More annual reports from Ora Banda Mining Limited:
2023 ReportPeers and competitors of Ora Banda Mining Limited:
Magnolia Bostad2
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TEAM WITH
A WINNING
MINDSET
OUR
VALUES
HOW WE OPERATE
ZERO
HARM
PURSUE
SOLUTIONS WITH
INTENT
ACCEPT THE
CHALLENGE TO
CREATE VALUE
OUR WHY
Ore-some Rocks, Awesome People – Exploring, Developing and Delivering
OUR ASPIRATION
Creating unparalleled growth, sustainably – Building the next mid tier miner
OUR ADVANTAGE
DRIVE to 100 – grow Ora Banda’s production profile to more than 100koz
per annum by FY25
Davyhurst - Large scale project, covering 130 strike kms and 1,200 km² of highly prospective greenstone belt
on the doorstep of Kalgoorlie
Talented Board & Management Team - refreshed & focussed on driving future success
Tier 1 jurisdiction - 3.0Moz gold endowment
(Historical Production of 1.2 Moz @ 3.5g/t + Mineral Resources of 1.8 Moz @ 2.6g/t)
Current production focus is shifting to higher grade underground mine, commensurate with projected
production growth
Exploration Strategy
» Searching for second high grade underground gold mine
» Strong multi commodity pipeline with numerous organic growth opportunities
Well funded with equity raising and non-core asset sales in March 2023
Extensive infrastructure including 1.2 Mtpa processing plant, two accommodation villages, gas generated +
mains power, expansive road network, airstrips
Multi commodity prospectivity including gold, lithium and nickel
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FY25
1(cid:31)(cid:31)
k(cid:31)(cid:30)
DRIVE
T(cid:31)
ORA BANDA MINING LIMITED ANNUAL REPORT 2023
CORPORATE DIRECTORY
DIRECTORS
Peter Mansell (Non-executive Chairman)
Luke Creagh (Managing Director)
Alan Rule (Non-executive Director)
COMPANY SECRETARIES
Susan Park
Gareth Jones
REGISTERED &
PRINCIPAL OFFICE ADDRESS
Level 2, 1 Hood Street
Subiaco 6008
Australia
Telephone
1300 035 592
Email
admin@orabandamining.com.au
Website
www.orabandamining.com.au
ABN
69 100 038 266
SHARE REGISTRY
Computershare Investor
Services Pty Limited
GPO Box 2975 Melbourne
VIC 3001
Telephone
1300 555 159
AUDITOR
KPMG
235 St Georges Terrace
Perth WA 6000
SECURITIES
EXCHANGE
LISTING
Listed on the Australian
Securities Exchange
under the trading code
OBM
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ORA BANDA MINING LIMITED ANNUAL REPORT 2023
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CONTENTS
2 OUR VALUES, OUR WHY, OUR ASPIRATION
& OUR ADVANTAGE
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CORPORATE DIRECTORY
CHAIRMAN’S LETTER
8 OUR ESG COMMITMENT
9 DIRECTORS' REPORT
24 REMUNERATION REPORT
42 AUDITOR’S INDEPENDENCE DECLARATION
44 FINANCIAL REPORT
45 CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
46 CONSOLIDATED STATEMENT OF FINANCIAL POSITION
47 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
48 CONSOLIDATED STATEMENT OF CASH FLOWS
49 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
82 DIRECTORS’ DECLARATION
83
INDEPENDENT AUDITOR’S REPORT
88 ASX ADDITIONAL INFORMATION
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ORA BANDA MINING LIMITED ANNUAL REPORT 2023 L
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CHAIRMAN'S LETTER
CHAIRMAN'S LETTER
Dear Shareholder
I am pleased to present Ora Banda Mining Limited’s (‘Ora Banda’ or ‘Company’)
annual report for the 2023 financial year.
This year was a period of positive transition for Ora Banda under our new
Managing Director, Luke Creagh, as we developed a new three-year strategy in
July focusing on value creation through organic growth on our highly prospective
tenement package of over 1,200km². The key aspects of the new strategy included
value creation through safe and sustainable operational performance as well as
investment in exploration to target and develop high-grade underground mines.
In addition to this, the Company established new Core Values to support
company-wide cultural improvement. They are:
» We target Zero Harm
» We are a Team with a Winning Mindset
» We Pursue Solutions with Intent
» We Accept the Challenge to Create Value
I am pleased to report that on the back of the new strategy and values Ora Banda
has made significant progress in FY23 towards its three-year plan and a key
highlight is the improvement in safety with zero Lost Time Injuries ('LTIs') in
the year.
In addition to this, the whole Ora Banda team achieved numerous operational
successes in the business including:
» Our ‘Geology First’ approach resulted in 42% grade uplift in mined grade from
6
H1 to H2;
» Mining & technical improvements resulted in over 21% increase in productivity
over the year for the open pit teams;
» The processing plant achieved 90% reduction in scats as well as setting up a
tailings facility for the next 5 years;
» Drilled, discovered, approved and commenced the Riverina underground mine
within 10 months of the Company committing to its high grade, underground
strategy; and
» Sourced additional funding from a $30 million equity raising; the sale of the
non-core Lady Ida tenements for $12.5 million; and a variation to the terms of
the Hawke’s Point Holdings L.P. (‘Hawke’s Point’) debt and royalty agreement
for an additional $1.7 million.
The achievements of the team have placed the Company in a strong position,
allowing us to launch our DRIVE to 100 Project, which is forecast to have us
producing over 100kozpa in FY25 as well as reducing costs and increasing the
cashflow of the business.
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CHAIRMAN'S LETTER
CHAIRMAN'S LETTER
The start of the Riverina Underground mine is a key
element of Ora Banda’s new growth pathway with
a reserve grade of 4.3 grams per tonne. In May, the
Riverina Underground portal was cut and at the time
of writing, decline advancement was over 700 metres
and progressing on schedule. The Company expects
that the mine will reach steady state production in
Q4, FY2024.
The Company’s big picture thinking is that, if it can
discover further underground orebodies, then the
Company will move into game-changing territory
as it redefines both its production and cost profile.
While it is still early days, our exploration team is
optimistic about such discoveries, supported by
~$10 million of exploration spend allocated in the
FY24 budget.
The open pit mining team continues to perform
well at Siberia, and with production from both open
pit and underground mining, the Company revised
its FY24 guidance upwards to represent a 40% lift
in produced ounces to a range of 67,000-73,000oz
compared with FY23. It also forecasts a 25% decrease
in AISC/oz to a range of $2,200 to $2,400/oz.
But this is just the start. With the business plan to
produce greater than 100,000ozpa by FY25 now well
underway, Ora Banda is already turning its mind to
finding a second underground mine. The Company’s
optimism centres on the significant lack of historical
underground exploration that has been conducted
on our tenements.
A case in point is Riverina Underground. A large and
emerging mineralised system, Riverina is 1.5km long
and remains open in all directions. Yet for the past 37
years, it has only had 9.8km of diamond drilling put
into it. For context, Ora Banda will have drilled more
than 20km of diamond drilling metres into Riverina
Underground by the end of this calendar year and
already we are very confident of extending the
mineralised envelope further south and at depth.
This newfound underground ‘exploration lens’ is also
being applied to the Missouri and Sand King open
pit resources, which are both advanced targets with
good prospectivity, given their known gold lodes and
extensions at depth.
Also encouraging is our ground’s potential to host
other commodities. During the year the Company
reported a lithium discovery and the Ora Banda
region has long been considered prospective
for other metals such as nickel. The Company is
continuing to actively explore opportunities to
maximise the potential of other minerals on its
tenements.
Twelve months ago, I was concerned about Ora
Banda’s poor production performance, rising cost
pressures and the lingering effects of COVID-19.
One year on, I can report a far more optimistic
and exciting outlook for the Company. Investors
have much to look forward to in FY24 as we grow
production, reduce our cost profile and continue to
explore our world-class land holding.
I would like to take this opportunity to thank
my fellow directors, our staff, contractors and
consultants for all their efforts for the year. Finally,
I would also like to thank our shareholders for their
continued support.
7
Peter Mansell
Chairman
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OUR ESG COMMITMENT
Ora Banda has commenced the development of an ESG strategy to
enable the Company to establish a pathway towards achieving our
vision of creating unparalleled growth, sustainably – building the
next mid-tier miner.
In FY23, an internal Working Group
was formed to progress the ESG
initiative and Ora Banda completed
a Materiality Assessment to identify
the priority ESG topics and potential
ESG risks for the business. An online
survey was issued to 78 internal and
external stakeholders with a response
rate of over 55%. The ESG materiality
topics covered in the survey were
informed by global sustainability
frameworks and were designed to
measure stakeholders’ opinion on the
importance of the ESG topics to Ora
Banda. The survey data was collated
and analysed to create Materiality
Assessment Matrix (see Figure 1).
The results show the majority of
stakeholders rate many of topics as
very important and with high impact.
Over the course of the next year,
the ESG Working Group will use this
data to inform our ESG strategy and
framework, data collection approach,
and to group ESG topics into highest
priority, moderate priority and
lowest priority. The ESG strategy and
framework will result in a release of
the Ora Banda Sustainability Report
for FY25.
FIGURE 1: ESG Topics Materiality Survey
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ENVIRONMENTAL
1. Water Management
2. Biodiversity
SOCIAL
11. Local Community
12. Health, Safety, Security
3. Tailings Management
13. Mental Health
GOVERNANCE
21. Aboriginal Participation
22. Human Rights
23. Ethical Behaviour
4. Emissons
5. Rehabiliation
14. Sustainable Procurement
24. Financial Performance
15. Aboriginal Cultural Heritage
25. Corporate Governance
6. Waste & Hazardous Materials
16. Philanthropy & Volunteering
26. Legal Compliance
7. Visual Amenity
8. Energy Management
9. Air Quality
17. Remuneration & Benefits
18. Training & Development
27. Data Security
28. Tax/Royalties
19. Diversity Equity Inclusion
29. External Stakeholder
10. Adverse Weather Management
20. Workplace Culture
LOW IMPACT
MEDIUM IMPACT
HIGH IMPACT
ORA BANDA MINING LIMITED ANNUAL REPORT 2023
DIRECTORS' REPORT
The directors of Ora Banda Mining
Limited (‘Ora Banda’ or ‘Company’)
present their report on the
results and state of affairs of the
Group, being the Company and its
controlled entities for the financial
year ended 30 June 2023 (‘FY23’).
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ORA BANDA MINING LIMITED ANNUAL REPORT 2023
DIRECTORS' REPORT
DIRECTORS
The names and details of the Group’s directors in office during the financial year and until the date of this
report are as follows.
NAMES, QUALIFICATIONS, EXPERIENCE AND SPECIAL RESPONSIBILITIES OF DIRECTORS & COMPANY SECRETARIES
DIRECTORS
Peter Mansell
Non-executive Chairman
QUALIFICATIONS
B.Com, LLB, H. Dip. Tax, FAICD
Mr Mansell has extensive experience in the mining, corporate and energy
sectors, both as an advisor and independent non-executive director of listed
and unlisted companies. Mr Mansell practised law for a number of years as a
partner in corporate and resources law firms in South Africa and Australia.
Appointed 22 June 2018
» Other current ASX directorships:
– DRA Global Limited (appointed 16 September 2019)
Luke Creagh
Managing Director/CEO
QUALIFICATIONS
BsC (Mining Engineering)
Appointed CEO 4 July 2022
Appointed Managing
Director
28 September 2022
» Former ASX directorships in the last three years:
– Energy Resources Australia Limited (26 October 2015 - 6 October 2022)
Mr Creagh is a mining engineer with 20 years’ experience working for both
contracting and mining companies at projects throughout Australia and
overseas. Mr Creagh has a Bachelor of Engineering (Mining) from the
University of Queensland and holds a Western Australia first class mine
manager’s certificate.
» Other current ASX directorships:
– Nil
» Former ASX directorships in the last three years:
– Nil
Alan Rule
Non-executive Director
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QUALIFICATIONS
B.Comm.; B.Acc.; FCA; MAICD
Appointed
30 September 2022
Mr Rule has more than 25 years’ experience as the CFO of ASX listed mining
companies with operations and projects in Australia, Africa, North and South
America across several commodities. He has also been a Non-Executive
Director of listed companies since 2016. He is currently a Non-executive
Director of Yellow Cake plc, an AIM listed company.
Mr Rule has considerable experience in international debt and equity financing
of mining projects, implementation of accounting controls and systems, risk
management, governance, and regulatory requirements in mining companies.
In addition, he has wide ranging experience in mergers and acquisitions within
the mining industry.
» Other current ASX directorships:
– Leo Lithium Limited (appointed 1 January 2023)
» Former ASX directorships in the last three years:
– Nil
David Quinlivan
Non-executive Director
Appointed 2 April 2019
Mr Quinlivan is a mining engineer and principal of Borden Mining Services.
He has over 35 years’ experience on projects throughout the world including
mining and executive leadership experience gained through a number of
mining development roles.
Ceased
28 September 2022
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 DIRECTORS' REPORT
DIRECTORS
Keith Jones
Non-executive Director
Appointed 2 April 2019
Ceased
30 September 2022
Mr Jones is a chartered accountant with over 40 years’ industry experience.
He led the Western Australian practice of Deloitte for 15 years, the Energy and
Resources group, and was Chairman of Deloitte Australia.
Mark Wheatley
Non-executive Director
Appointed 2 April 2019
Mr Wheatley is a chemical engineer with over 30 years in mining and related
industries. He has been involved as a director in both large and small
companies and has led a number of listed company exploration and production
turnaround stories.
Ceased
28 September 2022
JOINT COMPANY SECRETARIES
Susan Park
QUALIFICATIONS
B.Com, ACA, F Fin, FGIA, FCIS,
GAICD
Appointed 2 April 2019
Gareth Jones
QUALIFICATIONS
FCCA, MBA, AGIA, ACIS
Appointed
6 February 2023
Tony Brazier
Appointed 2 April 2019
Ceased 15 March 2023
Ms Park has over 25 years’ experience in the corporate finance industry. She has
held senior management positions at Ernst & Young, PricewaterhouseCoopers,
Bankwest and Norvest Corporate.
Mr Jones is a Fellow of the Association of Chartered Certified Accountants and
holds an MBA from Warwick Business School. He is an accomplished executive
with over 20 years of experience in financial, governance and operational
leadership across a diverse range of companies and sectors.
Mr Brazier is a chartered accountant with over 25 years’ experience across
a range of industries. He has extensive experience in project modelling and
financing, process optimisation, financial reporting and analysis, corporate
governance and risk management.
11
Directors’ Interests in Shares, Options and Performance Rights in Ora
Banda Mining Limited
Direct and indirect interests of the directors and their related parties in the Company’s shares, options and
performance rights as at 28 September 2023 were:
Director
Fully paid shares
Unlisted options
Unlisted performance rights
Peter Mansell
Luke Creagh
Alan Rule
10,250,002
62,317,460
444,000
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61,428,572
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Further details of the vesting conditions applicable are disclosed in the remuneration report.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 DIRECTORS' REPORT
Principal Activities
The principal activities of the Company during the financial year were mineral exploration, mine operation,
mine development and the sale of gold in Western Australia.
Review of Operations
Ora Banda is the 100% owner of the Davyhurst
Gold Project (‘Project’ or ‘DGP’) which is located
approximately 100 km north-west of Kalgoorlie,
within the Tier 1 gold mining province of the Eastern
Goldfields.
The Project consists of six key project hubs which
collectively cover an area of approximately
1,200 km², extending 130km from north to south
(refer Figure 2 overleaf). The tenement package is
highly prospective and covers the convergence of
two regionally significant deep-seated structures,
the Zuleika Shear and the Ida Fault.
The 2023 financial year has been transformational
for the Company on several fronts and headlined by
the approval and commencement of the Riverina
Underground mine in May 2023. The Company has
also achieved significant improvements in mining
performance at the Missouri open pit, continues to
deliver operational improvements at the processing
plant and ongoing exploration drilling success.
This progress, aided by the raising of new growth
capital and sale of non-core assets, has not only
strengthened the balance sheet, but put the
Company on a solid footing to embark on its multi-
year value creation project called The DRIVE to
100, which paves the way for the Company to be
producing at a rate of more than 100koz per annum
by 2025.
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ORA BANDA MINING LIMITED ANNUAL REPORT 2023 DIRECTORS' REPORT
FIGURE 2: The Davyhurst Gold Project location map
Kookynie
MENZIES
LEGEND
Mafic
Felsic
Ultramafic
Sediment
Granite
OBM Non Gold
& Silver Rights
MULLINE
RIVERINA
DAVYHURST
1.2 Mtpa Processing Plant
CALLION
SIBERIA
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PADDINGTON
BULLANT
LADY IDA
KUNDANA
KALGOORGLIE
FROGS LEG
COOLGARDIE
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 PERTHWESTERN AUSTRALIALeinsterMenziesKalgoorlie DIRECTORS' REPORT
The DRIVE to 100
The Company undertook a strategic review and redesign with the result being a commitment to the DRIVE to
100 Project, the key metrics being:
» Commencing a $30 million investment into the
development of the Riverina Underground mine
that creates a clear path to a production target
above 100koz per annum;
» Riverina Underground, with its higher Ore Reserve
grade of 4.3g/t, having the potential to not only
increase production by 40% year-on-year by FY25,
but also lower the cost of operations;
» Company AISC per ounce estimated to reduce
from ~A$3,000/oz in FY23 to ~A$1,750/oz in FY25
(Riverina Underground less than A$1,650/oz); and
» To continue investing in exploration drilling on the
highly prospective tenement package focusing
on finding additional higher-grade underground
mines to replace the lower grade open pit ore and
support further growth.
FY25
1(cid:31)(cid:31)
k(cid:31)(cid:30)
DRIVE
T(cid:31)
FIGURE 3: Forecast growth in ounces produced to FY25 and reduction in AISC
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100
80
60
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Year-on-year growth
of ~40%, producing
~100koz in FY25
AISC forecast
to reduce by
~25%
year-on-year
from
FY23 to FY25
)
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3,500
3,000
2,500
2,000
1,500
1,000
500
FY23(A)
FY24 (F)
FY 25(F)
Riverina UG
Davyhurst OP (WAH/CAL)
Siberia OP (MIS/SK)
~AISC/oz ($A) - Lower
~AISC/oz ($A) - Upper
Guidance Range
ORA BANDA MINING LIMITED ANNUAL REPORT 2023
DIRECTORS' REPORT
Mining Operations
Refer Table 1 below for a summary of mining activities during the year.
TABLE 1: Summary of mining activities during FY23
Davyhurst Gold Project Mining
Units
Sep-22
Dec-22
Mar-23
Jun-23
FY 2023
Quarter
OPEN PIT
Missouri
Material Moved
bcm
754,369
955,872
778,146
917,730
3,406,117
Ore Mined
Mined Grade
Ounces Mined
t
g/t
oz
168,370
233,197
137,905
229,334
768,806
1.7
1.6
2.5
2.3
2.0
9,211
12,262
11,196
16,738
49,408
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DIRECTORS' REPORT
Open Pit Mining
The Missouri mine is located approximately 37 km
south-west of the Davyhurst gold processing plant.
Mining at Missouri has continued to perform well
through the financial year as the strip ratio reduced
and production from both the WMC and Monarch
lodes culminating in 768,806 tonnes and 49,408oz
mined. The June quarter delivered a record for
the mine with a 49% increase in ounces mined as
compared to the March quarter and resulted in ore
FIGURE 4: Aerial view of Missouri open pit mine
stockpiles of 92.6kt at 2.2g/t at 30 June 2023, and well
positioned to commence FY24.
Figure 5 below presents the impact of the
operational improvements at Missouri throughout
the year, driven by improved geology, ore hygiene
and operational practices. Mined ounces increased
82% from 9.2koz in the September quarter to 16.7koz
in the June quarter. The mined grade also increased
significantly, by 42% from 1.7g/t in H1 to 2.4g/t in H2.
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FIGURE 5: FY23 Missouri open pit mined ounces and grade by quarter
82% increase in mined ounces across
the year with 16.7koz mined in June qtr
18,000
16,000
14,000
12,000
10,000
z
O
8,000
6,000
4,000
2,000
-
Sep Qtr
Dec Qtr
Mar Qtr
Jun Qtr
Mined Ounces
Grade
3.00
2.50
2.00
1.50
t
/
g
1.00
0.50
-
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 DIRECTORS' REPORT
Underground Mining
The Riverina Underground portal was established
in mid-May and Byrnecut Australia awarded the
underground services contract. Since commencing,
development has progressed in line with forecasts
with over 700 metres completed in the declines.
A number of capital infrastructure projects were
completed to support the growth of the Riverina
Underground operation. These include new change
rooms to cater for the increasing underground
workforce, wash bay facilities for the mining fleet
and existing offices and workshop facilities were
upgraded.
A 15.5km pipeline was constructed as part of the
integrated dewatering strategy for the existing open
pit and underground operations. Primary fans have
been purchased with installation now underway
along with a power station to be installed to facilitate
the mine expansion.
FIGURE 6: Development of the main Riverina decline
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Processing Operations
Mined ore is treated at the Davyhurst gold processing
plant where current infrastructure will support
1.2Mtpa throughput. Investment in numerous
improvement projects during the period has enabled
the plant to achieve increased throughput rates
along with reduced downtime. These improvement
projects include:
» Changing and optimising the screen sizes in
crushing and scalping screens;
» Reducing the gap on the tertiary crusher;
» Changes and improvements to maintenance
practices in the crushing circuit;
» Increased automation to improve plant
performance and consistency;
» 90% reduction in scats; and
» Operating performance parameters revised and
adjusted to support increased throughput.
Other performance improvement projects identified
and implemented during the year included
addressing the water storage reclaiming volume
from slurry build-up in the process water dam,
moving the hydraulic bearing system from under the
mills to a location outside of the spillage and liner
changes to get a 12-month production cycle at the
desired tonnes.
During the year, the plant crushed and milled in
excess of 1 million tonnes at a head grade of 1.5g/t
to produce 48,023oz of gold.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 DIRECTORS' REPORT
FIGURE 7: Davyhurst 1.2Mtpa processing plant
TABLE 2: Summary of processing plant production
Davyhurst Gold Project Processing
Quarter
Units
Sep-22
Dec-22
Mar-23
Jun-23
FY 2023
Milled Tonnes
Head Grade
Recovery
Gold Recovered
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Gold Sold
Bullion on Hand
t
g/t
%
oz
oz
oz
262,778
291,974
260,138
256,082
1,070,972
1.5
92
1.4
92
1.6
94
1.6
91
1.5
92
11,720
11,803
12,310
12,190
48,023
13,661
11,771
12,445
12,050
49,928
3
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ORA BANDA MINING LIMITED ANNUAL REPORT 2023 DIRECTORS' REPORT
Other Minerals
Whilst the priority remains in gold, the Company will
continue to advance other opportunities.
Lithium prospectivity
An initial review of lithium potential has been
completed with numerous lithium bearing
pegmatites identified through desktop review,
field assessment and drilling. A successful first
pass drilling campaign at Federal Flag intersected
11 metres of Spodumene at 1.28% Li201. Follow up
drilling is already underway.
Nickel prospectivity
No modern day, systematic nickel exploration has
been undertaken on the tenement holding. The
Company will continue to look to progress nickel JV
exploration strategies in the near future.
19
Exploration Focus
During the year the Company spent $14.4 million
on exploration and resource definition, primarily
targeting high grade underground orebodies at its
main resource hubs at Riverina and Siberia. The
work was focused on an Indicated Resource drill
program at Riverina, extending Riverina at depth
and to the south and testing known lodes in the
Missouri and Sand King open pits for extensions at
depth. Coupled with this, was a detailed in-house
review of the project’s lithium and nickel potential
for target generation and drilling.
Riverina
Riverina has a Mineral Resource Estimate of
303,000oz (Indicated and Inferred) and a maiden
Ore Reserve of 73,000oz @ 4.3g/t, with the system
open at depth on multiple lodes and further
Indicated Resource conversion only limited by
drilling. Extensional drilling on the high-grade
Main Lode and Murchison Lode has already
confirmed the mineralization extends to over 1.5km
strike and +500m deep and an additional parallel
system known as Reggies Lode identified to the East
and further drilling will be undertaken during FY24.
Siberia – Missouri and Sand King
Both Missouri and Sand King orebodies are open
at depth and have high potential to be the next
underground mine. The current drill program
planned for FY24 will test the down-dip continuity
of the Missouri open pit that is averaging up to
2,000 ounces per vertical metre and the
mineralization extent of ~750 metres of strike
and 250 metres below the open pit.
Previous drilling at Sand King has identified potential
for mineralization to continue at depth below the
existing open pit. The known strike of Sand King is
over 800m with several high-grade continuous sub-
vertical and parallel lodes.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 DIRECTORS' REPORT
Corporate
Fund Raising
On 21 December 2022, the Company announced
a $12.7 million funding package from its largest
shareholder, Hawke’s Point Holdings LP (‘Hawke’s
Point’). The funding comprised an $11.0 million
unconditional and unsecured loan repayable on
31 December 2023 and net smelter return (‘NSR’)
royalty in which certain wholly owned subsidiaries
are to pay a 0.9% NSR, capped at a total of
900,000oz of pure gold produced commencing
31 December 2023, over a 15 year period in return
for $1.7 million.
On 16 March 2023, the Company announced the sale
of non-core Lady Ida tenements for $10.0 million
whilst retaining mineral rights for all non-gold/silver
over the sale tenements.
On 21 March 2023, the Company announced
the sale of non-core exploration tenements for
$2.5 million and a variation to the terms of the
Hawke’s Point debt and royalty agreement entered
into in December 2022. A condition precedent of the
tenement sales is that the tenements are transferred
royalty free. To that end, the Company varied the
terms of the royalty agreement with Hawke’s Point
to an uncapped, 1.0% NSR and the unsecured loan
maturity date was extended to 30 September 2024
for an additional cash consideration of $1.7 million.
On 27 March 2023, the Company announced a two-
tranche placement for $30.0 million, comprising
tranche 1 for $20.8 million to institutional investors,
and tranche 2 to Hawke’s Point who subscribed for
$8.0 million and Directors for $1.2 million, following
receipt of shareholder approval. The Company issued
267,110,668 fully paid ordinary shares at an issue
price of $0.1125 in relation to the funds raised.
Financial Review
The Group recorded a net loss of $44.1 million for the
year ended 30 June 2023 (30 June 2022: net loss of
$87.9 million).
During the year ended 30 June 2023 the Group spent
$8.9 million (30 June 2022: $30.5 million) on mine
development; and acquired plant and equipment of
$7.9 million (30 June 2022: $8.7 million).
divestments), which was funded by existing cash
of $27.7 million at 1 July 2022 and cash inflows of
$29.0 million from share issues (net of costs), a
$11.0 million debt facility and royalty agreement for
$3.4 million with the Company’s major shareholder,
Hawke’s Point, and sale of non-core tenements for
initial proceeds of $3.5 million. The Group’s closing
cash balance at 30 June 2023 was $24.7 million.
During the year ended 30 June 2023 the Group
recorded net cash outflows of $38.2 million in
operating and investing activities (excluding
20
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 DIRECTORS' REPORT
Liquidity and Capital Resources
The table below summarises information about the Group’s earnings and movements in shareholder wealth
for the five years to 30 June 2023:
Performance Measures
Unit
FY 2023
FY 2022
FY 2021
FY 2020
FY 2019
Net assets/(liabilities)
$’000
31,085
34,835
102,017
48,031
35,368
Current assets
$’000
50,299
46,042
46,567
12,040
14,710
Cash
$’000
24,729
27,755
24,220
10,577
14,142
Contributed equity
$’000
493,150
463,299
443,696
368,194
350,519
Accumulated losses
$’000
474,033
431,213
344,550
322,266
(328,181)
Net (loss)/profit before tax
$’000
(44,125)
(87,936)
(22,284)
(6,675)
8,233
Share price at start of year
Share price at end of year
$
$
0.03
0.12
0.15
0.03
0.27
0.15
0.16
0.27
Earnings/(loss) per share
cents
(3.23)
(8.03)
(2.73)
(0.12)
0.11
0.16
0.11
Significant Changes in the State of Affairs
There were no significant changes in the state of affairs of Ora Banda during the year.
Events After Balance Date
Subsequent to the period ended 30 June 2023, the Company announced:
» The completion of the non-core Lady Ida tenements sale to Lamerton Pty Ltd and Geoda Pty Ltd, upon the
receipt of $9 million (excluding GST) on 19 September 2023 and subsequent transfer of title to tenements.
21
Apart from the above, no other matters have arisen since the end of the financial year that impact or are likely
to impact the results of the Group in subsequent financial periods.
Dividends
No dividend has been declared nor paid by the Company up to the date of this report.
Likely Developments
The directors are not aware of any likely developments of which could be expected to significantly affect the
results of the Group’s operations in future financial years not otherwise disclosed in the Principal Activities;
Review of Operations or the Events After Balance Date sections of the Directors’ Report.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 DIRECTORS' REPORT
Corporate Governance
In recognising the need for appropriate standards of corporate behaviour and accountability, the directors
have adhered to the principles of good corporate governance. The Company’s corporate governance policies
are located on the Company’s website.
Key Risks
The following summarises the key risks the Group
faces in achieving its objectives:
» Price and demand for gold – it is difficult
to predict with accuracy future demand and
gold price movements and such movements
may adversely impact on the Group’s profit
margins, future development and planned
future production;
» Reserves and resources – the mineral resources
and ore reserves for the Group’s assets are
estimates only and no assurance can be given that
they will be realised;
» Operations – the Group’s operations are subject
to operating risks that could result in decreased
production, increased costs and/or reduced
revenues. Operational difficulties may impact
the amount of gold produced, delay deliveries
or increase the cost of mining for varying lengths
of time;
» Development of Riverina Underground – as
with operations above, development of the new
underground mine is subject to operating risk
that could result in delays in development metres
and increases to the cost of development;
» Environmental, Social
and Governance (‘ESG’) – the Group has to
demonstrate effective management of all material
sustainability matters. A failure to implement
effective ESG measures and provide satisfactory
disclosures increases risk of damaged reputation,
reduced investments, delayed approvals and
ability to retain and recruit employees;
» Government changes – the gold mining industry
is subject to a number of Government taxes,
royalties and charges. Changes to the rates of
taxes, royalties and charges can impact on the
profitability of the Group;
» Exploration and development risk – the ability
to sustain or increase the level of production
in the longer term is in part dependent on the
success of the Group’s exploration activities;
development projects and the expansion of
existing mining operations. The exploration for
and development of mineral deposits involves
significant risks, further major expenses may
be required to locate and establish mineral
reserves; to establish rights to mine and receive
all necessary operating permits;
» Environmental – the Group has environmental
liabilities associated with the tenements which
arise as a consequence of mining operations
including waste management; tailings
management; chemical management; water
management and energy efficiency. The Group
monitors its ongoing environmental obligations
and risks and implements corrective actions
as appropriate through compliance with its
environmental management system; and
» People risks – the Group seeks to ensure that
it provides a safe workplace to minimise risk of
harm to its employees and contractors. It achieves
this through an appropriate safety culture; safety
management systems; training and emergency
preparedness.
22
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 DIRECTORS' REPORT
Options and Performance Rights
The following table summarises unissued ordinary shares of the Company under option and performance
right as at 28 September 2023:
Date granted
Number of unissued
ordinary shares
Exercise price
Expiry date
Various1
135,255,802
Nil
Various
The following ordinary shares of the Company were issued during or since the end of the financial year as a
result of the exercise of an option or performance right:
Date issued
Number of ordinary shares issued
Amount paid per share
25 August 2023
8 September 2023
2,640,000
4,468,572
Nil
Nil
Meetings of Directors
The number of meetings of the board of directors held during the year and the number of meetings attended by
each director was as follows:
Board of Directors
Remuneration & Nomination
Committee
Audit & Risk Management
Committee
Eligible to
attend
Attended
Eligible to
attend
Attended
Eligible to
attend
Attended
Peter Mansell
Luke Creagh2
Alan Rule3
David Quinlivan4
Keith Jones5
Mark Wheatley6
13
10
10
3
3
3
12
10
10
3
3
3
1
-
-
-
1
1
1
-
-
-
1
1
1
-
-
-
1
1
1
-
-
-
1
1
As the Board only consisted of 3 members for the period from September 2022, a decision was made not to
hold separate Remuneration & Nomination Committee and Audit & Risk Committee meetings but rather to
incorporate these within Board meetings.
23
1. Performance rights issued under the Group’s employee share scheme to various key management personnel are subject to the
satisfaction of the vesting conditions outlined in the remuneration report.
2. Appointed 4 July 2022
3. Appointed 30 September 2022
4. Resigned 28 September 2022
5. Resigned 30 September 2022
6. Resigned 28 September 2022
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 REMUNERATION REPORT
REMUNERATION REPORT (AUDITED)
This remuneration report outlines the remuneration
arrangements in place for key management
personnel (‘KMP’) of the Group which includes the
executive director, non-executive directors and
senior executives.
Contents:
1.
2.
3.
4.
5.
Basis of Preparation
Key Management Personnel
Remuneration Governance
FY23 KMP Remuneration
Link between Company Performance,
Shareholder Wealth Generation and
Remuneration
6.
Key Management Personnel Holdings
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
I
O
N
24
I
I
O
R
A
B
A
N
D
A
M
N
N
G
L
I
M
I
T
E
D
A
N
N
U
A
L
R
E
P
O
R
T
2
0
2
3
REMUNERATION REPORT
1. Basis of Preparation
This remuneration report has been prepared and audited in accordance with the requirements of the
Corporations Act 2001 and applicable accounting standards.
2. Key Management Personnel
KMP comprise those persons having authority and responsibility for planning, directing and controlling the
major activities of the Group, directly or indirectly, including any director (whether executive or otherwise).
Unless otherwise indicated, all KMP held their position throughout the financial year and up to the date of
this report.
The report details the remuneration arrangements for the Group’s KMP including non-executive directors,
executive directors and senior executives:
Name
Position
Term as KMP
NON-EXECUTIVE DIRECTORS
Peter Mansell
Non-executive Chairman
Full year
Alan Rule
Non-executive Director
30 September 2022 to 30 June 2023
Keith Jones
Non-executive Director
1 July 2022 to 30 September 2022
Mark Wheatley
Non-executive Director
1 July 2022 to 28 September 2022
David Quinlivan
Non-executive Director
1 July 2022 to 28 September 2022
EXECUTIVE DIRECTOR
Luke Creagh
Managing Director & CEO
4 July 2022 to 30 June 2023
SENIOR EXECUTIVES
Andrew Czerw
Chief Development Officer
Full year
25
Gareth Jones
Chief Financial Officer & Company Secretary
6 February 2023 to 30 June 2023
Tony Brazier
Chief Financial Officer & Company Secretary
1 July 2022 to 15 March 2023
Brendan Fyfe
General Counsel
1 July 2022 to 4 November 2022
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 REMUNERATION REPORT
3. Remuneration Governance
Board and Remuneration & Nomination
Committee responsibility
The Remuneration & Nomination Committee is a
subcommittee of the board. It assists the board to
ensure that the Company develops and implements
remuneration policies and practices that are
appropriate for a company of the nature, size and
standing of Ora Banda.
Remuneration principles
The Company’s remuneration strategy and structure
is reviewed by the board and the Remuneration &
Nomination Committee for business appropriateness
and market suitability on an ongoing basis. KMP are
remunerated and rewarded in accordance with the
Company’s remuneration policies (outlined in further
detail below).
The Remuneration & Nomination Committee is
responsible for making recommendations to the
board on:
» Remuneration arrangements (including base pay,
performance targets, bonuses, equity awards,
superannuation, retirement rights, termination
payments) for the executive director and senior
executives;
» Remuneration of non-executive directors; and
» Establishment of employee incentive and equity-
based plans and the number and terms of any
incentives proposed to be issued to executives
pursuant to those plans, including any vesting
criteria.
26
4. FY23 KMP Remuneration
In determining KMP remuneration, the board aims to
ensure that remuneration practices are:
» Competitive and reasonable, enabling the
Engagement of remuneration consultants
During the year, the Company did not engage
remuneration consultants to provide a
‘remuneration recommendation’ (as defined in
the Corporations Act 2001), however independent
advice was received when the current remuneration
framework was established. This advice was in
respect of remuneration reporting and general
advice in respect of market practice for long
term incentive plans. In addition, the Committee
benchmark KMP remuneration annually using
external independent industry reports and data to
ensure that remuneration levels are competitive and
meet the objectives of the Company.
2022 AGM voting outcome and comments
The Company received more than 99% votes in favour
of the adoption of its remuneration report for the
2022 financial year.
The Company’s reward structure for executives
provides for a combination of fixed and variable pay
with the following components:
Company to attract and retain high calibre talent;
» Fixed remuneration in the form of base salary,
» Aligned to the Company’s strategic and business
objectives and the creation of shareholder value;
» Transparent and easily understood; and
» Acceptable to shareholders.
The Company’s approach to remuneration ensures
that remuneration is competitive, performance
focussed, clearly links appropriate reward with
desired business performance, and is simple to
administer and understand by executives and
shareholders. In line with the remuneration policy,
remuneration levels are reviewed annually to ensure
alignment to the market and the Company’s stated
objectives.
superannuation and benefits;
» Variable remuneration in the form of short-term
incentives (‘STI’) and long-term incentives (‘LTI’).
In accordance with the Company’s objective to
ensure that executive remuneration is aligned to
Company performance, a portion of executives’
remuneration is placed ‘at risk’. The relative
proportion of target FY23 total remuneration
packages split between the fixed and variable
remuneration is shown adjacent:
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 REMUNERATION REPORT
Executive
Fixed Remuneration
Target STI
Target LTI
(% of total remuneration)
(% of total remuneration)
(% of total remuneration)
Managing Director
36-40%
Senior Executives
40%
20-27%
20%
36-40%
40%
a. Fixed remuneration
b. Short-term incentive (‘STI’) arrangements
Fixed remuneration is set at a level that is aligned
to market benchmarks and reflective of executives’
skills, experience, responsibilities and performance.
When positioning base pay, the Company presently
aims to position aggregate fixed remuneration at
approximately the 50th percentile of the industry
benchmark AON Report (an independent, industry
recognised report on the gold and mining industry).
This is to ensure that the Company’s remuneration
arrangements remain competitive against peer
companies to assist with the retention and attraction
of key talent.
The purpose of the STI plan is to link the achievement
of key Company targets with the remuneration
received by those executives charged with meeting
those targets. The STI plan is structured so that
executives have the opportunity to earn a cash bonus
(or equity in the case of the managing director)
if certain key performance indicators (‘KPIs’) are
achieved.
Each year the Committee, in conjunction with the
board, sets KPI targets for executives. Ordinarily, the
KPIs would include measures relating to the Group
and the individual, and include environmental,
health & safety, financial, production and exploration
performance measures.
The maximum target STI opportunity for executives is
as follows:
Executive
Maximum STI opportunity – Cash
Maximum STI opportunity – Equity
Managing Director
50% of fixed remuneration
75% of fixed remuneration
Senior Executives
50% of fixed remuneration
N/A
27
FY23 Performance against STI measures
A summary of the KPI targets set for FY23 and their respective weightings is as follows:
KPI
Weighting Measure
Corporate, financial & operational goals
50%
Performance against annual operational and
financial goals
Sustainability
Individual performance
25%
25%
Safety, environment and exploration
Contribution to progressing 3-year strategic plan
and championing company values
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 REMUNERATION REPORT
In assessing KMP performance against the KPI
targets, the Committee considered the following
against objectives set at the start of the year:
» Operational and financial objectives: and
» Progress towards 3-year strategic goals and
demonstrating the company values.
» Achievement of OH&S objectives;
» Achievement of environmental objectives;
» Delivery of positive exploration results;
Based on the above assessment, STI payments for
FY23 to executives were as follows:
Executive
Maximum STI
opportunity
% STI
awarded
STI awarded
– Cash
STI awarded
– Rights
Value of
rights
granted ($)
STIP rights
class
Luke Creagh
100%
40%
-
3,428,572
120,000
Gareth Jones
Andrew Czerw
Tony Brazier
Brendan Fyfe
100%
100%
100%
100%
42.5%
31,5797
45%
89,161
-
-
-
-
-
-
-
-
-
-
-
-
FY2023
incentive
rights
-
-
-
-
The assessment of performance against KPIs resulted in STI payments being made for the year. There were
3,428,572 rights issued during the year (which was 40% of the potential STI award) and therefore 60% of the
rights were forfeited.
Retention rights
During the year, the Company issued 10,250,000
retention incentive rights to KMP’s. The only
condition attached to these incentive rights is
service period and hence the fair value is determined
28
based on share price on grant date. These incentive
rights had a 12-month vesting period ending 30 June
2023 and an expiry date of 30 June 2028.
Grant Date
Number issued
Vesting date
Fair value on grant date
5 August 2023
10,250,000
30 June 2023
$0.068
7. Actual award pro-rata based on tenure inclusive of superannuation
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 REMUNERATION REPORT
c. Long-term incentive (‘LTI’) arrangements
Participation in the LTI plan involves a grant of
incentives (being performance rights) under the
Company’s LTI plan. The grant of incentives, including
the terms attached to the grant, will be determined
annually by the Committee, in conjunction with the
board. Typically, the vesting period for incentives
granted under the LTI plan is three years.
During the 30 June 2023 financial year, the following
were issued to KMP under the Company’s employee
incentive plan:
Managing Director rights &
in-substance share options
Underlying security share
price at grant date
Sign-on Rights
Loan Shares
Tranche 1
Tranche 2
RTSR8 Rights
ATSR9 Rights
$0.08
$0.08
$0.08
$0.08
$0.08
Exercise price
Grant date
Vesting date
Expiry date
Risk-free rate
Volatility
Dividend yield
Number of performance
rights granted
Valuation per performance
right
Fair value per performance
right class
$0.035
Nil
Nil
Nil
Nil
23-Nov-22
23-Nov-22
23-Nov-22
23-Nov-22
23-Nov-22
30-Jun-25
31-Dec-23
30-Jun-25
30-Jun-25
30-Jun-25
30-Jun-25
23-Nov-27
23-Nov-27
23-Nov-27
23-Nov-27
3.27%
3.17%
3.27%
3.27%
3.27%
80%
Nil
80%
Nil
80%
Nil
80%
Nil
80%
Nil
50,000,000
25,000,000
25,000,000
8,000,000
3,428,572
$0.056
$0.063
$0.061
$0.079
$0.058
$2,800,000
$1,575,000
$1,525,000
$632,000
$198,857
Other KMP
Performance rights
Underlying security share price at grant date
Exercise price
Grant date
Vesting date
Expiry date
Risk-free rate
Volatility
Dividend yield
Number of performance rights granted
Valuation per performance right
Fair value per performance right class
8. RTSR = relative total shareholder return
9. ATSR = absolute total shareholder return
$0.14
Nil
20-Mar-23
30-Jun-25
30-Jun-30
2.83%
85%
Nil
11,271,000
$0.138
$1,555,398
29
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 REMUNERATION REPORT
The measure of volatility used in the option pricing
model is the annualised standard deviation of the
continuously compounded rates of return on the
historical TSR of Ora Banda and each constituent of
the peer group for the length of time equal to the
measurement period. Volatilities of the Company and
peer group constituents was calculated over a one,
two and three-year period.
Share-based payments
The fair value of LTI performance rights at grant date
is independently determined using a Monte Carlo
simulation model (market based vesting conditions)
and a Black Scholes Model (non-market vesting
conditions) that takes into account the term of the
performance rights, the impact of dilution (where
material), the share price at grant date and expected
volatility of the underlying share, the expected
dividend yield, the risk-free rate for the term of
the performance right and the correlations and
volatilities of the peer group companies.
Loan Shares
50,000,000 shares funded by a $1.75 million limited
recourse; interest free loan repayable by 30 June
2025. Where, at 30 June 2025, the market value of
each Loan Share is less than $0.035, or employment
has ceased, the 50,000,000 Loan Shares will be
relinquished to the Company and the loan forgiven.
The Loan Shares are subject to a holding lock until
the later of 30 June 2025 and full repayment of the
loan.
The Loan Shares have been treated as options to
obtain a share-based payments valuation. The expiry
date has been used as the estimated exercise date,
given an effective life of 2.6 years which has been
used to value the Loan Shares.
30
Sign-on Rights
Tranche 1: will vest subject to the employee
remaining in continuous employment with the
Company and the volume-weighted average price
(‘VWAP’) calculated over the 20 trading days prior to
the performance measurement date of 31 December
2023 (20-day VWAP) of the Company’s shares being
equal to or exceeding $0.0525.
Tranche 2: will vest subject to the employee
remaining in continuous employment with the
Company and the 20-day VWAP being equal to
or exceeding $0.070 prior to the performance
measurement date of 30 June 2025.
The fair value of the of the Sign-on Rights was
estimated using a Monte-Carlo simulation model,
which simulates the Company’s share price at the
performance measurement date.
RTSR Rights
The number of relative total shareholder return
(‘RTSR’) Rights that vest is based on the RTSR
ranking of the Company over the performance
period, relative to the total shareholder return
(‘TSR’) performance of a nominated peer group of
companies. The fair value of the RTSR performance
rights was estimated as at the date of grant using
a Monte-Carlo simulation model taking into
account the terms and conditions upon which
the performance rights were granted. These
performance rights will vest according to the
following schedule:
Company’s performance relative to
peer group
Percentage of performance rights
eligible to vest
ASX comparator group
Below 50th percentile
50th percentile
Nil
50%
50th to 75th percentile
50% to 100% on a pro rata
Above 75th percentile
100%
ALK;BCN;BGL;CAI;CMM;GCY;
GMD;GOR;PNR;RED;RMS;
RRL;SBM;SLR;WGX
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 REMUNERATION REPORT
ATSR Rights
The absolute total shareholder return (‘ATSR’)
Rights vest based on the TSR of the Company over
the performance period, whereby the TSR of the
Company is measured in terms of compound annual
growth (‘CAGR’) and compared against a share price
of $0.035.
The fair value of the RTSR performance rights was
estimated as at the date of grant using a Monte-Carlo
simulation model taking into account the terms and
conditions upon which the performance rights were
granted. The ATSR Rights will vest according to the
following schedule:
Company’s TSR performance
Percentage of performance rights eligible to vest
Company TSR less than 35% CAGR
Company TSR equal to or greater than 35% CAGR
Nil
100%
d. Contracts with Key Management Personnel
Luke Creagh – Chief Executive Officer (commenced 4 July 2022)
Mr Creagh is employed under an executive
employment agreement which commenced on 4 July
2022. Remuneration under the contract is as follows:
» Fixed remuneration of $400,000 per annum
(inclusive of superannuation);
» Sign-on share purchase scheme: as detailed
above;
» Sign-on performance rights scheme: as detailed
above;
» Short term incentive scheme: based on
performance hurdles to be set by the Ora Banda
Board and where Mr Creagh is an employee at
30 June 2023, as either $200,000 in cash or
$300,000 in shares issued at $0.035 per share at
his election;
accordance with the Company’s employee
incentive plan with the number of performance
rights in FY23 being $400,000 divided by $0.035 per
share and 100% of TFR in future years at prices to
be determined by the Ora Banda board.
The termination provisions of the agreement are:
» For no cause or incapacity: by the Company, on
3 months’ notice in the first 36 months or on 6
months’ notice thereafter by both the Company
and Mr Creagh;
» Redundancy: the greater of a lump sum amount
equivalent to 30% of fixed remuneration package
or any redundancy payment as calculated in
accordance with applicable legislation;
» Serious misconduct: no notice period would be
» Long term incentive scheme: long term
performance right incentives issued in
provided.
Gareth Jones – Chief Financial Officer & Company Secretary (commenced 6 February 2023)
Mr Jones is employed under an executive
employment agreement which commenced on
6 February 2023. Mr Jones received the following
remuneration:
» Fixed remuneration of $360,000 per annum
(inclusive of superannuation);
» Non-cash incentive: Participation in the
Company’s incentive scheme, at the full discretion
of the board, as amended from time to time.
The termination provisions of the agreement are:
» For no cause or incapacity: three months’ notice
period (or any greater period required by the Fair
Work Act 2009);
» Redundancy: 30% of the fixed remuneration (or
greater as required by the Fair Work Act 2009);
» Serious misconduct or fraud: no notice period
would be provided.
31
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 REMUNERATION REPORT
Andrew Czerw – Chief Development Officer
Mr Czerw is employed under an employment
agreement which commenced on 10 April 2014.
Mr Czerw received the following remuneration:
» Fixed remuneration of $392,700 per annum,
comprising a base salary of $357,000 and 10.5%
superannuation;
» Non-cash incentive: Participation in the
Company’s incentive scheme, at the full discretion
of the board, as amended from time to time.
e. Non-executive Directors’ Remuneration
The Company’s policy is to remunerate non-
executive directors (‘NEDs’) at market rates (for
comparable companies) for their time commitment
and responsibilities. To align their interests with
those of shareholders, NEDs are encouraged to hold
shares in the Company. The amount of aggregate
remuneration sought to be approved by shareholders
and the fee structure is reviewed annually against
fees paid to NEDs of comparable companies.
Payments reflect the demands that are made on and
the responsibilities of NEDs. NED fees and payments
are reviewed annually by the board. The Company’s
constitution and ASX Listing Rules specify that the
NED remuneration fee pool shall be determined from
time to time at a general meeting of shareholders.
The termination provisions of the agreement are:
» For no cause or incapacity: three months’ notice
period (or any greater period required by the Fair
Work Act 2009);
» Redundancy: 30% of the fixed remuneration (or
greater as required by the Fair Work Act 2009);
» Serious misconduct or fraud: no notice period
would be provided.
In accordance with current corporate governance
practices, the remuneration structure for NEDs
and senior executives is separate and distinct.
Shareholders approve the maximum aggregate
remuneration for NEDs. The remuneration of NEDs
(inclusive of all committee fees and exclusive of
superannuation) for the year ended 30 June 2022
were set at $165,000 for the Chair and $110,000 for
other NEDs. On 27 July 2022 the Company announced
NED remuneration had reduced. The reduced
amounts are $120,000 for the Chair and $80,000 for
other NEDs, exclusive of superannuation.
32
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 REMUNERATION REPORT
33
I
I
O
R
A
B
A
N
D
A
M
N
N
G
L
I
M
I
T
E
D
A
N
N
U
A
L
R
E
P
O
R
T
2
0
2
3
REMUNERATION REPORT
f. Key Management Personnel Remuneration Table
The following table discloses details of the nature and amount of each element of the emoluments of each
director of Ora Banda and each of the senior executives determined a KMP for the years ended 30 June 2023
and 30 June 2022.
KMP
Year
$
$
$
$
$
$
%
Short Term
Post employment
Other long term
Share-based Payments
Performance related
Remuneration
Salary & Fees
STI (Cash)
STI (Equity)19
Superannuation
Leave Accrued
Options & Rights19
NON-EXECUTIVE DIRECTORS
Peter Mansell
Alan Rule10
Keith Jones11
Mark Wheatley12
David Quinlivan12
EXECUTIVE DIRECTOR
Luke Creagh13
Peter Nicholson14
SENIOR EXECUTIVES
Andrew Czerw
Gareth Jones15
Tony Brazier16
Brendan Fyfe17
Derek Byrne18
Total
34
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
117,692
165,000
58,765
-
20,000
110,000
20,000
110,000
24,472
121,000
362,066
-
-
968,509
350,135
357,000
132,596
-
343,224
331,500
276,204
306,000
-
386,010
1,705,154
2,855,019
-
-
-
-
-
-
-
-
-
-
-
-
-
-
89,161
-
31,579
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
342,857
34,990
21,421
2,747,711
3,509,045
-
-
-
-
-
-
-
-
-
-
-
-
-
120,740
-
342,857
-
Total
$
147,734
199,184
64,935
33,889
132,789
33,889
132,789
17,684
17,684
11,789
11,789
11,789
11,789
(62,569)
(38,097)
354,822
475,822
112,594
1,104,671
1,331,959
1,788,421
195,010
579,495
182,743
(147,395)
219,257
191,169
565,992
72,210
363,552
198,723
536,652
(34,209)
375,369
3,983,178
6,305,369
1,059,371
4,102,763
-
-
-
-
-
-
-
-
-
-
-
-
12,358
16,500
6,170
2,100
11,000
2,100
11,000
23,568
31,553
35,700
10,784
23,428
33,150
15,138
30,600
23,568
138,621
185,086
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(14,387)
(8,215)
7,784
10,173
1,329
14,818
3,287
12%
9%
35%
9%
35%
9%
164%
75%
88%
10%
79%
34%
17%
(67%)
34%
20%
37%
-
-
-
-
-
-
-
71%
26%
10. Alan Rule was appointed on 30 September 2022
11. Keith Jones resigned on 30 September 2022
12. Mark Wheatley and David Quinlivan resigned on
28 September 2022
13. Luke Creagh was appointed 4 July 2022
14. Peter Nicholson ceased employment with the Company
on 6 April 2022. Prior year includes a $526,432 termination
benefit
15. Gareth Jones commenced as CFO on 6 February 2023
16. Tony Brazier resigned on 15 March 2023. Current year salary
and fees includes $82,887 in termination benefits
17. Brendan Fyfe resigned on 4 November 2022. Current year
salary and fees includes $23,185 in termination benefits
18. Derek Byrne ceased employment with the Company on
19 April 2022. Prior year includes a $59,572 termination
benefit
ORA BANDA MINING LIMITED ANNUAL REPORT 2023
REMUNERATION REPORT
The following table discloses details of the nature and amount of each element of the emoluments of each
director of Ora Banda and each of the senior executives determined a KMP for the years ended 30 June 2023
and 30 June 2022.
KMP
Year
$
$
$
$
$
$
Short Term
Post employment
Other long term
Share-based Payments
Salary & Fees
STI (Cash)
STI (Equity)19
Superannuation
Leave Accrued
Options & Rights19
Total
$
Performance related
Remuneration
%
NON-EXECUTIVE DIRECTORS
Peter Mansell
Alan Rule10
Keith Jones11
Mark Wheatley12
David Quinlivan12
EXECUTIVE DIRECTOR
Luke Creagh13
Peter Nicholson14
SENIOR EXECUTIVES
Andrew Czerw
Gareth Jones15
Tony Brazier16
Brendan Fyfe17
Derek Byrne18
Total
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
117,692
165,000
58,765
20,000
110,000
20,000
110,000
24,472
121,000
362,066
968,509
350,135
357,000
132,596
343,224
331,500
276,204
306,000
-
-
-
-
-
386,010
1,705,154
2,855,019
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
89,161
31,579
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
120,740
342,857
12,358
16,500
6,170
-
2,100
11,000
2,100
11,000
-
-
-
-
-
-
-
-
-
-
-
-
17,684
17,684
-
-
11,789
11,789
11,789
11,789
147,734
199,184
64,935
-
33,889
132,789
33,889
132,789
(62,569)
(38,097)
354,822
475,822
342,857
34,990
21,421
2,747,711
3,509,045
-
-
23,568
31,553
35,700
10,784
-
23,428
33,150
15,138
30,600
-
23,568
138,621
185,086
-
-
-
(14,387)
(8,215)
7,784
-
-
10,173
-
1,329
-
-
14,818
3,287
-
-
-
-
112,594
1,104,671
1,331,959
1,788,421
195,010
579,495
-
-
182,743
-
(147,395)
219,257
191,169
565,992
72,210
363,552
198,723
536,652
-
-
(34,209)
375,369
3,983,178
6,305,369
1,059,371
4,102,763
19. Fair value of performance rights is calculated at the date of
grant using the Black-Scholes and Monte-Carlo simulation
option pricing models and allocated to each reporting
period evenly over the period from grant date to vesting
date. The value disclosed is the portion of the fair value of
the performance rights recognised as an expense in each
reporting period. Share-based awards are recognised as an
expense straight-line over the expected time to vesting
12%
9%
-
-
35%
9%
35%
9%
164%
75%
88%
-
-
10%
79%
34%
17%
-
(67%)
34%
20%
37%
-
-
71%
26%
35
ORA BANDA MINING LIMITED ANNUAL REPORT 2023
REMUNERATION REPORT
5.
Link between Company Performance, Shareholder Wealth Generation
and Remuneration
The Committee applies a series of criteria to assess the performance of the Company. Criteria used in this
assessment was execution of development projects and exploration success as well as the following metrics
in respect of the current and previous financial years.
Criteria
2023
Closing cash balances at 30 June ($m)
24.73
Closing share price at 30 June ($)
0.12
2022
27.75
0.03
2021
24.22
0.15
2020
10.58
0.27
2019
14.14
0.16
The Company’s remuneration practices aim to reward based on the achievement of Company and KMP
performance objectives. The Company’s overall objective has been to continue to define mineral resources
and ore reserves and attain steady state production rates, within budgeted cost parameters.
36
I
I
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R
A
B
A
N
D
A
M
N
N
G
L
I
M
I
T
E
D
A
N
N
U
A
L
R
E
P
O
R
T
2
0
2
3
REMUNERATION REPORT
6. Key Management Personnel Holdings
Option and Performance Right Holdings of Key Management Personnel
30 June
2023
Balance at
1 July 2022
Granted
as
compen-
sation21
NON-EXECUTIVE DIRECTORS
Rights/
options
exercised22
Rights/
options
forfeited
Other20
Balance
at 30 June
2023
Vested
during the
year
Vested and
exercisable
at 30 June
2023
Peter
Mansell
Alan
Rule
Keith
Jones
Mark
Wheatley
David
Quinlivan
592,592
-
395,061
395,061
2,594,055
-
-
-
-
-
EXECUTIVE DIRECTOR
Luke
Creagh
SENIOR EXECUTIVES
- 70,000,001
(592,592)
-
-
-
-
-
-
-
-
-
-
-
-
-
(395,061)
(395,061)
(2,594,055)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 70,000,001
3,428,571
3,428,571
Andrew
Czerw
Gareth
Jones
Tony
Brazier
Brendan
Fyfe
3,975,656 21,271,000
(577,778)
(552,218)
- 24,116,660
535,552
814,707
-
3,751,302
-
-
2,901,209
250,000
-
-
-
-
-
-
-
(3,751,302)
(3,151,209)
-
-
-
-
-
-
-
-
-
37
Total
14,604,936 91,521,001 (1,170,370)
(552,218) (10,286,688) 94,116,661 3,964,123
4,243,278
20. Other represents options and rights held at resignation date by individuals no longer considered to be KMP
21. Performance rights granted as compensation represent issues under the terms outlined in section C above
22. All options and performance rights were exercised at nil price and each KMP received a quantity of ordinary shares equivalent to the
number of options and performance rights exercised
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 REMUNERATION REPORT
Value of Options and Performance Rights Exercised and Forfeited
The following table summarises the fair value of options and performance rights when exercised or forfeited,
calculated as the number of options/rights multiplied by the share price on the dates of which those options/
rights were exercised or forfeited:
30 June 2023
Exercised
Value on date of
exercise ($)
Forfeited
Value on date of
forfeiture ($)
NON-EXECUTIVE DIRECTORS
Peter Mansell
592,592
74,074
Alan Rule
Keith Jones
Mark Wheatley
David Quinlivan
EXECUTIVE DIRECTOR
Luke Creagh
SENIOR EXECUTIVES
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Andrew Czerw
577,778
72,222
552,218
69,027
Gareth Jones
Tony Brazier
Brendan Fyfe
-
-
-
-
-
-
-
-
-
-
-
-
38
Total
1,170,370
146,296
552,218
69,027
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 REMUNERATION REPORT
Ordinary Shareholdings of Key Management Personnel
30 June 2023
Balance at
1 July 2022
Purchases
Other23
On the
exercise of
options/rights
Balance at
30 June 2023
NON-EXECUTIVE DIRECTORS
Peter Mansell
7,725,071
1,932,339
Alan Rule
Keith Jones23
Mark Wheatley23
-
444,000
2,762,916
2,168,752
David Quinlivan23
5,801,635
EXECUTIVE DIRECTOR
-
-
-
-
-
(2,762,916)
(2,168,752)
(5,801,635)
Luke Creagh24
-
8,888,888
50,000,000
592,592
10,250,002
-
-
-
-
-
444,000
-
-
-
58,888,888
SENIOR EXECUTIVES
Andrew Czerw
2,143,586
Gareth Jones
Tony Brazier23
Brendan Fyfe23
-
1,909,455
959,007
-
-
-
-
-
-
(1,909,455)
(959,007)
577,778
2,721,364
-
-
-
-
-
-
Total
23,470,422
11,265,227
36,398,235
1,170,370
72,304,254
No alterations to the terms and conditions of performance rights granted as remuneration have been made
since their grant dates.
39
Loans to Key Management Personnel
Other transactions with Directors
There were no loans to KMP during the financial
year (30 June 2022: Nil). Refer to section c above
for details of loan shares.
Other than those described in this remuneration
report, no other transactions between the Group
and directors or their related entities have occurred.
23. Other represents shares held at resignation date by individuals no longer considered to be KMP
24. Refer to section c above for details of Luke Creagh’s loan shares
End of REMUNERATION REPORT (AUDITED)
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 DIRECTORS' REPORT
Environmental Regulations
The Group is subject to significant environmental
regulation in respect to its mineral exploration
activities. These obligations are regulated under
relevant government authorities within Australia.
The Group is a party to exploration and mine
development licences. Generally, these licences
specify the environmental regulations applicable to
exploration and mining operations in the respective
jurisdictions. The Group aims to ensure that it
complies with the identified regulatory requirements
in each jurisdiction in which it operates.
Compliance with environmental obligations is
monitored by the directors. No environmental
breaches have been notified to the Group by
any government agency during the year ended
30 June 2023.
Non Audit Services
The Group may decide to employ the auditor on
assignments additional to their statutory audit
duties where the auditor’s expertise and experience
with the Group are important. The directors consider
the general standard of independence for auditors
imposed by the Corporations Act 2001 before any
engagements are agreed.
No nonaudit services were provided by KPMG, the
Group’s auditor, during the year (30 June 2022: $Nil).
Further details of remuneration of the auditor are set
out at Note 23.
40
Auditor Independence
Indemnification and Insurance of
Directors and Officers
The Company has entered into indemnity
agreements with each of the directors and officers
of the Company. Under the agreements, the Company
will indemnify those officers against certain claims
or for any expenses or costs which may arise as
a result of work performed in their respective
capacities as officers of the Company or any
related entities.
The Company has taken out an insurance policy
insuring directors and officers of the Company
against any liability arising from a claim brought by
a third party against the Company or its directors
or officers, and against liabilities for costs and
expenses incurred by them in defending any legal
proceedings arising out of their conduct while
acting in their capacity as a director or officer of
the Company, other than conduct involving a wilful
breach of duty in relation to the Company.
During the year, the Company paid premiums in
respect of the above insurance policy. The contract
prohibits the disclosure of the nature of the
liabilities and/or the amount of the premium.
Rounding of Amounts
In accordance with ASIC Corporations (Rounding in
Financial/Directors’ Reports) Instrument 2016/191,
the amounts in the Directors’ Report and in the
financial report have been rounded to the nearest
one thousand dollars, or in certain cases, to the
nearest dollar (where indicated).
A copy of the auditor’s independence declaration as
required under section 307C of the Corporations Act
2001 is included immediately following the Directors’
Report and forms part of this Directors’ Report.
This report is made in accordance with a resolution
of directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
Indemnification of Auditor
On behalf of the directors
The Company has not provided any insurance or
indemnity to the auditor of the Company.
Peter Mansell
Chairman
Perth, Western Australia
28 September 2023
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 DIRECTORS' REPORT
41
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 AUDITOR’S INDEPENDENCE DECLARATION
A
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D
I
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O
R
S
’
D
E
C
L
A
R
A
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I
O
N
I
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D
E
P
E
N
D
E
N
C
E
42
I
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O
R
A
B
A
N
D
A
M
N
N
G
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I
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I
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D
A
N
N
U
A
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R
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P
O
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2
0
2
3
AUDITOR’S INDEPENDENCE DECLARATION
43
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of Ora Banda Mining Limited I declare that, to the best of my knowledge and belief, in relation to the audit of Ora Banda Mining Limited for the financial year ended 30 June 2023 there have been: i. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and ii. no contraventions of any applicable code of professional conduct in relation to the audit. KPMG R Gambitta Partner Perth 28 September 2023 FINANCIAL REPORT
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
44
44
I
I
O
R
A
B
A
N
D
A
M
N
N
G
L
I
M
I
T
E
D
A
N
N
U
A
L
R
E
P
O
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2
0
2
3
ORA BANDA MINING LIMITED ANNUAL REPORT 2023
FINANCIAL REPORT
Consolidated Statement of Profit or Loss
and other comprehensive income for the year ended 30 June 2023
Revenue
Cost of sales
Gross loss
Other income
Corporate and administration expenses
Exploration and evaluation expenses
Impairment expense
Gain on sale of subsidiary
Operating loss
Finance income
Finance expense
Loss before income tax expense
Income tax (expense)/benefit
Loss for the year
Other comprehensive income
Items that may not be reclassified to profit or loss
Changes in fair value of financial assets at fair value
through OCI
30 June 2023
30 June 2022
Notes
2
4
3
5
16
8
6
6
9
$’000
135,888
(157,874)
(21,986)
4,528
(15,639)
(8,646)
-
-
(41,743)
362
(2,744)
(44,125)
-
$’000
154,261
(159,066)
(4,805)
82
(10,748)
(6,121)
(77,797)
12,448
(86,941)
20
(1,016)
(87,936)
-
(44,125)
(87,936)
(53)
(46)
45
Total comprehensive income for the year
(44,178)
(87,982)
Total comprehensive (loss) attributable to:
Equity holders of the Parent
(44,178)
(87,982)
Basic loss per share
Diluted loss per share
31
31
(3.23)
(3.23)
(8.03)
(8.03)
The above statement should be read in conjunction with the accompanying notes.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
Consolidated Statement of Financial Position
as at 30 June 2023
30 June 2023
30 June 2022
Notes
$’000
$’000
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Prepayments
Assets classified as held for sale
Total current assets
Non-current assets
Receivables and other assets
Mine properties
Property, plant and equipment
Right-of-use assets
Investments
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Lease liabilities
Provisions
46
Liabilities directly associated with assets classified as
held for sale
Total current liabilities
Non-current liabilities
Trade and other payables
Borrowings
Lease liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Accumulated losses
Total equity
10
11
12
7
11
13
14
15
17
18
20
7
17
19
18
20
21
22
24,729
6,473
16,638
1,081
1,378
50,299
626
24,310
22,301
16,773
310
64,320
114,619
31,804
8,828
1,948
398
42,978
-
10,930
12,041
17,585
40,556
83,534
31,085
493,150
11,968
(474,033)
31,085
27,755
1,236
16,164
887
-
46,042
2,616
21,162
18,142
12,417
363
54,700
100,742
19,537
13,547
1,523
-
34,607
50
-
10,793
20,457
31,300
65,907
34,835
463,299
2,749
(431,213)
34,835
The above statement should be read in conjunction with the accompanying notes.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
Consolidated Statement of Changes in Equity
for the year ended 30 June 2023
Contributed
equity
Accumulated
losses
Other
contributed
equity
Notes
$’000
$’000
$’000
At 30 June 2022
463,299
(431,213)
Consolidated
At 30 June 2021
Loss for the year
Other comprehensive
income
Total comprehensive loss
21
21
32
Issue of ordinary shares
(net of costs)
Options/rights exercised
Share-based payments
Lapsed share-based
payments
Transactions with owners
in capacity of owners
Loss for the year
Other comprehensive
income
Total comprehensive loss
21
19
21
32
Issue of ordinary shares
(net of costs)
Contributions from related
party
Exercise of employee share
awards
Share-based payments
Lapsed share-based
payments
Transactions with owners
in capacity of owners
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,290
443,696
(344,550)
-
-
-
(87,936)
-
(87,936)
19,511
92
-
-
19,603
-
-
-
1,273
1,273
-
-
-
(44,125)
-
(44,125)
29,018
-
833
-
-
-
-
-
-
1,305
Share-
based
payments
reserve
$’000
2,871
-
-
-
-
(92)
1,289
(1,273)
(76)
Financial
assets at
fair value
through
OCI
$’000
-
-
Total
$’000
102,017
(87,936)
(46)
(46)
(46)
(87,982)
-
-
-
-
-
19,511
-
1,289
-
20,800
2,795
(46)
34,835
-
-
-
-
-
47
-
(44,125)
(53)
(53)
(53)
(44,178)
-
-
-
-
-
-
29,018
4,290
-
7,120
-
40,428
-
-
-
(833)
7,120
(1,305)
29,851
1,305
4,290
4,982
At 30 June 2023
493,150
(474,033)
4,290
7,777
(99)
31,085
The above statement should be read in conjunction with the accompanying notes.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023
FINANCIAL REPORT
Consolidated Statement of Cash Flows
for the year ended 30 June 2023
30 June 2023
30 June 2022
Notes
$’000
$’000
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Other receipts
Interest received
Interest paid
Net cash (outflow)/inflow from operating activities
30
Cash flows from investing activities
Payments for development expenses
Payments for property, plant and equipment
Proceeds from sale of subsidiary
Refund of deposits
Proceeds from sale of plant and equipment
Proceeds from disposal of assets
8
3 & 7
135,888
(158,417)
-
362
(1,300)
(23,467)
(8,856)
(7,870)
-
1,989
-
3,500
154,261
(128,715)
82
20
(891)
24,757
(30,490)
(8,681)
11,041
500
32
-
Net cash (outflow) from investing activities
(11,237)
(27,598)
Cash flows from financing activities
Proceeds from the issue of shares
48
Payments for costs of raising capital
Deposit received for future royalties
Proceeds from borrowings
Repayment of lease liabilities
Net cash inflow from financing activities
21
21
19
19
18
Net (decrease)/increase in cash and cash equivalents
held
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
10
30,050
(1,032)
3,440
11,000
(11,780)
31,678
(3,026)
27,755
24,729
20,833
(1,322)
-
-
(13,135)
6,376
3,535
24,220
27,755
The above statement should be read in conjunction with the accompanying notes.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 Net cash (outflow)/inflow from operating activities
30
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Other receipts
Interest received
Interest paid
Cash flows from investing activities
Payments for development expenses
Payments for property, plant and equipment
Proceeds from sale of subsidiary
Refund of deposits
Proceeds from sale of plant and equipment
Proceeds from disposal of assets
Net cash (outflow) from investing activities
Cash flows from financing activities
Proceeds from the issue of shares
Payments for costs of raising capital
Deposit received for future royalties
Proceeds from borrowings
Repayment of lease liabilities
Net cash inflow from financing activities
8
3 & 7
21
21
19
19
18
30 June 2023
30 June 2022
Notes
$’000
$’000
135,888
(158,417)
-
362
(1,300)
(23,467)
(8,856)
(7,870)
1,989
-
-
3,500
(11,237)
30,050
(1,032)
3,440
11,000
(11,780)
31,678
(3,026)
27,755
24,729
154,261
(128,715)
82
20
(891)
24,757
(30,490)
(8,681)
11,041
500
32
-
(27,598)
20,833
(1,322)
-
-
(13,135)
6,376
3,535
24,220
27,755
Net (decrease)/increase in cash and cash equivalents
held
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
10
The above statement should be read in conjunction with the accompanying notes.
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
Ora Banda Mining Limited (‘Company’) and its
subsidiaries (‘Group’) are a for-profit group of
companies incorporated and domiciled in Australia
whose shares are publicly traded on the Australian
Securities Exchange (‘ASX’). The nature of the
operations and principal activities of the Group are
described in the Directors’ Report.
The consolidated financial statements were
approved by the board of directors on 28 September
2023. The consolidated financial report is a
general purpose financial report which has been
prepared in accordance with the requirements of
the Corporations Act 2001, Australian Accounting
Standards and Interpretations issued by the
Australian Accounting Standards Board (‘AASB’). The
financial report has been prepared on a historical
cost basis, except for certain financial assets and
liabilities which are measured on a fair value basis.
a. Basis of consolidation
The consolidated financial statements comprise the
financial statements of the Group. A list of controlled
companies (subsidiaries) at year end is disclosed in
Note 28.
The financial statements of subsidiaries are
prepared for the same reporting period as the parent
b. Fair value measurement
A number of the Group’s accounting policies and
disclosures require the determination of fair
value for both financial and non-financial assets
and liabilities. Fair value is the price that would
be received to sell an asset or paid to transfer a
liability in an orderly transaction between market
participants at the measurement date in the
principal or, in its absence, the most advantageous
market to which the Group has access at that
date. The fair value of a liability reflects its non-
performance risk. Fair values have been determined
for measurement and/or disclosure purposes
based on the following methods. When applicable,
further information about the assumptions made
in determining fair values is disclosed in the notes
specific to that asset or liability.
The consolidated financial report is presented
in Australian dollars, which is the functional and
presentation currency of the Company and its
subsidiaries.
Compliance with Australian Accounting Standards
ensures that the consolidated financial statements
and notes comply with International Financial
Reporting Standards (‘IFRS’) as issued by the
International Accounting Standards Board (‘IASB’).
The Company is of a kind referred to in ASIC
Corporations (Rounding in Financial/Directors’
Reports) Instrument 2016/191 and in accordance
with that Instrument, all financial information has
been rounded off to the nearest thousand dollars,
unless otherwise stated.
Where necessary comparatives have been adjusted
to ensure consistent presentation.
company, using consistent accounting policies.
Intra-group balances and transactions, and any
unrealised income and expenses arising from intra-
group transactions, are eliminated in preparing the
consolidated financial statements.
When measuring the fair value of an asset or liability,
the Group uses observable market data as far as
possible. Fair values are categorised into different
levels in a fair value hierarchy based on the inputs
used in the valuation techniques as follows:
» Level 1: Quoted prices (unadjusted) in active
markets for identical assets or liabilities;
» Level 2: Inputs other than quoted prices included
in Level 1 that are observable for the asset or
liability, either directly (i.e.: as prices) or indirectly
(i.e.: derived from prices);
» Level 3: Inputs for the asset or liability that are not
based on observable market data.
If the inputs used to measure the fair value of an
asset or a liability fall into different levels of the fair
value hierarchy, then the fair value measurement is
49
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
categorised in its entirety in the same level of the
fair value hierarchy as the lowest level input that is
significant to the entire measurement. The Group
recognises transfers between levels of the fair value
hierarchy at the end of the reporting period during
which the change has occurred.
c. New accounting standards and standards not yet effective
The Company has adopted all new standards and
pronouncements applicable to the reporting period.
Any new, revised or amended Accounting Standards
or Interpretations that are not yet mandatory have
not been early adopted and are not expected to have
a material impact on the Group.
d. Going concern
The consolidated financial report has been prepared
on a going concern basis, which presumes the
continuity of normal business activities, the
realisation of assets and the settlement of liabilities
in the ordinary course of business.
At 30 June 2023 the Group had cash of $24.7 million
and working capital of $7.3 million. Subsequent to
balance date a further $9.9 million was received
following the completion of the sale process for
Lady Ida (note 7). The Group incurred a loss after
tax of $44.1 million for the year ended 30 June 2023.
Net cash outflows from operating and investing
activities was $34.7 million reflecting operations
during the year.
Cashflow forecasts have been prepared for the
next 12 months to support the assessment of going
concern, which anticipates that the Group will be
able to pay its debts as and when they fall due during
the period. Noting the inherent risks associated with
achieving the cashflow forecast, key assumptions in
the cashflow forecast include:
» development of the Riverina Underground mine in
line with schedule and budget;
» achieving planned gold production (volume,
grade and recoveries) at forecast costs of
production from open pit and underground mining
operations; and
» realisation of forecast gold revenues from planned
gold production at anticipated pricing.
The Directors have a reasonable expectation that
these assumptions can be satisfied and believe it
is appropriate to prepare the financial statements
on a going concern basis, which contemplates the
continuity of normal business activities and the
realisation of assets and liabilities in the ordinary
course of business. In the event that the key
assumptions noted above are not achieved, the
Directors believe that alternative sources of funding
would be available.
50
Significant Accounting Judgements, Estimates and Assumptions
The preparation of financial statements requires
management to make judgements, estimates
and assumptions that affect the application of
accounting policies and reported amounts of assets
and liabilities, income and expenses.
Judgements and estimates which are material to the
financial report are found in the following notes:
» Note 9: Income tax – consideration of recognition
of deferred tax assets;
» Notes 4 & 13: Amortisation of development
expenditure – estimation of future mineable
inventory and future development expenditure
when calculating units of production amortisation;
» Note 12: Inventory net realisable value -
estimations around selling price in ordinary
course of business and estimated costs necessary
to make the sale;
» Note 13: Reserves and resources – estimating
reserves and resources;
» Note 19: Borrowings - measurement of fair value
based on key assumptions;
» Note 16: Impairment of mine development and
property, plant & equipment;
» Note 20: Provision for rehabilitation –
measurement of provision based on key
assumptions; and
» Note 32: Share-based payments – estimations
involving valuation of performance rights issued
to directors and employees.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 2. REVENUE
Gold sales
Silver sales
FINANCIAL REPORT
30 June 2023
30 June 2022
$’000
135,570
318
135,888
$’000
154,040
221
154,261
No sales were made under hedge arrangements during the current and prior financial period. The Company
has no hedge arrangements for future financial years.
Accounting policies
Gold bullion sales
The Company primarily generates revenue from the
sale of gold and silver bullion. Revenue from the sale
of these goods is recognised when control over the
inventory has transferred to the customer.
Control is considered to have passed when:
» transfer of physical possession and inventory risk
(including through a third-party transport provider
arranged by the refinery);
» payment terms for the sale of goods can be
clearly identified through the sale of metal credits
3. OTHER INCOME
Profit on sale of property, plant & equipment
Gain on modification of rights of use asset
Net gain on the sale of assets25
Other income
received or receivable for the transfer of control of
the asset;
» the Company can determine with sufficient
accuracy the metal content of the goods
delivered; and
» the refiner has no practical ability to reject the
product where it is within contractually specified
limits.
30 June 2023
30 June 2022
$’000
-
1,967
2,500
61
4,528
$’000
51
31
-
-
51
82
25. On 21 March 2023, the Company announced the sale of non-core Lady Ida exploration tenements to Beacon Minerals Ltd for
$2.5 million, subject to conditions precedent being met:
»
»
»
sale of E16/475, E16/484, E16/483, E16/486;
the Company to retain mineral rights for all non-gold/silver over the sale tenements; and
the Company obtaining the release of existing royalty on the sale tenements from Hawke’s Point.
The sale completed on 20 June 2023, with full proceeds of $2.5 million received and titles to respective tenements transferred. There
was no carrying value associated with these tenements sold.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023
4. COST OF SALES
Mining
Processing
Haulage
Site services
Employee benefits expense
Royalties
Depreciation
Amortisation
Changes in inventories
Inventory write down
FINANCIAL REPORT
30 June 2023
30 June 2022
Notes
14 & 15
13
$’000
60,041
35,911
11,312
8,930
19,422
3,125
9,842
7,665
(7,353)
8,979
157,874
$’000
43,582
27,350
10,045
5,151
20,985
3,723
21,967
19,554
(24,343)
31,053
159,066
Accounting policies
Amortisation
The Group applies the units-of-production method
for amortisation of its production phase assets. This
results in an amortisation charge proportional to the
depletion of the anticipated remaining life of mine
production. These calculations require the use of
estimates and assumptions in relation to reserves
and resources, metallurgy and the complexity of
future capital development requirements. These
estimates and assumptions are reviewed annually
and changes to these estimates and assumptions
may impact the amortisation charge in profit or loss
and asset carrying values.
The Group uses ounces mined over estimated
remaining reserves as its basis for depletion of
production phase assets.
52
Depreciation
Depreciation is calculated on either a reducing
balance basis or straight-line basis over the
estimated useful life of each part of an item of
property, plant and equipment. Right of use assets
are depreciated over the shorter of the lease
term and their useful life. The processing plant is
depreciated on a life-of-mine basis. Capital works
in progress are not depreciated until the assets are
ready for use. Depreciation methods, useful lives
and residual values are reassessed at each reporting
date.
The estimated useful lives for the current and
comparative period are as follows:
Buildings
Haul roads
Plant and equipment
Period
3-6 years
3-6 years
3-6 years
Office furniture and equipment
3-6 years
Motor vehicles
5-7 years
Royalties
Royalties are payable on lodgement with the refining
counterparty and are recognised as the sale occurs.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
5. CORPORATE AND ADMINISTRATION EXPENSES
Employee benefits expenses
Share-based payments
Administration
Depreciation expense
6. FINANCE INCOME/(EXPENSE)
Interest income
Provisions: unwinding of discount
Interest expense
Finance charges
Net finance expense
Accounting policies
30 June 2023
30 June 2022
$’000
4,027
7,120
4,212
280
$’000
4,084
1,289
4,876
499
15,639
10,748
30 June 2023
30 June 2022
$’000
362
362
(664)
(1,300)
(780)
(2,744)
(2,382)
$’000
20
20
(126)
(890)
-
(1,016)
(996)
Interest income comprises bank interest on funds
invested and is recognised as it accrues, using
the effective interest method. Finance expenses
comprise interest expense and finance charges
on borrowings (including leases) and unwinding
of the discount on provisions. All borrowing costs
are recognised in profit or loss using the effective
interest method in the period in which they are
incurred except borrowing costs that are directly
attributable to the acquisition, construction and
production of a qualifying asset that necessarily
takes a substantial period to get ready for its
intended use or sale. In this case, borrowing costs
are capitalised as part of the qualifying asset.
53
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
7. ASSETS CLASSIFIED AS HELD FOR SALE
On 16 March 2023, the Company announced the sale
of certain non-core Lady Ida tenements to Lamerton
Pty Ltd and Geoda Pty Ltd for $10 million. The sale
details included:
L16,58, L16/62 and L16/103) and applications for
L16/138 and L16/142;
» the Company to retain mineral rights for all non-
gold/silver over the sale tenements; and
» sale of M16/0262, M16/0263, M16/0264 plus
» the Company obtaining the release of existing
corresponding miscellaneous licenses (L15/224,
royalty on the sale tenements from Hawke’s Point.
Conditions precedent:
The completion of the sale is conditional on the
following conditions precedent being satisfied:
» receipt of Ministerial consent for the transfer of
the tenements;
» consent of Hawke’s Point to the sale of the
tenements;
» variation or other amendment necessary to
ensure Hawke’s Point’s existing net smelter royalty
does not apply to the tenements;
» the Company obtaining any third-party consents
required for the transaction, including under
relevant access agreements, and entry into deeds
of covenant where required under relevant third-
party agreements; and
» execution of any deed polls or other documents
required under the Company’s heritage
agreements which apply to the tenements.
At 30 June 2023, Ministerial consent for the
transfer of tenements was outstanding. All other
conditions precedent were complete. Accordingly,
this transaction was not recorded as a sale at
30 June 2023.
A refundable deposit of $1.0 million was received on
23 March 2023 been recorded as a current payable
(refer Note 17) and the remaining balance of $9.0
million was outstanding at 30 June 2023.
As at 30 June 2023 the assets were available for
immediate sale and the sale was considered highly
probable within a 12-month period. The associated
assets and liabilities were consequently presented
as held for sale.
The transaction was completed and the $9.0 million
was received in full on 19 September 2023.
The following assets and liabilities were reclassified
as held for sale in relation to the sale of the non-core
Lady Ida tenements to Lamerton Pty Ltd and Geoda
Pty Ltd as at 30 June 2023:
54
Assets classified as held for sale
Development asset (Note 13)
Total assets held for sale
Liabilities directly associated with assets classified as held for sale
Provision for rehabilitation (Note 20)
Total liabilities held for sale
Net assets held for sale
8. SALE OF SUBSIDIARY – PRIOR PERIOD
On 24 September 2021 the Company announced
it had completed sale of Mt Ida Gold Pty Limited
for cash consideration of $11.04 million, including
the disposal of the rehabilitation provision of
$2.29 million.
The Group recognised a gain on disposal of
$12.45 million as 30 June 2022 (2023: Nil).
$’000
1,378
1,378
(398)
(398)
980
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
9.
INCOME TAX
a. Components of tax expense:
Current tax benefit
Deferred tax
b. Deferred income tax related to items recognised directly to
equity
Gain on financial asset at fair value through other comprehensive
income
c. Prima facie income tax expense
The prima facie tax payable on loss before income tax is
reconciled to the income tax expense as follows:
30 June 2023
30 June 2022
$’000
$’000
-
-
-
-
-
-
-
-
Prima facie income tax benefit/(expense) on loss before income
tax at 30% (2022: 30%)
(13,237)
(26,381)
Tax effect of:
Expenses not deductible in determining taxable profit/loss
Losses and other deferred tax balances not recognised
during the year
Income tax expense/(benefit) attributable to loss
2,360
10,877
-
(3,236)
29,617
-
Based on the Group’s 2022 financial year income tax
return and estimates for 30 June 2023, the Group has
an unrecognised deferred tax asset of $76.4 million
on carried forward tax losses of $254.6 million.
Losses carried forward of $170.24 million as at 30
June 2016 are subject to the satisfaction of the same
business test or the business continuity test, due
to several continuity of ownership failures during
the loss years. Losses incurred post 30 June 2016
are subject to the satisfaction of the continuity
of ownership test. During the year management
performed a continuity of ownership assessment
and have deemed it appropriate to disclose losses
carried forward.
55
Accounting policies
Income tax
Income tax expense comprises current and deferred
tax. Income tax expense is recognised in profit or
loss except to the extent that it relates to items
recognised directly in equity, in which case it is
recognised in equity.
Current tax is the expected tax payable on the
taxable income for the year, using tax rates enacted
or substantively enacted at balance date, and any
adjustment to tax payable in respect of previous
years.
Deferred tax is recognised using the balance
sheet method, providing for temporary differences
between the carrying amounts of assets and
liabilities for financial reporting purposes and the
amounts used for taxation purposes. Deferred tax
is measured at the tax rates that are expected to
be applied to the temporary differences when they
reverse, based on the laws that have been enacted or
substantively enacted at balance date.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023
FINANCIAL REPORT
Tax losses
Deferred tax assets are recognised for the carry-
forward of unused tax losses to the extent that it
is probable that taxable profits will be available in
the future against which unused tax losses can be
utilised. The deductible carry-forward tax losses do
not expire under current tax legislation. Deferred tax
Tax consolidation
Ora Banda Mining Limited and its wholly owned
Australian resident subsidiaries have formed a tax
consolidated group with effect from 1 July 2002.
assets have not been recognised in respect of these
items because it is not probable that future taxable
profit will be available against which the Group can
utilise the benefits therefrom, detailed further in
significant judgements below.
Ora Banda Mining Limited is the head entity of the
tax consolidated group.
Tax effect accounting by members of the tax consolidated group
The head entity and the controlled entities in the
tax consolidated group continue to account for
their own current and deferred tax amounts. The
Group has applied the group allocation approach in
determining the appropriate amount of current taxes
and deferred taxes to allocate to members of the
tax consolidated group. The current and deferred tax
amounts are measured in a systematic manner that
is consistent with the broad principles in AASB 112
Income Taxes.
Significant judgements
Deferred tax assets
Deferred tax assets, including those arising from
unutilised tax losses, require the Group to assess
the likelihood that it will generate sufficient taxable
earnings in future periods, in order to utilise
recognised deferred tax assets. Assumptions about
the generation of future taxable profits depend
on management’s estimates of future cash flows.
These estimates of future taxable income are based
on forecast cash flows from operations (which
are impacted by production and sales volumes,
commodity prices, reserves, operating costs, closure
and rehabilitation costs, capital expenditure and
other capital management transactions). To the
extent that future cash flows and taxable income
differ significantly from estimates, the ability of the
Group to realise the net deferred tax assets could be
impacted.
56
10. CASH AND CASH EQUIVALENTS
Cash at bank and on hand
30 June 2023
30 June 2022
$’000
24,729
24,729
$’000
27,755
27,755
Accounting policies
Cash and cash equivalents comprise cash balances
and call deposits with maturities of three months
or less. The Group ensures that as far as possible it
maintains excess cash and cash equivalents in short-
term high interest-bearing deposits. The Group’s
exposure to interest rate risk and a sensitivity
analysis of financial assets and liabilities are
disclosed in Note 27.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
11. TRADE AND OTHER RECEIVABLES
Current
GST receivables
Other receivables
Less provision for expected credit loss
Non-current
Security deposits
30 June 2023
30 June 2022
$’000
5,230
1,243
-
6,473
626
$’000
1,112
1,645
(1,521)
1,236
2,616
At 30 June 2023, the Company had $5.7 million (2022:
$1.2 million) receivable from ATO in relation to GST
and diesel fuel rebate refunds. This was received in
full subsequent to balance date.
The Group’s exposure to credit risk is disclosed in
Note 27.
Accounting policies
Trade receivables are recognised initially at the
value of the invoice sent to the counterparty and
subsequently at the amounts considered recoverable
(amortised cost). Where there is evidence that the
receivable is not recoverable, it is impaired
with a corresponding change to profit or loss.
GST receivable balances are recorded initially
as the consideration to be received from the
federal government, and then subsequently at
amortised cost.
Impairment of receivables
Reconciliation of provision for expected credit loss:
Carrying amount at beginning of year
Reversal due to debt recovery
Amounts written off during the year
Carrying amount at the end of year
30 June 2023
30 June 2022
$’000
1,521
-
(1,521)
-
57
$’000
1,940
(408)
(11)
1,521
The provision relates to outstanding amounts
for shares issued to former related parties and
advances provided to former related parties for the
recharge of costs incurred by the Group on behalf of
the former related party arising from prior periods.
In the prior period, all related party receivables were
fully provided for based on an expected credit loss
rate of 100%. These receivables are not considered
recoverable and have been written off in the current
period.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
12. INVENTORIES
Materials and supplies - cost
Ore stocks – net realisable value
Gold in circuit – net realisable value
Bullion on hand – net realisable value
Total inventories
30 June 2023
30 June 2022
$’000
5,169
8,162
3,307
-
16,638
$’000
3,070
5,977
3,052
4,065
16,164
Accounting policies
Inventories
Ore stockpiles, gold in circuit and gold bullion
are physically measured or estimated and valued
at the lower of cost and net realisable value.
The cost comprises direct materials, labour and
transportation expenditure in bringing such
inventories to their existing location and condition,
together with an appropriate portion of fixed and
variable overhead expenditure based on weighted
average cost incurred during the period in which
such inventories were produced.
Net realisable value is the estimated selling price in
the ordinary course of business less estimated cost
of completion and the estimated cost necessary
to perform the sale. Inventories of consumable
supplies and spare parts that are expected to be
used in production are valued at cost. Obsolete or
damaged inventories of such items are valued at net
realisable value.
During the year ore stockpiles and gold in circuit
were reduced by $9.0 million (2022: $31.05 million)
as a result of a write down to net realisable value.
This write down was recognised as an expense within
cost of sales.
Bullion on hand
Bullion on hand comprises gold that has been
poured prior to year-end but which has not yet been
delivered into a sale contract.
58
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
13. MINE PROPERTIES
Development
Cost brought forward
Expenditure during the year
Disposal of subsidiary
Disposal of assets (Note 7)
Transferred to production phase
Impairment expense
Balance at 30 June
Production
Cost brought forward
Transfer from development phase
Expenditure during the year
Rehabilitation provision adjustment
Amortisation expense
Impairment expense
Balance at 30 June
Total Mine Properties
30 June 2023
30 June 2022
$’000
$’000
5,690
15,223
-
(1,378)
-
-
19,535
15,472
-
-
(3,032)
(7,665)
-
4,775
24,310
11,321
1,015
(866)
-
(285)
(5,495)
5,690
47,217
285
29,475
1,333
(19,554)
(43,284)
15,472
21,162
Accounting policies and significant judgements
Development assets
The Group capitalises expenditure on areas of
interest in the development phase only where the
following criteria are met:
» The Group has right of tenure in the area of
interest;
» The expenditure is for the purpose of furthering an
already proven mineral resource area; and
Production assets
Production assets represent the acquisition cost
and/or accumulated exploration, evaluation and
development expenditure in respect of areas of
interest in which mining has commenced. When
production commences, capitalised costs in
the development phase are transferred to mine
properties, at which time it is amortised on a unit
of production basis based on ounces mined over
the total estimated reserves related to this area of
interest.
Significant factors considered in determining the
technical feasibility and commercial viability of the
» The expenditure provides future economic
benefit by developing the underlying resources to
further progress the asset towards commercial
production.
59
Development phase assets are transferred to
mine properties and mining assets when mining
production commences at the area of interest.
project are the completion of a feasibility study, the
existence of sufficient resources to proceed with
development and approval by the board of directors
to proceed with development of the project.
Underground development expenditure incurred
in respect of mine development after the
commencement of production is carried forward
as part of mine development only when substantial
future economic benefits are expected, otherwise
this expenditure is expensed as incurred.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
Deferred stripping costs
Stripping is the process of removing overburden and
waste materials from surface mining operations
to access the ore. Stripping costs are capitalised
during the development of a mine and are
subsequently amortised over the life of mine on a
Commercial production
Amortisation of capitalised mine development costs
begins when pre-determined levels of operating
capacity have been achieved. The determination of
when a mine is in the position for it to be capable
of operating in the manner intended (known as
commercial production) is a matter of significant
judgement.
Management considers several factors when
determining when a mining operation has achieved
the intended levels of operating capacity, including:
» When the mine is substantially complete and
ready for its intended use;
» When the mine has the ability to sustain ongoing
production at a steady or increasing level;
units of production basis, where the unit of account
is ounces of gold mined from reserves. Stripping
costs capitalised at year end are included in the
production phase of development expenditure.
» When the mine has reached a level of pre-
determined percentage of design capacity;
» When mineral recoveries are at or near intended
production levels; and
» When a reasonable period of testing of mining
and processing operations have been successfully
completed.
Once commercial production is declared, the
capitalisation of certain mine development and
construction costs ceases. Subsequent costs are
regarded as either forming part of the cost of
inventories or are expensed. However, any costs
relating to mining asset additions or improvements,
or mineable reserve development, are assessed to
determine whether capitalisation is appropriate.
Reserves and resources
Resources are estimates of the amount of gold
during the course of operations, estimates of reserves
product that can be economically extracted from
and resources may change from period to period.
the Group’s mine properties. In order to calculate
Changes in reported resources and reserves may affect
resources, estimates and assumptions are required
the Group’s financial results and financial position in a
about a range of geological, technical and economic
number of ways, including:
factors, including quantities, grades, production
techniques, recovery rates, production costs, future
capital requirements, short and long term commodity
prices and exchange rates.
60
Estimating the quantity and/or grade of resources
requires the size, shape and depth of ore bodies to be
determined by analysing geological data. This process
may require complex and difficult geological judgments
and calculations to interpret the data.
The Group determines and reports ore resources under
the Australian Code of Reporting for Mineral Resource
and Ore Reserves (2012), known as the JORC Code. The
JORC Code requires the use of reasonable assumptions
to calculate resources. Due to the fact that economic
assumptions used to estimate resources change from
period to period, and geological data is generated
» asset carrying values may be impacted due to
changes in estimates of future cash flows;
» amortisation charged in profit or loss may change
where such charges are calculated using the units-
of-production basis;
» decommissioning, site restoration and
environmental provisions may change due
to variations in estimated resources after
expectations about the timing or costs of these
activities change; and
» recognition of deferred tax assets, including tax
losses.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
14. PROPERTY, PLANT AND EQUIPMENT
Motor Vehicles
Buildings &
Infrastructure
Plant &
Equipment
Capital WIP
$’000
$’000
$’000
$’000
594
343
-
(156)
(384)
397
397
-
104
(120)
381
7,456
56
5,894
(3,710)
(4,763)
4,933
27,999
904
-
(4,717)
(11,881)
12,305
4,933
12,305
-
1,788
(1,001)
5,720
-
4,777
(3,793)
13,289
814
5,587
(5,894)
-
-
507
507
9,073
(6,669)
-
2,911
Total
$’000
36,863
6,890
-
(8,583)
(17,028)
18,142
18,142
9,073
-
(4,914)
22,301
Balance 1 July 2021
Additions
Transfers
Depreciation expense
Impairment expense
Balance 30 June 2022
Balance 1 July 2022
Additions
Transfers
Depreciation expense
Balance 30 June 2023
Accounting policies
All assets acquired, including property, plant and
equipment, are initially recorded at their cost of
acquisition being the fair value of the consideration
provided plus incidental costs directly attributable
to the acquisition.
Property, plant and equipment assets located on
a mine site are carried at cost less accumulated
depreciation and any accumulated impairment
losses. All such assets are depreciated over the
estimated remaining economic life of the mine,
using a units-of-production method, based on
reserves. The cost of certain items of property,
plant and equipment has been determined with
reference to its fair value, detailed in significant
judgements below.
All other property, plant and equipment assets are
carried at cost less accumulated depreciation and
impairment losses. These items are depreciated
on a straight-line basis over the assets estimated
useful life which is three to seven years. Depreciation
commences from the time the asset is ready for use.
Cost includes expenditures that are directly
attributable to the acquisition of the asset.
The cost of self-constructed assets includes
the cost of materials and direct labour, any other
costs directly attributable to bringing the asset to
a working condition for its intended use, and the
costs of dismantling and removing the items and
restoring the site on which they are located.
When parts of an item of property, plant and
equipment have different useful lives, they
are accounted for as separate items (major
components) of property, plant and equipment.
The cost of replacing part of an item of property,
plant and equipment is recognised in the carrying
amount of the item if it is probable that the future
economic benefits embodied within the part will
flow to the Group and its cost can be measured
reliably. The costs of the day-to-day servicing of
property, plant and equipment are recognised in
profit or loss as incurred.
61
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
15. RIGHT-OF-USE ASSETS
Cost
Opening balance
Disposals
Additions
Closing balance
Accumulated depreciation and impairment
Opening balance
Disposal
Depreciation charge for the year
Impairment charge for the year
Closing balance
Carrying amount – Opening balance
Carrying amount – Closing balance
30 June 2023
30 June 2022
$’000
$’000
43,834
(2,343)
12,490
53,981
(31,417)
130
(5,921)
-
(37,208)
12,417
16,773
33,775
(471)
10,530
43,834
(6,320)
471
(13,578)
(11,990)
(31,417)
27,455
12,417
The Group leases mining power generation and other
equipment for the purposes of development and
production activities. These leases run for a period
of approximately 1 to 5 years, with an option to
renew the lease after that date. Leases that contain
extension options are exercisable by the Group and
not the lessor. Refer to Note 18 for details of the
Lease Liabilities relating to these right of use assets.
62
During the year, leading underground mining
contractor Byrnecut Australia was selected as
preferred contractor for Riverina Underground
project. The contract contains a number of specified
assets which are controlled by the Company and
from which the Company with obtain substantially
all of the economic benefits. This lease accounted
for $12.5 million in additions during the year ended
30 June 2023.
16. IMPAIRMENT OF MINE PROPERTIES, PROPERTY PLANT & EQUIPMENT AND
RIGHT-OF-USE ASSETS
The carrying amount of the Group’s non-current
assets, including mine properties, property plant &
equipment and right of use assets are reviewed at
each reporting date to determine whether there is
any indication of impairment. Where an indicator of
impairment exists a formal estimate of recoverable
amount is made.
Indicators of impairment – Mine properties, property plant & equipment and right-of-use assets
Mine properties, land & buildings and plant &
equipment assets are assessed for impairment
on a cash generating unit (‘CGU’) basis. A CGU
is the smallest group of assets that generates
largely independent cash flows. Generally, mining
operations that process through a common facility
are considered a single CGU.
As the Group has a single processing facility, it has
been assessed as a single CGU only; the Davyhurst
gold project (‘DGP’) CGU.
Individual assets within a CGU may become impaired
if their ongoing use changes or if the benefits to be
obtained from ongoing use are likely to be less than
the carrying value of the individual asset.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
Impairment losses or reversal of impairment losses
An impairment loss is recognised in profit or loss
whenever the carrying amount of an asset or its
CGU exceed its recoverable amount. Impairment
losses recognised in respect of CGUs are allocated to
reduce the carrying amount of the assets in the CGU
on a pro rata basis.
Any reversal of impairment losses is recognised
in profit or loss when the recoverable amount of
an asset or CGU exceeds its carrying amount and
impairment losses are reversed only to the extent
that the asset carrying amount does not exceed the
carrying amount that would have been determined if
no impairment loss had been recognised.
Recoverable amount
The recoverable amount of a CGU is the greater of
its fair value less costs of disposal ('FVLCD') (based
on level 3 fair value hierarchy) and its value in
use (‘VIU’), using an asset’s estimated future cash
flows discounted to their present value using a
post-tax discount rate that reflects current market
assessments of the time value of money and the
risks specific to the CGU.
the likelihood of recoverability from successful
development or sale. The discounted future
estimated cash flows expected to be generated from
the continued use of the CGU use market-based
gold price assumptions, the level of gold production
from the operational reset, estimated quantities of
recoverable gold, production levels, operating costs
and sustaining capital requirements.
The CGU’s recoverable amount has been determined
based on FVLCD. The FVLCD represents the discounted
cashflows of the operational reset plan for DGP,
together with an implied value for the existing
resource and reserve base and assessment on
The cash flow forecasts are discounted using a
post-tax discount rate that reflects current market
assessments of the time value of money and the
risks specific to the DGP CGU.
DGP CGU impairment Indicator assessment at 30 June 2023
A review of potential impairment indicators for
the DGP CGU undertaken as at 30 June 2023 did not
identify indicators of impairment and thus
assessment of recoverable amount of the DGP CGU
was not undertaken.
DGP CGU impairment Indicator assessment at 30 June 2022
A review of potential impairment indicators for the
DGP CGU was undertaken as at 30 June 2022. The
following factors were identified as indicators of
impairment:
» Evidence that the DGP CGU’s economic
performance was worse than expected including
but not limited to a 24% reduction in expected
gold production (against initial FY22 guidance)
and material net realisable value (‘NRV’) charges
against ore stockpiles;
» Significant increases to the risk-free interest
rate underpinning the applicable discount rate;
abnormally high inflation rates and other cost
pressures, including significant increases in the
diesel price; and
» Quoted market capitalisation of the Group was
lower than its net asset carrying value before the
recognition of any impairment losses.
The review conducted determined that a pre-tax,
non-cash impairment loss of $61.29 million was
recognised for the 2022 financial year.
The composition of the impairment loss across the
Group’s non-financial assets is summarised below:
63
Asset classification
Mine properties – Production assets
Property, plant and equipment
Right-of-use assets
Total impairment loss
$’000
32,274
17,028
11,990
61,292
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
In the prior year, the Group ceased mining at its Riverina open pit mine. All mine development expenditure
associated with the operation was impaired at that point. This amounted to $16.51 million.
Total impairment is reconciled as below:
FY22 impairment expense
Mine properties – Riverina mine
Mine properties – Other production assets
Property, plant and equipment
Right-of-Use assets
Total impairment loss
17. TRADE AND OTHER PAYABLES
Current
Trade payables
Accruals
Other payables
Deposit received in advance (Note 7)
Non-current
Other payables
$’000
16,505
32,274
17,028
11,990
77,797
30 June 2023
30 June 2022
$’000
$’000
14,150
15,748
906
1,000
31,804
-
-
10,325
7,289
1,923
-
19,537
50
50
A sensitivity analysis of financial assets and liabilities, together with the Group’s exposure to liquidity risk, are
disclosed in Note 27.
64
Accounting policies
Trade payables are recognised at the value of the
invoice received from a supplier. They represent
liabilities for goods and services provided to the
Group prior to the end of the financial year that
are unpaid. They arise when the Group becomes
obliged to make future payments in respect of the
purchase of goods and services. The amounts are
unsecured and generally paid within 14 to 30 days of
recognition.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
18. LEASE LIABILITIES
Current
Non-current
Maturity analysis
Within one year
Later than one year but not later than five years
Minimum lease payments
Future finance charges
Total lease liabilities for right of use assets
30 June 2023
30 June 2022
$’000
8,828
12,041
20,869
9,939
12,902
22,841
(1,972)
20,869
$’000
13,547
10,793
24,340
14,060
11,081
25,141
(801)
24,340
The right-of-use assets to which the lease liabilities relate are disclosed in Note 15.
For the year ended 30 June 2023, the Group
recognised $12.5 million of additional lease
liabilities, $11.8 million of lease repayments,
$4.2 million in lease modifications and $1.0 million
of interest costs in relation to these leases. The lease
modifications were driven by a reduction in fleet size
as the Riverina open pit mine ceased production at
the commencement of the financial year.
Accounting policies
The Group leases assets, including properties
and equipment. As a lessee, the Group previously
classified leases as operating or financial leases
based on its assessment of whether the lease
transferred substantially all of the risks and rewards
of ownership. Following the implementation of AASB
16 Leases, the Group recognises right-of-use assets
and the corresponding lease liability for applicable
leases.
Pursuant to AASB 16, a contract is, or contains,
a lease if the contract conveys a right to control the
use of an identified asset for a period in exchange
for consideration.
The Group recognises right-of-use assets at the
commencement date of the lease. Such assets are
initially measured at cost, and subsequently at cost
less any accumulated depreciation and impairment
losses and adjusted for any changes to lease
liabilities. The cost of right-of-use assets includes
the amount of lease liabilities recognised, initial
direct costs incurred, and lease payments made at
or before the commencement date.
For short-term leases with terms of 12 months or
less or leases of low-value assets, the Group has
elected not to recognise a right-of-use asset and
corresponding lease liability. Lease payments
on these assets are expensed to profit or loss as
incurred.
Lease liabilities are initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted using the interest
rate implicit in the lease or, if that cannot be readily
determined, the Group’s incremental borrowing rate.
Generally, the Group uses its incremental borrowing
rate as the discount rate. The lease liability is
subsequently increased by the interest cost on the
lease liability and decreased by lease payments
made. The carrying amount of lease liabilities is
remeasured if there is a modification to an index or
rate, a change in the residual value guarantee, or
changes in the assessment of whether a purchase,
extension or termination option will be exercised.
The lease payments include fixed monthly payments,
variable lease payments and amounts expected to
be paid under residual value guarantees less any
incentives received. Variable lease payments that
do not depend on an index or rate are recognised
as an expense in the period it was incurred. The
65
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
lease payment also includes the exercise price, or
termination price, of a purchase option in the event
the lease is likely to be extended, or terminated,
by the Group. The Group has applied judgement to
determine the lease term for some lease contracts
in which it is a lessee that includes renewal options.
The assessment of these options will impact the
lease term and therefore affects the amount of lease
liabilities and right-of-use assets recognised.
19. BORROWINGS
Carrying amount at beginning of year
Proceeds received
Fair value adjustments
Finance charge
Carrying amount at the end of year
30 June 2023
30 June 2022
$’000
-
11,000
(850)
780
10,930
$’000
-
-
-
-
-
Accounting Policy
The Company’s borrowings are represented by
funding received from a related party. The borrowings
are financial liabilities, initially recognised at fair
value and subsequently measured at amortised cost
using the effective interest rate method. The related
party is a majority shareholder of the Company.
Therefore, the difference arising between fair value
and proceeds on initial recognition is recorded
directly in the Statement of Changes in Equity as
Other Contributed Equity.
66
Incremental proceeds received for the royalty
arrangement have been recognised in equity as
the contract is executory and it does not contain a
present obligation to deliver cash or other financial
assets and does not require settlement in a variable
number of the Group’s equity instruments. The
royalty charge will be expensed when incurred, which
will coincide with when the gold is produced.
Borrowings are classified as current liabilities
unless the Group has an unconditional right to defer
settlement of the liability for at least 12 months
after the reporting date or there is an expectation
the Group will repay amounts within the following
12 months.
Borrowings from Related Party
On 23 December 2022, the Company received
proceeds of $12.7 million representing funding from
its major shareholder Hawke’s Point. The funding
consists of:
» Unconditional and unsecured loan for $11.0
million maturing on 31 December 2023 with an
interest rate of 10% per annum paid quarterly
(’Loan’); and
» Capped net smelter return royalty with respect
to certain gold products to the shareholder in
return for $1.7 million (’Royalty’). The Royalty
is payable at 0.9% NSR and capped at 900,000
ounces of pure gold produced commencing from
31 December 2023. Refer to Note 29 for further
details.
For the purposes of accounting for the transaction,
the Company considers the loan and royalty
arrangements as linked transactions.
Under its accounting policy, the unsecured loan has
been recorded as a financial liability at fair value.
The Company determined fair value of the unsecured
loan estimating a market rate of interest and
discounting the contractual future cash payments of
principal and interest. The Company has adopted a
market rate of interest of 20% based on an estimate
of the rate most likely to be obtained for similar
unsecured lending arrangements involving arms-
length market participants. The discounted cash
flows, representing fair value, were measured at
$10.1 million on initial recognition. Interest related
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
to the financial liability will be recognised in profit
or loss.
The difference between the fair value of $10.1 million
and the book value of the total proceeds of $12.7
Modification
On 21 March 2023, the Company announced the
sale of non-core Lady Ida exploration tenements
Beacon Minerals Ltd. In order to satisfy condition
precedent to the transaction, Hawke’s Point agreed
to vary the Royalty such that it will not apply to
these tenements. The agreement included the
following, which was approved at the EGM held on
the 8 June 2023:
» The maturity date on the Loan was extended for a
period of 9 months from 31 December 2023 to 30
September 2024;
» The Royalty will continue to apply to remaining
tenure, and will increase from 0.9% to 1.0% NSR,
along with the removal of 900koz Royalty cap.
20. PROVISIONS
million (including proceeds of the royalty), equalling
$2.6 million, was recorded as Other Contributed
Equity in the Statement of Changes in Equity.
The Royalty is now uncapped; and
» Hawke’s Point will pay $1.7 million cash
consideration for the above.
The debt modification was determined to be non-
substantial. The updated discounted cash flows,
associated with the 9-month extension, resulted in a
$0.4 million fair value adjustment.
The cash consideration of $1.7 million for the royalty
modification was received from Hawke’s Point
on 14 June 2023 and has been recorded as Other
Contributed Equity, consistent with the proceeds
from the original royalty. Total recognised in Other
Contributed Equity for the year is $4.3 million.
30 June 2023
30 June 2022
$’000
$’000
Current
Annual leave
Long service leave
Other
Non-current
Rehabilitation
Other
Provision for rehabilitation
Carrying amount at beginning of year
Disposal of subsidiary
Disposal of assets (Note 7)
Changes in provisions recognised
Unwinding of discount
Carrying amount at the end of year
1,883
54
11
1,948
16,995
590
17,585
19,761
-
(398)
(3,032)
664
16,995
67
1,330
103
90
1,523
19,671
786
20,457
20,596
(2,292)
-
1,331
126
19,761
ORA BANDA MINING LIMITED ANNUAL REPORT 2023
FINANCIAL REPORT
The Group fully provides for the future cost of
rehabilitating mine sites and related production
facilities on a discounted basis on the development
of mines or installation of those facilities. The value
of the provision represents the present value of
expected costs relating to the rehabilitation of mine
sites and decommissioning of the processing plant
and other infrastructure. The provision is based on
estimates provided by external consultants. Key
inclusions and pertinent matters underpinning the
provision are:
» Provision covers the three project areas, being
Carnegie, Siberia and Heron;
» Cost estimates for the three project are based on
actual mining contractor, equipment rates and
average industry contracting rates;
» Provision incorporates costs for the demolition
Accounting policies
Provisions are recognised:
» When the Group has a present (legal or
constructive) obligation as a result of a past event;
» It is probable the Group will be required to settle
the obligation; and
» A reliable estimate can be made of the amount of
the obligation.
and cartage of fixed infrastructure to the nearest
nominated waste disposal area;
» Rehabilitation costs are incurred over a four-year
forecast period;
» 15% (2022: 10%) contingency has been included in
the provision calculation;
» Allowance has been made within the contingency
for post-closure maintenance and reworking of
environmental rehabilitation;
» Discount rate applied of 3.95% (2022: 3.36%),
estimated based on yields of government risk-free
bonds; and
» Inflation rate of 3.3% (2022: 3.8%), estimated
based on Reserve Bank of Australia forecast and
rate for inflation.
The amount recognised as a provision is the best
estimate of the consideration required to settle
the present obligation at balance date, taking into
account the risks and uncertainties surrounding the
obligation. If the time value of money is material,
provisions are discounted using a current pre-tax
rate specific to the liability. The increase in the
provision resulting from the passage of time is
recognised as a finance cost.
68
Short-term employee benefits
Liabilities for employee benefits for wages, salaries
and annual leave represents present obligations
resulting from employees’ services provided to
balance date and are calculated at undiscounted
amounts based on remuneration wage and salary
rates that the Group expects to pay as at balance
date including related on-costs.
Rehabilitation costs
Mine rehabilitation costs will be incurred by the
Group either while operating, or at the end of
the operating life of, the Group’s facilities and
mine properties. The Group assesses its mine
rehabilitation provision at each balance date.
The Group recognises a rehabilitation provision
where it has a legal and constructive obligation as
a result of past events, and it is probable that an
outflow of resources will be required to settle the
obligation, and a reliable estimate of the amount
of the obligation can be made. The nature of these
restoration activities includes dismantling and
removing structures; rehabilitating mines and
tailings dams; dismantling operating facilities;
closing plant and waste sites; and restoring,
reclaiming and revegetating affected areas.
The obligation generally arises when the asset is
installed, or the ground/environment is disturbed at
the mining operation’s location. When the liability
is initially recognised, the present value of the
estimated costs is capitalised by increasing the
carrying amount of the related mining assets to
the extent that it was incurred as a result of the
development/construction of the mine.
Additional disturbances that arise due to
further development/construction at the mine
are recognised as additions or charges to the
corresponding assets and rehabilitation liability
when they occur.
Changes in the estimated timing of rehabilitation
or changes to the estimated future costs are dealt
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
with prospectively by recognising an adjustment
to the rehabilitation liability and a corresponding
adjustment to the asset to which it relates, if the
initial estimate was originally recognised as part
of an asset measured in accordance with AASB 116
Property, Plant and Equipment.
Significant judgements
Provision for rehabilitation
The Company assess its mine rehabilitation provision
annually. Significant judgement is required in
determining the provision for mine rehabilitation
and closure as there are many factors that will affect
the ultimate liability payable to rehabilitate the
mine sites, including future disturbances caused
by further development, changes in technology,
changes in regulations, price increases, changes in
social expectations, changes in timing of cash flows
which are based on life of mine plans and changes
in discount rates. When these factors change or
become known in the future, such differences will
impact the mine rehabilitation provision in the
period in which the change becomes known.
69
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
21. SHARE CAPITAL
30 June 2023
30 June 2023
30 June 2022
30 June 2022
Number
$’000
Number
$’000
Issued and paid-up capital
1,694,943,693
493,150
1,373,987,303
463,299
a. Movements in share capital
Balance as at 30 June 2021
Shares issued under share purchase plan
Shares issued under placement
Shares issued on vesting of performance rights
Shares issued under placement and institutional placement
Shares issued under retail entitlement offer
Shares issued under retail entitlement offer
Cost of capital raising
Balance as at 30 June 2022
Shares issued on vesting of options & performance rights26
Shares issued under in-substance share option27
Shares issued under placement and institutional placement28
Cost of capital raising
Balance as at 30 June 2023
Number
968,763,876
4,382,393
588,236
490,000
254,831,849
2,726,633
142,204,316
-
$’000
443,696
745
100
92
12,742
136
7,110
(1,322)
1,373,987,303
463,299
3,845,722
50,000,000
267,110,668
-
1,694,943,693
833
-
30,050
(1,032)
493,150
The Company does not have authorised capital or par value in respect of its issued shares.
b. Rights of each type of share
Ordinary shares participate in dividends and
the proceeds on winding up of the parent entity
in proportion to the number of shares held. At
70
shareholders’ meetings each ordinary share gives
entitlement to one vote when a poll is called.
c. Share options and performance rights
Employee share scheme
The Group continued to offer employee participation
in shortterm and longterm incentive schemes as part
d. Dividends paid or proposed
of the remuneration packages for the employees of
the Group. Refer to Note 31 for further information.
No dividends were paid or proposed during the
current or previous financial year. No dividends have
been proposed subsequent to the end of the current
financial year.
26. During the year 3,845,722 shares were issues as a result of the exercise of unlisted vested performance rights and options at nil
exercise price;
27. On 23 November 2022, 50,000,000 in-substance share options were issued to the Managing Director at an exercise price of $0.035.
These share options are funded by a $1.75 million limited recourse, interest free loan payable by 30 June 2025. At 30 June 2025, if the
market value of each Share is less than $0.035, or employment has ceased, the 50,000,000 Shares will be relinquished to the Company
and the loan forgiven;
28. On 27 March 2023 the Company announced it was undertaking a capital raising for up to $30 million supported by existing shareholders
and new domestic and international institutional, professional, and sophisticated investors. The placement compromised the issue of
267,110,668 fully paid ordinary shares at an issue price of $0.1125 cents per share, raising $30 million (before costs). The placement was
settled in two tranches, with tranche one completed pursuant to the Company’s existing Placement capacity on 3 April 2023. Tranche
two completed on 15 June 2023, following shareholder approval at the EGM held on 9 June 2023.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
Accounting policies
Issued and paid-up capital is recognised at the fair
value of the consideration received by the Company.
Any transaction costs arising on the issue of ordinary
shares are recognised directly in equity as a
reduction of the share proceeds received.
22. RESERVES
Nature and purpose of reserves:
Financial assets at fair value through other
comprehensive income
This reserve is used to record fair value movements
in investments in listed equities through other
comprehensive income. They are not distributable.
Share based payments
The reserve is used to record the fair value of shares,
options or performance rights issued to directors
and employees as part of their remuneration. The
balance is transferred to share capital when options
or performance rights are exercised. The balance
is transferred to retained earnings when options or
performance rights expire.
Other contributed equity
This reserve reflects proceeds from shareholders in
their capacity as a shareholder. Refer to Note 19 for
further details.
23. REMUNERATION OF AUDITOR
During the year the following fees were paid or payable for services provided by the auditor, its related
practices and non-related audit firms:
a. KPMG
Auditing and reviewing the financial reports
b. Other auditors and their related network firms
Other statutory assurance services
30 June 2023
30 June 2022
$
$
152,500
152,500
1,500
1,500
136,171
136,171
71
-
-
Total auditor’s remunerations
154,000
136,171
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
24. COMMITMENTS
a. Exploration
The terms and conditions under which the Group
retains title to its various tenements oblige it to
meet the tenement rentals and minimum levels of
exploration expenditure as gazetted by the Western
Australian government, as well as local government
rates and taxes.
Exploration expenditure commitments represent
these obligations as the Group intends to retain
tenure on all exploration and prospecting licenses
in which it has an interest.
The exploration commitments of the Group not
provided for in the consolidated financial statements
and payable are as follows:
Amounts paid or due and payable:
Within one year
Between two and five years
b. Capital
30 June 2023
30 June 2022
$’000
1,141
2,479
3,620
$’000
1,053
2,362
3,415
Significant capital expenditure at the end of the reporting period but not recognised as liabilities is as follows:
Amounts paid or due and payable to:
Within one year
Between two and five years
25. SEGMENT INFORMATION
30 June 2023
30 June 2022
$’000
4,351
585
4,936
$’000
416
-
416
72
An operating segment is a component of the Group
that engages in business activities from which it
may earn revenues and incur expenses, including
revenues and expenses that relate to transactions
with any of the Group’s other components. The Group
has one operating segment, being gold production
and exploration in Western Australia. The Group
does not have customers other than the Perth Mint
and ABC Refinery, and all the Group’s assets and
liabilities are located within Western Australia. Group
performance is evaluated based on the financial
position and operating profit or loss and is measured
on a consistent basis with the information contained
in the consolidated financial statements. As such,
no additional information is provided to that already
contained in the consolidated financial statements.
Major customers
During the year ended 30 June 2023, revenue was
derived from sales from only two customers:
» Perth Mint: $96.8 million (2022: $154.2 million);
and
» ABC Refinery: $39.1 million (2022: nil).
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
26. RELATED PARTY TRANSACTIONS
a. Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Share-based payments
b. Individual directors and executives’ compensation disclosures
30 June 2023
30 June 2022
$
2,168,751
153,439
3,983,178
6,305,368
$
2,855,019
188,373
1,059,371
4,102,763
Information regarding individual directors and
executive’s compensation and some equity
instruments disclosures as permitted by
Corporations Regulations 2M.3.03 is provided in
the Remuneration Report section of the Directors’
Report.
27. FINANCIAL RISK MANAGEMENT
The Group’s principal financial assets comprise cash
and trade and other receivables that arises directly
from its operations. The Group’s principal financial
liabilities comprise trade payables & borrowings.
The main purpose of these financial instruments is
to manage cash flow and assist the Group in its daily
operational requirements.
The Group is exposed to the following financial risks
in respect to the financial instruments that it held at
the end of the year:
a. Interest rate risk
Interest rate risk is the risk that the fair value or
future cash flows of a financial instrument will
fluctuate as a result of changes in market
interest rates.
Fixed rate instruments
Lease liabilities
Borrowings
Variable rate instruments
Cash and cash equivalents
During the year 82,949,572 performance rights
were awarded to KMP. Refer Note 32 and the
Remuneration Report for further details of related
party transactions.
» Interest rate risk;
» Liquidity risk; and
» Credit risk.
The directors have overall responsibility for
identifying and managing operational and
financial risks.
At balance date, the interest rate profile of the
Group’s interest-bearing financial instruments are:
73
30 June 2023
30 June 2022
$’000
$’000
20,869
10,930
31,799
24,340
-
24,340
24,729
27,755
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
An increase/decrease of 1% in the interest rate
applicable to the interest-bearing financial
instruments at balance date would result in an
increase/decrease in net loss of $0.2 million for the
year ended 30 June 2023 (2022: an increase/decrease
in net profit of $0.3 million). This analysis assumes
that all other variables remain constant.
b. 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. The Group manages
liquidity risk by maintaining adequate cash reserves
from funds generated from operations and by
continuously monitoring forecast and actual cash
flows.
Maturity analysis
The tables below represent the undiscounted
contractual settlement terms for financial
instruments and the Group’s expectation for
settlement of maturities:
30 June 2023
< 12 months
1-5 years
> 5 years
Total contractual
cash flows
Carrying amount
Trade and other payables
Lease liabilities
Borrowings
Net maturities
$’000
31,803
9,939
-
41,742
$’000
-
12,902
12,952
25,854
$’000
-
-
-
-
$’000
31,803
22,841
12,952
67,596
$’000
31,803
20,869
10,930
63,602
30 June 2022
< 12 months
1-5 years
> 5 years
Total contractual
cash flows
Carrying amount
Trade and other payables
74
Lease liabilities
Net maturities
c. Credit risk
$’000
19,537
14,060
33,597
$’000
50
11,081
11,131
$’000
-
-
-
$’000
19,587
25,141
44,728
$’000
19,587
24,340
43,927
Credit risk is the risk that a counterparty will not
meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The
Group is exposed to credit risk from its operating
activities (primarily trade and other receivables).
Exposure to credit risk associated with its financing
activities arising from deposits with banks and
financial institutions, foreign exchange transactions
and other financial instruments is not considered to
be significant.
Trade and other receivables
Customer credit risk is managed subject to the
Group’s established policy, procedures and control
relating to customer credit risk management. The
Group trades only with recognised creditworthy third
parties. The Group’s only customers are the Perth
Mint and ABC Refinery. At 30 June 2023 the Group’s
exposure to credit risk associated with this customer
and trade receivables is not significant. The
maximum exposure to credit risk for trade and other
receivables at the balance date is the carrying value
of each class of financial assets. The Group does not
hold collateral as security.
Cash and cash equivalents
The Group limits its exposure to credit risk by only
investing in liquid securities with major Australian
financial institutions.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
d. Fair values versus carrying values
The carrying value of cash and cash equivalents,
trade and other receivables and trade and other
payables is considered to be a fair approximation of
their fair values.
Market Risk
Foreign currency risk
The Group undertakes transactions impacted by
foreign currencies hence has exposure to exchange
rate fluctuations. The majority of the Group’s revenue
is affected by movement in USD:AUD exchange
Commodity price risk
The Group’s revenue is exposed to commodity price
fluctuations, in particular to gold prices. Price risk
relates to the risk that the fair value of future cash
flows of gold sales will fluctuate because of changes
in market prices, largely due to supply and demand
Given expected repayment date of September 2024,
the fair value and carrying value of borrowings is
materially consistent.
rates that impact on the Australian dollar gold price
whereas the majority of costs, including capital
expenditure, are denominated in Australian dollars.
factors for commodities and gold price commodity
speculation. The Group is exposed to commodity
price risk due to the sale of gold on physical delivery
at prices determined by markets at the time of sale.
28. INVESTMENTS IN CONTROLLED ENTITIES
The Company has control of the following subsidiaries:
Name of controlled entities
Country of incorporation
Monarch Nickel Pty Limited
Monarch Gold Pty Limited
Carnegie Gold Pty Limited
Siberia Mining Corporation Pty Limited
Eastern Goldfields Mining Services Pty
Limited
Controlled entities of Siberia Mining Corporation Pty Limited
Mt Ida Gold Operations Pty Limited
Ida Gold Operations Pty Limited
Pilbara Metals Pty Limited
Siberia Gold Operations Pty Limited
Holding company
Class
of shares
Equity holding %
2023
2022
Ordinary
Ordinary
Ordinary
Ordinary
100
80
100
100
100
80
100
100
Australia
Australia
Australia
Australia
Australia
Ordinary
100
100
75
Australia
Australia
Ordinary
Ordinary
Australia
Ordinary
Australia
Ordinary
100
100
100
100
100
100
100
100
The ultimate holding company of the Group is Ora
Banda Mining Limited, a company based in Western
Australia and listed on the Australian Securities
Exchange.
Accounting policies
Subsidiaries are entities controlled by the Group.
The Group controls an entity when it is exposed to,
or has rights to, variable returns from its involvement
with the entity and has the ability to affect those
returns through its power over the entity. The
financial statements of subsidiaries are included in
the consolidated financial statements from the date
that control commences until the date that control
ceases.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
29. CONTINGENT LIABILITIES
Net Smelter Royalty
As described in Note 19, the Company has entered an
agreement with Hawke’s Point to pay a capped net
smelter return (‘NSR’) royalty with respect to certain
gold products. This term of the royalty was amended
on 8 June 2023. The royalty is payable at 1.0% NSR
and is uncapped.
Legal Proceedings
On 30 June 2023, the Mining Warden dismissed (by
consent) applications for forfeiture relating to the
Lady Ida tenements, M16/262-264. Those tenements
are the subject of a sale agreement for non-core
Lady Ida Tenements for $10 million that completed
on 19 September 2023.
Carnegie Gold Pty Ltd, a wholly owned subsidiary of
the Company, remains a party to a Supreme Court of
30. CASH FLOW STATEMENT
This arrangement is a contingent liability and,
therefore, no liability has been recorded on the
Statement of Financial Position specific to a royalty
charge under the arrangement until the gold is
produced.
Western Australia proceeding by Riverina Resources
Pty Ltd & Greenstone Resources Limited. On 15 May
2023, Riverina Resources and Greenstone Resources
were ordered by the Court to file particulars of their
claim, but they have not yet done so, and Carnegie
Gold has not been required to file a defence to any
allegation by them.
76
a. Reconciliation of cash and cash equivalents
Cash balances comprise:
Cash and cash equivalents
For the purposes of the cash flow statement, cash and cash
equivalents consist of cash and cash equivalents as defined
above, net of outstanding bank overdrafts and credit card
balances.
b. Reconciliation of net cash outflows from operating activities
to loss after income tax
Loss after income tax
Adjusted for non-cash items:
Depreciation and amortisation
Impairment expense
Accretion of rehabilitation provision
Share-based payments
Profit on sale of property, plant and equipment
NRV adjustment
Gain on sale of subsidiary
Changes in operating assets and liabilities:
Decrease in receivables
(Increase) in inventories
(increase)/decrease in other assets
(Decrease)/increase in payables and provisions
Net cash outflow from operating activities
30 June 2023
30 June 2022
$’000
$’000
24,729
27,755
(44,125)
(87,936)
17,646
-
664
7,120
(1,967)
142
-
(5,237)
(473)
(196)
2,959
(23,467)
41,715
77,797
126
1,289
(31)
10,931
(12,448)
161
(4,907)
(249)
(1,711)
24,737
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
31. LOSS PER SHARE
Loss used in the calculation of basic & diluted loss per share
Weighted average number of ordinary shares on issue
used in the calculation of basic earnings per share
Effect of dilution29:
Weighted average number of ordinary shares
on issue adjusted for the effect of dilution
Basic loss per share
Diluted loss per share
30 June 2023
30 June 2022
$’000
(44,125)
$’000
(87,936)
Number
Number
1,367,656,798
1,095,341,781
-
-
1,367,656,798
1,095,341,781
(3.23)
(3.23)
(8.03)
(8.03)
Accounting policies
Basic EPS is calculated as profit attributable to
ordinary shareholders of the Company divided by the
weighted average number of ordinary shares.
Diluted EPS is determined by adjusting the profit
attributable to ordinary shareholders and the
weighted average number of ordinary shares
outstanding for the effects of all dilutive potential
ordinary shares, including options and performance
rights granted to directors and employees.
77
29. A total of 152,962,512 option and performance rights were on issue at 30 June 2023 (30 June 2022: 47,756,258). They have not been
accounted for in the above diluted earnings per share calculations as the Group is in a loss position.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
32. SHARE-BASED PAYMENTS
Equity-settled share-based payments are provided
to directors, employees, consultants and other
advisors. The issue to each individual director,
employee, consultant or advisor is controlled by the
board and ASX Listing Rules. Terms and conditions of
the payments are determined by the board, subject
to approval where required.
During the year ended 30 June 2023, a share-based
payment expense of $7,119,719 (30 June 2022:
$1,289,078) was recognised in the profit or loss.
The below table provides movements in total options
and rights held during the year.
Movement in options & performance rights during the year
Balance at beginning of the year
Granted during the year
Exercised/lapsed during year
Forfeited/cancelled during the year
Closing balance at end of the year
2023
Number
2022
Number
47,756,258
36,337,005
140,052,533
24,597,943
(3,845,721)
(490,000)
(31,000,558)
(12,688,690)
152,962,512
47,756,258
Retention rights
During the year, the Company issued 26,450,000
retention incentive rights to KMP and senior
management. The only condition attached to these
incentive rights is service period and hence the fair
value is determined based on the share price on
grant date. The fair value of these issues at grant
date is as follows:
Grant Date
Number issued
Vesting date
Fair value on grant date
5 August 2022
9 June 2023
9 June 2023
23,950,000
500,000
2,000,000
30 June 2023
31 January 2026
30 June 2025
$0.07
$0.14
$0.14
78
Short term incentive (‘STI’) rights
During the year the Company issued 8,571,429 STI
rights to the Company’s Managing Director. The STI
rights will vest upon achieving various non-market
operational and individual goals, specifically around
sustainability, production targets, cost reduction and
individual performance against Company strategies.
Grant Date
Number issued
Vesting date
Fair value on grant date
23 November 2022
8,571,429
30 June 2023
$0.08
Based on FY23 results achieved, total award on vesting date was 40%, resulting in 3,428,571 performance
rights vesting and 5,142,858 STI rights being cancelled.
Long term incentive (‘LTI’) rights
During the year the Company issued 105,031,104
LTI rights to the Managing Director and senior
management, including other key management
personnel. In addition, as discussed in Note 21,
50,000,000 in-substance share options were also
issued to the Managing Director.
The fair value of LTI performance rights at grant date
is independently determined using a Monte Carlo
simulation model (market based vesting conditions)
and a Black Scholes Model (non-market vesting
conditions) that takes into account the term of the
performance rights, the impact of dilution (where
material), the share price at grant date and expected
volatility of the underlying share, the expected
dividend yield, the risk-free rate for the term of
the performance right and the correlations and
volatilities of the peer group companies.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
The model inputs for the LTI performance rights granted during the year included:
Managing Director rights &
in-substance share options
Loan Shares
Tranche 1
Tranche 2
Sign-on Rights
RTSR30
Rights
ATSR31
Rights
Underlying security share price at grant
date
Exercise price
Grant date
Vesting date
Expiry date
Risk-free rate
Volatility
Dividend yield
$0.08
$0.08
$0.08
$0.08
$0.08
$0.035
Nil
Nil
Nil
Nil
23-Nov-22
23-Nov-22
23-Nov-22
23-Nov-22
23-Nov-22
30-Jun-25
31-Dec-23
30-Jun-25
30-Jun-25
30-Jun-25
30-Jun-25
23-Nov-27
23-Nov-27
23-Nov-27
23-Nov-27
3.27%
3.17%
3.27%
3.27%
3.27%
80%
Nil
80%
Nil
80%
Nil
80%
Nil
80%
Nil
Number of performance rights granted
50,000,000
25,000,000
25,000,000
8,000,000
3,428,572
Valuation per performance right
$0.056
$0.063
$0.061
$0.079
$0.058
Fair value per performance right class
$2,800,000
$1,575,000
$1,525,000
$632,000
$198,857
Senior Management
Performance rights
$0.14
Nil
20-Mar-23
30-Jun-25
28-Jun-30
2.83%
85%
Nil
43,602,532
$0.138
$6,017,149
79
and 1 July 2021 to 30 June 2024 (20,153,449 rights).
The fair value of the RTSR performance rights was
estimated as at the date of grant using a Monte-Carlo
simulation model taking into account the terms and
conditions upon which the performance rights were
granted.
Underlying security share price at grant date
Exercise price
Grant date
Vesting date
Expiry date
Risk-free rate
Volatility
Dividend yield
Number of performance rights granted
Valuation per performance right
Fair value per performance right class
Prior year
A total of 24,597,943 unlisted performance rights
were granted during the year ended 30 June 2022.
The performance rights are subject to a vesting
condition based on RTSR, whereby the Company’s
total shareholder return is measured relative to
the returns of a peer group over the performance
period 1 July 2020 to 30 June 2023 (4,444,494 rights)
30. * RTSR = relative total shareholder return
31. ** ATSR = absolute total shareholder return
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
Performance Right Class
Underlying security share price at grant date
Exercise price
Grant date
Vesting date
Expiry date
Risk-free rate
Volatility
Dividend yield
Number of performance rights granted
Valuation per performance right
Fair value per performance right class
Accounting policies
RTSR
$0.074
Nil
RTSR
$0.062
Nil
26/11/2021
16/12/2021
30/06/2023
30/06/2024
30/06/2026
30/06/2026
0.53%
80%
Nil
1.00%
80%
Nil
4,444,494
20,153,449
$0.038
$0.038
$168,891
$765,831
The grant date fair value of equity-settled share-
based payment awards granted to directors and
employees is generally recognised as an expense,
with a corresponding increase in equity, over the
vesting period of the awards. The amount recognised
as an expense is adjusted to reflect the number of
awards for which the related service and non-market
performance conditions are expected to be met,
such that the amount ultimately recognised is based
on the number of awards that meet the related
service and non-market performance conditions at
the vesting date. For share-based payment awards
with non-vesting conditions, the grant date fair
value of the share-based payment is measured to
reflect such conditions and there is no true-up for
differences between expected and actual outcomes.
80
33. EVENTS AFTER BALANCE DATE
Subsequent to the period ended 30 June 2023,
the Company announced:
» The completion of the non-core Lady Ida
tenements sale to Lamerton Pty Ltd and Geoda Pty
Ltd, upon the receipt of $9 million (excluding GST)
on 19 September 2023 and subsequent transfer of
title to tenements.
Apart from the above, no other matters have arisen
since the end of the financial year that impact
or are likely to impact the results of the Group in
subsequent financial periods.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 FINANCIAL REPORT
34. PARENT ENTITY INFORMATION
a. Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Equity
Contributed equity
Accumulated losses
Reserves
Total equity
b. Financial performance
Loss for the year
Total comprehensive (loss) for the year
c. Contingent liabilities and commitments
Commitments and contingent liabilities identified
are as per those detailed within Notes 24 and 29 of
this report.
d. Deed of cross guarantee
Ora Banda Mining Limited and the following entities
are parties to a deed of cross guarantee (which
was executed on 26 June 2018 and lodged with the
Australian Securities and Investments Commission)
under which each Company guarantees the debts of
the others:
» Monarch Nickel Pty Limited;
» Carnegie Gold Pty Limited;
» Siberia Mining Corporation Pty Limited;
» Mt Ida Gold Operations Pty Limited;
» Ida Gold Operations Pty Limited;
» Pilbara Metals Pty Limited; and
» Siberia Gold Operations Pty Limited.
30 June 2023
30 June 2022
$’000
$’000
30,030
31,655
61,685
19,722
10,930
30,652
493,150
(474,085)
11,968
31,033
(44,125)
(44,178)
32,920
16,200
49,120
14,285
-
14,285
463,299
(431,213)
2,749
34,835
(87,937)
(87,937)
81
By entering into the deed, the wholly owned entities
have been relieved from the requirement to prepare
financial statements and a Directors’ Report under
Corporations Instrument 2016/785 issued by the
Australian Securities and Investments Commission.
The above companies represent a ‘Closed Group’
for the purposes of the Corporations Instrument,
and as there are no other parties to the deed of
cross guarantee that are controlled by Ora Banda
Mining Limited, they also represent the ‘Extended
Closed Group’. As the Extended Closed Group
includes all material subsidiaries of Ora Banda
Mining Limited, there is no difference between the
Consolidated Statement of Profit or Loss and Other
Comprehensive Income and Consolidated Statement
of Financial Position of the Ora Banda Mining Limited
consolidated entity and the Extended Closed Group.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 DIRECTORS' DECLARATION
1.
In the opinion of the directors of Ora Banda Mining Limited and its
controlled entities:
a. the Group’s consolidated financial statements and notes set out on
pages 44 to 81 are 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 2023 and of its performance, for the financial year ended
on that date; and
ii. complying with Australian Accounting Standards and the
Corporations Regulations 2001;
b. the financial report also complies with International Financial
Reporting Standards as set out in Note 1;
c. there are reasonable grounds to believe that the Group will be able to
pay its debts as and when they become due and payable; and
d. at the date of this declaration, there are reasonable grounds to
believe that the Company and the subsidiaries identified in Note 28,
will be able to meet any obligations or liabilities to which they are
or may become subject to by virtue of the Deed of Cross Guarantee
between the Company and those subsidiaries.
2.
The directors have been given the declarations required by Section 295A
of the Corporations Act 2001 from the Chief Executive Officer and Chief
Financial Officer for the financial year ended 30 June 2023.
Signed in accordance with a resolution of directors made pursuant to section
295(5)(a) of the Corporations Act 2001.
On behalf of the directors
Peter Mansell
Chairman
Perth, Western Australia
28 September 2023
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INDEPENDENT AUDITOR’S REPORT
83
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INDEPENDENT AUDITOR’S REPORT
84
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Independent Auditor’s Report To the shareholders of Ora Banda Mining Limited Report on the audit of the Financial Report Opinion We have audited the Financial Report of Ora Banda Mining Limited (the Company). In our opinion, the accompanying Financial Report of the Company is in accordance with the Corporations Act 2001, including: • Giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its financial performance for the year ended on that date; and • Complying with Australian Accounting Standards and the Corporations Regulations 2001. The Financial Report comprises: • Consolidated statement of financial position as at 30 June 2023; • Consolidated statement of profit or loss and other comprehensive income, Consolidated statement of changes in equity, and Consolidated statement of cash flows for the year then ended; • Notes including a summary of significant accounting policies; and • Directors’ Declaration. The Group consists of the Company and the entities it controlled at the year-end or from time to time during the financial year. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 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 fulfilled our other ethical responsibilities in accordance with these requirements. Key Audit Matters The Key Audit Matters we identified are: • Going concern basis of accounting; and • Valuation of ore stocks and gold in circuit inventories. 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. INDEPENDENT AUDITOR’S REPORT
85
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 Going concern basis of accounting Refer to Note 1 to the Financial Report The key audit matter How the matter was addressed in our audit The Group’s use of the going concern basis of accounting and the associated extent of uncertainty is a key audit matter due to the high level of judgement required by us in evaluating the Group’s assessment of going concern and the events or conditions that may cast significant doubt on their ability to continue as a going concern. These are outlined in Note 1. The Directors have determined that the use of the going concern basis of accounting is appropriate in preparing the financial report. Their assessment of going concern was based on cash flow projections. The preparation of these projections incorporated a number of assumptions and significant judgements, and the Directors have concluded that the range of possible outcomes considered in arriving at this judgement does not give rise to a material uncertainty casting significant doubt on the Group’s ability to continue as a going concern. We critically assessed the levels of uncertainty, as it related to the Group’s ability to continue as a going concern, within these assumptions and judgements, focusing on the following: • The Group’s significant cash inflow assumptions; • Impact of future gold prices and foreign exchange rates to cash inflows projected; and • The Group’s planned levels of operational and capital expenditures, and the ability of the Group to manage cash outflows within available funding, particularly in light of recent loss making operations. In assessing this key audit matter, we involved senior audit team members who understand the Group’s business, industry and the economic environment it operates in. Our procedures included: • We analysed the cash flow projections by: • Evaluating the underlying data used to generate the projections. We specifically looked for their consistency, including gold prices and foreign exchange rates, with those used by the Directors, and their consistency with the Group’s intentions, as outlined in approved budgets and reforecasts, and their comparability to past practices. • Analysing the impact of reasonably possible changes in forecast cash flows and their timing, to the forecast cash positions. Assessing the resultant impact to the ability of the Group to pay debts as and when they fall due and continue as a going concern. The specific areas we focused on were informed from our test results of the accuracy of previous Group cash flow projections and sensitivity analysis on key cash flow projection assumptions. • Assessing the Group’s significant cash inflow assumptions, including alternative sources of funding, and judgements for feasibility and timing. We used our knowledge of the client, its industry, published views of market trends and conditions to assess the level of associated uncertainty. • Assessing the planned levels of operating and capital expenditures for consistency of relationships and trends to the Group’s historical results, particularly in light of the recent loss making operations, results since year end, and our understanding of the business, industry and economic conditions of the Group. • We evaluated the Group’s going concern disclosures in the financial report by comparing them to our understanding of the events and assumptions incorporated into the cash flow forecasts and accounting standard requirements. INDEPENDENT AUDITOR’S REPORT
86
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 Valuation of ore stocks and gold in circuit inventory ($11.5m) Refer to Note 12 to the Financial Report The key audit matter How the matter was addressed in our audit Valuation of ore stocks and gold in circuit is a key audit matter due to the: • Size of the ore stocks and gold in circuit inventory balance; • Current year net realisable value (“NRV”) write-down recognised of $9.0 million increasing our focus in this area; and • Application of judgement involved by the Group in determining the net realisable value. Such judgements may have a significant impact on the Group’s overall carrying value of ore stocks and gold in circuit inventories, necessitating additional audit effort. The most significant areas of judgement we focused on was in assessing the Group’s: • Expected gold selling price of inventory; and • Cost to convert ore stocks and gold in circuit inventory to gold bullion in saleable form. We involved our senior audit team members in assessing this key audit matter. Our procedures included: • Obtaining an understanding of the Group’s key processes for costing and valuation of ore stocks and gold in circuit inventory; • Assessing the Group’s accounting policy for determining the valuation of ore stocks and gold in circuit inventory against the requirements of the accounting standards and our understanding of the business; • Recalculating the NRV writedown being the difference between the cost to convert and net realisable value for each class of ore stocks and gold in circuit inventory; • Challenging the Group’s assumptions for future conversion costs and expected forecast gold selling price, using our understanding of the Group’s business and knowledge of the market; and • Assessing the disclosures in the Group’s financial report using our understanding obtained from our testing against the requirements of accounting standards. Other Information Other Information is financial and non-financial information in Ora Banda Mining Limited’s annual reporting which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible for the Other Information. Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion. In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we 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. We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report. INDEPENDENT AUDITOR’S REPORT
87
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 Responsibilities of the Directors for the Financial Report The Directors are responsible for: • Preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; • Implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and • Assessing the Group and Company’s ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the Financial Report Our objective is: • 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 Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They 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 the Financial Report. A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: 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 In our opinion, the Remuneration Report of Ora Banda Mining Limited for the year ended 30 June 2023 complies with Section 300A of the Corporations Act 2001. Directors’ 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 responsibilities We have audited the Remuneration Report included in pages 24 to 39 of the Directors’ report for the year ended 30 June 2023. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. KPMG R Gambitta Partner Perth 28 September ASX ADDITIONAL INFORMATION
ASX ADDITIONAL INFORMATION
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ASX ADDITIONAL INFORMATION
Tenement No.
Status
Registered Holder
Ownership
Location
E16/0344
E16/0456
E16/0473
E16/0474
E16/0475
Granted
SIBERIA MINING CORPORATION PTY LTD
Granted
SIBERIA MINING CORPORATION PTY LTD
Granted
CARNEGIE GOLD PTY LTD
Granted
CARNEGIE GOLD PTY LTD
Granted
CARNEGIE GOLD PTY LTD
E16/0480
Granted
CARNEGIE GOLD PTY LTD
E16/0482
E16/0483
E16/0484
E16/0486
E16/0487
E24/0203
E24/0234
Granted
SIBERIA MINING CORPORATION PTY LTD
Granted
SIBERIA MINING CORPORATION PTY LTD
Granted
SIBERIA MINING CORPORATION PTY LTD
Granted
SIBERIA MINING CORPORATION PTY LTD
Granted
SIBERIA MINING CORPORATION PTY LTD
Granted
ATRIPLEX PTY LIMITED
Granted
SIBERIA MINING CORPORATION PTY LTD
E29/0889
Granted
HERON RESOURCES LIMITED
E29/0955
Granted
SIBERIA MINING CORPORATION PTY LTD
E30/0333
Granted
CARNEGIE GOLD PTY LTD
E30/0335
Granted
CARNEGIE GOLD PTY LTD
E30/0338
Granted
CARNEGIE GOLD PTY LTD
E30/0454
Granted
CARNEGIE GOLD PTY LTD
E30/0468
Granted
CARNEGIE GOLD PTY LTD
E30/0490
Granted
CARNEGIE GOLD PTY LTD
E30/0491
Granted
CARNEGIE GOLD PTY LTD
E30/0504
Granted
CARNEGIE GOLD PTY LTD
E30/0565
Application
CARNEGIE GOLD PTY LTD
G30/0006
Granted
CARNEGIE GOLD PTY LTD
G30/0007
Granted
CARNEGIE GOLD PTY LTD
G30/0008
Granted
CARNEGIE GOLD PTY LTD
G30/0009
Granted
CARNEGIE GOLD PTY LTD
L15/0224
L16/0058
L16/0062
L16/0072
L16/0073
L16/0103
L16/0134
L16/0137
L16/0138
L16/0142
Granted
SIBERIA MINING CORPORATION PTY LTD
Granted
SIBERIA MINING CORPORATION PTY LTD
Granted
SIBERIA MINING CORPORATION PTY LTD
Granted
CARNEGIE GOLD PTY LTD
Granted
CARNEGIE GOLD PTY LTD
Granted
SIBERIA MINING CORPORATION PTY LTD
Granted
SIBERIA MINING CORPORATION PTY LTD
Granted
SIBERIA MINING CORPORATION PTY LTD
Granted
SIBERIA MINING CORPORATION PTY LTD
Application
SIBERIA MINING CORPORATION PTY LTD
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
Coolgardie
Coolgardie
Coolgardie
Coolgardie
Coolgardie
Coolgardie
Coolgardie
Coolgardie
Coolgardie
Coolgardie
Coolgardie
Kalgoorlie
Kalgoorlie
Menzies
Kalgoorlie
Menzies
Coolgardie
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Coolgardie
Coolgardie
Coolgardie
Coolgardie
Coolgardie
Coolgardie
Coolgardie
Coolgardie
Coolgardie
Coolgardie
89
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 ASX ADDITIONAL INFORMATION
Tenement No.
Status
Registered Holder
Ownership
Location
L24/0085
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
Granted
SIBERIA MINING CORPORATION PTY LTD
96/96
L24/0115
L24/0170
L24/0174
L24/0188
L24/0224
L24/0233
L24/0240
L24/0242
L24/0246
L30/0035
L30/0037
Granted
CARNEGIE GOLD PTY LTD
Granted
CARNEGIE GOLD PTY LTD
Granted
SIBERIA MINING CORPORATION PTY LTD
Granted
SIBERIA MINING CORPORATION PTY LTD
Granted
CARNEGIE GOLD PTY LTD
Granted
CARNEGIE GOLD PTY LTD
Granted
CARNEGIE GOLD PTY LTD
Granted
SIBERIA MINING CORPORATION PTY LTD
Granted
CARNEGIE GOLD PTY LTD
Granted
CARNEGIE GOLD PTY LTD
L30/0069
Granted
CARNEGIE GOLD PTY LTD
L30/0074
L30/0077
L30/0078
L30/0079
L30/0081
Granted
CARNEGIE GOLD PTY LTD
Granted
CARNEGIE GOLD PTY LTD
Granted
CARNEGIE GOLD PTY LTD
Granted
CARNEGIE GOLD PTY LTD
Granted
CARNEGIE GOLD PTY LTD
L30/0082
Granted
CARNEGIE GOLD PTY LTD
L30/0083
Application
CARNEGIE GOLD PTY LTD
L30/0086
Granted
CARNEGIE GOLD PTY LTD
L30/0088
Granted
CARNEGIE GOLD PTY LTD
90
L30/0096
Application
CARNEGIE GOLD PTY LTD
L30/0097
Application
CARNEGIE GOLD PTY LTD
L30/0098
Application
CARNEGIE GOLD PTY LTD
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
96/96
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
Kalgoorlie
Kalgoorlie
Kalgoorlie
Kalgoorlie
Kalgoorlie
Kalgoorlie
Kalgoorlie
Kalgoorlie
Kalgoorlie
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
M16/0262
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
M16/0263
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
M16/0264
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
M16/0268
Granted
CARNEGIE GOLD PTY LTD
M16/0470
Granted
CARNEGIE GOLD PTY LTD
M24/0039
Granted
CHARLES ROBERT GARDNER
M24/0115
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
100/100
96/96
96/96
Coolgardie
Coolgardie
Kalgoorlie
Kalgoorlie
M24/0159
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0208
Granted
SIBERIA MINING CORPORATION PTY LTD
96/96
Kalgoorlie
M24/0376
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0634
Granted
HERON RESOURCES LIMITED
M24/0660
Granted
HERON RESOURCES LIMITED
100/100
100/100
Kalgoorlie
Kalgoorlie
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 ASX ADDITIONAL INFORMATION
Tenement No.
Status
Registered Holder
Ownership
Location
M24/0663
Granted
HERON RESOURCES LIMITED
M24/0664
Granted
HERON RESOURCES LIMITED
100/100
100/100
Kalgoorlie
Kalgoorlie
M24/0665
Granted
HERON RESOURCES LIMITED / IMPRESS ENERGY 90/100 & 10/100
Kalgoorlie
M24/0683-I
Granted
HERON RESOURCES LIMITED
M24/0686
Granted
HERON RESOURCES LIMITED
M24/0757
Granted
HERON RESOURCES LIMITED
M24/0772-I
Granted
HERON RESOURCES LIMITED
M24/0797
Granted
HERON RESOURCES LIMITED
100/100
100/100
100/100
100/100
100/100
Kalgoorlie
Kalgoorlie
Kalgoorlie
Kalgoorlie
Kalgoorlie
M24/0845
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0846
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0847
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0848
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0915-I
Granted
HERON RESOURCES LIMITED
M24/0916
Granted
HERON RESOURCES LIMITED
100/100
100/100
Kalgoorlie
Kalgoorlie
M24/0960
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0973
Application HERON RESOURCES LIMITED
M24/1002
Application
ATRIPLEX PTY LIMITED
M30/0102
Granted
CARNEGIE GOLD PTY LTD
M30/0103
Granted
CARNEGIE GOLD PTY LTD
M30/0111
Granted
CARNEGIE GOLD PTY LTD
M30/0123
Granted
CARNEGIE GOLD PTY LTD
M30/0126
Granted
CARNEGIE GOLD PTY LTD
M30/0157
Granted
CARNEGIE GOLD PTY LTD
M30/0187
Granted
CARNEGIE GOLD PTY LTD
M30/0253
Granted
CARNEGIE GOLD PTY LTD
M30/0255
Granted
CARNEGIE GOLD PTY LTD
M30/0256
Granted
CARNEGIE GOLD PTY LTD
P16/2921
Granted
CARNEGIE GOLD PTY LTD
P16/2922
Granted
CARNEGIE GOLD PTY LTD
P24/4395
Granted
HERON RESOURCES LIMITED
P24/4396
Granted
HERON RESOURCES LIMITED
P24/4400
Granted
HERON RESOURCES LIMITED
P24/4401
Granted
HERON RESOURCES LIMITED
P24/4402
Granted
HERON RESOURCES LIMITED
P24/4403
Granted
HERON RESOURCES LIMITED
91
100/100
100/100
100/100
100/100
100/100
100/100
100/100
96/96
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
Kalgoorlie
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Coolgardie
Menzies
Coolgardie
Menzies
Coolgardie
Coolgardie
Kalgoorlie
Kalgoorlie
Kalgoorlie
Kalgoorlie
Kalgoorlie
Kalgoorlie
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 ASX ADDITIONAL INFORMATION
Tenement No.
Status
Registered Holder
Ownership
Location
P24/5073
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
P24/5074
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
P24/5075
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
P24/5536
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
P24/5537
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
Tenement Acquisitions & Disposals
Mining Tenements Disposed:
» L30/66 surrendered 21 December 2022
Mining Tenement Applications:
» E30/565 applied for on 12 April 2023
» L30/96 applied for on 12 April 2023
» L30/97 applied for on 13 April 2023
» L30/98 applied for on 17 April 2023
» M24/1002 applied for on 10 August 2022
Beneficial interests (%) in “Farm In” or “Farm Out”
agreements acquired or disposed:
Pursuant to the Tenement Sale Agreement dated
20 March 2023 between Siberia Mining Corporation
Pty Ltd, Carnegie Gold Pty Ltd and Beacon Mining
Pty Ltd, the Company sold the following tenements
to Beacon Mining Pty Ltd, but retained full and
exclusive rights to all mineral resources other than
gold and silver. The Transaction was completed on
20 June 2023;
Mining Tenements Granted:
» E24/234 granted on 17 May 2023
» G30/6 granted on 31 August 2023
» G30/7 granted on 31 August 2023
» L16/134 granted on 31 July 2023
» L16/137 granted on 31 July 2023
92
» L16/138 granted on 31 July 2023
» L24/242 granted on 31 July 2023
» L24/246 granted on 28 July 2023
» L30/77 granted on 15 August 2023
» L30/78 granted on 31 July 2023
» L30/79 granted on 31 July 2023
» L30/81 granted on 31 July 2023
» L30/82 granted on 31 July 2023
» L30/86 granted on 15 August 2023
» P24/5536 granted on 17 May 2023
» P24/5537 granted on 17 May 2023
Stock Exchange Listing
» E16/475
» E16/483
» E16/484
» E16/486
Pursuant to the Deed of Amendment and
Restatement Tenement Sale Agreement dated
12 May 2023 between Siberia Mining Corporation
Pty Ltd, Lamerton Pty Ltd and Geoda Pty Ltd,
the Company sold the following tenements to
Lamerton Pty Ltd and Geoda Pty Ltd in equal shares
of 50/100ths, but retained full and exclusive rights
to all mineral resources other than gold and
silver. The Transaction was completed on
19 September 2023;
» L15/224
» L16/58
» L16/62
» L16/103
» L16/138
» L16/142
» M16/262
» M16/263
» M16/264
Ora Banda Mining Limited’s shares are listed on the Australian Securities Exchange Limited (ASX).
The Company’s ASX code is OBM.
ORA BANDA MINING LIMITED ANNUAL REPORT 2023 1.
2.
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15.
16.
ASX ADDITIONAL INFORMATION
Listing of Top Twenty Shareholders
The names of the 20 largest holders, the number of equity securities each holds and the percentage of issued
capital each holds (as at 21 September 2023) are set out below:
Rank Name
CITICORP NOMINEES PTY LIMITED
Units %of Units
722,722,329
42.46
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
273,760,462
16.08
LUKE ANDREW CREAGH
MR HENDRICUS INDRISIE
BNP PARIBAS NOMS PTY LTD
19.
L & E FISHER NOMINEES PTY LTD Continue reading text version or see original annual report in PDF
format above