RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
ANNUAL REPORT FOR THE YEAR ENDED
30 JUNE 2023
CONTENTS
CORPORATE DIRECTORY .............................................................................................................................. 1
CHAIR’S MESSAGE TO SHAREHOLDERS ..................................................................................................... 2
OPERATIONS REVIEW .................................................................................................................................... 3
DIRECTORS’ REPORT ..................................................................................................................................... 9
AUDITOR’S INDEPENDENCE DECLARATION ............................................................................................. 37
2023 FINANCIAL REPORT ............................................................................................................................. 38
DIRECTORS’ DECLARATION ......................................................................................................................... 76
INDEPENDENT AUDITOR’S REPORT ........................................................................................................... 77
ASX ADDITIONAL SHAREHOLDER INFORMATION
..................................................... …………………………………………………………………………………....81
SCHEDULE OF MINING TENEMENTS …………………………………………………………………………….85
CORPORATE DIRECTORY
Non-Executive Chairperson
Share Registry
Michael Bohm
Computershare Investor Service Pty Ltd
Level 11, 172 St Georges Terrace
Non-Executive Directors
Perth WA 6000
Grant Mooney
Scott Cuomo
Jason Pater
Chief Executive Officer
David Groombridge
Company Secretary
Susan Field
Bankers
National Australia Bank
50 St Georges Terrace
Perth WA 6000
Solicitors
Hamilton Locke
Level 27/152-158 St Georges Terrace
Principal and Registered Office
Perth WA 6000
Suite 4, 6 Richardson Street
West Perth WA 6005
Telephone: +61 8 9226 0085
Stock Exchange Listing
Australian Securities Exchange
ASX Code: RIE
Auditors
Stantons
Level 2, 40 Kings Park Road
Website Address
West Perth WA 6005
www.riedelresources.com.au
1
CHAIR’S MESSAGE TO SHAREHOLDERS
Dear Shareholder,
The year has been a busy, productive and successful period for Riedel Resources Limited (ASX: RIE).
Our flagship Kingman Gold Project, located in the favourable mining jurisdiction of Arizona, USA, has been the
subject of extensive exploration activity with the focus, rightly, on the shallow and high-grade Tintic gold-silver
prospect.
During the year the Company undertook both Reverse Circulation (RC) and Diamond Drill (DD) programs at Tintic
and continued to achieve what can only be described as exceptional high grade gold assays from very shallow
depths.
A successful diamond drill program was undertaken in Q4 2022, followed by the most recent drill program which
commenced in June 2023, with a goal of underpinning an initial Mineral Resource Estimate by late 2023.
It is worth highlighting that the Tintic prospect has grown with every drill program undertaken. The high grade
mineralisation at Tintic appears to be open in most directions and we are excited about what Tintic could develop
into, both in the short and long term.
Indeed, the whole Kingman Project area is prospective and whilst the majority of our efforts have been around
Tintic - as we look to target a Mineral Resource Estimate there - we will look during the coming year to test some
of the numerous, compelling, and as yet untested, targets at Kingman.
In addition to geological exploration, we are well advanced with our baseline environmental data gathering which
will underpin permitting applications as we look to progress toward a development decision for the Tintic prospect.
Speaking of development goals, our plans for Kingman Project do not involve the building and operation of a
processing plant, with all the associated infrastructure and costs. Our goal is simple, we are looking to define
shallow high-grade open pit opportunities that can be mined and trucked to third party processing facilities in the
region. This is a model not uncommon in the goldfields of Western Australia and we are looking to apply this very
model in Arizona.
All of the above has been achieved by our small, dedicated technical team, led by our Chief Executive David
Groombridge, who joined us in March 2023. David has a wealth of experience growing and advancing exploration
and mining projects and he is excited by the opportunity to develop the Kingman Project into an open pit gold
producer in the near term.
In closing, I would like to thank the Riedel team for their tireless work during year. I also extend my thanks to
Shareholders for their support during this challenging period for explorers and junior developers. Our goal of
having Riedel join the ranks of gold producers in the near term remains undiminished.
Michael Bohm
Chairperson
2
OPERATIONS REVIEW
Exploration
Riedel Resources Limited (ASX: RIE) is pleased to report on its activities for the year ending 30 June 2023 at its
high-grade gold-silver Kingman Project in the tier-one state of Arizona, USA.
Kingman Project Location
The Project is situated in northwest Arizona, approximately 150km southeast of Las Vegas, Nevada.
Figure 1: Riedel Resources Kingman Project location in Arizona, USA.
3
OPERATIONS REVIEW
The Project is well located with existing infrastructure capable of servicing the Project including:
Interstate 40 (I-40) is a major east-west transcontinental Interstate Highway in the south-eastern and
south-western portions of the United States.
U.S. Route 93 is a major north-south dual highway that connects Kingman to Las Vegas.
Hoover Dam hydroelectric power is 75km from the Project with several existing and planned renewable
solar and wind farms within a 50km radii.
BNSF’s Southern Transcon rail line is a Class 1 line haul line that traverses northern Arizona and connects
southern California with Kansas City and Chicago. The line carries over 100 trains through Kingman per
day.
International Airport at Las Vegas (1.5hrs) and Phoenix (3hrs).
Existing combined mobile phone towers.
The communities of Kingman, Golden Valley and Bullhead City all within 20-40 minutes drive.
The Kingman Project claims are situated within the Southwestern North American Porphyry Copper Province.
The Project comprises a contiguous landholding of more than ~2,000 hectares, stretching NW to SE for 10km
along the western flank of the Paleoproterozoic Cerbat Mountains of the Mojave Province.
The Mineral Park Porphyry Cu-Mo Mine abuts the Projects southern Claim boundary, with numerous historical
Epithermal and Intermediate Sulphidation Au-Ag-Pb-Zn-Cu deposits untested through modern exploration
techniques within the Project and across the district. The Project area is yet to be fully tested and significant
potential remains to discover new, gold-silver-base metals deposits in addition to the high-grade gold-silver
already confirmed by recent drilling.
Figure 2: Kingman Project with Claim outline and existing and historical mines.
4
OPERATIONS REVIEW
During the year, the Company has completed drilling across the Kingman Claim area with the bulk of drilling
targeting the Tintic prospect with the objective to define a Maiden JORC Mineral Resource Estimate (MRE) by
the end of 2023.
Flora and Fauna surveys were also conducted across central prospects of the Project at the Tinic, Jim’s and
Arizona-Magma/Merrimac Trend.
Drilling
During the year, Riedel completed a diamond drilling (DD) program during the December 2022 quarter and
commenced a reverse circulation (RC) program during the June 2023 quarter.
Diamond drilling
A total of twenty-three (23) diamond drill holes for 872m were completed at the Tintic and Jim’s prosects. Twenty-
two (22) holes targeted the shallow high-grade gold and silver mineralisation at the Tintic prospect, with one hole
drilled at the Jim’s prospect located approximately 800m to the southeast of Tintic. Objectives of the drilling were
to confirm the structural orientation of the veins hosting mineralisation, geological contact relationships and obtain
material to be used in future metallurgical test work.
Figure 3: Diamond drilling at the Tintic prospect at the Kingman Gold Project, Arizona – November 2022.
Results from the diamond drilling confirmed the shallow, east-dipping nature of the veins which are hosted
predominantly within a Proterozoic Low-Biotite Gneiss host and commonly situated at both the top and bottom
contacts with a gabbro intrusive dyke. Mineralisation intersected was primarily within a strongly oxidised, or
transitional oxidation profile and occurs as a combined zone of either quartz-hematite clays, grey sulphidc clays
and massive sulphides sections. Sulphides observed consist of pyrite, galena, and sphalerite.
5
OPERATIONS REVIEW
Significant assay results from Tintic included:
5.5m @ 12.4g/t Au, 105g/t Ag and 3.9% Pb from 16.8m (2022-KNG-017C)
o
incl. 0.6m @ 74g/t Au, 410g/t Ag and 15.2% Pb from 17.1m
o and 1.5m @ 9.48g/t Au, 95g/t Ag and 3.8% Pb from 20.8m
1m @ 14.3g/t Au, 222g/t Ag and 14.6% Pb from 18.8m (2022-KNG-017B)
o
incl. 0.6m @ 23.7g/t Au, 298g/t Ag and 23% Pb from 18.8m
0.82m @ 17.1g/t Au and 28g/t Ag from 14.3m (2022-KNG-017A)
o
incl. 0.25m @ 50.1g/t Au, 63g/t Ag & 10.5% Pb from 14.3m
2.14m @ 11.22g/t Au and 48g/t Ag from 17.4m (2022-KNG-018B)
o
incl. 0.61m @ 38.8g/t Au, 69g/t Ag and 2.8% Pb from 17.4m
1.47m @ 11.56g/t, 101g/t Ag and 5.6% Pb from 24.08m (2022-KNG-018A)
o
incl. 0.55m @ 30.5g/t Au, 222g/t Ag and 13.1% Pb from 24.08m
0.76m @ 52.8g/t Au and 261g/t Ag from 20.4m (2022-KNG-013B)
o
incl. 0.18m @ 39.2g/t Au and 85g/t Ag from 20.4m
o and 0.24m @ 130g/t Au, 732g/t Ag and 28% Pb, 0.40 % Zn from 21.0m
Figure 4: 2022-KNG-013B returned 0.24m @ 130g/t Au, 732g/t Ag and 28 % Pb, 0.40 % Zn from 21.0m. Mineralisation
characterised by a massive sulphide vein with galena, pyrite and sphalerite.
6
OPERATIONS REVIEW
The first diamond hole drilled at Jim’s confirmed shallow mineralisation with high-grade silver, lead and zinc
grades complementing the gold assays:
1.89m @ 1.95g/t Au, 185g/t Ag, 2.8% Pb and 3% Zn from 41.9m (2022-KNG-023A)
o
incl. 0.22m @ 5.2g/t Au, 173g/t Ag, 5.7% Pb and 1.7% Zn from 41.9m
Reverse Circulation drilling
Drilling during the March quarter consisted of the first component of the ~7,000m resource drill program at the
Tintic prospect designed to infill and extend known mineralisation along strike and down-dip. Drilling was
completed on 20-40m collar spacings along 40m spaced sections to better define thickness and grade continuity.
A total of 1,900m was completed by 30 June, with mineralisation successfully intersected approximately 50m
along strike and 50m down dip to the north and east respectively of previous drilling. The resource program is
anticipated to continue until September 2023.
First assay results 16 holes from the program were reported on 10 August 2023 which included:
1.52m @ 15.6 g/t Au, 160.5 g/t Ag, 1.02% Pb, 0.38% Zn from 40.28m in RC23TT007
5.32m @ 2.37 g/t Au, 329 g/t Ag, 0.28% Pb, 0.40% Zn from 60.04m in RC23TT039
0.76m @ 12.5 g/t Au, 41.8 g/t Ag, 0.86% Pb, 1.80% Zn from 31.92m in RC23TT044
2.28m @ 3.9 g/t Au, 38.68 g/t Ag, 0.77 % Pb, 0.35% Zn from 41.04m in RC23TT044
0.76m @ 3.91 g/t Au, 163 g/t Ag, 0.43% Pb, 0.17% Zn from 57.76m in RC23TT045
Figure 5: Drilling in June 2023 at Riedel’s Tintic prospect.
7
OPERATIONS REVIEW
Figure 6: Mineralisation in RC23TT007 with strongly weathered quartz-sulphide veining.
Corporate
CEO Appointment
On 22 February 2023, the Company announced the appointment of David Groombridge as CEO to advance the
Kingman Gold Project in Arizona.
Mr Groombridge is an experienced Geoscientist who brings a strong background in gold dominant poly-metallic
mineral deposits.
He is a Masters-qualified Geologist with extensive technical and management experience both within Australia
and internationally.
Mr Groombridge was previously Exploration Manager with Medallion Metals Limited (ASX: MM8) where he was
integral in advancing its 1.6Moz Au Eq. Ravensthorpe Gold Project through Mineral Resource upgrades in parallel
with a Feasibility Study and project permitting.
Unlisted Options
During the current reporting period 18,300,000 unlisted Options as set out in Note 15(a) as set out in the financial
statements were issued.
Performance Rights
During the current reporting period 30,000,000 Performance Rights as set out in Note 15(b) in the financial
statements were issued under the Company Employee Securities Incentive Plan approved by shareholders at
AGM held on 23 November 2022.
8
DIRECTORS’ REPORT
The Directors of Riedel Resources Limited (“Riedel” or the “Company”) submit herewith the consolidated financial
statements of the Company and its controlled entities (“Riedel”), (“Group”) or (“Consolidated Entity”) for the year
ended 30 June 2023 in order to comply with the provisions of the Corporations Act 2001.
1.
Directors
The following persons were Directors of Riedel Resources Limited during the whole of the financial year and up
to the date of the report unless otherwise stated:
Mr Michael Bohm
Non-Executive Chairperson (appointed 11 December 2020)
Mr Grant Mooney
Non-Executive Director (appointed 31 October 2018)
Mr Scott Cuomo
Non-Executive Director (appointed 26 July 2017)
Mr Jason Pater
Non-Executive Director (appointed 1 February 2021)
2.
Principal Activities
The principal activity of the Group during the year was mineral exploration.
3.
Significant Changes in State of Affairs
3.1 Kingman Project
Flagstaff USA has the sole and exclusive right to acquire a 100% interest in 70 mining claims (which form part of
the Kingman Project) (Kingman Option Claims) via a binding option agreement with IAM Mining LLC (a Limited
Liability Company) (IAM Mining) (Flagstaff Option Agreement).
On 22 October 2020 Riedel entered into a binding agreement with Flagstaff Minerals Limited (“Flagstaff”) to
acquire up to 80% equity interest in Flagstaff Minerals (USA) Inc (‘Flagstaff USA’) (a wholly owned subsidiary of
Flagstaff) by meeting three earn in stages (‘Term Sheet’), or (‘Transaction’). As the Transaction represented a
change of scale of activities under the ASX Listing Rules shareholder approval was required and subsequently
obtained on 30 November 2020. (Refer ASX Announcement made on 11 December 2020).
On 25 January 2023, pursuant to the Flagstaff Option Agreement, Riedel met the final USD400,000 Option
Payment required to be made to IAM Mining on or before 1 February 2023 giving Flagstaff USA the right to obtain
100% legal and beneficial title to the 70 mining claims.
On 28 March 2023, Riedel announced that it had satisfied the A$5 million exploration expenditure requirement to
earn a 51% interest in Flagstaff Minerals (USA) Inc (the owner of the Kingman Project), subject to shareholders
approving the issue of 100 million shares to Flagstaff Minerals Limited (approved at General Meeting held on 28
June 2023) the Company announced it had successfully negotiated a variation to the Kingman Project earn-in
arrangement. Riedel previously had the right to earn an additional 19% interest (for a total interest of 70%) by
spending a further $5 million on exploration and, subject to earning the 70% interest, the right to acquire an
additional 10% interest by paying A$3 million in cash (for a total interest of 80% in Flagstaff Minerals (USA) Inc
and, in turn, the Kingman Project).
9
DIRECTORS’ REPORT
1.
Significant Changes in State of Affairs Continued
3.1 Kingman Project Continued
Following the agreed variation, Riedel now has the right to acquire a further 39% interest (for a total interest of
90%) by spending $5 million on exploration (instead of a further 19% interest), and the $3 million cash payment
has been replaced with a royalty on gold produced at the Kingman Project, up to a maximum of $3 million. (Refer
to the Company’s announcement dated 23 October 2020 for further details of the earn-in).
3.2 Change in Securities
On 29 September 2022, the Company announced that it had received firm commitments to raise $1,500,000
before issue costs through the issuance of 300,000,000 new fully paid ordinary shares at an issue price of $0.005
per share.
On 7 October 2022, the Company completed Tranche 1 of the Placement and issued 260,000,000 fully
paid ordinary shares at an issue price of $0.005 per share.
On 6 December 2022, following shareholder approval having been received at Annual General Meeting
held on 23 November 2022, the Company:
-
-
-
completed Tranche 2 of the Placement and issued 40,000,000 fully paid ordinary shares at an issue
price of $0.005 per share;
issued 13,300,000 unlisted lead manager options to Oracle Group Ltd (or their nominee) as part of
their consideration for providing lead manager service, with an exercise price of $0.01 and expiring
on 6 December 2025; and
issue 5,000,000 unlisted incentive options to Michael Bohm (or his nominee as a cost effective
incentive component in his remuneration package, with an exercise price of $0.01 and expiring on 6
December 2025.
On 2 May 2023, the Company announced that it had received firm commitments to raise $2,500,000 before issue
costs through the issuance of 500,000,000 fully paid ordinary shares at an issue price of $0.005 per share and
that a Share Purchase Plan (‘SPP’) would be offered to eligible shareholders to raise up to an additional $500,000.
On 8 May 2023, the Company completed Tranche 1 of the Placement and issued 280,000,000 fully paid
ordinary shares at an issue price of $0.005 per share.
On 20 June 2023, the Company completed the SPP and issued 87,700,000 fully paid ordinary shares at
an issue price of $0.005 per share.
On 30 June 2023, following shareholder approval having been received at the General Meeting held on
28 June 2023, the Company completed Tranche 2 of the Placement and issued 220,000,000 fully paid at
an issue price of $0.005 per share.
There have been no changes in the state of affairs other than those outlined above and in the Review of
Operations.
10
DIRECTORS’ REPORT
4.
Dividends Paid or Recommended
The directors do not recommend the payment of a dividend and no amount has been paid or declared by way of
a dividend up to the date of this report.
5.
Review of Financial Performance
5.1 Operating Results
The Group incurred a loss after providing for income tax of $820,244 for the year ended 30 June 2023 (2022:
$725,091).
The loss included the following items:
compliance and consultancy expenses $338,796,
employee benefits expense and directors’ fees of $283,656; and
share based payments expense of $33,751.
5.2 Financial Position
The Group held net assets of $8,886,390 (2022: $5,545,317).
At 30 June 2023 the Group held $2,828,617 in cash and cash equivalents (30 June 2022: $1,370,816).
6.
Future Developments, Prospects and Business Strategies
Riedel will look to complete the resource drilling that consists of additional infill and follow-up drilling at Tintic with
the objective of identifying extensions to mineralisation. The resource drilling will be accompanied by drill testing
of other advanced prospects within the Kingman Project area.
Metallurgical test work will be completed during the year to determine the best methodology for gold extraction;
anticipated gold recoveries; the suitability of flotation of base metals; and determine Potentially Acid-Forming
(PAF) and Non-Acid Forming (NAF) host units.
Cultural surveys across the Project will commence in August 2023.
The results from drilling will underpin a Maiden Mineral Resource Estimate to be completed by the end of 2023
with the resource, metallurgical and environmental outcomes used to underpin economic studies in 2024 with the
objective of advancing mine permitting activities with government authorities.
7.
Material Business Risks
The following describes the material business risks that could affect the Group, including any material exposure
to economic, environmental and social sustainability risks and how the Company seeks to manage them.
7.1 Specific Risks
Exploration, Geological and Development Risk
(a)
Mineral exploration and development is a speculative and high-risk undertaking that may be impeded by
circumstances and factors beyond the control of the Company. Success in this process involves (amongst other
things):
11
DIRECTORS’ REPORT
7. Material Business Risks Continued
7.1 Specific Risks Continued
(a)
Exploration, Geological and Development Risk (continued)
(i)
discovery and proving-up, or acquiring, an economically recoverable resource or reserve;
(ii)
access to adequate capital throughout the acquisition/discovery and project development phases;
(iii)
securing and maintaining title to mineral exploration projects;
(iv)
(v)
obtaining required development consents and approvals necessary for the acquisition, mineral
exploration, development and production phases; and
accessing the necessary experienced operational staff, the applicable financial management and
recruiting skilled contractors, consultants and employees.
There can be no assurance that exploration of the Kingman Project or any other exploration properties that may
be acquired in the future will result in the discovery of an economic mineral resource. Even if an apparently viable
mineral resource is identified, there is no guarantee that it can be economically exploited.
The exploration activities of the Group may be adversely affected by a range of factors including geological
conditions, operational risks (as outlined in the next paragraph) and changing government laws and regulations.
Further, whether positive income flows result from projects on which the Group will expend exploration and
development capital is dependent on many factors including successful exploration, establishment of production
facilities, cost control, commodity price movements, successful contract negotiations for production and stability
in the local political environment.
In addition, significant expenditure may be required to establish necessary metallurgical and mining processes to
develop and exploit any mineral reserves identified on the Kingman Project. There is no assurance that the Group
will have sufficient working capital or resources available to do this.
In the event that exploration programs prove to be unsuccessful, the Kingman Project may diminish in value, there
will be a reduction in the cash reserves of the Group and relinquishment of part or all of the Kingman Project may
occur.
(b)
Future Capital Requirements
The future capital requirements of the Group will depend on many factors including its abilities to produce and
market its products. The Group believes its available cash following the capital raisings and transactions
contemplated herein will be adequate to fund its business objectives in the short term, however, the Group may
require further financing in the future.
In the event further financing is required to maintain operations, any additional equity financing may be dilutive to
Shareholders, may be undertaken at lower prices than the then market price or may involve restrictive covenants
which limit the Group’s operations and business strategy.
Although the Directors believe that additional capital can be obtained, no assurances can be made that
appropriate capital or funding, if and when needed, will be available on terms favourable to the Group or at all. If
the Group is unable to obtain additional financing as needed, it may be required to reduce the scope of its activities
and this could have a material adverse effect on the Group’s activities.
12
DIRECTORS’ REPORT
7.
Material Business Risks Continued
7.1 Specific Risks Continued
(c) Availability of Drilling Rigs
The Group’s exploration activities are partly dependent on the availability of drilling rigs. The Group continues to
monitor rig availability. The Group may have difficulty in gaining access to drilling rigs or adequate supplies of
drilling rigs at appropriate prices and in a timely manner. Any of these factors may adversely affect the Group's
exploration activities.
(d)
Tenure Risk
The Kingman Project tenements are granted under and governed by the laws of Arizona and are granted subject
to conditions, including minimum annual expenditure commitments and reporting commitments. Similar conditions
may be applied to future mining permits acquired by the Company or its subsidiaries. Failure to comply with these
conditions may result in forfeiture of the Kingman Project tenements.
Further, the Kingman Project tenements (and any additional future mining permits held by the Group) are subject
to periodic renewal. Whist there is no reason to believe that such renewals will not be granted, the Company
cannot guarantee that this will occur. New conditions may also be imposed on the Kingman Project tenements
(and any additional future mining permits held by the Group) under the renewal process which may adversely
affect the Group.
(e) Personnel and Operating Costs
The Group is dependent on the experience of its Directors’ and management team. Whilst the Board has sought
to and will continue to ensure that the management team and any key employees are appropriately incentivised,
their services cannot be guaranteed. The loss of any of the Directors’, senior management or key employees’
services to the Group may have an adverse effect on the performance of the Group pending replacements being
identified and retained by or appointed to the Board of the Group.
There is a high demand in Western Australia for skilled workers from competing operators. Tightening of the
labour market due to a shortage of skilled labour, combined with a high industry turnover rate and growing number
of competing employers for skilled labour, may inhibit the Group’s or its contractors’ ability to identify, retain and
employ the skilled workers required for the Group’s operations. The Group may be exposed to increased labour
costs in markets where the demand for labour is strong. A shortage of skilled labour may delay or halt planned
commissioning, ramp up and production, limit the Group’s ability to grow its operations or lead to a decline in
productivity.
(f)
Contractual Risk
The ability of the Group to achieve its objectives will depend on the performance by the other parties to contracts
which the Group may enter into in the future. If a party defaults in the performance of its obligations it may be
necessary for the Group to approach a court to seek legal remedy. Legal action can be costly and there can be
no guarantee that a legal remedy will ultimately be granted on appropriate terms.
Further, the Group is unable to predict the risk of insolvency or managerial failure by any of the third party
contractors used by the Group in any of its activities or the insolvency or other managerial failure by any of the
other service providers used by the Group for any activity. The effects of such failures may have an adverse effect
on the Company’s activities.
13
DIRECTORS’ REPORT
7.
Material Business Risks Continued
7.2 Mining Industry Risks
(a) Operational Risk
The Group’s mining, exploration and development activities will be subject to numerous operational risks, many
of which are beyond the Group’s control. The Group’s operations may be curtailed, delayed or cancelled as a
result of factors such as adverse weather conditions both on site and off set restricting access for machinery and
personnel, mechanical difficulties, shortages in or increases in the costs of labour, consumables, spare parts,
plant and equipment, external services failure (including energy and water supply), industrial disputes and action,
difficulties in commissioning, ramp up and operating plant and equipment, IT system failures, mechanical failure
or plant breakdown, compliance with governmental requirements, changes in governmental regulations and civil
unrest. Hazards incidental to the mining, exploration and development of mineral properties such as unusual or
unexpected geological formations, difficulties and/or delays associated with groundwater and dewatering of
existing pits may be encountered by the Group. Industrial and environmental accidents could lead to substantial
claims against the Group for injury or loss of life, and damage or destruction to property, as well as regulatory
investigations, clean up responsibilities, penalties and the suspension of operations.
Life of mine plans for open pit operations rely, in part, on completion of mining in accordance with the final pit
design and there is a risk that final excavated pits end with shallower wall angles than used in the respective life
of mine plans, increasing the cost of gold produced as a result. Geotechnical risk arises from the movement of
the ground during and following mining activity, both for open pit and underground exploration/mining activities.
This may result in temporary or permanent access being restricted or cut off. The loss of access may have a
significant impact on the progress of exploration, the economics of the ore body or delay the delivery of ore to the
processing plant (and any design or construction alternatives may not be successful or cost effective).
Any underground exploration or mining requires specialised infrastructure and is subject to geological and
hydrological risks such as water influx and movement of the earth. Water influx and / or movement of the earth
may prevent the Group from completing is exploration activities and may prevent or delay mining.
The Group will endeavour to take appropriate action to mitigate these operational risks (including by ensuring
legislative compliance, properly documenting arrangements with counterparties, and adopting industry best
practice policies and procedures) or to insure against them, but the occurrence of any one or a combination of
these events may have a material adverse effect on the Group’s performance and the value of its assets.
(b) Ore Reserve and Mineral Resource Estimates
Ore Reserve and Mineral Resource estimates are prepared in accordance with the JORC Code and are
expressions of judgement based on knowledge, experience and industry practice. The reported estimates, which
were valid when originally estimated, may alter significantly when new information or techniques become
available. As the Group obtains new information through additional drilling and analysis, Ore Reserve and Mineral
Resource estimates are likely to change. This may result in alterations to the Group’s exploration, development
and production plans which may, in turn, positively or negatively affect the Company’s operations and financial
position.
By their very nature, Ore Reserve and Mineral Resource estimates are imprecise and depend to some extent on
interpretations, which may prove to be inaccurate. Commodity price fluctuations, as well as capital and production
costs or reduced throughput and/or recovery rates, may materially affect the estimates.
14
DIRECTORS’ REPORT
7.
Material Business Risks Continued
7.2
Mining Industry Risks Continued
(c) Commodity Prices
The value of the Group’s assets may be affected by fluctuations in commodity prices and exchange rates, such
as the USD denominated gold price, and the AUD denominated gold price as a result of fluctuations in the AUD /
USD exchange rate.
Future production from the Group’s mining operations will be dependent upon the gold price being sufficient to
make these operations economic.
These prices can fluctuate rapidly and widely and are affected by numerous factors beyond the control of the
Group. These factors include world demand for precious and other metals, forward selling by producers, and
production cost levels in major metal-producing regions. Other factors include expectations regarding inflation,
the financial impact of movements in interest rates, gold price forward curves, global economic trends, confidence
and conditions, and domestic and international fiscal, monetary and regulatory policy settings.
(d) Exploration and Development
The Group intends to continue with exploration and development programs on the Group’s tenements. In the
event that the planned drilling programs produce poorer than expected results, the value of the Group’s assets
and the viability of the Group’s future operations may be significantly diminished. Additionally, the inability to find
and delineate additional sources of ore may require the Group to delay or indefinitely defer a decision to expand
mining and/or processing operations until sufficient quantities of economically viable ore can be found, delineated
and obtain regulatory approval for mining and processing.
The Group’s tenements are at various stages of exploration and development, and potential investors should
understand that mineral exploration and development are high risk enterprises. Even a combination of experience,
knowledge and careful evaluation may not be able to overcome the inherent risk associated with exploring
prospective tenements.
Investors are cautioned that the proximity to, or similarity of, the Group’s tenements to nearby or other mineral
occurrences or deposits is no guarantee that the Group’s tenements will be prospective for an economic reserve.
There can be no assurance that exploration of the Group’s tenements (or any other tenements that may be
acquired in the future), will result in the development of an economically viable deposit of gold or other minerals.
(e) Grant of Future Authorisations
The Group currently holds all material authorisations required to undertake its open pit mining operations and
exploration programs. However, many of the mineral rights and interests held by the Group are subject to the
need for ongoing or new government approvals, licences and permits as the scope of the Group’s operations
change. The granting and renewal of such approvals, licences and permits are, as a practical matter, subject to
the discretion of applicable government agencies or officials.
(f) Occupational Health and Safety
Mining and exploration activities have inherent risks and hazards. The Group is committed to providing a safe and
healthy workplace and environment for its personnel, contractors and visitors. The Group provides appropriate
instructions, equipment, preventative measures, first aid information, medical facilities and training to all
stakeholders through its occupational health and safety management systems.
15
DIRECTORS’ REPORT
7.
Material Business Risks Continued
7.2 Mining Industry Risks Continued
(f) Occupational Health and Safety (continued)
A serious site safety incident may expose the Group to significant penalties and the Group may be liable for
compensation to the injured personnel. These liabilities may not be covered by the Group's insurance policies or,
if they are covered, may exceed the Group's policy limits or be subject to significant deductibles. Also, any claim
under the Group's insurance policies could increase the Group's future costs of insurance. Accordingly, any
liabilities for workplace accidents could have a material adverse impact on the Group's liquidity and financial
results. It is not possible to anticipate the effect on the Group's business from any changes to workplace
occupational health and safety legislation or directions or necessitated by concern for the health of the workforce.
Such changes may have an adverse impact on the financial performance and/or financial position of the Group.
(g) Environment and Government Regulations
The operations and proposed activities of the Group are subject to State and Commonwealth laws and regulations
concerning the environment. If such laws are breached, the Group may be required to suspend activities and/or
incur significant liabilities including penalties, due to past or future activities.
As with most mining operations and exploration projects, the Group’s activities are expected to have an impact
on the environment, particularly as advanced exploration and mine development and production continues. Mining
projects have statutory rehabilitation obligations that the Group will need to comply with in the future and which
may be material. It is the Group’s intention to conduct its activities to the highest standard of environmental
obligation, including in compliance in all material respects with relevant environmental laws. Nevertheless, there
are certain risks inherent in the Group’s activities which could subject the Group to extensive liability.
7.3 General Risks
(a) Market Conditions
The market price of the Shares can fall as well as rise and may be subject to varied and unpredictable influences
on the market for equities in general and resource stocks in particular.
Further, share market conditions may affect the value of the Company’s quoted Shares regardless of the Group’s
performance. Share market conditions are affected by many factors such as general economic outlook, interest
rates and inflation rates, currency fluctuations, changes in investor sentiment, the demand for, and supply of,
capital; and terrorism or other hostilities.
Neither the Group nor the Directors warrant the future performance of the Group or any return on an investment
in the Group.
(b) Unforeseen Expenditure Risk
The Group’s cost estimates and financial forecasts include appropriate provisions for material risks and
uncertainties and are considered to be fit for purpose for the proposed activities of the Group. If risks and
uncertainties prove to be greater than expected, or if new currently unforeseen material risks and uncertainties
arise, the expenditure proposals of the Group are likely to be adversely affected.
16
DIRECTORS’ REPORT
7.
Material Business Risks Continued
7.3
General Risks Continued
(c)
Insurance
The Group insures its operations in accordance with industry practice. However, in certain circumstances, the
Group’s insurance may not be available or of a nature or level to provide adequate insurance cover. The
occurrence of an event that is not covered or fully covered by insurance could have a material adverse effect on
the business, financial condition and results of the Group. In addition, there is a risk that an insurer defaults in the
payment of a legitimate claim by the Group.
(d)
Litigation
The Group is exposed to possible litigation risks including native title claims, tenure disputes, environmental
claims, royalty disputes, other contractual disputes, occupational health and safety claims and employee claims.
Further, the Group may be involved in disputes with other parties in the future which may result in litigation. Any
such claim or dispute if proven, may impact adversely on the Group's operations, financial performance and
financial position. The Company and its subsidiaries are not currently engaged in any material litigation.
(e)
Force Majeure
The projects in which the Group has an interest now or in the future may be adversely affected by risks outside
the control of the Group including labour unrest, civil disorder, war, subversive activities or sabotage, fires, floods,
explosions or other catastrophes, epidemics, quarantine restrictions or regulatory changes.
(f)
Climate Change
There are a number of climate-related factors that may affect the operations and proposed activities of the Group.
The climate change risks particularly attributable to the Group include:
i.
ii.
the emergence of new or expanded regulations associated with transitioning to a lower-carbon economy
and market changes related to climate change mitigation. The Group may be impacted by changes to
local or international compliance regulations related to climate change mitigation efforts, or by specific
taxation or penalties for carbon emissions or environmental damage. These examples sit amongst an
array of possible restraints on industry that may further impact the Group and its profitability. While the
Group will endeavour to manage these risks and limit any consequential impacts, there can be no
guarantee that the Group will not be impacted by these occurrences; and
climate change may cause certain physical and environmental risks that cannot be predicted by the
Group, including events such as increased severity of weather patterns and incidence of extreme weather
events and longer-term physical risks such as shifting climate patterns. All these risks associated with
climate change may significantly change the industry in which the Group operates.
7.4 Environmental, Social and Governance (ESG)
The Group is committed to protecting and respecting the environment and local communities within which it
operates and look forward to enhancing its positive impact in these areas.
As the Group advances its strategies, it will be sharing its ESG efforts and impact regularly, in line with its annual
reporting cycle.
17
DIRECTORS’ REPORT
8.
Post Balance Date Events
Commencement of Stage 2 Earn-In Kingman Project
On 6 July 2023, following shareholder approval having been received at the General Meeting held on 28 June
2023, the Company issued 100,000,000 fully paid ordinary shares (Stage 2 Consideration Shares) to Flagstaff
Minerals Limited at a deemed issue price of $0.005 per share. On the issue of the Stage 2 Consideration shares
control has been transferred with Riedel to receive shares in Flagstaff Minerals (USA) Inc. to take them to 51% to
Riedel and has triggered the commencement of Stage 2 and change of control.
Issue of Securities
On 24 July 2023, following shareholder approval having been received at the General Meeting held on 28 June
2023, the Company issued a total of 236,000,028 unlisted options to participants of Placement, Share Purchase
Plan and Lead manager Options offered under Prospectus date 10 July 2023, with an exercise price of $0.01 per
share and expiring on 24 July 2025.
There have not been any other events that have arisen between 30 June 2023 and the date of this report or any
other item, transaction or event of a material and unusual nature likely, in the opinion of the directors, to materially
affect the operations of the Group, the results of those operations or the state of affairs of the Group, in subsequent
financial years.
9.
Environmental Regulation
The Group’s operations are not regulated by any significant environmental regulation under a law of the
Commonwealth or of a State or Territory.
The Flagstaff operations are regulated by the laws of Arizona.
18
DIRECTORS’ REPORT
10. Directors, Officers and Company Secretary
The names and details of the Group’s directors in office during the financial year and up to the date of this report
(unless otherwise stated) are as follows:
Michael Bohm
Non-Executive Chairperson
Qualifications
B.AppSc (Mining Eng.), MAusIMM and MAICD
Appointment Date
11 December 2020
Length of Service
2 years 7 months
Biography
Current ASX Listed
Directorships
Former ASX Listed
Directorships in Last 3
Years
Mr Bohm is a qualified mining professional with significant corporate and operations
experience. He has had extensive minerals industry experience in Australia, South
East Asia, Africa, Chile, Canada and Europe. A graduate of WA School of Mines,
Mr Bohm has worked as a mining engineer, mine manager, study manager, project
manager, project director and managing director and has been directly involved in a
number of new mine developments.
Mr Bohm currently serves as a Director of Cygnus Metals Limited.He has previously
held a number of directorships including those with Ramelius Resources Limited,
Perseus Mining Limited, Mincor Resources NL, Argyle Diamonds Mines, Sally Malay
Mining Limited and Ashton Mining of Canada.
Cygnus Metals Limited
Ramelius Resources Limited – resigned 31 May 2022
Mincor Resources Limited – resigned 6 July 2023
Scott Cuomo
Non-Executive Director
Appointment Date
26 July 2017
Length of Service
6 years 1 month
Biography
Mr Cuomo is an experienced non-executive director and a successful businessman.
His career spans over 25 years and is a Director with Oracle Capital, a boutique
Corporate Advisory firm that undertakes assignments on behalf of family offices,
private clients, and ASX listed companies.
He offers valuable experience in strategic planning, risk management and the
structuring of corporate transactions.
Current ASX Listed
Directorships
Former ASX Listed
Directorships in Last 3
Years
None
None
19
DIRECTORS’ REPORT
10. Directors, Officers and Company Secretary Continued
10.1 Directors
Grant Mooney
Non-Executive Director
Qualifications
B.Bus, CA
Appointment Date
31 October 2018, previously Non-Executive Chairperson until 11 December 2020
Length of Service
4 years 8 months
Biography
Mr Mooney is the principal of Perth-based corporate advisory firm Mooney &
Partners, specialising in corporate compliance administration to public companies.
Mr Mooney has gained extensive experience in the areas of corporate and project
management since commencing Mooney & Partners in 1999. His experience
extends to advice on capital raisings, mergers and acquisitions and corporate
governance.
Currently, Mr Mooney serves as a Director to several ASX listed companies across
a variety of industries including technology and resources. He is a Director of Gibb
River Diamonds Limited, appointed 14 October 2008, Accelerate Resources
Limited, appointed 1 July 2017, Talga Group Limited, appointed 20 February 2014,
Carnegie Clean Energy Limited, appointed 19 February 2008 and Aurora Labs
Limited appointed 25 March 2020. He was formerly a director of Greenstone
Resources Limited (formerly Barra Resources Limited) (appointed 29 November
2002 and resigning on 18 August 2021) and SRJ Technologies Limited (appointed
2 June 2020 and resigning on 16 January 2023).
Mr Mooney is a member of Chartered Accountants Australia & New Zealand.
Current ASX Listed
Directorships
Carnegie Clean Energy Limited
Gibb River Diamonds Limited
Accelerate Resources Limited
Talga Group Limited
Aurora Labs Limited
Former ASX Listed
Directorships in Last 3
Years
SRJ Technologies Limited – resigned 16 January 2023
20
DIRECTORS’ REPORT
10. Directors, Officers and Company Secretary Continued
10.1 Directors Continued
Jason Pater
Non-Executive Director
Qualifications
Dual B Business and Span, Hope College
MBA, Michigan State University
Appointment Date
1 February 2021
Length of Service
2 years 6 months
Biography
Mr Pater is a business executive with more than 20 years of board experience in
corporate and non-profit organisations. Mr Pater serves as the President of
Westwater Group, a Michigan-based investment company, and as Chief of
Operations Support of National Heritage Academies, one of the leading educational
service providers in the United States.
Previously, he was the President of PrepNet, which manages a network of college
preparatory high schools. The company was recognized as one of the Top 500
fastest-growing, privately held companies in the USA by Inc. magazine in 2013.
Mr Pater obtained undergraduate degrees in Business and Spanish from Hope
College, and later earned a Master of Business Administration from Michigan State
University. He is on the Board of Directors of National Heritage Academies, and
Southern Cross Capital Pty Ltd, an Australia-based investment company. In
addition, he is a Manager of Osgood Mountains Gold, LLC, which is a privately held
company undertaking active gold exploration in northern Nevada.
Current ASX Listed
Directorships
Former ASX Listed
Directorships in Last 3
Years
None
None
10.2 Directors’ Interests in the Shares and Options of the Company
As at the date of the report, the interests of the directors in the shares and unlisted options (direct and indirect of
the Company were:
Director
Mr Michael Bohm
Mr Scott Cuomo
Mr Grant Mooney
Mr Jason Pater
Ordinary Shares
Unlisted Options
239,761,636
25,636,364
12,074,790
106,842,424
1
2
3
79,000,000
36,633,334
26,000,000
16,866,667
1
2
3
1
2
3
This holding includes an indirect holding of 196,500,000 shares and 62,000,000 unlisted options which are held by Flagstaff Minerals
Limited of which Mr Bohm is a director and his spouse holds a 21% interest in Flagstaff Minerals Limited.
This holding includes an indirect holding of 13,300,000 of which 1,330,000 are held in the name of Oracle Capital Group Ltd and
11,970,000 unlisted options are held in the name of Joarch Jagia Investments Pty Ltd which are both companies which Mr Cuomo is a
director.
This holding is an indirect holding 106,842,4245 shares and 16,866,667 unlisted options which are held in the name of Southern
Cross Capital Pty Ltd, a company for which Mr Pater is a director.
21
DIRECTORS’ REPORT
Directors, Officers and Company Secretary Continued
10.3 Chief Executive Officer
David Groombridge
Chief Executive Officer
Qualifications
MEconGeol
Appointment Date
15 March 2023
Length of Service
5.5 months
Biography
Mr Groombridge is a geologist and brings two decades of hands-on experience to
the mining industry in diverse ore deposit styles, including orogenic gold, nickel
sulphides, tungsten-tin vein/greisen, and SedEx (sedimentary exhalative), across
production, exploration, and development roles.
Mr Groombridge has held senior management positions at Silver Lake Resources
and Medallion Metals, underscoring his leadership skills. As Exploration Manager at
Medallion, where until joining Riedel Mr Groombridge worked since 2016, he played
a pivotal role in the development of the Ravensthorpe Gold Project, a 1.62Moz Au
Eq. WA-based project sharing district scale structural and mineralogical parallels
with the Kingman Project.
Mr Groombridge's accomplishments stand as a testament to his unwavering
commitment to driving progress in the mining sector. His demonstrated expertise
and effective leadership remain pivotal contributors to the industry's ongoing
development.
Current ASX Listed
Directorships
Former ASX Listed
Directorships in Last 3
Years
None
None
10.4 Company Secretary
Susan Field
Company Secretary
Qualifications
B.Bus, CA
Appointment Date
1 July 2021
Length of Service
2 years 2 months
Biography
Ms Field is a Chartered Accountant with 30 years’ experience in the corporate sector
and in public practice. Since qualifying as a Chartered Accountant with Ernst &
Young, Ms Field has worked in several management roles in both the public and
private sector. Prior to entering public practice, Ms Field also spent over 11 years in
the financial services and retail banking industry where she held various positions in
several operational management roles.
Current ASX Listed
Directorships
Former ASX Listed
Directorships in Last 3
Years
None
None
22
DIRECTORS’ REPORT
11. Audited Remuneration Report
The remuneration report for the year ended 30 June 2023 outlines the remuneration arrangements of the
Company and the controlled entities (“Riedel”), (“Group”) or (“Consolidated Entity”) and has been prepared in
accordance with Section 300A of the Corporations Act 2001 (Cth) (the “Act’) and its Regulations. The information
has been audited as required by section 308 (3C) of the Act.
The remuneration report details the remuneration arrangements for Directors and Key Management Personnel
(“KMP”), who are defined as those persons having authority and responsibility for planning, directing, and
controlling the major activities of the Company and Group, directly or indirectly including any director (whether
executive or otherwise) of the parent entity.
11.1 Directors and Key Management Personnel
The table below outlines the Directors and KMP of the Company during the financial year ended 30 June 2023.
Unless otherwise indicated, the individuals were Directors or KMP for the entire financial year.
For the purposes of this report, the term “executive” includes the executive directors and senior executives of the
Company.
Non-Executive Directors
Mr Michael Bohm
Non-Executive Chairperson (appointed 11 December 2020)
Mr Grant Mooney
Non-Executive Director (appointed 31 October 2018, previously Non-Executive
Chairperson, until 11 December 2020)
Mr Scott Cuomo
Non-Executive Director (appointed 26 July 2017)
Mr Jason Pater
Non-Executive Director (appointed 1 February 2021)
Other KMP
Mr David Groombridge
Chief Executive Officer (appointed 15 March 2023)
Ms Susan Field
Company Secretary (appointed 1 July 2021)
11.2 Remuneration Governance
Remuneration Philosophy
The performance of the Company depends upon the quality of the directors and executives. The philosophy of the
Company in determining remuneration levels is to:
- set competitive remuneration packages to attract and retain high calibre employees;
-
link executive rewards to shareholder value creation; and
- establish appropriate, demanding performance hurdles for variable executive remuneration.
Remuneration Committee
The Remuneration Committee, the role and duties of which are undertaken by the Board, establishes human
resources and compensation policies and practices for the Directors (executive and non-executive) and senior
executives, including retirement termination policies and practices, Company share schemes and other incentive
schemes, Company superannuation arrangements and remuneration arrangements.
23
DIRECTORS’ REPORT
11
Audited Remuneration Report Continued
11.2 Remuneration Governance Continued
Use of remuneration consultants
The Board may obtain professional advice where necessary to ensure that the Group attracts and retains talented
and motivated directors, executives and employees who can enhance Group performance through their
contributions and leadership. The Company has not engaged or contracted remuneration consultants during the
financial year.
11.3 Remuneration Framework
Non-Executive remuneration policy and framework
The remuneration policy of the Company has been designed to align director and executive objectives with
shareholder and business objectives by providing a fixed remuneration component which is assessed on an
annual basis in line with market rates and offering specific long-term incentives based on key performance areas
affecting the Group’s financial results. The Board of the Company believes the remuneration policy to be
appropriate and effective in its ability to attract and retain the best directors and executives to run and manage
the Group.
The Board’s policy for determining the nature and amount of remuneration for Board members and senior
executives of the Group is as follows:
The remuneration policy, setting the terms and conditions for the executive directors and other senior executives
(if any), was developed by the Board. All executives are to receive a base salary (which is based on factors such
as length of service and experience) and superannuation. The Board reviews executive packages as required by
reference to the Group’s performance, executive performance and comparable information from industry sectors
and other listed companies in similar industries.
The Board may exercise discretion in relation to approving incentives, bonuses and options. The policy is to attract
the highest calibre of executives and reward them for performance that results in long-term growth in shareholder
wealth.
The directors receive a superannuation guarantee contribution required by the government, which was 10.5% for
the year ended 30 June 2023, and do not receive any other retirement benefits. Note that effective 1 July 2023
the super guarantee rate has risen to 11.0% and will be effective from the 2024 financial year. All remuneration
paid to directors and executives is valued at the cost to the Company and expensed. Options are valued using
the Black-Scholes or Binomial Option Pricing models.
The Board policy is to remunerate non-executive directors at market rates for comparable companies for time,
commitment and responsibilities. The Board determines payments to the non-executive directors and reviews
their remuneration annually, based on market practice, duties and accountability. Independent external advice is
sought when required. The maximum aggregate fees that can be paid to non-executive directors is $250,000 per
annum. Amendments to this amount are subject to approval by shareholders at the Annual General Meeting.
Fees for non-executive directors will not be linked to the performance of the Group. However, to align directors’
interests with shareholder interests, the directors are encouraged to hold shares in the Company and are able to
participate in the Employee Incentive Option Scheme.
24
DIRECTORS’ REPORT
11
Audited Remuneration Report Continued
11.3 Remuneration Framework Continued
KMP Remuneration
The Board ensures that executive reward satisfies the following key criteria for good reward governance practices:
Competitiveness
Acceptability to shareholders
Performance linkage
Capital management
A combination of fixed and variable reward may be provided to KMPs, based on their responsibility within the
Group in relation to the achievement of its strategic objectives and capacity to contribute to the generation of long-
term shareholder value.
Directors’ Fees
Fees for the Chair and Non-Executive Directors are determined within an aggregate director fee pool limit of
$250,000.
Director Fees
2023 Fees Per Director
Exclusive of Superannuation
A$ per Annum
2022 Fees Per Director
Exclusive of Superannuation
A$ per Annum
Chair of the Board
Other Non-Executive Directors
50,000
40,000
50,000
40,000
A director may be paid fees or other amounts as the directors determine where a director performs special duties
or otherwise performs services outside the scope of the ordinary duties of a director. A director may also be
reimbursed for out of pocket expenses incurred as a result of their directorship or any special duties.
Bonuses
No bonuses were given to key management personnel during the 2022 or 2023 financial years.
Performance Based Remuneration
The Company may offer eligible Directors and Key Executives participation in a Company Employee Securities
Incentive Plan approved by shareholders at AGM held on 23 November 2022.
This is in addition to cash remuneration.
25
DIRECTORS’ REPORT
11
Audited Remuneration Report Continued
11.3 Remuneration Framework Continued
Company Performance, Shareholder Wealth and Director’s and Executive’s remuneration
The remuneration policy has been tailored to increase goal congruence between shareholders and directors and
executives. Currently, this is facilitated through the issue of options or Performance Rights to eligible directors
and executives to encourage the alignment of personal and shareholder interests. The Company believes the
policy will be effective in increasing shareholder wealth. For details of directors and executives interests in options
and performance rights at year end, refer below for details.
All directors are entitled to participate in the Company Employee Securities Incentive Plan approved by
shareholders at AGM held on 23 November 2022.
2023 Mix of Remuneration for Directors and KMP Percentage of Total Remuneration
Company Performance
The Group’s performance for the current and prior reporting periods, and its impact on shareholder wealth as
required to be disclosed under the Corporations Act 2001 (Cth), is summarised in the table below:
Year Ended 30 June
Units
2023
2022
2021
2020
2019
Market Capitalisation
Closing Share Price
Loss for the Year
Loss per Share
$
$
$
$
9,797,035
7,501,949
11,552,485
3,344,558
3,762,627
0.005
0.007
0.012
0.008
0.009
(820,244)
(725,091)
(3,464,342)
(1,133,986)
(1,733,262)
(0.06)
(0.07)
(0.53)
(0.27)
(0.41)
11.4 Voting and comments made at the Company’s 2022 Annual General Meeting
The Company received 99.3% of “Yes” votes on its remuneration report for the 2022 financial year (2021: 100%).
The Company did not receive any specific feedback at the AGM or throughout the year on its remuneration
practices.
26
DIRECTORS’ REPORT
11.5 Details of Remuneration
The remuneration of the Key Management Personnel of Riedel Resources Limited for the year ended 30 June
2023 are set out in Table 1 (for the year ending 30 June 2022 in Table 2) below. There have been no changes to
the below named key management personnel since the end of the reporting period unless noted.
Table 1
Fixed Remuneration
Cash
Salary
& Fees
Consu-
ltant
Fees
Annual
Leave
Other
Benefits
4
Post
Employ-
ment
Super-
annuation
Variable
Remuneration
Options
Perform-
ance
Rights
Total
Linked to
Perform-
ance
$
$
$
$
$
$
$
$
%
Non-Executive Directors
Mr M Bohm 1
50,000 138,000
Mr G Mooney
Mr S Cuomo
Mr J Pater
Other KMP
Mr D Groombridge
2
Ms S Field 3
Total
Remuneration
40,000
40,000
39,996
72,917
-
-
-
-
-
-
-
4,821
4,821
4,821
4,821
5,250
4,200
4,200
-
6,647
1,380
7,656
-
27,000
-
4,821
-
27,544
- 225,615
12.2%
-
-
-
-
-
-
-
-
49,021
49,021
44,817
0%
0%
0%
6,207
94,807
6.5%
-
31,821
0%
242,913 165,000
6,647
25,485
21,306
27,544
6,207 495,102
6.8%
1 The Company paid $138,000 to Cerbat Hills Pty Ltd, a company which Mr Michael Bohm is a director, for technical consulting services
provided during the year.
2 Mr D Groombridge was appointed as CEO effective 15 March 2023.
3 Mr S Field fees were paid by the Company to Blue Leaf Pty Ltd.
4 This amount relates to insurance premium paid by the Company for Directors and Officer Insurance cover.
Table 2
Fixed Remuneration
Cash
Salary
& Fees
$
Consult
-ant
Fees
$
Annual
Leave
$
Other
Benefits
3
$
Post
Employ-
ment
Super-
annuation
Variable
Remuneration
Options
Perfor
m-ance
Rights
$
Total
$
Linked to
Perform-
ance
%
$
$
Non-Executive Directors
Mr M Bohm 1
50,000
96,000
Mr G Mooney
Mr S Cuomo
Mr J Pater
Other KMP
Ms S Field 2
Total
Remuneration
40,000
40,000
39,996
-
-
-
27,000
169,996 123,000
-
-
-
-
-
-
4,510
4,510
4,510
4,510
4,510
5,000
4,000
4,000
-
-
22,550
13,000
-
-
-
-
-
-
- 155,510
-
-
-
-
48,510
48,510
44,506
31,510
- 328,546
0%
0%
0%
0%
0%
0%
1 The Company paid $96,000 to Cerbat Hills Pty Ltd, a company which Mr Michael Bohm is a director, for technical consulting services
provided during the year.
2 Mr S Field was appointed as Company Secretary on 1 July 2022 and fees were paid by the Company to Blue Leaf Pty Ltd.
3 This amount relates to insurance premium paid by the Company for Directors and Officer Insurance cover.
27
DIRECTORS’ REPORT
11. Audited Remuneration Report Continued
11.6 Service Agreements
Remuneration and other terms of employment for key management personnel are formalised in service
agreements. Details of these agreements are as follows:
Name
Title
Michael Bohm
Non-Executive Chairperson
Agreement commenced
11 December 2020
Term of agreement
Initial 3 years
Details
Name
Title
(subject to re-election every 3 years from 11 December 2020)
Director’s fees of $50,000 per annum plus superannuation
Grant Mooney
Non-Executive Director, formerly Non-Executive Chairperson, stepping down
from this role effective 11 December 2020
Agreement commenced
31 October 2018
Term of agreement
Initial 3 years
(subject to re-election every 3 years from 31 October 2018)
Details
From 31 October 2018 Director’s fees of $30,000 per annum plus
superannuation
From 1 December 2020 Director’s fees increased to $40,000 per annum
Name
Title
plus superannuation
Scott Cuomo
Non-Executive Director
Agreement commenced
26 July 2017
Term of agreement
Initial 3 years, renewed for a further 3 years from 26 July 2020
(subject to re-election every 3 years from 26 July 2017)
Details
From 26 July 2017 Director’s fees of $30,000 per annum plus
superannuation
From 1 December 2020 Director’s fees increased to $40,000 per annum
Name
Title
plus superannuation
Jason Pater
Non-Executive Director
Agreement commenced
1 February 2021
(subject to re-election every 3 years from 1 February 2021)
Term of agreement
Initial 3 years
Details
From 1 February 2021 Director’s fees of $40,000 per annum plus
superannuation (if applicable)
28
DIRECTORS’ REPORT
11. Audited Remuneration Report Continued
11.6 Service Agreements Continued
Name
Title
David Groombridge (appointed 15 March 2023)
Chief Executive Officer
Agreement commenced
15 March 2023
Term of agreement
On going until terminated
Details
From 15 March 2023 a salary of $250,000 per annum plus
superannuation
Performance Rights allocation with measurement periods and hurdles,
refer 11.7 of this Report for additional details.
Name
Title
Susan Field (appointed 1 July 2021)
Company Secretary
Agreement commenced
1 July 2021
Term of agreement
On going until terminated
Details
From 1 July 2021 Company Secretarial fees of $27,000 per annum under
a services contract with Blue Leaf Corporate Pty Ltd
11.7 Details of Share-Based Compensation
Options are issued to directors and executives as part of their remuneration. The options are not always issued
based on performance criteria and in the instances, they are not, they are issued to the majority of directors and
executives of Riedel Resources Limited to increase goal congruence between executives, directors and
shareholders.
2023
The following tables set out the type and number of equity incentives granted to KMP during the current year.
Unlisted Options
Number of
Options
Award Date
Expiry Date
Fair Value at
Award Date
Fair Value
per Option /
Performance
Right at
Award Date
Mr M Bohm 1
5,000,000
06/12/2022
06/12/2025
Mr S Cuomo 2
13,300,000
06/12/2022
06/12/2025
$27,544
$73,150
$0.0055
$0.0055
(i) Unlisted incentive options with an exercise price of $0.01 and expiring on 6 December 2025.
(ii) The 13.3 million options were not issue to Mr Cuomo but to his related parties, hence, not disclosed under 11.7 (2023). These are disclosed
on page 23 Note 11.7 footnote 2.
29
DIRECTORS’ REPORT
11. Audited Remuneration Report Continued
11.7 Details of Share-Based Compensation Continued
Performance Rights
Number of
Performance
Rights
Award Date
Expiry Date
Fair Value at
Award Date
Mr D Groombridge 1
2,500,000
28/04/2023
28/04/2028
Mr D Groombridge 2
2,500,000
28/04/2023
28/04/2028
Mr D Groombridge 3
2,500,000
28/04/2023
28/04/2028
Mr D Groombridge 4
2,500,000
28/04/2023
28/04/2028
Mr D Groombridge 5
5,000,000
28/04/2023
28/04/2028
Mr D Groombridge 6
5,000,000
28/04/2023
28/04/2028
Mr D Groombridge 7
5,000,000
28/04/2023
28/04/2028
Mr D Groombridge 8
5,000,000
28/04/2023
28/04/2028
$15,000
$15,000
$15,000
$15,000
$30,000
$30,000
$30,000
$30,000
Fair Value
per Option /
Performance
Right at
Award Date
$0.0060
$0.0060
$0.0060
$0.0060
$0.0060
$0.0060
$0.0060
$0.0060
To vest upon the Company’s fully paid ordinary shares achieving a 30-Day VWAP of $0.015 or above within the VWAP Period; and
the KMP remaining continuously employed as CEO at all times until 1 March 2024.
To vest upon the Company’s fully paid ordinary shares achieving a 30-Day VWAP of $0.02 or above within the VWAP Period; and the
KMP remaining continuously employed as CEO at all times until 1 March 2024.
To vest upon the Company’s fully paid ordinary shares achieving a 30-Day VWAP of $0.03 or above within the VWAP Period; and the
KMP remaining continuously employed as CEO at all times until 1 March 2024.
To vest upon the Company’s fully paid ordinary shares achieving a 30-Day VWAP of $0.04 or above within the VWAP Period; and the
KMP remaining continuously employed as CEO at all times until 1 March 2024.
To vest upon the Company announcing on the ASX market announcements platform an Indicated Mineral Resource (as defined in
the JORC Code 2012) of at least 100,000 ounces at a grade of not less than 4g/t Au on or before 30 June 2024; and the KMP
remaining continuously employed as CEO at all times until 30 June 2026.
To vest upon the Company announcing on the ASX market announcements platform an Indicated Mineral Resource (as defined in
the JORC Code 2012) of at least 250,000 ounces at a grade of not less than 4g/t Au on or before 30 June 2025; and the KMP
remaining continuously employed as CEO at all times until 30 June 2026.
To vest upon the first gold bullion production at one of the Company’s projects; and the KMP remaining continuously employed as
CEO at all times until 30 June 2026.
To vest upon reaching gold bullion production of no less than 500,000 ounces at one or more of the Company’s projects; and the
KMP remaining continuously employed as CEO at all times until 30 June 2026.
1
2
3
4
5
6
7
8
2022
There were no options or performance rights issued during the 2022 financial year.
30
DIRECTORS’ REPORT
11. Audited Remuneration Report Continued
11.7 Details of Share-Based Compensation Continued
Share Option Holdings
Movements in the number of unlisted share options in the Company during current and comparative financial year
by KMP, including their personally related parties are set out below:
2023
Unlisted Options
Non-Executive Directors
Mr M Bohm 1
Mr G Mooney
Mr S Cuomo2
Mr J Pater
Other KMP
Mr D Groombridge
Ms S Field
Total
Balance at
1 July 2022
Granted
Lapsed
70,000,000
25,000,000
20,000,000
5,000,000
-
13,300,000
-
-
-
-
-
-
115,000,000
18,300,000
Balance at
30 June 2023
(vested and
exercisable)
75,000,000
25,000,000
33,300,000
-
-
-
133,300,000
-
-
-
-
-
-
-
1 Included in the Options held by Mr Bohm are 60,000,000 Options held in the name of Flagstaff Minerals Limited a company of which Mr
Bohm is a director and his spouse holds a 21% interest in Flagstaff Minerals Limited which Mr Cuomo is a director which do not form part
of Mr Bohm’s remuneration.
2 Included in the Options held by Mr Cuomo are 13,300,000 Options, 1,330,000 in the name of Oracle Capital Group Ltd and 11,970,000
are held in the name of Joarch Jagia Investments Pty Ltd which are both companies of which Mr Cuomo is a director which does not form
part of Mr Cuomo’s remuneration.
2022
Unlisted Options
Non-Executive Directors
Mr M Bohm 1
Mr G Mooney
Mr S Cuomo 2
Mr J Pater
Other KMP
Ms S Field
Total
Balance at
1 July 2021
Granted
Lapsed
Balance at
30 June 2022
(vested and
exercisable)
70,000,000
25,000,000
25,000,000
-
-
120,000,000
-
-
-
-
-
-
-
-
(5,000,000)
70,000,000
25,000,000
20,000,000
-
-
-
-
(5,000,000)
115,000,000
1 Included in the Options held by Mr Bohm are 60,000,000 Options held in the name of Flagstaff Minerals Limited a company of which Mr
Bohm is a director and his spouse holds a 21% interest in Flagstaff Minerals Limited.
2 Unlisted options with exercise price of $0.11 and expiry date of 23 November 2021 held by Mr Cuomo lapsed unexercised.
31
DIRECTORS’ REPORT
11. Audited Remuneration Report Continued
11.7 Details of Share-Based Compensation Continued
Performance Right Holdings
2023
Balance at
1 July 2022
Unvested
Granted as
Compensation
Vested and
Converted
Balance at
30 June 2023
Unvested
-
-
-
-
-
-
-
-
-
-
-
30,000,000
-
30,000,000
-
-
-
-
-
-
-
-
-
-
-
30,000,000
-
30,000,000
Non-Executive Directors
Mr M Bohm
Mr G Mooney
Mr S Cuomo
Mr J Pater
Other KMP
Mr D Groombridge
Ms S Field
Total
2022
There were no performance rights on issue for 2022 financial year.
11.8 Shareholdings of Key Management Personnel
The number of shares in the Company held during the financial year by KMP of the Company, including their
personally related parties, are set out below:
2023
Balance at the
Start of the Year/
On Appointment
Received on
exercise of
Options/
Performance
Rights
Other Changes
Balance at the
End of the Year
Non-Executive Directors
Mr M Bohm 1
Mr G Mooney
Mr S Cuomo 2
Mr J Pater
Other KMP
Mr D Groombridge
Ms S Field
Total
110,000,000
7,074,790
9,636,364
56,242,424
-
300,000
183,253,578
-
-
-
-
-
-
-
29,761,636
139,761,636
5,000,000
16,000,000
50,600,000
12,074,790
25,636,364
106,842,424
1,600,000
1,000,000
1,600,000
1,300,000
103,961,636
287,215,214
1
Included in the Shares held by Mr Bohm are 196,500,000 shares held in the name of Flagstaff Minerals Limited a company of which Mr
Bohm is a director and his spouse holds a 21% interest in Flagstaff Minerals Limited.
2 The shares held by Mr Pater are held in the name of Southern Cross Capital Pty Ltd, a company of which Mr Pater is a director.
32
DIRECTORS’ REPORT
11. Audited Remuneration Report Continued
11.8 Shareholdings of Key Management Personnel Continued
2022
Balance at the
Start of the Year/
On Appointment
Received on
exercise of
Options/
Performance
Rights
Other Changes
Balance at the
End of the Year
Non-Executive Directors
Mr M Bohm 1
Mr G Mooney
Mr S Cuomo
Mr J Pater 2
Other KMP
Ms S Field
Total
80,000,000
5,074,790
3,636,364
56,242,424
300,000
145,253,578
-
-
-
-
-
-
30,000,000
110,000,000
2,000,000
6,000,000
-
-
7,074,790
9,636,364
56,242,424
300,000
38,000,000
183,253,578
1
Included in the Shares held by Mr Bohm are 85,000,000 shares held in the name of Flagstaff Minerals Limited a company of which Mr
Bohm is a director and his spouse holds a 21% interest in Flagstaff Minerals Limited.
2 The shares held by Mr Pater are held in the name of Southern Cross Capital Pty Ltd, a company of which Mr Pater is a director.
11.9 Other Transactions with Key Management Personnel
The following transactions have been entered into on arm’s length terms based and on normal commercial term
and conditions.
Mooney & Partners, a company associated with Mr Mooney, has an interest in providing the rental of office
space to the Company during the year ended 30 June 2023 totalling $6,000 (2022: $6,000).
$1,000 was owing to Mooney & Partners at 30 June 2023 (2022: Nil).
Cerbat Hills Pty Ltd, a company which Mr Michael Bohm is a director, and has an interest in providing
technical consulting services to the Company during the year ended 30 June 2023 totalling $138,000 (2022:
$96,000).
$28,600 was owing to Cerbat Hills Pty Ltd at 30 June 2023 (2022: $8,000).
Blue Leaf Corporate Pty Ltd, a company that holds a services contract to provide accounting, financial and
company secretarial services. Ms Susan Field currently holds the position as Company Secretary, with fees
relating to this during the year ended 30 Jue 2023 totalled $27,000 (2022: $27,000).
$2,250 was owing to Blue Leaf Corporate Pty Ltd that relate to these service at 30 June 2023 (2022: $2,250).
11.10 Loans to Key Management Personnel
There were no loans made to directors of Riedel Resources Limited and other key management personnel of the
Group, including their close family members or entities related to them.
End of Remuneration Report
33
DIRECTORS’ REPORT
12
Shares under Options
Unissued ordinary shares of Riedel Resources Limited under option at the date of this report are as follows:
Date Granted
Expiry Date
Exercise Price
Number under Option
14 Dec 20
06 Dec 22
24 Jul 23
14 Dec 23
06 Dec 25
24 Jul 25
$0.0125
$0.0100
$0.010
150,000,000
18,300,000
236,000,028
No option holder has any right under the options to participate in any other share issue of the Company or any
other entity.
13
Performance Rights
Date Granted
Expiry Date
Number of Rights
28 Apr 23
28 Apr 28
30,000,000
14
Proceedings on behalf of the Company
No person has applied for leave of Court to bring proceedings on behalf of the Company or to intervene in any
proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Company for all
or any part of those proceedings.
The Company was not a party to any such proceedings during the financial year.
15 Meetings of Directors
During the financial year, 3 (three) meetings of directors were held. The number of meetings attended by each
director during the year is stated below:
Director
Directors Meetings
Number Eligible to
Meetings Attended
Mr M Bohm
Mr G Mooney
Mr S Cuomo
Mr J Pater
16
Insurance of Officers
Attend
3
3
3
3
3
3
3
3
Riedel Resources has paid a premium of $25,485 for the full financial year (2022: $22,550) to insure the directors
and secretary of the Company and its controlled entities. The liabilities insured are legal costs that may be
incurred in defending civil or criminal proceedings that may be brought against the officers in their capacity as
officers of entities in the group, and any other payments arising from liabilities incurred by the officers in connection
with such proceedings. This does not include such liabilities that arise from conduct involving a wilful breach of
duty by the officers or the improper use by the officers of their position or of information to gain advantage for
themselves or someone else or to cause detriment to the company.
34
DIRECTORS’ REPORT
16
Insurance of Officers Continued
The Group has not, during or since the financial year, in respect of any person who is or has been an officer of
the Company:
Indemnified or made any relevant agreement for the indemnifying against a liability, including costs and
expenses in successfully defending legal proceedings; or
Paid or agreed to pay a premium in respect of a contract insuring against a liability for the costs or expenses
to defend legal proceedings.
17
Non-Audit services
No non audit services have been provided by the auditor of the Group, Stantons during the financial year.
18
Auditors Independence Declaration
The auditor’s independence declaration for the year ended 30 June 2023 has been received and is included in
the financial report on page 37.
Signed in accordance with a resolution of the Board of Directors
Michael Bohm
Non-Executive Chairperson
Date: 11 September 2023
35
Competent Person Statement
The information in this report that relates to exploration results is based on information compiled by Mr David
Groombridge, a Competent Person who is a Member the Australasian Institute of Mining and Metallurgy
(“AusIMM”). Mr Groombridge is an employee and security holder of the Company and has sufficient experience
that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being
undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for
Reporting of Mineral Resources and Ore Reserves’ (the “JORC Code”). Mr Groombridge consents to the
inclusion in the report of the matters based on his information in the form and context in which it appears.
Forward Looking Statements
This release includes forward looking statements. Often, but not always, forward looking statements can
generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”,
“estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation
statements regarding plans, strategies and objectives of management, anticipated production or construction
commencement dates and expected costs or production output.
Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that
may cause the company’s actual results, performance and achievements to differ materially from any future
results, performance or achievements. Relevant factors may include, but are not limited to, changes in
commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand
for production inputs, the speculative nature of exploration and project development, including the risks of
obtaining necessary licences and permits and diminishing quantities or grades of resources or reserves, political
and social risks, changes to the regulatory framework within which the company operates or may in the future
operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel,
industrial relations issues and litigation.
Forward looking statements are based on the company and its management’s good faith assumptions relating
to the financial, market, regulatory and other relevant environments that will exist and affect the company’s
business and operations in the future. The company does not give any assurance that the assumptions on which
forward looking statements are based will prove to be correct, or that the company’s business or operations will
not be affected in any material manner by these or other factors not foreseen or foreseeable by the company or
management or beyond the company’s control.
Although the company attempts to identify factors that would cause actual actions, events or results to differ
materially from those disclosed in forward looking statements, there may be other factors that could cause actual
results, performance, achievements or events not to be anticipated, estimated or intended, and many events
are beyond the reasonable control of the company. Accordingly, readers are cautioned not to place undue
reliance on forward looking statements.
Forward looking statements in this release are given as at the date of issue only. Subject to any continuing
obligations under applicable law or any relevant stock exchange listing rules, in providing this information the
company does not undertake any obligation to publicly update or revise any of the forward looking statements
or to advise of any change in events, conditions or circumstances on which any such statement is based.
New Information or Data
The company confirms that it is not aware of any new information or data that materially affects the information
included in the relevant market announcement.
Notes
1 For full details of these Exploration results, refer to the said Announcement on the said date. Riedel is not
aware of any new information of data that materially affects the information included in the announcement.
2 For full details of these Exploration results, refer to the Norwest Minerals Limited ASX Announcement on the
said date. Riedel is not aware of any new information of data that materially affects the information included
in the announcement.
36
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
11 September 2023
Board of Directors
Riedel Resources Limited
Suite 4, 6 Richardson Street
West Perth
6005
Dear Directors
RE:
RIEDEL RESOURCES LIMITED
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following
declaration of independence to the directors of Riedel Resources Limited.
As Audit Director for the audit of the financial statements of Riedel Resources Limited for the year ended
30 June 2023, I declare that to the best of my knowledge and belief, there have been no contraventions
of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
Yours sincerely
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Martin Michalik
Director
Liability limited by a scheme approved under Professional Standards Legislation
Stantons Is a member of the Russell
Bedford International network of firms
2023 Financial Report
For the Year Ended 30 June 2023
Contents
Consolidated Statement of Profit or Loss and Other Comprehensive Income ................................................ 39
Consolidated Statement of Financial Position ................................................................................................. 40
Consolidated Statement of Changes in Equity ................................................................................................ 41
Consolidated Statement of Cash Flows ........................................................................................................... 42
Notes to the Consolidated Financial Statements ............................................................................................. 43
Directors’ Declaration ....................................................................................................................................... 76
Independent Auditor’s Report .......................................................................................................................... 77
These financial statements are the consolidated financial statements of the consolidated entity consisting of
Riedel Resources Limited and its subsidiaries. The financial statements are presented in the Australian currency.
Riedel Resources Limited is a Company limited by shares, incorporated and domiciled in Australia. Its registered
office and principal place of business is:
Riedel Resources Limited:
Suite 4, 6 Richardson Street
WEST PERTH WA 6005
A description of the nature of the consolidated entity's operations and its principal activities is included in the
Operations Review on pages 3 to 8 in the Directors’ report, which is not part of these financial statements.
The financial statements were authorised for issue by the directors on 11 September 2023.
Through the use of the internet, the Company has ensured that its corporate reporting is timely, complete, and
available globally at minimum cost to the Company. All press releases, financial statements and other information
are available on our website: www.riedelresources.com.au.
38
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 30 June 2023
Interest revenue
Other revenue
Total revenue
Administration expenses
Compliance and regulatory expense
Consultancy expense
Occupancy expense
Insurance expense
Depreciation expense
Employee benefits expense
Share based payments
Impairment of exploration expenditure
Foreign exchange loss
VAT receivable written off
NOTES
2023
$
6,525
-
6,525
(88,493)
(102,526)
(236,270)
(10,435)
(42,166)
(653)
(283,656)
(42,878)
-
(19,692)
-
2
8
12
3,9
3
2022
$
432
8,891
9,323
(66,575)
(106,357)
(212,182)
(6,000)
(32,270)
-
(208,329)
-
(93,631)
-
(9,070)
Loss before income tax expense
(820,244)
(725,091)
Income tax expense
Loss for the year
4
-
-
(820,244)
(725,091)
Other comprehensive loss
Items that may be reclassified subsequent to profit or loss
Exchange difference on translation of foreign operation
4,178
(8,473)
Total comprehensive loss for the year
(816,066)
(733,564)
Basic and diluted (loss) per share (cents)
17
(0.06)
(0.07)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
39
Consolidated Statement of Financial Position
As At 30 June 2023
Current Assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-Current Assets
Property, plant and equipment
Exploration and evaluation expenditure
NOTES
2023
$
2022
$
6
7
8
9
2,828,617
1,370,816
57,768
36,929
2,886,385
1,407,745
5,755
-
6,767,908
4,207,124
Total Non-Current Assets
6,773,663
4,207,124
Total Assets
9,660,048
5,614,869
Current Liabilities
Trade and other payables
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Share based payment reserve
Foreign currency translation reserve
Accumulated losses
Total Equity
10
773,658
773,658
773,658
69,552
69,552
69,552
8,886,390
5,545,317
11
12
13
14
28,209,225
24,304,665
3,027,579
2,809,800
(968)
(5,146)
(22,349,446)
(21,564,002)
8,886,390
5,545,317
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
40
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2023
Issued
Capital
$
Foreign
Currency
Translation
Reserve
$
Share
Based
Payments
Reserve
$
Accumulated
Losses
Total
$
$
Balance at 1 July 2022
24,304,665
(5,146)
2,809,800
(21,564,002)
5,545,317
Loss for the year
Other comprehensive loss
Total comprehensive loss for
the period
Transactions with owner,
recorded directly in equity
Contributions of equity (net of
transaction costs)
Share based payments
Issue of unlisted options
Issue of performance rights
Expiry of unlisted options not
exercised
-
-
-
-
4,178
4,178
3,904,560
-
-
-
-
-
-
-
-
-
-
-
(820,244)
(820,244)
-
4,178
(820,244)
(816,066)
-
3,904,560
237,245
15,334
-
-
237,245
15,334
(34,800)
34,800
-
Balance at 30 June 2023
28,209,225
(968)
3,027,579
(22,349,446)
8,886,390
Balance at 1 July 2021
23,241,949
3,327
2,809,800
(20,838,911)
5,216,165
Loss for the year
Other comprehensive loss
Total comprehensive loss for
the period
Transactions with owner,
recorded directly in equity
Contributions of equity (net of
transaction costs)
-
-
-
-
(8,473)
(8,473)
1,062,716
1,062,716
-
-
-
-
-
-
-
(725,091)
(725,091)
-
(8,473)
(725,091)
(733,564)
-
-
1,062,716
1,062,716
Balance at 30 June 2022
24,304,665
(5,146)
2,809,800
(21,564,002)
5,545,317
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
41
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2023
NOTES
2023
$
2022
$
Cash Flows from Operating Activities
Interest received
6,525
432
Payments to suppliers and employees
(711,424)
(637,521)
Net cash used in operating activities
16
(704,899)
(637,089)
Cash Flows from Investing Activities
Purchase of property plant and equipment
(6,408)
-
Payment for exploration and evaluation
(2,092,234)
(1,728,682)
Net cash used in investing activities
(2,098,642)
(1,728,682)
Cash Flows from Financing Activities
Proceeds from issued capital
Payments for share issue costs
4,438,500
1,050,000
(186,865)
(47,284)
Net cash provided by financing activities
4,251,635
1,002,716
Net cash increase/ (decrease) in cash and cash
equivalents held
1,448,094
(1,363,055)
Cash and cash equivalents at the beginning of the year
1,370,816
2,723,188
Effects of foreign currency exchange
9,707
10,683
Cash and cash equivalents at the end of the year
6
2,828,617
1,370,816
Amounts relating to payments to suppliers and employees as set out above are inclusive of goods and services tax. The
above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
42
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1.
Summary of Significant Accounting Policies
Riedel Resources Limited (the "Company") is a listed public company limited by shares, incorporated and
domiciled in Australia.
The consolidated financial statements of the Company as at and for the year ended 30 June 2023 comprise the
Company and its subsidiaries (together referred to as the "Group" and collectively as "Group entities").
The Group primarily is involved in mining and exploration activity.
(a) Basis of preparation
The accounting policies set out below have been consistently applied to all years presented.
(i)
Statement of Compliance
These general-purpose financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the
Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also
comply with International Financial Reporting Standards as issued by the International Accounting
Standards Board ('IASB').
The consolidated financial statements were authorised for issue by the Board of Directors on 11 September
2023.
(ii)
Historical cost convention
The consolidated financial statements have been prepared under the historical cost convention, except for,
where applicable, the revaluation of financial assets and liabilities at fair value through profit or loss,
investment properties, certain classes of property, plant and equipment and derivative financial instruments.
(iii) Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the Group
only. Supplementary information about the parent entity is disclosed in note 27.
(iv) Going Concern
These consolidated financial statements have been prepared on a going concern basis which contemplates
continuity of normal business activities and the realisation of assets and settlement of liabilities in the normal
course of business. As at 30 June 2023 the Group had net assets of $8,886,390 (2022: $5,545,317) and
reported a loss for the year of $820,244 (2022: $725,091) and had a net working capital of $2,113,392
(2022: $1,338,193).
Based on a cashflow forecast prepared by management, the ability of the Group to continue to pay its debts
as and when they fall due is dependent on the Company successfully raising additional share capital and
ultimately developing its mineral properties.
43
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1.
Summary of Significant Accounting Policies (continued)
(a) Basis of preparation (continued)
(iv) Going Concern (continued)
The directors believe it is appropriate to prepare these financial statements on a going concern basis
because:
-
-
The directors have appropriate plans to raise additional funds as and when required. In light of the
Group’s current exploration projects, the directors believe that the additional capital can be raised
in the market; and
The directors have an appropriate plan to contain certain operating and exploration expenditure if
required funding is not available.
These financial statements have been prepared on the basis that the Group can meet its commitments as
and when they fall due and can therefore continue normal business activities, and the realisation of its
assets and settlement of its liabilities can occur in the ordinary course of business.
In the event that the Group is unable to satisfy future funding requirements, a material uncertainty would
arise that may cast significant doubt on the Group’s ability to continue as a going concern with the result
that the Group may be required to realise its assets at amounts different from those currently recognised,
settle liabilities other than in the ordinary course of business and make provisions for costs which may arise
as a result of cessation or curtailment of normal business operations.
(b) Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Riedel
Resources Limited ('Company' or 'parent entity') as at 30 June 2023 and the results of all subsidiaries for
the year then ended. Riedel Resources Limited and its subsidiaries together are referred to in these
financial statements as the 'Group'.
Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the
Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability
to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the Group. They are de-consolidated from the
date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the Group
are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the
impairment of the asset transferred. Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by the Group.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in
ownership interest, without the loss of control, is accounted for as an equity transaction, where the
difference between the consideration transferred and the book value of the share of the non-controlling
interest acquired is recognised directly in equity attributable to the parent.
44
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1.
Summary of Significant Accounting Policies (continued)
(b) Principles of consolidation (continued)
Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities
and non-controlling interest in the subsidiary together with any cumulative translation differences
recognised in equity. The Group recognises the fair value of the consideration received and the fair value
of any investment retained together with any gain or loss in profit or loss.
(c) 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 directors. The directors are responsible for the
allocation of resources to operating segments and assessing their performance.
(d)
Foreign currency translation
The financial statements are presented in Australian dollars, which is Riedel Resources Limited's functional
and presentation currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at
the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in profit or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange
rates at the reporting date. The revenues and expenses of foreign operations are translated into Australian
dollars using the average exchange rates, which approximate the rate at the date of the transaction, for the
period. All resulting foreign exchange differences are recognised in other comprehensive income through
the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is
disposed of.
(e) 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. The 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.
45
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1.
Summary of Significant Accounting Policies (continued)
(e) Critical accounting judgements, estimates and assumptions (continued)
Share Based Payment Transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value
of the equity instruments at the date at which they are granted. The fair value is determined by an
independent external valuation using Black-Scholes model, using the assumptions detailed in Note 15.
Exploration and Evaluation Costs
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of
interest. These costs are carried forward in respect of an area that has not at reporting date reached a
stage which permits a reasonable assessment of the existence or otherwise of economically recoverable
reserves, and active and significant operations in, or relating to, the area of interest are continuing.
Impairment of Exploration and Evaluation Assets
The ultimate recoupment of the value of exploration and evaluation assets is dependent on the successful
development and commercial exploitation, or alternatively, sale, of the exploration and evaluation assets.
Impairment tests are carried out on a regular basis to identify whether the asset carrying values exceed
their recoverable amounts. There is significant estimation and judgement in determining the inputs and
assumptions used in determining the recoverable amounts.
The key areas of judgement and estimation include:
Recent exploration and evaluation results and resource estimates;
Environmental issues that may impact on the underlying tenements; and
Fundamental economic factors that have an impact on the operations and carrying values of assets
and liabilities.
(f)
Income tax expenses
The charge for current income tax expense is based on the loss for the year adjusted for any non-
assessable or disallowed items. It is calculated using the tax rates that have been enacted or are
substantially enacted by the reporting date.
Deferred tax is accounted for using the liability method in respect of temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred
income tax will be recognised from the initial recognition of an asset or liability, excluding a business
combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised
or liability is settled. Deferred tax is credited in the statement of profit or loss and other comprehensive
income except where it relates to items that may be credited directly to equity, in which case the deferred
tax is adjusted directly against equity.
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be
available against which deductible temporary differences can be utilised.
46
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1.
(f)
Summary of Significant Accounting Policies (continued)
Income tax expenses (continued)
The amount of benefits brought to account or which may be realised in the future is based on the
assumption that no adverse change will occur in income taxation legislation and the anticipation that the
Group will derive sufficient future assessable income to enable the benefit to be realised and comply with
the conditions of deductibility imposed by the law.
(g) Exploration and evaluation expenditure
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of
interest. These costs are carried forward only if they relate to an area of interest for which rights of tenure
are current and in respect of which:
such costs are expected to be recouped through successful development and exploitation or from
sale of the area; or
exploration and evaluation activities in the area have not, at reporting date, reached a stage which
permit a reasonable assessment of the existence or otherwise of economically recoverable reserves,
and active operations in, or relating to, the area are continuing.
Accumulated costs in respect of areas of interest which are abandoned are written off in full against loss in
the year in which the decision to abandon the area is made.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to
carry forward costs in relation to that area of interest.
The recoverability of the carrying amount of the exploration and development assets is dependent on the
successful development and commercial exploitation or alternatively sale of the respective areas of interest.
(h)
Financial Instruments
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual
provisions of the financial instrument. Financial instruments (except for trade receivables) are measured
initially at fair value adjusted by transactions costs, except for those carried “at fair value through profit or
loss”, in which case transaction costs are expensed to profit or loss. Where available, quoted prices in an
active market are used to determine the fair value. In other circumstances, valuation techniques are
adopted. Subsequent measurement of financial assets and financial liabilities are described below.
Trade receivables are initially measured at the transaction price if the receivables do not contain a
significant financing component in accordance with AASB 15.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset
expire, or when the financial asset and all substantial risks and rewards are transferred. A financial liability
is derecognised when it is extinguished, discharged, cancelled or expires.
47
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1.
Summary of Significant Accounting Policies (continued)
(h)
Financial Instruments (continued)
Classification and subsequent measurement
Financial assets
Except for those trade receivables that do not contain a significant financing component and are measured
at the transaction price in accordance with AASB 15, all financial assets are initially measured at fair value
adjusted for transaction costs (where applicable).
For the purpose of subsequent measurement, financial assets other than those designated and effective
as hedging instruments, are classified into the following categories upon initial recognition:
amortised cost;
fair value through other comprehensive income (FVOCI); and
fair value through profit or loss (FVPL).
Classifications are determined by both:
The contractual cash flow characteristics of the financial assets; and
The entities business model for managing the financial asset.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not
designated as FVPL):
they are held within a business model whose objective is to hold the financial assets and collect its
contractual cash flows; and
the contractual terms of the financial assets give rise to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method.
Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash
equivalents, trade and most other receivables fall into this category of financial instruments.
Financial assets at fair value through other comprehensive income (Equity instruments)
The Group measures debt instruments at fair value through OCI if both of the following conditions are met:
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding; and
The financial asset is held within a business model with the objective of both holding to collect
contractual cash flows and selling the financial asset.
For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and
impairment losses or reversals are recognised in the statement of profit or loss and computed in the same
manner as for financial assets measured at amortised cost. The remaining fair value changes are
recognised in OCI.
48
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1.
Summary of Significant Accounting Policies (continued)
(h)
Financial Instruments (continued)
Financial assets at fair value through other comprehensive income (Equity instruments) (continued)
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity
instruments designated at fair value through OCI when they meet the definition of equity under AASB 132
Financial Instruments: Presentation and are not held for trading.
Financial assets at fair value through profit or loss (FVPL)
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets
designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily
required to be measured at fair value. Financial assets are classified as held for trading if they are acquired
for the purpose of selling or repurchasing in the near term.
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective
hedge, as appropriate.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs
unless the Group designated a financial liability at fair value through profit or loss. Subsequently, financial
liabilities are measured at amortised cost using the effective interest method except for derivatives and
financial liabilities designated at FVPL, which are carried subsequently at fair value with gains or losses
recognised in profit or loss.
All interest-related charges and, if applicable, gains and losses arising on changes in fair value are
recognised in profit or loss.
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure
purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date; and assumes that
the transaction will take place either: in the principle market; or in the absence of a principal market, in the
most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset
or liability, assuming they act in their economic best interest. For non-financial assets, the fair value
measurement is based on its highest and best use. Valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair value, are used, maximising the
use of relevant observable inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified, into three levels, using a fair value hierarchy that
reflects the significance of the inputs used in making the measurements. Classifications are reviewed each
reporting date and transfers between levels are determined based on a reassessment of the lowest level
input that is significant to the fair value measurement.
49
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1.
Summary of Significant Accounting Policies (continued)
(h)
Financial Instruments (continued)
Fair value measurement (continued)
For recurring and non-recurring fair value measurements, external valuers may be used when internal
expertise is either not available or when the valuation is deemed to be significant. External valuers are
selected based on market knowledge and reputation. Where there is a significant change in fair value of an
asset or liability from one period to another, an analysis is undertaken, which includes a verification of the
major inputs applied in the latest valuation and a comparison, where applicable, with external sources of
data.
(i)
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current
classification.
An asset is current when: it is expected to be realised or intended to be sold or consumed in normal
operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within twelve
months after the reporting period; or the asset is cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets
are classified as non-current.
A liability is current when: it is expected to be settled in normal operating cycle; it is held primarily for the
purpose of trading; it is due to be settled within twelve months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
All other liabilities are classified as non-current.
(j)
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with banks, 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.
(k) Revenue recognition
The Group recognises revenue as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be
entitled in exchange for transferring goods or services to a customer. For each contract with a customer,
the Group: identifies the contract with a customer; identifies the performance obligations in the contract;
determines the transaction price which takes into account estimates of variable consideration and the time
value of money; allocates the transaction price to the separate performance obligations on the basis of the
relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue
when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer
of the goods or services promised.
50
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1.
Summary of Significant Accounting Policies (continued)
(k) Revenue recognition (continued)
Variable consideration within the transaction price, if any, reflects concessions provided to the customer
such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other
contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount'
method. The measurement of variable consideration is subject to a constraining principle whereby revenue
will only be recognised to the extent that it is highly probable that a significant reversal in the amount of
cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty
associated with the variable consideration is subsequently resolved. Amounts received that are subject to
the constraining principle are recognised as a refund liability.
Rendering of services
Revenue from a contract to provide services is recognised over time as the services are rendered based
on either a fixed price or an hourly rate.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
(l)
Goods and services tax
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of
GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is
recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables
and payables in the consolidated statement of financial position are shown inclusive of GST.
Cash flows are presented in the statement of cash flow on a gross basis, except for the GST component of
investing and financing activities, which are disclosed as operating cash flows.
(m)
Impairment
Financial Assets
The Group recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of the
loss allowance depends upon the Group's assessment at the end of each reporting period as to whether
the financial instrument's credit risk has increased significantly since initial recognition, based on
reasonable and supportable information that is available, without undue cost or effort to obtain.
51
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1.
Summary of Significant Accounting Policies (continued)
(m)
Impairment (continued)
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-
month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected
credit losses that is attributable to a default event that is possible within the next 12 months. Where a
financial asset has become credit impaired or where it is determined that credit risk has increased
significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of
expected credit loss recognised is measured on the basis of the probability weighted present value of
anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is
recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit
or loss.
Exploration and Evaluation Assets
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that
the carrying amount of the asset may exceed its recoverable amount at the reporting date.
Exploration and evaluation assets are tested for impairment in respect of cash generating units, which are
no larger than the area of interest to which the assets relate.
Non-Financial Assets Other Than Exploration and Evaluation Assets
The carrying amounts of the Group’s non-financial assets, are reviewed at each reporting date to determine
whether there is any indication of impairment. If any such indication exists then the asset’s recoverable
amount is estimated. For goodwill and intangible assets that have indefinite lives or that are not yet
available for use, the recoverable amount is estimated at each reporting date.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair
value less costs to sell. 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.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its
recoverable amount. Impairment losses are recognised in the income statement. Impairment losses
recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any
goodwill allocated to the units, then to reduce the carrying amount of the other assets in the unit on a pro
rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses
recognised in prior periods are assessed at each reporting date for any indications that the loss has
decreased or no longer exits. An impairment loss is reversed if there has been a change in the estimates
used to determine the recoverable amount. An impairment loss is reversed only to the extent that the
asset’s carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortisation, if no impairment loss has been recognised.
52
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1.
Summary of Significant Accounting Policies (continued)
(n)
Joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets, and obligations for the liabilities, relating to the arrangement. The Group has recognised
its share of jointly held assets, liabilities, revenues and expenses of joint operations. These have been
incorporated in the financial statements under the appropriate classifications.
(o)
Trade and other payables
Liabilities for trade creditors and other amounts are carried at cost which is the fair value of consideration
to be paid in the future for goods and services received, whether or not billed to the Group. 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.
(p) Share based payment transactions
The Group provides benefits to employees (including Directors) of the Group in the form of share-based
payment transactions, whereby employees render services in exchange for shares or rights over shares
(“equity-settled transaction”).
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 an independent external valuation using
Black-Scholes, an option valuation model that takes into account the exercise price, the term of the option,
the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the
expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting
conditions that do not determine whether the Group receives services that entitle the employees to receive
payment.
The cost of 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 Company, will ultimately vest. This opinion is formed based on the best
available information at reporting date. No adjustment is made for the likelihood of market performance
conditions being met as the effect of these conditions is included in the determination of fair value at grant
date.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is
conditional upon a market condition.
Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the
terms had not been modified. In addition, an expense is recognised for any increase in the value of the
transaction as a result of the modification, as measured at the date of modification.
53
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1.
Summary of Significant Accounting Policies (continued)
(p) Share based payment transactions (continued)
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and
any expense not yet recognised for the award is recognised immediately. However, if a new award is
substituted for the cancelled award and designated as a replacement award on the date that it is granted,
the cancelled and new award are treated as if they were a modification of the original award, as described
in the previous paragraph.
(q)
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using
the effective interest method, less any provision for impairment. Trade receivables are generally due for
settlement within 30 days.
Other receivables are recognised at amortised cost, less any provision for impairment.
(r)
Contributed equity
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares
or options, or for the acquisition of a business, are included in the cost of the acquisition as part of the
purchase consideration.
(s) Plant and equipment
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.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant
and equipment (excluding land) over their expected useful lives as follows:
Office equipment
Exploration equipment
2 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 recognised 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.
(t)
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave
expected to be 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.
54
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
1.
(t)
Summary of Significant Accounting Policies (continued)
Employee benefits (continued)
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the
reporting date are recognized in non-current liabilities, provided there is an unconditional right to defer
settlement of the liability. The liability is measured as the present value of expected future payments to be
made in respect of services provided by employees up to the reporting date using the projected unit credit
method. Consideration is given to expect future wage and salary levels, experience of employee departures
and periods of service. Expected future payments are discounted using market yields at the reporting date
on national corporate bonds with terms to maturity and currency that match, as closely as possible, the
estimated future cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are
incurred.
(u) Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit/loss attributable to the owners of Riedel
Resources 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.
(v) Comparative figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
(w) New accounting standards and interpretations adopted by the Group
The Group has considered the implications of new and amended Accounting Standards but determined
their application to the financial statements is neither relevant or not material.
55
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
2.
Revenue
Revenue from continuing operations
Interest received
Other income
Unrealised foreign exchange gain
3.
Expenses
Loss for the year includes the following expenses:
Superannuation – defined contribution
Impairment of exploration expenditure
Unrealised foreign exchange loss
4.
Income tax expense
Income tax expense/(benefit):
Current tax
Prior year under provision
Deferred tax
56
2023
$
6,525
-
6,525
2023
$
21,306
-
19,692
40,998
2023
$
-
-
-
-
2022
$
432
8,891
9,323
2022
$
13,000
93,631
-
106,631
2022
$
-
-
-
-
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
4.
Income tax expense (continued)
The prima facie income tax expense/(benefit) on
pre-tax accounting loss from operations reconciles
to the income tax expense/ (benefit) in the financial
statements as follows:
Prima facie income tax benefit on profit/(loss) at
30%. (2022: 30%)
Effect of lower foreign tax rates
Add:
Tax effect of:
Other non-allowable items
Share based payment
Impairment of exploration expenditure
Impairment of assets
2023
$
2022
$
(246,073)
(217,527)
773
1,510
17,249
12,863
-
-
10,454
-
28,089
2,294
Revenue losses not recognised
264,470
203,740
Provisions and accruals
Superannuation payable
Less:
Tax effect of:
Capital raising costs
Non-assessable income
Prepayments
Income tax expense/(benefit)
The applicable average weighted tax rates are as
follows:
2,299
328
2,100
-
297,982
246,677
(48,570)
(1,922)
(1,417)
(24,393)
(3,294)
(2,973)
(51,909)
(30,660)
-
0%
-
0%
The tax rate used in the above reconciliation is the corporate tax rate of 30% (2022: 30%) payable by Australian
corporate entities on taxable profits under Australian tax law. The full company tax rate of 30% applies to all
companies that are not eligible for the lower company tax rate.
57
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
4.
Income tax expense (continued)
The following deferred tax balances have not been
recognised:
Deferred Tax Assets:
At 30% (2022:30%)
Carry forward revenue losses
Capital raising cost
Provisions and accruals
2023
$
2022
$
2,431,576
2,170,969
129,092
7,773
56,778
6,000
2,568,441
2,233,747
The tax benefits of the above Deferred Tax Assets will only be obtained if:
(a) the Group derives future assessable income of a nature and of an amount sufficient to enable the
benefits to be utilised;
(b) the Group continues to comply with the conditions for deductibility imposed by law; and
(c) no changes in income tax legislation adversely affect the Company in utilising the benefits.
Deferred Tax Liabilities:
At 30% (2022:30%)
Prepayments
Plant and equipment
Exploration and evaluation expenditure
2023
$
2022
$
10,000
1,727
169,897
181,624
8,584
-
169,897
178,481
The above Deferred Tax Liabilities have not been recognised as they have given rise to the carry forward revenue
losses for which the Deferred Tax Asset has not been recognised.
5.
Auditors remuneration
Remuneration of the auditor of the Group for auditing
or reviewing the financial reports:
Auditors - Stantons
58
2023
$
39,200
39,200
2022
$
35,000
35,000
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
6.
Cash and cash equivalents
Cash on hand
Cash at bank
7.
Trade and other receivable
Prepayments
GST receivable
Refer to note 19 for further information on financial instruments
8.
Property, plant and equipment
Assets at cost
Accumulated depreciation
Carrying value at 30 June 2023
2023
$
-
2022
$
312
2,828,617
1,370,504
2,828,617
1,370,816
2023
$
33,335
24,433
57,768
2023
$
6,408
(653)
5,755
2022
$
28,612
8,317
36,929
2022
$
-
-
-
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and
the end of the current year, is as follows:
Computer equipment
Balance at 1 July 2022
Additions
Disposals
Depreciation expense
Balance at 30 June 2023
2023
$
-
6,408
-
(653)
5,755
2022
$
-
-
-
-
-
59
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
9.
Exploration and evaluation expenditure
Gross capitalised exploration and evaluation
expenditure
Less: Provision for impairment
Net amount
Exploration and evaluation expenditure reconciliation
Notes
2023
$
2022
$
6,982,394
4,421,610
(214,486)
(214,486)
6,767,908
4,207,124
Opening balance
4,207,124
2,466,911
Exploration and evaluation activities funded on
behalf of Flagstaff Minerals (US) Inc as earn-in
contributions
Other consideration paid in accordance with the
terms of earn-in agreement
Impairment
(i)
2,060,784
1,833,844
(ii)
500,000
-
-
(93,631)
Closing balance
6,767,908
4,207,124
(i)
Kingman Project Earn-In
Flagstaff USA has the sole and exclusive right to acquire a 100% interest in 70 mining claims (which form part of
the Kingman Project) (Kingman Option Claims) via a binding option agreement with IAM Mining LLC (a Limited
Liability Company) (IAM Mining) (Flagstaff Option Agreement).
On 22 October 2020 Riedel entered into a binding agreement with Flagstaff Minerals Limited (“Flagstaff”) to
acquire up to 80% equity interest in Flagstaff Minerals (USA) Inc (‘Flagstaff USA’) (a wholly owned subsidiary of
Flagstaff) by meeting three earn in stages (‘Term Sheet’), or (‘Transaction’). As the Transaction represented a
change of scale of activities under the ASX Listing Rules shareholder approval was required and subsequently
obtained on 30 November 2020. (Refer ASX Announcement made on 11 December 2020).
On 25 January 2023, pursuant to the Flagstaff Option Agreement, Riedel met the final USD400,000 Option
Payment required to be made to IAM Mining on or before 1 February 2023 giving Flagstaff USA the right to obtain
100% legal and beneficial title to the 70 mining claims.
On 28 March 2023, Riedel announced that it had satisfied the A$5 million exploration expenditure requirement to
earn a 51% interest in Flagstaff Minerals (USA) Inc (the owner of the Kingman Project), subject to shareholders
approving the issue of 100 million shares to Flagstaff Minerals Limited the Company announced it had
successfully negotiated a variation to the Kingman Project earn-in arrangement. Riedel previously had the right
to earn an additional 19% interest (for a total interest of 70%) by spending a further $5 million on exploration and,
subject to earning the 70% interest, the right to acquire an additional 10% interest by paying A$3 million in cash
(for a total interest of 80% in Flagstaff Minerals (USA) Inc and, in turn, the Kingman Project).
60
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
9.
Exploration and evaluation expenditure (continued)
Following the agreed variation, Riedel now has the right to acquire a further 39% interest (for a total interest of
90%) by spending $5 million on exploration (instead of a further 19% interest), and the $3 million cash payment
has been replaced with a royalty on gold produced at the Kingman Project, up to a maximum of $3 million. (Refer
to the Company’s announcement dated 23 October 2020 for further details of the earn-in).
As at 30 June 2023 the Company has contributed $5,371,584 (2022: $3,310,800).
(ii) Other Consideration
Stage 2 Consideration Shares (in accordance with the terms of earn-in agreement)
On 28 June 2023 shareholders approved the issue of the 100,000,000 fully paid ordinary shares (Stage 2
Consideration Shares’) to Flagstaff Minerals Limited (‘Flagstaff’) which on issue will complete the initial earn-in to
obtain a 51% interest in Flagstaff Minerals (USA) Inc (the owner of the Kingman Project), resulting in control
having been transferred to it.
The Stage 2 Consideration Shares were subsequently issued at an issue price of $0.005 on 6 July 2023.
10. Trade and other payables
Trade creditors
Accruals and other payables
Flagstaff payable
Notes
2023
$
171,614
102,044
(i)
500,000
773,658
2022
$
34,219
35,333
-
69,552
(i)
As disclosed at Note 9 (ii) this amount represents the Stage 2 Consideration Shares approved by
shareholders for issue to Flagstaff to complete the initial earn-in to obtain a 51% interest in Flagstaff
Minerals (USA) Inc (the owner of the Kingman Project).
Trade creditors are unsecured and usually paid within 30 days of recognition.
Refer to note 19 for further information on financial instruments.
61
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
11. Contributed equity
(a)
Issued capital
Ordinary shares (fully paid)
Less: Cost of issue
Notes
2023
Shares
1,959,407,062
2023
$
29,894,124
(1,684,899)
Closing balance at 30 June 2023
(e)
1,959,407,062
28,209,225
Ordinary shares (fully paid)
Less: Cost of issue
Notes
2022
Shares
1,071,707,062
2022
$
25,455,624
(1,150,959)
Closing balance at 30 June 2022
(e)
1,071,707,062
24,304,665
(b) Ordinary shares
Ordinary shares participate in dividends and the proceeds on winding up of the Company in proportion to the
number of shares held and in proportion to the amount paid up on the shares held. At shareholders meetings,
each ordinary share is entitled to one vote in proportion to the paid-up amount of the share when a poll is called,
otherwise each shareholder has one vote on a show of hands.
(c) Options
Information relating to options including details of options issued, exercised and lapsed during the financial year
and options outstanding at the end of the financial year, is set out in note 15.
(d) Capital management
Management controls the capital of the Group by monitoring performance against budget to provide the shareholders
with adequate returns and ensure that the Group can fund its operations and continue as a going concern.
The Group’s liabilities and capital includes ordinary share capital, options and financial liabilities, supported by
financial assets.
Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital
structure in response to changes in these risks and in the market. These responses include the management of debt
levels, distributions to shareholders and share issues.
There have been no changes in the strategy by management to control the capital of the Group since the prior year.
62
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
11.
Contributed equity (continued)
(e) Movements in issued capital
Opening balance 1 July 2022
Placement
Placement
Placement
Date
Shares
Issue Price
Total
#
1,071,707,062
$
$
24,304,665
7 Oct 22
260,000,000
$0.005
1,300,000
6 Dec 22
40,000,000
$0.005
200,000
8 May 23
280,000,000
$0.005
1,400,000
Share Purchase Plan (SPP)
20 Jun 23
87,700,000
$0.005
438,500
Placement
30 Jun 23
220,000,000
$0.005
1,100,000
Less: Transaction costs
Closing balance 30 June 2023
1,959,407,062
(533,940)
28,209,225
Opening balance 1 July 2021
962,707,062
23,241,949
Placement
Placement
Placement
Less: Transaction costs
1 Sep 21
4,000,000
28 Feb 22
71,000,000
20 Apr 22
34,000,000
$0.015
$0.010
$0.010
60,000
710,000
340,000
(47,284)
Closing balance 30 June 2022
1,071,707,062
24,304,665
Placements completed during the year
On 7 October 2022, the Company issued 260,000,000 fully paid ordinary shares at an issue price of $0.005
per share to sophisticated and professional investors to raise $1,300,000 prior to issue costs.
On 6 December 2022, following shareholder approval having been received at Annual General Meeting
held on 23 November 2022, the Company issued 40,000,000 fully paid ordinary shares at an issue price of
$0.005 per share to participating directors or their nominee to raise $200,000 prior to issue costs.
On 8 May 2023, the Company issued 280,000,000 fully paid ordinary shares at an issue price of $0.005
per share to raise $1,400,000 prior to issue costs;
On 20 June 2023, the Company completed the SPP and issued 87,700,000 fully paid ordinary shares at
an issue price of $0.005 per share to eligible shareholders to raise $438,500 prior to issue costs; and
On 30 June 2023, following shareholder approval having been received at the General Meeting held on 28
June 2023, the Company issued 220,000,000 fully paid at an issue price of $0.005 per share to
sophisticated and professional investors to raise $1,100,000 prior to issue costs.
63
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
12. Share based payment reserve
Opening balance
Unlisted options issued 1 2
Unlisted options to be issued 3
Notes
2023
$
2022
$
2,809,800
2,809,800
15(a)(i)
100,812
136,433
-
-
-
-
Expiry of unlisted options not exercised 1
15(a)(ii)
(34,800)
Performance rights issued 1, 4
15(b)
15,334
Closing balance
3,027,579
2,809,800
1
2
3
4
Refers to fair value of options issued in accordance with AASB 2 Share Based Payment.
The unlisted options reserve records items recognised on valuation of director, vendor and consultant share
options. Information relating to options issued, exercised and lapsed during the financial year and options
outstanding at the end of the financial year is set out in note 15.
Included in this amount is $73,268 being the fair value of 13,300,000 unlisted lead manager options issued
on 6 December 2022 to Oracle Group Ltd (or its nominee) as a part of their consideration for providing lead
manager service for the placements completed during October and December 2022, which has been
accounted for as a share issue expense and $27,544 being 5,000,000 unlited diretors options issued on 6
December 2022, which has been accounted for as a share based payment expense.
On 28 June 2023, the Company received shareholder approval to issue 40,000,000 unlisted lead manager
options to the lead manager Canaccord Genuity (Australia) Limited (or its nominee) as a part of their
consideration for providing lead manager service for the placements completed during May and June 2023,
which has been accounted for as a share issue expense.
On 28 April 2023, the Company issued 30,000,000 performance rights to David Groombridge of which
$15,334 has been expensed and accounted for as a share based payment expense.
13
Foreign currency translation reserve
Opening balance
Foreign currency (loss)/ gain
Closing balance
2023
$
(5,146)
4,178
(968)
2022
$
3,327
(8,473)
(5,146)
The foreign currency translation reserve is used to record exchange differences arising from the translation of the
financial statements of foreign subsidiaries.
64
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
14
Accumulated losses
Accumulated losses at the beginning of the year
(21,564,002)
(20,838,911)
Net loss for the year
Expiry of unlisted options not exercised
(820,244)
34,800
(725,091)
-
Accumulated losses at the end of the year
(22,349,446)
(21,564,002)
2023
$
2022
$
15
Share based payments
(a) Share options
Grant
Date
Expiry
Date
Exercise
Price
Value
Option
Expensed
/(Lapsed)
During
Year
Balance at 01-
07-2022
Granted
Exer-
cised
Lapsed
Balance at
30-06-2023
Vested and
exer-
cisable
(i) 2023 unlisted option details
14-12-20
14-12-23
$0.0125
-
150,000,000
-
06-12-22
06-12-25
$0.0100
100,812
-
18,300,000
Total
100,812
150,000,000
18,300,000
Weighted average exercise price
1.25 cents
1.00 cent
-
-
-
-
Grant
Date
Expiry
Date
Exercise
Price
Value
Option
Expensed
/(Lapsed)
During
Year
Balance at 01-
07-2022
Granted
Exer-
cised
Lapsed
-
-
-
-
150,000,000
150,000,000
18,300,000
18,300,000
168,300,000
168,300,000
1.22 cents
Balance at
30-06-2023
Vested and
exer-
cisable
(ii) 2022 unlisted option details
29-11-18
23-11-21
$0.1100
(34,800)
10,000,000
14-12-20
14-12-23
$0.0125
-
150,000,000
Total
(34,800)
160,000,000
Weighted average exercise price
1.86 cents
-
-
-
-
-
-
-
-
(10,000,000)
-
-
-
150,000,000
150,000,000
(10,000,000)
150,000,000
150,000,000
11 cents
1.25 cents
The weighted average remaining contractual life of options at the end of the financial year was 2.1 years (2022:
1.4 years).
Fair value of unlisted options granted
2023
The value of unlisted options granted was calculated at the market value prevailing at the date on which the
options are authorised for issue.
No listed options were issued during the year.
Grant date
06-12-22
Underlying
share price
$0.009
Exercise price
$0.0100
Risk free
interest rate
3.23%
Share price
volatility
100%
Expiry Date
06-12-25
Value per
option
$0.0055
2022
There were no options issued during the 2022 year.
65
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
15
Share based payments (continued)
(b) Performance rights
2023
The following table illustrates performance rights movement during the year ended 30 June 2023.
PR ID #
Grant
Date
Expiry
Date
Relevant
Measure
-ment
Date
2023 performance rights detail
Balance at
01-07-2022
Granted
Balance at
30-06-23
Fair Value
at Grant
date
Value of
PRs
Expensed
During the
Year
28-04-23
28-04-28
01-03-24
28-04-23
28-04-28
01-03-24
28-04-23
28-04-28
01-03-24
28-04-23
28-04-28
01-03-24
28-04-23
28-04-28
30-06-26
28-04-23
28-04-28
30-06-26
28-04-23
28-04-28
30-06-26
28-04-23
28-04-28
30-06-26
PRA
PRB
PRC
PRD
PRE
PRF
PRG
PRH
Total
2022
-
-
-
-
-
-
-
-
-
2,500,000
2,500,000
15,000
517.24
2,500,000
2,500,000
15,000
517.24
2,500,000
2,500,000
15,000
517.24
2,500,000
2,500,000
15,000
517.24
5,000,000
5,000,000
30,000
1,034.48
5,000,000
5,000,000
30,000
1,034.48
5,000,000
5,000,000
30,000
1,034.48
5,000,000
5,000,000
30,000
1,034.48
30,000,000
30,000,000 180,000,000
6,206.90
There were no performance rights issued or on issued during the year ended 30 June 2022.
Fair value of performance rights granted
2023
The value of performance rights granted was calculated at the market value prevailing at the date on which the
options are authorised for issue.
Grant date
Underlying
share price
Share price
volatility
Expiry date
Relevant
measurement
dates
Value per
performance
right
2023 performance rights detail
28-04-23
$0.006
100%
28-04-28
28-04-28
$0.006
Performance rights are issued for nil consideration and the terms of the performance rights is determined by the
Board at its absolute discretion. Performance rights are subject to lapsing if performance conditions are not met
by relevant measurement date or expiry date as specified or if employment is terminated. The fair value of the
performance rights has been calculated at the grant date and is allocated to each reporting period evenly over
the period from grant date to vesting date. The value disclosed is the portion of fair value of the rights allocated
to this reporting period.
2022
There were no performance rights issued during the 2022 year.
66
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
16
Notes to the consolidated statement of cash flows
Reconciliation of cash flow from operating activities
to (loss for the year)
Loss for the year
Add: non-cash items:
Impairment of exploration expenditure
Unrealised foreign currency loss/ (gain)
Share based payments
VAT receivable written-off
Changes in assets and liabilities:
(Increase) in trade and other receivables
(Decrease) in trade and other payables
2023
$
2022
$
(820,244)
(725,091)
-
19,692
42,878
-
(20,839)
73,614
93,631
(8,891)
-
9,070
(5,414)
(394)
Net used in Operating Activities
(704,899)
(637,089)
Non-cash investing and financing activities
There were no other non-cash investing and financing activities, except the options and performance rights issued
detailed in note 15.
17
Basic and diluted loss per share
Basic and diluted loss per share
Loss from operations attributable to ordinary equity
holders of Riedel Resources Limited used to calculate
basic loss per share
Weighted average number of ordinary shares used as
the denominator in calculating basic earnings per
share
2023
Cents
(0.06)
2022
Cents
(0.07)
(820,244)
(725,091)
1,323,698,843
996,307,062
The Company has not disclosed diluted earnings per share as the effect of potential ordinary shares is anti-dilutive.
67
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
18
Segment reporting
The Company has identified its operating segments based on the internal reports that are reviewed and used by
the chief operating decision maker to make decisions about resources to be allocated to the segments and assess
their performance.
Operating segments are identified by Management based on the mineral resource and exploration activities in
Australia, United States and Spain. Discrete financial information about each project is reported to the chief
operating decision maker on a regular basis.
The reportable segments are based on aggregated operating segments determined by the similarity of the
economic characteristics, the nature of the activities and the regulatory environment in which those segments
operate.
2023
Revenue
Australia
$
6,525
United
States
$
Net loss before tax
(805,081)
Spain
Unallocated
Total
$
$
$
-
-
6,525
(15,454)
291
(820,244)
-
-
3,456,351
6,201,584
2,113
-
9,660,048
Reportable segment
assets
Reportable segment
liabilities
2022
Revenue
772,993
Australia
$
432
United
States
$
-
-
-
-
-
772,993
Spain
Unallocated
Total
$
$
$
-
-
432
(21,029)
359
(725,091)
Net (loss)/ profit before
tax
(704,421)
Reportable segment
assets
Reportable segment
liabilities
1,961,370
3,640,799
12,700
-
5,614,869
69,552
-
-
-
69,552
68
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
19
Financial instruments
The Group’s principal financial instruments comprise cash and cash equivalents. The main purpose of the
financial instruments is to earn the maximum amount of interest at a low risk to the Group. The Group also has
other financial instruments such as trade and other debtors and trade and other creditors which arise directly from
its operations. For the period under review, it has been the Group’s policy not to trade in financial instruments
The main risks arising from the Group’s financial instruments are interest rate risk, foreign exchange risk. The
board reviews and agrees policies for managing each of these risks and they are summarised below:
(i)
Interest Rate Risk
The Group is exposed to movements in market interest rates on cash and cash equivalents. The policy is to
monitor the interest rate yield curve out to 180 days to ensure a balance is maintained between the liquidity of
cash assets and the interest rate return. The Group does not have any other short or long term debt, and therefore
this risk is minimal.
(iii)
Foreign exchange risk
The Group undertakes certain transactions in foreign currencies, hence exposure to exchange rate fluctuations
arise. Payments made by the Group are made at the prevailing exchange rate at the time of payment. Loans
advanced from the ultimate holding Company to subsidiary companies are denominated in Australian dollars.
The Group does not utilise derivative instruments to hedge the exchange rate risk.
(iv) Credit Risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to
the Group. The Group has adopted the policy of only dealing with credit worthy counterparties and obtaining
sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from
defaults.
The Group does not have any significant credit risk exposure to any single counterparty or any Group of
counterparties having similar characteristics. The carrying amount of financial assets recorded in the financial
statements, net of any provisions for losses, represents the Group’s maximum exposure to credit risk.
(a) Exposure to credit risk
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s
maximum exposure to credit risk at the reporting date was:
Financial assets
Cash and cash equivalents
Other receivables
Carrying
Amount
2023
$
Carrying
Amount
2022
$
2,828,617
1,370,816
24,433
8,317
2,853,050
1,379,133
(b) Exposure to credit risk
None of the Group’s other receivables are past due hence no impairments were provided for.
69
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
19
Financial instruments (continued)
(c)
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group's
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet
its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Group's reputation.
The Group manages liquidity risk by maintaining adequate reserves by continuously monitoring forecast and
actual cash flows. The Group does not have any external borrowings.
The Company does anticipate a need to raise additional capital in the next 12 months to meet forecasted
operational and exploration activities.
The contractual maturities of financial liabilities, including estimated interest payments and excluding the impact
of netting agreements are shown (e) below.
(d) Market risks
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity
prices will affect the Group’s income or the value of its holdings of financial instruments.
The objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return.
(e)
Interest rate risks
The Group is exposed to interest rate risk (primarily on its cash and cash equivalents), which is the risk that a
financial instrument's value will fluctuate as a result of changes in the market interest rates on interest-bearing
financial instruments. The Group does not use derivatives to mitigate these exposures.
The Group adopts a policy of ensuring that as far as possible it maintains excess cash and cash equivalents at
interest rates maturing over 30-180 day rolling periods.
Interest Rate Risk Exposure Analysis
2023
Weighted
average
effective
interest
rate
%
0.65%
Floating
interest
rate
$
1,273,137
0.00%
-
Financial assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
1,273,137
Financial liabilities
Trade and other payables
0.0%
Total financial liabilities
-
-
70
Within 1
year
$
Over 1
year
$
Non
interest
bearing
$
- 1,555,480
Total
$
2,828,617
-
-
-
-
-
-
24,433
24,433
- 1,579,913
2,853,050
-
-
772,993
772,993
772,993
772,993
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
19. Financial instruments (continued)
(e)
Interest r ate risks (continued)
Interest Rate Risk Exposure Analysis (continued)
2022
Weighted
average
effective
interest
rate
%
0.03%
Floating
interest
rate
$
1,037,591
0.00%
-
Financial assets
Cash and cash equivalents
Trade and other
receivables
Total financial assets
1,037,591
Financial liabilities
Trade and other payables
0.00%
Total financial liabilities
-
-
Within 1
year
$
Over 1
year
$
-
-
-
-
-
-
-
-
-
-
Non
interest
bearing
$
333,225
Total
$
1,370,816
8,317
8,317
341,542
1,379,133
69,552
69,552
69,552
69,552
(f)
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased (decreased) profit or loss
by the amounts shown below. The analysis is performed on the same basis for 2022.
2023
$
2022
$
12,731
10,375
(12,731)
(10,375)
12,731
10,375
(12,731)
(10,375)
Change in profit
Increase in interest rate by 1%
(100 basis points)
Decrease in interest rate by 1%
(100 basis points)
Change in equity
Increase in interest rate by 1%
(100 basis points)
Decrease in interest rate by 1%
(100 basis points)
71
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
20. Commitments
On 28 March 2023, Riedel announced that it had satisfied the A$5 million exploration expenditure requirement to
earn a 51% interest in Flagstaff Minerals (USA) Inc (the owner of the Kingman Project), subject to shareholders
approving the issue of 100 million shares to Flagstaff Minerals Limited the Company announced it had
successfully negotiated a variation to the Kingman Project earn-in arrangement. Riedel previously had the right
to earn an additional 19% interest (for a total interest of 70%) by spending a further $5 million on exploration and,
subject to earning the 70% interest, the right to acquire an additional 10% interest by paying A$3 million in cash
(for a total interest of 80% in Flagstaff Minerals (USA) Inc and, in turn, the Kingman Project).
The following represents the Company’s commitments for stage 1 of transaction, refer additional information at
note 9.
2023
$
2022
$
Within one year
628,416
1,721,392
After one year but not more than five years
2,000,000
114,668
More than five years
-
-
2,628,416
1,836,060
The above commitments relate to planned expenditure to meet the Stage 2 requirements of the Flagstaff
Transaction, refer note 9. Expenditure required to complete Stage 2 of the Transaction is discretionary and will
be dependent upon the outcome of current drilling.
Once the next phase of drilling has been completed, the results will be analysed and a decision on further works
will be undertaken.
21.
Interests in controlled entities
The consolidated financial statements include the financial statements of Riedel Resources Limited and the
subsidiaries listed in the following table:
Name
Country of
incorporation
Equity interest (%)
AuDAX Minerals Pty Ltd
Australia
Riedel Resources (Spain) Pty Ltd
Australia
2023
100
100
2022
100
100
Riedel Resources Limited is the ultimate Australian parent entity and ultimate parent of the Group.
72
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
22. Related party disclosure
Terms and conditions of transactions with related parties
Sales to and purchases from related parties are made in arm's length transactions both at normal market prices
and on normal commercial terms.
The following transactions occurred with related parties during the financial year on normal commercial terms and
conditions.
Mooney & Partners, a company associated with Mr Mooney, has an interest in providing the rental of office
space to the Company during the year ended 30 June 2023 totalling $6,000 (2022: $6,000).
$1,000 was owing to Mooney & Partners at 30 June 2023 (2022: Nil).
Cerbat Hills Pty Ltd, a company which Mr Michael Bohm is a director, and has an interest in providing
technical consulting services to the Company during the year ended 30 June 2023 totalling $138,000 (2022:
$96,000).
$28,600 was owing to Cerbat Hills Pty Ltd at 30 June 2023 (2022: $8,000).
Blue Leaf Corporate Pty Ltd, a company that holds a services contract to provide accounting, financial and
company secretarial services. Ms Susan Field currently holds the position as Company Secretary, with fees
relating to this during the year ended 30 Jue 2023 totalled $27,000 (2022: $27,000).
$2,250 was owing to Blue Leaf Corporate Pty Ltd that relate to these service at 30 June 2023 (2022: $2,250).
23. Post Balance Date Events
Commencement of Stage 2 Earn-In Kingman Project
On 6 July 2023, following shareholder approval having been received at the General Meeting held on 28 June
2023, the Company issued 100,000,000 fully paid ordinary shares (Stage 2 Consideration Shares) to Flagstaff
Minerals Limited at a deemed issue price of $0.005 per share. On the issue of the Stage 2 Consideration shares
control has been transferred with Riedel to receive shares in Flagstaff Minerals (USA) Inc. to take them to 51% to
Riedel and has triggered the commencement of Stage 2 and change of control.
Issue of Securities
On 24 July 2023, following shareholder approval having been received at the General Meeting held on 28 June
2023, the Company issued a total of 236,000,028 unlisted options to participants of Placement, Share Purchase
Plan and Lead manager Options offered under Prospectus date 10 July 2023, with an exercise price of $0.01 per
share and expiring on 24 July 2025.
There have not been any other events that have arisen between 30 June 2023 and the date of this report or any
other item, transaction or event of a material and unusual nature likely, in the opinion of the directors, to materially
affect the operations of the Group, the results of those operations or the state of affairs of the Group, in subsequent
financial years.
24. Contingent assets and liabilities
The Company is not aware of any contingent assets or liabilities.
73
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
25. Dividends
No dividends were paid or declared during the year.
26. Fair value measurement
The carrying amounts of cash and cash equivalents, trade and other receivables and trade and other payables
are assumed to be approximately the fair value due to their short-term nature.
27. Parent entity disclosure
Financial Position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
2023
$
2022
$
2,884,272
6,207,339
1,395,008
3,640,799
9,091,611
5,035,807
772,199
772,199
69,446
69,446
Net assets
8,319,412
4,966,361
Equity
Contributed equity
Reserves
Accumulated losses
Total equity
Financial Performance
Loss for the year
Total comprehensive loss
28,209,225
24,304,665
3,027,579
2,809,800
(22,917,392)
(22,148,104)
8,319,412
4,966,361
2023
$
(769,288)
2022
$
(446,710)
(769,288)
(446,710)
74
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2023
27. Parent entity disclosure (continued)
Commitments
For details see note 20.
Contingent liabilities / guarantees
The Company is not aware of any contingent liabilities or guarantees.
75
Directors’ Declaration
The directors of the Company declare that:
1.
The attached consolidated financial statements and notes are in accordance with the Corporations Act 2001:
(a)
(b)
(c)
comply with Australian Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements;
give a true and fair view of the Group’s financial position as at 30 June 2023 and of its performance
for the year ended on that date; and
comply with International Financial Reporting Standards as issued by the International Accounting
tandards Board as described in note 1 to the consolidated financial statements.
2.
In the directors’ opinion there are reasonable grounds to believe that the Company and the Group will be
able to pay its debts as and when they become due and payable.
3.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors.
Michael Bohm
Non-Executive Chairman
Date: 11 September 2023
76
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
RIEDEL RESOURCES LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Riedel Resources Limited (“the Company”) and its subsidiaries
(collectively, the “Group”), which comprises the consolidated statement of financial position as at 30 June 2023,
the consolidated statement of 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:
(i)
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
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Company in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards
Board's APES 110: Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report of the current period. 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.
Liability limited by a scheme approved under Professional Standards Legislation
Stantons Is a member of the Russell
Bedford International network of firms
Key Audit Matters
How the matters were addressed in the audit
Carrying Value of Exploration and Evaluation
Assets
As at 30 June 2023, capitalised exploration and
evaluation expenditure amounted to $6,767,908
(refer to Note 9).
The carrying value of the exploration and evaluation
expenditure is a key audit matter due to:
Inter alia, our audit procedures included the
following:
i. Assessing the management’s determination
of its areas of interest to ensure consistency
with the definition in AASB 6;
•
•
•
the significance of the total balance (70% of
total assets);
ii. Assessing the Group’s accounting policy for
compliance with AASB 6;
the level of judgment required in evaluating
management’s
the
requirements of AASB 6 Exploration for and
Evaluation of Mineral Resources; and
application
of
the greater level of audit effort to evaluate the
Group’s application of the requirement of
AASB 6 and assessment of impairment
indicators which
involved management
judgment.
iii. Agreeing, on a sample basis, the capitalised
exploration and evaluation expenditure
to supporting
the year
incurred during
documentation and assessing that these
expenditures incurred in accordance with the
Group’s
the
requirements of AASB 6;
accounting
policy
and
iv. Obtaining evidence that the Group has valid
rights to explore in the areas represented by
the capitalised exploration and evaluation
expenditure;
v. Evaluating that there had been no indicators
of impairment during the current period with
reference to the requirements of AASB6; and
vi. Assessing
the appropriateness of
the
disclosures in Note 9 to the consolidated
financial statements.
Measurement of share-based payments
For the financial year ended 30 June 2023, a share-
based payment expense
totalling $42,878 was
recognised by the Group (refer to Note 12).
The Group awarded share-based payments in the
form of options and performance rights. The awards
vest subject to the achievement of certain vesting
conditions.
Measurement of share-based payments was a key
audit matter due to the complex and judgmental
estimates used in determining the fair value of the
share-based payments.
Inter alia, our procedures included the following:
i. Reviewing the relevant agreements to obtain
an understanding of the contractual nature
and terms and conditions of the share-based
payment arrangements;
ii. Assessing the assumptions used in the
Group’s valuation of share options being the
share price of the underlying equity, interest
rate, volatility, dividend yield, time to maturity
(expected life) and grant date;
iii. Assessing the allocation of the share-based
payment expense over the relevant vesting
period; and
iv. Assessing
the appropriateness of
the
disclosures in Note 12 to the consolidated
financial statements.
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 opinion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the 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.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial report.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of material
misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity's internal control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report.
We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause
the Group to cease to continue as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in Internal control that we identify during our
audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements.
We also provide the Directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore key audit matters. We describe these
matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 23 to 33 of the directors’ report for the year ended
30 June 2023.
In our opinion, the Remuneration Report of Riedel Resources 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.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Martin Michalik
Director
West Perth, Western Australia
11 September 2023
Additional shareholder information
Corporate Governance Statement
In accordance with ASX Listing Rule 4.10.3 the company’s Corporate Governance Statement can be found on
the company’s website, refer to https://www.riedelresources.com.au/corporate/corporate-governance.
Shareholding
The distribution of members and their holdings of equity securities in the holding company as at 4 September
2023 were as follows:
Number Held as at 4 September 2023
Class of Equity Securities
Fully Paid Ordinary Shares
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and above
40
5
36
362
610
1,053
Substantial Shareholding
The names of the substantial shareholders listed in the company’s register as at 4 September 2023:
Shareholder
Percentage
Number
FLAGSTAFF MINERALS LIMITED
SOUTHERN CROSS CAPITAL PTY LTD
Voting Rights
9.54
5.19
196,500,000
106,842,424
In accordance with the holding company's Constitution, on a show of hands every member present in person or
by proxy or attorney or duly authorised representative has one vote. On a poll, every member present in person
or by proxy or attorney or duly authorised representative has one vote for every fully paid ordinary share held.
And Option holders are not entitled to vote.
Options
Exercise price
Expiry date
Number of
options
Number of
holders
Unlisted options
$0.0125
14/12/2023
150,000,000
Unlisted options
$0.0100
06/12/2025
18,300,000
Unlisted options
$0.0100
24/07/2025
235,900,028
9
2
120
81
Additional shareholder information
Options (continued)
Number Held as at 4 September 2023
Unlisted Options
Class of Equity Securities
Percentage of issued options
1- 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and above
Performance Rights
-
-
-
10
119
129
-
-
-
7.75
92.25
100.00
Class
Expiry date
No Rights
Number of holders
PRA
PRB
PRC
PRD
PRE
PRF
PRG
PRH
28/04/2028
2,500,000
28/04/2028
2,500,000
28/04/2028
2,500,000
28/04/2028
2,500,000
28/04/2028
5,000,000
28/04/2028
5,000,000
28/04/2028
5,000,000
28/04/2028
5,000,000
1
1
1
1
1
1
1
1
Number Held as at 4 September 2023
Unlisted Options
% of issued performance rights
Class of Equity Securities
1- 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and above
-
-
-
-
1
1
-
-
-
-
100.00
100.00
82
% Held
of
Issued
Ordinary
Capital
9.54
5.19
4.18
3.68
3.33
2.81
2.72
2.67
2.45
2.33
2.21
2.15
1.99
1.38
1.26
1.25
1.19
1.17
1.07
0.97
0.97
0.97
Additional shareholder information
Twenty Largest Shareholders
Shareholder
FLAGSTAFF MINERALS LIMITED
SOUTHERN CROSS CAPITAL PTY LTD
HARDY ROAD INVESTMENTS PTY LTD
SATORI INTERNATIONAL PTY LTD
FLOURISH SUPER PTY LTD
Number
196,500,000
106,842,424
86,000,000
75,838,479
68,546,115
BNP PARIBAS NOMINEES PTY LTD
57,826,772
MR JAMES WALLACE HOPE
SKIFFINGTON SUPER PTY LTD
TAURUS CAPITAL GROUP PTY LTD
MR GAVIN JEREMY DUNHILL
JAWAF ENTERPRISES PTY LTD
FLATHEAD DEVELOPMENTS PTY LTD
QUINLYNTON PTY LTD
CITICORP NOMINEES PTY LTD
STYLEPOINT INVESTMENTS PTY LTD
ALMESH PTY LTD
CYPRINE PTY LTD
56,000,000
55,000,000
50,500,000
48,000,000
45,500,000
44,227,268
41,000,000
28,412,884
26,000,000
25,714,607
24,500,000
CLJML INVESTMENTS PTY LTD
24,000,000
WAVELL BROCKMAN PTY LTD
BACK PADDOCK MANAGEMENT PTY LTD
ELEVEN O'CLOCK PTY LTD
NORTHERN STAR CORPORATE PTY LTD
Totals: Top 22 holders of Ordinary Fully Paid Shares
Total remaining holders balance
Unmarketable Parcels
22,000,000
20,000,000
20,000,000
20,000,000
1,142,408,549
916,998,513
55.47
44.53
There were 338 holders with less than a marketable parcel based on closing price of $0.0065.
Restricted Securities
There were no restricted securities.
83
Additional shareholder information
Company Secretary
Susan Field
On-Market Buy Back
The Company has not initiated an on-market buy back.
84
Tenement Listing
SCHEDULE OF MINING TENEMENTS AS AT 4 September 2023
Area of Interest
Tenement reference
Nature of interest
Interest
Australia
Marymia
Marymia
West Yandal
Porphyry
E52/2394
E52/2395
M36/615
M31/157
Direct
Direct
Royalty
Royalty
16%
16%
0%
0%
MINERAL RESOURCE STATEMENT
At 30 June 2023, the Company does not have any mineral resource.
85