Annual
Report
2024
newmurchgold.com.au
20
24
NEW MURCHISON GOLD LIMITED
CORPORATE DIRECTORY
DIRECTORS
Rick W Crabb
Non-Executive Chairman
Frank DeMarte
Executive Director
Malcolm R J Randall
Non-Executive Director
CHIEF EXECUTIVER OFFICER
Alexander Passmore
CONTENTS
CHAIRMAN’S LETTER 1
CEO REVIEW OF OPERATIONS 2
DIRECTORS’ REPORT 7
CORPORATE GOVERNANCE
16
REMUNERATION REPORT
17
CONSOLIDATED STATEMENT OF PROFIT
OR LOSS AND OTHER COMPREHENSIVE
INCOME
28
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
29
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
30
CONSOLIDATED STATEMENT OF
CASH FLOWS
31
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
32
CONSOLIDATED ENTITY DISCLOSURE 66
STATEMENT
DIRECTORS’ DECLARATION
67
INDEPENDENT AUDIT REPORT TO
THE MEMBERS
68
AUDITOR’S INDEPENDENCE DECLARATION
73
ADDITIONAL ASX INFORMATION 74
ASX ADDITIONAL INFORMATION
The Annual Report covers both New Murchison Gold
Limited as an individual entity and the Consolidated
Entity consisting of New Murchison Gold Limited and
its controlled entities.
SECRETARY
Frank DeMarte
REGISTERED OFFICE AND BUSINESS
ADDRESS
Level 2, 5 Ord Street
WEST PERTH WA 6005
Telephone: +618 9389 6927
Email: info@newmurchgold.com.au
Web: www.newmurchgold.com.au
ABN: 74 950 465 654
AUDITOR
Stantons International
Level 2, 40 Kings Park Road
WEST PERTH WA 6005
SHARE REGISTRY
Computershare Investor Services Pty Limited
Level 17, 221 St Georges Terrace
PERTH WA 6000
T: 1300 850 505 (within Australia)
T: +61 3 9415 4000 (outside Australia)
STOCK EXCHANGE
Australian Securities Exchange Limited
Home Branch Perth
ASX Code : NMG
NEW MURCHISON GOLD LIMITED
1
CHAIRMAN’S LETTER
Dear Shareholder
It gives me pleasure to present the 2024 Annual Report for New Murchison Gold Limited covering activity from
1 October 2023 to 30 September 2024.
The focus of this period has been to progress the Crown Prince Project toward a production start-up in 2025.
In February the Company announced an increase in the Crown Prince resource to 240,000 ounces of gold at
4.1 g/t, including a maiden resource of 164,000 ounces at 5.1 g/t in the South Eastern Zone. As recently
announced, the total resource is now 279,000 ounces at 3.9 g/t with, importantly, a 39% increase in the
indicated category to 226,000 ounces at 4.6 g/t.
In May the Company undertook a placement to Westgold Limited to raise $6,000,000 and entered into a
strategic alliance whereby, among other things, New Murchison and Westgold would negotiate an ore
purchase agreement to provide feed from Crown Prince for Westgold’s Bluebird Mill. The formal agreement is
close to completion and will be put to New Murchison shareholders for approval early in 2025.
The New Murchison technical team, supported by experienced consultants, have progressed the detailed
feasibility work, including social, environmental, mining, metallurgical, geotechnical and hydrological studies.
We are confident that Crown Prince will present as a robust mining proposition.
Exploration continued during the period in close proximity to Crown Prince but also on other key target areas
in the extensive ground the Company holds in the Abbotts Greenstone Belt.
I encourage you to review the additional information on the Crown Prince mine development preparations and
exploration activities carried out on the Company’s various gold projects provided in the Review of Operations
section of this Annual Report.
I would like to take this opportunity to thank our hard-working management team led by Alex Passmore, my
fellow directors Frank DeMarte and Mal Randall and our technical and administrative staff. Also, thank you to
our loyal long standing as well as our new shareholders for your ongoing support.
I am excited by the outlook for the Company in 2025, as we work to bring Crown Prince into production during
what should remain a strong Australian dollar gold price environment.
Rick Crabb
Chairman
NEW MURCHISON GOLD LIMITED
2
CEO’S REVIEW OF OPERATIONS
On behalf of New Murchison Gold (NMG) I am pleased to provide this Review of Operations for the year ending
September 2024 following an important period of developments for the Company.
The Company continues to execute our strategic plan to underpin and grow shareholder value via advancing and
building the Crown Prince gold project to scale; and ultimately commercialising the project, which is likely to
see production in 2025.
The period started strongly with excellent ongoing exploration results from Crown Prince deposit which pointed
to a strong resource inventory once sufficient drilling had been completed.
The positive exploration results saw a strongly supported $5m placement completed in November 2023 with
several new investors introduced to the company’s shareholder base.
A key milestone was then met when the Company published an updated Mineral Resource Estimate (MRE) for
the Crown Prince deposit, which included a maiden estimate of the contained ounces for the southeastern zone
of mineralisation at Crown Prince. This MRE (see ASX release 6 February 2024) comprised a total resource of
1.837Mt at 4.1 g/t Au for 240koz Au. Importantly the maiden resource for the southeastern zone was 164koz Au
at 5.2 g/t Au.
With growing confidence in the resource at Crown Prince we undertook initial leachability test work and followed
with a more detailed and comprehensive program (sighter level test work). Results of these programs were
released in early March and demonstrated high gold recoveries with standard carbon-in-leach (CIL) gold
extraction methods.
Desktop and technical studies were commenced in the March quarter and from the outset have indicated good
potential for a mine development at Crown Prince with no major technical “red flags”.
NEW MURCHISON GOLD LIMITED
3
Location of Crown Prince and the Bluebird Gold Processing Plant overlain on geology and tenement
outlines
Further to the indications of a strong project outlook and the likely high-grade nature of an open pit development,
NMG entered into an agreement with a major gold miner in the Murchison region, Westgold Resources Limited,
in relation to:
•
a Strategic Alliance with the primary aim of fast tracking the development of NMG’s Crown Prince deposit
into production; and
•
a Strategic Placement of $6.0m at $0.0045 per share, equivalent to a fully diluted 15.0% (undiluted
18.7%) pro forma shareholding in NMG.
NEW MURCHISON GOLD LIMITED
4
As part of the Strategic Alliance, NMG and Westgold are set to agree the terms of an Ore Purchase Agreement
(OPA) for the Crown Prince deposit, which is located only 33km by road from Westgold’s 1.6 – 1.8Mtpa Bluebird
Mill.
In addition to the OPA, the Strategic Alliance may also encompass other strategic collaboration initiatives such
as access to Westgold’s expertise and infrastructure.
With the Strategic Alliance in place, we undertook a significant amount of infill drilling to allow us to grow the
indicated portion of the resource.
Subsequent to the end of the financial year, in November 2024, the total MRE for Crown Prince was upgraded
from the February 2024 estimate, to 279koz at 3.9 g/t/Au. Total contained ounces were increased by 16% and
importantly there was a 39% increase in the Indicated classification estimate to 226koz at 4.6 g/t Au. (see ASX
release 28 November 2024)
With 81% (up from 68%) of gold ounces in the Indicated Mineral Resource classification, there is now a strong
understanding of the Crown Prince deposits, reflecting enhanced drill density, in some places to 15 m x 15 m
grid.
Mineral Resources are shallow and delineated from surface. Gold mineralisation is open at depth and will be
followed up with deeper drilling as the project progresses.
Crown Prince’s mineralisation is mostly situated within a 300 m x 380 m area. The Mineral Resource Estimate,
beneath the mineralised cap rock, shows an average of 1,538 oz of gold per vertical metre between 10 m and
150 m depth.
In parallel to the infill drilling, in the second half of the year, other technical workstreams were also progressed
rapidly. These included geotechnical, hydrological / hydrogeological, and metallurgical studies. Environmental
surveys were also completed. These pre-development activities underpin environmental and statutory approval
documents for the development of the Crown Prince Project.
At the conclusion of these studies the geotechnical and hydrogeological aspects of the project are now well
understood. A total of 17 geotechnical diamond drill holes were completed in the planned open pit zone. Four
hydrogeological test holes were drilled and production bore testing was undertaken. Regional flood modelling
has been finalized and dewatering modelling completed.
Environmental surveys found no problematic or rare flora or fauna in the area of planned Crown Prince mining
activity. The site layout has been designed, the production schedule is being finalised, project development
timelines have been established, and the projects team is progressively being employed or engaged as
consultants.
Management of the Company and technical staff met with key stakeholder groups during the period to provide
updates on future developments. Key stakeholders include:
-
Wajarri Yamaji Aboriginal Corporation RNTBC
-
Shire of Meekatharra
-
Department of Energy, Mines, Industry Regulation and Safety (DEMIRS)
-
Department of Water and Environmental Regulation (DWER)
-
Main Roads WA
-
Yoothapina Pastoral Leaseholder
-
Westgold Resources Ltd – Big Bell Gold Operations Pty Ltd
NEW MURCHISON GOLD LIMITED
5
Crown Prince Planned Mine Layout
At the time of writing, we are bringing together all of the various work streams and have progressed to be able to
shortly release an ore reserve and to undertake production planning for a commencement in 2025.
NEW MURCHISON GOLD LIMITED
6
The statutory approvals required to develop an open pit operation at Crown Prince are well advanced with
several major items already submitted. We are looking to finalise submissions to the various regulators prior to
the end of the calendar year 2024. We look forward to receiving approvals in April 2025 to be in a position to
commence operations in the middle of 2025.
Looking beyond the Crown Prince operation, the Company has a strong pipeline of exploration projects in its
677km2 tenure package. We continue to progress the projects that we believe have a good chance of becoming
the next production centres from our ground and note that we have three advanced projects aside from Crown
Price with granted Mining Leases in place (Lydia, Abbots and Crescent).
We look forward to another busy and successful year in 2025 and believe the development of Crown Prince will
underpin shareholder value in the short term with exploration to add significant value for the longer term.
I thank the New Murchison Gold Board comprising Rick Crabb, Mal Randall and Frank DeMarte for their support
and guidance during the year. Additionally, the employees, consultants and contractors working for the
company have done a great job completing the various technical studies over the past 12 months and are well
positioned for another busy year ahead. Finally, thank you to our shareholders, welcome to our new investors
and well done to our supportive corporate advisers and broking houses for a successful period and we look
forward to commencing a strong growth period in the coming year.
Alex Passmore
Chief Executive Officer
NEW MURCHISON GOLD LIMITED
DIRECTORS’ REPORT
7
The Directors present their report on the Consolidated Entity (or Group) consisting of New Murchison Gold
Limited, (formerly Ora Gold Limited) and the entities it controlled at the end of, or during, the year ended 30
September 2024.
DIRECTORS
The following persons were Directors of New Murchison Gold Limited (“Company”) and were in office during the
year and until the date of this report unless otherwise stated.
Mr Rick W Crabb
Non-Executive Chairman
Mr Frank DeMarte
Executive Director
Mr Malcolm R J Randall
Non-Executive Director
CHIEF EXECUTIVE OFFICER
Mr Alexander R Passmore
Chief Executive Officer
PRINCIPAL ACTIVITY
The principal activity of the Consolidated Entity during the year was mineral exploration in Australia. Other than
the foregoing, there were no significant changes in those activities during the year.
RESULT OF OPERATIONS
During the year the Consolidated Entity incurred a consolidated operating loss after tax of $2,710,439 (2023 – loss
of $2,156,617).
DIVIDENDS
No dividends have been paid during the year and no dividend is recommended for the current year.
MATERIAL BUSINESS RISKS
The proposed future activities of the Group are subject to a number of risks and other factors that may affect its
future performance. Some of these risks can be mitigated by the use of safeguards and appropriate controls.
However, many of the risks are outside the control of the Directors and management of the Group and cannot be
mitigated.
The risks described in this section are not an exhaustive list of the risks faced by the Group. The risks described
may in the future materially affect the financial performance and position of the Group.
Tenure
Mining and exploration tenements for the Group’s projects are subject to periodic renewal. There is no guarantee
that current or future tenements and/or applications for tenements will be approved.
The tenements comprising the Group’s projects are subject to the Mining Act and Mining Regulations. The renewal
of the term of a granted tenement is also subject to the discretion of the Minister for Mines, the Group’s ability to
meet the conditions imposed by relevant authorities including compliance with the Group’s work program
requirements which, in turn, is dependent on the Group being sufficiently funded to meet those expenditure
requirements. Renewal conditions may include increased expenditure and work commitments or compulsory
relinquishment of areas of the tenements comprising the Group’s projects. The imposition of new conditions or
the inability to meet those conditions may adversely affect the operations, financial position and/or performance
of the Group.
NEW MURCHISON GOLD LIMITED
DIRECTORS’ REPORT
8
Although the Group has no reason to think that the Group’s project tenements will not be renewed, there is no
assurance that such renewals will be given as a matter of course and there is no assurance that new conditions
will not be imposed by the relevant granting authority. The Group considers the likelihood of tenure forfeiture to
be low given the laws and regulations governing exploration in Western Australia and the ongoing expenditure
budgeted for by the Group. However, the consequence of forfeiture or involuntary surrender of a granted
tenement for reasons beyond the control of the Group could be significant.
Reliance on key personnel
The Group is reliant on a small number of key personnel and consultants. The loss of one or more of these key
contributors could have an adverse impact on the business including the Group's projects.
It may be particularly difficult for the Group to attract and retain suitably qualified and experienced people, given
the current high demand in the industry and small size of the Group, relative to other industry participants.
The continued availability of consultants and advisers is to some extent dependent on maintaining the
professional relationships that the Group's personnel have developed over time and which may be lost if key
personnel cease to be involved with the Group before replacement arrangements can be made. If the involvement
of key resource specialists, managers or other personnel ceases for reasons of contract termination, ill health,
death or disability, then technical programs and achievements of the Group may be adversely affected.
Exploration and development risks
Resource exploration and development involves significant risks which only occasionally provide high rewards.
In addition to the normal competition for prospective ground, and the high costs of discovery and development
of an economic deposit, factors such as demand for commodities, stock market fluctuations affecting access to
new capital, sovereign risk, environmental issues, labour disruption, project financing, foreign currency
fluctuations and technical problems all affect the ability of a company to profit from a discovery.
There is no assurance that exploration and development of the Group’s projects, will result in the discovery of an
economic gold and base metal mineral deposit. Even if an apparently viable deposit is identified, there is no
guarantee that it can be profitably exploited.
The exploration for, and development of, mineral deposits involves a high degree of risk. Few properties which are
explored are ultimately developed into producing mines. Resource exploration and development is a speculative
business, characterised by a number of significant risks, including, among other things, unprofitable efforts
resulting not only from the failure to discover mineral deposits, but also from finding mineral deposits that,
although present, are insufficient in quantity and quality to return a profit from production. The marketability of
minerals acquired or discovered by the Group may be affected by numerous factors that are beyond the control
of the Group and that cannot be accurately predicted, such as market fluctuations, the proximity and capacity of
milling facilities, mineral markets and processing equipment, and such other factors as government regulations,
including regulations relating to royalties, allowable production, importing and exporting of minerals, and
environmental protection, the combination of which factors may result in the Group not receiving an adequate
return on investment capital.
Whether a mineral deposit will be commercially viable depends on a number of factors, which include, without
limitation, the particular attributes of the deposit, such as size, grade and proximity to infrastructure, metal
prices, which fluctuate widely, and government regulations, including, without limitation, regulations relating to
prices, taxes, royalties, land tenure, land use, importing and exporting of minerals and environmental protection.
The combination of these factors may result in the Group expending significant resources (financial and
otherwise) on a property without receiving a return. There is no certainty that expenditures made by the Group
towards the search and evaluation of mineral deposits will result in the discovery of an economically viable
mineral deposit.
The Group has relied on, and may continue to rely on, consultants for mineral exploration and exploitation
expertise. The Group believes that those consultants are competent and that they have carried out their work in
accordance with internationally recognised industry standards. However, if the work conducted by those
NEW MURCHISON GOLD LIMITED
DIRECTORS’ REPORT
9
consultants is ultimately found to be incorrect or inadequate in any material respect, the Group may experience
delays or increased costs in developing its properties.
There can be no assurance that the Group’s mineral exploration activities will be successful. If such commercial
viability is never attained, the Group may seek to transfer its property interests or otherwise realise value or may
even be required to abandon its business and fail as a “going concern”.
Reserve and resource estimates
Ore reserve and mineral resource estimates are expressions of judgment based on drilling results, past
experience with mining properties, knowledge, experience, industry practice and many other factors. Estimates
which are valid when made may change substantially when new information becomes available.
In addition, reserve estimates are necessarily imprecise and depend to some extent on interpretations, which
may prove inaccurate. Should the Group encounter mineral deposits or formations different from those predicted
by past drilling, sampling and similar examinations, reserve estimates may have to be adjusted and production
plans may have to be altered in a way which could adversely affect the Group’s operations.
Ore estimation is an interpretive process based on available data and interpretations and thus estimations may
prove to be inaccurate.
The actual quality and characteristics of ore deposits cannot be known until mining takes place and will almost
always differ from the assumptions used to develop resources. Further, ore reserves are valued based on future
costs and future prices and consequently, the actual ore reserves and mineral resources may differ from those
estimated, which may result in either a positive or negative effect on operations.
Should the Group’s projects encounter mineralisation or formations differ from those predicted by past drilling,
sampling and similar examinations, resource estimates may have to be adjusted and mining plans may have to
be altered in a way which could adversely affect the Group’s operations.
New assets, projects and acquisitions
The Group may make acquisitions in the future as part of future growth plans. In this regard, the Directors of the
Group will use their expertise and experience in the resources sector to assess the value of potential projects that
have characteristics that are likely to provide returns to Shareholders.
There can be no guarantee that any new project acquisition or investment will eventuate from these pursuits, or
that any acquisitions will result in a return for Shareholders. Such acquisitions may result in use of the Group’s
cash resources and/or the issuance of equity securities, which will dilute shareholdings.
Results of studies
Subject to the results of any future exploration and testing programs, the Group may progressively undertake a
number of studies in respect to the Group’s current projects. These studies may include scoping studies, pre-
feasibility studies and bankable feasibility studies.
These studies will be completed within certain parameters designed to determine the economic feasibility of the
relevant project within certain limits. There can be no guarantee that any of the studies will confirm the economic
viability of the Group’s projects or the results of other studies undertaken by the Group (e.g. the results of a
feasibility study may materially differ to the results of a scoping study).
Further, even if a study determines the economics of the Group’s projects, there can be no guarantee that the
projects will be successfully brought into production as assumed or within the estimated parameters in the
feasibility study, once production commences including but not limited to operating costs, mineral recoveries
and commodity prices. In addition, the ability of the Group to complete a study may be dependent on the Group’s
ability to raise further funds to complete the study if required.
Payment obligations
NEW MURCHISON GOLD LIMITED
DIRECTORS’ REPORT
10
Under the mining and exploration licences and certain other contractual agreements to which the Group is or may
in the future become party, the Group’s projects are, or may become, subject to payment and other obligations.
Failure to meet these payments and obligations may render the Group’s projects’ claims liable to be cancelled.
Further, if any contractual obligations are not complied with when due, in addition to any other remedies which
may be available to other parties, this could result in dilution or forfeiture of interests held by the Group.
Operating risks
The operations of the Group may be affected by various factors which are beyond the control of the Group,
including failure to locate or identify mineral deposits, failure to achieve predicted grades in exploration or mining,
operational and technical difficulties encountered in mining, difficulties in commissioning and operating plant
and equipment, mechanical failure or plant breakdown, unanticipated metallurgical problems which may affect
extraction costs, adverse weather conditions (including climate change), industrial and environmental accidents,
industrial disputes and unexpected shortages, delays in procuring, or increases in the costs of consumables,
spare parts, plant and equipment, fire, explosions and other incidents beyond the control of the Group.
These risks and hazards could also result in damage to, or destruction of, production facilities, personal injury,
environmental damage, business interruption, monetary losses and possible legal liability. While the Group
currently intends to maintain insurance within ranges of coverage consistent with industry practice, no assurance
can be given that the Group will be able to obtain such insurance coverage at reasonable rates (or at all), or that
any coverage it obtains will be adequate and available to cover any such claims.
Commercialisation of discoveries and mine development
It may not always be possible for the Group to participate in the exploitation of any successful discoveries, which
may be made in any projects in which the Group has an interest. Such exploitation will involve the need to obtain
the necessary licences or clearances from the relevant authorities, which may require conditions to be satisfied
and/or the exercise of discretions by such authorities. It may or may not be possible for such conditions to be
satisfied. Further, the decision to proceed to further exploitation may require the participation of other companies
whose interests and objectives may not be the same as the Group. As described above, such further work may
require the Group to meet or commit to financing obligations for which it may not have planned.
Possible future development of mining operations at the Group's projects or other tenements applied for or
acquired by the Group is dependent on a number of factors including, but not limited to, the acquisition and/or
delineation of economically recoverable mineralisation, favourable geological conditions, receiving the
necessary approvals from all relevant authorities and parties, seasonal weather patterns (including due to
climate change), unanticipated technical and operational difficulties encountered in extraction and production
activities, mechanical failure of operating plant and equipment, shortages or increases in the price of
consumables (i.e. construction consumables and shortages in labour), spare parts and plant and equipment,
cost overruns, access to the required level of funding and contracting risk from third parties providing essential
services.
The evolving conflict between Ukraine and Russia has caused secondary and tertiary macroeconomic impacts,
including inflationary pressures on supply shortages, changes in commodity prices and energy markets. These
may also impact on the Group's abilities to develop the Group's projects in the future.
If the Group commences production on any existing or future projects, its operations may be disrupted by a variety
of risks and hazards which are beyond the control of the Group. No assurance can be given that the Group will
achieve commercial viability through the development of existing or future projects.
Commodity price volatility
Commodity prices have fluctuated widely in recent years and may continue to fluctuate significantly in the future.
Fluctuations in commodity prices, and, in particular, a material decline in the price of commodities, such as gold
and base metals, may have a material adverse effect on the Group's business, financial condition and results of
operations.
The prices of commodities fluctuate widely and are affected by numerous factors beyond the control of the
Group, such as industrial and retail supply and demand, exchange rates, inflation rates, changes in global
NEW MURCHISON GOLD LIMITED
DIRECTORS’ REPORT
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economies, confidence in the global monetary scheme, forward sales of metals by producers and speculators as
well as other global or regional political, social or economic events. The supply of these resources consists of a
combination of new mine production and existing stocks held by governments, producers, speculators and
consumers.
Future production, if any, from the Group’s projects will be dependent upon the price of gold and base metals
being adequate to make the projects economic. Future price declines in the market value of the commodity could
cause continued development of, and eventually commercial production from, the projects to be rendered
uneconomic. Depending on the price of gold and base metals, the Group could be forced to discontinue
production or development and may lose its interest in, or may be forced to sell, the projects. There is no
assurance that, even if commercial quantities of gold and base metals are produced, a profitable market will exist
for them.
In addition to adversely affecting future reserve estimates, if any, of any projects, declining gold and base metals
prices can impact operations by requiring a reassessment of the feasibility of the projects. Such a reassessment
may be the result of a management decision or may be required under financing arrangements related to the
projects. Even if the projects are ultimately determined to be economically viable, the need to conduct such a
reassessment may cause substantial delays or may interrupt operations until the reassessment can
be completed.
Drilling risks
The Group’s future drilling operations may be curtailed, delayed or cancelled due to a number of factors including
weather conditions, mechanical difficulties, shortage or delays in the delivery of rigs and/or other equipment and
compliance with governmental requirements. While drilling may yield some resources there can be no guarantee
that the discovery will be sufficiently productive to justify commercial development or cover operating costs.
Land rehabilitation requirements
Although variable, depending on location and the governing authority, land rehabilitation requirements are
generally imposed on mineral exploration companies, as well as companies with mining operations, in order to
minimise long term effects of land disturbance. Rehabilitation may include requirements to control dispersion of
potentially deleterious effluents and to reasonably re-establish pre-disturbance land forms and vegetation. In
order to carry out rehabilitation obligations imposed on the Group in connection with its mineral exploration, the
Group must allocate financial resources that might otherwise be spent on further exploration and/or
development programs.
Native title
The Native Title Act 1993 (Cth) (Native Title Act) recognises and protects the rights and interests in Australia of
Aboriginal and Torres Strait Islander people in land and waters, according to their traditional laws and customs.
There is significant uncertainty associated with native title in Australia and this may impact on the Group’s
operations and future plans.
Native title can be extinguished by valid grants of land (such as freehold title) or waters to people other than the
native title holders or by valid use of land or waters. It can also be extinguished if the indigenous group has lost its
connection with the relevant land or waters. Native title is not necessarily extinguished by the grant of mining
leases, although a valid mining lease prevails over native title to the extent of any inconsistency for the duration
of the title.
Tenements granted before 1 January 1994 are valid or validated by the Native Title Act. For tenements to be validly
granted (or renewed) after 1 January 1994, the future act regime established by the Native Title Act must be
complied with. The existence of a native title claim is not an indication that native title in fact exists on the land
covered by the claim, as this is a matter ultimately determined by the Federal Court. The lack of a native title claim
is not an indication that native title does not exist on the land which is not currently the subject of a claim.
The Group must also comply with Aboriginal heritage legislation requirements, which may require certain due
diligence investigations to be undertaken ahead of the commencement of exploration and mining. This due
NEW MURCHISON GOLD LIMITED
DIRECTORS’ REPORT
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diligence may include, in certain circumstances, the conduct of Aboriginal heritage surveys. The risks may also
include the following:
(i)
the Group may have to seek permits or licences to access the land the subject of an Aboriginal heritage or
land right claim. There is no guarantee that any such permit or licence will be granted;
(ii) the Group may have to comply with restrictions or conditions on accessing land the subject of an Aboriginal
heritage or land right claim. This may result in the Group facing unplanned expenditure or delays. Failure to
comply with any conditions on the permits may result in the Group losing its title to its tenements or forfeiting
its permits;
(iii) the Group may have to pay compensation in order to settle native title claims. It is not possible to quantify
the amount of compensation which may have to be paid at this stage; and
(iv) in the event the Group discovers evidence of Aboriginal heritage on land accessed by the Group, the Group
must comply with regulations prohibiting the disturbance of physical evidence of prehistoric or historical
significance without statutory permission and legislation prohibiting or restricting access to Aboriginal
cultural heritage or native title land. Accordingly, delays or additional costs in the exploration or production
of the Group’s business may be experienced. Further, the disturbance of any such land or objects may
expose the Group to additional fines or other penalties.
Environmental risk
The Group’s projects are subject to State and Federal laws and regulations regarding environmental matters. The
Governments and other authorities that administer and enforce environmental laws and regulations determine
these requirements. As with all exploration projects and mining operations, the Group’s activities are expected
to have an impact on the environment, particularly, if the Group’s activities result in mine development. The
Group intends to conduct its activities in an environmentally responsible manner and in accordance with
applicable laws.
The cost and complexity of complying with the applicable environmental laws and regulations may prevent the
Group from being able to develop potentially economically viable mineral deposits.
Further, the Group may require additional approvals from the relevant authorities before it can undertake
activities that are likely to impact the environment. Failure to obtain such approvals will prevent the Group from
undertaking its desired activities. The Group is unable to predict the effect of additional environmental laws and
regulations which may be adopted in the future, including whether any such laws or regulations would materially
increase the Group’s cost of doing business or affect its operations in any area.
There can be no assurances that new environmental laws, regulations or stricter enforcement policies, once
implemented, will not oblige the Group to incur significant expenses and undertake significant investments which
could have a material adverse effect on the Group’s business, financial condition and results of operations.
Occupational health and safety risk
The Group is committed to providing a healthy and safe environment for its personnel, contractors and visitors.
However, mining activities have inherent risks and hazards. While the Group provides appropriate instructions,
equipment, preventative measures, first aid information and training to all stakeholders through its occupational,
health and safety management systems, health and safety incidents may nevertheless occur. Any illness,
personal injury, death or damage to property resulting from the Group’s activities may lead to a claim against the
Group.
Additional requirement for funding
The Group’s funding requirements depend on numerous factors including the Group’s future exploration and
work programs. Furthermore, the Group may require further funding in addition to current cash reserves to fund
future exploration activities. The additional funding may be raised through debt or equity funding. If required
funding is not available, including because appropriate commercial terms cannot be negotiated, this may limit
the capacity of the Group to execute on its business strategy and exploration programs.
NEW MURCHISON GOLD LIMITED
DIRECTORS’ REPORT
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Additional equity funding, if available, may be dilutive to Shareholders and at lower prices than the current market
price. Debt funding, if available, may involve restrictions on financing and operating activities and be subject to
risks relating to movements in interest rates. Increases in interest rates will make it more expensive for the Group
to fund its operations and may constrain the ability to execute on business strategies and exploration programs.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Consolidated Entity during the year not otherwise
dealt with in this report.
SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE
Since the end of the year, the Directors are not aware of matter or circumstance not otherwise dealt with in this
report or the Consolidated financial statements, that has significantly or may significantly affect the operations
of the Consolidated Entity, the results of those operations or the state of affairs of the Group in subsequent years,
the financial effects of which have not been provided for in the 30 September 2024 Consolidated financial
statements:
Change of Company Name
On 13 November 2024 the Company changed its name from Ora Gold Limited to ‘New Murchison Gold Limited’.
Conversion of March 2025 Options
Since the end of the year:
•
189,732,146 options exercisable at $0.006 each expiring on the 9 March 2025 were exercised;
•
50,894,449 options exercisable at $0.006 each expiring on the 27 March 2025 were exercised.
Expiry of Broker Options
Since the end of the year 5,000,000 options exercisable at $0.002 each expiring on the 10 December 2024.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
Details of important developments in the operations of the Group are set out in the review of operations section
of this report. The Group will continue to explore its Australian tenement areas of interest for minerals, and any
significant information or data will be released in the market and to shareholders.
CORPORATE INFORMATION
New Murchison Gold Limited
Parent entity (formerly Ora Gold Limited)
Red Dragon Mines Pty Ltd
100% owned controlled entity of New Murchison Gold Limited
Zeus Mining Pty Ltd
100% owned controlled entity of Red Dragon Mines Pty Ltd
Old Find Pty Ltd
100% owned controlled entity of New Murchison Gold Limited
NEW MURCHISON GOLD LIMITED
DIRECTORS’ REPORT
14
INFORMATION ON DIRECTORS
RICK W CRABB
Non-Executive Chairman, B. JURIS (Hons), LLB, MBA, FAICD
Skills and Experience
Mr Crabb holds degrees of Bachelor of Jurisprudence (Honours), Bachelor of Laws
and Master of Business Administration from the University of Western Australia. Mr
Crabb was appointed a director on 20 November 2017.
Mr Crabb has been involved over the last 30 years as a director and strategic
shareholder in many public companies involved in exploration and production
operating in Australia, Asia and Africa. Mr Crabb’s extensive mining experience is
strengthened by his extensive legal background which has centred on mining,
corporate and commercial law.
Mr Crabb has been a WA Councillor of the Australian Institute of Company Directors
(AICD). He was awarded the AICD Gold Medal in 2021 for services to the business
community and AICD. Mr Crabb was appointed on 20 November 2017.
Other current Directorships
Eagle Mountain Mining Limited (since 2017).
Former Directorships in last
three years
Warpforge Limited from 2017 to 2022.
Leo Lithium Ltd from 2022 to 2024.
Special Responsibilities
Member of Nomination Committee from November 2017.
Member of Audit Committee from November 2017.
Member of Remuneration Committee from November 2017.
Interest in Shares and
Options at the date of this
report
117,940,372
7,000,000
Ordinary shares.
Options expiring 1 March 2026 exercisable at $0.037 each.
10,000,000
Options expiring 28 February 2026 exercisable at $0.0045 each.
10,000,000
Options expiring 28 February 2027 exercisable at $0.0087 each
MALCOLM R J RANDALL
Non-Executive Director, B.Applied Chem, FAICD
Skills and Experience
Mr Randall holds a Bachelor of Applied Chemistry Degree and is a Fellow of the An
Institute of Company Directors. He has extensive experience in corporate,
management and marketing in the resource sector, including more than 25 years with
the Rio Tinto group of companies.
Mr Randall’s experience extends over a broad range of commodities including iron
ore, diamonds, base metals, uranium, lithium, graphite rare earths and industrial
minerals both in Australia and internationally. Mr Randal was appointed a director on
8 September 2003.
Other current Directorships
Argosy Minerals Limited (since 2017).
Hastings Technology Metals Ltd (since 2019).
Former Directorships in last
three years
Kingsland Minerals Ltd from 2021 to 2023.
Magnetite Mines Limited from 2006 to 2022.
Special Responsibilities
Chairman of Audit Committee from April 2013.
Chairman of Nomination Committee from December 2004.
Chairman of Remuneration Committee from April 2013.
Interest in Shares and
Options at the date of this
report
25,750,000
9,864,583
Fully paid ordinary shares.
Options expiring 9 March 2025 exercisable at $0.006 each.
5,000,000
Options expiring 1 March 2026 exercisable at $0.037 each.
10,000,000
Options expiring 28 February 2027 exercisable at $0.0087 each.
NEW MURCHISON GOLD LIMITED
DIRECTORS’ REPORT
15
FRANK DEMARTE
Executive Director, BBus (Acct), FGIA, FCG, FAICD
Skills and Experience
Mr DeMarte holds a Bachelor of Business majoring in Accounting and is a Fellow of
the Chartered Governance Institute, a Fellow of the Institute of Chartered Secretaries
and Administrators and a Fellow of the Australian Institute of Company Directors.
Mr DeMarte is an experience mining executive with over 40 years of experience
working with natural resources companies in Australia. His experience has covered
a diverse range of commodities including gold, base metals, iron ore, uranium and
diamonds. Mr DeMarte has held executive positions with a number of listed mining
and exploration companies and is currently an Executive Director, Company
Secretary and Chief Financial Officer of the Company.
Mr DeMarte has extensive experience in areas of corporate management,
governance, financial management and secretarial practice. Mr DeMarte was a
director on 30 April 2001.
Other current Directorships
None.
Former Directorships in last
three years
None.
Special Responsibilities
Member of Nomination Committee from December 2004.
Member of Remuneration Committee from April 2013.
Chief Financial Officer and Company Secretary.
Interest in Shares and
Options at the date of this
52,705,618
10,000,000
Ordinary shares.
Options expiring 8 April 2025 exercisable at $0.018 each.
report
20,000,000
Options expiring 28 February 2026 exercisable at $0.0045 each.
20,000,000
Options expiring 28 February 2027 exercisable at $0.0087 each.
INFORMATION ON CHIEF EXECUTIVE OFFICER
Mr Passmore is a qualified geologist with extensive corporate experience. Mr Passmore holds a Bachelor of
Science with first class honours in Geology from the University of Western Australia and a Graduate Diploma of
Applied Finance from the Securities Institute of Australia. Following early work as a geologist with WMC Ltd, Mr
Passmore has spent much of his career in the finance industry focussed on the resources sector. Mr Passmore’s
post positions in the finance sector have included Head of Research at Patersons Securities Ltd (now Canaccord
Genuity (Australia) Limited) and Executive Director, Institutional Banking & Markets Division at Commonwealth
Bank of Australia Ltd.
Mr Passmore is an experienced corporate executive and company director with past appointments including
Managing Director of Rox Resources Ltd, Chairman of Cannon Resources Ltd, Managing Director of Cockatoo
Iron NL, Non-Executive Director of Aspire Mining Ltd, Non-Executive (and Executive) Director of Equator
Resources Ltd / Cobalt One Ltd which merged with TSX-listed First Cobalt Corp) and CEO of Draig Resources Ltd
(now Bellevue Gold Ltd).
Mr Passmore is currently a director of the following listed entities: Pearl Gull Iron Ltd, Uvre Ltd and Blencowe
Resources Ltd (London-listed)
COMPANY SECRETARY
The Company Secretary is Mr Frank DeMarte. Mr DeMarte has over 40 years of experience in the mining and
exploration industry in Western Australia and has held executive positions with a number of listed mining and
exploration companies. Mr DeMarte is experienced in areas of secretarial practice, management accounting and
corporate and financial management. Mr DeMarte holds a Bachelor of Business majoring in Accounting and is a
Fellow of the Chartered Governance Institute and a Fellow of the Australian Institute of Company Directors. Mr
DeMarte was appointed to the position on 8 September 2003.
NEW MURCHISON GOLD LIMITED
DIRECTORS’ REPORT
16
SHARE OPTIONS AND PERFORMANCE RIGHTS
As at the date of this report, there were 1,450,484,172 unissued ordinary shares of the Company under option,
and 49,038,547 unissued shares of the Company under performance rights, as follows:
Date options issued
Expiry date
Exercise price of options
Number of options
Unquoted Options
9 April 2020
8 April 2025
$0.018
28,750,000
9 March 2023
9 March 2025
$0.006
517,132,063
27 March 2023
27 March 2025
$0.006
657,143,904
24 April 2023
24 April 2025
$0.006
31,000,000
2 March 2021
1 March 2026
$0.037
12,000,000
28 February 2023
28 February 2026
$0.0045
30,000,000
10 December 2023
10 December 2025
$0.009
55,000,000
28 February 2024
28 February 2027
$0.0087
40,000,000
21 October 2024
21 October 2026
$0.0120
15,000,000
Performance Rights
27 March 2023
27 March 2028
-
49,038,547
Performance Options
27 March 2023
27 March 2028
$0.006
64,458,205
During the financial year:
• 15,000,000 Employee options exercisable at $0.006 each and expiring 24 April 2025 lapsed in accordance
with the terms and conditions of the Company’s Employee Share Option Plan (ESOP);
• 63,000,000 Employee options exercisable at $0.009 each and expiring 10 December 2025 were issued during
the year;
• 8,000,000 Employee options exercisable at $0.009 each and expiring 10 December 2025 lapsed in
accordance with the terms and conditions of the Company’s Employee Share Option Plan (ESOP);
• 40,000,000 Director options exercisable at $0.0087 each and expiring 28 February 2027 were issued during
the year;
• 3,485,938 options exercisable at $0.006 each and expiring 9 March 2025 were exercised during the year;
• 5,541,666 options exercisable at $0.006 each and expiring 27 March 2025 were exercised during the year;
• 115,000,000 CEO Performance Rights vested and were converted into ordinary shares; and
• 5,000,000 Broker options exercisable at $0.002 each expired on 10 December 2024.
Option and performance right holders do not have any right, by virtue of the option and the performance right, to
participate in any share issue of the Company or any other entity.
CORPORATE GOVERNANCE STATEMENT
A copy of the New Murchison Gold Limited (formerly Ora Gold Limited) 2024 Corporate Governance Statement is
available on the Company's website at http//www.newmurchgold.com.au/our-company/corporate-governance.
The Board is committed to achieving and demonstrating the highest standards of corporate governance. The
Board continues to refine and improve the governance framework and has practices in place to ensure they meet
the interests of shareholders.
NEW MURCHISON GOLD LIMITED
DIRECTORS’ REPORT
17
REMUNERATION REPORT (AUDITED)
This Remuneration Report details the nature and amount of remuneration for each of the directors and other key
management personnel of the Company.
(a)
Details of Key Management Personnel
The following persons were key management personnel of New Murchison Gold Limited (formerly Ora
Gold Limited) during the financial year:
Rick W Crabb
Non-Executive Chairman
Frank DeMarte
Executive Director
Malcolm R J Randall
Non-Executive Director
Alexander R Passmore
Chief Executive Officer
(b)
Compensation of Key Management Personnel
(i) Compensation Policy
The Group’s remuneration policy for executive directors is designed to promote superior performance and
long term commitment to the Group. Executives receive a base remuneration, which is market related.
Overall, the remuneration policy is subject to the discretion of the Board and can be altered to reflect the
competitive market and business conditions, where it is in the best interest of the Group and the
shareholders to do so.
The Board’s reward policy reflects its obligations to align executives’ remuneration with shareholders’
interests and to retain appropriately qualified executive talent for the benefit of the Group. The main
principles of the policy are:
•
Reward reflects the competitive market in which the Group operates;
•
Individual reward should be linked to performance criteria; and
•
Executives should be rewarded for both financial and non-financial performance.
Directors’ and executives’ remuneration is reviewed by the Board of directors, having regard to various
goals set. This remuneration and other terms of employment are commensurate with those offered within
the exploration and mining industry.
Non-executive directors’ remuneration is in the form of directors’ fees and are approved by shareholders
as to the maximum aggregate remuneration. The Board recommends the actual payment to non-executive
directors. The Board’s reward policy for non-executive directors reflects its obligation to align remuneration
with shareholders’ interests and to retain appropriately qualified talent for the benefit of the Group.
Remuneration packages are set at levels that are intended to attract and retain directors and executives
capable of managing the Group’s operations.
(A)
Remuneration Committee
The Remuneration Committee is responsible for determining and reviewing compensation arrangements
for the directors and all other key management personnel.
The Remuneration Committee assesses the appropriateness of the nature and amount of compensation
of key management personnel on an annual basis by reference to relevant employment market conditions
with the overall objective of ensuring maximum stakeholder benefit from the retention of a high quality
board and executive team.
(B)
Remuneration Structure
In accordance with best practice corporate governance, the structure of non-executive director and
executive compensation is separate and distinct.
NEW MURCHISON GOLD LIMITED
DIRECTORS’ REPORT
18
REMUNERATION REPORT (Audited) (continued)
(C)
Non-Executive Director Compensation
Objective
The Board seeks to set aggregate compensation at a level that provides the Group with the ability to attract
and retain directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
(b)
Compensation of Key Management Personnel (continued)
Structure
The Constitution and the ASX Listing Rules specify that the aggregate compensation of non-executive
directors shall be determined from time to time by a general meeting. An amount not exceeding the
amount determined is then divided between the directors as agreed.
The amount of aggregate compensation sought to be approved by shareholders and the manner in which
it is apportioned amongst directors is reviewed annually.
The Board considers advice from external consultants as well as the fees paid to non-executive directors
of comparable companies when undertaking the annual review process. Each director receives a fee for
being a director of the Company. An additional fee may also be paid for each Board committee on which a
director sits. The payment of additional fees for serving on a committee recognises the additional time
commitments required by directors who serve on one or more sub committees.
The compensation of non-executive directors for the year ended 30 September 2024 is detailed as per the
disclosures on page 20.
Non-executive directors have long been encouraged by the Board to hold shares in the Company
(purchased by the director on market). It is considered good governance for directors to have a stake in
the Company on whose board they sit.
(D)
Executive Compensation
Objective
The entity aims to reward executives with a level and mix of compensation commensurate with their
position and responsibilities within the entity so as to:
•
reward executives for company, business unit and individual performance against targets set by
remuneration committee to appropriate benchmarks;
•
align the interests of executives with those of shareholders;
•
link rewards with the strategic goals and performance of the Company; and
•
ensure total compensation is competitive by market standards.
Structure
In determining the level and make-up of executive remuneration, the remuneration committee will review
individual performance, relevant comparative compensation in the market and internally and, where
appropriate, external advice on policies and practices.
The compensation of executives for the year ended 30 September 2024 is detailed as per the disclosures
on page 20.
(E)
Fixed Compensation
Objective
Fixed compensation is reviewed annually by the Remuneration Committee. The process consists of a
review of companywide, business unit and individual performance, relevant comparative compensation
in the market and internally and, where appropriate, external advice on policies and practices.
NEW MURCHISON GOLD LIMITED
DIRECTORS’ REPORT
19
REMUNERATION REPORT (Audited) (continued)
(b)
Compensation of Key Management Personnel (continued)
Structure
Executives are given the opportunity to receive their fixed remuneration in a variety of forms including cash
and fringe benefits such as motor vehicles and expense payment plans. It is intended that the manner of
payment chosen will be optimal for the recipient without creating undue cost for the Company.
(F)
Other Compensation
Notwithstanding Guideline 8.2 of the ASX Corporate Governance Council Principles of Good Corporate
Governance and Best Practice Recommendations which provides that non-executive Directors should not
receive Options, the Directors consider that the grant of the options is designed to encourage the Directors
to have a greater involvement in the achievement of the Company’s objectives and to provide an incentive
to strive to that end by participating in the future growth and prosperity of the Company through share
ownership.
Under the Company’s current circumstances the granting of options is an incentive to each of the
Directors, which is a cost effective and efficient reward for the Company, as opposed to alternative forms
of incentive, such as the payment of additional cash compensation to the Directors.
During the year the Company’s Remuneration Committee did not seek and consider any advice from
independent remuneration consultants to determine the appropriate Key Management Personnel
remuneration.
Company Performance
A summary of the Group’s performance as measured by a range of financial and other indicators, including
the disclosure required by the Corporations Act 2001 is outlined in the following table:
Measure
FY2024
$
FY2023
$
FY2022
$
Revenue and other income
170,722
24,026
41,052
Net profit/(loss) before tax
(2,170,439)
(2,156,617)
(2,311,588)
Net profit/(loss) after tax
(2,170,439)
(2,156,617)
(2,311,588)
Share price
0.0080
0.0080
0.0080
Dividends per share
-
-
-
Basic earnings/(loss) per share
(0.05)
(0.08)
(0.24)
Diluted earnings/(loss) per share
(0.05)
(0.08)
(0.24)
NEW MURCHISON GOLD LIMITED
DIRECTORS’ REPORT
20
REMUNERATION REPORT (AUDITED) (continued)
(b)
Compensation of Key Management Personnel (continued)
Details of the remuneration of each director of New Murchison Gold Limited (formerly Ora Gold Limited) and other key management personnel, including their
personally related entities, for the current and previous financial year are set out in the table below:
Short Term Benefits
$
Post
Employment
$
Other Long
Term
$
Share-Based Payments
$
Total
$
Performance
Related
Remuneration %
Names
Salary
and Fees
Annual
Leave 3
Cash
Bonus 4
Super
Long
Service
Leave
Performance
Rights and
Options 5
Performance
Shares 6
Executive Director
Frank DeMarte
2024
250,000
17,938
-
27,813
17,933
60,808
-
374,492
16.24%
2023
200,000
7,692
-
21,250
3,333
24,467
-
256,742
9.53%
Non-Executive Directors
Rick W Crabb
2024
50,000
-
-
5,562
-
30,404
-
85,966
35.37%
2023
35,000
-
-
3,719
-
12,233
-
50,952
24.00%
Malcolm R J Randall
2024
50,000
-
-
5,562
-
30,404
-
85,966
35.37%
2023
35,000
-
-
3,719
-
-
-
38,719
-
Philip G Crabb 1
2024
-
-
-
-
-
-
-
-
-
2023
14,135
-
-
1,484
-
-
-
15,619
-
Chief Executive Office
Alexander Passmore 2
2024
300,000
8,077
30,000
36,675
-
194,138
40,000
608,890
38.45%
2023
169,615
4,393
-
18,185
-
78,984
-
271,177
29.13%
Totals
2024
650,000
26,015
30,000
75,612
17,933
315,754
40,000
1,155,314
30.79%
2023
453,750
12,085
-
48,357
3,333
115,684
-
633,209
18.27%
1.
Mr P G Crabb resigned on 24 February 2023.
2.
Mr Passmore commenced with the Company in the 2023 financial year.
3.
Annual Leave relates to the movements in annual leave provisions during the year.
4.
On 18 October 2023, Mr Passmore received a cash payment from the Company of $30,000 pursuant to the terms of his Executive Services Agreement in relation to the introduction and acquisition of the Murchison Project.
5.
The amounts disclosed relate to the non-cash value ascribed to share options and performance rights under the Australian Accounting Standards using the Black Scholes and the Monte Carlo valuation methodologies.
6.
On 17 October 2023, Mr Passmore received 5,714,286 Introduction Shares pursuant to the terms of his Executive Services Agreement in relation to the Company’s acquisition of the Murchison Project. The shares were
issued at the Company’s share price of $0.007, which equates to their fair value.
NEW MURCHISON GOLD LIMITED
DIRECTORS’ REPORT
21
REMUNERATION REPORT (AUDITED) (continued)
(c)
Employment Agreements for Key Management Personnel
Name
Base salary
Terms of
Engagement
Notice Period
A Passmore (CEO)
$300,000
No fixed term
3 months’ notice by CEO
6 months’ notice by Company, except in
certain circumstances where no notice period
applies.
F DeMarte
$250,0001
No fixed term
12 months depending on termination events
1. Fixed base remuneration was increased from $200,000 to $250,000 effective 15 October 2023.
(d)
Shareholdings of Key Management Personnel (Consolidated and Parent Entity)
The number of shares held in New Murchison Gold Limited during the financial year by each Director and
other KMP of the Group, including their personally related parties, are set out below:
Name
Balance
1 October
2023
Granted as
Remuneration
On Exercise of
Options/Rights
Net Change
Other
Balance
30 September
2024
R W Crabb
92,807,454
-
-
5,000,000
97,807,454
F DeMarte
39,535,569
-
-
6,000,000
45,535,569
M R J Randall
25,750,000
-
-
-
25,750,000
A Passmore
97,642,536
-
115,000,000
55,673,019
268,315,555
Total
255,735,559
-
115,000,000
66,673,019
437,408,578
Name
Balance
1 October
2022
Granted as
Remuneration
On Exercise of
Options/Rights
Net Change
Other
Balance
30 September
2023
R W Crabb
11,275,780
-
-
81,531,674
92,807,454
P G Crabb 1
94,446,812
-
-
(94,446,812)
-
F DeMarte
9,605,367
-
-
29,930,202
39,535,569
M R J Randall
5,541,667
-
-
20,208,333
25,750,000
A Passmore 2
-
-
-
97,642,536
97,642,536
Total
120,869,626
-
-
134,865,933
255,735,559
1. Mr P G Crabb resigned on 24 February 2023.
2. Mr Passmore was appointed on 9 March 2023.
All equity transactions with key management personnel other than those arising from the exercise of
remuneration options have been entered into under terms and conditions no more favourable than those
the Company would have adopted if dealing at arm’s length.
NEW MURCHISON GOLD LIMITED
DIRECTORS’ REPORT
22
REMUNERATION REPORT (AUDITED) (continued)
(e) Share-Based Compensation Options
During the financial year there were 40,000,000 options granted as equity compensation benefits to key management personnel as detailed in the table below. No options
have been granted since the end of the year to key management personnel. For further details relating to options, refer to Note 20.
30 September 2024
Terms and Conditions for each Grant
Key Management
Personnel
Number
Granted
Number
Vested
Grant
Date
Fair Value per
option at Grant
Date
Exercise
Price per option
Expiry
Date
First
Exercise
Date
Last
Exercise
Date
F DeMarte
20,000,000
20,000,000
28/02/2024
$0.0030
$0.0087
28/02/2027
28/02/2024
28/02/2027
R W Crabb
10,000,000
10,000,000
28/02/2024
$0.0030
$0.0087
28/02/2027
28/02/2024
28/02/2027
M Randall
10,000,000
10,000,000
28/02/2024
$0.0030
$0.0087
28/02/2027
28/02/2024
28/02/2027
Total
40,000,000
(f)
Performance Rights
During the financial year there were no Performance Rights granted as equity compensation benefits to key management personnel. Details on performance rights over
ordinary shares in the Company that vested during the period are shown in following table.
No performance rights have been granted since the end of the year to key management personnel. For further details relating to options, refer to Note 20.
30 September 2024
Terms and Conditions for each Grant
Key Management
Personnel
Number
Granted
Grant Date
(valuation
purposes)
Fair Value per
Right at Grant
Date (Note 20)
Exercise Price
per Right $
(Note 20)
Expiry
Date
First Exercise
Date
Last
Exercise Date
Number of
Performance
Rights Vested
during the year
A Passmore 1
33,000,000
27/03/2023
$0.0021
Nil
27/03/28
Refer note 20
27/03/2028
33,000,000
33,000,000
27/03/2023
$0.0012
Nil
27/03/28
Refer note 20
27/03/2028
33,000,000
49,000,000
27/03/2023
$0.0025
Nil
27/03/28
Refer note 20
27/03/2028
49,000,000
49,038,547
27/03/2023
$0.0025
Nil
27/03/28
Refer note 20
27/03/2028
-
Total
164,038,547
115,000,000
1. Mr Passmore was appointed on 9 March 2023. Pursuant to and in accordance with Part 2D.2 of the Corporations Act (including sections 200B and 200E), ASX listing Rule 7.1 and Listing Rule
shareholders approved Mr Passmores Performance Rights at a General Meeting held on 27 March 2023. The CEO Performance Rights are subject to vesting conditions and expire 27 March 2028.
NEW MURCHISON GOLD LIMITED
DIRECTORS’ REPORT
23
REMUNERATION REPORT (AUDITED) (continued)
(g) Shares Issued on exercise of compensation options
There were no shares issued to key management personnel on exercise of compensation options for the
year ended 30 September 2024.
(h) Options granted as part of remuneration
The following table summarises the value of options granted, exercised or lapsed for the year ended 30
September 2024.
30 September 2024
Value of options granted
during the year $
% Remuneration Consisting of
Options for the year
F DeMarte 1
60,808
16.24%
R W Crabb 2
30,404
35.37%
M Randall 3
30,404
35.37%
1.
20,000,000 options were issued to Mr F DeMarte or his nominee exercisable at $0.0087 each expiring on 28 February 2027.
2.
10,000,000 options were issued to Mr R W Crabb or his nominee exercisable at $0.0087 each expiring on 28 February 2027.
3.
10,000,000 options were issued to Mr M Randall or his nominee exercisable at $0.0087 each expiring on 28 February 2027.
Director options vest on date of issue. For details on the valuation of the options, including models and
assumptions used, please refer to Note 20. There were no alterations to the terms and conditions of options
granted as remuneration since their grant date.
The following table summarises the value of options granted, exercised or lapsed for the year ended 30
September 2023.
30 September 2023
Value of options granted
during the year $
% Remuneration Consisting of
Options for the year
F DeMarte 1
24,467
9.53%
R W Crabb 2
12,233
24%
A Passmore 3
78,984
29.13%
1.
20,000,000 options were issued to Mr F DeMarte or his nominee exercisable at $0.0045 each expiring on 28 February 2026.
2.
10,000,000 options were issued to Mr R W Crabb or his nominee exercisable at $0.0045 each expiring on 28 February 2026.
3.
64,458,205 performance options were issued to Mr Passmore. The performance options are subject to vesting conditions and
each have an exercise price of $0.006 and expire on 27 March 2028.
(i)
Clawback Policy
The Company’s Employee Option Incentive Plan includes provisions that if the Board becomes aware of
a material misstatement in the Company’s Consolidated financial statements or some other event has
occurred which, as a result, means that the vesting conditions in respect of certain vested options were
not, or should not have been determined to have been, satisfied, then the holder will cease to be entitled
to those vested options (Affected Options) and the Board may take various actions, including: cancelling
the relevant Affected Options for no consideration; requiring that the holder pay to the Company the after
tax value of the Affected Options which have been converted into Shares or adjusting fixed remuneration,
incentives or participation in the option incentive plan of a relevant holder in the current year or any future
year to take account of the after tax value of the Affected Options.
NEW MURCHISON GOLD LIMITED
DIRECTORS’ REPORT
24
REMUNERATION REPORT (AUDITED) (continued)
(j)
Equity instruments
Analysis of options and rights over equity instruments granted as compensation. Details of vesting profiles of the options and performance rights held by each
KMP of the Group during the year ended 30 September 2024 are detailed below:
Instrument
Number of
instruments granted
Grant date
Exercise price
Fair value at on grant
date
Financial year in which
instruments expire
Executive Director
F DeMarte
Options
10,000,000
9/04/2020
$0.018
$0.0074
2025
Options
20,000,000
24/02/2023
$0.0045
$0.0012
2026
Options
20,000,000
28/02/2024
$0.0087
$0.0030
2027
Non-Executive Directors
R W Crabb
Options
7,000,000
26/02/2021
$0.037
$0.0118
2026
Options
10,000,000
24/02/2023
$0.0045
$0.0012
2026
Options
10,000,000
28/02/2024
$0.0087
$0.0030
2027
M R J Randall
Options
5,000,000
26/02/2021
$0.037
$0.00118
2026
Options
10,000,000
28/02/2024
$0.0087
$0.0030
2027
Chief Executive Officer
A Passmore 1
Performance
Options
64,458,205
27/03/2023
$0.006
$0.0002 - $0.0013
2028
A Passmore 1,2
Performance
Rights
164,038,547
27/03/2023
Nil
$0.0012 - $0.0025
2028
1.
The CEO was granted performance options and performance rights approved by shareholders at General Meeting held on 27 March 2023. The options and rights will only vest and entitle the CEO
to exercise the options / rights if the applicable vesting conditions are satisfied prior to the expiry date.
2.
115,000,000 performance rights issued to the CEO on 27 March 2023 vested and were exercised during the year.
(k) Loans to key management personnel
There were no loans made to key management personnel during the year ended 30 September 2024 (2023: nil).
(l)
Other transactions with key management personnel and their related parties
There were no other transactions with key management personnel during the year ended 30 September 2024 (2023: In relation to the secured and unsecured
Loan facilities between the Company and Ioma Pty Ltd as trustee for the Gemini Trust (an entity associated with director Mr P G Crabb) for a total of $4,500,000. The
Company repaid the loan facility in March 2023).
NEW MURCHISON GOLD LIMITED
DIRECTORS’ REPORT
25
REMUNERATION REPORT (AUDITED) (continued)
(m) Options and Performance Rights over Equity Instruments
The movement during the current financial year, by number of options over ordinary shares in the Company held directly, indirectly or beneficially, by each
KMP, including their related parties, is as follows:
Held at
1 October 2023
Granted as
Remuneration
Exercised
Net Change
Other
Held at
30 September 2024
Vested and
Exercisable
Not
Exercisable
F DeMarte 1
37,170,049
20,000,000
-
-
57,170,049
57,170,049
-
R W Crabb 1
37,132,918
10,000,000
-
-
47,132,918
47,132,918
-
M R J Randall 1
14,864,583
10,000,000
-
-
24,864,583
24,864,583
-
A Passmore 2
91,340,267
-
-
7,085,687
98,425,954
79,156,479
19,269,475
Total
180,507,817
40,000,000
-
7,085,687
227,593,504
208,324,029
19,269,475
1.
A total of 40,000,000 options were issued to Mr R Crabb (10,000,000 options), Mr Randall (10,000,000 options) and Mr DeMarte (20,000,000 options) exercisable
at $0.0087 each expiring on 28 February 2027.
2.
The CEO was granted 64,458,205 performance options approved by shareholders at General Meeting held on 27 March 2023. The performance options will only vest
and entitle the CEO to exercise the options if the applicable vesting conditions are satisfied prior to the expiry date. During the year, 45,188,730 options vested upon
satisfaction of vesting conditions attaching to the CEO’s Performance Rights.
The movement during the current financial year, by number of performance rights over ordinary shares in the Company held directly,
indirectly or beneficially, by each KMP, including their related parties, is as follows:
Held at
1 October 2023
(unvested)
Granted as
Remuneration
Vested and
Exercised
Expired
Held at
30 September 2024
Vested and
Exercisable
Unvested at
30 September 2024
A Passmore 3
164,038,547
-
(115,000,000)
-
49,038,547
-
49,038,547
Total
164,038,547
-
(115,000,000)
-
49,038,547
-
49,038,547
3.
The CEO was granted 164,038,547 performance rights approved by shareholders at General Meeting held on 27 March 2023. The performance rights are subject to vesting
conditions and expire on 27 March 2028.
NEW MURCHISON GOLD LIMITED
DIRECTORS’ REPORT
26
DIRECTORS’ MEETINGS
The following table sets out the number of meetings of directors held during the year and the number of meetings
attended by each director:
Board of Directors’
Meetings
Audit Committee
Meetings
Remuneration
Committee Meetings
Nomination
Committee Meetings
Name
Number
attended
Number
eligible
to attend
Number
attended
Number
eligible
to attend
Number
attended
Number
eligible
to attend
Number
attended
Number
eligible
to attend
M R J Randall
6
6
2
2
-
-
-
-
F DeMarte 1
6
6
2
2
-
-
-
-
A Passmore
6
6
2
2
-
-
-
-
1. F DeMarte, who is the Company Secretary and Chief Financial Officer, attends the Audit Committee meetings by invitation only.
Committee Memberships
As at the date of this report, the Company had an Audit Committee, Remuneration Committee and a Nomination
Committee.
Audit
Remuneration
Nomination
M R J Randall (A)
M J Randall (A)
M J Randall (A)
R W Crabb
R W Crabb
F DeMarte
R W Crabb
Note: (A) Designates the Chairman of the Committee.
RESIGNATION, ELECTION AND CONTINUATION IN OFFICE
In accordance with the Constitution of the Company, Rick Crabb being eligible, will offer himself for re-election
at the Annual General Meeting.
PROCEEDINGS ON BEHALF OF THE COMPANY
During the year, no person applied for leave of Court to bring proceedings on behalf of the Company or intervene
in any proceedings to which the Group is a party for the purposes of taking responsibility on behalf of the Company
for all or any part of the proceedings.
DEEDS OF ACCESS, INDEMNITY AND INSURANCE
The Company has entered into Deeds of Access, Indemnity and Insurance (Deed) with each of director and
executive, including the Company Secretary.
The Deed indemnifies each of its directors and executives (Officeholders) for the period that they hold and for
seven years after they cease to be a director and officer of the Company (Access Period) to the maximum extent
permitted by law for any loss, cost, expense or liability incurred by the Officeholder in connection with the
Officeholder’s position, including in respect to negligence, and all legal costs reasonably incurred in defending
legal proceedings relating to the Officeholder’s conduct. Any payment in respect of the indemnity is subject to
shareholder approval.
The Company must insure the Officeholders for the Access Period against all liability, including legal costs, to
which they are exposed in performing their role. The Company is not required to insure the Officeholders in
respect of conduct involving a wilful breach of duty or a contravention of section 182 or 183 of the Corporations
Act 2001, other than in respect of all legal costs associated with defending such claims (including in relation to
criminal matters). The Directors of the Company are not aware of any such proceedings or claims brought against
the Company as at the date of this report.
NEW MURCHISON GOLD LIMITED
DIRECTORS’ REPORT
27
INSURANCE OF DIRECTORS AND OFFICERS
During the financial year, the Company paid premiums to insure the directors and officers of the Company against
liabilities for costs and expenses that may be incurred by the directors in defending civil or criminal proceedings
that may be brought against the directors and officers in their capacity as officers of the Company, other than
conduct involving a wilful breach of duty in relation to the Company.
NON-AUDIT SERVICES
During the year ended 30 September 2024, $2,400 was paid to Stantons International for non-audit services
provided (2023 – $2,100).
AUDITOR INDEPENDENCE
The auditor’s independence declaration for the year ended 30 September 2024 has been received and can be
found on page 72.
Signed in accordance with a resolution of the directors.
FRANK DEMARTE
Executive Director
Perth, Western Australia
Dated in Perth this 11 December 2024
NEW MURCHISON GOLD LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
28
Note
Consolidated
2024
$
2023
$
Revenue from Continuing Operations
Revenue
4(a)
126,340
24,026
Other income
4(b)
44,382
-
170,722
24,026
Expenditure
Amortisation and depreciation
(111,957)
(52,324)
Share-based payments expense
4(c)
(503,267)
(151,602)
Exploration expenditure written off or impaired
4(d)
(27,950)
(582,561)
Administration expenses
4(e)
(2,228,777)
(1,260,031)
Interest expense on lease liability
7
(9,210)
(2,828)
Interest costs
16
-
(131,297)
(Loss) from continuing operations before income tax
expense
(2,710,439)
(2,156,617)
Income tax (expense)/benefit
5
-
-
Net (Loss) from continuing operations for the year
(2,710,439)
(2,156,617)
Other comprehensive income
Item that will not be reclassified to profit or loss
-
-
Item that may be reclassified subsequently to profit or
loss
-
-
Other comprehensive income for the year, net of tax
-
-
Total comprehensive (loss)/income for the year
(2,710,439)
(2,156,617)
Net (Loss) attributable to members of the parent
entity
(2,710,439)
(2,156,617)
Comprehensive (loss)/income attributable to
members of the parent entity
(2,710,439)
(2,156,617)
(Loss) per share attributable to ordinary equity holders:
Basic (loss) (cents per share)
Diluted (loss) (cents per share)
8
8
(0.05)
(0.05)
(0.08)
(0.08)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction
with the accompanying notes.
NEW MURCHISON GOLD LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024
29
Note
Consolidated
2024
$
2023
$
ASSETS
Current assets
Cash and cash equivalents
6(b)
3,392,660
2,302,651
Trade and other receivables
9(a)
361,273
213,903
Other financial assets
10
45
45
Total current assets
3,753,978
2,516,599
Non-current assets
Other receivables
9(b)
38,857
38,857
Property, plant and equipment
11
175,803
194,956
Right of use asset
7(a)
105,374
163,444
Exploration expenditure
13
10,678,101
4,196,689
Total non-current assets
10,998,135
4,593,946
Total assets
14,752,113
7,110,545
LIABILITIES
Current liabilities
Trade and other payables
14
699,539
1,782,240
Provisions
15
279,760
197,103
Lease liabilities
7(b)
61,746
54,486
Total current liabilities
1,041,045
2,033,829
Non-current liabilities
Lease liabilities
7(b)
50,519
110,876
Total non-current liabilities
50,519
110,876
Total liabilities
1,091,564
2,144,705
NET ASSETS
13,660,549
4,965,840
EQUITY
Contributed equity
17(a)
88,536,963
77,364,582
Reserves
17(d)
9,524,009
9,291,242
Accumulated losses
18
(84,400,423)
(81,689,984)
TOTAL EQUITY
13,660,549
4,965,840
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
NEW MURCHISON GOLD LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
30
CONSOLIDATED
Contributed
Equity
Reserves
Accumulated
Losses
Total
$
$
$
$
Balance at 1 October 2022
66,394,449
8,745,592
(79,533,367)
(4,393,326)
Total comprehensive loss for the year
Total loss for the year
-
-
(2,156,617)
(2,156,617)
Total comprehensive loss for the year
-
-
(2,156,617)
(2,156,617)
Transactions with owners recorded
directly in equity:
Recognition of share-based payments
17(d)
-
151,602
-
151,602
Issue of shares via Placements
17(b)
2,000,000
-
-
2,000,000
Issue of shares via Share Purchase Plan
17(b)
1,000,000
-
-
1,000,000
Issued as part of an Entitlement Offer
17(b)
8,858,082
-
-
8,858,082
Issued on conversion of options
17(b)
167,003
-
-
167,003
Shares issued as consideration
17(b)
400,000
-
-
400,000
Share issue costs*
17(b)
(1,454,952)
394,048
-
(1,060,904)
Balance at 30 September 2023
77,364,582
9,291,242
(81,689,984)
4,965,840
* Share issue cost includes cash consideration and share-based payment (refer note 20).
CONSOLIDATED
Notes
Contributed
Equity
Reserves
Accumulated
Losses
Total
$
$
$
$
Balance at 1 October 2023
77,364,582
9,291,242
(81,689,984)
4,965,840
Total comprehensive loss for the year
Total loss for the year
-
-
(2,710,439)
(2,710,439)
Total comprehensive loss for the year
-
-
(2,710,439)
(2,710,439)
Transactions with owners recorded
directly in equity:
Recognition of share-based payments
17(d)
-
463,267
-
463,267
Issue of shares via Placements
17(b)
11,008,214
-
-
11,008,214
Issued on conversion of options
17(b)
54,166
-
-
54,166
Issued on exercise of performance rights
17(b)
230,500
(230,500)
-
-
Shares issued as consideration to KMP
17(b)
40,000
-
-
40,000
Shares issued as consideration
17(b)
400,000
-
-
400,000
Share issue costs
17(b)
(560,499)
-
-
(560,499)
Balance at 30 September 2024
88,536,963
9,524,009
(84,400,423)
13,660,549
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
NEW MURCHISON GOLD LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
31
Note
Consolidated
2024
$
2023
$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
(3,320,365)
(786,227)
Interest received
125,172
20,348
Other revenue
17,229
-
Net cash (outflow) from operating activities
6(a)
(3,177,964)
(765,879)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for purchase of plant and equipment
(65,162)
(151,457)
Payments for purchase of tenements
(300,000)
(300,000)
Proceeds from sale of plant and equipment
58,808
-
Security deposits – net
-
(38,854)
Exploration and evaluation expenditure
(5,863,687)
(3,181,013)
Net cash (outflow) from investing activities
(6,170,041)
(3,671,324)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares and options
11,062,380
10,581,921
Proceeds from borrowings
-
500,000
Repayment of borrowings
-
(3,374,110)
Repayment of lease liability
(63,867)
(15,744)
Share issue costs
(560,499)
(1,060,904)
Net cash inflow from financing activities
10,438,014
6,631,163
Net increase /(decrease) in cash and cash equivalents
held
1,090,009
2,193,960
Cash and cash equivalents at the beginning of the year
2,302,651
108,691
Cash and cash equivalents at the end of the year
6(b)
3,392,660
2,302,651
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
32
1.
CORPORATE INFORMATION
The consolidated financial statements of New Murchison Gold Limited (previously Ora Gold Limited)
(Company), comprise the Company and its subsidiaries (together referred to as the “Group” or “Consolidated
Entity”) for the year ended 30 September 2024 was authorised for issue in accordance with a resolution of the
directors on 10 December 2024. New Murchison Gold Limited is a company limited by shares, incorporated
and domiciled in Australia, whose shares are publicly traded on the Australian Securities Exchange Ltd.
2.
SUMMARY OF MATERIAL ACCOUNTING POLICIES
(a)
Basis of Preparation
The financial report is a general-purpose financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001 and Australian Accounting Standards (including Australian
Accounting Standards and Interpretations).
The financial report has also been prepared on a historical basis and the accruals basis modified where
applicable by the measurement at fair value of selected non-current assets, financial assets and financial
liabilities.
Going Concern
These consolidated financial statements have been prepared on a going concern basis which contemplates
continuity of normal business activities and the realisation of assets and settlement of liabilities in the
normal course of business.
As at 30 September 2024 the Group had a cash and cash equivalents of $3,392,660 (2023: $2,302,651),
cash outflow from investing activities of $6,170,041 (2023: $3,671,324), cash outflow from operating
activities of $3,177,964 (2023: $765,879), and reported a loss for the year of $2,710,439 (2023: $2,156,617)
and had a net working capital of $2,712,933 (2023: $482,770).
Based on a cashflow forecast prepared by management, the ability of the Group to continue to pay its debts
as and when they fall due is dependent on the Company successfully raising additional share capital and
ultimately developing its mineral properties.
The directors believe it is appropriate to prepare these financial statements on a going concern basis
because:
▪
The directors have appropriate plans to raise additional funds as and when required. In light of the
Group’s current exploration projects, the directors believe that the additional capital can be raised
in the market; and
▪
The directors have an appropriate plan to contain certain operating and exploration expenditure if
required funding is not available.
▪
The directors are optimistic the remaining 517,132,063 and 657,143,904 options, with an exercise
price of $0.006 and expiring on 9 March 2025 and 27 March 2025 respectively, will be exercised on
or before their expiry, generating at least $7 million.
These financial statements have been prepared on the basis that the Group can meet its commitments as
and when they fall due and can therefore continue normal business activities, and the realisation of its
assets and settlement of its liabilities can occur in the ordinary course of business.
In the event that the Group is unable to satisfy future funding requirements, a material uncertainty would
arise that may cast significant doubt on the Group’s ability to continue as a going concern with the result
that the Group may be required to realise its assets at amounts different from those currently recognised,
settle liabilities other than in the ordinary course of business and make provisions for costs which may arise
as a result of cessation or curtailment of normal business operations.
(b)
Statement of compliance
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not
yet effective have not been adopted by the Group for the annual reporting period ended 30 September 2024
and are outlined below under Note 2(e).
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
33
2.
SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
(b)
Statement of compliance (continued)
The Consolidated financial report complies with Australian Accounting Standards, which include Australian
equivalents to International Financial Reporting Standards (AIFRS). The Consolidated financial report also
complies with International Financial Reporting Standards (IFRS).
(c)
Principles of consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the parent New
Murchison Gold Limited (formerly Ora Gold Limited) and all of the subsidiaries. Subsidiaries are entities the
parent controls. The parent 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. A list
of the subsidiaries is provided in Note 23.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the
Group from the date on which control is obtained by the Group. The consolidation of a subsidiary is
discontinued from the date that control ceases. Intercompany transactions, balances and unrealised gains
or losses on transactions between Group entities are fully eliminated on consolidation. Accounting policies
of subsidiaries have been changed and adjustments made where necessary to ensure uniformity of the
accounting policies adopted by the Group.
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as “non
controlling interests". The Group initially recognises non-controlling interests that are present ownership
interests in subsidiaries and are entitled to a proportionate share of the subsidiary's net assets on liquidation
at either fair value or at the non-controlling interests' proportionate share of the subsidiary's net assets.
Subsequent to initial recognition, non-controlling interests are attributed their share of profit or loss and
each component of other comprehensive income. Non-controlling interests are shown separately within the
equity section of the statement of financial position and statement of comprehensive income.
(d)
Adoption of New and Amended Accounting Policies
The Group has adopted the following new and revised Standards and Interpretations issued by the Australian
Accounting Standards Board (the AASB) that are relevant to their operations and effective for the current
reporting period.
New and amended Accounting Standards adopted in the current year that are relevant to the Group include:
AASB 2021-2: Amendments to Australian Accounting Standards – Disclosure of Accounting Policies
and Definition of Accounting Estimates
The Group adopted AASB 2021-2 which amends AASB 7, AASB 101, AASB 108 and AASB 134 to require
disclosure of ‘material accounting policy information’ rather than significant accounting policies’ in an
entity’s financial statements. It also updates AASB Practice Statement 2 to provide guidance on the
application of the concept of materiality to accounting policy disclosures.
The adoption of the amendment did not have a material impact on the financial statements.
AASB 2021-5: Amendments to Australian Accounting Standards – Deferred Tax Related to Assets and
Liabilities Arising from a Single Transaction
The Group adopted AASB 2021-5 Amendments to Australian Accounting Standards – Deferred Tax related to
Assets and Liabilities arising from a Single Transaction for the year ending 30 September 2024.
Previously, the Group applied the exemption in AASB 112 and did not recognise deferred taxes on its lease
transactions where the right of use asset and lease liability were equal on initial recognition. However, the
amendment subsequently clarified that this exemption does not apply to transactions for which entities
recognise both an asset and a liability that give rise to equal taxable and deductible temporary differences,
as may be the case for lease transactions.
There was no impact on the statement of financial position, statement of cash flows or statement of profit
or loss in the current or preceding period, as a result of the adoption of AASB 2021-5.
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
34
2.
SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
(d)
Adoption of New and Amended Accounting Policies (continued)
AASB 2022-7: Editorial Corrections to Australian Accounting Standards and Repeal of Superseded and
Redundant Standards
AASB 2022-7 makes editorial corrections to various Australian Accounting Standards and AASB Practice
Statement 2. It also formally repeals the superseded and redundant Australian Accounting Standards set out in
Schedules 1 and 2 of this standard.
The adoption of the amendment did not have a material impact on the financial statements.
(e)
New and revised Australian Accounting Standards and Interpretations on issue but not yet effective
Standards and interpretations that have recently been issued or amended by the AASB but are not yet
mandatory have not been early adopted by the Group for the annual reporting period ended 30 September 2024.
AASB 2020-1: Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-
current
The amendment amends AASB 101 to clarify whether a liability should be presented as current or non-current.
The Group plans on adopting the amendment for the reporting period ending 30 September 2025. The
amendment is not expected to have a material impact on the financial statements once adopted.
(f)
Other Australian Accounting Standards and Interpretations on issue but not yet effective
There are no standards that are not yet effective and that would be expected to have a material impact on
the entity in the current or future reporting periods and on foreseeable future transactions.
(g)
Fair value of assets and liabilities
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring
basis, depending on the requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in
an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants
at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is
used to determine fair value. Adjustments to market values may be made having regard to the characteristics
of the specific asset or liability. The fair values of assets and liabilities that are not traded in an active market
are determined using one or more valuation techniques. These valuation techniques maximise, to the extent
possible, the use of observable market data.
For non-financial assets, the fair value measurement also takes into account a market participant's ability
to use the asset in its highest and best use or to sell it to another market participant that would use the asset
in its highest and best use.
The fair value of liabilities and the entity's own equity instruments (excluding those related to share-based
payment arrangements) may be valued, where there is no observable market price in relation to the transfer
of such financial instruments, by reference to observable market information where such instruments are
held as assets. Where this information is not available, other valuation techniques are adopted and, where
significant, are detailed in the respective note to the financial statements.
Valuation techniques
In the absence of an active market for an identical asset or liability, the Group selects and uses one or more
valuation techniques to measure the fair value of the asset or liability, The Group selects a valuation
technique that is appropriate in the circumstances and for which sufficient data is available to measure fair
value.
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
35
2.
SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
(g)
Fair value of assets and liabilities (continued)
Valuation techniques (continued)
The availability of sufficient and relevant data primarily depends on the specific characteristics of the asset
or liability being measured. The valuation techniques selected by the Group are consistent with one or more
of the following valuation approaches:
•
Market approach: valuation techniques that use prices and other relevant information generated
by market transactions for identical or similar assets or liabilities.
•
Income approach: valuation techniques that convert estimated future cash flows or income and
expenses into a single discounted present value.
•
Cost approach: valuation techniques that reflect the current replacement cost of an asset at its
current service capacity.
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use
when pricing the asset or liability, including assumptions about risks. When selecting a valuation technique,
the Group gives priority to those techniques that maximise the use of observable inputs and minimise the
use of unobservable inputs. Inputs that are developed using market data (such as publicly available
information on actual transactions) and reflect the assumptions that buyers and sellers would generally use
when pricing the asset or liability are considered observable, whereas inputs for which market data is not
available and therefore are developed using the best information available about such assumptions are
considered unobservable.
Fair value hierarchy
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which
categorises fair value measurements into one of three possible levels based on the lowest level that an input
that is significant to the measurement can be categorised into as follows:
Level 1
Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that
the entity can access at the measurement date.
Level 2
Measurements based on inputs other than quoted prices included in Level 1 that are observable for the
asset or liability, either directly or indirectly.
Level 3
Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or
more valuation techniques. These valuation techniques maximise, to the extent possible, the use of
observable market data. If all significant inputs required to measure fair value are observable, the asset or
liability is included in Level 2. If one or more significant inputs are not based on observable market data, the
asset or liability is included in Level 3.
The Group would change the categorisation within the fair value hierarchy only in the following
circumstances:
(i)
if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3)
or vice versa; or
(ii)
if significant inputs that were previously unobservable (Level 3) became observable (Level 2)
or vice versa.
(h)
Significant accounting estimates and assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates and
assumptions of future events. The key estimate and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of certain assets and liabilities within the next annual reporting
period are:
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
36
2.
SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
(h)
Significant accounting estimates and assumptions (continued)
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of
the equity instruments at the date at which they are granted. The fair value is determined by an external
valuer using a Black-Scholes option pricing model, using the assumptions detailed in Note 20.
Mineral Exploration and Evaluation
Exploration and evaluation expenditure is accumulated in respect of each identifiable area of interest. These
costs may be carried forward in respect of an area that has not at balance date reached a stage which permits
a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active
operations in, or relating to, the area of interest are continuing. The ultimate recoupment of the costs carried
forward is dependent upon the successful development and commercial exploitation, or alternatively, sale
of the respective areas of interest.
Impairment of assets
The Group assesses each cash generating unit annually to determine whether any indication of impairment
exists. Where an indicator of impairment exists, a formal estimate of the recoverable amount is made, which
is considered to be the higher of the fair value less costs to sell and value-in-use.
These assessments require the use of estimates and assumptions such as long-term commodity prices,
discount rates, future capital requirements, exploration potential and operating performance. Fair value is
determined as the amount that would be obtained from the sale of the asset in an arm's length transaction
between knowledgeable and willing parties.
Fair value for mineral assets is generally determined as the present value of estimated future cash flows
arising from the continued use of the asset, which includes estimates such as the cost of future expansion
plans and eventual disposal, using assumptions that an independent market participant may take into
account.
Cash flows are discounted by an appropriate discount rate to determine the net present value. Management
has assessed its cash generating units as being an individual mine site, which is the lowest level for which
cash flows are largely independent of other assets.
(i)
Deferred taxation
Judgement is required in determining whether deferred tax assets are recognised on the Consolidated
statement of financial position. Deferred tax assets, including those arising from un-utilised tax losses,
require management to assess the likelihood that the Group will generate taxable earnings in future
periods, in order to utilise recognised deferred tax assets.
Estimates of future taxable income are based on forecast cash flows from operations and the application of
existing tax laws in each jurisdiction. 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 recorded at the
reporting date could be impacted.
Additionally, future changes in tax laws in the jurisdictions in which the Group operates could limit the
ability of the Group to obtain tax deductions in future periods.
(j)
Revenue recognition
The Group applies AASB 15 Revenue from Contracts with Customers, however the Group does not have
any revenue from contracts with customers. The only other revenue is interest income recorded on an
accruals basis. From time to time the Group crystalises gains/(losses) from the disposal of property, plant
and equipment.
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
37
2.
SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
(k)
Government Grants
Government Grants are recognised in the statement of profit and loss as other income when the proceeds are
received.
(l)
Cash and cash equivalents
Cash and short-term deposits in the Consolidated Statement of Financial Position comprise cash at bank and in
hand and short-term deposits with an original maturity of three months or less. For the purposes of the
Consolidated Statement of Cash Flow, cash and cash equivalents consist of cash and cash equivalents as
detailed above, net of outstanding bank overdrafts.
(m)
Trade and other receivables
Trade receivables, which generally have 30-90 day terms, are recognised and carried at original invoice amount
less an allowance for any uncollectible amounts. Trade receivables are recognised initially at the amount of
consideration that is unconditional unless they contain significant financing components when they are
recognised at fair value. The Group holds the trade receivables with the objective to collect contractual cashflows
and therefore measures them subsequently at amortised cost using the effective interest method. Details about
the Group’s impairment policies and calculations of the loss allowance are provided in Note 2(y).
An allowance for doubtful debts is made when there is objective evidence that the Group will not be able to collect
the debts. Bad debts are written off when identified.
(n)
Income tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted by the balance sheet date.
Deferred income tax is provided on all temporary differences at the balance sheet date between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax liabilities
are recognised for all taxable temporary differences except:
•
when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or
liability in a transaction that is not a business combination and that, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; or
•
when the taxable temporary difference is associated with investments in subsidiaries, associates or
interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled
and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax
assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which
the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be
utilised, except:
•
when the deferred income tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of
the transaction, affects neither the accounting profit not taxable profit or loss, or
•
when the taxable temporary difference is associated with investments in subsidiaries, associates or
interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled
and it is probable that the temporary difference will not reverse in the foreseeable future.
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
38
2.
SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
(o)
Other taxes
Revenues, expenses and assets are recognised net of amount of GST except:
•
when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in
which case the GST is recognised as part of the cost of acquisition of the assets or as part of the expense
item as applicable; and
•
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables
or payables in the Consolidated Statement of Financial Position.
Cash flows are included in the Consolidated Statement of Cash Flows on a gross basis and the GST component of
cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation
authority, are classified as operating cash flows. Commitments and contingencies are disclosed net of the amount
of GST recoverable from, or payable to, the taxation authority.
(p)
Plant and equipment
Plant and equipment is stated at cost less any accumulated depreciation and any impairment losses.
(i)
Depreciation
The depreciable amount of all fixed assets is depreciated on a diminishing value basis over their useful
lives to the Group commencing from the time the asset is held ready for use.
The depreciation rates used for each class of depreciable assets are:
Leasehold improvements – over 5 years or period of lease
Plant and equipment – over 4 to 10 years
Motor vehicles – over 4 years
Office equipment – over 2 to 8 years
(ii)
Impairment
The carrying values of plant and equipment are reviewed for impairment when events or changes in
circumstances indicate the carrying value may not be recoverable. For an asset that does not generate
largely independent cash inflows, the recoverable amount is determined for the cash-generating unit
to which the asset belongs.
If any such indication exists and where the carrying value exceeds the estimated recoverable amount, the
assets or cash-generating units are written down to their recoverable amount.
The recoverable amount of plant and equipment is the greater of fair value less costs to sell and value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-
tax discount rate that reflects current market assessments of the item value of money and the risks specific
to the asset.
An item of plant and equipment is derecognised upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset
(calculated as the difference between the net disposal proceeds and the carrying amount of the item) is
included in the income statement in the period the item is being derecognised.
(q)
Exploration expenditure
Exploration, development and joint venture expenditure carried forward represents an accumulation of net
costs incurred in relation to separate areas of interest for which rights of tenure are current and in respect of
which:
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
39
2.
SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
(q)
Exploration expenditure (continued)
(a)
such costs are expected to be recouped through successful development and exploitation of the
area, or alternatively by its sale, or
(b)
exploration and/or evaluation activities in the area have not yet reached a stage which permits a
reasonable assessment of the existence or otherwise of economically recoverable reserves, and
active and significant operations in, or in relation to the areas are continuing.
Accumulated costs in respect of areas of interest, which are abandoned, are written off in the income
statement in the year in which the area is abandoned.
The net carrying value of each property is reviewed regularly and, to the extent to which this value exceeds
its recoverable amount that excess is fully provided against in the financial year in which this is determined.
For the year ended 30 September 2022 the Group chose not to carry forward the value of exploration
expenditure and fully provided for the carrying value of all exploration properties.
When the technical feasibility and commercial viability of extracting a mineral resource have been
demonstrated then any capitalised exploration and evaluation expenditure is reclassified as capitalised
mine development. Prior to the reclassification, capitalised exploration and evaluation expenditure is
assessed for impairment.
(r)
Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and
services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group
becomes obliged to make future payments in respect of the purchase of these goods and services.
(s)
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligations and a reliable estimate can be made of the amount of the obligation.
When the Group expects some or all of a provision to be reimbursed, for example under an insurance
contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually
certain. The expense relating to any provision is presented in the income statement net of any
reimbursement. If the effect of the time value of money is material, provisions are discounted using a current
pre-tax rate that reflects the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a borrowing cost.
(t)
Employee leave benefits
(i)
Wages, salaries and annual leave
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be
settled within 12 months of the reporting date are recognised in other payables in respect of
employees’ services up to the reporting date. They are measured at the amounts expected to be paid
when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the
leave is taken and are measured at the rates paid or payable.
(ii)
Long service leave
The liability for long service leave is recognised in the provision for employee benefits and measured
as the present value of expected future payments to be made in respect of services provided by
employees up to the reporting date. Consideration is given to expected future wage and salary levels,
experience of the employee departures, and periods of service. Where it is material expected future
payments are discounted using market yields at the reporting date on national government bonds with
terms to maturity and currencies that match, as closely as possible, the estimated future cash
outflows.
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
40
2.
SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
(u)
Earnings per share
(i)
Basic earnings per share (“EPS”) is calculated by dividing the net profit/loss attributable to members
for the reporting period, after excluding any costs of servicing equity, by the weighted average
number of ordinary shares of the Company, adjusted for any bonus issue.
(ii)
Diluted EPS is calculated by dividing the basic EPS, adjusted by the after tax effect of financing costs
associated with dilutive potential ordinary shares and the effect on net revenues and expenses of
conversion to ordinary shares associated with dilutive potential ordinary shares, by the weighted
average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus
issue.
(v)
Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares
or options are shown in equity as a deduction, net of tax, from the proceeds.
(w)
Borrowing costs
Borrowing costs are recognised as an expense when incurred. Alternatively, borrowing costs can be
capitalised for qualifying assets.
(x)
Leases
At inception of a contract the Group assesses if the contract contains or is a lease. If there is a lease
present, a right-of-use asset and a corresponding liability are recognised by the Group where the Group is
a lessee. However, all contracts that are classified as short-term leases (i.e. leases with a remaining lease
term of 12 months or less) and leases of low-value assets are recognised as an operating expense on a
straight-line basis over the term of the lease.
Initially, the lease liability is measured at the present value of the lease payments still to be paid at the
commencement date. The lease payments are discounted at the interest rate implicit in the lease. If this
rate cannot be readily determined, the Group uses incremental borrowing rate.
Lease payments included in the measurement of the lease liability are as follows:
•
fixed lease payments less any lease incentives;
•
variable lease payments that depend on index or rate, initially measured using the index or rate
at the commencement date;
•
the amount expected to be payable by the lessee under residual value guarantees;
•
the exercise price of purchase options if the lessee is reasonably certain to exercise the options;
•
lease payments under extension options, if the lease is reasonably certain to exercise the
options; and
•
payments of penalties for terminating the lease, if the lease term reflects the exercise of options
to terminate the lease.
The right-of-use asses comprise the initial measurement of the corresponding lease liability, any lease
payments made at or before the commencement date and any initial direct costs. The subsequent
measurement of the right-of-use assets is at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over the lease term or useful life of the underlying asset, whichever is
the shortest.
Where a lease transfers ownership of the underlying asset or the costs of the right-of-use asset reflects
that the Group anticipates to exercise a purchase option, the specific asset is depreciated over the useful
life of the underlying asset.
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
41
2.
SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
(x)
Leases (continued)
The determination of whether an arrangement is or contains a lease is based on the substance of the
arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on
the use of a specific asset or assets and the arrangement conveys a right-to-use the asset.
Finance leases, which transfer to the Group substantially all the risks and benefits incidental to ownership
of the leased item, are capitalised at the inception of the lease at the fair value of the leased property or, if
lower, at the present value of the minimum lease payments. Lease payments are apportioned between
the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the
remaining balance of the liability. Finance charges are recognised as an expense in profit or loss.
Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the
lease term if there is no reasonable certainty that the Group will obtain ownership by the end of the lease
term.
Operating lease payments are recognised as an expense in the income statement on a straight-line basis
over the lease term. Lease incentives are recognised in the income statement as an integral part of the
total lease expense.
(y)
Impairment of assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired.
If any such indication exists, or when annual impairment testing for an asset is required, the Group makes
an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value
less costs to sell and its value in use and is determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those from other assets or group of assets and the
asset’s value in use cannot be estimated to be close to its fair value. In such cases the asset is tested for
impairment as part of the cash-generating unit to which it belongs. When the carrying amount of an asset
or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered
impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. Impairment losses relating to continuing operations are recognised in those expense
categories consistent with the function of the impaired asset unless the asset is carried at revalued
amount (in which case the impairment loss is treated as a revaluation decrease).
An assessment is also made at each reporting date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. If such indication exits, the
recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has
been a change in the estimates used to determine the asset’s recoverable amount since the last
impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its
recoverable amount.
That increased amount cannot exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised
in profit or loss unless the asset is carried at revalued amount, in which case the reversal is treated as
revaluation increase. After such a reversal the depreciation charge is adjusted in future periods to allocate
the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful
life.
(z)
Interests in joint arrangements
Joint arrangements represent the contractual sharing of control between parties in a business venture where
unanimous decisions about relevant activities are required. Separate joint venture entities providing joint
venturers with an interest to net assets are classified as a "joint venture" and accounted for using the equity
method.
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
42
2.
SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
(z)
Interests in joint arrangements (continued)
Joint venture operations represent arrangements whereby joint operators maintain direct interests in each
asset and exposure to each liability of the arrangement. The Group's interests in the assets, liabilities, revenue
and expenses of joint operations are included in the respective line items of the consolidated financial
statements.
Gains and losses resulting from sales to a joint operation are recognised to the extent of the other parties'
interests. When the Group makes purchases from a joint operation, it does not recognise its share of the gains
and losses from the joint arrangement until it resells those goods/assets to a third party. Details of the Group's
interests in joint arrangements are provided in Note 24.
(aa)
Financial Instruments
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual
provisions of the financial instrument. Financial instruments (except for trade receivables) are measured
initially at fair value adjusted by transaction costs, except for those carried at ‘fair value through profit or loss’,
in which case transaction costs are expensed to profit or loss. Where available, quoted prices in an active
market are used to determine the fair value. In other circumstances, valuation techniques are adopted.
Subsequent measurement of financial assets and financial liabilities are described below.
Trade receivables are initially measured at the transaction price if the receivables do not contain a significant
financing component in accordance with AASB 15. Financial assets are derecognised when the contractual
rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks
and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged,
cancelled or expired.
Classification and measurement
Financial assets
Except for those trade receivables that do not contain a significant financing component and are measured
at the transaction price in accordance with AASB 15, all financial assets are initially measured at fair value
adjusted for transaction costs (where applicable).
For the purpose of subsequent measurement, financial assets other than those designated and effective as
hedging instruments are classified into the following categories upon initial recognition:
•
amortised cost;
•
fair value through other comprehensive income (FVOCI); and
•
fair value through profit or loss (FVPL).
Classifications are determined by both:
•
the contractual cash flow characteristics of the financial assets; and
•
the Group’s business model for managing the financial asset.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet with the following conditions (and are not
designated as FVPL);
•
they are held within a business model whose objective is to hold the financial assets and collect its
contractual cash flows; and
•
the contractual terms of the financial assets give rise to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method.
Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents,
trade and most other receivables fall into this category of financial instruments.
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
43
2.
SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
(aa)
Financial Instruments (continued)
Financial assets at fair value through other comprehensive income
The Group measures debt instruments at fair value through OCI if both of the following conditions are
met:
•
the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding; and
•
the financial asset is held within a business model with the objective of both holding to collect
contractual cash flows and selling the financial asset.
For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and
impairment losses or reversals are recognised in the statement of profit or loss and computed in the
same manner as for financial assets measured at amortised cost. The remaining fair value changes
are recognised in OCI.
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity
instruments designated at fair value through OCI when they meet the definition of equity under AASB
132 Financial Instruments: Presentation and are not held for trading.
Financial assets at fair value through profit or loss (FVPL)
Financial assets at fair value through profit or loss include financial assets held for trading, financial
assets designated upon initial recognition at fair value through profit or loss or financial assets
mandatorily required to be measured at fair value. Financial assets are classified as held for trading if
they are acquired for the purpose of selling or repurchasing in the near term.
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
loans and borrowings, payables or as derivatives designated as hedging instruments in an effective hedge, as
appropriate. Financial liabilities are initially measured at fair value, and, where applicable, adjusted for
transaction costs unless the Group designated a financial liability at fair value through profit or loss.
Subsequently, financial liabilities are measured at amortised cost using the effective interest method except
for derivatives and financial liabilities designated at FVPL, which are carried subsequently at fair value with
gains or losses recognised in profit or loss. All interest-related charges and, if applicable, gains and losses
arising on changes in fair value are recognised in profit or loss.
Impairment
The Group assesses on a forward-looking basis the expected credit loss associated with its debt instruments
carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has
been a significant increase in credit risk. For trade receivables, the Group applies the simplified approach
permitted by AASB, which requires expected lifetime losses to be recognised from initial recognition of the
receivables.
Derecognition
Derecognition refers to the removal of a previously recognised financial asset or financial liability from the
statement of financial position.
Derecognition of financial liabilities
A liability is derecognised when it is extinguished (ie when the obligation in the contract is discharged,
cancelled or expires). An exchange of an existing financial liability for a new one with substantially modified
terms, or a substantial modification to the terms of a financial liability is treated as an extinguishment of the
existing liability and recognition of a new financial liability.
The difference between the carrying amount of the financial liability derecognised and the consideration paid
and payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
44
2.
SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
(aa)
Financial Instruments (continued)
Derecognition of financial assets
A financial asset is derecognised when the holder's contractual rights to its cash flows expires, or the
asset is transferred in such a way that all the risks and rewards of ownership are substantially transferred.
All of the following criteria need to be satisfied for derecognition of financial asset:
•
the right to receive cash flows from the asset has expired or been transferred;
•
all risk and rewards of ownership of the asset have been substantially transferred; and
•
the Group no longer controls the asset (ie the Group has no practical ability to make a unilateral
decision to sell the asset to a third party).
On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying
amount and the sum of the consideration received and receivable is recognised in profit or loss.On
derecognition of a debt instrument classified as at fair value through other comprehensive income, the
cumulative gain or loss previously accumulated in the investment revaluation reserve is reclassified to profit
or loss.
On derecognition of an investment in equity which was elected to be classified under fair value through other
comprehensive income, the cumulative gain or loss previously accumulated in the investment revaluation
reserve is not reclassified to profit or loss, but is transferred to retained earnings.
(ab)
Share-based payment transactions
Equity settled transactions:
The Group provides benefits to employees (including senior executives) of the Group in the form of share-based
payments, whereby employees render services in exchange for shares or rights over shares (equity-settled
transactions). There is currently one plan in place the Employee Share Option, which provides benefits to all
employees, excluding directors.
The cost of these equity-settled transactions with employees is measured by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value is determined by an external valuer
using a Black-Scholes option pricing model, further details of which are given in Note 20.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than
conditions linked to the price of the shares of New Murchison Gold Limited (market conditions) if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the
period in which the performance and/or service conditions are fulfilled, ending on the date on which the
relevant employees become fully entitled to the award (the vesting period).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date
reflects (i) the extent to which the vesting period has expired and (ii) the Group’s best estimate of the number
of equity instruments that will ultimately vest. No adjustment is made for the likelihood of market performance
conditions being met as the effect of these conditions is included in the determination of fair value at grant
date. The income statement charge or credit for a period represents the movement in cumulative expense
recognised as at the beginning and end of the period.
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any
expense not yet recognised for the award is recognised immediately. However, if a new award is substituted
for the cancelled award and designated as a replacement award on the date that it is granted, the cancelled
and new award are treated as if they were a modification of the original award, as described in the previous
paragraph.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of
earnings per share (see Note 8).
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
45
2.
SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
(ac)
Comparatives
Where necessary, comparatives have been reclassified and repositioned for consistency with current year
disclosures.
(ad)
Goodwill
Goodwill on acquisition is initially measured at cost being the excess of the cost of the business combination
over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities.
Following initial recognition, goodwill is measured at cost less any accumulated impairment losses.
Goodwill is not amortised. Goodwill is reviewed for impairment, annually or more frequently if events or
changes in circumstances indicated that the carrying value may be impaired.
As at the acquisition date, any goodwill acquired is allocated to each of the cash-generating units expected to
benefit from the combination’s synergies.
Impairment is determined by assessing the recoverable amount of the cash-generating unit to which the
goodwill relates. Where the recoverable amount of the cash-generating unit is less than the carrying amount,
an impairment loss is recognised.
Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed of,
the goodwill associated with the operation disposed of is included in the carrying amount of the operation when
determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is
measured on the basis of the relative values of the operation disposed of and the portion of the cash-generating
unit retained.
3.
SEGMENT INFORMATION
The Group operates in the mineral exploration industry in Australia. For management purposes, the Group is organised
into one main operating segment which involves the exploration of minerals in Australia. All of the Group’s activities are
interrelated and discrete financial information is reported to the Board (Chief Operating Decision Maker) as a single
segment. Accordingly, all significant operating decisions are based upon analysis of the Group as one segment. The
financial results from this segment are equivalent to the financial statements of the Group as a whole.
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
46
Consolidated
2024
$
2023
$
4.
REVENUE AND EXPENSES
(a)
Revenue
Interest income from non-related parties
126,340
24,026
(b)
Other Revenue
Tenement data sales
13,749
-
Administrative services
3,480
-
Net gain on disposal of fixed assets Note (4(f))
27,153
-
44,382
-
Total Revenues from continuing operations
170,722
24,026
(c)
Employee Benefits Expenses
Share-based payments expense
(503,267)
(151,602)
The share-based payments expense relates to the requirement to
recognise the cost of granting options to Directors and employees
under AIFRS over the option vesting period.
(d)
Exploration Expenditure Written-Off
Exploration expenditure written-off or impaired
(27,950)
(582,561)
(e)
Administration Expenses
Administrative costs
(1,737)
(2,272)
Office and miscellaneous
(181,370)
(249,621)
Professional fees
(344,516)
(99,070)
Regulatory fees
(157,231)
(88,262)
Shareholder and investor relations
(322,664)
(123,494)
Employee expenses
(1,202,512)
(663,464)
Net loss on disposal of fixed assets Note (4(f))
-
(15,739)
Decrease in market value of investments
-
(3)
Other operating expenses
(18,747)
(18,106)
(2,228,777)
(1,260,031)
(f)
Net Gain / (Loss) on Disposal of Fixed Assets
Proceeds from disposal of fixed assets
58,808
2,500
Carrying amounts of fixed assets sold
(31,655)
(18,239)
Net (loss)/gain on disposal
27,153
(15,739)
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
47
Consolidated
2024
$
2023
$
5.
INCOME TAX
(a)
Numerical reconciliation of income tax expense to prima
facie tax payable
(Loss)/Profit from ordinary activities before income tax
expense
(2,710,439)
(2,156,617)
Prima facie tax benefit on loss from ordinary activities at 25%
(2023 – 25%)
(677,610)
(539,154)
Tax effect of amounts which are not deductible (taxable) in
calculating taxable income:
Entertainment and other
4,073
1,209
Fines
-
111
Share-based payments
115,817
37,607
(557,720)
(500,227)
Movement in current year temporary differences
(1,847,380)
(847,474)
Tax effect of current year tax losses & non-recognition of
previously recognised deferred tax assets
2,405,100
1,347,701
Income tax expense/(benefit)
-
-
(b)
Unrecognised temporary differences Deferred Tax Assets
(25%) (2023 – 25%)
Depreciation
92,200
83,127
Prepayments
-
-
Capitalised tenement acquisition costs
-
-
Investments
24,989
24,989
Capital raising, formation and legal costs
330,839
244,367
Provisions for expenses
79,593
56,776
Carry forward revenue losses
19,113,066
16,704,827
Carry forward capital losses
256,697
259,814
19,897,384
17,373,900
Deferred Tax Liabilities (25%) (2022 – 25%)
Depreciation
-
-
Capitalised Tenement Cost
(2,269,629)
(617,594)
Unearned revenue
(1,212)
(920)
(2,270,841)
(618,514)
Net Deferred Tax Asset (Liability)
17,626,543
16,755,386
Potential future income tax benefits attributable to total tax losses amounting to approximately $19,113,066
(2023: $16,704,850) in revenue losses and $256,697 (2023: $259,814) in capital losses at 2024 corporate tax
rate of 25% (2023: 25%), have not been brought to account at 30 September 2024 because the directors do not
believe it is appropriate to regard realisation of the future income tax benefits as probable.
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
48
5.
INCOME TAX (continued)
The potential future tax benefit arising from accumulated tax losses in the Group have not been recognized in
2024 as an asset because recovery of the tax losses is not probable.
The potential future income tax benefit will be obtainable by the Group only if:
(a) the Group derives future assessable income of a nature and of an amount sufficient to enable the benefit of
the deductions for the loss to be realised;
(b) the Group continues to comply with the conditions for deductibility imposed by income tax law; and
(c) no changes in income tax legislation adversely affects the Group in realising the benefit of the deduction for
the loss.
Consolidated
2024
$
2023
$
6.
CASH FLOW INFORMATION
(a)
Reconciliation of net cash used in by operating activities to
operating (loss)/profit after income tax
Operating (loss)/profit after income tax
(2,710,439)
(2,156,617)
Non cash flows in operating loss
(Profit)/Loss on sale of non-current assets
(27,153)
-
Exploration costs written-off or impaired
27,950
582,561
Amortisation and depreciation
111,958
52,324
Share-based payments
503,267
151,602
Change in assets and liabilities
(Decrease)/increase in trade creditors and accruals
(1,082,700)
807,378
(Increase)/decrease in receivables
(83,503)
(159,922)
Increase/(decrease) in provisions
82,657
(43,205)
Net cash(outflow) from operating activities
(3,177,964)
(765,879)
(b)
Cash and cash equivalents represents:
Cash in bank and on hand
2,392,660
2,302,651
Short-term deposits
1,000,000
-
3,392,660
2,302,651
Non-cash investing and financing activities
Shares issued in relation to acquisition of Murchison Project
400,000
400,000
Repayment of Ioma secured loan facility (shares)
-
1,317,274
Interest paid in relation to Ioma secured loan facility (shares)
-
125,890
Options issued to Underwriter
-
394,048
Performance shares issued to KMP
40,000
-
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
49
Consolidated
2024
$
2023
$
7.
LEASE
(a)
Right-of-use asset
Opening balance
163,444
-
Additions
-
178,302
Remeasurement
1,559
-
Depreciation
(59,629)
(14,858)
Closing balance
105,374
163,444
(b)
Lease liabilities
Current
61,746
54,486
Non-current
50,519
110,876
(c)
Interest expense on lease liability
Interest expense
9,210
2,828
Total annual expenses for lease
9,210
2,828
The Company entered into a lease agreement on 27 June 2023 in relation to
office premises in West Perth. The discount rate used in calculating the
present value of the Right-of-Use Asset is 6.50% representing the
incremental cost of borrowing.
8.
EARNINGS PER SHARE
(a)
Basic (loss)/earnings per share (cents per share)
(0.05)
(0.08)
(b)
Diluted (loss)/earnings per share (cents per share)
(0.05)
(0.08)
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential
ordinary shares and the weighted average number of shares assumed to have been issued for no consideration
in relation to dilutive potential ordinary shares.
Consolidated
2024
$
2023
$
(c)
Net (loss)/profit attributable to ordinary shareholders
(2,710,439)
(2,156,617)
2024
Number
2023
Number
(d)
Weighted average number of ordinary shares outstanding during the
year used in the calculation:
- basic earnings per share
6,080,461,906
2,798,976,211
- diluted earnings per share
6,080,461,906
2,798,976,211
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
50
Consolidated
2024
$
2023
$
9.
(a) TRADE AND OTHER RECEIVABLES (CURRENT)
Other receivables
356,427
210,225
Accrued income
4,846
3,678
361,273
213,903
The were no amounts receivable from directors and director
related entities in 2024 and 2023.
(b) TRADE AND OTHER RECEIVABLES (NON CURRENT)
Security deposits/bonds
38,857
38,857
The Group believes that all outstanding receivables can be
recovered when due and there are no past receivables due as at
the balance sheet date nor impaired.
10.
OTHER FINANCIAL ASSETS (CURRENT)
Listed shares held for trading at fair value
45
45
Consolidated
2024
$
2023
$
11.
PROPERTY, PLANT AND EQUIPMENT
Plant and equipment, at cost
57,574
16,399
Less: accumulated depreciation
(7,606)
(16,399)
49,968
-
Motor vehicles, at cost
-
83,793
Less: accumulated depreciation
-
(49,077)
-
34,716
Office equipment, at cost
176,527
225,899
Less: accumulated depreciation
(50,692)
(65,659)
125,835
160,240
Plant and equipment (NT), at cost
-
13,376
Less: accumulated depreciation
-
(13,376)
-
-
Total property, plant and equipment
175,803
194,956
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
51
Consolidated
2024
$
2023
$
11.
PROPERTY, PLANT AND EQUIPMENT (continued)
Reconciliation of the carrying amounts of each class of property, plant
and equipment at the beginning and end of the current financial year are
set out below:
Plant and equipment
Carrying amount at 1 October
-
16,399
Additions
58,771
-
Disposal
(1,197)
-
Impairment loss
-
(5,119)
Depreciation
(7,606)
(11,280)
Carrying amount at 30 September
49,968
-
Motor vehicles
Carrying amount at 1 October
34,716
50,640
Disposals
(30,458)
-
Depreciation
(4,258)
(15,924)
Carrying amount at 30 September
-
34,716
Office equipment
Carrying amount at 1 October
160,240
550
Additions
6,059
169,881
Depreciation
(40,464)
(10,191)
Carrying amount at 30 September
125,835
160,240
Plant and equipment (NT)
Carrying amount at 1 October
-
13,376
Depreciation
-
(13,376)
Carrying amount at 30 September
-
-
Total carrying amount at 30 September
175,803
194,956
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
52
Consolidated
2024
$
2023
$
12.
PARENT ENTITY DISCLOSURES
Statement of financial position
Assets
Current assets
3,491,223
2,448,317
Non-current assets
229,701
251,028
Total assets
3,720,924
2,699,345
Liabilities
Current liabilities
911,939
1,837,711
Non-current liabilities
112,265
165,362
Total liabilities
1,024,204
2,003,073
Net Assets
2,696,720
696,272
Equity
Contributed equity
88,536,963
77,364,582
Reserves
9,524,008
9,291,242
Accumulated losses
(95,364,251)
(85,959,552)
Total equity
2,696,720
696,272
Statement of profit or loss and other comprehensive income
Net (loss)/profit from continuing operations for the year
(9,404,699)
(6,418,932)
Total comprehensive (loss)/income for the year
(9,404,699)
(6,418,932)
Other financial assets (non-current)
Investment in Subsidiary
Red Dragon Mines Pty Ltd
1,380,392
1,380,392
Provision for write-down of investment
(1,380,392)
(1,380,392)
-
-
13.
EXPLORATION EXPENDITURE (NON-CURRENT)
Exploration and evaluation
Balance at 1 October 2023
4,196,689
-
Expenditure incurred during the year
6,509,362
4,779,250*
Expenditure provided or written-off during the year (Note 4(d))
(27,950)
(582,561)
Balance at 30 September 2024
10,678,101
4,196,689
*Includes expenditure incurred and amount capitalized for acquisition of Murchison Project tenements of $1.4
million
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
53
Consolidated
2024
$
2023
$
14.
TRADE AND OTHER PAYABLES (CURRENT)
Trade payables and accruals
699,539
1,782,2401
1.Includes $300,000 deferred cash consideration and $400,000 deferred
shares consideration for acquisition of Murchinson Projects tenements.
Also refer Note 13
Trade payables are non-interest bearing and are normally settled on 30 - 60
day terms.
15.
PROVISONS
CURRENT
Employee entitlements
279,760
197,103
NON-CURRENT
Employee entitlements
-
-
16.
BORROWINGS (NON-CURRENT)
Borrowings - secured
-
-
Balance at beginning of year
-
4,317,274
Interest accrued during the year
-
122,740
Repayments or interest paid
-
(2,996,850)
Repayments and interest paid (shares)
-
(1,443,164)
Balance at end of year
-
-
Borrowings - unsecured
-
-
Balance at beginning of year
-
-
Drawdowns during the year
-
500,000
Interest accrued during the year
-
8,557
Repayments or interest paid
-
(508,557)
Balance at end of year
-
-
In relation to the secured and unsecured loan facilities between the Company and Ioma Pty Ltd as trustee
for the Gemini Trust (Ioma) (an entity associated with director Mr PG Crabb) for a total of $4,500,000, the
Company repaid the secured and unsecured loan facility in March 2023 (a combination in shares and in cash)
including accrued interest for the year of $131,297.
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
54
17.
CONTRIBUTED EQUITY AND RESERVES
Number of Shares
Consolidated
2024
2023
2024
$
2023
$
(a) Issued and paid up capital
Ordinary shares
7,146,326,298
4,781,425,668
88,536,963
77,364,582
2024
Number
2024
$
2023
Number
2023
$
(b) Movement in ordinary shares on issue
At beginning of reporting period
4,781,425,668
77,364,582
984,231,283
66,394,449
Entitlement offer @ $0.0030
-
-
2,952,693,849
8,858,082
Placement @ $0.0040
-
-
500,000,000
2,000,000
Share Purchase Plan @ $0.0040
-
-
250,000,000
1,000,000
Conversion of options @ $0.0060
9,027,604
54,166
27,833,869
167,003
Acquisition of Murchison Project
66,666,667
400,000
66,666,667
400,000
Placement @ $0.0060
833,333,333
5,000,000
-
-
Placement @ $0.0045
1,335,158,740
6,008,214
-
-
Performance shares issued to KMP
5,714,286
40,000
-
-
Exercise of performance rights – KMP
115,000,000
230,500
-
-
Share issue costs
-
(560,499)
-
(1,454,952)
At end of reporting period
7,146,326,298
88,536,963
4,781,425,668
77,364,582
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
55
17.
CONTRIBUTED EQUITY AND RESERVES (continued)
(c) Movement in options on issue
The below tables summarise the movement in options on issue for the years ended 30 September 2024 and 30 September 2023.
30 September 2024
Balance at
1 October 2023
Options Issued
Options
Exercised
Options
Expired
Balance at
30 September 2024
Unquoted options exercisable at $0.018 each on or before 8 April 2025
28,750,000
-
-
-
28,750,000
Unquoted options exercisable at $0.037 each on or before 1 March 2026
12,000,000
-
-
-
12,000,000
Unquoted options exercisable at $0.0045 each on or before 28 February 2026
30,000,000
-
-
-
30,000,000
Unquoted options exercisable at $0.02 each on or before 10 December 2024
5,000,000
-
-
-
5,000,000
Unquoted options exercisable at $0.006 each on or before 9 March 2025
724,727,141
-
(3,485,938)
-
721,241,203
Unquoted options exercisable at $0.006 each on or before 27 March 2025
723,785,680
-
(5,541,666)
-
718,244,014
Unquoted options exercisable at $0.006 each on or before 24 April 2025
46,000,000
-
-
(15,000,000)
31,000,000
Unquoted options exercisable at $0.006 each on or before 27 March 2028
64,458,205
-
-
-
64,458,205
Unquoted options exercisable at $0.009 each on or before 10 December 2025
-
63,000,000
-
(8,000,000)
55,000,000
Unquoted options exercisable at $0.0087 each on or before 28 February 2027
-
40,000,000
-
-
40,000,000
Total
1,634,721,026
103,000,000
(9,027,604)
(23,000,000)
1,705,693,422
30 September 2023
Balance at
1 October 2022
Options Issued
Options
Exercised
Options
Expired
Balance at
30 September 2023
Unquoted options exercisable at $0.015 each on or before 8 April 2023
10,000,000
-
-
(10,000,000)
-
Unquoted options exercisable at $0.018 each on or before 8 April 2025
28,750,000
-
-
-
28,750,000
Unquoted options exercisable at $0.025 each on or before 16 July 2023
5,000,000
-
-
(5,000,000)
-
Unquoted options exercisable at $0.02 each on or before 18 August 2023
1,900,000
-
-
(1,900,000)
-
Unquoted options exercisable at $0.037 each on or before 1 March 2026
12,000,000
-
-
-
12,000,000
Unquoted options exercisable at $0.0045 each on or before 28 February 2026
-
30,000,000
-
-
30,000,000
Unquoted options exercisable at $0.02 each on or before 10 December 2024
5,000,000
-
-
-
5,000,000
Unquoted options exercisable at $0.006 each on or before 9 March 2025
-
738,173,345
(13,446,204)
-
724,727,141
Unquoted options exercisable at $0.006 each on or before 27 March 2025
-
738,173,345
(14,387,665)
-
723,785,680
Unquoted options exercisable at $0.006 each on or before 24 April 2025
-
46,000,000
-
-
46,000,000
Unquoted options exercisable at $0.006 each on or before 27 March 2028
-
64,458,205
-
-
64,458,205
Total
62,650,000
1,616,804,895
(27,833,869)
(16,900,000)
1,634,721,026
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
56
Consolidated
2024
$
Consolidated
2023
$
17.
CONTRIBUTED EQUITY AND RESERVES (continued)
(d) Reserves
Share-based payments reserve
Balance at beginning of year
9,291,242
8,745,592
Share-based payments expense – Directors
121,616
115,684
Share-based payments expense – KMP and
employees
341,651
35,918
Fair value of performance rights converted to
ordinary shares
(230,500)
-
Options issued to Underwriter (capital raising costs)
-
394,048
Balance at end of year
9,524,009
9,291,242
Nature and purpose of reserves
Share-based payments reserve
The share-based payments reserve is used to recognise the fair value of options and performance rights issued.
When the securities are exercised the amount in the share-based payment reserve is transferred to share
capital.
18.
ACCUMULATED LOSSES
Balance at the beginning of the year
(81,689,984)
(79,533,367)
Net (loss)/profit attributable to members of New Murchison Gold
Limited
(2,710,439)
(2,156,617)
Balance at the end of the financial year
(84,400,423)
(81,689,984)
19.
COMMITMENTS AND CONTINGENCIES
(i)
Exploration commitments
Within one year
963,641
832,929
Later than one year but not later than five years
1,349,214
1,547,502
Later than five years
785,095
813,795
3,097,950
3,194,226
In order to maintain current rights of tenure for exploration tenements, the Group is required to perform
minimum exploration work to meet the minimum expenditure requirements specified by various State
Governments. These obligations are subject to renegotiation when an application for mining lease is
made and at other times. These obligations are not provided for in the Consolidated financial report.
If the Group decides to relinquish certain tenements and / or does not meet these obligations, assets
recognised in the Consolidated Statement of Financial Position may require review to determine the
appropriateness of the carrying values. The sole transfer or farm out of exploration rights to third parties
will reduce or extinguish these obligations.
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
57
19.
COMMITMENTS AND CONTINGENCIES (continued)
(ii)
Bank guarantees
At 30 September 2024 the Group has outstanding $38,857 (2023: $38,857) as a current
guarantee provided by the bank for corporate office lease.
(iii)
Native Title
At the date of this report, there are no claims lodged in relation to tenements held by the Group.
(iv)
Red Bore Joint Venture Royalty
On 13 December 2023, Sandfire Resources Limited (“Sandfire”) resigned as the manager of the
Sandfire JV effective from 20 December 2023. Sandfire also transferred its 85% interest in the
Red Bore JV to the Company.
The Company’s is now the manager and has a 100% interest in Red Bore. Mr Richmond retains
a 1.25% net smelter royalty over minerals produced from Red Bore.
(v)
Crown Prince & Lydia Gold Projects Royalty
In 2021 the Company executed a Native Title & Heritage Agreement between the Company’s
subsidiary, Zeus Mining Pty Ltd (Zeus) and the Wajarri Yamaji Aboriginal Corporation (WYAC) in
relation to two mining leases for the Crown Prince (M51/886) and the Lydia (M51/889) Gold
Projects. The WYAC have been granted up to 0.75% royalty over minerals produced by Zeus.
(vi)
Crown Prince , Lydia and Other Gold Projects Royalty
On 14 August 2024 following several transactions and operations under the Mining Act, including
joint ventures, sales, plaints, amalgamations, conversions and expiries, the Company’s
subsidiary, Zeus Mining Pty Ltd (Zeus) and Chin Nominees Pty Ltd (Chin) agreed to terminate the
historical arrangements and enter into new royalty documents to set out the areas, terms and
conditions on which these royalties will be payable moving forward. The new royalty deeds
confirm that Chin has a 2% net smelter royalty over part of the Crown Prince M51/886 and over
P51/3009; a 1% net smelter royalty over the Lydia project M51/889; and a 1% net smelter royalty
over areas within E51/1661 and E51/1791.
20.
SHARE-BASED PAYMENTS
(a) Employee Share Option Plan
Options are granted under the Company Employee Share Option Plan (ESOP) which was approved by
the shareholders on 24 February 2023. The ESOP is available to any person who is a director, or an
employee (whether full-time or part-time) of the Company or of an associated body corporate of the
Company (“Eligible Person”). Subject to the Rules set out in ESOP and the Listing Rules, the
Company (acting through the Board) may offer options to any Eligible Person at such time and on
such terms as the Board considers appropriate.
There are no voting or dividend rights attached to the options. There are no voting rights attached to
the unissued ordinary shares. Voting rights will be attached to the unissued ordinary shares when the
options have been exercised. The expense recognised in the income statement in relation to share-
based payments is disclosed in Note 4.
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
58
20.
SHARE-BASED PAYMENTS (continued)
(b) Options
The following table illustrates the number and weighted average prices (WAEP) of and the movements
in share options issued during the year in respect of share-based payments.
Number
2024
WAEP
2024
$
Number
2023
WAEP
2023
$
Outstanding at the beginning of the year
1,634,721,026
0.0065
62,650,000
0.0220
Granted during the year
103,000,000
0.0089
1,616,804,895
0.0060
Lapsed during the year
(23,000,000)
(0.0070)
(16,900,000)
(0.0190)
Exercised during the year
(9,027,604)
(0.0060)
(27,833,869)
(0.0060)
Outstanding at the end of the year
1,705,693,422
0.0066
1,634,721,026
0.0065
Exercisable at the end of the year
1,686,423,947
0.0066
1,570,262,821
0.0065
The outstanding balance as at 30 September 2024 is represented by:
Date options issued
Expiry date
Exercise price of options
Number of options
9 April 2020
8 April 2025
$0.018
28,750,000
10 December 2021
10 December 2024
$0.020
5,000,000
9 March 2023
9 March 2025
$0.006
721,241,203
27 March 2023
27 March 2025
$0.006
718,244,014
24 April 2023
24 April 2025
$0.006
31,000,000
2 March 2021
1 March 2026
$0.037
12,000,000
28 February 2023
28 February 2026
$0.0045
30,000,000
27 March 2023
27 March 2028
$0.006
64,458,205
10 December 2023
10 December 2025
$0.009
55,000,000
28 February 2024
28 February 2027
$0.0087
40,000,000
Please refer to Shares Options and Performance Rights table in the Directors’ Report for movements since
year end.
(a) Weighted average remaining contractual life
The weighted average remaining contractual life for the share options outstanding as at 30 September
2024 is 0.67 years (2023 – 1.61 years).
(b) Range of exercise price
The range of exercise prices for options outstanding at the end of the year was $0.0045 to $0.037
(2023: $0.006 to $0.037).
(c) Weighted average fair value
The weighted average fair value of options granted during the year was $0.0026 (2023 - $0.006)
(d) Options pricing model
The fair value of the equity-settled share options granted under the plan is estimated as at the date of
grant using the Black-Scholes Option Pricing Model taking into account the terms and conditions upon
which the options were granted.
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
59
20.
SHARE-BASED PAYMENTS (continued)
(b) Options (continued)
The following table lists the inputs to the model used for options issued during the year ended 30 September
2024:
Model Inputs
Employee Options
Director Options
Methodology
Black Scholes
Black Scholes
Number of Options
63,000,000
40,000,000
Grant Date
11/12/2023
28/2/2024
Share price at grant date
$0.006
$0.006
Option exercise price
$0.009
$0.0087
Expiry date
10/12/2025
28/2/27
Expected life of the option (years)
2
3
Expected volatility (%)
90%
90%
Risk-free interest rate (%)
3.951%
3.664%
The following tables lists the inputs to the model used for options issued during the year ended 30 September
2023:
Model Inputs
Director Options
Underwriter Options
Employee Options
Methodology
Black Scholes
Black Scholes
Black Scholes
Number of Options
30,000,000
738,173,462
46,000,000
Grant Date
24/02/2023
27/03/2023
14/04/2023
Share price at grant date
$0.0030
$0.0025
$0.003
Option exercise price
$0.0045
$0.0060
$0.0060
Expiry date
28/02/2026
27/03/2025
27/04/2025
Expected life of the option (years)
3
2
2
Expected volatility
75%
80%
80%
Risk-free interest rate
3.498%
2.757%
2.907%
CEO Performance Options
Model Inputs
Tranche 1
Tranche 2
Tranche 3
Tranche 4
Methodology
Monte Carlo
Monte Carlo
Black Scholes
Black Scholes
Iterations
100,000
100,000
-
-
Number of Options
12,967,201
12,967,201
19,254,328
19,269,475
Grant Date
27/03/2023
27/03/2023
27/03/2023
27/03/2023
Share price at grant date (cents)
$0.0025
$0.0025
$0.0025
$0.0025
Option exercise price
$0.0060
$0.0060
$0.0060
$0.0060
Expiry date
27/03/2028
27/03/2028
27/03/2028
27/03/2028
Expected life of the option (years)
5
5
5
5
Dividend yield
Nil
Nil
Nil
Nil
Expected volatility
80%
80%
80%
80%
Risk-free interest rate
3.145%
3.145%
3.145%
3.145%
Fair value per option
$0.0013
$0.0002
$0.0012
$0.0012
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
60
20.
SHARE-BASED PAYMENTS (continued)
(b) Options (continued)
Details of CEO performance options including vesting conditions are explained in the table below:
Security
Number
Details
Performance Options Vesting Condition
Tranche 1 CEO
Options
12,967,201
Unlisted Performance
Options issued for nil
consideration each
exercisable into one
ordinary share at any time
up to and including the
expiry date
Exercise of the Tranche 1 Performance Rights
Tranche 2 CEO
Options
12,967,201
Exercise of the Tranche 2 Performance Rights
Tranche 3 CEO
Options
19,254,328
Exercise of the Tranche 3 Performance Rights
Tranche 4 CEO
Options
19,269,475
Exercise of the Tranche 4 Performance Rights
(c) Performance Rights
There were no performance rights issued during the year end 30 September 2024. Valuation model inputs and
vesting conditions for the performance rights issued during the year end 30 September 2023 are detailed in the
below tables:
CEO Performance Rights
Model Inputs
Tranche 1
Tranche 2
Tranche 3
Tranche 4
Methodology
Monte Carlo
Monte Carlo
Black Scholes
Black Scholes
Iterations
100,000
100,000
-
-
Number of Rights
33,000,000
33,000,000
49,000,000
49,038,547
Grant Date
27/03/2023
27/03/2023
27/03/2023
27/03/2023
Share price at grant date
$0.0025
$0.0025
$0.0025
$0.0025
Right exercise price
Nil
Nil
Nil
Nil
Expiry date
27/03/2028
27/03/2028
27/03/2028
27/03/2028
Expected life of the right (years)
5
5
5
5
Dividend yield
Nil
Nil
Nil
Nil
Expected volatility
80%
80%
80%
80%
Risk-free interest rate
3.145%
3.145%
3.145%
3.145%
Fair value per right
$0.0021
$0.0012
$0.0025
$0.0025
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
61
20.
SHARE-BASED PAYMENTS (continued)
(c) Performance Rights
Details of CEO performance rights including vesting conditions are explained in the table below:
Security
Number
Details
Performance Rights Vesting Condition
Tranche 1 CEO
Performance Rights
33,000,000
Unlisted Performance
Rights issued for nil
consideration each
exercisable into one
ordinary share at any
time up to and including
the expiry date
The Volume Weighted Average Price (“VWAP”) of the
Company’s shares being for 20 consecutive trading
days at least the higher of:
▪$0.007; and
▪1.5 times the VWAP of the Company’s shares for
the 5 consecutive trading days following the
commencement date
Tranche 2 CEO
Performance Rights
33,000,000
The price of the Company’s shares outperforming the
Australian Securities Exchange (“ASX”) Small
Ordinaries Resources Index by at least 30% in the 12-
month period from the grant date
Tranche 3 CEO
Performance Rights
49,000,000
The Company announcing on ASX a JORC Mineral
Resource of at least 200,000 ounces of gold (in
aggregate) at the Company’s project(s) in the
Abbotts Greenstone Belt
Tranche 4 CEO
Performance Rights
49,038,547
The receipt of approval from DMIRS in relation to a
mining operation of the Crown Prince gold resource
delineated by the group on its Abbotts Greenstone
Belt tenements including the processing of the ore
mined by toll treatment or other commercial
arrangement
Consolidated
2024
$
2023
$
21.
REMUNERATION OF AUDITORS
The auditor of New Murchison Gold Limited is Stantons for:
•
An audit or review of the financial report of the consolidated entity
54,189
52,862
•
Other non-audit related services
2,400
2,100
56,589
54,962
22.
RELATED PARTY DISCLOSURES
(a) Key management personnel compensation
The aggregate compensation paid to directors and other KMP of the Group and recognised as an expense
during the reporting period is set out below:
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
62
22.
RELATED PARTY DISCLOSURES (continued)
Consolidated
2024
$
2023
$
Short-term employee benefits
706,015
465,835
Post-employee benefits
75,612
48,357
Other long-term benefits
17,933
3,333
Share-based payments
355,754
115,684
1,155,314
633,209
(b) Loans with key management personnel and their related entities
There were no loans to key management personnel and their related entities during the year and the
prior year.
(c) Subsidiaries
The Group consists of the Parent and its wholly owned controlled entities set out in Notes 12 and 23.
Transactions between the Parent and its wholly owned controlled entities during the year ended 30
September 2024 consists of loans advanced by the Parent totalling $6,802,244 (2023: $4,107,877). The
loans outstanding at 30 September 2024 total $23,845,624 (2023: $17,043,380).
The loans provided to the wholly owned subsidiaries are unsecured, interest free and have no fixed term
of repayment. There were no amounts repaid during the year (2023: $Nil).
23.
CONTROLLED ENTITIES
Percentage Interest Held
Carrying amount of Parent
Entity’s Investment
Name
Country of
Incorporation
2024
%
2023
%
2024
$
2023
$
Red Dragon Mines Pty Ltd
Australia
100
100
-
-
Zeus Mining Pty Ltd
Australia
100
100
-
-
Old Find Pty Ltd
Australia
100
100
-
-
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
63
24.
INTEREST IN JOINT VENTURES
The Company has interests in several joint ventures. The Group also has a number of other interests in joint
ventures to explore for uranium and other minerals. The Group’s share of expenditure in respect of these
exploration and evaluation activities is either expensed or capitalised depending on the stage of
development and no revenue is generated.
The Group’s share of capitalised expenditure in respect to these joint venture activities is as follows:
Joint Venture
Principal
Activities
Percentage
Interest
2024
Percentage
Interest
2023
Expenditure
Capitalised
2024
$
Expenditure
Capitalised
2023
$
Red Bore JV 1
Base metals
100%
15% fci
30,493
-
Keller Creek JV
Base metals
20% fci
20% fci
-
-
Munro Bore East JV
Gold
51%
51%
162,854
-
Tank Well Project JV
Gold
90%
90%
203,632
-
Tuckanarra Project JV
Gold
51%
51%
47,817
-
1.
On 13 December 2023, Sandfire Resources Limited (“Sandfire”) resigned as the manager of the Sandfire JV effective from 20 December
2023. Sandfire has also transferred its 85% interest in the Red Bore JV to the Company
25.
FINANCIAL RISK MANAGEMENT
The Group’s principal financial instruments comprise of cash, short term deposits, trade and other receivables,
lease liabilities and trade and other payables. It is, and has been throughout the period under review, the
Group’s policy that no trading in financial instruments shall be undertaken, except for other financial assets
which have been sold for working capital purposes.
The main risks arising from the Group’s financial instruments are interest rate risk, liquidity risk, equity price
risk and credit risk. The Group uses different methods to measure and manage different type of risks to which
it is exposed. These include assessments of market forecasts for interest rates, only dealing with recognised,
creditworthy, third parties to manage credit risk, and monitoring liquidity risk through the development of future
rolling cash flow forecasts.
The Board reviews and agrees procedures for managing each of these risks as summarised below. Primary
responsibility for the identification and control of financial risk rests with management under the procedures
approved by the Board. The Board reviews management’s processes for managing each of the risks identified
below including future cash flow forecast projections.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the
basis of measurement and the basis on which income and expenses are recognised, in respect of each class
of financial asset, financial liability and equity instrument are disclosed in Note 2 to the Consolidated financial
statements.
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
64
25.
FINANCIAL RISK MANAGEMENT (continued)
Set out below are details of the Group’s financial assets and liabilities at the end of the reporting period:
2024
$
2023
$
Financial assets
Cash and cash equivalents
3,392,660
2,302,651
Trade and other receivables
400,130
252,760
Other financial assets
45
45
3,792,835
2,555,456
Financial liabilities
Trade and other payables
699,539
1,782,240
Lease liabilities
112,265
165,362
811,804
1,947,602
Net financial assets
2,981,031
607,854
(a) Interest Rate Risk
The Group’s exposure to market interest rates relates primarily to movements in market interest rates on short
term deposits.
A change in the interest rates of +/- 1% (2023: +/- 1%), representing management’s assessment of the
reasonably possible change in short-term cash deposit interest rates, would have a favourable/adverse effect
on loss before tax of $34,315 (2023: $23,414), assuming that all other factors remain constant.
(b) Credit Risk
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial
loss to the Group. The Group has adopted the policy of only dealing with credit worthy counterparties and
obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial
loss from defaults. Risk is also minimised by investing surplus funds with financial institutions that maintain a
high credit rating.
The Group does not have any significant credit risk exposure to any single counterparty or any group of
counterparties having similar characteristics. The carrying amount of financial assets recorded in the financial
statements, net of any provisions for losses, represents the Group’s maximum exposure to credit risk. The
Group believes that all outstanding receivables are recoverable and there are no past due receivables as at
balance date.
(c) Net Fair Value of Financial Assets and Liabilities
The net fair value of the financial assets and financial liabilities approximates their carrying value, except for the
fair value of equity investments traded on organised markets which have been valued by reference to the market
prices prevailing at balance date for those equity investments.
(d) Liquidity Risk
The Group manages its liquidity risk by monitoring its cash reserves and forecast spending. Management is
cognisant of the future demands for liquid finance requirements to finance the Group’s current and future
operations.
The table below summarises the maturity profile of the Company’s financial liabilities based on contractual
undiscounted payments:
NEW MURCHISON GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
65
25.
FINANCIAL RISK MANAGEMENT (continued)
Consolidated
30 September 2024
On Demand
$
Less than 12
months $
1 to 5 years $
Total
$
Lease liabilities
-
61,746
50,519
112,265
Trade and other payables
699,539
-
-
699,539
Totals
699,539
61,746
50,519
811,804
Consolidated
30 September 2023
On Demand
$
Less than 12
months $
1 to 5 years $
Total
$
Lease liabilities
-
54,486
110,876
165,362
Trade and other payables
1,782,240
-
-
1,782,240
Totals
1,782,240
54,486
110,876
1,947,602
(d)_Liquidity Risk
The Group believes that all outstanding payables can be paid when due and there are no past due payables as
at the balance date.
(e) Commodity Price Risk
At the 30 September 2024, the Group does not have any financial instruments subject to commodity price risk.
26.
SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE
Since the end of the financial year, the Directors are not aware of matter or circumstance not otherwise
dealt with in this report or the financial statements, that has significantly or may significantly affect the
operations of the Group, the results of those operations or the state of affairs of the Group in subsequent
years with the exception of the following, the financial effects of which have not been provided for in the 30
September 2024 Consolidated financial report:
Change of Company Name
On 13 November 2024 the Company changed its name from Ora Gold Limited to ‘New Murchison Gold
Limited’.
Conversion of March 2025 Options
Since the end of the financial year:
•
204,109,140 unquoted options exercisable at $0.006 each expiring on the 9 March 2025 were
exercised;
•
61,100,110 unquoted options exercisable at $0.006 each expiring on the 27 March 2025 were
exercised.
Expiry of Broker Options
Since the end of the year 5,000,000 options exercisable at $0.002 each expiring on the 10 December 2024.
27.
CONTINGENT LIABILITIES
The consolidated entity is not aware of any contingent liabilities which existed as at the end of the financial
year or have arisen as at the date of this report, other than as disclosed in Note 19.
NEW MURCHISON GOLD LIMITED
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
66
The consolidated entity disclosure statement has been prepared in accordance with section 295(3A)(a)
of the Corporations Act 2001.
Company Name
Type of Entity
Place of
business/
Country of
Incorporation
Percentage
Interest
Held
Tax
Residency
Parent Entity
New Murchison Gold Ltd (formerly
Ora Gold Limited)
Body corporate
Australia
100%
Australia
Subsidiaries
Red Dragon Mines Pty Ltd
Body corporate
Australia
100%
Australia
Zeus Mining Pty Ltd
Body corporate
Australia
100%
Australia
Old Find Pty Ltd
Body corporate
Australia
100%
Australia
NEW MURCHISON GOLD LIMITED
DIRECTOR’S DECLARATION
67
In accordance with a resolution of the directors of New Murchison Gold Limited (formerly Ora Gold Limited) I state
that:
In the opinion of the directors:
(a)
the Consolidated financial statements and notes and the additional disclosures included in the
Directors’ report designated as audited, of the Consolidated Entity are in accordance with the
Corporations Act 2001, including:
(i)
giving a true and fair view of the Consolidated Entity’s financial position as at 30 September 2024
and of its performance for the year ended on that date; and
(ii) complying with Accounting Standards and the Corporations Regulations 2001; and
(b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable;
(c)
the financial report also complies with International Financial Reporting Standards as described in
note 2(b);
(d)
the information disclosed in the Consolidated Entity Disclosure Statement is true and correct.
This declaration has been made after receiving the declarations required to be made to the directors in
accordance with section 295A of the Corporations Act 2001 for the financial year ended 30 September 2024.
On behalf of the Board
FRANK DEMARTE
Executive Director
Perth, Western Australia
Dated in Perth this 11 December 2024
Liability limited by a scheme approved under Professional Standards Legislation
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
Stantons Is a member of the Russell
Bedford International network of firms
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
NEW MURCHISON GOLD LIMITED
Report on the Audit of the Financial Report
Our Opinion
We have audited the financial report of New Murchison Gold Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 September 2024, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the
consolidated financial statements, material accounting policies information, the consolidated entity disclosure
statement and the directors' declaration.
In our opinion: the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
(i)
giving a true and fair view of the Group's financial position as at 30 September 2024 and of
its financial performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards
Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of
the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the
Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given
to the directors of the Company, would be in the same terms if given to the directors as at the time of this
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
68
Material Uncertainty Relating to Going Concern
We draw attention to Note 2(a) to the financial statements, which indicates that the consolidated financial
statements have been prepared on a going concern basis. As at 30 September 2024 the Group had a cash
and cash equivalents of $3,392,660 (2023: $2,302,651), cash outflow from investing activities of $6,170,041
(2023: $3,671,324), cash outflow from operating activities of $3,177,964 (2023: $765,879), and reported a
loss for the year of $2,710,439 (2023: $2,156,617) and had a net working capital of $2,712,933 (2023:
$482,770). As state in Note 2(a), these events or conditions, along with the other matters, as set forth in Note
2(a), indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue
as a going concern.
Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report of the current year. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Key Audit Matters
How the matter was addressed in the audit
Carrying value of the Exploration and
evaluation expenditure
As at 30 September 2024, Deferred exploration
and evaluation expenditure totalled $10,678,101
(refer to Note 13 of the financial report).
The carrying value of these assets is a key audit
matter due to:
•
The significance of their amount as they
represent the largest assets and constitute
72% of the total assets as at 30 September
2024.
•
The necessity to assess management’s
application of the requirements of the
accounting standard Exploration for and
Evaluation of Mineral Resources (“AASB 6”),
in light of any indicators of impairment that
may be present.
•
The assessment of management's significant
judgements
concerning
the
capitalised
exploration and evaluation expenditure.
Inter alia, our audit procedures included the
following:
i.
Assessing the Group’s right to tenure over
exploration assets by corroborating the
ownership of the relevant licences for
mineral resources to government registries
and relevant third-party documentation.
ii.
Reviewing the directors’ assessment of the
carrying value of the capitalised exploration
and evaluation costs, ensuring the veracity
of the data presented and assessing
management’s consideration of potential
impairment indicators in line with the
requirements of AASB 6.
iii.
Evaluating
Group’s
documents
for
consistency
with
the
intentions
for
continuing
exploration
and
evaluation
activities
in
areas
of
interest
and
corroborated
in
discussions
with
management.
The
documents
we
evaluated included:
▪
Minutes of meetings of the Board and
management;
▪
Announcements
made
by
the
Company to the Australian Securities
Exchange; and
▪
Cash flow forecasts.
iv.
Considering the requirements of accounting
standard AASB 6 and reviewing the
financial statements to ensure appropriate
disclosures are made.
69
Valuation of Share-based payments
As disclosed in Note 4c, Note 17 (d) and Note 20
of the financial report, the Company granted
options to directors, employees, CEO and the
underwriter. In addition, performance rights were
issued to the CEO, Directors, and employees of the
Company.
Share-based
payments
expense
recognized for the year ended 30 September 2024
amounted to $503,267
The Company accounted for these options and
performance
rights
in
accordance
with
its
accounting policy and the accounting standard
AASB 2 - Share-based Payment.
Measurement of share-based payments was a key
audit matter due to estimates used in determining
the fair value of the equity instruments granted, the
grant date, vesting conditions and vesting periods.
In assessing the valuation of share-based
payment, our audit procedures included, among
others:
i. Obtaining an understanding of the underlying
transactions, reviewing agreements, minutes
of
the
Board
meeting
and
ASX
announcements.
ii. Verifying the terms and conditions of the share
based payments including the vesting period
and other key assumptions used in valuing
these shares based payments;
iii. Assessing the accounting treatment and its
application in accordance with AASB 2; and
iv. Assessing the adequacy of disclosure made
by the Group in the financial report.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group's annual report for the year ended 30 September 2024 but does not include the financial
report and our auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we
have performed, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of:
a)
the financial report that gives a true and fair view in accordance with Australian Accounting Standards
and the Corporations Act 2001 (other than the consolidated entity disclosure statement); and
b)
the consolidated entity disclosure statement that is true and correct with the Corporations Act 2001,
and for such internal control as the directors determine is necessary to enable the preparation of :
i.
the financial report that gives a true and fair view and is free from material misstatement, whether
due to fraud or error; and
ii.
the consolidated entity disclosure statement that is true and correct and is free of misstatement
whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
70
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial report.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of material
misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the entity's preparation of the financial report that gives a true
and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity's internal control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial
report.
We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Group to cease to continue as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that achieves
fair presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in Internal control that we identify
during our audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit
engagements. We also provide the Directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
71
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 17 to 25 of the directors’ report for the year
ended 30 September 2024. In our opinion, the Remuneration Report of New Murchison Gold Limited for the
year ended 30 September 2024 complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corpons Act 2001. Our responsibility is to express an opinion
on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Samir Tirodkar
Director
West Perth, Western Australia
11 December 2024
72
Liability limited by a scheme approved under Professional Standards Legislation
PO Box 1908
West Perth WA 6872
Australia
40, Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
Stantons Is a member of the Russell
Bedford International network of firms
11 December 2024
Board of Directors
New Murchison Gold Limited
Level 2, 5 Ord Street
West Perth WA 6005
Dear Directors
RE:
NEW MURCHISON GOLD LIMITED
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following
declaration of independence to the directors of New Murchison Gold Limited.
As Audit Director for the audit of the financial statements of New Murchison Gold Limited for the year
ended 30 September 2024, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
Yours sincerely
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Sam Tirodkar
Director
73
NEW MURCHISON GOLD LIMITED
74
ASX ADDITIONAL INFORMATION
The following information dated 10 December 2024 is required by the Listing Rules of the ASX Limited.
1.
DISTRIBUTION OF EQUITY SECURITIES
Analysis of the number of shareholders, by size of holding:
Range (size of parcel)
Total Holders
Units
% of Units
1 – 1,000
361
88,155
0.00
1,001 – 5,000
413
1,205,793
0.02
5,001 – 10,000
275
2,144,911
0.03
10,001 – 100,000
1,008
49,254,651
0.66
100,001 and over
1,559
7,358,842,038
99.29
Totals
3,616
7,411,535,548
100.00
Holding less than a marketable parcel
1,564
15,545,871
-
2.
SUBSTANTIAL SHAREHOLDERS
An extract from the Company’s register of substantial shareholders is set out below:
Name of Shareholder
Number of Shares Held
%
Westgold Resources Limited
1,335,158,740
18.01
Ragged Range Mining Pty Ltd & Associates
743,270,094
10.14
3.
TWENTY LARGEST SHAREHOLDERS OF QUOTED SECURITIES
Shares Held
Rank
Name of Shareholder
Number
%
1
Westgold Resources Limited
1,335,158,740
18.01
2
Ragged Range Mining Pty Ltd & Associates
743,270,094
10.03
3
Chin Nominees Pty Ltd
306,258,518
4.13
4
Mr Alexander Passmore
196,836,510
2.66
5
Jayleaf Holdings Pty Ltd
186,228,146
2.51
6
Mr Siat Yoon Chin
186,100,142
2.51
7
Goldrich Holdings Pty Ltd
182,000,000
2.46
8
Troca Enterprises Pty Ltd
150,000,000
2.02
9
Certane CT Pty Ltd
138,898,055
1.87
10
Mr Rick Wayne Crabb & Mrs Carol Jean Crabb
117,940,372
1.59
11
Lujeta Pty Ltd
116,795,491
1.58
12
BNP Paribas Nominees Pty Ltd
106,972,878
1.44
13
Jetosea Pty Ltd
100,000,000
1.35
14
Lomacott Pty Ltd
100,000,000
1.35
15
Citicorp Nominees Pty Limited
91,175,483
1.23
16
BNP Paribas Nominees PtyLtd
81,962,718
1.11
17
Wersman Nominees Pty Ltd
80,000,000
1.08
18
Mr Ian Davies
79,271,081
1.07
19
Loktor Holdings Pty Ltd
62,069,344
0.84
20
Mrs Fiona Reynolds
60,000,000
0.81
Total top 20 holders
4,420,937,572
59.65
Total remaining holders
2,990,597,976
40.35
NEW MURCHISON GOLD LIMITED
75
4
DISTRIBUTION AND NUMBER OF PERFORMANCE RIGHTS EXPIRING 27 MARCH 2028
Range (size of parcel)
Total Holders
Units
% of Units
1 – 1,000
-
-
-
1,001 – 5,000
-
-
-
5,001 – 10,000
-
-
-
10,001 – 100,000
-
-
-
100,001 and over
1
49,038,547
100
Totals
1
49,038,547
100
5.
QUOTED OPTIONS
As at the date of this report there were nil quoted options on issue in the Company.
6.
VOTING RIGHTS
In accordance with the Company’s Constitution the voting rights in respect of ordinary shares are on a show of
hands every shareholder present in person or by proxy shall have one vote and upon a poll each share shall have
one vote.
7.
UNQUOTED SECURITIES
Unquoted securities on issue excluding securities which were issued under an employee incentive scheme:
Class of Securities
Number of
securities
Number of
Holders
Holders with more than 20%
Unquoted Options
Options exercisable at $0.006 expiring
9/03/2025
517,132,063
293
No holders with more than 20%
Underwriter Options exercisable at
$0.006 expiring 27/03/2025
657,143,904
66
CG Nominees (Australia Pty Ltd – 28%
Director Options exercisable at $0.018
expiring 8/04/2025
28,750,000
2
Ioma Pty Ltd - 65%
Gemini Holdings Pty Ltd - 35%
Director Options exercisable at $0.037
expiring 1/03/2026
12,000,000
2
Rick W Crabb & Carol J Crabb – 58%
Renique Holdings Pty Ltd – 42%
Director Options exercisable at $0.0045
expiring 28/02/2026
30,000,000
2
Rick W Crabb & Carol J Crabb – 33%
Gemini Holdings Pty Ltd - 67%
Performance Rights expiring
27/03/2028
164,038,547
1
Alexander Passmore
Performance Options exercisable at
$0.006 and expiring 27/03/2028
64,458,205
1
Alexander Passmore
8.
STOCK EXCHANGE LISTING
New Murchison Gold Limited ordinary shares are listed on all member exchanges of the ASX Limited. The home
exchange is in Perth.
9.
RESTRICTED SECURITIES
There are no securities on issue that have been classified by the ASX Limited, Perth as restricted securities.
10.
ON-MARKET BUY-BACK
The Company does not have a current on-market buy-back plan for any of the Company’s securities.
NEW MURCHISON GOLD LIMITED
76
11.
SCHEDULE OF TENEMENTS
Project / Tenement
Location
Tenement
Number
Holder
Interest
Held
Status
Garden Gully Project
Crown Prince
WA
P51/3009
Zeus Mining Pty Ltd
100%
Granted
Government Well
WA
E51/1609
Zeus Mining Pty Ltd
100%
Granted
Young / Lydia
WA
E51/1661
Zeus Mining Pty Ltd
100%
Granted
Abbotts
WA
E51/1708
Zeus Mining Pty Ltd
100%
Granted
Young
WA
E51/1737
Zeus Mining Pty Ltd
100%
Granted
Abernethy
WA
E51/1790
Zeus Mining Pty Ltd
100%
Granted
Abernethy
WA
E51/1791
Zeus Mining Pty Ltd
100%
Granted
Abbotts
WA
M51/390
Zeus Mining Pty Ltd
100%
Granted
Crescent
WA
M51/567
Zeus Mining Pty Ltd
100%
Granted
Crown Prince
WA
M51/886
Zeus Mining Pty Ltd
100%
Granted
Lydia
WA
M51/889
Zeus Mining Pty Ltd
100%
Granted
Rinichi
WA
E51/2150
Zeus Mining Pty Ltd
100%
Granted
East Burnakurra
WA
E51/2002
Zeus Mining Pty Ltd
100%
Pending
Abernethy South
WA
E51/2012
Zeus Mining Pty Ltd
100%
Pending
West Caledonian
WA
E51/2013
Zeus Mining Pty Ltd
100%
Pending
Abernethy South
WA
E51/2014
Zeus Mining Pty Ltd
100%
Pending
Abernethy South
WA
E51/2015
Zeus Mining Pty Ltd
100%
Pending
Western Flank
WA
E51/1932
Zeus Mining Pty Ltd
100%
Pending
Western Flank
WA
E51/1972
Zeus Mining Pty Ltd
100%
Pending
Western Flank
WA
E51/1973
Zeus Mining Pty Ltd
100%
Pending
West Caledonian
WA
E51/2103
Zeus Mining Pty Ltd
100%
Granted
Magic Rising
WA
ELA51/2259
Zeus Mining Pty Ltd
-
Application
Sabbath Pipeline
WA
L51/0138
Zeus Mining Pty Ltd
-
Application
Five Mile Pipeline
WA
L51/0139
Zeus Mining Pty Ltd
-
Application
Farm-in Tenements (1)
West Caledonian
WA
E51/1709
Wanbanna Pty Ltd
51%
Earning up to 90%
Abernethy South
WA
E51/1888
Mark Selga
90%
JV interest earnt
Abernethy South
WA
E51/1924
Mark Selga
90%
JV interest earnt
East Burnakurra
WA
E51/1936
Mark Selga
51%
Earning up to 90%
Abernethy South
WA
E51/1963
Mark Selga
90%
JV interest earnt
East Burnakurra
WA
E51/1989
Mark Selga
51%
Earning up to 90%
Other Tenements (free carried interests)
Red Bore
WA
M52/597
New Murchison Gold
Limited
100%
Granted
Keller Creek
WA
E80/4834
New Murchison Gold
Limited
20% fci
Granted
Note 1 – Beneficial indirect interest acquired in joint ventures pursuant to Asset Sale and Purchase
Agreement.
New Murchison Gold Limited
Suite 8, Level 2, 5 Ord Street, West Perth, WA 6005 I PO Box 215, West Perth, WA 6872
ASX Code: NMG I P +61 8 9389 6927 I E info@newmurchgold.com.au
newmurchgold.com.au