ANNUAL REPORT 2022
RIMFIRE PACIFIC MINING LIMITED
ABN: 59 006 911 744
/ Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders Chairman’s Report
Operations Report
Project Overview
Directors’ Report
Information on Directors
Remuneration Report
Directors’ Report (Continued)
Auditor’s Independence Declaration
Financial Statements
Consolidated Statement of Profit and Loss and Other
Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
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Land Tenure - Schedule of Exploration Licences and Mining Licences
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Additional Information for Publicly Listed Companies
Corporate Directory
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Corporate Governance Statement
The Company’s 2022 Corporate Governance Statement has been released to ASX
on 30 September 2022 and is available on the Company’s website www.rimfire.com.au.
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
Chairman’s Report
Dear Fellow Shareholders,
I am pleased to report that Rimfire Pacific Mining Limited (Rimfire or “RIM” or “Company”) has had a successful
year with the continued advancement of our Critical Minerals prospective projects that are located within the world-
renowned Lachlan Orogen and Broken Hill Districts of New South Wales, Australia.
Underpinned by a highly experienced technical team the Company is focused on making economic discoveries of
nickel, cobalt, scandium, platinum, palladium (PGEs) and copper (“Critical Minerals”), throughout its project portfolio.
In addition to exploring its wholly owned Projects; Valley, Cowal and Broken Hill, the Company its Exploration Partner,
Golden Plains Resources Pty. Ltd. (GPR) is also exploring the Fifield and Avondale Projects. Rimfire and GPR have
established a solid professional working relationship and we appreciate their ongoing support.
Rimfire was successful in securing a grant of $185,675 for the Valley Project under the competitive, peer reviewed
New Frontiers Cooperative Drilling Grant program overseen by the Department of Regional NSW, Mining, Exploration
and Geoscience group. The grant will be applied to a deep hole drilling program that has been designed to test a high
priority copper-gold target.
At Fifield and Avondale, the Company’s focused Critical Minerals strategy has returned encouraging results from
initial drilling at Melrose and Currajong prospects with further strong news flow expected over the coming months.
During the year Non-Executive Director David Hutton was appointed as Managing Director and Chief Executive
Officer (MD and CEO) following the resignation of Craig Riley from the Company. We thank Craig for his contribution
to the Company and wish him the best for the future.
The next 12 months is shaping up to be an exciting time for the Company as we continue to focus on exploring
multiple Critical Minerals opportunities across our projects, under the leadership of a new management team and with
the support of Exploration Partner – GPR, on the Fifield and Avondale Projects.
I would like to thank my fellow Board Members, employees, contractors and service providers for their continued hard
work and professionalism over the past year. It has been a challenging and stressful year operationally as we emerge
from the Global Pandemic (Covid-19) and its resultant constraints on personnel and services.
Lastly, I would like to express our sincere thanks to our existing and new shareholders for their support of
the Company.
Ian McCubbing
Chairman of the Board
Dated: 30 September 2022
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 1
Operations Report
Health, Safety, Environment and Community
During the year the Company has actively updated and implemented improvements to its site-based Health, Safety and
Environment Management System.
Health
Environment
There were no Health Incidents recorded during the
past year.
The Company has implemented Covid-19 preventive
measures across all facets of field and office operations
to ensure employees and contractors are performing
duties in a manner consistent with directives from
relevant State and Federal authorities. The transition to
establishing robust platforms that allow the company
to continue operating normally whilst managing
compliance with Covid-19 directives from relevant
statutory authorities has been very successful.
Safety
There were no Safety Incidents recorded during the past
year with the Company achieving a Zero Incident Rate
for Minor Injuries, Medical Treatment Injuries and Lost
Time Injuries.
There were numerous drilling programs undertaken
during the year which were all completed safely.
There were no Environmental Incidents recorded during
the past year. The Company carries out all its field
programs under the auspices of NSW Government’s
Approved Prospecting Operations (APO) framework. The
Company also works closely with underlying landowners
to ensure the environmental impact of its activities is
minimised.
Community
The company acknowledges that our projects in NSW
are on the traditional lands of the Wiradjuri and Wilyakali
people and we pay our respect to their Elders past,
present and future.
All of Rimfire’s projects are located within regional New
South Wales and as much as possible, the Company
supports local communities by purchasing goods and
services from local suppliers and providing employment
opportunities local community members.
During the year, Rimfire assisted the Fifield community
with purchasing an Automated External Defibrillator
(AED) for the townsite.
2 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
Project Overview
Operations Report
Rimfire Pacific Mining Limited (ASX: RIM) is an ASX-
listed exploration company focused on exploring for
Critical Minerals within the Lachlan Orogen and Broken
Hill districts of NSW.
Rimfire currently has several projects in the Lachlan
Orogen, two of which are being funded by Rimfire’s
exploration partner - Golden Plains Resources (GPR):
Avondale Project (GPR earning up to 75%) & Fifield
Project (GPR earning up to 60%)
• Both projects are prospective for Critical Materials
(PGEs, nickel, cobalt, scandium & copper) - which
are essential for renewable energy, electrification, and
green technologies.
• The development ready Sunrise Energy Metals Nickel
– Cobalt - Scandium Project (ASX: SRL) is adjacent to
both projects.
• The Fifield Project hosts the historical Platina Lead
mine, the largest producer of platinum in Australia.
For more information on the JV’s see:
ASX Announcement: 4 May 2020 – Rimfire enters into
$4.5m Earn-in Agreement.
ASX Announcement: 25 June 2021 - RIM Secures $7.5m
Avondale Farm Out.
ASX Announcement: 30 June 2022 - Rimfire to receive
$1.5M cash to vary Fifield Project Earn In
ASX Announcement: 4 August 2022 – Exploration
Partner funding update.
Also located in the Lachlan Orogen are two copper
– gold prospective Projects that are 100% owned by
Rimfire:
• The Valley Project - located 5km west of Kincora
Copper’s Mordialloc porphyry copper-gold discovery
(ASX: KCC), and
• The Cowal Project - located to the east of Evolution’s
Lake Cowal Copper / Gold mine (ASX: EVN)
Rimfire also has the 100% - owned Broken Hill Cobalt
Project which is located immediately west of Broken
Hill and covers the interpreted along strike extension
to Cobalt Blue Holdings’ Railway Cobalt Deposit
(ASX: COB).
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 3 Project Overview
VALLEY PROJECT (RIM 100% - Copper / Gold)
The Project lies 3km north of the township of Trundle in
central New South Wales and is approximately 5km west
of Kincora Copper’s (ASX: KCC) Mordialloc porphyry
copper-gold discovery (Figure 1).
At the Valley Project, target generation activities were
undertaken following the receipt (during the March
2022 Quarter) of a grant of $185,675 through the
competitive, peer reviewed Department of Regional
NSW - New Frontiers Cooperative Drilling Grant. The
funds will be applied to a drill program that has been
designed to test a high priority copper-gold target that
lies within the central portion of the project.
Figure 1: Location Map of Rimfire’s Central NSW Exploration Licences
4 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders BROKEN HILL COBALT PROJECT (RIM 100% - Cobalt)
Rimfire’s Broken Hill Cobalt Project lies immediately
west of Broken Hill in western New South Wales
(Figure 2).
The Project is prospective for Critical Minerals such as
cobalt with several priority targets already identified
including the Railway Extension target which lies directly
along strike from Cobalt Blue Holdings’ Railway Cobalt
Deposit (ASX: COB) within the same rock types.
The Railway Cobalt Deposit has a JORC Indicated and
Inferred Resource of 68Mt @ 755 ppm Cobalt Equivalent
(CoEq) for 40,900t of inground cobalt (Cobalt Blue
published JORC Resources).
Subsequent to the year, Rimfire received notice
from Perilya Limited (a wholly - owned subsidiary of
China’s Zhongjin Lingnan Mining) of its intention to
withdraw from the Windy Ridge Joint Venture which
covered two sub-blocks of the project. Perilya’s
withdrawal will become effective upon fulfilling
its rehabilitation obligations (expected during the
September 2022 Quarter), following which Rimfire will
hold 100% of the project.
Rimfire is currently pursuing regulatory approvals to
enable commencement of exploration activities on
the project.
Figure 2: Location Map of Rimfire’s Eastern NSW Exploration Licences
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 5 Project Overview
COWAL PROJECT (RIM 100% - Copper / Gold)
During the year the Company expanded the size of
its New South Wales tenement portfolio following the
successful application of a new Exploration Licence
(EL9397) which abuts the southern boundary of the
Company’s 100% – owned Cowal Copper - Gold
Project and surrounding acreage held by Sandfire
Resources Limited and Newmont Exploration Pty Ltd
(Figure 1). The Company has commenced a detailed
technical review of the Cowal Project and target
generation activities to determine next steps.
FIFIELD PROJECT (GPR earning up to 60% - nickel, cobalt, scandium,
PGEs, and gold)
The Earn-in with Golden Plains Resources Pty Ltd
(GPR) is now into its third year with GPR having made
all necessary payments to enable the third year to be
committed to. At the end of the year a Binding Heads of
Agreement with GPR was executed to vary and simplify
the terms of the current Fifield Project Earn-in whereby
GPR will pay $2M cash (comprising $1.5M directly
to Rimfire for its own use and $0.5M for additional
expenditure under the earn-in) which is in addition to
remaining exploration payments of $1.2M due under the
current Fifield Earn In agreement. When all payments
are completed GPR’s interest in the resulting Joint
Venture will be 60% after expending $6.5m on the
project.
Whilst in the Earn-in phase, Rimfire retains full
responsibility for design, planning and implementation
of all field program activities and meeting all regulatory
compliance requirements. During the year Rimfire
evaluated the Platina Lead and Transit prospects.
Platina Lead
The Platina Lead was previously mined for coarse
alluvial platinum and gold in the 1880’s through to
the early 1900’s. Together with the Gillenbine Lead
and other Leads in the area (all of which lie on Rimfire
tenements), Fifield remains Australia’s largest dedicated
area for platinum production with an estimated 20,000
ounces of platinum and 6,200 ounces of gold produced
during this period.
Of the leads, Platina Lead was the most important with
an estimated 17,000 ounces of platinum produced at a
grade of 5 to 13g/t and 4,400 ounces of gold produced
at a grade of 1.5 to 4.6g/t (refer to Geology and Mineral
Deposits of Australia and Papua New Guinea – AusIMM
Monograph No. 14 published 1990).
To determine whether any remnant platinum and gold
mineralisation exists within previously mined areas,
Rimfire undertook a large diameter auger (“bucket”) drill
program in late 2022. 19 bulk samples (approximately
350 kg each) were obtained from the bedrock interface
zone in a shallow alluvial channel that is part of an
ancient stranded paleochannel at the Platina Lead.
Under the supervision of a specialist metallurgical
consultant, each sample was processed during the
June 2022 Quarter using gravity separation techniques
to produce a mineral concentrate which have been
submitted to Intertek Australia in Perth, WA for analysis.
Concentrate samples are being analysed to quantify
content of platinum group elements (PGE’s) such as
Osmium (Os), Iridium (Ir), Ruthenium (Ru), Rhodium (Rh)
and Palladium (Pd) and gold with analytical results are
expected within the December 2022 Quarter.
Transit
At the Transit gold prospect 6 Reverse Circulation holes
(984 metres) and 77 aircore holes (2,610 metres) were
completed, with further drilling planned during next year.
Work to date has confirmed the presence of moderate
gold anomalism at Transit, the significance of which is
still being evaluated.
Transit is located adjacent to the Sorpresa Gold Deposit
where the Company has previously defined a 2012
JORC Code Compliant Resource of 6.4Mt @ 0.61g/t
gold and 38g/t silver for 125Koz gold and 7.9Moz silver.
AVONDALE PROJECT (GPR earning up to 75% - nickel, cobalt, scandium, and PGEs)
The Avondale Project is subject to an Earn-in and Joint
Venture Agreement with Golden Plains Resources Pty
Ltd (GPR) whereby GPR can earn up to a 75% interest
by completing expenditure of $7.5M over 4 years.
During the Earn-in period, funds will be spent on work
programs focusing on exploring for Critical Minerals, in
particular nickel, cobalt, scandium and platinum group
elements (PGEs).
The Earn-in with GPR is now into its second year, with
GPR having committed to a Year 2 expenditure of $1.5m.
Rimfire retains full responsibility for development,
planning and implementation of all field program
6 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders activities and meeting all regulatory compliance
requirements.
Within the Avondale Project, Rimfire has identified 20+
priority exploration targets within a 40-kilometre-long belt
of underexplored intermediate volcaniclastics, sediments
and ultramafic intrusive units that lie within a geologically
significant regional – scale structure called the “Steeton
Ultramafic Suture Zone (SUSZ)”.
The exploration targets are prospective for the discovery
of nickel, cobalt, scandium, platinum and palladium
(PGEs) associated with ultramafic host rocks, and range
variously from untested magnetic anomalies (interpreted
to represent previously unrecognised ultramafic
occurrences) to confirmed ultramafic occurrences with
historic drill intercepts (i.e., the Melrose and Currajong
prospects - Figure 3).
Figure 3: Melrose and Currajong prospects
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 7 Project Overview
AVONDALE PROJECT (Continued)
The discovery potential of the SUSZ is further enhanced
by recent drill results obtained at the Sunrise East
prospect which lies next to Rimfire’s Melrose prospect
within the central portion of the SUSZ (Figure 5). At
Sunrise East, diamond drilling by Sunrise Energy Metals
Limited (ASX: SRL) returned 5.8m @ 1,120 ppm cobalt
from 7 metres with encouraging grades of nickel,
scandium, and platinum in the oxide zone in SDD029.
The drill hole also intersected a thick interval of strong
silica-carbonate-fuchsite-pyrite alteration on the contact
of the intrusive and sedimentary country rocks. Base
metal sulphides and pyrite were observed throughout
this interval and the zone has characteristics typically
associated with a carbonate-base metal-gold system.
An opportunity exists for Rimfire to discover high-
value critical minerals within the Avondale Project Area
Melrose
Shallow drilling at the Melrose prospect returned
strongly anomalous levels of nickel, cobalt, and
scandium from multiple drill holes. Sixteen vertical
aircore holes (FI2163 to FI2178 - 484 metres) were
drilled every 50 to 100 metres on three 100 metre –
spaced traverses to further test a “bullseye” magnetic
anomaly at Melrose that previous reconnaissance drilling
by Rimfire (in 2018 – FI0835 to FI0886) had shown to be
coincident with an ultramafic rock unit (Figures 5 and 6).
The latest drilling successfully intersected the laterised/
weathered ultramafic intrusive unit which is fault -
around known prospects, and within untested magnetic
anomalies that may prove to be previously unrecognised
ultramafic occurrences.
The emphasis of past discovery work on the Avondale
Project Area has been on near surface oxide
mineralisation with minimal deep drilling of prospective
units below 50 metres. A lack of systematic assaying for
the full suite of critical minerals (many key elements such
as full suite of PGE’s never analysed) together , with a
thin veneer of soil cover (resulting in not many targets
being field checked), reinforces the critical minerals
opportunity at Avondale.
During the year, Rimfire and GPR initiated a major
exploration program to assess a number of priority
including the Melrose and Currajong prospects.
bounded against a granite to east and volcaniclastic
sediments to the west. Geochemical analysis of 3 metre
composite drill samples returned strongly anomalous
nickel (Ni), cobalt (Co) and scandium (Sc) from a flat
lying ferruginous zone that is developed over the
ultramafic unit and remains open along strike and to the
west (below are highlighted results, full results included
in ASX Announcement: 4 April 2022 - Strong nickel,
cobalt, scandium drill results reinforce critical minerals
exploration strategy).
FI2163 – 12m @ 0.23% Ni, 0.11% Co, and 314ppm Sc from 9 metres,
FI2164 – 9m @ 0.50% Ni, 0.02% Co, and 209ppm Sc from 6 metres,
FI2174 – 12m @ 0.32% Ni, 0.12% Co, and 221ppm Sc from 3 metres,
FI2175 – 3m @ 0.24% Ni, 0.07% Co, and 220ppm Sc from surface,
FI2176 – 9m @ 0.17% Ni, 0.10% Co, and 362ppm Sc from 3 metres,
FI2177 – 21m @ 0.38% Ni, 0.08% Co, and 45ppm Sc from surface, and
FI2178 – 18m @ 0.10% Ni, 0.04% Co, and 286ppm Sc from 3 metres.
The results from Rimfire’s drilling at Melrose compare favorably to (with scandium grades exceeding) recent drill
results announced by Sunrise Energy Metals Limited (ASX: SRL) at their nearby Sunrise East prospect. (i.e., diamond
drillhole SDD029 intersected 5.8m @ 0.31% Ni, 0.11% Co and 174 ppm Sc from 7 metres within a laterised (weathered)
ultramafic (see Figure 4). (SRL ASX Announcement: 20 January 2022 - Exploration Update).
8 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders Figure 4: Rimfire 2022 and Historic AC Drill Holes
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 9 Project Overview
Figure 5: Melrose magnetic anomaly showing Rimfire aircore drill hole collar positions on a RTP. TMI background image.
10 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders Figure 6: Stacked profile sections (looking north) of the 6,371,775N traverse showing geology, nickel, cobalt,
scandium, copper anomalous zones, and base of ferruginous zone.
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 11
Project Overview
AVONDALE PROJECT (Continued)
Currajong
Aircore drilling undertaken during the Year at the
Currajong prospect has intersected significant
anomalous nickel - cobalt mineralisation within the
weathered portion of a platinum - mineralised ultramafic
unit that can be mapped in magnetics for over 2.5
kilometres strike length.
Sixty-three vertical aircore holes (FI2235 to FI2288 and
FI2322 to FI2329 - 1,763 metres) were drilled by Rimfire
on nominal 50 x 100 metre centres at the southern end
of the ultramafic unit with strongly anomalous nickel (Ni)
and cobalt (Co) returned from multiple drill holes (see
ASX Announcement 8 June 2022).
FI2285 – 34m @ 0.29% Ni, 0.15% Co, and 101ppm Sc from 6 metres including 16m @ 0.27% Ni, 0.22% Co, and
120ppm Sc from 8 metres,
FI2261 – 28m @ 0.53% Ni, 0.06% Co, and 41ppm Sc from 5 metres, including 5m @ 0.57% Ni, 0.09% Co, and 56
Sc from 16 metres,
FI2245 – 9m @ 0.16% Ni, 0.14% Co, and 111ppm Sc from 18 metres, o FI2248 – 20m @ 0.30% Ni, 0.07% Co, and
54 ppm Sc from 9 metres, including 6m @ 0.29% Ni, 0.10% Co, and 75ppm Sc from 13.
FI2284 – 11m @ 0.23% Ni, 0.05% Co, and 118ppm Sc from 8 metres,
FI2278 – 13m @ 0.30% Ni, 0.08% Co, and 34ppm Sc from 8 metres,
FI2287 – 17m @ 0.62% Ni, 0.04% Co, and 68 ppm Sc from 7 metres, and
FI2257 – 4m @ 0.57% Ni, 0.06% Co, and 74 ppm Sc from 20 metres.
The nickel – cobalt mineralisation occurs within
a flat lying weathered zone that is developed
over an ultramafic unit that can be “mapped” in
magnetic imagery for over 2.5 kilometres. The recent
drilling which was focused on the southern end
of the ultramafic has now defined nickel - cobalt
mineralisation (using a +200-ppm cobalt contour)
over an approximate area of 800m x 200m.
The ultramafic unit appears to be a “sill” like body and
is made up of peridotite, serpentinite and pyroxenite
lithologies and is bounded to the east and west by a
mixed sequence of sediments, felsic intrusions, and
minor ultramafic units.
The ultramafic is platiniferous, with strongly anomalous
platinum (Pt) +/- palladium (Pd) intersected in wide
spaced shallow holes drilled in the late 1990’s and early
2000’s – none of which were followed up at the time.
RC02A03 – 8m @ 0.54g/t Pt +Pd from 24 metres,
RC02A04 – 6m@ 0.72g/t Pt + Pd from 26 metres and 20m @ 0.80g/t Pt + Pd from 52 metres (Hole ended in
mineralisation),
RC02A05 – 44m @ 0.34g/t Pt + Pd from 8 metres including 8m @ 0.87g/t Pt + Pd from 10 metres including 2m @
1.34g/t Pt + Pd from 12 metres,
RC02A06 – 2m @ 0.58g/t Pt + Pd from 34 metres,
AC03A08 – 27m @ 0.33g/t Pt + Pd from 32 metres (Hole ended in mineralisation),
AC03A17 – 4m @ 0.61g/t Pt + Pd from 52 metres (Hole ended in mineralisation),
AC03A23 – 5m @ 0.39g/t Pt + Pd from 8 metres,
AC03A25 – 5m @ 0.46g/t Pt + Pd from 12 metres,
AC03A27 – 4m @ 0.58g/t Pt + Pd from 23 metres and 3m @ 0.57g/t Pt + Pd from 29 metres,
AC03A45 – 4m @ 0.76g/t Pt + Pd from 8 metres.
Significantly only 54 holes out of the total 204 holes drilled
at Currajong (i.e., one quarter) have been analysed for
platinum and palladium, and of those holes, only three
(RC02A04, AC03A08, and AC03A17) tested the ultramafic
below the base of weathering with each intersecting
platinum + palladium mineralisation in the fresh ultramafic.
As such the Currajong ultramafic (beneath the base of
weathering) remains largely untested for platinum and
palladium, and completely untested for all other Platinum
Group Elements (PGE’s) such as iridium, osmium,
rhodium, and ruthenium.
12 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders Directors’ Report
Your Directors present the following report on Rimfire Pacific Mining Limited (“the Company”) and its controlled
entities (together referred to as “the Consolidated Entity”) for the financial year ended 30 June 2022.
Directors
The names of Directors in office during the whole or part of the financial year and up to the date of this report:
Ian McCubbing (Non-Executive Chairman),
David Hutton (Non-Executive Director), appointed 15 October 2021, (Executive Director), appointed 7 February
2022, (Managing Director and Chief Executive Officer) appointed 15 June 2022,
Andrew Knox (Non-Executive Director),
Misha Collins (Non-independent, Non-Executive Director), appointed 2 July 2021,
Greg Keane (alternate Director to Ian McCubbing, appointed 17 August 2022),
Craig Riley (Managing Director and Chief Executive Officer, resigned 29 April 2022),
Andrew Greville (Non-Executive Director, resigned 18 November 2021).
Principal Activities
The principal activities of the Consolidated entity during
the financial year were the exploration for and evaluation
of mineral deposits.
Review of Operations
Rimfire Pacific Mining Limited (ASX: RIM) is an ASX-
listed exploration company focused on exploring for
Critical Minerals within the Lachlan Orogen and Broken
Hill districts of NSW.
The Company actively enacts a process of review, rating
and prioritising key prospect opportunities to progress
and grow the pipeline for new discoveries.
Full details of the progression of discovery activity
undertaken during the period are contained in the
Operations Section of this Annual Report.
Junior Resource Sector Outlook and
Financial Position
The global outlook for the resources sector continues
to be mixed depending on mineral commodity type
with strong demand and interest in the top tier mining
companies with more variable interest in the junior
resource sector.
In addition to the Company’s traditional focus on gold
and copper, the Company is also exploring for Critical
Minerals such as Nickel, Cobalt, Scandium, Platinum,
and Palladium (PGEs).
Critical Minerals are in increasing demand due to
their importance in the changing needs of the world
for minerals to help fuel and store alternate sources
of energy.
The Consolidated Entities cash at bank at 30 June
2022 was $0.3m. An additional $0.3m was held
collectively in the Fifield and Avondale Project
Accounts at 30 June 2022.
On 29 June 2022, the Company executed a Binding
Heads of Agreement with GPR to vary and simplify the
terms of the current Fifield Project Earn-in.
Under the terms of the Heads of Agreement, GPR will
pay $2m cash (comprising $1.5m directly to Rimfire for
its own use (“Rimfire Corporate Payment”) and $0.5m
for additional expenditure under the earn-in “Additional
Expenditure Payment”), which is in addition to remaining
exploration payments of $1.5m due under the current
Fifield Earn In agreement. Upon receipt of all moneys
($3.5m in total), GPR will secure an additional 9.9%
interest in the Fifield Project (60% in total) and Rimfire
will waive the requirement under the current Earn-in
Agreement for GPR to provide funding to Rimfire for a
development project.
GPR will pay the various amounts in installments with all
monies due by 30th November 2022.
Under the Fifield and Avondale Project Agreements,
cash calls are made in advance based on agreed
forecast expenditure and the funds are deposited into
the Company’s accounts for payments on expenditure
incurred by the respective projects.
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 13 Directors’ Report
Capital Structure
As at 30 June 2022 the capital structure of the Company
was;
• 1,806,244,735 Ordinary Shares on Issue (RIM),
• 60,300,000 Unlisted options ordinary shares (Options),
various prices and vesting dates.
Operating Results
The loss of the Consolidated entity amounted to
$912,954 for the year (2021: $373,704).
Dividends
No dividends were paid during the financial year, nor
are any recommended at 30 June 2022 (30 June 2021:
Nil).
Risks and Uncertainties
The Company is subject to both risks specific to the
Company and the Company’s business activities, as well
as general risks.
Future funding risks
The Company is involved in mineral exploration in
Australia and is yet to generate revenues. The Company
has a cash and cash equivalents of $271,511 and net
assets of $15,675,256. The Company may require
additional financing in the future to sufficiently fund
exploration commitments and its other longer-term
objectives. The capacity to raise additional funding in
the future is subject to a range of general risks including
commodity prices, general economic conditions in
Australia and foreign countries, taxation legislation,
equity market conditions and environmental issues. In
addition there are risks specific to the Company that
could impact current and future funding including our
exploration partner, Golden Plains Resources Pty Ltd’s
capacity and willingness to meet its existing and future
obligations, the Company being able to continue to
gain access to land for exploration, exploration success
and other issues. The Directors regularly review the
Company’s expenditure and the ability to raise additional
funding to ensure the Company’s ability to generate
sufficient cash inflows to settle its creditors and other
liabilities.
Earn-in and Joint Venture Operations Risks
Two of the Company’s projects (Fifield and Avondale)
are subject to Earn-in Agreements which may results
in formation of separate joint ventures if the Earn-
in partner meets its commitments under the terms
of the respective agreements. Earn-in and Joint
Venture partnerships are a common form of business
arrangement designed to share risk and other costs.
For both projects until a Joint Venture is crystallised,
the Company maintains management control. Once a
joint venture is formed, the Company may not control
the approval of work programs and budgets and a
Joint Venture Partner may vote to participate in certain
activities without the approval of the Company. As a
result, the Company may experience a dilution of its
interest or may not gain the full benefit of the activity.
Failure to reach agreement on exploration, development
and production activities may have a material impact
on the Company’s business. Failure of the Company’s
Joint Venture Partner’s to meet financial and other
obligations may have an adverse impact on the
Company’s business.
Environmental and social risks
The Company holds participating interests in a number
of exploration tenements in New South Wales. The
various authorities granting such tenements require
the Company to comply with the terms of the grant of
the tenement and all directions given to it under those
terms of the tenement. The long-term viability of the
Company is closely associated to the wellbeing of the
communities and environments in which the Company
conduct operations. At any stage of the asset life
cycle, the Company’s operations and activities may
have or be seen to have significant adverse impacts on
communities and environments. In these circumstances,
the Company may fail to meet the evolving expectations
of our stakeholders (including investors, governments,
employees, suppliers, customers and community
members) whose support is needed to realise our
strategy and purpose. This could lead to loss of
stakeholder support or regulatory approvals, increased
taxes and regulation, enforcement action, litigation
or class actions, or otherwise impact our licence to
operate and adversely affect our reputation, fund raising
capability, ability to attract and retain talent, operational
continuity and financial performance.
Dependence on service providers and third-party
collaborators
There is no guarantee that the Company will be able
to find suitable third-party providers and third-partly
collaborators to complete the exploration work. The
Company therefore is exposed to the risk that any
of these parties can experience problems related to
operations, financial strength or other issues, and
collaborative agreements may be terminable by the
Company’s partners. Non-performance, suspension
or termination of relevant agreements could negatively
14 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders impact the progress or success of the Company’s
exploration efforts, financial condition and results of
operations.
The COVID-19 pandemic creates risks and challenges
when it comes to engaging third party contractors and
suppliers to undertake the Company’s activities. Due
to the pandemic operational progress may be slowed
or arrested as jurisdictions and suppliers respond to
differing conditions. The Company monitors commercial
developments and engages proactively with key
stakeholders to manage this risk.
Reliance on key personnel
The Company’s success depends to a significant
extent upon its key management personnel, as well as
other management and technical personnel including
those employed on a contractual basis. The loss such
personnel or the reduced ability to recruit additional
personnel could have an adverse effect on the
performance of the Company.
The Company maintains a mixture of permanent staff
and expert consultants to advance its programs and
ensure access to multiple skill sets. The Company,
through the Remuneration and Nomination Committee
(or in its absence the Board) reviews remuneration levels
to human resources regularly.
IT system failure and cyber security risks
Any information technology system is potentially
vulnerable to interruption and/or damage from a number
of sources, including but not limited to computer
viruses, cyber security attacks and other security
breaches, power, systems, internet and data network
failures, and natural disasters.
The Company is committed to preventing and reducing
cyber security risks. IT services are outsourced to a
reputable third-party services provider.
Impact of COVID-19
The global impact of the COVID-19 pandemic, and
the advice and responses from health and regulatory
authorities, is continuously evolving. The global
economic outlook is facing uncertainty due to the
COVID-19 pandemic which has had and may continue
to have a significant impact on capital markets and
share prices.
To date, COVID-19 has impacted equity markets,
governmental action, regulatory policy, quarantining,
self-isolations and travel restrictions. These impacts
are creating risks for the Company’s business and
operations in the short to medium term. Shipping
and supply (domestic and international) delays have
impacted and may continue to impact the Company and
the wider business community.
The Company has in place business continuity plans
and procedures to help manage the key risks that may
cause a disruption to the Company’s business and
operations, but their adequacy cannot be predicted. The
Company’s Directors are closely monitoring the situation
and considering the impact on the Company’s business
from both a financial and operational perspective.
Exploration Risk
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, among
other things:
• securing and maintaining title to mineral exploration
projects;
• discovery and proving up, or acquiring, an
economically recoverable resource or reserve;
• access to adequate capital throughout the acquisition/
discovery and project development phases;
• obtaining required development consents and
approvals necessary for the acquisition, mineral
exploitation, 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 on
the Company’s projects, 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 future exploration activities of the
Company may be affected by a range of factors
including geological conditions, limitations on activities
due to seasonal weather patterns, unanticipated
operational and technical difficulties, industrial and
environmental accidents, changing government
regulations and many other factors beyond the control
of the Company. The Company is entirely dependent
upon its projects, which are the sole potential source
of future revenue, and any adverse development
affecting these projects would have a material adverse
effect on the Group, its business, prospects, results of
operations and financial condition.
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 15 Directors’ Report
Grant of future authorisations to explore and mine
If the Company discovers an economically viable
mineral deposit that it then intends to develop, it will,
among other things, require various approvals, licences
and permits before it will be able to mine the deposit.
There is no guarantee that the Company will be able
to obtain all required approvals, licences and permits.
To the extent that required authorisations are not
obtained or are delayed, the Company’s operational
and financial performance may be materially
adversely affected.
Resource and reserve estimates
Whilst the Company intends to undertake exploration
activities with the aim of defining new resources, no
assurances can be given that the exploration will
result in the determination of a resource. Even if a
resource is identified, no assurance can be provided
that this can be economically extracted. Resource
and reserve estimates are expressions of judgement
based on knowledge, experience, and industry
practice. Estimates which were valid when initially
calculated may alter significantly when new information
or techniques become available or commodity prices
change. In addition, by their very nature, resource
and reserve estimates are imprecise and depend to
some extent on interpretation which may prove to be
inaccurate.
Future profitability
The Company is in the growth stage of its development
and is currently making losses. The Company’s
performance will be impacted by, among other things,
the success of its exploration activities, economic
conditions in the markets in which it operates,
competition factors and any regulatory developments.
Accordingly, the extent of future profits (if any) and
the time required to achieve sustained profitability are
uncertain and cannot be reliably predicted.
After Balance Date Events
The Company held a General Meeting on 25
August 2022, where the issue of Options subject to
vesting conditions to be issued to Mr David Hutton
(30,000,000), Mr Ian McCubbing (15,000,000) and
Mr Andrew Knox (10,000,000) was approved by
shareholders.
After 30 June 2022, the Consolidated entity has
received $620,000 in connection with the Binding
Heads of Agreement with GPR to modify the Fifield
Project Earn-in Agreement with GPR and has also
received $250,000 relating to exploration payments on
the Avondale Project Earn-in.
The impact of the Coronavirus (Covid-19) pandemic
is ongoing and it is not practicable to estimate the
potential impact, positive or negative, after the
reporting date. The situation is rapidly developing and
is dependent on measures imposed by the Australian
Government and other countries, such as maintaining
social distancing requirements, quarantine, travel
restrictions and any economic stimulus that may be
provided.
No other matters or circumstances which have arisen
since the end of the financial year have significantly
affected or may significantly affect the operations
of the Consolidated entity, the results of those
operations, or the state of affairs of the Consolidated
entity in future financial years.
Licence and Environmental Compliance
The Consolidated entity aims to ensure the Company
achieves a high standard of environmental care. The
Board maintains the responsibility to ensure that
the Consolidated entity’s environment policies are
adhered to and to ensure that the Consolidated entity
is aware of, and is in compliance with, all relevant
environmental legislation.
16 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 17 Information on Directors
Ian McCubbing
Independent Non-Executive Chairman
Member of Audit Committee
Chairman of Remuneration and Nomination
Committee
Bachelor of Commerce (Hons), MBA (Ex), CA,
GAICD
Mr McCubbing was appointed Director and
Chairman of the Board in July 2016 and
possesses a strong commercial background in
the resources industry.
Mr McCubbing is a Chartered Accountant with
more than 30 years’ experience, principally in
the areas of accounting, corporate finance and
mergers and acquisition. He spent more than
15 years working with ASX200 and other listed
companies in senior finance roles, including
positions as Finance Director and Chief Finance
Officer in mining and industrial companies.
During the past three years Mr McCubbing has
also served as a director on the following ASX
listed companies;
- Swick Mining Services Ltd (Non-Executive
Director from August 2010 to February 2022),
and
- Prominence Energy NL (Non-executive
Chairman from October 2016 to May 2022).
Shareholding: 14,209,849 ordinary shares and
15,000,000 unlisted Options subject to vesting
conditions.
18 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
David Hutton
Managing Director and Chief Executive Officer
Bachelor of Science (Hons), Fellow of the
AusIMM and Member of Australian Institute of
Geoscientists (AIG)
Mr Hutton joined Rimfire in October 2021 as Non-
executive Director and was appointed Managing
Director and CEO in June 2022.
Mr Hutton is a geologist who has over 30 years’
experience in both exploration and mining
throughout Australia and overseas who has been
involved with the discovery and / or delineation of
numerous precious and base metal deposits. As
MD / CEO of ASX listed exploration companies
for over 10 years he also has significant corporate
strategy, business networking and stakeholder
engagement skills.
During the past three years Mr Hutton has also
served as Managing Director and CEO of ASX
listed Mithril Resources Ltd (from June 2012 to
May 2020).
Shareholding: 30,000,000 unlisted Options
subject to vesting conditions.
Andrew Knox
Independent Non-Executive Director
Misha Collins
Non-Independent Non-Executive Director
Chairman of Audit Committee
Member of Audit Committee
Member of Nomination and Remuneration
Committee
Bachelor of Commerce, CA, CPA, FAICD
Mr Knox was appointed a Director in March 2020
and brings a strong commercial background in
strategy and fund raising for micro and low capital
companies in the oil and gas and mining industries.
Mr Knox has over 35 years’ of resources experience
throughout Australasia, South East Asia and North
America. Mr Knox provides additional significant
experience in financial and commercial activities,
involving acquisitions, Merger and Acquisition (M&A)
and capital raisings.
During the past three years Mr Knox has also served
as a director on the following ASX listed companies;
- Red Sky Energy (CEO and Managing Director
since July 2018).
Shareholding: 12,889,582 ordinary shares and
10,000,000 unlisted Options subject to vesting
conditions.
Member of Nomination and Remuneration Committee
Bachelor of Engineering in Metallurgy (First Class
Honours), Graduate Certificate in Banking and Finance,
Graduate Diploma in Applied Finance and Investment,
CFA program completion, member of AIMM, AICD and
CFA charter holder
Mr Collins was appointed a Director in July 2021 and
brings 23 years’ of experience in the resources industry.
Mr Collins’ experience in resources has been as a mining
executive, financial analyst, and company director,
including time with BHP, Bankers Trust / BT Funds
Management, ING Australia and most recently was Chief
Executive Officer of Cassidy Gold Corporation and has
acted as adviser to several significant debt and equity
transactions in the gold mining industry.
During the past three years Mr Collins has also served as
a director on the following ASX listed companies;
- Sihayo Gold (Non-Executive Director since 2008
including Chairman in 2009 to 2010 and 2013 to 2020).
Mr Collins has acted as an unpaid technical adviser
during the last 3 years to Golden Plains Resources
Pty. Ltd., who are the project partners in the Fifield and
Avondale Earn-in Projects. Accordingly, Mr Collins is
considered to be a Non-Independent Director for Rimfire.
Shareholding: 4,600,000 ordinary shares.
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 19
Information on Directors
Greg Keane
CFO / Alternate Director to Ian McCubbing
Stefan Ross
Company Secretary (Appointed 2 July 2021)
Bachelor of Business Accounting, MBA, Graduate
Diploma of Applied Corporate Governance, CPA, CSA
BBus (Acc)
Mr Keane was appointed CFO in May 2017 and Alternate
Director to Ian McCubbing in August 2022 and is an
experienced commercial and financial professional.
With over 19 years’ experience, in the Mineral Resources
Industry (both mining and exploration), Mr Keane has
gained significant experience and exposure in defining
and implementing operational, commercial and financial
strategy. His career has involved hands-on management
of resources companies accounting, information
technology, human resources, logistics, supply and
contracts and other support services functions, both
within Australia and overseas.
During the past three years Mr Keane did not hold any
other ASX listed company directorships.
Shareholding: 5,639,378 ordinary shares and 20,000,000
unlisted Options subject to vesting conditions.
Mr Ross was appointed as Company Secretary
in July 2021, he is an employee of Vistra Australia
providing outsourced company secretarial
and accounting services to public and private
companies across a host of industries including
but not limited to the Resources, technology,
bioscience, biotechnology and health sectors.
Mr Ross has over 10 years’ of experience in
accounting and secretarial services for ASX Listed
companies. His extensive experience includes
ASX compliance, corporate governance control
and implementation, statutory financial reporting
and board and secretarial support.
Meetings of Directors
During the financial year, meetings of Directors were held and attendances by each Director are detailed below.
Director's Meetings
Audit Committee
Meetings
Rem. and Nom.
Committee Meetings
No. Eligible
to Attend
Number
Attended
No. Eligible
to Attend
Number
Attended
No. Eligible
to Attend
Number
Attended
Ian McCubbing
David Hutton
Andrew Knox
Misha Collins
Craig Riley
Andrew Greville
16
12
16
16
12
7
16
12
16
14
9
6
2
-
2
1
-
1
2
-
2
1
-
1
3
2
1
2
-
1
3
2
1
2
-
1
20 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
Craig Riley
Managing Director and Chief Executive Officer
Andrew Greville
Independent Non-Executive Director
Bachelor of Applied Science (Hons) (Queensland
University of Technology)
Chairman of Nomination and Remuneration
Committee
(Resigned on 29 April 2022)
Member of Audit Committee
Mr Riley joined Rimfire in September 2018 in
the capacity of Business Development Manager
and was appointed Chief Executive Officer in
January 2019 and Managing Director on
31 March 2019.
Mr Riley has more than 25 years of exploration
and mining industry experience with a
successful track record of commercial appraisal
and development of projects globally across a
range of commodities. His extensive experience
includes major mining companies and junior
explorers internationally and across Australia
including Northparkes mine.
During the past three years Mr Riley did
not hold any other ASX listed company
directorships.
Shareholding: 8,033,830 ordinary shares at the
time of his departure from the company.
Bachelor of Engineering (Mining), University of
Queensland, Queensland Limited Mine Manager’s
Certificate
(Resigned on 18 November 2021)
Mr Greville was appointed a Director in August
2017. He is a qualified mining engineer with over
30 years of mining industry experience.
Mr Greville’s experience is primarily gained in
the copper industry, particularly in the fields
of business development, including mergers &
acquisitions, marketing and strategy. Mr Greville’s
career includes the role of Executive General
Manager, Business Development and Strategy,
Xstrata Copper. Currently Mr Greville is Managing
Director of West End Mining & Consulting (Private
Company).
During the past three years Mr Greville has also
served as a director on the following ASX and
TSXV listed companies;
- Aeon Metals Ltd (Non-executive Director since
May 2020),
- Tulla Resources Plc (Non-Executive Director
since February 2021), and
- Nova Royalty Corporation (Non-Executive
Director since December 2020).
Shareholding: 4,600,000 ordinary shares at the
time of his departure from the company.
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 21
Remuneration Report (Audited)
The Remuneration Report, which has been audited,
outlines the Key Management Personnel (KMP)
remuneration arrangements for the Consolidated
entity, in accordance with the requirements of the
Corporations Act 2001 and its regulations.
The Remuneration Report is set out under the
following main headings:
1. Principles used to determine the nature and
amount of remuneration
2. Details of remuneration for the year ended 30
June 2022
3. Employment contracts
4. Share based compensation of Directors and
Key Management Personnel
5. Additional Disclosures relating to Key
Management Personnel
6. Shareholding
7. Five-year summary of key financial data
Company did not engage remuneration consultants to
provide advice on the Company’s remuneration policy.
The policy requires reviews taking into account
the Consolidated entity’s performance, executive
and Non-Executive Director performance and
comparable information from industry, including
other listed companies in the resources sector.
Independent external advice is sought as required.
There is currently no link between the policy and
the Company’s earnings and shareholder wealth
because the Company is still in the exploration phase
and is not generating revenue. Instead, the criteria
for executive and Director appraisal include:
• Maintaining high standards of workplace, health and
safety, environmental compliance and community
liaison,
• Leading the development of strategy, and
communicating to stakeholders,
• Maintaining capital resources necessary to execute
the Company’s strategy, with minimal dilution and
costs to shareholders,
• Technical advancement in the discovery potential of
the project areas,
1. Principles used to determine the nature and
• Managing operations and expenditure to efficient
amount of remuneration
levels and within budgets,
The Board of Rimfire Pacific Mining Limited uses the
Remuneration and Nomination Committee to review
and consistently apply the Company Policy to allow
the Company to maintain its ability to attract and retain
suitable executives and Directors to run and manage the
Consolidated entity, as well as create alignment between
Directors, executives and shareholders.
The Company Policy, implemented via the Remuneration
and Nomination Committee, is to benchmark Company
remuneration against comparable businesses and
ensure that remuneration is comparable, but also within
the financial capability of the Company at the time of
assessment.
Remuneration policy for Directors and senior executives
is reviewed annually by the Board. Depending on
the nature of employment agreements, remuneration
comprises a fixed component, (which is based on
factors such as capability, effectiveness, work tasks,
responsibilities, length of service and experience),
superannuation, fringe benefits, short term bonus, long
term incentives (which may include shares, options on
shares or performance rights), subject to any necessary
shareholder or regulatory approvals. During the year the
• Preserving financial and business integrity and
managing risk under difficult industry conditions,
• Recruiting, managing and training personnel to ensure
access to high levels of skill in the industry,
• Managing investor relations and Company
communication,
• Ability to multi-skill and cover as much of the
Company’s skill needs from in-house resources.
The Board is aware of the need to maintain competitive
remuneration to reward performance which benefits
shareholders and advances the Company. To this
end, a review of the short-term bonus and long-
term incentive programs to motivate and reward
those people who create shareholder value and
make the greatest contribution to the Company was
undertaken last year. A long-term equity incentive plan
for employees was approved by shareholders at the
Company’s 24 November 2020 AGM.
There has been no change to the cash remuneration
of Non-Executive Directors. Subsequent to the
end of the Financial Year, unlisted options were
approved by shareholders to be issued to Mr Ian
22 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders McCubbing (15,000,000 unlisted Options subject to
vesting conditions) and Mr Andrew Knox (10,000,000
unlisted Options subject to vesting conditions). To
align Directors’ interests with shareholder interests,
Directors are encouraged to hold shares in the
Company. Withheld salary payments from Senior
Management whilst on reduced salaries when the
Company was undertaking cost reduction activity,
have also been paid during the period.
The remuneration policy review undertaken in 2018
will be revisited as required to ensure it continues
to meet the needs of the Company, creates better
alignment to industry practices for remuneration and
to accommodate changes to law. The Company has
reviewed the application of laws in relation to the use
of employee share schemes and performance rights.
At the 2021 AGM the Company received 95% of ‘for’
votes in relation to its remuneration report for the year
ended 30 June 2022. No feedback was received from
shareholders in relation to its remuneration practices
at the 2021 AGM.
2. Details of Remuneration for the Year Ended
30 June 2022
Benefits to senior executives and the Non-Executive
Directors consisted primarily of cash benefits in the
period with a modest short-term incentive paid to
the Managing Director. The Non-Executive Director
Pool was increased at the 2021 AGM from $200,000
to $240,000 and represents the maximum aggregate
payments to Non-Executive Directors, in their
capacities as Directors, that can be paid in any one year
without requiring additional shareholder approval. The
actual Non-Executive Director pool utilised for the Year
ended 30 June 2022 was $167,536 (2021: $140,000).
Table 1: Remuneration Details
The following table details, in respect to the financial years ended 30 June 2022 and 2021, the
components of remuneration for key management personnel of the Consolidated entity.
Key Management
Personnel
Non-Executive Directors
Primary
Post Employment
Equity
Salary
and Fees
Bonus
- STI
Annual
Termination
Super
Long
Service
Options
Total
I McCubbing
A Greville*
A Knox
M Collins
D Hutton*
FY 2022
FY 2021
FY 2022
FY 2021
FY 2022
FY 2021
FY 2022
FY 2021
FY 2022
FY 2021
60,000
60,000
16,021
40,000
39,697
40,000
39,551
-
12,267
-
Executive Directors
C Riley*
D Hutton*
FY 2022
FY 2021
FY 2022
FY 2021
FY 2022
FY 2021
158,392
179,376
88,159
-
414,088
319,376
Total
Total
* Note:
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
60,000
60,000
16,021
40,000
39,697
40,000
39,551
-
12,267
-
24,341
17,352
-
-
24,341
17,352
4,264
12,859
-
-
4,264
12,859
44,323
-
-
-
44,323
-
17,385
19,975
615
-
18,001
19,975
(2,883)
1,977
-
-
(2,883)
1,977
(9,123)
(16,013)
-
-
(9,123)
(16,013)
236,699
215,526
88,775
-
493,010
355,526
- A Greville resigned on 18 November 2021
- C Riley resigned on 29 April 2022
- D Hutton was appointed Non-executive Director on 15 October 2021, Executive Director on 7th February 2022,
and Managing Director and CEO on 15 June 2022.
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 23
Remuneration Report (Audited)
Performance Income as a Proportion of Total
Remuneration
A cash bonus of $24,341 (excluding superannuation) was
paid to the Managing Director during the year ended 30
June 2022 (2021: $17,352).
Transactions Between Related Parties
Transactions between related parties are on normal
commercial terms and conditions no more favourable
than those available to other parties unless stated. In the
current period no payments were paid to related parties
outside of the Remuneration as detailed above.
3. Employment Contracts
An Executive Services Agreement is in place with the
CEO and Managing Director, Mr Craig Riley, effective
from 31 January 2019 until his termination 29 April 2022.
Under the terms of the Agreement, the termination
provisions are 6 months’ notice by the company and 3
months’ notice by the employee. The Agreement also
included a STI component of up to 20% of annual base
salary and a LTI that was set at 42.5m options at the
start of employment as MD and CEO. Total renumeration
Mr Riley received under his Agreement for the Financial
Year until his termination was $236,699.
An Executive Services Agreement is in place with the
CEO and Managing Director, My David Hutton, effective
from 15 June 2022. Under the terms of the Agreement,
the termination provisions are 3 months’ notice by the
company or the employee. Mr Hutton is entitled to an
annual salary of $200,000 plus superannuation (80%
full time equivalent). The Agreement also includes a
STI component of up to 40% of annual base salary
and a LTI that was set at 30m options and approved by
shareholders at a General Meeting held 25 August 2022.
The Non-Executive Directors have been appointed on an
ongoing basis and have no retirement benefit allowances
(neither current nor accrued), and the Company has no
obligations upon their cessation from office.
4. Share Based Compensation of Directors & Key
Management Personnel
No share-based compensation was granted to Key
Management Personnel during the year ended 30 June
2022 (2021: nil).
5. Additional Disclosures Relating to Key
Management Personnel
None.
6. Shareholding
Table 2: Shareholding Details
The following table details, in respect to the financial years ended 30 June 2022 and 2021,
the shareholdings for key management personnel of the Group.
Key Management Personnel
Non- Executive Directors
Beginning
Balance
Received as
Remuneration
Shares Acquired
Net Change
Other
Closing Balance
I McCubbing
A Greville*
A Knox
M Collins*
D Hutton
FY 2021
FY 2020
FY 2021
FY 2020
FY 2021
FY 2020
FY 2021
FY 2020
FY 2021
FY 2020
14,209,849
11,809,849
4,600,000
3,000,000
12,889,582
12,489,582
-
-
-
-
Executive Directors
C Riley*
D Hutton
FY 2021
FY 2020
FY 2021
FY 2020
Total FY22
Total FY21
8,033,830
-
-
-
39,733,261
27,299,431
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,400,000
1,600,000
-
400,000
-
-
14,209,849
14,209,849
(4,600,000)
-
-
-
-
4,600,000
12,889,582
12,889,582
-
-
-
-
4,600,000
-
4,600,000
-
-
-
-
-
-
8,033,830
-
-
(8,033,830)
-
-
-
-
8,033,830
-
-
-
12,433,830
(8,033,830)
-
31,699,431
39,733,261
* Notes regarding “Net Change Other” in FY22: A Greville resigned on 18 November 2021,
C Riley resigned on 29 April 2022, M Collins started with the Company on 2 July 2021.
24 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders Table 3: Option Details
The following table details, in respect to the financial years ended 30 June 2022 and 2021,
the Options held for each key management person of the Group.
Key Management Personnel
Non- Executive Directors
Beginning
Balance
Options
Acquired
Options
Exercised
Options Lapsed
Closing Balance
I McCubbing
A Greville
A Knox
M Collins
D Hutton
Executive Directors
C Riley*
D Hutton
FY 2021
FY 2020
FY 2021
FY 2020
FY 2021
FY 2020
FY 2021
FY 2020
FY 2021
FY 2020
FY 2021
FY 2020
FY 2021
FY 2020
-
-
-
-
-
-
-
-
-
-
20,000,000
42,500,000
-
-
Total FY 2021
20,000,000
Total FY 2020
42,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(15,000,000)
-
-
-
(15,000,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(20,000,000)
(7,500,000)
-
20,000,000
-
-
-
-
(20,000,000)
(7,500,000)
-
20,000,000
* Note: C Riley resigned on 29 April 2022 and all unvested Options lapsed upon termination.
No Options vested to any key management personnel during the financial year.
Executives
There were no executives other than Mr David Hutton at balance date.
7. Five Year Summary of Key Financial Data
The earnings of the company for the five years to 30 June 2022 are summarised below:
Revenue and Other Income
2022
$
304,988
2021
$
650,456
2020
$
52,846
2019
$
5,628
2018
$
35,538
Net Profit / (Loss) before tax
(912,954)
(373,704)
(956,975)
(875,505)
(1,047,836)
Net Profit / (Loss) after tax
(912,954)
(373,704)
(956,975)
(875,505)
(1,047,836)
Share Price beginning financial year ($)
Share price end financial year ($)
Basic loss per share (cents per share)
0.009
0.008
(0.050)
0.007
0.009
(0.020)
0.003
0.007
(0.070)
0.011
0.003
(0.080)
0.022
0.011
(0.011)
End of audited remuneration report.
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 25
Directors’ Report (continued)
Unissued shares under option
During the period 15,000,000 options lapsed due to vesting conditions not being met and 10,000,000 Options
lapsed on Craig Riley’s termination from the Company. During the year 55,300,000 unlisted Options were issued to
employees under the Employee Incentive Scheme. As at 30 June 2022 the breakdown of unlisted Options remaining
at balance date are listed below;
Employee Options, performance based vesting conditions
(exercisable at 1.10 cents by 31 December 2023)
Employee Options, service based vesting conditions
(exercisable at 1.25 cents by 9 March 2026)
Employee Options, service based vesting conditions
(exercisable at 1.25 cents by 29 April 2026)
5,000,000
40,000,000
15,300,000
Subsequent to 30 June 2022, as approved at the General Meeting on 25 August 2022, the following unlisted options
were issued to:
Mr David Hutton, service based vesting conditions
(exercisable at 1.54 cents by 16 June 2026)
Mr Ian McCubbing, service based vesting conditions
(exercisable at 1.52 cents by 30 August 2026)
Mr Andrew Knox, service based vesting conditions
(exercisable at 1.52 cents by 30 August 2026)
30,000,000
15,000,000
10,000,000
The balance of unlisted Options over shares as at the date of this report is 115,300,000 as outlined above.
No shares were issued as a result of the exercise of an Option during the year.
The holders of Options do not have the right, by virtue of the option, to participate in any share issue, dividend or
voting of members of the Company.
26 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
Indemnifying Officers
Non-Audit Services
The Company maintains a Directors and Officers
insurance policy. In accordance with commercial practice,
the insurance policy prohibits disclosure of the terms
of the policy, including the nature of the liability insured
against and the amount of the premium.
The Company has not otherwise, during or since the
financial year, indemnified or agreed to indemnify an
Officer or auditor of the Company or any related body
corporate against a liability incurred as such an Officer
or auditor.
Indemnity and Insurance of Auditor
The company has not, during or since the end of the
financial year, indemnified or agreed to indemnify the
auditor of the company or any related entity against a
liability incurred by the auditor.
During the financial year, the company has not paid a
premium in respect of a contract to insure the auditor of
the company or any related entity.
Proceedings on Behalf of the Company
No person has applied for leave of Court to bring
proceedings on behalf of the Company or intervene in
any proceedings to which the Company is a party for the
purpose of taking responsibility on behalf of the Company
for all or any part of those proceedings.
The Company was not a party to any such proceedings
during the financial year.
Auditor
RSM Australia Partners continues in office in accordance
with section 327 of the Corporations Act 2001.
Auditor’s Independence Declaration
The auditor independence declaration required under
Section 307C of the Corporations Act 2001 forms part
of this Directors’ Report and is included on page 28.
RSM Australia Partners provided non-audit services
during the financial year with the provision of taxation
advice relating to the Earn-in Agreements and JMEI
credit scheme.
The board has considered the non-audit services
provided during the year by the auditor and in
accordance with written advice provided by
resolution of the audit committee, is satisfied that
the provision of those non-audit services during the
year by the auditor is compatible with, and did not
compromise, the auditor independence requirements
of the imposed by the Corporations Act 2001 for the
following reasons:
– all non-audit services were subject to the corporate
governance procedures adopted by the Group
and have been reviewed by the audit committee
to ensure they do not impact the integrity and
objectivity of the auditor; and
– the non-audit services provided do not undermine
the general principles relating to auditor
independence as set as they did not involve
reviewing or auditing the auditor’s own work, acting
in a management or decision-making capacity for
the Group, acting as an advocate for the Group or
jointly sharing risks and rewards.
Details of the amounts paid to the auditor of the
Group, RSM, and its network firms for audit and non-
audit services provided during the year are set out in
Note 8 of the Financial Statements.
Signed in accordance with a resolution of the Board
of Directors.
Chairman
Ian McCubbing
Dated this
30th day of September 2022
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 27 AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Rimfire Pacific Mining Limited and its controlled entity for
the year ended 30 June 2022, I declare that, to the best of my knowledge and belief, there have been no
contraventions of:
(i)
(ii)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
R J MORILLO MALDONADO
Partner
30 September 2022
Melbourne, Victoria
28 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders Financial Statements
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
NOTES TO THE FINANCIAL STATEMENTS
General Information
Statement of Significant Accounting Policies
Critical Accounting Judgements, Estimates and Assumptions
Revenue and Other Income
Depreciation
Loss for the Financial Year
Income Tax Expense
Auditor’s Remuneration
Earnings per Share
1
2
3
4
5
6
7
8
9
10 Cash and Cash Equivalents
11 Trade and Other Receivables
12 Financial Asset
13 Property, Plant and Equipment
14 Exploration and Evaluation Expenditure
15 Trade and Other Payables
16 Contract Liabilities
17 Provisions
18 Contributed Equity
19 Controlled Entity
20 Parent Entity Information
21 Commitments and Contingent Liabilities
22 Contingent Liabilities and Contingent Assets
23 Segment Reporting
24 Key Management Personnel Disclosures
25 Related Party Details
26 Cash Flow Information
27 Financial Risk Management
28 Events Occurring after the Reporting Period
29 Shares Issued Under Option and Unissued Shares Under Option
30 Company Details
30
31
32
33
34
34
43
43
43
44
44
45
45
46
46
46
47
48
49
49
49
50
51
52
52
53
53
53
54
54
55
57
57
57
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 29
Financial Statements
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 30 June 2022
Revenue from continuing operations
Other Income
Expenses:
Employee benefits expense
Non-executive directors’ fees
Professional costs
Occupancy costs
Marketing expense
Depreciation
Insurance
Share-based payment expense
Share registry and listing expenses
Other administration expenses
Loss before income tax
Income tax benefit
Loss after income tax
Other comprehensive income
Total comprehensive loss for the year
Consolidated Entity
Note
30 Jun 2022
30 Jun 2021
4
4
5
6
7
$
300,000
4,988
(470,581)
(167,536)
(181,010)
(9,523)
(42,476)
(56,269)
(23,888)
(71,895)
(64,282)
(130,482)
(912,954)
-
$
600,000
50,455
(370,167)
(140,000)
(212,653)
(8,488)
(41,971)
(37,003)
(22,657)
23,224
(84,687)
(118,772)
(373,704)
-
(912,954)
(373,704)
-
-
(912,954)
(373,704)
Loss per share for the year attributable to the members of Rimfire Pacific Mining Limited
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
9
9
(0.05)
(0.05)
(0.02)
(0.02)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction
with the accompanying notes
30 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
Consolidated Statement of Financial Position as at 30 June 2022
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Financial asset
Other current assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Trade and other receivables - non current
Property, plant and equipment
Right of use asset
Exploration and evaluation costs
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provisions
Contract liability
Lease Liability - Current
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Provisions (N/C)
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
Note
30 Jun 2022
30 Jun 2021
Consolidated Entity
$
$
10
11
12
11
13
13
14
15
17
16
17
18
18
271,511
1,567,471
78,115
325,353
14,802
173,312
370,511
3,215
689,781
2,114,509
160,000
361,873
-
207,400
407,489
9,752
15,065,837
14,623,370
15,587,710
15,248,011
16,277,491
17,362,520
149,480
50,184
390,901
-
590,565
322,443
88,178
412,273
9,227
832,121
11,670
11,670
14,084
14,084
602,235
846,205
15,675,256
16,516,315
35,156,698
35,156,698
84,243
12,348
(19,565,685)
(18,652,731)
15,675,256
16,516,315
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 31
Financial Statements
Consolidated Statement of Changes in Equity for The Year Ended 30 June 2022
Consolidated Entity
Contributed
equity
$
Reserves
$
Accumulated
losses
$
Total
$
Balance at 1 July 2021
Loss after income tax expense for the year
35,156,698
-
12,348
-
(18,652,731)
(912,954)
16,516,315
(912,954)
Other comprehensive income for the year,
net of tax
-
-
-
-
Total comprehensive income for the year
35,156,698
12,348
(19,565,685)
15,603,361
Transaction with owners in their capacity as owners:
Shares issued during the year
Share-based payment
Transaction costs related to share issues
-
-
-
-
71,895
-
-
-
-
-
71,895
-
Balance at 30 June 2022
35,156,698
84,243
(19,565,685)
15,675,256
Balance at 1 July 2020
Loss after income tax expense for the year
32,575,943
-
110,702
-
(18,279,027)
(373,704)
14,407,618
(373,704)
Other comprehensive income for the year,
net of tax
-
-
-
-
Total comprehensive income for the year
32,575,943
110,702
(18,652,731)
14,033,914
Transaction with owners in their capacity as owners:
Shares issued during the year
2,690,130
-
Share-based payment
-
(98,354)
Transaction costs related to share issues
(109,375)
-
-
-
-
2,690,130
(98,354)
(109,375)
Balance at 30 June 2021
35,156,698
12,348
(18,652,731)
16,516,315
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes
32 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
Consolidated Statement of Cash Flows for the Year Ended 30 June 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Receipts from administration fee charged to GPR Earn-in
Interest received
Government grants and tax incentives
Interest on lease liability
Net cash used in operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Payment for mining tenement exploration
Reimbursements of exploration expenditure charged to GPR Earn-in
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Transaction costs associated with share issues
Repayment of lease liability
Net cash provided by financing activities
Net Increase in cash held
Cash at beginning of the year
Cash at end of the year
Consolidated Entity
Note
30 Jun 2022
30 Jun 2021
$
$
(1,285,432)
(1,095,453)
330,000
660,000
111
-
(154)
455
50,000
(726)
(955,475)
(385,723)
(2,125,266)
(1,652,233)
1,796,306
(1,990)
-
918,247
(127,920)
10,192
(330,950)
(851,715)
-
-
(9,535)
(9,535)
2,615,000
(109,375)
(11,509)
2,494,115
(1,295,960)
1,256,677
1,567,471
310,794
271,511
1,567,471
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 33
Notes to the Financial Statements
Note 1 General Information
Rimfire Pacific Mining Limited (the Company) is a Company limited by shares incorporated and registered in
Australia. The address of the Company’s registered office is shown on page 66.
Rimfire Pacific Mining Limited is a listed public company, incorporated and domiciled in Australia.
These financial statements cover the economic entity of Rimfire Pacific Mining Limited and its controlled
entities (referred together as “the Consolidated entity”).
The principal activities and the nature of the Consolidated entity’s operations are explained on page 13.
The functional currency and presentation currency of the Consolidated entity is Australian dollars.
Note 2 Statement of significant accounting policies
The financial report is a general purpose financial report that has been prepared in accordance
with Australian Accounting Standards, Australian Accounting Interpretations and other authoritative
pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.
The Consolidated entity is a profit orientated entity for the purpose of the financial report.
The principal activities of the Consolidated entity during the financial year were the exploration and
development of economic mineral deposits.
The financial report of Rimfire Pacific Mining Limited and its controlled entities, complies with International
Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board.
The following is a summary of the material accounting policies adopted by the economic entity in the
preparation of the financial report. The accounting policies have been consistently applied, unless
otherwise stated.
The financial report was authorised for issue by Directors on the date of signing the Directors’ Declaration.
The financial report is presented in Australian dollars, has been prepared on an accruals basis and is
based on historical costs.
Going Concern
The financial statements have been prepared on a going concern basis, which contemplates continuity
of normal business activities and the realisation of assets and discharge of liabilities in the normal course
of business.
As disclosed in the financial statements, the Consolidated entity incurred a loss of $912,954 and had net
cash outflows from operating activities of $955,475 for the year ended 30 June 2022. As at that date,
the Consolidated entity current assets exceeded its current liabilities by $99,216 and had net assets of
$15,675,256. These factors indicate a material uncertainty which may cast significant doubt as to whether
the Consolidated entity will continue as a going concern and therefore whether it will realise its assets and
extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.
The Directors have reviewed the cash flow forecast and conclude that the Consolidated entity will be able to
pay its debts as and when they become due and payable for a minimum of 12 months from the signing date
of the financial statements. The cash flow forecast reviewed by the directors considers the following matters:
• After 30 June 2022, the Consolidated entity has received $620,000, in connection with the binding Heads
of Agreement dated 29 June 2022 between the Company and Golden Plains Resources Pty Ltd (‘GPR’)
relating to the Fifield Project Earn-in (refer to Note 14 and 28);
• Further $2.9M in cash inflows are expected to be received by November 2022, in accordance with the
abovementioned agreement (refer to Note 14);
• The Consolidated entity also has the ability to defer or reduce operating activities / expenses and
exploration expenditure if necessary, whilst meeting minimum tenement expenditure commitments, and
34 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
• Should GPR not meet their commitments the Consolidated entity will raise additional funds through a
number of external funding alternatives available to it including a farm-out/sell down of exploration licences
and/or raising of additional equity funds.
The Consolidated entity has a history of successfully undertaking capital raisings during the last 15 years and
has entered into significant partnerships in the past.
The Consolidated entity has also received an additional $250,000 in connection with the Avondale Project
Earn-in since 30 June 2022.
Accordingly, the Directors believe that the Consolidated entity will be able to continue as a going concern
and that it is appropriate to adopt the going concern basis in the preparation of the financial report.
The financial report does not include any adjustments relating to the amounts or classification of recorded
assets or liabilities that might be necessary if the Consolidated entity does not continue as a going concern.
Accounting Policies
a. Significant Judgements and Key Assumptions
Judgements made in applying accounting policies that have the most significant effect on the amounts
recognised in the financial statements concern the information regarding capitalised exploration
expenditure for exploration and mining licences. In particular, the judgement that there is insufficient
information available to make a reasonable assessment of the existence or otherwise of economically
recoverable reserves.
b. Parent Entity Information
In accordance with the Corporations Act 2001, these financial statements present the results of the
consolidated entity only. Supplementary information about the parent entity is disclosed in Note 20.
c. Principles of Consolidation
The Consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Rimfire
Pacific Mining Limited as at 30 June 2022 and the results of all subsidiaries for the year then ended.
Rimfire Pacific Mining Limited and its subsidiaries together are referred to in these financial statements as
the ‘Consolidated entity’.
Subsidiaries are all those entities over which the Company has control. The Company controls an entity
when is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully
Consolidated from the date on which control is transferred to the Consolidated entity. They are de-
consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the
Consolidated entity 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 Consolidated entity.
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.
Where the Consolidated entity 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 Consolidated entity 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.
d. Revenue Accounting Policy
Management fees is recognised when the Company’s performance obligation has been met and is based
on a fixed price.
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 35
Notes to the Financial Statements
e. Income Tax
The charge for current income tax expense is based on the profit 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 balance sheet 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 the taxable profit or loss.
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
economic entity will derive sufficient future assessable income to enable the benefit to be realised and
comply with the conditions of deductibility imposed by the law.
Rimfire Pacific Mining Limited and its wholly-owned Australian subsidiaries have not formed an income
tax Consolidated group under the tax consolidation regime.
f. Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated
depreciation and impairment losses.
Property
Freehold land and buildings are measured on the cost basis, being the amounts which have been paid for
the asset.
Plant and Equipment
Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment
losses.
Depreciation is calculated on a reducing balance basis to write off the net cost of each item of plant and
equipment over its expected useful life commencing from the time the asset is ready for use.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period. Gains and losses on disposals are determined by comparing proceeds with the carrying
amount. These gains and losses are included in profit or loss.
Depreciation
The depreciable amount of property, plant and equipment, but excluding freehold land, is depreciated
using a reducing balance method commencing from the time the asset is held ready for use. Leasehold
improvements are depreciated over the shorter of either the unexpired period of the lease or the
estimated useful lives of the improvements.
The depreciation rates used for each class of depreciable assets are:
Leasehold improvements
Plant and equipment
Office furniture
Motor Vehicles
g. Leases
15%
7.5% - 30%
10% - 40%
20%
The Company assesses whether a contract is or contains a lease, at inception of the contract. The
Company recognises a right-of-use asset as property, plant and equipment and a corresponding lease
liability with respect to all lease arrangements in which it is the lessee, except for short-term leases
(defined as leases with a lease term of 12 months or less) and leases of low value assets (such as tablets
36 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
and personal computers, small items of office furniture and telephones). For these leases, the Company
recognises the lease payments as an operating expense on a straight-line basis over the term of the lease
unless another systematic basis is more representative of the time pattern in which economic benefits
from the leased assets are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily
determined, the Company uses its incremental borrowing rate.
Lease payments included in the measurement of the lease liability comprise:
• Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable;
• Variable lease payments that depend on an index or rate, initially measured using the index or rate at
the commencement date;
• The amount expected to be payable by the lessee under residual value guarantees;
• The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and
• Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to
terminate the lease.
The lease liability is presented as a separate line in the statement of financial position.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the
lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease
payments made.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease
payments made at or before the commencement day, less any lease incentives received and any
initial direct costs. They are subsequently measured at cost less accumulated depreciation and
impairment losses.
The right-of-use assets are presented as ‘Property, Plant and Equipment’ in the statement of
financial position.
The Company applies AASB 136 to determine whether a right-of-use asset is impaired and accounts for
any identified impairment loss as described in the ‘Property, Plant and Equipment’ policy (as outlined in
the financial report for the annual reporting period).
Variable rents that do not depend on an index or rate are not included in the measurement the lease
liability and the right-of-use asset. The related payments are recognised as an expense in the period in
which the event or condition that triggers those payments occurs and are included in the line “Occupancy
costs” in the profit or loss.
h. Exploration Evaluation and Development Expenditure
Exploration and evaluation expenditure incurred is capitalised at cost and includes acquisition of rights
to explore, studies, exploratory drilling, sampling and associated activities. Costs are accumulated in
respect of each identifiable area of interest. General and administrative expenditures are only included in
the measurement of exploration and evaluation costs where they relate directly to operational activities’
particular area of interest.
These costs are only carried forward where activities in the area have not yet reached a stage which
permits reasonable assessment of the existence of economically recoverable reserves and the following
conditions are satisfied:
(i) the rights to tenure of the area of interest are current; and
(ii) at least one of the following conditions is also met:
(a) the exploration and evaluation expenditures are expected to be recouped through successful
development and exploration of the area of interest, or alternatively, by its sale; or
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 37
Notes to the Financial Statements
(b) exploration and evaluation activities in the area of interest have not, at the 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 in relation to, the area of interest
are continuing.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in
which the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are reclassified
to development and amortised over the life of the area according to the rate of depletion of the
economically recoverable reserves.
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.
Farm-outs - A “farm-out” occurs when the Consolidated entity assigns an interest in the reserves and
future production of a mine to another party (the “farmee”). This is often in exchange for an agreement
by the farmee to pay for both its own share of the future mine development costs and those of the
Consolidated entity. There may also be a cash payment made by the farmee to the Consolidated entity.
The Consolidated entity accounts for Farm out depends on the specific facts and circumstances of the
arrangement, particularly the stage of development of the underlying asset. Generally the Consolidated
entity accounts for Farm-out arrangements as follows:
1. The Consolidated entity does not record any expenditure made by the farmee on its behalf;
2. The Consolidated entity does not recognise a gain or loss on the farm-out arrangement; and
3. Any cash consideration received, excluding Fifield Earn-In management fees, is credited against
costs previously capitalised in relation to the whole interest with any excess accounted for by the
Consolidated entity as a gain on disposal.
i. Restoration, Rehabilitation, and Environmental Costs
The Company has provided an environmental bond to the NSW Department of Planning and
Environment in the form of a bank guarantee and direct deposits of bands with the NSW Department of
Planning and Environment, included in trade and other receivables ($221,900). The ultimate recoupment
of this environmental bond is dependent on the completion, to the satisfaction of the Department of
rehabilitation of the relevant site. The environmental bond reflects the estimated cost to rehabilitate
planned exploration activity over the tenements. The Company policy is to continuously rehabilitate
areas that have been affected by exploration activity when the activity has been completed.
j.
Impairment of Assets
At each reporting date, the group reviews the carrying values of its tangible and intangible assets to
determine whether there is any indication that those assets have been impaired. If such an indication
exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell
and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value
over its recoverable amount is expensed to the Profit or Loss.
Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates
the recoverable amount of cash-generating unit to which the asset belongs.
k. Employee Benefits
Provision is made for the Company’s liability for employee benefits arising from services rendered
by employees to reporting date. Employee benefits expected to be wholly settled within one year
including entitlements arising from wages and salaries and annual leave, have been measured at the
amounts expected to be paid when the liability is settled plus related on-costs. Other employee benefits
payable later than one year have been measured at the present value of the estimated future cash
outflows to be made for those benefits. Contributions are made by the Consolidated entity to employee
superannuation funds and are charged as expenses when incurred.
38 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
l. 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 classified as current when: it is either expected to be realised or intended to be sold or
consumed in the consolidated entity’s normal operating cycle; it is held primarily for the purpose of
trading; it is expected to be realised within 12 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 12 months
after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity’s
normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12
months after the reporting period; or there is no unconditional right to defer the settlement of the liability
for at least 12 months after the reporting period. All other liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
m. Cash and Cash Equivalents
Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call
and those highly liquid investments with an original maturity of three months or less, which are held for
the purpose of meeting short term cash commitments rather than for investment purposes, and which are
readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.
For the purpose of the Consolidated Statement of Cash Flows, cash includes cash on hand and deposits
with banks or financial institutions net of bank overdrafts.
n. Trade and Other Receivables
Trade receivables and other receivables are recorded at amounts due less any allowance for expected
credit losses.
o. Trade and Other Payables
Trade payables and other payables are recognised when the Consolidated entity becomes obliged to
make future payments resulting from the purchase of goods and services. Payments are normally settled
on 30 day terms.
p. Contract Liabilities
Contract liabilities represent the Consolidated entity’s obligation to transfer goods or services to a
customer and are recognised when a customer pays consideration, or when the Consolidated entity
recognises a receivable to reflect its unconditional right to consideration (whichever is earlier) before the
consolidated entity has transferred the goods or services to the customer.
q. Financial Assets and Liabilities
Recognition
AASB 9 Financial Instruments addresses the classification, measurement and derecognition of financial
assets and financial liabilities, introduces new rules for hedge accounting and new impairment model for
financial assets.
Financial Assets and Liabilities
Financial assets and financial liabilities are recognised when the Consolidated entity becomes a party to
the contractual provisions of the instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from
the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction
costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through
profit or loss are recognised immediately in profit or loss.
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 39
Notes to the Financial Statements
Fair Value Hierarchy
The Consolidated entity is required to classify all assets and liabilities, measured at fair value, using
a three level hierarchy, based on the lowest level 1 input that is significant to the entire fair value
measurement, being:
Level 1 Measurements based on quoted prices (unadjusted) in active markets for identical assets or
liabilities that the entity can access at the measurement date.
Level 2 Measurements based on inputs other than quoted prices included in Level 1 that are observable
for the asset or liability, either directly or indirectly
Level 3 Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one
or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of
observable market data. If all significant inputs required to measure fair value are observable, the asset or
liability is included in Level 2. If one or more significant inputs are not based on observable market data,
the asset or liability is included in Level 3. The Consolidated entity would change the categorisation within
the fair value hierarchy only in the following circumstances:
(i)
if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or
vice versa; or
(ii) if significant inputs that were previously unobservable (Level 3) became observable (Level 2) or
vice versa.
When a change in the categorisation occurs, the Consolidated entity recognises transfers between levels
of the fair value hierarchy (i.e. transfers into and out of each level of the fair value hierarchy) on the date
the event or change in circumstances occurred.
Derecognition
The Consolidated entity derecognises a financial asset only when the contractual rights to the cash
flows from the asset expire, or when it transfers the financial asset and substantially all the risks and
rewards of ownership of the asset to another entity. If the Consolidated entity neither transfers nor retains
substantially all the risks and rewards of ownership and continues to control the transferred asset, the
Consolidated entity recognises its retained interest in the asset and an associated liability for amounts it
may have to pay. If the Consolidated entity retains substantially all the risks and rewards of ownership of
a transferred financial asset, the Consolidated entity continues to recognise the financial asset and also
recognises a collateralised borrowing for the proceeds received.
On derecognition of a financial asset measured at amortised cost, the difference between the asset’s
carrying amount and the sum of the consideration received and receivable is recognised in profit or
loss. On derecognition of an investment in equity instrument which the Consolidated entity has elected
on initial recognition to measure at FVTOCI, the cumulative gain or loss previously accumulated in the
investments revaluation reserve is not reclassified to profit or loss, but is transferred to retained earnings.
The Consolidated entity derecognises financial liabilities when, and only when, the Consolidated entity’s
obligations are discharged, cancelled or have expired. The difference between the carrying amount of the
financial liability derecognised and the consideration paid and payable is recognised in profit and or loss.
Impairment
The Consolidated entity recognises a loss allowance for expected credit losses (ECL) on financial assets
that are measured at amortised cost or at fair value through other comprehensive income (FVTOCI). The
amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since
initial recognition of the respective financial instrument.
The Consolidated entity always recognises lifetime ECL for trade receivables. The expected credit losses
on these financial assets are estimated using a provision matrix based on the Consolidated entity’s
historical credit loss experience, adjusted for factors that are specific to the debtors, general economic
40 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
conditions and an assessment of both the current as well as the forecast direction of conditions at the
reporting date, including time value of money where appropriate.
For all other financial instruments, the Consolidated entity recognises lifetime ECL when there has been
a significant increase in credit risk since initial recognition. However, if the credit risk on the financial
instrument has not increased significantly since initial recognition, the Consolidated entity measures the
loss allowance for that financial instrument at an amount equal to 12 month ECL.
Lifetime ECL represents the expected credit losses that will result from all possible default events over the
expected life of a financial instrument. In contrast, 12 month ECL represents the portion of lifetime ECL
that is expected to result from default events on a financial instrument that are possible within 12 months
after the reporting date.
r. Provisions
Provisions are recognised when the Consolidated entity has a present obligation (legal or constructive) as
a result of a past event, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
Where the Consolidated entity expects some or all of a provision to be reimbursed, for example
under an insurance contract, the reimbursement is recognised as a separate asset but only when the
reimbursement is virtually certain. The expense relating to any provision is presented in the Profit or Loss
net of any reimbursement.
If the effect of the time value of money is material, provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current market assessments of the time value of money
and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.
s. Income Recognition
Interest Revenue
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to
the financial assets.
Government Grants
The Consolidated entity recognises stimulus package from the Australian Taxation Office (“ATO”) and
from other government entities as government grants when there is reasonable assurance that the
entity will comply with the conditions attached to them, and the grant will be received. The amount is
recognised as other income in profit or loss.
All revenue is stated net of the amount of goods and services tax (GST).
t. Goods and Services Tax (GST)
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.
u. Earnings Per Share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Rimfire Pacific
Mining 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 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.
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 41
Notes to the Financial Statements
v. Segment Reporting
Operating segments are presented using the ‘management approach’, where the information presented
is on the same basis as the internal reports provided to the Chief Operating Decision Makers (‘CODM’).
The CODM is responsible for the allocation of resources to operating segments and assessing their
performance. Rimfire Pacific Mining Limited does not have any separately reportable segments.
w. 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.
x. Equity Settled Compensation
Equity-settled transactions are awards of shares, or options over shares, that are provided to
employees or contractors in exchange for the rendering of services. Equity-settled share-based
compensation benefits have been provided to employees in the current financial year.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is
independently determined using Black-Scholes option pricing 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 Consolidated entity receives the services that entitle the employees or contractors to receive
payment. No account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase
in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the
grant date fair value of the award, the best estimate of the number of awards that are likely to vest
and the expired portion of the vesting period. The amount recognised in profit or loss for the period
is the cumulative amount calculated at each reporting date less amounts already recognised in
previous periods.
y. Adoption of New and Revised Standards
The Consolidated entity has adopted all of the new and revised Standards and Interpretations issued by
the Australian Accounting Standards Board that are relevant to their operations and are effective for the
current financial reporting period, being the year end 30 June 2022.
Standards and Interpretations issued but not yet effective
Australian Accounting Standards and Interpretations have recently been issued or amended but are
not yet effective have not been adopted by the Consolidated entity for the year ended 30 June 2022.
Management has reviewed the likely impact of the adoption of these standards and interpretations on the
Consolidated entity. The Consolidated entity believes that the impact of the following new standards and
interpretations will not have an impact:
• AASB 2020-1: Amendments to Australian Accounting Standards – Classification of Liabilities as Current
or Non-Current and AASB 2020-6 Amendments to Australian Accounting Standards – Classification of
Liabilities as Current or Non-current – Deferral of Effective Date (applicable to annual reporting periods
beginning on or after 1 January 2022).
• AASB 2020-3: Amendments to Australian Accounting Standards – Annual Improvements 2018-2020
and Other Amendments (applicable to annual reporting periods beginning on or after 1 January 2022).
• AASB 2021-2: Amendments to Australian Accounting Standards – Disclosure of Accounting Policies
and Definition of Accounting Estimates (applicable to annual reporting periods beginning on or after
1 January 2023).
• AASB 2021-5: Amendments to Australian Accounting Standards – Deferred Tax related to Assets and
Liabilities arising from a single transaction.
42 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
Note 3. 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.
Share-based payment transactions
The consolidated entity 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
using either the Binomial or Black-Scholes model taking into account the terms and conditions upon which
the instruments were granted. The accounting estimates and assumptions relating to equity-settled share-
based payments would have no impact on the carrying amounts of assets and liabilities within the next
annual reporting period but may impact profit or loss and equity. Refer to Note 18c for further information.
Note 4. Revenue and Other Income
REVENUE
Administration fee
OTHER INCOME
Interest
ATO Covid Schemes
Sundry Income
TOTAL OTHER INCOME
Note 5. Depreciation
OTHER INCOME
Depreciation
Amortisation of Right of Use Asset
TOTAL DEPRECIATION AND AMORTISATION
Consolidated Entity
2022
$
2021
$
300,000
600,000
111
-
4,877
4,988
455
50,000
0
50,454
Consolidated Entity
2022
$
46,517
9,752
56,269
2021
$
26,275
10,727
37,003
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 43
Notes to the Financial Statements
Note 6.
Loss for the Financial Year
The net loss for the financial year has been arrived at after charging
the following:
EXPENSES
Employee benefits expense
Marketing expense
Non-executive directors' fees
Payments for lease liabilities
Interest of lease liabilities
Depreciation
Note 7.
Income Tax Expense
The prima facie tax/(benefit) on loss before tax is reconciled to the
income tax as follows:
Prima facie tax/(benefit) on loss before tax at 25% (2021: 26%)
Add: Tax effect of:
- non-allowable items
- net current year tax losses not recognised, temporary
differences and deductible exploration expenditure.
Less: Tax effect of:
- Research and Development tax offset income
- capitalised share placement costs
Income tax benefit/(expense) attributable to loss
The deferred tax asset arising from tax losses has not been recognised
as an asset because recovery is not probable:
Tax losses carried forward
Temporary differences – exploration costs
Temporary differences – other
Net Deferred tax asset not recognised
Balance of franking account at year end
Consolidated Entity
2022
$
2021
$
470,581
42,476
167,536
-
154
56,269
346,943
41,971
140,000
1,753
726
37,003
Consolidated Entity
2022
$
(228,239)
2021
$
(97,163)
-
-
233,707
5,469
108,392
11,435
-
-
(5,469)
(11,229)
-
-
6,416,031
6,473,435
(3,766,459)
(3,802,076)
160,998
114,915
2,810,570
2,703,319
-
-
Potential deferred tax assets attributable to tax losses carried forward and temporary differences have not
been brought to account because Directors do not believe realisation of the deferred tax assets is probable.
These benefits will only be obtained if:
(a) the company derives future assessable income of a nature and of an amount sufficient to enable the
benefit from the deduction for the loss to be realised;
(b) the company continue to comply with the conditions for deductibility imposed by law, and
(c) no changes in tax legislation adversely affect the company in realizing the benefit from the deductibility
for the loss.
44 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
Note 8. Auditor’s Remuneration
Remuneration of the auditor for:
- auditing or reviewing the financial reports
- other services
Note 9. Earnings per Share
a. Reconciliation of Earnings to Loss
Loss used in the calculation of basic EPS
Loss used in the calculation of dilutive EPS
Consolidated Entity
2022
$
37,732
6,020
43,752
2021
$
36,980
14,197
51,177
Consolidated Entity
2022
$
(912,954)
(912,954)
2021
$
(373,704)
(373,704)
b. Weighted average number of ordinary shares outstanding
during the year used in calculation of basic EPS
1,806,244,735
1,806,244,735
Potential ordinary shares
-
-
Weighted average number of ordinary shares outstanding during the
year used in calculation of dilutive EPS
1,806,244,735
1,746,295,297
c. Classification of securities
Share options are anti-dilutive and securities have not been
classed as potential ordinary shares and are not included in the
determination of dilutive EPS.
d. Ordinary shares issued between reporting date and time of
completion of the financial report
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
-
-
(0.05)
(0.05)
-
-
(0.02)
(0.02)
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the
company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares
have no par value and the company does not have a limited amount of authorised capital..
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 45
Notes to the Financial Statements
Note 10. Cash and Cash Equivalents
Cash at bank and on hand
Short term deposits
Consolidated Entity
2022
$
271,511
-
2021
$
1,567,471
-
271,511
1,567,471
Cash at the end of the financial year as shown in the Consolidated Statement of Cash Flows
is reconciled to items in the Consolidated Statement of Financial Position as follows:
Cash at bank
Term deposits with maturity of 3 months or less
271,511
1,567,471
-
-
271,511
1,567,471
Refer to note 27 for risk exposure for cash and cash equivalents
Note 11. Trade and Other Receivables
OTHER RECEIVABLES
CURRENT
Security deposits & other current assets
Interest receivable
Other receivables
NON-CURRENT
Security deposits
Consolidated Entity
2022
$
77,888
-
227
78,115
2021
$
6,388
-
166,924
173,312
160,000
207,400
Refer to Note 27 for the risk exposure analysis for receivables.
At the reporting date, no receivables were past due or impaired.
Security deposits of $50,000 are held in support of a bank guarantee issued in favour of the NSW
Department of Planning and Environment, with the remaining $171,900 being held directly with the NSW
Department of Planning and Environment.
Note 12. Financial Asset
CURRENT
Fifield Earn-In Account
Avondale Earn-In Account
Consolidated Entity
2022
$
165,065
160,288
325,353
2021
$
270,511
100,000
370,511
Under the GPR Earn-in arrangements, forecast exploration expenditure is paid through a cash call notice
process and is paid into a separate account to Rimfire’s operating account for the payment of exploration
expenditure incurred by the relevant Earn-in Area as it occurs.
The carrying amount of financial asset is assumed to be a good approximation of its fair value due to it
being planned to be expended on exploration activity in the short term.
46 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
Note 13. Property, Plant and Equipment
LAND
Freehold land
At cost
TOTAL LAND
PLANT AND EQUIPMENT
Plant and equipment
At cost
Accumulated depreciation
Motor vehicle
At cost
Accumulated depreciation
Office furniture
At cost
Accumulated depreciation
Leasehold improvements
At cost
Accumulated depreciation
TOTAL PLANT AND EQUIPMENT
Right of Use Asset
At cost
Accumulated depreciation
TOTAL PROPERTY, PLANT AND EQUIPMENT
Consolidated Entity
2022
$
2021
$
226,834
226,834
226,834
226,834
375,958
(292,000)
83,957
79,517
(29,840)
49,677
103,677
(102,272)
1,405
420
(420)
-
375,058
(257,834)
117,224
79,517
(18,376)
61,141
103,677
(101,387)
2,290
419
(419)
-
135,039
180,655
-
-
-
23,405
(13,653)
9,752
361,873
417,241
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 47
Notes to the Financial Statements
Note 13. Property, Plant and Equipment (cont.)
2022
Consolidated Entity:
Balance at the
beginning of year
Additions
Disposals
Depreciation expense
Depreciation capitalised
Carrying amount
at the end of year
2021
Consolidated Entity:
Balance at the
beginning of year
Additions
Disposals
Depreciation expense
Depreciation capitalised
Carrying amount at the
end of year
Freehold
Land
Motor
Vehicles
Plant and
Equipment
Office
Furniture
Right of
use asset
Leasehold
Improvements
$
$
$
$
$
226,834
61,141
117,224
2,290
9,752
-
-
-
-
-
-
900
-
(11,464)
(34,167)
-
-
-
-
(885)
-
226,834
49,677
83,957
1,405
-
-
(9,752)
-
-
226,834
-
-
-
-
14,871
53,991
-
(7,721)
-
93,565
62,301
(22,921)
(15,721)
-
5,124
20,479
-
-
-
-
(2,834)
(10,727)
-
-
226,834
61,141
117,224
2,290
9,752
$
-
-
-
-
-
-
-
-
-
-
-
-
TOTAL
$
417,241
900
-
(56,268)
-
361,873
360,873
116,293
(22,921)
(37,004)
-
417,241
Note 14 Exploration & Evaluation Costs Carried Forward
NON-CURRENT
Exploration Expenditure
Costs carried forward in respect of areas of interest in:
2022
$
2021
$
– exploration and evaluation phases
15,065,837
14,623,370
Opening balance
Additional expenditure
Reimbursed exploration expenditure
Closing balance
14,623,370
13,904,467
2,027,716
1,637,749
(1,585,249)
(918,846)
15,065,837
14,623,370
The Consolidated entity currently has several projects in the Lachlan Orogen, two of which are being
funded by Rimfire’s exploration partner - Golden Plains Resources (GPR): Avondale Project (GPR earning
up to 75%) & Fifield Project (GPR earning up to 60%).
On 29 June 2022, Rimfire and GPR signed a binding Heads of Agreement to vary and simplify the terms
of the current Fifield Project Earn-in whereby GPR will pay $2M cash (comprising $1.5M directly to Rimfire
for its own use and $0.5M for additional expenditure under the earn-in) which is in addition to remaining
exploration payments of $1.5M due under the current Fifield Earn In agreement. When all payments are
completed GPR’s interest in the resulting Joint Venture will be 60% after expending a total of $6.5M with
$4.1M spent directly on the exploration activity and $2.4M being paid directly to the Consolidated entity.
The Consolidated entity’s current interests are protected under the relevant agreements until GPR makes
the abovementioned remaining payments.
48 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
Note 15. Trade and Other Payables
CURRENT
Trade creditors
Sundry creditors and accrued expenses
GST Collected
Note 16. Contract Liabilities
Amounts related to Golden Plains Resources Earn-In Agreement
Total contract liabilities
Consolidated Entity
2022
$
61,626
94,270
(6,416)
2021
$
170,291
98,035
54,117
149,480
322,443
Consolidated Entity
2022
$
390,901
390,901
2021
$
412,273
412,273
The contract liability is the sum of contributions made by GPR to the respective Earn-In accounts less
amounts expended on exploration and evaluation expenditure.
Note 17. Provisions
CURRENT
Employee benefits
NON-CURRENT
Employee benefits
Consolidated Entity
2022
$
50,184
2021
$
88,178
11,670
14,084
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 49
Notes to the Financial Statements
Note 18 Contributed Equity
1,806,244,735 (2021: 1,806,244,735) fully paid ordinary shares
a. Ordinary shares
At the beginning of the reporting period
Shares issued during the year
Net shares and costs relating to shares issued during the year
Transaction costs relating to share issues
At reporting date
At the beginning of reporting period
Shares issued during year
Total shares issued during the year
At reporting date
RESERVES
Share based payments
b. Capital Management
Consolidated Entity
2022
$
35,156,698
2021
$
35,156,698
35,156,698
35,156,698
35,156,698
32,575,943
-
-
2,690,130
(109,375)
35,156,698
35,156,698
2022
No.
2021
No.
1,806,244,734
1,584,571,527
-
221,673,208
1,806,244,734
1,806,244,734
Consolidated Entity
2022
$
84,243
2021
$
12,348
Management controls the capital of the Consolidated entity in order to ensure that the Consolidated
entity remains a going concern as a primary objective and is able to deliver suitable exploration, as the
circumstances allow. This is done, to the best of Management’s ability in the prevailing business and
economic circumstances.
The Consolidated entity is not subject to any externally imposed capital requirements.
50 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
c. Share based payments & options
Grant
date
Expiry
date
Exercise
price
Balance
at start of
the year
Granted Exercised
30 April 2019
Various*
Various* 30,000,000 30,000,000
9 March 2022
Various*
Various*
29 April 2019
Various*
Various*
- 40,000,000
- 15,300,000
-
-
-
Expired/
Forfeited/
Other *
Balance
at 30 June
2022
25,000,000
5,000,000
-
40,000,000
-
15,300,000
* Various Tranches granted during FY2019 and FY2022, vesting conditions, exercise prices and volume
of remaining tranche available at balance date detailed in the next table.
The fair value of the Options is estimated at the date of grant using the Black-Scholes model, taking into
account the terms and conditions upon which the Options were granted.
Unlisted Options
Employee Options, performance based vesting conditions
(exercisable at 1.10 cents by 31 December 2023)
No.
5,000,000
Employee Options, performance based vesting conditions
(exercisable at 1.25 cents by 9 March 2026)
40,000,000
Employee Options, performance based vesting conditions
(exercisable at 1.25 cents by 29 April 2026)
15,000,000
Note 19. Controlled Entity
Parent Entity
Rimfire Pacific Mining Limited
Subsidiaries of Rimfire Pacific Mining Limited
Axis Mining NL
Rimfire Sales Agent Fifield Project Pty Ltd
Rimfire Sales Agent Avondale Project Pty Ltd
Country of
Incorporation
Percentage Owned (%)
2022
2021
Australia
Australia
Australia
100
100
100
100
-
-
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 51
Notes to the Financial Statements
Note 20 Parent Entity Information
Current assets
Total assets
Current liabilities
Total liabilities
Issued capital
Reserves
Accumulated losses
Total equity
Loss of the parent entity
Comprehensive loss of the parent entity
2022
$
689,554
2021
$
2,114,509
16,277,264
17,362,520
589,065
600,735
830,621
844,705
35,156,698
35,156,698
84,243
12,348
(19,564,412)
(18,651,458)
15,576,529
16,517,588
(912,954)
(912,954)
(373,704)
(373,704)
Parent Entity Commitments:
All capital and operating commitments of the group have been entered into by the Parent Entity. Refer to
Note 21 for these commitments. The accounting policies of the parent entity are consistent with those of
the Consolidated entity, as disclosed in Note 1.
Note 21 Capital and Leasing Commitments
Operating Lease Commitments
Office & Other Premises
Payable
- not later than 1 year
- later than 1 year but not later than 5 years
Capital Expenditure Commitments
The Consolidated entity is committed to capital expenditure on its various
mining tenements and leases as follows:
Payable
- not later than 1 year
- later than 1 year but not later than 5 years
Consolidated Entity
2022
$
-
-
-
2021
$
9,227
-
9,227
2022
$
2021
$
267,640
924,015
484,438
629,000
1,191,655
1,113,438
52 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
Note 22 Contingent Liabilities and Contingent Assets
There are no contingent liabilities or contingent assets at 30 June 2022 (30 June 2021: Nil).
Note 23 Segment Reporting
Business and Geographical Segments
The Consolidated entity operates predominantly in one business and geographic segment, being mineral
exploration and prospecting within Australia.
Segment information is presented using a “management approach”, (i.e. Segment information is provided
on the same basis as information used for internal reporting purposes by the board of directors). At regular
intervals, the board is provided management information at a group level for the group’s cash position, the
carrying values of exploration permits and a group cash flow forecast for the next 12 months of operation.
On this basis, no segment information is included in these financial statements.
Note 24 Key Management Personnel Disclosures
a) Details of Directors and Key Management Personnel
Directors
The follows persons were Directors of Rimfire Pacific Mining Limited during the financial year:
Ian McCubbing (Non-Executive Chairman)
David Hutton (Non-Executive Director), appointed 15 October 2021, (Executive Director),
appointed 7 February 2022, (Managing Director and Chief Executive Officer) appointed 15 June 2022
Andrew Knox (Non-Executive Director)
Misha Collins (Non-independent, Non-Executive Director)
Craig Riley (Managing Director and Chief Executive Officer, resigned 29 April 2022)
Andrew Greville (Non-Executive Director, resigned 18 November 2021)
b) Key Management Personnel Compensation
Refer to the Remuneration Report contained in the Directors’ Report for details of the remuneration
paid or payable to each member of the Company’s key management personnel for the year ended 30
June 2022. The totals of remuneration paid to Key Management Personnel of the company during the
year are as follows:
Short-term employee benefits - Paid
Bonus - STI
Annual Leave
Post-employment benefits
Shares and Options
Termination
TOTAL
2022
$
414,088
24,341
4,264
15,118
(9,123)
44,323
2021
$
319,376
17,352
12,859
21,952
(16,013)
-
493,010
355,526
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 53
Notes to the Financial Statements
Note 25 Related Party Details
Except for the remuneration to key management personnel there were no transactions between
related parties.
Note 26 Cash Flow Information
a. Reconciliation of Cash Flow from Operations with Loss after Income Tax
Loss after income tax
Non-cash flows in loss
Depreciation
Loss on disposal of PPE
Expense of share-based payment
Changes in assets and liabilities relating to operations
(Increase)/decrease in prepayments
(Increase)/decrease in other receivables
Increase/(decrease) in trade creditors and accruals
Increase/(decrease) in provisions
Cash flows used in operations
Consolidated Entity
2022
$
(912,954)
2021
$
(373,704)
56,269
-
71,895
(11,587)
142,597
(261,287)
(40,408)
(955,475)
37,003
8,264
(23,224)
1,821
(46,717)
(23,471)
34,306
(385,723)
b. Reconciliation of loss after tax to the net cash flows used in financial activities.
Lease Liability
TOTAL
Balance at
1 July 2021
Financing
Cash flows
Non-cash
changes
Balance at
30 June 2022
$
9,227
9,227
$
(9,535)
(9,535)
$
308
308
$
-
-
c. Non-cash Investing Activities
There were no non-cash investing activities carried out during the year.
54 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
Note 27 Financial Risk Management
a. Financial Risk Management Objectives and Policies
The Consolidated entity’s activities expose it to a variety of financial risks: market risk (including interest
rate risk), credit risk and liquidity risk. The Consolidated entity’s overall risk management program
focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on
the financial performance of the Consolidated entity. The Consolidated entity uses different methods to
measure different types of risk to which it is exposed. These methods include sensitivity analysis in the
case of interest rate and other risks.
Risk management is carried out by senior executives under policies approved by the Board of Directors.
These policies include identification and analysis of the risk exposure of the Consolidated entity and
appropriate procedures, controls and risk limits.
MARKET RISK
Interest rate risk
The Consolidated entity’s main interest rate risk arises from its holdings of cash and cash equivalents
on deposit. Deposits held at variable rates expose the Consolidated entity to interest rate risk. Deposits
held at fixed rates expose the Consolidated entity to fair value risk. The Consolidated entity’s exposure to
interest rate risk is set out in Note 27(b).
CREDIT RISK
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in
financial loss to the Consolidated entity. The Consolidated entity exposure to credit risk is limited to
security deposits provided to landlords and other third parties. The maximum exposure to credit risk
at the reporting date to recognised financial assets is the carrying amount, net of any provisions for
impairment of those assets, as disclosed in the statement of financial position and notes to the financial
statements.
LIQUIDITY RISK
Vigilant liquidity risk management requires the Consolidated entity to maintain sufficient liquid assets
(mainly cash and cash equivalents) to be able to pay debts as and when they become due and payable.
The Consolidated entity manages liquidity risk by maintaining adequate cash reserves by continuously
monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and
liabilities.
Categorisation of financial assets
Financial assets
Cash & cash equivalents
Trade and other receivables
Financial liabilities
Trade and other payables
Lease liabilities
10
11
15
21b
Note Category
Cash and other financial assets
Trade and other receivables at
amortised cost
Carrying
value 2022
Carrying
value 2021
$
271,511
$
1,567,471
238,115
380,712
Financial liabilities measured at
amortised cost
Financial liabilities measured at fair
value
149,480
322,443
-
9,227
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 55
.
Notes to the Financial Statements
Note 27 Financial Risk Management (cont.)
b. Interest Rate Risk
The Consolidated entity’s exposure to interest rate risk, which is the risk that a financial instrument’s
value will fluctuate as a result of changes in market interest rates on classes of financial assets and
financial liabilities, is as follows:
Floating
Interest
Rate
$
Within
One Year
$
Within
One to
Two Years
$
Fixed Interest Rate
Maturing
Non-interest
Bearing
$
Total
$
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
Financial Assets
Cash
Receivables
271,011
1,567,471
160,000
207,400
Total Financial Assets
431,011
1,774,871
Financial Liabilities
Trade and sundry creditors
Lease liabilities
Total Financial Liabilities
Net inflow/(outflow)
on financial assets
-
-
-
-
-
-
431,011
1,774,871
c. Net Fair Values
-
-
-
-
-
-
-
-
-
-
9,227
9,227
9,227
-
-
-
-
-
-
-
-
-
-
-
-
-
500
500
271,511
1,567,971
78,115
173,312
238,115
380,712
78,615
173,812
509,626
1,948,683
149,480
322,443
149,480
322,443
-
-
-
9,227
149,480
322,443
149,480
331,670
(70,865)
(148,631)
360,146
1,617,013
The carrying amounts of financial assets and liabilities approximate the net fair value unless otherwise
stated.
d. Sensitivity Analysis
The Consolidated entity has performed a sensitivity analysis relating to its exposure to interest rate risk
at reporting date. This sensitivity analysis demonstrates the effect on the current year results and equity
which could result from a change in these risks.
Interest Rate Sensitivity Analysis
At 30 June, the effect on loss after tax and equity as a result of changes in the interest rate, with all
other variables remaining constant would be as follows:
Change in loss after tax
- Increase in interest rate by 0.5%
- Decrease in interest rate by 0.5%
Change in equity
- Increase in interest rate by 0.5%
- Decrease in interest rate by 0.5%
Consolidated Entity
2022
$
5,624
(5,624)
5,624
(5,624)
2021
$
7,116
(7,116)
7,116
(7,116)
The above changes are based on the effect of an interest rate change in relation to funds held in deposit
with financial institutions. A change in 0.5% of the interest rate is deemed reasonable by management
due to the current financial environment of low interest rates.
56 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
.
Note 28 Events Occurring after the Reporting Period
The Company held a General Meeting on 25 August 2022, where the issue of Options subject to
vesting conditions was approved by shareholders to be issued to Mr David Hutton (30,000,000),
Mr Ian McCubbing (15,000,000) and Mr Andrew Knox (10,000,000).
After 30 June 2022, the Consolidated entity has received $620,000 in connection with the modified
Fifield Project Earn-in Agreement with GPR (refer to Note 14) and has also received $250,000
relating to exploration payments on the Avondale Project Earn-in.
No other matters or circumstances which have arisen since the end of the financial year have
significantly affected or may significantly affect the operations of the Consolidated entity, the
results of those operations, or the state of affairs of the Consolidated entity in future financial
years.
The impact of the Coronavirus (Covid-19) pandemic is ongoing and it is not practicable to
estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly
developing and is dependent on measures imposed by the Australian Government and other
countries, such as maintaining social distancing requirements, quarantine, travel restrictions and
any economic stimulus that may be provided.
No other matters or circumstances which have arisen since the end of the financial year have
significantly affected or may significantly affect the operations of the Consolidated entity, the
results of those operations, or the state of affairs of the Consolidated entity in future
financial years.
Note 29 Unissued shares under option
Unlisted Options
Employee Options, performance based vesting conditions
(exercisable at 1.10 cents by 31 December 2023)
Employee Options, service based vesting conditions
(exercisable at 1.25 cents by 9 March 2026)
Employee Options, service based vesting conditions
(exercisable at 1.25 cents by 29 April 2026)
No.
5,000,000
40,000,000
15,300,000
Note 30 Company Details
The registered office and principal place of business of the Company is:
Rimfire Pacific Mining Limited
St Kilda Rd Towers
Suite 142, 1 Queens Road
Melbourne VIC 3004
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 57
Directors’ Declaration
In the directors’ opinion:
1. the attached financial statements and notes and the Remuneration Report thereto comply with the
Corporations Act 2001, the Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements;
2. the attached financial statements and notes thereto comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board as described in Note 2 to the
financial statements;
3. the attached financial statements and notes thereto give a true and fair view of the Consolidated entity’s
financial position as at 30 June 2022 and of its performance for the financial year ended on that date;
4. there are reasonable grounds to believe that the company will be able to pay its debts as and when they
become due and payable; and
5. The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5) of the
Corporations Act 2001.
On behalf of the directors
Chairman
Ian McCubbing
Dated this 30th day of September 2022
58 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
Independent Auditor’s Report
INDEPENDENT AUDITOR’S REPORT
To the Members of Rimfire Pacific Mining Limited
Opinion
We have audited the financial report of Rimfire Pacific Mining Limited (‘the Company’) and its controlled
entity (together referred as ‘the Consolidated entity’), which comprises the consolidated statement of
financial position as at 30 June 2022, the consolidated statement of profit or loss and other
comprehensive income, the consolidated statement of changes in equity and the consolidated statement
of cash flows for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies, and the directors' declaration.
In our opinion the accompanying financial report of the Consolidated entity is in accordance with the
Corporations Act 2001, including:
(i) giving a true and fair view of the Consolidated entity's financial position as at 30 June 2022
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 Consolidated entity 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 auditor's report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 59
Independent Auditor’s Report
Material Uncertainty Related to Going Concern
We draw attention to Note 2 in the financial report, which indicates that the Consolidated entity incurred a
loss of $912,954 and had net cash outflows from operating activities of $955,475 for the year ended 30
June 2022. As stated in Note 2, these events or conditions, along with other matters as set forth in Note
2, indicate that a material uncertainty exists that may cast significant doubt on the Consolidated entity's
ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current 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. In addition to the matter described in the Material Uncertainty Related
to Going Concern section, we have determined the matters described below to be the key audit matters
to be communicated in our report.
Carrying Value of Exploration and evaluation
costs
Refer to Note 14 in the financial statements
As at 30 June 2022 the carrying value of the
Consolidated entity’s Exploration and evaluation
asset amounted to $15m. This asset represents
93% of the total assets of the Consolidated entity.
We determined this to be a Key Audit Matter due
to the significance of this asset in the statement of
financial position and significant management
estimates and judgments involved in assessing
the carrying value in accordance with AASB 6
Exploration for and Evaluation of Mineral
Resources, including:
•
•
•
Determination of whether expenditure can
be associated with finding specific mineral
resources, and the basis on which that
expenditure is allocated to an area of
interest.
Assessing whether any indicators of
impairment are present.
Determination of whether exploration
activities have progressed to the stage at
which the existence of an economically
recoverable mineral reserve may be
determined, and if so whether the carrying
value is likely to be recouped, through either
sale, or successful development.
Our audit procedures in relation to the carrying
value of capitalised Exploration and evaluation
costs included:
•
•
•
•
Corroborating that the right to tenure of the
areas of interest was current;
Critically assessing and evaluating
management’s assessment that no indicators
of impairment existed;
Agreeing a sample of the additions to
capitalised exploration expenditure during the
year to supporting documentation, and
ensuring that the amounts were capital in
nature; and
Discussing with management and reviewing
Rimfire’s ASX announcements and other
relevant documentation, to assess
management’s determination that exploration
activities have not yet progressed to the point
where the existence or otherwise of an
economically recoverable mineral resource
may be determined.
60 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
Independent Auditor’s Report
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the consolidated entity's annual report for the year ended 30 June 2022; but does not include the
financial report and the auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report, or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Consolidated
entity 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 consolidated entity or
to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our
opinion. Reasonable assurance is a high level of assurance; but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar2_2020.pdf.
This description forms part of our auditor's report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 22 to 25 of the directors' report for the year
ended 30 June 2022.
In our opinion, the Remuneration Report of Rimfire Pacific Mining Limited for the year ended 30 June 2022,
complies with section 300A of the Corporations Act 2001.
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 61
Independent Auditor’s Report
Report on the Remuneration Report (continued)
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.
RSM AUSTRALIA PARTNERS
R J MORILLO MALDONADO
Partner
30 September 2022
Melbourne, Victoria
62 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
Land Tenure
Schedule of Exploration Licences and Mining Licences as at 30 June 2022
All Licences are held in Rimfire’s name and all are located in NSW.
Project
The Valley
Cowal
Broken Hill Cobalt
Fifield
Project Earn-in
Avondale
Project Earn-in
Broken Hill*
Lic No.
EL8542
EL8401
EL8804
EL8805
EL9397
EL5958
EL8935
M(C)L305
EL6241
EL5565
EL7058
EL7959
EL8401
EL8542
EL8543
EL8935
EL5958
Grant Date
23/3/2017
22/10/2015
31/10/2018
31/10/2018
22/4/2022
24/6/2002
3/2/2020
18/11/2004
17/5/2004
24/3/1999
1/2/2008
16/8/2012
22/10/2015
23/3/2017
27/3/2017
3/2/2020
24/6/2002
Units
5
2
44
39
91
25
21
1.9 Ha
15
4
35
7
98
27
1
19
2
Renewal Date Mineral Focus
23/03/2023
22/10/2024
31/10/2024
31/10/2024
22/4/2025
24/6/2025
3/2/2023
17/11/2019
17/5/2024
24/3/2025
1/02/2023
16/08/2023
22/10/2024
23/03/2023
27/03/2023
3/02/2023
24/6/2025
Porphry Copper / Gold
Porphry Copper / Gold
Copper / Gold
Copper / Gold
Copper / Gold
Cobalt
Gold / PGEs
Gold / PGEs
Gold / PGEs
Cobalt / PGEs / Nickel / Scandium
Cobalt / PGEs / Nickel / Scandium
Cobalt / PGEs / Nickel / Scandium
Cobalt / PGEs / Nickel / Scandium
Cobalt / PGEs / Nickel / Scandium
Cobalt / PGEs / Nickel / Scandium
Cobalt / PGEs / Nickel / Scandium
Lead / Zinc / Silver
*10% free-carry to RIM, RIM holds the licence and Perilya is the Manager
Competent Persons Declaration
The information in the report to which this statement is attached that relates to Exploration and Resource Results is based on
information reviewed and/or compiled by David Hutton who is deemed to be a Competent Person and is a Fellow of The Australasian
Institute of Mining and Metallurgy.
Mr Hutton has over 30 years’ experience in the minerals industry and is the Managing Director and CEO of Rimfire Pacific Mining.
Mr Hutton has sufficient experience that is relevant to the style of mineralisation and type of deposits 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
Exploration Results, Mineral Resources and Ore Reserves’.
Mr Hutton consents to the inclusion of the matters based on the information in the form and context in which it appears.
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 63
Additional Information
FOR PUBLICLY LISTED COMPANIES
1. The shareholder information set out below was applicable as at 26 September 2022.
(a) Distribution of Shareholders by Class – RIM Ordinary Shares
Category
(Size of Holding)
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
Total
Holders
196
155
153
897
1,034
2,435
Fully Paid
Ordinary Shares
55,391
512,609
1,305,485
44,631,233
1,759,740,017
1,806,244,735
% of
Issued Capital
0.00
0.03
0.07
2.47
97.43
100.00
(b) Unmarketable Parcels
Minimum $ 500.00 parcel at $ 0.0100 per unit
Minimum
Parcel Size
50,000
Holders
979
Units
14,560,918
(c) Unissued Shares Under Option
As at 26 September 2022 there were 115,300,000 unissued shares under option, with performance
or service based vesting conditions held by 11 option holders. All option holders hold over 100,001
unlisted options.
(d) Voting Rights
The voting rights attached to equity securities issued by the Company are set out below:
Ordinary shares
One a show of hands every member present at a meeting in person or by proxy shall have one vote and
upon a poll each share shall have one vote.
Unlisted Options
There are no voting rights attached Options.
There are no other classes of equity securities.
64 | Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
(e) 20 Largest Shareholders – RIM Ordinary Shares
Name
Number of
Ordinary Fully
Paid Shares
Held
% Held of
Issued
Ordinary
Capital
1 GOLDEN PLAINS RESOURCES PTY LTD
90,000,000
2 BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD
72,847,705
3 CITICORP NOMINEES PTY LIMITED
4 MR TREVOR DOUGLAS NAIRN
5 RESOURCE CAPITAL LIMITED
6 MR PENG WANG
7 ADRIATIC PROSPECT PTY LTD
8
TRANS GLOBAL CAPITAL LTD
9 MR CHOONG GUANG KOH
10 SUTHERLAND FAMILY COMPANY PTY LTD
11
MR GRAHAM CHARLES HOPGOOD + MRS ROBYN LESLEY HOPGOOD
12 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
13 REEF INVESTMENTS PTY LTD
14
JEM INVESTMENT FUND HOLDINGS PTY LTD
15 B DAVID NOMINEES PTY LTD
16
LAKE GRACE EXPLORATION PTY LTD
17 GREATSIDE HOLDINGS PTY LTD
18 REEF INVESTMENTS PTY LTD
19 RALSTON CORPORATION PTY LTD
20
ICE COLD INVESTMENTS PTY LTD
65,549,285
51,910,000
40,000,000
38,174,603
34,000,000
27,000,000
26,500,000
25,000,000
19,333,336
17,500,000
16,000,000
15,600,819
15,000,379
15,000,000
24,000,000
1.33
23,626,309
23,100,000
1.31
1.28
20,000,000
1.11
4.98
4.03
3.63
2.87
2.21
2.11
1.88
1.49
1.47
1.38
1.07
0.97
0.89
0.86
0.83
0.83
0.83
20 MR ANDREW SUTHERLAND + MS SALLY CAPP
15,000,000
TOTALS: Top 20 holders of FULLY PAID ORDINARY SHARES
675,142,436
37.38
TOTAL: Remaining Holders Balance
1,131,102,299
62.62
Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders / 65
Additional Information (cont.)
FOR PUBLICLY LISTED COMPANIES
2. The name of the Company Secretary is Stefan Ross.
3. The address and telephone number of the registered office and principal administrative office is:
Suite 142, 1 Queens Road
Melbourne VIC 3004
Telephone: 03 9620 5866
Website: www.rimfire.com.au
4. The register of securities is held at the following address:
Computershare Registry Services
Yarra Falls
452 Johnston St
Abbotsford VIC 3067
Telephone: 1300 850 505 (within Australia)
Overseas: + 61 3 9415 5000
5. Stock Exchange Listing
The Company’s ordinary shares are listed on the Australia Securities Exchange. The Home exchange is
Melbourne (ASX Code: Shares: RIM).
6. Restricted Securities
There are no restricted securities or security subject to voluntary escrow on issue as at 26 September 2022.
7. Share Buy-Back
There is no current on-market share buy-back.
8. Substantial Holders
No current substantial holder notices have been given to the Company.
9. Corporate Governance
The Company’s 2022 Corporate Governance Statement is available on the Company’s website at:
https://www.rimfire.com.au/site/corporate/corporate-governance
10. Annual General Meeting
Rimfire Pacific Mining Limited advises that its Annual General Meeting will be held on Thursday 24 November
2022. The time and other details relating to the meeting will be advised in the Notice of Meeting to be sent to all
shareholders and released to ASX in due course. In accordance with the ASX Listing Rules and the Company’s
Constitution, the closing date for receipt of nominations for the position of Director are required to be lodged at
the registered office of the Company by 5.00pm (AEDT) on 13 October 2022.
66 / Rimfire Pacific Mining Limited 2022 Annual Report to Shareholders
Corporate Directory
Directors:
Ian McCubbing (Chairman)
David Hutton (Managing Director & CEO)
Andrew Knox (Non-executive Director)
Misha Collins (Non-executive Director)
Greg Keane (Alternate to Ian McCubbing)
Company Secretary:
Stefan Ross
Registered Office
and Principal Place of Business:
Auditors:
Lawyers of the Company:
Suite 142, 1 Queens Road
Melbourne VIC 3004
+61 3 9620 5866
RSM Australia Pty Ltd
Level 21, 55 Collins Street
Melbourne VIC 3000
Lennox Group Pty Ltd
8 Chapel St
Cremorne VIC 3121
Share Registry:
Computershare Investor Services Pty Ltd
Yarra Falls
452 Johnston St
Abbotsford VIC 3067
Telephone: 1300 850 505 (within Australia)
Overseas: + 61 3 9415 5000
Westpac Banking Corporation
114 William Street
Melbourne VIC 3000
Australian Securities Exchange
Home Exchange – Melbourne
ASX Code: RIM
rimfire@rimfire.com.au
www.rimfire.com.au
Bankers:
Stock Exchange Listing:
Email Address:
Website Address:
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Rimfire Pacific Mining Limited
St Kilda Rd Towers
Suite 142,
1 Queens Road
Melbourne VIC 3004
www.rimfire.com.au