2023
Annual Report
Pan Asia Metals Limited
Contents
Chairman’s & Managing Director’s Report
Operational Report
Our Commitment
Board of Directors
Financial Report
Tenement Schedule
Shareholder Information
6
9
17
19
23
69
70
2
Pan Asia Metals Limited | 2023 Annual Report
This report has been authorised for release
by the Board of Directors
Forward Looking Statements
This report prepared by Pan Asia Metals Limited (or
“Pan Asia: or “PAM” or “the Company”) include forward
looking statements. Often, but not always, forward
looking statements can generally be identified by the use
of forward looking words such as “may”, “will”, “expect”,
“intend”, “plan”, “estimate”, “anticipate”, “continue”, and
“guidance”, or other similar words and may include,
without limitation, statements regarding plans, strategies
and objectives of management, anticipated production
or construction commencement dates and expected
costs or production outputs. Forward looking statements
inherently involve known and unknown risks, uncertainties
and other factors that may cause the Company’s
actual results, performance and achievements to differ
materially from any future results, performance or
achievements. Relevant factors may include, but are not
limited to changes in commodity prices, foreign exchange
fluctuations and general economic conditions, increased
costs and demand for production inputs, the speculative
nature of exploration and project development, including
the risks of obtaining necessary licenses and permits and
diminishing quantities or grades of reserves, political
and social risks, changes to the regulatory framework
within which the Company operates or may in the
future operate, environmental conditions including
extreme weather conditions, recruitment and retention
of personnel, industrial relations issues and litigation.
Forward looking statements are based on the Company
and its management’s good faith assumptions relating
to the financial, market, regulatory and other relevant
environments that will exist and affect the Company’s
business and operations in the future. The Company does
not give any assurance that the assumptions on which
forward looking statements are based will prove to be
correct, or that the Company’s business or operations will
not be affected in any material manner by these or other
factors not foreseen or foreseeable by the Company or
management or beyond the Company’s control. Although
the Company attempts and has attempted to identify
factors that would cause actual actions, events or results
to differ materially from those disclosed in forward
looking statements, there may be other factors that could
cause actual results, performance, achievements or events
not to be as anticipated, estimated or intended, and
many events are beyond the reasonable control of the
Company. Accordingly, readers are cautioned not to place
undue reliance on forward looking statements. Forward
looking statements in these materials speak only at the
date of issue. Subject to any continuing obligations under
applicable law or any relevant stock exchange listing
rules, in providing this information the Company does not
undertake any obligation to publicly update or revise any
of the forward-looking statements or to advise of any
change in events, conditions or circumstances on which
any such statement is based.
3
Pan Asia Metals Limited | 2023 Annual Report
Competent Persons Statement
(Excluding RK Lithium Project MRE)
The information in this Public Report that relates
to Exploration Targets, Exploration Results, Mineral
Resources or Ore Reserves is based on information
compiled by Mr David Hobby, who is a Member of the
Australasian Institute of Mining and Metallurgy.
Mr Hobby is an employee, Director and Shareholder
of Pan Asia Metals Limited. Mr Hobby has sufficient
experience that is relevant to the style of mineralization
and type of deposit under consideration and to the
activity that he is undertaking to qualify as a Competent
Person as defined in the 2012 Edition of the Australasian
Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves. Mr Hobby consents to
the inclusion in the report of the matters based on his
information in the form and context in which it appears.
Readers are advised to refer to the following ASX release
for details on the Mineral Resource: 10 Jul 2023 Bang I
Tum Lithium Prospect Exploration Target Update.
The Company confirms that it is not aware of any new
information or data that materially affects the information
included in the original market announcements and
that all material assumptions and technical parameters
continue to apply and have not materially changed.
The Company confirms that the form and context in
which the Competent Person’s findings are presented
have not been materially modified from the original
market announcements.
Competent Persons Statement
for RK Lithium Project MRE
The information in this report that relates to Mineral
Resources is based on information compiled by Ms
Millicent Canisius and Mr Anthony Wesson, both full-time
employees of CSA Global. Mr Anthony Wesson is a Fellow
and Chartered Professional of the Australasian Institute
of Mining and Metallurgy and Ms Millicent Canisius
is a Member of the Australasian Institute of Mining
and Metallurgy. Mr Anthony Wesson and Ms Millicent
Canisius have sufficient experience, relevant to the style
of mineralisation and type of deposit under consideration
and to the activity which they are undertaking, to qualify
as Competent Persons as defined in the 2012 Edition of
the Australasian Code for the Reporting of Exploration
Results, Mineral Resources and Ore Reserves (JORC Code).
Mr Anthony Wesson and Ms Millicent Canisius consent to
the disclosure of the information in this report in the form
and context in which it appears. Ms Millicent Canisius
assumes responsibility for matters related to Sections 1
and 2 of JORC Table 1, while Mr Anthony Wesson assumes
responsibility for matters related to Section 3 of JORC Table
1. Readers are advised to refer to the following ASX release
for details on the Mineral Resource: 02 Nov 2023 Reung
Kiet Lithium Project Mineral Resource Update.
The Company confirms that it is not aware of any new
information or data that materially affects the information
included in the original market announcements and that all
material assumptions and technical parameters continue
to apply and have not materially changed. The Company
confirms that the form and context in which the Competent
Person’s findings are presented have not been materially
modified from the original market announcements.
The Company confirms that it is not aware of any new
information or data that materially affects the information
included in the original market announcements and that all
material assumptions and technical parameters continue
to apply and have not materially changed. The Company
confirms that the form and context in which the Competent
Person’s findings are presented have not been materially
modified from the original market announcements.
RK Lithium Project – BT Lithium
Prospect JORC Exploration Target
Pan Asia Metals Limited has generated a drill supported
Exploration Target estimate of 16-25Mt @ 0.40-
0.70% Li2O as defined under JORC Code (2012). The
potential quantity and grade of the Exploration Target
are conceptual in nature. There has been insufficient
exploration to estimate a Mineral Resource and it is
uncertain if further exploration will result in the estimation
of a Mineral Resource. Drilling at the BT Lithium Prospect
is designed to test the Exploration Target and adjacent
areas. Please refer to the following ASX releases for
details on the Exploration Target: 10 Jul 2023 Bang I
Tum Lithium Prospect Exploration Target Update.
The Company confirms that it is not aware of any new
information or data that materially affects the information
included in the original market announcements and
that all material assumptions and technical parameters
continue to apply and have not materially changed.
The Company confirms that the form and context in
which the Competent Person’s findings are presented
have not been materially modified from the original
market announcements.
Khao Soon Tungsten Project -
JORC Exploration Target
Pan Asia Metals Limited has generated a drill supported
Exploration Target estimate of 15-29 million tonnes
grading 0.2-0.4% WO3 as defined under JORC Code
(2012). The Exploration Target comprises 4-8 million
tonnes grading 0.2-0.4% WO3 at the Than Pho West
prospect, 1-2 million tonnes grading 0.2-0.4% WO3 at
the Than Pho Ridge prospect, 6-12 million tonnes grading
0.1-0.3% WO3 at the Target 2 prospect, and 4-7 million
tonnes grading 0.2-0.4% WO3 at the Rabbit prospect.
The potential quantity and grade of the Exploration
Target are conceptual in nature. There has been
insufficient exploration to estimate a Mineral Resource
and it is uncertain if further exploration will result in
the estimation of a Mineral Resource. Drilling at the BT
Lithium Prospect is designed to test the Exploration Target
and adjacent areas. Please refer to the following ASX
releases for details on the Exploration Target: 08 Oct 2020
Technical Reports for PAM Projects and 30 Oct 2020 Khao
Soon Tungsten Project - Drilling Update.
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Pan Asia Metals Limited | 2023 Annual Report
Relevant ASX Releases
Readers are advised to refer to the following ASX releases
for details on other technical data reported in this report:
RK LITHIUM PROJECT
19 Jan 2023: Reung Kiet Lithium - Metallurgical Test-work
Results
02 Feb 2023: Reung Kiet Lithium - Drilling Update
28 Feb 2023: Bang I Tum Prospect Initiation of Drilling
03 Apr 2023: Reung Kiet Lithium Project Drilling Results
19 Apr 2023: Reung Kiet Lithium Project Mining Zones
Declared
20 Apr 2023: Positive Roasting and Leaching Test-worK
Results
19 May 2023: Non-Binding MOU with VinES for Lithium
Conversion Plant
22 May 2023: Reung Kiet Lithium Project Drilling Results
30 May 2023: Bang I Tum Lithium Prospect, New Zones
Discovered
21 Jun 2023: Bang I Tum Lithium Prospect, Drilling Continues
to Deliver
10 Jul 2023: Bang I Tum Lithium Prospect Exploration Target
Update
14 Jul 2023: Bang I Tum Lithium Prospect Drill Results are
Delivering
18 Jul 2023: RK Lithium Confirmatory Met Testwork Positive
31 Jul 2023: Pan Asia Metals and IRPC sign MOU
18 Aug 2023: RK Lithium, Exceptional Flotation Results
21 Aug 2023: Revised RK Lithium, Exceptional Flotation
Results
31 Jul 2023: Pan Asia Metals and IRPC sign MOU
18 Aug 2023: RK Lithium, Exceptional Flotation Results
21 Aug 2023: Revised RK Lithium, Exceptional Flotation
Results
07 Sep 2023: BT Lithium Prospect, Strong Li and Sn Results
Continue
Corporate Governance
Pan Asia's Corporate Governance guidelines can be found
at: https://investorhub.panasiametals.com/governance
02 Nov 2023: Reung Kiet Lithium Project Mineral Resource
Update
13 Dec 2023: RK Lithium Project - Waste to By-product
Testwork
11 Jan 2024: RK Lithium Project Drilling Update
22 Feb 2024: RK Lithium Project - License Re-Application
TAMA ATACAMA LITHIUM PROJECT
28 Jul 2023: Tama-Atacama Brine-Clay Lithium Project
21 Aug 2023: Hilix Lithium Project, Fieldwork Begins
28 Aug 2023: Pink Lithium Project, 200km2 Added to
Project Area
18 Sep 2023: Tama Atacama Lithium, Solid Seismic
Data Interpretations
08 Nov 2023: Tama-Atacama Lithium - Dolores Li
Update
02 Jan 2024: Tama Atacama Lithium Option
Agreements Signed
03 Jan 2024: Tama Atacama Lithium Presentation
08 Jan 2024: Tama Atacama and RK Lithium Update
12 Jan 2024: Tama Atacama Lithium Exploration
Concession Grant
29 Jan 2024: Tama Atacama Lithium Exploration
Concession Grant
05 Feb 2024: Tama Atacama Lithium Exploration
Concession Grant
12 Feb 2024: Tama Atacama Lithium Exploration
Concession Grant
KHAO SOON TUNGSTEN PROJECT
8 Oct 2020: ‘PAM Projects – Technical Reports’
5
Pan Asia Metals Limited | 2023 Annual Report
Chairman’s & Managing
Director’s Report
It is with pleasure that I
present Pan Asia Metals
Limited’s 2023 Annual Report.
I will begin with a brief corporate and
operational overview. PAM’s Chief
Geologist will provide more depth in
the following Operational Report.
2023 was a difficult year for all but a few minerals
exploration companies. With the backdrop of
interest rate increases and cost of living pressures,
the first half of 2023 was beset by pre-tax year
selling. The second half of the year saw a rapid
decline in battery metal prices, particularly lithium,
which, in our view, was driven by a rundown of
battery inventories throughout 2023. Like most
in the industry, we expect 2024 to be a different
year, with monthly battery inventories at 1x
demand in January 2024 and EV penetration
growing in most jurisdictions throughout 2023,
the backdrop is set for an increase in battery
metals demand and hence prices.
Grade is generally the “go to” metric in the
resources market, particularly at the junior
end, and the ”grade is king” mantra leads the
investment proposition for many investors.
The low battery metals prices in 2023 and
early 2024 instilled the notion that a project’s
“do-ability” and viability often requires a lot
more than grade. Metallurgy, cost environment,
proximity to inputs (labour, energy, reagents) and
access to end markets, are all critically important
to “do-ability” and viability and are all key
aspects of PAM’s strategy since inception. They
are often overlooked, but are often what makes
or breaks a project. As a result of the lithium price
cycle, we have seen many projects marginalised,
even with high grades, due to one or more of
these factors, and manylow grade projects
have been highly profitable. This point is being
laboured as we believe there is a lot more to a
successful project than grade.
Paul Lock
Chairman &
Managing Director
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Pan Asia Metals Limited | 2023 Annual Report
The year’s focus has been largely on the RK
Lithium Project, which consists of two prospects,
the RK and BT Lithium Prospects. During the
year we completed drilling 102 diamond holes
at RK, and delivered a Mineral Resource of 14.8
million tonnes grading 0.45% Li2O, containing
164,500t LCE. At BT we delivered a drill-
supported Exploration Target mid year of 16-24
million tonnes grading 0.4-0.7% Li2O. Drilling
continued throughout 2023 and into 2024 up until
re-applications were submitted over both the
RK and BT Lithium Prospects. We are positioned
to deliver an Inferred Mineral Resource once
assays have been completed. Naturally we have
been conducting feasibility test work during the
year with successful metallurgical and flotation
testwork reported throughout the course of
the year. Further testwork is underway and
the Company is in discussions with technology
partners who are currently processing lepidolite
for lithium chemicals in China, and who are
situated at, or near, the bottom of the lepidolite
cost curve and well down on the larger hard
rock cost curve.
During the year we entered into a Memorandum
of Understanding with IRPC Public Company
Limited (“IRPC”), an integrated petrochemical and
refinery flagships of PTT Public Company Limited
(PTT), Thailand’s national energy company.
Under the MOU, PAM and IRPC will establish a
joint project team which will assess the viability
of: i. developing a lithium mining operation at
the RK Lithium Project to produce a lithium oxide
concentrate; ii. a lithium conversion facility for the
production of Li2CO3 or LiOH chemical products,
with the facility to be located in IRPC’s Industrial
Zone located in the Rayong Province, Thailand;
and iii. a Cathode Active Material (“CAM”)
facility in IRPC’s Industrial Zone, potentially with
a technology knowledge partner, to produce
CAM product. Discussions are underway, and
both IRPC and PAM have been in discussions
with technology partners currently processing
lepidolite for lithium chemicals in China.
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Pan Asia Metals Limited | 2023 Annual Report
With regard to strategy, and as previously
stated, we are in a dynamic environment and
the Company is very focused on identifying
opportunities from both an inward and an
outward perspective. This means tweaking our
strategy as we experience changes in the global
environment, and seizing upon opportunities
that fit the Company’s strategy as and when
they arise. From the outward perspective, PAM’
objective is to identify, secure and develop
battery and critical metals projects which are
situated in low cost jurisdictions proximal to
advanced industrial centres or manufacturing
facilities relevant to the Company’s operations.
Securing such opportunities positions PAM to
then be inward focused, which means, at a
later date, looking for opportunities to move
downstream and value add.
In my opinion, this is how the best industrial
companies have built themselves, through
a symbiotic relationship between an
outward and inward focus on opportunities
to advance the Company’s interests.
I raise this now as, during the year, we have
positioned PAM to achieve this. The MOU with
IRPC is inward focused, it will help PAM move past
the mine gate and value add, and with the right
technology partner PAM will be positioned to do
this at a low cost. In addition to RK, PAM secured
two very good opportunities during the year:
1. PAM entered into an MOU with VinES to
negotiate a definitive agreement to build
a standalone lithium conversion facility in
Vietnam. Vietnam is attractive for three
key reasons: a. it is one of the lowest cost
industrialising economies in Southeast
Asia, and as a result it is attracting the EV
and LIB supply chain; b. it sits in between
the Northeast Asian markets of China,
South Korea and Japan, and the
Southeast Asian markets of Thailand,
Malaysia and Indonesia; and c. it has
a strong, well-educated workforce.
Before finishing off I would like to discuss the
importance of people and the implementation
of a sound ESG strategy, which is emphasised
in our Sustainability Report. During the year the
Company furthered its goal to position itself as
a community-oriented company, with community
and environment front and centre in its decision
making. During 2023, our focus has been on
the initiation and delivery of inclusive outcomes
that consider the communities in and around
our project areas. Like our business strategy,
we are looking both inward and outward to
achieve a balance between financial success
and community and environmental success.
To finish off, it is important to thank those
shareholders who stuck with the Company
through a very difficult year, and those who
joined us – smart move. I would also like to extend
our thanks to our suppliers, who have supported
the Company through thick and thin. Further
thanks to our dedicated staff, who are delivering
great outcomes, and the Board. Like 2022, I
would also like to offer a special thanks to those
shareholders and other stakeholders who have
offered me and the Company their thoughts and
advice – this has been very helpful – and who
have stuck around for the vision and the journey,
you really are what makes a company like
Pan Asia Metals strong.
Yours sincerely,
Paul Lock
The MOU is a cooperation agreement
between the parties for the evaluation of
a standalone Lithium Conversion Facility
located close to VinES’ battery plant in
Vietnam and a neighbouring joint venture
LFP plant between VinES and Gotion. PAM
has near completed a PFS for a 25,000tpa
of lithium carbonate facility and is currently
reviewing the results in consultation with one
of the leading conversion plant builders in
China. PAM is also in discussions with several
battery and/or electric vehicle manufacturers
2. PAM secured the Tama Atacama Lithium
Project in Chile via three binding Option
Agreements. Tama Atacama is one of
the largest lithium brine projects in South
America, with PAM holding ~120,000ha
(~1,200km2) across several salars. The
option agreements give PAM the right to
purchase 100% of the holdings, which have
extensive lithium surface anomalies with
elevated lithium results up to 2,200ppm Li
and averaging 700ppm Li (270ppm Li cutoff)
extending over 160km north to south. Further,
PAM has an MOU for a further 400km2
which is currently under consideration. Tama
Artacama has all required infrastructure, is
positioned 75km from two major ports, is
1.3km lower than Salar de Atacama, and is on
a rail line to Antofagasta where all of Chile’s
lithium carbonate is manufactured. Like
the RK Lithium Project and the Vietnamese
Lithium Conversion Initiative, PAM has
positioned itself with one of the most
strategically placed projects in the global
peer group and is also positioned
for downstream value adding in country.
The delivery of these projects will be achieved
through alliances with knowledge and balance
sheet partners, and PAM is in discussions with
the same on all three projects. Success could
see PAM positioned as one of the leaders in
the battery metals and chemicals supply chain.
8
Pan Asia Metals Limited | 2023 Annual Report
Operational Report
During the year PAM
continued drilling at the
RK Lithium Project resulting
in the completion 9,007.3m
of diamond core drilling in
40 holes. Results were
reported during the year for
holes RKDD073 to RKDD102
and for the BT Lithium
Prospect in holes BTDD007
to BTDD025, with many
positive intersections.
David Hobby
Technical Director
& Chief Geologist
9
Pan Asia Metals Limited | 2023 Annual Report
The Company announced an updated
Mineral Resource estimate (“MRE”) for
the RK Lithium Prospect of 14.8Mt @
0.45% Li2O. This update represents
a 42% increase in tonnes and a 46%
increase in contained LCE compared
to the previous MRE. The new MRE also
has 75% classified in the Measured
and Indicated categories.
The Company also completed metallurgical
testwork comprising flotation to produce
lepidolite concentrates plus roasting and leaching
testwork of lepidolite concentrates. These
programs produced highly encouraging results.
At the BT Lithium Prospect about 8km north of
the RK Lithium Prospect, PAM announced a drill
supported Exploration Target estimate of 16-25Mt
@ 0.40-0.70% Li2O. This represents an 80-100%
increase on the previous Exploration Target.
In April 2023, the Thai Cabinet approved the
Mineral Management Master Plan No.2, resulting
in Mining Zones being declared across much of
the RK Project Area including the mineralised
trends and adjacent areas, giving PAM the legal
right to submit Mining License Applications.
In July of 2023, the Company announced it had
secured the Tama Atacama Lithium Project in
Chile comprising binding MOUs to acquire a suite
of highly prospective lithium (Li) brine and clay
projects in northern Chile extending over 290km
north to south and covering ~ 1600km2. The
Project area contains significant lithium values
and by-product/pathfinders. At announcement,
a total 57 of 185 surface samples, primarily from
the Pink Li in brine prospect, averaged 702ppm
Li and ranged up to 2200ppm Li based on a
250ppm Li cutoff.
In May, PAM entered into an MOU with VinES
Energy Solutions for the evaluation of a
standalone 20-25,000tpa Lithium Conversion
Facility to produce Li2CO3 or LiOH using third
party feed. The conversion facility is to be located
within the Vung Ang Industrial Park close to the
VinES battery plant and VinES-Gotion LFP CAM
joint venture plant in Vietnam.
In July, PAM entered into a MOU with Thai listed
IRPC (an US$1.4B integrated petrochemical and
refinery flagship of PTT Public Company Limited
(SET: PTT), itself a US$30B energy group, 51%
held by the Thai Government. The MOU will
evaluate mining in southern Thailand to produce
Li2O concentrates, conversion to LCE in IRPC’s
chemical precinct in Rayong, and to consider
Cathode Active Material (CAM) manufacturing
opportunities at a later date.
RK Lithium Project
The RK Lithium Project (RKLP) is a hard rock
project with lithium hosted in lepidolite rich
pegmatites chiefly composed of quartz, albite,
lepidolite with minor cassiterite and tantalite.
The project at present contains two main
prospect areas; RK Lithium Prospect and BT
Lithium Prospect.
The RK Lithium Prospect contains an old pit about
500m long and up to 125m wide. Mining of the
weathered pegmatites extended up to 30m
below surface, to the top of hard rock. PAM has
identified a prospective zone at least 1km long
which contains a large swarm of pegmatite dykes
and veins up to 100m wide. Individual dykes can
be up to 30m wide. More typically dykes and
veins range from 10m to 0.1m in width.
Figure 1 – RKLP – Mining Zones
Mineral Resource estimate
During the year, PAM reported a Mineral Resource
estimate update (“MRE”) at RK of 14.8Mt @
0.45% Li2O for approximately 164,500t contained
LCE. The MRE was estimated by CSA Global in
accordance with the JORC Code (2012), see table
below “RKLP Mineral Resources at November,
2023” and refer to PAM’s ASX announcement date
November 2nd, 2023, and titled ‘RK Lithium Project
Mineral Resource Update’.
Table 1 – RKLP – RK Lithium Prospect – Mineral Resource
Estimate, 02 November, 2023
Resource
Category
Resource
(Mt)
Li2O
(ppm)
Sn
(ppm)
Ta2O5
(ppm)
Rb
(%)
Cs
(ppm)
Cont.
LCE
Mining Zones
Measured
7.80
0.44
410
74
0.20
230
85,289
During the year, the Cabinet of the government
of Thailand approved the Mineral Management
Master Plan No.2, prepared by the National
Mineral Management Policy Commission,.
See PAM’s ASX announcement dated 19 April
2023, and titled RK Lithium Project Mining
Zones Declared’.
10
Pan Asia Metals Limited | 2023 Annual Report
Indicated
3.26
0.49
349
Inferred
3.74
0.41
390
Total
14.80
0.45
391
85
78
77
0.20
261
39,375
0.19
229
38,252
0.20
237
164,500
Mineral Resource reported above 0.25% Li2O% cut-off.
Appropriate rounding applied.
The updated MRE was in line with PAM’s
expectations, and the contained LCE of ~164,500t
positions PAM well to meet its production
objectives.
Some drill intersections from drillholes RKDD031
to 072 are presented in the Table below.
Table 2 – RKLP – RK Lithium Prospect – Selected drill
intersections
The Mineral Resource remains open down dip
and along strike at the southern end.
Hole ID
From
(m)
To
(m)
Interval
(m)
Li2O
(%)
Sn
(%)
Ta2O5
(ppm)
Drilling
RKDD077
Incl.
100.00
112.00
115.75
115.75
15.75
3.75
During the year, PAM conducted diamond core
drilling at the RK Lithium Prospect, with 821m
drilled in two holes (RKDD100-102). Assay results
were reported for drillholes RKDD073 to RKDD102.
Figure 2 – RKLP – RK Lithium Prospect Drill Collars
RKDD079
Incl.
RKDD080
Incl.
RKDD080
Incl.
91.20
96.00
55.10
58.00
69.30
73.70
0.55
0.85
0.37
0.75
0.41
0.64
0.43
0.82
0.69
0.64
0.91
0.11
0.07
0.12
0.10
0.11
0.12
0.08
0.10
0.08
0.07
0.08
139
215
124
104
76
92
84
111
117
120
155
112.10
100.00
20.90
4.00
63.00
63.00
83.90
79.95
7.90
5.00
14.60
6.25
13.50
15.00
4.50
RKDD085
RKDD086
Incl.
203.50
169.00
177.50
217.00
184.00
182.00
RKDD088
301.50
319.30
17.80
0.05
0.20
76
RKDD089
RKDD089
129.30
146.00
141.90
154.50
12.60
8.50
RKDD090
RKDD090
Incl.
RKDD091
RKDD091
Incl.
RKDD091
RKDD091
RKDD092
Incl.
Incl.
RKDD092
RKDD094
RKDD094
RKDD094
RKDD094
Incl.
Incl.
RKDD095
Incl.
RKDD095
RKDD096
Incl.
RKDD096
10.65
55.50
58.05
12.00
52.00
56.30
76.30
108.30
172.00
177.45
186.00
240.10
64.40
73.60
74.00
102.40
108.05
118.50
48.90
57.80
166.65
179.35
183.00
243.20
35.85
60.95
60.95
16.80
63.50
62.00
89.15
113.15
193.50
182.00
191.05
253.35
69.90
90.00
78.00
123.35
110.10
120.65
60.05
60.05
174.30
190.35
190.00
254.70
RKDD097
Incl.
55.00
63.00
69.70
69.00
RKDD098
RKDD098
228.20
307.60
231.80
311.10
RKDD102
RKDD102
Incl.
219.85
245.00
248.00
239.90
251.40
251.40
24.60
5.45
2.90
4.80
11.50
5.70
12.85
4.85
21.50
4.55
5.05
13.25
5.50
16.40
4.00
20.95
2.05
3.15
11.15
2.25
7.65
11.00
7.00
11.50
14.70
6.00
3.60
3.50
20.05
6.40
3.40
0.62
0.73
0.48
0.58
0.92
0.73
0.75
1.03
0.32
0.82
0.55
0.88
0.77
0.48
0.52
0.74
0.59
1.11
1.27
0.95
1.39
0.66
0.76
0.78
0.95
0.38
0.27
0.17
0.19
0.27
0.09
0.07
0.05
0.03
0.05
0.05
0.14
0.26
0.02
0.07
0.08
0.10
0.09
0.13
0.05
0.06
0.06
0.05
0.08
0.08
0.05
0.06
0.12
0.11
0.10
0.17
0.10
0.10
0.26
0.23
0.18
0.23
0.25
109
114
89
197
326
164
128
198
70
219
100
111
159
98
92
89
94
85
120
158
171
147
77
137
143
76
138
244
179
92
92
167
205
The program was designed as infill and
extensional drilling of the current Inferred
Mineral Resource and has been highly
successful, with extensive zones of lithium
mineralisation encountered associated with
lepidolite rich pegmatite dyke and vein swarm.
Mineralisation remains open along strike and
downdip, especially at the southern end.
Detailed information for holes drilled during
the reporting period is contained in PAM
ASX announcements.
11
Pan Asia Metals Limited | 2023 Annual Report
See PAM’s ASX announcement dated 18 July 2023
and titled ‘Additional Flotation Test-work Confirms
and Improves Results’.
This test-work was conducted by Nagrom in Perth.
It demonstrated that relatively high recoveries
of lithium to concentrate are achievable utilising
industry standard methods with both the fresh
and weathered mineralisation undergoing similar
comminution and beneficiation in line with that
conducted by BGRIMM. The testwork results
were a material improvement in Li2O grade and
recovery for concentrate derived from weathered
mineralisation, showing 71% Li2O recovery at
3.11% Li2O grade. For the fresh material, the
testwork showed 76% Li2O recovery at 3.10%
Li2O grade and ~80% Li2O recovery at ~3.00%
Li2O grade in concentrate, reaffirming previous
test-work results from BGRIMM. The Nagrom
improvements in recovery and concentrate
grades is most likely due to reduced Li losses to
slimes, whereby, to remove slimes/fines less than
0.016mm. BGRIMM employed wet screening as
compared to Nagrom employing hydrocycloning.
Nagrom also conducted flotation testwork on
sample products derived from the ‘ore-sorting
testwork’ which has proven to reduce the amount
of low grade or waste siltstone in the mill feed
and increase overall lithium grades of the feed.
It may also be expected that lithium recoveries
from flotation may also improve by decreasing
the amount of siltstone in the feed.
Ore Sorting Testwork
During the year, PAM released Flotation test-
work results from ‘ore-sort’ product derived from
fresh mineralisation at the RK Lithium Prospect.
See PAM’s ASX announcement dated 21 August
2023 and titled ‘RK Lithium Project – Exceptional
Flotation Test-work Results’.
Metallurgical Testwork
PAM has conducted metallurgical testwork on
the RK Lithium Prospect mineralisation.
Peer feasibility work, market studies and
research has demonstrated that lepidolite has
the potential to be one of the highest purity
sources of battery grade lithium carbonate and
lithium hydroxide, lepidolite is potentially one of
the lowest cost sources of lithium carbonate and
lithium hydroxide, and that lepidolite has one of
the lowest capex requirements on a per tonne
LCE basis after by-products.
During the year, testwork has included ore sorting
to separate high grade pegmatite from lower
grade to waste siltstone, and beneficiation
testwork to produce a lepidolite concentrates
from weathered and fresh mineralisation.
Beneficiation Testwork
The test-work was conducted on two separate
composites comprised of fresh and weathered
mineralisation derived from laboratory ‘coarse
crush rejects’ (100% <3.35mm).
The flotation testwork conducted has
demonstrated that relatively high recoveries of
lithium to concentrate are achievable utilising
industry standard methods, with both the fresh
and weathered mineralisation undergoing
similar comminution and beneficiation. The tests
resulted in concentrate grades of approximately
3.0% Li2O with lithium recoveries up to 78% from
fresh mineralisation and concentrate grades
of 2.8% Li2O with lithium recoveries of 63%
from weathered mineralisation, see PAM’s ASX
Announcement dated 19 January, 2023,
and titled ‘RK Lithium Project – Metallurgical
Test-work Results’.
PAM reported results of confirmatory flotation
testwork on sub-samples derived from the
Beijing General Institute of Mining & Metallurgy
(“BGRIMM”) samples, which comprised both
fresh and weathered mineralisation.
12
Pan Asia Metals Limited | 2023 Annual Report
Table 3 – RKLP – RK Lithium Prospect - Ore Sorting
test results
Sort sizes
Description
Product No.
Li2O Grade (%)
-50mm, +25mm
Pegmatite
-25mm, +10mm
Pegmatite
-10mm fines
Pegmatite and
siltstone
-50mm, +10mm
Siltstone/waste
reject
1
2
3
4
1.00
0.85
0.49
0.22
From the above products three composite
samples for the flotation testwork were
formulated:
Table 4 – RKLP – RK Lithium Prospect - Flotation test
composite samples
Float Test No.
Scenario
Composite
Description
Li2O Feed
Grade (%)
1
2
3
Optimum
Mining Scenario
Products 1-3
0.92
Modelled
Mining Scenario
Products 1-3 +
20% Product 4
Downside
Mining Scenario
Products 1-3 +
40% Product 4
0.78
0.66
Products 1-3 represent pegmatite and fines
material <10mm. Product 4 represents siltstone
that occurs adjacent to pegmatite but can be
optically sorted and substantially removed
from the mill feed.
In the Optimum Mining Scenario, high Li
recoveries of +80% were achieved into
concentrates grading from 2.81-3.45% Li2O,
and 77% recoveries for a 3.60% Li2O
concentrate where achieved. The grade
x recovery curve indicates potential for a
concentrate grade of 3.0% Li2O at a recovery
of approximately 84% Li2O.
In the Modelled Mining Scenario, high Li
recoveries of +75% into concentrates grading
from 2.71-3.43% Li2O were achieved. The
grade x recovery indicates potential for a
concentrate grade of 3.0% Li2O at a recovery
of approximately 78% Li2O.
13
Pan Asia Metals Limited | 2023 Annual Report
The test sample contains 20% low grade
siltstone and this is interpreted to represent
the potential approximate ratio of mill feed
over the life of the mine.
The lithium mica concentrates have undergone
roasting and leaching testwork. The process
route being tested is an Alkaline Salt Roast,
which is commonly referred to as a Sulphate
Roast. This is the process predominantly used in
China and has a strong operating track record.
Sulphate Roast and Leaching testwork
During the year, PAM reported the results from
sulphate roast and lithium leach extraction
testwork undertaken on samples of lepidolite
concentrates produced by the BGRIMM testwork.
See PAM’s ASX announcement dated 20 April
2023, and titled ‘RK Lithium Project Positive
Roasting and Leaching testwork results’.
This work was conducted by ALS Metallurgy
in Perth under the supervision of Lithium
Consultants Australasia.
Two samples of lepidolite concentrate, weighing
approximately 1kg each, were generated from
the testwork program performed by BGRIMM.
The fresh and oxide concentrate samples were
separately roasted in a kiln at 900°C for 1 hour.
The roast product samples were leached in
de-ionised (DI) water (20% solids) at 60°C for 1
hour. At the end of the leach period, the slurry
was filtered. The filtrate was assayed. The residue
was re-pulped with DI water (20% solids) and
washed (re-leached) at 60°C for 1 hour and the
filtration step repeated. The re-pulp procedure
was repeated. The final residue was assayed.
The leach results, in terms of lithium extraction v
gypsum + sodium sulphate addition, are shown
in the Table on the next page. It is evident that
the fresh and oxide samples show similar trends
across the five tests conducted, with Tests 1 and 4
providing the best Li extractions.
Figure 3 – RKLP – Lithium Extraction Test Work Results
Drilling
During the year, PAM conducted diamond
core drilling at the BT Lithium Prospect, with
8,186.3m drilled in 38 holes (BTDD007-BTDD044).
Assay results were reported for drillholes
BTDD007 to BTDD025. Some drill intersections
from drillholes BTDD007 to BTDD024 are
presented in the Table below.
Table 5 – RKLP – BT Lithium Prospect – Selected drill
intersections
Hole ID
From
(m)
To
(m)
Interval
(m)
Li2O
(%)
Sn
(%)
Ta2O5
(ppm)
BTDD007
BTDD007
incl.
BTDD007
BTDD008
incl.
BTDD008
BTDD009
BTDD009
incl.
49.50
165.20
168.00
194.00
23.70
25.20
187.30
131.40
138.00
141.40
BTDD010
incl.
67.10
68.00
BTDD012
BTDD012
incl.
10.35
108.95
117.00
61.15
173.00
172.00
200.75
31.20
30.30
199.45
135.90
151.45
145.85
86.60
81.00
14.20
121.20
121.20
11.65
7.80
4.00
6.75
7.50
5.10
12.15
4.50
13.45
4.45
19.50
14.00
3.85
12.25
4.20
0.60
0.61
0.76
0.41
0.43
0.52
0.36
0.62
0.47
0.76
0.66
0.86
0.92
0.49
0.89
0.12
0.09
0.11
0.16
0.02
0.03
0.15
0.12
0.08
0.13
0.05
0.07
0.05
0.09
0.11
BTDD013
120.00
139.90
19.90
0.27
0.03
BTDD015
BTDD015
39.10
67.10
44.70
73.60
BTDD016
BTDD016
185.95
192.00
203.55
203.55
BTDD017
incl.
2.20
2.20
BTDD018
BTDD018
BTDD019
incl.
BTDD019
BTDD019
25.15
40.40
18.25
19.25
32.80
129.60
9.55
4.00
28.05
47.00
28.35
24.70
37.50
148.10
5.60
6.50
17.60
11.55
7.35
1.80
2.90
6.60
10.10
5.45
4.70
18.50
0.84
0.55
0.35
0.32
0.84
1.60
1.07
0.79
0.69
1.02
0.56
0.42
0.08
0.09
0.09
0.09
0.05
0.10
0.08
0.05
0.07
0.11
0.10
0.11
BTDD020
144.80
156.30
11.50
0.48
0.09
BTDD021
BTDD021
145.15
146.00
165.70
154.70
BTDD024
incl.
102.50
104.45
112.55
109.50
20.55
8.70
10.05
5.05
0.15
0.30
0.54
0.83
0.14
0.15
0.04
0.06
89
117
145
104
24
28
99
95
71
129
87
104
89
79
88
71
161
131
88
100
120
217
127
88
73
111
128
85
68
93
89
171
227
The results generated from this Phase 1 roast-
leach testwork are highly encouraging. Roast
and leach conditions remain to be optimised and
this will be explored in the next phase of testwork,
which will further investigate roast reagent ratios,
roast time and temperature and the effect of
agglomerating the roast feed.
Waste to By-product testwork
PAM has begun a collaboration with one of
Thailand’s largest cement producers on the use
of RK concentrate and lithium chemical
processing residues in cement manufacturing.
Initial testwork confirmed this application.
Further work confirms that the bulk mine waste
is inert, and may be suitable for aggregates and
land reclamation. See PAM’s ASX announcement
dated 13 December 2023 and titled ‘RK Lithium
Project-Waste to By-product Testwork.
BT Lithium Prospect
The BT Lithium Prospect was a relatively large
open cut tin mine. The old pit is about 650m long
and up to 125m wide. Mining of the weathered
pegmatites extended up to 30m below surface,
to the top of hard rock. BT is located about 8km
north of the RK Lithium Prospect
14
Pan Asia Metals Limited | 2023 Annual Report
Exploration Target
Figure 4 – RKLP – BT Lithium Prospect Exploration Target
During the year, PAM announced an updated
Exploration Target for the BT Lithium Prospect.
The Exploration Target was increased to
16-25Mt @ 0.40-0.70% Li2O which represents a
~80 to 100% increase in tonnage to the previous
Exploration Target. See PAM’s ASX announcement
dated 10 July 2023, and titled ‘BT Lithium
Prospect - Exploration Target Substantially
Increased’. The Exploration Target is reported
in the Table below.
Table 6 – RKLP – BT Lithium Prospect - Exploration
Target, 10 July, 2023
Million
Tonnes
Li2O
(%)
Sn
(%)
Ta2O5
(ppm)
Rb
(%)
Cs
(ppm)
K
(%)
Lower
16.0
0.70
0.16
130
0.30
250
2.80
Upper
25.0
0.40
0.11
90
0.25
200
2.40
The updated Exploration Target considered
newly acquired information which has served to
extend the previous Exploration Target to the
east, north and west. The updated Exploration
Target was based on the current interpretation
of mineralisation, geometry, geochemistry and
geology. This was provided by 28 diamond
drillholes with assay results for 7 of these holes,
as well as surface soil and rock-chip sampling
and associated geological observations.
Subsequent drilling results are generally
supportive of the Exploration Target, and PAM
expects to report a Mineral Resource for the
BT Lithium Prospect in 2024.
15
Pan Asia Metals Limited | 2023 Annual Report
Tata Atacama Lithium Project
During the year, PAM announced its entry into
binding Memorandums of Understanding to
acquire a suite of highly prospective lithium (Li)
brine and Li clay projects in northern Chile, see
PAM’s ASX announcement dated 28 July 2023 and
titled ‘Tama-Atacama Brine-Clay Lithium Project -
PAM Enters the South American Lithium Triangle’.
The Tama Atacama Lithium Project is divided
into six prospects extending over 290km north
to south and covering an area of approximately
1,600km2. The northern four lithium prospects
cover a suite of salars extending over 160km
which are highly prospective for lithium in brines
supported by extensive lithium surface anomalies
with lithium results up to 2,200ppm Li, and
averaging 700ppm Li (56/177 assays, 270ppm
cutoff) extend over ~160km.
PAM reported additional geochemical sampling
of surface salt crusts at Salar Dolores over a
strike length of approximately 20km. PAM
collected 26 samples with 10 returning values
of >200ppm Li and averaging 319ppm Li with
a highest value of 608ppm Li. Previous work
yielded four of seven samples averaging 419ppm
Li ranging up to 1250 ppm Li. Elevated boron,
potassium and magnesium are also associated
with elevated Li. The geochemical signature of
surface salt crusts at Salar Dolores are similar to
Salar de Atacama. See PAM’s ASX announcement
dated 8 November 2023 and titled ‘Tama
Atacama Lithium – Dolores Li Update’.
KT Lithium Project
The KT Lithium Project is centred approximately
35km NNE of the RK Lithium Project and covers
five (5) Special Prospecting Licence Applications
(SPLA) over an area of approximately 45km2.
PAM is awaiting the grant of the Special
Prospecting Licence Applications. The
prospect has potential for both hardrock
and geothermal lithium.
Khao Soon Tungsten Project
The Khao Soon Tungsten Project (“KSTP”)
was a significant historical tungsten producer.
Modern exploration has discovered potentially
world class, district scale tungsten mineralisation
across numerous prospects.
Previously reported reconnaissance diamond
drilling by PAM, has intersected robust widths
and WO3 grades associated with strong surface
anomalies from which Exploration Targets have
been estimated.
PAM is assessing value accretive options for
the KTSP, including discussions with potential
joint venture partners already active in the
tungsten industry.
Figure 5 – Tama Atacama Lithium Project – Lithium Surface
Anomalies
The Tata Atacama Lithium Project demonstrates
strong potential for Li in brine, and also for
Li in clay which are hosted in the Pampa del
Tamarugal basin in the north-western part of
the Atacama Desert in Chile.
PAM also announced the results of a review of
historic seismic and groundwater investigations.
The groundwater investigations were focused on
the Pink, Pozon and Dolores South and Dolores
North Li in Brine Prospects and confirmed that
saline groundwater zones generally correspond
with highly elevated Li in surface salt crusts,
indicating relatively shallow saline aquifers.
See PAM’s ASX announcement dated 18
September 2023 and titled ‘Tama Atacama
Lithium – Solid Seismic Data Interpretations’.
The seismic investigations focused on a historic
seismic line which crossed between the
southern end of Salar de Pintados and the
adjoining Sara de Bellavista. The identified
target zone within the basin sediments is
interpreted to occur from about 250-600m in
depth.
16
Pan Asia Metals Limited | 2023 Annual Report
Our Commitment
PAM thrives on the strength and talent of its people. Their
dedication is our backbone, and their expertise drives our
success. We’re deeply invested, as is every member of our team.
We at PAM understand that we are not an
island – we are situated in and around the
communities in which we operate. Our focus
is on delivering inclusive outcomes that
consider these communities. We believe
in reciprocity – as the community thrives,
so do we, and vice versa.
Our Sustainability Strategy looks both inward
and outward, striving to achieve a balance
between financial success and humanitarian
considerations. Ahead of our direct peers, we
aim to embed this sustainability mindset early
and allow it to mature alongside our projects.
We envision a future where mining and
exploration coexist harmoniously with community
development, cultural preservation, and
sustainable growth.
We are more than just a company; we are
partners with our communities, working hand in
hand for a brighter, more sustainable future.
We wholeheartedly support the UN’s
sustainable development goals, with a
primary focus on three specific goals:
PAM’s education project has primarily focused
on enhancing small primary schools in the areas
in which we operate, by collaborating with
community development initiatives, educational
institutions, and religious establishments.
Our efforts will include providing educational
resources, music and sports facilities, classroom
improvements, sanitation facilities, playground
enhancements, and clean water systems. These
initiatives aim to improve students’ physical and
mental well-being, fostering a positive attitude
towards education. The project also seeks
to promote satisfaction among educational
personnel and parents by actively supporting
the school’s development and students’ progress.
17
Pan Asia Metals Limited | 2023 Annual Report
This initiative comprises two distinct projects:
Project Oxygen Bank and Project X-ray,
collectively falling under the umbrella of Project
#CommunityCares. Project #CommunityCares
encompasses a comprehensive range of health
promotion activities aimed at all demographics
within the community. Its primary objectives
are to promote good hygiene practices and
advocate for the use of healthcare tools
designed to monitor the health of individuals
living within our designated areas. One pivotal
component of this initiative is the facilitation of
annual lung X-ray examinations, which play a
crucial role in assessing the risk of respiratory
diseases among community members. By raising
awareness about the importance of health
and ensuring timely access to medical care, our
overarching goal is to safeguard the well-being
and health of all community members.
PAM practices sustainable resource management
with #PAMGreen and #UnityinDiversity. This
initiative plays a crucial role in raising awareness
within local communities about environmental
conditions, including dust, noise, surface
water, and groundwater. Through continuous
monitoring, we can promptly address any
environmental abnormalities that may pose
health risks to community members. We aim
to identify the causes and implement timely
solutions through in-depth analysis. In addition,
Project #UnityInDiversity actively contributes
to the preservation and promotion of cultural
traditions at local Thai Buddhist temples and
Muslim mosques during significant religious
festivals. By doing so, the project aims to foster
collaboration, strengthen interfaith cooperation,
and sustain the unique customs and beliefs of
each participating community.
18
Pan Asia Metals Limited | 2023 Annual Report
Board of Directors
Paul Lock
Chairman
& Managing Director
David Hobby
Technical Director
& Chief Geologist
David is an Economic Geologist with 30+ years
experience. David has worked in a variety
of geological terrains across Asia, Australia,
South America, USA and Africa. David is
experienced in all facets of the minerals
project cycle.
Qualifications:
B.App Sci (Geology), MAusIMM, Competent Person
under the JORC Code.
Experience and expertise:
David is an Economic geologist and has been
involved in the minerals industry for over 30 years.
Since graduating from the University of Canberra
in 1989 David has worked in a variety of geological
terrains in Australia, Asia, South America, USA
and Africa, and has experience in all facets of the
minerals project cycle with a focus on exploration
and evaluation.
David has held senior geological management
and consulting positions with listed and private
companies and progressed several projects
through to feasibility and pre-production,
including the Adelong Gold Project, Broula King
Gold Project, Webb’s Silver Project and the
Woodlawn Zn-Cu project.
David has been focused on SE Asia since 2013.
His geological qualifications and experience are
complimented with skills in project management,
environmental management, Occupational
Health and Safety, contractor, government
and stakeholder management.
Paul is a former advisor and financier,
working with companies across a wide range
of industries including the mining sector. Paul
also has extensive experience as a physical
commodities trader and a derivatives trader,
including options and high yield bonds. Paul
has had a focus on Southeast Asia for over
10 years and South America since 2022.
Qualifications:
Master of Political Economy; Master of International
Studies; Master of Commercial Law; Master of
Business Administration; Bachelor of Business;
MAusIMM.
Experience and expertise:
Before Pan Asia Metals Paul was a corporate
adviser at Everspring Partners, a boutique Sydney
based advisory firm that he founded. Before
Everspring Paul worked in corporate advisory and
leveraged/project finance roles at one of Australia’s
leading commercial banks, often acting in lead
arranger roles. Paul initially focused on corporate
and single asset project finance in the resource
sector before moving into leveraged finance for
private equity initiatives and then into a corporate
advisory role where he was sector agnostic and
focused on generating corporate transactions.
Prior to banking Paul worked for Rothschild & Co
in Australia where he was a derivatives trader
and a high yield bond investor focusing on a
variety of asset classes, generally distressed or
complex assets. Paul also had some involvement
in structuring derivatives solutions for resource
companies in conjunction with Rothschild’s
corporate advisory team. Prior to Rothschild
Paul worked for Japanese trading conglomerate
Marubeni Corporation in the soft commodity
trading division.
19
Pan Asia Metals Limited | 2023 Annual Report
Board of Directors
David Docherty
Non-Executive Director
Thanasak
Chanyapoon
Non-Executive Director
David focused on the Australian resource
sector during his time in stockbroking and with
investment bank, Slater Walker, in London.
Experience and expertise:
David moved to Sydney in 1968 to oversee major
investments he earlier established for Slater Walker
clients in BHP (Bass Strait oil) and Western Mining
(nickel) and to provide equity finance for emerging
miners which included arranging finance for
Poseidon to drill its Mt Windarra nickel discovery
in 1969. Later, David became CEO of Slater Walker
sponsored Mining Finance Corporation.
From 1984-87 David successfully guided
Sedimentary Holdings as CEO to joint ownership
and open-pit development of the old Cracow Gold
Mine (Qld).
In 1987 David became an equity partner in the Thai
resource sector after the Government deregulated
gold exploration and mining. Thereafter, he jointly
financed a team of geologists responsible for the
discovery of what is now the Chatree Gold Mine.
In 2002 David became a foundation director and
CEO of Thai Goldfields NL, an unlisted public
company holding Thai SPL applications in a variety
of gold and copper prospects, and including land
tenure containing a minimum 100,000ozs gold at
shallow depth located within 2km of the recently
re-opened Chatree Gold Mine.
Thanasak is a Partner at Capital Law Office,
a leading Bangkok based legal and tax practice,
a Non-Executive Director of Cal-Comp Electronics
PLC, a company listed on the Stock Exchange of
Thailand, and well established in the Thai
business community.
Qualifications:
Bachelor of Laws (Hons) degree and Master
of Laws degree from Chulalongkorn University
and Master of Laws degree from University of
Cambridge.
Experience and expertise:
Thanasak is a Partner at The Capital Law Office,
a leading Bangkok based legal practice.
Thanasak’s area of expertise is tax law, and
corporations for more than 25 years. Prior to joining
Capital Law Office, he has worked with Baker &
McKenzie, Bangkok, and Linklaters, Bangkok. He
was also the co-founder of LawAlliance Limited
specializing in Thailand tax laws including double
tax treaties made with Thailand.
Since 2008 to date, Thanasak is a special lecturer
in various tax law subjects at Faculty of Law,
Chulalongkorn University, and at Faculty of
Business Administration, Kasetsart University.
Recently, Thanasak has been appointed as member
of the subcommittee on Law Reform for Ease of
Doing Business in Thailand, appointed by the Order
of Office of the Prime Minister, and as advisor
to the Chairman of the Tourism Commissioner,
Thailand’s House of Representatives.
20
Pan Asia Metals Limited | 2023 Annual Report
Board of Directors
Supriya Sen
Non-Executive Director
Supriya is a former banker with 30+ years
investment experience in project finance,
private equity and public private partnerships
at firms such as GE Capital, World Bank, IFC,
Asian Development Bank, Citibank, across
India, South East Asia and Middle East.
Besides PAM, she currently serves as Non
Executive Independent board director of
several other companies in the infrastructure
and climate finance space.
She also serves as Trustee for global and
regional non-profit organisations in areas
linked to the low carbon transition and digital
innovation for social good.
Qualifications:
B.Eng (Electronics) & MBA.
Experience and expertise:
Supriya”s investment and strategic advisory
expertise is in areas of banking and climate finance,
risk management, green infrastructure & circular
economy, smart cities, innovation and technology
transformation sectors.
Given her interest in public policy and good
governance, she also serves on various regional
committees and networks, and is an accredited
member of the Australian Institute of Company
Directors, Women Corporate Directors,
Singapore Institute of Directors and Indian
Institute of Directors.
21
Pan Asia Metals Limited | 2023 Annual Report
Company Secretaries
Elissa Hansen
Nor Hafiza Binte Alwi
Australian Company Secretary
Singapore Company Secretary
Qualifications:
Qualifications:
Elissa holds a Bachelor of Commerce and
a Graduate Diploma in Applied Corporate
Governance. She is a fellow of the Governance
Institute of Australia and graduate member of
the Australian Institute of Company Directors.
Experience and expertise:
Elissa has over 20 years’ experience advising
boards and management on corporate governance,
compliance, investor relations and other corporate
related issues. She has worked with boards and
management of a range of ASX listed companies.
Elissa is a Chartered Secretary who brings best
practice governance advice, ensuring compliance
with the Listing Rules, Corporations Act and other
relevant legislation.
Hafiza holds a Bachelor of Law (Hons) degree
and is also a fellow of the Chartered Secretaries
Institute of Singapore and a Practising Chartered
Secretary.
Experience and expertise:
Experience and expertise: Hafiza is a Director of
ZICO Corporate in Singapore. She has over 25 years
of experience and acts as Company Secretary
to a diversified range of local and foreign listed
and non-listed companies. In her role as Company
Secretary, Hafiza advises and provides guidance
to her clients and the Boards on corporate
transactions, procedures and practices, code of
corporate governance, compliances and regulatory
requirements including listing rules of the SGX-ST.
22
Pan Asia Metals Limited | 2023 Annual Report
Financial Report
PAN ASIA METALS LIMITED
AND ITS SUBSIDIARIES
(Company registration no.:201729187E)
(Incorporated in the Republic of Singapore)
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
AUDITED FINANCIAL STATEMENTS
AND OTHER FINANCIAL INFORMATION
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
The directors present their statement to the members together with the audited consolidated financial
statements of Pan Asia Metals Limited (the “Company”) and its subsidiaries (the “Consolidated Entity”)
for the financial year ended 31 December 2023 and the statement of financial position of the Company as
at 31 December 2023 and the statement of changes in equity of the Company for the financial year
ended 31 December 2023.
In the opinion of the directors,
(a) the consolidated financial statements of the Consolidated Entity and the statement of financial
position and the statement of changes in equity of the Company are drawn up so as to give a true
and fair view of the financial position of the Consolidated Entity and of the Company as at 31
December 2023 and the financial performance, changes in equity and cash flows of the Consolidated
Entity and changes in equity of the Company for the financial year then ended; and
(b) at the date of this statement, after considering the measures taken by the Consolidated Entity and
the Company with respect to the Consolidated Entity’s and the Company’s ability to continue as
going concerns as described in Note 1 to the financial statements, there are reasonable grounds to
believe that the Company will be able to pay its debts when they fall due.
23
23
Pan Asia Metals Limited | 2023 Annual Report
Pan Asia Metals Limited | 2023 Annual Report
1
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
For the financial year ended 31 December 2023
Directors
The directors of the Company in office at the date of this statement are as follows:
Mr Paul David Lock
Mr David John Hobby
Mr David Michael Docherty
Mr Thanasak Chanyapoon
Ms Supriya Sen
Arrangements to enable directors to acquire benefits by means of the acquisition of shares and
debentures
Neither at the end of the financial year nor at any time during the financial year did there subsist any
arrangement whose object is to enable the directors of the Company to acquire benefits by means of the
acquisition of shares or debentures in the Company or any other body corporate.
Directors’ interests in shares and debentures
(a) The directors of the Company holding office at the end of the financial year had no interests in the
share capital and debentures of the Company and related corporations as recorded in the register of
directors’ shareholdings kept by the Company under section 164 of the Companies Act 1967 except
as follows:
Shareholdings registered in
name of director
Shareholdings in which a
director is deemed to have an
interest
At 1.1.2023 At 31.12.2023 At 1.1.2023
At 31.12.2023
Pan Asia Metals Limited
(No. of ordinary shares)
Mr Paul David Lock
Mr David John Hobby
Mr David Michael Docherty
Mr Thanasak Chanyapoon
42,099,750
4,677,750
-
3,378,742
42,099,750
4,677,750
-
3,602,293
-
-
22,286,868
-
-
-
22,510,419
-
By virtue of section 7 of the Companies Act 1967, Mr Paul David Lock is deemed to have an interest in all
the related corporations of the Company.
Shares options
There were no share options granted during the financial year to subscribe for unissued shares of the
Company.
There were no shares issued during the financial year by virtue of the exercise of options to take up
unissued shares of the Company.
There were no unissued shares of the Company under option at the end of the financial year.
24
Pan Asia Metals Limited | 2023 Annual Report
2
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
For the financial year ended 31 December 2023
Review of operations
The loss for the Consolidated Entity after providing for income tax amounted to US$ 3,339,284 (31
December 2022: US$2,046,517).
The net assets of the Consolidated Entity increased by US$367,994 to US$10,763,294 as at 31
December 2023 (31 December 2022: decreased by US$2,045,408 to US$10,395,300).
As at 31 December 2023, the Consolidated Entity had net current liabilities of US$1,311,079 (31
December 2022: net current assets of US$ 600,722). The Consolidated Entity had net cash outflows from
operating activities for the year of US$ 2,619,651 (31 December 2022: US$1,822,225). The total cash at
banks and deposits at the end of the financial year amounted to US$120,138 (31 December 2022:
US$970,098).
Environmental regulation
Except for environmental regulations related to the Consolidated Entity’s exploration licences,
the
Consolidated Entity is not subject to any significant environmental regulation under the laws of the
jurisdictions in which it operates.
Indemnity and insurance of officers
The Company has indemnified the directors and executives of the Company for costs incurred, in their
capacity as a director or executive, for which they may be held personally liable, except where there is a
lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the directors
and executives of the Company against a liability.
Independent auditor
The independent auditor, PKF-CAP LLP, has expressed its willingness to accept re-appointment.
On behalf of the directors
________________________________
Paul David Lock
Director
__________________________________
David John Hobby
Director
28 March 2024
25
Pan Asia Metals Limited | 2023 Annual Report
3
26
Pan Asia Metals Limited | 2023 Annual Report
PKF-CAP LLP is a member of PKF global, the network of member firms of PKF International Limited, each of which is a separate and independent legal entity and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm(s).PPKKFF--CCAAPP LLLLPP 6 Shenton Way OUE Downtown 1 #38-01 Singapore 068809 Tel: (65) 6500 9360 www.pkfsingapore.com UEN: T07LL0568F INDEPENDENT AUDITOR’S REPORTTO THE MEMBERS OF PAN ASIA METALS LIMITEDReport on the Audit of the Financial Statements OpinionWe have audited the financial statements of Pan Asia Metals Limited (the “Company”) and its subsidiaries (collectively, the “Consolidated Entity”), which comprise the consolidated statement of financial position of the Consolidated Entityandthe statement of financial position of the Company as at 31 December 2023,and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows of the Consolidated Entity and the statement of changes in equity of the Company for the year then ended, and notes to the financial statements, including materialaccounting policy information.In our opinion, the accompanying consolidated financial statements of the Consolidated Entityandthe statement of financial position and the statement of changes in equity of the Company are properly drawn up in accordance with the provisions of the Companies Act1967(the Act) and Singapore Financial Reporting Standards (International) (“SFRS(I)s”) so as to give a true and fair view of the consolidated financial position of the Consolidated Entityand the financial position of the Company as at 31 December 2023and of the consolidated financial performance, consolidated changes in equity and consolidated cash flows of the Consolidated Entityand of the changes in equity of the Company for the year ended on that date.Basis for OpinionWe conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Consolidated Entityin accordance with the Accounting and Corporate Regulatory Authority (“ACRA”) Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (“ACRA Code”) together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.Material Uncertainty Related to Going ConcernWe draw attention to Note 1 to the financial statements with respect to the Consolidated Entity’s and the Company’s ability to continue as going concerns.During the financial year ended 31 December 2023, the Consolidated Entityreported a net loss of US$3,339,284 (2022: net loss of US$2,046,517). As at 31 December 2023, the Consolidated Entity has cash at banks and deposits of US$120,138 (2022: US$970,098) and Consolidated Entity’s current liabilities exceeded its current assets by US$1,311,079.These factors indicate the existence of a material uncertainty that may cast significant doubt on the Consolidated Entity’sand the Company’s ability to continue as going concerns. Nevertheless, for the reasons disclosed in Note 1 to the financial statements, the Directors are of the view that it is appropriate for the financial statements of the Consolidated Entity’sand of the Company to be prepared on a going concern basis. Our opinion is not modified in respect of this matter. 27
Pan Asia Metals Limited | 2023 Annual Report
PKF-CAP LLP is a member of PKF global, the network of member firms of PKF International Limited, each of which is a separate and independent legal entity and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm(s).INDEPENDENT AUDITOR’S REPORTTO THE MEMBERS OF PAN ASIA METALS LIMITEDReport on the Audit of the Financial Statements (continued)Key Audit MattersKey audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current year. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have determined the matter described below to be a key audit matter to be communicated in our report. 1. Carrying value and capitalisation of exploration and evaluation assetsRefer to Note 2 and Note 11How our audit addressed itThe Consolidated Entity has incurred exploration and evaluation costs for exploration projects in South East Asia over a number of years, which was capitalised in the statement of financial position in accordance with its accounting policies. The carrying value of the exploration and evaluation assets amounted to approximately US$ 12million (2022: US$9.686million).There is a risk that the Consolidated Entitymay lose or relinquish its rights to explore and evaluate those areas of interest and therefore the amounts capitalised in the statement of financial position from the current year and historical periods may no longer be recoverable.Management has also assessed whether there are any facts and circumstances which suggest that the carrying amount of the assets may beimpaired. During the year,management assessed that there are no facts and circumstances which suggest that the carrying amount of the assets are impaired, and as such, nofurtherimpairment charge was recognised in relation to exploration and evaluation assets.Our audit procedures included the followings:-Understanding and vouching the underlying contractual entitlement to explore and evaluate each area of interest, including an evaluation of the Consolidated Entity’s renewal in that area of interest at its expiry.-Performed assessment on the recognition and measurement of exploration expenditure as per SFRS (I) 6 Exploration for and Evaluation of Mineral Resources.-Evaluated if there are anyimpairment indicators based onpara 20 of SFRS (I) 6.-Assessed the adequacy of the Consolidated Entity’s disclosures in the financial statements. 28
Pan Asia Metals Limited | 2023 Annual Report
PKF-CAP LLP is a member of PKF global, the network of member firms of PKF International Limited, each of which is a separate and independent legal entity and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm(s).INDEPENDENT AUDITOR’S REPORTTO THE MEMBERS OF PAN ASIA METALS LIMITEDReport on the Audit of the Financial Statements (continued)Other InformationManagement is responsible for other information. The other information comprises the information included in the annual report but does not include the financial statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements 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 Management and Directors for the Financial StatementsManagement is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Act and SFRS(I)s, and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair financial statements and to maintain accountability of assets.In preparing the financial statements, management is responsible for assessing the Consolidated Entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Consolidated Entityor to cease operations, or has no realistic alternative but to do so.The directors’ responsibilities include overseeing the Consolidated Entity’s financial reporting process. 29
Pan Asia Metals Limited | 2023 Annual Report
4PKF-CAP LLP is a member of PKF global, the network of member firms of PKF International Limited, each of which is a separate and independent legal entity and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm(s).INDEPENDENT AUDITOR’S REPORTTO THE MEMBERS OF PAN ASIA METALS LIMITEDReport on the Audit of the Financial Statements (continued)Auditor’s Responsibilities for the Audit of the Financial StatementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are 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 SSAs 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 these financial statements.As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: •Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.•Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Consolidated Entity’s internal control.•Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.•Conclude on the appropriateness of management’s 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 Consolidated Entity’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 statements 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 Consolidated Entity to cease to continue as a going concern.•Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.•Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Consolidated Entityto express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Consolidated Entityaudit. 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. 30
Pan Asia Metals Limited | 2023 Annual Report
5PKF-CAP LLP is a member of PKF global, the network of member firms of PKF International Limited, each of which is a separate and independent legal entity and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm(s).INDEPENDENT AUDITOR’S REPORTTO THE MEMBERS OF PAN ASIA METALS LIMITEDReport on the Audit of the Financial Statements (continued)Auditor’s Responsibilities for the Audit of the Financial Statements (continued)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.From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial statements of the current year and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.Report on Other Legal and Regulatory RequirementsIn our opinion, the accounting and other records required by the Act to be kept by the Company and by those subsidiary corporations incorporated in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act.The engagement partneron the audit resulting in this independent auditor’s report is Tang Hui Lin. PKF-CAP LLPPublic Accountants and Chartered AccountantsSingapore28 March 2024 PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the financial year ended 31 December 2023
Note
2023
US$
2022
US$
Interest income
20,995
2,479
Expenses
Employment expenses
Depreciation expense
Finance costs
Rental expenses
Corporate and administration expenses
Professional fees
Marketing and promotion expenses
Subscription expenses
Impairment loss on exploration and evaluation assets
Foreign exchange losses
5
10
10
5.1
(861,965)
(45,442)
(4,297)
(4,650)
(1,267,793)
(399,607)
(451,918)
(114,042)
-
(210,565)
(627,764)
(44,276)
(637)
(2,627)
(413,404)
(235,932)
(320,715)
(114,960)
(23,207)
(265,474)
Loss before income tax expense
(3,339,284)
(2,046,517)
Income tax expense
Loss for the year
Other comprehensive loss
6
-
-
(3,339,284)
(2,046,517)
Items that may be reclassified subsequently to profit or loss:
Foreign currency translation arising from consolidation
Other comprehensive loss for the year, net of tax
53,811
53,811
(97,016)
(97,016)
Total comprehensive loss for the year
(3,285,473)
(2,143,533)
Basic and diluted loss per share
23
(2.14)
(1.39)
Cent
Cent
The accompanying notes form an integral part of these financial statements
9
31
Pan Asia Metals Limited | 2023 Annual Report
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
STATEMENTS OF FINANCIAL POSITION
As at 31 December 2023
Assets
Current assets
Cash at banks and deposits
Other receivables
Prepayments
Total current assets
Non-current assets
Plant and equipment
Right-of-use assets
Exploration and evaluation assets
Investments in subsidiaries
Other receivables
Total non-current assets
Total assets
Liabilities
Current liabilities
Other payables
Lease liabilities
Accrued expenses
Total current liabilities
Non-current liabilities
Employee benefit provision
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Accumulated losses
Consolidated
Company
Note
2023
US$
2022
US$
2023
US$
2022
US$
7
8
9
10
11
12
8
13
10
14
14
10
120,138
197,096
25,961
343,195
68,287
49,803
11,999,831
-
20,224
12,138,145
970,098
130,394
85,341
1,185,833
93,539
72,036
9,686,898
-
19,911
9,872,384
2,617
2,043,051
21,709
2,067,377
791,545
996,213
26,488
1,814,246
1,566
-
-
11,677,760
-
11,679,326
2,795
-
-
10,281,335
-
10,284,130
12,481,340
11,058,217
13,746,703
12,098,376
1,295,495
24,246
334,533
1,654,274
136,076
22,298
426,737
585,111
746,016
-
318,980
1,064,996
59,746
-
251,015
310,761
38,214
25,558
63,772
28,068
49,738
77,806
-
-
-
-
-
-
1,718,046
662,917
1,064,996
310,761
10,763,294
10,395,300
12,681,707
11,787,615
15
16
16,725,974
(97,227)
(5,865,453)
13,072,507
(151,038)
(2,526,169)
16,725,974
-
(4,044,267)
13,072,507
-
(1,284,892)
Total equity
10,763,294
10,395,300
12,681,707
11,787,615
The accompanying notes form an integral part of these financial statements
32
Pan Asia Metals Limited | 2023 Annual Report
10
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
STATEMENTS OF CHANGES IN EQUITY
For the financial year ended 31 December 2023
Consolidated
Foreign
currency
translation
reserve
US$
Share
Capital
US$
Accumulated
Losses
US$
Total
equity
US$
Balance at 1 January 2022
12,974,382
(54,022)
(479,652)
12,440,708
Loss for the year
Other comprehensive loss for the year, net of
tax
Total comprehensive loss for the year
Transactions with owners:
Issuance of new shares to directors (Note 15)
-
-
-
-
(2,046,517)
(2,046,517)
(97,016)
-
(97,016)
(97,016)
(2,046,517)
(2,143,533)
98,125
-
-
98,125
Balance at 31 December 2022
13,072,507
(151,038)
(2,526,169)
10,395,300
Consolidated
Foreign
currency
translation
reserve
US$
Share
Capital
US$
Accumulated
Losses
US$
Total
equity
US$
Balance at 1 January 2023
13,072,507
(151,038)
(2,526,169)
10,395,300
Loss for the year
Other comprehensive loss for the year, net
of tax
Total comprehensive loss for the year
-
-
-
-
(3,339,284)
(3,339,284)
53,811
-
53,811
53,811
(3,339,284)
(3,285,473)
Transactions with owners:
Issuance of new shares (Note 15)
Issuance of new shares to directors (Note
15)
Shares issued in lieu of professional fees
(Note 15)
Shares issued in consideration for marketing
services (Note 15)
Share issue expenses (Note 15)
79,155
(203,755)
3,595,160
152,802
30,105
-
-
-
-
-
-
-
-
-
-
3,595,160
152,802
30,105
79,155
(203,755)
Balance at 31 December 2023
16,725,974
(97,227)
(5,865,453)
10,763,294
The accompanying notes form an integral part of these financial statements
33
Pan Asia Metals Limited | 2023 Annual Report
11
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
STATEMENTS OF CHANGES IN EQUITY
For the financial year ended 31 December 2023
Company
Share
capital
US$
Accumulated
losses
US$
Total
Equity
US$
Balance at 1 January 2022
12,974,382
442,590
13,416,972
Loss for the year, representing total comprehensive loss
for the year
Total comprehensive loss for the year
Transactions with owners:
Issuance of new shares to directors (Note 15)
-
-
(1,727,482)
(1,727,482)
(1,727,482)
(1,727,482)
98,125
-
98,125
Balance at 31 December 2022
13,072,507
(1,284,892)
11,787,615
Company
Share
capital
US$
Accumulated
losses
US$
Total
Equity
US$
Balance at 1 January 2023
13,072,507
(1,284,892)
11,787,615
Loss for the year, representing total comprehensive loss
for the year
Total comprehensive loss for the year
-
-
(2,759,375)
(2,759,375)
(2,759,375)
(2,759,375)
Transactions with owners:
Issuance of new shares (Note 15)
Shares issued in lieu of professional fees (Note 15)
Shares issued in consideration for marketing services
(Note 15)
Share issue expenses (Note 15)
Issue of new shares to directors (Note 15)
3,595,160
30,105
79,155
(203,755)
152,802
-
-
-
-
-
3,595,160
30,105
79,155
(203,755)
152,802
Balance at 31 December 2023
16,725,974
(4,044,267)
12,681,707
The accompanying notes form an integral part of these financial statements
34
Pan Asia Metals Limited | 2023 Annual Report
12
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
CONSOLIDATED STATEMENT OF CASH FLOWS
For the financial year ended 31 December 2023
Cash flows from operating activities
Loss for the financial year
Adjustments for:
Effect of currency exchange differences
Depreciation of plant and equipment
Depreciation of right of use assets
Impairment loss on exploration and evaluation assets
Finance cost
Changes in working capital:
- Prepayments
- Other receivables
- Other payables and accruals
- Provisions
Net cash used in operating activities
Cash flows from investing activities
Payments for plant and equipment
Payments for exploration and evaluation
Net cash used in investing activities
Cash flows from financing activities
Principal repayment of lease liabilities
Proceeds from issue of ordinary shares
Advance from Directors
Interest paid
Increase in restricted bank deposits
Note
2023
US$
2022
US$
9
10
11
10
11
10
(3,339,284)
(2,046,517)
44,811
21,626
23,816
-
4,297
(3,244,734)
134,313
19,472
24,804
23,207
637
(1,844,084)
59,380
(67,015)
622,572
10,146
(45,260)
(100,092)
193,678
(26,467)
(2,619,651)
(1,822,225)
-
(2,302,006)
(38,741)
(2,362,300)
(2,302,006)
(2,401,041)
(22,116)
3,653,467
444,643
(4,297)
(795)
(26,805)
-
-
-
(64,491)
Net cash generated from/(used in) financing activities
4,070,902
(91,296)
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial
year
Effects of exchange rate changes on cash and cash
equivalents
Cash and cash equivalents at the end of the financial year
7
7
(850,755)
(4,314,562)
905,607
5,274,787
-
54,852
(54,618)
905,607
Note: In 2022, the additions of exploration and evaluation assets of US$2,362,300 was paid by cash and
US$57,914 remained unpaid as at year end.
The accompanying notes form an integral part of these financial statements
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Pan Asia Metals Limited | 2023 Annual Report
13
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
These notes form an integral part of and should be read in conjunction with the accompanying financial
statements.
Note 1. General information
The financial statements cover both Pan Asia Metals Limited (the “Company”) and its subsidiaries (the
“Consolidated Entity”). The financial statements are presented in United States dollars, which is the
Company’s functional and presentation currency.
Pan Asia Metals Ltd is listed on Australian Securities Exchange (“ASX”) in Australia and incorporated and
domiciled in Singapore. Its registered office and principal place of business are:
Registered office
Principal place of business
77 Robinson Road #06-03
Robinson 77
Singapore 068896
Level 23, 52 Thaniya Plaza, Zone B
Silom Road Suriyawong, Bangkok
Thailand 10500
The principal activity of the Company is investment holding. The principal activities of its subsidiaries are
in the identification and development of specialty metals assets situated in low-cost environments which
are proximal to advanced industrial centres. The Company’s principal geography is Southeast Asia.
Going concern
The consolidated financial statements of the Consolidated entity have been prepared on a going concern
basis which contemplates the continuity of normal business activities and the realisation of assets and
discharge of liabilities in the normal course of business.
During the financial year ended 31 December 2023, the Consolidated Entity reported a net loss of
US$3,339,284 (2022: net loss of US$2,046,517). The Consolidated Entity has no source of operating
cash inflows other than interest income and funds sourced through capital raising activities. As at 31
December 2023, the Consolidated Entity has cash at banks and deposits of US$120,138 (2022:
US$970,098) and Consolidated Entity’s current liabilities exceeded its current assets by US$1,311,079.
These factors indicate the existence of a material uncertainty which may cast significant doubt on the
Consolidated Entity’s and the Company’s ability to continue as going concerns.
The Consolidated Entity’s cashflow forecast subsequent to the year ended 31 December 2023 reflects
that the Consolidated Entity will be required to raise additional working capital during the next 12-month
period from the date of financial statements. The directors consider that the Consolidated Entity is a
going concern and recognises that additional funding is required to ensure that it can continue to fund its
operations during the twelve-month period from the date of financial statements.
Accordingly, the directors believe that the Consolidated Entity will be able to obtain sufficient funding to
allow it to meet its minimum exploration expenditure commitments on existing tenements and continue its
activities for at least the next 12 months. For this reason, these consolidated financial statements are
prepared on a going concern basis.
In addition to the above, the directors believe that the Consolidated Entity will be able to continue as a
going concern and as a result the financial statements have been prepared on a going concern basis
based on the following considerations:
• Company’s track record of successfully raising capital. The Company raised USD 3,604,801 in
2023 and USD 5,865,677 in 2021.
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Pan Asia Metals Limited | 2023 Annual Report
14
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
•
•
•
As disclosed in Note 24, subsequent to the year end on 2 January 2024, the Company raised
approximately AUD 895,000 (equivalent to USD 580,000) via Convertible notes as announced on
ASX on 28 March 2024;
The Consolidated Entity is in advanced discussions with several leading lithium chemical and
batteries producers in the Asian region for potential collaborations;
The ability of the Consolidated Entity to scale back parts of its operations and reduce costs if
required;
• Meeting its obligations by either farm-out or partial sale of the Consolidated Entity’s exploration
interests; and
• Other avenues that may be available to the Consolidated entity.
In the long term, the development of mineral reserve found depends on the Consolidated Entity’s ability
to raise additional capital. Additional funds will be required for the successful exploration and subsequent
exploitation of its areas of interest through development and sale. The main source of future funds to the
Consolidated Entity is the raising of equity capital by the Consolidated Entity. The Consolidated Entity
could also obtain financing through debt financing or other means. The ability to arrange such funding in
the future will depend on the prevailing capital market conditions as well as the business performance of
the Consolidated Entity and its exploration and evaluation results.
The financial statements do not include any adjustments that may result in the event that the
Consolidated Entity and the Company are unable to continue as going concerns. In that event,
adjustments may have to be made to reflect the situation that assets may need to be realised other than
in the amounts at which they are currently recorded in the statements of financial position. In addition, the
Consolidated Entity and the Company may have to provide for further liabilities that might arise and to
reclassify non-current assets and liabilities as current assets and current liabilities.
Basis of preparation
These financial statements have been prepared in accordance with the Singapore Financial Reporting
Standards (International) (“SFRS(I)s”) under the historical cost basis, except as disclosed in the material
accounting policies below.
The preparation of financial statements in conformity with SFRS(I)s requires management to exercise its
judgement in the process of applying the Consolidated Entity’s accounting policies. It also requires the
use of certain critical accounting estimates and assumptions. The areas involving a higher degree of
judgement or complexity, or areas where assumptions and estimates are significant to the financial
statements are disclosed in Note 3.
New standards and amendments
The Consolidated Entity has applied the following SFRS(I)s, amendments to and interpretations of
SFRS(I) for the first time for the annual period beginning on 1 January 2023:
• SFRS(I) 17: Insurance Contracts
• Amendments to SFRS(I) 1-1 and SFRS(I) Practice Statement 2: Disclosure of Accounting Policies
• Amendments to SFRS(I) 1-8: Definition of Accounting Estimates
• Amendments to SFRS(I) 1-12: Deferred Tax Related to Assets and Liabilities Arising from a Single
Transaction
• Amendments to SFRS(I) 1-12: International Tax Reform – Pillar Two Model Rules
The application of these amendments to standards and interpretations does not have a material effect on
the financial statements.
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Pan Asia Metals Limited | 2023 Annual Report
15
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
Note 1. General information (continued)
New standards and interpretations issued but not yet effective
The Consolidated Entity has not adopted the following SFRS(I)s that are relevant to the Consolidated
Entity that have been issued but not yet effective:
Description
Amendments to SFRS(I) 1-1: Classification of Liabilities as Current or Non-current
Amendments to SFRS(I) 1-1: Non-current Liabilities with Covenants
Amendments to SFRS(I) 16: Lease Liability in a Sales and Leaseback
Amendments to SFRS(I) 1-7 and SFRS(I) 7: Supplier Finance Arrangements
Amendments to SFRS(I) 1-21: Lack of Exchangeability
Effective for
annual periods
beginning on or
after
1 January 2024
1 January 2024
1 January 2024
1 January 2024
1 January 2025
Management anticipates that the adoption of the above SFRS(I)s, SFRS(I) INTs and amendments to
SFRS(I) in future periods will not have a material impact on the financial statements of the Consolidated
Entity in the period of their initial adoption.
Note 2. Material accounting policies
Principles of consolidation
Subsidiaries
(i) Consolidation
Subsidiaries are all entities (including structured entities) over which the Consolidated Entity has control.
The Consolidated Entity controls an entity when the Consolidated Entity 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 to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which
control is transferred to the Consolidated Entity. They are de-consolidated from the date that control
ceases.
In preparing the consolidated financial statements, transactions, balances and unrealised gains on
transactions between group entities are eliminated. Unrealised losses are also eliminated unless the
transaction provides evidence of an impairment indicator of the transferred asset. Accounting policies of
subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the
Consolidated Entity.
Non-controlling interests comprise the portion of a subsidiary’s net results of operations and its net
assets, which is attributable to the interests that are not owned directly or indirectly by the equity holders
of the Company. They are shown separately in the consolidated statement of comprehensive income,
statement of changes in equity, and statement of financial position. Total comprehensive income is
attributed to the non-controlling interests based on their respective interests in a subsidiary, even if this
results in the non-controlling interests having a deficit balance.
(ii) Acquisitions
The acquisition method of accounting is used to account for business combinations entered into by the
Consolidated Entity.
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Pan Asia Metals Limited | 2023 Annual Report
16
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
Note 2. Material accounting policies (continued)
Principles of consolidation (continued)
Subsidiaries (continued)
(ii) Acquisitions (continued)
The consideration transferred for the acquisition of a subsidiary or business comprises the fair value of
the assets transferred, the liabilities incurred and the equity interests issued by the Consolidated Entity.
The consideration transferred also includes any contingent consideration arrangement and any pre-
existing equity interest in the subsidiary measured at their fair values at the acquisition date.
Acquisition-related costs are expensed as incurred.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination
are, with limited exceptions, measured initially at their fair values at the acquisition date.
On an acquisition-by-acquisition basis, the Consolidated Entity recognises any non-controlling interest in
the acquiree at the date of acquisition either at fair value or at the non-controlling interest’s proportionate
share of the acquiree’s identifiable net assets.
The excess of (a) the consideration transferred, the amount of any non-controlling interest in the acquiree
and the acquisition-date fair value of any previous equity interest in the acquiree over the (b) fair value of
the identifiable net assets acquired is recorded as goodwill.
(iii) Disposals
When a change in the Consolidated Entity’s ownership interest in a subsidiary results in a loss of control
over the subsidiary, the assets and liabilities of the subsidiary including any goodwill are derecognised.
Amounts previously recognised in other comprehensive income in respect of that entity are also
reclassified to profit or loss or transferred directly to retained earnings if required by a specific SFRS(I).
Any retained equity interest in the entity is remeasured at fair value. The difference between the carrying
amount of the retained interest at the date when control is lost and its fair value is recognised in profit or
loss.
Investments in subsidiaries
Investments in subsidiaries are carried at cost less accumulated impairment losses in the Company’s
statement of financial position. On disposal of such investments, the difference between disposal
proceeds and the carrying amounts of the investments are recognised in profit or loss.
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Pan Asia Metals Limited | 2023 Annual Report
17
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
Note 2. Material accounting policies (continued)
Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements of each entity in the Consolidated Entity are measured using
the currency of the primary economic environment in which the entity operates (“functional currency”).
The financial statements are presented in United States Dollars (“US$”), which is the functional currency
of the Company.
b) Transactions and balances
Transactions in a currency other than the functional currency (“foreign currency”) are translated into the
functional currency using the exchange rates at the dates of the transactions. Currency exchange
differences resulting from the settlement of such transactions and from the translation of monetary assets
and liabilities denominated in foreign currencies at the closing rates at the reporting date are recognised
in profit or loss. Monetary items include primarily financial assets (other than equity investments),
contract assets and financial liabilities. However, in the consolidated financial statements, currency
translation differences arising from borrowings in foreign currencies and other currency instruments
designated and qualifying as net investment hedges and net investment in foreign operations, are
recognised in other comprehensive income and accumulated in the currency translation reserve.
When a foreign operation is disposed of or any loan forming part of the net investment of the foreign
operation is repaid, a proportionate share of the accumulated currency translation differences is
reclassified to profit or loss, as part of the gain or loss on disposal.
Foreign exchange gains and losses that relate to borrowings are presented in the income statement
within “finance costs”. All other foreign exchange gains and losses impacting profit or loss are presented
in the income statement within “unrealised foreign exchange losses”.
Non-monetary items measured at fair values in foreign currencies are translated using the exchange
rates at the date when the fair values are determined.
c) Translation of consolidated entities’ financial statements
The results and financial position of all the consolidated entities (none of which has the currency of a
hyperinflationary economy) that have a functional currency different from the presentation currency are
translated into the presentation currency as follows:
(i) assets and liabilities are translated at the closing exchange rates at the reporting date;
(ii) income and expenses are translated at average exchange rates (unless the average is not a
reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in
which case income and expenses are translated using the exchange rates at the dates of the
transactions); and
(iii) all resulting currency translation differences are recognised in other comprehensive income and
accumulated in the currency translation reserve. These currency translation differences are reclassified
to profit or loss on disposal or partial disposal with loss of control of the foreign operation.
Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated as assets
and liabilities of the foreign operations and translated at the closing rates at the reporting date.
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Pan Asia Metals Limited | 2023 Annual Report
18
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
Note 2. Material accounting policies (continued)
Interest income
Interest income is recognised using the effective interest method.
Financial assets
(a) Classification and measurement
The Consolidated Entity classifies its financial assets at amortised cost.
The classification depends on the Consolidated Entity’s business model for managing the financial assets
as well as the contractual terms of the cash flows of the financial asset.
Financial assets with embedded derivatives are considered in their entirety when determining whether
their cash flows are solely payment of principal and interest.
The Consolidated Entity reclassifies debt instruments when and only when its business model for
managing those assets changes.
At initial recognition
At initial recognition, the Consolidated Entity measures a financial asset at its fair value plus, in the case
of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to
the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through
profit or loss are expensed in profit or loss.
At subsequent measurement
(i) Debt instruments
Debt instruments mainly comprise of cash and cash equivalents and other receivables.
The subsequent measurement categories depend on the Consolidated Entity’s business model for
managing the asset and the cash flow characteristics of the asset:
Amortised cost: Debt instruments that are held for collection of contractual cash flows where those cash
flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss
on a debt instrument that is subsequently measured at amortised cost and is not part of a hedging
relationship is recognised in profit or loss when the asset is derecognised or impaired. Interest income
from these financial assets is included in interest income using the effective interest rate method.
b) Impairment
The Consolidated Entity recognises an allowance for expected credit losses (“ECLs”) for financial assets
carried at amortised cost. ECLs are based on the difference between the contractual cash flows due in
accordance with the contract and all the cash flows that the Consolidated Entity expects to receive,
discounted at an approximation of the original effective interest rate.
The impairment methodology applied depends on whether there has been a significant increase in credit
risk. For credit exposures for which there has not been a significant increase in credit risk since initial
recognition, ECLs are provided for credit losses that result from default events that are possible within the
next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant
increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over
the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).
If the Consolidated Entity has measured the loss allowance for a financial asset at an amount equal to
lifetime ECL in the previous financial year, but determines at the current reporting date that the conditions
for lifetime ECL are no longer met, the Consolidated Entity measures the loss allowance at an amount
equal to 12-month ECL at the current reporting date.
The Consolidated Entity recognises an impairment gain or loss in profit or loss for all financial assets with
a corresponding adjustment to their carrying amount through a loss allowance account.
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Pan Asia Metals Limited | 2023 Annual Report
19
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
Note 2. Material accounting policies (continued)
Financial assets (continued)
(c) Recognition and derecognition
Regular way purchases and sales of financial assets are recognised on trade date – the date on which
the Consolidated Entity commits to purchase or sell the asset.
Financial assets are derecognised when the rights to receive cash flows from the financial assets have
expired or have been transferred and the Consolidated Entity has transferred substantially all risks and
rewards of ownership.
On disposal of a debt instrument, the difference between the carrying amount and the sale proceeds is
recognised in profit or loss. Any amount previously recognised in other comprehensive income relating to
that asset is reclassified to profit or loss.
Offsetting of financial instruments
Financial assets and liabilities are offset and the net amount reported in the statement of financial
position when there is a legally enforceable right to offset and there is an intention to settle on a net basis
or realise the asset and settle the liability simultaneously.
Plant and equipment
Plant and equipment are initially recognised at cost and subsequently carried at cost less accumulated
depreciation and accumulated impairment losses.
Components of costs
The cost of an item of plant and equipment initially recognised includes its purchase price and any cost
that is directly attributable to bringing the asset to the location and condition necessary for it to be
capable of operating in the manner intended by management.
Depreciation on plant and equipment is calculated using the straight-line method to allocate their
depreciable amounts over their estimated useful lives as follows:
Office equipment
3 - 5 years
The residual values, estimated useful lives and depreciation method of property, plant and equipment are
reviewed, and adjusted as appropriate, at each reporting date. The effects of any revision are recognised
in profit or loss when the changes arise.
Subsequent expenditure
Subsequent expenditure relating to plant and equipment that has already been recognised is added to
the carrying amount of the asset only when it is probable that future economic benefits associated with
the item will flow to the entity and the cost of the item can be measured reliably. All other repair and
maintenance expenses are recognised in profit or loss when incurred.
Disposal
On disposal of an item of plant and equipment, the difference between the disposal proceeds and its
carrying amount is recognised in profit or loss within “other losses”.
Leases
When the Consolidated Entity is the lessee:
At the inception of the contract, the Consolidated Entity assesses if the contract contains a lease. A
contract contains a lease if the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration. Reassessment is only required when the terms and
conditions of the contract are changed.
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Pan Asia Metals Limited | 2023 Annual Report
20
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
Note 2. Material accounting policies (continued)
Right-of-use assets
The Consolidated Entity recognises a right-of-use asset and lease liability at the date which the
underlying asset is available for use. Right-of-use assets are measured at cost which comprises the initial
measurement of lease liabilities adjusted for any lease payments made at or before the commencement
date and lease incentives received. Any initial direct costs that would not have been incurred if the lease
had not been obtained are added to the carrying amount of the right-of-use assets.
These right-of-use assets are subsequently depreciated using the straight-line method from the
commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the
lease term.
Lease liabilities
The initial measurement of a lease liability is measured at the present value of the lease payments
discounted using the interest rate implicit in the lease, if the rate can be readily determined. If that rate
cannot be readily determined, the Consolidated Entity shall use its incremental borrowing rate.
Lease payments include the following:
- Fixed payments (including in-substance fixed payments), less any lease incentives receivable;
- Variable lease payments that are based on an index or rate, initially measured using the index or rate
as at the commencement date;
- Amounts expected to be payable under residual value guarantees
- The exercise price of a purchase option if the Consolidated Entity is reasonably certain to exercise the
option; and
- Payment of penalties for terminating the lease if the lease term reflects the Consolidated Entity
exercising that option.
For a contract that contain both lease and non-lease components, the Consolidated Entity allocates the
consideration to each lease component on the basis of the relative stand-alone prices of the lease and
non-lease components. The Consolidated Entity has elected to not separate lease and non-lease
components for property leases and account these as one single lease component.
Lease liabilities are measured at amortised cost using the effective interest method. Lease liabilities shall
be remeasured when:
- There is a change in future lease payments arising from changes in an index or rate;
- There is a change in the Consolidated Entity’s assessment of whether it will exercise an extension
option; or
- There is a modification in the scope or the consideration of the lease that was not part of the original
term.
Lease liabilities are remeasured with a corresponding adjustment to the right-of-use asset, or is recorded
in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
Short term and low value leases
The Consolidated Entity has elected to not recognise right-of-use assets and lease liabilities for short-
term leases that have lease terms of 12 months or less and leases of low value leases, except for
sublease arrangements. Lease payments relating to these leases are expensed to profit or loss on a
straight-line basis over the lease term.
Trade and other payables
Trade and other payables represent liabilities for goods and services provided to the Consolidated Entity
prior to the end of financial year which are unpaid. They are classified as current liabilities if payment is
due within one year or less (or in the normal operating cycle of the business if longer). Otherwise, they
are presented as noncurrent liabilities.
Trade and other payables are initially recognised at fair value, and subsequently carried at amortised
cost using the effective interest method.
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Pan Asia Metals Limited | 2023 Annual Report
21
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
Note 2. Material accounting policies (continued)
Derecognition of financial liabilities
The Consolidated Entity derecognises financial liabilities when, and only when, the Consolidated Entity’s
obligations are discharged, cancelled or have expired.
Exploration and evaluation expenditure
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure
are current is carried forward as an asset in the statement of financial position where it is expected that
the expenditure will be recovered through the successful development and exploitation of an area of
interest, or by its sale; or exploration activities are continuing in an area and activities have not reached a
stage which permits a reasonable estimate of the existence or otherwise of economically recoverable
reserves. Where a project or an area of interest has been abandoned, the expenditure incurred thereon
is written off in the year in which the decision is made.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest
that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The
recoverable amount of the exploration and evaluation asset (or the cash-generating unit(s) to which it has
been allocated, being no larger than the relevant area of interest) is estimated to determine the extent of
the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of
the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the
increased carrying amount does not exceed the carrying amount that would have been determined had
no impairment loss been recognised for the asset in previous years. Where a decision is made to
proceed with development, accumulated expenditure will be tested for impairment, transferred to
property, plant and equipment expenditure, and then amortised over the life of the reserves associated
with the area of interest once production have commenced.
Income taxes
Current income tax for current and prior periods is recognised at the amount expected to be paid to or
recovered from the tax authorities, using the tax rates and tax laws that have been enacted or
substantively enacted by the reporting date. Management periodically evaluates positions taken in tax
returns with respect to situations in which applicable tax regulation is subject to interpretation and
considers whether it is probable that a tax authority will accept an uncertain tax treatment. The
Consolidated Entity measures its tax balances either based on the most likely amount or the expected
value, depending on which method provides a better prediction of the resolution of the uncertainty.
Deferred income tax is recognised for all temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the financial statements except when the deferred income tax
arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business
combination and affects neither accounting nor taxable profit or loss at the time of the transaction.
A deferred income tax liability is recognised on temporary differences arising on investments in
subsidiaries, associates and joint ventures, except where the Consolidated Entity is able to control the
timing of the reversal of the temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future.
A deferred income tax asset is recognised to the extent that it is probable that future taxable profit will be
available against which the deductible temporary differences and tax losses can be utilised.
Deferred income tax is measured:
(i) at the tax rates that are expected to apply when the related deferred income tax asset is realised or
the deferred income tax liability is settled, based on tax rates and tax laws that have been enacted or
substantively enacted by the reporting date; and
(ii) based on the tax consequence that will follow from the manner in which the Consolidated Entity
expects, at the reporting date, to recover or settle the carrying amounts of its assets and liabilities except
for investment properties. Investment property measured at fair value is presumed to be recovered
entirely through sale.
22
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Pan Asia Metals Limited | 2023 Annual Report
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
Note 2. Material accounting policies (continued)
Income taxes (continued)
Current and deferred income taxes are recognised as income or expense in profit or loss, except to the
extent that the tax arises from a business combination or a transaction which is recognised directly in
equity. Deferred tax arising from a business combination is adjusted against goodwill on acquisition.
The Consolidated Entity accounts for investment tax credits (for example, productivity and innovation
credit) similar to accounting for other tax credits where a deferred tax asset is recognised for unused tax
credits to the extent that it is probable that future taxable profit will be available against which the unused
tax credits can be utilised.
Finance costs
Borrowing costs are recognised in profit or loss using the effective interest method.
Employee compensation
Employee benefits are recognised as an expense unless the cost qualifies to be capitalised as an asset.
(a) Defined contribution plans
Defined contribution plans are post-employment benefit plans under which the Consolidated Entity pays
fixed contributions into separate entities such as the Central Provident Fund on a mandatory, contractual
or voluntary basis. The Consolidated Entity has no further payment obligations once the contributions
have been paid.
(b) Share-based compensation
Equity-settled share based payments with employees
The Consolidated Entity operates an equity-settled, share-based compensation plan. The value of the
employee services received in exchange for the grant of shares is recognised as an expense with a
corresponding increase in the share capital. The total amount to be recognised is determined by
reference to the fair value of the shares granted on grant date.
Equity-settled share based payments with with parties other than employees
Equity-settled share-based payment transactions with parties other than employees are measured at the
fair value of the goods or services received, except where that fair value cannot be estimated reliably, in
which case they are measured at the fair value of the equity instruments granted, measured at the date
the Consolidated Entity obtains the goods or the counterparty renders the service.
(c) Employee benefit
Obligations for retired benefits based on the requirement of Thai Labour Protection Act are recognised
using the best estimate method at the reporting date.
Cash and cash equivalents
For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents
include cash on hand and deposits with financial institutions which are subject to an insignificant risk of
change in value. For cash subjected to restriction, assessment is made on the economic substance of
the restriction and whether they meet the definition of cash and cash equivalents.
Share capital and treasury shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new
ordinary shares are deducted against the share capital account.
45
Pan Asia Metals Limited | 2023 Annual Report
23
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
Note 2. Material accounting policies (continued)
Provisions
Provisions are recognised when the Consolidated Entity has a present legal or constructive obligation as
a result of past events, it is more likely than not that an outflow of resources will be required to settle the
obligation and the amount has been reliably estimated. Provisions are not recognised for future operating
losses.
Provisions are reviewed at end of each financial year and adjusted to reflect the current best estimates. If
it is no longer likely than not that an outflow of resources will be required to settle the obligation, the
provisions will be reversed.
Value added tax ('VAT') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated VAT, unless the VAT
incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the
acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of VAT receivable or payable. The net
amount of VAT recoverable from, or payable to, the tax authority is included in other receivables or other
payables in the statement of financial position.
Cash flows are presented on a gross basis. The VAT components of cash flows arising from investing or
financing activities which are recoverable from, or payable to the tax authority, are presented as
operating cash flows.
Commitments and contingencies are disclosed net of the amount of VAT recoverable from, or payable to,
the tax authority.
Impairment of non-financial assets
(a) Plant and equipment
Right-of-use assets
Investments in subsidiaries
Exploration and evaluation assets
Plant and equipment, right-of-use assets, investments in subsidiaries and exploration and evaluation
assets are tested for impairment whenever there is any objective evidence or indication that these assets
may be impaired.
For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost
to sell and the value-in-use) is determined on an individual asset basis unless the asset does not
generate cash inflows that are largely independent of those from other assets. If this is the case, the
recoverable amount is determined for the CGU to which the asset belongs.
If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced to its recoverable amount.
The difference between the carrying amount and recoverable amount is recognised as an impairment
loss in profit or loss.
For an asset other than goodwill, management assesses at the end of the reporting period whether there
is any indication that an impairment recognised in prior periods may no longer exist or may have
decreased. If any such indication exists, the recoverable amount of that asset is estimated and may
result in a reversal of impairment loss. The carrying amount of this asset is increased to its revised
recoverable amount, provided that this amount does not exceed the carrying amount that would have
been determined (net of any accumulated amortisation or depreciation) had no impairment loss been
recognised for the asset in prior years.
A reversal of impairment loss for an asset other than goodwill is recognised in profit or loss.
24
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Pan Asia Metals Limited | 2023 Annual Report
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
Note 3. Critical judgements in applying the Consolidated Entity’s material accounting policies
Estimates, assumptions and judgements are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are believed to be reasonable
under the circumstances.
The critical judgements, the key assumptions concerning the future, and other key sources of estimation
uncertainty at the end of the reporting period, that may have a significant risk of causing a material
adjustment to the carrying amounts of specific assets and liabilities within the next financial year, are
related to the following areas:
Exploration and evaluation assets
Exploration and evaluation assets have been capitalised on the basis that the Consolidated Entity will
commence commercial production in the future, from which time the costs will be amortised in proportion
to the depletion of the mineral resources. Key judgements are applied in considering costs to be
capitalised which includes determining expenditures directly related to these activities and allocating
overheads between those that are expensed and capitalised. In addition, costs are only capitalised that
are expected to be recovered either through successful development or sale of the relevant mining
interest. Factors that could impact the future commercial production at the mine include the level of
reserves and resources, future technology changes, which could impact the cost of mining, future legal
changes and changes in commodity prices. To the extent that capitalised costs are determined not to be
recoverable in the future, they will be written off in the period in which this determination is made.
Impairment of investments in subsidiaries
Investments in subsidiaries are stated at cost less any impairment loss. The Company evaluates, among
other factors, the market and economic environment in which the subsidiaries operate and development
of its exploration and evaluation assets to determine whether there are indicators of impairment loss or if
so, whether the estimated recoverable amount exceeds cost. Management has evaluated and concluded
that no impairment indicators noted. The carrying amounts of investments in subsidiaries is disclosed in
Note 12.
Calculation of loss allowance
Management considers the performance, financial capability as well as payment profile of these non-
trade debtors in order to determine the appropriate stage of expected credit loss for these debtors.
Probability or risk of default is then being estimated by considering the future conditions.
The carrying amounts of other receivable is disclosed in Note 8 to the financial statements.
Note 4. Segment disclosures
The Consolidated Entity does not have any reportable operating segments as it solely operates in one
segment, being the exploration of resources within the South East Asian region. The internal reports that
are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision
Makers ('CODM') in assessing performance and in determining allocation of resources are prepared on
the Consolidated Entity as a whole.
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Pan Asia Metals Limited | 2023 Annual Report
25
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
Note 5. Employment expenses
Wages and salaries
Employer’s contribution to defined contribution plans
Share based payment
Consolidated
2023
US$
692,688
22,700
146,577
2022
US$
473,561
35,933
118,270
861,965
627,764
In 2023, share based payment includes an unpaid portion of US$20,145 which was accounted in the
accrued expenses as disclosed in Note 14.
Note 5.1 Corporate and administration expenses
During the year, corporate and administration expenses of US$1,267,793 includes expenses of $926,149
incurred towards extensive business development program. US$649,376 of the total business
development expenses were incurred towards tenement acquisition program in Chile, forming the Tama
Atacama Lithium Project.
During the year, the Consolidated Entity has incurred purchase option fee of US$ 200,000 as part of
business development expenses for option payment of binding Option Agreements to purchase 100% of
the Tama Atacama Lithium Brine Project. In order to keep the Purchase Option offered valid, for each
year that the Agreement is in force, the Consolidated Entity must pay annually to the contracting party the
amount of US$200,000 from the effective date of the agreement until its termination.
Note 6. Income tax expense
Consolidated
2023
US$
2022
US$
Numerical reconciliation of income tax expense and tax at
the statutory rate
Loss before income tax expense
(3,339,284)
(2,046,517)
Tax at the statutory tax rate of 17% (2022: 17%)
(567,678)
(347,908)
Effects of:
- Non-deductible expenses
- Deferred tax assets not recognised
35,796
531,882
49,076
298,832
-
-
The Consolidated Entity has deferred tax assets arising from unrecognised tax losses of US$ 3,210,052
(2022: US$2,678,169) at the reporting date which can be carried forward and used to offset against
future taxable income subject to meeting certain statutory requirements by those companies with
unrecognised tax losses in their respective countries of incorporation. The tax losses have no expiry
date. The deferred tax asset has not been recognised in the statements of financial position as it is not
probable that future taxable profits will be sufficient to allow the related tax benefits to be utilised.
26
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Pan Asia Metals Limited | 2023 Annual Report
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
Note 7. Cash at banks and deposits
Consolidated
Company
2023
US$
2022
US$
2023
US$
2022
US$
Cash at banks
Restricted bank deposits
54,852
65,286
905,607
64,491
2,617
-
791,545
-
120,138
970,098
2,617
791,545
As at 31 December 2023, the Consolidated Entity has pledged fixed deposits of US$65,286 (US$64,491)
as collateral for bank guarantees issue for obligation of the performance under the contract with
Department of Primary Industries and Mines (DPIM).
For the purpose of presenting the statement of cash flows, cash and cash equivalents comprise the
following at the end of the financial year:
Cash at banks and deposits
Less: Restricted bank deposits
Note 8. Other receivables
Current
Other receivables
Third parties
-
-
Subsidiaries
- GST receivable
VAT receivable
-
Less: Loss allowance
Non-current
Refundable deposits
Consolidated
2023
US$
120,138
(65,286)
2022
US$
970,098
(64,491)
54,852
905,607
Consolidated
Company
2023
US$
2022
US$
2023
US$
2022
US$
4,922
-
6,138
186,036
197,096
243
-
9,337
120,814
-
2,523,540
6,138
-
130,394
(486,627)
2,043,051
-
1,546,640
9,337
-
(559,764)
996,213
20,224
19,911
-
-
217,320
150,305
2,043,051
996,213
The balances due from subsidiaries are non-trade in nature, unsecured, interest-free and repayable on
demand.
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Pan Asia Metals Limited | 2023 Annual Report
27
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
Note 8. Other receivables (continued)
At the end of the reporting period, loss allowance made on other receivables from subsidiaries is US$
486,627 (2022: US$559,764) as the expected risks of default on receivables at the end of the reporting
date are significant and management is doubtful of the recoverability. Accordingly, for the purpose of
impairment assessment of this receivables, the loss allowance is measured at the lifetime expected credit
losses (ECL)-credit impaired of the amount receivable.
The movement in loss allowance for other receivables are as follows:
Company
2023
US$
559,764
(73,137)
2022
US$
559,764
-
486,627
559,764
Office
equipment
US$
102,176
38,741
(2,451)
138,466
-
901
139,367
25,925
19,472
(470)
44,927
21,626
4,527
71,080
93,539
68,287
Beginning and end of the financial year
Less: Reversal of loss allowance
Note 9. Plant and equipment
Consolidated
Cost
At 1 January 2022
Additions
Currency translation differences
At 31 December 2022
Additions
Currency translation differences
At 31 December 2023
Accumulated depreciation
At 1 January 2022
Depreciation charge
Currency translation differences
At 31 December 2022
Depreciation charge
Currency translation differences
At 31 December 2023
Net carrying amount
At 31 December 2022
At 31 December 2023
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Pan Asia Metals Limited | 2023 Annual Report
28
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
Note 9. Plant and equipment (continued)
Company
2023
Cost
At 1 January 2022, 31 December 2022 and 31 December 2023
Accumulated depreciation
At 1 January 2022
Depreciation charge for the year
At 31 December 2022
Depreciation charge for the year
At 31 December 2023
Net carrying amount
At 31 December 2022
At 31 December 2023
Note 10. Leases
Office
equipment
US$
5,773
2,419
559
2,978
1,229
4,207
2,795
1,566
Nature of the Consolidated Entity’s leasing activities – as a lessee
Leasehold properties
The Consolidated Entity leases office space for the purpose of back office operations. The lease term is 3
years (2022 :3 years). The Consolidated Entity’s obligations are secured by the lessors’ title to the leased
assets.
There is no externally imposed covenant on the lease arrangements.
(a)
Carrying amounts
Right-of-use assets
Consolidated
2023
US$
2022
US$
Leasehold properties
49,803
72,036
(b)
Depreciation charged during the year
Consolidated
2023
US$
2022
US$
Leasehold properties
23,816
24,804
29
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Pan Asia Metals Limited | 2023 Annual Report
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
Note 10. Leases (continued)
Nature of the Consolidated Entity’s leasing activities –as a lessee (continued)
(c)
Interest expense
Interest expense on lease liabilities
(d)
Lease expense not capitalised in lease liabilities
Lease expense – short-term leases
Consolidated
2023
US$
4,297
Consolidated
2023
US$
4,650
2022
US$
637
2022
US$
2,627
(e)
(f)
Total cash outflow for the leases in 2023 is US$ 26,413 (2022: US$26,805).
Carrying amounts of right-of-use assets
Consolidated
Leasehold
properties
US$
72,036
(23,816)
1,583
49,803
24,804
72,036
(24,804)
72,036
2023
US$
2022
US$
24,246
25,558
49,804
22,298
49,738
72,036
At 1 January 2023
Depreciation for the financial year
Exchange differences
At 31 December 2023
At 1 January 2022
Addition
Depreciation for the financial year
At 31 December 2022
(g)
Lease liabilities
Lease liabilities (secured):
Current
Non-current
52
Pan Asia Metals Limited | 2023 Annual Report
30
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
Note 10. Leases (continued)
Nature of the Consolidated Entity’s leasing activities –as a lessee (continued)
(g)
Lease liabilities (continued)
The reconciliation of movements of the Consolidated Entity’s liabilities to the Consolidated
Entity’s cash flows arising from financing activities is presented below:
2023
Lease liabilities
2022
Lease liabilities
At
1 January
US$
Addition
US$
Repayments
US$
Interest
expense
US$
Other
US$
At 31
December
US$
72,036
-
(26,413)
4,297
(116)
49,804
26,168
72,036
(26,805)
637
-
72,036
(h)
Future cash outflow which are not capitalised in lease liabilities
The lease of office premise contains extension period, for which the related lease payments had
not been included in lease liabilities as the Consolidated Entity is not reasonably certain to
exercise this extension option. The Consolidated Entity negotiates extension option to optimise
operational flexibility in terms of managing the asset used in the Consolidated Entity’s operations.
The extension option is exercisable by the Consolidated Entity and not by the lessor.
Note 11. Exploration and evaluation assets
Consolidated
Company
2023
US$
2022
US$
2023
US$
2022
US$
Exploration and evaluation assets
at cost
11,999,831
9,686,898
-
-
Balance at 1 January 2022
Expenditure during the year
Allowance for impairment loss
Exchange differences
Balance at 31 December 2022
Expenditure during the year
Exchange differences
Balance at 31 December 2023
Consolidated
US$
Company
US$
7,464,621
2,420,214
(23,207)
(174,730)
9,686,898
2,302,006
10,927
11,999,831
-
-
-
-
-
-
-
-
The expenditure during the period was predominantly in respect of costs incurred on the Khao Soon
Tungsten Project and Reung Kiet Lithium Project.
53
Pan Asia Metals Limited | 2023 Annual Report
31
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
Note 11. Exploration and evaluation assets (continued)
The movement in loss allowance for exploration and evaluation assets are as follows:
Beginning of the financial year
Add: Loss allowance
End of the financial year
Consolidated
2023
US$
2022
US$
23,207
-
23,207
-
23,207
23,207
In 2022, impairment loss of US$ 23,207 on exploration and evaluation assets was recognised for a
discontinued project.
Note 12. Investments in subsidiaries
Equity investments at cost
Beginning of the financial year
Add: addition
End of the financial year
Company
2023
US$
2022
US$
10,281,335
1,396,425
7,975,115
2,306,220
11,677,760
10,281,335
The Consolidated Entity has the following subsidiaries as at 31 December 2023 and 2022:
Name
Principal activities
Country of
business/
incorporation
Proportion of ordinary shares
directly held
by Consolidated Entity
2022
2023
%
%
Held by the Company
Pan Asia Metals (Thailand) Co. Ltd.
Investment holding
Thailand
Pan Asia Metals Pty. Ltd.
Minerals mining including exploration
analysis and inspection
Australia
Pan Asia Metals (Malaysia) Sdn. Bhd. Minerals mining including exploration
Malaysia
analysis and inspection
New Energy Metals Pte Ltd (formerly
known as Mandalay Mining and
Metals Pte. Ltd).
Petroleum, mining and prospecting
services
Singapore
100
100
100
100
100
100
100
100
Lithium Chemical Holdings Sdn. Bhd. Minerals mining including exploration
Malaysia
100
100
analysis and inspection
Held by Pan Asia Metals (Thailand) Co. Ltd.
Pan Asia 1 Metals (Thailand) Co. Ltd Minerals mining including exploration
Thailand
analysis and inspection
Pan Asia 2 Metals (Thailand) Co. Ltd Minerals mining including exploration
Thailand
analysis and inspection
100
100
100
100
Pan Asia 3 Metals (Thailand) Co. Ltd Minerals mining including exploration
Thailand
100
100
1
2
3
4
5
6
7
8
analysis and inspection
32
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Pan Asia Metals Limited | 2023 Annual Report
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
Note 12. Investments in subsidiaries (continued)
Name
Principal activities
9
10
11
12
Held by the Company
Pan Asia 4 Metals (Thailand) Co. Ltd Minerals mining including exploration
analysis and inspection
Siam Industrial Metal Company
Limited
Minerals mining including exploration
analysis and inspection
Thai Mineral Ventures Company
Limited
Minerals mining including exploration
analysis and inspection
Held by New Energy Metals Pte. Ltd.
First Light Mandalay Mining and
Metals Company Limited
Minerals mining including exploration
analysis and inspection
Country of
business/
incorporation
Proportion of ordinary shares
directly held
by Consolidated Entity
2022
2023
%
%
Thailand
Thailand
Thailand
100
100
100
100
100
100
Myanmar
100
100
13
Pan Asia Metals Chile SpA*
Minerals mining including exploration
analysis and inspection
Chile
100
Held by Pan Asia Metals Chile SpA
La Tirana Uno SpA*
14
15
La Tirana Dos SpA*
Minerals mining including exploration
analysis and inspection
Minerals mining including
exploration analysis and inspection
Chile
Chile
100
100
*These companies were newly incorporated by the Group during the year.
-
-
-
Note 13. Other payables
Other payables
Advance received from director
Consolidated
Company
2023
US$
850,852
444,643
1,295,495
2022
US$
2023
US$
2022
US$
136,076
-
136,076
301,373
444,643
746,016
59,746
-
59,746
The amounts are unsecured and are usually paid within 30 days of recognition.
Advance received from director during the year is for subscription of the shares in the following
financial year.
55
Pan Asia Metals Limited | 2023 Annual Report
33
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
Note 14. Accrued expenses
Current
Directors’ fee
Professional fee
Other accrued expenses
Non-current
Provision of employee benefits
Note 15. Share capital
Consolidated
Company
2023
US$
2022
US$
2023
US$
2022
US$
277,879
41,101
15,553
334,533
221,165
29,850
175,722
426,737
277,879
41,101
-
318,980
221,165
29,850
251,015
38,214
28,068
-
-
372,747
454,805
318,980
251,015
Consolidated and Company
2023
Shares
2022
Shares
2023
US$
2022
US$
Ordinary shares
167,816,778
146,855,590
16,725,974
13,072,507
Movements in ordinary share capital
2023
Beginning of financial year
Placement of shares
Shares issued in lieu of professional fees
Shares issued in lieu of directors’ fees
Shares issued in lieu of marketing services
Cost of capital raising
No. of ordinary
shares
Amount
146,855,590
19,509,999
160,714
495,131
795,344
-
US$
13,072,507
3,595,160
30,105
152,802
79,155
(203,755)
End of financial year
167,816,778
16,725,974
2022
Beginning of financial year
Shares issued to directors
End of financial year
No. of ordinary shares
146,593,992
261,598
Amount
US$
12,974,382
98,125
146,855,590
13,072,507
All issued ordinary shares are fully paid. There is no par value for these ordinary shares.
Fully paid ordinary shares carry one vote per share and carry a right to dividends as and when declared
by the Company.
56
Pan Asia Metals Limited | 2023 Annual Report
34
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
Share based payment
Expenses recognised in the financial statements
The expense in respect of equity-settled share-based payment plans recognized in the financial
statements is shown in the following table:
Professional fees
Marketing services
Directors’ fee
Consolidated
2023
US$
2022
US$
30,105
79,155
152,802
262,062
-
-
98,125
98,125
Capital risk management
The Consolidated Entity's objectives when managing capital is to safeguard its ability to continue as a
going concern, so that it can provide returns for shareholders and benefits for other stakeholders and to
maintain an optimum capital structure to reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net
debt is calculated as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the Consolidated Entity may adjust the amount of
dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce
debt.
Note 16. Reserves
Consolidated
Company
2023
US$
2022
US$
2023
US$
2022
US$
Foreign currency translation reserve
(97,227)
(151,038)
-
-
Foreign currency reserve
The reserve is used to recognise exchange differences arising from the translation of the financial
statements of foreign operations to United States dollars.
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Pan Asia Metals Limited | 2023 Annual Report
35
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
Note 17. Financial instruments
Financial risk management objectives
The Consolidated Entity's activities expose it to a variety of financial risks. The Consolidated Entity's
overall risk management program focuses on the unpredictability of financial markets and seeks to
minimise potential adverse effects on the financial performance of the Consolidated Entity. The
Consolidated Entity uses different methods to measure different types of risk to which it is exposed.
Risk management is carried out by the Board of Directors ('the Board'). These policies include
identification and analysis of the risk exposure of the Consolidated Entity and appropriate procedures,
controls and risk limits.
Market risk
Foreign currency risk
The Consolidated Entity undertakes certain transactions denominated in foreign currency and is exposed
to foreign currency risk through foreign exchange rate fluctuations.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and
financial liabilities denominated in a currency that is not the entity's functional currency. The risk is
measured using sensitivity analysis and cash flow forecasting.
The Consolidated Entity has exposure to fluctuations between Australian dollar, Singapore dollar and the
Thai Baht.
The carrying amount of the Consolidated Entity's and Company's foreign currency denominated financial
assets and financial liabilities at the reporting date were as follows:
2023
Consolidated
Cash at banks and deposits
Other receivables – third parties
Other payables
Lease liabilities
Accrued expenses
Net financial (liabilities)/assets
Less: Net financial liabilities/(assets)
denominated in the respective
entities’ functional currency
Currency exposure
United
States Dollar
1,139
6,381
(258,083)
-
(45,000)
(295,563)
Thai Baht
114,854
18,765
(398,686)
(49,804)
(53,764)
(368,635)
Australian
Dollar
Singapore
Dollar
Total
2,633
-
(624,705)
-
(194,668)
(816,740)
1,512
-
(14,021)
-
(41,101)
(53,610)
120,138
25,146
(1,295,495)
(49,804)
(334,533)
(1,534,548)
295,563
-
368,635
-
30,179
(786,561)
-
(53,610)
694,377
(840,171)
58
Pan Asia Metals Limited | 2023 Annual Report
36
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
Note 17. Financial instruments (continued)
Market risk (continued)
2023
Company
United
States Dollar
Thai Baht
Australian
Dollar
Singapore
Dollar
Total
Cash at banks and deposits
Other receivables
Other payables
Accrued expenses
Net financial (liabilities)/assets
Less: Net financial liabilities/(assets)
denominated in the respective
entities functional currency
Currency exposure
231
2,036,913
(180,560)
(45,000)
1,811,584
(1,811,584)
-
-
-
-
-
-
-
-
874
-
(551,435)
(232,879)
(783,440)
1,512
-
(14,021)
(41,101)
(53,610)
2,617
2,036,913
(746,016)
(318,980)
974,534
-
(783,440)
-
(53,610)
(1,811,584)
(837,050)
2022
Consolidated
Cash at banks and deposits
Other receivables – third parties
Other payables
Lease liabilities
Accrued expenses
Net financial (liabilities)/assets
Less: Net financial liabilities/(assets)
denominated in the respective
entities’ functional currency
Currency exposure
United
States Dollar
39,364
243
(8,453)
-
(49,115)
(17,961)
Thai Baht
132,898
19,911
(450)
(72,036)
(203,790)
(123,467)
Australian
Dollar
Singapore
Dollar
Total
789,960
-
(117,079)
-
(172,050)
500,831
7,876 970,098
20,154
(136,076)
(72,036)
(454,805)
327,335
-
(10,094)
-
(29,850)
(32,068)
17,961
-
123,467
-
30,179
531,010
-
(32,068)
171,607
498,942
2022
Company
United
States Dollar
Thai Baht
Australian
Dollar
Singapore
Dollar
Total
Cash at banks and deposits
Other receivables
Other payables
Accrued expenses
Net financial (liabilities)/assets
Less: Net financial liabilities/(assets)
denominated in the respective
entities functional currency
Currency exposure
36,101
986,876
(5,144)
(49,115)
968,718
(968,718)
-
-
-
-
-
-
-
-
747,568
-
(44,508)
(172,050)
531,010
7,876
-
(10,094)
(29,850)
(32,068)
791,545
986,876
(59,746)
(251,015)
1,467,660
-
531,010
-
(32,068)
(968,718)
498,942
59
Pan Asia Metals Limited | 2023 Annual Report
37
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
Note 17. Financial instruments (continued)
A 5% strengthening of the United Dollar against the following foreign currencies at the statement of
financial position date would increase/(decrease) net loss by the amounts shown below. This analysis
assumes that all other variables, in particular interest and tax rates, remain constant.
Consolidated
Increase/(Decrease)
2022
2023
Net loss
Net loss
Company
Increase/(Decrease)
2023
Net loss
2022
Net loss
(39,328)
39,328
(22,037)
22,037
(39,172)
39,172
(22,037)
22,037
2,680
(2,680)
1,331
(1,331)
2,680
(2,680)
1,331
(1,331)
Australian Dollar
- Strengthened
- Weakened
Singapore Dollar
- Strengthened
- Weakened
A 5% weakening of the United States Dollar against the above foreign currencies would have had the
equal but opposite effect to the amounts shown above, on the basis that all other variables remain
constant.
Credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in
financial loss to the Consolidated Entity. The Consolidated Entity adopts the policy of dealing only with
high credit quality counterparties.
As the Consolidated Entity and the Company do not hold collateral, the maximum exposure to credit risk
to each class of financial instruments is the carrying amount of that class of financial instruments
presented on the statement of financial position.
The Consolidated Entity and the Company held cash and cash equivalents with banks with high credit
ratings and are considered to have low credit risk. Other receivables and cash balances are measured on
12-month expected credit losses and subject to immaterial credit loss unless otherwise stated.
Liquidity risk
Vigilant liquidity risk management requires the Consolidated Entity to maintain sufficient liquid assets
(mainly cash and cash equivalents) and available borrowing facilities to be able to pay debts as and
when they become due and payable.
The Consolidated Entity manages liquidity risk by maintaining adequate cash reserves and available
borrowing facilities by continuously monitoring actual and forecast cash flows and matching the maturity
profiles of financial assets and liabilities.
60
Pan Asia Metals Limited | 2023 Annual Report
38
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
Note 17. Financial instruments (continued)
Remaining contractual maturities
The table below analyses non-derivative financial liabilities of the Consolidated Entity and the Company
into relevant maturity groupings based on the remaining period from the reporting date to the contractual
maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances
due within 12 months equal their carrying amounts as the impact of discounting is not significant.
Consolidated – 2023
Other payables
Accrued expenses
Lease liabilities
Total
Consolidated – 2022
Other payables
Accrued expenses
Lease liabilities
Total
Company – 2023
Other payables
Accrued expenses
Total
Company – 2022
Other payables
Accrued expenses
Total
1 year or less
US$
Between 1 to
3 years
US$
1,295,495
334,533
24,246
1,654,274
-
38,214
25,558
63,772
1 year or less
US$
Between 1
to 2 years
US$
Remaining
contractual
maturities
US$
1,295,495
372,747
49,804
1,718,046
Remaining
contractual
maturities
US$
136,076
426,737
26,624
589,437
-
28,068
53,248
81,316
136,076
454,805
79,872
670,753
1 year or less
US$
Between 1 to
2 years
US$
Remaining
contractual
maturities
US$
746,016
318,980
1,064,996
-
-
-
746,016
318,980
1,064,996
1 year or
less
US$
Between 1 to
2 years
US$
Remaining
contractual
maturities
US$
59,746
251,015
310,761
-
-
-
59,746
251,015
310,761
61
Pan Asia Metals Limited | 2023 Annual Report
39
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
Note 17. Financial instruments (continued)
Fair value of financial instruments
The carrying amounts of financial assets and liabilities with maturities of less than one year approximate
their respective fair values due to the relatively short-term maturities of these financial assets and
liabilities except for lease liabilities and employee benefit provision as disclosed in the Notes 10 and 14
respectively.
The Consolidated Entity and the Company assessed that any unadjusted fair value arising from non-
current accrual would be immaterial as the carrying amount approximate their fair value.
Note 18. Financial Instruments by category
The carrying amount of the different categories of financial instruments are as follows:
Consolidated
Company
2023
US$
2022
US$
2023
US$
2022
US$
120,138
25,146
145,284
970,098
20,154
990,252
2,617
2,036,913
2,039,530
791,545
986,876
1,778,421
1,295,495
334,533
49,804
1,679,832
136,076
454,805
72,036
662,917
746,016
318,980
-
1,064,996
59,746
251,015
-
310,761
Financial assets
At amortised cost
Cash at banks and deposits
Other receivables
Financial liabilities
At amortised cost
Other payables
Accrued expenses
Lease liabilities
Note 19. Auditors remuneration
Consolidated
2023
US$
2022
US$
41,101
27,287
-
68,388
35,546
23,799
647
59,992
Amounts paid to the auditors of the Consolidated Entity
Audit services
PKF-CAP LLP
-
- Other PKF network firm
-
CH International
Total
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Pan Asia Metals Limited | 2023 Annual Report
40
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
Note 20. Key management personnel disclosures
The aggregate compensation made to directors and other members of key management personnel of the
Consolidated Entity is set out below:
Short-term employee benefits
Post-employment benefits
Share-based payments*
Consolidated
2023
US$
2022
US$
397,364
22,700
146,577
405,194
35,933
118,270
566,641
559,397
* Share based payments represents the component of directors’ fee for the year ended 31 December
2023 that is paid or payable through the issue of the shares.
Note 21. Contingent liabilities
(a) The Company has following contingent liabilities towards Thai Goldfields NL as performance
payments related to tungsten production at the Khao Soon Tungsten Project:
(i)
(ii)
Thai Goldfields NL (TGF) will receive a A$2m cash payment upon first WO3 concentrate
production being achieved for a tungsten project on Special Prospecting Licence Application
No.1/2549 (TSPLA 1/2549) or its successor title over the historic Khao Soon Tungsten Mine; and
TGF will receive a A$2m cash payment upon first WO3 concentrate production being achieved for
a project on any tenement abutting TSPLA 1/2549 or any successor title.
(b) On 15 December 2021, the Company adopted the Bonus share plan for its employees. The scheme
allows for the issue of 250,000 shares per year for the next 4 years. This is a discretionary scheme
with the distribution to the staff based on the recommendation by management. As of 31 December
2023, there were 245,000 (2022: 210,000) bonus shares issued to the staff, accordingly a bonus
share expenses of US$60,773 (2022: US$50,781) was included in employment expense as
disclosed in Note 5.
Note 22. Related party transactions
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
(a) Related party transactions:
Consolidated
2023
US$
2022
US$
Company
2023
US$
2022
US$
Related parties
Office administration fee
-
47,803
-
-
63
Pan Asia Metals Limited | 2023 Annual Report
41
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
PAN ASIA METALS LIMITED AND ITS SUBSIDIARIES
DIRECTORS’ STATEMENT
For the financial year ended 31 December 2023
Note 23. Loss per share
Consolidated
2023
US$
2022
US$
Loss after income tax attributable to the owners of Pan Asia Metals
Limited
(3,339,284)
(2,046,517)
Weighted average number of ordinary shares used in calculating
basic and diluted earnings per share
156,395,398
146,726,583
Number
Number
Basic and diluted loss per share
Cent
Cent
(2.14)
(1.39)
Basic earnings per share
Basic earnings per share is calculated by dividing the loss attributable to the owners of Pan Asia Metals
Limited by the weighted average number of ordinary shares outstanding during the financial year.
Diluted earnings per share
There were no dilutive potential ordinary shares during the financial years ended 31 December 2023 and
2022.
Note 24. Events occurring after the reporting period
On 02 January 2024, the Company signs a formal documentation to acquire 100% interest in 1,200km2
Tama Atcama Lithium Brine Project.
The Company went into voluntary suspension in its securities from ASX on the 1 February, 2024 and the
Company expects the voluntary suspension will continue until the 4 April 2024.
On 22 February 2024, the Company announced the submission of re-application for the RK Lithium
project with the Government support.
As announced on ASX on 28 March 2024, the Company has received commitments to raised A$894,619
(Equivalent to USD 580,000) through its convertible note. The convertible notes will be issued for a term
of 12 months with a conversion price of A$0.15 per share to issue 5,964,127 securities in the future upon
conversion. Further the Company has also received an application for a further Note with a face value of
THB 1,000,000 (A$42,400) from Director Chanyapoon, which will be issued subject to Shareholder
approval at the Company’s Annual General Meeting. Funds raised will be used for working capital prior to
the completion of larger capital raise.
Note 25. Authorisation of financial statements
These financial statements were authorised for issue in accordance with a resolution of the Board of
Directors of Pan Asia Metals Limited on 28 March 2024.
64
Pan Asia Metals Limited | 2023 Annual Report
42
Shareholder Information
In accordance with ASX Listing Rule 4.10, the Directors provide the following information as at
08 March 2024.
Stock Exchange Quotation
The Company’s shares are quoted on the Australian Securities Exchange (ASX) under the code PAM.
Securities
PAM has fully paid ordinary shares on issue. As at 08 March 2024 there are no other classes of
shares on issue.
Top 20 largest shareholders
Rank Name
MR PAUL DAVID LOCK
Units
% of units
42,099,750
25.09%
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
SYDNEY EQUITIES PTY LTD
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