PolarX Limited
ABN 76 161 615 783
Annual Report
30 June 2024
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POLARX LIMITED
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ANNUAL REPORT 2024
CONTENTS
Page No
Corporate Directory
3
Review of Operations
4
Directors’ Report
21
Consolidated Statement of Profit or Loss and Other Comprehensive Income
30
Consolidated Statement of Financial Position
31
Consolidated Statement of Cash Flows
32
Consolidated Statement of Changes in Equity
33
Notes to the Consolidated Financial Statements
34
Consolidated Entity Disclosure
71
Directors’ Declaration
72
Auditor’s Independence Declaration
73
Independent Audit Report
74
Additional ASX Information
79
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POLARX LIMITED
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ANNUAL REPORT 2024
CORPORATE DIRECTORY
Directors
Mr. Mark Bojanjac
Executive Chairman
Dr. Jason Berton
Managing Director
Dr. Frazer Tabeart
Non-Executive Director
Mr. Robert Boaz
Non-Executive Director
Company Secretary
Mr. Ian Cunningham
Registered Office and Principal Place of Business
Unit 25, Level 3, 22 Railway Road
Subiaco WA 6008
Australia
Telephone: (+61 8) 9226 1356
Facsimile:
(+61 8) 9226 2027
Share Register
Computershare Investor Services Pty Ltd
Level 17
221 St Georges Terrace
Perth WA 6000 Australia
Telephone: 1300 850 505 (within Australia)
International: (61 8) 9415 4000
Stock Exchange Listing
Australian Securities Exchange
ASX Code: PXX
Auditor
Stantons International Audit and Consulting Pty Ltd
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
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POLARX LIMITED
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ANNUAL REPORT 2024
REVIEW OF OPERATIONS
During the financial year ended 30 June 2024 (FY2024) the Group continued to focus on the exploration and development of
its mineral projects, with key activities being:
•
Completion of an updated scoping study (2024 Scoping Study) into the development of its Alaska Range Copper
Gold Project (Alaska Range Project); which comprises both the Stellar Gold Copper Property (Zackly – 100%
interest) and the Caribou Dome Copper Property (Caribou Dome – 80-90% interest). The 2024 Scoping Study was
undertaken on the basis of the improvements in metals recovery and concentrate grades identified from additional
testwork, which delivered improved projected economic returns. The Group also completed a 1,061 metre core
drilling program at Caribou Dome in June 2024.
•
Results received from the RC drilling programs and follow up IP surveys at the Humboldt Range Gold-Silver Project
in Nevada, USA (Humboldt Range Project) in the latter part of the 2023 financial year. The Humboldt Range Project
comprises the Black Canyon and Fourth of July mineral claim groups.
Figure 1: PolarX’s US projects are situated in Nevada and Alaska
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POLARX LIMITED
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ANNUAL REPORT 2024
Alaska Range Project
2024 Scoping Study
In January 2024, the Company announced the results of the 2024 Scoping Study. The 2024 Scoping Study was based on
the results of copper concentrate flotation test-work undertaken by Ausenco Engineering Canada Inc. (Ausenco) during the
last quarter of 2023. Ausenco conducted a series of metallurgical tests designed to improve copper recovered via
conventional flotation of mineralised material from Caribou-Dome. Optimised test results showed a substantial improvement
in both recovered copper (to 87.9%) and the grade of concentrate produced (to 21.7%), across a 12-hole domain-weighted
composite sample representative of the mineralisation within Caribou Dome. The 2024 Scoping Study addressed and
quantified the significance of these two key improvements, without changing any other key inputs from the previous scoping
study which was announced in August 2023.
The 2024 Scoping Study revealed several key aspects:
•
The significant metallurgical improvements deliver boosted projected economic returns including1:
Pre-Tax NPV7 doubled from A$310M to A$625M
Pre-Tax IRR increased from 38.6% to 73.9%
Mine Life EBITDA increased from A$882M to A$1,269M
Average
annual
free
cashflow
over
9.5
years
mining
increased
from
A$82m to A$120M
Capital Payback reduced from 2.75 years to 1.6 years
•
Mining and processing are scheduled to commence at Caribou Dome with a high-grade open pit followed by
underground mining at Zackly which will be trucked to the proposed plant at Caribou Dome.
•
83% of the material currently proposed to be mined falls in the Measured and Indicated resource categories2.
•
Comminution testing indicates that the mineralisation at Caribou Dome is moderately soft, and the flotation
recoveries were achieved at a coarser primary grind sizes requiring less energy than in previous test-work.
•
Ongoing metallurgical test-work is intended to further enhance copper recovery at Caribou Dome and gold recovery
at Zackly.
•
Ongoing oxidative leaching and solvent extraction test work also shows potential to further boost copper recovery,
minimise freight costs and eliminate refinery charges.
•
Modest increases in copper and gold recoveries and/or concentrate grades could deliver a further uplift to projected
economics.
•
Modest resource extensions at either deposit and in particular Caribou Dome, could also significantly further
enhance projected economic returns.
•
Mineralisation is known to continue 150m below the current resource at Caribou Dome and a future underground
mine could again extend the modelled mine-life.
•
Revenue
from
copper
contributed
more
than
gold
or
silver
at
the
prevailing
commodity prices in January 2024. Sensitivity analysis indicates potential Project economics are most responsive
to the copper price, copper recovery and concentrate grades, and can be enhanced further by both infill and
extension drilling, by minimising mining waste-dilution and by continuing to improve recoveries via further
metallurgical test-work.
1 Key projected economic returns are shown on a 100% project basis, without financial leverage and assumed commodity prices of copper
– US$8,500/tonne; gold – US$1,900/oz; silver – US$25/oz and AUD: USD Exchange Rate of 0.65.
2 The Company concludes it has reasonable grounds for disclosing a production target which includes an amount of Inferred Mineral
Resources. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further
exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. Over the
planned 9.5 year life of the Project Measured and Indicated Resources account for 83% of the total tonnes mined. Inferred Mineral
Resources comprise only 17% of the production schedule.
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ANNUAL REPORT 2024
Key assumptions and outcomes of the 2024 Scoping Study were:
•
Caribou Dome mineral resource estimate of 7.2Mt @ 3.1% Cu and 6.5g/t Ag.
•
Zackly mineral resource estimate of 4.0Mt @ 1.1% Cu, 1.6g/t Au and 12.6g/t Ag.
•
Metallurgical recoveries of 90% copper, 79% gold and 80% silver from flotation at Zackly, and 87.9% copper and
70% silver recoveries from flotation at Caribou Dome
•
Processing scheduled to occur at 750ktpa at Caribou Dome followed by 600ktpa at Zackly over 9.5 years, with
mining commencing at Caribou Dome and then moving to Zackly, with mineralisation processed through a common
conventional sulphide flotation plant located at Caribou Dome.
•
Initial capital required of US$147m (including pre-strip and royalty buy-back)
•
Revenue of approximately US$1.491bn (A$2,294) over the forecast initial operating life
•
Average annual free cash flow of US$78m (A$120m) (undiscounted, pre-tax)
•
NPV7 (pre-tax) of approximately US$406m (A$625m).
•
IRR of 73.9% (pre-tax)
•
Payback of 1.6 years (post construction)
Sensitivity Analysis and Next Steps
Sensitivity analysis undertaken as part of the 2024 Scoping Study revealed and quantified key areas for potential cashflow,
NPV and IRR enhancement. Other than copper and gold prices, the most immediate scope for uplift in value are found in
resource extension and further improving concentrate grades and copper and gold recoveries.
Further Increase Copper Concentrate Grade and Recovery
Advancing metallurgical test work has the most immediate potential to deliver the greatest uplift in projected returns. Better
economic returns could be realised with even modest improvements in both copper recovery and concentrate grades at
Caribou Dome. Ongoing test-work on Caribou Dome mineralisation using oxidative leaching and solvent extraction also
show potential to further boost copper recovery and further minimise freight costs and eliminate refinery charges.
Accordingly, PolarX will continue to advance metallurgical test work to further enhance copper recoveries and optimise
projected operating margins at Caribou Dome.
Similarly, the metallurgical test work at Zackly is at an interim stage and is not yet optimised. It is more sensitive to the gold
price than the copper price and the current gold recovery based on test work to date is assumed at only 79%. Further
metallurgical testing and the examination and trial of alternative recovery options also planned at both Caribou Dome and
Zackly.
Resource Extension
Upside mineral resource expansion potential is evident and may be achieved with further successful drilling at both Caribou
Dome and Zackly.
Caribou Dome’s mineralised lenses remain open in all directions. Existing drilling includes mineralised intercepts 150m
below the currently calculated resource. Sensitivity analysis undertaken as part of the 2024 Scoping Study, indicates that if
further drilling extended the resource to that depth and an extra 2Mt was mined from underground this could yield a
US$130M( A$200M) increase in projected pre-tax NPV (+32%).
Analysis of drilling and the current Indicated mineral resource at Zackly also highlights several mineralised shoots that
plunge at depth and along-strike which have yet to be evaluated by drilling. Sensitivity analysis indicates that adding an extra
year’s material mined from Zackly along strike could yield a US$21M (A$32M) increase in projected pre-tax NPV (+5%).
Further resource extension drilling programs will be focussed in these specific areas.
Pre-Concentration of Mined Material
Reducing mined waste to increase the effective feed grade to a processing plant has several benefits in optimising both
operating cost and the scale of the plant itself. Selective ore sorting technology is gaining commercial acceptance and the
distinctly different properties of Caribou Dome’s massive sulphide mineralisation from its surrounding host material present
an opportunity. The Company will test the suitability of ore-sorting technology to pre-concentrate feed grades by eliminating
distinctly different surrounding waste material.
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ANNUAL REPORT 2024
2024 Exploration Program
In June 2024, the Company completed five holes (1,0631metres) of a core drilling program at Caribou Dome, which returned
exceptionally high-grade copper assays from the thick zones of copper-bearing massive sulphides (see Figures 2, 3 and 5).
Hole CD24-003 intersected 15.5m @ 7.4% copper and 21.4 g/t silver that included 8.1m @ 11.4% copper and 35.8 g/t silver
and 3.2m @ 6.2% copper and 7.5 g/t silver. Hole CD24-002 intersected 8.7m at 4.3% copper and 10.5 g/t silver, including
3.4m @ 7.6% copper and 20.7 g/t silver and 1.5m @ 5.7% copper and 7.0 g/t silver. These mineralised intersections are
beneath hole CD21-001 which previously intersected exceptionally high-grade copper, 19.1m @ 7.0 % Cu + 11.2 g/t Ag and
9.8m @ 6.8 %Cu + 7.8 g/t Ag in 2021 (for location refer to Figures 3 and 4).
The copper and silver grades intersected in both holes are significantly higher than the average resource grade for Caribou
Dome of 3.1% copper (refer Table 2) and is hosted within Lenses 5 and 6 that contain very high copper grades from surface
(see Figure 3).
CD24-001 intersected a narrow ‘slither’ of mineralisation that provided insightful fault offset information which was used
successfully to target the mineralisation intersected in CD24-002 and CD24-003. Core for holes CD24-004 and CD24-005
has been submitted for assay.
Figure 2. Finely laminated massive iron and copper sulphides at 126.0m depth on drill hole CD24-003. Scale bar = 5cm.
*In relation to the disclosure of visual mineralisation, the Company cautions that the massive sulphides are extremely fine
grained, making visual recognition of copper sulphide species difficult. Furthermore, the Company cautions that visual
estimates of mineral abundance should never be considered a proxy or substitute for laboratory analysis. Laboratory assay
results are required to determine the widths and grade of the visible mineralisation reported in preliminary geological logging.
Refer Table for the assay results received in relation to drill holes CD24-110, CD24-002 and CD24-003 (refer ASX
announcement of 3 September 2024).
The oriented diamond core drill program was designed to test high-grade mineralisation continuity further down dip. The
holes were drilled into zones of copper mineralisation comprising massive to semi-massive sulphides
Table 1: Drill intersections and assay results for massive sulphides at Caribou Dome
From
To
Down-Hole
Interval (m)
Est. True
Thickness (m)
Cu %
Ag ppm
CD24-001
96.01
97.51
1.5
1.1
0.6
-
CD24-002
116.92
125.58
8.7
6.1
4.3
10.5
Incl.
116.92
120.31
3.4
2.4
7.6
20.7
and
121.40
122.87
1.5
1.0
5.7
7.0
CD24-003
121.16
135.70
15.5
10.0
7.4
21.4
Incl.
123.14
130.3
8.1
5.2
11.4
20.7
and
132.51
135.70
3.2
2.1
6.2
7.5
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POLARX LIMITED
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ANNUAL REPORT 2024
Figure 3. Cross section for holes CD24-001 to CD24-005. Holes CD24-004 and CD24-005 intersected visible copper
mineralisation in the down dip extension of mineralisation announced for CD24-003, with assays expected later this
quarter. The copper mineralisation remains open at depth.
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ANNUAL REPORT 2024
Figure 4. Plan view showing location of drill holes from 2024, 2021, and historical drill holes. The dashed red line indicates
the approximate position of the inferred steep sinistral strike fault, which also likely has vertical displacement.
Key Observations from the FY2024 drilling program are as follows:
•
CD24-002 intersected mineralisation from 118.10 to 124.23m down-hole depths comprising massive to semi-massive
sulphides within calcareous and locally graphitic, fine-grained sediments (see Figure 5). The sulphides are extremely
fine grained and form thin laminations with very fine-grained calcareous argillite. Chalcopyrite (copper sulphide) occurs
as small blebs and filigree veinlets and as zones of very fine-grained massive sulphides within zones dominated by
pyrite (iron sulphide).
•
CD24-003 intersected semi-massive to blebby sulphides from 122.68m to 135.75m down-hole depths within
calcareous argillite and locally cleaner fine-grained limestone (see Figures 2 and 5). Sulphide mineralisation is again
extremely fine grained, making visual distinction between pyrite and chalcopyrite challenging.
•
CD24-001 intersected shale hosted massive sulphide mineralisation at 96.9m down-hole depth measuring 30 cm in
length and offset by a steep dipping fault with sinistral kinematic shear sense. The hole was terminated at 132.0m. The
next hole CD24-002 was positioned at 3050 azimuth, which was drilled to successfully intersect the ore in the hanging
wall of the fault.
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ANNUAL REPORT 2024
Figure 5. Massive sulphide mineralised intercepts in all core boxes from holes CD24-001, CD24-002 and CD24-003
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ANNUAL REPORT 2024
Alaska Range Project Background
The Alaska Range Project (Figure 6). is located approximately 250km northeast of Anchorage in Alaska, USA. It is readily
accessible by road – the Denali Highway passes within 20km of the Project and from there a purpose-built road provides
direct access to the historic underground exploration development at the Project.
The Alaska Range Project is a contiguous package covering 262km2 with ~35km strike length hosting extensive copper-
and gold-in-soil anomalism consistent with several mineralised districts, which comprises both the Stellar Gold Copper
Property (Stellar Project – 100% interest), and Caribou Dome Copper Property (Caribou Dome Project – 80-90% interest).
Figure 6. Location Map Alaska Range Project
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ANNUAL REPORT 2024
The 2024 Scoping Study was based on the updated mineral resource estimate for the Caribou Dome deposit, announced in
June 2023 of 7.2Mt @ 3.1% Cu and 6.5g/t Ag. This followed the announcement of an updated mineral resource estimate for
the Zackly deposit in October 2022 of 4.0Mt @ 1.1% Cu and 1.6g/t Au (refer Table 2 below):
Table 2: Alaska Range Project Resource Estimates (JORC 2012), 0.5% Cu cut-off
Resource
Category
Mt
Cu
%
Au
g/t
Ag
g/t
Contain
ed Cu
(t)
Contained
Cu
(M lb)
Contained
Au
(oz)
Contained
Ag
(oz)
ZACKLY
Indicated
2.5
1.2
1.9
13.9
30,700
68
155,000
1,120,000
Inferred
1.5
0.9
1.2
10.4
14,300
32
58,000
513,000
TOTAL
4.0
2.1
3.1
24.3
45,000
100
213,000
1,633,000
CARIBOU
DOME
Measured
1.0
3.9
-
8.6
39,800
88
-
284,000
Indicated
3.2
3.3
-
6.5
105,175
232
-
662,800
Inferred
3.0
2.6
-
5.7
79,400
175
-
552,000
TOTAL
7.2
9.8
-
20.8
224,375
495
1,498,800
COMBINED
TOTAL
11.2
11.9
3.1
45.1
269,375
595
213,000
3,131,800
Notes:
1.
Refer to the ASX announcement of 14 June 2023 for full details on the Caribou Dome Project Mineral
Resource estimate, including applicable technical information and reporting criteria.
2.
Refer ASX announcement of 17 October 2022 for full details on the Zackly Deposit Mineral Resource
estimate, including applicable technical information and reporting criteria.
Humboldt Range Project
2024 Exploration Program
During FY2024, the Company announced the results from the Induced Polarisation (IP) surveys undertaken at the Fourth of
July claims and Black Canyon claims during May-June 2023. The Company considers IP surveys to be the best technique
to assist in generating drill targets for higher grade bulk-tonnage and high grade sulphide related vein mineralisation.
The IP surveys have identified several strong chargeability and resistivity anomalies. Each anomaly coincides with PolarX’s
surface geochemical gold anomalies and known faults, providing further confidence to drill target areas.
Black Canyon
Seven east-west IP traverse lines were surveyed across known mineralisation trends at variable lengths, ranging from 1.3 to
1.7km and totalling 10.2km. A prominent 1.7km long chargeability anomaly extends from surface south of the Ridgeline fault
zone, a prospect previously identified by PolarX’s mapping and surface geochemistry programs. The Ridgeline target
consists of multiple gold-mineralised north-northeast trending veins extending in outcrop for 1.0km immediately north of the
IP survey area. Combined, this anomalous zone now extends for 1.0km across the Ridgeline and 1.7km south for a total
target of 2.7km. The entire length of the IP chargeability anomaly lies beneath the existing access road, which will assist drill
rig access and minimize ground disturbance.
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ANNUAL REPORT 2024
Figure 7. Plan view over Black Canyon showing inset 3D chargeability inversion model, gold soil samples and
mapped gold hosting vein structures (red vectors). The light grey line denotes the approximate location of traverse 5.
Note, inversion models are not topographically matched to terrain, for terrain corrected results see the IP traverse
section in Figure 8.
A section view of traverse line 5 shows the chargeability and resistivity anomalies extend to depths beyond 250m.
Extrapolating anomaly extensions beneath 250m exceeds the penetration reliability of this IP survey which was configured to
target responses to a 250m depth.
The coincidence of strong chargeability and resistivity anomalies fits the expected IP response for mineralisation observed in
the region, which is typically finely disseminated metal sulphides (conductive) and strong siliceous alteration (resistive).
Mineralisation has been previously described as hosted within finely disseminated arsenopyrite and pyrite crystals in drilling
results at Star Canyon (see ASX releases 5 July 2022 and 20 February 2023). The extensive Rochester Rhyolite unit
outcrops at surface where both the chargeability anomalies occur in traverse line 5.
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ANNUAL REPORT 2024
Figure 8. Regional perspective of the IP chargeability anomaly in relation to the gold soils anomaly and road access for
future drilling. View west-northwest to Florida Canyon Mine.
Figure 9. Chargeability and Resistivity profiles for line 5 shows strong anomalies commencing at surface and penetrating to
+250 m depth (looking northwards).
Road
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ANNUAL REPORT 2024
Fourth of July
Four east-west IP traverse lines between 3,000 and 3,500 metres in length were conducted at Fourth of July, totalling 13.6
km. Figure 10 shows the chargeability zones in the inversion model profiles across the entire survey. There are some very
strong chargeability anomalies throughout each traverse.
Figure 10. IP chargeability profiles and mapped fault traces (red lines) at FoJ. The northern most traverse shows a large
strong chargeability anomaly commencing from surface.
The chargeability anomalies at Fourth of July are strongest near surface and coincide well with the soil anomalies and
known NW trending fault structures. The chargeability anomalies however do not exhibit the same compelling depth
penetration as the Black Canyon results and are considered a lower priority drill target.
Humboldt Range Project Background
The Humboldt Range Project comprises 364 lode mining claims in Nevada in two claim groups: Black Canyon and Fourth of
July.
The Black Canyon claims at the northern end of Humboldt Range are less than 3km from the currently operating Florida
Canyon Mine, which hosts 5Moz gold (see Figures 9 and 10). The 400Moz silver / 3Moz gold Rochester Mine and the 4Moz
Spring Valley gold project are located just 15km and 9km respectively to the south of PolarX’s Fourth of July claims. Access
to the project is straightforward via roads off the I-80 Interstate Highway, which lies less than 15km to the west of the claims.
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ANNUAL REPORT 2024
Figure 11. Oblique 3D-view of the Black Canyon project overlaid with the gold geochemical soil anomaly and high-grade
vein samples.
Figure 12. PolarX’s Nevada claims are ideally located, adjacent to large scale operating mines and important road,
energy and workforce infrastructure. The Rochester Mine, Spring Valley project and Black Canyon all host gold & silver
mineralisation within north-south striking Rochester Rhyolite rock units.
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ANNUAL REPORT 2024
Humboldt Range contains geology consistent with bonanza-style epithermal gold-silver mineralisation and bulk mineable
epithermal gold-silver mineralisation, both of which are well known in Nevada. Widespread narrow vein mineralisation with
visible gold occurs within the claims and was historically mined via numerous adits and underground workings between 1865
and the 1927. Mineralisation occurs in swarms of high-grade epithermal quartz veins of varying thickness (reported from
1cm to 3m), either as isolated veins or as broad zones of sheeted/anastomosing veins within zones of intensely altered and
mineralised host rocks.
Mineralised Rochester Rhyolite Formation outcrops at surface throughout the Humboldt Range Projects and is in places
concealed beneath relatively thin overlying unmineralized Prida Limestone. Regionally the Rochester Rhyolite Formation
hosts multi-million-ounce gold and silver deposits at the nearby Rochester Mine and the Spring Valley projects.
Corporate
During FY2024, the Company raised a total of approximately $7.18 million (before costs) via:
(i)
the issue in April 2024 of 409,903,891 fully paid ordinary shares (Shares) at an issue price of 1.2 cents per Share to
raise ~$4.92 million, pursuant to a non-renounceable rights issue (2024 Entitlement Offer). Under the terms of the
2024 Entitlement Offer, eligible shareholders were able to subscribe for one (1) new Share for every four (4) existing
Shares;
(ii)
the issue in September 2023 of 65,101,367 Shares at an issue price of 1.1 cents per Share to raise ~$716k, pursuant
to a non-renounceable rights issue (2023 Entitlement Offer). Under the terms of the 2023 Entitlement Offer, eligible
shareholders were able to subscribe for one (1) new Share for every six (6) existing Shares;
(iii) the issue in August 2023 of 140,605,262 Shares at an issue price of 1.1 cents per Share to raise ~$1.55 million,
pursuant to a placement.
Subsequent to year-end the Company has raised a further $3.25 million (before costs) pursuant to the placement of
300,018,500 Shares at an issue price of 1 cent per Share on 6 August 2024 and a further 25,000,000 Shares at an issue
price of at 1 cent per Share on 9 August 2024.
The Company’s major shareholder, Northern Star Resources Limited, participated in each of the financings detailed above
and now holds 15.98% of the Company’s total issued capital.
As of the date of this report, the Company has on issue 2,375,500,978 Shares and 42,868,907 unlisted options.
Material Business Risks
The Group’s principal activity is mineral exploration and development and companies in this industry are subject to many
and varied kinds of risks. While risk management cannot eliminate the impact of all potential risks, the Group strives to
manage such risks to the extent possible and practical. Following are the material business risks which the Group believes
are most important in the context of the Group’s business.
General Risks
Contractual Risk
Some of the Group's mineral properties are subject to option or lease agreements between the Company (or its respective
subsidiaries), as the case may be, and the owners of such mineral properties or an interest in such mineral properties. The
Group will be reliant on the owners of such mineral properties or interests therein complying with their contractual obligations
under the option agreements to maintain the Group's interest in such mineral properties in full force and effect.
Access to Financing
The Group is at the exploration stage with no revenue being generated from the exploration activities on its respective
mineral properties. The Company may therefore have to raise the capital necessary to undertake or complete future
exploration work, including drilling programs. There can be no assurance that debt or equity financing will be available or
sufficient to meet these requirements or for other corporate purposes or, if debt or equity financing is available, that it will be
on terms acceptable to the Company. Moreover, future activities may require the Group to alter its capitalization significantly.
An inability to access sufficient capital for operations could have a material adverse effect on the Group's financial condition,
results of operations or prospects. In particular, failure to obtain such financing on a timely basis could cause the Group to
forfeit its interest in its mineral properties, miss certain acquisition opportunities, or reduce or terminate its operations.
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Industry risks
Exploration and Development Risks
Few mineral properties which are explored are ultimately developed into producing mines. There can be no guarantee that
the estimates of quantities and qualities of minerals disclosed will be economically recoverable. Mineral exploration is
speculative in nature and there can be no assurance that any minerals discovered will result in the definition of a mineral
resource.
The economics of developing gold and other mineral properties is affected by many factors, including the cost of operations,
variations in the grade of minerals mined, fluctuations in metal markets, costs of processing equipment and such other
factors as government regulations, including regulations relating to royalties, allowable production, importing and exporting
of minerals and environmental protection. The long-term success of the Company depends on its ability to explore, develop
and commercially produce minerals from its mineral properties and to locate and acquire additional properties worthy of
exploration and development for minerals.
Changes to legislation and permits governing operations and activities of mining companies, or more stringent
implementation thereof, could have a material adverse impact on the Company and cause increases in capital expenditures
or production costs or reduction in levels of production at any future producing properties or require abandonment or delays
in the development of new mining properties.
Permits and licenses
The activities of the Group will be subject to government approvals, various laws governing prospecting, development, land
resumptions, production taxes, labour standards and occupational health, mine safety, toxic substances and other matters,
including issues affecting local native populations. Amendments to current laws and regulations governing operations and
activities of exploration and mining, or more stringent implementation thereof, could have a material adverse impact on the
business, operations and financial performance of the Group. Further, the mining licenses and permits issued in respect of
the Group's mineral properties may be subject to conditions which, if not satisfied, may lead to the revocation of such
licenses. In the event of revocation, the value of the Group's investments in its mineral properties may decline.
Title risks
The acquisition of title to resource properties or interests therein is a very detailed and time-consuming process. The Group's
mineral properties may be subject to prior unregistered agreements or transfers and title may be affected by undetected
defects.
Volatility of metal prices
The market price of any precious or base metal is volatile and is affected by numerous factors that will be beyond the
Group's control. Sustained downward movements in metal market prices could render less economic, or uneconomic, some
or all of the precious or base metal extraction and/or exploration activities to be undertaken by the Group.
Environmental risks
All phases of the mining business present environmental risks and hazards and are subject to environmental regulation
pursuant to a variety of international conventions and state and municipal laws and regulations. Environmental legislation
provides for, among other things, restrictions and prohibitions on spills, releases or emissions of various substances
produced in association with mining operations. The legislation also requires that wells and facility sites be operated,
maintained, abandoned and reclaimed to the satisfaction of applicable regulatory authorities. Compliance with environmental
legislation can require significant expenditures and a breach may result in the imposition of fines and penalties.
Mineral Resource estimates
Mineral resources that are not mineral reserves do not have demonstrated economic viability and there is no assurance that
they will ever be mined or processed profitably. Due to the uncertainty which may attach to mineral resources, there is no
assurance that inferred mineral resources will be upgraded to proven and probable mineral reserves as a result of continued
exploration.
General investment risks
Economic
General economic conditions, movements in interest and inflation rates and currency exchange rates may have an adverse
effect on the Group’s development and production activities, as well as on its ability to fund those activities.
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19
ANNUAL REPORT 2024
Additional requirements for capital
The Group’s capital requirements depend on numerous factors. Depending on the Group’s ability to generate income from
its operations, the Group may require further financing. Any additional equity financing may dilute shareholdings, and debt
financing, if available, may involve restrictions on financing and operating activities. If the Group is unable to obtain
additional financing as needed, it may be required to reduce the scope of its operations.
Climate risk
There are a number of climate-related factors that may affect the Group’s operations and proposed activities. In particular:
(i)
the emergence of new or expanded regulations associated with the transitioning to a lower-carbon economy and
market changes related to climate change mitigation. The Group may be impacted by changes to local or
international compliance regulations related to climate change mitigation efforts, or by specific taxation or penalties
for carbon emissions or environmental damage. These examples sit amongst an array of possible restraints on
industry that may further impact the Group and its profitability; and
(ii)
climate change may cause certain physical and environmental risks that cannot be predicted by the Group, including
events such as increased severity of weather patterns and incidences of extreme weather events and longer-term
physical risks such as shifting climate patterns.
Additional Disclosure
Annual Mineral Resource Statement
The Company’s Mineral Resource Estimate for the Alaska Range Project is detailed in Table 2 on page 12 of this report.
There was no change to the Mineral Resource Estimate during FY2024. The Company’s Mineral Resources are reported in
accordance with the 2012 JORC Code. The Company has no Ore Reserve estimates at the date of this report.
The Company ensures that its Mineral Resource Estimates are subject to governance arrangements and internal controls
and independent external reviews of estimation procedures and results are carried out by a team of experienced qualified
technical personnel. These reviews have not identified any material issues.
The Company’s procedures for drilling, sampling techniques and analysis have been reviewed and audited by independent
experts. Assays are produced by independent, internationally accredited laboratories with a QA/QC program to inspect and
assess levels of accuracy and precision.
The geological model used for the current Mineral Resource Estimate was prepared using Leapfrog Geo and Micromine
software that included all available drill hole data as well as surface mapping. The geological models and Mineral Resource
Estimate were independently reviewed by Sonny Consulting.
All drill hole data is stored with a third party within a commercially available purpose designed database, DataShed and
subjected to industry standard and validation procedures. Quality control on resource drill programs have been undertaken
to industry standards with implementation of appropriate drilling type, survey data collection, assay standards, sample
duplicates and repeat analyses.
The resource reports and supporting data were subjected to internal analysis and peer review before release.
Other Information
There is information in this report relating to:
(i)
the Mineral Resource Estimate for the Caribou Dome Deposit, which was previously announced on 14 June 2023;
(ii)
the Mineral Resource Estimate for the Zackly Deposit, which was previously announced on 17 October 2022; and
(iii)
exploration results which were previously announced on 5 July, 8 August and 5 October 2022, 20 February and 15
August 2023, 26 June and 3 September 2024.
Other than as disclosed in those 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 have not materially changed. The Company also 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.
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20
ANNUAL REPORT 2024
All references to the 2024 Scoping Study and its outcomes in this report relate to the announcement of 18 January 2024
titled “2024 Alaska Range Scoping Study”. Please refer to that announcement for full details and supporting information.
Forward Looking Statements:
Information included in this report constitutes forward-looking statements. When used in this announcement, forward-looking
statements can be identified by words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “future”, “intend”, “may”,
“opportunity”, “plan”, “potential”, “project”, “seek”, “will” and other similar words that involve risks and uncertainties.
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 licences and permits and diminishing
quantities or grades of resources and 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 as well as other uncertainties and risks set
out in the announcements made by the Company from time to time with the Australian Securities Exchange.
Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties,
assumptions and other important factors, many of which are beyond the control of the Company, its directors and
management of the Company that could cause the Company’s actual results to differ materially from the results expressed
or anticipated in these statements.
The Company cannot and does not give any assurance that the results, performance or achievements expressed or implied
by the forward-looking statements contained in this report will actually occur and investors are cautioned not to place undue
reliance on these forward-looking statements. The Company does not undertake to update or revise forward-looking
statements, or to publish prospective financial information in the future, regardless of whether new information, future events
or any other factors affect the information contained in this report, except where required by applicable law and stock
exchange listing requirements.
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21
ANNUAL REPORT 2024
DIRECTORS
The names, qualifications and experience of the Directors in office during or since the end of the financial year are as
follows:
Mark Bojanjac
Executive Chairman
Qualifications
BCom, ICAA
Experience
Mr Bojanjac is a Chartered Accountant with over 25 years’ experience in developing resource
companies. Mr Bojanjac was a founding director of Gilt-Edged Mining Limited which discovered one of
Australia’s highest-grade gold mines and was managing director of a public company which successfully
developed and financed a 2.4m oz gold resource in Mongolia.
Mr Bojanjac was most recently Chief Executive Officer of Adamus Resources Limited and oversaw its
advancement from an early-stage exploration project through its definitive feasibility studies and
managed the debt and equity financing of its successful Ghanaian gold mine.
Interest in shares
4,974,998 ordinary shares
Options
5,000,000 unlisted options exercisable at $0.058 on or before 27 October 2025
Other Current Directorships
Kula Gold Limited
Former Directorships in last
3 years
Metallica Minerals Limited (resigned 8 July 2024)
Jason Berton
Managing Director
Qualifications
Ph.D, B.Sc (Hons), MAusIMM
Experience
Dr. Berton is a geologist with over 19 years’ mining and exploration experience including working for
Homestake, Barrick and BHP Billiton and SRK Consulting. Dr Berton has also previously spent two years
in private equity investment and four years as Managing Director of ASX- listed Estrella Resources.
Dr. Berton holds two Degrees, a Bachelor of Economics and a Bachelor of Science (Hons) plus a PhD in
Structural Geology, all from Macquarie University.
Interest in shares
22,005,795 ordinary shares.
Options
5,000,000 unlisted options exercisable at $0.058 on or before 27 October 2025
Other Current Directorships
Lithium Plus Minerals Limited
Eastern Metals Limited
Former Directorships in last
3 years
Nil
Frazer Tabeart
Non-Executive Director
Qualifications
Ph.D, B.Sc (Hons), ARSM, MAIG
Experience
Dr. Tabeart is a geologist with over 30-years’ international experience in exploration and project
development, with strong technical background in porphyry copper-gold systems in SE Asia, SW Pacific,
the American Cordillera and central and northern Asia. After spending 16 years with WMC Resources
and managing exploration portfolios in the Philippines, Mongolia and Africa, he left to join the Mitchell
River Group where he is currently a Director and Principal.
Dr. Tabeart has served on ASX-listed Company Boards at Executive level over last 15 years.
Interest in shares
8,671,788 ordinary shares
Options
5,000,000 unlisted options exercisable at $0.058 on or before 27 October 2025
Other Current Directorships
Alma Metals Limited
Former Directorships in last
3 years
Arrow Minerals Limited (resigned 15 February 2024)
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POLARX LIMITED
22
ANNUAL REPORT 2024
Robert Boaz
Independent Non-Executive Director
Qualifications
Honors B.A., M.A. Economics
Experience
Mr Boaz graduated with honours from McMaster University of Hamilton, Ontario with a Bachelor of Arts
in Economics and has a Masters Degree in Economics from York University in Toronto. He is a highly
respected financial and economic strategist in Canadian bond and equity markets with experience
related to equity research, portfolio management, institutional sales and investment banking.
Mr Boaz has over 20 years’ experience in the finance industry, most recently as Managing Director,
Investment Banking with Raymond James Ltd and Vice-President, Head of Research and in-house
portfolio strategist for Dundee Securities Corporation.
Mr Boaz is the former President & CEO of Aura Silver Resources Inc.
Interest in shares
Nil
Options
Nil
Other Current Directorships
Nil
Former Directorships in last
3 years
Nil
RESULTS OF OPERATIONS
The Group’s total comprehensive loss for the financial year attributable to the members was $12,010,462 (2023:
$467,422).
DIVIDENDS
No dividend was paid or declared by the Group in the year and up to the date of this report.
CORPORATE STRUCTURE
PolarX Limited is an Australian registered public company limited by shares.
NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES
During the financial year, the Group’s principal activity was mineral exploration. The Group currently holds interests in
copper, gold and silver exploration projects in Nevada and Alaska USA. During the 2024 financial year, there were no
changes in the principal activities from the prior financial year.
EMPLOYEES
The Group had one employee at 30 June 2024 (2023: one employee).
REVIEW OF OPERATIONS
A detailed summary of the Group’s operations during the financial year, including significant changes in the state of
affairs, are detailed in the Review of Operations.
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
On 26 July 2024, 5,000,000 options with an exercise price of $0.05 lapsed.
On 6 August 2024, the Company issued 300,018,500 Shares at an issue price of $0.01 per Share pursuant to a
placement, which raised $3,000,185 (before costs). On 9 August 2024, the Company placed a further 25,000,000
Shares at an issue price of at $0.01 per Share, which raised $250,000 (before costs).
No other significant events have occurred subsequent to the balance sheet date but prior to the date of this report that
would have a material impact on the consolidated financial statements.
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ANNUAL REPORT 2024
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Group will continue to carry out its business plan, by:
•
continuing to explore the Alaska Range and Humboldt Range projects and advance the projects towards
development;
•
continuing to meet its commitments relating to exploration tenements and carrying out further exploration,
permitting and development activities; and
•
prudently managing the Group’s cash to be able to take advantage of any future opportunities that may arise to
add value to the business.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Group carries out operations that are subject to environmental regulations under Federal and State legislation in the
USA. The Group has procedures in place to ensure regulations are adhered to. The Group is not aware of any breaches
in relation to environmental matters.
SHARE OPTIONS
There were 47,868,907 unlisted options over unissued Shares at 30 June 2024.
During the 2024 financial year:
•
no options were issued;
•
91,552,685 listed and 3,000,000 unlisted options lapsed; and
•
no options were exercised.
Since the end of the financial year no options have been exercised and 5,000,000 options with an exercise price of $0.05
expired on 26 July 2024.
The details of the options on issue at the date of this report are as follows:
Number
Exercise Price
Expiry Date
Unlisted Options
15,000,000
1912 436
$0.058
27 October 2025
19,127,436
$0.03
1 April 2025
8,741,471
$0.016
8 February 2026
No option holder has any right under the options to participate in any other share issue of the Company or any other
entity.
There were 2,375,500,978 Shares on issue at the date of this report.
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POLARX LIMITED
24
ANNUAL REPORT 2024
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has made agreements indemnifying all the Directors and Officers of the Company against all losses or
liabilities incurred by each Director or Officer in their capacity as Directors or Officers of the Company to the extent
permitted by the Corporations Act 2001. The indemnification specifically excludes wilful acts of negligence. The
Company paid insurance premiums in respect of Directors’ and Officers’ Liability Insurance contracts for current Officers
of the Company, including Officers of the Company’s controlled entities. The liabilities insured are damages and legal
costs that may be incurred in defending civil or criminal proceedings that may be brought against the Officers in their
capacity as officers of entities in the Group. The total amount of insurance premiums paid has not been disclosed due to
confidentiality reasons.
DIRECTORS’ MEETINGS
During the financial year, the number of Directors’ meetings (including meetings held via circulating resolution) and Audit
Committee meetings that were held and attendance records, were as follows:
Directors Meetings
Audit Committee Meetings
Name
Number Eligible to
Attend
Number Attended
Number Eligible
to Attend
Number Attended
Mark Bojanjac
22
22
2
2
Frazer Tabeart
22
22
2
2
Jason Berton
22
22
-
-
Robert Boaz
22
22
2
1
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of court to bring proceedings on behalf of the Company or intervene in any proceedings
to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of
those proceedings. The Company was not a party to any such proceedings during the year.
CORPORATE GOVERNANCE
The Board of Directors is responsible for the overall strategy, governance and performance of the Company. The Board
has adopted a corporate governance framework which it considers to be suitable given the size, nature of operations and
strategy of the Company. To the extent that they are applicable, and given its circumstances, the Company adopts the
eight essential Corporate Governance Principles and Recommendations (4th Edition) ('Recommendations') published by
the Corporate Governance Council of the ASX. The Company’s Corporate Governance Statement and Appendix 4G,
both of which have been lodged with ASX, are available on the Company’s website: www.polarx.com.au.
AUDITOR’S INDEPENDENCE AND NON-AUDIT SERVICES
Section 307C of the Corporations Act 2001 requires the Group’s auditors to provide the Directors of PolarX with an
Independence Declaration in relation to the audit of the full-year financial report. A copy of that declaration is included at
page 73 of this report. There were no non-audit services provided by the Group’s auditor.
REMUNERATION REPORT (AUDITED)
This report outlines the remuneration arrangements in place for Directors and other key management personnel of the
Group in accordance with the requirements of the Corporations Act 2001 and its Regulations. For the purpose of this
report, Key Management Personnel (KMP) are defined as those persons having authority and responsibility for planning,
directing and controlling the major activities of the Company and the Group, directly or indirectly, including any director
(whether executive or otherwise) of the Parent entity.
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POLARX LIMITED
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ANNUAL REPORT 2024
Details of Directors and Key Management Personnel
The directors and other KMP of the Group during or since the end of the financial year were:
Non-Executive Directors
Mr. Robert Boaz
Non-Executive Director
Dr. Frazer Tabeart
Non-Executive Director
Executive Officers (KMP)
Mr. Mark Bojanjac
Executive Chairman
Dr. Jason Berton
Managing Director
Mr. Ian Cunningham
Chief Financial Officer and Company Secretary
Remuneration Policy
In the absence of a remuneration committee, the Board is responsible for determining and reviewing compensation
arrangements for the Directors and executives. The key principles which apply in determining remuneration structure
and levels are:
•
set competitive fixed remuneration packages to attract and retain high calibre directors and executives;
•
structure variable remuneration rewards to reflect the stage of development of the Company’s operations; and
•
establish appropriate performance hurdles for variable executive remuneration.
The Board undertakes an annual review of remuneration arrangements and may seek Independent external advice if
required but did not employ a remuneration consultant during the year ended 30 June 2024.
The structure of Non-Executive Director and Executive remuneration is separate and distinct.
Non-Executive Director Remuneration
The Board seeks to set aggregate remuneration at a level that provides the Company with the ability to attract and retain
Directors of high calibre, whilst incurring costs that are acceptable to shareholders.
In accordance with the Company’s Constitution and the ASX Listing Rule, the maximum aggregate remuneration that
may be paid to Non-Executive Directors is currently set at $200,000 per annum. The amount of aggregate remuneration
and the manner is which is apportioned is reviewed annually. The Board considers the fees paid to non-executive
directors of comparable companies and external advice (if required), when undertaking the annual review process.
Executive Director and Senior Manager Remuneration
Remuneration consists of fixed and variable components (currently comprising a long-term incentive scheme).
Fixed remuneration currently consists of cash remuneration. Fixed remuneration levels are reviewed annually by the
Board, taking into consideration past performance, time commitments, relevant market comparatives and the Company’s
stage of development. The Board has access to external advice if required.
The Board determines the appropriate form and levels of variable remuneration as and when they consider rewards are
warranted. Variable remuneration currently consists of equity-based incentives (e.g. share options), which are currently
considered to be the most effective and appropriate form of long-term incentives given the Company’s financial
resources and stage of development. The objective of the equity-based incentives is to link the variable remuneration to
the achievement of key operational targets and shareholder value creation.
The table below shows the performance of the Group as measured by loss per share for the current and previous four
years:
As at 30 June
2024
2023
2022
2021
2020
Loss per share (cents)
$0.70
$0.14
$0.22
$0.22
$2.13
Share price at reporting date (cents)
1.4
1.1
1.6
3.1
3.4
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POLARX LIMITED
26
ANNUAL REPORT 2024
Details of the nature and amount of each element of the emolument of Directors and KMP of the Company for the
financial year are as follows:
Short Term Benefits
Equity
Director
Base Salary
$
Director Fees
$
Consulting
Fees
$
Super-
annuation
$
Share Based
Payments –
Options****
$
Total
$
Equity based
remuneration
%
2024
Non-Executive Directors
Robert Boaz
-
22,500
-
-
-
22,500
-
Frazer Tabeart
-
48,750
11,250
-
18,674
78,674
23.7
Executive Officers (KMP)
Mark Bojanjac
-
-
331,500
-
18,674
350,174
5.3
Jason Berton
-
-
300,000
-
18,674
318,674
5.9
Ian Cunningham
-
-
152,000
-
-
152,000
-
-
71,250
794,750
-
56,022
922,022
6.1
2023
Non-Executive Directors
Robert Boaz
-
22,500
-
-
-
22,500
-
Frazer Tabeart*
-
45,000
15,000
-
42,736
102,736
41.6
Executive Officers (KMP)
Mark Bojanjac
-
-
326,375
-
42,736
369,111
11.6
Jason Berton**
-
-
300,000
-
42,736
342,736
12.5
Ian Cunningham***
-
-
151,000
-
-
151,000
-
-
67,500
792,375
-
128,208
988,083
13.0
*Frazer Tabeart was the Managing Director up until his transition to Non-Executive Director on 15 July 2022.
** Jason Berton was appointed as Managing Director on 15 July 2022, prior to which he held the position of Technical Director.
***Ian Cunningham was paid additional consulting fees of $5,000 during the year.
**** Represents the value of the Director options, determined using the Black-Scholes option pricing model (refer Note 23), which were issued on
21 December 2021 following shareholder approval. The options are each exercisable at $0.058 on or before 27 October 2025. The options vest
evenly over three years, subject to the continual service to the Company and remaining as a director.
There were no other key management personnel of the Group during the financial years ended 30 June 2024 and 30
June 2023.
The share options issued as part of the remuneration to the Executive Directors in FY2022, were subject to service
based vesting conditions, designed to secure their ongoing commitment to the Group.
The terms and conditions of each grant of options affecting remuneration in the previous, this or future reporting periods
are as follows:
Name
Grant
Date
Grant
Number
Expiry
Date /
Last
Exercise
Date
Average
Fair
Value per
Option at
Grant
Date
Exercise
Price per
Option
Total
Value
Granted
$
Vested*
%
Vested
Mark Bojanjac
21/12/21
5,000,000
27/10/25
$0.0196
$0.058
$97,889
3,333,333
67%
Frazer Tabeart
21/12/21
5,000,000
27/10/25
$0.0196
$0.058
$97,889
3,333,333
67%
Jason Berton
21/12/21
5,000,000
27/10/25
$0.0196
$0.058
$97,889
3,333,333
67%
*Notes: Options were granted for no consideration and shall vest evenly over three years upon completion of continual service to the Company
and remaining as a director for 1 year, 2 years, and 3 years.
Options were granted as part of the recipient’s remuneration package.
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POLARX LIMITED
27
ANNUAL REPORT 2024
There were no alterations to the terms and conditions of options granted as remuneration since their grant date. There
were no forfeitures and no remuneration options were exercised during the year ended 30 June 2024 (2023: Nil). There
were no remuneration options that expired during the year ended 30 June 2024 (2023: Nil).
Shareholdings of Directors and Key Management Personnel
The number of shares in the Company held during the financial year by Directors and Key Management Personnel of the
Group, including their personally related parties, is set out below.
Balance at
the start of
the year
Granted as
compensation
Received
on exercise
of options
Acquired on
Market
Balance on
resignation
date / Other
Balance at
the end of
the year
30 June 2024
Non-Executive Directors
Frazer Tabeart1
6,937,431
-
-
1,734,3575
-
8,671,788
Robert Boaz
-
-
-
-
-
-
Executive Officers (KMP)
Mark Bojanjac
3,979,999
-
-
994,9995
-
4,974,998
Jason Berton
19,255,795
-
-
2,750,0005
-
20,005,795
Ian Cunningham
4,387,596
-
-
833,3335
-
5,220,929
30 June 2023
Non-Executive Directors
Frazer Tabeart1
6,012,564
-
-
924,8673
-
6,937,431
Robert Boaz
-
-
-
-
-
-
Executive Officers (KMP)
Mark Bojanjac
1,342,857
-
-
2,637,1423
-
3,979,999
Jason Berton2
14,664,938
-
-
4,590,8574
-
19,255,795
Ian Cunningham
4,387,596
-
-
-
-
4,387,596
Notes:
1.
Frazer Tabeart was the Managing Director up until his transition to Non-Executive Director on 15 July 2022.
2.
Jason Berton was the Technical Director up until his transition to Managing Director on 15 July 2022.
3.
Acquired on 30 November 2022 pursuant to a rights issue, at an issue price of $0.008 per Share.
4.
3,269,725 Shares acquired on-market on 26 October 2022 at an acquisition price of $0.008 per Share. A further 1,321,132 Shares were
acquired on 30 November 2022 pursuant to a rights issue, at an issue price of $0.008 per Share.
5.
Acquired on 5 April 2024 @ $0.012 per Share pursuant to Entitlement Offer.
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POLARX LIMITED
28
ANNUAL REPORT 2024
Option holdings of Directors and Key Management Personnel
The numbers of options over ordinary shares in the Company held during the financial year by Directors and Key
Management Personnel of the Group, including their personally related parties, are set out below:
Balance at the
start of the year
Granted as
compensation
Exercised
during the year
Balance on
resignation
date /
lapsed/expired
Balance at
the end of the
year
30 June 2024
Non-Executive Directors
Robert Boaz
-
-
-
-
-
Frazer Tabeart1
5,128,453
-
-
(128,453) 4
5,000,000
Executive Officers (KMP)
Mark Bojanjac
5,000,000
-
-
-
5,000,000
Jason Berton2
5,000,000
-
-
-
5,000,000
Ian Cunningham
-
-
-
-
-
30 June 2023
Non-Executive Directors
Frazer Tabeart1
5,128,4533, 4
-
-
-
5,128,453
Robert Boaz
-
-
-
-
-
Executive Officers (KMP)
Mark Bojanjac
5,000,0003
-
-
-
5,000,000
Jason Berton2
5,000,0003
-
-
-
5,000,000
Ian Cunningham
-
-
-
-
-
Notes:
1.
Frazer Tabeart was the Managing Director up until his transition to Non-Executive Director on 15 July 2022.
2.
Jason Berton was the Technical Director up until his transition to Managing Director on 15 July 2022.
3.
Options exercisable at $0.058 each on or before 27 October 2025, were issued on 21 December 2021 following shareholder approval.
4.
128,453 options, each exercisable at $0.09, expired on November 6, 2023 which were acquired on 4 May 2022 pursuant to participation in
a rights issue.
Service Agreements
Executive Officers
The Executive Chairman, Mr. Mark Bojanjac consults to the Company and was remunerated during FY2024 at an
average rate of 27,625 per month (excluding GST) (2023: $27,198). Mr. Bojanjac is not entitled to any termination
benefits.
The Managing Director, Dr. Jason Berton consults to the Company and was remunerated during FY2024 at an average
rate of $25,000 per month (excluding GST) (2023: $25,000). Dr. Berton is not entitled to any termination benefits.
The Company Secretary / Chief Financial Officer, Mr. Ian Cunningham consults to the Company and was remunerated
during FY2024 at an average rate of $12,667 per month (excluding GST) (2023: $12,583). Mr. Cunningham is not
entitled to any termination benefits.
Non-Executive Directors
The Non-Executive Director, Dr. Frazer Tabeart now receives fixed remuneration of $60,000 per annum in the form of
Director’s Fees and consulting fees at a collective average rate of $5,000 per month (excluding GST) (2023: $5,000).
Mr. Robert Boaz receives fixed remuneration of $22,500 per annum in the form of Director’s fees.
No notice period is required should a non-executive director elect to resign.
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POLARX LIMITED
29
ANNUAL REPORT 2024
END OF REMUNERATION REPORT (AUDITED)
Signed on behalf of the board in accordance with a resolution of the Directors.
Mark Bojanjac
Executive Chairman
25 September 2024
For personal use only
POLARX LIMITED
30
ANNUAL REPORT 2024
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the year ended 30 June 2024
Notes
2024
2023
$
$
Interest Revenue & Other Income
100 71
Public company costs
49,347 54,517
Consulting and directors fees
493,556 494,048
Share-based compensation
23
56,021 128,209
Legal fees
40,934 4,380
Staff costs
55,349 62,692
Serviced office and outgoings
24,000 24,000
Foreign exchange loss
22,711 (9,879)
Loss on sale of asset
- 9,172
Write off of assets
15,937 -
Impairment of exploration assets
10
10,346,260 -
Other expenses
5
701,752 790,249
11,805,867 1,557,388
Loss from operations
(11,805,767) (1,557,317)
Income tax expense
6
- -
Loss after Income Tax
(11,805,767) (1,557,317)
Other comprehensive income/(loss)
Items that may be reclassified to profit and loss in subsequent
periods
Foreign currency translation
14 (ii)
(204,695)
1,089,895
Other comprehensive income/(loss) for the year
(204,695)
1,089,895
Total comprehensive (loss) for the year
(12,010,462) (467,422)
Loss per share:
Basic and diluted loss per share (cents per share)
18
(0.70) (0.14)
Weighted Average Number of Shares:
Basic and diluted number of shares
18
1,676,864,557
1,147,897,471
Consolidated
June 30
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying
notes.
For personal use only
POLARX LIMITED
31
ANNUAL REPORT 2024
Consolidated Statement of Financial Position
as at 30 June 2024
Notes
2024
2023
$
$
Current Assets
Cash and cash equivalents
15
1,564,266 732,033
Other receivables and prepayments
7
669,100 433,222
Total current assets
2,233,366
1,165,255
Non-Current Assets
Property, plant and equipment
8
24,456 61,517
Exploration and evaluation assets
10
34,075,655 39,206,132
Total Non-Current Assets
34,100,111 39,267,649
Total Assets
36,333,477 40,432,904
Current liabilities
Trade and other payables
11
1,203,490 141,675
Total Current Liabilities
1,203,490
141,675
Total Liabilities
1,203,490 141,675
NET ASSETS
35,129,987 40,291,229
Equity
Contributed equity
12
114,157,806 107,364,607
Reserves
14
9,703,006 9,851,680
Accumulated losses
13
(88,730,825) (76,925,058)
TOTAL EQUITY
35,129,987 40,291,229
Commitments
16
Contingent Liability
24
June 30
Consolidated
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
For personal use only
POLARX LIMITED
32
ANNUAL REPORT 2024
Consolidated Statement of Cash Flows
for the year ended 30 June 2024
Notes
2024
2023
$
$
Cash flows from Operating activities
Payments to suppliers and employees
(1,325,166) (1,435,692)
Interest received and other income
100 71
Net cash flows (used in) operating activities
15 (b)
(1,325,066) (1,435,621)
Cash flows from investing activities
Payments for expenditure on exploration
(4,593,631) (3,017,914)
Net cash flows (used in) investing activities
(4,593,631) (3,017,914)
Cash flows from financing activities
Proceeds from issue of shares
7,181,620 3,630,735
Share issue costs
(401,887) (377,142)
Standby equity subscription
(25,000)
-
Proceeds from exercise of options
- 121
Net cash flows generated from financing activities
6,754,733 3,253,714
Net increase/(decrease) in cash and cash equivalents
836,036 (1,199,821)
732,033 1,945,756
Foreign exchange variances on cash
(3,803) (13,902)
Cash and cash equivalents at end of the year
15 (a)
$ 1,564,266 $ 732,033
Cash and cash equivalents at beginning of the year
Consolidated
June 30
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
For personal use only
POLARX LIMITED
33
ANNUAL REPORT 2024
Consolidated Statement of Changes in Equity
for the year ended 30 June 2024
Consolidated
Notes
Number of Shares
Issued Capital
Accumulated
Losses
Foreign
Currency
Translation
Reserves
Warrant
Reserves
Share Based
Payment
Reserves
Option Premium
Reserve
Total
At 1 July 2023
1,353,910,146 107,364,607 (76,925,058) 3,273,603 1,190,098 5,384,979 3,000 40,291,229
Loss for the period
- - (11,805,767)
- - - - (11,805,767)
Other comprehensive (loss)
- - - (204,695)
- - - (204,695)
Total comprehensive (loss) for the
year
- - (11,805,767) (204,695)
- - - (12,010,462)
Transactions with owners in their
capacity as owners
Shares issued
12
615,610,520 7,181,620
- - - - - 7,181,620
Share issue costs
12
(401,887)
- - - - - (401,887)
Market subscription agreement
12
80,000,000
-
-
-
Shares issued to consultants
12
961,812 13,466
- - - - - 13,466
Options issued to consultants
14, 23
- - - - - - -
Share-based compensation
14, 23
- - - - 56,021
- 56,021
Balance at 30 June 2024
2,050,482,478 114,157,806 $ (88,730,825) 3,068,908 1,190,098 5,441,000 3,000 35,129,987
Consolidated
Notes
Number of Shares
Issued Capital
Accumulated
Losses
Foreign
Currency
Translation
Reserves
Warrant
Reserves
Share Based
Payment
Reserves
Option Premium
Reserve
Total
At 1 July 2022
899,101,093 104,134,832 (75,367,741) 2,183,708 1,190,098 5,186,365 3,000 37,330,262
Loss for the year
- - (1,557,317)
- - - - (1,557,317)
Other comprehensive income
- - - 1,089,895
- - - 1,089,895
Total comprehensive (loss)/income
for the year
- - (1,557,317) 1,089,895
- - - (467,422)
Transactions with owners in their
capacity as owners
Shares issued
12
453,841,767 3,630,735
- - - - - 3,630,735
Share issue costs
12
(414,567)
- - - - - (414,567)
Shares issued to consultants
12
963,237 13,486
13,486
Options issued to consultants
14, 23
- - - - 70,405
- 70,405
Exercise of stock options
12
4,049 121
- - - - - 121
Share-based compensation
14, 23
- - - - 128,209
- 128,209
Balance at 30 Junel 2023
1,353,910,146 107,364,607 $ (76,925,058) 3,273,603 1,190,098 5,384,979 3,000 40,291,229
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
r personal use only
POLARX LIMITED
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ANNUAL REPORT 2024
1.
Corporate Information
The financial report of PolarX Limited (PolarX or the Company) and its controlled entities (the Group) for the year
ended 30 June 2024 was authorised for issue in accordance with a resolution of the Directors on 25 September
2024.
PolarX Limited is a public company limited by shares and domiciled in Australia, whose shares are publicly traded on
the Australian Securities Exchange. It is a “for profit” entity.
The nature of the operations and principal activities of the Group are described in the Directors’ report.
2.
Going Concern
The financial report has been prepared on the going concern basis, which contemplates continuity of normal
business activities and realisation of assets and settlement of liabilities in the ordinary course of business.
For the year ended 30 June 2024, the Group incurred a loss from operations of $11,805,767 (2023: $1,557,317) and
recorded net cash inflows of $836,036 (2023: outflows of ($1,199,821). At 30 June 2024, the Group had net current
assets of $1,029,876 (2023: $1,023,580).
The Group’s ability to continue as a going concern is dependent upon it maintaining sufficient funds for its operations
and commitments. The Directors continue to be focused on meeting the Group’s business objectives and is mindful
of the funding requirements to meet these objectives. The Directors consider the basis of going concern to be
appropriate for the following reasons:
•
the Group’s cash balance, following completion of the placement in August 2024, relative to its fixed and
discretionary commitments;
•
given the Company’s market capitalisation and the underlying prospects for the Group to raise further
funds from the capital markets; and
•
the fact that subject to meeting certain minimum expenditure commitments, further exploration activities
may be slowed or suspended as part of the management of the Group’s working capital.
The Directors are confident that the Group can continue as a going concern and as such are of the opinion that the
financial report has been appropriately prepared on a going concern basis. However, should the Group be unable to
raise further required financing, there is uncertainty which may cast doubt as to whether or not the Group will be able
to continue as a going concern and whether it will realise its assets and extinguish its liabilities in the normal course
of business and at the amounts stated in the financial statements.
The consolidated financial statements do not include any adjustments relating to the recoverability and classification
of recorded asset amounts nor to the amounts and classification of liabilities that might be necessary should the
Group not continue as a going concern.
For personal use only
POLARX LIMITED
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ANNUAL REPORT 2024
3.
Summary of Material Accounting Policies
Basis of Preparation
The financial report is a general-purpose financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements
of the Australian Accounting Standards Board. The financial report has also been prepared on a historical cost basis.
The financial report is presented in Australian dollars.
(a) Compliance Statement
The financial report complies with Australian Accounting Standards as issued by the Australian Accounting Standards
Board and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards
Board.
(b) New accounting standards and interpretations
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June
2024. The consolidated entity has not yet assessed the impact of these new or amended Accounting Standards and
Interpretations.
(c)
Basis of Consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the Company and all of its
controlled entities. Controlled entities are entities the Company controls. The Company controls an entity when it is
exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those
returns through its power over the entity. A list of the controlled entities is provided in Note 9.
The assets, liabilities and results of all controlled entities are fully consolidated into the financial statements of the
Group from the date on which control is obtained by the Group. The consolidation of a controlled entity is
discontinued from the date that control ceases. Intercompany transactions, balances and unrealised gains or losses
on transactions between Group entities are fully eliminated on consolidation. Accounting policies of controlled entities
have been changed and adjustments made where necessary to ensure uniformity of the accounting policies adopted
by the Group.
Equity interests in a controlled entity not attributable, directly or indirectly, to the Group are presented as “non-
controlling interests". The Group initially recognises non-controlling interests that are present ownership interests in
controlled entities and are entitled to a proportionate share of the controlled entity's net assets on liquidation at either
fair value or at the non-controlling interests' proportionate share of the controlled entity's net assets. Subsequent to
initial recognition, non-controlling interests are attributed their share of profit or loss and each component of other
comprehensive income. Non-controlling interests are shown separately within the equity section of the consolidated
statement of financial position and consolidated statement of profit and loss and other comprehensive income.
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POLARX LIMITED
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ANNUAL REPORT 2024
3.
Summary of Material Accounting Policies (continued)
(d)
Income Tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those
that are enacted or substantively enacted by the balance date.
Deferred income tax is provided for on all temporary differences at balance date between the tax base of assets and
liabilities and their carrying amounts for financial reporting purposes.
No deferred income tax will be recognised from the initial recognition of goodwill or of an asset or liability, excluding a
business combination, where there is no effect on accounting or taxable profit or loss.
No deferred income tax will be recognised in respect of temporary differences associated with investments in
subsidiaries if the timing of the reversal of the temporary difference can be controlled and it is probable that the
temporary differences will not reverse in the near future.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or
liability is settled. Deferred tax is credited to Profit or Loss except where it relates to items that may be credited
directly to equity, in which case the deferred tax is adjusted directly against equity.
Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax
assets and unused tax losses to the extent that it is probable that future tax profits will be available against which
deductible temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on tax rates (and tax laws)
that have been enacted or substantially enacted at the balance date and the anticipation that the Group will derive
sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility
imposed by the law. The carrying amount of deferred tax assets is reviewed at each balance date and only
recognised to the extent that sufficient future assessable income is expected to be obtained.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the Statement of profit
or loss.
(e)
Financial Instruments
Financial assets
Initial recognition and measurement
Financial assets are classified at initial recognition and subsequently measured at amortised cost, fair value through
other comprehensive income (OCI), and fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow
characteristics and the Group’s business model for managing them. With the exception of trade receivables that do
not contain a significant financing component or for which the Group has applied the practical expedient, the Group
initially 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. Trade receivables that do not contain a significant financing component or for which the
Group has applied the practical expedient are measured at the transaction price determined under AASB 15.
In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to
give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding.
This assessment is referred to as the SPPI test and is performed at an instrument level.
The Group’s business model for managing financial assets refers to how it manages its financial assets in order to
generate cash flows. The business model determines whether cash flows will result from collecting contractual cash
flows, selling the financial assets, or both.
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POLARX LIMITED
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ANNUAL REPORT 2024
3.
Summary of Material Accounting Policies (continued)
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or
convention in the marketplace (regular way trades) are recognised on the trade date (i.e., the date that the Group
commits to purchase or sell the asset).
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
•
Financial assets at amortised cost (debt instruments)
•
Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)
•
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon
derecognition (equity instruments)
•
Financial assets at fair value through profit or loss
The Group’s financial assets at amortised cost includes cash and cash equivalents and other receivables.
Financial assets at amortised cost (debt instruments)
The Group measures financial assets at amortised cost if both of the following conditions are met:
•
The financial asset is held within a business model with the objective to hold financial assets in order to
collect contractual cash flows; and
•
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
Financial assets at fair value through OCI (debt instruments)
The Group measures debt instruments at fair value through OCI if both of the following conditions are met:
•
The financial asset is held within a business model with the objective of both holding to collect contractual
cash flows and selling; and
•
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses
or reversals are recognised in the statement of profit or loss and computed in the same manner as for financial
assets measured at amortised cost.
The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value change
recognised in OCI is recycled to profit or loss.
Financial assets designated at fair value through OCI (equity instruments)
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments
designated at fair value through OCI when they meet the definition of equity under AASB 132 Financial Instruments:
Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other
income in the statement of profit or loss when the right of payment has been established, except when the Group
benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are
recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.
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ANNUAL REPORT 2024
3. Summary of Material Accounting Policies (continued)
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets
designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be
measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of
selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified
as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that
are not solely payments of principal and interest are classified and measured at fair value through profit or loss,
irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortised cost
or at fair value through OCI, as described above, debt instruments may be designated at fair value through profit or
loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch.
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with
net changes in fair value recognised in the statement of profit or loss.
This category includes derivative instruments and listed equity investments which the Group had not irrevocably
elected to classify at fair value through OCI. Dividends on listed equity investments are also recognised as other
income in the statement of profit or loss when the right of payment has been established.
A derivative embedded in a hybrid contract, with a financial liability or non-financial host, is separated from the host
and accounted for as a separate derivative if: the economic characteristics and risks are not closely related to the
host; a separate instrument with the same terms as the embedded derivative would meet the definition of a
derivative; and the hybrid contract is not measured at fair value through profit or loss. Embedded derivatives are
measured at fair value with changes in fair value recognised in profit or loss. Reassessment only occurs if there is
either a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required
or a reclassification of a financial asset out of the fair value through profit or loss category.
A derivative embedded within a hybrid contract containing a financial asset host is not accounted for separately. The
financial asset host together with the embedded derivative is required to be classified in its entirety as a financial
asset at fair value through profit or loss.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is
primarily derecognised (i.e., removed from the Group’s consolidated statement of financial position) when:
•
The rights to receive cash flows from the asset have expired; or
•
The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to
pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement;
and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group
has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred
control of the asset.
When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has
neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the
asset, the Group continues to recognise the transferred asset to the extent of its continuing involvement. In that case,
the Group also recognises an associated liability. The transferred asset and the associated liability are measured on
a basis that reflects the rights and obligations that the Group has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum amount of consideration that the Group could be required to
repay.
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ANNUAL REPORT 2024
3. Summary of Material Accounting Policies (continued)
Impairment of financial assets
The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value
through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with
the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original
effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. 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).
For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore,
the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at
each reporting date. The Group has established a provision matrix that is based on its historical credit loss
experience, adjusted for forward-looking factors specific to the debtors and the economic environment.
For debt instruments at fair value through OCI, the Group applies the low credit risk simplification. At every reporting
date, the Group evaluates whether the debt instrument is considered to have low credit risk using all reasonable and
supportable information that is available without undue cost or effort. In making that evaluation, the Group
reassesses the internal credit rating of the debt instrument. In addition, the Group considers that there has been a
significant increase in credit risk when contractual payments are more than 30 days past due.
The Group considers a financial asset in default when contractual payments are 90 days past due. However, in
certain cases, the Group may also consider a financial asset to be in default when internal or external information
indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account
any credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation
of recovering the contractual cash flows.
Financial Liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans
and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net
of directly attributable transaction costs.
The Group’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts,
and derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near
term. This category also includes derivative financial instruments entered into by the Group that are not designated
as hedging instruments in hedge relationships as defined by AASB 9. Separated embedded derivatives are also
classified as held for trading unless they are designated as effective hedging instruments.
Gains or losses on liabilities held for trading are recognised in the statement of profit or loss.
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ANNUAL REPORT 2024
3. Summary of Material Accounting Policies (continued)
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial
date of recognition, and only if the criteria in AASB 9 are satisfied. The Group has not designated any financial
liability as at fair value through profit or loss.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using
the effective interest rate method. Gains and losses are recognised in profit or loss when the liabilities are
derecognised as well as through the effective interest rate amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are
an integral part of the effective interest rate. The effective interest rate amortisation is included as finance costs in the
statement of profit or loss.
This category generally applies to interest-bearing loans and borrowings.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of
the original liability and the recognition of a new liability. The difference in the respective carrying amounts is
recognised in the statement of profit or loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of
financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an
intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
(f)
Cash and cash equivalents
Cash and cash equivalents in the Statement of Financial Position include cash on hand, deposits held at call with
banks and other short term highly liquid investments with original maturities of three months or less. Bank overdrafts
are shown as current liabilities in the Statement of Financial Position. For the purpose of the Statement of Cash
Flows, cash and cash equivalents consist of cash and cash equivalents as described above, net of outstanding bank
overdrafts.
(g)
Trade and other receivables
Trade receivables generally have 30–90-day terms. Trade and other receivables are initially recognized at fair value
and subsequently measured at amortised cost using the effective interest method, less provision for impairment.
(h)
Property, plant and equipment
Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation
and impairment losses.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the group and the cost of the
item can be measured reliably. Repairs and maintenance expenditure is charged to Profit or Loss during the financial
period in which it is incurred.
Depreciation
The depreciable amount of most of the fixed assets are depreciated on a diminishing balance method and some of
the fixed assets are depreciated on a straight-line basis over their useful lives to the Group commencing from the
time the asset is held ready for use.
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ANNUAL REPORT 2024
3.
Summary of Material Accounting Policies (continued)
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Depreciation Rate
Plant and equipment
10 % to 30%
Motor Vehicles
30%
Computer Equipment
33%
Office Furniture and Fixtures
20%
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
Derecognition
Additions of property, plant and equipment is derecognised upon disposal or when no further future economic
benefits are expected from its use or disposal.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and
losses are recognised in the Profit or Loss.
Impairment
Carrying values of plant and equipment are reviewed at each balance date to determine whether there are any
objective indicators of impairment that may indicate the carrying values may be impaired.
Where an asset does not generate cash flows that are largely independent it is assigned to a cash generating unit
and the recoverable amount test applied to the cash generating unit as a whole.
Recoverable amount is determined as the greater of fair value less costs to sell and value in use. The assessment of
value in use considers the present value of future cash flows discounted using an appropriate pre-tax discount rate
reflecting the current market assessments of the time value of money and risks specific to the asset. If the carrying
value of the asset is determined to be in excess of its recoverable amount, the asset or cash generating unit is written
down to its recoverable amount.
(i)
Exploration expenditure
Exploration and evaluation expenditure incurred by or on behalf of the Group is accumulated separately for each area
of interest. Such expenditure comprises net direct costs and an appropriate portion of related overhead expenditure
but does not include general overheads or administrative expenditure not having a specific nexus with a particular
area of interest.
Each area of interest is limited to a size related to a known or probable mineral resource capable of supporting a
mining operation.
Exploration and evaluation expenditure for each area of interest is carried forward as an asset provided that one of
the following conditions is met:
•
such costs are expected to be recouped through successful development and exploitation of the area of
interest or, alternatively, by its sale; or
•
exploration and evaluation activities in the area of interest have not yet reached a stage which permits a
reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and
significant operations in relation to the area are continuing.
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3.
Summary of Material Accounting Policies (continued)
Expenditure which fails to meet the conditions outlined above is written off, furthermore, the directors regularly review
the carrying value of exploration and evaluation expenditure and make write downs if the values are not expected to
be recoverable.
Identifiable exploration assets acquired are recognised as assets at their cost of acquisition, as determined by the
requirements of AASB 6 Exploration for and Evaluation of Mineral Resources. Exploration assets acquired are
reassessed on a regular basis and these costs are carried forward provided that at least one of the conditions
referred to in AASB 6 is met.
Exploration and evaluation expenditure incurred subsequent to acquisition in respect of an exploration asset
acquired, is accounted for in accordance with the policy outlined above for exploration expenditure incurred by or on
behalf of the entity.
Acquired exploration assets are not written down below acquisition cost until such time as the acquisition cost is not
expected to be recovered.
When an area of interest is abandoned, any expenditure carried forward in respect of that area is written off.
Expenditure is not carried forward in respect of any area of interest/mineral resource unless the Group’s rights of
tenure to that area of interest are current.
(j)
Impairment of non-financial assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such
indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the
asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and its
value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are
largely independent of those from other assets or categories of assets and the asset's value in use cannot be
estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cash generating
unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable
amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
Impairment losses relating to continuing operations are recognised in those expense categories consistent with the
function of the impaired asset unless the asset is carried at revalued amount (in which case the impairment loss is
treated as a revaluation decrease).
An assessment is also made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is
estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used
to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case the
carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the
carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for
the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at revalued amount, in
which case the reversal is treated as a revaluation increase.
After such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying
amount, less any residual value, on a systematic basis over its remaining useful life.
(k)
Trade and other payables
Liabilities for trade creditors and other amounts are measured at amortised cost, which is the fair value of the
consideration to be paid in the future for goods and services received that are unpaid, whether or not billed to the
Group.
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3. Summary of Material Accounting Policies (continued)
(l)
Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue
of new shares or options, or for the acquisition of a business, are included in the cost of the acquisition as part of the
purchase consideration.
(m) Revenue
Revenue is recognised when a performance obligation in the contract with a customer is satisfied or when the control
of the goods or services underlying the particular performance obligation is transferred to the customer.
Interest income
Income is recognised as the interest accrues (using the effective interest method, which is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial instrument) to the net carrying
amount of the financial asset.
(n)
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Group, excluding any
costs of servicing equity other than dividends, by the weighted average number of ordinary shares, adjusted for any
bonus elements.
Diluted earnings per share
Diluted earnings per share is calculated as net profit attributable to members of the Group, adjusted for:
•
costs of servicing equity (other than dividends);
•
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been
recognised as expenses; and
•
other non-discretionary changes in revenues or expenses during the period that would result from the
dilution of potential ordinary shares;
divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any
bonus elements.
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3.
Summary of Material Accounting Policies (continued)
(o)
Share based payment transactions
The Group provides benefits to individuals and entities, in the form of share based payment transactions, whereby
the recipients render services in exchange for shares or options (Equity Settled Transactions).
There is currently a Long-Term Incentive Plan (Plan) in place, which provides benefits to Directors, employees and
other eligible persons, including consultants who provide services similar to those provided by an employee. The
Company may also issue options or shares outside of the Plan to consultants and other service providers.
The cost of these equity settled transactions is measured by reference to the fair value at the date at which they are
granted. The fair value of options is determined by using the Black Scholes formula taking into account the terms and
conditions upon which the instruments were granted, as discussed in Note 23.
In valuing equity settled transactions, no account is taken of any performance conditions, other than conditions linked
to the price of the Company’s shares (‘market conditions’).
The cost of the equity settled transactions is recognised, together with a corresponding increase in equity, over the
period in which the performance conditions are fulfilled, ending on the date on which the relevant employees become
fully entitled to the award (‘vesting date’).
The cumulative expense recognised for equity settled transactions at each reporting date until vesting date reflects (i)
the extent to which the vesting period has expired and (ii) the number of awards that, in the opinion of the Directors of
the group, will ultimately vest. This opinion is formed based on the best available information at balance date. No
adjustment is made for the likelihood of the market performance conditions being met as the effect of these
conditions is included in the determination of fair value at grant date. The profit or loss charge or credit for a period
represents the movement in cumulative expense recognised at the beginning and end of the period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon
a market condition.
Where the terms of an equity settled award are modified, as a minimum an expense is recognised as if the terms had
not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a result of
the modification, as measured at the date of the modification.
Where an equity settled award is cancelled, it is treated as if it had vested on the date of the cancellation, and any
expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the
cancelled award and designated as a replacement award on the date that it is granted, the cancelled and new award
are treated as if they were a modification of the original award, as described in the previous paragraph.
The dilutive effect, if any, of outstanding options is reflected in the computation of loss per share (see Note 18).
(p)
Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of
the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the consolidated
Statement of Financial Position are shown inclusive of GST.
The net amount of GST recoverable from, or payable to, the Australian Tax Office is included as part of receivables
or payables in the consolidated Statement of Financial Position.
Cash flows are presented in the Statement of Cash Flows on a gross basis, except for the GST component of
investing and financing activities, which is receivable from or payable to the ATO, are disclosed as operating cash
flows.
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3. Summary of Material Accounting Policies (continued)
(q)
Investments in controlled entities
All investments are initially recognised at cost, being the fair value of the consideration given and including
acquisition charges associated with the investment. Subsequent to the initial measurement, investments in controlled
entities are carried at cost less accumulated impairment losses.
(r)
Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each entity within the Group are measured using the currency of the
primary economic environment in which the entity operates (‘the functional currency’). The functional and
presentation currency of PolarX Limited is Australian dollars.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and
from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies
are recognised in the profit or loss.
Group entities
The results and financial position of all the Group 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:
•
assets and liabilities are translated at the closing rate at the date of that Statement of Financial Position;
•
income and expenses are translated at average exchange rates (unless this is not a reasonable
approximation of the rates prevailing on the transaction dates, in which case income and expenses are
translated at the dates of the transactions);
•
retained earnings are translated at the exchange rates prevailing at date of transaction; and
•
all resulting exchange differences are recognised as a separate component of equity.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of
borrowings and other financial instruments designated as hedges of such investments, are taken to shareholders’
equity. When a foreign operation is sold the exchange differences relating to that entity are recognised in the profit or
loss, as part of the gain or loss on sale where applicable.
(s)
Leases
At inception of a contract, the Group assesses if the contract contains or is a lease. If there is a lease present, a right-
of-use asset and a corresponding liability are recognised by the Group where the Group is a lessee. However, all
contracts that are classified as short-term leases (i.e. leases with a remaining lease term of 12 months or less) and
leases of low-value assets are recognised as an operating expense on a straight-line basis over the term of the
lease.
Initially, the lease liability is measured at the present value of the lease payments still to be paid at the
commencement date. The lease payments are discounted at the interest rate implicit in the lease. If this rate cannot
be readily determined, the Group uses incremental borrowing rate.
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3. Summary of Material Accounting Policies (continued)
Lease payments included in the measurement of the lease liability are as follows:
•
fixed lease payments less any lease incentives;
•
variable lease payments that depend on index or rate, initially measured using the index or rate at the
commencement date;
•
the amount expected to be payable by the lessee under residual value guarantees;
•
the exercise price of purchase options if the lessee is reasonably certain to exercise the options;
•
lease payments under extension options, if the lessee is reasonably certain to exercise the options; and
•
payments of penalties for terminating the lease, if the lease term reflects the exercise of options to terminate
the lease.
The right-of-use asses comprise the initial measurement of the corresponding lease liability, any lease payments
made at or before the commencement date and any initial direct costs. The subsequent measurement of the right-of-
use assets is at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over the lease term or useful life of the underlying asset, whichever is the
shortest.
Where a lease transfers ownership of the underlying asset or the costs of the right-of-use asset reflects that the
Group anticipates to exercise a purchase option, the specific asset is depreciated over the useful life of the
underlying asset.
(t) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Board of Directors of PolarX Limited.
(u)
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation.
Where the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the
reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense
relating to any provision is presented in the profit or loss net of any reimbursement.
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash
flows at a pre-tax rate that reflects current market assessments of the time value of money, and where appropriate,
the risks specific to the liability.
Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
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4.
Critical accounting estimates and judgments
Estimates and judgements are continually evaluated and are based on historical experience and other factors,
including expectations of future events that may have a financial impact on the entity and that are believed to be
reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by
definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are
discussed below.
Capitalised exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors,
including whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the
related exploration and evaluation asset through sale.
Factors which could impact the future recoverability include the size and composition of any future mineral resource
and ore reserve estimates, future technological changes which could impact the cost of mining, future legal changes
(including changes to environmental restoration obligations) and changes to commodity prices.
To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the
future, this will reduce profits and net assets in the period in which this determination is made.
In addition, exploration and evaluation expenditure is capitalised if activities in the area of interest have not yet
reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable
reserves. To the extent that it is determined in the future that this capitalised expenditure should be written off, this
will reduce profits and net assets in the period in which this determination is made.
Share based payment transactions
The Group measures the cost of equity settled transactions by reference to the fair value of the equity instruments at
the date at which they are granted. The fair value of options is determined by using the Black Scholes formula taking
into account the terms and conditions upon which the instruments were granted, as discussed in Note 23.
Functional currency translation reserve
Under the Accounting Standards, each entity within the Group is required to determine its functional currency, which
is the currency of the primary economic environment in which the entity operates. Management considers the United
States subsidiary to be a foreign operation with United States dollars as the functional currency. In arriving at this
determination, management has given priority to the currency that influences the labour, materials and other costs of
exploration activities as they consider this to be a primary indicator of the functional currency.
Deferred Tax Assets and Liabilities
The Group recognises deferred tax assets in respect of tax losses to the extent that it is probable that taxable profit
will be available against which the losses can be utilised. Judgment is required to determine the amount of deferred
tax assets that can be recognised, based upon the likely timing and level of future taxable profits, together with future
tax planning strategies. Deferred tax liabilities are recognised when it is considered probable that there will be a
future outflow of funds to a taxing authority. A change in estimate of the likelihood of a future outflow and/or in the
expected amount to be settled would be recognised in profit or loss in the period in which the change occurs. This
requires the application of judgement as to the ultimate outcome, which can change over time depending on facts
and circumstances.
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5.
Other expenses
Consolidated
2024
$
2023
$
Accounting and audit fees
116,461
95,957
Bank fees
6,287
6,979
Business expenses
20,779
59,429
Computer expenses
8,616
5,677
Conferences
51,375
86,361
Corporate finance
63,597
127,500
Insurance
63,353
56,319
Investor relations
67,500
63,300
Media coverage
110,546
71,927
Printing and stationery
1,333
449
Postage
2,746
1,533
Subscriptions
9,317
9,008
Telephone
2,196
3,821
Rent & Accommodations
43,717
35,261
Depreciation
1,038
1,580
Others
132,891
165,148
701,752
790,249
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ANNUAL REPORT 2024
6.
Income Tax expense
Consolidated
2024
$
2023
$
(a) Income tax expense
Current tax
-
-
Deferred tax
-
-
-
-
(b) Numerical reconciliation between aggregate
tax expense recognised in the consolidated
statement
of
profit
or
loss
and
other
comprehensive
income
and
tax
expense
calculated per the statutory income tax rate
-
-
A reconciliation between tax expense and the
product of accounting loss before income tax
multiplied by the Company’s applicable tax rate is as
follows:
Loss from operations before income tax expense
(11,805,767)
(1,557,317)
Tax at the company rate of 25.0% (2023: 25.0%)
(2,951,442)
(389,329)
Expense of remuneration options
14,005
32,052
Other non-deductible expenses
49,053
82,364
Impact of reduction in future corporate income tax
rate
-
-
Income tax benefit not brought to account
2,888,384
274,913
Income tax expense
-
-
(c) Deferred tax
Consolidated Statement of financial position
The following deferred tax balances have not been
brought to account:
Deferred Tax Liabilities
Unrealised forex gain
-
453
Prepayments
16,113
12,220
Exploration (foreign @ 30%)
6,197,529
7,908,856
Deferred tax liability
6,213,642
7,921,529
Deferred Tax Assets
Foreign carry forward revenue losses (@ 30%)
10,243,914
8,723,456
Australian carry forward revenue losses (@ 25%)
2,505,806
2,177,578
Accrued expenses
9,000
8,500
Other
50,529
52,841
Deferred tax asset not recognised
12,809,249
10,962,375
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ANNUAL REPORT 2024
6. Income Tax expense (continued)
The benefit for tax losses will only be obtained if:
(i)
the Group derives future assessable income in Australia or the US (as applicable) of a nature and of an
amount sufficient to enable the benefit from the deductions for the losses to be realised;
(ii) the Group continues to comply with the conditions for deductibility imposed by tax legislation in Australia or
the US (as applicable); and
(iii) no changes in tax legislation in Australia or the US, adversely affect the Company in realising the benefit
from the deductions for the losses.
(d) Tax consolidation
PolarX and its wholly owned Australian subsidiaries (Controlled Entities) implemented the tax consolidation
legislation effective as of 1 July 2017. The Controlled Entities have also entered into tax sharing and tax funding
agreements. Under the terms of these agreements, the Controlled Entities will reimburse PolarX for any current
income tax payable by PolarX arising in respect of their activities. The reimbursements are payable at the same
time as the associated income tax liability falls due and will therefore be recognised as a current tax-related
receivable by PolarX when they arise. In the opinion of the Directors, the tax sharing agreement is also a valid
agreement under the tax consolidation legislation and limits the joint and several liability of the Controlled
Entities in the case of a default by PolarX.
7.
Other Receivables and Prepayments
Consolidated
2024
$
2023
$
Current
GST / VAT receivable
39,756
31,125
Prepayments
629,344
402,097
669,100
433,222
Other debtors and goods and services tax are non-interest bearing and generally receivable on 30 day terms. They
are neither past due nor impaired. The amount is fully collectible. Due to the short term nature of these receivables,
their carrying value is assumed to approximate their fair value.
Prepayments predominantly comprises deposits paid to contractors and refundable bonds deposited with
Government authorities in relation to the Group’s exploration and development operations.
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8.
Property, Plant and Equipment
Consolidated
2024
$
2023
$
Plant and Equipment
Cost
27,731
27,856
Accumulated depreciation
(20,428)
(17,376)
Net carrying amount
7,303
10,480
Motor Vehicles
Cost
44,236
134,168
Accumulated depreciation
(29,193)
(86,280)
Net carrying amount
15,043
47,888
Computer Equipment
Cost
9,039
9,039
Accumulated depreciation
(6,929)
(5,890)
Net carrying amount
2,110
3,149
Total property, plant and equipment
Cost
81,006
171,063
Accumulated depreciation
(56,550)
(109,546)
Net carrying amount
24,456
61,517
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ANNUAL REPORT 2024
8.
Property, Plant and Equipment (continued)
Reconciliations of the carrying amounts of property, plant and equipment at the beginning and end of the current
financial year:
Consolidated
2024
$
2023
$
Plant and Equipment
Carrying amount at beginning of year
10,480
16,600
Additions
-
-
Disposals
-
(1,579)
Depreciation expense
(3,185)
(5,100)
Net exchange differences on translation
8
559
Carrying amount at end of year
7,303
10,480
Motor Vehicles
Carrying amount at beginning of year
47,888
65,920
Additions
-
-
Disposals
(25,093)
-
Depreciation expense
(8,559)
(20,255)
Net exchange differences on translation
807
2,223
Carrying amount at end of year
15,043
47,888
Office Furniture and Fixtures
Carrying amount at beginning of year
-
83
Additions
-
-
Disposals
-
(66)
Depreciation expense
-
(17)
Net exchange differences on translation
-
-
Carrying amount at end of year
-
-
Computer Equipment
Carrying amount at beginning of year
3,149
4,742
Additions
-
-
Dispositions
-
(30)
Depreciation expense
(1,038)
(1,563)
Net exchange differences on translation
(1)
-
Carrying amount at end of year
2,110
3,149
Total property, plant and equipment
24,456
61,517
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ANNUAL REPORT 2024
9.
Investments in Controlled entities
The consolidated financial statements incorporate the assets, liabilities and results of the following controlled entities
in accordance with the accounting policy described in Note 3. Details of controlled entities and the disclosure
statement are as follows:
Name
Country of incorporation
% Equity Interest
2024
2023
Aldevco Inc.
Aldevco Pty Ltd
Coventry Minerals Pty Ltd
Crescent Resources (USA) Inc
Humboldt Range Inc
Vista Minerals (Alaska) Inc
Vista Minerals Pty Ltd
USA
Australia
Australia
USA
USA
USA
Australia
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
10.
Exploration and Evaluation Assets
Consolidated
2024
$
2023
$
Exploration and evaluation expenditure
At cost
52,790,176
47,606,245
Accumulated provision for impairment
(18,714,521)
(8,400,113)
Write-off
-
-
Total exploration and evaluation
34,075,655
39,206,132
Consolidated
2024
$
2023
$
Carrying amount at beginning of the year
39,206,132
34,973,692
Exploration and evaluation expenditure during the
year
5,407,780
3,142,588
Disposals
-
(7,743)
Net exchange differences on translation
(191,997)
1,097,595
Carrying amount at end of year
44,421,915
39,206,132
Impairment of exploration and evaluation assets*
(10,346,260)
-
Write-off of exploration and evaluation assets
-
-
Carrying amount at end of year
34,075,655
39,206,132
*The Directors’ assessment of the carrying amount for the Group’s exploration and development assets was made
after consideration of (i) prevailing market conditions, (ii) the level of previous expenditure undertaken and the results
from those programs; and (iii) the potential for future development, noting the current mineral resource estimates for
both the Caribou Dome and Stellar projects. The recoverability of the carrying amount of the exploration and
evaluation assets is dependent on successful development and commercial exploitation, or alternatively the sale, of
the respective areas of interest. An impairment charge was recorded during the period in relation to the carrying value
of the following: (i) exploration on certain mineral claims within the Stellar Project, which were not incorporated into
the 2024 Scoping Study and hence the relevant expenditure was not considered to be recoverable; and (ii)
exploration on the Humboldt Range Project, where the Company has yet to delineate a mineral resource estimate
and hence the relevant expenditure was not considered to be recoverable.
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ANNUAL REPORT 2024
11.
Current Liabilities
Consolidated
2024
$
2023
$
Trade and other payables
Trade payables
1,053,846
27,558
Accruals
149,644
114,117
1,203,490
141,675
Trade payables are not past due and are non-interest bearing. They are normally on average settled between 30-45
days term.
12.
Contributed Equity
2024
2023
(a) Issued and paid up capital
No. of shares
No. of shares
Ordinary shares fully paid
2,050,482,478
1,353,910,146
2024
2023
No. of shares
$
No. of shares
$
(b) Movements in ordinary shares on issue
Balance at beginning of year
1,353,910,146
107,364,607
899,101,093
104,134,832
Shares issued for exercise of options
-
-
4,049
121
Shares issued to consultants
961,812
13,466
963,237
13,486
Market Subscription Agreement (Note 27)
80,000,000
-
-
-
Shares issued (net of costs)
615,610,520
6,779,733
453,841,767
3,216,168
Balance at end of year
2,050,482,478
114,157,806
1,353,910,146
107,364,607
(c) Ordinary shares
The Group does not have authorised capital nor par value in respect of its issued capital. Shares have the right
to receive dividends as declared and, in the event of a winding up of the Company, to participate in the
proceeds from sale of all surplus assets in proportion to the number of and amounts paid up on shares held.
Shares entitle the holder to one vote, either in person or proxy, at a meeting of the Company.
2024
On 2 August 2023, the Company completed a share placement, pursuant to which the Company issued
140,605,262 Shares at an issue price of $0.011 per Shares to raise gross proceeds of $1,546,658.
On 15 September 2023, the Company completed a rights issue, pursuant to which the Company issued
65,101,367 Shares at an issue price of $0.011 per Shares to raise gross proceeds of $716,115.
On 1 December 2023, the Company entered into an At-The-Market subscription facility (ATM Facility) with Acuity
Capital Investment Management Pty Ltd. (Acuity). As security for the ATM Facility, the Company issued
80,000,000 Shares at nil cash consideration to Acuity (refer Note 27).
On 5 April 2024, the Company completed a rights issue, pursuant to which the Company issued 409,903,891
Shares at an issue price of $0.012 per Shares to raise gross proceeds of $4,918,847.
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ANNUAL REPORT 2024
12. Contributed Equity (continued)
(c) Ordinary shares (continued)
On 29 May 2024, the Company issued 961,812 Shares with an issue price of $0.014 per Share as part
consideration for the amendments to the Company’s option to acquire an interest in the Caribou Dome Project in
Alaska USA (refer Note 16(a) for a summary of the amended option terms).
2023
On 1 November 2022, the Company the Company issued 4,049 ordinary shares pursuant to an exercise of
listed options at an exercise price of $0.03 per Share for proceeds of $121.
On 30 November 2022, the Company completed a rights and shortfall issue, pursuant to which the Company
issued 157,261,117 Shares at an issue price of $0.008 per Share to raise gross proceeds of $1,258,089.
On 14 December 2022, the Company completed a shortfall issue, pursuant to which the Company issued
111,717,428 Shares at an issue price of $0.008 per Share to raise gross proceeds of $893,740.
On 21 December 2022, the Company completed a shortfall issue, pursuant to which the Company issued
184,863,222 Shares at an issue price of $0.008 per Share to raise gross proceeds of $1,478,906.
On 18 May 2023, the Company issued 963,237 Shares with an issue price of $0.014 per Share as part
consideration for the amendments to the Company’s option to acquire an interest in the Caribou Dome Project in
Alaska USA (refer Note 16(a)).
(d) Capital Risk Management
The Group’s capital comprises share capital, reserves and accumulated losses which amounted to $35,129,987
at 30 June 2024 (2023: $40,291,229). The Group manages its capital to ensure its ability to continue as a going
concern and to optimise returns to its shareholders. The Group was ungeared at year end and not subject to
any externally imposed capital requirements. Refer to Note 22 for further information on the Group’s financial
risk management policies.
(e)
Share options
2024
At 30 June 2024, there were 47,868,907 (2023: 142,421,592) options over unissued Shares, comprising
47,868,907 (2023: 50,868,907) unlisted options and nil (2023: 91,552,685) Listed Options.
During the year, no options were issued or exercised and 3,000,000 unlisted and 91,552,685 listed options
lapsed.
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ANNUAL REPORT 2024
12. Contributed Equity (continued)
(e)
Share options (continued)
2023
At 30 June 2023, there were 142,421,592 (2022: 114,556,734) options over unissued Shares, comprising
50,868,907 (2022: 23,000,000) unlisted options and 91,552,685 (2022: 91,556,734) Listed Options.
On 27 July 2022, shareholders approved the issue of Options to Peak of 19,127,436 unlisted options (Broker
Options) to Peak Asset Management as part consideration for acting as corporate adviser and lead manager
the capital raisings undertaken in April, May and June 2022. The Broker Options were issued on 24 October
2022 and each Broker Option is exercisable at $0.03 on or before 1 April 2025.
On 9 February 2023, the Company issued 8,741,471 unlisted options to various consultants as part
consideration for acting as corporate advisers and lead manager of the capital raisings undertaken in November
and December 2022. Each Option is exercisable at $0.016 each on or before 8 February 2026.
On 1 November 2022, the Company the Company issued 4,049 ordinary shares pursuant to an exercise of
4,049 listed options at an exercise price of $0.03 per Share for proceeds of $121.
During the year, no options lapsed.
No option holder has any right under the options to participate in any other share issue of the Company or any
other entity.
Information relating to the Options granted by the Company, including details of options issued under the Plan,
is set out in Note 23.
13.
Accumulated losses
Consolidated
2024
$
2023
$
Movements in accumulated losses were as follows:
2021
$
At 1 July
76,925,058
75,367,741
Loss for the year
11,805,767
1,557,317
At 30 June
88,730,825
76,925,058
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ANNUAL REPORT 2024
14.
Reserves
Consolidated
2024
$
2023
$
Foreign currency translation reserve (ii)
3,068,908
3,273,603
Warrant reserves(iii)
1,190,098
1,190,098
Share based payments reserves(i)
5,441,000
5,384,979
Option premium reserve
3,000
3,000
9,703,006
9,851,680
Consolidated
2024
$
2023
$
Movement in reserves:
(i) Share based payments and option premium reserve
Balance at beginning of year
5,384,979
5,186,365
Options issued to corporate advisers
-
70,405
Options exercised
-
-
Share based compensation
56,021
128,209
Balance at end of year
5,441,000
5,384,979
The Share based payments and option premium reserve is used to record the value of equity benefits provided to
individuals acting as employees, directors as part of their remuneration, and consultants and for their services. Refer
to Note 23 for details of share based payments during the financial year and prior year.
2024
2023
$
$
(ii) Foreign currency translation reserve
Balance at beginning of year
3,273,603
2,183,708
Foreign currency translation
(204,695)
1,089,895
Balance at end of year
3,068,908
3,273,603
The foreign currency reserve is used to record the currency difference arising from the translation of the financial
statements of the foreign operation.
2024
2023
$
$
(iii) Warrant reserve
Balance at beginning of year
1,190,098
1,190,098
Warrants exercised
-
-
Balance at end of year
1,190,098
1,190,098
The warrant reserve is used to record the value of warrants provided to shareholders as part of capital raising
activities.
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ANNUAL REPORT 2024
15.
Cash and Cash Equivalents
Consolidated
2024
$
2023
$
(a) Reconciliation of cash
Cash balance comprises:
Cash and cash equivalents
1,564,266
732,033
(b) Reconciliation of the net loss after tax to the net
cash flows from operations
Loss after income tax
(11,805,767)
(1,557,317)
Adjustments for:
Depreciation
1,038
1,581
Share-based compensation
56,021
128,209
Loss on disposal of assets
24,649
-
Impairment of exploration assets
10,346,260
-
Changes in operating assets and liabilities:
(Decrease)/increase in other receivables/prepayments
(24,186)
19,861
Increase/(Decrease) in trade and other payables
76,919
(27,955)
Net cash flow used in operating activities
(1,325,066)
(1,435,621)
Depreciation capitalised to exploration and evaluation assets was $11,744 (2023: $25,355). In addition, the value of
shares and options issued to consultants of $13,466 (2023: $13,486) were capitalised to exploration and evaluation
assets. Included in the total share issue costs was a share-based payment expense of $nil (2023: $70,405).
16.
Expenditure commitments
(a) Tenement expenditure commitments – Caribou Dome Project
On 12 June 2024, the Company announced that it had given a notice of exercise in relation its option to acquire (i)
an 80% interest in the mineral claims which include the Caribou Dome Deposit (Caribou Dome Property) and (ii)
a 90% interest in the adjoining Senator mineral claims (Senator Property). This followed satisfaction of the
minimum qualifying expenditure obligations and payment of the option exercise price of US$1.26M in May 2024.
The parties are now required to enter into mining venture agreements which will govern the future exploration,
development and production activities at the Caribou Dome Project. Upon execution of the mining venture
agreements, the respective interests of the parties in each of the mining ventures will be as follows:
Caribou Dome Property Mining Venture
The respective participating interests in the Caribou Dome Property mining venture will be:
•
PolarX (via its wholly owned subsidiary Aldevco Inc (Aldevco)) 80%
•
SV Metals, LP (SV Metals)
10%
•
Hatcher Resources Inc. (Hatcher)
10%
The vendor of the Caribou Dome Property, CD Development Corporation, will retain a 5% Net Smelter Royalty
which can be purchased/cancelled by the mining venture parties upon payment of US$5M cash.
Standard dilution clauses will apply in the event that any of the participants elect not to contribute to approved
exploration and development programs. The participating interests of SV Metals and Hatcher will each convert to
a 1% NSR if their respective participating interest dilutes to below 3%.
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ANNUAL REPORT 2024
16. Expenditure commitments (continued)
Senator Property Mining Venture
The respective participating interests in the Senator Property mining venture will be:
•
Aldevco
90%
•
Hatcher
10%
Standard dilution clauses will apply in the event that any of the participants elect not to contribute to approved
exploration and development programs. The participating interest of Hatcher will convert to a 1% NSR if its
participating interest dilutes to below 3%.
Following satisfaction of its earn-in obligations during the financial year ended 30 June 2024, the Group’s
remaining commitments in relation to the Caribou Dome Project at reporting date but not recognised as liabilities
comprise making annual claim rental payments and ensuring minimum expenditure commitments are met, in
proportion to its participating interests in each of the mining ventures.
(b) Tenement expenditure commitments – Stellar Project
Remaining commitments related to the Stellar Project at reporting date but not recognised as liabilities below
include the following:
(i)
payment of US$1,000,000 cash to Millrock Resources Inc (“Millrock”) if a JORC Indicated Resource of
1Moz contained Au or more is delineated;
(ii)
payment of US$2,000,000 cash to Millrock if a JORC Indicated Resource of 1Mt contained copper (or
copper equivalent) metal is delineated;
(iii)
45 claim blocks covering the Zackly, Moonwalk, Mars and Gemini prospects, are subject to a royalty
payable to Altius Minerals, being:
a.
2% gross value royalty on all uranium produced;
b.
2% net smelter return royalty on gold, silver, platinum, palladium and rhodium; and
c.
1% net smelter return royalty on all other metals;
(iv)
All Stellar claim blocks are subject to a royalty payable to Millrock, being:
a.
1% gross value royalty on all uranium produced; and
b.
1% net smelter royalty on all other metals;
and
(v)
making advance royalty payments (payments are deductible from future royalty payments) to Millrock in the
amounts of:
Due Date
Payment
31 March 2025*
US$50,000
31 March 2026*
US$55,000
31 March 2027,* and 31 March of
each year thereafter occurring prior to
the fifth anniversary of the
commencement of Commercial
Production
US$60,000
* Such payments will not be payable if the fifth anniversary of the commencement of Commercial
Production has occurred before such date.
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60
ANNUAL REPORT 2024
16.
Expenditure commitments (continued)
(c) Tenement expenditure commitments – Humboldt Range Property
Remaining commitments related to the Humboldt Range mining lease agreement (MLA) at reporting date but not
recognized as liabilities include the following:
(i)
payment of annual claim maintenance fees (by 1 September of each year), such payments to be credited
against any future production royalties that accrue;
(ii)
commencing 1 September 2022, making monthly payments of US$10,000, such payments to be credited
against any future production royalties that accrue; and
(iii) a royalty on gold production of 2.5% NSR (3.75% NSR if grade> 15.6g/t Au).
17.
Subsequent events
On 26 July 2024, 5,000,000 options with an exercise price of $0.05 lapsed.
On 6 August 2024, the Company issued 300,018,500 Shares at an issue price of $0.01 per Share pursuant to a
placement, which raised $3,000,185 (before costs). On 8 August 2024, the Company placed a further 25,000,000
Shares at an issue price of at $0.01 per Share, which raised $250,000 (before costs).
No other significant events have occurred subsequent to the balance sheet date but prior to the date of this report
that would have a material impact on the consolidated financial statements.
18.
Loss per share
Consolidated
2024
$
2023
$
Loss used in calculating basic and dilutive loss per share
(11,805,767)
(1,557,317)
Number of Shares
2024
2023
Weighted average number of ordinary shares used in
calculating basic loss per share:
1,676,864,557
1,147,897,471
Effect of dilution:
Share options
-
-
Adjusted weighted average number of ordinary shares
used in calculating diluted loss per share:
1,676,864,557
1,147,897,471
Basic and Diluted loss per share (cents per share)
(0.70)
(0.14)
There is no impact from the 47,868,907 options vested and outstanding at 30 June 2024 (2023: 132,421,592 options)
on the loss per share calculation because they are anti-dilutive. These options could potentially dilute basic EPS in
the future.
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ANNUAL REPORT 2024
19. Auditor’s remuneration
During the financial year, the following audit fees were paid or payable:
Consolidated
2024
$
2023
$
Stantons
60,388
58,539
60,388
58,539
20. Key Management Personnel Disclosures
(a) Details of Key Management Personnel
Mr. Mark Bojanjac
Executive Chairman
Dr. Jason Berton
Managing Director
Dr. Frazer Tabeart
Non-Executive Director
Mr. Robert Boaz
Non-Executive Director
Mr. Ian Cunningham
Company Secretary/Chief Financial Officer
(b)
Remuneration of Key Management Personnel
Details of the nature and amount of each element of the emolument of each Director and Executive of the
Group for the financial year are as follows:
Consolidated
2024
$
2023
$
Consulting and director fees
866,000
859,875
Share-based compensation
56,022
128,208
Total remuneration
922,022
988,083
Out of the total consulting and directors fees of key management employees, $378,000 (2023: $340,000) was
capitalised as exploration and evaluation assets.
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ANNUAL REPORT 2024
21. Related Party Disclosures
The ultimate parent entity is PolarX Limited. Refer to Note 9 - Investments in Controlled entities, for a list of all
controlled entities.
Mitchell River Group Pty Ltd, a company of which Dr. Frazer Tabeart is a Director, provided the Group with consulting
services related to exploration activities for a fee totalling $2,150 (2023: $4,770).
There were no other related party disclosures for the year ended 30 June 2024 (2023: Nil).
22. Financial Instruments and Financial Risk Management
Exposure to interest rate, liquidity and credit risk arises in the normal course of the Group’s business. The Group
does not hold or issue derivative financial instruments.
The Group uses different methods as discussed below to manage risks that arise from financial instruments. The
objective is to support the delivery of the financial targets while protecting future financial security.
(a)
Liquidity Risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated with financial
liabilities.
The Group manages liquidity risk by maintaining sufficient cash facilities to meet the operating requirements of the
business and investing excess funds in highly liquid short-term investments. The responsibility for liquidity risk
management rests with the Board of Directors.
Alternatives for sourcing our future capital needs include our cash position and the issue of equity instruments. These
alternatives are evaluated to determine the optimal mix of capital resources for our capital needs. We expect that,
absent a material adverse change in a combination of our sources of liquidity, present levels of liquidity will be
adequate to meet our expected capital needs.
Maturity analysis for financial liabilities
Financial liabilities of the Group comprise trade and other payables. As at 30 June 2024 and 30 June 2023, all
financial liabilities contractually matured within 60 days.
(b)
Interest Rate Risk
Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair value
of financial instruments.
The Group’s exposure to market risk for changes to interest rate risk relates primarily to its earnings on cash and
term deposits. The Group manages the risk by investing in short term deposits.
Consolidated
2024
$
2023
$
Cash and cash equivalents
1,564,266
732,033
Interest rate sensitivity
The following table demonstrates the sensitivity of the Group’s statement of profit or loss and other comprehensive
income to a reasonably possible change in interest rates, with all other variables constant.
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63
ANNUAL REPORT 2024
22. Financial Instruments and Financial Risk Management (continued)
Consolidated
Change in Basis Points
Effect on Post Tax Loss
Increase/(Decrease)
Effect on Equity
including accumulated
losses
Increase/(Decrease)
Judgements of reasonably possible movements
2024
$
2023
$
2024
$
2023
$
Increase 100 basis points
15,643
7,320
15,643
7,320
Decrease 100 basis points
(15,643)
(7,320)
(15,643)
(7,320)
A sensitivity of 100 basis points has been used as this is considered reasonable given the current level of both short
term and long-term interest rates. The change in basis points is derived from a review of historical movements and
management’s judgement of future trends. The analysis was performed on the same basis in 2023.
(c) Credit Risk Exposures
Credit risk represents the risk that the counterparty to the financial instrument will fail to discharge an obligation and
cause the Group to incur a financial loss. The Group’s maximum credit exposure is the carrying amounts on the
statement of financial position. The Group holds financial instruments with credit worthy third parties.
At 30 June 2024, the Group held cash deposits. Cash deposits were held with financial institutions with a rating from
Standard & Poors of A or above (long term). The Group has no past due or impaired debtors as at 30 June 2024
(2023: Nil).
(d)
Foreign Currency Risk Exposure
As a result of operations in the USA and expenditure in US dollars, the Group’s statement of financial position can be
affected by movements in the USD$/AUD$ exchange rates. The Group seeks to mitigate the effect of its foreign
currency exposure by holding cash in US dollars to match expenditure commitments.
Sensitivity analysis:
The table below summarises the foreign exchange exposure on the net monetary position of parent and the
subsidiaries against its respective functional currency, expressed in group’s presentation currency. If the AUD/ USD
rates moved by +10%, the effect on comprehensive loss would be as follows:
Company
2024
$
2023
$
Loan to subsidiary – Humboldt Range Inc. (in AUD)
-
5,688,492
Loan to subsidiary – Aldevco Pty Ltd and Aldevco Inc. (in AUD)
13,069,528
8,089,512
Loan to subsidiary – Vista Minerals Pty Ltd and Vista Minerals (Alaska) Inc. (in
AUD)
11,535,004
15,972,133
10%
10%
A$
A$
Total effect on comprehensive loss of positive movements
2,460,453
2,975,014
Total effect on comprehensive loss of negative movements
(2,460,453)
(2,975,014)
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64
ANNUAL REPORT 2024
22. Financial Instruments and Financial Risk Management (continued)
The table below summarises the foreign exchange exposure on the net monetary position of parent and the
subsidiary against its respective functional currency, expressed in group’s presentation currency. If the AUD/ CAD
rates moved by +10%, the effect on comprehensive loss would be as follows:
Company
2024
$
2023
$
Loan from subsidiary – Coventry Minerals. (in AUD)
753,332
781,717
Percentage shift of the AUD / CAD exchange rate
10%
10%
A$
A$
Total effect on comprehensive loss of positive movements
75,333
78,172
Total effect on comprehensive loss of negative movements
(75,333)
(78,172)
(e) Fair Value
The aggregate net fair values of the Group’s financial assets and financial liabilities both recognised and
unrecognised are as follows:
The following methods and assumptions are used to determine the net fair value of financial assets and liabilities.
Cash and cash equivalents, other receivables and trade and other payables are carried at amounts approximating
fair value because of their short-term nature to maturity.
Carrying
Amount in
the Financial
Statements
Aggregate
Net Fair
Value
Carrying
Amount in
the Financial
Statements
Aggregate
Net Fair
Value
2024
$
2024
$
2023
$
2023
$
Financial Assets
Cash and cash equivalents
1,564,266
1,564,266
732,033
732,033
Other receivables
39,756
39,756
31,125
31,125
Financial Liabilities
Trade and other payables
1,203,490
1,203,490
141,675
141,675
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ANNUAL REPORT 2024
23. Share Based Payment Plans
(a) Recognised share based payment expenses
Total expenses arising from share based payment transactions recognised during the year as part of share based
payment expense, the Consolidated Statement of Profit or Loss and Other Comprehensive Income, or capitalised to
exploration costs were as follows:
Consolidated
2024
$
2023
$
Operating expenditure
Options issued to employees, key management personnel
and directors
56,021
128,209
Options issued to consultants
-
70,405
56,021
198,614
(b) Share based payments
The Company makes share based payments in the form of Shares and options, to directors, executives and
employees as part of their remuneration and to consultants and advisers for their services.
The Company has a Long-Term Incentive Plan (Plan) in place, which provides benefits to Directors, employees and
other eligible persons, including consultants who provide services similar to those provided by an employee. The
Company may also issue options or shares outside of the Plan to consultants and other service providers (collectively
“the Options”). The objective of such incentives is to assist in the recruitment, reward, retention and motivation of the
recipients and/or reduce the level of remuneration or consideration that would otherwise be paid to the recipient.
Details of Options granted are as follows:
2024
Grant date
Expiry date
Exercise
price
Balance at
start of the
year
Granted
during the
year
Exercised
during the
year
Expired during
the year
Balance at end
of the year
Exercisable at
end of the year
Number
Number
Number
Number
Number
Number
Nov 2, 2020
Nov 1, 2023
A$0.05
3,000,000
-
-
(3,000,000)
-
-
Jul 28, 2021
Jul 26, 2024
A$0.05
5,000,000
-
-
-
5,000,000
5,000,000
Dec 21, 2021
Oct 27, 2025
A$0.058
15,000,000
-
-
-
15,000,000
10,000,000
May 4, 2022
Nov 6, 2023
A$0.03
18,209,695
-
-
(18,209,695)
-
-
May 6, 2022
Nov 6, 2023
A$0.03
59,799,892
-
-
(59,799,892)
-
-
Jun 2, 2022
Nov 6, 2023
A$0.03
13,543,098
-
-
(13,543,098)
-
-
Oct 24, 2022
Apr 1, 2025
A$0.03
19,127,436
-
-
-
19,127,436
19,127,436
Feb 9, 2023
Feb 8, 2026
A$0.016
8,741,471
-
-
-
8,741,471
8,741,471
142,421,592
-
-
(94,552,685)
47,868,907
42,868,907
Weighted remaining contractual life
(years)
0.52
1.02
0.98
Weighted average exercise price
$ 0.032
$ 0.038 $ 0.036
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66
ANNUAL REPORT 2024
23. Share Based Payment Plans (continued)
No stock options were issued during the year ended 30 June 2024.
2023
On 24 October 2022, 19,127,436 Broker options (Broker Options) with a fair value of $124,105 were issued to Peak Asset
Management as part consideration for acting as corporate adviser and lead manager the capital raisings undertaken in
April, May and June 2022.
On 9 February 2023, 8,741,471 unlisted options with a fair value of $70,405 were issued to various consultants as part
consideration for acting as corporate advisers and lead manager of the capital raisings undertaken in November and
December 2022.
On 1 November 2022, the Company the Company issued 4,049 ordinary shares pursuant to an exercise of 4,049 listed
options at an exercise price of $0.03 per Share for proceeds of $121.
24 October 2022 Options
a)
options were issued with an exercise price of $0.03;
b)
expected life of options is 2.68 years;
c)
share price at grant date was $0.013;
d)
expected volatility of 112%, based on the history of the Company’s share prices for the expected life of the
options;
e)
expected dividend yield of nil; and
f)
a risk-free interest rate of 2.87%
On 27 July 2022, shareholders approved the issue of Options to Peak of 19,127,436 unlisted options (Broker Options) to
Peak Asset Management as part consideration for acting as corporate adviser and lead manager the capital raisings
undertaken in April, May and June 2022. The total fair value of $124,105 was recognised as share issue costs at 30 June
2022.
Grant date
Expiry date
Exercise
price
Balance at
start of the
year
Granted
during the
year
Exercised
during the
year
Expired during
the year
Balance at end
of the year
Exercisable at
end of the year
Number
Number
Number
Number
Number
Number
Nov 2, 2020
Nov 1, 2023
A$0.05
3,000,000
-
-
-
3,000,000
3,000,000
Jul 28, 2021
Jul 26, 2024
A$0.05
5,000,000
-
-
-
5,000,000
5,000,000
Dec 21, 2021
Oct 27, 2025
A$0.058
15,000,000
-
-
-
15,000,000
5,000,000
May 4, 2022
Nov 6, 2023
A$0.03
18,209,695
-
-
-
18,209,695
18,209,695
May 6, 2022
Nov 6, 2023
A$0.03
59,799,892
-
-
-
59,799,892
59,799,892
Jun 2, 2022
Nov 6, 2023
A$0.03
13,547,147
-
(4,049)
-
13,543,098
13,543,098
Oct 24, 2022
Apr 1, 2025
A$0.03
-
19,127,436
-
-
19,127,436
19,127,436
Feb 9, 2023
Feb 8, 2026
A$0.016
-
8,741,471
-
-
8,741,471
8,741,471
114,556,734
27,868,907
(4,049)
-
142,421,592
132,421,592
Weighted remaining contractual life
(years)
1.64
0.52
0.81
Weighted average exercise price
$ 0.035
$ 0.032 $ 0.030
For personal use only
POLARX LIMITED
67
ANNUAL REPORT 2024
23. Share Based Payment Plans (continued)
9 February 2023 Options
a)
options were issued with an exercise price of $0.016;
b)
expected life of options is 3.0 years;
c)
share price at grant date was $0.009;
d)
expected volatility of 200%, based on the history of the Company’s share prices for the expected life of the
options;
e)
expected dividend yield of nil; and
f)
a risk-free interest rate of 3.12%
On 28 July 2021, 5,000,000 Options with a fair value of $93,848 were issued to consultants as part remuneration for their
services.
28 July 2021 Options
g)
options were issued with an exercise price of $0.05;
h)
expected life of options is 3 years;
i)
share price at grant date was $0.033;
j)
expected volatility of 107%, based on the history of the Company’s share prices for the expected life of the
options;
k)
expected dividend yield of nil; and
l)
a risk-free interest rate of 0.16%
Options were fully vested at the time of issue. The total fair value of $93,848 was recognised as consulting fees and
included in “consulting and directors fees” in the consolidated statement of profit or loss and other comprehensive income.
On 21 December 2021, 15,000,000 Options with a fair value of $293,666 were issued to directors as part remuneration for
their services.
21 December 2021 Options
g)
options were issued with an exercise price of $0.058;
h)
expected life of options is 3.85 years;
i)
share price at grant date was $0.033;
j)
expected volatility of 101%, based on the history of the Company’s share prices for the expected life of the
options;
k)
expected dividend yield of nil; and
l)
a risk-free interest rate of 1.18%
Options were fully vested at the time of issue. The total fair value of $70,405 (2022: $124,105) was recognised as share
issue costs at 30 June 2023.
For personal use only
POLARX LIMITED
68
ANNUAL REPORT 2024
24. Contingent Liabilities
The Company has a contingent liability arising from the termination of a drilling contract in Paraguay in 2008,
subsequent to which Arbitration proceedings were commenced by the drilling contractor.
In August 2016, the Company received notice of the Arbitration Tribunal’s determination. Based on its review of the
Tribunal’s judgement and advice from its Paraguayan legal counsel, the Company assessed the quantum of
damages that may be payable by it to be approximately US$40,000 plus interest. Subsequently on 7 March 2018,
the Company received notice that the plaintiff was seeking a Paraguayan judicial order for the enforcement of an
arbitration award against the Company in the amount of US$123,853.
Subject to receiving a Paraguayan court order for execution of the Tribunal’s judgement, the Company intends to
defend any attempt to enforce the order in Australia. As at the date of this report the Company has not received
notice of a court order having been issued for the execution of the Tribunal’s judgement. No provision for a liability
was recognised as at 30 June 2024.
Refer also to Note 16 for the contingent payments and royalties applicable to the Caribou Dome, Stellar and
Humboldt Range properties.
25. Operating Segment
For management purposes, the Group is organised into one main operating segment, which involves mineral
exploration, predominantly for gold, copper and silver. All of the Group’s activities are interrelated, and discrete
financial information is reported to the Board (Chief Operating Decision Makers) as a single segment. Accordingly, all
significant operating decisions are based upon analysis of the Group as one segment. The financial results from this
segment are equivalent to the financial statements of the Group as a whole. The Group currently operates in
Australia and the USA. The following table shows the assets and liabilities of the Group by geographic region:
Consolidated
2024
$
2023
$
Assets
Australia
1,629,876
777,286
United States
34,703,601
39,655,618
Total Assets
36,333,477
40,432,904
Liabilities
Australia
1,104,388
77,100
United States
99,102
64,575
Total Liabilities
1,203,490
141,675
Operating Result
Australia
(1,281,784)
(1,485,286)
United States
(10,523,983)
(72,031)
Total loss from operations
(11,805,767)
(1,557,317)
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POLARX LIMITED
69
ANNUAL REPORT 2024
26.
Dividends
No dividend was paid or declared by the Company in the period since the end of the financial year and up to the date
of this report. The Directors do not recommend that any amount be paid by way of dividend for the financial year
ended 30 June 2024 (2023: Nil). The balance of the franking account as at 30 June 2024 is Nil (2023: Nil).
27.
At-The-Market Subscription Facility
On the 1 December 2023, the Company announced that it had entered into an At-The-Market subscription facility
(ATM Facility) with Acuity Capital Investment Management Pty Ltd (Acuity). The ATM Facility provides the
Company with up to $3,000,000 of standby equity over the period to 28 February 2027.
The Company has full discretion as to whether or not to utilise the ATM Facility, the maximum number of shares to be
issued, the minimum issue price of shares and the timing of each subscription (if any). There are no requirements on
the Company to utilise the ATM Facility and the Company may terminate the ATM Facility at any time, without cost or
penalty. There are no restrictions on the Company raising capital through other methods. If the Company does
decide to utilise the ATM Facility, it is able to set an issue price floor at its sole discretion, with the final issue price
being calculated as the greater of the nominated floor price and up to a 10% discount to a Volume Weighted Average
Price (VWAP) over a period of the Company's choosing (again at its sole discretion).
The ATM Facility establishment fee was $25,000. As security for the ATM Facility, the Company issued 80,000,000
Shares (Collateral Shares) at nil cash consideration to Acuity. Upon early termination or maturity of the ATM Facility,
the Company may buy back and cancel the Collateral Shares for no cash consideration (subject to shareholder
approval).
For personal use only
POLARX LIMITED
70
ANNUAL REPORT 2024
28. Information relating to PolarX Limited (“the parent entity”)
2024
2023
$
$
Current assets
1,621,560
767,192
Non-current assets
34,460,580
39,578,841
Total assets
36,082,140
40,346,033
Current liabilities
1,104,387
77,100
Non-current liabilities
-
-
Total liabilities
1,104,387
77,100
Net assets
34,977,753
40,268,933
Issued capital
109,365,058
102,571,857
Reserves
4,473,222
4,417,201
Retained losses
(78,860,527)
(66,720,125)
34,977,753
40,268,933
Profit/(Loss) of the parent entity
(12,140,402)
(470,490)
Total comprehensive income/ (loss) of the parent entity
(12,140,402)
(470,490)
Guarantees entered into by the parent entity in relation to
the debts of its subsidiaries
Guarantees provided
-
-
Contingent liabilities of the parent entity
-
-
-
-
Commitment for the acquisition of property, plant and
equipment by the parent entity
No longer than one year
-
-
Longer than one year and not longer than five years
-
-
Longer than five years
-
-
Any inconsistencies between the operating result figures in the Parent entity note and the Operating Segment note
(Note 25) are attributable to (i) impairment of intercompany loans at the Parent entity level only; and (ii) impairment to
the exploration and evaluation assets which are held by the subsidiaries.
For personal use only
POLARX LIMITED
71
ANNUAL REPORT 2024
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
The consolidated financial statements incorporate the assets, liabilities and results of the following controlled entities
in accordance with the accounting policy described in Note 3. Details of controlled entities and the disclosure
statement are as follows:
Name
Type of Entity
Trustee,
partner or
participant
in JV
% of
share
Place of
business/
country of
incorporation
Australian
resident or
foreign
resident
Foreign
jurisdiction(s)
of foreign
residents
Aldevco Inc.
Aldevco Pty Ltd
Coventry Minerals Pty Ltd
Crescent Resources (USA)
Inc.
Humboldt Range Inc
Vista Minerals (Alaska) Inc.
Vista Minerals Pty Ltd
Body Corporate
Body Corporate
Body Corporate
Body Corporate
Body Corporate
Body Corporate
Body Corporate
-
-
-
-
-
-
-
100%
100%
100%
100%
100%
100%
100%
USA
Australia
Australia
USA
USA
USA
Australia
Foreign
Australian
Australian
Foreign
Foreign
Foreign
Australian
USA
n/a
n/a
USA
USA
USA
n/a
-
-
For personal use only
POLARX LIMITED
72
ANNUAL REPORT 2024
DIRECTORS' DECLARATION
In accordance with a resolution of the directors of PolarX Limited, I state that:
In the opinion of the directors:
(a) the consolidated financial statements and notes are in accordance with the Corporations Act 2001, including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its performance for
the year ended on that date; and
(ii)
complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and
the Corporations Regulations 2001;
(b) the consolidated financial statements and notes also comply with International Financial Reporting Standards as
disclosed in note 3(a);
(c) the consolidated entity disclosure statement on page 71 is true and correct; and
(d) there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due
and payable.
This declaration has been made after receiving the declarations required to be made to the Directors in accordance with
section 295A of the Corporations Act 2001 for the financial year ended 30 June 2024.
On behalf of the Board
Mark Bojanjac
Executive Chairman
25 September 2024
For personal use only
Liability limited by a scheme approved under Professional Standards Legislation
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
Stantons Is a member of the Russell
Bedford International network of firms
25 September 2024
Board of Directors
PolarX Limited
Unit 25,
Level 3, 22 Railway Road
Subiaco WA 6008
Dear Directors
RE:
POLARX LIMITED
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following
declaration of independence to the directors of PolarX Limited.
As Audit Director for the audit of the financial statements of PolarX Limited for the year ended 30 June
2024, I declare that to the best of my knowledge and belief, there have been no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
Yours sincerely
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Martin Michalik
Director
For personal use only
Liability limited by a scheme approved under Professional Standards Legislation
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
Stantons Is a member of the Russell
Bedford International network of firms
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
POLARX LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of PolarX Limited (“the Company”), and its subsidiaries (“the Group”), which
comprises the consolidated statement of financial position as at 30 June 2024, the consolidated statement of
profit or loss & other comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the financial statements, including
a summary of material accounting policy information, the consolidated entity disclosure statement, and the
directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial
performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards
Board's APES 110: Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Group, would be in the same terms if given to the directors as at the time of this auditor’s
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material Uncertainty Relating to Going Concern
Without modifying our audit opinion expressed above, attention is drawn to the following matter.
As referred to in Note 2 to the financial statements, the consolidated financial report has been prepared on the
going concern basis. As at 30 June 2024, the Group had cash and cash equivalents of $1,564,266, and incurred
a loss after income tax of $11,805,767. The Group recorded net cash outflows in operating activities of
For personal use only
$1,325,066 and net cash outflows used in investing activities of $4,593,631, for the year ended 30 June 2024.
These events or conditions, along with other matters, indicate that a material uncertainty exists that may cast
significant doubt on the Group's ability to continue as a going concern.
The ability of the Group to continue as a going concern and meet its planned exploration, administration and
other commitments is dependent upon the Group raising further working capital and/or successfully exploiting
its mineral assets. In the event that the Group is not successful in raising further equity or successfully exploiting
its mineral assets, the Group may not be able to meet its liabilities as and when they fall due and the realisable
value of the Group’s current and non-current assets may be significantly less than book values.
Key Audit Matters
In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have
determined the matters described below to be Key Audit Matters to be communicated in our report.
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report of the current period. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Key Audit Matters
How the matter was addressed in the audit
Carrying Value of Exploration and Evaluation
Assets
As at 30 June 2024, Exploration and Evaluation
Assets totalled $34,075,655 (refer to Note 10 of
the financial report).
The carrying value of exploration and evaluation
assets is a key audit matter due to:
•
The
significance
of
the
expenditure
capitalised representing 94% of total assets;
•
The necessity to assess management’s
application of the requirements of the
accounting standard Exploration for and
Evaluation of Mineral Resources (“AASB 6”),
in light of any indicators of impairment that
may be present; and
•
The assessment of significant judgements
made by management in relation to the
capitalised
exploration
and
evaluation
expenditure.
Inter alia, our audit procedures included the
following:
i. Verifying the Group’s right to tenure over
exploration
assets
by corroborating
the
ownership of the relevant licences for mineral
resources to government registries and
relevant third-party documentation;
ii. Reviewing the directors’ assessment of the
carrying value of the capitalised exploration
and evaluation costs, ensuring the veracity of
the
data
presented
and
assessing
management’s
consideration
of
potential
impairment indicators, commodity prices and
the stage of the Group’s projects also against
AASB 6;
iii. Evaluation
of
Group
documents
for
consistency with the intentions for continuing
exploration and evaluation activities in areas of
interest and corroborated in discussions with
management. The documents we evaluated
included:
▪
Minutes of the board and management;
and
▪
Announcements made by the Group to the
Australian Securities Exchange; and
iv. Consideration
of
the
requirements
of
accounting standard AASB 6 and reviewed the
financial statements to ensure appropriate
disclosures are made.
For personal use only
Key Audit Matters
How the matter was addressed in the audit
Measurement of share-based payment
transactions
The Company has the following share-based
payment transactions for the financial year ended
30 June 2024:
(i)
961,812 shares with an issue price of
$0.014 per share as part consideration
for the amendments to the Company’s
option to acquire an interest in the
Caribou Dome Project in Alaska USA
(refer to Note 12).
(ii)
3,000,000
unlisted
options
and
91,552,685
listed
options
lapsed
during the year (refer to Notes 12 (e)
and 23).
During the financial year ended 30 June 2024, the
Group has also recognised a share-based
payment expense of $56,021 for the vesting of
options issued in the prior years.
Measurement of share-based payments was a
key audit matter due to the complex and
judgemental estimates used in determining the
fair value of the share-based payments.
Inter alia, our audit procedures included the
following:
i. Reviewing the relevant agreements to obtain
an understanding of the contractual nature
and terms and conditions of the share-based
payment arrangements;
ii. Assessing the assumptions used in the
Group’s valuation of share options being the
share price of the underlying equity, interest
rate, volatility, dividend yield, time to maturity
(expected life) and grant date;
iii. Assessing the allocation of the share-based
payment expense over the relevant vesting
period; and
iv. Assessing
the
appropriateness
of
the
disclosures in Note 23 to the consolidated
financial statement.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Group’s annual report for the year ended 30 June 2024 but does not include the financial report and our
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance opinion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Group are responsible for the preparation of:
a.
the financial report that gives a true and fair view in accordance with Australian Accounting Standards
and the Corporations Act 2001 (other than the consolidated entity disclosure statement); and
b.
the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and for such internal control as the directors determine is necessary to enable
the preparation of:
i.
the financial report that gives a true and fair view and is free from material misstatement,
whether due to fraud or error; and
ii.
the consolidated entity disclosure statement that is true and correct and is free from
misstatement, whether due to fraud or error.
For personal use only
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial report.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of material
misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity's internal control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report.
We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause
the Group to cease to continue as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in Internal control that we identify during our
audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements.
We also provide the Directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore 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
For personal use only
the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 24 to 28 of the directors’ report for the year ended
30 June 2024.
In our opinion, the Remuneration Report of PolarX Limited for the year ended 30 June 2024 complies with
section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Group are responsible for the preparation and presentation of the Remuneration Report in
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Martin Michalik
Director
West Perth, Western Australia
25 September 2024
For personal use only
POLARX LIMITED
79
ANNUAL REPORT 2024
ASX Additional Information
Additional information required by the Australian Stock Exchange Limited Listing Rules and not disclosed elsewhere in this
report. The additional information was applicable as at 18 September 2024.
Distribution of Listed Equity Security Holders
There are 2,375,500,978 listed fully paid ordinary shares on issue. Analysis of numbers of listed shareholders by size of
holding:
Holding
Number of shareholders
1 - 1,000
97
1,001 - 5,000
92
5,001 - 10,000
66
10,001 - 100,000
595
100,001 and over
826
1,676
There are 619 shareholders holding less than a marketable parcel of ordinary shares.
Statement of Restricted Securities
There are no restricted securities on issue.
Substantial Shareholders
The Company is of the view, after taking into account publicly available information, that the substantial shareholders of the
Company are as follows:
Shareholder
Number of shares
Northern Star Resources Limited
379,788,699
Ruffer LLP
187,496,165
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POLARX LIMITED
80
ANNUAL REPORT 2024
Voting Rights
The voting rights attached to each class of equity security are as follows:
Ordinary Shares
Each ordinary share is entitled to one vote when a poll is called otherwise each member present at a meeting or by proxy
has one vote on a show of hands.
Options
These securities have no voting rights.
Quoted Equity Security Holders
The names of the twenty largest listed ordinary shareholders of the Company as at 18 September 2024 are as follows:
Shareholder
Number of Shares
% of Issued
Capital
NORTHERN STAR RESOURCES LIMITED
379,788,699
15.99
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
260,822,543
10.98
CITICORP NOMINEES PTY LIMITED
130,359,239
5.49
ACUITY CAPITAL INVESTMENT MANAGEMENT PTY LTD
80,000,000
3.37
BNP PARIBAS NOMINEES PTY LTD
56,794,220
2.39
BNP PARIBAS NOMS PTY LTD UOBKH A/C R'MIERS
56,442,129
2.38
ANTANAS GUOGA
46,627,963
1.96
MR JAMES ALLAN DUFF
45,000,000
1.89
BNP PARIBAS NOMS PTY LTD
41,339,755
1.74
MR ROBERT KEITH BLANDEN + MS JOAN SYBIL BLANDEN
39,136,436
1.65
MR KEVIN BANKS-SMITH
27,500,000
1.16
EYEON INVESTMENTS PTY LTD
25,000,000
1.05
FIAGO PTY LTD
24,949,466
1.05
MR ROBERT KEITH BLANDEN + MS JOAN SYBIL BLANDEN
24,005,000
1.01
RADELL PTY LIMITED
20,000,000
0.84
1215 CAPITAL PTY LTD
19,173,369
0.81
MR MARTIN HUXLEY
19,001,912
0.80
WARBONT NOMINEES PTY LTD
18,766,864
0.79
DONG CHEN
18,438,436
0.78
OLGA DOKTOROVA
16,000,000
0.67
HAJEK FT CUSTODIANS PTY LTD
16,000,000
0.67
1,365,146,031
57.47
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POLARX LIMITED
81
ANNUAL REPORT 2024
Unquoted Equity Security Holders
Class
Number of
options
Number of
holders
Holders with more than 20%
Unlisted stock options each
exercisable at $0.03 on or
before 01/04/2025
19,127,436
1
10 Bolivianos Pty Ltd
Unlisted stock options each
exercisable at $0.058 on or
before 27/10/2025
15,000,000
3
Charles Frazer Tabeart (5,000,000)
Kallara Holdings Pty Ltd ATF JS &DER Bojanjac
Family Super Fund (5,000,000)
Orogen Investments Pty Limited
(5,000,000)
Unlisted stock options each
exercisable at $0.016 on or
before 08/02/2026
8,741,471
6
Mahe Investments Pty Ltd (2,094,766)
Richard George Michael Offer (2,348,505)
Peter John Hyland (2,348,504)
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POLARX LIMITED
82
ANNUAL REPORT 2024
Tenement Schedule
The tenement interests held by the Group as at 30 June 2024 are listed below:
Project
Location
Licence(s)
Ownership Interest
Caribou Dome Property
Alaska, USA
Caribou 1 - Caribou 20 (563243 - 563262)
Copper 1 - Copper 6 (588461 - 588466)
Copper 7 - Copper 11 (645375 - 645379)
CD 1 - CD66 (664859 - 664924)
CDS 001 - 038 (719949 - 7199861)
CD 001 - 040 (719909 - 719948)
CDE-01 - 20 (722216 - 722235)
CDE 26 (722241)
CD 41 - 51 (725113 - 725123)
SBX 71 (726910)
SBX 74 - 75 (726913 - 726914)
SBX 77 - 82 (726916 - 726921)
Option to earn 80%*
Option to earn 90%*
Stellar Copper Gold
Project
Alaska, USA
SB 154 - 155 (704562 - 704563),
SB 167 - 168 (704575 - 704576)
ZK 3 - 5 (704621 - 704623)
ZK 14 (704632)
ZK 19 - 21 (704637 - 704639)
Z 1 - 5 (709427 - 709431)
Z 6 - 10 (711728 - 711732)
SB 281 - 283 (714079 - 714081)
SB 297 - 299 (714095 - 714097)
SB 317 - 319 (714115 – 714117)
SB 346 - 348 (714144 - 714146)
SB 364 - 368 (714162 - 714166)
SB 376 - 379 (714174 - 714177)
SB 389 - 390 (714187 - 714188)
SB 417 (715392)
SBA 001 - 066 (721446 - 721511)
SBX 001 - 070 (724789 - 724858)
CDE 21 - 25 (722236 - 722240)
CDE 27 (722242)
SBX 72 - 73 (726911 - 726912)
SBX 76 (726915)
SBX 83 - 91 (726922 - 726930)
SBX 92 -121 (728878 - 728907)
100%
*Note: On 12 June 2024, the Company announced that it had given a notice of exercise in relation its option to acquire an 80% interest in
the Caribou Dome Property and a 90% interest in the adjoining Senator mineral claims (refer Note 16(a) to the Consolidated
Financial Statements)
For personal use only
POLARX LIMITED
83
ANNUAL REPORT 2024
Project
Location
Licence(s)
Ownership Interest
Humboldt Range
Project
Nevada, USA
FOJ 40, FOJ 42, FOJ 44, FOJ 60, FOJ 62, FOJ 203,
FOJ 262, SM 27, SM 29, SM 73-75, SM 103, SM
105, SM 107, SM 109, SM 111, SM 113 -116, SM
133-152, SM 160-163, SM 170-179, SM 198-203,
FOJ-249R, FOJ-251R, INCA # 1, INCA # 4-7, SM 3-
26, SM 43-72, SM 91-102, SM 104, SM 106, SM 108,
SM 110, SM 112, SM 117-126, FOJ 65-68, FOJ 99,
FOJ 102, FOJ 104, FOJ 106, FOJ 140, FOJ 142,
FOJ 190, FOJ 192, FOJ 194, FOJ 213, FOJ 215,
FOJ 217, FOJ 219, FOJ 244, FOJ 250, FOJ 252,
FOJ 258-261, FOJ 276, FOJ 278, FOJ 300, FOJ 302,
PFJ 01-96, PFJ 97-141, BC 01-15a, BC 15b-45
100% interest in a Mineral
Lease Agreement to
explore, develop and mine
the project
For personal use only