystone is wholly owned by Alchemist and both are incorporated
in Seychelles. Alchemist is an investment holding company comprised of institutional investors and family offices with
stakeholders who have successfully led gold, iron ore, and manganese mining investments in Asia and in Brazil.
The material terms of the Agreement are as follows:
-
-
-
Keystone will acquire the Juruena Gold Project for consideration of cash of US$20 million payable in two tranches,
with US$2.5 million payable on settlement and US$17.5 million payable on 31 January 2023
Alchemist Investments Inc (Alchemist) has agreed to guarantee the performance of Keystone under the
Agreement;
The Agreement is subject to the following conditions:
-
the Company undertaking a re-organisation such that:
METEORIC RESOURCES NL
- 9 -
DIRECTORS’ REPORT (continued)
o
o
o
Keystone will acquire the Juruena Gold Project via the acquisition of Sunny Skies Pty Ltd (an existing
wholly owned subsidiary of the Company) (Sunny Skies) that will in turn hold the Brazilian entities that
own the Juruena Gold Project; and
neither Sunny Skies nor any other of the entities that sit between Sunny Skies and the Juruena Gold
Project have any indebtedness to the Company;
at the election of the Company, a formal guarantee agreement being entered into with Alchemist; and
-
The Agreement otherwise contains terms (including representations and warranties) usual for an agreement of
this nature including obligations on the Company to maintain the Juruena Gold Project in good standing pending
settlement.
Completion (and receipt of the initial US$2.5m) is anticipated to occur in late September 2022.
Capital Raising
In November 2021 the Company raised $1.7 million through the placement of 100 million new shares to sophisticated
and professional investors at $0.017 per share with a one-for-five attaching Option exercisable at $0.024 expiring 28 May
2023.
The Company also offered shareholders the right to participate in a fully underwritten share purchase plan (SPP) on the
same terms as above, to raise an additional $1.02 million. The SPP closed oversubscribed on 8 December 2021, with total
applications amounting to $1,088,100 received prior to the closure of the SPP.
Board Appointment
In July 2021, Meteoric appointed Dr Marcelo De Carvalho to its Board to oversee the Company’s Brazilian operations.
Dr Carvalho graduated from the State University of Sao Paulo in 1996 with a Bachelor of Geology and commenced his
exploration career in Brazil, working for Anglo Gold exploring for gold in the Amazon and subsequently with Vale,
exploring for base metals.
In 2004, Dr Carvalho moved to Perth (UWA) to complete a PhD in Metalogenesis. Returning to Brazil, he joined Yamana
Gold and rose to the role of Greenfields Exploration Manager before departing in 2012. During that time, he led an
experienced exploration team and was part of a several gold discoveries, taking projects from project generation through
to Mining Reserves and development. With the experience acquired over these years, Dr Carvalho cofounded his own
consultancy company, Target Latin America (TLA) and has consulted to explorers from across the globe, selecting and
managing exploration projects in the Americas over the past 10 years.
Competent Person Statement
The information in this announcement that relates to mineral resource estimates and exploration results is based on information
reviewed, collated and fairly represented by Mr Peter Sheehan who is a Member of the Australasian Institute of Mining and Metallurgy
and a consultant to Meteoric Resources NL. Mr Sheehan has sufficient experience relevant to the style of mineralisation and type of
deposit under consideration, and to the activity which has been undertaken, to qualify as a Competent Person as defined in the 2012
Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves. Mr Sheehan consents to the inclusion in this report of the matters based on this information in the form and context in
which it appear. Additionally, Mr Sheehan confirms that the entity is not aware of any new information or data that materially affects
the information contained in the ASX releases referred to in this report.
METEORIC RESOURCES NL
- 10 -
DIRECTORS’ REPORT (continued)
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
No material matters have occurred subsequent to the end of the financial year which requires reporting on other than
those which have been noted above or reported to ASX.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
In general terms the review of operations of the Group gives an indication of likely developments and the expected
results of the operations. In the opinion of the Directors, disclosure of any further information would be likely to result
in unreasonable prejudice to the Group.
DIRECTORS
The following persons were Directors who held office during the year and up to the date of signing this report, unless
otherwise stated are:
Mr Patrick Burke
Non-Executive Chairman
Transitioned from Executive Director to Non- Executive Director on 22 September 2021
Dr Paul Kitto
Non-Executive Director
Ms Shastri Ramnath
Non-Executive Director
Dr Andrew Tunks
Non-Executive Director
Transitioned from Managing Director to Non-Executive Director on 1 June 2022
Dr Marcelo De Carvalho Non-Executive Director
Appointed 20 July 2021
PRINCIPAL ACTIVITIES
The principal activities of the Group during the year were to explore mineral tenements in Brazil, Canada, Western
Australia, and Northern Territory.
DIVIDENDS
No amounts have been paid or declared by way of dividend by the Company since the end of the previous financial year
and the Directors do not recommend the payment of any dividend.
FINANCIAL POSITION
The Group made a loss from continuing operations of $5,555,353 for the year (30 June 2021: $9,043,665).
At 30 June 2022, the Group had net assets of $1,695,282 (30 June 2021: $4,656,429) and cash assets of $1,554,940
(30 June 2021: $3,967,738).
METEORIC RESOURCES NL
- 11 -
DIRECTORS’ REPORT (continued)
INFORMATION ON DIRECTORS
The following information is current as at the date of this report.
Mr Patrick Burke
Non-Executive Chairman (appointed 4 December 2017)
Qualifications
Experience
LLB
Mr Burke holds a Bachelor of Law from the University of Western Australia. He has
extensive legal and corporate advisory experience and over the last 15 years has acted
as a Director for a large number of ASX listed companies, as well as NASDAQ and AIM
listed companies. His legal expertise is in corporate, commercial and securities law in
particular capital raisings and mergers and acquisitions. His corporate advisory
experience includes identification and assessment of acquisition targets, strategic
advice, deal structuring and pricing, funding, due diligence, and execution. He is
currently Non-Executive Chairman of ASX listed Province Resources Limited and
Mandrake Resources Limited and a Non-Executive Director of Western Gold Limited,
Torque Metals Limited, and Triton Minerals Limited.
Equity Interests
7,500,000 ordinary fully paid shares.
Directorships held in other
ASX listed entities
13,000,000 options exercisable at $0.024 on or before 28 May 2023.
Current directorships:
- Non-Executive Director - Western Gold Limited from March 2021
- Non-Executive Director – Lycaon Resources Limited from February 2021
- Non-Executive Director - Torque Metals Limited from February 2021
- Non-Executive Chairman - Province Resources Limited from November 2020
- Non-Executive Director - Triton Minerals Limited from July 2016
Former directorships:
- Mandrake Resources Limited from August 2019 to March 2022
-
-
-
Koppar Resources Limited – from February 2018 to December 2019
Transcendence Technologies Limited - from September 2018 to November
2019
Vanadium Resources Limited - from July 2017 to November 2019
No other listed directorships have been held by Mr Burke in the previous three years.
Dr Andrew Tunks
Non-Executive Director (appointed 10 January 2018)
Qualifications
Experience
B.Sc. (Hons.), Ph.D
Dr Tunks is a member of the Australian Institute of Geoscientist holding a B.Sc. (Hons.)
from Monash and a Ph.D from the University of Tasmania. Dr Tunks has held numerous
senior executive positions in a range of small to large resource companies including
Auroch Minerals, A-Cap Resources, IMAGOLD Corporation and Abosso Goldfields.
In his role as CEO and director of A-Cap Resources Dr. Tunks led the discovery of the
10th largest uranium resource in the world and managed four separate capital raisings
totalling AUD$45 million. Through his 30-year career within the resource and academic
sectors Dr. Tunks has developed a unique skill set including technical, promotional, and
corporate.
Equity Interests
10,979,470 ordinary fully paid shares.
Directorships held in other
ASX listed entities
15,235,294 options exercisable at $0.024 on or before 28 May 2023.
Current directorship:
- Non-Executive Director - West Wits Mining Ltd from April 2019
- Chief Executive Officer – A-cap Energy Limited from June 2022
No other listed directorships have been held by Dr Tunks in the previous three years.
METEORIC RESOURCES NL
- 12 -
DIRECTORS’ REPORT (continued)
Dr Paul Kitto
Qualifications
Experience
Non-Executive Technical Director (appointed 16 October 2019)
B.Sc. (Hons), Ph.D, Dip Ed
Dr Kitto has over thirty years’ experience working within the mining industry having
served on a number of ASX Boards and holding senior level management positions
around the world. Dr Kitto is currently Technical Director for Tietto Minerals (ASX:TIE),
Peako Limited (ASX:PKO) and Resolution Minerals (ASX:RML).
Most recently Dr Kitto was Exploration Manager, Africa for Newcrest Mining Ltd and
prior to that, was Chief Executive Officer and Managing Director of ASX listed Ampella
Mining Ltd from 2008 until 2014, when Ampella was acquired by LSE/TSX listed
Centamin PLC.
Throughout his career, Dr Kitto has led or been part of exploration teams that have
discovered numerous multi-million ounce gold deposits in Africa, Australia and Papua
New Guinea. Dr Kitto has extensive experience associated with a wide range of deposit
types, predominantly associated with gold and base metal deposits
Equity Interests
4,000,000 ordinary fully paid shares.
Directorships held in other
ASX listed entities
Current directorship:
- Non-Executive Director - Tietto Minerals from January 2019
- Non-Executive Director - Peako Limited from October 2021
- Non-Executive Director - Resolution Minerals from March 2022
Ms Shastri Ramnath
Non-Executive Director (appointed 1 October 2017)
No other listed directorships have been held by Dr Kitto in the previous three years.
Qualifications
Experience
M.Sc., MBA, P.Geo., ICD.D
Ms. Shastri Ramnath was appointed as a director of the Corporation in October 2017.
Ms. Ramnath is the President and CEO of Exiro Minerals Corp., a private mineral
exploration company and the Non-Executive Chair of Orix Geoscience Corp., a
geological consulting firm that she co-founded and co-owns. Ms. Ramnath is a
professional geoscientist and entrepreneur with over 20 years of global experience and
has worked in various technical and leadership roles, including FNX Mining, where she
was a key member of the exploration and resource team, and subsequently with
Bridgeport Ventures, a publicly listed company, where she was the President and CEO.
Ms. Ramnath has also raised approximately $25 million in the capital markets for
exploration and is currently a director at Jaguar Mining (TSX:JAG) and 1911 Gold Inc
(TSX-V: AUMB). Ms. Ramnath received a Bachelor of Science degree in geology from
the University of Manitoba, a Master of Science in exploration geology from Rhodes
University (South Africa), and an Executive MBA from Athabasca University.
Equity Interests
1,300,000 ordinary fully paid shares.
1,500,000 options exercisable at $0.024 on or before 28 May 2023.
Directorships held in other
ASX listed entities
No other listed directorships have been held by Ms Ramnath in the previous three
years.
Dr Marcelo De Carvalho
Non-Executive Director (appointed 20 July 2021)
Qualifications
Experience
Ph.D
Dr Carvalho graduated from the State University of Sao Paulo in 1996 with a Bachelor
of Geology and commenced his exploration career in Brazil, working for Anglo Gold
exploring for gold in the Amazon and subsequently with Vale, exploring for base metals.
In 2004, Dr Carvalho moved to Perth (UWA) to complete a PhD in Metalogenesis.
Returning to Brazil he joined Yamana Gold and rose to the role of Greenfields
Exploration Manager before departing in 2012.
METEORIC RESOURCES NL
- 13 -
DIRECTORS’ REPORT (continued)
During that time, Marcelo led an experienced Exploration Team and was part of a
several gold discoveries, taking projects from Project Generation all the way through to
Mining Reserves and Development. With the experience acquired over these years,
Marcelo co- founded his own consultancy company, Target Latin America (TLA) and has
over the past 10 years consulted to explorers from across the globe, selecting and
managing exploration projects in the Americas.
Equity Interests
None
Directorships held in other
ASX listed entities
Company Secretary
No other listed directorships have been held by Dr Carvalho in the previous three years.
Mr Matthew Foy (appointed 17 January 2018)
BCom, GradDipAppFin, GradDipACG, SAFin, AGIA, ACIS
Mr Foy is a contract Company Secretary and active member of the WA State Governance Council of the Governance
Institute Australia (GIA). He spent four years at the ASX facilitating the listing and compliance of companies and
possesses core competencies in publicly listed company secretarial, operational and governance disciplines.
MEETINGS OF DIRECTORS
During the financial year ended 30 June 2022, the
following director meetings were held:
Eligible to
Attend
Attended
P. Burke
P. Kitto
S. Ramnath
M De Carvalho
A. Tunks
4
4
4
3
4
4
4
4
3
4
Audit Committee
At the date of this report the Company does not have a
separately constituted Audit Committee as all matters
normally considered by an audit committee are dealt with
by the full Board.
Remuneration Committee
At the date of this report, the Company does not have a
separately constituted Remuneration Committee and as
such, no separate committee meetings were held during
the year. All resolutions made in respect of remuneration
matters were dealt with by the full Board.
REMUNERATION REPORT (Audited)
The remuneration report is set out under the following main headings:
A.
B.
C.
D.
E.
F.
G.
H.
I.
Introduction
Remuneration governance
Key management personnel
Remuneration and performance
Remuneration structure
•
•
Executive Directors
Non-Executive Directors
Executive service agreements
Details of remuneration
Share-based compensation
Other information
METEORIC RESOURCES NL
- 14 -
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (Audited) (continued)
This report details the nature and amount of remuneration for each Director of Meteoric Resources NL (Company) and
key management personnel.
A.
Introduction
The remuneration policy of the Company has been designed to align director and management objectives with
shareholder and business objectives by providing a fixed remuneration component, and offering specific long-term
incentives, based on key performance areas affecting the Group’s financial results. Key performance areas include cash
flow management, growth in share price, successful exploration, and subsequent exploitation of the Group’s tenements.
The Company believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best
management and directors to run and manage the Group, as well as create goal congruence between Directors,
Executives and Shareholders.
During the period the Company did not engage remuneration consultants.
B. Remuneration governance
The Board retains overall responsibility for remuneration policies and practices of the Company. Due to the Company's
size and current stage of development, the Board has not established a separate nomination and remuneration
committee. This function is performed by the Board.
The Board aims to ensure that the remuneration practices are:
-
-
-
-
competitive and reasonable, enabling the Company to attract and retain key talent;
aligned to the Company’s strategic and business objectives and the creation of shareholder value;
transparent and easily understood, and
acceptable to Shareholders.
At the 2021 annual general meeting, the Company’s remuneration report was passed by the requisite majority of
shareholders (99.2% by poll).
C. Key management personnel
The key management personnel in this report are as follows:
Non-Executive Directors
-
-
-
-
P Burke (Non-Executive Chairman) – appointed Non-Executive Chairman 4 December 2017, transitioned to
Executive Director from 1 July 2020, subsequently on 22 September 2021, Mr Burke transitioned to the role of
Non- Executive Chairman
A Tunks (Managing Director) – appointed 10 January 2018, transitioned from Managing Director to Non-
Executive Director on 1 June 2022
P Kitto (Non-Executive Director) – appointed 16 October 2019
S Ramnath (Non-Executive Director) – appointed 1 October 2017
- M De Carvalho (Non-Executive Director) – appointed 20 July 2021
METEORIC RESOURCES NL
- 15 -
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (Audited) (continued)
D. Remuneration and performance
The following table shows the gross revenue, net losses attributable to members of the Company and share price of the
Company at the end of the current and previous four financial years.
30 June 2022
$
30 June 2021
$
30 June 2020
$
30 June 2019
$
30 June 2018
$
Other income
250
1,313,876
55,543
92,126
43,665
Net loss attributable to members
of the Company
(5,555,353)
(9,043,665)
(7,145,567)
(4,450,617)
(6,731,507)
Share price
0.011
0.051
0.035
0.025
0.027
There is no relationship between the financial performance of the Company for the current or previous financial year
and the remuneration of the key management personnel. Remuneration is set having regard to market conditions and
encourage the continued services of key management personnel.
E. Remuneration structure
Executive Director remuneration structure
The Board’s policy for determining the nature and amount of remuneration for Senior Executives of the Group is as
follows.
The remuneration policy, setting the terms and conditions for Executive Directors and other Senior Executives, was
developed, and approved by the Board. All Executives receive a base salary (which is based on factors such as length of
service and experience), superannuation, fringe benefits, options, and performance incentives. The Board reviews
Executive packages annually by reference to the Group’s performance, executive performance, and comparable
information from industry sectors and other listed companies in similar industries.
Executives are also entitled to participate in the employee share option and performance rights plans. If an Executive is
invited to participate in an employee share option or performance rights plan arrangement, the issue and vesting of any
equity securities will be dependent on performance conditions relating to the Executive’s role in the Group and/or a
tenure-based milestone.
The employees of the Group receive a superannuation guarantee contribution required by the Government, which for
the year ended 30 June 2022 is 10%, from 1 July 2022 the rate increased to 10.5%, and do not receive any other
retirement benefits.
Non-Executive Director remuneration structure
In line with corporate governance principles, Non-Executive Directors of the Company are remunerated solely by way of
fees and statutory superannuation. Non-Executive Directors fees are set at the lower end of market rates for comparable
companies for time, responsibilities and commitments associated with the proper discharge of their duties as members
of the Board.
Non-Executive Directors' fees and payments are reviewed annually by the Board. For the year ended 30 June 2022,
remuneration for a Non-Executive Director was between $40,000 and $80,000 per annum inclusive of superannuation.
There are no termination or retirement benefits paid to Non-Executive Directors (other than statutory superannuation).
Non-Executive Directors of the Company may also be paid a variable consulting fee for additional services provided to
the Company between $1,000 - $1,200 per day inclusive of superannuation.
The maximum aggregate amount of fees that can be paid to Non-Executive Directors, as part of the constitution, is
$250,000 per annum.
METEORIC RESOURCES NL
- 16 -
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (Audited) (continued)
Fees for Non-Executive Directors are not linked to the performance of the Group. Non-Executive Directors are able to
participate in the employee share option or performance rights plans.
On 3 September 2020, shareholder approval was sought and obtained to issue 3,000,000 performance rights to Mr Kitto,
1,000,000 performance rights to Ms Ramnath, the rights were converted to ordinary fully paid shares on 9 November
2021.
F. Executive service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements.
The service agreements specify the components of remuneration, benefits, and notice periods. Participation in the share
and performance rights plans are subject to the Board's discretion. Other major provisions of the agreements relating
to remuneration are set out below. Termination benefits are within the limits set by the Corporations Act 2001 such
that they do not require shareholder approval.
On 3 September 2020, shareholder approval was sought and obtained to issue 7,500,000 performance rights to Dr Tunks,
7,500,000 performance rights to Mr Burke, the rights were converted to ordinary fully paid shares on 9 November 2021
Contractual arrangement with key management personnel
Executives
Name
A Tunks (2), Executive Director
Effective date
Term of
agreement
Notice
period
Base
per annum (1)
$
Termination
payments
1-Nov-19
No fixed term
3 months
331,644
3 months
1-Oct-21
No fixed term
3 months
254,091
3 months
1-Jan-21
No fixed term
3 months
250,000
3 months
P Burke (3), Executive Director
1-Aug-21
No fixed term
3 months
127,273
3 months
1-Sep-21
No fixed term
3 months
72,727
3 months
1 Base salary per annum is excluding superannuation
2 On 1 June 2022, Dr Tunks transition to the role of Non-Executive Director. Once in the role of Non-Executive Director, remuneration was in
line with the Non-Executive remuneration structure.
3 On 22 September 2021, Mr Burke transitioned to the role of Non-Executive Director. Once in the role of Non-Executive Director,
remuneration was in line with the Non-Executive remuneration structure.
METEORIC RESOURCES NL
- 17 -
DIRECTORS’ REPORT (continued)
G. Details of remuneration
Remuneration of KMP for the 2022 financial year is set out below:
Short-term benefits
Post-employment
benefits
Share-based
payments (1)
Total
Salary
Consulting
fees
Other
benefits (2)
Super-
annuation
Termi-
nation (3)
Performance
rights
Options
$
$
$
$
$
$
$
$
Non-Executive Directors
P Burke (4)
P Kitto
101,250
40,000
60,000
51,562
S Ramnath (5)
40,000
M De Carvalho (6)
39,996
-
-
-
-
-
-
-
-
-
-
-
-
-
-
69,535
37,085
9,271
-
A Tunks (7)
216,055
21,000
41,250
21,105
20,328
69,534
Total
457,301
112,562
41,250
21,105
20,328
185,425
-
-
-
-
-
-
210,785
148,647
49,271
39,996
389,272
837,971
1 Performance rights and options granted as part of remuneration package, AASB 2 – Share Based Payments requires the fair value at grant
date of the performance rights granted to be expensed over the vesting period.
2 Other benefits include the provision of an office, travel and car allowance.
3 On resignation as Managing Director, Dr Tunks was paid any unused leave.
4 On 22 September 2021, Mr Burke transitioned to the role of Non-Executive Director. In the above table $39,129 of salary and $40,562 of
share based payments were earning in relation to the role of Executive Director, with the remining fees associated with Non-Executive
Director services.
5 Ms Ramnath, Non-Executive Director, is a Director of Ram Jam Holdings Inc, which received Ms Ramnath’s Director fees during the period.
6 Mr De Carvalho was appointed Non-Executive Director on 20 July 2021.
7 Dr Tunks transitioned from Managing Director to Non-Executive Director on 1 June 2022. In the above table $5,000 of salary and $21,000
of consulting fees were earning in relation to the role of Non-Executive Director, with the remining fees associated with Executive Director
services.
8 Dr Tunks, Non-Executive Director, is a Director of Tunks Geo Consulting Pty Ltd. which received Dr Tunks Non-Executive Director fees during
the period.
The following table sets out each KMP’s relevant interest in fully paid ordinary shares, options and performance rights
to acquire shares in the Company, as at 30 June 2022:
Name
P Burke
P Kitto
S Ramnath
M De Carvalho
A Tunks
Fully paid ordinary shares
7,500,000
4,000,000
1,300,000
-
10,979,470
Options
13,000,000
-
1,500,000
-
15,235,394
Performance rights
-
-
-
-
-
METEORIC RESOURCES NL
- 18 -
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (Audited) (continued)
Remuneration of KMP for the 2021 financial year is set out below:
Short-term benefits
Post-employment
benefits
Share-based
payments (1)
Total
Salary
Consulting
fees
Other
benefits (2)
Super-
annuation
Termi-
nation
Performance
rights
Options
$
$
$
$
$
$
$
$
Non-Executive Directors
P Kitto
105,000
15,000
S Ramnath (3)
40,000
Executives
P Burke (4)
A Tunks
Total
247,500
286,644
-
-
-
-
-
-
-
-
45,000
27,231
679,144
15,000
45,000
27,231
-
-
-
-
-
211,000
62,500
468,750
468,750
1,211,000
-
-
-
-
-
331,000
102,500
716,250
827,625
1,977,375
1 Performance rights and options granted as part of remuneration package, AASB 2 – Share Based Payments requires the fair value at grant
date of the performance rights granted to be expensed over the vesting period.
2 Other benefits include the provision of an office, travel and car allowance.
3 Ms Ramnath, Non-Executive Director, is a Director of Ram Jam Holdings Inc, which received Ms Ramnath’s Director fees during the period.
4
Subsequent to year end, on 22 September 2021, Mr Burke transitioned to the role of Non-Executive Director.
H. Share-based compensation
Performance rights
For the year ended 30 June 2022, the following performance rights were granted, on issue, vested and/or lapsed to KMP:
Grant
date
Grant
value (1)
$
Number
granted
Number
exercised
during the year
Number
expired during
the year
Expense recognised
during the year
$
Maximum value
yet to expense
$
P Burke - Non-Executive Chairman (2)
22-Nov-19
325,500
7,500,000
-
7,500,000
03-Sep-20
292,500
7,500,000
7,500,000
-
P Kitto - Non-Executive Director
22-Nov-19
188,000
4,000,000
-
4,000,000
03-Sep-20
117,000
3,000,000
3,000,000
-
S Ramnath - Non-Executive Director
22-Nov-19
03-Sep-20
47,000
39,000
1,000,000
-
1,000,000
1,000,000
1,000,000
A Tunks – Non-Executive Director (3)
22-Nov-19
325,500
7,500,000
-
7,500,000
03-Sep-20
292,500
7,500,000
7,500,000
-
69,534
-
37,085
-
9,271
-
69,534
-
-
-
-
-
-
-
-
-
1 The value of performance rights is calculated as the fair value of the rights at grant date and allocated to remuneration equally over the
period from grant date to expected vesting date.
2 On 22 September 2021, Mr Burke transitioned to the role of Non-Executive Director.
3 Dr Tunks transitioned from Managing Director to Non-Executive Director on 1 June 2022.
Performance rights granted on 22 November 2019 vest on the date on which the volume weighted average price of the
Company's shares trading on the ASX over 20 consecutive trading days is at least $0.078. On 21 November 2021, the
Performance rights lapsed as the volume weighted average price was not achieved during the vesting period.
METEORIC RESOURCES NL
- 19 -
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (Audited) (continued)
Relative proportions of fixed vs variable remuneration expense
The following table shows the relative proportions of remuneration that are linked to performance and those that are
fixed, based on the amounts disclosed as statutory remuneration expense for the 2022 and 2021 financial years:
Fixed
remuneration
Variable remuneration
STIP
Options
Performance
rights
Fixed
remuneration
Variable remuneration
STIP
Options
Performance
rights
2022
2021
Non-Executive Directors
P Burke (1)
P Kitto
M Carvalho (2)
S Ramnath
A Tunks (3)
Executives
P Burke (1)
A Tunks (3)
78%
75%
100%
81%
100%
49%
75%
-
-
-
-
-
-
-
-
-
-
-
-
22%
25%
-
19%
-
51%
25%
-
36%
-
39%
-
35%
43%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
64%
-
61%
-
65%
57%
1 On 22 September 2021, Mr Burke transitioned to the role of Non-Executive Director.
2 Mr De Carvalho was appointed Non-Executive Director on 20 July 2021.
3 Dr Tunks transitioned from Managing Director to Non-Executive Director on 1 June 2022.
The variable remuneration is based on remuneration committee discretion.
Reconciliation of equity instruments held by KMP
The following table sets out a reconciliation of each KMP’s relevant interest in ordinary shares and options and
performance rights to acquire shares in the Company:
Balance at the start
of the year/period
Granted/
Acquired (1)
Exercised
Lapsed
Other
changes
Balance at
year end
Non-Executive Directors
P Burke (2)
Fully paid ordinary shares
-
Options
Performance rights
A Tunks (3)
13,000,000
15,000,000
-
-
-
7,500,000
-
-
(7,500,000)
(7,500,000)
Fully paid ordinary shares
2,303,000
1,176,470
7,500,000
235,294
-
-
-
Options
Performance rights
15,000,000
15,000,000
P Kitto
Fully paid ordinary shares
1,000,000
Options
-
Performance rights
7,000,000
-
(7,500,000)
(7,500,000)
3,000,000
-
-
-
(3,000,000)
(4,000,000)
-
-
-
-
-
-
-
-
-
-
-
7,500,000
13,000,000
-
10,979,470
15,235,294
-
4,000,000
-
-
1 Dr Tunks participated in the placement completed on 15 December 2021, options granted as free attaching options with placement, no
value has been assigned to the options.
2 On 22 September 2021, Mr Burke transitioned to the role of Non-Executive Director
3 Dr Tunks transitioned from Managing Director to Non-Executive Director on 1 June 2022.
METEORIC RESOURCES NL
- 20 -
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (Audited) (continued)
Balance at the start
of the year/period
Granted/
Acquired
Exercised
Lapsed
Other
changes
Balance at
year end
S Ramnath
Fully paid ordinary shares
Options
Performance rights
M De Carvalho (4)
300,000
1,500,000
2,000,000
Fully paid ordinary shares
Options
-
-
Performance rights
4,000,000
-
-
-
-
-
-
1,000,000
-
-
-
(1,000,000)
(1,000,000)
-
-
-
-
-
(4,000,000)
-
-
-
-
-
-
1,300,000
1,500,000
-
-
-
-
4 Mr De Carvalho was appointed Non-Executive Director on 20 July 2021.
I. Other information
Payment of fees
- Ms Shastri Ramnath, Non-Executive Director, is a Director of Ram Jam Holding Inc. which received Ms Ramnath’s
Director fees during the period. At year end the Company had an outstanding payable balance of $6,667
(30 June 2021: $3,348).
- Dr Andrew Tunks, Non-Executive Director, is a Director of Tunks Geo Consulting Pty Ltd. which received Dr Tunks
Non-Executive Director fees during the period. At year end the Company had an outstanding payable balance
of $26,000 (ex GST) (30 June 2021: $0).
Purchases of services
The Group acquired the following services from entities in which the group’s key management personnel have an
interest:
-
Administrative services
A Director, Dr Tunks, is a Director of Tunks Geo Consulting Pty Ltd. Tunks Geo Consulting have been a partner to Meteoric
in providing geological services and support. All services provided have been on normal commercial terms and
conditions. The amount recognised as an expense during the year was $45,837 (ex GST) (during the prior year: $50,004
(ex GST)). No amount was outstanding at the end of the year (30 June 2021: nil).
This concludes the Remuneration Report which has been audited.
UNISSUED ORDINARY SHARES
Unissued ordinary shares under option/right at the date of this report are 157,288,845 and broken-down as follows:
Options
-
-
Issued to Directors
Issued to Other parties
29,735,294
127,553,551
Options over ordinary shares can be exercised between $0.024 to $0.100.
ENVIRONMENTAL ISSUES
The Company’s policy is to comply with, or exceed, its environmental obligations in each jurisdiction in which it operates.
No known environmental breaches have occurred.
METEORIC RESOURCES NL
- 21 -
DIRECTORS’ REPORT (continued)
ACCESS TO INDEPENDENT ADVICE
Each Director has the right, so long as he is acting reasonably in the interests of the Company and in the discharge
of his duties as a Director, to seek independent professional advice and recover the reasonable costs thereof from
the Company.
The advice shall only be sought after consultation about the matter with the Chairman (where it is reasonable that
the Chairman be consulted) or, if it is the Chairman that wishes to seek the advice or it is unreasonable that he be
consulted, another Director (if that be reasonable).
The advice is to be made immediately available to all Board members other than to a Director against whom
privilege is claimed.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has entered into agreements indemnifying, to the extent permitted by law, all the Directors and Officers
of the Company against all losses or liabilities incurred by each Director and Officer in their capacity as Directors and
Officers of the Company. Disclosure of the nature of the liability covered by and the amount of the premium payable for
such insurance is subject to a confidentiality clause under the contract of insurance. The Company has not provided any
insurance for the external auditor of the Company or a body corporate related to the external auditor.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking
responsibility on behalf of the Company for all or part of those proceedings.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out
in this annual report.
NON-AUDIT SERVICES
From time to time the Consolidated Entity may decide to employ an external auditor on assignments additional to their
statutory audit duties where the auditor's expertise and experience with the Consolidated Entity are important.
The Board is satisfied that the provision of non-audit services during the period is compatible with the general standard
of independence for auditors imposed by the Corporations Act 2001.
During the year ended 30 June 2022, the following amounts were paid or payable for non-audit services provided to the
Group by the auditor:
BDO Australia
Taxation services
Tax compliance services
Taxation advice
Total remuneration for non-audit services
2022
$
2021
$
11,570
47,485
59,055
8,276
7,071
15,347
METEORIC RESOURCES NL
- 22 -
DIRECTORS’ REPORT (continued)
Signed in accordance with a resolution of the Directors made pursuant to section 295(5) of the Corporations Act 2001.
On behalf of the Directors.
Signed in accordance with a resolution of the Directors
Patrick Burke
Non-Executive Chairman
Perth
21 September 2022
METEORIC RESOURCES NL
- 23 -
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY JARRAD PRUE TO THE DIRECTORS OF METEORIC RESOURCES NL
As lead auditor of Meteoric Resources NL for the year ended 30 June 2022, I declare that, to the best
of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Meteoric Resources NL and the entities it controlled during the period.
Jarrad Prue
Director
BDO Audit (WA) Pty Ltd
Perth
21 September 2022
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia
Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO
International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability
limited by a scheme approved under Professional Standards Legislation
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2022
Other income
Interest income
Other income
Expenses:
Exploration and tenement expenses
Depreciation expense
Share based payments expense
Administrative expenses
Foreign exchange loss
Notes
2022
$
2021
$
-
250
6
1,313,870
(3,901,096)
(6,275,982)
(21,836)
(8,344)
(431,531)
(2,920,975)
(1,196,587)
(1,152,158)
(4,553)
(82)
1
2
14
2
2
Loss before income tax expense
(5,555,353)
(9,043,665)
Income tax expense
4
-
-
Loss attributable to the owners of the Company
(5,555,353)
(9,043,665)
Other comprehensive income/(loss):
Items that may be reclassified to profit or loss
Exchange difference on translation of foreign operations
53,340
(37,327)
Items that will not be reclassified to profit or loss
Changes in the fair value of financial assets at fair value
through other comprehensive income (FVOCI)
(505,577)
39,335
Other comprehensive income/(loss) for the year, net of tax
(452,237)
2,008
Total comprehensive loss for year attributable to owners of
Meteoric Resources NL
(6,007,590)
(9,041,657)
Basic and diluted loss per share (cents per share)
18
(0.38)
(0.71)
The accompanying notes form part of these consolidated financial statements.
METEORIC RESOURCES NL
- 25 -
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2022
Notes
2022
$
2021
$
Current Assets
Cash and cash equivalents
Other receivables
Total Current Assets
Non-Current Assets
Other financial assets
Plant and equipment
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Provisions
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Reserves
Accumulated losses
5
6
8
9
10
1,554,940
130,473
1,685,413
3,967,738
247,893
4,215,631
349,445
86,087
435,532
855,022
113,507
968,529
2,120,945
5,184,160
421,355
4,308
425,663
509,598
18,133
527,731
425,663
527,731
1,695,282
4,656,429
12(a)
12(c)
12(b)
41,309,785
38,738,571
6,148,953
6,125,961
(45,763,456)
(40,208,103)
Total Equity
1,695,282
4,656,429
The accompanying notes form part of these consolidated financial statements.
METEORIC RESOURCES NL
- 26 -
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2022
Issued
Capital
$
Reserves
$
Accumulated
Losses
$
Total
$
Balance at 1 July 2020
35,196,221
2,504,470
(31,164,438)
6,536,253
Loss for the year
Other comprehensive income for the year
Total comprehensive income/(loss) for the year
-
-
-
-
(9,043,665)
(9,043,665)
2,008
-
2,008
2,008
(9,043,665)
(9,041,657)
Transactions with owners in their capacity as owners
Contributed equity
Share issue costs
Performance rights/options expense recognised
during the year
4,380,858
-
(838,508)
698,508
-
2,920,975
-
-
-
4,380,858
(140,000)
2,920,975
Balance at 30 June 2021
38,738,571
6,125,961
(40,208,103)
4,656,429
Loss for the year
Other comprehensive loss for the year
Total comprehensive loss for the year
-
-
-
-
(5,555,353)
(5,555,353)
(452,237)
-
(452,237)
(452,237)
(5,555,353)
(6,007,590)
Transactions with owners in their capacity as owners
Contributed equity
Share issue costs
Performance rights expense recognised during the
year
2,789,380
-
(218,166)
43,698
-
431,531
-
-
-
2,789,380
(174,468)
431,531
Balance at 30 June 2022
41,309,785
6,148,953
(45,763,456)
1,695,282
The accompanying notes form part of these consolidated financial statements.
METEORIC RESOURCES NL
- 27 -
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2022
Cash flows from operating activities
Cash receipts from customers
Payments for exploration and evaluation expenditure
Payments to suppliers, consultants, and employees
Interest received
Cash flow boost incentive
Net cash used in operating activities
Cash flows from investing activities
Payments for property, plant, and equipment
Proceeds from disposal of investments
Net cash (used in)/provided by investing activities
Cash flows from financing activities
Proceeds from new issues of shares
Proceeds from issue of options
Proceeds from exercise of options
Share issue costs
Net cash provided by financing activities
Notes
2022
$
2021
$
1
250
-
(4,063,855)
(6,172,568)
(956,583)
(1,092,521)
-
-
6
49,961
(5,020,188)
(7,215,122)
1
21
(7,585)
-
(7,585)
(84,463)
527,869
443,406
2,788,100
4,032,000
1,280
-
(174,469)
458
194,400
-
2,614,911
4,226,858
Net decrease in cash held
(2,412,862)
(2,544,858)
Cash and cash equivalents at the beginning of the financial year
3,967,738
6,512,581
Effect of exchange rates on cash holdings in foreign currencies
64
15
Cash and cash equivalents at the end of the financial year
5
1,554,940
3,967,738
The accompanying notes form part of these consolidated financial statements.
METEORIC RESOURCES NL
- 28 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
1
OTHER INCOME
Other Income
Interest income
Other income
Sale of tenement (1)
Cash flow boost incentive payments (2)
Total other income
2022
$
2021
$
-
250
-
-
6
-
1,263,909
49,961
250
1,313,876
Income earned from the sale the Group’s Canadian projects, Midrim and La Force.
1
2 Cash flow boosts payments are delivered as credits in the activity statements and equivalent to the amount withheld from wages
paid to employees from March to September 2021.
2
EXPENDITURE
Exploration and tenement expenses
Australian tenements
Canadian tenements
Brazil tenements
Other projects
Total exploration and tenement expenses
Administrative expense
Advertising and marketing costs
Advisory costs
Compliance costs
Consultants
Travel costs
Employee benefits expense (1)
Director benefits expense (1)
Other administrative expenses
Notes
2022
$
2021
$
1,499,227
3,202,860
248
45,995
2,380,229
3,027,127
21,392
-
3,901,096
6,275,982
84,420
157,986
209,591
129,364
76,249
49,308
382,733
106,936
137,693
170,317
171,405
131,716
49,810
80,161
337,535
73,521
Total administrative expense
1,196,587
1,152,158
Share-based payments expense
Performance rights
Total share-based payments expense
14
431,531
431,531
2,920,975
2,920,975
1 A portion of the personnel costs have been included within Exploration and tenement expenditure.
METEORIC RESOURCES NL
- 29 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
2
EXPENDITURE (continued)
Foreign exchange loss (2)
4,553
82
2 Foreign exchange loss was recognised upon cash held and payments of Canadian and United States dollar denominated balances.
Notes
2022
$
2021
$
3
OPERATING SEGMENTS
Management has determined that the Group has three reportable segments, being exploration activities in Brazil,
exploration activities in Canada and exploration activities in Australia. This determination is based on the internal reports
that are reviewed and used by the Board (chief operating decision maker) in assessing performance and determining the
allocation of resources. As the Group is focused on exploration, the Board monitors the Group based on actual versus
budgeted exploration expenditure incurred by area of interest. This internal reporting framework is the most relevant to
assist the Board with making decisions regarding the Group and its ongoing exploration activities, while also taking into
consideration the results of exploration work that has been performed to date.
Brazil
$
Canada
$
Australia
$
Other
$
Total
$
For the year ended 30 June 2022
Other income
-
-
-
250
250
Reportable segment loss
(2,380,229)
(248)
(1,499,227)
(1,675,649)
(5,555,353)
Reportable segment assets (1)
Reportable segment liabilities
54,258
(98,363)
-
-
2,768
2,063,919
2,120,945
(54,716)
(272,584)
(425,663)
For the year ended 30 June 2021
Other income
-
1,263,909
-
49,967
1,313,876
Reportable segment loss
(3,027,128)
(45,995)
(3,127,711)
(2,842,831)
(9,043,665)
Reportable segment assets (2)
Reportable segment liabilities
163,172
(97,073)
-
-
2,768
5,018,220
5,184,160
(1,491)
(429,167)
(527,731)
1 Other corporate activities includes cash held of $1,852,804.
2 Other corporate activities includes cash held of $3,889,411.
4
INCOME TAX EXPENSE
The components of tax expense comprise:
Current tax
Deferred tax asset/(liability)
METEORIC RESOURCES NL
2022
$
2021
$
-
-
-
-
-
-
- 30 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
4
INCOME TAX EXPENSE (continued)
Reconciliation of income tax to prima facie tax payable
Loss before income tax
Income tax benefit at 30% (2021: 30%)
Tax effect of amounts which are not deductible (taxable) in calculating
taxable income:
Share based payments
Other
Foreign tax rate differential
Net capital gain from disposal of Juruena Project
2022
$
2021
$
(5,555,353)
(9,043,665)
(1,666,606)
(2,713,100)
129,459
353,996
345,959
5,697,908
876,293
43,723
218,237
-
-
Unrecognised tax losses from prior years recouped in the current year
(4,806,121)
Net timing differences not recognised
Total income tax benefit
(53,758)
1,574,847
-
-
Unrecognised temporary differences
Deferred tax assets and liabilities not recognised relate to the following:
Tax losses
Net deferred tax assets unrecognised
1,855,539
7,443,225
1,855,539
7,443,225
1 Upon execution of the term sheet, a capital gains tax event on the disposal of Juruena Project was recognised in the year ended
30 June 2022.
Significant accounting judgment
Deferred tax assets
The Group expects to have carried forward tax losses, which have not been recognised as deferred tax assets, as it is not
considered sufficiently probable that these losses will be recouped by means of future profits taxable in the relevant
jurisdictions. The utilisation of the tax losses is subject to the Group passing the required Continuity of Ownership and
Same Business Test rules at the time the losses are utilised. Net deferred tax assets have not been brought to account as
it is not probable within the immediate future that tax profits will be available against which deductible temporary
difference can be utilised.
5
CASH AND CASH EQUIVALENTS
Risk exposure
Refer to Note 15 for details of the risk exposure and
management of the Group’s cash and cash equivalents.
(a) Deposits at call
Deposits at call are presented as cash equivalents if they
have a maturity of three months or less. Refer Note 26(j) for
the Group's other accounting policies on cash and cash
equivalents.
2022
$
2021
$
Cash at bank
1,554,940
3,967,738
METEORIC RESOURCES NL
- 31 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
6
OTHER RECEIVABLES
The Group has no impairments to other receivables or
have receivables that are past due but not impaired.
Refer to Note 15 for detail of the risk exposure and
management of the Group’s other receivables.
Due to the short-term nature of the current receivables,
their carrying amount is assumed to be the same as their
fair value.
Other receivables
Prepayments
2022
$
51,118
79,355
130,473
2021
$
164,244
83,649
247,893
7
JOINT VENTURES
The Company is or has been party to a number of unincorporated exploration joint ventures which involves the “farming
out” (diluting) of its interest in selected tenements. The following is a list of unincorporated exploration joint ventures
under which the Company has diluted and may yet dilute its original interest:
Name of Joint Venture and Project
Geocrystal JV – Webb Diamond Project
2022 Interest
%
15%
2021 Interest
%
16%
Chalice Gold JV - Warrego North Project (1)
49%, diluting
49%, diluting
1
Farm-in agreement in place, with Chalice holding the right to earn in up to 70%.
All exploration and evaluation expenditure is expensed to Statement of Profit or Loss and Other Comprehensive Income
as incurred.
8
OTHER FINANCIAL ASSETS
2022
$
2021
$
Significant accounting estimates, assumptions and
judgements
Non-Current
Financial assets at FVOCI
– equity securities
346,677
852,254
Security deposits
2,768
2,768
349,445
855,022
On disposal of these equity investments, any related balance
within the fair value through other comprehensive income
reserve remain within other comprehensive income.
Classification of financial assets at fair value through
other comprehensive income
Investments are designated at fair value through other
comprehensive income where management have made
the election in accordance with AASB 9: Financial
Instruments.
Fair value for financial assets at fair value through other
comprehensive income
Information about the methods and assumptions used in
determining fair value is provided in Note 11.
METEORIC RESOURCES NL
- 32 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
9
TRADE AND OTHER PAYABLES
Trade and other payables are normally settled within 30 days
from receipt of invoice. All amounts recognised as trade and
other payables, but not yet invoiced, are expected to settle
within 12 months.
The carrying value of trade and other payables are assumed
to be the same as their fair value, due to their short-term
nature. Refer to Note 15 for details of the risk exposure and
management of the Group’s trade and other receivables.
10 PROVISIONS
The current provision for employee benefits relate to annual
leave which is provided for all employees of the Group in line
with their employment contracts and the balance for the
year ended 30 June 2022 is expected to be settled within 12
months. The measurement and recognition criteria relating
to employee benefits have been included in Note 26(q) to
this report.
2022
$
2021
$
Trade payables
421,355
509,598
2022
$
2021
$
Employee benefits
4,308
18,133
11
FAIR VALUES OF FINANCIAL INSTRUMENTS
This note provides an update on the judgements and estimates made by the Group in determining the fair values of the
financial instruments since the last annual financial report.
Fair value hierarchy
To provide an indication about the reliability of the inputs used in determining fair value, the Group classifies its financial
instruments into the three levels prescribed under the accounting standards. An explanation of each level follows
underneath the table.
The following table presents the group's financial assets and financial liabilities measured and recognised at fair value at
30 June 2022 and 30 June 2021 on a recurring basis:
Level 1
$
Level 2
$
Level 3
$
Total
$
As at 30 June 2022
Financial assets at FVOCI – Equity securities
346,667
As at 30 June 2021
Financial assets at FVOCI – Equity securities
852,254
-
-
-
-
346,667
852,254
There were no transfers between levels during the period. The Group's policy is to recognise transfers into and transfers
out of fair value hierarchy levels as at the end of the reporting period.
The fair value of financial assets and liabilities held by the Group must be estimated for recognition, measurement and/or
disclosure purposes. The Group measures fair values by level, per the following fair value measurement hierarchy:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or liability, either
directly (as prices) or indirectly (derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
METEORIC RESOURCES NL
- 33 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
11
FAIR VALUES OF FINANCIAL INSTRUMENTS (continued)
Valuation techniques used to determine fair values
The Group did not have any financial instruments that are recognised in the financial statements where their carrying
value differed from the fair value. The fair value of the financial assets and liabilities are included at the amount at which
the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation
sale. The carrying amounts of cash and short-term trade and other receivables, trade payables and other current
liabilities approximate their fair values largely due to the short-term maturities of these payments.
Financial assets at fair value through other comprehensive income – equity securities
The fair value of the equity holdings is based on the quoted market prices from the ASX on the last traded price prior or
nearest to year-end.
12
ISSUED CAPITAL AND RESERVES
(a)
Issued capital
2022
Shares
2021
Shares
2022
$
2021
$
Fully paid
1,526,297,371
1,314,791,539
41,309,785
38,738,571
Movements in ordinary share capital during the current and prior financial period are as follows:
Details
Balance at 1 July 2020
Exercise of options
Exercise of options
Exercise of options
Issue of options
Placement
Exercise of options
Placement
Share -based payment
Exercise of options
Exercise of options
Exercise of options
Less: Share issue costs
Balance at 30 June 2021
Date
Number of
shares
Issue price/share
$
$
1,231,314,346
35,196,221
21-Aug-20
28-Aug-20
28-Aug-20
9-Sep-20
16-Sep-20
18-Sep-20
21-Dec-20
21-Dec-20
7-Jan-21
25-Jan-21
23-Feb-21
2,400,000
1,000,000
1,500,000
-
2,000,000
2,000,000
70,175,439
2,701,754
700,000
700,000
300,000
1,314,791,539
0.0240
0.0120
0.0240
0.0000
0.0160
0.0240
0.0570
0.0570
0.0240
0.0240
0.0240
57,600
12,000
36,000
458
32,000
48,000
4,000,000
154,000
16,800
16,800
7,200
(838,508)
38,738,571
METEORIC RESOURCES NL
- 34 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
12
ISSUED CAPITAL AND RESERVES (continued)
Details
Balance at 30 June 2021
Conversion of performance rights
Conversion of performance rights
Conversion of performance rights
Conversion of performance rights
Placement
Placement
Issue of options
Less: Share issue costs
Balance at 30 June 2022
(b) Accumulated losses
Balance at 1 July
Net loss for the year
Balance at 30 June
(c) Reserves
Date
Number of
shares
Issue price/share
$
$
1,314,791,539
38,738,571
9-Jul-21
4-Aug-21
24-Aug-21
9-Nov-21
9-Nov-21
15-Dec-21
16-Dec-21
16,500,000
3,000,000
3,000,000
25,000,000
100,000,000
64,005,832
-
-
1,526,297,371
-
-
-
-
0.0170
0.0170
-
-
-
-
-
1,700,000
1,088,100
1,280
(218,166)
41,309,785
2022
$
2021
$
(40,208,103)
(31,164,438)
(5,555,353)
(9,043,665)
(45,763,456)
(40,208,103)
The following table shows a breakdown of the reserves and the movements in these reserves during the year. A
description of the nature and purpose of each reserve is provided.
Share-based payments reserve
Balance at 1 July
Issue of options
Performance rights issued/cancelled
Balance at 30 June
Foreign currency translation reserve
Balance at 1 July
Currency translation differences arising during the year
Balance at 30 June
Note
14(a)
14(b)
2022
$
2021
$
6,233,723
2,614,240
43,698
431,531
698,508
2,920,975
6,708,952
6,233,723
(208,985)
53,340
(155,645)
(171,658)
(37,327)
(208,985)
METEORIC RESOURCES NL
- 35 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
12
ISSUED CAPITAL AND RESERVES (continued)
Fair value through other comprehensive income reserve
Balance at 1 July
Movement during the period
Balance at 30 June
Total reserves
Share-based payments reserve
Note
8
2022
$
2021
$
102,223
(505,577)
(404,354)
61,888
39,335
102,223
6,148,953
6,125,961
The share-based payments reserve is used to recognise: (a) the grant date fair value of options issued but not exercised;
(b) the grant date fair value of market-based performance rights granted to Directors, Employees, Consultants and
Vendors but not yet vested; and (c) the fair value non-market based performance rights granted to Directors, Employees,
Consultants and Vendors but not yet vested.
Foreign currency translation reserve
Exchange differences arising on translation of the foreign controlled entities are recognised in other comprehensive
income as described in Note 26(d) and accumulated in a separate reserve within equity. The cumulative amount is
reclassified to profit or loss when the net investment is disposed of.
Fair value through other comprehensive income reserve
Movements in investments designated at fair value through other comprehensive income where management have
made the election in accordance with AASB 9: Financial Instruments.
13
DIVIDENDS
No dividends have been declared or paid for the year ended 30 June 2022 (30 June 2021: nil).
14
SHARE-BASED PAYMENTS
Share-based payment transactions are recognised at fair value in accordance with AASB 2.
The total movement arising from share-based payment transactions recognised during the year were as follows:
As part of share-based payment reserve:
Performance rights issued/cancelled
14(b)
431,531
2,920,975
Note
2022
$
2021
$
Recognised in equity as a capital raising cost
Shares issued
Options issued to advisors
14(c)
14(a)
-
43,698
154,000
698,508
475,229
3,773,483
METEORIC RESOURCES NL
- 36 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
14
SHARE-BASED PAYMENTS (continued)
During the year the Group had the following share-based payments:
(a) Share options
The Meteoric Resources NL share options are used to reward Directors, Employees, Consultants and Vendors for their
performance and to align their remuneration with the creation of shareholder wealth through the performance
requirements attached to the options. The Company’s Option Plan was approved and adopted by shareholders on 30
November 2009. Options are granted at the discretion of the Board and no individual has a contractual right to participate
in the plan or to receive any guaranteed benefits.
The options are not listed and carry no dividend or voting right. Upon exercise, each option is convertible into one
ordinary share to rank pari passu in all respects with the Company’s existing fully paid ordinary shares.
Set out below are summaries of options granted:
Opening balance
Granted during the year
Exercised during the year
Forfeited
Closing balance
Vested and exercisable
2022
2021
Average exercise
price per option
$0.059
$0.024
-
-
$0.049
$0.049
Number of
options
110,487,719
46,801,126
-
-
157,288,845
157,288,845
Average exercise
price per option
$0.020
$0.100
$0.023
$0.011
$0.059
$0.059
Number of
options
98,500,000
51,087,719
(8,600,000)
(30,500,000)
110,487,719
110,487,719
Series
Grant date
Expiry date
Exercise price
2022
Number of options
2021
Number of options
(i)
(ii)
(iii)
(iv)
(v)
(vi)
21-May-19
22-Jun-20
21-Dec-20 (1)
21-Dec-20
20-May-23
20-May-23
21-Dec-23
21-Dec-23
09-Nov-21 (1)
28-May-23
15-Dec-21 (1)
28-May-23
(vii)
16-Dec-21
28-May-23
$0.024
$0.024
$0.100
$0.100
$0.024
$0.024
$0.024
47,400,000
12,000,000
35,087,719
16,000,000
20,000,000
12,801,126
14,000,000
47,400,000
12,000,000
35,087,719
16,000,000
-
-
-
157,288,845
110,487,719
Weighted average remaining contractual life of options outstanding at the
end of the year:
1.09 years
2.16 years
1 Options granted as free attaching options with placement performed during the year, no value has been assigned to the options.
The fair value of option issued is measured by reference to the value of the goods or services received. The fair value of
services received in return for share options granted to Directors and Employees and Consultants is measured by
reference to the fair value of options granted. The fair value of services received by advisors could not be reliably
measured and are therefore measured by reference to the fair value of the equity instruments granted. The estimate of
the fair value of the services is measured based on a number of closed and open form models by an independent valuer.
The life of the options including early exercise options are built into the option model. The fair value of the options are
expensed over the expected vesting period.
METEORIC RESOURCES NL
- 37 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
14
SHARE‐BASED PAYMENTS (continued)
The model inputs for options granted during the year included:
Series
Exercise
price
Expiry
(years)
Expected volatility (1)
Dividend yield
Risk free interest
rate (2)
Option value
(vii)
$0.024
1.45
69%
0%
0.016%
$0.0031
1 The expected price volatility is based on historical volatility (based on the remaining life of the option), adjusted for any expected
changes to future volatility due to publicly available information.
2 Risk free rate of securities with comparable terms to maturity.
The total cost arising from options issued during the reporting period as part of the share‐based payments reserve was
as follows:
Capital raising cost
Options issued to Advisors
(b) Performance rights
2022
$
2021
$
43,698
43,698
698,508
698,508
The Company’s Performance Rights Plan was approved and adopted by shareholders on 14 August 2017. Each
performance right will vest as an entitlement to one fully paid ordinary share upon achievement of certain performance
milestones. If the performance milestones are not met, the performance rights will lapse, and the eligible participant will
have no entitlement to any shares.
Performance rights are not listed and carry no dividend or voting rights. Upon exercise each performance right is
convertible into one fully paid ordinary share to rank pari passu in all respects with existing fully paid ordinary shares.
Movement in the performance rights for the current year is shown below:
Grant date
Expiry
date
Exercise
price
22‐Nov‐19(1)
21‐Nov‐21
03‐Sep‐20(1)
16‐Sep‐22
16‐Sep‐20(1)
21‐Nov‐21
‐
‐
‐
Total
Balance at
start of the
year
Granted
during the
year
Converted
during the
year
Cancelled
during the
year
Balance
at year
end
Vested at
year end
41,500,000
47,500,000
4,000,000
93,000,000
‐
‐
‐
‐
‐
(41,500,000)
(47,500,000)
‐
‐
(4,000,000)
(47,500,000)
(45,500,000)
‐
‐
‐
‐
‐
‐
‐
‐
1 Performance rights granted to Directors, Employees and Advisors.
The weighted average remaining contractual life of performance rights outstanding at 30 June 2022 was nil (30 June 2021:
1.30 years).
METEORIC RESOURCES NL
‐ 38 ‐
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
14
SHARE-BASED PAYMENTS (continued)
Key inputs used in the fair value calculation of the performance rights which have been granted during the year ended
30 June 2021 were as follows:
Key inputs
Exercise price
Exercise period
Grant date:
3 Sep 2020
Nil
2 years from the
date of issue
Vesting conditions
Performance milestones
-
Value per right
Total fair value
$0.039
$1,852,500
Performance rights vest and become exercisable on
achievement of any one of the following milestones:
-
The Company delineates a JORC 2012 Compliant
Mineral Resource (Inferred Category or above) of not
less than 250,0000z of Au at greater than 2.0 g/t at its
Palm Springs Gold Project;
The Company delineates a JORC 2012 Compliant
Mineral Resource (Inferred Category or above) of not
less than 500,0000z of Au at greater than 2.0 g/t, in
aggregate, at its Palm Springs Gold Project and/or its
Juruena Gold Project; or
On 3 June 2021, all performance rights converted following delineation of a JORC Compliant Mineral Resource of more
than 250,000 oz Au at >2.O g/t at Palm Springs Gold Project.
- The Company commences mining of gold at either its
Palm Springs Gold Project or its Juruena Gold Project.
Key inputs
Exercise price
Exercise period
Grant date:
16 Sep 2020
Nil
1.18 years from the
date of grant
Expected share price volatility
Risk-free interest rate
120%
0.21%
Vesting conditions
Performance milestone
Expected dividend yield
Value per right
Total fair value
Nil
$0.035
$140,000
Performance rights vest on the date on which the volume
weighted average price of the Company’s shares trading
on the ASX over 20 consecutive trading days achieves at
least $0.078.
The rights have been valued using a barrier up and in
trinomial option pricing model.
On 21 November 2021, the Performance rights lapsed as
the volume weighted average price was not achieved
during the vesting period.
The total Director, Employee and Consultant share performance rights expense arising from performance rights
recognised during the reporting period as part of share-based payment expense were as follows:
Performance rights granted during the year
(c) Share capital to vendors
During the prior period:
2022
$
431,531
431,531
2021
$
2,920,975
2,920,975
- On 18 December 2020, 1,389,432 shares were issued to CPS Capital Investments Pty Ltd in consideration for capital
raising fees. The fair value of the shares recognised was by direct reference to the fair value of service received.
This was determined by the corresponding invoice received which amounted to $79,198 (including GST of $7,200).
An amount of $71,998 has been recognised in the Statement of Financial Position under capital raising cost.
METEORIC RESOURCES NL
- 39 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
14 SHARE-BASED PAYMENTS (continued)
- On 18 December 2020, 1,312,322 shares were issued to Vert Capital Pty Ltd in consideration for capital raising fees.
The fair value of the shares recognised was by direct reference to the fair value of service received. This was
determined by the corresponding invoice received which amounted to $74,802 (including GST of $6,800). An
amount of $68,002 has been recognised in the Statement of Financial Position under capital raising cost.
Significant accounting estimates, assumptions, and judgements
Estimation of fair value of share-based payments
The Group measures the cost of equity-settled transactions by reference to the fair value of the equity instruments at
the date at which they are granted. The fair value is determined using the barrier up and in trinomial option pricing
model taking into account the assumptions detailed within this note.
Probability of vesting conditions being achieved
Inputs to pricing models may require an estimation of reasonable expectations about achievement of future vesting
conditions. Vesting conditions must be satisfied for the counterparty to become entitled to receive cash, other assets or
equity instruments of the entity, under a share-based payment arrangement.
Vesting conditions include service conditions, which require the other party to complete a specified period of service,
and performance conditions, which require specified performance targets to be met (such as a specified Increase in the
entity's profit over a specified period of time) or completion of performance hurdles.
The Company recognises an amount for the goods or services received during the vesting period based on the best
available estimate of the number of equity instruments expected to vest and shall revise that estimate, if necessary, if
subsequent information Indicates that the number of equity instruments expected to vest differs from previous
estimates. On vesting date, the entity shall revise the estimate to equal the number of equity instruments that ultimately
vested.
The achievement of future vesting conditions are reassessed each reporting period.
15
FINANCIAL AND CAPITAL RISK MANAGEMENT
Overview
The financial risks that arise during the normal course of the Group’s operations comprise market risk, credit risk and
liquidity risk. In managing financial risk, it is policy to seek a balance between the potential adverse effects of financial
risks on financial performance and position, and the "upside" potential made possible by exposure to these risks and by
taking into account the costs and expected benefits of the various risk management methods available to manage them.
General objectives, policies and processes
The Board is responsible for approving policies on risk oversight and management and ensuring management has
developed and implemented effective risk management and internal control. The Board receives reports as required
from the Managing Director in which they review the effectiveness of the processes implemented and the
appropriateness of the objectives and policies it sets. The Board oversees how management monitors compliance with
the Group's risk management policies and procedures and reviews the adequacy of the risk management framework in
relation to the risks faced.
These disclosures are not, nor are they intended to be an exhaustive list of risks to which the Group is exposed.
METEORIC RESOURCES NL
- 40 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
15
FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)
Financial Instruments
The Group has the following financial instruments:
Financial assets
Cash and cash equivalents
Other receivables
Financial assets at FVOCI
Financial liabilities
Trade and other payables
(a) Market Risk
2022
$
2021
$
1,554,940
3,967,738
51,118
346,677
164,244
852,254
1,952,735
4,984,236
421,355
421,355
509,598
509,598
Market risk can arise from the Group’s use of interest-bearing financial instruments, foreign currency financial
instruments and equity security instruments and exposure to commodity prices. It is a risk that the fair value of future
cash flows of a financial instrument will fluctuate because of changes in interest rates (interest rate risk), foreign exchange
rate (currency risk), equity securities price risk (price risk) and fluctuations in commodity prices (commodity price risk).
(i)
Interest rate risk
The Board manages the Group's exposure to interest rate risk by regularly assessing exposure, taking into account funding
requirements and selecting appropriate instruments to manage its exposure. As at the 30 June 2022, the Group has
interest-bearing assets, being cash at bank (30 June 2021: cash at bank).
As such, the Group's income and operating cash flows are not highly dependent on material changes in market interest
rates.
Sensitivity analysis
The Group does not consider this to be a material risk/exposure to the Group and have therefore not undertaken any
further analysis.
As at 30 June 2022 and 30 June 2021 the Group did not hold any funds on deposit.
(ii) Currency risk
The Group maintains a corporate listing in Australia and operates in Brazil, Canada, and Australia. As a result of various
operating locations, the Group is exposed to foreign exchange risk arising from fluctuations, primarily in the US Dollar
(USD), Brazilian Real (BRL) and Canadian Dollar (CAD).
Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a
currency that is not the Company’s functional currency. The Group manages risk by matching receipts and payments in
the same currency and monitoring movements in exchange rates. The exposure to risks is measured using sensitivity
analysis and cash flow forecasting.
METEORIC RESOURCES NL
- 41 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
15
FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)
The Group’s exposure to foreign currency risk at year end, expressed in Australian dollars, was as follows:
USD
$
2022
BRL
$
CAD
$
USD
$
2021
BRL
$
CAD
$
-
-
-
27,136
1,423
3,830
98,363
-
-
-
-
-
78,328
54,059
1,360
-
97,073
3,348
Financial assets
Cash
Other receivables
Financial liabilities
Trade and other payables
Sensitivity analysis
The following table demonstrates the estimated sensitivity
to a 10% increase/decrease in the Australian dollar/BRL
exchange rate, with all variables held consistent, on post
tax profit and equity. The Group does not consider the
other currencies to be a material risk/exposure to the
Group and have therefore not undertaken any further
analysis. These sensitivities should not be used to forecast
the future effect of movement in the Australian dollar
exchange rate on future cash flows.
A hypothetical change of 10% in BRL exchange rates was
used to calculate the Group's sensitivity to foreign
exchange rate movements as the Company’s estimate of
possible rate movements over the coming year taking into
account current market conditions and past volatility.
(iii) Price risk
Impact on post-tax profits and equity
30 June 2022
AUD/BRL + %
AUD/BRL - %
30 June 2021
AUD/BRL + %
AUD/BRL - %
%
10
10
10
10
$
3,097
(3,097)
3,531
(3,531)
The Group’s only equity investments are publicly traded on the ASX. To manage its price risk arising from investments in
equity securities, management monitors the price movements of the investment and ensures that the investment risk
falls within the Group’s framework for risk management.
The Group’s exposure to equity securities price risk arises from investments held by the Group and classified in the
statement of financial position as financial assets at fair value (Note 8).
METEORIC RESOURCES NL
- 42 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
15
FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)
Sensitivity analysis
following
The
the estimated
table demonstrates
sensitivity to a 10% increase/decrease in the share price
of investments in equity securities, with all variables held
consistent, on post tax profit and equity. These
sensitivities should not be used to forecast the future
effect of movement in the share price of investments on
future cash flows.
A hypothetical change of 10%
in share price of
investments was used to calculate the Group's sensitivity
to price risk as the Company’s estimate of possible rate
movements over the coming year taking into account
current market conditions and past volatility.
(iv) Commodity price risk
Impact on post-tax profits and equity
30 June 2022
+ %
- %
30 June 2021
+ %
- %
%
10
10
10
10
$
34,667
(34,667)
85,225
(85,225)
As the Group has not yet entered into mineral or energy production, the risk exposure to changes in commodity price is
not considered significant.
(b) Credit risk
Credit risk arises from cash and cash equivalents and deposits with financial institutions, as well as trade receivables.
Credit risk is managed on a Group basis. For cash balances held with bank or financial institutions, where possible only
independently rated parties with a minimum rating of ‘-A’ are accepted.
The Board are of the opinion that the credit risk arising as a result of the concentration of the Group's assets is more than
offset by the potential benefits gained.
The maximum exposure to credit risk at the reporting date is the carrying amount of the assets as summarised net of
credit loss provisions and impairments.
Exposure to credit risk
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s maximum
exposure to credit risk at the reporting date was:
Cash and cash equivalents
Other receivables
Security deposits
2022
$
2021
$
1,554,940
3,967,738
51,118
164,244
-
-
1,606,058
4,131,982
The credit quality of financial assets are assessed by reference to external credit ratings (if available) or to historical
information about counterparty default rates. The Group has adopted lifetime expected credit loss allowance in
estimating expected credit loss.
METEORIC RESOURCES NL
- 43 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
15
FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)
Cash at bank and short-term deposits
Held with Australian banks and financial institutions
AA- S&P rating
A+ S&P rating
BB S&P rating
Unrated
Total
Other receivables
Counterparties with external credit ratings
Counterparties without external credit ratings (1)
Group 1
Group 2
Group 3
Total
2022
$
2021
$
-
-
1,526,381
3,888,004
27,136
1,423
78,328
1,406
1,554,940
3,967,738
46,988
109,886
-
4,130
-
-
54,358
-
51,118
164,244
1 Group 1 — new customers (less than 6 months)
Group 2 — existing customers (more than 6 months) with no defaults in the past
Group 3 — existing customers (more than 6 months) with some defaults in the past. All defaults were fully recovered
(c) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage
to the Group’s reputation. Through continuous monitoring of forecast and actual cash flows the Group manages liquidity
risk by maintaining adequate reserves to meet future cash needs. The decision on how the Group will raise future capital
will depend on market conditions existing at that time.
Maturities of financial liabilities
The table below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining period
at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual
undiscounted cash flows.
Less than
6 months
$
6 - 12
months
$
1 - 5
years
$
Over 5
years
$
Total
contractual
cash flows
$
Carrying
amount of
liabilities
$
At 30 June 2022
Trade and other payables
421,355
At 30 June 2021
Trade and other payables
509,598
-
-
-
-
-
-
421,355
421,355
509,598
509,598
METEORIC RESOURCES NL
- 44 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
15
FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)
(d) Capital risk management
The Group’s objective when managing capital is to safeguard the ability to continue as a going concern. This is to provide
returns for shareholders, benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost
of capital.
The Board monitors capital on an ad-hoc basis. No formal targets are in place for return on capital, or gearing ratios, as
the Group has not derived any income from operations.
16
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of the financial statements requires the use of accounting estimates which, by definition, will seldom
equal the actual results. Management also needs to exercise judgement in applying the Group's accounting policies.
This Note provides an overview of the areas that involved a higher degree of judgement or complexity and items which
are more likely to be materially adjusted. Detailed information about each of these estimates and judgements is included
in the Notes together with information about the basis of calculation for each affected line item in the financial
statements.
Significant accounting estimates and judgements
The areas involving significant estimates or judgements are:
-
-
-
-
-
-
Recognition of deferred tax asset for carried forward tax losses — Note 4;
Classification of financial assets through other comprehensive income – Note 8;
Fair value of financial assets through other comprehensive income – Note 8;
Estimation of fair value of share-based payments – Note 14;
Probability of vesting conditions being achieved– Note 14; and
Estimation of contingent liabilities – Note 19.
Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under
the circumstances.
There have been no actual adjustments this year as a result of an error and of changes to previous estimates.
METEORIC RESOURCES NL
- 45 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
17
TENEMENT EXPENDITURES CONDITIONS AND LEASING COMMITTMENTS
The Company has certain obligations to perform minimum exploration work on the tenements in which it has an interest.
These obligations may in some circumstances, be varied or deferred. Tenement rentals and minimum expenditure
obligations which may be varied or deferred on application are expected to be met in the normal course of business.
Within one year
Later than one year but no later than five years
Later than five years
2022 (1)
$
2021 (2)
$
327,693
733,559
365,403
287,927
844,017
434,767
1,426,655
1,566,710
1 The CA$ commitments have been translated at a rate of 1.1257 to AUD and the BRL commitments have been translated at a rate
of 3.5875 to AUD.
2 The CA$ commitments have been translated at a rate of 1.0748 to AUD and the BRL commitments have been translated at a rate
of 3.7304 to AUD.
The Company has the ability to diminish its exposure under these commitments through the application of a variety of
techniques including applying for exemptions from the regulatory expenditure obligations, surrendering tenements,
relinquishing portions of tenements or entering into farm-out agreements whereby third parties bear the burdens of such
obligation in whole or in part.
Australian Projects
The Group has certain obligations to perform minimum exploration work on tenements held. These obligations may vary
over time, depending on the Group's exploration programmes and priorities. As at reporting date, total exploration
expenditure commitments on tenements held is shown in the above table. These obligations are also subject to variations
by farm-out arrangements, dilution with current partners or sale of the relevant tenements. This commitment does not
include the expenditure commitments which are the responsibility of the joint venture partners.
Canadian Projects
The Group has certain obligations to perform minimum exploration work on tenements held. These obligations may vary
over time, depending on the Group's exploration programmes and priorities. As at reporting date, total exploration
expenditure commitments on tenements held less amount already spent is shown in the above table. Included within the
tenement expenditures and commitments is deferred consideration under the claim sale agreements in relation to the
Joyce Lake and Lorraine projects. These obligations are also subject to variations by farm-out arrangements or sale of
the relevant tenements. Other commitments specific to projects have been detailed below.
Brazil Projects
The Group has no minimum obligations to perform exploration work on tenements held.
18
LOSS PER SHARE
Basic and diluted loss per share
Net loss after tax attributable to the members of the Company
Weighted average number of ordinary shares
Basic and diluted loss per share (cents)
2022
2021
$ (5,555,353)
$ (9,043,665)
1,450,485,098
1,277,475,562
(0.38)
(0.71)
METEORIC RESOURCES NL
- 46 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
19
CONTINGENT LIABILITIES
(a) Contingent liabilities
Native Title
Tenements are commonly (but not invariably) affected by native title.
The Company is not in a position to assess the likely effect of any native title impacting the Company.
The existence of native title and heritage issues represent, as a general proposition, a serious threat to explorers and
miners, not only in terms of delaying the grant of tenements and the progression of exploration development and mining
operations, but also in terms of costs arising consequent upon dealing with aboriginal interest groups, claims for native
title and the like.
As a general proposition, a tenement holder must obtain the consent of the owner of freehold before conducting
operations on the freehold land. Unless it already has secured such rights, there can be no assurance that the Company
will secure rights to access those portions (if any) of the Tenements encroaching freehold land but, importantly, native
title is extinguished by the grant of freehold so if and whenever the Tenements encroach freehold the Company is in the
position of not having to abide by the Native Title Act in respect of the area of encroachment albeit aboriginal heritage
matters still be of concern.
Juruena Gold and Nova Astro Projects
During a prior year, in consideration for 100% equity in Batman Minerals Pty Ltd and the entities it controls Meteoric paid
$1,000,000 in cash, less a payment made in arrears of $49,816 and issued 50,000,000 ordinary shares. In addition to the
payments made the following contingent consideration may be due:
-
-
AU$750,000 of ordinary fully paid shares at an issue price equal to a 5-day VWAP upon defining a mineral resource
estimate in accordance with the JORC Code, at Juruena and/or Novo Astro containing at least 400,000 oz gold.
AU$750,000 of ordinary fully paid shares at an issue price equal to a 5-day VWAP upon the Board of Meteoric
approving a decision to mine at Juruena and/or Novo Astro, pursuant to a granted mining licence.
The Group assigned no value to the consideration on acquisition of the project as at the date of acquisition it was not
considered probable.
On 3 June 2022, the Company announced that it had executed a legally binding Agreement to sell the Juruena Gold
Project in Brazil.
Completion (and receipt of the initial US$2.5m) is anticipated to occur in late September 2022.
As a result of the sale the contingent consideration will not be payable.
(b) Contingent assets
The Group has no contingent assets as at 30 June 2022 (30 June 2021: Nil).
Significant judgments
Contingencies & commitments
As the Group is subject to various laws and regulations in the jurisdictions in which it operates, significant judgment is
required in determining whether any potential contingencies are required to be disclosed and/or whether any capital or
operating leases require disclosure (refer to Note 17).
METEORIC RESOURCES NL
- 47 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
20
RELATED PARTY TRANSACTIONS
Transactions with related parties are on normal commercial terms and conditions no more favourable than those
available to other parties unless otherwise stated.
Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Termination
Share-based payments
2022
$
2021
$
631,441
21,105
-
185,425
837,971
739,144
27,231
-
1,211,000
1,977,375
Detailed remuneration disclosures are provided within the remuneration report.
Parent entity
The ultimate parent entity and ultimate controlling party is Meteoric Resources NL (incorporated in Australia).
Subsidiaries
Interests in subsidiaries are set out in Note 23.
Transactions with related parties
Payment of fees
- Ms Shastri Ramnath, Non-Executive Director, is a Director of Ram Jam Holding Inc. which received Ms Ramnath’s
Director fees during the period. At year end the Company had an outstanding payable balance of $6,667
(30 June 2021: $3,348).
- Dr Andrew Tunks, Non-Executive Director, is a Director of Tunks Geo Consulting Pty Ltd. which received Dr Tunks
Non-Executive Director fees during the period. At year end the Company had an outstanding payable balance
of $26,000 (ex GST) (30 June 2021: nil).
Purchases of services
The Group acquired the following services from entities in which the group’s key management personnel have an interest:
-
Administrative services
A Director, Dr Tunks, is a Director of Tunks Geo Consulting Pty Ltd. Tunks Geo Consulting have been a partner to Meteoric
in providing geological services and support. All services provided have been on normal commercial terms and conditions.
The amount recognised as an expense during the year was $45,837 (ex GST) (during the period year: $50,004 (ex GST)).
No amount was outstanding at the end of the year (30 June 2021: nil).
Board Changes
In July 2021, Meteoric appointed Dr Marcelo De Carvalho to its Board to oversee the Company’s Brazilian operations. Dr
Carvalho is remunerated in line with the Company’s the Non-Executive Director remuneration structure.
In September 2021, Mr Patrick Burke, who has served as Executive Chairman would step back into his Non-Executive
Chairman role. Mr Burke is remunerated in line with the Company’s the Non-Executive Director remuneration structure.
On 3 June 2022, Meteoric announced that Dr Tunks would step down from the position of Managing Director into a Non-
Executive Director role.
METEORIC RESOURCES NL
- 48 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
20
RELATED PARTY TRANSACTIONS (continued)
Issued capital
Dr Tunks participated in the placement completed on 15 December 2021 and subscribed for 1,176,470 fully paid ordinary
shares. 235,294 options were granted as free attaching options with placement, no value has been assigned to the
options.
Share-based payments
Conversion of performance rights
During the period the following performance rights were converted to shares on 3 September:
- Dr Tunks converted 7,500,000 performance rights;
- Mr Burke converted 7,500,000 performance rights;
- Dr Paul Kitto converted 3,000,000 performance rights; and
- Ms Shastri Ramnath converted 1,000,000 performance rights.
Details of the valuation pertaining to the above-mentioned equity instruments are set out in Note 14.
Transactions with related parties are on normal commercial terms and conditions no more favourable than those
available to other parties unless otherwise stated.
There were no other related party transactions during the year.
21
RECONCILATION OF LOSS AFTER INCOME TAX TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES
Loss for the period
Add/(less) non-cash items:
Depreciation
Note
2022
$
2021
$
(5,555,353)
(9,043,665)
34,509
18,347
Share-based payments - Directors and Consultants
14
431,531
2,920,975
Share-based payments - Vendors
Foreign exchange (loss)/gain on foreign operations
-
14,000
53,773
(50,982)
Add/(less) items classified as investing/financing activities:
Receipt from sale of tenement
Changes in assets and liabilities during the financial year:
Decrease/(increase) in receivables
(Decrease)/increase in payables
Increase/(decrease) in employee provision
-
(1,263,948)
117,420
(111,796)
(88,243)
(13,825)
289,695
12,253
Net cash outflow from operating activities
(5,020,188)
(7,215,122)
METEORIC RESOURCES NL
- 49 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
22
EVENTS SUBSEQUENT TO REPORTING DATE
In the opinion of the Directors, no events of a material nature or transaction, have arisen since period end and the date
of this report that has significantly affected, or may significantly affect, the Group’s operations, the results of those
operations, or its state of affairs.
23
INTEREST IN OTHER ENTITIES
(a) Investments in controlled entities
The consolidated financial statements incorporate the assets, liabilities, and results of the following subsidiaries in
accordance with the accounting policy described in Note 26(a):
Country of
incorporation
2022
Equity holding
2021
Equity holding
Name of entity
Cobalt Canada Pty Ltd (1)
Resources Meteore Sub Inc.
A.C.N 632 447 511 (1)
Batman Minerals Pty Ltd
Australia
Canada
Australia
Australia
Sunny Skies Investments Limited
British Virgin Islands
Meteoric Brasil Mineracao Ltda
Juruena Mineracao Ltda
Lago Dourado Mineracao Ltda
Kimberly Resources Limited
Horrocks Enterprises Pty Ltd
1 Subsidiaries closed on 23 September 2021.
24
REMUNERATION OF AUDITORS
Brazil
Brazil
Brazil
Australia
Australia
-
100%
-
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
From time to time the Consolidated Entity may decide to employ an external auditor on assignments additional to their
statutory audit duties where the auditor's expertise and experience with the Consolidated Entity are important. These
assignments are principally tax advice and due diligence on acquisitions, which are awarded on a competitive basis. It is
the Group’s policy to seek competitive tenders for all major consulting projects.
The Board is satisfied that the provision of non-audit services during the period is compatible with the general standard
of independence for auditors imposed by the Corporations Act 2001.
During the year, the following fees were paid or payable for services provided by the auditor of the parent entity, its
related parties and non-related audit firms:
BDO Australia
Audit and assurance services
Audit and review of financial statements
40,444
47,402
2022
$
2021
$
Taxation services
Tax compliance services
Taxation advice
Total remuneration for BDO
METEORIC RESOURCES NL
47,485
11,570
99,499
8,726
7,071
63,199
- 50 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
25
PARENT ENTITY INFORMATION
The following information relates to the parent entity,
Meteoric Resources NL as at 30 June 2022. The
information presented here has been prepared using
consistent accounting policies as presented
in
Note 26.
(a) Summary of financial information
The individual aggregate financial information for the
parent entity is shown in the table.
(b) Guarantees entered into by the parent entity
The parent entity did not have any guarantees as at
30 June 2022 or 30 June 2021.
(c) Contingent liabilities of the parent entity
Other than those disclosed in Note 19, the parent
entity did not have any contingent liabilities as at
30 June 2022 or 30 June 2021.
(d) Contractual commitments for the acquisition of
property, plant, and equipment
The parent entity did not have any contractual
commitments for the acquisition of property, plant
and equipment as at 30 June 2022 or 30 June 2021.
Company
2022
$
2021
$
Financial position
Current assets
1,654,447
3,837,940
Total assets
2,022,582
5,087,087
Current liabilities
327,300
430,658
Total liabilities
327,300
430,658
Equity
Contributed equity
41,309,785
38,738,571
Reserves
6,304,599
6,334,947
Accumulated losses
(45,919,102)
(40,417,089)
Total equity
1,695,282
4,656,429
Financial performance
Loss for the year
(5,502,013)
(9,080,824)
Total comprehensive loss
(6,007,590)
(9,080,824)
METEORIC RESOURCES NL
- 51 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
26
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Meteoric Resources NL (Company or Meteoric) is a company
incorporated in Australia whose shares are publicly traded on the
Australian Securities Exchange. Meteoric Resources NL is the
ultimate parent entity of the Group.
The consolidated financial statements of Meteoric Resources NL
for the year ended 30 June 2022 comprise the Company and its
controlled subsidiaries (together referred to as the Group and
individually as Group entities).
Statement of compliance
These general-purpose financial statements have been prepared
in accordance with Australian Accounting Standards, other
authoritative pronouncements of the Australian Accounting
Standards Board, Australian Accounting Group Interpretations,
and the Corporations Act 2001. Meteoric Resources NL is a for-
profit entity for the purpose of preparing the financial
statements.
The consolidated financial statements of the Group also comply
with International Financial Reporting Standards (IFRS) as issued
by the International Accounting Standards Board (IASB).
Historical cost convention
These financial statements have been prepared on an accruals
basis and are based on historical costs and do not take into
account changing money values or, except where stated, current
valuations of non-current assets. Cost is based on the fair values
of the consideration given in exchange for assets.
Critical accounting estimates and significant judgments
critical accounting estimates.
The preparation of financial statements requires the use of
requires
certain
Management to exercise its judgment in the process of applying
the Group's accounting policies. The areas involving a higher
degree of judgment or complexity, or areas where assumptions
and estimates are significant to the financial statements are
disclosed within Note 16.
It also
New and amended standards adopted by the Group
The Group has adopted all of the new and revised Standards and
Interpretations issued by the AASB that are relevant to their
operations and effective for the current annual reporting period.
Other amendments did not have any impact on the amounts
recognised in prior periods and are not expected to significantly
affect the current or future periods.
The adoption of all the new and revised Standards and
Interpretations has not resulted in any changes to the Group’s
accounting policies and has no effect on the amounts reported
for the current or prior years. However, the above standards have
affected the disclosures in the notes to the financial statements.
New standards and interpretations not yet adopted
Certain new accounting standards and interpretations have been
published that are not mandatory for 30 June 2022 reporting
periods and have not been early adopted by the group. The
group's assessment of the impact of these new standards and
interpretations is set out below. These standards are not
expected to have a material impact on the entity in the current
or
future
transactions.
future reporting periods and on
foreseeable
Accounting policies
In order to assist in the understanding of the financial statements,
the following summary explains the principal accounting policies
that have been adopted in the preparation of the financial report.
These policies have been applied consistently to all of the periods
presented, unless otherwise stated.
(a) Principles of Consolidation
Subsidiaries
The consolidated financial statements incorporate the assets and
liabilities of subsidiaries of the Company at the end of the
reporting period. Subsidiaries are all those entities (including
special purpose entities) over which the Group has the power to
govern
financial and operating policies, generally
accompanying a shareholding of more than one-half of the voting
rights. The existence and effect of potential voting rights that are
currently exercisable or convertible are considered when
assessing whether the Group controls another entity.
the
Subsidiaries are fully consolidated from the date on which control
is transferred to the Group. They are de-consolidated from the
date that control ceases. Where a subsidiary has entered or left
the Group during the year, the financial performance of those
entities is included only for the period of the year that they were
controlled. A list of subsidiaries is contained in Note 23 to the
financial statements.
Intercompany transactions, balances, and unrealised gains on
transactions between Group companies are eliminated in full on
consolidation. Unrealised losses are also eliminated unless the
transaction provides evidence of the impairment of the asset
transferred.
Non-controlling interests in the results and equity of subsidiaries
are shown separately in the consolidated statement of profit or
loss and other comprehensive income, consolidated statement of
changes in equity and consolidated statement of financial
position.
Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by the
Group.
Changes in ownership interests
The Group treats transactions with non-controlling interests that
do not result in a loss of control as transactions with equity
owners of the Group. A change in ownership interest results in an
adjustment between the carrying amounts of the controlling and
non-controlling interests to reflect their relative interests in the
subsidiary. Any difference between the amount of the
METEORIC RESOURCES NL
- 52 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
adjustment to non-controlling interests and any consideration
paid or received is recognised in a separate reserve within equity
attributable to owners of Meteoric Resources NL.
(d)
Foreign Currency Translation
Functional and presentation currency
When the group ceases to consolidate or equity account for an
investment because of a loss of control, joint control or significant
influence, any retained interest in the entity is remeasured to its
fair value with the change in carrying amount recognised in profit
or loss. This fair value becomes the initial carrying amount for the
purposes of subsequently accounting for the retained interest as
an associate, joint venture or financial asset. In addition, any
amounts previously recognised in other comprehensive income
in respect of that entity are accounted for as if the group had
directly disposed of the related assets or liabilities. This may
mean
in other
amounts previously
comprehensive income are reclassified to profit or loss.
recognised
that
(b) Going Concern
The Directors have prepared the financial report on a going
concern basis, which contemplates continuity of normal business
activities and the realisation of assets and settlement of liabilities
in the normal course of business.
During the year the consolidated entity incurred a net loss of
$5,555,353 (2021: $9,043,665) and incurred net cash outflows
from operating activities of $5,020,188 (2021: $7,215,122). The
consolidated entity held cash assets at 30 June 2022 of
$1,554,940 (2021: $3,967,738).
In the event the Company is unable to secure additional funding
it may be unable to realize its assets and discharge its liabilities in
the normal course of business. These conditions indicate a
material uncertainty that may cast a significant doubt about the
entity’s ability to continue as a going concern and, therefore, that
it may be unable to realise its assets and discharge its liabilities in
the normal course of business.
Management believes there are sufficient funds to meet the
consolidated entity’s working capital requirements at the date of
this report for the following reasons:
-
-
at 30 June 2022 the consolidated entity had $1.55 million of
cash and a current working capital position of $1.3 million;
the Company is progressing the sale of its Brazilian assets.
Should the Group not be able to continue as a going concern, it
may be required to realise its assets and discharge its liabilities
other than in the ordinary course of business, and at amounts
that differ from those stated in the financial statements. The
financial report does not include any adjustments relating to the
recoverability and classification of recorded asset amounts or
liabilities that might be necessary should the consolidated entity
not continue as a going concern.
(c)
Segment Reporting
Operating segments are reported in a manner that is consistent
with the internal reporting to the chief operating decision maker,
which has been identified by the company as the Board.
Items included in the financial statements of the Group are
measured using the currency of the primary economic
environment in which the Group operates (‘the functional
currency). The consolidated financial statements are presented in
Australian dollars, which is Meteoric Resources NL’s functional
and presentation currency.
Transactions and balances
Foreign currency transactions are translated into functional
currency using the exchange rates prevailing at the dates of the
transactions. Foreign currency monetary assets and liabilities at
the reporting date are translated at the exchange rate existing at
reporting date. Exchange differences are recognised in profit or
loss in the period in which they arise.
No dividends were paid or proposed during the year.
Group companies
The results and financial position of foreign operations (none of
which has the currency of a hyperinflationary economy) that have
a functional currency different from the presentation currency
are translated into the presentation currency as follows:
assets and liabilities for each statement of financial position
presented are translated at the closing rate at the date of that
statement of financial position;
income and expenses for each statement of profit or loss and
other comprehensive income are translated at average exchange
rates (unless this is not a reasonable approximation of the
cumulative effect of the rates prevailing on the transaction dates,
in which case income and expenses are translated at the dates of
the transactions); and
all resulting exchange differences are recognised in other
comprehensive income.
On consolidation, exchange differences arising from the
translation of any net investment in foreign entities, and of
borrowings and other financial instruments designated as hedges
of such investments, are recognised in other comprehensive
income. When a foreign operation is sold or any borrowings
forming part of the net investment are repaid, a proportionate
share of such exchange difference is reclassified to profit or loss,
as part of the gain or loss on sale where applicable.
Goodwill and fair value adjustments arising on the acquisition of
a foreign operation are treated as assets and liabilities of the
foreign operation and translated at the closing rate.
(e) Other income
Other income for other business activities is recognised on the
following basis:
Interest income
Interest revenue is recognised on a time proportionate basis that
takes into account the effective yield on the financial asset.
METEORIC RESOURCES NL
- 53 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
All revenue is stated net of Goods and Service Tax.
(f)
Income Tax and Other Taxes
The income tax expense or revenue for the period is the tax
payable on the current period’s taxable income based on the
applicable income tax rate for each jurisdiction adjusted by
changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the
tax laws enacted or substantively enacted at the end of the
reporting period
in the countries where the company’s
subsidiaries and associates operate and generate taxable income.
Management periodically evaluates positions taken in tax returns
with respect to situations in which applicable tax regulation is
subject to
It establishes provision where
appropriate on the basis of amounts expected to be paid to the
tax authorities.
interpretation.
Deferred income tax is provided in full, using the liability method,
on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the consolidated
financial statements. However, deferred tax liabilities are not
recognised if they arise from the initial recognition of goodwill.
Deferred income tax is also not accounted for if it arises from
initial recognition of an asset or liability in a transaction other
than a business combination that at the time of the transaction
affects neither accounting nor taxable profit or loss. Deferred
income tax is determined using tax rates (and laws) that have
been enacted or substantially enacted by the end of the reporting
period and are expected to apply when the related deferred
income tax asset is realised or the deferred income tax liability is
settled.
Deferred tax assets are recognised for deductible temporary
differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary
differences and losses.
Deferred tax liabilities and assets are not recognised for
temporary differences between the carrying amount and tax
bases of investments in foreign operations where the company is
able to control the timing of the reversal of the temporary
differences and it is probable that the differences will not reverse
in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to offset current tax assets and liabilities and
when the deferred tax balances relate to the same taxation
authority. Current tax assets and tax liabilities are offset where
the entity has a legally enforceable right to offset and intends
either to settle on a net basis, or to realise the asset and settle
the liability simultaneously.
Meteoric Resources NL and
its wholly owned Australian
controlled entities have implemented the tax consolidation
legislation. As a consequence, these entities are taxed as a single
entity and the deferred tax assets and liabilities of these entities
are set off in the consolidated financial statements.
it relates to
Current and deferred tax is recognised in profit or loss, except to
the extent that
in other
comprehensive income or directly in equity. In this case, the tax
is also recognised in other comprehensive income or directly in
equity, respectively.
items recognised
(g) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount
of GST except:
where the GST incurred on a purchase of goods and services is
not recoverable from the taxation authority, in which case the
GST is recognised as part of the cost of acquisition of the asset or
as part of the expense item as applicable; and
receivables and payables are stated with the amount of GST
included.
The net amount of GST recoverable from, or payable to, the
taxation authority is included as part of receivables or payables in
the Statement of Financial Position.
Cash flows are included in the Statement of Cash Flows on a gross
basis and the GST component of cash flow arising from investing
and financing activities, which is recoverable from, or payable to,
the taxation authority are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount
of GST recoverable from, or payable to, the taxation authority.
(h) Exploration and Evaluation Expenditure
The Group expenses exploration and evaluation expenditure as
incurred in respect of each identifiable area of interest until a
time where an asset is in development.
Exploration and Evaluation expenditure
Exploration for and evaluation of mineral resources is the search
for mineral resources after the entity has obtained legal rights to
explore in a specific area as well as the determination of the
technical feasibility and commercial viability of extracting mineral
resource.
Exploration and evaluation expenditure is expensed to profit or
loss as incurred except when existence of a commercially viable
mineral reserve has been established and it is anticipated that
future economic benefits are more likely than not to be
generated as a result of the expenditure.
(i)
Impairment of Non-Financial Assets
The Group assesses at each reporting date whether there is an
indication that an asset may be impaired. If any such indication
exists, or when annual impairment testing for an asset is
required, the Group makes an estimate of the asset’s recoverable
amount. An asset’s recoverable amount is the higher of its fair
value less costs to sell and its value in use and is determined for
an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets
or groups of assets and the asset’s values in use cannot be
estimated to be close to its fair value. In such cases the asset is
METEORIC RESOURCES NL
- 54 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
tested for impairment as part of the cash generating unit to which
it belongs.
When the carrying amount of an asset or cash-generating unit
exceeds its recoverable amount, the asset or cash-generating unit
is considered impaired and is written down to its recoverable
amount. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the
time value of money and the risks specific to the asset.
Impairment
losses relating to continuing operations are
recognised in those expense categories consistent with the
function of the impaired asset unless the asset is carried at re-
valued amount (in which case the impairment loss is treated as a
revaluation decrease).
last
impairment
As assessment is also made at each reporting date as to whether
there is any indication that previously recognised impairment
losses may no longer exist or may have decreased. If such
indication exists, the recoverable amount is estimated. A
previously recognised impairment loss is reversed only if there
has been a change in the estimates used to determine the asset’s
recoverable amount since the
loss was
recognised. If that is the case the carrying amount of the asset is
increased to its recoverable amount. That increased amount
cannot exceed the carrying amount that would have been
determined, net of depreciation, had the impairment loss been
recognised for the asset in prior years. Such reversal is
recognised in profit or loss unless the asset is carried at the re-
valued amount, in which case the reversal is treated as a
revaluation increase. After such a reversal the depreciation
charge is adjusted in future periods to allocate the asset’s revised
carrying amount, less any residual value, on a systematic basis
over its remaining useful life.
(j)
Cash and Cash Equivalents
For the purposes of the statement of cash flows, cash and cash
equivalents includes cash on hand, cash in bank accounts, money
market investments readily convertible to cash within two
working days, and bank bills but net of outstanding bank
overdrafts.
irrevocable election at the time of initial recognition to account
for the equity
fair value through other
comprehensive income (FVOCI).
investment at
Investments in equity instruments
The Group subsequently measures all equity investments at fair
value. Where the group's management has elected to present fair
value gains and losses on equity investments in OCI, there is no
subsequent reclassification of fair value gains and losses to profit
or loss following the derecognition of the investment. Dividends
from such investments continue to be recognised in profit or loss
as other income when the group's right to receive payments is
established.
Changes in the fair value of financial assets at FVPL are recognised
in other gains/(losses) in the statement of profit or loss as
applicable. Impairment losses (and reversal of impairment losses)
on equity investments measured at FVOCI are not reported
separately from other changes in fair value.
(m) Property, Plant and Equipment
Plant and equipment is stated at historical cost less accumulated
depreciation and any impairment in value. Historical cost includes
expenditure that is directly attributable to the acquisition of the
items.
Subsequent costs are included in the asset’s carrying amount or
recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item
will flow to the group and the cost of the item can be measured
reliably. The carrying amount of any component accounted for as
a separate asset is derecognised when replaced.
The assets’ residual values and useful lives are reviewed, and
adjusted if appropriate, at the end of each reporting period.
An asset’s carrying amount is written down immediately to its
recoverable amount if the asset’s carrying amount is greater than
its estimated recoverable amount.
Gains and losses on disposals are determined by comparing
proceeds with carrying amount. These are included in profit or
loss.
(k) Trade and Other Receivables
(n) Acquisition of Assets
Receivables are initially recognised at fair value and subsequently
measured at amortised cost, less expected lifetime losses.
Current receivables for GST are due for settlement within 30 days
and other current receivables within 12 months.
(l)
Investments and Other Financial Assets
The Group classifies
categories:
its financial assets
in the following
those to be measured subsequently at fair value (either through
OCI or through profit or loss); and
those to be measured at amortised cost.
For investments in equity instruments that are not held for
trading, this will depend on whether the group has made an
Where an entity or operation is acquired, the identifiable assets
acquired (and, where applicable, identifiable liabilities assumed)
are to be measured at the acquisition date at their relative fair
values of the purchase consideration.
Where the acquisition is a group of assets or net assets, the cost
of acquisition will be apportioned to the individual assets
acquired (and, where applicable, liabilities assumed). Where a
group of assets acquired does not form an entity or operation,
the cost of acquisition is apportioned to each asset in proportion
to the fair values of the assets as at the acquisition date.
(o) Share-Based Payment Transactions
Benefits to Employees and consultants (including Directors)
METEORIC RESOURCES NL
- 55 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
The Group provides benefits to employees and consultants
(including directors) of the Group in the form of share-based
payment transactions, whereby employees render services in
exchange for shares or rights over shares or options (“equity-
settled transactions”).
The costs of these equity settled transactions are measured by
reference to the fair value of the equity instruments at the date
on which they are granted. The fair value of performance rights
granted is determined using the single barrier share option
pricing model. The fair value of options granted is determined by
using the Black-Scholes option pricing technique. Further details
of options and performance rights granted are disclosed in Note
14.
The cost of these equity-settled transactions is recognised,
together with a corresponding increase in equity, over the period
in which the performance and/or service conditions are fulfilled
(the vesting period).
At each subsequent reporting date until vesting, the cumulative
charge to the profit or loss is the product of: (i) the fair value at
grant date of the award; (ii) the current best estimate of the
number of equity instruments that will vest, taking into account
such factors as the likelihood of employee turnover during the
vesting period and the likelihood of non-market performance
conditions being met; and (iii) the expired portion of the vesting
period.
The charge to profit or loss for the period is the cumulative
amount as calculated above less the amounts already charged in
previous periods. There is a corresponding credit to equity.
Until an equity instrument has vested, any amounts recorded are
contingent and will be adjusted if more or fewer equity
instruments vest than were originally anticipated to do so. Any
equity instrument subject to a market condition is valued as if it
will vest irrespective of whether or not that market condition is
fulfilled, provided that all other conditions are satisfied.
If the terms of an equity-settled award are modified, as a
minimum, an expense is recognised as if the terms had not been
modified. An additional expense
for any
modification that increases the total fair value of the share-based
payment arrangement or is otherwise beneficial to the recipient
of the award, as measured at the date of modification.
is recognised
If an equity-settled transaction is cancelled (other than a grant
cancelled by forfeiture when the vesting conditions are not
satisfied), it is treated as if it had vested on the date of
cancellation, and any expense not yet recognised for the award is
recognised immediately. However, if a new equity instrument is
substituted for the cancelled award and designated as a
replacement award on the date that it is granted, the cancelled
and new equity instrument are treated as if they were a
modification of the original award, as described in the preceding
paragraph.
Benefits to Vendors
The Group provides benefits to vendors of the Group in the form
of share-based payment transactions, whereby the vendor has
render services in exchange for shares or rights over shares or
options (“equity-settled transactions”).
The fair value is measured by reference to the value of the goods
or services received. If these cannot be reliably measured, then
by reference to the fair value of the equity instruments granted.
The cost of these equity-settled transactions is recognised over
the period in which the service was received.
(p)
Fair Value Estimation
The fair value of financial assets and financial liabilities must be
estimated for recognition and measurement or for disclosure
purposes.
The carrying value less impairment provision of trade receivables
and payables are assumed to approximately their fair value due
to their short-term nature. The fair value of financial liabilities for
disclosure purposes is estimated by discounting the future
contractual cash flows at the current market interest rate that is
available to the Group for similar financial instruments.
(q) Employee Entitlements
The Group’s liability for employee entitlements arising from
services rendered by employees to reporting date is recognised
in other payables. Employee entitlements expected to be settled
within one year together with entitlements arising from wages
and salaries, and annual leave which will be settled within one
year, have been measured at their nominal amount and include
related on-costs.
(r)
Loss Per Share
Basic loss per share
Basic loss per share is determined by dividing the operating loss
attributable to the equity holder of the Group after income tax by
the weighted average number of ordinary shares outstanding
during the financial year.
Diluted loss per share
Diluted loss per share adjusts the figures used in determination
of basic loss per share by taking into account amounts unpaid on
ordinary shares and any reduction in earnings per share that will
arise from the exercise of options outstanding during the year.
(s)
Trade and Other Payables
Trade payables and other payables are carried at cost and
represent liabilities for goods and services provided to the Group
prior to the end of the financial period that are unpaid and arise
when the Group becomes obliged to make future payments in
respect of the purchase of these goods and services. The
amounts are unsecured and usually paid within 30 days of
recognition.
METEORIC RESOURCES NL
- 56 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2022
(t)
Contributed Equity
(w) Parent Entity Financial Information
Issued and paid up capital is recognised at the fair value of the
consideration received by the Group. Any transaction costs
arising on the issue of ordinary shares are recognised directly in
equity as a reduction of the share proceeds received.
The financial
information for the parent entity, Meteoric
Resources NL, disclosed in Note 25 has been prepared on the
same basis as the consolidated financial statements except as set
out below:
(u) Dividends
Investments in subsidiaries
No dividends were paid or proposed during the year.
(v) Comparatives
Investments in subsidiaries are accounted for at cost and subject
to an annual impairment review.
Comparative figures have been restated to conform with the
current year’s presentation. This has had no impact on the
financial statements.
METEORIC RESOURCES NL
- 57 -
DIRECTORS’ DECLARATION
The Directors of the Group declare that:
1.
the accompanying financial statements and notes are in accordance with the Corporations Act 2001 and:
(a)
(b)
(c)
comply with Australian Accounting Standards and the Corporations Act 2001;
give a true and fair view of the financial position as at 30 June 2022 and performance for the year ended
on that date of the Group; and
the audited remuneration disclosures set out in the Remuneration Report section of the Directors’ Report
for the year ended 30 June 2022 complies with section 300A of the Corporations Act 2001;
2.
the Chief Financial Officer has declared pursuant to section 295A(2) of the Corporations Act 2001 that:
(a)
(b)
the financial records of the Group for the financial year have been properly maintained in accordance with
section 286 of the Corporations Act 2001;
the financial statements and the notes for the financial year comply with Australian Accounting Standards;
and
(c)
the financial statements and notes for the financial year give a true and fair view;
3.
4.
in the Directors’ opinion, there are reasonable grounds to believe that the Group will be able to pay its debts as
and when they become due and payable;
the Directors have included in the notes to the financial statements an explicit and unreserved statement of
compliance with International Financial Reporting Standards.
This declaration is made in accordance with a resolution of the Board of Directors.,
Patrick Burke
Non-Executive Chairman
Perth
21 September 2022
METEORIC RESOURCES NL
- 58 -
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR’S REPORT
To the members of Meteoric Resources NL
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Meteoric Resources NL (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2022, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its
financial performance for the year ended on that date; and
(ii)
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 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 confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
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 26(b) in the financial report which describes the events and/or conditions
which give rise to the existence of a material uncertainty that may cast significant doubt about the
entity’s ability to continue as a going concern and therefore the entity may be unable to realise its
assets and discharge its liabilities in the normal course of business. Our opinion is not modified in
respect of this matter.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia
Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO
International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability
limited by a scheme approved under Professional Standards Legislation
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. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
Performance Rights
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 14, the Group
recognised a share-based payment expense
in the Statement of Profit or Loss and Other
Comprehensive Income for the year ended
30 June 2022 due to the issue of
performance rights to eligible directors and
advisors.
Share-based payments are a complex
accounting area and due to the judgemental
estimates used in determining the fair value
of performance rights in accordance with the
Accounting Standards, we consider
management’s calculation of the share-
based payment expense to be a key audit
matter.
Our audit procedures included, but were not limited
to the following:
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
(cid:127)
Examining market announcements and board
minutes to determine whether all the new
performance rights granted during the year
were accounted for;
Reviewing the relevant agreements to obtain
an understanding of the contractual nature of
the performance rights arrangements;
Reviewing management’s determination of
the fair value of the performance rights
granted, considering the appropriateness of
the valuation models used and assessing the
valuation inputs;
Involving our valuation specialists to assess
the reasonableness of management’s fair
value calculation;
Evaluating management’s assessment of the
timing of meeting the performance
conditions attached to the performance
rights; and
Evaluating the adequacy of the disclosures in
respect of the accounting treatment of the
performance rights in Note 14 to the financial
statements, including significant judgements
involved.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2022, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 14 to 21 of the directors’ report for the
year ended 30 June 2022.
In our opinion, the Remuneration Report of Meteoric Resources NL, for the year ended 30 June 2022,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Jarrad Prue
Director
Perth
21 September 2022
TENEMENT DETAILS
As at 30 June 2022
Tenement
Nature of Interest
Project
Equity (%)
Australian Tenements
E80/4407
E80/4815
E80/5121
E80/5471
E80/5496
E80/5499
EL23764
M80/0106
M80/0315
M80/0418
P80/1766
P80/1768
P80/1839
P80/1854
P80/1855
E80/4856
E80/4874
E80/4976
E80/5059
E80/5584
Granted
Granted
Granted
ANGAS HILL (Webb JV)
LAKE MACKAY (Webb JV)
WEBB DIAMONDS (Webb JV)
Application
WEBB DIAMONDS (Webb JV)
Application
WEBB DIAMONDS (Webb JV)
Application
WEBB DIAMONDS (Webb JV)
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
WARREGO NORTH
PALM SPRINGS
PALM SPRINGS
PALM SPRINGS
PALM SPRINGS
PALM SPRINGS
PALM SPRINGS
PALM SPRINGS
PALM SPRINGS
PALM SPRINGS
PALM SPRINGS
PALM SPRINGS
PALM SPRINGS
PALM SPRINGS
15%
15%
15%
15%
15%
15%
49%
97%
97%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Tenement
Various
Various
Various
517797 - 517963
Canadian Tenements
Province
Ontario
Ontario
Ontario
Ontario
Project
IRON MASK
MULLIGAN
MULLIGAN EAST
BEAUCHAMP
Equity (%)
100%
100%
100%
100%
METEORIC RESOURCES NL
- 63 -
TENEMENT DETAILS
As at 30 June 2022
Tenement
Province
Project
Equity (%)
Brazilian Tenements
Juruena Project
866.079/2009
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.081/2009
Granted Exploration Permit
COTRIGUAÇU/MT, NOVA BANDEIRANTES/ MT
866.082/2009
Granted Exploration Permit
COTRIGUAÇU/MT, NOVA BANDEIRANTES/ MT
866.084/2009
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.778/2006
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.085/2009
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.080/2009
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.086/2009
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.247/2011
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.578/2006
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.105/2013
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.934/2012
Granted Exploration Permit
COTRIGUAÇU/MT
866.632/2006
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.633/2006
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.294/2013
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
866.513/2013
Granted Exploration Permit
COTRIGUAÇU/MT, NOVA BANDEIRANTES/ MT
100%
Nova Astro Project
867.246/2005
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
100%
METEORIC RESOURCES NL
- 64 -
OTHER INFORMATION
The following additional information is required by the Australian Securities Exchange Ltd in respect of listed public
companies only.
Information as at 22 August 2022
Distribution of Shareholders
Holding Ranges
No of Holders
Total Units
% Issued Share Capital
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Totals
Unmarketable Parcels
86
23
197
1,554
1,449
3,309
12,803
64,811
1,730,484
75,422,573
1,449,066,700
1,526,297,371
0.00%
0.00%
0.11%
4.94%
94.94%
100.00%
Based on the closing price per security of $0.012 on 19 August 2022, there were 1059 holders with an unmarketable
amounting to 1.30% of Issued Capital.
Distribution of Quoted Option holders (MEIO)
Holding Ranges
Holders
Total Units
% Issued Share Capital
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Totals
Substantial shareholders
-
-
-
103
103
206
-
-
-
4,485,963
101,715,163
106,201,126
-
-
-
4.22%
95.78%
100.00%
Shareholders who hold 5% or more of the issued capital of the Company as per substantial shareholder notices lodged
with ASX.
Shareholder
Tolga Kumova
Total Units % Issued Share Capital
154,296,250
10.11%
Twenty largest shareholders – Quoted fully paid ordinary shares:
Holder Name
KITARA INVESTMENTS PTY LTD
1
2
3
4
5
6
7
8
9
9
9
10
11
11
11 MR ROSS DIX HARVEY
12
LAWRENCE CROWE CONSULTING PTY LTD Continue reading text version or see original annual report in PDF
format above