ANNUAL REPORT
30 JUNE 2023
Resource Base Limited
ABN 57 113 385 425
for the financial year ended 30 June 2023
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
1
CORPORATE INFORMATION
DIRECTORS
Mr Maurice Feilich
Non-Executive Chairman
Mr Brent Palmer
Executive Director
Mr Paul Hissey
Non-Executive Director
COMPANY SECRETARY
Mr Daniel Smith
REGISTERED AND PRINCIPAL OFFICE
Level 8, 99 St Georges Terrace
Perth WA 6000
Telephone (08) 9486 4036
Website www.resourcebase.com.au
POSTAL ADDRESS
PO Box 5638, St Georges Terrace
Perth WA 6831
AUDITORS
Moore Australia Audit (WA)
Exchange Plaza, 2 The Esplanade
Perth WA 6000
SHARE REGISTER
Computershare Investor Services Pty Limited
Level 11, 172 St Georges Terrace
Perth WA 6000
Resource Base Limited shares are listed on the Australian Securities Exchange (ASX code: RBX)
ACN
ABN
ASX Code
113 385 425
57 113 385 425
RBX
In this report, the following definitions apply:
“Board” means the Board of Directors of Resource Base Limited
“Resource Base” or the “Company” means Resource Base Limited ABN 57 113 385 425
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
2
CONTENTS
FOR THE YEAR ENDED 30 JUNE 2023
Contents
Directors’ Report
Remuneration Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cashflows
Consolidated Statement of Changes in Equity
Consolidated Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional ASX Information
4
11
18
19
20
21
22
23
45
46
50
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
3
DIRECTORS REPORT
FOR THE YEAR ENDED 30 JUNE 2023
The directors present their report, together with the financial statements, on the consolidated entity (referred to
hereafter as the 'consolidated entity') consisting of Resource Base Limited (referred to hereafter as the 'company'
or 'parent entity') and the entities it controlled at the end of, or during, the year ended 30 June 2023.
DIRECTORS
The following persons were directors of Resource Base Limited during the whole of the financial year and up to the
date of this report, unless otherwise stated:
Director
Brent Palmer
Maurice Feilich
Paul Hissey
Ailsa Osborne
James Myers
Shannon Green
Position
Non-Executive Director
Executive Director
Non-Executive Chairman
Non-Executive Director
Executive Director, CFO and
Company Secretary
Non-Executive Chairman
Non-Executive Director
Executive Chairman and CEO
Appointed
29 September 2022
1 May 2023
29 September 2022
12 July 2021
13 September 2022
13 September 2022
1 June 2020
1 June 2020
Resigned
30 November 2022
29 September 2022
13 September 2022
PRINCIPAL ACTIVITIES
During the financial year ended 30 June 2023 the Company’s primary focus was to advance development of its Mitre
Hill REE Project, the Wali and Ernst Lake lithium projects in Quebec, and the Black Range Project in Victoria.
DIVIDENDS
There were no dividends paid, recommended, or declared during the current or previous financial year.
REVIEW OF OPERATIONS
Mitre Hill Project
Background
The Mitre Hill Project is highly prospective for clay hosted Rare Earth Elements (REE) within the southern margin of
the Murray Basin on the South Australia / Victoria border. During the reporting period the Company released further
positive assay results from aircore drilling which led to a maiden JORC compliant resource at the 100% owned Mitre
Hill Project located in Victoria.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
4
DIRECTORS REPORT
FOR THE YEAR ENDED 30 JUNE 2023
Figure 1: EL007647 Tenement Location. Resource Base,23 August 2022.
EL007647
On 10 October 2022, the first batch of assay results from the aircore drilling program returned exciting results from
initial 16 holes drilled on EL007647 during the September 2022 Quarter, with 14 of the 16 holes, or 88%, intersecting
mineralisation. Notable results include intervals of 5m @ 1,106ppm TREO, 6m @ 619ppm TREO and 7m @ 640ppm
TREO with a maximum single meter grade of 2,502 ppm TREO have been returned, refer figures 1 above and 2
below.
Geologically, mineralisation at EL007647 is very similar to other Murray Basin clay hosted REE mineralisation
reported in the region and quite like that at EL007646 with the addition of dune sands overlying the clayey horizons.
On 14 December 2022, the Company announced results from the second batch of assay results. Exciting intercepts
included: 2.5m @ 1,841 ppm TREO, 2m @ 2,010 ppm TREO, 2m @ 1,344 ppm TREO, 4m @ 1,142 ppm TREO and
outstanding 1m intervals of 2,447 ppm TREO, and 1,336 ppm TREO.
Significant intercepts from the second batch of results are presented in Table 1 below.
Table 1: EL007647 Significant REE Intercepts (selected intercepts from >750ppm TREO, 350ppm lower cut-off, max
1m internal dilution data set). Resource Base 14 December 2022.
Hole ID
MHAC220260
MHAC220267
MHAC220244
MHAC220286
MHAC220266
MHAC220255
MHAC220279
MHAC220297
From (m)
12
4
15
4
5
12
3
2
Thickness (m)
1
2
2.5
2
1
1
1
4
TREO (ppm)
2,447
2,010
1,841
1,344
1,336
1,273
1,266
1,142
MREO (ppm)
715
585
504
283
334
349
249
262
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
5
DIRECTORS REPORT
FOR THE YEAR ENDED 30 JUNE 2023
Hole ID
MHAC220251
MHAC220272
MHAC220261
From (m)
9
5
8
Thickness (m)
2
1
1
TREO (ppm)
1,099
1,094
1,072
MREO (ppm)
280
253
236
Maiden JORC Resource
During the year, the Company announced a maiden JORC Inferred Mineral Resource estimate of 21 Mt @ 767 ppm
TREO consists of thick zones of near-surface mineralisation. Significantly, the existing resource has the potential
to substantially grow in size and scale as the Mineral Resource estimate only incorporates 38-62% of the identified
Exploration Target drilled to date. The Company has also completed significant aircore drilling in Exploration
Lease EL 7646 located approximately six (6) km east of EL 7647 however is not included in this Mineral Resource
estimate. Resource Base also estimated an Exploration Target at EL007647 of 13 Mt – 34 Mt at 630-830 ppm
TREO.
Following completion of the maiden Mineral Resource estimate, the Company is evaluating a follow-up aircore
program to convert a portion of the Exploration Target to a JORC resource, and to test further extensions of
REE mineralisation the Mitre Hill REE project.
The Mineral Resource estimate and Exploration Target is set out in the Table 2 below.
Table 2. Mitre Hill project (EL007647) Mineral Resources estimate and Exploration Target.
Tonnes
TREO
(Mt)
21
21
(ppm)
767
767
TREO –
CeO2
(ppm)
502
502
CREO
HREO
LREO
U3O8
ThO2
(ppm)
278
278
(ppm)
226
226
(ppm)
541
541
(ppm)
2
2
2
(ppm)
18
18
17- 19
13 - 34
630-830
420-550
230-300
190-250
440-580
Resource
Classification
JORC
Inferred
Total(1)
Exploration
Target (2)
Notes:
(1) Mineral Resources reported at a cut-off grade of 325 ppm TREO minus CeO2 (TREO-CeO2)
(2) The Exploration Target is reported at a cut-off grade range of 225 ppm TREO-CeO2 to 425 ppm TREO minus CeO2 (TREO-
CeO2). The potential quantity and grade of the Exploration Target is conceptual in nature and is therefore an
approximation. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further
exploration will result in the estimation of a Mineral Resource. The Exploration Target, being conceptual in nature, takes
no account of geological complexity, possible mining method or metallurgical recovery factors. The Exploration Target was
estimated in order to provide an assessment of the potential scale of exploration for the Mitre Hill project.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
6
DIRECTORS REPORT
FOR THE YEAR ENDED 30 JUNE 2023
Figure 2: Plan view showing location of mineralised drill holes on EL007647, coloured by maximum TREO grade
intercepted. Resource Base, 14 December 2022.
Metallurgical Testwork
On 5 July 2023, the Company announced the results of its preliminary metallurgical testwork for the Mitre Hill
REE Project to confirm the ionic nature of the deposit and therefore potential for conventional separation.
Two (2) assayed holes were randomly selected from within the mineralised envelope and test-work supervised
and conducted by Strategic Metallurgy laboratories in Perth, Western Australia. The aim of this initial phase
of testwork was to broadly understand the metallurgical and processing requirements to recover rare earths
from the Mitre Hill project. Simple bottle-roll leaching tests were undertaken under standard desorption
conditions of 1.25 M (166gpl lixiviant concentration) using ammonium sulfate as the lixiviant, at pH 3.0,
adjusted by addition of sulfuric acid, and left overnight for circa 16 hours.
Clay-hosted REE deposits have advantages over hard rock deposits as they typically contain a higher proportion
of magnet earth elements, within generally, shallow hosted deposits. Processing of ionic deposits is a more
simplistic process, as the acid separates the minerals with the rare earths remaining within the adsorbed
segment, creating superior mining economics.
Maximum recoveries of magnet REEs were as follows:
• Nd – 71.7%
•
Pr – 71.1%
• Dy – 59.8%
•
Tb – 59.0%
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
7
DIRECTORS REPORT
FOR THE YEAR ENDED 30 JUNE 2023
Black Range Project
The Black Range Project (619km2) in Victoria’s premier porphyry and VHMS target district, the Mount Stavely
Volcanic Complex (MSVC) in Western Victoria, captures three fault-bound segments of the MSVC volcanics
with a combined strike length of approximately 55kms. The Project includes the advanced Eclipse prospect,
which is prospective for copper, gold, and zinc.
In line with the status outlined in the Company’s prospectus and the June 2023 Quarterly Report, the Company
had been in ongoing correspondence with the Victorian Department of Earth Resources Regulation (ERR),
regarding the Retention Licence (RL) process for Black Range. As advised during the June quarter 2023, the ERR
requested additional information in relation to the Company’s RL submission, with the Company compiling
and submitting further information to ERR in support of the RL.
While the Company had consulted extensively with the Victorian Regulators and its tenement manager, the
Company was unable to satisfy the necessary geological evidence required to allow the granting of a RL over
the Black Range tenement in an outcome which was flagged as a key risk in the prospectus at the time of re-
admission. While there were avenues to explore opportunities to reapply for the tenements, this lengthy
process is not in-line with the Company's current corporate focus. The board has formally decided not to
pursue any further discussions around Black Range and will instead focus exclusively on its priority targets in
Quebec (Lithium) and at Mitre Hill (REE).
FINANCIAL POSITION
The company made a loss for the year of $4,035,805 (2022: $2,190,286). Cash reserves were $1,554,652 (30 June
2022: $2,143,967).
CORPORATE ACTIVITIES
On 23 August 2022, the Company advised that, 2,000,000 Tranche 1 Performance Rights forming part consideration
for the acquisition of 100% interest in Mitre Hill Pty Ltd vested and could therefore be exercised by the relevant
holder. The expiry date for the Performance Rights is 22 September 2025.
In October 2022, the Company raised a total of $753,750 (before costs) through a placement of 10.05 million new
shares to sophisticated and institutional investors at an offer price of A$0.075 per share.
On 1 May 2023, the Company announced a placement to raise a total of A$1.32 million (before costs) through the
placement of 11m new shares to sophisticated and institutional investors at an issue price of $0.12 per share.
On 1 May 2023, the Company advised that director Brent Palmer had moved to an executive position to help drive
exploration activities at the James Bay Lithium projects and the Company’s Australian projects.
EVENTS SUBSEQUENT TO REPORTING DATE
On 5 July 2023, the Company announced metallurgical results from the Mitre Hill project.
On 7 July 2023, the Company announced that 8,614,655 ordinary shares were due to be released from escrow.
On 1 August 2023, the Company announced that multiple pegmatites had been identified at the Wali project.
On 7 August 2023, the Company announced that exploration was commencing at the Wali and Ernst Lake projects,
Quebec.
On 20 September 2023, the provided an update on exploration activities at the Wali and Ernst Lake projects, Quebec,
with the identification of an abundant number of outcropping pegmatites.
On 27 September 2023, the Company provided an update on its Australian projects.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
8
DIRECTORS REPORT
FOR THE YEAR ENDED 30 JUNE 2023
There have been no other transactions or events of a material and unusual nature likely, in the opinion of the
Directors of the Company, to significantly affect the operations of the Company, the results of those operations, or
the state of affairs of the Company in future financial years.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
Likely developments in the operations of the consolidated entity are set out in the above review of operations in
this annual report. Any future prospects are dependent upon the results of future exploration and evaluation.
ENVIRONMENTAL REGULATION
The economic entity holds participating interests in a number of mining and exploration tenements. The various
authorities granting such tenements require the tenement holder to comply with the terms of the grant of the
tenement and all directions given to it under those terms of the tenement. There were no breaches of these
regulations during the 2023 or 2022 financial year.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 forms
part of the Directors’ Report and is included on page 18.
DIRECTOR AND COMPANY SECRETARY INFORMATION
Mr Maurice Feilich | Non-Executive Chairman
Appointed 29 September 2022
Qualifications: Bachelor of Commerce with a major in Marketing & Business
Other current directorships: QX Resources Limited.
Former directorships (last 3 years): Nil
Interests in Shares and Options over Shares in the Company: 1,333,333 shares, 2,000,000 unlisted options
Mr Feilich has been involved in investment markets for 30 years, commencing his career as an institutional derivative
broker at Mcintosh Securities (later Merrill Lynch) in 1998. He joined Tricom Equities in 2000 as head of Equities,
and in 2010 became a founding partner of Sanlam Private Wealth. Mr Feilich has a track record of success and solid
networks in the small resources sector and he has provided capital markets and funding support to a number of
listed companies.
Mr Brent Palmer | Executive Director
Appointed 29 September 2022
Qualifications: Bachelor of Commerce with a major in Property, Post Graduate in Mineral and Energy Economics.
Other current directorships: Nil.
Former directorships (last 3 years): Nil
Interests in Shares and Options over Shares in the Company: 3,091,667 shares, 1,200,000 unlisted options, 500,000
performance rights
Mr Palmer holds a Bachelor of Commerce with a major in Property from Curtin University, together with a Post
Graduate degree in Mineral and Energy Economics from the WA School of Mines. Mr Palmer has circa 10 years’
experience in the capital markets, specialising in trading and analysis of small caps. He has built a comprehensive
network and strong stockbroker relationships across Australia.
Mr Palmer is a member of the Australian Institute of Company Directors.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
9
DIRECTORS REPORT
FOR THE YEAR ENDED 30 JUNE 2023
Mr Paul Hissey | Non-Executive Director
Appointed 12 July 2021
Qualifications: Bachelor of Science (Hons) in Applied Geology, Graduate Diploma in Applied Finance, MBA.
Other current directorships: Nil.
Former directorships (last 3 years): Nil
Interests in Shares and Options over Shares in the Company: Nil
Mr Hissey has more than 20 years’ experience in the resources sector, split evenly between both mining and capital
markets. He commenced his career working in numerous open pit and underground, base and precious metals
operations in North Queensland, and lead the mine geology team at the world class Olympic Dam deposit in South
Australia for BHP. In addition, Mr Hissey worked as a UK-based technical consultant on a range of commodities
through Europe and Africa conducting due diligence and resource estimates, before returning to the Victorian gold
fields as a resource geologist and eventually transitioning to equities markets.
Mr Hissey spent a combined 10 years as a rated equity analyst with Goldman Sachs and Royal Bank of Canada writing
institutional research on the full suite of Australian publicly listed mining companies providing extensive exposure
to not only leading mining companies and their executives but also resource investors worldwide. Mr Hissey is
Currently Chief Financial Officer of ASX listed exploration company Navarre Minerals Limited.
He holds a Bachelor of Science (Hons) in Applied Geology from the University of South Australia as well as a Graduate
Diploma in Applied Finance from Kaplan and an MBA from the Chifley Business School (La Trobe University). Mr
Hissey has been a Member of the AusIMM for more than 20 years.
Ms Ailsa Osborne| Director
Appointed CFO on 1 December 2021, Company Secretary on 1 January 2022 and Executive Director 13 September
2022; resigned 30 November 2022
Qualifications: B Buss. CPA
Other current directorships: Xlr8 Metals Limited
Former directorships (last 3 years): Nil
Interests in Shares and Options over Shares in the Company: 10,000 shares held indirectly
Ms Osborne has more than 17 years of professional experience in the mineral resources industry. Ms Osborne most
recently was Chief Financial Officer and Company Secretary of Pathfinder Resources Limited (ASX:PF1) and has held
senior finance roles in a number of listed companies operating in Australia and Internationally including, South
America, Indonesia, and Africa.
Ms Osborne’s qualifications include, CPA, BComm. Accounting and Business Law, and a Graduate Diploma of Applied
Corporate Governance and Risk Management.
Mr Shannon Green | Executive Chairman & CEO
Appointed 1 June 2020, Resigned 13 September 2022
Qualifications: Qld SSE Mine Managers Certificate, Graduate Diploma Mining Engineering, Diploma of Mining
(Surface & underground) and a Diploma of (Finance)
Other current directorships: NorTech Strategic Minerals Limited, XLR8 Metals Limited
Former directorships (last 3 years): Pathfinder Resources Ltd (ASX: PF1), Lindian Resources Limited (ASX: LIN)
Interests in Shares and Options over Shares in the Company: 1,500,000 options held indirectly
Mr Green has considerable corporate experience includes, project transactions, capital raisings, marketing, technical
and commercial due diligence experience. Mr Green has over 20 years mining and project development, corporate,
resource development and mining operations experience, with extensive experience working in Africa and Australia
having managed several significant projects from Feasibility through construction and into operation and held senior
leadership roles with several Australian iron ore and gold mining operations.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
10
DIRECTORS REPORT
FOR THE YEAR ENDED 30 JUNE 2023
Mr James Myers | Non-Executive Chairman
Appointed 1 June 2020; resigned 29 September 2022
Qualifications: Nil
Other current directorships: NorTech Strategic Minerals Limited, Alice Queen Limited (ASX:AQX)
Former directorships (last 3 years): Pathfinder Resources Ltd (ASX: PF1)
Interests in Shares and Options over Shares in the Company: 100,000 shares and 1,500,000 options held indirectly
Mr Myers has over 15 years’ experience in numerous equities dealing and corporate advisory roles specifically
focused on providing capital and deal generation for the small-cap sector. Mr Myers is the founder of and Managing
Director of Molo Capital.
Mr Daniel Smith | Company Secretary
Appointed 25 January 2023
Mr Smith is a Chartered Secretary who holds a BA, is a Fellow member of the Governance Institute of Australia, and
has in excess of 15 years primary and secondary capital markets expertise. Mr Smith is currently a Director and/or
Company Secretary of several AIM-listed and ASX-listed companies
Ms Ailsa Osbourne | Company Secretary
Appointed 1 January 2022, Resigned 25 January 2023
MEETINGS OF DIRECTORS
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2023,
and the number of meetings attended by each director were:
Director
Brent Palmer
Maurice Feilich
Paul Hissey
Jamie Myers
Shannon Green
Ailsa Osbourne
Directors’ meetings
Held while in office
Attended
2
2
4
2
1
2
2
2
4
2
1
2
REMUNERATION REPORT (Audited)
The report details the nature and amount of remuneration for the Key management personnel of Resource Base
Limited in accordance with the requirements of the Corporations Act 2001 and its Regulations. For the purposes
of this report, the term “executive” encompasses all directors of the Company.
Remuneration consists of a fixed remuneration and a long-term incentive portion as considered appropriate. The
Board believes that options are an effective remuneration tool which preserves the cash reserves of the company
whilst providing valuable remuneration.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
11
The remuneration report is set out under the following main headings:
DIRECTORS REPORT
FOR THE YEAR ENDED 30 JUNE 2023
Principles used to determine the nature and amount of remuneration
Executive service agreements
•
• Details of remuneration
•
• Non-executive director service contracts
•
• Additional information
• Additional disclosures relating to key management personnel
Share-based compensation
Principles used to determine the nature and amount of remuneration
The Board has structured a remuneration framework that is market competitive and complementary to the reward
strategy of the consolidated entity and company.
The reward framework is designed to align rewards to shareholders' interests. The Board have considered that it
should seek to enhance shareholders' interests by:
•
•
focus on sustained growth in shareholder wealth through growth in share price, and delivering constant
or increasing return on assets as well as focusing the directors on key non-financial drivers of value; and
attracting and retains high calibre executives.
In accordance with best practice corporate governance, the structure of non-executive director and executive
director remuneration is separate.
Non-executive directors’ remuneration
Non-executive directors' fees are paid within an aggregate limit which is approved by the shareholders from time
to time. Retirement payments, if any, are agreed to be determined in accordance with the rules set out in the
Corporations Act at the time of the Directors retirement or termination. Non-Executive Directors remuneration
may include an incentive portion of bonuses and/or options as considered appropriate by the Board, which may
be subject to shareholder approval in accordance with the ASX listing rules.
The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is
apportioned amongst directors is reviewed annually. The Board considers the amount of director fees being paid
by comparable companies with similar responsibilities and the experience of the non-executive directors when
undertaking the annual review process.
The Company determines the maximum amount for remuneration, including thresholds for share-based
remuneration, for directors by resolution. Currently, the maximum amount of remuneration allocated to all non-
executive directors approved by shareholders is $300,000. Further details regarding components of director and
executive remuneration are provided in the remuneration report.
Executive remuneration
In determining the level and make up of executive remuneration, the Board negotiates a remuneration to reflect
the market salary for a position and individual of comparable responsibility and experience. Due to the limited size
of the Company and of its operations and financial affairs, the use of a separate remuneration committee is not
considered appropriate. Remuneration is regularly compared with the external market by participation in industry
surveys and during recruitment activities generally. If required, the Board may engage an external consultant to
provide independent advice in the form of a written report detailing market levels of remuneration for comparable
executive roles.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
12
DIRECTORS REPORT
FOR THE YEAR ENDED 30 JUNE 2023
Company performance, shareholder wealth and director and executive remuneration
The remuneration policy has been tailored to increase goal congruence between shareholders, directors and
executives. The achievement of this aim has been through the issue of options to directors to encourage the
alignment of personal and shareholder interests. The recipients of the options are responsible for growing the
Company and increasing shareholder value. If they achieve this goal, the value of the options granted to them will
also increase. Therefore, the options provide an incentive to the recipients to remain with the Company and to
continue to work to enhance the Company’s value.
Use of remuneration consultants
The company has not made use of remuneration consultants during the current or prior financial years.
Voting and comments made at the company's 30th November 2022 Annual General Meeting ('AGM')
On 30 November 2022 the Remuneration Report was carried on a poll. 95.65% of votes cast on the poll in support
of the adoption of the remuneration report for the year ended 30 June 2022.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity are set out in the following
tables.
30 June 2023
Non-Executive Directors
Maurice Feilich (appointed
29 September 2022)
Paul Hissey
James Myers (resigned 29
September 2022)
Executives
Brent Palmer1
Daniel Smith2
Shannon Green (resigned
13 September 2022)
Ailsa Osborne3
Ian Cameron4
Total Remuneration
Note:
Short Term Employment
Benefits
Salary & Fees
$
Bonus
$
Post
Employment
Benefits
Super-
annuation
$
Termination
Benefits
Equity Settled
Share Based
Payments
Salary
$
Options
$
Total
$
45,455
50,000
13,813
46,273
44,000
91,288
120,773
94,783
506,385
-
-
-
-
-
-
-
-
-
4,773
5,250
-
4,859
-
22,125
10,867
9,518
57,392
-
-
-
-
-
150,000
-
-
97,597
147,825
-
-
55,250
13,813
48,799
-
-
-
-
99,931
44,000
263,413
131,640
104,301
860,173
150,000
146,396
1. Brent Palmer was appointed 29 September 2022 and has become a full-time executive director since 1
May 2023.
2. Daniel Smith was appointed the Company Secretary 25 January 2023.
3. Ailsa Osborne was appointed Executive Director 13 September 2022 and resigned as a director 30
November 2022. Ailsa Osborne resigned as the Company Secretary and the Chief Financial Officer 25
January 2023.
Ian Cameron resigned 2 January 2023 as Exploration Manager.
4.
All remuneration for the directors and executives paid in the year ended 30 June 2023 was fixed.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
13
DIRECTORS REPORT
FOR THE YEAR ENDED 30 JUNE 2023
30 June 2022
Short Term Employment
Benefits
Non-Executive Directors
Jamie Myers
John Lewis
Paul Hissey
Executives
Shannon Green
Ian Cameron
Ailsa Osborne
Total Remuneration
Salary & Fees
$
50,000
53,667
50,000
305,227
129,231
113,077
701,202
Bonus
$
100,000
100,000
-
100,000
-
-
300,000
Post
Employment
Benefits
Super-
annuation
$
5,000
5,367
5,000
5,000
12,000
10,500
42,867
Termination
Benefits
Equity Settled
Share Based
Payments
Salary
$
-
-
-
-
-
-
-
Options
$
221,742
221,742
-
221,742
-
-
665,226
Total
$
376,742
380,776
55,000
631,969
141,231
123,577
1,709,295
Executive service agreements (ESA)
Remuneration and other terms of employment for key management personnel are formalised in the Executive
Service Agreements (ESA). Details of these agreements are as follows:
Name:
Title:
Agreement commenced:
Details:
Termination:
Brent Palmer
Executive Director
1 May 2023
$150,000 per year plus statutory superannuation
One month’s notice
Name:
Title:
Agreement commenced:
Details:
Name:
Title:
Agreement commenced:
Agreement ceased
Details:
Termination:
Name:
Title:
Agreement commenced:
Agreement ceased:
Details:
Termination:
Name:
Title:
Agreement commenced:
Agreement ceased:
Details:
Termination:
Daniel Smith (under a consultancy agreement with Minerva Corporate Pty
Ltd)
Company Secretary
25 January 2023
$8,000 + GST per month for company secretarial and accounting service
Shannon Green
Executive Chairman and Chief Executive Officer
1 June 2020
13 September 2022
$300,000 per year plus statutory superannuation
Six months’ notice
Ailsa Osborne
Chief Financial Officer and Company Secretary
1 December 2021
25 January 2023
$180,000 per year plus statutory superannuation
Three months’ notice
Ian Cameron
Exploration Manager
1 November 2021
5 January 2023
$180,000 per year plus statutory superannuation
One months’ notice
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
14
DIRECTORS REPORT
FOR THE YEAR ENDED 30 JUNE 2023
Expenses
The Company will reimburse the Executive for all reasonable expenses incurred by them in the performance of all
duties in connection with the business of the Company.
The EAS otherwise contains provisions considered standard for an agreement of its nature (including
representations and warranties and confidentiality provisions).
Non-executive director service contracts
On appointment to the Board all non-executive directors enter into a service agreement with the Company in the
form of a letter of appointment. The term of appointment of all non-executive directors is subject to re-nomination
and re-election and Annual General Meetings. There is no notice period required by non-executive directors and
non-executive directors are not entitled to annual or long service leave benefits.
Share-based compensation
Issue of shares
There were no shares issued to directors and other key management personnel as part of compensation during
the year ended 30 June 2023.
Options
A total of 3,000,000 options were issued to Directors as compensation during the financial year ended 30 June
2023. The valuation of the share-based payment transactions is measured by reference to fair value of the equity
instruments at the date at which they are granted. The fair value has been determined using the Black-Scholes
model, taking into account the terms and conditions upon which the options were granted.
The following inputs were used to value the options on issue:
Fair value per option
Number of options
Grant date
Expiry date
Exercise price
% vested
Expected volatility
Implied option life
Expected dividend yield
Risk free rate
Underlying share price at grant date
Maurice Feilich
Brent Palmer
$0.049
2,000,000
14 Dec 22
14 Dec 27
$0.20
100%
100%
5 years
Nil
3.5%
$0.091
$0.049
1,000,000
14 Dec 22
14 Dec 27
$0.20
100%
100%
5 years
Nil
3.5%
$0.091
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
15
DIRECTORS REPORT
FOR THE YEAR ENDED 30 JUNE 2023
Additional information
The earnings of the consolidated entity for the five years to 30 June 2023 are summarised below:
Loss before income tax
Loss after income tax
Share price at financial year end*
Basic loss per share (cents per
share)
2023
$
(4,035,805)
(4,035,805)
0.18
2022
$
2021
$
(2,190,286)
(2,190,286)
0.13
(1,659,785)
(1,659,785)
-
2020
$
(897,898)
(897,898)
-
2019
$
(886,510)
(886,510)
-
(6.35)
(4.36)
(6.97)
(3.27)
(3.22)
*: The company was suspended from official quotation at 30 June 2019 and was removed from the Official List of
ASX on 20 November 2020 and was subsequently requoted on the Official List of the ASX on 12 July 2021 after a
successful IPO.
Additional disclosures relating to key management personnel
Shareholding
The movement during the reporting period in the number of ordinary shares in Resource Base Limited held
directly, indirectly or beneficially, by each key management personnel including their related parties, is as follows:
Maurice Feilich
Brent Palmer
Paul Hissey
Shannon Green (resigned 13
September 2022)
James Myers (resigned 29
September 2022)
Ailsa Osborne (appointed 22
September 2022, resigned 30
November 2022)
Held at start of the
year or date of
appointment
number
-
2,425,000
-
-
100,000
10,000
2,535,000
Granted as
compensation
number
-
-
-
-
-
-
-
Held at the end of
the year or date of
resignation
number
1,333,333
3,091,667
Purchases
number
1,333,333
666,667
-
-
-
-
-
-
100,000
10,000
2,000,000
6,535,000
Options
The movement during the reporting period in the number of options in Resource Base Limited held directly,
indirectly or beneficially, by each key management personnel including their related parties, is as follows:
Maurice Feilich
Brent Palmer
Paul Hissey
Held at start of the
year or date of
appointment
number
-
200,000
-
-
Granted as
compensation
number
2,000,000
1,000,000
-
3,000,000
- End of Remuneration Report -
Held at the end of
the year or date of
resignation
number
2,000,000
1,200,000
-
3,200,000
Purchases
number
-
-
-
-
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
16
DIRECTORS REPORT
FOR THE YEAR ENDED 30 JUNE 2023
Shares under option
There were 20,185,640 ordinary shares of Resource Base Limited under option outstanding at 30 June 2023.
Shares issued on the exercise of options
There were no ordinary shares of Resource Base Limited issued on the exercise of options during the year ended
30 June 2023 and up to the date of this report.
Indemnity and insurance of officers
The company has indemnified the directors and executives of the company for costs incurred, in their capacity as
a director or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year the Company paid a premium in respect of a contract insuring the Directors and officers
of the Company and its controlled entities against any liability incurred in the course of their duties to the extent
permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability
and the amount of the premium.
Indemnity and insurance of auditor
The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor
of the company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the
company or any related entity.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings
on behalf of the company, or to 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 part of those proceedings.
Non-audit services
There were no other non-audit services provided during the financial year by the auditor.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is
set out immediately after this directors' report.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations
Act 2001.
On behalf of the Directors,
Maurice Feilich | Non-Executive Chairman
29 September 2023
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
17
Moore Australia Audit (WA)
Level 15, Exchange Tower,
2 The Esplanade, Perth, WA 6000
PO Box 5785, St Georges Terrace, WA 6831
T +61 8 9225 5355
F +61 8 9225 6181
www.moore-australia.com.au
AUDITOR’S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF RESOURCE BASE LIMITED
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2023, there have
been:
a) no contraventions of the auditor independence requirements as set out in the Corporations Act
2001 in relation to the audit, and
b) no contraventions of any applicable code of professional conduct in relation to the audit.
SUAN-LEE TAN
PARTNER
MOORE AUSTRALIA AUDIT (WA)
CHARTERED ACCOUNTANTS
Signed at Perth this 29th day of September 2023.
Moore Australia Audit (WA) – ABN 16 874 357 907.
An independent member of Moore Global Network Limited - members in principal cities throughout the world.
Liability limited by a scheme approved under Professional Standards Legislation.
18
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
30 Jun 2023
30 Jun 2022
Interest revenue
Other income
Expenses
Compliance and regulatory costs
Consulting and professional fees
Employee benefits
Share based payments expense
Other expenses
Finance costs
Exploration expenses
Impairment for exploration and evaluation assets
Loss before income tax expense
Income tax expense
Loss after income tax expense for the year attributable
to the owners of Resource Base Limited
Other comprehensive income for the year
Total comprehensive loss for the year attributable to the
owners of Resource Base Limited
Earnings per share for loss attributable to the owners of
Resource Base Limited
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
4
13
4
7
5
24
24
Notes
4
4
$
7,978
16,525
(119,721)
(50,732)
(520,584)
(288,487)
(309,173)
(21,387)
(33,010)
(2,717,214)
$
224
-
(87,883)
(51,700)
(644,435)
(949,915)
(447,244)
(9,333)
-
-
(4,035,805)
(2,190,286)
-
-
(4,035,805)
(2,190,286)
-
-
(4,035,805)
(2,190,286)
(6.35)
(6.35)
(4.36)
(4.36)
The above consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the
accompanying notes.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
19
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
30 Jun 2023
30 Jun 2022
Notes
$
$
Assets
Current assets
Cash and cash equivalents
Term deposits
Prepayments
Total current assets
Non-current assets
Exploration and evaluation
Plant and equipment
Other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Provisions
Borrowings
Total current liabilities
Non-current liabilities
Borrowings
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
6
7
8
9
10
10
11
12
1,554,652
2,143,967
31,828
51,457
-
27,964
1,637,937
2,171,931
4,067,550
4,814,226
194,755
30,600
377,187
10,000
4,292,905
5,201,413
5,930,842
7,373,344
64,861
-
-
64,861
-
-
218,011
49,937
9,759
277,707
47,115
47,115
64,861
324,822
5,865,981
7,048,522
29,766,069
26,821,292
1,524,562
1,616,075
(25,424,650)
(21,388,845)
5,865,981
7,048,522
The above consolidated statement of financial position is to be read in conjunction with the accompanying notes.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
20
CONSOLIDATED STATEMENT OF CASH FLOWS
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Cash flows from operating activities
Receipts from other income
Payments to suppliers and employees
Interest received
Interest and other finance costs paid
30 Jun 2023
30 Jun 2022
Notes
$
10,000
$
-
(1,164,664)
(1,873,531)
(1,154,664)
(1,873,531)
7,978
(21,387)
224
(9,333)
Net cash flows used in operating activities
23
(1,168,073)
(1,882,640)
Cash flows from investing activities
Proceeds from disposal of plant and equipment
Investments in term deposit
Payments for exploration expenditure
Payments for plant and equipment
Net cash flows used in investing activities
Cash flows from financing activities
Proceeds from share issue
Share issue costs
Proceeds from borrowings
Repayment of borrowings
Net cash flows generated from financing activities
106,500
(31,828)
-
-
(1,303,518)
(1,913,226)
(37,299)
(327,032)
(1,266,145)
(2,240,258)
2,024,490
(122,716)
51,795
(108,666)
1,844,903
6,700,000
(394,551)
-
(136,521)
6,168,928
Net increase/ (decrease) in cash and cash equivalents
(589,315)
2,046,030
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
6
2,143,967
1,554,652
97,937
2,143,967
The above consolidated statement of cash flows is to be read in conjunction with the accompanying notes.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
21
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Issued Capital
Reserves
Accumulated
losses
Total equity
$
$
$
$
Balance at 1 July 2021
Loss for the year
Total comprehensive loss for the year
14,932,001
46,583
(19,198,559)
(4,219,975)
-
-
-
-
(2,190,286)
(2,190,286)
(2,190,286)
(2,190,286)
Transactions with owners in their capacity
as owners
Shares issued
Costs of shares issued
Tranche 1 performance rights
Options issued
12,570,000
(46,583)
(680,709)
-
-
286,159
380,000
949,916
-
-
-
-
12,523,417
(394,550)
380,000
949,916
Balance at 30 June 2022
26,821,292
1,616,075
(21,388,845)
7,048,522
Balance at 1 July 2022
Loss for the year
Total comprehensive loss for the year
26,821,292
1,616,075
(21,388,845)
7,048,522
-
-
-
-
(4,035,805)
(4,035,805)
(4,035,805)
(4,035,805)
Transactions with owners in their capacity
as owners
Shares issued
Costs of shares issued
Options issued
3,067,490
(380,000)
(122,713)
-
-
288,487
-
-
-
2,687,490
(122,713)
288,487
Balance at 30 June 2023
29,766,069
1,524,562
(25,424,650)
5,865,981
The above consolidated statement of changes in equity is to be read in conjunction with the accompanying notes.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
22
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
CORPORATE INFORMATION
1.
Resource Base Limited (“Resource Base” or the “Company”) is a company domiciled in Australia. The Company’s
registered office and its principal place of business is Level 8 , 99 St Georges Terrace, Perth, Western Australia.
Resource Base’s principal activity is mineral exploration and it is a for-profit entity for the purposes of preparing the
financial statements.
These financial statements are for Resource Base and its controlled entities (“the Group”) and are presented in
the Australian currency. The Consolidated Financial Statements were authorised for issue by the directors
on 29 September 2023. The directors have the power to amend and reissue the Financial Statements.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
2.
The principal accounting policies adopted in the preparation of the financial statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated.
Adoption of new and amended accounting standards
2.1.
New and revised Standards and amendments thereof and interpretations effective for the current year that are
relevant to the Group include:
AASB 2020-3 Amendments to the Australian Accounting Standards – Annual Improvements 2018-2020 and Other
Amendments;
AASB 2021-7 Amendments to Australian Accounting Standards – Effective Date of Amendments to AASB 10 and AASB
128 and Editorial Corrections (insofar as the Standard relates to editorial corrections that are effective for the current
year).
The Group has adopted all of the new, revised or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period, and
determined that there was no material impact on its financial statements in the current reporting year.
At the date of authorisation of the Financial Statements, the Standards applicable to the Group’s business listed
below were in issue but not yet effective. The potential effect of the revised Standards on the Group’s financial
statements has not yet been determined.
AASB 2020-1Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non -
Current, AASB 2020-6 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or
Non-Current – Deferral Effective Date and AASB 2022-6 Amendments to Australian Accounting Standards – Non-
current Liabilities with Covenants, effective for annual reporting periods beginning on or after 1 January 2024;
AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of
Accounting Estimates, effective for annual reporting periods beginning on or after 1 January 2023;
AASB 2021-5 Amendments to Australian Accounting Standards – Deferred Tax related to Assets and Liabilities arising
from a Single Transaction, effective for annual reporting periods beginning on or after 1 January 2023.
AASB 2022-7 Editorial Corrections to Australian Accounting Standards and repeal of Superseded and Redundant
Standards, effective for annual reporting periods beginning on or after 1 January 2023.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
23
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Basis of preparation
2.2.
These general purpose financial statements have been prepared in accordance with the Corporations Act 2001 (Cth)
(Corporations Act) and Australian Accounting Standards and other authoritative pronouncements issued by the
Australian Accounting Standards Board (AASB). Compliance with Australian Accounting Standards ensure the
financial statements and notes comply with International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB). Consequently, this financial report has complied with IFRS as
issued by the IASB.
These Consolidated Financial Statements have been prepared on the historical cost basis, except for certain financial
instruments that are measured at fair values at the end of each reporting period, as explained in the accounting
policies below. Historical cost is generally based on the fair values of the consideration given in exchange for assets.
All amounts are presented in Australian dollars.
2.3. Going concern basis
This report has been prepared on the going concern basis, which contemplates the continuity of normal business
activity and the realisation of assets and settlement of liabilities in the normal course of business.
The Group incurred a net loss after tax for the year ended 30 June 2023 of $4,035,805 (2022: $2,190,286) and
experienced net cash outflows from operating activities of $1,168,073 (2022: $1,882,640). At 30 June 2023, the cash
and cash equivalents balance was $1,554,652 (2022: $2,143,967).
The ability of the Group to continue as a going concern is principally dependent upon the ability of the Company
raising capital from equity and debt markets as completed during the year and managing cashflow in line with
available funds. These conditions indicate a material uncertainty that may cast significant doubt on whether the
Group is able to continue as a going concern.
The Directors have prepared a cash flow forecast, which indicates that the Group will have sufficient cash flows to
meet all currently forecasted commitments and working capital requirements for the 12 month period from the
date of signing this financial report.
During the year, the Company raised $2,024,490 (2022: $6,700,000) from equity markets. The Company may need
to raise further capital in order to fund future exploration programs.
Based on the cash flow forecasts, and other factors referred to above, the directors are satisfied that the going
concern basis of preparation is appropriate. In particular, given the Company’s history of raising capital to date, the
Directors are confident of the Company’s ability to raise additional funds as and when they are required, should the
need arise.
The financial statements do not include any adjustments relating to the recoverability and classification of asset
carrying amounts or to the amount and classification of liabilities that might result should the Group be unable to
continue as a going concern and meet its debts as and when they fall due.
Principles of consolidation
2.4.
The consolidated financial statements incorporate the financial statements of the Company and entities controlled
by the Company (its subsidiaries) made up to 30 June 2023. Control is established when the Company:
-
-
-
has the power over the investee;
is exposed, or has rights, to variable returns from its involvement with the investee;
has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements of control listed above.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
24
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the
Company loses control of the subsidiary. Specifically, the results of subsidiaries acquired or disposed of during the
year are included in profit or loss from the date the Company gains control until the date when the Company ceases
to control the subsidiary. Where necessary, adjustments are made to the financial statements of subsidiaries to
bring the accounting policies used into line with the Group’s accounting policies. All intragroup assets and liabilities,
equity, income, expenses and cash flows relating to transactions between the members of the Group are eliminated
on consolidation.
2.5. Operating segments
Operating segments are presented using the 'management approach', where the information presented is on the
same basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is
responsible for the allocation of resources to operating segments and assessing their performance. The CODM are
the board of directors.
Income tax
2.6.
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the
applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities
attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where
applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied
when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively
enacted, except for:
- When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or
liability in a transaction that is not a business combination and that, at the time of the transaction, affects
neither the accounting nor taxable profits; or
- When the taxable temporary difference is associated with interests in subsidiaries, associates or joint
ventures, and the timing of the reversal can be controlled and it is probable that the temporary difference
will not reverse in the foreseeable future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable
that future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date.
Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will
be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised
to the extent that it is probable that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets
against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same
taxable authority on either the same taxable entity or different taxable entities which intend to settle
simultaneously.
2.7. Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term,
highly liquid investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value.
Plant and equipment
2.8.
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost
includes expenditure that is directly attributable to the acquisition of the items.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
25
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Depreciation is calculated on a straight-line basis to write off the net cost of each item of plant and equipment
(excluding land) over their expected useful lives as follows:
Plant and equipment
Computer equipment
Vehicles
5 years
3-5 years
5 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each
reporting date.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit
to the Group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
Exploration and evaluation
2.9.
Expenditure on acquisition, exploration and evaluation relating to an area of interest is carried forward where rights
to tenure of the area of interest are current and;
-
-
It is expected that expenditure will be recouped through successful development and exploitation of the
area of interest or alternatively by its sale; and/or
Exploration and evaluation activities are continuing in an area of interest but at balance date have not yet
reached a stage which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves.
Where the technical feasibility and commercial viability of extracting a mineral resource have been demonstrated
then any capitalised exploration and evaluation expenditure is reclassified as capitalised “mine properties in
development”. Prior to reclassification, capitalised exploration and evaluation expenditure is assessed for
impairment.
Exploration and evaluation assets are reviewed at each reporting date for indicators of impairment and are tested
for impairment where such indicators exist. If testing performed indicates that the carrying value might not be
recoverable the asset is written down to its recoverable amount. Any such impairment is recognised in profit or loss
for the year.
Accumulated costs in relation to an abandoned area are written off to profit or loss in the period in which the
decision to abandon the area in made.
An impairment loss is reversed to the extent that the asset’s carrying amount does not exceed the recoverable
amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would
have been determined had no impairment loss been recognised for the asset in previous years.
Trade and other payables
2.10.
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial
year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not
discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
2.11. Provisions
Provisions are recognised when the Group has a present (legal or constructive) obligation as a result of a past event,
it is probable the Group will be required to settle the obligation, and a reliable estimate can be made of the amount
of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle
the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the
obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to
the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
26
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2.12. Employee benefits
Accumulation Superannuation Funds
Obligations for contributions to accumulation superannuation funds are recognised as an expense in profit or loss
when they are due.
Short-Term Benefits
Liabilities for wages and salaries, including non-monetary benefits, and annual leave expected to be wholly settled
within 12 months of the reporting date are recognised in current liabilities in respect of employees’ services up to
the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.
Long-Term Benefits
Liabilities for long service leave not expected to be settled wholly within 12 months after the end of the period in
which the employees render the related service are recognised in the provision for employee benefits and measured
as the present value of expected future payments to be made in respect of services provided by employees up to
the end of the reporting date.
Share based payments
2.13.
The Group provides benefits to individuals acting as and providing services similar to employees (including Directors)
of the Group in the form of share based payment transactions, whereby individuals render services in exchange for
shares or rights over shares (“Equity Settled Transactions”).
There is currently an Employee Share Option Plan (ESOP) in place, which provides benefits to Directors and
individuals providing services similar to those provided by an employee.
The cost of these equity settled transactions with employees is measured by reference to the fair value at the date
at which they are granted. The fair value is determined by using the Black Scholes formula, taking into account the
terms and conditions upon which the instruments were granted. In valuing equity settled transactions, no account
is taken of any performance conditions, other than conditions linked to the price of the shares of Resource Base
Limited (“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 statement of comprehensive income 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 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 cost of equity-settled transactions with non-employees is measured by reference to the fair value of goods and
services received unless this cannot be measured reliably, in which case the cost is measured by reference to the
fair value of the equity instruments granted.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
27
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2.14.
Issued capital
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.
2.15. Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit or loss attributable to the owners of Resource Base
Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of
ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during
the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary
shares and the weighted average number of shares assumed to have been issued for no consideration in relation to
dilutive potential ordinary shares.
2.16. Goods and services tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or
as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement
of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax
authority.
Financial Instruments
2.17.
Financial assets and financial liabilities are recognised in the Group’s consolidated statement of financial position
when the Group becomes a party to the contractual provisions of the instrument.
Financial assets and financial liabilities are initially measured at fair value, except for trade and other receivables
that do not have a significant financing component which are measured at transaction price. Transaction costs that
are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial
assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to
the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately
in profit or loss.
All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular
way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame
established by regulation or convention in the marketplace. All recognised financial assets are measured
subsequently in their entirety at either amortised cost or fair value, depending on the classification of the financial
assets.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
28
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
The Group classifies its financial assets into:
-
Debt instruments at amortised cost.
Debt instruments that meet the following conditions are measured subsequently at amortised cost:
-
-
The financial asset is held within a business model whose objective is to hold financial assets in order to
collect contractual cash flows;
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.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating
interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated
future cash receipts (including all fees and points paid or received that form an integral part of the effective interest
rate, transaction costs and other premiums or discounts) excluding expected credit losses, through the expected life
of the debt instrument, or, where appropriate, a shorter period, to the gross carrying amount of the debt instrument
on initial recognition.
The amortised cost of a financial asset is the amount at which the financial asset is measured at initial recognition
minus the principal repayments, plus the cumulative amortisation using the effective interest method of any
difference between that initial amount and the maturity amount, adjusted for any loss allowance. The gross carrying
amount of a financial asset is the amortised cost of a financial asset before adjusting for any loss allowance.
The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire,
or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to
another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and
continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated
liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of
a transferred financial asset, the Group continues to recognise the financial asset and also recognises a collateralised
borrowing for the proceeds received.
Impairment of plant and equipment
2.18.
At each reporting date, the Group reviews the carrying amounts of its plant and equipment to determine whether
there is any indication that those assets have suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any). Where the
asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable
amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation
can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are
allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can
be identified.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset for which the estimates of future
cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is
recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the
impairment loss is treated as a revaluation decrease and to the extent that the impairment loss is greater than the
related revaluation surplus, the excess impairment loss is recognised in profit or loss.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
29
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
When an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised
estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount
that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal
of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued
amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
2.19. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions
that affect the reported amounts in the financial statements. Management continually evaluates its judgements and
estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its
judgements, estimates and assumptions on historical experience and on other various factors, including
expectations of future events, management believes to be reasonable under the circumstances. The resulting
accounting judgements and estimates will seldom equal the related actual results. Judgements, estimates and
assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities (refer to the respective notes) within the next financial year are discussed below.
Exploration and evaluation
The Group’s policy for exploration and evaluation is discussed in Note 2.9. The application of this policy requires
management to make certain assumptions as to future events and circumstances. Any such estimates and
assumptions may change as new information becomes available. If, after having capitalised exploration and
evaluation expenditure, management concludes that the capitalised expenditure is unlikely to be recovered by
future sale or exploration, then the relevant capitalised amount will be written off through the profit or loss. The
carrying amount of exploration and evaluation is disclosed in the note.
Share based payments
The Group’s policy for share based payments is discussed in Note 2.13. The Group measures the cost of equity-
settled transactions with employees by reference to the fair value of the equity instruments at the date at which
they are granted. The fair value is determined by Black Scholes model.
For asset acquisitions settled via share-based payment arrangements, the Group measures the cost of the asset at
the fair value of the asset acquired, or if this cannot be determined, at the fair value of the equity instruments.
During the year the Group acquired the Wali and Ernst Lake Lithium Project via the issue of equity and as such the
transaction is a share-based payment arrangement under AASB 2. Given the nature of the assets acquired, the fair
value of the assets was unable to be determined and the transaction was recorded at the fair value of the equity
instruments granted.
The fair value of the 6 million fully paid ordinary shares in the Company with an escrow period of six months as part
of the acquisition considerations was calculated at $663,000 with reference to the share price at date of settlement
of $0.13 and a discount for its escrow period. The fair value of the 8 million Performance Rights that may be
converted to fully paid ordinary shares under the acquisition arrangements of the Wali and Ernst Lake Lithium
Project was deemed to be nil as the probability of conditions being met was assessed at 0% on the acquisition date.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the Group considers it is probable
that future taxable amounts will be available to utilise those temporary differences and losses. As at 30 June 2023
deferred tax assets have not been recognised because their realisation is not deemed probable.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
30
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
3.
OPERATING SEGMENTS
Identification of reportable operating segments
The consolidated entity is organised into one operating segment, being the exploration of minerals in Australia and
Canada. This operating segment is based on the internal reports that are reviewed and used by the Board of
Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in
determining the allocation of resources of the $6.78million in capitalised exploration and evaluation assets as of 30
June 2023, $1.22million (2022: NIL) pertain to tenements located in Canada with the balance in Australia.
4.
INCOME AND EXPENSES
Income from continuing operations includes the following
revenue items:
Interest income
Gain on disposal of plant and equipment
Other income
30 Jun 2023
30 Jun 2022
$
7,978
6,525
10,000
24,503
$
224
-
-
224
Loss for the year includes the following specific expenses:
Depreciation - Plant and equipment
56,529
6,718
Finance costs:
-
-
Interest on amount payable on land acquisition
Premium Funding Costs
Employee benefits expenses include:
-
Salaries and wages
- Directors’ Fees
-
Superannuation
- Others
-
21,387
77,916
309,346
135,761
74,877
600
520,584
6,191
3,142
16,051
95,355
514,680
34,400
-
644,435
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
31
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
5.
INCOME TAX EXPENSE
Numerical reconciliation of income tax benefit and tax at
the statutory rate
Loss before income tax expense from continuing
operations
30 Jun 2023
30 Jun 2022
$
$
(4,035,805)
(2,190,286)
(4,035,805)
(2,190,286)
Tax at the statutory tax rate of 25% (2022: 25%)
(1,008,951)
(547,571)
Tax effect amounts which are not deductible/(taxable) in
calculating taxable income:
Non-deductible expenditure
Section 40-880 deduction
Current year tax losses not recognised
Current year temporary differences not recognised
Tax losses not recognised
Unused tax losses for which no deferred tax asset has
been recognised
Potential tax benefit @ 25% (2022: 25%)
735,885
(35,086)
371,330
(63,178)
-
167,126
(35,086)
468,762
(53,231)
-
11,624,562
16,067,953
2,906,141
4,016,988
The above potential tax benefit for tax losses has not been recognised in the statement of financial position. These
tax losses can only be utilised in the future if the continuity of ownership test is passed, or failing that, the same
business test is passed.
The taxation benefits of tax losses and temporary differences not brought to account will only be obtained if:
i.
ii.
iii.
the consolidated entity derives future assessable income of a nature and of an amount sufficient to enable
the benefit from the deductions for the losses to be realised;
the consolidated entity continues to comply with the conditions for deductibility imposed by law; and
no change in tax legislation adversely affects the consolidated entity in realising the benefits from
deducting the losses.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
32
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
6.
CASH AND CASH EQUIVALENTS
Cash at bank
30 Jun 2023
30 Jun 2022
$
1,554,652
1,554,652
$
2,143,967
2,143,967
Cash and cash equivalents comprise cash and short-term bank deposits with an original maturity of three months
or less. The carrying amount of these assets is approximately equal to their fair value. Cash and cash equivalents at
the end of the year as shown in the consolidated statement of cash flows can be reconciled to the related items in
the consolidated reporting position as shown above.
7.
EXPLORATION AND EVALUATION
30 Jun 2023
30 Jun 2022
$
$
Black Range Project
Acquisition cost
Exploration and evaluation phases - at cost
1,638,000
1,079,213
Impairment provision
(a)
(2,717,213)
1,638,000
1,041,781
-
Net carrying amount Black Range Project
-
2,679,781
Mitre Hill Project
Acquisition cost
Exploration and evaluation phases - at cost
Net carrying amount Mitre Hill Project
Wali and Ernst Lake Project
Acquisition cost
Exploration and evaluation phases - at cost
Net carrying amount Wali and Ernst Lake Project
Total Exploration and Evaluation
1,707,114
1,144,809
2,851,923
1,063,763
151,865
1,215,628
4,067,551
1,707,114
427,331
2,134,445
-
-
-
4,814,226
(a)
During the year the Group provided a full impairment provision for its Black Range Project as it considered
the project would not be continued.
The recoverability of the carrying amount of these capitalised exploration and evaluation assets is dependent on
successful development out commercial exploitation, or alternatively, sale of the respective area of interest.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
33
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
8.
PLANT AND EQUIPMENT
At 1 July 2021
Additions
Depreciation
At 30 June 2022
Cost
Accumulated Depreciation
At 30 June 2022
At 1 July 2022
Additions
Depreciation
Disposals
At 30 June 2023
Cost
Accumulated Depreciation
At 30 June 2023
IT
$
-
20,516
(6,718)
13,798
20,516
(6,718)
13,798
13,798
996
(8,115)
(2,750)
3,929
16,664
(12,735)
3,929
Vehicles
Equipment
Total
$
-
$
-
$
-
136,301
227,088
383,905
-
-
(6,718)
136,301
227,088
377,187
136,301
227,088
383,905
-
-
(6,718)
136,301
227,088
377,187
136,301
555
(39,631)
(97,225)
-
-
-
-
227,088
35,747
377,187
37,298
(72,009)
(119,755)
-
190,826
262,835
(72,009)
190,826
(99,975)
194,755
279,499
(84,744)
194,755
9.
TRADE AND OTHER PAYABLES
Trade payables
Employee entitlements
Other payables and accruals
Total trade and other payables
30 Jun 2023
30 Jun 2022
$
26,167
453
38,241
64,861
$
166,771
-
51,240
218,011
Trade payables are unsecured and are usually paid within 30 days of recognition. The carrying amounts of trade
and other payables are assumed to be the same as their fair values, due to their short-term nature.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
34
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
10.
BORROWINGS
Convertible
notes payable
Unsecured loan
from major
shareholder
Unsecured
loans from
former
directors
and officers
$
$
$
164,948
2,532,076
731,914
Equipment
funding
$
-
-
-
-
-
(136,521)
-
56,874
1 July 2021
New Funding
Repayments
Non-cash settlement
(164,948)
(2,532,076)
(595,393)
30 June 2022
New Funding
Repayments
Closing balance
-
-
-
-
-
-
-
-
-
-
-
-
Total
$
3,428,938
56,874
(136,521)
(3,292,417)
56,874
51,792
-
-
56,874
51,792
(108,666)
(108,666)
-
-
Equipment funding represented chattel mortgage facilities for the purchase of motor vehicles. The Group disposed
the motor vehicles and settled the balance of the mortgage during the year.
11.
ISSUED CAPITAL
Share capital
Opening
Conversion of performance rights
Placement 8 December 2022
Placement shares issued to directors
Shares issued as consideration for the
acquisition of Wali and Ernst Lake Lithium
Project
Placement 18 May 2023
Shares issued under the public offer
Shares issued as consideration for the
acquisition of Black Range Project
Shares issued to the facilitator
Shares issued to lenders in satisfaction of
existing debts
Placement 1 October 2021
Shares issued as consideration for the
acquisition of Mitre Hill Pty Ltd
Share issue costs
30 June
2023
30 June
2022
No. shares
No. shares
30 June
2023
$
30 June
2022
$
54,291,152
5,936,614
26,821,292
14,932,001
2,000,000
8,060,000
1,333,333
6,000,000
11,000,000
-
-
-
-
-
-
-
-
-
-
-
-
380,000
604,500
100,000
663,000
1,319,990
-
-
-
-
27,500,000
7,600,000
590,000
1,964,538
6,000,000
4,700,000
-
-
-
-
-
-
5,500,000
1,520,000
118,000
3,339,000
1,200,000
893,000
-
(122,713)
(680,709)
Ordinary shares fully paid shares
82,684,485
54,291,152
29,766,069
26,821,292
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
35
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
11.
ISSUED CAPITAL (CONTINUED)
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company
in proportion to the number of, and amounts paid on the shares held. The fully paid ordinary shares have no par
value and the company does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll
each share shall have one vote.
Capital risk management
The Group's objectives when managing capital are to safeguard its ability to continue as a going concern, so that it
can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital
structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may issue new shares in order to meets its financing
requirements.
The Group is subject to certain financing arrangements and meeting these are given priority in all capital risk
management decisions. There have been no events of default on the financing arrangements during the financial
year.
The capital risk management policy remains unchanged from the 30 June 2022 Annual Report.
12.
RESERVES
Performance right reserve
Options reserve
Performance rights reserve
30 Jun 2023
30 Jun 2022
$
-
1,524,562
1,524,562
$
380,000
1,236,075
1,616,075
Performance rights valued at $380,000 were converted to 2,000,000 fully paid ordinary shares during the year.
Movement of options on issue:
Options on issue at 1 July 2021
Granted – employee options
Granted - Share issue costs
Granted - Non-cash settlement of borrowings
Granted - Placement options
Options on issue at 30 June 2022
Granted – employee options
Granted - Consultant options
Options on issue at 30 June 2023
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
Note
Number
13
13
13
13
-
8,000,000
2,500,000
1,685,640
3,000,000
$
-
949,916
286,159
-
-
15,185,640
1,236,075
3,000,000
2,000,000
146,396
142,091
20,185,640
1,524,562
36
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
13.
SHARE-BASED PAYMENTS
The Company provides benefits to employees (including directors) of the Company in the form of share-based
payment transactions, whereby employees render services in exchange for options to acquire ordinary shares.
Options are granted under the plan for no consideration.
In addition to options issued to employees, the Company may also issue unlisted options to other parties.
The table below summarises the share-based payment employee options granted by the Company:
Outstanding at the beginning
of the year
Granted
Forfeited/cancelled/expired
Outstanding at year end
Exercisable at year end
Number
10,500,000
5,000,000
-
15,500,000
15,500,000
2023
Weighted average
exercise price
cents
0.25
0.20
-
0.23
0.23
2022
Weighted average
exercise price
cents
-
0.25
-
0.25
0.25
Number
-
10,500,000
-
10,500,000
10,500,000
Nil unlisted options as share-based payments lapsed or expired during the year (2022: Nil). The weighted average
remaining contractual life of share options outstanding at the end of the financial year was 2.02 years (2022: 2.17
years) and the exercise prices ranged from 20 cents to 25 cents (2022: 25 cents). During the year the Company issued
2 million options to Taylor Collison Limited in as consideration for introducing the Wali & Ernst Lake project. The
options are unlisted, exercisable at $0.20, and with an expiry date of 1 May 2023.
The weighted average fair value of the options as share-based payments granted during the year was 5.76 cents
(2022: 11.77 cents). The fair value of the options was estimated using a Black-Scholes pricing model. Expected
volatility was based on the historical movement of the underlying share price around its average share price. The
assumption that the historical volatility is indicative of future trends may also not necessarily be the actual outcome.
Inputs into the pricing model:
RBXAG
RBXAD
RBXAE
RBXAM
RBXAL
Issue date share
price
Exercise
price
Expected
volatility
Option life
Risk-free
interest rate
0.20
0.19
0.20
0.13
0.089
0.25
0.25
0.25
0.20
0.20
100%
54.68%
100%
100%
100%
2.78
3.00
3.00
3.00
5.00
0.41%
0.93%
0.41%
3.07%
3.50%
During the year, an amount of $288,487 (2022: $949,915) was recognised as a share-based payment expense.
14.
There were no dividends paid, recommended or declared during the current or previous financial year.
DIVIDENDS
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
37
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
FINANCIAL INSTRUMENTS
15.
Financial risk management objectives
The Group's activities can expose it to a variety of financial risks: market risk (including foreign currency risk, price
risk and interest rate risk), credit risk and liquidity risk. The Group's overall risk management program focuses on
the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial
performance of the Group. The Group uses different methods to measure different types of risk to which it is
exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange and other price
risks, ageing analysis for credit risk and beta analysis in respect of investment portfolios to determine market risk.
Risk management is carried out by the Board of Directors ('the Board'), which identifies, evaluates and hedges
financial risks within the consolidated entity's operating units where considered appropriate.
Market risk
Foreign currency risk
The Group is subject to foreign currency risk as it has a project in Canada and make payments in Canadian dollars.
The Group monitors the foreign currency risks by establishing cashflow forecasts and regularly reviews exchange
rates movements.
Price risk
The Group is not subject to significant levels of price risk in relation to its financial instruments.
Interest rate risk
The Group is not subject to significant levels of interest rate in relation to its financial instruments.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss
to the Group. The Group has a strict code of credit, including obtaining agency credit information, confirming
references and setting appropriate credit limits. The Group obtains guarantees where appropriate to mitigate credit
risk. The maximum exposure to credit risk at the reporting date to recognised financial assets is $1,637,937 (2022:
$2,171,931). Of this, $1,586,480 (2022: $2,143,967) is held in bank deposits and are held at financial institutions with
a minimum AA credit rating. The Group does not hold any collateral.
Liquidity risk
Vigilant liquidity risk management requires the Group to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
The Group manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by
continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and
liabilities.
Remaining contractual maturities
The following tables detail the Group's remaining contractual maturity for its financial instrument liabilities. The
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date
on which the financial liabilities are required to be paid. The tables include both interest and principal cash flows
disclosed as remaining contractual maturities and therefore these totals may differ from their carrying amount in
the statement of financial position.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
38
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
15.
FINANCIAL INSTRUMENTS (CONTINUED)
Weighted
average interest
rate
1 year or less
Between 1 and
2 years
Between 2 and
5 years
2023
Trade payables
Other payables
Total non-derivatives
2022
Trade payables
Other payables
%
-
-
-
-
-
Interest-bearing - fixed rate
Equipment funding
8.07%
Total non-derivatives
$
26,167
51,240
64,861
166,771
51,240
14,150
232,161
$
-
-
-
-
-
$
-
-
-
-
-
14,150
14,150
25,941
25,941
Remaining
contractual
maturities
$
26,167
51,240
64,861
166,771
51,240
54,241
286,402
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually
disclosed above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
16.
KEY MANAGEMENT PERSONNEL DISCLOSURES
The following persons were directors of Resource Base Limited during the financial year:
Maurice Felich (appointed 29 September 2022)
Brent Palmer (appointed 29 September 2022)
Paul Hissey
Shannon Green (resigned 13 September 2022)
Jamie Myers (resigned 29 September 2022)
Compensation
The aggregate compensation made to directors and other members of key management personnel of the
consolidated entity is set out below:
Short-term employee benefits
Bonus
Superannuation
Termination payments
Share based payments
30 Jun 2023
30 Jun 2022
$
506,385
-
57,392
150,000
146,396
860,173
$
701,202
300,000
42,867
-
665,226
1,709,295
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
39
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
REMUNERATION OF AUDITORS
17.
During the financial year the following fees were paid or payable for services provided by the auditor to the
company:
Audit services – Elderton
Audit or review of the financial statements
Audit services – BDO Audit (WA) Pty Ltd
Audit or review of the financial statements
Audit services - Moore Australia (Audit) WA
Audit or review of the financial statements
Non audit services
18. COMMITMENTS
Exploration expenditure – Black Range Project
Within 1 year
One year or later but no later than 5 years
Exploration expenditure – Mitre Hill Project
Within 1 year
One year or later but no later than 5 years
Exploration expenditure – Wali & Ernst Lake Project
Within 1 year
One year or later but no later than 5 years
Exploration expenditure – Total
Within 1 year
One year or later but no later than 5 years
30 Jun 2023
30 Jun 2022
$
-
$
4,180
9,300
27,504
30,000
-
39,300
-
-
30,684
30 Jun 2023
30 Jun 2022
$
-
-
-
159,050
835,936
994,986
600,000
156,690
756,690
759,050
992,626
1,751,676
$
1,450,000
308,000
1,758,000
199,050
839,140
1,038,190
-
-
-
1,649,050
1,147,140
2,796,190
In order to maintain current rights of tenure to the exploration lease the Company was required to meet minimum
expenditure requirements of the State Mines Departments. These obligations are not recorded in the financial
statements.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
40
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
RELATED PARTY TRANSACTIONS
19.
Parent entity
Resource Base Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 21.
Key management personnel
Disclosures relating to key management personnel are set out in note 16 and the remuneration report included in
the directors' report.
20.
Set out below is the supplementary information about the parent entity.
PARENT ENTITY INFORMATION
Statement of profit or loss and other comprehensive income
Statement of profit or loss and other comprehensive income
Loss after income tax
Total comprehensive Loss
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Net (liabilities) / assets
Equity
Issued capital
Performance rights reserve
Option reserve
Accumulated losses
30 Jun 2023
30 Jun 2022
$
$
(4,012,910)
(4,012,910)
(2,189,991)
(2,189,991)
1,668,537
5,954,032
64,862
64,862
2,171,931
7,373,639
277,708
324,822
5,889,170
7,048,817
29,766,069
26,821,292
-
1,524,561
380,000
1,236,075
(25,401,460)
(21,388,550)
5,889,170
7,048,817
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2023 and 30 June 2022.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2023 and 30 June 2022.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment at as 30 June 2023 and 30 June
2022.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
41
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
20.
PARENT ENTITY INFORMATION (CONTINUED)
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the Group, as disclosed in note 2, except
for, Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
INTERESTS IN SUBSIDIARIES
21.
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiary in
accordance with the accounting policy described in note 2:
Name
Mitre Hill Pty Ltd
Black Range Victoria (2021) Pty Ltd
14955641 Canada Inc. (RBX Lithium
Resources Canada Inc)
Principal place of business /
Country of incorporation
Australia
Australia
Canada
30 Jun 2023
30 Jun 2022
%
100
100
100
%
100%
100%
-
22.
On 5 July 2023, the Company announced metallurgical results from the Mitre Hill project.
EVENTS SUBSEQUENT TO REPORTING DATE
On 7 July 2023, the Company announced that 8,614,655 ordinary shares were due to be released from escrow.
On 1 August 2023, the Company announced that multiple pegmatites had been identified at the Wali project.
On 7 August 2023, the Company announced that exploration was commencing at the Wali and Ernst Lake projects,
Quebec.
On 20 September 2023, the provided an update on exploration activities at the Wali and Ernst Lake projects, Quebec,
with the identification of an abundant number of outcropping pegmatites.
On 27 September 2023, the Company provided an update on its Australian projects.
There have been no other transactions or events of a material and unusual nature likely, in the opinion of the
Directors of the Company, to significantly affect the operations of the Company, the results of those operations, or
the state of affairs of the Company in future financial years.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
42
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
23.
RECONCILIATION OF LOSS AFTER INCOME TAX TO NET CASH USED IN
OPERATIONS
Loss after income tax expense for the year
Adjustments for:
Depreciation and amortisation
Share based payments expense
Impairment provision
Gain on disposal of plant and equipment
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
Decrease/(increase) in other operating assets
Increase/(decrease) in trade and other payables
Increase in other provisions
Net cash used in operating activities
24.
EARNINGS PER SHARE
Weighted average number of ordinary shares used in
calculating basic earnings per share
Basic
Diluted
Earnings per share for loss from continuing operations
Loss after income tax attributable to the owners of
Resource Base Limited
Basic loss per share
Diluted loss per share
30 Jun 2023
30 Jun 2022
$
$
(4,035,805)
(2,190,286)
56,529
288,487
2,717,214
(6,525)
15,113
-
(203,086)
-
6,718
949,915
-
(21,719)
27,964
(692,671)
37,437
(1,168,073)
(1,882,642)
30 Jun 2023
30 Jun 2022
Number
Number
63,563,207
63,563,207
50,228,960
50,228,960
$
$
(4,035,805)
(2,190,286)
Cents
(6.35)
(6.35)
cents
(4.36)
(4.36)
Potential ordinary shares have not been included in the above number as they would be anti-dilutive.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
43
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
25. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Contingent Consideration – Mitre Hill Project
Pursuant to the Mitre Hill Pty Ltd Acquisition Agreement, as set out in section 4.2.2 of the Short form Prospectus
dated 1 October 2021, on completion the of the Acquisition the Company issued on 23 December 2021, 4,000,000
Performance Shares to the Vendors pro rata, each to convert into one (1) Share upon the satisfaction of the following
milestones:
a)
(Tranche 1): 2,000,000 Performance Rights shall vest upon the Purchaser achieving, at ten (10) contiguous
drill holes at least 50 metres apart on the ELs, intercept grades of a minimum of 600ppm total rare earth
oxides (TREO) over at least one (1) metre, within fifteen (15) months of the Drop-Dead Date: and
(Tranche 2): 2,000,000 Performance Rights shall vest upon the announcement by the Purchaser of a of a
JORC compliant Inferred Mineral Resource (as defined in the JORC Code 2012 Edition) on the Els of 30
million tonnes or greater, grading a minimum of 700ppm TREO or greater, within two (2) years from the
Drop-Dead Date.
b)
Pursuant to the Mitre Hill Pty Ltd Acquisition Agreement the Company agreed pay to the Vendors a royalty of 1% of
the net smelter return on all minerals (on a pro-rata basis), mineral products and concentrates, produced and sold
from the ELs (or any tenement(s) which may be granted in lieu of or relate to the same ground as the ELs);
On 23 August 2022, the Company announced the vesting of the Tranche 1 performance rights, the rights were valued
at $380,000 and included as consideration in the accounts at 30 June 2022.
The Tranche 2 performance rights have been assessed by management as future obligations whose existence will
be confirmed by uncertain future events that are not wholly within the control of the entity.
Contingent Consideration – Wali & Ernst Lake Project
Pursuant to the Wali & Ernst Lake Project Acquisition Agreement, as announced to the market on 24 February 2023,
on completion the of the Acquisition the Company issued 8,000,000 performance rights convertible to fully paid
ordinary shares, upon the achievement of diamond drill results with at least 20m intercept at 1% lithium at either
of the Projects on or before 31 December 2024.
The fair value of the performance rights that were issued under the arrangements of the project acquisition was
deemed to be nil as the probability of conditions being met was assessed at 0% on acquisition date. There are no
contingent assets at the reporting date.
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
44
DIRECTORS’ DECLARATION
FOR THE YEAR ENDED 30 JUNE 2023
In accordance with a resolution of the Directors of Resource Base Limited, I state that:
(1)
In the opinion of the Directors:
(a) the financial statements and notes set out on pages 19 to 44 and the Directors’ Report are in
accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Company's financial position as at 30 June 2023 and of its
performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
(2)
(3)
The Directors draw attention to Note 2.2 to the financial statements, which includes a statement of
compliance with International Financial Reporting Standards.
The Directors have been given the declarations by the chief executive officer and chief financial
officer for the year ended 30 June 2023 required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors.
Maurice Feilich | Non-Executive Chairman
29 September 2023
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
45
Moore Australia Audit (WA)
Level 15, Exchange Tower,
2 The Esplanade, Perth, WA 6000
PO Box 5785, St Georges Terrace, WA 6831
T +61 8 9225 5355
F +61 8 9225 6181
www.moore-australia.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF RESOURCE BASE LIMITED
REPORT ON THE AUDIT OF THE FINANCIAL REPORT
Opinion
We have audited the financial report of Resource Base Limited (the Company) and its controlled entities
(the “Group”), which comprises the consolidated statement of financial position as at 30 June 2023, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial statements, including a summary of significant accounting policies, and the directors’
declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its
financial performance for the year then ended; and
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 (including Independence Standards) (the “Code”) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the time
of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Emphasis of Matter - Material Uncertainty related to Going Concern
We draw attention to Note 2.3 in the financial report which describes the events and/or conditions which
give rise to the existence of a material uncertainty that may cast significant doubt about the Group’s
ability to continue as a going concern. Should the Group be unable to raise sufficient capital to fund its
future working capital and exploration programs, it may be unable to realise its assets and discharge its
liabilities in the normal course of business. Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current year. These matters were addressed in the context of our
audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Moore Australia Audit (WA) – ABN 16 874 357 907.
An independent member of Moore Global Network Limited - members in principal cities throughout the world.
Liability limited by a scheme approved under Professional Standards Legislation.
46
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF RESOURCE BASE LIMITED (CONTINUED)
Key Audit Matters (continued)
Carrying value of capitalised exploration & evaluation assets
Refer to Note 2.19 Critical accounting judgements, estimates and assumptions, Note 7 Exploration &
Evaluation Assets
Capitalised exploration and evaluation assets of
approximately $4.07 million
the
Group’s single largest asset.
represent
Asset valuation is considered a key audit matter
as the ability to recognise and to continue to defer
exploration and evaluation assets under AASB 6:
Exploration
for and Evaluation of Mineral
Resource is impacted by the Group’s ability, and
intention, to continue with the operating activities
or
through
development or sale.
this value
to realise
its ability
We considered it necessary to assess whether
facts and circumstances existed to suggest that
the carrying value of these assets may exceed its
recoverable amount.
Our procedures included, amongst others:
• Addressed the Group’s assessment of the ability to
continue to defer the exploration and evaluation assets
under AASB 6.
• Ensuring that the Group has the ongoing right to
explore in the relevant exploration areas of interests by
performing tenement title searches on government
websites, reviewing various internal reports, ASX
releases and discussions with management.
• Assessing the carrying value of these assets for any
indicators of impairment through discussions with
management, review of ASX announcements to-date
on the Group’s current activities and review of other
documents.
• Substantiated a sample of exploration expenditure and
projects acquired during the year against supplier
invoices and purchase agreements respectively.
• Ensuring
the Group
to continue
exploration and evaluation activity in the relevant areas
of interest including assessing their expenditures that
have been planned or budgeted for.
is committed
• Considered
the Group’s market capitalisation at
balance date for any further indicators of impairment –
there were none.
• Assessed the appropriateness of the disclosures
contained in the financial report.
Valuation of Share-Based Payments
Refer to Note 2.19 Critical accounting judgments, estimates and assumptions, Note 13 Share-based
payments and Note 25 Contingent Liabilities
During the year ended 30 June 2023, the Group
transacted with Key Management Personnel
(KMPs) and other parties including:
• Awarded share-based payments (SBP) in
shares, options and
form of
the
performance rights
SBP is a key audit matter due to it being a
material transaction, the valuation of which
involved
and
key
judgements adopted by management during the
year.
assumptions
several
Our procedures included, amongst others:
• Enquiring and obtaining confirmations from KMPs
regarding SBP transactions.
• Reviewing minutes of meetings, ASX announcements,
various agreements & other transactions undertaken
during the year.
• Assessing
the valuation methodology used by
management to estimate the fair value of equity
instruments issued, including testing the integrity of the
information provided, assessing the appropriateness
of key assumptions input into the valuation model.
• Assessing whether these and any potential future SBP
liabilities have been appropriately disclosed and
reported in the financial statements.
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF RESOURCE BASE LIMITED (CONTINUED)
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 2023 but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon. In connection with our audit of the financial report,
our responsibility is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise
appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and
for such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or
error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
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.
A further description of our responsibilities for the audit of the financial report is located on the Auditing
and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our
auditor’s report.
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF RESOURCE BASE LIMITED (CONTINUED)
REPORT ON THE REMUNERATION REPORT
Opinion on the Remuneration Report
We have audited the Remuneration Report as included in the directors’ report for the year ended
30 June 2023.
In our opinion, the Remuneration Report of Resource Base Limited, for the year ended 30 June 2023
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the 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.
SUAN-LEE TAN
PARTNER
MOORE AUSTRALIA AUDIT (WA)
CHARTERED ACCOUNTANTS
Signed at Perth this 29th day of September 2023.
ADDITIONAL ASX INFORMATION
Additional information required by ASX Listing Rules and not shown elsewhere in the report is set out below. The
information is current as of 25 September 2023.
CORPORATE GOVERNANCE
1.
Pursuant to the ASX Listing Rules, the Company’s Corporate Governance Statement will be released in conjunction
with this report. The Company’s Corporate Governance Statement is available on the Company’s website at:
https://resourcebase.com.au/about-us/corporate-governance/
SUBSTANTIAL SHAREHOLDERS
2.
The number of shares held by substantial shareholders and their associates who have provided the Company with
substantial shareholder notices are set out below:
Name of substantial shareholder
NAVARRE MINERALS LIMITED
NORANDA ROYALTIES INC
Number of shares
Interest (%)
7,600,000
6,833,333
9.19
8.26
3.
The voting rights attached to each class of equity security are as follows:
VOTING RIGHTS
Ordinary Shares
Each Ordinary Share is entitled to one vote at all general meetings of the Company. Each shareholder entitled to vote
may vote in person or by proxy, attorney or representative or, if a determination has been made by the Board in
accordance with clause 13.35 of the Company’s constitution, by Direct Vote.
On a poll, every person present who is a Shareholder or a proxy, attorney or representative of a Shareholder (or where
a Direct Vote has been lodged) shall, in respect of each fully paid Ordinary Share held, or in respect of which they are
appointed a proxy, attorney or representative, have one vote for the Share.
Options
There are no voting rights attached to any class of options on issue.
NON-MARKETABLE PARCELS
4.
As at 25 September 2023, based on the Company’s closing share price of $0.155, an unmarketable parcel comprised
3,226 fully paid ordinary shares. There were 85 holders holding less than a marketable parcel of shares, for a total of
132,010 fully paid ordinary shares.
5.
Analysis of equity securities on issue and the number of holders by size of holding as at 16 September 2022:
EQUITY SECURITIES
Ordinary Shares
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Total
Number of
holders
34
90
88
240
135
587
Number of
securities
5,775
294,202
732,218
10,691,492
70,960,798
82,684,485
%
0.01
0.36
0.89
12.93
85.82
100.00
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
50
ADDITIONAL ASX INFORMATION
Unlisted options exercisable at $0.20 on or before 5 July 2026
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Total
Unlisted options exercisable at $0.25 on or before 5 July 2024
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Total
Number of
holders
-
-
-
-
6
6
Number of
holders
-
-
-
6
4
10
Number of
securities
-
-
-
-
7,185,640
7,185,640
Number of
securities
-
-
-
340,000
2,160,000
2,500,000
%
-
-
-
-
100.00
100.00
%
-
-
-
13.60
86.40
100.00
UNQUOTED EQUITY SECURITY HOLDERS
6.
As at 25 September 2023 the following classes of unquoted securities had holders with equal to or more than 20% of
that class on issue:
Unlisted options exercisable at $0.20 on or before 5 July 2026
ASIPAC GROUP PTY LTD
MOLO CAPITAL PTY LTD
JOANNE GREEN
Unlisted options exercisable at $0.25 on or before 5 July 2024
CANDOUR ADVISORY PTY LTD
IRX ENTERPRISES PTY LTD
Interest (%)
23.46
20.87
20.87
Interest (%)
57.60
20.00
7.
The twenty largest holders of ordinary fully paid shares at 25 September 2023 are set out below:
TWENTY LARGEST SHAREHOLDERS
Name
NAVARRE MINERALS LIMITED
NORANDA ROYALTIES INC
HARBOUR VIEW CAPITAL PTY LTD
SAILORS OF SAMUI PTY LTD
MR ALAN CONIGRAVE
BLACKBIRD CAPITAL PTY LTD
ASIPAC GROUP PTY LTD
BRENT GRAEME PALMER
KINJUSCA PTY LTD
ZERRIN INVESTMENTS PTY LTD
MR ADRIAN ALEXANDER VENUTI
MR LEWIS UTTING
ASHBURTON FINANCE PTY LTD
CERTANE CT PTY LTD
MR MICHAEL SHIRLEY
BIG OAT PTY LTD
IRONFURY PTY LTD
CHALEYER HOLDINGS PTY LTD
MR PATRICK MURPHY
CERTANE CT PTY LTD
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
Number of ordinary
shares held
%IC
7,600,000
6,833,333
3,830,000
2,650,796
2,041,723
1,775,000
1,685,640
1,675,000
1,509,838
1,476,786
1,350,000
1,115,000
1,000,000
1,000,000
1,000,000
985,000
945,000
833,333
814,008
800,000
40,920,457
Total
9.19
8.26
4.63
3.21
2.47
2.15
2.04
2.03
1.83
1.79
1.63
1.35
1.21
1.21
1.21
1.19
1.14
1.01
0.98
0.97
49.49
51
ADDITIONAL ASX INFORMATION
8.
There are no restricted securities on issue.
RESTRICTED SECURITIES
9.
There is no current on-market buy-back.
ON-MARKET BUY-BACK
USE OF FUNDS
10.
The Company confirms that since admission to the ASX on 8 July 2021, it has used its cash and assets in a form
convertible to cash that it had at the time of admission in a way consistent with its business objectives.
11. MINING TENEMENT INTERESTS
Current interests in tenements held by RBX and its subsidiaries at 27 September 2023 are listed below:
Project
Location
Tenements Currently Held
Beneficial Interest
held
Mitre Hill Project
Victoria, Australia
South Australia, Australia
EL7646 EL7640 EL7641 EL7647
EL6708
Ernst Lake
Quebec, Canada
Wali
Quebec, Canada
109 claims
2684840 to 2684881 and
2689914 to 2689917 and 2696399
to 2696400 and 2705256 to
2705316
100 claims
2662066 to 2662105 and 2668944
to 2668976 and 2671306 to
2671319 and 2672867 to 2672879
100%
100%
100%
100%
RESOURCE BASE LIMITED ACN 113 385 425
Level 8/99 St Georges Terrace, Perth WA 6000
T. +61 8 9486 4036
W. www.resourcebase.com.au
E. admin@resourcebase.com.au
52