ANNUAL REPORT
2024
OUR WHY
Ore-some Rocks, Awesome People – Exploring, Developing and Delivering
Creating unparalleled growth, sustainably – Building the next mid tier miner
OUR ASPIRATION
HOW WE OPERATE
OUR
VALUES
ZERO
HARM
TEAM WITH
A WINNING
MINDSET
PURSUE
SOLUTIONS WITH
INTENT
ACCEPT THE
CHALLENGE TO
CREATE VALUE
3
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
Davyhurst Project – Belt scale project, covering 140 strike kms and 1,160 km² of highly prospective greenstone
belt on the doorstep of Kalgoorlie
Talented Board & Management Team – Results driven and focused on delivering
– Highly motivated and engaged employees, rating Ora Banda 4 out of 5 stars for employee experience over
a 12 month onboarding program
– 85% of employees would recommend Ora Banda as a great place to work
– Retention at record highs
Tier 1 jurisdiction – 3.45Moz gold endowment
(Historical Production of 1.5Moz @ 3.12g/t + Mineral Resources of 1.95Moz @ 2.6g/t)
DRIVE to 150 – aim to grow Ora Banda’s production profile to 140 – 160koz per annum by FY26
Shift to underground mining strategy implemented in FY25, resulting in projected production growth
Exploration Strategy
– $25 million exploration expenditure in FY25
– 3 x underground diamond drill rigs, 3 x surface drill rigs driving resource growth via the drill bit
– Strong multi commodity pipeline with numerous organic growth opportunities
– Exploration expenditure to ramp up in FY26
Well funded with exploration and growth capital spend provided by Ora Banda’s Riverina Underground
mine and existing cash at bank
Extensive infrastructure including 1.2 Mtpa processing plant, two accommodation villages,
gas generated + mains power, expansive road network and airstrips
OUR ADVANTAGE
VALUE CREATION
OUR THREE YEAR STRATEGY
SHORT TERM
Focus on the
fundamentals
MEDIUM TERM
Leverage organic
opportunities
LONG TERM
Performance
drives growth
Sustainable Performance – Guided by our values; delivered by our people
CORPORATE
DIRECTORY
DIRECTORS
Peter Mansell (Non-Executive Chairman)
Luke Creagh (Managing Director)
Alan Rule (Non-Executive Director)
Jo-Anne Dudley (Non-Executive Director)
Kathryn Cutler (Non-Executive Director)
COMPANY SECRETARIES
Susan Park
Doug Warden
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
4
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
CORPORATE DIRECTORY
2
OUR VALUES, OUR WHY, OUR ASPIRATION & OUR ADVANTAGE
4
CORPORATE DIRECTORY
6
CHAIRMAN’S LETTER
8
SUSTAINABILITY UPDATE
10
DIRECTORS' REPORT
27
REMUNERATION REPORT
45
MINERAL RESOURCE AND ORE RESERVE STATEMENT
50
AUDITOR’S INDEPENDENCE DECLARATION
52
FINANCIAL REPORT
53
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
54
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
55
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
56
CONSOLIDATED STATEMENT OF CASH FLOWS
57
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
90
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
92
DIRECTORS’ DECLARATION
93
INDEPENDENT AUDITOR'S REPORT
98
ASX ADDITIONAL INFORMATION
CONTENTS
5
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
CONTENTS
Dear Shareholder
I am pleased to present Ora Banda Mining Ltd's (‘Ora Banda’ or ‘Company’) annual
report for the year ended 30 June 2024 (‘FY24’).
This year was a period of major expansion for Ora Banda as it continued to deliver
on its strategy of becoming a high-grade, underground gold miner, with a focus on
value creation through organic growth opportunities.
Ora Banda produced 69,932oz of gold in FY24 at an AISC of A$2,767/oz, which
was a record year for the Company and was within production guidance of
67-73koz p.a. This production represented a 46% increase from the prior year and,
was pleasingly achieved with zero Lost Time Injuries. The uplift in performance
was driven by outstanding efforts by the Ora Banda team across every area of
the business. In addition, Riverina Underground ramped up and achieved steady
state performance in the June quarter, which resulted in a record gold production
quarter for the Company. Importantly, FY24 marked the completion of open
pit mining and the commencement of high-grade underground reflecting as a
significant turning point in the business.
Recognising this changing dynamic, Ora Banda’s FY25 guidance is 100-110koz with
an AISC of A$1,975/oz - A$2,125/oz. This is a 49% increase in production and ~25%
reduction in AISC/oz. This guidance reflects the Riverina Underground entering
commercial production, process plant initiatives and production from Sand King
Underground expected to commence in the second half of FY25.
These numbers are quite remarkable when read against my comments made on
these pages two years ago. Back then I lamented the Company’s poor production
performance, rising cost pressures and the lingering effects of COVID-19. Today,
I firmly believe that Ora Banda is entering a time of transformation - a growth
period where the value creation initiatives that have been built in the past 18
months, now become the profit drivers for the years ahead.
Whilst many Ora Banda shareholders have a good general understanding of their
business, I’d like to briefly get ‘into the weeds’ and talk more about the most
important actions taken in the past year and say how they fit into our future
thinking:
» Firstly, Ora Banda’s business improvements started with a clear focus on its
people, strategy and culture. Last year, the Company introduced a set of new
Core Values to underpin company-wide cultural improvement, as well as to
integrate sustainability and continuous improvement into everything we do.
The result has been a quantum shift in performance and with great buy-in to
the Company’s plans for the future. Ora Banda, with more than 180 employees,
is now seen as a “destination employer” and 85% of them would recommend
Ora Banda as a great place to work. That number will grow further as we
commission Sand King Underground and ramp up exploration.
CHAIRMAN’S
LETTER
CHAIRMAN'S LETTER
6
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
CHAIRMAN'S LETTER
» The construction and commissioning of the
Riverina Underground mine during the year was
a key achievement with the mine now the key
cornerstone of Ora Banda’s production profile in
FY25. Successful exploration drilling has extended
the high grade gold mineralisation along strike
and at depth which has in turn provided Ora Banda
with the confidence that the Riverina orebody
will continue to grow in size and scale such that
it will form a long term base load feed source for
the Davyhurst project. High-grade ore is now being
processed at the Davyhurst mill and this is a key
driver of our increasing gold production and lower
costs.
» The discovery of Sand King Underground
represents a welcome complement to Riverina
Underground as it means the business now has
the secondary ore source it needs to fill the
mill with high-grade ore. In July 2024 Sand King
Underground was approved by the Board with first
development ore expected in the December 2024
quarter. The mine, which is expected to cost
~A$39 million to develop will be funded from
existing cash and operating cash flows, with
a steady state production of ~60koz p.a.
commencing in the June 2025 quarter.
» Whilst Ora Banda is firmly focused on its gold
opportunities the Company has been fortunate
to attract a world-class joint venture partner
in Wesfarmers Chemicals, Energy & Fertilisers
('WesCEF') to investigate the lithium (and other
non-gold minerals) potential of the Company’s
ground holding. During the year WesCEF and
Ora Banda formalised and completed the joint
venture transaction with Ora Banda receiving $26
million in total cash consideration. WesCEF has
commenced its non-gold exploration work at the
Davyhurst JV Project and the Company will update
the market in due course.
» A key value driver is the outstanding exploration
potential of Ora Banda’s under explored yet highly
prospective landholding of over 1,160 square
kilometres. This year, we have had remarkable
success with the drill bit, with drilling at Riverina
extending the system in all directions. Likewise,
deeper drilling at Sand King not only extended the
known BD Lode, but also discovered the new high-
grade lodes to the north. These excellent results
will be followed up in FY25 with the Company
budgeting to spend ~$25 million expanding the
Riverina trend and Sand King’s mineralisation.
In July 2024, Ora Banda released its growth plan
called the DRIVE To 150. This plan, as the name
suggests, lifts the Company's gold production
outlook to 140 – 160koz in FY26 at a targeted AISC of
A$1,740/oz-$1,890/oz. The outlook is underpinned
by approximately $25 million in exploration and $63
million in capital expenditure in FY25.
When achieved, and assuming the gold price stays
robust, Ora Banda will be positioned to deliver
significant free cashflows. Just as importantly,
the Company will be well on its way to becoming
Australia’s next mid-tier gold miner.
In conclusion, I would like to take this opportunity to
thank my fellow Directors, our staff, contractors and
consultants for all of their efforts during what has
turned out to be a transformational year. I would also
like to thank our shareholders for their continued
support.
Peter Mansell
Chairman
CHAIRMAN'S LETTER
7
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
CHAIRMAN'S LETTER
SUSTAINABILITY
UPDATE
R
E
V
I
E
W
I
D
E
N
T
I
F
Y
A
S
S
E
S
S
M
O
N
I
T
O
R
This year Ora Banda committed to
building a strong foundation that
integrates environmental, social,
and governance (‘ESG’) principles
across our operations as we
continue to grow our sustainability
systems and integrating key areas
such as health and safety.
While developing robust sustainability systems
continues, our goals are clear: to operate
responsibly, minimise our environmental footprint,
and promote a workplace culture and environment
that supports the health, safety and well-being of
our people.
8
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
SUSTAINABILITY UPDATE
CURRENT YEAR STAND OUTS:
» + 2 Years Lost Time Injury Free - TRIFR of 10.8
» 570% Increase in lead indicators from FY23
to FY24; (hazards, inspections, safe act
observations etc)
» Completion of psychosocial risk assessments
across Ora Banda and contractor workgroups
» Highly motivated and engaged employees
» 85% of employees would recommend Ora
Banda as a great place to work
» Retention at record highs
Rehabilitation Snapshot
Before:
Missouri waste dump before rehabilitation works
After:
Missouri waste after shaping and topsoiling works
In FY24, we completed early work to further develop
robust sustainability systems through the following
activities:
» Having completed the Materiality Assessment
at the end of FY23, we have established the ESG
Working Group to support the strategic direction
needed to ensure Sustainability principles are
embedded into the business;
» Commenced mine site and progressive
rehabilitation at the Siberia and Sand King
Waste Rock Landforms. Fifty-seven (57) hectares
have been battered down and topsoil dressed,
with cross-ripping, revegetation, monitoring
and maintenance to continue in FY25 (refer
rehabilitation snapshots);
» Formally commenced a review of the Ora Banda
Management System Standards and supporting
Mine Safety Management System;
» Overhauled the Document Management System
ahead of an online conversion to support the Mine
Safety Management System in Q2-Q3 FY25;
» Completed an audit of our event management
systems to ensure data integrity and accuracy of
reporting; and
» Commenced a complete rewrite of the Ora Banda
Principal Hazard Management Plans.
We recognise that building a comprehensive sustainability system is an ongoing process and
are committed to regular reviews and updating of our practices to ensure they are effective
and meeting expectations. This involves setting measurable targets, monitoring our progress,
and adjusting our strategies as needed.
As an example, some of the strategic priorities in FY25 are to:
» Establish a Sustainability Committee chaired by
representation from the Board of Directors;
» Develop the FY25 Sustainability Report drawn from
our monitoring and reporting activities;
» Complete a review of the Ora Banda Environmental
Management System with a focus on continuous
improvement;
» Commence Landscape Functional Analysis (‘LFA’)
studies to ensure rehabilitations works are
achieving the required standard;
» Maintain our commitment to creating a safe
and healthy work environment while laying the
groundwork for broader sustainability initiatives;
» Maintain a strong focus on injury prevention
across our operations;
» Promote proactive and visible leadership that
continuously engages with the workforce;
» Monitor and audit our performance to ensure
compliance and continuous improvement;
» Foster a safety culture that encourages positive
behaviours, communicates lessons learned and
promotes and rewards excellence; and
» Hold all employees accountable for health and
safety performance, from the operational level
through to the Board of Directors.
9
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
SUSTAINABILITY UPDATE
DIRECTORS' REPORT
DIRECTORS'
REPORT
10
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
DIRECTORS' REPORT
11
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
DIRECTORS' REPORT
Directors
Peter Mansell
Non-Executive Chairman
QUALIFICATIONS
B.Com, LLB, H. Dip. Tax, FAICD
Appointed 22 June 2018
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.
» Other current ASX directorships:
– Nil
» Former ASX directorships in the last three years:
– Energy Resources Australia Limited (26 October 2015 - 6 October 2022)
– DRA Global Limited (appointed 16 September 2019 - 4 October 2023)
Luke Creagh
Managing Director/
Chief Executive Officer
QUALIFICATIONS
BsC (Mining Engineering)
Appointed Chief Executive
Officer 4 July 2022
Appointed Managing
Director
28 September 2022
Mr Creagh is a mining engineer with more than 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
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
The Directors of Ora Banda Mining Ltd (‘Ora Banda’, or ‘Company’) present their report on the results and state
of affairs of the Company and its controlled entities (‘Group’) for the year ended 30 June 2024 (‘FY24’).
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
12
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
DIRECTORS' REPORT
Directors
Jo-Anne Dudley
Non-Executive Director
QUALIFICATIONS
B.E. Mining Engineering
(Hons), Grad. Cert.
Technology Management,
FAusIMM (CP), MAICD
Appointed 3 October 2023
Ms Dudley is an accomplished and safety-focused mining engineer with over
25 years of experience in the global mining industry. Her expertise includes
merger and acquisition analysis, technical studies, major project experience
and assurance, and managing annual reporting of Mineral Resources and Ore
Reserves.
Ms Dudley’s prior experience as the Chief Operating Officer of TSX and NYSE
listed Turquoise Hill Resources adds dimension to her portfolio which also
includes the role of Senior Manager Strategic Mine and Resources Planning at
Rio Tinto Ltd’s Oyu Tolgoi Mine in Brisbane, Queensland and Mining Engineer
and Senior Mining Engineer at North Ltd’s Northparkes Mines.
» Other current ASX directorships:
– Nil
» Former ASX directorships in the last three years:
– Nil
Kathryn Cutler
Non-Executive Director
QUALIFICATIONS
Bs (Mining Geology and
Mineral Exploration); BSc
Honours (Applied Geology);
AusIMM
Appointed 8 July 2024
Ms Cutler is a professional geologist, who brings extensive mineral exploration
and resource development experience to the Company.
Ms Cutler has worked with private and public companies across her career
holding senior management roles with ASX-listed companies, Saturn Metals and
Aruma Resources. During these roles Ms Cutler was responsible for exploration
and resource growth at the Australian based gold projects.
» Other current ASX directorships:
– Killi Resources Limited (appointed 4 November 2021) – Chief Executive
Officer
» Former ASX directorships in the last three years:
– Nil
Joint Company Secretaries
Susan Park
QUALIFICATIONS
B.Com, ACA, F Fin, FGIA, FCIS,
GAICD
Appointed 2 April 2019
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.
Doug Warden
QUALIFICATIONS
B.Com, CA, MBA, AMP
Appointed 28 August 2024
Mr Warden has over 30 years’ experience in leading finance, strategy and
business development for ASX listed companies. His previous roles include CFO
of Iluka Resources Ltd, Resolute Mining Ltd and most recently Core Lithium Ltd.
Mr Warden began his career in corporate finance and restructuring with KPMG
and EY.
Gareth Jones
QUALIFICATIONS
FCCA, MBA, AGIA, ACIS
Appointed
6 February 2023
Ceased
6 September 2024
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.
13
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
DIRECTORS' REPORT
DIRECTORS’ INTERESTS IN SHARES, OPTIONS AND PERFORMANCE RIGHTS IN
ORA BANDA
Direct and indirect interests of the Directors and their related parties in the Company’s shares, options and
performance rights as at 25 September 2024 were:
Director
Fully paid shares
Unlisted options
Unlisted performance rights
Peter Mansell
10,481,529
-
-
Luke Creagh
62,317,460
-
66,421,979
Alan Rule
521,176
-
-
Jo-Anne Dudley
392,963
-
-
Kathryn Cutler
-
-
-
Further details of the vesting conditions applicable are disclosed in the remuneration report.
PRINCIPAL ACTIVITIES
The principal activities of the Company during the
financial year were mineral exploration, mining
operations, 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 120 km north-west of Kalgoorlie,
within the Tier 1 gold mining province of the Eastern
Goldfields.
This belts scale Project consists of six key
project hubs which collectively cover an area of
approximately 1,160 km2, extending 140km from
north to south (refer Figure 1 below). The tenement
package is highly prospective and covers the
convergence of two regionally significant deep-
seated structures known as the Zuleika Shear and
the Ida Fault.
FY24 has been transformational for the Company
on several fronts and headlined by Riverina
Underground ramping up to steady state production
by June 2024. Other key achievements include:
» Record gold production of 69.9koz, 46% higher
than the previous financial year;
» AISC/oz reduced by 10% to A$2,767;
» All planned processing plant upgrades completed;
» Open pit mining completed as scheduled;
» Riverina Underground ramped up to steady state
production (steady state defined as >4koz of stope
ounces mined);
» 4 consecutive quarters of production growth from
the Davyhurst plant;
» Exploration program discovered 2nd underground
mine at Sand King;
» Underground Resource & Reserve growth at Sand
King and Riverina, including a maiden reserve at
Sand King;
» Stockpiles at year end included high grade
Riverina ore at ~25kt at 3.7g/t for 2.9koz;
» Stabilised workforce – reduction in turnover from
72% rolling 12 months average to 32%; and
» Culture improvement – survey results: 85%
employees positively engaged.
14
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
DIRECTORS' REPORT
"
Shear Zone
Ida Fault
25 Kilometres
Zuleika
Ida Fault
Shear Zone
Zuleika
PERTH
WESTERN
AUSTRALIA
Leinster
Menzies
Kalgoorlie
FROGS LEG
KUNDANA
BULLANT
PADDINGTON
MENZIES
KALGOORLIE
COOLGARDIE
RIVERINA
CALLION
MISSOURI
SAND KING
WAIHI
DAVYHURST PLANT
1.2 Mtpa
RIVERINA
CALLION
MISSOURI
SAND KING
WAIHI
1.2 Mtpa
DAVYHURST PLANT
Shear Zone
Zuleika
OBM Tenure
Northern Star Resources
Evolution Mining
Norton Gold Fields
Black Mountain Gold
Mineral Occurences
NEIGHBOURING TENUR
Ultramafic Volcanic
Sedimentary Rock
Mafic Volcanic
Granitoid
LEGEND
Mineralised Trend
Mafic Intrusive
Figure 1: The Davyhurst Gold Project location map
15
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
DIRECTORS' REPORT
Figure 2: Forecast growth in ounces produced to FY26 and reduction in AISC
DRIVE TO 150
» With Sand King Underground approved to
support Riverina Underground, the Company’s
outlook is to deliver 140 – 160koz in FY26 at AISC
of A$1,740/oz - $A$1,890/oz.
» This represents a 40% year on year production
growth from FY23 to FY26 that should deliver
significant free cash flow in the current gold
price environment.
» FY26 exploration and growth capital is forecast at
A$60 - A$80 million; with drill testing set to occur
on numerous high grade exploration targets which
aims to drive future organic growth opportunities.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
0
FY23
FY25
FY26
FY24
(Actual)
(Actual)
(Guidance)
(Target)*
AISC (A$/oz)
Annual Production (oz)
Drive to 150
OP/Stockpiles
Riverina
Sand King
AISC / oz
*FY26 Target includes inferred resources
- Underground mining strategy takes effect in FY25
- Year-on-year growth of 40% from FY23 to FY26
- AISC cost/oz reducing ~34% from FY23 to FY25
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
16
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
DIRECTORS' REPORT
Table 1: FY25 & FY26 Guidance and outlook
FY25
FY261
Location
Low
High
Low
High
Riverina Underground (Reserve grade 4.2g/t)
77,000 oz
81,000 oz
95,000 oz
100,000 oz
Sand King Underground (Reserve grade 3.2g/t)
15,000 oz
21,000 oz
50,000 oz
55,000 oz
Stockpiles (Reserve grade 1.1g/t)
8,000 oz
8,000 oz
-
-
Guidance Range (oz)
100,000oz
110,000oz
140,000oz
160,000oz
AISC / oz (A$)
A$1,975/oz - A$2,125/oz
A$1,740/oz - A$1,890/oz
Tonnes milled
1,160,000
1,400,000
Exploration
A$25M
Exploration & Growth
Capital
A$60M - A$80M
Growth Capital Total (details below)
A$58M
Sand King Underground (pre production, max drawdown of ~$32m)
A$34M
Riverina Underground
A$10M
Process plant upgrades to target 1.4Mtpa
A$5M
Other Projects including airstrip and camp upgrades
A$9M
1.
FY26 Includes inferred resources.
Figure 3: Completion of open pit mining at Missouri
17
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
DIRECTORS' REPORT
MINING OPERATIONS
Table 2: Summary of mining activities during FY24
Davyhurst Gold Project
Operations Summary
Units
30-Jun-24
30-Jun-23
Change
Change %
OPEN PIT
Material Moved
BCM
1,954,411
3,406,117
(1,451,706)
-43%
Ore Mined
Tonnes
886,020
768,806
117,214
15%
Mined Grade
g/t
2.0
2.0
(0.0)
0%
Ounces Mined
oz
56,574
49,408
7,166
15%
UNDERGROUND
Riverina
Capital Development
Metres
3,401
-
3,401
100%
Operating Development
Metres
2,393
-
2,393
100%
Vertical Development
Metres
207
-
207
100%
Development Ore Mined
Tonnes
93,248
-
93,248
100%
Development Mined Grade
g/t
3.7
-
3.7
100%
Development Ounces Mined
oz
11,205
-
11,205
100%
Stope Ore Mined
Tonnes
38,808
-
38,808
100%
Stope Mined Grade
g/t
6.0
-
6.0
100%
Stope Ounces Mined
oz
7,536
-
7,536
100%
Mined Ore
Ore Mined
Tonnes
132,056
-
132,056
100%
Mined Grade
g/t
4.4
-
4.4
100%
Ounces Mined
oz
18,741
-
18,741
100%
Mined Ore (LG)
-
-
100%
Ounces Mined
oz
2,822
-
2,822
100%
Total Ounces Mined
oz
21,563
-
21,563
100%
PROCESSING
Milled Tonnes
Tonnes
1,041,097
1,070,972
(29,875)
-3%
Head Grade
g/t Au
2.2
1.5
0.7
47%
Recovery
%
92%
92%
0%
0%
Gold Produced
oz
67,357
48,023
19,334
40%
TOLL TREATMENT
Tonnes
Tonnes
67,419
-
67,419
100%
Head Grade
g/t Au
1.3
-
1.3
100%
Recovery
%
92%
-
92%
100%
Gold Produced
oz
2,575
-
2,575
100%
Total Gold Produced
oz
69,932
48,023
21,909
46%
Gold Sold
oz
67,255
49,928
17,327
35%
Average Price
A$/oz
3,185
2,719
466
17%
Revenue - Gold & Silver Sales
A$M
214.2
135.8
78.4
58%
18
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
DIRECTORS' REPORT
Open Pit Mining
Open pit mining recorded strong performance in
the year with production from both the Missouri and
Sand King pits benefiting from reduced strip ratios.
Open pit mining completed as scheduled during the
year with Sand King completing in January 2024 and
Missouri completing in April 2024.
Figure 4: Ore hauled from Missouri open pit
19
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
DIRECTORS' REPORT
Underground Mining
Operations at the Riverina Underground mine
continued to ramp up towards commercial
production, which commenced on 1 August 2024
following two consecutive months of steady state
production. During the year 5,794 development
metres (excluding vertical development) were
completed. This includes 2,393 metres of operating
development, of which 1,527 metres were completed
in the June 2024 quarter.
Stoping commenced in the main orebody and
performed in line with expectations achieving an
average mining width of <2.2 metres with excellent
ground conditions delivering minimal mining
dilution of 7%.
Geologically the lode widths and grades intersected
in the ore development drives continue to meet
and/or exceed the pre-mining expectation. The lode
geometry is regular and predictable, combining with
good ground conditions.
During the year 93,248t of development ore was
mined at a grade of 3.7g/t for 11,205oz. Stoping
commenced in December 2023, delivering 38,808t at
6.0g/t for 7,536oz for the year.
Figure 5: Monthly ounces mined from Riverina Underground showing ramp up to steady state production
Ounces Mined
Mined Grade
FY25 Guidance run-rate (Lower - 85.5koz for 77koz produced)
FY25 Guidance run-rate (Upper - 90.0koz for 81koz produced)
1,075
1,677
1,092
1,640
2,748
5,356
7,829
3.2
2.7
3.4
4.0
2.9
3.2
4.9
0
1.0
2.0
3.0
4.0
5.0
6.0
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Dec-23
Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
Mined Grade
Ounces Mined
June achieving mined tonnes,
grade and ounces in line with
required run-rate for FY25 guidance.
Underground Ounces Mined & Grade
Mined ounces run-rate for
upper end of FY25 guidance
Mined ounces run-rate for
lower end of FY25 guidance
20
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
DIRECTORS' REPORT
Processing
The Group successfully and safely completed all
planned processing and crushing circuit upgrades
during the year, which resulted in improved
throughput rates. Poor weather conditions and
road closures in June led to delays in the delivery
of reagents, plant consumables and maintenance
materials. This resulted in a 25kt reduction in milled
tonnes in the month of June 2024.
Despite adverse weather conditions in the back
end of the financial year, the Davyhurst mill still
delivered record production, with a total of 1,041kt
milled at 2.2g/t for 67,357oz produced, representing
a 40% increase from the prior year. The milled grade
for the reporting period (2.2g/t) represents a 47%
increase on the prior financial year (1.5g/t), driven by
introduction of higher-grade Riverina Underground
ore in Q4.
During the year, the Group also completed a third-
party toll treatment campaign at FMR Investments
Greenfields Mill. A total of 2,575oz was produced,
utilising excess lower grade stockpiles that did not
form part of the Davyhurst processing schedule.
Figure 6: Davyhurst 1.2Mtpa processing plant
21
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
DIRECTORS' REPORT
DRILLING PROGRAMS
Exploration and Resource Development
During the year, the Group spent $7.2 million
on exploration and $8.7 million on resource
development, focusing on high-grade underground
targets across the tenement package. Detailed
geochemistry studies also commenced to
complement the existing structural geology
understanding at key projects, including Sand King
and Riverina.
Sand King (Siberia)
The primary project during the year was the Indicated
Resource drill program at Sand King, with a total of
14,398 metres of diamond drilling and 3,526 metres
of reverse circulation drilling completed. Results
from the program resulted in Board approval of the
Sand King Final Investment Decision (‘FID’). Sand King
will become the Company’s second underground
mine at the Davyhurst Gold Project.
The Group achieved an increase in the total
Underground Mineral Resource for Sand King, from
110koz to 305koz, culminating in an Underground Ore
Reserve of 537kt at 3.2g/t for 55koz. The Sand King
deposit remains open along strike and down-plunge
and provides opportunities for mine life extension
from FY25 onwards.
Riverina Underground
A total of 29,698 metres of diamond drilling was
completed at Riverina. The drilling was focused on
grade control to better define the planned mining
areas and incrementally increase ounces within the
mining footprint. The Group achieved an increase in
the total Underground Mineral Resource Estimate
(Meas., Ind., Inf) for Riverina, from 303koz to 468koz,
culminating in an Underground Ore Reserve Estimate
of 0.64Mt at 4.2g/t for 87k oz.
The Riverina deposit remains open in all directions
and is a key strategic focus to increase the life
of mine by drilling from both the surface and
underground in FY25. Regionally, the highly
prospective Riverina trend can be traced along strike
for over 7.5km with the underground search space
being poorly tested as only 12% of all exploration
holes achieving depths of greater than 100 vertical
metres.
Lithium JV
WesCEF commenced lithium focussed on-ground
exploration activities across the entire tenement
package which included regional structural mapping
and framework modelling along with regional
detailed multi-element soil sampling programs.
These programs are aimed at generating quality
datasets and a deeper geological understanding of
the belt ahead of future targeting and drill testing.
22
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
DIRECTORS' REPORT
CORPORATE
Joint Venture
On 30 October 2023, the Group signed a lithium
focused joint venture ('JV') with Wesfarmers
Chemicals, Energy and Fertilisers ('WesCEF').
On 22 December 2023, the Group received $10.0
million cash consideration upon completion of
Tranche 1.
On 23 April 2024, the remaining conditions precedent
were satisfied and the final $16.0 million was
received on 29 April 2024.
Total proceeds received from WesCEF during FY24
were $26.0 million.
Riverina / Greenstone Dispute
On 23 February 2024, the Company announced details
of court proceedings against Riverina Resources Pty
Ltd ('Riverina Resources') and Greenstone Resources
Limited ('Greenstone'), who hold nickel rights over
tenements held by the Company. Those tenements
are also subject of the farm-in agreement between
the Company and Davyston Exploration Pty Ltd
(wholly owned subsidiary of WesCEF).
On 8 April 2024, the Company announced that all
claims in connection with the court dispute with
Riverina Resources and Greenstone had been
resolved to the mutual satisfaction of all parties,
by way of a $3.4 million cash payment by the
Company and the issue of $3.0 million in Ora Banda
shares (subject to escrow provisions).
Capital Raising
On 1 March 2024, the Company announced that it
had received firm commitments via an institutional
placement (‘Placement’) to raise gross proceeds
of A$30 million at an issue price of A$0.22 per new
share. The Placement was strongly supported
by new and existing international and domestic
institutional, professional and sophisticated
investors. To provide the necessary funding to allow
the Group to rapidly advance the underground
development of Sand King.
On 8 March 2024, a total of 136,363,637 ordinary fully
paid shares in Ora Banda were issued.
Other
During the year, following the successful completion
of the WesCEF JV deal and capital raising, the
Company repaid $7.0 million in debt to Hawke’s
Point, with the remaining $4.0 million debt owing
to be settled on the completion of the final royalty
documentation, which is expected in Q1 of FY25.
On 28 June 2024, the Company announced that
together with its wholly owned subsidiary Carnegie
Gold Pty Ltd (’Carnegie’), has entered into a deed
(’Termination Deed’) with AustSino Resources
Group Limited (‘AustSino’) to terminate a historical
royalty payable by Carnegie to AustSino (‘Royalty’).
The Royalty originates from a 1996 royalty deed
between AustSino and Consolidated Gold NL and was
assigned to Carnegie whereby Carnegie agreed to pay
Austsino a 6% gross revenue royalty in respect of gold
produced from tenements comprising part of the
Mulline – Riverina project area.
In consideration for the termination, the Company
paid AustSino $0.6 million in cash and issued
AustSino 1,091,614 fully paid ordinary shares in the
Company.
23
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
DIRECTORS' REPORT
GROUP FINANCIAL OVERVIEW
During the year, the Group sold 67,255oz of gold
at an average price of A$3,185 (30 June 2023:
49,928oz at average price of A$2,719). AISC for
the year was $2,767/oz sold, representing a 10%
reduction from the prior comparative period (30 June
2023: $3,065/oz).
Table 3: Group Financial Overview
Finance Summary
Units
Year ended
30-Jun-24
Year ended
30-Jun-23
Change
Change %
Revenue
$'000
214,236
135,888
78,348
58%
EBIT2
$'000
31,096
(41,743)
72,839
174%
EBITDA3
$'000
53,820
(23,956)
77,776
325%
Net profit after tax
$'000
27,569
(44,125)
71,694
162%
Cash flow from operations
$'000
36,250
(23,467)
59,717
254%
Cash flow from investing activities
$'000
(39,489)
(11,237)
(28,252)
251%
Growth capital
$'000
(69,091)
(16,726)
(52,365)
313%
Proceeds from disposal of assets
$'000
9,350
3,500
5,850
167%
Net proceeds from formation of joint
venture
$'000
20,180
-
20,180
100%
Other
$'000
72
1,989
(1,917)
-96%
Cash at bank
$'000
26,804
24,729
2,075
8%
Earnings per share
cents
1.62
(3.23)
4.85
150%
Profit
Revenue increased by 58% in FY24 from the prior
year to $214.2 million (30 June 2023: $135.9 million),
driven by:
» 17.3koz (35%) increase in ounces sold; and
» $466/oz (17%) increase in average realised sales
price.
The Group recorded a net profit after tax of
$27.6 million for the year (30 June 2023:
$44.1 million net loss) due largely to $25.0 million
from the net proceeds from the formation of
WesCEF JV ($16.0 million) and the completion of
the Lady Ida tenement sale ($9.0 million).
Balance sheet
Debt reduced from $11.0 million at 30 June 2023
to $4.0 million, whilst cash at bank increased $2.1
million to $26.8 million. This improved liquidity
position was driven by stronger operating cash flows
(FY24: $36.2 million; FY23: ($23.5 million)), which were
partially offset by an increase in investing cash flows
(FY24: $39.5 million; FY23: ($11.2 million)).
Total assets increased by $81.2 million compared
with 30 June 2023, to $195.8 million, driven by
$69.1 million invested in growth capital relating to
Riverina Underground development and numerous
infrastructure improvement projects.
Total liabilities increased by $15.5 million compared
with 30 June 2023, to $99.0 million, attributed to
increased trade and other payables related to the
Riverina Underground ramp up in development and
infrastructure projects. There was a $6.2 million
increase in lease liabilities, offsetting an increase in
right of use assets. Additions to lease liabilities are
primarily driven by the Riverina Underground mining
contract, with new equipment added to reach steady
state production.
2.
EBIT: earnings before interest and tax.
3.
EBITDA: earnings before interest, tax, depreciation and amortisation.
24
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
DIRECTORS' REPORT
Cashflow
Operating cash inflows for the year increased by
$59.7 million to $36.2 million, driven by:
» improved operational performance from the open
pit reduced strip ratios;
» 35% increase in gold sold; and
» the Group’s unhedged position provided an
upside from the higher gold price in the year,
with a 17% higher realised gold price compared
with prior year.
Investing cash outflows increased by $28.3 million
to $39.5 million primarily due to $53.0 million spent
on mine development at the Riverina Underground
development and resource extension projects.
In addition, investment of $16.1 million in growth
infrastructure projects, included a number of
crushing and milling circuit upgrades and a crusher
replacement in H1. These growth capital payments
were offset by proceeds from the:
» Lady Ida tenement sale settlement ($9.0 million);
and
» Net cash proceeds on the formation of the WesCEF
JV ($20.2 million).
Financing cash inflows of $5.3 million were $26.4
million unfavourable compared to the prior year.
Both years included a $30.0 million capital raising,
however the prior year also included $11.0 million
in proceeds from borrowings, plus $3.4 million in
deposits received for future royalties, whilst the
current year financial activities also included a $7.0
million repayment of the Hawke’s Point debt.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of
affairs of the Group during the year not otherwise
disclosed in the FY24 financial statements.
EVENTS AFTER BALANCE DATE
Subsequent to the year ended 30 June 2024, the
Company announced:
» Sand King Underground Final Investment Decision
(‘FID’) was approved by the Board to become the
Company’s second underground mine at the
Davyhurst Gold Project;
» the appointment of Ms Kathryn Cutler as an
independent Non-Executive Director; and
» the appointment of Mr Doug Warden as the
Company’s new Chief Financial Officer and Joint
Company Secretary effective 28 August 2024 to
replace Gareth Jones as Chief Financial Officer and
Joint Company Secretary.
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.
25
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
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 the Sand King 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 Company has to demonstrate effective
management of all material sustainability
matters. A failure to implement effective ESG
measures and provide satisfactory disclosures
increases the risk of damaged reputation, reduced
investments, delayed approvals and ability to
retain and recruit employees;
» Regulatory approvals – the mining industry is
subject to a number of Government approvals
to commence and continue operating including
those relating to Native Title. Any changes to these
approvals, including those relating to Native Title,
by the Government could impact on the Group’s
ability to continue operating;
» Government taxes, royalties and charges – 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 Ore 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.
26
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
DIRECTORS' REPORT
OPTIONS AND PERFORMANCE RIGHTS
The following table summarises unissued ordinary shares of the Company under option and performance
rights as at 25 September 2024:
Date granted
Number of unissued
ordinary shares
Exercise price
Expiry date
Various4
155,275,066
Nil
Various
23 November 20225
50,000,000
$0.035
30 June 2025
The following ordinary shares of the Company were issued 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
4 July 2024
550,000
Nil
25 July 2024
650,000
Nil
13 August 2024
1,497,305
Nil
22 August 2024
679,512
Nil
3 September 2024
653,543
Nil
17 September 2024
378,305
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
14
13
-
-
1
1
Luke Creagh
14
14
-
-
-
-
Alan Rule
14
14
-
-
1
1
Jo-Anne Dudley6
12
12
-
-
1
1
Kathryn Cutler7
-
-
-
-
-
-
As the Board only consisted of four members for
the majority of the year, a decision was made not
to hold separate Remuneration and Nomination
Committee and Audit & Risk Management Committee
meetings, but rather to incorporate these within
Board Meetings. In May 2024, the Board resolved to
re-establish the Remuneration and Nomination and
Audit & Risk Management Committees. In addition,
the Board resolved to establish a Sustainability
Committee.
4.
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.
5.
Loan Shares issued to Managing Director that are funded by $1.75 million limited recourse interest free loan. At 30 June 2025 if 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.
6.
Appointed 3 October 2023.
7.
Appointed 8 July 2024.
27
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
REMUNERATION REPORT
REMUNERATION
REPORT
28
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
REMUNERATION REPORT
CONTENTS:
1. BASIS OF PREPARATION
2. KEY MANAGEMENT PERSONNEL
3. REMUNERATION GOVERNANCE
4. FY24 KEY MANAGEMENT PERSONNEL REMUNERATION
5. FY25 FORWARD REMUNERATION
6. LINK BETWEEN COMPANY PERFORMANCE, SHAREHOLDER
WEALTH GENERATION AND REMUNERATION
7. KEY MANAGEMENT PERSONNEL HOLDINGS
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.
29
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
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
Alan Rule
Jo-Anne Dudley
Non-Executive Chairman
Non-Executive Director
Non-Executive Director
Full year
Full year
3 October 2023 to 30 June 2024
Executive Director
Luke Creagh
Managing Director & Chief Executive Officer
Full year
Senior Executives
Andrew Czerw
Gareth Jones
Chief Development Officer
Chief Financial Officer & Company Secretary
Full year
Full year
3. REMUNERATION GOVERNANCE
Board and Remuneration & Nomination Committee responsibility
The Remuneration & Nomination Committee
is a subcommittee of the Board, which was
re-established at year end. It assists the Board
to ensure that the Group develops and
implements remuneration policies and
practices that are appropriate for a company
of the nature, size and standing of Ora Banda.
Prior to its re-establishment, the responsibility
for remuneration was with the Board.
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.
Remuneration principles
The Group’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
Group’s remuneration policies (outlined in further
detail below).
30
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
REMUNERATION REPORT
Engagement of remuneration consultants
The following protocols are followed by the Board in
regard to remuneration consultants:
» The Board have regard to any potential conflicts
of interest including factors that may influence
independence such as previous and future work
performed by the consultant and any relationships
that exist between KMP’s and consultants;
» Remuneration consultants are engaged and report
directly to the Board; and
» Communication between KMP and consultants are
restricted to avoid risk of undue influence.
The Board reviews recommendations from
remuneration consultants before making its
decision.
During the year, the Company engaged remuneration
consultants, The Reward Practice, to provide
‘remuneration recommendation’ (as defined in the
Corporations Act 2001), for the Managing Director’s
and non-executive remuneration packages. Total
fees paid for remuneration recommendations to
consultants for current year was $10,850 (2023:
nil). Independent advice was received when the
current remuneration framework for other KMP was
established including remuneration reporting and
general advice in respect of market practice for
short and long-term incentive plans. In addition,
the Committee benchmarked KMP remuneration
annually using external independent industry reports
and data to ensure that remuneration levels are
competitive and meet the objectives of the Company.
The Board is satisfied that the remuneration
recommendations made by The Reward Practice is
free from undue influence by members of the KMP
about whom the recommendations may relate.
2023 AGM voting outcome and comments
The Company received more than 99% votes in favour
of the adoption of its remuneration report for the
2023 financial year.
4. FY24 KEY MANAGEMENT PERSONNEL REMUNERATION
In determining KMP remuneration, the Board aims
to ensure that remuneration practices are:
» competitive and reasonable, enabling the Group to
attract and retain high calibre talent;
» aligned to the Group’s strategic and business
objectives and the creation of shareholder value;
» transparent and easily understood; and
» acceptable to shareholders.
The Group’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.
The Group’s reward structure for executives provides
for a combination of fixed and variable ‘at risk’ pay
with the following components:
» fixed remuneration in the form of base salary,
superannuation and benefits;
» variable remuneration in the form of short-term
incentives (‘STI’) and long-term incentives (‘LTI’).
In accordance with the Group’s objective to ensure
that executive remuneration is aligned to Group
performance, a portion of executives’ remuneration
is placed ‘at risk’. The relative proportion of target
FY24 total remuneration packages split between the
fixed and variable remuneration is shown below:
Executive
Fixed Remuneration
(% of total remuneration)
Target STI
(% of total remuneration)
Target LTI
(% of total remuneration)
Managing Director
36-40%
20-27%
36-40%
KMP
40%
20%
40%
31
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
REMUNERATION REPORT
a. Fixed remuneration
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 Group aims
to position aggregate fixed remuneration at
approximately the 50th percentile of the industry
benchmark RemSmart Resources and Energy
Remuneration Report (an independent, industry
recognised report on the mining industry), with the
business-critical roles up to 75th percentile. This is to
ensure that the Group’s remuneration arrangements
remain competitive against peer companies to assist
with the retention and attraction of key talent.
b. FY24 Short-term incentive (‘STI’) arrangements
Each year the Committee, in conjunction with the
Board, sets KPI targets for executives. The KPIs
include measures relating to the Group and the
individual performance, and include sustainability
(safety and environment), growth (reserves),
production and cost measures. The following
outlines the FY24 STIP arrangements in detail:
Purpose
The STI plan is designed to:
» reward executives for meeting or exceeding performance-based
objectives over a one-year period;
» link the achievement of key Group targets with the remuneration
received by those executives charged with meeting those targets; and
» offer competitive remuneration to enable Ora Banda to attract and
retain talent.
How is it paid?
The STI bonus is payable in cash
Managing Director may elect to receive the STI in either cash or equity
What is the target incentive
opportunity?
Cash
Equity
Managing Director1
50% of TFR
75% of TFR
KMP
50% of TFR
N/A
What is the performance
period?
1 July 2023 to 30 June 2024
How is the performance
assessed?
Performance targets are set at the beginning of the performance period
and achievement assessed by the Board following the finalisation of end
of year reports. Performance metrics include both Group and individual
performance targets.
The FY24 performance metrics were:
» Sustainability (35%);
» Production & cost (55%); and
» Individual performance (10%).
What is the gateway to
Award?
There were two (2) gateways to Award:
» no significant WHSE event(s) determined by the Board to be of sufficient
seriousness to warrant a whole or partial reduction of Award; and
» financial health of the business to afford the value of the Award
1.
Managing Director can elect to take STI payment in the form of either cash or equity.
32
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
REMUNERATION REPORT
What happens if Executive
ceases employment?
Participants who resign or are terminated with cause or for misconduct
prior to the award payment will not be eligible for any STI payment.
Where a participant ceases employment because of retirement,
redundancy, death or permanent disablement, the Board may exercise
discretion to pay a pro-rata amount of STI.
Board discretion
The Board may award a bonus payment to participants where a payment
would otherwise not be available.
The Board also has the discretion to increase or decrease any bonus
payment in exceptional circumstances. The Board may exercise this
discretion in circumstances the Board deems appropriate.
The table below sets out performance metrics, weightings and vesting outcomes for FY24 STI targets
(measurement period 1 July 2023 to 30 June 2024).
STIP Performance Metrics FY24
Area
Metric
Weighting
% Vested
Group Performance
Sustainability
LTIFR 10% below industry standard
5%
5%
No significant environmental incidents
5%
5%
Hazard ID increase by 100% for FY24
Hazards rectified by crews >95% of reported
hazards
15%
15%
Maiden Ore Reserve on 2nd Underground Mine
10%
10%
Production & Costs
If oz sold <75koz OR AISC >A$2400 then no
award for Production & Cost KPI
55%
0%
TOTAL
90%
35%
The remaining 10% is subject to assessment of individual impact based on alignment with Ora Banda values
and contribution to progressing Ora Banda’s 3-Year strategy.
Board Discretion
Despite the production and cost metrics not being
achieved, the Board recognised the significant
improvement which contributed to shareholder
value through production, reserve and resource
growth, plant availability, systems and processes
as well as stabilisation of the workforce. The Board
therefore approved a one-off discretionary award of
an additional 15% to increase the Group Performance
multiplier to 50%.
Based on the above assessment, STI payments for
FY24 to executives were as follows:
Executive
Maximum STI
opportunity
% STI
awarded
STI awarded
– Cash
STI awarded
– Rights
Fair value
of Rights
granted ($)
STIP Rights
class
Luke Creagh
100%
59%
-
1,531,773
321,672
FY2024
incentive
Rights
Gareth Jones
100%
54%
97,200
-
-
-
Andrew Czerw
100%
60%
118,881
-
-
-
33
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
REMUNERATION REPORT
The Managing Director elected to take his STI in
the form of equity for FY24 and a total of 2,596,225
STI Rights were issued. These were granted on
28 November 2023 and fair value at grant date
was $0.21. Based on above percentages achieved,
1,531,773 Rights vested (59% of the potential STI
award) and therefore 1,064,452 (41%) of the Rights
were forfeited.
c. Retention Rights
During the year, the Group issued no retention incentive Rights to KMP’s.
d. Long-term incentive (‘LTI’) arrangements
i. FY24 LTI granted (unvested)
Participation in the LTI plan involves a grant of incentives (being performance Rights) under the Group’s
Employee Rewards Plan. The following outlines the FY24 LTI arrangements:
What is the purpose?
To incentivise and reward KMP for the achievement of long-term business
targets and creation of shareholder value.
How is it paid?
LTI awards are paid in Performance Rights for nil cash consideration.
What is the LTI opportunity?
The LTI opportunity is set as a percentage of the Executive Total Fixed
Remuneration. Subject to the achievement of the performance metrics,
the KMP are entitled to an LTI of up to 100% of TFR.
What is the performance
period?
The LTI is issued annually and is measured over a 3-year performance
period.
How is the performance
assessed?
LTI awards are granted at the beginning of the performance period and
vest based on Total Shareholder Return (TSR) compared to peer group of
companies. The FY24 LTI peer companies are listed below:
ASX Code
Company Name
ALK
Alkane Resources Limited
BCN
Beacon Minerals Limited
BGL
Bellevue Gold Limited
CAI
Calidus Resources Limited
CMM
Capricorn Metals Limited
GCY
Gascoyne Resources Limited
GMD
Genesis Minerals Limited
GOR
Gold Road Resources Limited
PNR
Pantoro Limited
RED
Red 5 Limited
RMS
Ramelius Resources Limited
RRL
Regis Resources Limited
SBM
St Barbara Limited
SLR
Silver Lake Resources Limited
WGX
Westgold Resources Limited
34
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
REMUNERATION REPORT
How the LTI vesting is
determined
The vesting is subject to the:
Relative TSR Performance
% Rights to Vest
Below 50th percentile
0%
50th percentile (Gateway)
50%
Above 50th percentile
For each 1% ranking above the 50th
percentile, an additional 2% of
the incentives will vest, with 100%
vesting where the Company ranks
at or above the 75th percentile
Other conditions
Executive must remain employed for the performance period.
During the 30 June 2024 financial year, the following LTI's were issued to KMP under the Company’s employee
incentive plan:
Other KMP
Managing Director
Other KMP
Underlying security share price at grant date
$0.210
$0.215
Exercise price
Nil
Nil
Grant date
28-Nov-23
18-Dec-23
Vesting date
30-Jun-26
30-Jun-26
Expiry date
19-Dec-28
01-Jul-28
Risk-free rate
4.160%
3.705%
Volatility
80%
80%
Dividend yield
Nil
Nil
Number of performance Rights granted
3,461,634
6,233,165
Valuation per performance right
$0.182
$0.188
Fair value per performance right class
$630,017
$1,171,835
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 were calculated over a one,
two and three-year period.
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.
35
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
REMUNERATION REPORT
ii. FY23 Sign-on Rights – Tranche 1 – vesting outcome
In FY23, the Managing Director received 50,000,000
unvested sign-on Performance Rights, to vest in
two tranches. Tranche 1, for 25,000,000 Rights, was
subject to the following vesting conditions:
» Remaining in continuous employment with the
Company through to 31 December 2023; and
» The VWAP of shares being equal to or more
than $0.0525 for the 20 trading days prior to
performance measurement date of 31 December
2023.
The Tranche 1 Performance Rights of 25,000,000
fully vested on 31 December 2023, with continuous
employment complete and a 20-day VWAP of $0.2261.
iii. FY22 LTI Performance Rights – vesting outcome
The table below sets out the performance metrics and vesting conditions for the FY22 LTI Performance Rights.
The vesting period for this issue was 1 July 2021 to 30 June 2024.
Relative TSR Performance
% Rights to Vest
Below 50th percentile
0%
50th percentile (Gateway)
50%
Above 50th percentile
For each 1% ranking above the 50th percentile, an
additional 2% of the incentives will vest, with 100%
vesting where the Company ranks at or above the 75th
percentile
The Company’s closing share price on 30 June 2021 was $0.138 and at 30 June 2024 was $0.335. This represents
a 143% increase. The Company ranked at the 100th percentile and hence 100% of the Rights vested.
The number of FY22 LTI Rights granted to each KMP, and the proportion vested is shown below:
Executive KMP
LTI Performance Rights granted
Vesting%
LTI Performance Rights vested
Luke Creagh
-
N/a
-
Andrew Czerw
2,030,953
100%
2,030,953
Gareth Jones
-
N/a
-
Total
2,030,953
100%
2,030,953
36
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
REMUNERATION REPORT
2.
RTSR = relative total shareholder return.
3.
ATSR = absolute total shareholder return.
iv. Prior Year issues – unvested
The table below sets out prior performance Rights relating to KMP that are yet to vest:
Performance Rights and in-
substance share options
Managing Director
Other KMP
Performance
Rights
Loan
Shares
Sign-on
Rights
Tranche 2
RTSR2
Rights
ATSR3
Rights
Underlying security share price at
grant date
$0.08
$0.08
$0.08
$0.08
$0.14
Exercise price
$0.035
Nil
Nil
Nil
Nil
Grant date
23-Nov-22
23-Nov-22
23-Nov-22
23-Nov-22
20 Mar-23
Vesting date
30-Jun-25
30-Jun-25
30-Jun-25
30-Jun-25
30-Jun-25
Expiry date
30-Jun-25
23-Nov-27
23-Nov-27
23-Nov-27
30-Jun-30
Risk-free rate
3.27%
3.27%
3.27%
3.27%
2.83%
Volatility
80%
80%
80%
80%
85%
Dividend yield
Nil
Nil
Nil
Nil
Nil
Number of performance Rights
granted
50,000,000
25,000,000
8,000,000
3,428,572
11,271,000
Valuation per performance right
$0.056
$0.061
$0.079
$0.058
$0.138
Fair value per performance right
class
$2,800,000
$1,525,000
$632,000
$198,857
$1,555,398
Vesting conditions
Continued
service &
market
value of
each share
>$0.035
Continued
service
& 20 Day
VWAP
>$0.07 at
30 June
2025
Continued
service &
Note [A]
below
Continued
service &
Note [B]
below
Continued
service & TSR
performance
against Peer
Group
Note [A] – percentage of RTSR eligible to vest based
on below TSR performance relative to the Peer Group:
» below 50th percentile = nil
» 50th percentile = 50%
» between 50th percentile and 75th percentile = 50%
to 100% on a pro rata basis
» 75th percentile = 100%
Note [B] – percentage of Rights eligible to vest based
on Company’s TSR performance:
» TSR less than 35% Company annual growth (‘CAGR’)
= nil
» TSR equal to or greater than 35% CAGR = 100%
37
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
REMUNERATION REPORT
e. 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 as a KMP for the years ended
30 June 2024 and 30 June 2023.
KMP
Year
Short Term
Post em-
ployment
Other
long
term
Share-
based
Pay-
ments
Total
Perfor-
mance
related
Remu-
neration
Salary &
Fees
Fee Shares9
STI
(Cash)
STI
(Equity)10
Superan-
nuation
Leave
Accrued
Options &
Rights7
$
$
$
$
$
$
$
$
%
NON-EXECUTIVE DIRECTORS
Peter
Mansell
2024
120,000
45,000
-
-
13,200
-
178,200
0%
2023
117,692
-
-
-
12,358
-
17,684
147,734
12%
Alan
Rule
2024
94,794
15,000
-
-
10,427
-
120,221
0%
2023
58,765
-
-
-
6,170
-
-
64,935
0%
Jo-Anne
Dudley4
2024
58,242
22,337
-
-
6,407
-
-
86,986
0%
2023
-
-
-
-
-
-
-
-
-
Keith
Jones5
2024
-
-
-
-
-
-
-
-
-
2023
20,000
-
-
-
2,100
-
11,789
33,889
35%
Mark
Wheatley6
2024
-
-
-
-
-
-
-
-
-
2023
20,000
-
-
-
2,100
-
11,789
33,889
35%
David
Quinlivan6
2024
-
-
-
-
-
-
-
-
-
2023
24,472
-
-
-
-
-
(62,569)
(38,097)
164%
EXECUTIVE DIRECTOR
Luke
Creagh
2024
392,257
-
-
321,672
27,399
26,489 2,469,811 3,237,628
86%
2023
362,066
-
342,857
34,990
21,421
2,747,711
3,509,045
88%
SENIOR EXECUTIVES
Andrew
Czerw
2024
365,018
-
118,881
-
27,399
(4,778)
749,992
1,256,512
69%
2023
350,135
89,161
-
31,553
(14,387)
1,331,959
1,788,421
79%
Gareth
Jones
2024
332,642
-
97,200
-
27,399
3,738
185,939
646,918
44%
2023
132,596
31,579
-
10,784
7,784
-
182,743
17%
Tony
Brazier7
2024
-
-
-
-
-
-
-
-
-
2023
343,224
-
-
-
23,428
-
(147,395)
219,257
(67%)
Brendan
Fyfe8
2024
-
-
-
-
-
-
-
-
-
2023
276,204
-
-
-
15,138
-
72,210
363,552
20%
Total
2024
1,362,953
82,337
216,081
321,672
112,231
25,449
3,405,742
5,526,465
71%
2023
1,705,154
-
120,740
342,857
138,621
14,818
3,983,178 6,305,369
71%
4.
Jo-Anne Dudley was appointed 3 October 2023.
5.
Keith Jones ceased to be a Director of the Company on 30
September 2022.
6.
Mark Wheatley and David Quinlivan ceased to be Directors of
the Company on 28 September 2022.
7.
Tony Brazier ceased employment with the Company on
15 March 2023. Prior year salary and fees includes $82,887
in termination benefits.
8.
Brendan Fyfe ceased employment with the Company on 4
November 2022. Prior year salary and fees includes $23,185
in termination benefits.
9.
Details as per 5(e).
10. 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.
REMUNERATION REPORT
38
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
5.
FY25 FORWARD REMUNERATION
a. FY25 STI
The table below sets out the performance metrics and weightings for the FY25 STI, which is to be measured at
30 June 2025 for the period 1 July 2024 to 30 June 2025.
STIP Performance Metrics FY25
Area
Metric
Weighting
Threshold
(80%)
Target (100%)
Stretch (120%)
Group Performance
Sustainability
LTIFR
5%
Below industry
standard
(<2.13)
25% below
industry
standard
(<1.59)
50% below
industry
standard
(<1.06)
TRIFR reduction
from FY24 of 10.88
5%
20% reduction
in FY24 TRIFR
(≤ 8.7)
30% reduction
in FY24 TRIFR
(≤ 7.6)
At or below
industry
standard of
≤ 6.03
Environmental
regulatory non-
compliance or
incidents
10%
No actual
major
environmental
incident
or major
regulatory
non-
compliance
Threshold plus
2
environmental
improvement
initiatives
implemented
within year
Target plus
3 additional
environmental
improvement
initiatives
implemented
Increase in Lead
Indicators
5%
10% increase
in lead
indicator
frequency rate
(LIFR)
20% increase
in lead
indicator
frequency rate
(LIFR)
30% increase
in lead
indicator
frequency rate
(LIFR)
Hazards rectified
and an increase in
the total reported
5%
≥ 90% of
all hazards
rectified
≥ 95% of
all hazards
rectified and
10% increase
on FY24
≥ 95% of
all hazards
rectified and
20% increase
on FY24
Growth
Reserve growth
as per annual
Mineral Reserve
and Ore Resource
Statement
10%
Increase by
20%
Increase by
30%
Increase by
50%
Mine Life
extension
designed and
scheduled
10%
> 2 years
> 3 years
> 4 years
Production &
Costs
Costs (AISC)
25%
≤A$2,125/oz
≤A$2,050/oz
≤A$1,950/oz
Production
(ounces produced
per annum)
25%
≥100Koz
≥ 107.5Koz
≥ 115Koz
GROUP TOTAL
100%
The above Group performance multiplier will then
be assessed against individual performance (10%)
based on the individual’s impact on achievement
of the Group’s Drive to 150 objective and displaying
behaviours aligned to the Group’s Core Values.
39
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
REMUNERATION REPORT
b. FY25 LTI
FY25 LTI have the following vesting conditions:
» 70% Relative Total Shareholder Returns ('RTSR')
against Peer Companies; and
» 30% Ore Reserve Growth.
Performance period for FY25 LTI Rights will be 1 July
2024 to 30 June 2027.
Seventy percent (70%) of the Rights will vest to the
extent the Company’s TSR falls within the following
percentiles compared with the TSRs over that period
of 15 peer ASX listed companies selected by the
Board (Peer Companies):
Relative TSR Performance
% Rights to Vest
Below 50th percentile
0%
At 50th percentile
50%
Between 50th and 75th
Pro-rata vesting
Above 75th
100%
Thirty percent (30%) of the Rights will vest to the
extent of the Group’s growth in Ore Reserves. Growth
will be measured from baseline of the FY24 Ore
Reserves of 190,000oz against the Ore Reserves
published in the FY27 Annual Mineral Resource and
Ore Reserves Statement.
Relative Growth (net depletion)
Proportion Vested
Below 25% (237,499oz or below)
0%
At 25% (237,500oz)
50%
Between 25% and 50% (237,501oz to 284,999oz)
Pro-rata vesting
At 50% (285,000oz)
100%
FY25 LTI's relating to the Managing Director will not be
granted until approved by shareholders at the 2024
Annual General Meeting.
c. Grants due for measurement in FY25
The following grants are due for measurement as at
30 June 2025:
» FY23 Managing Director Sign-on Rights Tranche 2;
» FY23 Managing Director RTSR Rights;
» FY23 Managing Director ATSR Rights; and
» FY23 Loan Shares;
Vesting outcomes will be reported in the Company’s
FY25 annual report.
40
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
REMUNERATION REPORT
d. Contracts with Key Management Personnel
Executive KMP key contractual and FY25 remuneration details are noted below:
Executive
KMP
Position
Term of
agreement
Fixed
Remuneration11
STI
LTI
Notice
Period
Redundancy
provision
Luke
Creagh
Managing
Director
30 June 2030
$750,000
(increased by
$330,000 from
$420,000)
60% of TFR
– cash
90% of TFR
– equity
125%
of TFR
3 months
until July
2025
6 months
thereafter
30% TFR
Doug
Warden
Chief
Financial
Officer
No fixed term
$500,000
50% of TFR
100%
of TFR
3 months
30% TFR
Andrew
Czerw
Chief
Development
Officer
No fixed term
$392,700
50% of TFR
100%
of TFR
3 months
30% TFR
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.
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. On 27 July 2022 the Company
announced NED remuneration had reduced to
$120,000 for the Chair and $80,000 for other NEDs,
exclusive of superannuation.
In the current year, the Board engaged third-party
remuneration consultation to undertake a review of
the remuneration arrangements for the Company’s
Non-Executive Directors to ensure appropriate
remuneration for the 2024 financial year. Having
considered the third-party consultants review and
benchmarking information, the Board resolved to
return the fees payable to the previous levels of
$110,000 (and $165,000 for the Chair) (exclusive of
superannuation) which was back paid to 1 July 2023.
As approved by shareholders at the AGM on 28
November 2023, the minimum part of the difference
between the previous fees and increased fees ('NED
Fee Increase') for the next 3 years will be paid by
way of equity, in the form of shares ('Fee Shares'), in
lieu of cash fees. A minimum of 50% of the NED Fee
Increase per annum is to be paid in Fee Shares and
each of the Directors will have the ability to elect
to be paid up to 100% of the NED Fee Increase per
annum in Fee Shares, as illustrated in the following
table:
Position
Total Fees
($)
Minimum Cash
fees p.a.
($)
Minimum Equity
Value p.a.
($)
Maximum Equity
Value p.a.
($)
Non-Executive Chair
165,000
120,000
22,500
45,000
Non-Executive Directors
110,000
80,000
15,000
30,000
11. Super capped at $29,932 for FY25 – in line with concessional contribution cap.
41
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
REMUNERATION REPORT
The Fee Shares will be issued to each Director under
the Plan on a quarterly basis, with the deemed issue
price of the Fee Shares to be equal to the VWAP of
Shares calculated over the 10 Trading Days prior to
the end of the quarter ('Deemed Issue Price').
The formula for the number of Fee Shares to be
issued to each Director each quarter will be the
amount of the NED Fee Increase for that quarter the
Director has elected to receive in Fee Shares divided
by the Deemed Issue Price.
6. A LINK BETWEEN COMPANY PERFORMANCE, SHAREHOLDER WEALTH
GENERATION AND REMUNERATION
The Committee applies a series of criteria to assess
the performance of the Company. Criteria used in
this assessment was execution of development
projects and exploration success as well as the
following metrics in respect of the current and
previous financial years.
Criteria
2024
2023
2022
2021
2020
Closing cash balance at 30 June ($m)
26.8
24.7
27.7
24.2
10.6
Closing share price at 30 June ($)
0.33
0.12
0.03
0.15
0.27
The Group’s remuneration practices aim to
reward based on the achievement of Group and
KMP performance objectives. The Group’s overall
objective is to continue to define mineral resources
and ore reserves and attain steady state production
rates, within budgeted cost parameters.
7.
KEY MANAGEMENT PERSONNEL HOLDINGS
Option and Performance Right Holdings of Key Management Personnel
30 June
2024
Balance at 1
July 2023
Granted as
compen-
sation12
Rights/
options
exercised13
Rights/
options
forfeited
Balance at
30 June 2024
Vested
during the
year
Vested and
exercisable
at 30 June
2024
NON-EXECUTIVE DIRECTORS
Peter
Mansell
-
-
-
-
-
-
-
Alan
Rule
-
-
-
-
-
-
-
Jo-Anne
Dudley
-
-
-
-
-
-
-
EXECUTIVE DIRECTOR
Luke
Creagh14
70,000,001
6,057,859
(3,428,572)
(5,142,857)
67,486,431
26,531,773
26,531,773
SENIOR EXECUTIVES
Andrew
Czerw15
24,116,660
3,266,051
-
-
27,382,711
12,030,953
12,845,660
Gareth
Jones
-
2,967,114
-
-
2,967,114
-
-
Total
94,116,661
12,291,024
(3,428,572)
(5,142,857)
97,836,256
38,562,726
39,377,433
12. Performance rights granted as compensation represent issues under the terms outlined in section C above
13. 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
14. Excludes loan shares which are included within Ordinary Shareholding table on page 42.
15. Included in the vested during the year of 12,030,953 above is 10,000,000 relating to FY23. This was correctly expensed in FY23.
42
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
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 2024
Exercised
Value on date of
exercise ($)
Forfeited/Cancelled
Value on date of
forfeiture ($)
NON-EXECUTIVE DIRECTORS
Peter Mansell
-
-
-
-
Alan Rule
-
-
-
-
Jo-Anne Dudley
-
-
-
-
EXECUTIVE DIRECTOR
Luke Creagh
3,428,572
308,571
5,142,85716
411,429
SENIOR EXECUTIVES
Andrew Czerw
-
-
-
-
Gareth Jones
-
-
-
-
Tony Brazier
-
-
-
-
Brendan Fyfe
-
-
-
-
Total
3,428,572
308,571
5,142,857
411,429
No alterations to the terms and conditions of performance Rights granted as remuneration have been made
since their grant dates.
Ordinary Shareholdings of Key Management Personnel
30 June 2024
Balance at
1 July 2023
Purchases
Fee Shares17
On the exercise
of options/
Rights
Balance at
30 June 2024
NON-EXECUTIVE DIRECTORS
Peter Mansell
10,250,002
-
231,527
-
10,481,529
Alan Rule
444,000
-
77,176
-
521,176
Jo-Anne Dudley
-
310,000
82,963
-
392,963
EXECUTIVE DIRECTOR
Luke Creagh18
58,888,888
-
-
3,428,572
62,317,460
SENIOR EXECUTIVES
Andrew Czerw
2,721,364
-
-
-
2,721,364
Gareth Jones
-
-
-
-
-
Total
72,304,254
310,000
391,666
3,428,572
76,434,492
16. Relates to prior year STI rights cancelled in the current financial year.
17. Details as per 5(e).
18. Inclusive of loan shares.
43
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
REMUNERATION REPORT
Loans to Key Management Personnel
There were no loans to KMP during the financial year.
In the prior year, the Managing Director received
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.
Other transactions with Directors
Other than those described in this remuneration
report, no other transactions between the Group and
Directors or their related entities have occurred.
END OF REMUNERATION REPORT (AUDITED)
44
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
REMUNERATION 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 2024.
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 non-audit services were provided by KPMG, the
Group’s auditor, during the year (30 June 2023: Nil).
Further details of the remuneration of the auditor
are set out in Note 23.
AUDITOR INDEPENDENCE
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.
INDEMNIFICATION OF AUDITOR
The Company has not provided any insurance or
indemnity to the auditor of the Company.
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).
This report is made in accordance with a resolution
of Directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
On behalf of the Directors
Peter Mansell
Chairman
Perth, Western Australia
25 September 2024
MINERAL RESOURCE
AND ORE RESERVE
STATEMENT
45
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
MINERAL RESOURCE AND ORE RESERVE STATEMENT
46
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
MINERAL RESOURCE AND ORE RESERVE STATEMENT
In accordance with ASX Listing Rule 5.21, The
Company reviews and reports its Mineral Resources
and Ore Reserves at least annually. The date of
reporting is 30 June each year, to coincide with the
Company’s end of financial year balance date.
If there are material changes to its Mineral
Resources or Ore Reserves during the course of the
year, the Company is required to promptly report
those changes.
MINERAL RESOURCE AT 30 JUNE 2024
Total mineral resources at 30 June 2024 are estimated to be 23.3Mt @ 2.6g/t for 1,950,000 ounces of contained
gold.
PROJECT
MEASURED
INDICATED
INFERRED
TOTAL MATERIAL
('000t)
(g/t Au)
('000t)
(g/t Au)
('000t)
(g/t Au)
('000t)
(g/t Au)
('000oz.)
CENTRAL DAVYHURST
LIGHTS OF ISRAEL
-
-
74
4.3
180
4.2
254
4.2
34
MAKAI SHOOT
-
-
1,985
2.0
153
1.7
2,138
2.0
136
WAIHI
Open Pit
-
-
2,057
2.3
95
2.0
2,152
2.3
157
Underground
-
-
278
3.6
324
3.5
602
3.5
68
TOTAL
-
-
2,335
2.5
419
3.5
2,754
2.5
225
Central Davyhurst
Subtotal
-
-
4,394
2.3
752
3.3
5,146
2.4
396
RIVERINA-MULLINE
LADY GLADYS
-
-
1,858
1.9
190
2.4
2,048
1.9
125
RIVERINA
AREA
Open Pit
476
1.7
2,118
1.6
117
1.5
2,711
1.6
138
Underground
24
3.8
1,641
3.8
2,294
3.6
3,959
3.7
468
TOTAL
500
1.8
3,759
2.6
2,411
3.5
6,670
2.8
606
BRITISH
LION
Open Pit
-
-
386
1.6
17
1.6
403
1.6
21
Underground
-
-
36
3.2
3
3.8
39
3.2
4
TOTAL
-
-
422
1.7
20
2.0
442
1.7
25
FOREHAND
Open Pit
-
-
-
-
691
1.5
691
1.5
33
Underground
-
-
-
-
153
2.5
153
2.5
12
TOTAL
-
-
-
-
844
1.7
844
1.7
46
SILVER
TONGUE
Open Pit
-
-
-
-
127
2.3
127
2.3
9
Underground
-
-
-
-
77
4.5
77
4.5
11
TOTAL
-
-
-
-
204
3.1
204
3.1
21
SUNRAYSIA
-
-
175
2.1
318
2.0
493
2.0
32
Riverina-Mulline
Subtotal
500
1.6
6,214
2.2
3,987
2.9
10,701
2.5
854
Table continues over next page
47
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
MINERAL RESOURCE AND ORE RESERVE STATEMENT
PROJECT
MEASURED
INDICATED
INFERRED
TOTAL MATERIAL
('000t)
(g/t Au)
('000t)
(g/t Au)
('000t)
(g/t Au)
('000t)
(g/t Au)
('000oz.)
SIBERIA
SAND KING
Underground
113
1.9
1,444
2.7
1,858
2.9
3,415
2.8
304
TOTAL
113
1.9
1,444
2.7
1,858
2.9
3,415
2.8
304
MISSOURI
Underground
-
-
464
3.4
246
4.9
710
3.9
89
TOTAL
-
-
464
3.4
246
4.9
710
3.9
89
PALMERSTON /
CAMPERDOWN
-
-
118
2.3
174
2.4
292
2.4
23
BLACK RABBIT
-
-
-
-
434
3.5
434
3.5
49
Siberia Subtotal
113
1.9
2,026
2.9
2,712
3.1
4,851
3.0
465
CALLION
CALLION
Open Pit
-
-
241
3.7
28
1.6
269
3.5
30
Underground
-
-
255
6.0
156
5.5
411
5.8
77
TOTAL
-
-
496
4.9
184
4.9
680
4.9
107
Callion Subtotal
-
-
496
4.9
184
4.9
680
4.9
107
WALHALLA
FEDERAL FLAG
32
2
112
1.8
238
2.5
382
2.3
28
SALMON GUMS
-
-
199
2.8
108
2.9
307
2.8
28
WALHALLA
-
-
448
1.8
216
1.4
664
1.7
36
WALHALLA NORTH
-
-
94
2.4
13
3.0
107
2.5
9
MT BANJO
-
-
109
2.3
126
1.4
235
1.8
14
MACEDON
-
-
-
-
186
1.8
186
1.8
11
Walhalla Subtotal
32
2.0
962
2.1
887
2.0
1,881
2.1
125
Davyhurst Total
600
1.8
14,100
2.4
8,500
3.0
23,300
2.6
1,950
Notes:
1.
The Riverina Area, British Lion, Callion, Forehand and Silver Tongue Mineral Resources have been updated in accordance with all
relevant aspects of the JORC code 2012, and initially released to the market on 2 December 2019, 26 May 2020, 5 June 2020, 9 October
2020, 1 August 2022 & 16 February 2023 (Riverina Area), 15 May 2020 & 29 June 2020 (Callion), 29 July (Forehand, Silver Tongue & British
Lion)
2.
The Sand King, Missouri and Waihi Mineral Resources have previously been updated in accordance with all relevant aspects of the
JORC code 2012, and initially released to the market on 3 January 2017 & 26 May 2020 (Sand King), 15 December 2016 & 26 May 2020
(Missouri), 4 February 2020 (Waihi).
3.
All Mineral Resources listed above, with the exception of the Missouri, Sand King, Riverina Area, British Lion, Waihi, Callion, Forehand
and Silver Tongue were prepared previously and first disclosed under the JORC Code 2004 (refer Swan Gold Mining Limited Prospectus
released to the market on 13 February 2013). These Mineral Resources have not been updated in accordance with JORC Code 2012 on
the basis that the information has not materially changed since it was last reported.
4.
The Riverina, British Lion, Waihi, Missouri, Callion, Forehand and Silver Tongue Open Pit Mineral Resource Estimates are reported
within a A$2,400/oz pit shell above 0.5g/t. The British Lion, Waihi, Missouri, Callion, Forehand and Silver Tongue Underground Mineral
Resource Estimates are reported from material outside a A$2,400 pit shell and above 2.0 g/t. Riverina Underground Mineral Resource
Estimates are reported from fresh material below the A$2,400/oz pit shell within Mine stope optimised solids of dimensions 10m x 10m
x 1.6m minimum width at a diluted cut-off grade of 1.3g/t. Sand King Underground Mineral Resource Estimates are reported from fresh
material below 350mRL (base of open pit) within Mine stope optimised solids of dimensions 10m x 10m x 1.6m minimum width at a
diluted cut-off grade of 0.8g/t
5.
Resources are inclusive of in-situ ore reserves and are exclusive of surface stockpiles
6.
The values in the above table have been rounded.
48
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
MINERAL RESOURCE AND ORE RESERVE STATEMENT
Cross references to previous Company ASX announcements
Refer to ASX announcement date 2 July 2024 titled “Annual Mineral Resource and Ore Reserve Statement”.
ORE RESERVE AT 30 JUNE 2024
Total ore reserves at 30 June 2024 are estimated to be 2.2Mt @ 2.7g/t for 190,000 ounces of contained gold.
PROJECT AREA
DEPOSIT
PROVED
PROBABLE
TOTAL MATERIAL
('000t)
(g/t Au)
('000t)
(g/t Au)
('000t)
(g/t Au)
('000oz.)
Riverina
Riverina Underground
-
-
651
4.2
651
4.2
87
Siberia
Sand King Underground
-
-
537
3.2
537
3.2
55
Underground Sub-Total
-
-
1,188
3.7
1,188
3.7
142
Davyhurst
Waihi Open Pit
-
-
307
2.4
307
2.4
24
Low Grade
All mines
-
123
1.1
123
1.1
4
Stockpiles
Siberia / Riverina
600
1.1
-
-
600
1.1
20
Sub-Total
600
1.1
430
2.0
1,030
1.5
48
TOTAL
600
1.1
1,618
3.3
2,217
2.7
190
Notes:
7.
The table contains rounding adjustments to reflect accuracy and may not total exactly.
8.
This Ore Reserve was estimated from practical mining envelopes and the application of modifying factors for mining dilution and ore
loss.
9.
For the open pit Ore Reserve, dilution skins were applied to the undiluted Mineral Resource estimate. The method also included internal
and edge dilution resulting from forming practical mineable shapes. Dilution was incorporated in the model at the background grades
estimated into the model: The average grade of dilution for Waihi was 0.16 g/t. The estimated average dilution at Waihi was estimated to
be 27%. Ore loss was incurred in the Auto Stope Designer (ASD) Deswik process due to variation between mineralised lode geometry and
practical dig block geometry. In addition, a nominal 5% loss was applied for further mining losses occurring through normal operations.
10. For the underground Ore Reserve, dilution skins were applied to the Mineral Resource estimate. Dilution was included at the background
grade estimated into each model. The Riverina dilution is estimated to average 59% while Sand King is estimated to average 29%,
reflecting mining shapes and orebody widths appropriate for each deposit.
11. The Inferred Mineral Resource within the mining envelope was considered as waste when defining limits of these envelopes; however,
minor amount of inferred material was included within the Riverina Underground and Sand King Underground mine plan due to
practical mining geometries and orebody characteristics.
12. The Waihi open pit Ore Reserve was primarily estimated using a cut-off grade of 1.2 g/t based on a gold price of A$2,600/oz. Low Grade
reserve was based on A$3,000/oz. Costs used in the cut-off grade calculation allow for ore transport, processing, site overheads and
selling costs as well as a historical global process recovery of 92%.
13. The Ore Reserve is inclusive of surface stockpiles above cut-off. All surface stockpiles were classified as Proved.
14. All low grade material is in situ.
15. The Underground Ore Reserve was estimated using a cut-off grade of 2.5 g/t Au based on a gold price of A$2,250/oz, stopes were further
spatially optimised. Costs used in the cut-off grade calculation allow for ore transport, processing, site overheads and selling costs as
well as process recovery specific to the location. Process recoveries range for the project were estimated to be 87% or above, based on
recent metallurgical test work.
16. Inferred material within total Underground Ore Reserve equates to 24,250t at a grade of 4.5g/t. This material is included at the edges of
the mining envelope and equate to 2.5% of the Ore Reserve inventories.
17. Costs were derived from the FY25 budget estimate including underground contract pricing current at the date of this Ore Reserve and
budget level contract pricing for Waihi. Unit costs for haulage, processing and site overheads were estimated based on scheduled
process plant throughput of material above the economic cut-off grade. Full utilisation of process capacity is reliant on realising
expected conversion of further Mineral Resource to Ore Reserve.
49
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
MINERAL RESOURCE AND ORE RESERVE STATEMENT
Governance Arrangements and Internal Controls
The Company has ensured that the Mineral
Resources and Ore Reserves quoted are subject
to good governance arrangements and internal
controls. The Mineral Resources and Ore Reserves
reported have been generated by internal Company
geologists, who are experienced in best practice in
modelling and estimation methods. The competent
person has also undertaken reviews of the quality
and suitability of the underlying information used to
generate the resource estimation. In addition, the
Company’s management carry out regular reviews
and audits of internal processes and external
contractors that have been engaged by the Company.
Competent Person Statement
The information relates to exploration results,
and the Riverina Area, British Lion, Forehand,
Silver Tongue, Waihi, Callion, Sand King and
Missouri Mineral Resources is based on and
fairly and accurately represents information
and supporting documentation compiled under
the supervision of Mr Ross Whittle-Herbert, an
employee of Ora Banda, who is Member of the
Australian Institute of Geoscientists. Mr Whittle-
Herbert has sufficient experience which is relevant
to the style of mineralisation and type of deposit
under consideration and to the activity which he
is undertaking to qualify as a Competent Person
as defined in the 2012 Edition of the ‘Australasian
Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves’. Mr Whittle-Herbert
consents to the matters based on his information in
the form and context in which it appears.
The Missouri, Sand King, Riverina Area, British Lion,
Waihi, Callion, Forehand and Silver Tongue Mineral
Resources have been updated in accordance with all
relevant aspects of the JORC code 2012, and initially
released to the market on 2 December 2019, 26 May
2020, 5 June 2020, 9 October 2020, 1 August 2022 & 16
February 2023 (Riverina Area), 15 May 2020 & 29 June
2020 (Callion), 29 July 2021 (Forehand, Silver Tongue &
British Lion).
Mineral Resources other than Missouri, Sand King,
Riverina Area, British Lion, Waihi, Callion, Forehand
and Silver Tongue were first reported in accordance
with the JORC 2004 code in the Swan Gold Mining
Limited Prospectus released to the market on 13
February 2013. Mineral Resources other than Sand
King, Missouri, Riverina Area, Forehand, Silver
Tongue, British Lion, Waihi and Callion have not
been updated to comply with JORC Code 2012 on
the basis that the information has not materially
changed since it was last reported. The Company
is not aware of any new information or data that
materially affects the information in that Prospectus
and confirms all material assumptions and technical
parameters underpinning the estimates continue to
apply and have not materially changed.
The information that relates to Ore Reserves for
Riverina and Sand King Underground is based on,
and fairly and accurately represents, information
and supporting documentation compiled by Mr Leroy
Savage, who is an employee of Ora Banda, and has
sufficient relevant experience on matters relating to
mine design, mine scheduling, mining methodology
and mining costs. Mr Savage is a member of the
Australian Institute of Mining and Metallurgy. Mr
Savage is satisfied that the information has been
determined to a pre-feasibility level of accuracy or
better. Mr Savage consents to the inclusion of the
matters based on his information in the form and
context in which it appears.
The information that relates to Open Pit Ore Reserves
is based on, and fairly and accurately represents,
information and supporting documentation
compiled by Mr Geoff Davidson, who is an
independent mining engineering consultant who is
employed by Mining and Cost Engineering Pty Ltd,
and has sufficient relevant experience to advise
Ora Banda on matters relating to mine design, mine
scheduling, mining methodology and mining costs.
Mr Davidson is a Fellow member of the Australian
Institute of Mining and Metallurgy. Mr Davidson is
satisfied that the information has been determined
to a pre-feasibility level of accuracy or better, based
on the data provided by Ora Banda. Mr Davidson
consents to the inclusion of the matters based on
his information in the form and context in which it
appears.
50
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
AUDITOR’S INDEPENDENCE
DECLARATION
AUDITOR’S INDEPENDENCE DECLARATION
51
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
AUDITOR’S INDEPENDENCE DECLARATION
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 2024 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
25 September 2024
52
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
FINANCIAL
REPORT
52
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
53
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2024
30 June 2024
30 June 2023
Notes
$’000
$’000
Revenue
2
214,236
135,888
Cost of sales
5
(183,632)
(157,874)
Gross profit/(loss)
30,604
(21,986)
Other income
3
24,501
4,528
Corporate and administration expenses
6
(16,806)
(15,639)
Exploration and evaluation expenses
(7,203)
(8,646)
Operating profit/(loss)
31,096
(41,743)
Finance income
7
620
362
Finance expense
7
(4,147)
(2,744)
Profit/(loss) before income tax expense
27,569
(44,125)
Income tax (expense)/benefit
9
-
-
Profit/(loss) after tax for the year
27,569
(44,125)
Other comprehensive income
Items that will not be reclassified to profit or loss
Changes in fair value of financial assets at fair value
through OCI
40
(53)
Total comprehensive income for the year
27,609
(44,178)
Total comprehensive profit/(loss) attributable to:
Equity holders of the Parent
27,609
(44,178)
Basic profit/(loss) per share
31
1.62
(3.23)
Diluted profit/(loss) per share
31
1.47
(3.23)
The above statement should be read in conjunction with the accompanying notes.
54
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
30 June 2024
30 June 2023
Notes
$’000
$’000
Assets
Current assets
Cash and cash equivalents
10
26,804
24,729
Trade and other receivables
11
4,445
7,554
Inventories
12
24,775
16,638
Assets classified as held for sale
8
-
1,378
Total current assets
56,024
50,299
Non-current assets
Receivables and other assets
11
554
626
Mine properties
13
82,804
24,310
Property, plant and equipment
14
33,125
22,301
Right-of-use assets
15
23,304
16,773
Investments
-
310
Total non-current assets
139,787
64,320
Total assets
195,811
114,619
Liabilities
Current liabilities
Trade and other payables
17
46,513
31,804
Lease liabilities
18
13,906
8,828
Borrowings
19
3,986
-
Provisions
20
2,737
1,894
Liabilities directly associated with assets classified as
held for sale
8
-
398
Total current liabilities
67,142
42,924
Non-current liabilities
Lease liabilities
18
13,196
12,041
Borrowings
19
-
10,930
Provisions
20
18,687
17,639
Total non-current liabilities
31,883
40,610
Total liabilities
99,025
83,534
Net assets
96,786
31,085
Equity
Share capital
21
526,532
493,150
Reserves
22
16,718
11,968
Accumulated losses
(446,464)
(474,033)
Total equity
96,786
31,085
The above statement should be read in conjunction with the accompanying notes.
55
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
Contributed
equity
Accumulated
losses
Other
contributed
equity
Share-
based
payments
reserve
Financial
assets at
fair value
through
OCI
Total
Consolidated
Notes
$’000
$’000
$’000
$’000
$’000
$’000
At 30 June 2022
463,299
(431,213)
-
2,795
(46)
34,835
Loss for the year
-
(44,125)
-
-
-
(44,125)
Other comprehensive
income
-
-
-
-
(53)
(53)
Total comprehensive
loss
-
(44,125)
-
-
(53)
(44,178)
Issue of ordinary shares
(net of costs)
21
29,018
-
-
-
-
29,018
Contributions from
related party
19
-
-
4,290
-
-
4,290
Exercise of employee
share awards
21
833
-
-
(833)
-
-
Share-based payments
32
-
-
-
7,120
-
7,120
Lapsed share-based
payments
-
1,305
-
(1,305)
-
-
Transactions with
owners of the Company
29,851
1,305
4,290
4,982
-
40,428
As 30 June 2023
493,150
(474,033)
4,290
7,777
(99)
31,085
Profit for the year
-
27,569
-
-
-
27,569
Other comprehensive
income
-
-
-
-
40
40
Total comprehensive
income
-
27,569
-
-
40
27,609
Issue of ordinary shares
(net of costs)
21
32,405
-
-
-
-
32,405
Exercise of employee
share awards
21
977
-
-
(977)
-
-
Share-based payments
32
-
-
-
5,687
-
5,687
Transactions with
owners of the Company
33,382
-
-
4,710
-
38,092
At 30 June 2024
526,532
(446,464)
4,290
12,487
(59)
96,786
The above statement should be read in conjunction with the accompanying notes.
56
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
30 June 2024
30 June 2023
Notes
$’000
$’000
Cash flows from operating activities
Receipts from customers
214,742
135,888
Payments to suppliers and employees
(175,692)
(158,417)
Interest received
620
362
Interest paid
(3,420)
(1,300)
Net cash inflow/(outflow) from operating activities
30
36,250
(23,467)
Cash flows from investing activities
Payments for development expenses
(52,972)
(8,856)
Payments for property, plant and equipment
(16,119)
(7,870)
Refund of deposits
72
1,989
Proceeds from disposal of assets
3 & 8
9,350
3,500
Proceeds from formation of JV
4
26,000
-
Payment for costs associated with formation of JV
4
(5,820)
-
Net cash (outflow) from investing activities
(39,489)
(11,237)
Cash flows from financing activities
Proceeds from the issue of shares
21
30,000
30,050
Payments for costs of raising capital
21
(1,373)
(1,032)
Deposit received for future royalties
19
-
3,440
Proceeds from borrowings
19
-
11,000
Repayment of borrowings
19
(7,000)
-
Repayment of lease liabilities
18
(16,313)
(11,780)
Net cash inflow from financing activities
5,314
31,678
Net increase/(decrease) in cash and cash equivalents
held
2,075
(3,026)
Cash and cash equivalents at the beginning of the year
24,729
27,755
Cash and cash equivalents at the end of the year
10
26,804
24,729
The above statement should be read in conjunction with the accompanying notes.
57
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1.
BASIS OF PREPARATION
Ora Banda Mining Ltd (‘Company’) and its
subsidiaries 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 25 September
2024.
a. Introduction and Statement of Compliance
The consolidated financial statements of the
Company for the financial year ended 30 June 2024
(‘consolidated financial statements’) comprise the
Company and the entities it controlled (‘Group’).
The consolidated financial statements comprise the
financial statements and notes of the Group. A list of
controlled companies (subsidiaries) at year end is
disclosed in Note 28.
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. The consolidated financial statements
are 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.
The financial statements of subsidiaries are
prepared for the same reporting period as the
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.
b. 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.
c. 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 2024 the Group had cash of $26.8 million
and a working capital of $2.8 million (excluding $13.9
million in lease liabilities). The Group generated a
profit after tax of $27.6 million for the year ended
30 June 2024, driven by proceeds received on the
completion of the Lady Ida tenement sale and
proceeds received on the formation of the Joint
Venture with WesCEF. Net cash outflows from
operating and investing activities was $3.2 million
reflecting improved operations during the year
($34.7 million outflow in the prior year).
58
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
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:
» Riverina Underground mine reaching commercial
production in Q1 FY25 and operating in line with
schedule and budget;
» development of the Group’s second underground
mine (Sand King) in line with schedule and budget
in FY25;
» achieving planned gold production (volume, grade
and recoveries) at forecast cost of production
from 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.
d. 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.
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
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.
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 5 & 13: Amortisation of development
expenditure – estimation of future mineable
inventory and future development expenditure
when calculating units of production amortisation;
» Note 13: Judgement involved in the determination
of when an asset has reached commercial
production;
» Note 12: Systematic allocation of cost to inventory
for saleable ore produced;
» Note 12: Inventory net realisable value -
estimations around selling price in the ordinary
course of business and estimated costs necessary
to make the sale;
» Note 13: Reserves and resources – estimating
reserves and resources;
59
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
» Notes 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.
2. REVENUE
30 June 2024
30 June 2023
$’000
$’000
Gold sales
213,623
135,570
Silver sales
613
318
214,236
135,888
No sales were made under hedge arrangements
during the current and prior financial period. The
Company has no hedge arrangements for future
financial years.
Included in gold sales is revenue of $7.7 million
from a third-party toll treatment campaign at FMR
Investments Greenfields mill. This campaign used
excess lower grade ore stockpiled (2,575oz) that did
not form part of the Davyhurst processing schedule.
Accounting policies
Gold bullion sales
The Group 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
received or receivable for the transfer of control of
the asset;
» the Group 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.
3. OTHER INCOME
30 June 2024
30 June 2023
$’000
$’000
(Loss)/gain on modification of rights of use asset
(536)
1,967
Net gain on the sale of assets1
9,021
2,500
Net gain from formation of the WesCEF JV (Note 4)
16,016
-
Other income
-
61
24,501
4,528
1.
On 16 March 2023, the Company announced the sale of non-core Lady Ida exploration tenements to Lamerton Pty Ltd and Geoda Pty Ltd
for $10 million. At 30 June 2023, Ministerial consent for the transfer of tenements was outstanding. Accordingly, this transaction was
not recorded as a sale at 30 June 2023.
The transaction completed on 19 September 2023 following completion of all conditions precedent and subsequent receipt of the
remaining $9.0 million.
60
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
4. WESCEF JV
On 30 October 2023 the Group signed a Lithium
focused JV with WesCEF. Key details of the binding JV
and farm-in agreement are as follows:
» The Group sold 65% of its mineral rights (excluding
gold and by-products) that are non-core to the
Group on the Davyhurst tenement package for
$26.0 million cash consideration and a 2% royalty;
» Davyston Exploration Pty Ltd (‘DEPL’), a wholly
owned subsidiary of WesCEF, and the Group to form
a 65%/35% JV to advance exploration of the large
under-explored tenement package owned by the
Group;
» DEPL has the ability to sole fund $15 million of
exploration over three years to increase its stake
in JV to 80%;
» The Group is free carried from any discovery of
any mineral excluding gold and by-products to the
completion of a Definitive Feasibility Study (‘DFS’)
over the area applicable to that DFS;
» Areas outside the DFS area will remain in the
exploration JV, with exploration solely funded by
DEPL up to any further completed DFS;
» Upon completion of each DFS, DEPL has the option
to acquire the Group’s remaining JV interest in the
DFS area for any mineral excluding gold and by-
products only at fair value (to be agreed between
the parties or determined by an independent
expert); and
» The Group retains all rights to gold minerals over
the entire Group tenement package and maintains
exclusive access over current and planned gold
mining areas.
Cash consideration for the deal totalled
$30.0 million, payable as follows:
» $26.0 million payable upfront by DEPL upon
completion, with Hawke's Point Holdings L.P.
('Hawke's Point') having the election to pay a
further $4.0 million royalty component in cash or
reduce existing debt facility:
–
Of the total $26.0 million, $4.0 million was
payable upon the earlier of the execution
of formal mineral sharing, JV and royalty
agreements or 30 April 2024; and
–
The Hawke's Point $4.0 million relates to Ora
Banda on-selling 1.5% of the 2% royalty (for
non-gold minerals products).
During the year, the following events have occurred
in relation to the above:
» The Group and DEPL signed an amendment to
the above transaction to allow for completion of
stage 1 of the transaction;
» This transaction (Tranche 1) completed on
22 December 2023, with Ora Banda receiving
$10.0 million cash consideration;
» Concurrently with the payment of the
$10.0 million, the formation of the JV with DEPL
was completed for the tenements whose
conditions precedent for the grant of mineral
rights have been satisfied; and
» The deal completed in April 2024 with all
remaining conditions precedent being satisfied.
The Group received the second cash payment of
$11.7 million on 23 April 2024 and the remaining
$4.3 million on 30 April 2024;
» Total outflows associated with the WesCEF
transaction totalled $10.0 million. This included
$6.7 million paid in cash and shares for the
Riverina legal settlement, $1.1 million paid in
cash and shares for Austsino royalty termination,
$1.5 million in legal costs associated with
completion of the transaction, $0.3 million to
St Barbara Limited for termination of the Carnegie
Royalty and $0.4 million for shares issued to
Sternship as advisors for the transaction; and
» The Company received shareholder approval
for the sale of 1.5% of the 2% royalty (for non-
gold minerals products) to Hawke’s Point for
$4.0 million. It is expected to be recovered in the
December 24 quarter on completion of the final
royalty documentation.
Reconciliation to net gain on the
formation of JV:
$’000
Proceeds received on formation of JV
26,000
Costs associated with formation of JV
(9,984)
Net gain from formation of the WesCEF JV
16,016
61
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
5.
COST OF SALES
30 June 2024
30 June 2023
Notes
$’000
$’000
Open pit mining
47,144
60,041
Underground mining
15,498
-
Processing
45,510
35,911
Toll treatment
5,876
-
Haulage
13,365
11,312
Site services
12,621
8,930
Employee benefits expense
21,822
19,422
Royalties
6,229
3,125
Depreciation
14 & 15
16,973
9,842
Amortisation
13
5,579
7,665
Changes in inventories
(17,994)
(7,353)
Inventory write down
11,009
8,979
183,632
157,874
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.
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.
62
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
The estimated useful lives for the current and
comparative period are as follows:
Period
Buildings
3-6 years
Infrastructure
3-6 years
Plant and equipment
3-6 years
Office furniture and equipment
3-6 years
Motor vehicles
5-7 years
Royalties
State Royalty
Royalties are payable on lodgement with the refining
counterparty and are recognised as the sale occurs.
Third Party Royalty
Third party royalties are payable on total sales, less
refining charges and are recognised as the sale
occurs.
6. CORPORATE AND ADMINISTRATION EXPENSES
30 June 2024
30 June 2023
$’000
$’000
Employee benefits expenses
5,914
4,027
Share-based payments
5,687
7,120
Administration
5,033
4,212
Depreciation expense
172
280
16,806
15,639
7.
FINANCE INCOME/(EXPENSE)
30 June 2024
30 June 2023
$’000
$’000
Interest income
620
362
620
362
Provisions: unwinding of discount
(671)
(664)
Interest expense
(3,420)
(1,300)
Finance charges
(56)
(780)
(4,147)
(2,744)
Net finance expense
(3,527)
(2,382)
Accounting policies
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.
63
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
8. 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.
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 and was recorded
as a current payable (refer Note 17) and the
remaining balance of $9.0 million was outstanding at
30 June 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:
Assets classified as held for sale
$’000
Development asset (Note 13)
1,378
Total assets held for sale
1,378
Liabilities directly associated with assets classified as held for sale
Provision for rehabilitation (Note 20)
(398)
Total liabilities held for sale
(398)
Net assets held for sale
980
The transaction was completed and the $9.0 million
was received in full on 19 September 2023 (refer to
Note 3).
9. INCOME TAX
a. Components of tax expense:
30 June 2024
30 June 2023
$’000
$’000
Current tax benefit
-
-
Deferred tax
-
-
-
-
b. Deferred income tax related to items recognised
directly to equity
30 June 2024
30 June 2023
$’000
$’000
Gain on financial asset at fair value through other
comprehensive income
-
-
64
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
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 2024
30 June 2023
$’000
$’000
Prima facie income tax (expense)/ benefit on profit/(loss)
before income tax at 30% (2023: 30%)
(8,271)
13,237
Tax effect of:
Expenses not deductible in determining taxable profit/
loss
(1,564)
(2,360)
Tax losses recouped not previously recognised
9,835
-
Movements in deferred tax balances not recognised
during the year
-
(10,877)
Income tax (expense)/benefit attributable to profit/(loss)
-
-
d. Deferred taxes
30 June 2024
30 June 2023
$’000
$’000
Deferred tax assets
8,233
7,184
Deferred tax liabilities
(8,233)
(7,184)
Net deferred tax assets/(liabilities)
-
-
Deferred tax liabilities
Right of use assets
(6,991)
(5,032)
Rehabilitation
(1,242)
(2,152)
Gross deferred tax liabilities
(8,233)
(7,184)
Deferred tax assets
Rehabilitation
5,478
4,802
Lease liabilities
2,755
2,382
Gross deferred tax assets
8,233
7,184
Based on the Group’s 2023 financial year income tax return and estimates for 30 June 2024, the Group has an
unrecognised net deferred tax asset of $68.2 million on carried forward tax losses of $227.4 million.
65
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
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.
Tax losses and deferred tax assets
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
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. Further details
provided on significant judgements below.
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.
Tax consolidation
Ora Banda and its wholly owned Australian resident
subsidiaries have formed a tax consolidated group
with effect from 1 July 2002. Ora Banda 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.
66
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FINANCIAL REPORT
10. CASH AND CASH EQUIVALENTS
30 June 2024
30 June 2023
$’000
$’000
Cash at bank and on hand
26,804
24,729
26,804
24,729
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.
11. TRADE AND OTHER RECEIVABLES
30 June 2024
30 June 2023
$’000
$’000
Current
GST receivables
2,388
5,230
Prepayments
1,620
1,082
Other receivables
437
1,242
4,445
7,554
Non-current
Security deposits
554
626
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.
12. INVENTORIES
30 June 2024
30 June 2023
$’000
$’000
Materials and supplies - cost
6,323
5,169
Ore stocks – net realisable value
11,163
8,162
Gold in circuit – net realisable value
6,725
3,307
Bullion on hand – cost
564
-
Total inventories
24,775
16,638
67
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
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 $11.0 million (2023: $9.0 million)
as a result of a write down to net realisable value.
This write down was recognised as an expense
within cost of sales.
An allocation of cost is made to saleable ore
extracted during the development phase of a
mine. This allocation is made on a reasonable
and systematic manner, generally based on
physical measures distinguishing between
saleable ore and waste.
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.
13. MINE PROPERTIES
30 June 2024
30 June 2023
$’000
$’000
Development
Cost brought forward
19,535
5,690
Expenditure during the year
62,027
15,223
Disposal of assets (Note 8)
-
(1,378)
Rehabilitation provision adjustment
1,242
-
Balance at 30 June
82,804
19,535
Production
Cost brought forward
4,775
15,472
Rehabilitation provision adjustment
804
(3,032)
Amortisation expense
(5,579)
(7,665)
Balance at 30 June
-
4,775
Total Mine Properties
82,804
24,310
68
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
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
» the expenditure provides future economic
benefit by developing the underlying resources to
further progress the asset towards commercial
production.
Development phase assets are transferred to
mine properties and mining assets when mining
production commences at the area of interest.
The majority of development expenditure during
the year relates to the construction and development
at the Riverina Underground mine.
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 project are the completion of a feasibility study,
the existence of sufficient resources to proceed with
development and approval by the Board 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.
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;
» 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.
The Group has determined that the Riverina
Underground mine had not achieved commercial
production as at 30 June 2024. Commercial
production was declared post 30 June 2024.
69
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
Reserves and resources
Resources are estimates of the amount of gold
product that can be economically extracted from
the Group’s mine properties. In order to calculate
resources, estimates and assumptions are required
about a range of geological, technical and economic
factors, including quantities, grades, production
techniques, recovery rates, production costs,
future capital requirements, short and long term
commodity prices and exchange rates.
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 Mineral 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 Mineral Resources. Due to
economic assumptions used to estimate Resources
changing from period to period, and geological
data is generated during the course of operations,
estimates of Reserves and Resources may change
from period to period. Changes in reported
Resources and Reserves may affect the Group’s
financial results and financial position in a number
of ways, including:
» 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.
14. PROPERTY, PLANT AND EQUIPMENT
Motor Vehicles
Buildings &
Infrastructure
Plant &
Equipment
Capital WIP
Total
$’000
$’000
$’000
$’000
$’000
Balance 1 July 2022
397
4,933
12,305
507
18,142
Additions
-
-
-
9,073
9,073
Transfers
104
1,788
4,777
(6,669)
-
Depreciation expense
(120)
(1,001)
(3,793)
-
(4,914)
Balance 30 June 2023
381
5,720
13,289
2,911
22,301
Balance 1 July 2023
381
5,720
13,289
2,911
22,301
Additions
-
-
-
18,559
18,559
Transfers
295
6,404
9,549
(16,248)
-
Depreciation expense
(153)
(1,367)
(6,215)
-
(7,735)
Balance 30 June 2024
523
10,757
16,623
5,222
33,125
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,
70
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
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.
15. RIGHT-OF-USE ASSETS
30 June 2024
30 June 2023
$’000
$’000
Cost
Opening balance
53,981
43,834
Disposals
-
(2,343)
Additions
22,007
12,490
Closing balance
75,988
53,981
Accumulated depreciation and impairment
Opening balance
(37,208)
(31,417)
Disposal
-
130
Depreciation charge for the year
(15,476)
(5,921)
Closing balance
(52,684)
(37,208)
Carrying amount – Opening balance
16,773
12,417
Carrying amount – Closing balance
23,304
16,773
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.
Key additions during the year reflect modifications to
the existing Byrnecut Underground mining contract,
with additions to the fleet as a result of a ramp up in
operations towards steady state.
71
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
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.
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
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.
There were no indications that an asset or DGP CGU
required impairment testing at 30 June 2024.
17. TRADE AND OTHER PAYABLES
30 June 2024
30 June 2023
$’000
$’000
Current
Trade payables
19,054
14,150
Accruals
25,629
15,748
Other payables
1,830
906
Deposit received in advance (Note 8)
-
1,000
46,513
31,804
A sensitivity analysis of financial assets and
liabilities, together with the Group’s exposure to
liquidity risk, are disclosed in Note 27.
72
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
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.
18. LEASE LIABILITIES
30 June 2024
30 June 2023
$’000
$’000
Current
13,906
8,828
Non-current
13,196
12,041
27,102
20,869
Maturity analysis
Within one year
15,698
9,939
Later than one year but not later than five years
13,675
12,902
Greater than five years
291
-
Minimum lease payments
29,664
22,841
Future finance charges
(2,562)
(1,972)
Total lease liabilities for right of use assets
27,102
20,869
The right-of-use assets to which the lease liabilities
relate are disclosed in Note 15.
For the year ended 30 June 2024, the Group
recognised $22.0 million of additional lease
liabilities, $16.0 million of lease repayments and
$2.0 million of interest costs in relation to these
leases.
Accounting policy
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.
73
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
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
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
30 June 2024
30 June 2023
$’000
$’000
Current
3,986
-
Non-current
-
10,930
3,986
10,930
Carrying amount at beginning of year
10,930
-
Proceeds received
-
11,000
Fair value adjustments
-
(850)
Repayment
(7,000)
-
Finance charge
56
780
Carrying amount at the end of year
3,986
10,930
Accounting policy
The Company’s borrowings are represented by
funding received from its major shareholder Hawke’s
Point, 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 major 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.
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.
74
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
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, consisting 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 discounted cash flows, representing fair value,
were measured at $10.1 million on initial recognition.
Interest related to the financial liability is 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 million (including proceeds of the royalty),
equalling $2.6 million, was recorded as Other
Contributed Equity in the Statement of Changes in
Equity.
Modification
On 21 March 2023, the Company announced the
sale of non-core Lady Ida exploration tenements to
Beacon Minerals Ltd. The agreement included the
following, which was approved at the EGM held on
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; 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 recorded as Other Contributed
Equity, consistent with the proceeds from the original
royalty.
In the current reporting period, the Group repaid
$7.0 million of the outstanding debt following the
completion of the WesCEF JV deal and the subsequent
receipt of proceeds. The remaining $4.0 million debt
owing is expected to be settled on completion of the
final royalty documentation as discussed in Note 4.
75
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
20. PROVISIONS
30 June 2024
30 June 2023
$’000
$’000
Current
Annual leave
2,109
1,883
Other
628
11
2,737
1,894
Non-current
Rehabilitation (a)
18,262
16,995
Long service leave
169
54
Other
256
590
18,687
17,639
a. Provision for rehabilitation
30 June 2024
30 June 2023
$’000
$’000
Carrying amount at beginning of year
16,995
19,761
Amount used during the year
(1,450)
-
Disposal of assets (Note 8)
-
(398)
Changes in provisions recognised
2,046
(3,032)
Unwinding of discount
671
664
Carrying amount at the end of year
18,262
16,995
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 Group’s two key project areas,
being Carnegie and Siberia;
» cost estimates for the two project areas are based
on actual mining contractor, equipment rates and
average industry contracting rates;
» provision incorporates costs for the demolition
and cartage of fixed infrastructure to the nearest
nominated waste disposal area;
» rehabilitation costs are incurred over a five-year
forecast period;
» 15% (2023: 15%) 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 4.08% (2023: 3.95%),
estimated based on yields of government risk-free
bonds; and
» inflation rate of 2.8% (2023: 3.3%), estimated
based on Reserve Bank of Australia forecast and
rate for inflation.
76
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
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.
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.
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
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.
77
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
21. SHARE CAPITAL
30 June 2024
30 June 2024
30 June 2023
30 June 2023
Number
$’000
Number
$’000
Issued and paid-up capital
1,857,093,694
526,532
1,694,943,693
493,150
a. Movements in share capital
Number
$’000
Balance as at 30 June 2022
1,373,987,303
463,299
Shares issued on vesting of options & performance rights
3,845,722
833
Shares issued under in-substance share options
50,000,000
-
Shares issued under placement and institutional placement4
267,110,668
30,050
Cost of capital raising
-
(1,032)
Balance as at 30 June 2023
1,694,943,693
493,150
Shares issued on vesting of performance rights2
12,333,572
977
Shares issued to Directors as part of remuneration3
329,253
84
Shares issued under placement and institutional placement4
136,363,637
30,000
Shares issued to advisors5
2,492,604
398
Shares issued as part of legal settlement6
10,630,935
3,296
Cost of capital raising
-
(1,373)
Balance as at 30 June 2024
1,857,093,694
526,532
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
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 short-term and long-term incentive schemes as
part of the remuneration packages for the employees
of the Group. Refer to Note 32 for further information.
2.
During the year 12,333,572 shares were issues as a result of the
exercise of unlisted vested performance rights at nil exercise
price;
3.
Fee Shares issued to each Director as approved by shareholders
at the AGM on 28 November 2023. Fee Shares are issued to each
Director quarterly, with the deemed issue price to be equal to
the VWAP of Shares calculated over the 10 Trading Days prior to
the end of the quarter;
4.
On 1 March 2024, the Company completed a capital raising
for $30 million supported by existing shareholders and new
institutional investors. The placement resulted in the issue of
136,363,637 fully paid ordinary shares at an issue price of $0.22
cents per share, raising $30 million (before costs). In the prior
year, the Company completed a $30 million placement with
the issue of 267,110,668 at an issue price of $0.1125 cents per
share;
5.
Shares issued to the Company’s advisors, Sternship Advisers, in
lieu of cash payment of their fees; and
6.
During the year 10,630,935 shares were issued as part of
the settlement of the Riverina legal dispute with Riverina
Resources Pty Ltd and Greenstone Resources Limited (refer to
Note 4).
78
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
d. Dividends paid or proposed
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.
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
30 June 2024
30 June 2023
$
$
Auditing and reviewing the financial reports
182,500
152,500
182,500
152,500
b. Other auditors and their related network firms
30 June 2024
30 June 2023
$
$
Other statutory assurance services
-
1,500
-
1,500
Total auditor remuneration
182,500
154,000
79
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
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 licences 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:
30 June 2024
30 June 2023
$’000
$’000
Within one year
1,226
1,141
Between two and five years
1,992
2,479
3,218
3,620
b. Capital
Significant capital expenditure commitments at the
end of the reporting period but not recognised as
liabilities are as follows:
Amounts paid or due and payable:
30 June 2024
30 June 2023
$’000
$’000
Within one year
3,933
4,351
Between two and five years
-
585
3,933
4,936
25. SEGMENT INFORMATION
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 ABC Refinery
and the Perth Mint, 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 that is not already
contained in the consolidated financial statements.
Major customers
During the year ended 30 June 2024, revenue was
derived from sales from two customers:
» ABC Refinery: $206.5 million (2023: $39.1 million);
and
» Perth Mint: $7.7 million (2023: $96.8 million). Sales
to Perth Mint in the current year related to toll
treatment sales.
80
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FINANCIAL REPORT
26. RELATED PARTY TRANSACTIONS
a. Key management personnel compensation
30 June 2024
30 June 2023
$
$
Short-term employee benefits
1,983,043
2,168,751
Post-employment benefits
137,680
153,439
Share-based payments
3,405,742
3,983,178
5,526,465
6,305,368
As discussed in Note 29, the Company is liable to
Hawke's Point to pay a net smelter return royalty
with respect of gold produced from 1 January 2024
onwards. This royalty is payable at 1.0%.
During the current year, the Company incurred a
royalty expense to Hawke's Point of $1,178,837, with
$488,969 paid and $689,868 payable at year end.
Refer to Note 19 for details of borrowings from
related party.
b. Individual Directors and executives’ compensation disclosures
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.
During the year 12,291,024 performance rights
were awarded to KMP. Refer to Note 32 and the
Remuneration Report for further details of related
party transactions.
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 of financial instruments that it
held at the end of the year:
» Interest rate risk;
» Liquidity risk; and
» Credit risk.
The Directors have overall responsibility for
identifying and managing operational and
financial risks.
81
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
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.
At balance date, the interest rate profile of the
Group’s interest-bearing financial instruments are:
30 June 2024
30 June 2023
$’000
$’000
Fixed rate instruments
Lease liabilities
27,102
20,869
Borrowings
3,986
10,930
31,088
31,799
Variable rate instruments
Cash and cash equivalents
26,804
24,729
Security deposits
554
626
27,358
25,355
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 profit of $0.3 million
for the year ended 30 June 2024 (2023: an increase/
decrease in net loss of $0.2 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:
< 12 months
1-5 years
> 5 years
Total
contractual
cash flows
Carrying
amount
$’000
$’000
$’000
$’000
$’000
30 June 2024
Trade and other
payables
46,513
-
-
46,513
46,513
Lease liabilities
15,698
13,675
291
29,664
27,102
Borrowings
4,102
-
-
4,102
3,986
Net maturities
66,313
13,675
291
80,279
77,601
82
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
< 12 months
1-5 years
> 5 years
Total
contractual
cash flows
Carrying
amount
$’000
$’000
$’000
$’000
$’000
30 June 2023
Trade and other
payables
31,804
-
-
31,804
31,804
Lease liabilities
9,939
12,902
-
22,841
20,869
Borrowings
-
12,952
-
12,952
10,930
Net maturities
41,743
25,854
-
67,597
63,603
c. Credit risk
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 ABC Refinery
and the Perth Mint. At 30 June 2024 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.
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.
Given expected repayment date of September 2024,
the fair value and carrying value of borrowings is
materially consistent.
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
rates that impact on the Australian dollar gold price
whereas the majority of costs, including capital
expenditure, are denominated in Australian dollars.
83
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
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
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
Class of
shares
Equity holding
2024
2023
Monarch Nickel Pty Limited
Australia
Ordinary
100
100
Monarch Gold Pty Limited
Australia
Ordinary
80
80
Carnegie Gold Pty Limited
Australia
Ordinary
100
100
Siberia Mining Corporation Pty Limited
Australia
Ordinary
100
100
Eastern Goldfields Mining Services Pty Limited
Australia
Ordinary
100
100
Controlled entities of Siberia Mining Corporation Pty Limited
Mt Ida Gold Operations Pty Limited
Australia
Ordinary
100
100
Ida Gold Operations Pty Limited
Australia
Ordinary
100
100
Pilbara Metals Pty Limited
Australia
Ordinary
100
100
Siberia Gold Operations Pty Limited
Australia
Ordinary
100
100
Holding company
The ultimate holding company of the Group is Ora
Banda Mining Ltd, 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.
29. CONTINGENT LIABILITIES
Net Smelter Royalty
The Company has an agreement with Hawke's
Point to pay a net smelter return (‘NSR’) royalty
with respect to certain gold products. The royalty is
payable at 1.0% NSR and is uncapped.
Royalty relating to the current period gold production
is captured as a payable on the balance sheet.
Future royalty payments are contingent on future
production 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.
84
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
30. CASH FLOW STATEMENT
a. Reconciliation of cash and cash equivalents
30 June 2024
30 June 2023
$’000
$’000
Cash balances comprise:
Cash and cash equivalents
26,804
24,729
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
30 June 2024
30 June 2023
$’000
$’000
Profit/(loss) after income tax
27,569
(44,125)
Adjusted for:
Depreciation and amortisation
22,875
17,646
Finance charge
56
-
Accretion of rehabilitation provision
671
664
Share-based payments
5,687
7,120
(Loss)/gain on modification of rights of use asset
535
(1,967)
NRV adjustment
-
142
Net gain on the sale of assets
(9,021)
-
Net proceeds from formation of WesCEF JV
(20,180)
-
Other7
3,500
-
Changes in operating assets and liabilities:
Decrease in receivables
3,648
5,237
(Increase) in inventories
(8,137)
(473)
(Increase) in other assets
(466)
(196)
Increase in payables and provisions
9,513
2,959
Net cash inflow/(outflow) from operating activities
36,250
(23,467)
7.
GST in relation to proceeds from the formation of JV with WesCEF and completion of Lady Ida tenement sale.
85
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
31. EARNINGS/(LOSS) PER SHARE
30 June 2024
30 June 2023
$’000
$’000
Profit/(loss) used in the calculation of basic & diluted loss
per share
27,569
(44,125)
Number
Number8
Weighted average number of ordinary shares on issue used
in the calculation of basic earnings per share
1,699,339,400
1,367,656,798
Effect of dilution9
180,181,757
-
Weighted average number of ordinary shares on issue
adjusted for the effect of dilution
1,879,521,157
1,367,656,798
Basic earnings/(loss) per share
1.62
(3.23)
Diluted earnings/(loss) per share
1.47
(3.23)
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.
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 2024, a share-based
payment expense of $5,686,631 (30 June 2023:
$7,119,719) 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
2024
Number
2023
Number
Balance at beginning of the year
152,962,512
47,756,258
Granted during the year
41,497,267
140,052,533
Exercised/lapsed during year
(12,333,572)
(3,845,721)
Forfeited/cancelled during the year
(17,684,556)
(31,000,558)
Closing balance at end of the year
164,441,651
152,962,512
8.
A total of 152,962,512 option and performance rights were on issue at 30 June 2023. They have not been accounted for in the prior year
diluted earnings per share calculations as the Group was in a loss position.
9.
Current year effect of dilution includes 50 million in-substance share options, with the remaining instruments relating to performance
rights on issue.
Above table excludes 50 million loan shares which are included in issued capital.
86
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
Retention rights
During the year, the Company issued 9,000,000
retention incentive rights to 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
Tranche No.
Number issued
Vesting date
Fair value on grant date
18 December 2023
1
2,500,000
30 June 2026
$0.215
18 December 2023
2
2,500,000
30 June 2027
$0.215
18 December 2023
3
4,000,000
30 June 2028
$0.215
Short term incentive ('STI') rights
During the year the Company issued 2,596,225 STI
rights to the Company’s Managing Director. The STI
rights vested 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
28 November 2023
2,596,225
30 June 2024
$0.21
Based on FY24 results achieved, total award
on vesting date was 59%, resulting in 1,531,773
performance rights vesting and 1,064,452 STI rights
being forfeited.
Long term incentive ('LTI') rights
During the year the Company issued 29,901,042
LTI rights to the Managing Director and senior
management, including other key management
personnel.
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.
The model inputs for the LTI performance rights
granted during the year included:
Other KMP
Managing Director
Other KMP
Underlying security share price at grant date
$0.210
$0.215
Exercise price
Nil
Nil
Grant date
28-Nov-23
18-Dec-23
Vesting date
30-Jun-26
30-Jun-26
Expiry date
19-Dec-28
01-Jul-28
Risk-free rate
4.160%
3.705%
Volatility
80%
80%
Dividend yield
Nil
Nil
Number of performance rights granted
3,461,634
6,233,165
Valuation per performance right
$0.182
$0.188
Fair value per performance right class
$630,017
$1,171,835
87
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
Prior year rights
The table below sets out prior performance rights relating to KMP that are yet to vest:
Performance rights and in-substance
share options
Managing Director
Other KMP
Loan
Shares
Sing-on
Rights
Tranche 2
RTSR10
Rights
ATSR10
Rights
Performance
Rights
Underlying security share price at grant
date
$0.08
$0.08
$0.08
$0.08
$0.14
Exercise price
$0.035
Nil
Nil
Nil
Nil
Grant date
23-Nov-22
23-Nov-22
23-Nov-22
23-Nov-22
20 Mar-23
Vesting date
30-Jun-25
30-Jun-25
30-Jun-25
30-Jun-25
30-Jun-25
Expiry date
30-Jun-25
23-Nov-27
23-Nov-27
23-Nov-27
30-Jun-30
Risk-free rate
3.27%
3.27%
3.27%
3.27%
2.83%
Volatility
80%
80%
80%
80%
85%
Dividend yield
Nil
Nil
Nil
Nil
Nil
Number of performance rights granted
50,000,000
25,000,000
8,000,000
3,428,572
11,271,000
Valuation per performance right
$0.056
$0.061
$0.079
$0.058
$0.138
Fair value per performance right class
$2,800,000
$1,525,000
$632,000
$198,857
$1,555,398
Vesting conditions
Continued
service &
market
value of
each share
>$0.035
Continued
service
& 20 Day
VWAP
>$0.07 at
30 June
2025
Continued
service &
Note [A]
below
Continued
service &
Note [B]
below
Continued
service & TSR
performance
against Peer
Group
Note [A] – percentage of RTSR eligible to vest based
on below TSR performance relative to the Peer Group:
» below 50th percentile = nil
» 50th percentile = 50%
» between 50th percentile and 75th percentile = 50%
to 100% on a pro rata basis
» 75th percentile = 100%
Note [B] – percentage of rights eligible to vest based
on Company’s TSR performance:
» TSR less than 35% Company annual growth (‘CAGR’)
= nil
» TSR equal to or greater than 35% CAGR = 100%
Accounting policies
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.
10. RTSR = relative total shareholder return.
11. ATSR = absolute total shareholder return.
88
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
33. EVENTS AFTER BALANCE DATE
Subsequent to the period ended 30 June 2024, the
Company announced:
» Sand King Underground Final Investment Decision
('FID') was approved by the Board to become the
Company’s second underground mine at the
Davyhurst Gold Project;
» The appointment of Ms Kathryn Cutler as an
independent Non-Executive Director; and
» The appointment of Doug Warden as the
Company’s new Chief Financial Officer and Joint
Company Secretary effective 28 August 2024 to
replace Gareth Jones as Chief Financial Officer and
Joint Company Secretary.
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.
34. PARENT ENTITY INFORMATION
a. Financial position
30 June 2024
30 June 2023
$’000
$’000
Assets
Current assets
29,352
30,030
Non-current assets
98,113
31,655
Total assets
127,465
61,685
Liabilities
Current liabilities
29,546
19,722
Non-current liabilities
1,133
10,878
Total liabilities
30,679
30,600
Equity
Contributed equity
526,532
493,150
Accumulated losses
(446,464)
(474,0033)
Share based payments reserve
12,486
7,777
Financial assets at fair value through OCI
(59)
(99)
Other contributed equity
4,290
4,290
Total equity
96,786
31,085
b. Financial performance
30 June 2024
30 June 2023
$’000
$’000
Profit/(loss) for the year
27,569
(44,125)
Total comprehensive profit/(loss) for the year
27,569
(44,178)
89
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
FINANCIAL REPORT
c. Contingent liabilities and commitments
The parent entity does not have any commitments at
year end. Refer to note 24 for details of other Group
commitments.
Contingent liabilities of the parent entity are as per
those detailed in 29 of this report.
d. Deed of cross guarantee
Ora Banda 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.
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,
they also represent the ‘Extended Closed Group’.
As the Extended Closed Group includes all material
subsidiaries of Ora Banda, 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
consolidated entity and the Extended Closed Group.
CONSOLIDATED ENTITY
DISCLOSURE STATEMENT
90
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
90
91
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
The consolidated financial statements incorporate the assets and liabilities and results of the following
subsidiaries:
Incorporate subsidiaries
Country of
incorporation
Body
corporate,
partnership or
trust
Australian
or Foreign
tax
resident
Jurisdiction
for foreign
tax resident
Equity holding
(%)
2024
2023
Ora Banda Mining Ltd
Australia
Body corporate
Australia
N/a
100
100
Monarch Nickel Pty Limited
Australia
Body corporate
Australia
N/a
100
100
Monarch Gold Pty Limited
Australia
Body corporate
Australia
N/a
80
80
Carnegie Gold Pty Limited
Australia
Body corporate
Australia
N/a
100
100
Siberia Mining Corporation
Pty Limited
Australia
Body corporate
Australia
N/a
100
100
Eastern Goldfields Mining
Services Pty Limited
Australia
Body corporate
Australia
N/a
100
100
Mt Ida Gold Operations Pty
Limited
Australia
Body corporate
Australia
N/a
100
100
Ida Gold Operations Pty
Limited
Australia
Body corporate
Australia
N/a
100
100
Pilbara Metals Pty Limited
Australia
Body corporate
Australia
N/a
100
100
Siberia Gold Operations Pty
Limited
Australia
Body corporate
Australia
N/a
100
100
Determination of Tax Residency
Section 295 (3A) of the Corporations Acts 2001
requires that the tax residency of each entity which
is included in the Consolidated Entity Disclosures
('CEDS') be disclosed. In the context of an entity which
was an Australian resident, 'Australian resident' has
the meaning provided in the Income Tax Assessment
Act 1997. The determination of tax residency involves
judgement as the determination of tax residency is
highly fact dependent and there are currently several
different interpretations that could be adopted, and
which could give rise to a different conclusion on
residency.
In determining tax residency, the consolidated entity
has applied the following interpretations:
» Australian tax residency
The consolidated entity has applied current
legislation and judicial precedent, including
having regard to the Commissioner of Taxation’s
public guidance in Tax Ruling TR 2018/5.
» Foreign tax residency
The consolidated entity has applied current
legislation and judicial precedent in the
determination of foreign tax residency. Where
necessary, the consolidated entity has used
independent tax advisors in foreign jurisdictions
to assist in its determinations of tax residency to
ensure applicable foreign tax legislation has been
complied with.
92
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
DIRECTORS' DECLARATION
1. In the opinion of the Directors of Ora Banda Mining Ltd and its controlled
entities:
a. the Group’s consolidated financial statements and notes set out on pages
52 to 89 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
2024 and of its performance, for the financial year ended on that date;
ii. the consolidated entity disclosure statement on page 91 at the end of
the financial year is true and correct; and
iii. 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 2024.
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
25 September 2024
DIRECTORS’
DECLARATION
93
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
INDEPENDENT AUDITOR'S REPORT
INDEPENDENT
AUDITOR'S REPORT
94
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
INDEPENDENT AUDITOR'S REPORT
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 gives a true and fair
view, including of the Group’s financial
position as at 30 June 2024 and of its financial
performance for the year then ended, in
accordance with the Corporations Act 2001, in
compliance with Australian Accounting
Standards and the Corporations Regulations
2001.
The Financial Report comprises:
• Consolidated statement of financial position as at
30 June 2024;
• 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;
• Consolidated entity disclosure statement and
accompanying basis of preparation as at
30 June 2024;
• Notes, including material 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.
95
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
INDEPENDENT AUDITOR'S REPORT
Key Audit Matters
Key Audit Matters are those matters that, in our professional judgement, were of most significance in
our audit of the Financial Report of the current period.
This matter was 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 this matter.
Accounting for Riverina Underground mine start-up
Refer to Note 12 and Note 13 to the Financial Report
The key audit matter
How the matter was addressed in our audit
During the year the Group was developing the
Riverina Underground Mine (Riverina), ramping
up production and processing, including
producing saleable ore during the development
phase.
Australian Accounting Standards require an
allocation of cost to saleable ore extracted during
the development phase of the mine. Significant
judgement is required to determine a systematic
basis of allocation of costs relating to Riverina
between inventory (operating) and development.
Australian Accounting Standards do not provide
specific guidance for when an asset is in the
condition necessary to operate as intended by
management, and therefore, when depreciation
commences. The determination of this date for
the Riverina assets is subjective.
This was a key audit matter due to the audit
effort in testing the application of the accounting
standards regarding the basis of allocation of
costs and consideration of the condition of the
Riverina assets.
Our procedures included:
We assessed the Group’s method and basis for
allocating costs between development
expenditure and operating expenditure during
the development of the mine when saleable ore
is produced against industry practice.
We assessed the Group’s inventory
measurement policies against the requirements
of Australian Accounting Standards.
On a sample basis, we tested the
completeness and accuracy of key inputs used
by the Group to allocate costs to inventory and
development costs.
We recalculated the allocation of costs between
development expenditure and operating
expenditure.
We checked for recognition of revenue from
saleable ore, considering the requirements of
Australian Accounting Standards.
We assessed the criteria used by the Group to
determine that Riverina Underground Mine was
not yet operating in a manner intended by
management as of 30 June 2024 against
industry practice.
We evaluated the appropriateness of the
disclosures in the financial report associated
with the judgements made against Australian
Accounting Standards.
96
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
INDEPENDENT AUDITOR'S REPORT
Other Information
Other Information is financial and non-financial information in Ora Banda Mining Limited’s annual report
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.
Responsibilities of the Directors for the Financial Report
The Directors are responsible for:
• Preparing the Financial Report in accordance with the Corporations Act 2001, including giving a true
and fair view of the financial position and performance of the Group, and in compliance with
Australian Accounting Standards and the Corporations Regulations 2001;
• Implementing necessary internal control to enable the preparation of a Financial Report in
accordance with the Corporations Act 2001, including giving a true and fair view of the financial
position and performance of the Group, and that 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.
97
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
INDEPENDENT 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 2024, 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 28 to 43 of the Directors’ report for the year
ended 30 June 2024.
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
25 September 2024
ASX ADDITIONAL
INFORMATION
ASX ADDITIONAL INFORMATION
98
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
ASX ADDITIONAL INFORMATION
99
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
ASX ADDITIONAL INFORMATION
Tenement No.
Status
Registered Holder
Ownership
Location
E16/0344
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
E16/0456
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
E16/0473
Granted
CARNEGIE GOLD PTY LTD
100/100
Coolgardie
E16/0474
Granted
CARNEGIE GOLD PTY LTD
100/100
Coolgardie
E16/0475
Granted
BEACON MINING PTY LTD
100/100
Coolgardie
E16/0480
Granted
CARNEGIE GOLD PTY LTD
100/100
Coolgardie
E16/0482
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
E16/0483
Granted
BEACON MINING PTY LTD
100/100
Coolgardie
E16/0484
Granted
BEACON MINING PTY LTD
100/100
Coolgardie
E16/0486
Granted
BEACON MINING PTY LTD
100/100
Coolgardie
E16/0487
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
E24/0234
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
E29/0955
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
E30/0333
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
E30/0335
Granted
CARNEGIE GOLD PTY LTD
100/100
Coolgardie
E30/0338
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
E30/0454
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
E30/0468
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
E30/0490
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
E30/0491
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
E30/0504
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
E30/0565
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
G30/0006
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
G30/0007
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
G30/0008
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
G30/0009
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
L15/0224
Granted
LAMERTON PTY LTD AND GEODA PTY LTD
50/100
50/100
Coolgardie
L16/0058
Granted
LAMERTON PTY LTD AND GEODA PTY LTD
50/100
50/100
Coolgardie
L16/0062
Granted
LAMERTON PTY LTD AND GEODA PTY LTD
50/100
50/100
Coolgardie
L16/0072
Granted
CARNEGIE GOLD PTY LTD
100/100
Coolgardie
L16/0073
Granted
CARNEGIE GOLD PTY LTD
100/100
Coolgardie
L16/0103
Granted
LAMERTON PTY LTD AND GEODA PTY LTD
50/100
50/100
Coolgardie
L16/0134
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
100
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
ASX ADDITIONAL INFORMATION
Tenement No.
Status
Registered Holder
Ownership
Location
L16/0137
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
L16/0138
Granted
LAMERTON PTY LTD AND GEODA PTY LTD
50/100
50/100
Coolgardie
L16/0142
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
L24/0085
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
L24/0115
Granted
SIBERIA MINING CORPORATION PTY LTD
96/96
Kalgoorlie
L24/0170
Granted
CARNEGIE GOLD PTY LTD
100/100
Kalgoorlie
L24/0174
Granted
CARNEGIE GOLD PTY LTD
100/100
Kalgoorlie
L24/0188
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
L24/0224
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
L24/0233
Granted
CARNEGIE GOLD PTY LTD
100/100
Kalgoorlie
L24/0240
Granted
CARNEGIE GOLD PTY LTD
100/100
Kalgoorlie
L24/0242
Granted
CARNEGIE GOLD PTY LTD
100/100
Kalgoorlie
L24/0246
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
L30/0035
Granted
CARNEGIE GOLD PTY LTD
96/96
Menzies
L30/0037
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
L30/0069
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
L30/0074
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
L30/0077
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
L30/0078
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
L30/0079
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
L30/0081
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
L30/0082
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
L30/0083
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
L30/0086
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
L30/0088
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
L30/0096
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
L30/0097
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
L30/0098
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
M16/0262
Granted
LAMERTON PTY LTD AND GEODA PTY LTD
50/100
50/100
Coolgardie
M16/0263
Granted
LAMERTON PTY LTD AND GEODA PTY LTD
50/100
50/100
Coolgardie
M16/0264
Granted
LAMERTON PTY LTD AND GEODA PTY LTD
50/100
50/100
Coolgardie
M16/0268
Granted
CARNEGIE GOLD PTY LTD
100/100
Coolgardie
M16/0470
Granted
CARNEGIE GOLD PTY LTD
100/100
Coolgardie
101
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
ASX ADDITIONAL INFORMATION
Tenement No.
Status
Registered Holder
Ownership
Location
M24/0039
Granted
CHARLES ROBERT GARDNER
96/96
Kalgoorlie
M24/0115
Granted
SIBERIA MINING CORPORATION PTY LTD
96/96
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
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0660
Granted
HERON RESOURCES LIMITED
100/100
Kalgoorlie
M24/0663
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0664
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0665
Granted
HERON RESOURCES LIMITED AND IMPRESS
ENERGY PTY LTD
90/100
10/100
Kalgoorlie
M24/0683-I
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0686
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0757
Granted
KALGOORLIE NICKEL PTY LTD
100/100
Kalgoorlie
M24/0772-I
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0797
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
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
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0916
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0960
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0973
Application
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M30/0102
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
M30/0103
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
M30/0111
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
M30/0123
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
M30/0126
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
M30/0157
Granted
CARNEGIE GOLD PTY LTD
96/96
Menzies
M30/0187
Granted
CARNEGIE GOLD PTY LTD
100/100
Coolgardie
M30/0253
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
M30/0255
Granted
CARNEGIE GOLD PTY LTD
100/100
Coolgardie
M30/0256
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
P16/3490
Application
CARNEGIE GOLD PTY LTD
100/100
Coolgardie
102
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
ASX ADDITIONAL INFORMATION
Tenement No.
Status
Registered Holder
Ownership
Location
P24/4395
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
P24/4396
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
P24/4400
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
P24/4401
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
P24/4402
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
P24/4403
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
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
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:
» P16/2921 expired on 5 May 2024
» P16/2922 expired on 5 May 2024
Mining Tenement Applications:
» P16/3490 applied for 9 September 2024
Mining Tenements Granted:
» E30/565 granted on 30 November 2023
» L16/142 granted on 8 May 2024
» L30/83 granted on 12 August 2024
» L30/96 granted on 11 June 2024
» L30/97 granted on 11 June 2024
» L30/98 granted on 14 August 2024
Beneficial interests (%) in 'Farm In' or 'Farm Out' agreements acquired or disposed:
Pursuant to the Tenement Sale and Rights Agreement
between Heron Resources Pty Ltd, Atriplex Pty Ltd,
Ora Banda Mining Ltd, Siberia Mining Corporation Pty
Ltd, and subsequently the Deed of Covenant to assign
Heron Resources Pty Ltd and Atriplex’s rights to Ardea
Resources Ltd, the following tenements transactions
occurred during the year;
» M24/757 transferred from Ardea Resources Ltd to
Kalgoorlie Nickel Pty Ltd on 15 July 2024 (Ora Banda
Mining gold and silver rights unaffected)
» E24/203 was handed back to Ardea Resources Ltd
on 15 July 2024
» E29/889 was handed back to Ardea Resources Ltd
on 5 February 2024
» M24/1002 was handed back to Ardea Resources Ltd
on 15 July 2024
103
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
ASX ADDITIONAL INFORMATION
STOCK EXCHANGE LISTING
Ora Banda Mining Limited’s shares are listed on the Australian Securities Exchange Limited (ASX). The
Company’s ASX code is OBM.
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 10 September 2024) are set out below:
Rank Name
Units
% of Units
1.
CITICORP NOMINEES PTY LIMITED
883,427,902
47.44
2.
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
163,506,516
8.78
3.
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
138,778,302
7.45
4.
MR HENDRICUS INDRISIE
63,402,651
3.40
5.
BNP PARIBAS NOMS PTY LTD
56,242,198
3.02
6.
LUKE ANDREW CREAGH
50,000,000
2.68
7.
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
30,289,513
1.63
8.
UBS NOMINEES PTY LTD
30,163,339
1.62
9.
NPS MINING ALLIANCE PTY LTD
19,869,516
1.07
10.
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
17,198,006
0.92
11.
PALM BEACH NOMINEES PTY LIMITED
15,556,458
0.84
12.
BNP PARIBAS NOMS PTY LTD
14,507,047
0.78
13.
DILLALAH PTY LTD
13,591,302
0.73
14.
MRS ROWENA JAYNE WINKS + MR GEORGE WILLIAM WINKS
13,230,547
0.71
15.
MR LUKE ANDREW CREAGH
12,317,460
0.66
16.
MRS ROWENA JAYNE WINKS
10,761,756
0.58
17.
MANFAM PTY LTD
10,481,529
0.56
18.
MR ANTHONY PETER BARTON + MRS CORINNE HEATHER BARTON
8,000,000
0.43
19.
MR ANTHONY PETER BARTON + MRS CORINNE HEATHER BARTON
8,000,000
0.43
20.
WARBONT NOMINEES PTY LTD
7,879,746
0.42
TOP TWENTY SHAREHOLDERS
1,567,203,788
84.16
TOTAL REMAINING SHAREHOLDERS
295,074,293
15.84
TOTAL SHAREHOLDERS
1,862,278,081
100.00
As at 10 September 2024, there were 3,420 holders
of 1,862,278,081 fully paid ordinary shares of the
Company (ASX:OBM).
At 10 September 2024, the number of parcels of
shares with a value of less than $500 was 870 holding
a total of 41,165 fully paid ordinary shares.
104
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
ASX ADDITIONAL INFORMATION
UNQUOTED SECURITIES
The number of unquoted securities on issue as at 10 September 2024 is as follows:
Unquoted Security
Number on Issue
Performance Rights Expiring 30 June 2026 (STI)
279,156
Performance Rights Expiring 30 June 2026 (LTI)
5,214,148
Performance Rights Expiring 19 December 2028 (STI)
1,531,773
Performance Rights Expiring 19 December 2028 (LTI)
3,461,634
Performance Rights Expiring 1 July 2028 (LTI)
21,500,082
Performance Rights Expiring 19 December 2028
9,000,000
Performance Rights Expiring 22 December 2027 (LTI)
11,428,572
Performance Rights Expiring 22 December 2027
50,000,000
Performance Rights 2023 Expiring 30 June 2028
13,450,000
Performance Rights 2023 Expiring 30 June 2030 (LTI)
37,064,004
Performance Rights 2023 Expiring 31 January 2031
500,000
Performance Rights 2023 Expiring 31 January 2030
2,000,000
DISTRIBUTION SCHEDULE AND NUMBER OF HOLDERS OF EQUITY INSTRUMENTS
As at 10 September 2024
Issued Securities
1 – 1,000
1,001 –
5,000
5,001 –
10,000
10,001 –
100,000
100,001
– and
over
Total
Holders
Total
on
Issue
Fully Paid Ordinary
Shares (ASX:ORA BANDA)
329
(0.00%)
777
(0.13%)
410
(0.22%)
1,303
(2.63%)
501
(97.02%)
3,420
(100%)
1,862,278,081
Performance Rights
Expiring 30 June 2026
(STI)
-
-
-
-
1
(100%)
1
(100%)
279,156
Performance Rights
Expiring 30 June 2026
(LTI)
-
-
-
5
(33.33%)
10
(66.67%)
15
(100%)
5,214,148
Performance Rights
Expiring 19 December
2028 (STI)
-
-
-
-
1
(100%)
1
(100%)
1,531,773
Performance Rights
Expiring 19 December
2028 (LTI)
-
-
-
-
1
(100%)
1
(100%)
3,461,634
Performance Rights
Expiring 1 July 2028 (LTI)
-
-
-
1
(2%)
51
(98%)
52
(100%)
21,500,082
Performance Rights
Expiring 19 December
2028
-
-
-
-
2
(100%)
2
(100%)
9,000,000
105
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
ASX ADDITIONAL INFORMATION
Issued Securities
1 – 1,000
1,001 –
5,000
5,001 –
10,000
10,001 –
100,000
100,001
– and
over
Total
Holders
Total
on
Issue
Performance Rights
Expiring 22 December
2027 (LTI)
-
-
-
-
1
(100%)
1
(100%)
11,428,572
Performance Rights
Expiring 22 December
2027
-
-
-
-
1
(100%)
1
(100%)
50,000,000
Performance Rights
2023 Expiring 30 June
2028
-
-
-
1
(17%)
5
(83%)
6
(100%)
13,450,000
Performance Rights
2023 Expiring 30 June
2030 (LTI)
-
-
-
-
26
(100%)
26
(100%)
37,064,004
Performance Rights
2023 Expiring 31 January
2031
-
-
-
-
1
(100%)
1
(100%)
500,000
Performance Rights
2023 Expiring 31 January
2030
-
-
-
-
1
(100%)
1
(100%)
2,000,000
HOLDER DETAILS OF UNQUOTED SECURITIES
There are no holders of unquoted security holders
that hold more than 20% of a given class of unquoted
securities as at 10 September 2024 (other than the
performance rights which were issued under an
employee incentive scheme).
SUBSTANTIAL SHAREHOLDERS
Substantial shareholders in Ora Banda Mining
Limited and the number of equity securities over
which the substantial shareholder has a relevant
interest as disclosed in substantial holding notices
provided to the Company are listed below:
The Company has the following substantial
shareholders as at 10 September 2024:
Name of Substantial
Shareholder
Total Number of Voting
Shares in which the
Substantial Shareholder
and its Associates Hold a
Relevant Interest
Percentage of Total
Number of Voting Shares
(%)
Date of Notice
Hawke’s Point Holdings
Limited
693,341,671
37.6%
8 March 2024
Paradice Investment
Management Pty Ltd & David
Paradice
152,321,300
9.46%
5 April 2023
Host Plus Pty Limited
107,635,393
5.8%
9 April 2024
106
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
ASX ADDITIONAL INFORMATION
VOTING RIGHTS
All fully paid ordinary shares carry one vote per
ordinary share without restriction.
Performance rights have no voting rights. Voting
rights will be attached to the issued fully paid
ordinary shares when options and/or performance
rights have been exercised/vested.
CORPORATE GOVERNANCE
The Board of Ora Banda Mining Limited is committed
to achieving and demonstrating the highest
standards of Corporate Governance. The Board is
responsible to its Shareholders for the performance
of the Company and seeks to communicate
extensively with Shareholders. The Board believes
that sound Corporate Governance practices will
assist in the creation of Shareholder wealth and
provide accountability. In accordance with ASX
Listing Rule 4.10.3, the Company has elected to
disclose its Corporate Governance policies and its
compliance with them on its website, rather than in
the Annual Report. Accordingly, information about
the Company's Corporate Governance practices is
set out on the Company's website.
ASX ADDITIONAL INFORMATION
107
ORA BANDA MINING LIMITED ANNUAL REPORT 2024
ORABANDAMINING.COM.AU
108
ASX ADDITIONAL INFORMATION