ANNUAL REPORT 2023
RIMFIRE PACIFIC MINING LIMITED
ABN: 59 006 911 744
/ Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders Chairman’s Report
Health, Safety, Environment And Community
Operations Report
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
Land Tenure - Schedule of Exploration Licences and Mining Licences
Additional Information for Publicly Listed Companies
Corporate Directory
Corporate Governance Statement
The Company’s 2023 Corporate Governance Statement has been released to ASX
on 28 September 2023 and is available on the Company’s website www.rimfire.com.au.
1
2
3
14
20
24
28
30
31
32
33
34
35
36
63
64
68
69
72
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / / Rimfire Pacific Mining Limited 2023 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 successfully
continued with the advancement of our Critical Minerals projects that are located within the world-renowned
Lachlan Orogen and Broken Hill Districts of New South Wales, Australia.
The companies highly experienced technical team continues to focus on making economic discoveries of nickel,
cobalt, scandium, platinum, palladium (PGEs) and copper (“Critical Minerals”), Recently there have been some
excellent exploration results delivered at the company’s 100% owned Bald Hill Cobalt Prospect (within the Green
View Cobalt Project in Broken Hill). Specifically, a 3-hole diamond drill program at Bald Hill has confirmed broad
intercepts of ore-grade cobalt mineralisation which was first encountered in drilling completed in the early 1980’s
which had received no subsequent follow up work. Increases in cobalt demand, driven by the global electrification
thematic and modern improvements to metallurgical recovery processes have greatly enhanced the value of cobalt
discoveries in this geological setting and Bald Hill is now shaping up as one of the Company’s priority prospects.
Additionally, Rimfire has conducted substantial work over the year at the Melrose and Kurrajong Prospects
(Avondale Earn In Project). Exploration at Avondale is being undertaken in conjunction with our Exploration Partner,
Golden Plains Resources Pty. Ltd. (GPR) and further strong news flow is expected over the coming months from
both prospects.
During the next twelve months the Company will focus its exploration team and financial resources towards
progressing the key prospects further along the development path as well as generating further exploration targets
across our project portfolio.
Unfortunately during the last twelve months, there were a number of corporate issues that distracted the
Company and consumed valuable financial resources and management time, and impacted the operations of our
Exploration partner GPR. Despite these distractions the Company still managed to deliver excellent exploration
results from a reduced exploration program and execute its strategy, albeit at a slower pace than planned. The
current Directors were greatly heartened by the overwhelming support received from shareholders during this
time and look forward to rewarding all stakeholders by continuing to deliver value-accretive exploration outcomes.
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 and I would like to express our sincere thanks to our supportive
existing and new shareholders of the Company.
Ian McCubbing
Chairman of the Board
Dated: 28 September 2023
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 1
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
The Company has continued to monitor and comply
with the COVID-19 preventive measures and controls
authorities require business to apply when undertaking
office or field activities.
Safety
There were no significant incidents or injuries during the
period and the performance for Minor Injuries, Medical
Treatment Injuries and Lost Time Injuries was zero.
Environment
During the start of the 2022 / 2023 Financial Year (the
“period”), prolonged heavy rainfall in Central NSW led
to flooding throughout the Company’s project area
which in turn negatively impacted on the delivery of
the Company’s field programs. Access to drill sites,
were severely compromised by the rainfall and drill
programs were delayed by several months during the
period. Upon resumption of drilling, all drill programs
were undertaken with no recorded safety and / or
environmental incidents. The Company continues
to collaborate with local landholders to ensure the
Company’s exploration work programs have minimal
impact on farming activities and rehabilitation is
completed to a high standard.
Community
In preparation for undertaking drilling activities
there has been extensive landholder or landowner
consultation and coordination meetings. During
drilling programs there is regular communication with
landholders to ensure company activities have minimal
impact on farming activities.
2 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
Operations Report
Rimfire Pacific Mining Limited (ASX: RIM) is an ASX-
listed exploration company focused on exploring for
Critical Minerals within the Broken Hill and Lachlan
Orogen districts of NSW. During the 2022 /2023
Financial Year (the “period”), Rimfire successfully carried
out exploration on both its 100% owned projects
and projects subject to earn-in agreements with its
exploration partner – Golden Plains Resources.
Rimfire’s 100% - owned Broken Hill (Green View) Cobalt
Project is located immediately west of Broken Hill with
a key target area being Railway Extension which covers
the interpreted along strike extension to Cobalt Blue
Holdings’ Railway Cobalt Deposit (COB: ASX). It also
contains another two key target areas, Bald Hill and
Staurolite Ridge where historic drilling has identified
cobalt mineralisation which (at the start of the reporting
period) had not been followed up.
In the Lachlan Orogen, Rimfire has 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
(KCC.ASX), and
• The Cowal Project - located to the east of Evolution’s
Lake Cowal Copper / Gold mine (EVN.ASX).
Rimfire also has two other projects in the Lachlan
Orogen, being funded by Rimfire’s exploration partner
- Golden Plains Resources (GPR): Avondale Project (GPR
earning up to 75%) & Fifield Project (GPR earning up to
50.1%).
• 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
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 3 Operations Report
Broken Hill Cobalt (Green View) Project (RIM 100%) – Cobalt, Copper
Rimfire has identified three high-grade cobalt targets
(Bald Hill, Staurolite Ridge, and Railway Extension) on its
100% - owned Broken Hill Cobalt (Green View) Project
following a review of historic exploration activities.
The project is prospective for the discovery of
economic critical minerals such as cobalt and copper,
and covers a sequence of metamorphosed sediments,
gneisses, and amphibolite of the Proterozoic – age
Willyama Supergroup.
Given the project’s location (20 - 30 kilometres west of
Broken Hill – Figure 1) and the similarities between the
project’s underlying geology and the Broken Hill silver
lead zinc deposits (owned separately by CBH Resources
Ltd and Perilya Limited), Rimfire’s project area has had
a long history of mineral exploration but primarily for
silver, lead, and zinc.
Modern cobalt exploration has been largely restricted
to the area of Cobalt Blue’s (ASX: COB) Broken Hill
Cobalt Project which hosts the Pyrite Hill, Big Hill,
and Railway Deposits (with a global Mineral Resource
estimate comprising 118 Mt at 859 ppm (0.08%) cobalt
equivalent (CoEq) [i.e., 687 ppm (0.07%) cobalt, 7.6%
sulphur & 133 ppm nickel] for 81.1Kt contained cobalt
using a 275 ppm CoEq cut-off (see Cobalt Blue website).
Cobalt Blue’s deposits are characterised by moderate
to steep dipping stratabound zones of disseminated
to semi-massive cobalt – bearing pyrite mineralisation.
The deposits extend over some 5 km of strike and vary
in thickness from 10 to 300 metres. The cobalt occurs
exclusively as a substitute within the pyrite crystal
lattice, and consequently, there is a strong correlation
between pyrite content and cobalt grade. Cobalt
Blue has developed a patented minerals processing
technology for treating pyrite feedstocks targeting 85-
90% recovery of cobalt from ore to product (as Mixed
Hydroxide Precipitate or Cobalt Sulphate).
Cobalt Blue’s development of new processing
technology for pyrite – hosted cobalt mineralisation
is a significant development for Broken Hill and will
potentially enable the development of other cobalt
deposits throughout the district that were previously
viewed as being non-commercial due to their
metallurgy.
Cobalt exploration was last undertaken on Rimfire’s
project in the early 1980’s when North Broken Hill Pty
Ltd conducted a program of geological mapping, IP
geophysics and drilling at the Bald Hill prospect. Prior to
this Broken Hill South Limited undertook IP geophysical
surveying and diamond drilling of the Staurolite
Ridge prospect in the early 1960’s. In both cases, the
exploration work was undertaken as part of programs
targeting silver lead zinc mineralisation within the
broader Broken Hill district.
4 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
Bald Hill Target
Cobalt (Co) mineralisation at Bald Hill occurs within
a folded and outcropping gossanous quartz - albite
+/- pyrite psammopelitic composite gneiss host rock
unit. Induced Polarisation (IP) geophysical surveys
undertaken by North Broken Hill Pty Ltd in 1980/1981
defined multiple IP chargeability anomalies associated
with the quartz - albite +/- pyrite unit, drilling of which
(BHR1 to BHR 5 – 651 metres) returned multiple high-
grade drill intercepts.
• 58m @ 0.10% Co from 48 metres in BHR1/1A including
7m @ 0.17% Co from 63 metres, 6m @ 0.15% Co from
81 metres, and 6m @ 0.15% Co from 95 metres,
• 15m @ 0.05% Co from 42 metres in BHR2,
• 5m @ 0.05% Co from 12 metres in BHR3,
• 7m @ 0.07% Co from 35 metres in BHR3,
• 7m @ 0.03% Co from 27 metres in BHR4, and
• 8m @ 0.06% Co from 25 metres in BHR5.
BHR1/1A was drilled into a north plunging fold hinge
which appears to have significantly “thickened” the host
rock. BHR2 and 3 were drilled approximately 270 metres
away on the western limb of the fold hinge. BHR4 and 5
were drilled 500 metres to the southeast of BHR1/1A on
the eastern limb of the fold hinge and were reported as
failing to reach target depth due to ground conditions.
At surface the prospective quartz - albite +/- pyrite unit
has a surface area of approximately 500 x 500 metres
with multiple prospecting pits and shallow workings
along the fold hinge.
The cobalt mineralisation is described in historic
geological logs as being associated with increased
sulphide (pyrite) content, with the highest grades
occurring within zones of semi massive to massive
pyrite. Minor copper anomalism (i.e., 3m @ 0.12% copper
from 36 metres in BHR2) is also associated with the
sulphide unit in a few holes.
Bald Hill is a high priority target for further work as
there appears to have been no follow up drilling of the
area since the original holes were drilled. During the
period, Rimfire drilled 3 diamond holes (FI2469 to FI2471
- 635.6 metres) to validate and confirm the geological
setting of cobalt sulphide mineralisation previously
intersected at Bald Hill.
Each of the new holes intersected extensive semi
– continuous zones of strongly disseminated semi-
massive, and massive sulphides (pyrite and trace
chalcopyrite + sphalerite) in proximity to historic
drillhole BHR1/1A which intersected 58m @ 0.10%
Co from 48 metres including - 7m @ 0.17% Co, 6m
@ 0.15% Co, and 6m @ 0.15% Co (See Rimfire’s ASX
Announcements dated 20 July and 29 June 2023).
FI2469 intersected multiple zones of disseminated
sulphide, semi – massive, and brecciated sulphides
(pyrite) between 56.90 metres and 108.60 metres within
a plagioclase – albite gneiss unit before passing into
a barren quartz – potassium feldspar – biotite gneiss
(footwall) unit. Magnetite is also associated with the
sulphide mineralisation. The historical intercept of the
adjacent 1981 drill Hole BHR1A, was confirmed with
FI2469 providing a strong intercept of 33m @ 0.11% Co
from 58m, including 4m @ 0.23% Co from 70 metres,
and 2m @ 0.21% Co from 83 metres.
FI2470 intersected a semi-continuous zone of
strongly disseminated semi – massive, and massive
sulphide (pyrite +/- chalcopyrite and sphalerite)
between 77.90 metres and 333.70 metres within
a mixed sequence of plagioclase – albite gneiss,
amphibolite, and psammite units, before passing into
a barren quartz – potassium feldspar – biotite gneiss
(footwall) unit. With the following strong cobalt
intercepts encountered in FI2470;
• 125m @ 0.13% Co from 198m in FI2470 including 97m @
0.15% Co from 226m,
• 100m @ 0.08% Co from 71m in FI2470 including 68m @
0.10% Co from 71m.
FI2471 intersected multiple zones of disseminated
sulphide, semi – massive, and brecciated sulphides
(pyrite) between 63.2 metres and 88.5 metres within
a plagioclase – albite gneiss unit before passing into
a barren quartz – potassium feldspar – biotite gneiss
(footwall) unit. With the following strong cobalt
intercept encountered in FI247, 58m @ 0.13% Co from
62 metres, including 12m @ 0.24% Co from 67 metres
and 17m @ 0.15% Co from 86 metres. FI2471 also
intersected a ferruginous gossanous zone immediately
up hole of the cobalt mineralisation, assaying of
which returned strongly anomalous copper (Cu) - 6m
@ 0.51% Cu from 56 metres. While the significance
of the copper is unknown at this stage, the intercept
adds to other examples of copper anomalism in
surface rock chip samples at Bald Hill (see Rimfire ASX
Announcement dated 24 May 2023) and suggests that
there may be a copper rich component to the cobalt
mineralised system.
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 5 Operations Report
Staurolite Ridge Target
At Staurolite Ridge exploration undertaken by Broken
Hill South Limited in the early 1960’s identified multiple
IP chargeability anomalies (over a strike length of
3,050 metres) associated with gossanous outcrops
and localised copper - staining. Given the presence
of chalcopyrite (copper sulphide), Staurolite Ridge
appears to have been explored primarily as a copper
opportunity.
Four holes (SR1 to SR6 – 2,681 metres) were drilled in
1961/1962 to test the Staurolite Ridge IP chargeability
anomaly with all holes intersecting varying degrees of
sulphides (i.e., pyrrhotite, pyrite +/- chalcopyrite) ranging
from disseminated to semi-massive sulphides within a
distinctive siliceous garnet – staurolite “lode” horizon.
SR1 was drilled into the strongest part of the IP
chargeability anomaly and intersected 88.4 metres
(down hole width) of “strong” pyrite and pyrrhotite
mineralisation, assaying of which returned.
• 61m @ 0.18% Co from 94.5 metres in SR1 including
15.25m @ 0.29% Co from 125.05 metres.
SR1 was the only hole analysed for cobalt despite the
remaining five holes intersecting varying widths of
disseminated sulphides.
SR2 (the closest other hole to SR1) was drilled
approximately 400 metres to the south of SR1 on the
same section, SR5 and SR6 were drilled approximately
700 metres east of SR1, and SR3 and SR4 were drilled
1,525 metres to the east of SR1.
There appears to have been no specific drill follow up of
the SR1 cobalt intersection with the only other recorded
drilling in the area being undertaken by A.S. Exploration
Ventures (Seltrust Mining Corporation) in 1981/1982.
A.S. Exploration Ventures completed 5 percussion
holes (NMH026 to NMH027, NMH029, and NMH030 to
NMH031 – 393 metres) approximately 200 – 300 metres
southwest of SR1, and 3 diamond holes (NMH028,
NMH029A, and NMH032 – 1,055 metres) 400 – 500
metres north and northwest of SR1.
The A.S. Exploration Ventures holes were drilled to
test magnetic anomalies separate from the original
IP chargeability anomaly and except for two shallow
percussion holes – NMH030 and 031, were never
analysed for cobalt. Both holes intersection moderate
cobalt anomalism (up to 40m @ 0.1% Co) within
weathered sediments.
As such the original SR1 drill intercept appears to have
never been specifically followed up and is a high priority
for further work by Rimfire.
Railway Extension Target
The Railway Extension target directly lies north
northeast and along strike from Cobalt Blue’s Railway
Cobalt Deposit which has a JORC Indicated and Inferred
Resource of 68Mt @ 755 CoEq ppm for 40.9Kt of
contained cobalt (Cobalt Blue website).
Cobalt mineralisation at the deposit is also associated
with the quartz - albite +/- pyrite unit seen elsewhere
on Rimfire’s project, and geophysical (aeromagnetic and
airborne EM) data plus geological data suggests that the
host unit continues across the tenement boundary onto
Rimfire’s ground.
The quartz - albite +/- pyrite unit is interpreted to
have approximately 800 metres of strike length within
Rimfire’s tenure at Railway Extension although drilling is
needed to confirm if the extension contains the same
grade and extent as the Railway Deposit to the west.
6 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders Bald Hill
Railway Extension
COB Broken Hill
Cobalt Project
Staurolite Ridge
Figure 1: Broken Hill Tenement
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 7 Operations Report
Valley Project (RIM 100%) – Copper / Gold
At the Valley, Rimfire is targeting porphyry style copper -
gold mineralisation within Ordovician age volcanic rocks
like the nearby major Northparkes porphyry copper –
gold mine (Figure 2).
Primary activity during the period involved executing
a RC / diamond drilling program, with analytical
results received confirming the presence of copper
mineralisation with anomalous values returned from
two of the recent diamond drill holes (See Rimfire’s ASX
Announcement dated 31 May 2023).
The drill program, comprising 2 diamond holes (FI2404
and FI2405 -1,128.3 metres) and 2 Reverse Circulation holes
(FI2406 and FI2407 - 201 metres), was carried out to test a
high-priority copper (+gold) target potentially indicative
of a buried porphyry copper gold system.
An earlier reconnaissance hole drilled by Rimfire in 2021
(FI2079) at the Valley confirmed the prospectivity of the
area by intersecting a sequence of strong propylitic and
epidote-chlorite altered volcanoclastic, and polymictic
conglomerate rocks interpreted to be Ordovician –
age Raggatt Volcanics like the host rocks seen at the
Northparkes deposit.
Subsequent reprocessing of geophysical data
highlighted a cluster of magnetic features (within
a broad circular magnetic anomaly that has an
approximate area of 3.75km²) adjacent to FI2079 and
FI2081 that were interpreted to be represent bodies
of Ordovician – age intrusive rocks (andesites and
monzonites) that could be the source of the copper
anomalism seen in the drillholes.
Of the recent drilling, diamond drill hole FI2404
intersected zones of weakly disseminated sulphide
(pyrite) within favorable Ordovician – aged
volcanoclastic rocks as well as multiple zones of
weak disseminated, veinlet, and shear zone – hosted
sulphide (pyrite + coarse grained chalcopyrite)
mineralisation within the overlying Devonian rocks,
assaying of which returned;
• 4m @ 1.17% copper from 511 metres including
1m @ 3.62% copper from 511 metres, and
• 4m @ 0.06% copper from 466 metres including
1m @ 0.10% copper from 466 metres
The second diamond drill hole (FI2405) intersected zones
of weak calcite vein – hosted pyrite, chalcopyrite and
bornite within the overlying Devonian rocks as well as a
broad zone of weak fracture – hosted chalcopyrite and
bornite mineralisation within favorable Ordovician – aged
extrusive rocks, assaying of which returned;
• 2m @ 0.10% copper from 312 metres, and
• 1m @ 0.57% copper from 327 metres
The results obtained from the recent drilling are
encouraging. Given the size of the Valley target, the
porphyry style of mineralisation being sought and the
relative lack of drilling, further drilling is required to test
the broader system and determine the representivity of
results to date and the prospectivity of the location
In January 2022, Rimfire was awarded $185,675 by the
Department of Regional NSW, Mining, Exploration and
Geoscience group under the competitive, peer reviewed
New Frontiers Cooperative Drilling Grant program, and
circa $88,500 of this funding was utilized offset the cost
of drilling at the Valley (see Rimfire ASX Announcements
dated 27th July 2021 and 12th January 2022).
8 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders Cowal Project (RIM 100%) – Copper / Gold
The Company has defined a new priority copper drill
target (“LFB022”) which lies immediately 60 kilometres
southwest of Parkes within the highly prospective Lachlan
Orogen of New South Wales (see Figure 2 and Rimfire’s
ASX Announcement dated 7 December 2022).
Rimfire’s Cowal Copper Gold Project (500km²) covers the
northern end of the 35 km long x 20 km wide Ordovician
Currumburra Volcanic Complex which is interpreted to be
the eastern margin of a very large stratovolcano (centred
on Lake Cowal) which hosts the Cowal Gold Deposit and
adjacent Marsden Copper Gold Deposit.
Both Cowal and Marsden are owned by Evolution Mining
(ASX: EVN) and host Total Mineral Resources of 305.3Mt
@ 0.98g/t gold (9.6Moz gold), and 123Mt @ 0.27g/t
gold, 0.46% copper (1.05Moz gold and 560Kt copper)
respectively. (see Evolution Mining’s Resource and Reserve
Statement as at December 2021).
The Ordovician Currumburra volcanic complex comprises
a north south trending zone of andesitic volcanics and
associated sediments, intruded by plugs and dykes
ranging in composition from diorite to monzonite. The
Ordovician volcanics do not outcrop and are locally
overlain by the thin flat lying late Ordovician to early
Silurian Jingerangle Formation cherty siltstone.
While the prospective Ordovician units do not outcrop,
they can be readily mapped using magnetic and
gravity geophysical data as well as drillhole geological
information. A prominent north-south trending gravity
ridge within the East Cowal project clearly defines
the location of the Currumburra volcanics as well as
the northwest trending Marsden Lineament - a key
structural control to localising copper gold mineralisation
throughout the district.
Historic exploration throughout the project area has
typically comprised reconnaissance air core drilling
and diamond drilling from which multiple mineral
occurrences have been defined along the north south
trending gravity ridge.
Drilling by Goldminco Corporation in 2004 immediately
south of Rimfire’s tenure, intersected broad zones of
porphyry – style copper and gold mineralisation at
the Imola and Silverstone prospects. Diamond drilling
returned 96m @ 0.7g/t gold in CBD01 at Imola, and 74m
@ 0.15% copper from at Silverstone. Both prospects are
reported to be Ordovician in age and are associated
with small monzonite plugs and K feldspar alteration.
The Silverstone intercept is described as associated
specifically with haematite, biotite, magnetite, and
K-feldspar altered intrusives and volcanics, chalcopyrite
and bornite disseminations and veinlets.
Immediately north of Rimfire’s tenure, drilling by Capital
Mining in 2008 intersected 28m @ 0.47 g/t gold from 740
metres at the Porters Mount prospect. Porters Mount
is described as a gold bearing diatreme breccia and
potential high sulphidation epithermal-style alteration
system overlying a deeper porphyry copper-gold deposit.
(Information sourced from Capital Mining Limited’s
Annual Report for the period ending 28 June 2008 on
EL6591). Subsequent to the end of the period Rimfire
acquired the Porters Mount Project (see Rimfire’s ASX
Announcement dated 11 September 2023) and is currently
compiling and integrating all historic data for the Porters
Mount Project in the Cowal Project database ahead of
prioritising drill targets, undertaking stakeholder liaison
and planning a drill program..
Within Rimfire’s tenure at the LFB022 target,
reconnaissance aircore drilling by Clancy Exploration
Limited in late 2008, has defined a 3 x 1.5 km copper in
saprolite anomaly (using a +400ppm copper contour)
with a maximum individual (2 metre composite) aircore
sample value of 0.14% copper in CBAC044. The anomaly
overlies the intersection of the north south gravity ridge
and the southern boundary of the northwest trending
Marsden Lineament. (Information sourced from Clancy
Exploration Limited’s Annual Report for the period
ending 21 May 2009 on EL6784 “Currumburrama”).
While historic diamond drilling has failed to find the
source of the copper anomaly, a large area to south
remains untested due to thin veneer of post Ordovician
cover (the early Silurian Jingerangle Formation).
Significantly the untested southern area coincides with a
magnetic low feature which is interpreted by Rimfire to
be an intrusive unit and possible source of the copper in
saprolite anomaly.
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 9 Operations Report
Figure 2 : Location Plan of major Lachlan Fold Belt Projects
10 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders Earn-in Projects (Fifield and Avondale) - Nickel, Cobalt, Scandium, Gold and PGEs
(GPR earning up to 50.1% and 75% respectively)
All exploration activities at the Fifield and Avondale Earn
In projects (Figure 2) are funded by Rimfire’s exploration
partner - Golden Plains Resources (GPR), the ownership of
which remains subject to a legal dispute. Rimfire has taken
independent legal advice as to its obligations and rights
with respect to this matter and continues to operate in
accordance with that advice.
Avondale Project (GPR earning up to 75%) – Nickel, Cobalt, Scandium and PGE’s
Melrose nickel cobalt scandium prospect
Aircore drilling undertaken during the period extended
the area of nickel cobalt scandium mineralisation
and confirmed the geological setting of the Melrose
prospect. Separately head assaying of a 260kg composite
bulk sample undertaken during metallurgical test work,
has confirmed the high-grade nature of the Melrose
mineralisation (See Rimfire’s ASX Announcement dated
26 June 2023).
Melrose lies within the Company’s Avondale Project
which is located 70 kilometres northwest of Parkes within
the highly prospective Lachlan Orogen of central New
South Wales.
20 aircore holes (FI2408 to FI2442 – 904 metres) were
drilled at Melrose. Vertical holes were drilled along fence
lines and access tracks north and south of a prominent
magnetic anomaly that lies centrally within the prospect
area to determine the extent of nickel cobalt scandium
mineralisation at Melrose and confirm the prospect’s
geological setting.
Geologically Melrose is underlain by an east-dipping
sequence of ultramafic and mafic intrusive rocks
(microdiorite, gabbro, pyroxenite, wehrlite, dunite)
that are bounded to the east against a granite and
volcaniclastic sediments to the west. The ultramafic
rocks are heavily altered with serpentinite and magnetite
commonly present throughout. The presence of
abundant magnetite explains the Melrose magnetic
anomaly.
The basement rocks are strongly weathered with an
overlying flat – lying manganese and iron rich (laterite)
horizon present, assaying of which has shown to be
strongly anomalous in nickel – cobalt – scandium (Ni Co
Sc) mineralisation.
Drilling previously undertaken by Rimfire has returned
multiple strongly anomalous drill intercepts from the
laterite horizon, e.g.;
• 21m @ 0.11% Ni, 0.07% Co, and 529ppm Sc, from 3
metres in FI2397 including 9m @ 0.17% Ni, 0.15% Co
and 688ppm Sc from 14 metres,
• 2.3m @ 0.15% Ni, 0.08% Co and 461ppm Sc from 3
metres and 5.0m @ 0.68% Ni, 0.07% Co and 302ppm
Sc from 16 metres in FI2398,
• 4.9m @ 0.36% Ni, 0.11% Co and 349ppm Sc from 5
metres, and 4.3m @ 0.42% Ni, 0.09% Co and 296ppm
Sc from 10.1 metres in FI2399, and
• 10.0m @ 0.14% Ni, 0.10% Co and 456ppm Sc from 1
metre in FI2400 including 5m @ 0.17% Ni, 0.17% Co and
568ppm Sc from 5 metres.
From the drilling undertaken to date at Melrose, the
following geological observations can be made.
• The nickel cobalt scandium mineralised laterite
zone trends in a north northeast - south southwest
direction over ~ 900 metres strike length with width
ranging from a maximum of ~ 400 metres in the
core of the magnetic complex to a width of ~ 50
metres in the northeast.
• The nickel and cobalt mineralisation remain open
to the southwest into areas of no drilling.
• The scandium mineralisation remains open to
the west.
• Mineralisation thickness ranges from ~ 16 metres in
the core of the magnetic complex to < 3 metres to
the northeast.
• The thickest laterite zones and higher-grade nickel
cobalt and scandium mineralisation overlies the
ultramafic rock types, with the highest scandium
grades spatially associated with the pyroxenite. The
thinner laterite zones and lower grade mineralisation
in the northeast overlies microdiorite rimming the
pyroxenite.
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 11 Operations Report
Avondale Project (Continued)
Additional to the aircore drilling, Perth specialist
metallurgical services group - Independent Metallurgical
Operations Pty Ltd (IMO) is currently developing a
conceptual processing flowsheet with the aim of
optimising recoveries and production of a nickel – cobalt
– scandium product from high-grade mineralised material
from Melrose.
To underpin the studies, a bulk composite sample (260 kg)
of high-grade nickel cobalt scandium mineralisation from
Melrose (PQ quarter diamond drill core) was previously
dispatched to IMO in Perth.
A representative sub-sample of the bulk composite
sample was pulverised and analysed with the assaying
of various size fractions returning grades ranging from
0.218% to 0.437% nickel (head assay grade of 0.33% nickel),
0.08% to 0.15% cobalt (head assay grade of 0.12% cobalt),
and 290ppm to 470ppm scandium (head assay grade of
380ppm scandium).
These results support previously obtained drill assay
intercepts and reinforce Rimfire’s belief that Melrose
represents a potentially significant high grade nickel
cobalt scandium mineral opportunity.
At the time of writing, IMO had completed scrubbing
tests and atmospheric leaching was underway.
Fifield Project (GPR earning up to 50.1%) – Scandium, Gold and PGEs
Murga scandium prospect
After the period, Rimfire announced that recent wide
spaced reconnaissance aircore drilling has identified
a new scandium prospect (called “Murga”) within
the Company’s Fifield Project (see Rimfire’s ASX
Announcement dated 28 July 2023).
A total of eleven holes (FI2425 to FI2435) were drilled
to test the Murga North and Murga South magnetic
anomalies which lie approximately 4 kilometres
apart. One hole from both locations (FI2427 and
2434) were submitted for assay with both returning
strongly anomalous scandium (Sc) only values
from surface;
• 30m @ 184ppm Sc from 0 metres in FI2434 including
12m @ 224ppm Sc from 6 metres, and
• 15m @ 125ppm Sc from 3 metres in FI2427
The scandium anomalism occurs fundamentally within a
strongly weathered saprolite horizon overlying magnetic
ultramafic (pyroxenite) intrusive rocks. There is little or
no nickel and / or cobalt anomalism associated with the
scandium anomalism, which is curious given that other
scandium occurrences within the area (i.e., the Melrose
prospect and Sunrise Energy Metals’ adjacent Sunrise
nickel cobalt scandium deposit) are all associated with
elevated levels of nickel and cobalt – see Rimfire’s ASX
Announcement dated 19 September 2022).
Regionally the ultramafic units are interpreted from
aeromagnetic data to lie within a large scale arcuate shaped
mafic – ultramafic intrusive complex (the “Murga Intrusive
Complex”) that extends over a strike length of 7 kilometres
with a maximum width of 2 kilometres – (14km).
The Murga Intrusive Complex remains largely
unexplored for scandium, with most of the previous
exploration in the area focused on platinum and gold
and centered on the Sorpresa Gold Deposit which lies
on Rimfire’s Fifield Project immediately to the east.
Given the initial positive scandium drill results, the large-
scale size of the Murga Intrusive Complex, the presence
of multiple scandium auger anomalies and the lack of
drilling, Murga potentially represents a significant and
unique pure scandium opportunity for Rimfire.
Rimfire will now submit all the remaining 9 aircore
drillholes from Murga for scandium analysis.
Further aircore drilling is planned to test areas of the
Murga Intrusive Complex with no previous sampling and
to refine existing scandium auger anomalies.
Jacks Lookout – Potential expansion of Sorpresa Mineralisation
A diamond hole (FI2401) drilled at the Jacks Lookout
target during the period intersected broad zones of
strong gold anomalism 1 kilometre east of the Sorpresa
Gold Silver Deposit.
FI2401 was drilled as part of a larger 3,000 metre drill
program targeting primary platinum + palladium (PGEs)
mineralisation within ultramafics at the Company’s
Fifield and Avondale Earn In Projects in central
12 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
New South Wales (see Figure 2 and Rimfire’s ASX
Announcement dated 14 November 2022).
Jack’s Lookout lies adjacent to the Platina Lead which was
previously mined for coarse alluvial platinum and gold in
the 1880’s through to the early 1900’s and together with
other Leads in the area (all of which are on Rimfire tenure)
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 between 5 - 13g/t platinum and 4,400 ounces
of gold produced at a grade of between 1.5 - 4.6g/t gold
(refer to Geology and Mineral Deposits of Australia
and Papua New Guinea – AusIMM Monograph No. 14
published 1990).
FI2401 was specifically drilled to test a prominent
magnetic anomaly located immediately north of the
Platina Lead workings that was originally interpreted
to represent an ultramafic intrusive body potentially
prospective for PGEs.
Instead of intersecting an ultramafic intrusive unit, FI2401
intersected a magnetic mafic intrusive (monzodiorite)
before passing into a heavily veined and brecciated
sequence of siliceous and sulphidic (pyrite – sphalerite
– galena) carbonaceous shales. The hole was originally
planned to be drilled to 250 metres was extended to
a final depth of 450 metres due to the abundance of
sulphides encountered in the drill core, particularly
sphalerite and arsenopyrite both known to be closely
related to Sorpresa gold silver mineralisation.
Assaying of the drillhole has returned broad zones of
strong gold (+/- silver and zinc) anomalism within the
siliceous and sulphidic carbonaceous sediments;
• 5m @ 3.23g/t gold and 24g/t silver from 320 metres in
FI2401, and
• 61m @ 0.14g/t gold from 355 metres in FI2401 including
21m @ 0.18g/t gold, 0.21% zinc from 355 metres, 8m @
0.23g/t gold, 0.17% zinc from 382 metres, and 17m @
0.14g/t gold from 399 metres.
The drill results are significant given that the siliceous and
sulphidic carbonaceous shale unit that hosts the gold (+/-
silver and zinc) anomalism at Jack’s Lookout is the same rock
unit (the “Sorpresa Beds”) that hosts the Sorpresa Gold Silver
Deposit, which lies 1 kilometre west of Jack’s Lookout.
Sorpresa hosts a 2012 JORC Code compliant Total
Combined Resource (1g/t gold and 85g/t silver cut off)
of 1.519Mt @ 1.52g/t gold and 70g/t silver (74.3Koz gold
and 3.44Moz silver) and remains open in all directions (see
Rimfire’s ASX Announcement dated 6 November 2019).
The mineralised Sorpresa Beds dip to the east and
continue for another 600 metres east and down dip of
Sorpresa to the Jack’s Lookout drillhole FI2401. Apart
from one shallow historic reverse circulation drillhole and
surface auger drilling, the 600 metre “gap” between the
two locations is effectively untested.
Recognition of the Sorpresa Beds at Jacks Lookout
expands the known extent of gold and silver - prospective
host rocks at Fifield and significantly increases the
exploration search space for identification of extensions
to the existing Sorpresa deposit and / or new gold silver
discoveries within the area.
It is also possible that Sorpresa and Jacks Lookout are the
source of the alluvial gold mineralisation previously mined
at the Platina Lead given their proximity.
The intersection of a broad zone of strong gold (+/- silver
and zinc) anomalism in an area of no previous drilling at
Jack’s Lookout has resulted in Rimfire’s technical team
developing a new geological model and targeting criteria
for the formation of high-grade gold mineralisation
throughout the Sorpresa area at Fifield.
Detailed geological logging of diamond drill core
from FI2401 has confirmed that the highest-grade gold
mineralisation (i.e., 5m @ 3.23g/t gold and 24g/t silver
from 320 metres) in the hole occurs at the intersection of
the shallowly dipping Sorpresa Beds and a cross-cutting
steeply dipping fault breccia.
The fault breccia is interpreted to be a conduit for
mineralising fluids to interact with the Sorpresa Beds
(which represent a chemically favourable host rock) and
form high grade gold + silver mineralisation.
As such the intersection of the two geological features
represents a compelling exploration target and Rimfire’s
technical team is currently working to identify those areas
where the target position might exist at shallow depths.
The FI2401 high-grade drill intercept occurs within an area
of no previous drilling so follow-up drilling is required to
better understand the original intercept and to test the
new targeting criteria.
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 13 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 2023.
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
Andrew Knox
Misha Collins
Greg Keane
(Managing Director and Chief Executive Officer),
(Non-Executive Director),
(Non-independent, Non-Executive Director), ceased on 2 June 2023,
(Alternate Director to Ian McCubbing, appointed 17 August 2022).
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 Broken Hill and Lachlan Orogen
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 Critical Minerals growing in importance 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 2023
was $0.4m. An additional $0.02m was held collectively
in the Fifield and Avondale Project Accounts at 30
June 2023.
Fifield Earn In Heads of Agreement
During the period, GPR decided not to make a final
corporate payment of $700K that was due by 14
June 2023, under the terms of the Binding Heads of
Agreement which imposed additional funding obligations
on GPR and gave GPR the right to earn an additional 9.9%
interest in the Fifield Project (taking GPR’s total potential
interest to 60%).
Consequently, Rimfire terminated the Fifield Binding
Heads of Agreement and all future exploration activities
plus GPR’s ongoing funding obligations will continue
under the terms of the original Fifield Project Earn In
Agreement (see Rimfire’s ASX Announcement dated 4
May 2020).
Under the terms of the Fifield Project Earn In Agreement,
GPR has the right to earn a 50.1% interest (and enter into
a Joint Venture Agreement) in the project area by paying
further exploration payments of $700K through the cash
call process.
In addition, under the Earn In Agreement, GPR must
provide a fully committed, irrevocable, and binding
proposal to Rimfire for the provision of Funding to
fully fund Rimfire’s interest in the JVA from the Joint
Ownership Acquisition Date through to the start of
commercial production of the development. If Rimfire
accepts GPR’s funding proposal, Rimfire will repay the
funding provided from future net earnings of the mine.
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.
14 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders Shareholder Meetings
Five shareholder meetings were held during the financial
year, two of which were in response to notices received
under section 249D of the Corporations Act.
• A General Meeting was held on the 25th of August
2022, where the issue of unlisted 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).
• The Annual General Meeting was held on the 24th of
November 2022, where all Resolutions were passed
with strong shareholder support.
• A General Meeting was held on the 19th of May
2023 to approve the issue of shares to Directors
and Senior Management that participated in
the February 2023 placement (28,333,331 shares
@$0.006cps, raising $170K) and the ratification of the
prior issue of shares and unlisted options also issued
during the February 2023 placement. All resolutions
were passed and after payment of the shares these
were allotted taking the total number of shares on
issue to 2,005,244,731.
• A General Meeting was held on the 2nd of June 2023
to consider a shareholder notice to remove Mr Misha
Collins as a Director of Rimfire. 76% of total shares
cast voted in favour of the Resolution.
• A General Meeting was held on the 15th of June 2023
to consider a shareholder notice to remove Mr Ian
McCubbing, Mr David Hutton, and Mr Andrew Knox as
Directors of the Rimfire and to appoint Mr Anthony
(Anton) Billis, Mr Oliver Douglas, and Mr Roland
Berzins as Directors of the Board of Rimfire.
Over 50% of the Company’s total issued capital
cast votes in the meeting, with ~78% of total shares
cast in favour of keeping the existing Board (Mr Ian
McCubbing, Mr David Hutton, and Mr Andrew Knox),
and voting against the appointment of a new Board
(Mr Anthony (Anton) Billis, Mr Oliver Douglas and Mr
Roland Berzins).
Considerable legal and professional services costs were
incurred by the Company during the period relating
to the Section 249d notices and other legal matters
raised by entities associated with Mr Anton Billis, the
GPR ownership dispute, and legal and financial work
undertaken due to matters and queries raised by
Mr Misha Collins, a former Director of the Company
totaling circa $200,000.
Capital Structure
As at 30 June 2023 the capital structure of the
Company was;
- 2,005,244,731 Ordinary Shares on Issue (RIM)
- 120,300,000 Unlisted options ordinary shares
(Options), various prices and vesting dates
Operating Results
The loss of the Consolidated entity amounted to
$814,333 in the period (2022: $912,954).
Dividends
No dividends were paid during the financial year, nor are
any recommended at 30 June 2023 (30 June 2022: 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 exploration for minerals in
Australia and yet to generate revenues. The Company
has a cash and cash equivalents balance of $377,231
and net assets of $16,340,234. The Company may
require substantial additional financing in the future to
sufficiently fund exploration commitments and its other
longer-term objectives.
As the Company is still in the early stages of exploration
development it has the ability to control the level of its
operations and hence the level of its expenditure over
the next 12 months. However, the Company’s ability to
raise additional funds will be subject to, among other
things, factors beyond the control of the Company
and its Directors, including cyclical factors affecting the
economy and share markets generally. If for any reason
the Company was unable to raise future funds, its ability
to meet the exploration commitments and future
development would be significantly affected.
The Directors regularly review the spending pattern
and ability to raise additional funding to ensure the
Company’s ability to generate sufficient cash inflows to
settle its creditors and other liabilities.
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 15 Directors’ Report
Earn-in and Joint Venture Operations risks
The Company participates in a number of Earn-ins
which if the Earn-in partner meets its commitments
will crystallise into joint ventures. This is a is a common
form of business arrangement designed to share risk and
other costs, and until the Joint Venture is crystallised,
the Company maintains management control. Under a
joint venture operating agreement, 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 benefit of the activity,
except at a significant cost penalty later in time.
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 Consolidated Entity holds participating interests
in a number of exploration tenements across Australia.
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 impact the progress or success of the
Company’s exploration efforts, financial condition
and results of operations.
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 of the services
of 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 remunerations 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.
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:
16 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders • 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.
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
In July 2023, Rimfire was also awarded exploration
credits of $500,000 under the Federal Government’s
Junior Minerals Exploration Incentive (JMEI) program
for distribution during the 2023 / 2024 Financial Year to
eligible shareholders.
During August 2023, Rimfire raised $0.8 million through
a share placement pursuant to Section 708 of the
Corporations Act (Cth). The placement comprised the
issue of a total of 100,000,000 fully paid ordinary shares
at an issue price of $0.008 (0.8 cents) per share, raising
$0.8M, to sophisticated investors eligible under section
708 of the Corporations Act (Cth). The issue price
represented a 26% premium to the 5 - trading day VWAP
to 28 July 2023. In addition,100,000,000 free attaching
unlisted options were issued on a one (1) for one (1) basis
for every new share subscribed for and issued under the
placement with an exercise price of $0.02 (2 cents) each,
and an expiry date of 28 February 2025.
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 17 Directors’ Report
In September 2023, Rimfire announced the 100%
acquisition of the Porters Mount Project which adjoins
Rimfire’s 100% owned Cowal Copper Gold Project,
which increases the size of the Cowal project 450km2
and enhances the Cowal Project further with areas of
mineralized anomalies and further features that require
follow up.
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.
18 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 19 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 Ltd (Non-Executive Chairman
from 25 October 2016 to 16 May 2022 and
stepped back into the role of Non-Executive
Chairman from 9 December 2022 to current.
Shareholding: 34,666,669 ordinary shares and
15,000,000 unlisted Options subject to vesting
conditions.
20 / Rimfire Pacific Mining Limited 2023 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: 3,155,666 ordinary shares and
30,000,000 unlisted Options subject to vesting
conditions.
Andrew Knox
Independent Non-Executive Director
Chairman 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: 21,222,915 ordinary shares and
10,000,000 unlisted Options subject to vesting
conditions.
Misha Collins
Non-Independent Non-Executive Director
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
Ceased with the Company on 2 June 2023.
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).
Shareholding: 1,000,000 ordinary shares at time of
cessation.
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 21
Information on Directors
Greg Keane
CFO / Alternate Director to Ian McCubbing
Stefan Ross
Company Secretary (Appointed 2 July 2021)
Bachelor of Business Accounting, MBA, Postgraduate –
Corporate Governance, CPA, CSA
BBus (Acc)
Mr Ross was appointed as Company Secretary in
July 2021. 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,
shareholder meeting requirements, capital raising
management, and board and secretarial support.
Stefan has a Bachelor of Business majoring in
Accounting.
Mr Keane was appointed CFO in May 2017 and Alternate
Director to Ian McCubbing on 17th 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: 7,306,044 ordinary shares and 20,000,000
unlisted Options subject to vesting conditions.
22 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
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
Greg Keane*
23
23
23
22
1
22
23
23
20
1
2
-
2
2
-
2
-
2
2
-
1
-
1
1
-
1
-
1
1
-
Note: Mr Greg Keane attended one meeting during the year in his capacity as Alternate Director for Ian
McCubbing. For other meetings, Mr Keane attends in his capacity as CFO, and not in his capacity as
an Alternate Director.
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 23
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
1. Principles used to determine the nature and
amount of remuneration
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
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,
• Managing operations and expenditure to efficient levels
and within budgets,
• 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. During the Financial Year,
24 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders unlisted options were approved by shareholders to
be issued to Mr Ian 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 2022 AGM the Company received 99.37% 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 2022 AGM.
2. Details of Remuneration for the Year Ended
30 June 2023
Benefits to senior executives and the Non-Executive
Directors consisted primarily of cash benefits. The
Non-Executive Director Pool is $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 2023
was $136,822 (2022: $167,536).
The following table details, in respect to the financial years ended 30 June 2023 and 2022, the
components of remuneration for key management personnel of the Consolidated entity.
Table 1: Remuneration Details
Key Management
Personnel
A Greville*
I McCubbing
Non-Executive Directors
FY 2023
FY 2022
FY 2023
FY 2022
FY 2023
FY 2022
FY 2023
FY 2022
FY 2023
FY 2022
D Hutton*
M Collins*
A Knox
Executive Directors
FY 2023
FY 2022
FY 2023
FY 2022
FY 2023
FY 2022
FY 2023
FY 2022
C Riley*
D Hutton*
G Keane*
Total
Total
* Note:
Primary
Salary
and Fees
Accrued
Salary*
Bonus - STI
Annual
Leave/Sick
Leave
Termination
Total Direct
Employee
Cash
Benefit
Post Employment
Equity
Super
Long Service
Leave
Accruals**
Options
49,918
60,000
-
16,021
36,667
39,697
36,663
39,551
-
12,267
-
158,392
173,073
88,159
144,281
-
440,601
414,088
5,000
-
-
3,333
-
-
-
-
-
-
-
-
-
-
-
8,333
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
24,341
-
-
-
-
-
24,341
-
4,264
17,950
-
14,559
-
32,510
4,264
-
44,323
-
-
-
-
-
44,323
54,918
60,000
-
16,021
40,000
39,697
36,663
39,551
-
12,267
-
231,320
191,024
88,159
158,840
-
5,241
-
-
-
-
-
-
-
-
-
-
17,385
20,293
615
17,201
-
481,444
487,016
42,735
18,001
Total
117,092
60,000
-
16,021
77,955
39,697
36,663
39,551
-
12,267
-
-
-
-
-
-
-
-
-
-
56,933
-
-
-
37,956
-
-
-
-
-
-
(2,883)
728
-
6,136
-
6,864
(2,883)
-
(9,123)
135,017
-
13,714
-
-
236,699
347,062
88,775
195,891
-
243,620
(9,123)
774,663
493,010
- M Collins ceased with the Company on 2 June 2023.
- A Greville ceased with the Company on 18 November 2021.
- C Riley ceased with the Company 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.
- G Keane was appointed as Alternate Director on 17 August 2022
- Accrued Salary is Salary accrued during the period that was
not paid.
- Annual Leave includes Annual Leave taken and accrued during the
period, whilst Sick Leave is only what was taken during the period.
- Long Service Leave is the amount accrued for the period, this is
not available until Long Service Leave requirements are met.
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 25 Remuneration Report (Audited)
Performance Income as a Proportion of Total
Remuneration
No bonuses were paid to the Managing Director
during the year ended 30 June 2023 (2022: $24,341 paid
to Craig Riley).
Transactions Between Related Parties
Transactions between related parties are on normal
commercial terms and conditions no more favorable
than those available to other parties unless stated. In
the current period, the Company incurred an expense
of $5,280 (2022:$nil) for office rent provided by Terrace
Minerals Pty Ltd, a director related entity of Mr David
Hutton. The rent provided was based on commercial
market terms and conditions.
3. Employment Contracts
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.
An Employment Agreement is in place with the Chief
Financial Officer, Mr Greg Keane. There is no fixed term.
Under the terms of the Agreement, the termination
provisions are 1 months’ notice by the company or the
employee. Mr Keane is entitled to an annual salary of
$200,000 inclusive of superannuation. The Agreement
also includes an STI component of up to 20% of annual
base salary.
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.
Table 2: Shareholding Details
The following table details, in respect to the financial years ended 30 June 2023 and 2022, the
shareholdings for key management personnel of the Group.
Key Management Personnel
Non- Executive Directors
Beginning
Balance
Received as
Remuneration
Shares
Acquired
Shares
Sold
Net Change
Other*
Closing
Balance
I McCubbing
A Greville*
A Knox
M Collins*
D Hutton
FY 2023
FY 2022
FY 2023
FY 2022
FY 2023
FY 2022
FY 2023
FY 2022
FY 2023
FY 2022
Executive Directors and KMPs
C Riley*
D Hutton
G Keane*
FY 2023
FY 2022
FY 2023
FY 2022
FY 2023
FY 2022
Total FY 2023
Total FY 2022
14,209,849
14,209,849
-
4,600,000
12,889,582
12,889,582
4,600,000
-
-
-
-
8,033,830
-
-
-
-
31,699,431
39,733,261
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20,456,820
-
-
-
8,333,333
-
-
-
-
-
-
-
3,155,666
-
1,666,666
-
33,612,485
-
-
-
-
-
-
-
(3,600,000)
-
-
-
-
-
-
-
-
-
(3,600,000)
-
-
-
-
(4,600,000)
-
-
(1,000,000)
4,600,000
-
-
-
(8,033,830)
-
-
5,639,378
-
4,639,378
(8,033,830)
34,666,669
14,209,849
-
-
21,222,915
12,889,582
-
4,600,000
-
-
-
-
3,155,666
-
7,306,044
-
66,351,294
31,699,431
* Notes regarding “Net Change Other”:
- A Greville ceased with the Company on 18 November 2021
- C Riley ceased with the Company on 29 April 2022
- M Collins started with the Company on 2 July 2021 and ceased with the Company on 2 June 2023.
- G Keane was appointed as Alternate Director on 17 August 2022.
26 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders 4. Share Based Compensation of Directors
5. Additional Disclosures Relating to Key
& Key Management Personnel
Options were granted to Directors and granted to Key
Management Personnel during the year ended 30 June
2023 (2022: nil) as per Table 3 below.
Management Personnel
None.
6. Shareholding
Details provided in Tables 2 and 3.
Table 3: Option Details
The following table details, in respect to the financial years ended 30 June 2023 and 2022,
the Options held for each key management person of the Group.
Key Management Personnel
Non- Executive Directors
Beginning
Balance
I McCubbing
A Greville
A Knox
M Collins
D Hutton
FY 2023
FY 2022
FY 2023
FY 2022
FY 2023
FY 2022
FY 2023
FY 2022
FY 2023
FY 2022
Executive Directors
-
-
-
-
-
-
-
-
FY 2023
FY 2022
FY 2023
FY 2022
FY 2023
FY 2022
Total FY 2023
Total FY 2022
20,000,000
-
-
-
-
-
20,000,000
C Riley*
D Hutton
G Keane*
* Note:
Options
Acquired*
15,000,000
-
-
-
10,000,000
-
-
-
-
-
-
-
-
30,000,000
-
-
-
55,000,000
-
Options
Exercised
Options
Lapsed
Net Change
Other*
Closing Balance
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(20,000,000)
-
-
-
-
-
(20,000,000)
15,000,000
-
-
-
10,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20,000,000
-
20,000,000
-
-
30,000,000
-
20,000,000
-
75,000,000
-
-
- C Riley ceased with the Company on 29 April 2022 and all unvested Options lapsed upon termination.
- Non Executive Director / Managing Director and CEO Options granted during the period were approved by shareholders at the Shareholder
Meeting held 25 August 2022, except for the grant of options to M Collins as Resolution 4 relating to this was withdrawn before the meeting.
- G Keane was appointed as Alternate Director on 17 August 2022.
Non-Executive Director /
Managing Director and CEO
Options granted during the
period were approved by
shareholders at the Shareholder
Meeting held 25 August 2022,
further details of these Options
is provided right.
Executives
There were no executives other
than Mr David Hutton and
Mr Greg Keane at balance date.
Key Details - Managing Director
Fair value per Option
No. of MD Options
Exercise Price
Vesting Date
Expiry Date
Key Details - Non-Executive Directors
Indicative fair value per Option
No. of Non Exec Dir Options
Exercise Price
Vesting Date
Expiry Date
Tranche 1
0.0052
10,000,000
0.0154
30/08/2022
15/06/2026
Tranche 1
0.0052
8,333,333
0.0152
30/08/2022
30/08/2026
Tranche 2
0.0055
10,000,000
0.0154
15/06/2023
15/06/2026
Tranche 2
0.0055
8,333,333
0.0152
30/08/2023
30/08/2026
Tranche 3
0.0058
10,000,000
0.0154
15/12/2023
15/06/2026
Tranche 3
0.0058
8,333,334
0.0152
1/03/2024
30/08/2026
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 27
Remuneration Report (Audited)
7. Five Year Summary of Key Financial Data
The earnings of the company for the five years to 30 June 2023 are summarised below:
Revenue and Other Income
Net Profit / (Loss) before tax
Net Profit / (Loss) after tax
2023
$
2022
$
838,695
304,988
(814,533)
(814,533)
(912,954)
(912,954)
Share Price beginning financial year ($)
Share price end financial year ($)
Basic loss per share (cents per share)
0.008
0.005
(0.044)
0.009
0.008
(0.050)
End of audited remuneration report.
2021
$
650,456
(373,704)
(373,704)
0.007
0.009
(0.020)
2020
$
52,846
(956,975)
(956,975)
0.003
0.007
(0.070)
2019
$
5,628
(875,505)
(875,505)
0 . 0 1 1
0.003
(0.080)
Directors’ Report (continued)
Unissued shares under option
During the Financial Period 60,000,000 Options were granted to:
Employee Options, service based vesting conditions
(exercisable at 1.54 cents by 15 June 2026)
Employee Options, service based vesting conditions
(exercisable at 1.52 cents by 30 August 2026)
Unlisted Options – Broker
(exercisable at 2.00 cents by 28 February 2025)
30,000,000
25,000,000
5,000,000
As at 30 June 2023 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)
Employee Options, service based vesting conditions
(exercisable at 1.54 cents by 15 June 2026)
Employee Options, service based vesting conditions
(exercisable at 1.52 cents by 30 August 2026)
Unlisted Options – Broker
(exercisable at 2.00 cents by 28 February 2025)
5,000,000
40,000,000
15,300,000
30,000,000
25,000,000
5,000,000
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.
28 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
Directors’ Report (continued)
Indemnifying Officers
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.
Non-Audit Services
RSM Australia Partners provided non-audit services during
the financial year with the provision of Option Valuation
advice relating to Director options granted.
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 7
of the Financial Statements.
Auditor’s Independence Declaration
A copy of the auditor’s independence declaration as
required under section 307C of the Corporations Act
2001 is set out immediately after this directors’ report.
Auditor
RSM Australia Partners continues in office in accordance
with section 327 of the Corporations Act 2001.
Signed in accordance with a resolution of the Board
of Directors.
Chairman
Ian McCubbing
Dated this
28th day of September 2023
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 29 AUDITOR’S INDEPENDENCE DECLARATION
RSM Australia Partners
Level 21, 55 Collins Street Melbourne VIC 3000
PO Box 248 Collins Street West VIC 8007
T +61 (0) 3 9286 8000
F +61 (0) 3 9286 8199
RSM Australia Partners
www.rsm.com.au
Level 21, 55 Collins Street Melbourne VIC 3000
PO Box 248 Collins Street West VIC 8007
T +61 (0) 3 9286 8000
F +61 (0) 3 9286 8199
As lead auditor for the audit of the financial report of Rimfire Pacific Mining Limited for the year ended 30 June
www.rsm.com.au
2023, I declare that, to the best of my knowledge and belief, there have been no contraventions of:
AUDITOR’S INDEPENDENCE DECLARATION
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
As lead auditor for the audit of the financial report of Rimfire Pacific Mining Limited for the year ended 30 June
2023, I declare that, to the best of my knowledge and belief, there have been no contraventions of:
any applicable code of professional conduct in relation to the audit.
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
RSM AUSTRALIA PARTNERS
R J MORILLO MALDONADO
Partner
Dated: 28 September 2023
Melbourne, Victoria
R J MORILLO MALDONADO
Partner
Dated: 28 September 2023
Melbourne, Victoria
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
30
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the
RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
30
Liability limited by a scheme approved under Professional Standards Legislation
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the
RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
30 / Rimfire Pacific Mining Limited 2023 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
Financial Asset
General Information
Significant accounting policies
1
2
3. Critical accounting judgements, estimates and assumptions
4. Other Income
Loss for the Financial Year
5.
6.
Income Tax Expense
7. Auditor’s Remuneration
8. Earnings per Share
9. Cash and Cash Equivalents
10. Trade and Other Receivables
11.
12. Property, Plant and Equipment
13 Exploration & Evaluation Assets
14. Trade and Other Payables
15. Contract Liability
16. Employee Benefits
17
Issued Capital
18. Controlled Subsidiaries
19 Parent Entity Information
20 Capital and Leasing Commitments
21 Contingent Liabilities and Contingent Assets
22 Segment Reporting
23 Key Management Personnel Disclosures
24 Related Party Details
25 Cash Flow Information
26 Financial Risk Management
27 Events Occurring after the Reporting Period
28 Unissued shares under option
29 Company Details
32
33
34
35
36
36
45
47
47
48
48
49
49
50
50
51
53
53
53
53
54
56
56
57
57
57
58
59
59
60
62
62
62
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 31
Financial Statements
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 30 June 2023
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 2023
30 Jun 2022
4
838,695
304,988
$
$
(422,053)
(136,822)
(260,753)
(30,943)
(57,046)
(29,527)
(51,027)
(333,271)
(132,668)
(198,918)
(814,333)
-
(470,581)
(167,536)
(181,010)
(9,523)
(42,476)
(56,269)
(23,888)
(71,895)
(64,282)
(130,482)
(912,954)
-
(814,333)
(912,954)
-
-
(814,333)
(912,954)
5
6
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)
8
8
(0.04)
(0.04)
(0.05)
(0.05)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction
with the accompanying notes
32 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
Consolidated Statement of Financial Position as at 30 June 2023
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Financial asset
Prepayments
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Trade and other receivables
Property, plant and equipment
Exploration and evaluation costs
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Employee benefits
Contract liability
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Employee benefits
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued Capital
Reserves
Accumulated losses
TOTAL EQUITY
Note
30 Jun 2023
30 Jun 2022
Consolidated Entity
$
$
9
10
11
10
12
13
14
16
15
16
17
17
377,231
72,741
77,275
12,920
540,167
155,000
314,761
15,949,760
16,419,521
16,959,689
500,864
57,053
41,550
599,467
19,787
19,787
619,254
16,340,434
271,511
78,115
325,353
14,802
689,781
160,000
361,873
15,065,837
15,587,710
16,277,491
149,480
50,184
390,901
590,565
11,670
11,670
602,235
15,675,256
36,294,888
35,156,698
425,564
(20,380,018)
16,340,434
84,243
(19,565,685)
15,675,256
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 33
Financial Statements
Consolidated Statement of Changes in Equity for The Year Ended 30 June 2023
Consolidated Entity
Balance at 1 July 2022
Loss after income tax expense for the year
Other comprehensive income for the year,
net of tax
Contributed
equity
$
Reserves
$
Accumulated
losses
$
Total
$
35,156,698
84,243
(19,565,685)
15,675,256
-
-
-
-
(814,333)
(814,333)
-
-
Total comprehensive income for the year
35,156,698
84,243
(20,380,018)
14,860,923
Transaction with owners in their capacity as owners:
Shares issued during the year
Share-based payment
Transaction costs related to share issues
1,194,000
-
(55,810)
-
341,321
-
-
-
-
1,194,000
341,321
(55,810)
Balance at 30 June 2023
36,294,888
425,564
(20,380,018)
16,340,434
Balance at 1 July 2021
35,156,698
12,348
(18,652,731)
16,516,315
Loss after income tax expense for the year
Other comprehensive income for the year,
net of tax
-
-
-
-
(912,954)
(912,954)
-
-
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:
Share-based payment
Balance at 30 June 2022
-
35,156,698
71,895
84,243
-
71,895
(19,565,685)
15,675,256
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes
34 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
Consolidated Statement of Cash Flows for the Year Ended 30 June 2023
Consolidated Entity
Note
30 Jun 2023
30 Jun 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
Proceeds from reimbursement of GPR Earn-in exploration expenditure
Purchase 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/(used in) financing activities
Net Increase in cash held
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year
(1,164,490)
919,070
3,176
88,850
-
(1,285,432)
330,000
111
-
(154)
(153,394)
(955,475)
(2,860,991)
1,975,614
(1,749)
(887,126)
1,194,000
(47,760)
-
1,146,240
105,720
271,511
377,231
(2,125,266)
1,796,306
(1,990)
(330,950)
-
-
(9,535)
(9,535)
(1,295,960)
1,567,471
271,511
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 35
Notes to the Financial Statements
Note 1
General Information
The financial statements cover Rimfire Pacific Mining Limited as a consolidated entity consisting of
Rimfire Pacific Mining Limited and the entities it controlled at the end of, or during, the year. The financial
statements are presented in Australian dollars, which is Rimfire Pacific Mining Limited’s functional and
presentation currency.
Rimfire Pacific Mining Limited is a listed public company limited by shares, incorporated and registered in
Australia. Its registered office and principal place of business are detailed on page 62.
Note 2
Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below.
These policies have been consistently applied to all the years presented, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
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 2023.
Basis of preparation
These general-purpose financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) and the
Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also
comply with International Financial Reporting Standards as issued by the International Accounting
Standards Board (‘IASB’).
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where
applicable, the revaluation of financial assets and liabilities at fair value through profit or loss, financial assets
at fair value through other comprehensive income, investment properties, certain classes of property, plant
and equipment and derivative financial instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It
also requires management to exercise its judgement in the process of applying the consolidated entity’s
accounting policies. The areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the financial statements, are disclosed in note 3.
Restatement of comparatives
There can be a restatement of comparatives through either a correction of error, a change in accounting
policy or a reclassification.
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 19.
Principles of Consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Rimfire
Pacific Mining Limited (company’ or ‘parent entity’) as at 30 June 2023 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’.
36 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity
controls an entity when the consolidated entity is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power to direct the
activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to
the consolidated entity. They are de-consolidated from the date that control ceases.
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.
Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of
profit or loss and other comprehensive income, statement of financial position and statement of changes
in equity of the consolidated entity. Losses incurred by the consolidated entity are attributed to the non-
controlling interest in full, even if that results in a deficit balance.
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.
Operating segments
Operating segments are presented using the ‘management approach’, where the information presented is
on the same basis as the internal reports provided to the Chief Operating Decision Makers (‘CODM’). The
CODM is responsible for the allocation of resources to operating segments and assessing their performance.
Rimfire Pacific Mining Limited does not have any separately reportable segments.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Rimfire Pacific Mining Limited’s
functional and presentation currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at
the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in profit or loss.
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 $814,333 and had net
cash outflows from operating activities of $153,394 for the year ended 30 June 2023. As at that date, the
Consolidated entity current liabilities exceeded its current assets by $59,300. 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.
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 37
Notes to the Financial Statements
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:
• As mentioned in Note 27 to the financial statements, in August 2023 the Company raised $0.8m (before
costs) to fund the consolidated entity’s 100% owned projects;
• The Directors are considering a number of external funding alternatives such as a farm-out of exploration
commitments and raising of additional equity funds. The Company has a history of successfully
undertaking capital raisings during the last 15 years (including most recent raising of $0.8m in August 2023);
and
• The consolidated entity has the ability to defer or reduce operating activities / expenses and exploration
expenditure if necessary, whilst meeting minimum tenement expenditure commitments.
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.
Revenue recognition
The consolidated entity recognises revenue as follows:
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
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).
Income Tax
The income tax expense or benefit for the period is the tax payable on that period’s taxable income based
on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and
liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior
periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be
applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or
substantively enacted, except for:
• When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset
or liability in a transaction that is not a business combination and that, at the time of the transaction,
affects neither the accounting nor taxable profits; or
38 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
• When the taxable temporary difference is associated with interests in subsidiaries, associates or joint
ventures, and the timing of the reversal can be controlled and it is probable that the temporary difference
will not reverse in the foreseeable future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting
date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future
taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred
tax assets are recognised to the extent that it is probable that there are future taxable profits available to
recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current
tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate
to the same taxable authority on either the same taxable entity or different taxable entities which intend to
settle simultaneously.
Rimfire Pacific Mining Limited and its wholly-owned Australian subsidiaries have not formed an income tax
Consolidated group under the tax consolidation regime.
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.
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-
term, highly liquid investments with original maturities of three months or less that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value. For the statement
of cash flows presentation purposes, cash and cash equivalents also includes bank overdrafts, which are
shown within borrowings in current liabilities on the statement of financial position.
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the
effective interest method, less any allowance for expected credit losses. Trade receivables are generally due
for settlement within 30 days.
The consolidated entity has applied the simplified approach to measuring expected credit losses, which
uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been
grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 39
Notes to the Financial Statements
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
15%
7.5% - 30%
10% - 40%
20%
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
(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.
40 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
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.
Restoration, Rehabilitation, and Environmental Costs
The Company has provided an environmental bond to the NSW Department of Planning and Environment
in the form of direct deposits of bonds with the NSW Department of Planning and Environment, included
in trade and other receivables ($211,900). 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.
Impairment of non-financial 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.
Trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to
the end of the financial year and which are unpaid. Due to their short-term nature they are measured at
amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days
of recognition.
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.
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are
expensed in the period in which they are incurred.
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,
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 41
Notes to the Financial Statements
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.
Employee Benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave
expected to be settled wholly within 12 months of the reporting date are measured at the amounts
expected to be paid when the liabilities are settled.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the
reporting date are measured at the present value of expected future payments to be made in respect
of services provided by employees up to the reporting date using the projected unit credit method.
Consideration is given to expected future wage and salary levels, experience of employee departures and
periods of service. Expected future payments are discounted using market yields at the reporting date on
corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated
future cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they
are incurred.
Share-based payments
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.
Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
Earnings per share
Basic 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
42 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary
shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account the after income tax effect of interest and other financing costs associated with dilutive
potential ordinary shares and the weighted average number of shares assumed to have been issued for no
consideration in relation to dilutive potential ordinary shares.
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred
is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of
the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount
of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables
in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or
financing activities which are recoverable from, or payable to the tax authority, are presented as operating
cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to,
the tax authority.
Financial 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.
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.
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 43
Notes to the Financial Statements
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 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
44 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
is expected to result from default events on a financial instrument that are possible within 12 months after
the reporting date.
Standards and Interpretations issued but not yet effective
Australian Accounting Standards and Interpretations that have recently been issued or amended but are
not yet mandatory, have not been early adopted by the consolidated entity for the annual reporting period
ended 30 June 2023. The consolidated entity has assessed the impact of these new or amended Accounting
Standards and Interpretations is not material to the financial statements.
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 17c for further information.
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will
commence commercial production in the future, from which time the costs will be amortised in proportion
to the depletion of the mineral resources. Key judgements are applied in considering costs to be capitalised
which includes determining expenditures directly related to these activities and allocating overheads
between those that are expensed and capitalised. In addition, costs are only capitalised that are expected
to be recovered either through successful development or sale of the relevant mining interest. Factors that
could impact the future commercial production at the mine include the level of reserves and resources,
future technology changes, which could impact the cost of mining, future legal changes and changes in
commodity prices. To the extent that capitalised costs are determined not to be recoverable in the future,
they will be written off in the period in which this determination is made.
Impairment of non-financial assets other than goodwill and other indefinite life intangible assets
The consolidated entity assesses impairment of non-financial assets other than goodwill and other indefinite
life intangible assets at each reporting date by evaluating conditions specific to the consolidated entity and
to the particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount
of the asset is determined. This involves fair value less costs of disposal or value-in-use calculations, which
incorporate a number of key estimates and assumptions.
It is reasonably possible that the underlying metal price assumption may change which may then impact
the estimated life of mine determinant and may then require a material adjustment to the carrying value
of mining plant and equipment, mining infrastructure and mining development assets. Furthermore, the
expected future cash flows used to determine the value-in-use of these assets are inherently uncertain
and could materially change over time. They are significantly affected by a number of factors including
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 45
Notes to the Financial Statements
reserves and production estimates, together with economic factors such as metal spot prices, discount rates,
estimates of costs to produce reserves and future capital expenditure.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity
considers it is probable that future taxable amounts will be available to utilise those temporary differences
and losses.
Employee benefits provision
As discussed in Note 2, the liability for employee benefits expected to be settled more than 12 months from
the reporting date are recognised and measured at the present value of the estimated future cash flows to
be made in respect of all employees at the reporting date. In determining the present value of the liability,
estimates of attrition rates and pay increases through promotion and inflation have been taken into account.
46 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
Note 4. Other Income
OTHER INCOME
Administation fee
Waiver fee
Extension fee
Interest
Sundry Income
TOTAL OTHER INCOME
Consolidated Entity
2023
$
2022
$
-
300,000
781,818
50,000
3,176
3,700
838,695
-
-
111
4,877
304,988
The Waiver fee income represents the corporate payments made during the period by GPR under the
terms of the Fifield Binding Heads of Agreement which imposed additional funding obligations on GPR
and gave GPR the right to earn an additional 9.9% interest in the Fifield Project (taking GPR’s total potential
interest to 60%), which has now been terminated and all future exploration activities plus GPR’s ongoing
funding obligations will continue under the terms of the original Fifield Project Earn In Agreement. The
payments made for the Waiver fee are non-refundable.
Note 5.
Loss for the Financial Year
The net loss for the financial year has been arrived at after charging
the following:
EXPENSES
Superannuation
Marketing expense
Non-executive directors' fees
Legal and Professional Services costs
Interest of lease liabilities
Depreciation
Consolidated Entity
2023
$
45,339
57,046
136,822
211,665
-
29,527
2022
$
45,483
42,476
167,536
-
154
56,269
Considerable legal and professional services costs were incurred by the Company during the period
relating to the Section 249d notices and other legal matters raised by entities associated with Mr Anton
Billis, the GPR ownership dispute, and legal and financial work undertaken due to matters and queries
raised by Mr Misha Collins, a former Director of the Company totaling circa $200,000.
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 47
Notes to the Financial Statements
Note 6.
Income Tax Expense
The prima facie tax/(benefit) on loss before tax is reconciled to the
income tax as follows:
Consolidated Entity
2023
$
2022
$
Prima facie tax/(benefit) on loss before tax at 25% (2022: 25%)
(203,583)
(228,239)
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
-
-
443,611
240,028
-
-
240,028
233,707
5,469
-
(5,469)
-
6,520,474
(3,987,440)
169,458
2,702,492
6,416,031
(3,766,459)
160,998
2,810,570
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.
Note 7. Auditor’s Remuneration
Remuneration of the auditor for:
- auditing or reviewing the financial reports
- other services
Consolidated Entity
2023
$
73,272
3,500
76,772
2022
$
37,732
6,020
43,752
48 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
Note 8. Earnings per Share
Reconciliation of Earnings to Loss
Loss used in the calculation of basic EPS
Loss used in the calculation of dilutive EPS
Weighted average number of ordinary shares outstanding
during the year used in calculation of basic EPS
Potential ordinary shares
Weighted average number of ordinary shares outstanding
during the year used in calculation of dilutive EPS
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.
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)
Consolidated Entity
2023
$
(814,333)
(814,333)
2022
$
(912,954)
(912,954)
1,865,703,525
1,806,244,735
-
-
1,865,703,525
1,806,244,735
-
-
(0.04)
(0.04)
-
-
(0.05)
(0.05)
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.
Note 9. Cash and Cash Equivalents
Cash at bank and on hand
Short term deposits
Reconciliation of Cash
Cash at the end of the financial year as shown in the statement of cash
flows is reconciled to items in the statement of financial position as follows:
Cash at bank
Term deposits with maturity of 3 months or less
Refer to note 26 for risk exposure for cash and cash equivalents.
Consolidated Entity
2023
$
377,231
-
377,231
-
377,231
-
377,231
2022
$
271,511
-
271,511
-
271,511
-
271,511
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 49
Notes to the Financial Statements
Note 10. Trade and Other Receivables
OTHER RECEIVABLES
CURRENT
Security deposits & other current assets
Other receivables
NON-CURRENT
Security deposits
Consolidated Entity
2023
$
72,514
227
72,741
2022
$
77,888
227
78,115
155,000
160,000
Refer to Note 26 for the risk exposure analysis for receivables.
At the reporting date, no receivables were past due or impaired.
Security deposits of $211,900 relating to deposits on the exploration licences are held directly with the
NSW Department of Planning and Environment.
Note 11. Financial Asset
CURRENT
Fifield Earn-In Account
Avondale Earn-In Account
Consolidated Entity
2023
$
69,203
8,072
77,275
2022
$
165,065
160,288
325,353
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.
50 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
Note 12. 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
Consolidated Entity
2023
$
2022
$
226,834
226,834
226,834
226,834
375,958
(309,617)
66,341
37,182
(15,596)
21,586
66,157
(66,157)
-
420
(420)
-
375,958
(292,000)
83,957
79,517
(29,840)
49,677
103,677
(102,272)
1,405
420
(420)
-
TOTAL PLANT AND EQUIPMENT
87,927
135,039
Right of Use Asset
At cost
Accumulated depreciation
-
-
-
-
-
-
TOTAL PROPERTY, PLANT AND EQUIPMENT
314,761
361,873
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 51
Notes to the Financial Statements
a. Movements in Carrying Amounts
Movements in the carrying amounts for each class of property, plant and equipment between the beginning and
the end of the current financial year.
2023
Freehold
Land
Motor
Vehicles
Plant and
Equipment
Office
Furniture
Right of
use asset
Leasehold
Improvements
Consolidated Entity:
$
$
$
$
Balance at the
beginning of year
Additions
Disposals
Depreciation
expense
Depreciation
capitalised
Carrying amount at
the end of year
2022
Consolidated Entity:
Balance at the
beginning of year
Additions
Disposals
Depreciation
expense
Depreciation
capitalised
Carrying amount at
the end of year
-
-
-
-
-
-
-
-
226,834
49,677
83,957
1,099
(18,776)
-
(324)
(10,414)
(17,292)
(1,821)
-
-
226,834
21,586
66,341
1,405
652
(236)
-
-
226,834
61,141
117,224
2,290
9,752
-
-
900
-
-
-
-
-
(11,464)
(34,167)
(885)
(9,752)
-
-
-
226,834
49,677
83,957
1,405
$
-
-
-
-
-
-
-
-
TOTAL
$
361,873
1,751
(19,336)
(29,527)
-
$
-
-
-
-
-
-
314,761
-
-
-
-
-
-
417,241
900
-
(56,268)
-
361,873
52 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
Note 13 Exploration & Evaluation Assets
NON-CURRENT
Exploration Expenditure
Costs carried forward in respect of areas of interest in:
2022
$
2021
$
– exploration and evaluation phases
15,949,760
15,065,837
Opening balance
Additional expenditure
NSW Drilling Grant
Reimbursed exploration expenditure
Closing balance
Note 14. Trade and Other Payables
CURRENT
Trade creditors
Sundry creditors and accrued expenses
GST Collected
Note 15. Contract Liability
Amounts related to Golden Plains Resources Earn-In Agreements
Total Contract Liabilities
15,065,837
14,623,370
2,821,773
(88,500)
(1,849,350)
15,949,760
2,027,716
-
(1,585,249)
15,065,837
Consolidated Entity
2023
$
349,757
159,183
(8,076)
500,864
2022
$
61,626
94,270
(6,416)
149,480
Consolidated Entity
2023
$
41,550
41,550
2022
$
390,901
390,901
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 16. Employee Benefits
CURRENT
Employee benefits
NON-CURRENT
Employee benefits
Consolidated Entity
2023
$
57,053
2022
$
50,184
19,787
11,670
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 53
Notes to the Financial Statements
Note 17
Issued Capital
2,005,244,731 (2022: 1,806,244,735) fully paid ordinary shares
Ordinary shares
At the beginning of the reporting period
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
2023
$
36,294,888
36,294,888
2022
$
35,156,698
35,156,698
35,156,698
1,194,000
(55,810)
35,156,698
-
-
36,294,888
35,156,698
2023
No.
2022
No.
1,806,244,734
1,806,244,734
198,999,997
-
2,005,244,731
1,806,244,734
Consolidated Entity
2023
$
425,564
2022
$
84,243
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.
54 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
c. Share based payments & options
Grant
date
Expiry
date
Exercise
price
Balance
at start of
the year
Granted
Exercised
Expired/
Forfeited/
Other *
30 April 2019
Various*
Various*
5,000,000
9 March 2022
Various*
Various* 40,000,000
29 April 2022
Various*
Various*
15,300,000
-
-
-
30 August 2022
Various*
Various*
30 August 2022
Various*
Various*
28 February 2023
Various*
Various*
- 30,000,000
- 25,000,000
-
5,000,000
Total
60,300,000 60,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Balance
at 30 June
2023
5,000,000
40,000,000
15,300,000
30,000,000
25,000,000
5,000,000
120,300,000
* Various Tranches granted during FY2019, FY2022 and FY2023, 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.
During the Financial Period 60,000,000 Options were granted to:
Options
Employee Options, service based vesting conditions
(exercisable at 1.54 cents by 15 June 2026)
Employee Options, service based vesting conditions
(exercisable at 1.52 cents by 30 August 2026)
Unlisted Options – Broker
(exercisable at 2.00 cents by 28 February 2025)
No.
30,000,000
25,000,000
5,000,000
As at 30 June 2023 the breakdown of unlisted Options remaining at balance date are listed below:
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)
Employee Options, service based vesting conditions
(exercisable at 1.54 cents by 15 June 2026)
Employee Options, service based vesting conditions
(exercisable at 1.52 cents by 30 August 2026)
Unlisted Options – Broker
(exercisable at 2.00 cents by 28 February 2025)
No.
5,000,000
40,000,000
15,300,000
30,000,000
25,000,000
5,000,000
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.
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 55
Notes to the Financial Statements
Note 18. Controlled Subsidiaries
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
Note 19 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
Country of
Incorporation
Percentage Owned (%)
2023
2022
Australia
Australia
Australia
100
100
100
100
100
100
2023
$
2022
$
540,168
689,781
16,959,412
16,277,264
597,965
617,752
589,065
600,735
36,294,888
35,156,698
425,564
(20,378,792)
16,341,660
84,243
(19,564,412)
15,576,529
(814,333)
(814,333)
(912,954)
(912,954)
Parent Entity Commitments:
All capital and operating commitments of the group have been entered into by the Parent Entity. Refer to
Note 20 for these commitments. The accounting policies of the parent entity are consistent with those of the
Consolidated entity, as disclosed in Note 2.
56 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
Note 20 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
2023
$
-
-
-
2022
$
9,227
-
9,227
2023
$
2022
$
435,990
543,369
979,359
267,640
924,015
1,191,655
Note 21 Contingent Liabilities and Contingent Assets
There are no contingent liabilities or contingent assets at 30 June 2023 (30 June 2022: Nil).
Note 22 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.
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 57
Notes to the Financial Statements
Note 23 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 (Managing Director and Chief Executive Officer)
Andrew Knox (Non-Executive Director)
Misha Collins (Non-independent, Non-Executive Director), ceased with Company on 2 June 2023,
Greg Keane appointed as Alternate Director on 17 August 2022.
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 2023. The totals of remuneration paid to Key Management Personnel of the company during the
year are as follows:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Share-based payments
TOTAL
2023
$
481,444
42,735
6,864
243,620
774,663
2022
$
442,693
62,324
(2,883)
(9,123)
493,010
58 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
Note 24 Related Party Details
Office Rent
2023
$
5,280
2022
$
-
In the current period, the Company incurred an expense of $5,280 (2022: $nil) for office rent provided by
Terrace Minerals Pty Ltd, a director related entity of Mr David Hutton. The rent provided was based on
commercial market terms and conditions.
Note 25 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
b. Non-cash Investing Activities
There were no non-cash investing activities carried out during the year.
Consolidated Entity
2023
$
2022
$
(814,333)
(912,954)
29,527
19,639
333,271
1,882
10,374
251,262
14,986
(153,394)
56,269
-
71,895
(11,587)
142,597
(261,287)
(40,408
(955,475)
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 59
Notes to the Financial Statements
Note 26 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 26(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
Note
Category
Cash & cash equivalents
Trade and other receivables
Financial liabilities
Trade and other payables
9
10
14
60 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
Cash and other financial assets
Trade and other receivables at
amortised cost
Carrying
value 2022
Carrying
value 2021
$
377,231
$
271,511
227,741
238,115
Financial liabilities measured at
amortised cost
500,862
149,480
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
$
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
Financial Assets
Cash
Receivables
376,731
271,011
155,000
160,000
Total Financial Assets
531,731
431,011
Financial Liabilities
Trade and sundry
creditors
Lease liabilities
Total Financial
Liabilities
Net inflow/(outflow)
on financial assets
-
-
-
-
-
-
531,731
431,011
c. Net Fair Values
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
500
72,741
73,241
500
377,231
78,115
271,511
238,115
78,615
509,626
78,115
78,615
500,862
149,480
500,862
149,480
-
-
500,862
149,480
500,862
149,480
(427,621)
(70,865)
104,110
360,146
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
2023
$
3,617
(3,617)
3,617
(3,617)
2022
$
5,624
(5,624)
5,624
(5,624)
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 interest rates.
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 61
.
Notes to the Financial Statements
Note 27 Events Occurring after the Reporting Period
In July 2023, Rimfire was awarded exploration credits of $500,000 under the Federal
Government’s Junior Minerals Exploration Incentive (JMEI) program for distribution during
the 2023 / 2024 Financial Year to eligible shareholders.
During August 2023, Rimfire raised $0.8 million through a share placement pursuant to
Section 708 of the Corporations Act (Cth). The placement comprised the issue of a total of
100,000,000 fully paid ordinary shares at an issue price of $0.008 (0.8 cents) per share, raising
$0.8M, to sophisticated investors eligible under section 708 of the Corporations Act (Cth).
The issue price represented a 26% premium to the 5 - trading day VWAP to 28 July 2023. In
addition,100,000,000 free attaching unlisted options were issued on a one (1) for one (1) basis
for every new share subscribed for and issued under the placement with an exercise price of
$0.02 (2 cents) each, and an expiry date of 28 February 2025.
In September 2023, Rimfire announced the 100% acquisition of the Porters Mount Project
which adjoins Rimfire’s 100% owned Cowal Copper Gold Project, which increases the size of
the Cowal project 450km2 and enhances the Cowal Project further with areas of mineralized
anomalies and further features that require follow up.
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 28 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)
Employee Options, service based vesting conditions
(exercisable at 1.54 cents by 15 June 2026)
Employee Options, service based vesting conditions
(exercisable at 1.52 cents by 30 August 2026)
Unlisted Options – Broker
(exercisable at 2.00 cents by 28 February 2025)
No.
5,000,000
40,000,000
15,300,000
30,000,000
25,000,000
5,000,000
Note 29 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
62 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
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 2023 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 28th day of September 2023
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 63
Independent Auditor’s Report
RSM Australia Partners
Level 21, 55 Collins Street Melbourne VIC 3000
PO Box 248 Collins Street West VIC 8007
RSM Australia Partners
T +61 (0) 3 9286 8000
F +61 (0) 3 9286 8199
Level 21, 55 Collins Street Melbourne VIC 3000
PO Box 248 Collins Street West VIC 8007
www.rsm.com.au
T +61 (0) 3 9286 8000
F +61 (0) 3 9286 8199
www.rsm.com.au
INDEPENDENT AUDITOR’S REPORT
To the Members of Rimfire Pacific Mining Limited
Opinion
INDEPENDENT AUDITOR’S REPORT
To the Members of Rimfire Pacific Mining Limited
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
Opinion
at 30 June 2023, the consolidated statement of profit or loss and other comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to
We have audited the financial report of Rimfire Pacific Mining Limited (‘the Company’) and its controlled entity
the financial statements, including a summary of significant accounting policies, and the directors' declaration.
(together referred as ‘the Consolidated entity’), which comprises the consolidated statement of financial position as
at 30 June 2023, the consolidated statement of profit or loss and other comprehensive income, the consolidated
In our opinion the accompanying financial report of the Consolidated entity is in accordance with the Corporations
statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to
Act 2001, including:
the financial statements, including a summary of significant accounting policies, and the directors' declaration.
(i) giving a true and fair view of the Consolidated entity's financial position as at 30 June 2023 and of its
In our opinion the accompanying financial report of the Consolidated entity is in accordance with the Corporations
Act 2001, including:
financial performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
(i) giving a true and fair view of the Consolidated entity's financial position as at 30 June 2023 and of its
Basis for Opinion
financial performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
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
Basis for Opinion
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
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
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
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the
Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of 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.
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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.
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
64
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the
RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
THE POWER OF BEING UNDERSTOOD
RSM Australia Partners ABN 36 965 185 036
AUDIT | TAX | CONSULTING
Liability limited by a scheme approved under Professional Standards Legislation
64
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the
RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
64 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
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
$814,333 and had net cash outflows from operating activities of $153,394 for the year ended 30 June 2023. Also,
as at that date Consolidated entity current liabilities exceeded its current assets by $59,300. 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
60
Refer to Note 13 in the financial statements
As at 30 June 2023 the carrying value of the
Consolidated entity’s Exploration and evaluation asset
amounted to $16m, which represented 94% of the total
assets of the Consolidated entity as at that date.
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 Exploration and evaluation costs included:
• Corroborating that the right to tenure of the areas
•
•
of interest were current;
Assessing and evaluating management’s
assessment that no indicators of impairment
existed;
Agreeing a sample of the additions to capitalised
exploration expenditure during
to
supporting documentation, and ensuring that the
amounts were capital in nature; and
the year
documentation,
• Discussing with management and reviewing
Rimfire’s ASX announcements and other
assess
relevant
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.
to
65
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 65
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 2023; 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 24 to 28 of the directors' report for the year ended
30 June 2023.
In our opinion, the Remuneration Report of Rimfire Pacific Mining Limited for the year ended 30 June 2023,
complies with section 300A of the Corporations Act 2001.
66 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
66
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
Dated: 28 September 2023
Melbourne, Victoria
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 67
67
Land Tenure
Schedule of Exploration Licences and Mining Licences as at 30 June 2023
All Licences are held in Rimfire’s name and all are located in NSW.
Project Name
Tenement Grant Date
Current Area
(units / Ha)
Expiry Date Mineral Focus
The Valley
RIM 100%
Cowal
RIM 100%
Broken Hill Cobalt
RIM 100%
Fifield Project
Earn-in
GPR earning up
to 50.1%
Avondale Project
Earn-in
GPR earning up
to 75%
EL8542
23/3/2017
EL8401
22/10/2015
EL8804
31/10/2018
EL8805
31/10/2018
EL9397
22/4/2022
EL5958
24/6/2002
EL8935
3/2/2020
5
2
44
39
91
27
21
23/03/2026
Porphry Copper / Gold
22/10/2024
Porphry Copper / Gold
31/10/2024
Copper / Gold
31/10/2024
Copper / Gold
22/4/2025
Copper / Gold
24/6/2025
Cobalt / Other Critical Minerals
3/2/2026
Gold / PGEs
M(C)L305
18/11/2004
1.9 Ha
17/11/2027
Gold / PGEs
EL6241
EL5565
EL7058
17/5/2004
24/3/1999
1/2/2008
EL7959*
16/8/2012
EL8401
22/10/2015
EL8542
EL8543
EL8935
23/3/2017
27/3/2017
3/2/2020
15
4
35
7
98
27
1
19
17/5/2024
Gold / PGEs
24/3/2025
Cobalt / PGEs / Nickel / Scandium
1/02/2026
Cobalt / PGEs / Nickel / Scandium
16/08/2023
Cobalt / PGEs / Nickel / Scandium
22/10/2024
Cobalt / PGEs / Nickel / Scandium
23/03/2026
Cobalt / PGEs / Nickel / Scandium
27/03/2026
Cobalt / PGEs / Nickel / Scandium
3/02/2026
Cobalt / PGEs / Nickel / Scandium
*Note: EL7959 application for renewal has been submitted and is being processed by the Department of Regional NSW - Mining, Exploration
and Geoscience
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.
68 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
Additional Information
FOR PUBLICLY LISTED COMPANIES
1. The shareholder information set out below was applicable as at 25 September 2023.
(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
198
156
152
850
1,031
2,387
Fully Paid
Ordinary Shares
% of
Issued Capital
56,418
514,094
1,296,788
42,334,951
2,061,042,480
2,105,244,731
0.00%
0.02%
0.06%
2.01%
97.90%
100%
(b) Marketable Parcel
The number of shareholders holding less than a marketable parcel ($500 parcel @$0.006 per share)
of ordinary shares was 1,205 holding a total of 29,541,364 shares.
(c) The number of holders of each class of equity security
Class of Security
Fully Paid Ordinary Shares
Unlisted Options
Number
2,387
18
As at 25 September 2023 there were 220,300,000 unissued shares under option, with performance
or service based vesting conditions held by 18 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 to unlisted Options.
There are no other classes of equity securities.
69 | Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 69
Additional Information (cont.)
(e) 20 Largest Shareholders – RIM Ordinary Shares
Name
Number of
Ordinary Fully
Paid Shares
Held
% Held of
Issued
Ordinary
Capital
1.
REEF INVESTMENTS PTY LTD |
2. GOLDEN PLAINS RESOURCES PTY LTD
108,333,333
90,000,000
3.
BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD
78,813,554
4. CITICORP NOMINEES PTY LIMITED
5.
6.
7.
ICE COLD INVESTMENTS PTY LTD
SPECIALIST VEHICLE MANUFACTURERS PTY LTD
RESOURCE CAPITAL LIMITED
8. MR PENG WANG
9. ADRIATIC PROSPECT PTY LTD
10. MR ANTHONY BECK
11. MR TREVOR DOUGLAS NAIRN
12.
TRANS GLOBAL CAPITAL LTD
13. MR CHOONG GUANG KOH
14.
SUTHERLAND FAMILY COMPANY PTY LTD
66,445,504
60,833,333
57,500,000
40,000,000
38,174,603
34,000,000
28,577,383
27,126,667
27,000,000
26,500,000
25,000,000
5.15
4.28
3.74
3.16
2.89
2.73
1.90
1.81
1.62
1.36
1.29
1.28
1.26
1.19
15.
MR GRAHAM CHARLES HOPGOOD + MRS ROBYN LESLEY HOPGOOD
24,000,000
1.14
16. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
23,626,309
JEM INVESTMENT FUND HOLDINGS PTY LTD
20,000,000
1.12
0.95
0.92
0.86
0.84
1 9,333,336
1 8,000,000
1 7,601,180
830,865,202
39.47
1,274,379,529
60.53
17.
18.
B DAVID NOMINEES PTY LTD
19. ANT NICHOLSON PTY LTD
20.
BASKERVILLE INVESTMENTS PTY LTD
TOTAL: TOP 20 HOLDERS OF FULLY PAID ORDINARY SHARES
TOTAL: REMAINING HOLDERS BALANCE
70 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders
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 25 September 2023.
7. Share Buy-Back
There is no current on-market share buy-back.
8. Substantial Holders
Substantial holders in the Company, as disclosed in substantial holding notices given to the Company, are set
out below:
- Anthony Billis and the persons listed in the Annexure (Group), contained in the substantial shareholder notice
given to the Company on 1 March 2023 – 228,000,000 shares
- Reef Investment Pty Ltd as trustee for The Nairn Family Trust and each of the entities listed in item 4,
contained in the substantial shareholder notice given to the Company on 11 August 2023 – 149,177,486 shares.
9. Corporate Governance
The Company’s 2023 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 20 November 2023.
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 6 October 2023.
Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders / 71
Corporate Directory
Directors:
Ian McCubbing (Chairman)
David Hutton (Managing Director & CEO)
Andrew Knox (Non-executive Director)
Greg Keane (Alternate to Ian McCubbing)
Company Secretary:
Stefan Ross
Registered Office
and Principal Place of Business:
Auditors:
Suite 142, 1 Queens Road
Melbourne VIC 3004
+61 3 9620 5866
RSM Australia Pty Ltd
Level 21, 55 Collins Street
Melbourne VIC 3000
Lawyers of the Company:
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
Bankers:
Westpac Banking Corporation
114 William Street
Melbourne VIC 3000
Stock Exchange Listing:
Australian Securities Exchange
Home Exchange – Melbourne
ASX Code: RIM
Email Address:
rimfire@rimfire.com.au
Website Address:
www.rimfire.com.au
72 / Rimfire Pacific Mining Limited 2023 Annual Report to Shareholders Rimfire Pacific Mining Limited
St Kilda Rd Towers
Suite 142,
1 Queens Road
Melbourne VIC 3004
www.rimfire.com.au
|